ns_WSJ_23.pos

No	DT
,	,
it	PRP
was	VBD
n't	RB
Black	NNP
Monday	NNP
.	.

But	CC
while	IN
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
did	VBD
n't	RB
fall	VB
apart	RB
Friday	NNP
as	RB
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
plunged	VBD
190.58	CD
points	NNS
--	:
most	RBS
of	IN
it	PRP
in	IN
the	DT
final	JJ
hour	NN
--	:
it	PRP
barely	RB
managed	VBD
to	TO
stay	VB
this	DT
side	NN
of	IN
chaos	NN
.	.

Some	DT
``	``
circuit	NN
breakers	NNS
''	''
installed	VBD
after	IN
the	DT
October	NNP
1987	CD
crash	VB
failed	VBN
their	PRP$
first	JJ
test	NN
,	,
traders	NNS
say	VBP
,	,
unable	JJ
to	TO
cool	JJ
the	DT
selling	VBG
panic	NN
in	IN
both	DT
stocks	NNS
and	CC
futures	NNS
.	.

The	DT
49	CD
stock	NN
specialist	NN
firms	NNS
on	IN
the	DT
Big	NNP
Board	NNP
floor	NN
--	:
the	DT
buyers	NNS
and	CC
sellers	NNS
of	IN
last	JJ
resort	VBP
who	WP
were	VBD
criticized	VBN
after	IN
the	DT
1987	CD
crash	VB
--	:
once	RB
again	RB
could	MD
n't	RB
handle	VB
the	DT
selling	VBG
pressure	NN
.	.

Big	NNP
investment	NN
banks	NNS
refused	VBD
to	TO
step	VB
up	RP
to	TO
the	DT
plate	NN
to	TO
support	VB
the	DT
beleaguered	JJ
floor	NN
traders	NNS
by	IN
buying	VBG
big	JJ
blocks	NNS
of	IN
stock	NN
,	,
traders	NNS
say	VBP
.	.

Heavy	NNP
selling	VBG
of	IN
Standard	NNP
&	CC
Poor	NNP
's	POS
500-stock	JJ
index	NN
futures	NNS
in	IN
Chicago	NNP
relentlessly	RB
beat	JJ
stocks	NNS
downward	RB
.	.

Seven	NNP
Big	NNP
Board	NNP
stocks	NNS
--	:
UAL	NNP
,	,
AMR	NNP
,	,
BankAmerica	NNP
,	,
Walt	NNP
Disney	NNP
,	,
Capital	NNP
Cities\/ABC	NNP
,	,
Philip	NNP
Morris	NNP
and	CC
Pacific	NNP
Telesis	NNP
Group	NNP
--	:
stopped	VBN
trading	NN
and	CC
never	RB
resumed	VBD
.	.

The	DT
finger-pointing	JJ
has	VBZ
already	RB
begun	VBN
.	.

``	``
The	DT
equity	NN
market	NN
was	VBD
illiquid	JJ
.	.

Once	IN
again	RB
{	(
the	DT
specialists	NNS
}	)
were	VBD
not	RB
able	JJ
to	TO
handle	VB
the	DT
imbalances	NNS
on	IN
the	DT
floor	NN
of	IN
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
,	,
''	''
said	VBD
Christopher	NNP
Pedersen	NNP
,	,
senior	JJ
vice	NN
president	NN
at	IN
Twenty-First	NNP
Securities	NNPS
Corp	NNP
.	.

Countered	IN
James	NNP
Maguire	NNP
,	,
chairman	NN
of	IN
specialists	NNS
Henderson	NNP
Brothers	NNPS
Inc.	NNP
:	:
``	``
It	NNP
is	VBZ
easy	JJ
to	TO
say	VBP
the	DT
specialist	NN
is	VBZ
n't	RB
doing	VBG
his	PRP$
job	NN
.	.

When	WRB
the	DT
dollar	NN
is	VBZ
in	IN
a	DT
free-fall	VB
,	,
even	RB
central	JJ
banks	NNS
ca	MD
n't	RB
stop	VB
it	PRP
.	.

Speculators	NNS
are	VBP
calling	VBG
for	IN
a	DT
degree	NN
of	IN
liquidity	NN
that	IN
is	VBZ
not	RB
there	EX
in	IN
the	DT
market	NN
.	.
''	''

Many	DT
money	NN
managers	NNS
and	CC
some	DT
traders	NNS
had	VBD
already	RB
left	VBN
their	PRP$
offices	NNS
early	RB
Friday	NNP
afternoon	NN
on	IN
a	DT
warm	JJ
autumn	NN
day	NN
--	:
because	IN
the	DT
stock	NN
market	NN
was	VBD
so	RB
quiet	JJ
.	.

Then	RB
in	IN
a	DT
lightning	NN
plunge	NN
,	,
the	DT
Dow	NNP
Jones	NNP
industrials	NNS
in	IN
barely	RB
an	DT
hour	NN
surrendered	VBD
about	IN
a	DT
third	JJ
of	IN
their	PRP$
gains	NNS
this	DT
year	NN
,	,
chalking	VBG
up	RP
a	DT
190.58-point	JJ
,	,
or	CC
6.9	CD
%	NN
,	,
loss	NN
on	IN
the	DT
day	NN
in	IN
gargantuan	JJ
trading	NN
volume	NN
.	.

Final-hour	IN
trading	NN
accelerated	VBD
to	TO
108.1	VB
million	CD
shares	NNS
,	,
a	DT
record	NN
for	IN
the	DT
Big	NNP
Board	NNP
.	.

At	IN
the	DT
end	NN
of	IN
the	DT
day	NN
,	,
251.2	CD
million	CD
shares	NNS
were	VBD
traded	VBN
.	.

The	DT
Dow	NNP
Jones	NNP
industrials	NNS
closed	VBN
at	IN
2569.26	CD
.	.

The	DT
Dow	NNP
's	POS
decline	NN
was	VBD
second	NN
in	IN
point	VBP
terms	NNS
only	RB
to	TO
the	DT
508-point	JJ
Black	NNP
Monday	NNP
crash	VB
that	IN
occurred	VBD
Oct.	NNP
19	CD
,	,
1987	CD
.	.

In	IN
percentage	NN
terms	NNS
,	,
however	RB
,	,
the	DT
Dow	NNP
's	POS
dive	NN
was	VBD
the	DT
12th-worst	VB
ever	RB
and	CC
the	DT
sharpest	JJS
since	IN
the	DT
market	NN
fell	VBD
156.83	VB
,	,
or	CC
8	CD
%	NN
,	,
a	DT
week	NN
after	IN
Black	NNP
Monday	NNP
.	.

The	DT
Dow	NNP
fell	VBD
22.6	CD
%	NN
on	IN
Black	NNP
Monday	NNP
.	.

Shares	NNS
of	IN
UAL	NNP
,	,
the	DT
parent	NN
of	IN
United	NNP
Airlines	NNPS
,	,
were	VBD
extremely	RB
active	JJ
all	DT
day	NN
Friday	NNP
,	,
reacting	VBG
to	TO
news	NN
and	CC
rumors	NNS
about	IN
the	DT
proposed	VBN
$	$
6.79	CD
billion	CD
buy-out	NN
of	IN
the	DT
airline	NN
by	IN
an	DT
employee-management	VB
group	NN
.	.

Wall	NNP
Street	NNP
's	POS
takeover-stock	JJ
speculators	NNS
,	,
or	CC
``	``
risk	NN
arbitragers	NNS
,	,
''	''
had	VBD
placed	VBN
unusually	RB
large	JJ
bets	NNS
that	IN
a	DT
takeover	NN
would	MD
succeed	VB
and	CC
UAL	NNP
stock	NN
would	MD
rise	VB
.	.

At	IN
2:43	CD
p.m.	NN
EDT	NNP
,	,
came	VBD
the	DT
sickening	NN
news	NN
:	:
The	DT
Big	NNP
Board	NNP
was	VBD
halting	VBG
trading	NN
in	IN
UAL	NNP
,	,
``	``
pending	VBG
news	NN
.	.
''	''

On	IN
the	DT
exchange	NN
floor	NN
,	,
``	``
as	IN
soon	RB
as	IN
UAL	NNP
stopped	VBD
trading	NN
,	,
we	PRP
braced	VBN
for	IN
a	DT
panic	NN
,	,
''	''
said	VBD
one	CD
top	NN
floor	NN
trader	NN
.	.

Several	JJ
traders	NNS
could	MD
be	VB
seen	VBN
shaking	VBG
their	PRP$
heads	VBZ
when	WRB
the	DT
news	NN
flashed	VBD
.	.

For	IN
weeks	NNS
,	,
the	DT
market	NN
had	VBD
been	VBN
nervous	JJ
about	IN
takeovers	NNS
,	,
after	IN
Campeau	NNP
Corp.	NNP
's	POS
cash	NN
crunch	NN
spurred	VBN
concern	NN
about	IN
the	DT
prospects	NNS
for	IN
future	JJ
highly	RB
leveraged	JJ
takeovers	NNS
.	.

And	CC
10	CD
minutes	NNS
after	IN
the	DT
UAL	NNP
trading	NN
halt	NN
came	VBD
news	NN
that	IN
the	DT
UAL	NNP
group	NN
could	MD
n't	RB
get	VB
financing	VBG
for	IN
its	PRP$
bid	NN
.	.

At	IN
this	DT
point	NN
,	,
the	DT
Dow	NNP
was	VBD
down	RP
about	IN
35	CD
points	NNS
.	.

The	DT
market	NN
crumbled	VBD
.	.

Arbitragers	NNS
could	MD
n't	RB
dump	VB
their	PRP$
UAL	NNP
stock	NN
--	:
but	CC
they	PRP
rid	JJ
themselves	PRP
of	IN
nearly	RB
every	DT
``	``
rumor	NN
''	''
stock	NN
they	PRP
had	VBD
.	.

For	IN
example	NN
,	,
their	PRP$
selling	NN
caused	VBD
trading	NN
halts	VBZ
to	TO
be	VB
declared	VBN
in	IN
USAir	NNP
Group	NNP
,	,
which	WDT
closed	VBD
down	RP
3	CD
7\/8	CD
to	TO
41	CD
1\/2	CD
,	,
Delta	NNP
Air	NNP
Lines	NNPS
,	,
which	WDT
fell	VBD
7	CD
3\/4	CD
to	TO
69	CD
1\/4	CD
,	,
and	CC
Philips	NNP
Industries	NNPS
,	,
which	WDT
sank	VBD
3	CD
to	TO
21	CD
1\/2	CD
.	.

These	DT
stocks	NNS
eventually	RB
reopened	VBN
.	.

But	CC
as	RB
panic	NN
spread	VBD
,	,
speculators	NNS
began	VBD
to	TO
sell	VB
blue-chip	JJ
stocks	NNS
such	JJ
as	RB
Philip	NNP
Morris	NNP
and	CC
International	NNP
Business	NNP
Machines	NNPS
to	TO
offset	VB
their	PRP$
losses	NNS
.	.

When	WRB
trading	NN
was	VBD
halted	VBD
in	IN
Philip	NNP
Morris	NNP
,	,
the	DT
stock	NN
was	VBD
trading	NN
at	IN
41	CD
,	,
down	IN
3	CD
3\/8	CD
,	,
while	IN
IBM	NNP
closed	VBN
5	CD
5\/8	CD
lower	JJR
at	IN
102	CD
.	.

Selling	VBG
snowballed	VBD
because	IN
of	IN
waves	NNS
of	IN
automatic	JJ
``	``
stop-loss	JJ
''	''
orders	NNS
,	,
which	WDT
are	VBP
triggered	VBN
by	IN
computer	NN
when	WRB
prices	NNS
fall	VB
to	TO
certain	JJ
levels	NNS
.	.

Most	RBS
of	IN
the	DT
stock	NN
selling	VBG
pressure	NN
came	VBD
from	IN
Wall	NNP
Street	NNP
professionals	NNS
,	,
including	VBG
computer-guided	JJ
program	NN
traders	NNS
.	.

Traders	NNS
said	VBD
most	RBS
of	IN
their	PRP$
major	JJ
institutional	JJ
investors	NNS
,	,
on	IN
the	DT
other	JJ
hand	NN
,	,
sat	VBN
tight	RB
.	.

Now	RB
,	,
at	IN
3:07	VB
,	,
one	CD
of	IN
the	DT
market	NN
's	POS
post-crash	JJ
``	``
reforms	NNS
''	''
took	VBD
hold	VBP
as	RB
the	DT
S&P	NNP
500	CD
futures	NNS
contract	NN
had	VBD
plunged	VBD
12	CD
points	NNS
,	,
equivalent	NN
to	TO
around	IN
a	DT
100-point	VB
drop	NN
in	IN
the	DT
Dow	NNP
industrials	NNS
.	.

Under	IN
an	DT
agreement	NN
signed	VBD
by	IN
the	DT
Big	NNP
Board	NNP
and	CC
the	DT
Chicago	NNP
Mercantile	NNP
Exchange	NNP
,	,
trading	NN
was	VBD
temporarily	RB
halted	VBN
in	IN
Chicago	NNP
.	.

After	IN
the	DT
trading	NN
halt	NN
in	IN
the	DT
S&P	NNP
500	CD
pit	NN
in	IN
Chicago	NNP
,	,
waves	NNS
of	IN
selling	VBG
continued	VBD
to	TO
hit	VBD
stocks	NNS
themselves	PRP
on	IN
the	DT
Big	NNP
Board	NNP
,	,
and	CC
specialists	NNS
continued	VBD
to	TO
notch	VB
prices	NNS
down	IN
.	.

As	IN
a	DT
result	NN
,	,
the	DT
link	VB
between	IN
the	DT
futures	NNS
and	CC
stock	NN
markets	NNS
ripped	VBD
apart	RB
.	.

Without	IN
the	DT
guidepost	NN
of	IN
stock-index	NN
futures	NNS
--	:
the	DT
barometer	NN
of	IN
where	WRB
traders	NNS
think	VBP
the	DT
overall	JJ
stock	NN
market	NN
is	VBZ
headed	VBD
--	:
many	JJ
traders	NNS
were	VBD
afraid	JJ
to	TO
trust	NN
stock	NN
prices	NNS
quoted	VBD
on	IN
the	DT
Big	NNP
Board	NNP
.	.

The	DT
futures	NNS
halt	NN
was	VBD
even	RB
assailed	VBD
by	IN
Big	NNP
Board	NNP
floor	NN
traders	NNS
.	.

``	``
It	NNP
screwed	VBN
things	NNS
up	RP
,	,
''	''
said	VBD
one	CD
major	JJ
specialist	NN
.	.

This	DT
confusion	NN
effectively	RB
halted	VBD
one	CD
form	NN
of	IN
program	NN
trading	NN
,	,
stock	NN
index	NN
arbitrage	NN
,	,
that	IN
closely	RB
links	NNS
the	DT
futures	NNS
and	CC
stock	NN
markets	NNS
,	,
and	CC
has	VBZ
been	VBN
blamed	VBD
by	IN
some	DT
for	IN
the	DT
market	NN
's	POS
big	JJ
swings	NNS
.	.

(	(
In	IN
a	DT
stock-index	NN
arbitrage	NN
sell	VB
program	NN
,	,
traders	NNS
buy	VB
or	CC
sell	VB
big	JJ
baskets	NNS
of	IN
stocks	NNS
and	CC
offset	VB
the	DT
trade	NN
in	IN
futures	NNS
to	TO
lock	NN
in	IN
a	DT
price	NN
difference	NN
.	.
)	)

``	``
When	WRB
the	DT
airline	NN
information	NN
came	VBD
through	IN
,	,
it	PRP
cracked	VBN
every	DT
model	NN
we	PRP
had	VBD
for	IN
the	DT
marketplace	NN
,	,
''	''
said	VBD
a	DT
managing	VBG
director	NN
at	IN
one	CD
of	IN
the	DT
largest	JJS
program-trading	NN
firms	NNS
.	.

``	``
We	PRP
did	VBD
n't	RB
even	RB
get	VB
a	DT
chance	NN
to	TO
do	VB
the	DT
programs	NNS
we	PRP
wanted	VBN
to	TO
do	VB
.	.
''	''

But	CC
stocks	NNS
kept	VBN
falling	VBG
.	.

The	DT
Dow	NNP
industrials	NNS
were	VBD
down	IN
55	CD
points	NNS
at	IN
3	CD
p.m.	NN
before	IN
the	DT
futures-trading	JJ
halt	NN
.	.

At	IN
3:30	NNP
p.m.	NN
,	,
at	IN
the	DT
end	NN
of	IN
the	DT
``	``
cooling	VBG
off	RP
''	''
period	NN
,	,
the	DT
average	NN
was	VBD
down	IN
114.76	VB
points	NNS
.	.

Meanwhile	RB
,	,
during	IN
the	DT
the	DT
S&P	NNP
trading	NN
halt	NN
,	,
S&P	NNP
futures	NNS
sell	VB
orders	NNS
began	VBD
piling	VBG
up	RP
,	,
while	IN
stocks	NNS
in	IN
New	NNP
York	NNP
kept	VBN
falling	VBG
sharply	RB
.	.

Big	NNP
Board	NNP
Chairman	NNP
John	NNP
J.	NNP
Phelan	NNP
said	VBD
yesterday	NN
the	DT
circuit	NN
breaker	NN
``	``
worked	VBD
well	RB
mechanically	RB
.	.

I	PRP
just	RB
think	VBP
it	PRP
's	POS
nonproductive	JJ
at	IN
this	DT
point	VBP
to	TO
get	VB
into	IN
a	DT
debate	NN
if	IN
index	NN
arbitrage	NN
would	MD
have	VB
helped	VBD
or	CC
hurt	VBN
things	NNS
.	.
''	''

Under	IN
another	DT
post-crash	JJ
system	NN
,	,
Big	NNP
Board	NNP
President	NNP
Richard	NNP
Grasso	NNP
(	(
Mr.	NNP
Phelan	NNP
was	VBD
flying	VBG
to	TO
Bangkok	NNP
as	IN
the	DT
market	NN
was	VBD
falling	VBG
)	)
was	VBD
talking	VBG
on	IN
an	DT
``	``
inter-exchange	JJ
hot	JJ
line	NN
''	''
to	TO
the	DT
other	JJ
exchanges	NNS
,	,
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
and	CC
the	DT
Federal	NNP
Reserve	NNP
Board	NNP
.	.

He	PRP
camped	VB
out	IN
at	IN
a	DT
high-tech	JJ
nerve	NN
center	NN
on	IN
the	DT
floor	NN
of	IN
the	DT
Big	NNP
Board	NNP
,	,
where	WRB
he	PRP
could	MD
watch	NN
updates	NNS
on	IN
prices	NNS
and	CC
pending	VBG
stock	NN
orders	NNS
.	.

At	IN
about	IN
3:30	NNP
p.m.	NN
EDT	NNP
,	,
S&P	NNP
futures	NNS
resumed	VBD
trading	NN
,	,
and	CC
for	IN
a	DT
brief	NN
time	NN
the	DT
futures	NNS
and	CC
stock	NN
markets	NNS
started	VBN
to	TO
come	VBP
back	RB
in	IN
line	NN
.	.

Buyers	NNS
stepped	VBN
in	IN
to	TO
the	DT
futures	NNS
pit	NN
.	.

But	CC
the	DT
build-up	VB
of	IN
S&P	NNP
futures	NNS
sell	VB
orders	NNS
weighed	VBD
on	IN
the	DT
market	NN
,	,
and	CC
the	DT
link	VB
with	IN
stocks	NNS
began	VBD
to	TO
fray	NN
again	RB
.	.

At	IN
about	IN
3:45	NNP
,	,
the	DT
S&P	NNP
market	NN
careened	VBD
to	TO
still	RB
another	DT
limit	NN
,	,
of	IN
30	CD
points	NNS
down	IN
,	,
and	CC
trading	NN
was	VBD
locked	VBN
again	RB
.	.

Futures	NNPS
traders	NNS
say	VBP
the	DT
S&P	NNP
was	VBD
signaling	VBG
that	IN
the	DT
Dow	NNP
could	MD
fall	VB
as	RB
much	JJ
as	RB
200	CD
points	NNS
.	.

During	IN
this	DT
time	NN
,	,
small	JJ
investors	NNS
began	VBD
ringing	VBG
their	PRP$
brokers	NNS
,	,
wondering	VBG
whether	IN
another	DT
crash	NN
had	VBD
begun	VBN
.	.

At	IN
Prudential-Bache	NNP
Securities	NNPS
Inc.	NNP
,	,
which	WDT
is	VBZ
trying	VBG
to	TO
cater	VB
to	TO
small	JJ
investors	NNS
,	,
some	DT
demoralized	NN
brokers	NNS
thought	VBN
this	DT
would	MD
be	VB
the	DT
final	JJ
confidence-crusher	VB
.	.

That	DT
's	VBZ
when	WRB
George	NNP
L.	NNP
Ball	NNP
,	,
chairman	NN
of	IN
the	DT
Prudential	NNP
Insurance	NNP
Co.	NNP
of	IN
America	NNP
unit	NN
,	,
took	VBD
to	TO
the	DT
internal	JJ
intercom	VB
system	NN
to	TO
declare	VBP
that	IN
the	DT
plunge	NN
was	VBD
only	RB
``	``
mechanical	JJ
.	.
''	''

``	``
I	PRP
have	VB
a	DT
hunch	VB
that	IN
this	DT
particular	JJ
decline	NN
today	NN
is	VBZ
something	NN
`	``
more	RBR
ado	VB
about	IN
less	RBR
.	.
'	POS

It	NNP
would	MD
be	VB
my	PRP$
inclination	NN
to	TO
advise	VB
clients	NNS
not	RB
to	TO
sell	VB
,	,
to	TO
look	VB
for	IN
an	DT
opportunity	NN
to	TO
buy	VB
,	,
''	''
Mr.	NNP
Ball	NNP
told	VBD
the	DT
brokers	NNS
.	.

At	IN
Merrill	NNP
Lynch	NNP
&	CC
Co.	NNP
,	,
the	DT
nation	NN
's	POS
biggest	JJS
brokerage	NN
firm	NN
,	,
a	DT
news	NN
release	NN
was	VBD
prepared	VBN
headlined	VB
``	``
Merrill	NNP
Lynch	NNP
Comments	NNS
on	IN
Market	NNP
Drop	VB
.	.
''	''

The	DT
release	NN
cautioned	VBD
that	IN
``	``
there	EX
are	VBP
significant	JJ
differences	NNS
between	IN
the	DT
current	NN
environment	NN
and	CC
that	IN
of	IN
October	NNP
1987	CD
''	''
and	CC
that	IN
there	EX
are	VBP
still	RB
``	``
attractive	JJ
investment	NN
opportunities	NNS
''	''
in	IN
the	DT
stock	NN
market	NN
.	.

However	RB
,	,
Jeffrey	NNP
B.	NNP
Lane	NNP
,	,
president	NN
of	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc.	NNP
,	,
said	VBD
that	IN
Friday	NNP
's	POS
plunge	NN
is	VBZ
``	``
going	VBG
to	TO
set	VBN
back	RB
''	''
relations	NNS
with	IN
customers	NNS
,	,
``	``
because	IN
it	PRP
reinforces	VBZ
the	DT
concern	NN
of	IN
volatility	NN
.	.

And	CC
I	PRP
think	VBP
a	DT
lot	NN
of	IN
people	NNS
will	MD
harp	VB
on	IN
program	NN
trading	NN
.	.

It	NNP
's	POS
going	VBG
to	TO
bring	VB
the	DT
debate	NN
right	RB
back	RB
to	TO
the	DT
forefront	NN
.	.
''	''

As	IN
the	DT
Dow	NNP
average	NN
ground	VBD
to	TO
its	PRP$
final	JJ
190.58	CD
loss	NN
Friday	NNP
,	,
the	DT
S&P	NNP
pit	NN
stayed	VBN
locked	VBN
at	IN
its	PRP$
30-point	JJ
trading	NN
limit	NN
.	.

Jeffrey	NNP
Yass	VB
of	IN
program	NN
trader	NN
Susquehanna	VB
Investment	NNP
Group	NNP
said	VBD
2,000	CD
S&P	NNP
contracts	NNS
were	VBD
for	IN
sale	NN
on	IN
the	DT
close	VB
,	,
the	DT
equivalent	NN
of	IN
$	$
330	CD
million	CD
in	IN
stock	NN
.	.

But	CC
there	EX
were	VBD
no	DT
buyers	NNS
.	.

While	IN
Friday	NNP
's	POS
debacle	NN
involved	VBN
mainly	RB
professional	JJ
traders	NNS
rather	RB
than	IN
investors	NNS
,	,
it	PRP
left	VBD
the	DT
market	NN
vulnerable	JJ
to	TO
continued	JJ
selling	NN
this	DT
morning	NN
,	,
traders	NNS
said	VBD
.	.

Stock-index	NN
futures	NNS
contracts	NNS
settled	VBD
at	IN
much	JJ
lower	JJR
prices	NNS
than	IN
indexes	NNS
of	IN
the	DT
stock	NN
market	NN
itself	PRP
.	.

At	IN
those	DT
levels	NNS
,	,
stocks	NNS
are	VBP
set	VBN
up	RP
to	TO
be	VB
hammered	VBN
by	IN
index	NN
arbitragers	NNS
,	,
who	WP
lock	VBP
in	IN
profits	NNS
by	IN
buying	VBG
futures	NNS
when	WRB
futures	NNS
prices	NNS
fall	VBP
,	,
and	CC
simultaneously	RB
sell	VB
off	RP
stocks	NNS
.	.

But	CC
nobody	NN
knows	VBZ
at	IN
what	WP
level	NN
the	DT
futures	NNS
and	CC
stocks	NNS
will	MD
open	JJ
today	NN
.	.

The	DT
de-linkage	NN
between	IN
the	DT
stock	NN
and	CC
futures	NNS
markets	NNS
Friday	NNP
will	MD
undoubtedly	RB
cause	VB
renewed	VBN
debate	NN
about	IN
whether	IN
Wall	NNP
Street	NNP
is	VBZ
properly	RB
prepared	VBN
for	IN
another	DT
crash	VB
situation	NN
.	.

The	DT
Big	NNP
Board	NNP
's	POS
Mr.	NNP
Grasso	NNP
said	VBD
,	,
``	``
Our	PRP$
systemic	JJ
performance	NN
was	VBD
good	JJ
.	.
''	''

But	CC
the	DT
exchange	NN
will	MD
``	``
look	VB
at	IN
the	DT
performance	NN
of	IN
all	DT
specialists	NNS
in	IN
all	DT
stocks	NNS
.	.

Obviously	RB
we	PRP
'll	MD
take	VB
a	DT
close	VB
look	VB
at	IN
any	DT
situation	NN
in	IN
which	WDT
we	PRP
think	VBP
the	DT
dealer-community	VB
obligations	NNS
were	VBD
n't	RB
met	VBN
,	,
''	''
he	PRP
said	VBD
.	.

(	(
See	VB
related	VBN
story	NN
:	:
``	``
Fed	NNP
Ready	NNP
to	TO
Inject	VB
Big	NNP
Funds	NNS
''	''
--	:
WSJ	NNP
Oct.	NNP
16	CD
,	,
1989	CD
)	)

But	CC
specialists	NNS
complain	VB
privately	RB
that	IN
just	RB
as	RB
in	IN
the	DT
1987	CD
crash	VB
,	,
the	DT
``	``
upstairs	NN
''	''
firms	NNS
--	:
big	JJ
investment	NN
banks	NNS
that	IN
support	VB
the	DT
market	NN
by	IN
trading	NN
big	JJ
blocks	NNS
of	IN
stock	NN
--	:
stayed	VBN
on	IN
the	DT
sidelines	NNS
during	IN
Friday	NNP
's	POS
blood-letting	VB
.	.

Mr.	NNP
Phelan	NNP
said	VBD
,	,
``	``
It	NNP
will	MD
take	VB
another	DT
day	NN
or	CC
two	CD
''	''
to	TO
analyze	VBP
who	WP
was	VBD
buying	VBG
and	CC
selling	VBG
Friday	NNP
.	.

Concerning	VBG
your	PRP$
Sept.	NNP
21	CD
page-one	JJ
article	NN
on	IN
Prince	NNP
Charles	NNP
and	CC
the	DT
leeches	VB
:	:
It	NNP
's	POS
a	DT
few	JJ
hundred	CD
years	NNS
since	IN
England	NNP
has	VBZ
been	VBN
a	DT
kingdom	NN
.	.

It	NNP
's	POS
now	RB
the	DT
United	NNP
Kingdom	NNP
of	IN
Great	NNP
Britain	NNP
and	CC
Northern	NNP
Ireland	NNP
,	,
comprising	VBG
Wales	NNP
,	,
Northern	NNP
Ireland	NNP
,	,
Scotland	NNP
,	,
and	CC
...	:
oh	UH
yes	UH
,	,
England	NNP
,	,
too	RB
.	.

Just	RB
thought	VBN
you	PRP
'd	MD
like	IN
to	TO
know	VB
.	.

George	NNP
Morton	NNP

Ports	IN
of	IN
Call	VB
Inc.	NNP
reached	VBN
agreements	NNS
to	TO
sell	VB
its	PRP$
remaining	VBG
seven	CD
aircraft	NN
to	TO
buyers	NNS
that	IN
were	VBD
n't	RB
disclosed	VBN
.	.

The	DT
agreements	NNS
bring	VB
to	TO
a	DT
total	JJ
of	IN
nine	CD
the	DT
number	NN
of	IN
planes	NNS
the	DT
travel	NN
company	NN
has	VBZ
sold	VBN
this	DT
year	NN
as	RB
part	NN
of	IN
a	DT
restructuring	NN
.	.

The	DT
company	NN
said	VBD
a	DT
portion	NN
of	IN
the	DT
$	$
32	CD
million	CD
realized	VBD
from	IN
the	DT
sales	NNS
will	MD
be	VB
used	VBN
to	TO
repay	VB
its	PRP$
bank	NN
debt	NN
and	CC
other	JJ
obligations	NNS
resulting	VBG
from	IN
the	DT
currently	RB
suspended	VBN
air-charter	VB
operations	NNS
.	.

Earlier	RBR
the	DT
company	NN
announced	VBD
it	PRP
would	MD
sell	VB
its	PRP$
aging	VBG
fleet	NN
of	IN
Boeing	NNP
Co.	NNP
707s	VB
because	IN
of	IN
increasing	VBG
maintenance	NN
costs	NNS
.	.

A	DT
consortium	NN
of	IN
private	JJ
investors	NNS
operating	VBG
as	RB
LJH	VB
Funding	NNP
Co.	NNP
said	VBD
it	PRP
has	VBZ
made	VBN
a	DT
$	$
409	CD
million	CD
cash	NN
bid	NN
for	IN
most	RBS
of	IN
L.J.	NNP
Hooker	NNP
Corp.	NNP
's	POS
real-estate	NN
and	CC
shopping-center	NN
holdings	NNS
.	.

The	DT
$	$
409	CD
million	CD
bid	NN
includes	VBZ
the	DT
assumption	NN
of	IN
an	DT
estimated	VBD
$	$
300	CD
million	CD
in	IN
secured	VBN
liabilities	NNS
on	IN
those	DT
properties	NNS
,	,
according	VBG
to	TO
those	DT
making	VBG
the	DT
bid	NN
.	.

The	DT
group	NN
is	VBZ
led	VBN
by	IN
Jay	NNP
Shidler	NNP
,	,
chief	NN
executive	NN
officer	NN
of	IN
Shidler	NNP
Investment	NNP
Corp.	NNP
in	IN
Honolulu	NNP
,	,
and	CC
A.	NNP
Boyd	NNP
Simpson	NNP
,	,
chief	NN
executive	NN
of	IN
the	DT
Atlanta-based	JJ
Simpson	NNP
Organization	NNP
Inc	NNP
.	.

Mr.	NNP
Shidler	NNP
's	POS
company	NN
specializes	VBZ
in	IN
commercial	JJ
real-estate	NN
investment	NN
and	CC
claims	VBZ
to	TO
have	VB
$	$
1	CD
billion	CD
in	IN
assets	NNS
;	:
Mr.	NNP
Simpson	NNP
is	VBZ
a	DT
developer	NN
and	CC
a	DT
former	JJ
senior	JJ
executive	NN
of	IN
L.J.	NNP
Hooker	NNP
.	.

``	``
The	DT
assets	NNS
are	VBP
good	JJ
,	,
but	CC
they	PRP
require	VB
more	RBR
money	NN
and	CC
management	NN
''	''
than	IN
can	MD
be	VB
provided	VBN
in	IN
L.J.	NNP
Hooker	NNP
's	POS
current	NN
situation	NN
,	,
said	VBD
Mr.	NNP
Simpson	NNP
in	IN
an	DT
interview	NN
.	.
``	``

Hooker	NNP
's	POS
philosophy	NN
was	VBD
to	TO
build	VB
and	CC
sell	VB
.	.

We	PRP
want	VBP
to	TO
build	VB
and	CC
hold	VBP
.	.
''	''

L.J.	NNP
Hooker	NNP
,	,
based	VBN
in	IN
Atlanta	NNP
,	,
is	VBZ
operating	VBG
with	IN
protection	NN
from	IN
its	PRP$
creditors	NNS
under	IN
Chapter	NN
11	CD
of	IN
the	DT
U.S.	NNP
Bankruptcy	NNP
Code	NNP
.	.

Its	PRP$
parent	NN
company	NN
,	,
Hooker	NNP
Corp.	NNP
of	IN
Sydney	NNP
,	,
Australia	NNP
,	,
is	VBZ
currently	RB
being	VBG
managed	VBD
by	IN
a	DT
court-appointed	JJ
provisional	JJ
liquidator	NN
.	.

Sanford	NNP
Sigoloff	NNP
,	,
chief	NN
executive	NN
of	IN
L.J.	NNP
Hooker	NNP
,	,
said	VBD
yesterday	NN
in	IN
a	DT
statement	NN
that	IN
he	PRP
has	VBZ
not	RB
yet	RB
seen	VBN
the	DT
bid	NN
but	CC
that	IN
he	PRP
would	MD
review	NN
it	PRP
and	CC
bring	VB
it	PRP
to	TO
the	DT
attention	NN
of	IN
the	DT
creditors	NNS
committee	NN
.	.

The	DT
$	$
409	CD
million	CD
bid	NN
is	VBZ
estimated	VBD
by	IN
Mr.	NNP
Simpson	NNP
as	RB
representing	VBG
75	CD
%	NN
of	IN
the	DT
value	NN
of	IN
all	DT
Hooker	NNP
real-estate	NN
holdings	NNS
in	IN
the	DT
U.S.	NNP
.	.

Not	RB
included	VBN
in	IN
the	DT
bid	NN
are	VBP
Bonwit	NNP
Teller	NNP
or	CC
B.	NNP
Altman	NNP
&	CC
Co.	NNP
,	,
L.J.	NNP
Hooker	NNP
's	POS
department-store	JJ
chains	NNS
.	.

The	DT
offer	NN
covers	VBZ
the	DT
massive	JJ
1.8	CD
million-square-foot	VB
Forest	NNP
Fair	NNP
Mall	VB
in	IN
Cincinnati	NNP
,	,
the	DT
800,000	CD
square-foot	VB
Richland	VB
Fashion	NN
Mall	VB
in	IN
Columbia	NNP
,	,
S.C.	NNP
,	,
and	CC
the	DT
700,000	CD
square-foot	VB
Thornton	NNP
Town	NNP
Center	NNP
mall	NN
in	IN
Thornton	NNP
,	,
Colo	NNP
.	.

The	DT
Thornton	NNP
mall	NN
opened	VBN
Sept.	NNP
19	CD
with	IN
a	DT
Bigg	VB
's	POS
hypermarket	VB
as	RB
its	PRP$
anchor	VB
;	:
the	DT
Columbia	NNP
mall	NN
is	VBZ
expected	VBN
to	TO
open	JJ
Nov.	NNP
15	CD
.	.

Other	JJ
Hooker	NNP
properties	NNS
included	VBN
are	VBP
a	DT
20-story	JJ
office	NN
tower	NN
in	IN
midtown	NN
Atlanta	NNP
,	,
expected	VBN
to	TO
be	VB
completed	VBN
next	JJ
February	NNP
;	:
vacant	JJ
land	NN
sites	NNS
in	IN
Florida	NNP
and	CC
Ohio	NNP
;	:
L.J.	NNP
Hooker	NNP
International	NNP
,	,
the	DT
commercial	JJ
real-estate	NN
brokerage	NN
company	NN
that	IN
once	RB
did	VBD
business	NN
as	RB
Merrill	NNP
Lynch	NNP
Commercial	NNP
Real	RB
Estate	NNP
,	,
plus	CC
other	JJ
shopping	NN
centers	NNS
.	.

The	DT
consortium	NN
was	VBD
put	VBN
together	RB
by	IN
Hoare	VB
Govett	VB
,	,
the	DT
London-based	JJ
investment	NN
banking	VBG
company	NN
that	IN
is	VBZ
a	DT
subsidiary	NN
of	IN
Security	NNP
Pacific	NNP
Corp	NNP
.	.

``	``
We	PRP
do	VB
n't	RB
anticipate	VB
any	DT
problems	NNS
in	IN
raising	VBG
the	DT
funding	NN
for	IN
the	DT
bid	NN
,	,
''	''
said	VBD
Allan	NNP
Campbell	NNP
,	,
the	DT
head	VB
of	IN
mergers	NNS
and	CC
acquisitions	NNS
at	IN
Hoare	VB
Govett	VB
,	,
in	IN
an	DT
interview	NN
.	.

Hoare	IN
Govett	NNP
is	VBZ
acting	VBG
as	RB
the	DT
consortium	NN
's	POS
investment	NN
bankers	NNS
.	.

According	VBG
to	TO
people	NNS
familiar	JJ
with	IN
the	DT
consortium	NN
,	,
the	DT
bid	NN
was	VBD
code-named	NNP
Project	NNP
Klute	VB
,	,
a	DT
reference	NN
to	TO
the	DT
film	NN
``	``
Klute	VB
''	''
in	IN
which	WDT
a	DT
prostitute	NN
played	VBD
by	IN
actress	NN
Jane	NNP
Fonda	NNP
is	VBZ
saved	VBN
from	IN
a	DT
psychotic	VB
businessman	NN
by	IN
a	DT
police	NNS
officer	NN
named	VBN
John	NNP
Klute	VB
.	.

L.J.	NNP
Hooker	NNP
was	VBD
a	DT
small	JJ
home-building	JJ
company	NN
based	VBN
in	IN
Atlanta	NNP
in	IN
1979	CD
when	WRB
Mr.	NNP
Simpson	NNP
was	VBD
hired	VBN
to	TO
push	VB
it	PRP
into	IN
commercial	JJ
development	NN
.	.

The	DT
company	NN
grew	VBD
modestly	RB
until	IN
1986	CD
,	,
when	WRB
a	DT
majority	NN
position	NN
in	IN
Hooker	NNP
Corp.	NNP
was	VBD
acquired	VBN
by	IN
Australian	JJ
developer	NN
George	NNP
Herscu	VB
,	,
currently	RB
Hooker	NNP
's	POS
chairman	NN
.	.

Mr.	NNP
Herscu	VB
proceeded	VBD
to	TO
launch	VB
an	DT
ambitious	JJ
,	,
but	CC
ill-fated	VB
,	,
$	$
1	CD
billion	CD
acquisition	NN
binge	NN
that	IN
included	VBN
Bonwit	NNP
Teller	NNP
and	CC
B.	NNP
Altman	NNP
&	CC
Co.	NNP
,	,
as	RB
well	RB
as	RB
majority	NN
positions	NNS
in	IN
Merksamer	NNP
Jewelers	NNPS
,	,
a	DT
Sacramento	NNP
chain	NN
;	:
Sakowitz	NNP
Inc.	NNP
,	,
the	DT
Houston-based	JJ
retailer	NN
,	,
and	CC
Parisian	VB
Inc.	NNP
,	,
the	DT
Southeast	NNP
department-store	JJ
chain	NN
.	.

Eventually	RB
Mr.	NNP
Simpson	NNP
and	CC
Mr.	NNP
Herscu	VB
had	VBD
a	DT
falling	VBG
out	IN
over	IN
the	DT
direction	NN
of	IN
the	DT
company	NN
,	,
and	CC
Mr.	NNP
Simpson	NNP
said	VBD
he	PRP
resigned	VBD
in	IN
1988	CD
.	.

Since	IN
then	RB
,	,
Hooker	NNP
Corp.	NNP
has	VBZ
sold	VBN
its	PRP$
interest	NN
in	IN
the	DT
Parisian	VB
chain	NN
back	RB
to	TO
Parisian	VB
's	POS
management	NN
and	CC
is	VBZ
currently	RB
attempting	VBG
to	TO
sell	VB
the	DT
B.	NNP
Altman	NNP
&	CC
Co.	NNP
chain	NN
.	.

In	IN
addition	NN
,	,
Robert	NNP
Sakowitz	NNP
,	,
chief	NN
executive	NN
of	IN
the	DT
Sakowitz	NNP
chain	NN
,	,
is	VBZ
seeking	VBG
funds	NNS
to	TO
buy	VB
out	IN
the	DT
Hooker	NNP
interest	NN
in	IN
his	PRP$
company	NN
.	.

The	DT
Merksamer	NNP
chain	NN
is	VBZ
currently	RB
being	VBG
offered	VBD
for	IN
sale	NN
by	IN
First	NNP
Boston	NNP
Corp	NNP
.	.

Reached	IN
in	IN
Honolulu	NNP
,	,
Mr.	NNP
Shidler	NNP
said	VBD
that	IN
he	PRP
believes	VBZ
the	DT
various	JJ
Hooker	NNP
malls	NNS
can	MD
become	VB
profitable	JJ
with	IN
new	JJ
management	NN
.	.

``	``
These	DT
are	VBP
n't	RB
mature	VB
assets	NNS
,	,
but	CC
they	PRP
have	VB
the	DT
potential	JJ
to	TO
be	VB
so	RB
,	,
''	''
said	VBD
Mr.	NNP
Shidler	NNP
.	.

``	``
Managed	VB
properly	RB
,	,
and	CC
with	IN
a	DT
long-term	JJ
outlook	NN
,	,
these	DT
can	MD
become	VB
investment-grade	JJ
quality	NN
properties	NNS
.	.

Canadian	JJ
steel-ingot	VB
production	NN
totaled	VBD
291,890	CD
metric	JJ
tons	NNS
in	IN
the	DT
week	NN
ended	VBD
Oct.	NNP
7	CD
,	,
up	RP
14.8	CD
%	NN
from	IN
the	DT
preceding	VBG
week	NN
's	POS
total	JJ
of	IN
254,280	VB
tons	NNS
,	,
Statistics	NNP
Canada	NNP
,	,
a	DT
federal	JJ
agency	NN
,	,
said	VBD
.	.

The	DT
week	NN
's	POS
total	JJ
was	VBD
up	RP
6.2	CD
%	NN
from	IN
274,963	VB
tons	NNS
a	DT
year	NN
earlier	JJR
.	.

The	DT
year-to-date	JJ
total	JJ
was	VBD
12,006,883	VB
tons	NNS
,	,
up	RP
7.8	CD
%	NN
from	IN
11,141,711	VB
tons	NNS
a	DT
year	NN
earlier	JJR
.	.

The	DT
Treasury	NNP
plans	NNS
to	TO
raise	VB
$	$
175	CD
million	CD
in	IN
new	JJ
cash	NN
Thursday	NNP
by	IN
selling	VBG
about	IN
$	$
9.75	CD
billion	CD
of	IN
52-week	JJ
bills	NNS
and	CC
redeeming	JJ
$	$
9.58	CD
billion	CD
of	IN
maturing	VBG
bills	NNS
.	.

The	DT
bills	NNS
will	MD
be	VB
dated	VBN
Oct.	NNP
26	CD
and	CC
will	MD
mature	VB
Oct.	NNP
25	CD
,	,
1990	CD
.	.

They	PRP
will	MD
be	VB
available	JJ
in	IN
minimum	JJ
denominations	NNS
of	IN
$	$
10,000	CD
.	.

Bids	NNS
must	MD
be	VB
received	VBD
by	IN
1	CD
p.m.	NN
EDT	NNP
Thursday	NNP
at	IN
the	DT
Treasury	NNP
or	CC
at	IN
Federal	NNP
Reserve	NNP
banks	NNS
or	CC
branches	NNS
.	.

As	IN
small	JJ
investors	NNS
peppered	VB
their	PRP$
mutual	JJ
funds	NNS
with	IN
phone	NN
calls	VBZ
over	IN
the	DT
weekend	NN
,	,
big	JJ
fund	NN
managers	NNS
said	VBD
they	PRP
have	VB
a	DT
strong	JJ
defense	NN
against	IN
any	DT
wave	NN
of	IN
withdrawals	NNS
:	:
cash	NN
.	.

Unlike	IN
the	DT
weekend	NN
before	IN
Black	NNP
Monday	NNP
,	,
the	DT
funds	NNS
were	VBD
n't	RB
swamped	VBN
with	IN
heavy	JJ
withdrawal	NN
requests	NNS
.	.

And	CC
many	JJ
fund	NN
managers	NNS
have	VB
built	VBN
up	RP
cash	NN
levels	NNS
and	CC
say	VBP
they	PRP
will	MD
be	VB
buying	VBG
stock	NN
this	DT
week	NN
.	.

At	IN
Fidelity	NNP
Investments	NNPS
,	,
the	DT
nation	NN
's	POS
largest	JJS
fund	NN
company	NN
,	,
telephone	NN
volume	NN
was	VBD
up	RP
sharply	RB
,	,
but	CC
it	PRP
was	VBD
still	RB
at	IN
just	RB
half	PDT
the	DT
level	NN
of	IN
the	DT
weekend	NN
preceding	VBG
Black	NNP
Monday	NNP
in	IN
1987	CD
.	.

The	DT
Boston	NNP
firm	JJ
said	VBD
stock-fund	NN
redemptions	NNS
were	VBD
running	VBG
at	IN
less	RBR
than	IN
one-third	NN
the	DT
level	NN
two	CD
years	NNS
ago	IN
.	.

As	IN
of	IN
yesterday	NN
afternoon	NN
,	,
the	DT
redemptions	NNS
represented	VBN
less	RBR
than	IN
15	CD
%	NN
of	IN
the	DT
total	JJ
cash	NN
position	NN
of	IN
about	IN
$	$
2	LS
billion	CD
of	IN
Fidelity	NNP
's	POS
stock	NN
funds	NNS
.	.

``	``
Two	CD
years	NNS
ago	IN
there	EX
were	VBD
massive	JJ
redemption	NN
levels	NNS
over	IN
the	DT
weekend	NN
and	CC
a	DT
lot	NN
of	IN
fear	VBP
around	IN
,	,
''	''
said	VBD
C.	NNP
Bruce	NNP
Johnstone	VB
,	,
who	WP
runs	VBZ
Fidelity	NNP
Investments	NNPS
'	POS
$	$
5	CD
billion	CD
Equity-Income	VB
Fund	NNP
.	.

``	``
This	DT
feels	VBZ
more	RBR
like	IN
a	DT
one-shot	JJ
deal	NN
.	.

People	NNS
are	VBP
n't	RB
panicking	VBG
.	.
''	''

The	DT
test	NN
may	MD
come	VBP
today	NN
.	.

Friday	NNP
's	POS
stock	NN
market	NN
sell-off	NN
came	VBD
too	RB
late	JJ
for	IN
many	JJ
investors	NNS
to	TO
act	VB
.	.

Some	DT
shareholders	NNS
have	VB
held	VBD
off	RP
until	IN
today	NN
because	IN
any	DT
fund	NN
exchanges	NNS
made	VBN
after	IN
Friday	NNP
's	POS
close	VB
would	MD
take	VB
place	NN
at	IN
today	NN
's	POS
closing	VBG
prices	NNS
.	.

Stock	NNP
fund	NN
redemptions	NNS
during	IN
the	DT
1987	CD
debacle	NN
did	VBD
n't	RB
begin	VB
to	TO
snowball	VB
until	IN
after	IN
the	DT
market	NN
opened	VBN
on	IN
Black	NNP
Monday	NNP
.	.

But	CC
fund	NN
managers	NNS
say	VBP
they	PRP
're	VBP
ready	JJ
.	.

Many	DT
have	VBP
raised	VBN
cash	NN
levels	NNS
,	,
which	WDT
act	VB
as	RB
a	DT
buffer	VB
against	IN
steep	JJ
market	NN
declines	NNS
.	.

Mario	NNP
Gabelli	NNP
,	,
for	IN
instance	NN
,	,
holds	VBZ
cash	NN
positions	NNS
well	RB
above	IN
20	CD
%	NN
in	IN
several	JJ
of	IN
his	PRP$
funds	NNS
.	.

Windsor	NNP
Fund	NNP
's	POS
John	NNP
Neff	NNP
and	CC
Mutual	NNP
Series	NNP
'	POS
Michael	NNP
Price	NNP
said	VBD
they	PRP
had	VBD
raised	VBN
their	PRP$
cash	NN
levels	NNS
to	TO
more	RBR
than	IN
20	CD
%	NN
and	CC
30	CD
%	NN
,	,
respectively	RB
,	,
this	DT
year	NN
.	.

Even	RB
Peter	NNP
Lynch	NNP
,	,
manager	NN
of	IN
Fidelity	NNP
's	POS
$	$
12.7	CD
billion	CD
Magellan	NNP
Fund	NNP
,	,
the	DT
nation	NN
's	POS
largest	JJS
stock	NN
fund	NN
,	,
built	VBN
up	RP
cash	NN
to	TO
7	CD
%	NN
or	CC
$	$
850	CD
million	CD
.	.

One	CD
reason	NN
is	VBZ
that	IN
after	IN
two	CD
years	NNS
of	IN
monthly	JJ
net	JJ
redemptions	NNS
,	,
the	DT
fund	NN
posted	VBD
net	JJ
inflows	NNS
of	IN
money	NN
from	IN
investors	NNS
in	IN
August	NNP
and	CC
September	NNP
.	.

``	``
I	PRP
've	VBP
let	VBN
the	DT
money	NN
build	VB
up	RP
,	,
''	''
Mr.	NNP
Lynch	NNP
said	VBD
,	,
who	WP
added	VBD
that	IN
he	PRP
has	VBZ
had	VBD
trouble	NN
finding	VBG
stocks	NNS
he	PRP
likes	VBZ
.	.

Not	RB
all	DT
funds	NNS
have	VB
raised	VBN
cash	NN
levels	NNS
,	,
of	IN
course	NN
.	.

As	IN
a	DT
group	NN
,	,
stock	NN
funds	NNS
held	VBD
10.2	CD
%	NN
of	IN
assets	NNS
in	IN
cash	NN
as	RB
of	IN
August	NNP
,	,
the	DT
latest	JJS
figures	NNS
available	JJ
from	IN
the	DT
Investment	NNP
Company	NNP
Institute	NNP
.	.

That	DT
was	VBD
modestly	RB
higher	JJR
than	IN
the	DT
8.8	CD
%	NN
and	CC
9.2	CD
%	NN
levels	NNS
in	IN
August	NNP
and	CC
September	NNP
of	IN
1987	CD
.	.

Also	RB
,	,
persistent	JJ
redemptions	NNS
would	MD
force	NN
some	DT
fund	NN
managers	NNS
to	TO
dump	VB
stocks	NNS
to	TO
raise	VB
cash	NN
.	.

But	CC
a	DT
strong	JJ
level	NN
of	IN
investor	NN
withdrawals	NNS
is	VBZ
much	JJ
more	RBR
unlikely	JJ
this	DT
time	NN
around	IN
,	,
fund	NN
managers	NNS
said	VBD
.	.

A	DT
major	JJ
reason	NN
is	VBZ
that	IN
investors	NNS
already	RB
have	VB
sharply	RB
scaled	VBN
back	RB
their	PRP$
purchases	NNS
of	IN
stock	NN
funds	NNS
since	IN
Black	NNP
Monday	NNP
.	.

Stock-fund	NN
sales	NNS
have	VB
rebounded	VBD
in	IN
recent	JJ
months	NNS
,	,
but	CC
monthly	JJ
net	JJ
purchases	NNS
are	VBP
still	RB
running	VBG
at	IN
less	RBR
than	IN
half	DT
1987	CD
levels	NNS
.	.

``	``
There	EX
's	POS
not	RB
nearly	RB
as	RB
much	JJ
froth	VB
,	,
''	''
said	VBD
John	NNP
Bogle	VB
,	,
chairman	NN
of	IN
Vanguard	NNP
Group	NNP
Inc.	NNP
,	,
a	DT
big	JJ
Valley	NNP
Forge	NNP
,	,
Pa.	NNP
,	,
fund	NN
company	NN
.	.

Many	DT
fund	NN
managers	NNS
argue	VBP
that	IN
now	RB
's	POS
the	DT
time	NN
to	TO
buy	VB
.	.

Vincent	NNP
Bajakian	VB
,	,
manager	NN
of	IN
the	DT
$	$
1.8	CD
billion	CD
Wellington	NNP
Fund	NNP
,	,
added	VBD
to	TO
his	PRP$
positions	NNS
in	IN
Bristol-Myers	NNP
Squibb	NNP
,	,
Woolworth	NNP
and	CC
Dun	NNP
&	CC
Bradstreet	NNP
Friday	NNP
.	.

And	CC
today	NN
he	PRP
'll	MD
be	VB
looking	VBG
to	TO
buy	VB
drug	NN
stocks	NNS
like	IN
Eli	NNP
Lilly	NNP
,	,
Pfizer	NNP
and	CC
American	JJ
Home	NNP
Products	NNPS
whose	WP$
dividend	NN
yields	NNS
have	VB
been	VBN
bolstered	VBD
by	IN
stock	NN
declines	NNS
.	.

Fidelity	NNP
's	POS
Mr.	NNP
Lynch	NNP
,	,
for	IN
his	PRP$
part	NN
,	,
snapped	VBD
up	RP
Southern	NNP
Co.	NNP
shares	NNS
Friday	NNP
after	IN
the	DT
stock	NN
got	VBD
hammered	VBN
.	.

If	IN
the	DT
market	NN
drops	VBZ
further	RBR
today	NN
,	,
he	PRP
said	VBD
he	PRP
'll	MD
be	VB
buying	VBG
blue	JJ
chips	NNS
such	JJ
as	IN
Bristol-Myers	NNP
and	CC
Kellogg	NNP
.	.

``	``
If	IN
they	PRP
croak	VB
stocks	NNS
like	IN
that	IN
,	,
''	''
he	PRP
said	VBD
,	,
it	PRP
presents	VBZ
an	DT
opportunity	NN
that	IN
is	VBZ
``	``
the	DT
kind	NN
of	IN
thing	NN
you	PRP
dream	VBP
about	IN
.	.
''	''

Major	NNP
mutual-fund	JJ
groups	NNS
said	VBD
phone	NN
calls	VBZ
were	VBD
arriving	VBG
at	IN
twice	RB
the	DT
normal	JJ
weekend	NN
pace	NN
yesterday	NN
.	.

But	CC
most	RBS
investors	NNS
were	VBD
seeking	VBG
share	NN
prices	NNS
and	CC
other	JJ
information	NN
.	.

Trading	NNP
volume	NN
was	VBD
only	RB
modestly	RB
higher	JJR
than	IN
normal	JJ
.	.

Still	RB
,	,
fund	NN
groups	NNS
are	VBP
n't	RB
taking	VBG
any	DT
chances	NNS
.	.

They	PRP
hope	VBP
to	TO
avoid	VB
the	DT
jammed	VBD
phone	NN
lines	NNS
and	CC
other	JJ
snags	NNS
that	IN
infuriated	VB
some	DT
fund	NN
investors	NNS
in	IN
October	NNP
1987	CD
.	.

Fidelity	NNP
on	IN
Saturday	NNP
opened	VBN
its	PRP$
54	CD
walk-in	VB
investor	NN
centers	NNS
across	IN
the	DT
country	NN
.	.

The	DT
centers	NNS
normally	RB
are	VBP
closed	VBN
through	IN
the	DT
weekend	NN
.	.

In	IN
addition	NN
,	,
East	NNP
Coast	NNP
centers	NNS
will	MD
open	JJ
at	IN
7:30	CD
EDT	NNP
this	DT
morning	NN
,	,
instead	RB
of	IN
the	DT
normal	JJ
8:30	CD
.	.

T.	NNP
Rowe	NNP
Price	NNP
Associates	NNPS
Inc.	NNP
increased	VBN
its	PRP$
staff	NN
of	IN
phone	NN
representatives	NNS
to	TO
handle	VB
investor	NN
requests	NNS
.	.

The	DT
Baltimore-based	JJ
group	NN
noted	VBD
that	IN
some	DT
investors	NNS
moved	VBD
money	NN
from	IN
stock	NN
funds	NNS
to	TO
money-market	NN
funds	NNS
.	.

But	CC
most	RBS
investors	NNS
seemed	VBD
to	TO
be	VB
``	``
in	IN
an	DT
information	NN
mode	NN
rather	RB
than	IN
in	IN
a	DT
transaction	NN
mode	NN
,	,
''	''
said	VBD
Steven	NNP
Norwitz	NNP
,	,
a	DT
vice	NN
president	NN
.	.

And	CC
Vanguard	NNP
,	,
among	IN
other	JJ
groups	NNS
,	,
said	VBD
it	PRP
was	VBD
adding	VBG
more	RBR
phone	NN
representatives	NNS
today	NN
to	TO
help	VB
investors	NNS
get	VB
through	IN
.	.

In	IN
an	DT
unusual	JJ
move	NN
,	,
several	JJ
funds	NNS
moved	VBD
to	TO
calm	JJ
investors	NNS
with	IN
recordings	NNS
on	IN
their	PRP$
toll-free	JJ
phone	NN
lines	NNS
.	.

``	``
We	PRP
view	NN
{	(
Friday	NNP
's	POS
}	)
market	NN
decline	NN
as	RB
offering	VBG
us	PRP
a	DT
buying	VBG
opportunity	NN
as	RB
long-term	JJ
investors	NNS
,	,
''	''
a	DT
recording	NN
at	IN
Gabelli	NNP
&	CC
Co.	NNP
funds	NNS
said	VBD
over	IN
the	DT
weekend	NN
.	.

The	DT
Janus	NNP
Group	NNP
had	VBD
a	DT
similar	JJ
recording	NN
for	IN
investors	NNS
.	.

Several	JJ
fund	NN
managers	NNS
expect	VBP
a	DT
rough	JJ
market	NN
this	DT
morning	NN
before	IN
prices	NNS
stabilize	VBP
.	.

Some	DT
early	JJ
selling	VBG
is	VBZ
likely	JJ
to	TO
stem	VB
from	IN
investors	NNS
and	CC
portfolio	NN
managers	NNS
who	WP
want	VBP
to	TO
lock	NN
in	IN
this	DT
year	NN
's	POS
fat	JJ
profits	NNS
.	.

Stock	NNP
funds	NNS
have	VB
averaged	VBD
a	DT
staggering	JJ
gain	NN
of	IN
25	CD
%	NN
through	IN
September	NNP
,	,
according	VBG
to	TO
Lipper	NNP
Analytical	NNP
Services	NNPS
Inc	NNP
.	.

Elaine	NNP
Garzarelli	VB
,	,
who	WP
runs	VBZ
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc.	NNP
's	POS
$	$
335	CD
million	CD
Sector	VB
Analysis	NN
Portfolio	NN
,	,
predicts	VBZ
the	DT
market	NN
will	MD
open	JJ
down	IN
at	IN
least	JJS
50	CD
points	NNS
on	IN
technical	JJ
factors	NNS
and	CC
``	``
some	DT
panic	NN
selling	VBG
.	.
''	''

But	CC
she	PRP
expects	VBZ
prices	NNS
to	TO
rebound	NN
soon	RB
and	CC
is	VBZ
telling	VBG
investors	NNS
she	PRP
expects	VBZ
the	DT
stock	NN
market	NN
wo	MD
n't	RB
decline	NN
more	RBR
than	IN
10	CD
%	NN
to	TO
15	CD
%	NN
from	IN
recent	JJ
highs	NNS
.	.

``	``
This	DT
is	VBZ
not	RB
a	DT
major	JJ
crash	VB
,	,
''	''
she	PRP
said	VBD
.	.

Nevertheless	RB
,	,
Ms.	NNP
Garzarelli	VB
said	VBD
she	PRP
was	VBD
swamped	VBN
with	IN
phone	NN
calls	VBZ
over	IN
the	DT
weekend	NN
from	IN
nervous	JJ
shareholders	NNS
.	.

``	``
Half	NN
of	IN
them	PRP
are	VBP
really	RB
scared	VBN
and	CC
want	VBP
to	TO
sell	VB
,	,
''	''
she	PRP
said	VBD
,	,
``	``
but	CC
I	PRP
'm	VBP
trying	VBG
to	TO
talk	NN
them	PRP
out	IN
of	IN
it	PRP
.	.
''	''

She	PRP
added	VBD
,	,
``	``
If	IN
they	PRP
all	DT
were	VBD
bullish	JJ
,	,
I	PRP
'd	MD
really	RB
be	VB
upset	JJ
.	.
''	''

The	DT
backdrop	NN
to	TO
Friday	NNP
's	POS
slide	NN
was	VBD
markedly	RB
different	JJ
from	IN
that	IN
of	IN
the	DT
October	NNP
1987	CD
crash	VB
,	,
fund	NN
managers	NNS
argue	VBP
.	.

Two	CD
years	NNS
ago	IN
,	,
unlike	IN
today	NN
,	,
the	DT
dollar	NN
was	VBD
weak	JJ
,	,
interest	NN
rates	NNS
were	VBD
rising	VBG
and	CC
the	DT
market	NN
was	VBD
very	RB
overvalued	VBN
,	,
they	PRP
say	VBP
.	.

``	``
From	IN
the	DT
investors	NNS
'	POS
standpoint	NN
,	,
institutions	NNS
and	CC
individuals	NNS
learned	VBN
a	DT
painful	JJ
lesson	NN
...	:
by	IN
selling	VBG
at	IN
the	DT
lows	NNS
''	''
on	IN
Black	NNP
Monday	NNP
,	,
said	VBD
Stephen	NNP
Boesel	NNP
,	,
manager	NN
of	IN
the	DT
$	$
580	CD
million	CD
T.	NNP
Rowe	NNP
Price	NNP
Growth	NNP
and	CC
Income	NNP
Fund	NNP
.	.

This	DT
time	NN
,	,
``	``
I	PRP
do	VB
n't	RB
think	VBP
we	PRP
'll	MD
get	VB
a	DT
panic	NN
reaction	NN
.	.

Newport	NNP
Corp.	NNP
said	VBD
it	PRP
expects	VBZ
to	TO
report	NN
fiscal-first-quarter	VB
earnings	NNS
of	IN
between	IN
15	CD
cents	NNS
and	CC
19	CD
cents	NNS
a	DT
share	NN
,	,
somewhat	RB
below	IN
analysts	NNS
'	POS
estimates	NNS
of	IN
19	CD
cents	NNS
to	TO
23	CD
cents	NNS
.	.

The	DT
maker	NN
of	IN
scientific	JJ
instruments	NNS
and	CC
laser	NN
parts	NNS
said	VBD
orders	NNS
fell	VBD
below	IN
expectations	NNS
in	IN
recent	JJ
months	NNS
.	.

A	DT
spokesman	NN
added	VBD
that	IN
sales	NNS
in	IN
the	DT
current	NN
quarter	NN
will	MD
about	IN
equal	JJ
the	DT
yearearlier	VB
quarter	NN
's	POS
figure	NN
,	,
when	WRB
Newport	NNP
reported	VBN
net	JJ
income	NN
of	IN
$	$
1.7	CD
million	CD
,	,
or	CC
21	CD
cents	NNS
a	DT
share	NN
,	,
on	IN
$	$
14.1	CD
million	CD
in	IN
sales	NNS
.	.

Ripples	IN
from	IN
the	DT
strike	NN
by	IN
55,000	CD
Machinists	NNS
union	NN
members	NNS
against	IN
Boeing	NNP
Co.	NNP
reached	VBN
air	NN
carriers	NNS
Friday	NNP
as	RB
America	NNP
West	NNP
Airlines	NNPS
announced	VBD
it	PRP
will	MD
postpone	VB
its	PRP$
new	JJ
service	VB
out	IN
of	IN
Houston	NNP
because	IN
of	IN
delays	NNS
in	IN
receiving	VBG
aircraft	NN
from	IN
the	DT
Seattle	NNP
jet	NN
maker	NN
.	.

Peter	NNP
Otradovec	VB
,	,
vice	NN
president	NN
for	IN
planning	NN
at	IN
the	DT
Phoenix	NNP
,	,
Ariz.	NNP
,	,
carrier	NN
,	,
said	VBD
in	IN
an	DT
interview	NN
that	IN
the	DT
work	NN
stoppage	NN
at	IN
Boeing	NNP
,	,
now	RB
entering	VBG
its	PRP$
13th	JJ
day	NN
,	,
``	``
has	VBZ
caused	VBN
some	DT
turmoil	NN
in	IN
our	PRP$
scheduling	NN
''	''
and	CC
that	IN
more	RBR
than	IN
500	CD
passengers	NNS
who	WP
were	VBD
booked	VBN
to	TO
fly	VBP
out	IN
of	IN
Houston	NNP
on	IN
America	NNP
West	NNP
would	MD
now	RB
be	VB
put	VBN
on	IN
other	JJ
airlines	NNS
.	.

Mr.	NNP
Otradovec	VB
said	VBD
Boeing	NNP
told	VBD
America	NNP
West	NNP
that	IN
the	DT
757	CD
it	PRP
was	VBD
supposed	VBD
to	TO
get	VB
this	DT
Thursday	NNP
would	MD
n't	RB
be	VB
delivered	VBN
until	IN
Nov.	NNP
7	CD
--	:
the	DT
day	NN
after	IN
the	DT
airline	NN
had	VBD
been	VBN
planning	NN
to	TO
initiate	VB
service	VB
at	IN
Houston	NNP
with	IN
four	CD
daily	JJ
flights	NNS
,	,
including	VBG
three	CD
nonstops	VB
to	TO
Phoenix	NNP
and	CC
one	CD
nonstop	JJ
to	TO
Las	NNP
Vegas	NNP
.	.

Now	RB
,	,
those	DT
routes	NNS
are	VBP
n't	RB
expected	VBN
to	TO
begin	VB
until	IN
Jan	NNP
.	.

Boeing	NNP
is	VBZ
also	RB
supposed	VBD
to	TO
send	VBP
to	TO
America	NNP
West	NNP
another	DT
757	CD
twin-engine	JJ
aircraft	NN
as	RB
well	RB
as	RB
a	DT
737	CD
by	IN
year	NN
's	POS
end	NN
.	.

Those	DT
,	,
too	RB
,	,
are	VBP
almost	RB
certain	JJ
to	TO
arrive	VB
late	JJ
.	.

At	IN
this	DT
point	NN
,	,
no	DT
other	JJ
America	NNP
West	NNP
flights	NNS
--	:
including	VBG
its	PRP$
new	JJ
service	VB
at	IN
San	NNP
Antonio	NNP
,	,
Texas	NNP
;	:
Newark	NNP
,	,
N.J.	NNP
;	:
and	CC
Palmdale	VB
,	,
Calif.	NNP
--	:
have	VB
been	VBN
affected	VBD
by	IN
the	DT
delays	NNS
in	IN
Boeing	NNP
deliveries	NNS
.	.

Nevertheless	RB
,	,
the	DT
company	NN
's	POS
reaction	NN
underscores	VBZ
the	DT
domino	NN
effect	NN
that	IN
a	DT
huge	JJ
manufacturer	NN
such	JJ
as	RB
Boeing	NNP
can	MD
have	VB
on	IN
other	JJ
parts	NNS
of	IN
the	DT
economy	NN
.	.

It	NNP
also	RB
is	VBZ
sure	JJ
to	TO
help	VB
the	DT
machinists	NNS
put	VBN
added	VBD
pressure	NN
on	IN
the	DT
company	NN
.	.

``	``
I	PRP
just	RB
do	VB
n't	RB
feel	VBP
that	IN
the	DT
company	NN
can	MD
really	RB
stand	VB
or	CC
would	MD
want	VBP
a	DT
prolonged	JJ
walkout	NN
,	,
''	''
Tom	NNP
Baker	NNP
,	,
president	NN
of	IN
Machinists	NNS
'	POS
District	NNP
751	VB
,	,
said	VBD
in	IN
an	DT
interview	NN
yesterday	NN
.	.

``	``
I	PRP
do	VB
n't	RB
think	VBP
their	PRP$
customers	NNS
would	MD
like	IN
it	PRP
very	RB
much	JJ
.	.
''	''

America	NNP
West	NNP
,	,
though	IN
,	,
is	VBZ
a	DT
smaller	JJR
airline	NN
and	CC
therefore	RB
more	RBR
affected	VBD
by	IN
the	DT
delayed	VBD
delivery	NN
of	IN
a	DT
single	JJ
plane	NN
than	IN
many	JJ
of	IN
its	PRP$
competitors	NNS
would	MD
be	VB
.	.

``	``
I	PRP
figure	NN
that	IN
American	JJ
and	CC
United	NNP
probably	RB
have	VB
such	JJ
a	DT
hard	RB
time	NN
counting	VBG
all	DT
the	DT
planes	NNS
in	IN
their	PRP$
fleets	NNS
,	,
they	PRP
might	MD
not	RB
miss	VBP
one	CD
at	IN
all	DT
,	,
''	''
Mr.	NNP
Otradovec	VB
said	VBD
.	.

Indeed	RB
,	,
a	DT
random	JJ
check	VB
Friday	NNP
did	VBD
n't	RB
seem	VBP
to	TO
indicate	VB
that	IN
the	DT
strike	NN
was	VBD
having	VBG
much	JJ
of	IN
an	DT
effect	NN
on	IN
other	JJ
airline	NN
operations	NNS
.	.

Southwest	NNP
Airlines	NNPS
has	VBZ
a	DT
Boeing	NNP
737-300	VB
set	VBN
for	IN
delivery	NN
at	IN
the	DT
end	NN
of	IN
this	DT
month	NN
and	CC
expects	VBZ
to	TO
have	VB
the	DT
plane	NN
on	IN
time	NN
.	.

``	``
It	NNP
's	POS
so	RB
close	VB
to	TO
completion	NN
,	,
Boeing	NNP
's	POS
told	VBD
us	PRP
there	EX
wo	MD
n't	RB
be	VB
a	DT
problem	NN
,	,
''	''
said	VBD
a	DT
Southwest	NNP
spokesman	NN
.	.

A	DT
spokesman	NN
for	IN
AMR	NNP
Corp.	NNP
said	VBD
Boeing	NNP
has	VBZ
assured	VBN
American	JJ
Airlines	NNPS
it	PRP
will	MD
deliver	VB
a	DT
757	CD
on	IN
time	NN
later	RB
this	DT
month	NN
.	.

American	JJ
is	VBZ
preparing	VBG
to	TO
take	VB
delivery	NN
of	IN
another	DT
757	CD
in	IN
early	RB
December	NNP
and	CC
20	CD
more	RBR
next	JJ
year	NN
and	CC
is	VBZ
n't	RB
anticipating	VBG
any	DT
changes	NNS
in	IN
that	IN
timetable	NN
.	.

In	IN
Seattle	NNP
,	,
a	DT
Boeing	NNP
spokesman	NN
explained	VBD
that	IN
the	DT
company	NN
has	VBZ
been	VBN
in	IN
constant	JJ
communication	NN
with	IN
all	DT
of	IN
its	PRP$
customers	NNS
and	CC
that	IN
it	PRP
was	VBD
impossible	JJ
to	TO
predict	VBP
what	WP
further	JJ
disruptions	NNS
might	MD
be	VB
triggered	VBN
by	IN
the	DT
strike	NN
.	.

Meanwhile	RB
,	,
supervisors	NNS
and	CC
non-striking	JJ
employees	NNS
have	VB
been	VBN
trying	VBG
to	TO
finish	VB
some	DT
40	CD
aircraft	NN
--	:
mostly	RB
747	CD
and	CC
767	CD
jumbo	JJ
jets	NNS
at	IN
the	DT
company	NN
's	POS
Everett	NNP
,	,
Wash.	NNP
,	,
plant	NN
--	:
that	IN
were	VBD
all	DT
but	CC
completed	VBN
before	IN
the	DT
walkout	NN
.	.

As	IN
of	IN
Friday	NNP
,	,
four	CD
had	VBD
been	VBN
delivered	VBN
and	CC
a	DT
fifth	JJ
plane	NN
,	,
a	DT
747-400	JJ
,	,
was	VBD
supposed	VBD
to	TO
be	VB
flown	VBN
out	IN
over	IN
the	DT
weekend	NN
to	TO
Air	NNP
China	NNP
.	.

No	DT
date	NN
has	VBZ
yet	RB
been	VBN
set	VBN
to	TO
get	VB
back	RB
to	TO
the	DT
bargaining	NN
table	NN
.	.

``	``
We	PRP
want	VBP
to	TO
make	VBP
sure	JJ
they	PRP
know	VB
what	WP
they	PRP
want	VBP
before	IN
they	PRP
come	VBP
back	RB
,	,
''	''
said	VBD
Doug	NNP
Hammond	NNP
,	,
the	DT
federal	JJ
mediator	NN
who	WP
has	VBZ
been	VBN
in	IN
contact	NN
with	IN
both	DT
sides	NNS
since	IN
the	DT
strike	NN
began	VBD
.	.

The	DT
investment	NN
community	NN
,	,
for	IN
one	CD
,	,
has	VBZ
been	VBN
anticipating	VBG
a	DT
speedy	JJ
resolution	NN
.	.

Though	IN
Boeing	NNP
's	POS
stock	NN
price	NN
was	VBD
battered	VBN
along	IN
with	IN
the	DT
rest	NN
of	IN
the	DT
market	NN
Friday	NNP
,	,
it	PRP
actually	RB
has	VBZ
risen	VBN
over	IN
the	DT
last	JJ
two	CD
weeks	NNS
on	IN
the	DT
strength	NN
of	IN
new	JJ
orders	NNS
.	.

``	``
The	DT
market	NN
has	VBZ
taken	VBN
two	CD
views	NNS
:	:
that	IN
the	DT
labor	NN
situation	NN
will	MD
get	VB
settled	VBD
in	IN
the	DT
short	JJ
term	NN
and	CC
that	IN
things	NNS
look	VB
very	RB
rosy	JJ
for	IN
Boeing	NNP
in	IN
the	DT
long	JJ
term	NN
,	,
''	''
said	VBD
Howard	NNP
Rubel	NNP
,	,
an	DT
analyst	NN
at	IN
Cyrus	VB
J.	NNP
Lawrence	NNP
Inc	NNP
.	.

Boeing	NNP
's	POS
shares	NNS
fell	VBD
$	$
4	CD
Friday	NNP
to	TO
close	VB
at	IN
$	$
57.375	VB
in	IN
composite	JJ
trading	NN
on	IN
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
.	.

But	CC
Mr.	NNP
Baker	NNP
said	VBD
he	PRP
thinks	VBZ
the	DT
earliest	JJS
a	DT
pact	NN
could	MD
be	VB
struck	VBN
would	MD
be	VB
the	DT
end	NN
of	IN
this	DT
month	NN
,	,
hinting	VBG
that	IN
the	DT
company	NN
and	CC
union	NN
may	MD
resume	VB
negotiations	NNS
as	RB
early	RB
as	RB
this	DT
week	NN
.	.

Still	RB
,	,
he	PRP
said	VBD
,	,
it	PRP
's	POS
possible	JJ
that	IN
the	DT
strike	NN
could	MD
last	JJ
considerably	RB
longer	RB
.	.

``	``
I	PRP
would	MD
n't	RB
expect	VBP
an	DT
immediate	JJ
resolution	NN
to	TO
anything	NN
.	.
''	''

Last	JJ
week	NN
,	,
Boeing	NNP
Chairman	NNP
Frank	NNP
Shrontz	NNP
sent	VBD
striking	JJ
workers	NNS
a	DT
letter	NN
,	,
saying	VBG
that	IN
``	``
to	TO
my	PRP$
knowledge	NN
,	,
Boeing	NNP
's	POS
offer	NN
represents	VBZ
the	DT
best	JJS
overall	JJ
three-year	JJ
contract	NN
of	IN
any	DT
major	JJ
U.S.	NNP
industrial	JJ
firm	JJ
in	IN
recent	JJ
history	NN
.	.
''	''

But	CC
Mr.	NNP
Baker	NNP
called	VBN
the	DT
letter	NN
--	:
and	CC
the	DT
company	NN
's	POS
offer	NN
of	IN
a	DT
10	CD
%	NN
wage	NN
increase	NN
over	IN
the	DT
life	NN
of	IN
the	DT
pact	NN
,	,
plus	CC
bonuses	NNS
--	:
``	``
very	RB
weak	JJ
.	.
''	''

He	PRP
added	VBD
that	IN
the	DT
company	NN
miscalculated	VBN
the	DT
union	NN
's	POS
resolve	VB
and	CC
the	DT
workers	NNS
'	POS
disgust	NN
with	IN
being	VBG
forced	VBD
to	TO
work	NN
many	JJ
hours	NNS
overtime	NN
.	.

In	IN
separate	JJ
developments	NNS
:	:
--	:
Talks	NNS
have	VB
broken	VBN
off	RP
between	IN
Machinists	NNS
representatives	NNS
at	IN
Lockheed	NNP
Corp.	NNP
and	CC
the	DT
Calabasas	NNP
,	,
Calif.	NNP
,	,
aerospace	NN
company	NN
.	.

The	DT
union	NN
is	VBZ
continuing	VBG
to	TO
work	NN
through	IN
its	PRP$
expired	VBD
contract	NN
,	,
however	RB
.	.

It	NNP
had	VBD
planned	VBD
a	DT
strike	NN
vote	NN
for	IN
next	JJ
Sunday	NNP
,	,
but	CC
that	IN
has	VBZ
been	VBN
pushed	VBN
back	RB
indefinitely	RB
.	.

--	:
United	NNP
Auto	NN
Workers	NNPS
Local	NNP
1069	VB
,	,
which	WDT
represents	VBZ
3,000	CD
workers	NNS
at	IN
Boeing	NNP
's	POS
helicopter	NN
unit	NN
in	IN
Delaware	NNP
County	NNP
,	,
Pa.	NNP
,	,
said	VBD
it	PRP
agreed	VBD
to	TO
extend	VB
its	PRP$
contract	NN
on	IN
a	DT
day-by-day	JJ
basis	NN
,	,
with	IN
a	DT
10-day	JJ
notification	NN
to	TO
cancel	VB
,	,
while	IN
it	PRP
continues	VBZ
bargaining	NN
.	.

The	DT
accord	NN
expired	VBD
yesterday	NN
.	.

--	:
And	CC
Boeing	NNP
on	IN
Friday	NNP
said	VBD
it	PRP
received	VBD
an	DT
order	NN
from	IN
Martinair	VB
Holland	NNP
for	IN
four	CD
model	NN
767-300	VB
wide-body	VB
jetliners	NNS
valued	VBN
at	IN
a	DT
total	JJ
of	IN
about	IN
$	$
326	CD
million	CD
.	.

The	DT
planes	NNS
,	,
long	JJ
range	NN
versions	NNS
of	IN
the	DT
medium-haul	VB
twin-jet	VB
,	,
will	MD
be	VB
delivered	VBN
with	IN
Pratt	NNP
&	CC
Whitney	NNP
PW4060	VB
engines	NNS
.	.

Pratt	NNP
&	CC
Whitney	NNP
is	VBZ
a	DT
unit	NN
of	IN
United	NNP
Technologies	NNPS
Inc	NNP
.	.

Martinair	IN
Holland	NNP
is	VBZ
based	VBN
in	IN
Amsterdam	NNP
.	.

A	DT
Boeing	NNP
spokeswoman	NN
said	VBD
a	DT
delivery	NN
date	NN
for	IN
the	DT
planes	NNS
is	VBZ
still	RB
being	VBG
worked	VBD
out	IN
``	``
for	IN
a	DT
variety	NN
of	IN
reasons	NNS
,	,
but	CC
not	RB
because	IN
of	IN
the	DT
strike	NN
.	.
''	''

Bridget	NNP
O'Brian	VB
contributed	VBD
to	TO
this	DT
article	NN
.	.

Atco	IN
Ltd.	NNP
said	VBD
its	PRP$
utilities	NNS
arm	NN
is	VBZ
considering	VBG
building	NN
new	JJ
electric	JJ
power	NN
plants	NNS
,	,
some	DT
valued	VBN
at	IN
more	RBR
than	IN
one	CD
billion	CD
Canadian	JJ
dollars	NNS
(	(
US$	$
851	VB
million	CD
)	)
,	,
in	IN
Great	NNP
Britain	NNP
and	CC
elsewhere	RB
.	.

C.S.	IN
Richardson	NNP
,	,
Atco	VB
's	POS
senior	JJ
vice	NN
president	NN
,	,
finance	NN
,	,
said	VBD
its	PRP$
50.1%-owned	VB
Canadian	JJ
Utilities	NNPS
Ltd.	NNP
unit	NN
is	VBZ
reviewing	VBG
cogeneration	NN
projects	NNS
in	IN
eastern	JJ
Canada	NNP
,	,
and	CC
conventional	JJ
electric	JJ
power	NN
generating	NN
plants	NNS
elsewhere	RB
,	,
including	VBG
Britain	NNP
,	,
where	WRB
the	DT
British	JJ
government	NN
plans	NNS
to	TO
allow	VB
limited	VBN
competition	NN
in	IN
electrical	JJ
generation	NN
from	IN
private-sector	NN
suppliers	NNS
as	RB
part	NN
of	IN
its	PRP$
privatization	NN
program	NN
.	.

``	``
The	DT
projects	NNS
are	VBP
big	JJ
.	.

They	PRP
can	MD
be	VB
C$	$
1	CD
billion	CD
plus	CC
,	,
''	''
Mr.	NNP
Richardson	NNP
said	VBD
.	.

``	``
But	CC
we	PRP
would	MD
n't	RB
go	VB
into	IN
them	PRP
alone	RB
,	,
''	''
and	CC
Canadian	JJ
Utilities	NNPS
'	POS
equity	NN
stake	NN
would	MD
be	VB
small	JJ
,	,
he	PRP
said	VBD
.	.

``	``
Ideally	RB
,	,
we	PRP
'd	MD
like	IN
to	TO
be	VB
the	DT
operator	NN
{	(
of	IN
the	DT
project	NN
}	)
and	CC
a	DT
modest	JJ
equity	NN
investor	NN
.	.

Our	PRP$
long	JJ
suit	NN
is	VBZ
our	PRP$
proven	VBN
ability	NN
to	TO
operate	VB
''	''
power	NN
plants	NNS
,	,
he	PRP
said	VBD
.	.

Mr.	NNP
Richardson	NNP
would	MD
n't	RB
offer	NN
specifics	NNS
regarding	VBG
Atco	VB
's	POS
proposed	VBN
British	JJ
project	NN
,	,
but	CC
he	PRP
said	VBD
it	PRP
would	MD
compete	VB
for	IN
customers	NNS
with	IN
two	CD
huge	JJ
British	JJ
power	NN
generating	NN
companies	NNS
that	IN
would	MD
be	VB
formed	VBN
under	IN
the	DT
country	NN
's	POS
plan	VB
to	TO
privatize	VB
its	PRP$
massive	JJ
water	NN
and	CC
electric	JJ
utilities	NNS
.	.

Britain	NNP
's	POS
government	NN
plans	NNS
to	TO
raise	VB
about	IN
#	#
20	CD
billion	CD
(	(
$	$
31.05	VB
billion	CD
)	)
from	IN
the	DT
sale	NN
of	IN
most	RBS
of	IN
its	PRP$
giant	NN
water	NN
and	CC
electric	JJ
utilities	NNS
,	,
beginning	NN
next	JJ
month	NN
.	.

The	DT
planned	JJ
electric	JJ
utility	NN
sale	NN
,	,
scheduled	VBN
for	IN
next	JJ
year	NN
,	,
is	VBZ
alone	RB
expected	VBN
to	TO
raise	VB
#	#
13	CD
billion	CD
,	,
making	VBG
it	PRP
the	DT
world	NN
's	POS
largest	JJS
public	JJ
offering	VBG
.	.

Under	IN
terms	NNS
of	IN
the	DT
plan	NN
,	,
independent	JJ
generators	NNS
would	MD
be	VB
able	JJ
to	TO
compete	VB
for	IN
15	CD
%	NN
of	IN
customers	NNS
until	IN
1994	CD
,	,
and	CC
for	IN
another	DT
10	CD
%	NN
between	IN
1994	CD
and	CC
1998	CD
.	.

Canadian	JJ
Utilities	NNPS
had	VBD
1988	CD
revenue	NN
of	IN
C$	$
1.16	CD
billion	CD
,	,
mainly	RB
from	IN
its	PRP$
natural	JJ
gas	NN
and	CC
electric	JJ
utility	NN
businesses	NNS
in	IN
Alberta	NNP
,	,
where	WRB
the	DT
company	NN
serves	VBZ
about	IN
800,000	CD
customers	NNS
.	.

``	``
There	EX
seems	VBZ
to	TO
be	VB
a	DT
move	NN
around	IN
the	DT
world	NN
to	TO
deregulate	VB
the	DT
generation	NN
of	IN
electricity	NN
,	,
''	''
Mr.	NNP
Richardson	NNP
said	VBD
,	,
and	CC
Canadian	JJ
Utilities	NNPS
hopes	VBZ
to	TO
capitalize	VB
on	IN
it	PRP
.	.

``	``
This	DT
is	VBZ
a	DT
real	JJ
thrust	VBD
on	IN
our	PRP$
utility	NN
side	NN
,	,
''	''
he	PRP
said	VBD
,	,
adding	VBG
that	IN
Canadian	JJ
Utilities	NNPS
is	VBZ
also	RB
mulling	VBG
projects	NNS
in	IN
underdeveloped	JJ
countries	NNS
,	,
though	IN
he	PRP
would	MD
be	VB
specific	JJ
.	.

Canadian	JJ
Utilities	NNPS
is	VBZ
n't	RB
alone	RB
in	IN
exploring	VBG
power	NN
generation	NN
opportunities	NNS
in	IN
Britain	NNP
,	,
in	IN
anticipation	NN
of	IN
the	DT
privatization	NN
program	NN
.	.

``	``
We	PRP
're	VBP
certainly	RB
looking	VBG
at	IN
some	DT
power	NN
generating	NN
projects	NNS
in	IN
England	NNP
,	,
''	''
said	VBD
Bruce	NNP
Stram	VB
,	,
vice	NN
president	NN
,	,
corporate	JJ
strategy	NN
and	CC
corporate	JJ
planning	NN
,	,
with	IN
Enron	NNP
Corp.	NNP
,	,
Houston	NNP
,	,
a	DT
big	JJ
natural	JJ
gas	NN
producer	NN
and	CC
pipeline	NN
operator	NN
.	.

Mr.	NNP
Stram	VB
said	VBD
Enron	NNP
is	VBZ
considering	VBG
building	NN
gas-fired	JJ
power	NN
plants	NNS
in	IN
the	DT
U.K.	NNP
capable	JJ
of	IN
producing	VBG
about	IN
500	CD
megawatts	NNS
of	IN
power	NN
at	IN
a	DT
cost	NN
of	IN
about	IN
$	$
300	CD
million	CD
to	TO
$	$
400	CD
million	CD
.	.

PSE	NNP
Inc.	NNP
said	VBD
it	PRP
expects	VBZ
to	TO
report	NN
third	JJ
earnings	NNS
of	IN
$	$
1.3	CD
million	CD
to	TO
$	$
1.7	CD
million	CD
,	,
or	CC
14	CD
cents	NNS
to	TO
18	CD
cents	NNS
a	DT
share	NN
.	.

In	IN
the	DT
year-ago	JJ
quarter	NN
,	,
the	DT
designer	NN
and	CC
operator	NN
of	IN
cogeneration	NN
and	CC
waste	NN
heat	NN
recovery	NN
plants	NNS
had	VBD
net	JJ
income	NN
of	IN
$	$
326,000	CD
,	,
or	CC
four	CD
cents	NNS
a	DT
share	NN
,	,
on	IN
revenue	NN
of	IN
about	IN
$	$
41.4	CD
million	CD
.	.

The	DT
company	NN
said	VBD
the	DT
improvement	NN
is	VBZ
related	VBN
to	TO
additional	JJ
cogeneration	NN
facilities	NNS
that	IN
have	VB
been	VBN
put	VBN
into	IN
operation	NN
.	.

CONCORDE	IN
trans-Atlantic	JJ
flights	NNS
are	VBP
$	$
2,400	CD
to	TO
Paris	NNP
and	CC
$	$
3,200	CD
to	TO
London	NNP
.	.

In	IN
a	DT
Centennial	NNP
Journal	NNP
article	NN
Oct.	NNP
5	CD
,	,
the	DT
fares	VBZ
were	VBD
reversed	VBN
.	.

Diamond	NNP
Shamrock	VB
Offshore	NNP
Partners	NNPS
said	VBD
it	PRP
had	VBD
discovered	VBN
gas	NN
offshore	RB
Louisiana	NNP
.	.

The	DT
well	RB
flowed	VBD
at	IN
a	DT
rate	NN
of	IN
2.016	VB
million	CD
cubic	JJ
feet	NNS
of	IN
gas	NN
a	DT
day	NN
through	IN
a	DT
16	CD
64-inch	VB
opening	VBG
at	IN
depths	NNS
between	IN
5,782	VB
and	CC
5,824	VB
feet	NNS
.	.

Diamond	NNP
Shamrock	VB
is	VBZ
the	DT
operator	NN
,	,
with	IN
a	DT
100	CD
%	NN
interest	NN
in	IN
the	DT
well	RB
.	.

Diamond	NNP
Shamrock	VB
Offshore	NNP
's	POS
stock	NN
rose	VBD
12.5	CD
cents	NNS
Friday	NNP
to	TO
close	VB
at	IN
$	$
8.25	CD
in	IN
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
composite	JJ
trading	NN
.	.

Kaufman	NNP
&	CC
Broad	NNP
Home	NNP
Corp.	NNP
said	VBD
it	PRP
formed	VBN
a	DT
$	$
53.4	VB
million	CD
limited	VBN
partnership	NN
subsidiary	NN
to	TO
buy	VB
land	NN
in	IN
California	NNP
suitable	JJ
for	IN
residential	JJ
development	NN
.	.

The	DT
partnership	NN
,	,
Kaufman	NNP
&	CC
Broad	NNP
Land	NNP
Development	NNP
Venture	NNP
Limited	NNP
Partnership	NNP
,	,
is	VBZ
a	DT
50-50	JJ
joint	JJ
venture	NN
with	IN
a	DT
trust	NN
created	VBN
by	IN
institutional	JJ
clients	NNS
of	IN
Heitman	VB
Advisory	NNP
Corp.	NNP
,	,
a	DT
unit	NN
of	IN
Heitman	VB
Financial	NNP
Corp.	NNP
,	,
a	DT
real	JJ
estate	NN
advisory	NN
,	,
management	NN
and	CC
development	NN
company	NN
with	IN
offices	NNS
in	IN
Chicago	NNP
and	CC
Beverly	NNP
Hills	NNPS
,	,
Calif	NNP
.	.

Kaufman	NNP
&	CC
Broad	NNP
,	,
a	DT
home	RB
building	NN
company	NN
,	,
declined	VBD
to	TO
identify	VB
the	DT
institutional	JJ
investors	NNS
.	.

The	DT
land	NN
to	TO
be	VB
purchased	VBD
by	IN
the	DT
joint	JJ
venture	NN
has	VBZ
n't	RB
yet	RB
received	VBD
zoning	NN
and	CC
other	JJ
approvals	NNS
required	VBN
for	IN
development	NN
,	,
and	CC
part	NN
of	IN
Kaufman	NNP
&	CC
Broad	NNP
's	POS
job	NN
will	MD
be	VB
to	TO
obtain	VB
such	JJ
approvals	NNS
.	.

The	DT
partnership	NN
runs	VBZ
the	DT
risk	NN
that	IN
it	PRP
may	MD
not	RB
get	VB
the	DT
approvals	NNS
for	IN
development	NN
,	,
but	CC
in	IN
return	NN
,	,
it	PRP
can	MD
buy	VB
land	NN
at	IN
wholesale	JJ
rather	RB
than	IN
retail	JJ
prices	NNS
,	,
which	WDT
can	MD
result	NN
in	IN
sizable	JJ
savings	NNS
,	,
said	VBD
Bruce	NNP
Karatz	VB
,	,
president	NN
and	CC
chief	NN
executive	NN
officer	NN
of	IN
Kaufman	NNP
&	CC
Broad	NNP
.	.

``	``
There	EX
are	VBP
really	RB
very	RB
few	JJ
companies	NNS
that	IN
have	VB
adequate	JJ
capital	NN
to	TO
buy	VB
properties	NNS
in	IN
a	DT
raw	JJ
state	NN
for	IN
cash	NN
.	.

Typically	RB
,	,
developers	NNS
option	NN
property	NN
,	,
and	CC
then	RB
once	RB
they	PRP
get	VB
the	DT
administrative	JJ
approvals	NNS
,	,
they	PRP
buy	VB
it	PRP
,	,
''	''
said	VBD
Mr.	NNP
Karatz	VB
,	,
adding	VBG
that	IN
he	PRP
believes	VBZ
the	DT
joint	JJ
venture	NN
is	VBZ
the	DT
first	JJ
of	IN
its	PRP$
kind	NN
.	.

``	``
We	PRP
usually	RB
operate	VB
in	IN
that	IN
conservative	JJ
manner	NN
.	.
''	''

By	IN
setting	VBG
up	RP
the	DT
joint	JJ
venture	NN
,	,
Kaufman	NNP
&	CC
Broad	NNP
can	MD
take	VB
the	DT
more	RBR
aggressive	JJ
approach	NN
of	IN
buying	VBG
raw	JJ
land	NN
,	,
while	IN
avoiding	VBG
the	DT
negative	JJ
impacts	VB
to	TO
its	PRP$
own	JJ
balance	NN
sheet	NN
,	,
Mr.	NNP
Karatz	VB
said	VBD
.	.

The	DT
company	NN
is	VBZ
putting	VBG
up	RP
only	RB
10	CD
%	NN
of	IN
the	DT
capital	NN
,	,
although	IN
it	PRP
is	VBZ
responsible	JJ
for	IN
providing	VBG
management	NN
,	,
planning	NN
and	CC
processing	NN
services	NNS
to	TO
the	DT
joint	JJ
venture	NN
.	.

``	``
This	DT
is	VBZ
one	CD
of	IN
the	DT
best	JJS
ways	NNS
to	TO
assure	VB
a	DT
pipeline	NN
of	IN
land	NN
to	TO
fuel	NN
our	PRP$
growth	NN
at	IN
a	DT
minimum	JJ
risk	NN
to	TO
our	PRP$
company	NN
,	,
''	''
Mr.	NNP
Karatz	VB
said	VBD
.	.

When	WRB
the	DT
price	NN
of	IN
plastics	NNS
took	VBD
off	RP
in	IN
1987	CD
,	,
Quantum	NNP
Chemical	NNP
Corp.	NNP
went	VBD
along	IN
for	IN
the	DT
ride	VB
.	.

The	DT
timing	NN
of	IN
Quantum	NNP
's	POS
chief	NN
executive	NN
officer	NN
,	,
John	NNP
Hoyt	NNP
Stookey	VB
,	,
appeared	VBD
to	TO
be	VB
nothing	NN
less	RBR
than	IN
inspired	VBN
,	,
because	IN
he	PRP
had	VBD
just	RB
increased	VBN
Quantum	NNP
's	POS
reliance	NN
on	IN
plastics	NNS
.	.

The	DT
company	NN
outpaced	VBD
much	JJ
of	IN
the	DT
chemical	NN
industry	NN
as	RB
annual	JJ
profit	NN
grew	VBD
fivefold	RB
in	IN
two	CD
years	NNS
.	.

Mr.	NNP
Stookey	VB
said	VBD
of	IN
the	DT
boom	NN
,	,
``	``
It	NNP
's	POS
going	VBG
to	TO
last	JJ
a	DT
whole	JJ
lot	NN
longer	RB
than	IN
anybody	NN
thinks	VBZ
.	.
''	''

But	CC
now	RB
prices	NNS
have	VB
nose-dived	VBD
and	CC
Quantum	NNP
's	POS
profit	NN
is	VBZ
plummeting	VBG
.	.

Some	DT
securities	NNS
analysts	NNS
are	VBP
looking	VBG
for	IN
no	DT
better	RB
than	IN
break-even	JJ
results	NNS
from	IN
the	DT
company	NN
for	IN
the	DT
third	JJ
quarter	NN
,	,
compared	VBN
with	IN
year-earlier	JJ
profit	NN
of	IN
$	$
99.8	VB
million	CD
,	,
or	CC
$	$
3.92	CD
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
724.4	CD
million	CD
.	.

The	DT
stock	NN
,	,
having	VBG
lost	VBN
nearly	RB
a	DT
quarter	NN
of	IN
its	PRP$
value	NN
since	IN
Sept.	NNP
1	CD
,	,
closed	VBN
at	IN
$	$
34.375	VB
share	NN
,	,
down	IN
$	$
1.125	CD
,	,
in	IN
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
composite	JJ
trading	NN
Friday	NNP
.	.

To	TO
a	DT
degree	NN
,	,
Quantum	NNP
represents	VBZ
the	DT
new	JJ
times	NNS
that	IN
have	VB
arrived	VBD
for	IN
producers	NNS
of	IN
the	DT
so-called	JJ
commodity	NN
plastics	NNS
that	IN
pervade	VB
modern	JJ
life	NN
.	.

Having	VBG
just	RB
passed	VBN
through	IN
one	CD
of	IN
the	DT
most	RBS
profitable	JJ
periods	NNS
in	IN
their	PRP$
history	NN
,	,
these	DT
producers	NNS
now	RB
see	VB
their	PRP$
prices	NNS
eroding	VBG
.	.

Pricing	NN
cycles	NNS
,	,
to	TO
be	VB
sure	JJ
,	,
are	VBP
nothing	NN
new	JJ
for	IN
plastics	NNS
producers	NNS
.	.

And	CC
the	DT
financial	JJ
decline	NN
of	IN
some	DT
looks	VBZ
steep	JJ
only	RB
in	IN
comparison	NN
with	IN
the	DT
heady	JJ
period	NN
that	IN
is	VBZ
just	RB
behind	IN
them	PRP
.	.

``	``
We	PRP
were	VBD
all	DT
wonderful	JJ
heroes	NNS
last	JJ
year	NN
,	,
''	''
says	VBZ
an	DT
executive	NN
at	IN
one	CD
of	IN
Quantum	NNP
's	POS
competitors	NNS
.	.

``	``
Now	RB
we	PRP
're	VBP
at	IN
the	DT
bottom	NN
of	IN
the	DT
heap	NN
.	.
''	''

At	IN
Quantum	NNP
,	,
which	WDT
is	VBZ
based	VBN
in	IN
New	NNP
York	NNP
,	,
the	DT
trouble	NN
is	VBZ
magnified	VBN
by	IN
the	DT
company	NN
's	POS
heavy	JJ
dependence	NN
on	IN
plastics	NNS
.	.

Once	IN
known	VBN
as	IN
National	NNP
Distillers	NNPS
&	CC
Chemical	NNP
Corp.	NNP
,	,
the	DT
company	NN
exited	NN
the	DT
wine	NN
and	CC
spirits	NNS
business	NN
and	CC
plowed	VBN
more	RBR
of	IN
its	PRP$
resources	NNS
into	IN
plastics	NNS
after	IN
Mr.	NNP
Stookey	VB
took	VBD
the	DT
chief	NN
executive	NN
's	POS
job	NN
in	IN
1986	CD
.	.

Mr.	NNP
Stookey	VB
,	,
59	CD
years	NNS
old	JJ
,	,
declined	VBD
to	TO
be	VB
interviewed	VBN
for	IN
this	DT
article	NN
,	,
but	CC
he	PRP
has	VBZ
consistently	RB
argued	VBD
that	IN
over	IN
the	DT
long	JJ
haul	NN
--	:
across	IN
both	DT
the	DT
peaks	NNS
and	CC
the	DT
troughs	VB
of	IN
the	DT
plastics	NNS
market	NN
--	:
Quantum	NNP
will	MD
prosper	VB
through	IN
its	PRP$
new	JJ
direction	NN
.	.

Quantum	NNP
's	POS
lot	NN
is	VBZ
mostly	RB
tied	VBD
to	TO
polyethylene	NN
resin	NN
,	,
used	VBN
to	TO
make	VBP
garbage	NN
bags	NNS
,	,
milk	NN
jugs	NNS
,	,
housewares	NNS
,	,
toys	NNS
and	CC
meat	NN
packaging	NN
,	,
among	IN
other	JJ
items	NNS
.	.

In	IN
the	DT
U.S.	NNP
polyethylene	NN
market	NN
,	,
Quantum	NNP
has	VBZ
claimed	VBD
the	DT
largest	JJS
share	NN
,	,
about	IN
20	CD
%	NN
.	.

But	CC
its	PRP$
competitors	NNS
--	:
including	VBG
Dow	NNP
Chemical	NNP
Co.	NNP
,	,
Union	NNP
Carbide	NNP
Corp.	NNP
and	CC
several	JJ
oil	NN
giants	NNS
--	:
have	VB
much	JJ
broader	JJR
business	NN
interests	NNS
and	CC
so	RB
are	VBP
better	RB
cushioned	VBN
against	IN
price	NN
swings	NNS
.	.

When	WRB
the	DT
price	NN
of	IN
polyethylene	NN
moves	NNS
a	DT
mere	JJ
penny	NN
a	DT
pound	NN
,	,
Quantum	NNP
's	POS
annual	JJ
profit	NN
fluctuates	VB
by	IN
about	IN
85	CD
cents	NNS
a	DT
share	NN
,	,
provided	VBN
no	DT
other	JJ
variables	NNS
are	VBP
changing	VBG
.	.

In	IN
recent	JJ
months	NNS
the	DT
price	NN
of	IN
polyethylene	NN
,	,
even	RB
more	RBR
than	IN
that	IN
of	IN
other	JJ
commodity	NN
plastics	NNS
,	,
has	VBZ
taken	VBN
a	DT
dive	NN
.	.

Benchmark	IN
grades	NNS
,	,
which	WDT
still	RB
sold	VBN
for	IN
as	RB
much	JJ
as	RB
50	CD
cents	NNS
a	DT
pound	NN
last	JJ
spring	NN
,	,
have	VB
skidded	VBD
to	TO
between	IN
35	CD
cents	NNS
and	CC
40	CD
cents	NNS
.	.

Meanwhile	RB
,	,
the	DT
price	NN
of	IN
ethylene	NN
,	,
the	DT
chemical	NN
building	NN
block	NN
of	IN
polyethylene	NN
,	,
has	VBZ
n't	RB
dropped	VBD
nearly	RB
so	RB
fast	RB
.	.

That	DT
discrepancy	NN
hurts	VBZ
Quantum	NNP
badly	RB
,	,
because	IN
its	PRP$
own	JJ
plants	NNS
cover	VB
only	RB
about	IN
half	DT
of	IN
its	PRP$
ethylene	NN
needs	VBZ
.	.

By	IN
many	JJ
accounts	NNS
,	,
an	DT
early	RB
hint	VB
of	IN
a	DT
price	NN
rout	NN
in	IN
the	DT
making	VBG
came	VBD
at	IN
the	DT
start	VB
of	IN
this	DT
year	NN
.	.

China	NNP
,	,
which	WDT
had	VBD
been	VBN
putting	VBG
in	IN
huge	JJ
orders	NNS
for	IN
polyethylene	NN
,	,
abruptly	RB
halted	VBD
them	PRP
.	.

Calculating	IN
that	DT
excess	JJ
polyethylene	NN
would	MD
soon	RB
be	VB
sloshing	VB
around	IN
the	DT
world	NN
,	,
other	JJ
buyers	NNS
then	RB
bet	NN
that	IN
prices	NNS
had	VBD
peaked	VBN
and	CC
so	RB
began	VBD
to	TO
draw	VB
down	IN
inventories	NNS
rather	RB
than	IN
order	NN
new	JJ
product	NN
.	.

Kenneth	NNP
Mitchell	NNP
,	,
director	NN
of	IN
Dow	NNP
's	POS
polyethylene	NN
business	NN
,	,
says	VBZ
producers	NNS
were	VBD
surprised	VBN
to	TO
learn	VBP
how	WRB
much	JJ
inventories	NNS
had	VBD
swelled	VBN
throughout	IN
the	DT
distribution	NN
chain	NN
as	RB
prices	NNS
spiraled	VB
up	RP
.	.

``	``
People	NNS
were	VBD
even	RB
hoarding	NN
bags	NNS
,	,
''	''
he	PRP
says	VBZ
.	.

Now	RB
producers	NNS
hope	VBP
prices	NNS
have	VB
hit	VBD
bottom	NN
.	.

They	PRP
recently	RB
announced	VBD
increases	NNS
of	IN
a	DT
few	JJ
cents	NNS
a	DT
pound	NN
to	TO
take	VB
effect	NN
in	IN
the	DT
next	JJ
several	JJ
weeks	NNS
.	.

No	DT
one	CD
knows	VBZ
,	,
however	RB
,	,
whether	IN
the	DT
new	JJ
posted	VBD
prices	NNS
will	MD
stick	VB
once	RB
producers	NNS
and	CC
customers	NNS
start	VB
to	TO
haggle	VB
.	.

One	CD
doubter	VB
is	VBZ
George	NNP
Krug	NNP
,	,
a	DT
chemical-industry	VB
analyst	NN
at	IN
Oppenheimer	NNP
&	CC
Co.	NNP
and	CC
a	DT
bear	VBP
on	IN
plastics	NNS
stocks	NNS
.	.

Noting	VBG
others	NNS
'	POS
estimates	NNS
of	IN
when	WRB
price	NN
increases	NNS
can	MD
be	VB
sustained	VBN
,	,
he	PRP
remarks	NNS
,	,
``	``
Some	DT
say	VBP
October	NNP
.	.

Some	DT
say	VBP
November	NNP
.	.

I	PRP
say	VBP
1992	CD
.	.
''	''

He	PRP
argues	VBZ
that	IN
efforts	NNS
to	TO
firm	JJ
up	RP
prices	NNS
will	MD
be	VB
undermined	VBD
by	IN
producers	NNS
'	POS
plans	NNS
to	TO
expand	VB
production	NN
capacity	NN
.	.

A	DT
quick	JJ
turnaround	NN
is	VBZ
crucial	JJ
to	TO
Quantum	NNP
because	IN
its	PRP$
cash	NN
requirements	NNS
remain	VBP
heavy	JJ
.	.

The	DT
company	NN
is	VBZ
trying	VBG
to	TO
carry	VBP
out	IN
a	DT
three-year	JJ
,	,
$	$
1.3	CD
billion	CD
plant-expansion	VB
program	NN
started	VBN
this	DT
year	NN
.	.

At	IN
the	DT
same	JJ
time	NN
,	,
its	PRP$
annual	JJ
payments	NNS
on	IN
long-term	JJ
debt	NN
will	MD
more	RBR
than	IN
double	JJ
from	IN
a	DT
year	NN
ago	IN
to	TO
about	IN
$	$
240	CD
million	CD
,	,
largely	RB
because	IN
of	IN
debt	NN
taken	VBN
on	IN
to	TO
pay	VB
a	DT
$	$
50-a-share	JJ
special	JJ
dividend	NN
earlier	JJR
this	DT
year	NN
.	.

Quantum	NNP
described	VBN
the	DT
payout	NN
at	IN
the	DT
time	NN
as	RB
a	DT
way	NN
for	IN
it	PRP
to	TO
share	NN
the	DT
bonanza	NN
with	IN
its	PRP$
holders	NNS
,	,
because	IN
its	PRP$
stock	NN
price	NN
was	VBD
n't	RB
reflecting	VBG
the	DT
huge	JJ
profit	NN
increases	NNS
.	.

Some	DT
analysts	NNS
saw	VBD
the	DT
payment	NN
as	RB
an	DT
effort	NN
also	RB
to	TO
dispel	VB
takeover	NN
speculation	NN
.	.

Whether	IN
a	DT
cash	NN
crunch	NN
might	MD
eventually	RB
force	NN
the	DT
company	NN
to	TO
cut	VB
its	PRP$
quarterly	NN
dividend	NN
,	,
raised	VBN
36	CD
%	NN
to	TO
75	CD
cents	NNS
a	DT
share	NN
only	RB
a	DT
year	NN
ago	IN
,	,
has	VBZ
become	VB
a	DT
topic	NN
of	IN
intense	JJ
speculation	NN
on	IN
Wall	NNP
Street	NNP
since	IN
Mr.	NNP
Stookey	VB
deflected	VB
dividend	NN
questions	NNS
in	IN
a	DT
Sept.	NNP
29	CD
meeting	VBG
with	IN
analysts	NNS
.	.

Some	DT
viewed	VBN
his	PRP$
response	NN
--	:
that	IN
company	NN
directors	NNS
review	NN
the	DT
dividend	NN
regularly	RB
--	:
as	RB
nothing	NN
more	RBR
than	IN
the	DT
standard	NN
line	NN
from	IN
executives	NNS
.	.

But	CC
others	NNS
came	VBD
away	RB
thinking	VBG
he	PRP
had	VBD
given	VBN
something	NN
less	RBR
than	IN
his	PRP$
usual	JJ
straight-from-the-shoulder	VB
performance	NN
.	.

In	IN
any	DT
case	NN
,	,
on	IN
the	DT
day	NN
of	IN
the	DT
meeting	VBG
,	,
Quantum	NNP
's	POS
shares	NNS
slid	VBD
$	$
2.625	CD
to	TO
$	$
36.625	VB
in	IN
Big	NNP
Board	NNP
trading	NN
.	.

On	IN
top	JJ
of	IN
everything	NN
else	RB
,	,
Quantum	NNP
confronts	VBZ
a	DT
disaster	NN
at	IN
its	PRP$
plant	NN
in	IN
Morris	NNP
,	,
Ill	NNP
.	.

After	IN
an	DT
explosion	NN
idled	VBN
the	DT
plant	NN
in	IN
June	NNP
,	,
the	DT
company	NN
progressed	VBD
in	IN
September	NNP
to	TO
within	IN
12	CD
hours	NNS
of	IN
completing	VBG
the	DT
drawn-out	VB
process	NN
of	IN
restarting	VB
it	PRP
.	.

Then	RB
a	DT
second	NN
explosion	NN
occurred	VBD
.	.

Two	CD
workers	NNS
died	VBD
and	CC
six	CD
remain	VBP
in	IN
the	DT
hospital	NN
.	.

This	DT
human	JJ
toll	NN
adds	VBZ
the	DT
most	RBS
painful	JJ
dimension	NN
yet	RB
to	TO
the	DT
sudden	JJ
change	NN
in	IN
Quantum	NNP
's	POS
fortunes	NNS
.	.

Until	IN
this	DT
year	NN
,	,
the	DT
company	NN
had	VBD
been	VBN
steadily	RB
lowering	VBG
its	PRP$
accident	NN
rate	NN
and	CC
picking	VBG
up	RP
trade-group	JJ
safety	NN
awards	NNS
.	.

A	DT
prolonged	JJ
production	NN
halt	NN
at	IN
the	DT
plant	NN
could	MD
introduce	VB
another	DT
imponderable	VB
into	IN
Quantum	NNP
's	POS
financial	JJ
future	NN
.	.

When	WRB
a	DT
plant	NN
has	VBZ
just	RB
been	VBN
running	VBG
flat	JJ
out	IN
to	TO
meet	VB
demand	VBP
,	,
calculating	VBG
lost	VBN
profit	NN
and	CC
thus	RB
claims	VBZ
under	IN
business-interruption	VB
insurance	NN
is	VBZ
straightforward	JJ
.	.

But	CC
the	DT
numbers	NNS
become	VB
trickier	JJR
--	:
and	CC
subject	NN
to	TO
dickering	VB
between	IN
insured	VBN
and	CC
insurer	NN
--	:
when	WRB
demand	VBP
is	VBZ
shifting	VBG
.	.

``	``
You	PRP
say	VBP
you	PRP
could	MD
have	VB
sold	VBN
X	NNP
percent	NN
of	IN
this	DT
product	NN
and	CC
Y	VB
percent	NN
of	IN
that	IN
,	,
''	''
recalls	VBZ
Theodore	NNP
Semegran	VB
,	,
an	DT
analyst	NN
at	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
who	WP
went	VBD
through	IN
this	DT
exercise	NN
during	IN
his	PRP$
former	JJ
career	NN
as	RB
a	DT
chemical	NN
engineer	NN
.	.

``	``
And	CC
then	RB
you	PRP
still	RB
have	VB
to	TO
negotiate	VB
.	.
''	''

Quantum	NNP
hopes	VBZ
the	DT
Morris	NNP
plant	NN
,	,
where	WRB
limited	VBN
production	NN
got	VBD
under	IN
way	NN
last	JJ
week	NN
,	,
will	MD
resume	VB
full	JJ
operation	NN
by	IN
year	NN
's	POS
end	NN
.	.

The	DT
plant	NN
usually	RB
accounts	NNS
for	IN
20	CD
%	NN
to	TO
25	CD
%	NN
of	IN
Quantum	NNP
's	POS
polyethylene	NN
production	NN
and	CC
50	CD
%	NN
of	IN
its	PRP$
ethylene	NN
production	NN
.	.

Not	RB
everything	NN
looks	VBZ
grim	JJ
for	IN
Quantum	NNP
.	.

The	DT
plant	NN
expansion	NN
should	MD
strengthen	VB
the	DT
company	NN
's	POS
sway	VB
in	IN
the	DT
polyethylene	NN
business	NN
,	,
where	WRB
market	NN
share	NN
is	VBZ
often	RB
taken	VBN
through	IN
sheer	NN
capacity	NN
.	.

By	IN
lifting	VBG
ethylene	NN
production	NN
,	,
the	DT
expansion	NN
will	MD
also	RB
lower	JJR
the	DT
company	NN
's	POS
raw	JJ
material	NN
costs	NNS
.	.

Quantum	NNP
is	VBZ
also	RB
tightening	VBG
its	PRP$
grip	NN
on	IN
its	PRP$
one	CD
large	JJ
business	NN
outside	JJ
chemicals	NNS
,	,
propane	NN
marketing	NN
.	.

Through	IN
a	DT
venture	NN
with	IN
its	PRP$
investment	NN
banker	NN
,	,
First	NNP
Boston	NNP
Corp.	NNP
,	,
Quantum	NNP
completed	VBN
in	IN
August	NNP
an	DT
acquisition	NN
of	IN
Petrolane	NNP
Inc.	NNP
in	IN
a	DT
transaction	NN
valued	VBN
at	IN
$	$
1.18	CD
billion	CD
.	.

Petrolane	NNP
is	VBZ
the	DT
second-largest	JJ
propane	NN
distributor	NN
in	IN
the	DT
U.S.	NNP
.	.

The	DT
largest	JJS
,	,
Suburban	NNP
Propane	VB
,	,
was	VBD
already	RB
owned	VBN
by	IN
Quantum	NNP
.	.

Still	RB
,	,
Quantum	NNP
has	VBZ
a	DT
crisis	NN
to	TO
get	VB
past	IN
right	RB
now	RB
.	.

Some	DT
analysts	NNS
speculate	VB
the	DT
weakening	NN
stock	NN
may	MD
yet	RB
attract	VB
a	DT
suitor	NN
.	.

The	DT
name	NN
surfacing	VBG
in	IN
rumors	NNS
is	VBZ
British	JJ
Petroleum	NN
Co.	NNP
,	,
which	WDT
is	VBZ
looking	VBG
to	TO
expand	VB
its	PRP$
polyethylene	NN
business	NN
in	IN
the	DT
U.S.	NNP
.	.

Asked	VBN
about	IN
a	DT
bid	NN
for	IN
Quantum	NNP
,	,
a	DT
BP	NNP
spokesman	NN
says	VBZ
,	,
``	``
We	PRP
pretty	RB
much	JJ
have	VB
a	DT
policy	NN
of	IN
not	RB
commenting	VBG
on	IN
rumors	NNS
,	,
and	CC
I	PRP
think	VBP
that	IN
falls	VBZ
in	IN
that	IN
category	NN
.	.

RJR	NNP
Nabisco	NNP
Inc.	NNP
is	VBZ
disbanding	VBG
its	PRP$
division	NN
responsible	JJ
for	IN
buying	VBG
network	NN
advertising	NN
time	NN
,	,
just	RB
a	DT
month	NN
after	IN
moving	VBG
11	CD
of	IN
the	DT
group	NN
's	POS
14	CD
employees	NNS
to	TO
New	NNP
York	NNP
from	IN
Atlanta	NNP
.	.

A	DT
spokesman	NN
for	IN
the	DT
New	NNP
York-based	JJ
food	NN
and	CC
tobacco	NN
giant	NN
,	,
taken	VBN
private	JJ
earlier	JJR
this	DT
year	NN
in	IN
a	DT
$	$
25	CD
billion	CD
leveraged	JJ
buy-out	NN
by	IN
Kohlberg	NNP
Kravis	NNP
Roberts	NNP
&	CC
Co.	NNP
,	,
confirmed	VBD
that	IN
it	PRP
is	VBZ
shutting	VBG
down	IN
the	DT
RJR	NNP
Nabisco	NNP
Broadcast	NNP
unit	NN
,	,
and	CC
dismissing	VBG
its	PRP$
14	CD
employees	NNS
,	,
in	IN
a	DT
move	NN
to	TO
save	VB
money	NN
.	.

The	DT
spokesman	NN
said	VBD
RJR	NNP
is	VBZ
discussing	VBG
its	PRP$
network-buying	VB
plans	NNS
with	IN
its	PRP$
two	CD
main	JJ
advertising	NN
firms	NNS
,	,
FCB\/Leber	NNP
Katz	NNP
and	CC
McCann	NNP
Erickson	VB
.	.

``	``
We	PRP
found	VBD
with	IN
the	DT
size	NN
of	IN
our	PRP$
media	NNS
purchases	NNS
that	IN
an	DT
ad	NN
agency	NN
could	MD
do	VB
just	RB
as	RB
good	JJ
a	DT
job	NN
at	IN
significantly	RB
lower	JJR
cost	NN
,	,
''	''
said	VBD
the	DT
spokesman	NN
,	,
who	WP
declined	VBD
to	TO
specify	VB
how	WRB
much	JJ
RJR	NNP
spends	VBZ
on	IN
network	NN
television	NN
time	NN
.	.

An	DT
executive	NN
close	VB
to	TO
the	DT
company	NN
said	VBD
RJR	NNP
is	VBZ
spending	NN
about	IN
$	$
140	CD
million	CD
on	IN
network	NN
television	NN
time	NN
this	DT
year	NN
,	,
down	IN
from	IN
roughly	RB
$	$
200	CD
million	CD
last	JJ
year	NN
.	.

The	DT
spokesman	NN
said	VBD
the	DT
broadcast	NN
unit	NN
will	MD
be	VB
disbanded	VBN
Dec.	NNP
1	CD
,	,
and	CC
the	DT
move	NN
wo	MD
n't	RB
affect	VB
RJR	NNP
's	POS
print	NN
,	,
radio	NN
and	CC
spot-television	VB
buying	VBG
practices	NNS
.	.

The	DT
broadcast	NN
group	NN
had	VBD
been	VBN
based	VBN
in	IN
New	NNP
York	NNP
until	IN
a	DT
year	NN
ago	IN
,	,
when	WRB
RJR	NNP
's	POS
previous	JJ
management	NN
moved	VBD
it	PRP
to	TO
Atlanta	NNP
,	,
the	DT
company	NN
's	POS
headquarters	NN
before	IN
this	DT
summer	NN
.	.

One	CD
employee	NN
with	IN
the	DT
group	NN
said	VBD
RJR	NNP
moved	VBD
11	CD
employees	NNS
of	IN
the	DT
group	NN
back	RB
to	TO
New	NNP
York	NNP
in	IN
September	NNP
because	IN
``	``
there	EX
was	VBD
supposed	VBD
to	TO
be	VB
a	DT
future	NN
.	.
''	''

He	PRP
said	VBD
the	DT
company	NN
hired	VBN
three	CD
more	RBR
buyers	NNS
for	IN
the	DT
unit	NN
within	IN
the	DT
past	IN
two	CD
weeks	NNS
,	,
wooing	VBG
them	PRP
from	IN
jobs	NNS
with	IN
advertising	NN
agencies	NNS
.	.

The	DT
RJR	NNP
spokesman	NN
said	VBD
the	DT
company	NN
moved	VBD
the	DT
11	CD
employees	NNS
to	TO
New	NNP
York	NNP
last	JJ
month	NN
because	IN
the	DT
group	NN
had	VBD
then	RB
been	VBN
in	IN
the	DT
midst	NN
of	IN
purchasing	NN
ad	NN
time	NN
for	IN
the	DT
networks	NNS
'	POS
upcoming	VB
season	NN
.	.

``	``
The	DT
studies	NNS
{	(
on	IN
closing	VBG
the	DT
unit	NN
}	)
could	MD
n't	RB
be	VB
completed	VBN
until	IN
now	RB
,	,
''	''
he	PRP
said	VBD
.	.

The	DT
group	NN
's	POS
president	NN
,	,
Peter	NNP
Chrisanthopoulos	VB
,	,
was	VBD
n't	RB
in	IN
his	PRP$
office	NN
Friday	NNP
afternoon	NN
to	TO
comment	NN
.	.

The	DT
U.S.	NNP
,	,
which	WDT
is	VBZ
finalizing	VB
its	PRP$
steel-import	JJ
quotas	NNS
,	,
is	VBZ
allocating	VBG
a	DT
larger	JJR
share	NN
of	IN
its	PRP$
steel	NN
market	NN
to	TO
developing	VBG
and	CC
newly	RB
industrialized	JJ
countries	NNS
which	WDT
have	VB
relatively	RB
unsubsidized	JJ
steel	NN
industries	NNS
.	.

Meanwhile	RB
,	,
the	DT
U.S.	NNP
has	VBZ
negotiated	VBN
a	DT
significant	JJ
cut	VB
in	IN
Japan	NNP
's	POS
steel	NN
quota	NN
,	,
and	CC
made	VBN
only	RB
a	DT
minor	NN
increase	NN
to	TO
the	DT
steel	NN
allotment	NN
for	IN
the	DT
European	NNP
Community	NNP
.	.

Brazil	NNP
,	,
similar	JJ
to	TO
Mexico	NNP
and	CC
South	NNP
Korea	NNP
,	,
is	VBZ
expected	VBN
to	TO
negotiate	VB
a	DT
somewhat	RB
bigger	JJR
share	NN
of	IN
the	DT
U.S.	NNP
market	NN
than	IN
it	PRP
had	VBD
under	IN
the	DT
previous	JJ
five-year	JJ
steel	NN
quotas	NNS
,	,
which	WDT
expired	VBD
Sept.	NNP
30	CD
.	.

Brazil	NNP
and	CC
Venezuela	NNP
are	VBP
the	DT
only	RB
two	CD
countries	NNS
that	IN
have	VB
n't	RB
completed	VBN
steel	NN
talks	NNS
with	IN
the	DT
U.S.	NNP
for	IN
the	DT
year	NN
ending	VBG
Oct.	NNP
1	CD
,	,
1990	CD
.	.

In	IN
recent	JJ
years	NNS
,	,
U.S.	NNP
steelmakers	NNS
have	VB
supplied	VBD
about	IN
80	CD
%	NN
of	IN
the	DT
100	CD
million	CD
tons	NNS
of	IN
steel	NN
used	VBN
annually	RB
by	IN
the	DT
nation	NN
.	.

Of	IN
the	DT
remaining	VBG
20	CD
%	NN
needed	VBD
,	,
the	DT
steel-quota	NN
negotiations	NNS
allocate	VBP
about	IN
15	CD
%	NN
to	TO
foreign	JJ
suppliers	NNS
,	,
with	IN
the	DT
difference	NN
supplied	VBD
mainly	RB
by	IN
Canada	NNP
--	:
which	WDT
is	VBZ
n't	RB
included	VBN
in	IN
the	DT
quota	NN
program	NN
.	.

Other	JJ
countries	NNS
that	IN
do	VB
n't	RB
have	VB
formal	JJ
steel	NN
quotas	NNS
with	IN
the	DT
U.S.	NNP
,	,
such	JJ
as	RB
Taiwan	NNP
,	,
Sweden	NNP
and	CC
Argentina	NNP
,	,
also	RB
have	VB
supplied	VBD
steel	NN
.	.

Some	DT
of	IN
these	DT
countries	NNS
have	VB
in	IN
recent	JJ
years	NNS
made	VBN
informal	JJ
agreements	NNS
with	IN
the	DT
U.S.	NNP
that	IN
are	VBP
similar	JJ
to	TO
quotas	NNS
.	.

The	DT
Bush	NNP
administration	NN
earlier	JJR
this	DT
year	NN
said	VBD
it	PRP
would	MD
extend	VB
steel	NN
quotas	NNS
,	,
known	VBN
as	RB
voluntary	JJ
restraint	NN
agreements	NNS
,	,
until	IN
March	NNP
31	CD
,	,
1992	CD
.	.

It	NNP
also	RB
said	VBD
it	PRP
would	MD
use	VBP
that	IN
two-and-a-half	VB
year	NN
period	NN
to	TO
work	NN
toward	IN
an	DT
international	JJ
consensus	NN
on	IN
freeing	NN
up	RP
the	DT
international	JJ
steel	NN
trade	NN
,	,
which	WDT
has	VBZ
been	VBN
notoriously	RB
managed	VBD
,	,
subsidized	VBN
and	CC
protected	VBN
by	IN
governments	NNS
.	.

The	DT
U.S.	NNP
termed	VBN
its	PRP$
plan	VB
,	,
a	DT
``	``
trade	NN
liberalization	NN
program	NN
,	,
''	''
despite	IN
the	DT
fact	NN
that	IN
it	PRP
is	VBZ
merely	RB
an	DT
extension	NN
.	.

Mexico	NNP
,	,
which	WDT
was	VBD
one	CD
of	IN
the	DT
first	JJ
countries	NNS
to	TO
conclude	VBP
its	PRP$
steel	NN
talks	NNS
with	IN
the	DT
U.S.	NNP
,	,
virtually	RB
doubled	VBN
its	PRP$
quota	NN
to	TO
0.95	CD
%	NN
of	IN
the	DT
U.S.	NNP
steel	NN
market	NN
from	IN
0.48	VB
%	NN
under	IN
the	DT
previous	JJ
quotas	NNS
.	.

South	NNP
Korea	NNP
,	,
which	WDT
had	VBD
1.9	CD
%	NN
under	IN
the	DT
previous	JJ
quotas	NNS
,	,
is	VBZ
set	VBN
to	TO
get	VB
a	DT
small	JJ
increase	NN
to	TO
about	IN
1.95	CD
%	NN
.	.

That	DT
increase	NN
rises	NNS
to	TO
slightly	RB
more	RBR
than	IN
2	LS
%	NN
of	IN
the	DT
U.S.	NNP
market	NN
if	IN
a	DT
joint	JJ
Korean-U.S.	VB
steel	NN
project	NN
is	VBZ
included	VBN
.	.

Meanwhile	RB
,	,
Brazil	NNP
is	VBZ
expected	VBN
to	TO
increase	NN
its	PRP$
allowance	NN
from	IN
the	DT
1.43	CD
%	NN
share	NN
it	PRP
has	VBZ
had	VBD
in	IN
recent	JJ
years	NNS
.	.

The	DT
EC	NNP
and	CC
Japan	NNP
--	:
the	DT
U.S.	NNP
's	POS
largest	JJS
steel	NN
suppliers	NNS
--	:
have	VB
n't	RB
been	VBN
filling	VBG
their	PRP$
quotas	NNS
to	TO
the	DT
full	JJ
extent	NN
.	.

The	DT
EC	NNP
steel	NN
industry	NN
,	,
which	WDT
has	VBZ
been	VBN
coping	VBG
with	IN
strong	JJ
European	NNP
demand	VBP
,	,
has	VBZ
been	VBN
supplying	VBG
about	IN
5	CD
%	NN
of	IN
the	DT
U.S.	NNP
market	NN
compared	VBN
with	IN
recent	JJ
quotas	NNS
of	IN
about	IN
6.7	CD
%	NN
.	.

Japan	NNP
has	VBZ
been	VBN
shipping	VBG
steel	NN
to	TO
total	JJ
about	IN
4.5	CD
%	NN
of	IN
the	DT
U.S.	NNP
market	NN
compared	VBN
with	IN
a	DT
quota	NN
of	IN
5.9	CD
%	NN
.	.

In	IN
the	DT
recent	JJ
talks	NNS
,	,
the	DT
EC	NNP
had	VBD
its	PRP$
quota	NN
increased	VBN
about	IN
300,000	CD
tons	NNS
,	,
to	TO
7	CD
%	NN
of	IN
the	DT
U.S.	NNP
market	NN
from	IN
6.7	CD
%	NN
in	IN
1988	CD
.	.

But	CC
its	PRP$
quota	NN
has	VBZ
been	VBN
as	RB
high	JJ
as	RB
6.9	CD
%	NN
in	IN
1984	CD
.	.

Japan	NNP
,	,
however	RB
,	,
has	VBZ
agreed	VBD
to	TO
cut	VB
its	PRP$
quota	NN
to	TO
about	IN
5	CD
%	NN
from	IN
5.9	CD
%	NN
previously	RB
.	.

Japan	NNP
,	,
the	DT
EC	NNP
,	,
Brazil	NNP
,	,
Mexico	NNP
and	CC
South	NNP
Korea	NNP
provide	VB
about	IN
80	CD
%	NN
of	IN
the	DT
steel	NN
imported	VBN
to	TO
the	DT
U.S.	NNP
under	IN
the	DT
quota	NN
program	NN
.	.

The	DT
balance	NN
is	VBZ
supplied	VBD
by	IN
a	DT
host	NN
of	IN
smaller	JJR
exporters	NNS
,	,
such	JJ
as	RB
Australia	NNP
and	CC
Venezuela	NNP
.	.

The	DT
U.S.	NNP
had	VBD
about	IN
an	DT
extra	JJ
2	LS
%	NN
of	IN
the	DT
domestic	JJ
steel	NN
market	NN
to	TO
give	VBP
to	TO
foreign	JJ
suppliers	NNS
in	IN
its	PRP$
quota	NN
talks	NNS
.	.

That	DT
was	VBD
essentially	RB
made	VBN
up	RP
of	IN
a	DT
1	CD
%	NN
increase	NN
in	IN
the	DT
overall	JJ
quota	NN
program	NN
and	CC
1	CD
%	NN
from	IN
cutting	VBG
Japan	NNP
's	POS
allowance	NN
.	.

Negotiators	IN
from	IN
the	DT
White	NNP
House	NNP
trade	NN
office	NN
will	MD
repeat	VB
these	DT
quota	NN
negotiations	NNS
next	JJ
year	NN
when	WRB
they	PRP
will	MD
have	VB
another	DT
1	CD
%	NN
of	IN
the	DT
U.S.	NNP
steel	NN
market	NN
to	TO
allocate	VBP
.	.

These	DT
optional	JJ
1%-a-year	NN
increases	NNS
to	TO
the	DT
steel	NN
quota	NN
program	NN
are	VBP
built	VBN
into	IN
the	DT
Bush	NNP
administration	NN
's	POS
steel-quota	VB
program	NN
to	TO
give	VBP
its	PRP$
negotiators	NNS
leverage	VB
with	IN
foreign	JJ
steel	NN
suppliers	NNS
to	TO
try	VB
to	TO
get	VB
them	PRP
to	TO
withdraw	VB
subsidies	NNS
and	CC
protectionism	NN
from	IN
their	PRP$
own	JJ
steel	NN
industries	NNS
.	.

Elcotel	IN
Inc.	NNP
expects	VBZ
fiscal	JJ
second-quarter	JJ
earnings	NNS
to	TO
trail	NN
1988	CD
results	NNS
,	,
but	CC
anticipates	VBZ
that	IN
several	JJ
new	JJ
products	NNS
will	MD
lead	NN
to	TO
a	DT
``	``
much	JJ
stronger	JJR
''	''
performance	NN
in	IN
its	PRP$
second	NN
half	DT
.	.

Elcotel	IN
,	,
a	DT
telecommunications	NN
company	NN
,	,
had	VBD
net	JJ
income	NN
of	IN
$	$
272,000	CD
,	,
or	CC
five	CD
cents	NNS
a	DT
share	NN
,	,
in	IN
its	PRP$
year-earlier	JJ
second	NN
quarter	NN
,	,
ended	VBD
Sept.	NNP
30	CD
.	.

Revenue	NN
totaled	VBD
$	$
5	CD
million	CD
.	.

George	NNP
Pierce	NNP
,	,
chairman	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
said	VBD
in	IN
an	DT
interview	NN
that	IN
earnings	NNS
in	IN
the	DT
most	RBS
recent	JJ
quarter	NN
will	MD
be	VB
about	IN
two	CD
cents	NNS
a	DT
share	NN
on	IN
revenue	NN
of	IN
just	RB
under	IN
$	$
4	CD
million	CD
.	.

The	DT
lower	JJR
results	NNS
,	,
Mr.	NNP
Pierce	NNP
said	VBD
,	,
reflect	VB
a	DT
12-month	JJ
decline	NN
in	IN
industry	NN
sales	NNS
of	IN
privately	RB
owned	VBN
pay	VB
telephones	NNS
,	,
Elcotel	VB
's	POS
primary	JJ
business	NN
.	.

Although	IN
Mr.	NNP
Pierce	NNP
expects	VBZ
that	IN
line	NN
of	IN
business	NN
to	TO
strengthen	VB
in	IN
the	DT
next	JJ
year	NN
,	,
he	PRP
said	VBD
Elcotel	NNP
will	MD
also	RB
benefit	NN
from	IN
moving	VBG
into	IN
other	JJ
areas	NNS
.	.

Foremost	IN
among	IN
those	DT
is	VBZ
the	DT
company	NN
's	POS
entrance	NN
into	IN
the	DT
public	JJ
facsimile	NN
business	NN
,	,
Mr.	NNP
Pierce	NNP
said	VBD
.	.

Within	IN
the	DT
next	JJ
year	NN
,	,
Elcotel	NNP
expects	VBZ
to	TO
place	NN
10,000	CD
fax	NN
machines	NNS
,	,
made	VBN
by	IN
Minolta	VB
in	IN
Japan	NNP
,	,
in	IN
hotels	NNS
,	,
municipal	JJ
buildings	NNS
,	,
drugstores	NNS
and	CC
other	JJ
public	JJ
settings	NNS
around	IN
the	DT
country	NN
.	.

Elcotel	IN
will	MD
provide	VB
a	DT
credit-card	NN
reader	NN
for	IN
the	DT
machines	NNS
to	TO
collect	VBP
,	,
store	NN
and	CC
forward	RB
billing	NN
data	NNS
.	.

Mr.	NNP
Pierce	NNP
said	VBD
Elcotel	VB
should	MD
realize	VB
a	DT
minimum	JJ
of	IN
$	$
10	CD
of	IN
recurring	VBG
net	JJ
earnings	NNS
for	IN
each	DT
machine	NN
each	DT
month	NN
.	.

Elcotel	IN
has	VBZ
also	RB
developed	VBD
an	DT
automatic	JJ
call	VB
processor	NN
that	IN
will	MD
make	VBP
further	JJ
use	VBP
of	IN
the	DT
company	NN
's	POS
system	NN
for	IN
automating	VBG
and	CC
handling	NN
credit-card	NN
calls	VBZ
and	CC
collect	VBP
calls	VBZ
.	.

Automatic	NNP
call	VB
processors	NNS
will	MD
provide	VB
that	IN
system	NN
for	IN
virtually	RB
any	DT
telephone	NN
,	,
Mr.	NNP
Pierce	NNP
said	VBD
,	,
not	RB
just	RB
phones	NNS
produced	VBD
by	IN
Elcotel	VB
.	.

The	DT
company	NN
will	MD
also	RB
be	VB
producing	VBG
a	DT
new	JJ
line	NN
of	IN
convenience	NN
telephones	NNS
,	,
which	WDT
do	VB
n't	RB
accept	VB
coins	NNS
,	,
for	IN
use	VBP
in	IN
hotel	NN
lobbies	NNS
,	,
office	NN
lobbies	NNS
,	,
hospitality	NN
lounges	VB
and	CC
similar	JJ
settings	NNS
.	.

Mr.	NNP
Pierce	NNP
estimated	VBD
that	IN
the	DT
processors	NNS
and	CC
convenience	NN
phones	NNS
would	MD
produce	VB
about	IN
$	$
5	CD
of	IN
recurring	VBG
net	JJ
earnings	NNS
for	IN
each	DT
machine	NN
each	DT
month	NN
.	.

Britain	NNP
's	POS
retail	JJ
price	NN
index	NN
rose	VBD
0.7	CD
%	NN
in	IN
September	NNP
from	IN
August	NNP
and	CC
was	VBD
up	RP
7.6	CD
%	NN
for	IN
the	DT
year	NN
,	,
the	DT
Central	NNP
Statistical	NNP
Office	NN
said	VBD
.	.

Quest	NNP
Medical	NNP
Inc.	NNP
said	VBD
it	PRP
adopted	VBN
a	DT
shareholders	NNS
'	POS
rights	NNS
plan	VB
in	IN
which	WDT
rights	NNS
to	TO
purchase	VB
shares	NNS
of	IN
common	JJ
stock	NN
will	MD
be	VB
distributed	VBN
as	RB
a	DT
dividend	NN
to	TO
shareholders	NNS
of	IN
record	NN
as	RB
of	IN
Oct.	NNP
23	CD
.	.

The	DT
company	NN
said	VBD
the	DT
plan	VB
was	VBD
n't	RB
adopted	VBN
in	IN
response	NN
to	TO
any	DT
known	VBN
offers	VBZ
for	IN
Quest	NNP
,	,
a	DT
maker	NN
and	CC
marketer	NN
of	IN
hospital	NN
products	NNS
.	.

The	DT
rights	NNS
allow	VB
shareholders	NNS
to	TO
purchase	VB
Quest	NNP
stock	NN
at	IN
a	DT
discount	NN
if	IN
any	DT
person	NN
or	CC
group	NN
acquires	VBZ
more	RBR
than	IN
15	CD
%	NN
of	IN
the	DT
company	NN
's	POS
common	JJ
stock	NN
or	CC
announces	VBZ
a	DT
tender	NN
offer	NN
.	.

Measuring	IN
cups	NNS
may	MD
soon	RB
be	VB
replaced	VBD
by	IN
tablespoons	VB
in	IN
the	DT
laundry	NN
room	NN
.	.

Procter	NNP
&	CC
Gamble	NNP
Co.	NNP
plans	NNS
to	TO
begin	VB
testing	VBG
next	JJ
month	NN
a	DT
superconcentrated	VB
detergent	NN
that	IN
will	MD
require	VB
only	RB
a	DT
few	JJ
spoonfuls	VB
per	IN
washload	VB
.	.

The	DT
move	NN
stems	VBZ
from	IN
lessons	NNS
learned	VBN
in	IN
Japan	NNP
where	WRB
local	JJ
competitors	NNS
have	VB
had	VBD
phenomenal	JJ
success	NN
with	IN
concentrated	VBN
soapsuds	VB
.	.

It	NNP
also	RB
marks	VBZ
P&G	NNP
's	POS
growing	VBG
concern	NN
that	IN
its	PRP$
Japanese	JJ
rivals	NNS
,	,
such	JJ
as	RB
Kao	NNP
Corp.	NNP
,	,
may	MD
bring	VB
their	PRP$
superconcentrates	VB
to	TO
the	DT
U.S.	NNP
.	.

The	DT
Cincinnati	NNP
consumer-products	NNS
giant	NN
got	VBD
clobbered	VBD
two	CD
years	NNS
ago	IN
in	IN
Japan	NNP
when	WRB
Kao	NNP
introduced	VBN
a	DT
powerful	JJ
detergent	NN
,	,
called	VBN
Attack	VB
,	,
which	WDT
quickly	RB
won	VBD
a	DT
30	CD
%	NN
stake	NN
in	IN
the	DT
Japanese	JJ
markets	NNS
.	.

``	``
They	PRP
do	VB
n't	RB
want	VBP
to	TO
get	VB
caught	VBN
again	RB
,	,
''	''
says	VBZ
one	CD
industry	NN
watcher	VB
.	.

Retailers	NNP
in	IN
Phoenix	NNP
,	,
Ariz.	NNP
,	,
say	VBP
P&G	NNP
's	POS
new	JJ
powdered	JJ
detergent	NN
--	:
to	TO
be	VB
called	VBN
Cheer	VB
with	IN
Color	NNP
Guard	NNP
--	:
will	MD
be	VB
on	IN
shelves	NNS
in	IN
that	IN
market	NN
by	IN
early	RB
November	NNP
.	.

A	DT
P&G	NNP
spokeswoman	NN
confirmed	VBD
that	IN
shipments	NNS
to	TO
Phoenix	NNP
started	VBN
late	JJ
last	JJ
month	NN
.	.

She	PRP
said	VBD
the	DT
company	NN
will	MD
study	NN
results	NNS
from	IN
this	DT
market	NN
before	IN
expanding	VBG
to	TO
others	NNS
.	.

Superconcentrates	IN
are	VBP
n't	RB
entirely	RB
new	JJ
for	IN
P&G	NNP
.	.

The	DT
company	NN
introduced	VBN
a	DT
superconcentrated	VB
Lemon	NNP
Cheer	VB
in	IN
Japan	NNP
after	IN
watching	VBG
the	DT
success	NN
of	IN
Attack	VB
.	.

When	WRB
Attack	VB
hit	VBD
the	DT
shelves	NNS
in	IN
1987	CD
,	,
P&G	NNP
's	POS
share	NN
of	IN
the	DT
Japanese	JJ
market	NN
fell	VBD
to	TO
about	IN
8	CD
%	NN
from	IN
more	RBR
than	IN
20	CD
%	NN
.	.

With	IN
the	DT
help	VB
of	IN
Lemon	NNP
Cheer	VB
,	,
P&G	NNP
's	POS
share	NN
is	VBZ
now	RB
estimated	VBD
to	TO
be	VB
12	CD
%	NN
.	.

While	IN
the	DT
Japanese	JJ
have	VBP
embraced	VBN
the	DT
compact	JJ
packaging	NN
and	CC
convenience	NN
of	IN
concentrated	JJ
products	NNS
,	,
the	DT
true	JJ
test	NN
for	IN
P&G	NNP
will	MD
be	VB
in	IN
the	DT
$	$
4	CD
billion	CD
U.S.	NNP
detergent	NN
market	NN
,	,
where	WRB
growth	NN
is	VBZ
slow	VB
and	CC
liquids	NNS
have	VB
gained	VBN
prominence	NN
over	IN
powders	VB
.	.

The	DT
company	NN
may	MD
have	VB
chosen	VBN
to	TO
market	NN
the	DT
product	NN
under	IN
the	DT
Cheer	VB
name	NN
since	IN
it	PRP
's	POS
already	RB
expanded	VBN
its	PRP$
best-selling	JJ
Tide	NNP
into	IN
16	CD
different	JJ
varieties	NNS
,	,
including	VBG
this	DT
year	NN
's	POS
big	JJ
hit	VBD
,	,
Tide	NNP
with	IN
Bleach	VB
.	.

With	IN
superconcentrates	NNP
,	,
however	RB
,	,
it	PRP
is	VBZ
n't	RB
always	RB
easy	JJ
to	TO
persuade	VB
consumers	NNS
that	IN
less	RBR
is	VBZ
more	RBR
;	:
many	JJ
people	NNS
tend	VB
to	TO
dump	VB
too	RB
much	JJ
detergent	NN
into	IN
the	DT
washing	VBG
machine	NN
,	,
believing	VBG
that	IN
it	PRP
takes	VBZ
a	DT
cup	NN
of	IN
powder	VB
to	TO
really	RB
clean	VB
the	DT
laundry	NN
.	.

In	IN
the	DT
early	RB
1980s	CD
,	,
P&G	NNP
tried	VBD
to	TO
launch	VB
here	RB
a	DT
concentrated	VBN
detergent	NN
under	IN
the	DT
Ariel	NNP
brand	NN
name	NN
that	IN
it	PRP
markets	NNS
in	IN
Europe	NNP
.	.

But	CC
the	DT
product	NN
,	,
which	WDT
was	VBD
n't	RB
as	RB
concentrated	VBN
as	RB
the	DT
new	JJ
Cheer	VB
,	,
bombed	VBN
in	IN
a	DT
market	NN
test	NN
in	IN
Denver	NNP
and	CC
was	VBD
dropped	VBD
.	.

P&G	NNP
and	CC
others	NNS
also	RB
have	VB
tried	VBD
repeatedly	RB
to	TO
hook	NN
consumers	NNS
on	IN
detergent	NN
and	CC
fabric	NN
softener	VB
combinations	VB
in	IN
pouches	VB
,	,
but	CC
they	PRP
have	VB
n't	RB
sold	VBN
well	RB
,	,
despite	IN
the	DT
convenience	NN
.	.

But	CC
P&G	NNP
contends	VBZ
the	DT
new	JJ
Cheer	VB
is	VBZ
a	DT
unique	JJ
formula	NN
that	IN
also	RB
offers	VBZ
an	DT
ingredient	NN
that	IN
prevents	VBZ
colors	NNS
from	IN
fading	JJ
.	.

And	CC
retailers	NNS
are	VBP
expected	VBN
to	TO
embrace	VB
the	DT
product	NN
,	,
in	IN
part	NN
because	IN
it	PRP
will	MD
take	VB
up	RP
less	RBR
shelf	NN
space	NN
.	.

``	``
When	WRB
shelf	NN
space	NN
was	VBD
cheap	JJ
,	,
bigger	JJR
was	VBD
better	RB
,	,
''	''
says	VBZ
Hugh	NNP
Zurkuhlen	NNP
,	,
an	DT
analyst	NN
at	IN
Salomon	NNP
Bros	NNPS
.	.

But	CC
with	IN
so	RB
many	JJ
brands	NNS
vying	VBG
for	IN
space	NN
,	,
that	IN
's	POS
no	DT
longer	RB
the	DT
case	NN
.	.

If	IN
the	DT
new	JJ
Cheer	NN
sells	VBZ
well	RB
,	,
the	DT
trend	NN
toward	IN
smaller	JJR
packaging	NN
is	VBZ
likely	JJ
to	TO
accelerate	VB
as	RB
competitors	NNS
follow	VB
with	IN
their	PRP$
own	JJ
superconcentrates	VB
.	.

Then	RB
retailers	NNS
``	``
will	MD
probably	RB
push	VB
the	DT
{	(
less-established	VB
}	)
brands	NNS
out	IN
altogether	RB
,	,
''	''
he	PRP
says	VBZ
.	.

Competition	NN
is	VBZ
bound	VBN
to	TO
get	VB
tougher	JJR
if	IN
Kao	NNP
introduces	VBZ
a	DT
product	NN
like	IN
Attack	VB
in	IN
the	DT
U.S.	NNP
.	.

To	TO
be	VB
sure	JJ
,	,
Kao	NNP
would	MD
n't	RB
have	VB
an	DT
easy	JJ
time	NN
taking	VBG
U.S.	NNP
market	NN
share	NN
away	RB
from	IN
the	DT
mighty	JJ
P&G	NNP
,	,
which	WDT
has	VBZ
about	IN
23	CD
%	NN
of	IN
the	DT
market	NN
.	.

Kao	NNP
officials	NNS
previously	RB
have	VB
said	VBD
they	PRP
are	VBP
interested	JJ
in	IN
selling	VBG
detergents	NNS
in	IN
the	DT
U.S.	NNP
,	,
but	CC
so	RB
far	JJ
the	DT
company	NN
has	VBZ
focused	VBD
on	IN
acquisitions	NNS
,	,
such	JJ
as	RB
last	JJ
year	NN
's	POS
purchase	VB
of	IN
Andrew	NNP
Jergens	VB
Co.	NNP
,	,
a	DT
Cincinnati	NNP
hand-lotion	VB
maker	NN
.	.

It	NNP
also	RB
has	VBZ
a	DT
product-testing	VB
facility	NN
in	IN
California	NNP
.	.

Some	DT
believe	VBP
P&G	NNP
's	POS
interest	NN
in	IN
a	DT
superconcentrated	VB
detergent	NN
goes	VBZ
beyond	IN
the	DT
concern	NN
for	IN
the	DT
Japanese	JJ
.	.

``	``
This	DT
is	VBZ
something	NN
P&G	NNP
would	MD
do	VB
with	IN
or	CC
without	IN
Kao	NNP
,	,
''	''
says	VBZ
Mr.	NNP
Zurkuhlen	NNP
.	.

With	IN
economic	JJ
tension	NN
between	IN
the	DT
U.S.	NNP
and	CC
Japan	NNP
worsening	NN
,	,
many	JJ
Japanese	JJ
had	VBD
feared	VBD
last	JJ
week	NN
's	POS
visit	VB
from	IN
U.S.	NNP
Trade	NN
Representative	NNP
Carla	NNP
Hills	NNPS
.	.

They	PRP
expected	VBN
a	DT
new	JJ
barrage	NN
of	IN
demands	NNS
that	IN
Japan	NNP
do	VB
something	NN
quickly	RB
to	TO
reduce	VB
its	PRP$
trade	NN
surplus	NN
with	IN
the	DT
U.S.	NNP
.	.

Instead	RB
,	,
they	PRP
got	VBD
a	DT
discussion	NN
of	IN
the	DT
need	MD
for	IN
the	DT
U.S.	NNP
and	CC
Japan	NNP
to	TO
work	NN
together	RB
and	CC
of	IN
the	DT
importance	NN
of	IN
the	DT
long-term	JJ
view	NN
.	.

Mrs.	NNP
Hills	NNPS
'	POS
first	JJ
trip	NN
to	TO
Japan	NNP
as	RB
America	NNP
's	POS
chief	NN
trade	NN
negotiator	NN
had	VBD
a	DT
completely	RB
different	JJ
tone	NN
from	IN
last	JJ
month	NN
's	POS
visit	VB
by	IN
Commerce	NNP
Secretary	NNP
Robert	NNP
A.	NNP
Mosbacher	NNP
.	.

Mr.	NNP
Mosbacher	NNP
called	VBN
for	IN
concrete	JJ
results	NNS
by	IN
next	JJ
spring	NN
in	IN
negotiations	NNS
over	IN
fundamental	JJ
Japanese	JJ
business	NN
practices	NNS
that	IN
supposedly	RB
inhibit	VB
free	JJ
trade	NN
.	.

He	PRP
said	VBD
such	JJ
results	NNS
should	MD
be	VB
``	``
measurable	VB
in	IN
dollars	NNS
and	CC
cents	NNS
''	''
in	IN
reducing	VBG
the	DT
U.S.	NNP
trade	NN
deficit	NN
with	IN
Japan	NNP
.	.

But	CC
Mrs.	NNP
Hills	NNPS
,	,
speaking	VBG
at	IN
a	DT
breakfast	NN
meeting	VBG
of	IN
the	DT
American	JJ
Chamber	NNP
of	IN
Commerce	NNP
in	IN
Japan	NNP
on	IN
Saturday	NNP
,	,
stressed	VBD
that	IN
the	DT
objective	JJ
``	``
is	VBZ
not	RB
to	TO
get	VB
definitive	JJ
action	NN
by	IN
spring	NN
or	CC
summer	NN
,	,
it	PRP
is	VBZ
rather	RB
to	TO
have	VB
a	DT
blueprint	NN
for	IN
action	NN
.	.
''	''

She	PRP
added	VBD
that	IN
she	PRP
expected	VBN
``	``
perhaps	RB
to	TO
have	VB
a	DT
down	IN
payment	NN
...	:
some	DT
small	JJ
step	VB
to	TO
convince	VBP
the	DT
American	JJ
people	NNS
and	CC
the	DT
Japanese	JJ
people	NNS
that	IN
we	PRP
're	VBP
moving	VBG
in	IN
earnest	JJ
.	.
''	''

How	WRB
such	JJ
remarks	NNS
translate	VB
into	IN
policy	NN
wo	MD
n't	RB
become	VB
clear	VB
for	IN
months	NNS
.	.

American	JJ
and	CC
Japanese	JJ
officials	NNS
offered	VBD
several	JJ
theories	NNS
for	IN
the	DT
difference	NN
in	IN
approach	NN
betwen	VB
Mr.	NNP
Mosbacher	NNP
and	CC
Mrs.	NNP
Hills	NNPS
.	.

Many	DT
called	VBN
it	PRP
simply	RB
a	DT
contrast	NN
in	IN
styles	NNS
.	.

But	CC
some	DT
saw	VBD
it	PRP
as	RB
a	DT
classic	JJ
negotiating	VBG
tactic	NN
.	.

Others	NNS
said	VBD
the	DT
Bush	NNP
administration	NN
may	MD
feel	VBP
the	DT
rhetoric	NN
on	IN
both	DT
sides	NNS
is	VBZ
getting	VBG
out	IN
of	IN
hand	NN
.	.

And	CC
some	DT
said	VBD
it	PRP
reflected	VBD
the	DT
growing	VBG
debate	NN
in	IN
Washington	NNP
over	IN
pursuing	VBG
free	JJ
trade	NN
with	IN
Japan	NNP
versus	IN
some	DT
kind	NN
of	IN
managed	VBD
trade	NN
.	.

Asked	VBN
to	TO
compare	VBP
her	PRP$
visit	VB
to	TO
Mr.	NNP
Mosbacher	NNP
's	POS
,	,
Mrs.	NNP
Hills	NNPS
replied	VBD
:	:
``	``
I	PRP
did	VBD
n't	RB
hear	VB
every	DT
word	NN
he	PRP
spoke	VBD
,	,
but	CC
as	RB
a	DT
general	NN
proposition	NN
,	,
I	PRP
think	VBP
we	PRP
have	VB
a	DT
very	RB
consistent	JJ
trade	NN
strategy	NN
in	IN
the	DT
Bush	NNP
administration	NN
.	.
''	''

Yet	RB
more	RBR
than	IN
one	CD
American	JJ
official	NN
who	WP
sat	VBN
in	IN
with	IN
her	PRP$
during	IN
three	CD
days	NNS
of	IN
talks	NNS
with	IN
Japanese	JJ
officials	NNS
said	VBD
her	PRP$
tone	NN
often	RB
was	VBD
surprisingly	RB
``	``
conciliatory	JJ
.	.
''	''

``	``
I	PRP
think	VBP
my	PRP$
line	NN
has	VBZ
been	VBN
very	RB
consistent	JJ
,	,
''	''
Mrs.	NNP
Hills	NNPS
said	VBD
at	IN
a	DT
news	NN
conference	NN
Saturday	NNP
afternoon	NN
.	.

``	``
I	PRP
am	VBP
painted	VBD
sometimes	RB
as	RB
ferocious	JJ
,	,
perhaps	RB
because	IN
I	PRP
have	VB
a	DT
ferocious	JJ
list	NN
of	IN
statutes	NNS
to	TO
implement	VB
.	.

I	PRP
do	VB
n't	RB
feel	VBP
very	RB
ferocious	JJ
.	.

I	PRP
do	VB
n't	RB
feel	VBP
either	CC
hard	RB
or	CC
soft	JJ
.	.

I	PRP
feel	VBP
committed	JJ
to	TO
the	DT
program	NN
of	IN
opening	VBG
markets	NNS
and	CC
expanding	VBG
trade	NN
.	.
''	''

When	WRB
she	PRP
met	VBN
the	DT
local	JJ
press	NN
for	IN
the	DT
first	JJ
time	NN
on	IN
Friday	NNP
,	,
Mrs.	NNP
Hills	NNPS
firmly	RB
reiterated	VBD
the	DT
need	MD
for	IN
progress	NN
in	IN
removing	VBG
barriers	NNS
to	TO
trade	NN
in	IN
forest	NN
products	NNS
,	,
satellites	NNS
and	CC
supercomputers	NNS
,	,
three	CD
areas	NNS
targeted	VBN
under	IN
the	DT
Super	NNP
301	CD
provision	NN
of	IN
the	DT
1988	CD
trade	NN
bill	NN
.	.

She	PRP
highlighted	VBN
exclusionary	JJ
business	NN
practices	NNS
that	IN
the	DT
U.S.	NNP
government	NN
has	VBZ
identified	VBD
.	.

But	CC
her	PRP$
main	JJ
thrust	VBD
was	VBD
to	TO
promote	VB
the	DT
importance	NN
of	IN
world-wide	JJ
free	JJ
trade	NN
and	CC
open	JJ
competition	NN
.	.

She	PRP
said	VBD
the	DT
trade	NN
imbalance	NN
was	VBD
mainly	RB
due	JJ
to	TO
macroeconomic	JJ
factors	NNS
and	CC
should	MD
n't	RB
be	VB
tackled	VB
by	IN
setting	VBG
quantitative	JJ
targets	NNS
.	.

At	IN
her	PRP$
news	NN
conference	NN
for	IN
Japanese	JJ
reporters	NNS
,	,
one	CD
economics	NNS
journalist	NN
summed	VBD
up	RP
the	DT
Japanese	JJ
sense	NN
of	IN
relief	NN
.	.

``	``
My	PRP$
impression	NN
was	VBD
that	IN
you	PRP
would	MD
be	VB
a	DT
scary	JJ
old	JJ
lady	NN
,	,
''	''
he	PRP
said	VBD
,	,
drawing	VBG
a	DT
few	JJ
nervous	JJ
chuckles	VBZ
from	IN
his	PRP$
colleagues	NNS
.	.

``	``
But	CC
I	PRP
am	VBP
relieved	VBN
to	TO
see	VB
that	IN
you	PRP
are	VBP
beautiful	JJ
and	CC
gentle	JJ
and	CC
intelligent	JJ
and	CC
a	DT
person	NN
of	IN
integrity	NN
.	.
''	''

Mrs.	NNP
Hills	NNPS
'	POS
remarks	NNS
did	VBD
raise	VB
questions	NNS
,	,
at	IN
least	JJS
among	IN
some	DT
U.S.	NNP
officials	NNS
,	,
about	IN
what	WP
exactly	RB
her	PRP$
stance	NN
is	VBZ
on	IN
U.S.	NNP
access	NN
to	TO
the	DT
Japanese	JJ
semiconductor	NN
market	NN
.	.

The	DT
U.S.	NNP
share	NN
of	IN
the	DT
Japanese	JJ
market	NN
has	VBZ
been	VBN
stuck	VBD
around	IN
10	CD
%	NN
for	IN
years	NNS
.	.

Many	DT
Americans	NNPS
have	VB
interpreted	VBN
a	DT
1986	CD
agreement	NN
as	RB
assuring	VBG
U.S.	NNP
companies	NNS
a	DT
20	CD
%	NN
share	NN
by	IN
1991	CD
,	,
but	CC
the	DT
Japanese	JJ
have	VB
denied	VBD
making	VBG
any	DT
such	JJ
promise	NN
.	.

At	IN
one	CD
of	IN
her	PRP$
news	NN
conferences	NNS
,	,
Mrs.	NNP
Hills	NNP
said	VBD
,	,
``	``
I	PRP
believe	VBP
we	PRP
can	MD
do	VB
much	RB
better	JJR
than	IN
20	CD
%	NN
.	.
''	''

But	CC
she	PRP
stressed	VBD
,	,
``	``
I	PRP
am	VBP
against	IN
managed	VBD
trade	NN
.	.

I	PRP
will	MD
not	RB
enter	VB
into	IN
an	DT
agreement	NN
that	IN
stipulates	VBZ
to	TO
a	DT
percentage	NN
of	IN
the	DT
market	NN
.	.

Traditional	JJ
Industries	NNPS
Inc.	NNP
said	VBD
it	PRP
expects	VBZ
to	TO
report	NN
a	DT
net	JJ
loss	NN
for	IN
the	DT
fourth	JJ
quarter	NN
that	IN
ended	VBD
June	NNP
30	CD
and	CC
is	VBZ
seeking	VBG
new	JJ
financing	VBG
.	.

The	DT
seller	NN
of	IN
photographic	JJ
products	NNS
and	CC
services	NNS
said	VBD
it	PRP
is	VBZ
considering	VBG
a	DT
number	NN
of	IN
financing	VBG
alternatives	NNS
,	,
including	VBG
seeking	VBG
increases	NNS
in	IN
its	PRP$
credit	NN
lines	NNS
.	.

Traditional	JJ
declined	VBD
to	TO
estimate	NN
the	DT
amount	VBP
of	IN
the	DT
loss	NN
and	CC
would	MD
n't	RB
say	VBP
if	IN
it	PRP
expects	VBZ
to	TO
show	NN
a	DT
profit	NN
for	IN
the	DT
year	NN
.	.

In	IN
the	DT
year	NN
ended	VBD
June	NNP
30	CD
,	,
1988	CD
,	,
Traditional	JJ
reported	VBN
net	JJ
income	NN
of	IN
$	$
4.9	CD
million	CD
,	,
or	CC
$	$
1.21	CD
a	DT
share	NN
.	.

The	DT
company	NN
did	VBD
n't	RB
break	VB
out	IN
its	PRP$
fourth-quarter	NN
results	NNS
.	.

In	IN
the	DT
latest	JJS
nine	CD
months	NNS
net	JJ
income	NN
was	VBD
$	$
4.7	CD
million	CD
,	,
or	CC
$	$
1.31	CD
a	DT
share	NN
,	,
on	IN
revenue	NN
of	IN
$	$
44.3	CD
million	CD
.	.

Separately	RB
,	,
the	DT
company	NN
said	VBD
it	PRP
would	MD
file	NN
a	DT
delayed	VBD
fiscal-year	VB
report	NN
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
``	``
within	IN
approximately	RB
45	CD
days	NNS
.	.
''	''

It	NNP
said	VBD
the	DT
delay	VB
resulted	VBN
from	IN
difficulties	NNS
in	IN
resolving	VBG
its	PRP$
accounting	NN
of	IN
a	DT
settlement	NN
with	IN
the	DT
Federal	NNP
Trade	NN
Commission	NNP
.	.

Under	IN
an	DT
agreement	NN
filed	VBD
in	IN
federal	JJ
court	NN
in	IN
August	NNP
to	TO
settle	VB
FTC	NNP
objections	NNS
to	TO
some	DT
Traditional	JJ
sales	NNS
practices	NNS
,	,
Traditional	JJ
said	VBD
it	PRP
would	MD
establish	VB
a	DT
$	$
250,000	CD
trust	NN
fund	NN
to	TO
provide	VB
refunds	NNS
to	TO
certain	JJ
customers	NNS
.	.

Information	NN
International	NNP
Inc.	NNP
said	VBD
it	PRP
was	VBD
sued	VBD
by	IN
a	DT
buyer	NN
of	IN
its	PRP$
computerized	VBN
newspaper-publishing	VB
system	NN
,	,
alleging	VBG
that	IN
the	DT
company	NN
failed	VBN
to	TO
correct	JJ
deficiencies	NNS
in	IN
the	DT
system	NN
.	.

A	DT
spokesman	NN
for	IN
Information	NN
International	NNP
said	VBD
the	DT
lawsuit	NN
by	IN
two	CD
units	NNS
of	IN
Morris	NNP
Communications	NNP
Corp.	NNP
seeks	VBZ
restitution	NN
of	IN
the	DT
system	NN
's	POS
about	IN
$	$
3	CD
million	CD
purchase	VB
price	NN
and	CC
cancellation	NN
of	IN
a	DT
software	NN
license	VB
provided	VBN
by	IN
the	DT
Morris	NNP
units	NNS
to	TO
Information	NN
International	NNP
for	IN
alleged	VBN
failure	NN
to	TO
pay	VB
royalties	NNS
.	.

Information	NN
International	NNP
said	VBD
it	PRP
believes	VBZ
that	IN
the	DT
complaints	NNS
,	,
filed	VBD
in	IN
federal	JJ
court	NN
in	IN
Georgia	NNP
,	,
are	VBP
without	IN
merit	NN
.	.

Closely	RB
held	VBD
Morris	NNP
Communications	NNP
is	VBZ
based	VBN
in	IN
Augusta	NNP
,	,
Ga	NNP
.	.

The	DT
units	NNS
that	IN
filed	VBD
the	DT
suit	NN
are	VBP
Southeastern	NNP
Newspapers	NNS
Corp.	NNP
and	CC
Florida	NNP
Publishing	NNP
Co	NNP
.	.

Syms	IN
Corp.	NNP
completed	VBN
the	DT
sale	NN
of	IN
its	PRP$
A.	NNP
Sulka	VB
&	CC
Co.	NNP
subsidiary	NN
,	,
a	DT
men	NNS
's	POS
luxury	NN
haberdashery	VB
,	,
to	TO
Luxco	VB
Investments	NNPS
.	.

Terms	NNS
were	VBD
n't	RB
disclosed	VBN
.	.

As	IN
Syms	NNP
's	POS
``	``
core	NN
business	NN
of	IN
off-price	JJ
retailing	NN
grows	VBZ
,	,
a	DT
small	JJ
subsidiary	NN
that	IN
is	VBZ
operationally	VB
unrelated	JJ
becomes	VBZ
a	DT
difficult	JJ
distraction	NN
,	,
''	''
said	VBD
Marcy	VB
Syms	VB
,	,
president	NN
of	IN
the	DT
parent	NN
,	,
in	IN
a	DT
statement	NN
.	.

A	DT
spokeswoman	NN
said	VBD
Sulka	VB
operates	VBZ
a	DT
total	JJ
of	IN
seven	CD
stores	NNS
in	IN
the	DT
U.S.	NNP
and	CC
overseas	RB
.	.

Syms	IN
operates	VBZ
25	CD
off-price	JJ
apparel	NN
stores	NNS
in	IN
the	DT
U.S.	NNP
.	.

The	DT
oil	NN
industry	NN
's	POS
middling	JJ
profits	NNS
could	MD
persist	VB
through	IN
the	DT
rest	NN
of	IN
the	DT
year	NN
.	.

Major	NNP
oil	NN
companies	NNS
in	IN
the	DT
next	JJ
few	JJ
days	NNS
are	VBP
expected	VBN
to	TO
report	NN
much	JJ
less	RBR
robust	JJ
earnings	NNS
than	IN
they	PRP
did	VBD
for	IN
the	DT
third	JJ
quarter	NN
a	DT
year	NN
ago	IN
,	,
largely	RB
reflecting	VBG
deteriorating	VBG
chemical	NN
prices	NNS
and	CC
gasoline	NN
profitability	NN
.	.

The	DT
gasoline	NN
picture	NN
may	MD
improve	VB
this	DT
quarter	NN
,	,
but	CC
chemicals	NNS
are	VBP
likely	JJ
to	TO
remain	VBP
weak	JJ
,	,
industry	NN
executives	NNS
and	CC
analysts	NNS
say	VBP
,	,
reducing	VBG
chances	NNS
that	IN
profits	NNS
could	MD
equal	JJ
their	PRP$
year-earlier	JJ
performance	NN
.	.

The	DT
industry	NN
is	VBZ
``	``
seeing	VBG
a	DT
softening	NN
somewhat	RB
in	IN
volume	NN
and	CC
certainly	RB
in	IN
price	NN
in	IN
petrochemicals	NNS
,	,
''	''
Glenn	NNP
Cox	NNP
,	,
president	NN
of	IN
Phillips	NNP
Petroleum	NN
Co.	NNP
,	,
said	VBD
in	IN
an	DT
interview	NN
.	.

``	``
That	DT
change	NN
will	MD
obviously	RB
impact	NN
third	JJ
and	CC
fourth	JJ
quarter	NN
earnings	NNS
''	''
for	IN
the	DT
industry	NN
in	IN
general	NN
,	,
he	PRP
added	VBD
.	.

He	PRP
did	VBD
n't	RB
forecast	VBP
Phillips	NNP
's	POS
results	NNS
.	.

But	CC
securities	NNS
analysts	NNS
say	VBP
Phillips	NNP
will	MD
be	VB
among	IN
the	DT
companies	NNS
hard-hit	JJ
by	IN
weak	JJ
chemical	NN
prices	NNS
and	CC
will	MD
probably	RB
post	NN
a	DT
drop	NN
in	IN
third-quarter	NN
earnings	NNS
.	.

So	IN
,	,
too	RB
,	,
many	JJ
analysts	NNS
predict	VBP
,	,
will	MD
Exxon	NNP
Corp.	NNP
,	,
Chevron	NNP
Corp.	NNP
and	CC
Amoco	NNP
Corp	NNP
.	.

Typical	JJ
is	VBZ
what	WP
happened	VBD
to	TO
the	DT
price	NN
of	IN
ethylene	NN
,	,
a	DT
major	JJ
commodity	NN
chemical	NN
produced	VBD
in	IN
vast	JJ
amounts	NNS
by	IN
many	JJ
oil	NN
companies	NNS
.	.

It	NNP
has	VBZ
plunged	VBD
13	CD
%	NN
since	IN
July	NNP
to	TO
around	IN
26	CD
cents	NNS
a	DT
pound	NN
.	.

A	DT
year	NN
ago	IN
ethylene	NN
sold	VBN
for	IN
33	CD
cents	NNS
,	,
peaking	VBG
at	IN
about	IN
34	CD
cents	NNS
last	JJ
December	NNP
.	.

A	DT
big	JJ
reason	NN
for	IN
the	DT
chemical	NN
price	NN
retreat	NN
is	VBZ
overexpansion	VB
.	.

Beginning	NN
in	IN
mid-1987	VB
,	,
prices	NNS
began	VBD
accelerating	VBG
as	RB
a	DT
growing	VBG
U.S.	NNP
economy	NN
and	CC
the	DT
weak	JJ
dollar	NN
spurred	VBN
demand	VBP
.	.

Companies	NNPS
added	VBD
capacity	NN
furiously	RB
.	.

Now	RB
,	,
greatly	RB
increased	VBN
supplies	NNS
are	VBP
on	IN
the	DT
market	NN
,	,
while	IN
the	DT
dollar	NN
is	VBZ
stronger	JJR
,	,
and	CC
domestic	JJ
economic	JJ
growth	NN
is	VBZ
slower	JJR
.	.

Third-quarter	NN
profits	NNS
from	IN
gasoline	NN
were	VBD
weaker	JJR
.	.

``	``
Refining	NNP
margins	NNS
were	VBD
so	RB
good	JJ
in	IN
the	DT
third	JJ
quarter	NN
of	IN
last	JJ
year	NN
and	CC
generally	RB
not	RB
very	RB
good	JJ
this	DT
year	NN
,	,
''	''
said	VBD
William	NNP
Randol	NNP
,	,
a	DT
securities	NNS
analyst	NN
at	IN
First	NNP
Boston	NNP
Corp	NNP
.	.

Oil	NNP
company	NN
refineries	NNS
ran	VBD
flat	JJ
out	IN
to	TO
prepare	VB
for	IN
a	DT
robust	JJ
holiday	NN
driving	VBG
season	NN
in	IN
July	NNP
and	CC
August	NNP
that	IN
did	VBD
n't	RB
materialize	VB
.	.

The	DT
excess	JJ
supply	VB
pushed	VBN
gasoline	NN
prices	NNS
down	IN
in	IN
that	IN
period	NN
.	.

In	IN
addition	NN
,	,
crude	NN
oil	NN
prices	NNS
were	VBD
up	RP
some	DT
from	IN
a	DT
year	NN
earlier	JJR
,	,
further	JJ
pressuring	VBG
profitability	NN
.	.

Refiners	IN
say	VBP
margins	NNS
picked	VBD
up	RP
in	IN
September	NNP
,	,
and	CC
many	JJ
industry	NN
officials	NNS
believe	VBP
gasoline	NN
profits	NNS
will	MD
rebound	NN
this	DT
quarter	NN
,	,
though	IN
still	RB
not	RB
to	TO
the	DT
level	NN
of	IN
1988	CD
's	POS
fourth	JJ
quarter	NN
.	.

During	IN
the	DT
1988	CD
second	JJ
half	NN
,	,
many	JJ
companies	NNS
posted	VBD
record	NN
gasoline	NN
and	CC
chemical	NN
profits	NNS
.	.

Crude	NNP
oil	NN
production	NN
may	MD
turn	VBP
out	IN
to	TO
be	VB
the	DT
most	RBS
surprising	JJ
element	NN
of	IN
companies	NNS
'	POS
earnings	NNS
this	DT
year	NN
.	.

Prices	NNS
--	:
averaging	VBG
roughly	RB
$	$
2	LS
a	DT
barrel	NN
higher	JJR
in	IN
the	DT
third	JJ
quarter	NN
than	IN
a	DT
year	NN
earlier	JJR
--	:
have	VB
stayed	VBN
well	RB
above	IN
most	RBS
companies	NNS
'	POS
expectations	NNS
.	.

Demand	NN
has	VBZ
been	VBN
much	JJ
stronger	JJR
than	IN
anticipated	VBN
,	,
and	CC
it	PRP
typically	RB
accelerates	VBZ
in	IN
the	DT
fourth	JJ
quarter	NN
.	.

``	``
We	PRP
could	MD
see	VB
higher	JJR
oil	NN
prices	NNS
this	DT
year	NN
,	,
''	''
said	VBD
Bryan	NNP
Jacoboski	NNP
,	,
an	DT
analyst	NN
at	IN
PaineWebber	NNP
Inc	NNP
.	.

That	DT
will	MD
translate	VB
into	IN
sharply	RB
higher	JJR
production	NN
profits	NNS
,	,
particularly	RB
compared	VBN
with	IN
last	JJ
year	NN
when	WRB
oil	NN
prices	NNS
steadily	RB
fell	VBD
to	TO
below	IN
$	$
13	CD
a	DT
barrel	NN
in	IN
the	DT
fourth	JJ
quarter	NN
.	.

While	IN
oil	NN
prices	NNS
have	VBP
been	VBN
better	JJR
than	IN
expected	VBN
,	,
natural	JJ
gas	NN
prices	NNS
have	VBP
been	VBN
worse	JJR
.	.

In	IN
the	DT
third	JJ
quarter	NN
,	,
they	PRP
averaged	VBD
about	IN
5	CD
%	NN
less	RBR
than	IN
they	PRP
were	VBD
in	IN
1988	CD
.	.

The	DT
main	JJ
reason	NN
remains	VBZ
weather	NN
.	.

Last	JJ
summer	NN
was	VBD
notable	JJ
for	IN
a	DT
heat	NN
wave	NN
and	CC
drought	NN
that	IN
caused	VBN
utilities	NNS
to	TO
burn	VBP
more	RBR
natural	JJ
gas	NN
to	TO
feed	NN
increased	VBN
electrical	JJ
demand	VBP
from	IN
air	NN
conditioning	NN
use	VBP
.	.

This	DT
summer	NN
,	,
on	IN
the	DT
other	JJ
hand	NN
,	,
had	VBD
milder	VB
weather	NN
than	IN
usual	JJ
.	.

``	``
We	PRP
've	VBP
been	VBN
very	RB
disappointed	JJ
in	IN
the	DT
performance	NN
of	IN
natural	JJ
gas	NN
prices	NNS
,	,
''	''
said	VBD
Mr.	NNP
Cox	NNP
,	,
Phillips	NNP
's	POS
president	NN
.	.

``	``
The	DT
lagging	JJ
gas	NN
price	NN
is	VBZ
not	RB
going	VBG
to	TO
assist	VB
fourth	JJ
quarter	NN
performance	NN
as	RB
many	JJ
had	VBD
expected	VBN
.	.
''	''

Going	VBG
into	IN
the	DT
fourth	JJ
quarter	NN
,	,
natural	JJ
gas	NN
prices	NNS
are	VBP
anywhere	RB
from	IN
8	CD
%	NN
to	TO
17	CD
%	NN
lower	JJR
than	IN
a	DT
year	NN
earlier	JJR
.	.

For	IN
instance	NN
,	,
natural	JJ
gas	NN
currently	RB
produced	VBN
along	IN
the	DT
Gulf	NNP
Coast	NNP
is	VBZ
selling	VBG
on	IN
the	DT
spot	NN
market	NN
for	IN
around	IN
$	$
1.47	CD
a	DT
thousand	CD
cubic	JJ
feet	NNS
,	,
down	IN
13	CD
%	NN
from	IN
$	$
1.69	CD
a	DT
thousand	CD
cubic	JJ
feet	NNS
a	DT
year	NN
ago	IN
.	.

The	DT
Bush	NNP
administration	NN
,	,
trying	VBG
to	TO
blunt	JJ
growing	VBG
demands	NNS
from	IN
Western	JJ
Europe	NNP
for	IN
a	DT
relaxation	NN
of	IN
controls	NNS
on	IN
exports	NNS
to	TO
the	DT
Soviet	NNP
bloc	NN
,	,
is	VBZ
questioning	VBG
whether	IN
Italy	NNP
's	POS
Ing	NNP
.	.
C.	NNP
Olivetti	NNP
&	CC
Co.	NNP
supplied	VBD
militarily	RB
valuable	JJ
technology	NN
to	TO
the	DT
Soviets	NNPS
.	.

Most	RBS
of	IN
the	DT
Western	JJ
European	NNP
members	NNS
of	IN
Coordinating	VB
Committee	NNP
on	IN
Multilateral	NNP
Export	NNP
Controls	VB
,	,
the	DT
unofficial	JJ
forum	NN
through	IN
which	WDT
the	DT
U.S.	NNP
and	CC
its	PRP$
allies	NNS
align	VB
their	PRP$
export-control	JJ
policies	NNS
,	,
are	VBP
expected	VBN
to	TO
argue	VBP
for	IN
more	RBR
liberal	JJ
export	NN
rules	NNS
at	IN
a	DT
meeting	VBG
to	TO
be	VB
held	VBD
in	IN
Paris	NNP
Oct.	NNP
25	CD
and	CC
26	CD
.	.

They	PRP
plan	VB
to	TO
press	NN
specifically	RB
for	IN
a	DT
relaxation	NN
of	IN
rules	NNS
governing	VBG
exports	NNS
of	IN
machine	NN
tools	NNS
,	,
computers	NNS
and	CC
other	JJ
high-technology	JJ
products	NNS
.	.

But	CC
the	DT
Bush	NNP
administration	NN
says	VBZ
it	PRP
wants	VBZ
to	TO
see	VB
evidence	NN
that	IN
all	DT
Cocom	NNP
members	NNS
are	VBP
complying	VBG
fully	RB
with	IN
existing	VBG
export-control	JJ
procedures	NNS
before	IN
it	PRP
will	MD
support	VB
further	JJ
liberalization	NN
.	.

To	TO
make	VBP
its	PRP$
point	VBP
,	,
it	PRP
is	VBZ
challenging	VBG
the	DT
Italian	JJ
government	NN
to	TO
explain	VB
reports	NNS
that	IN
Olivetti	NNP
may	MD
have	VB
supplied	VBD
the	DT
Soviet	NNP
Union	NNP
with	IN
sophisticated	JJ
computer-driven	JJ
devices	NNS
that	IN
could	MD
be	VB
used	VBN
to	TO
build	VB
parts	NNS
for	IN
combat	VB
aircraft	NN
.	.

The	DT
London	NNP
Sunday	NNP
Times	NNP
,	,
which	WDT
first	JJ
reported	VBN
the	DT
U.S.	NNP
concerns	NNS
,	,
cited	VBD
a	DT
U.S.	NNP
intelligence	NN
report	NN
as	RB
the	DT
source	NN
of	IN
the	DT
allegations	NNS
that	IN
Olivetti	NNP
exported	VBN
$	$
25	CD
million	CD
in	IN
``	``
embargoed	VBD
,	,
state-of-the-art	JJ
,	,
flexible	JJ
manufacturing	VBG
systems	NNS
to	TO
the	DT
Soviet	NNP
aviation	NN
industry	NN
.	.
''	''

Olivetti	NNP
reportedly	RB
began	VBD
shipping	VBG
these	DT
tools	NNS
in	IN
1984	CD
.	.

A	DT
State	NNP
Department	NNP
spokesman	NN
acknowledged	VBD
that	IN
the	DT
U.S.	NNP
is	VBZ
discussing	VBG
the	DT
allegations	NNS
with	IN
the	DT
Italian	JJ
government	NN
and	CC
Cocom	NNP
,	,
but	CC
declined	VBD
to	TO
confirm	VBP
any	DT
details	NNS
.	.

Italian	JJ
President	NNP
Francesco	VB
Cossiga	VB
promised	VBD
a	DT
quick	JJ
investigation	NN
into	IN
whether	IN
Olivetti	NNP
broke	VBD
Cocom	NNP
rules	NNS
.	.

President	NNP
Bush	NNP
called	VBN
his	PRP$
attention	NN
to	TO
the	DT
matter	NN
during	IN
the	DT
Italian	JJ
leader	NN
's	POS
visit	VB
here	RB
last	JJ
week	NN
.	.

Olivetti	NNP
has	VBZ
denied	VBD
that	IN
it	PRP
violated	VBN
Cocom	NNP
rules	NNS
,	,
asserting	VBG
that	IN
the	DT
reported	VBN
shipments	NNS
were	VBD
properly	RB
licensed	VBD
by	IN
the	DT
Italian	JJ
authorities	NNS
.	.

Although	IN
the	DT
legality	NN
of	IN
these	DT
sales	NNS
is	VBZ
still	RB
an	DT
open	JJ
question	NN
,	,
the	DT
disclosure	NN
could	MD
n't	RB
be	VB
better	JJR
timed	VBN
to	TO
support	VB
the	DT
position	NN
of	IN
export-control	JJ
hawks	NNS
in	IN
the	DT
Pentagon	NNP
and	CC
the	DT
intelligence	NN
community	NN
.	.

``	``
It	NNP
seems	VBZ
to	TO
me	PRP
that	IN
a	DT
story	NN
like	IN
this	DT
breaks	VBZ
just	RB
before	IN
every	DT
important	JJ
Cocom	NNP
meeting	VBG
,	,
''	''
said	VBD
a	DT
Washington	NNP
lobbyist	NN
for	IN
a	DT
number	NN
of	IN
U.S.	NNP
computer	NN
companies	NNS
.	.

The	DT
Bush	NNP
administration	NN
has	VBZ
sent	VBD
conflicting	VBG
signals	NNS
about	IN
its	PRP$
export-control	JJ
policies	NNS
,	,
reflecting	VBG
unhealed	VB
divisions	NNS
among	IN
several	JJ
competing	VBG
agencies	NNS
.	.

Last	JJ
summer	NN
,	,
Mr.	NNP
Bush	NNP
moved	VBD
the	DT
administration	NN
in	IN
the	DT
direction	NN
of	IN
gradual	JJ
liberalization	NN
when	WRB
he	PRP
told	VBD
a	DT
North	NNP
Atlantic	NNP
Treaty	NNP
Organization	NNP
meeting	VBG
that	IN
he	PRP
would	MD
allow	VB
some	DT
exceptions	NNS
to	TO
the	DT
Cocom	NNP
embargo	NN
of	IN
strategic	JJ
goods	NNS
.	.

But	CC
more	RBR
recently	RB
,	,
the	DT
Pentagon	NNP
and	CC
the	DT
Commerce	NNP
Department	NNP
openly	RB
feuded	VB
over	IN
the	DT
extent	NN
to	TO
which	WDT
Cocom	NNP
should	MD
liberalize	VB
exports	NNS
of	IN
personal	JJ
computers	NNS
to	TO
the	DT
bloc	NN
.	.

However	RB
,	,
these	DT
agencies	NNS
generally	RB
agree	VB
that	IN
the	DT
West	NNP
should	MD
be	VB
cautious	JJ
about	IN
any	DT
further	JJ
liberalization	NN
.	.

``	``
There	EX
's	POS
no	DT
evidence	NN
that	IN
the	DT
Soviet	NNP
program	NN
to	TO
(	(
illegally	RB
)	)
acquire	VB
Western	JJ
technology	NN
has	VBZ
diminished	VBN
,	,
''	''
said	VBD
a	DT
State	NNP
Department	NNP
spokesman	NN
.	.

Salomon	NNP
Brothers	NNPS
International	NNP
Ltd.	NNP
,	,
a	DT
British	JJ
subsidiary	NN
of	IN
Salomon	NNP
Inc.	NNP
,	,
announced	VBD
it	PRP
will	MD
issue	NN
warrants	NNS
on	IN
shares	NNS
of	IN
Hong	NNP
Kong	NNP
Telecommunications	NNPS
Ltd	NNP
.	.

The	DT
move	NN
closely	RB
follows	VBZ
a	DT
similar	JJ
offer	NN
by	IN
Salomon	NNP
of	IN
warrants	NNS
for	IN
shares	NNS
of	IN
Hongkong	NNP
&	CC
Shanghai	NNP
Banking	NNP
Corp	NNP
.	.

Under	IN
the	DT
latest	JJS
offer	NN
,	,
HK$	$
62.5	CD
million	CD
(	(
US$	$
8	CD
million	CD
)	)
of	IN
three-year	JJ
warrants	NNS
will	MD
be	VB
issued	VBN
in	IN
London	NNP
,	,
each	DT
giving	VBG
buyers	NNS
the	DT
right	NN
to	TO
buy	VB
one	CD
Hong	NNP
Kong	NNP
Telecommunications	NNPS
share	NN
at	IN
a	DT
price	NN
to	TO
be	VB
determined	VBN
Friday	NNP
.	.

The	DT
50	CD
million	CD
warrants	NNS
will	MD
be	VB
priced	VBN
at	IN
HK$	$
1.25	CD
each	DT
and	CC
are	VBP
expected	VBN
to	TO
carry	VBP
a	DT
premium	NN
to	TO
the	DT
share	NN
price	NN
of	IN
about	IN
26	CD
%	NN
.	.

In	IN
trading	NN
on	IN
the	DT
Stock	NNP
Exchange	NNP
of	IN
Hong	NNP
Kong	NNP
,	,
the	DT
shares	NNS
closed	VBN
Wednesday	NNP
at	IN
HK$	$
4.80	CD
each	DT
.	.

At	IN
this	DT
price	NN
,	,
the	DT
shares	NNS
would	MD
have	VB
to	TO
rise	VB
above	IN
HK$	$
6.05	CD
for	IN
subscribers	NNS
to	TO
Salomon	NNP
's	POS
issue	NN
to	TO
profitably	RB
convert	VB
their	PRP$
warrants	NNS
.	.

While	IN
Hong	NNP
Kong	NNP
companies	NNS
have	VBP
in	IN
the	DT
past	JJ
issued	VBD
warrants	NNS
on	IN
their	PRP$
own	JJ
shares	NNS
,	,
Salomon	NNP
's	POS
warrants	NNS
are	VBP
the	DT
first	JJ
here	RB
to	TO
be	VB
issued	VBN
by	IN
a	DT
third	JJ
party	NN
.	.

Salomon	NNP
will	MD
``	``
cover	VB
''	''
the	DT
warrants	NNS
by	IN
buying	VBG
sufficient	JJ
shares	NNS
,	,
or	CC
options	NNS
to	TO
purchase	VB
shares	NNS
,	,
to	TO
cover	VB
its	PRP$
entire	JJ
position	NN
.	.

Bankers	NNPS
said	VBD
warrants	NNS
for	IN
Hong	NNP
Kong	NNP
stocks	NNS
are	VBP
attractive	JJ
because	IN
they	PRP
give	VBP
foreign	JJ
investors	NNS
,	,
wary	JJ
of	IN
volatility	NN
in	IN
the	DT
colony	NN
's	POS
stock	NN
market	NN
,	,
an	DT
opportunity	NN
to	TO
buy	VB
shares	NNS
without	IN
taking	VBG
too	RB
great	JJ
a	DT
risk	NN
.	.

The	DT
Hong	NNP
Kong	NNP
Telecommunications	NNPS
warrants	NNS
should	MD
be	VB
attractive	JJ
to	TO
buyers	NNS
in	IN
Europe	NNP
,	,
the	DT
bankers	NNS
added	VBD
,	,
because	IN
the	DT
group	NN
is	VBZ
one	CD
of	IN
a	DT
handful	NN
of	IN
blue-chip	JJ
stocks	NNS
on	IN
the	DT
Hong	NNP
Kong	NNP
market	NN
that	IN
has	VBZ
international	JJ
appeal	VB
.	.

Financial	NNP
Corp.	NNP
of	IN
Santa	NNP
Barbara	NNP
filed	VBD
suit	NN
against	IN
former	JJ
stock	NN
speculator	NN
Ivan	NNP
F.	NNP
Boesky	NNP
and	CC
Drexel	NNP
Burnham	NNP
Lambert	NNP
Inc.	NNP
,	,
charging	VBG
they	PRP
defrauded	VBD
the	DT
thrift	NN
by	IN
concealing	VBG
their	PRP$
relationship	NN
when	WRB
persuading	VBG
it	PRP
to	TO
buy	VB
$	$
284	VB
million	CD
in	IN
high-yield	JJ
,	,
high-risk	JJ
junk	NN
bonds	NNS
.	.

In	IN
a	DT
suit	NN
filed	VBD
in	IN
federal	JJ
court	NN
Thursday	NNP
,	,
the	DT
S&L	NN
alleged	VBN
that	IN
a	DT
``	``
disproportionate	JJ
number	NN
''	''
of	IN
the	DT
bonds	NNS
it	PRP
purchased	VBD
in	IN
1984	CD
declined	VBD
in	IN
value	NN
.	.

Financial	NNP
Corp.	NNP
purchased	VBD
the	DT
bonds	NNS
,	,
the	DT
suit	NN
alleged	VBN
,	,
after	IN
Mr.	NNP
Boesky	NNP
and	CC
Drexel	NNP
negotiated	VBN
an	DT
agreement	NN
for	IN
Vagabond	VB
Hotels	NNPS
to	TO
purchase	VB
a	DT
51	CD
%	NN
stake	NN
in	IN
the	DT
thrift	NN
for	IN
about	IN
$	$
34	CD
million	CD
.	.

Vagabond	IN
Hotels	NNPS
was	VBD
controlled	VBN
by	IN
Mr.	NNP
Boesky	NNP
,	,
who	WP
currently	RB
is	VBZ
serving	VBG
a	DT
prison	NN
term	NN
for	IN
securities	NNS
violations	NNS
.	.

Officials	NNS
at	IN
Drexel	NNP
said	VBD
they	PRP
had	VBD
n't	RB
seen	VBN
the	DT
suit	NN
and	CC
thus	RB
could	MD
n't	RB
comment	NN
.	.

In	IN
addition	NN
to	TO
$	$
33	CD
million	CD
compensatory	JJ
damages	NNS
,	,
the	DT
suit	NN
seeks	VBZ
$	$
100	CD
million	CD
in	IN
punitive	JJ
damages	NNS
.	.

Also	RB
named	VBN
in	IN
the	DT
suit	NN
is	VBZ
Ivan	NNP
F.	NNP
Boesky	NNP
Corp.	NNP
and	CC
Northview	VB
Corp.	NNP
,	,
the	DT
successor	NN
company	NN
to	TO
Vagabonds	VB
Hotels	NNPS
.	.

Northview	IN
officials	NNS
could	MD
n't	RB
be	VB
located	VBN
.	.

Financial	NNP
Corp.	NNP
said	VBD
it	PRP
agreed	VBD
to	TO
buy	VB
the	DT
bonds	NNS
after	IN
a	DT
representative	NN
of	IN
Ivan	NNP
F.	NNP
Boesky	NNP
Corp.	NNP
visited	VBD
it	PRP
in	IN
November	NNP
1983	CD
and	CC
said	VBD
Financial	NNP
Corp.	NNP
could	MD
improve	VB
its	PRP$
financial	JJ
condition	NN
by	IN
purchasing	NN
the	DT
bonds	NNS
.	.

Shortly	RB
before	IN
the	DT
visit	VB
,	,
Mr.	NNP
Boesky	NNP
and	CC
Drexel	NNP
representives	VB
had	VBD
met	VBN
with	IN
Financial	NNP
Corp.	NNP
officials	NNS
and	CC
had	VBD
signed	VBD
a	DT
letter	NN
of	IN
intent	NN
to	TO
acquire	VB
the	DT
51	CD
%	NN
stake	NN
in	IN
the	DT
company	NN
.	.

However	RB
,	,
the	DT
agreement	NN
was	VBD
canceled	VBN
in	IN
June	NNP
1984	CD
.	.

Financial	NNP
Corp.	NNP
purchased	VBD
the	DT
bonds	NNS
in	IN
at	IN
least	JJS
70	CD
different	JJ
transactions	NNS
in	IN
1984	CD
and	CC
since	IN
then	RB
has	VBZ
realized	VBD
$	$
11	CD
million	CD
in	IN
losses	NNS
on	IN
them	PRP
,	,
the	DT
company	NN
said	VBD
.	.

Ideal	NNP
Basic	NNP
Industries	NNPS
Inc.	NNP
said	VBD
its	PRP$
directors	NNS
reached	VBN
an	DT
agreement	NN
in	IN
principle	NN
calling	VBG
for	IN
HOFI	VB
North	NNP
America	NNP
Inc.	NNP
to	TO
combine	VB
its	PRP$
North	NNP
American	JJ
cement	NN
holdings	NNS
with	IN
Ideal	NNP
in	IN
a	DT
transaction	NN
that	IN
will	MD
leave	VB
Ideal	NNP
's	POS
minority	NN
shareholders	NNS
with	IN
12.8	CD
%	NN
of	IN
the	DT
combined	VBN
company	NN
.	.

HOFI	IN
,	,
the	DT
North	NNP
American	JJ
holding	VBG
company	NN
of	IN
Swiss	JJ
concern	NN
Holderbank	VB
Financiere	NNP
Glaris	VB
Ltd.	NNP
,	,
previously	RB
proposed	VBN
combining	VBG
its	PRP$
100	CD
%	NN
stake	NN
in	IN
St.	NNP
Lawrence	NNP
Cement	VB
Inc.	NNP
and	CC
its	PRP$
60	CD
%	NN
stake	NN
in	IN
Dundee	VB
Cement	VB
Co.	NNP
with	IN
its	PRP$
67	CD
%	NN
stake	NN
in	IN
Ideal	NNP
.	.

But	CC
HOFI	VB
's	POS
first	JJ
offer	NN
would	MD
have	VB
given	VBN
Ideal	NNP
's	POS
other	JJ
shareholders	NNS
about	IN
10	CD
%	NN
of	IN
the	DT
combined	VBN
company	NN
.	.

Ideal	NNP
's	POS
directors	NNS
rejected	VBD
that	IN
offer	NN
,	,
although	IN
they	PRP
said	VBD
they	PRP
endorsed	VBD
the	DT
merger	NN
proposal	NN
.	.

Under	IN
the	DT
agreement	NN
,	,
HOFI	NNP
will	MD
own	JJ
87.2	VB
%	NN
of	IN
the	DT
combined	VBN
company	NN
.	.

Ideal	NNP
's	POS
current	NN
operations	NNS
will	MD
represent	VB
about	IN
39.2	CD
%	NN
of	IN
the	DT
combined	VBN
company	NN
.	.

The	DT
transaction	NN
is	VBZ
subject	NN
to	TO
a	DT
definitive	JJ
agreement	NN
and	CC
approval	NN
by	IN
Ideal	NNP
shareholders	NNS
.	.

Ideal	NNP
said	VBD
it	PRP
expects	VBZ
to	TO
complete	VB
the	DT
transaction	NN
early	RB
next	JJ
year	NN
.	.

While	IN
corn	NN
and	CC
soybean	NN
prices	NNS
have	VBP
slumped	VBN
well	RB
below	IN
their	PRP$
drought-induced	NN
peaks	NNS
of	IN
1988	CD
,	,
wheat	NN
prices	NNS
remain	VBP
stubbornly	RB
high	JJ
.	.

And	CC
they	PRP
're	VBP
likely	JJ
to	TO
stay	VB
that	IN
way	NN
for	IN
months	NNS
to	TO
come	VBP
,	,
analysts	NNS
say	VBP
.	.

For	IN
one	CD
thing	NN
,	,
even	RB
with	IN
many	JJ
farmers	NNS
planting	VBG
more	JJR
winter	NN
wheat	NN
this	DT
year	NN
than	IN
last	JJ
,	,
tight	JJ
wheat	NN
supplies	NNS
are	VBP
likely	JJ
to	TO
support	VB
prices	NNS
well	RB
into	IN
1990	CD
,	,
the	DT
analysts	NNS
say	VBP
.	.

And	CC
if	IN
rain	NN
does	VBZ
n't	RB
fall	VB
soon	RB
across	IN
many	JJ
of	IN
the	DT
Great	NNP
Plains	NNPS
'	POS
wheat-growing	VB
areas	NNS
,	,
yields	NNS
in	IN
the	DT
crop	NN
now	RB
being	VBG
planted	VBN
could	MD
be	VB
reduced	VBN
,	,
further	JJ
squeezing	VBG
supplies	NNS
.	.

Also	RB
supporting	VBG
prices	NNS
are	VBP
expectations	NNS
that	IN
the	DT
Soviet	NNP
Union	NNP
will	MD
place	NN
substantial	JJ
buying	VBG
orders	NNS
over	IN
the	DT
next	JJ
few	JJ
months	NNS
.	.

By	IN
next	JJ
May	NNP
31	CD
,	,
stocks	NNS
of	IN
U.S.	NNP
wheat	NN
to	TO
be	VB
carried	VBD
over	IN
into	IN
the	DT
next	JJ
season	NN
--	:
before	IN
the	DT
winter	NN
wheat	NN
now	RB
being	VBG
planted	VBN
is	VBZ
harvested	VBN
--	:
are	VBP
projected	VBN
to	TO
drop	NN
to	TO
443	CD
million	CD
bushels	NNS
.	.

That	DT
would	MD
be	VB
the	DT
lowest	JJS
level	NN
since	IN
the	DT
early	RB
1970s	CD
.	.

Stocks	NNS
were	VBD
698	VB
million	CD
bushels	NNS
on	IN
May	NNP
31	CD
of	IN
this	DT
year	NN
.	.

In	IN
response	NN
to	TO
dwindling	VBG
domestic	JJ
supplies	NNS
,	,
Agriculture	NNP
Secretary	NNP
Clayton	NNP
Yeutter	NNP
last	JJ
month	NN
said	VBD
the	DT
U.S.	NNP
government	NN
would	MD
slightly	RB
increase	NN
the	DT
number	NN
of	IN
acres	NNS
farmers	NNS
can	MD
plant	NN
in	IN
wheat	NN
for	IN
next	JJ
year	NN
and	CC
still	RB
qualify	VB
for	IN
federal	JJ
support	VB
payments	NNS
.	.

The	DT
government	NN
estimates	NNS
that	IN
the	DT
new	JJ
plan	VB
will	MD
boost	VB
production	NN
next	JJ
year	NN
by	IN
about	IN
66	CD
million	CD
bushels	NNS
.	.

It	NNP
now	RB
estimates	NNS
production	NN
for	IN
next	JJ
year	NN
at	IN
just	RB
under	IN
2.6	CD
billion	CD
bushels	NNS
,	,
compared	VBN
with	IN
this	DT
year	NN
's	POS
estimated	VBD
2.04	CD
billion	CD
and	CC
a	DT
drought-stunted	VB
1.81	CD
billion	CD
in	IN
1988	CD
.	.

But	CC
the	DT
full	JJ
effect	NN
on	IN
prices	NNS
of	IN
the	DT
winter	NN
wheat	NN
now	RB
being	VBG
planted	VBN
wo	MD
n't	RB
be	VB
felt	VBD
until	IN
the	DT
second	NN
half	DT
of	IN
next	JJ
year	NN
.	.

Until	IN
then	RB
,	,
limited	VBN
stocks	NNS
are	VBP
likely	JJ
to	TO
keep	VB
prices	NNS
near	IN
the	DT
$	$
4-a-bushel	CD
level	NN
,	,
analysts	NNS
say	VBP
.	.

On	IN
the	DT
Chicago	NNP
Board	NNP
of	IN
Trade	NNP
Friday	NNP
,	,
wheat	NN
for	IN
December	NNP
delivery	NN
settled	VBD
at	IN
$	$
4.0675	CD
a	DT
bushel	NN
,	,
unchanged	JJ
.	.

In	IN
theory	NN
at	IN
least	JJS
,	,
tight	RB
supplies	NNS
next	JJ
spring	NN
could	MD
leave	VB
the	DT
wheat	NN
futures	NNS
market	NN
susceptible	JJ
to	TO
a	DT
supply-demand	JJ
squeeze	NN
,	,
said	VBD
Daniel	NNP
Basse	VB
,	,
a	DT
futures	NNS
analyst	NN
with	IN
AgResource	VB
Co.	NNP
in	IN
Chicago	NNP
.	.

Such	JJ
a	DT
situation	NN
can	MD
wreak	VB
havoc	NN
,	,
as	RB
was	VBD
shown	VBN
by	IN
the	DT
emergency	NN
that	IN
developed	VBD
in	IN
soybean	NN
futures	NNS
trading	NN
this	DT
summer	NN
on	IN
the	DT
Chicago	NNP
Board	NNP
of	IN
Trade	NN
.	.

In	IN
July	NNP
,	,
the	DT
CBOT	VB
ordered	VBD
Ferruzzi	NNP
Finanziaria	NNP
S.p	NNP
.	.
A.	NNP
to	TO
liquidate	VB
futures	NNS
positions	NNS
equal	JJ
to	TO
about	IN
23	CD
million	CD
bushels	NNS
of	IN
soybeans	NNS
.	.

The	DT
exchange	NN
said	VBD
it	PRP
feared	VBD
that	IN
some	DT
members	NNS
would	MD
n't	RB
be	VB
able	JJ
to	TO
find	VB
enough	RB
soybeans	NNS
to	TO
deliver	VB
and	CC
would	MD
have	VB
to	TO
default	VB
on	IN
their	PRP$
contractual	JJ
obligation	NN
to	TO
the	DT
Italian	JJ
conglomerate	NN
,	,
which	WDT
had	VBD
refused	VBD
requests	NNS
to	TO
reduce	VB
its	PRP$
holdings	NNS
.	.

Ferruzzi	NNP
has	VBZ
denied	VBD
it	PRP
was	VBD
trying	VBG
to	TO
manipulate	VB
the	DT
soybean	NN
futures	NNS
market	NN
.	.

Unseasonably	IN
hot	JJ
,	,
dry	JJ
weather	NN
across	IN
large	JJ
portions	NNS
of	IN
the	DT
Great	NNP
Plains	NNPS
and	CC
in	IN
wheat-growing	VB
areas	NNS
in	IN
Washington	NNP
and	CC
Oregon	NNP
is	VBZ
threatening	VBG
to	TO
reduce	VB
the	DT
yield	VB
from	IN
this	DT
season	NN
's	POS
winter	NN
wheat	NN
crop	NN
,	,
said	VBD
Conrad	VB
Leslie	NNP
,	,
a	DT
futures	NNS
analyst	NN
and	CC
head	VB
of	IN
Leslie	NNP
Analytical	NNP
in	IN
Chicago	NNP
.	.

For	IN
example	NN
,	,
in	IN
the	DT
Oklahoma	NNP
panhandle	NNP
,	,
40	CD
%	NN
or	CC
more	RBR
of	IN
the	DT
topsoil	VB
is	VBZ
short	JJ
of	IN
moisture	NN
.	.

That	DT
figure	NN
climbs	VBZ
to	TO
about	IN
47	CD
%	NN
in	IN
wheat-growing	VB
portions	NNS
of	IN
Kansas	NNP
,	,
he	PRP
said	VBD
.	.

The	DT
Soviet	JJ
Union	NNP
has	VBZ
n't	RB
given	VBN
any	DT
clear	VB
indication	NN
of	IN
its	PRP$
wheat	NN
purchase	VB
plans	NNS
,	,
but	CC
many	JJ
analysts	NNS
expect	VBP
Moscow	NNP
to	TO
place	NN
sizable	JJ
orders	NNS
for	IN
U.S.	NNP
wheat	NN
in	IN
the	DT
next	JJ
few	JJ
months	NNS
,	,
further	JJ
supporting	VBG
prices	NNS
.	.

``	``
Wheat	NNP
prices	NNS
will	MD
increasingly	RB
pivot	VB
off	RP
of	IN
Soviet	NNP
demand	VBP
''	''
in	IN
coming	VBG
weeks	NNS
,	,
predicted	VBD
Richard	NNP
Feltes	VB
,	,
vice	NN
president	NN
,	,
research	NN
,	,
for	IN
Refco	NNP
Inc.	NNP
in	IN
Chicago	NNP
.	.

Looking	VBG
ahead	RB
to	TO
other	JJ
commodity	NN
markets	NNS
this	DT
week	NN
:	:

Orange	NNP
Juice	VB
Traders	NNS
will	MD
be	VB
watching	VBG
to	TO
see	VB
how	WRB
long	JJ
and	CC
how	WRB
far	JJ
the	DT
price	NN
decline	NN
that	IN
began	VBD
Friday	NNP
will	MD
go	VB
.	.

Late	JJ
Thursday	NNP
,	,
after	IN
the	DT
close	VB
of	IN
trading	NN
,	,
the	DT
market	NN
received	VBD
what	WP
would	MD
normally	RB
have	VB
been	VBN
a	DT
bullish	JJ
U.S.	NNP
Department	NNP
of	IN
Agriculture	NNP
estimate	NN
of	IN
the	DT
1989-90	CD
Florida	NNP
orange	NN
crop	NN
.	.

It	NNP
was	VBD
near	IN
the	DT
low	JJ
range	NN
of	IN
estimates	NNS
,	,
at	IN
130	CD
million	CD
90-pound	VB
boxes	NNS
,	,
compared	VBN
with	IN
146.6	VB
million	CD
boxes	NNS
last	JJ
season	NN
.	.

However	RB
,	,
as	RB
expected	VBN
,	,
Brazil	NNP
waited	VBD
for	IN
the	DT
crop	NN
estimate	NN
to	TO
come	VBP
out	IN
and	CC
then	RB
cut	VB
the	DT
export	NN
price	NN
of	IN
its	PRP$
juice	NN
concentrate	VB
to	TO
about	IN
$	$
1.34	CD
a	DT
pound	NN
from	IN
around	IN
$	$
1.55	CD
.	.

Friday	NNP
's	POS
consequent	JJ
selling	VBG
of	IN
futures	NNS
contracts	NNS
erased	VBN
whatever	WDT
supportive	JJ
effect	NN
the	DT
U.S.	NNP
report	NN
might	MD
have	VB
had	VBD
and	CC
sent	VBD
the	DT
November	NNP
orange	NN
juice	NN
contract	NN
down	IN
as	RB
much	JJ
as	RB
6.55	VB
cents	NNS
a	DT
pound	NN
at	IN
one	CD
time	NN
.	.

It	NNP
settled	VBD
with	IN
a	DT
loss	NN
of	IN
4.95	VB
cents	NNS
at	IN
$	$
1.3210	VB
a	DT
pound	NN
.	.

Brazilian	JJ
juice	NN
,	,
after	IN
a	DT
delay	VB
caused	VBN
by	IN
drought	NN
at	IN
the	DT
start	VB
of	IN
its	PRP$
crop	NN
season	NN
,	,
is	VBZ
beginning	NN
to	TO
arrive	VB
in	IN
the	DT
U.S.	NNP
in	IN
large	JJ
quantities	NNS
.	.

Brazil	NNP
wants	VBZ
to	TO
stimulate	VB
demand	VBP
for	IN
its	PRP$
product	NN
,	,
which	WDT
is	VBZ
going	VBG
to	TO
be	VB
in	IN
plentiful	JJ
supply	VB
.	.

The	DT
price	NN
cut	VB
,	,
one	CD
analyst	NN
said	VBD
,	,
appeared	VBD
to	TO
be	VB
aimed	VBN
even	RB
more	RBR
at	IN
Europe	NNP
,	,
where	WRB
consumption	NN
of	IN
Brazilian	JJ
juice	NN
has	VBZ
fallen	VBN
.	.

It	NNP
's	POS
a	DT
dollar-priced	VB
product	NN
,	,
and	CC
the	DT
strong	JJ
dollar	NN
has	VBZ
made	VBN
it	PRP
more	RBR
expensive	JJ
in	IN
Europe	NNP
,	,
the	DT
analyst	NN
said	VBD
.	.

New	NNP
York	NNP
futures	NNS
prices	NNS
have	VB
dropped	VBD
significantly	RB
from	IN
more	RBR
than	IN
$	$
2	LS
a	DT
pound	NN
at	IN
midyear	NN
.	.

Barring	VBG
a	DT
cold	NN
snap	VBP
or	CC
other	JJ
crop	NN
problems	NNS
in	IN
the	DT
growing	VBG
areas	NNS
,	,
downward	RB
pressure	NN
on	IN
prices	NNS
is	VBZ
likely	JJ
to	TO
continue	VB
into	IN
January	NNP
,	,
when	WRB
harvesting	VB
and	CC
processing	NN
of	IN
oranges	NNS
in	IN
Florida	NNP
reach	VBP
their	PRP$
peak	NN
,	,
the	DT
analyst	NN
said	VBD
.	.

Energy	NNP

Although	IN
some	DT
analysts	NNS
look	VBP
for	IN
profit-taking	NN
in	IN
the	DT
wake	NN
of	IN
Friday	NNP
's	POS
leap	NN
in	IN
crude	JJ
oil	NN
prices	NNS
,	,
last	JJ
week	NN
's	POS
rally	NN
is	VBZ
generally	RB
expected	VBN
to	TO
continue	VB
this	DT
week	NN
.	.

``	``
I	PRP
would	MD
continue	VB
to	TO
look	VB
for	IN
a	DT
stable	JJ
crude	NN
market	NN
,	,
at	IN
least	JJS
in	IN
futures	NNS
''	''
trading	NN
,	,
said	VBD
William	NNP
Hinton	VB
,	,
an	DT
energy	NN
futures	NNS
broker	NN
with	IN
Stotler	VB
&	CC
Co	NNP
.	.

Friday	NNP
capped	VBD
a	DT
week	NN
of	IN
steadily	RB
rising	VBG
crude	NN
oil	NN
prices	NNS
in	IN
both	DT
futures	NNS
and	CC
spot	NN
markets	NNS
.	.

On	IN
the	DT
New	NNP
York	NNP
Mercantile	NNP
Exchange	NNP
,	,
West	NNP
Texas	NNP
Intermediate	NNP
crude	NN
for	IN
November	NNP
delivery	NN
finished	VBD
at	IN
$	$
20.89	CD
a	DT
barrel	NN
,	,
up	RP
42	CD
cents	NNS
on	IN
the	DT
day	NN
.	.

On	IN
European	JJ
markets	NNS
,	,
meanwhile	RB
,	,
spot	NN
prices	NNS
of	IN
North	NNP
Sea	NNP
crudes	NNS
were	VBD
up	RP
35	CD
to	TO
75	CD
cents	NNS
a	DT
barrel	NN
.	.

``	``
This	DT
market	NN
still	RB
wants	VBZ
to	TO
go	VB
higher	JJR
,	,
''	''
said	VBD
Nauman	NNP
Barakat	NNP
,	,
a	DT
first	JJ
vice	NN
president	NN
at	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc	NNP
.	.

He	PRP
predicted	VBD
that	IN
the	DT
November	NNP
contract	NN
will	MD
reach	VBP
$	$
21.50	VB
a	DT
barrel	NN
or	CC
more	RBR
on	IN
the	DT
New	NNP
York	NNP
Mercantile	NNP
Exchange	NNP
.	.

There	EX
has	VBZ
been	VBN
little	RB
news	NN
to	TO
account	NN
for	IN
such	JJ
buoyancy	VB
in	IN
the	DT
oil	NN
markets	NNS
.	.

Analysts	NNS
generally	RB
cite	VBP
a	DT
lack	VBP
of	IN
bearish	JJ
developments	NNS
as	RB
well	RB
as	RB
rumors	NNS
of	IN
a	DT
possible	JJ
tightening	VBG
of	IN
supplies	NNS
of	IN
some	DT
fuels	NNS
and	CC
crudes	NNS
.	.

There	EX
also	RB
are	VBP
recurring	VBG
reports	NNS
that	IN
the	DT
Soviet	NNP
Union	NNP
is	VBZ
having	VBG
difficulties	NNS
with	IN
its	PRP$
oil	NN
exports	NNS
and	CC
that	IN
Nigeria	NNP
has	VBZ
about	IN
reached	VBN
its	PRP$
production	NN
limit	NN
and	CC
ca	MD
n't	RB
produce	VB
as	RB
much	JJ
as	RB
it	PRP
could	MD
sell	VB
.	.

Many	DT
traders	NNS
foresee	VB
a	DT
tightening	VBG
of	IN
near-term	JJ
supplies	NNS
,	,
particularly	RB
of	IN
high-quality	JJ
crudes	NNS
such	JJ
as	RB
those	DT
produced	VBD
in	IN
the	DT
North	NNP
Sea	NNP
and	CC
in	IN
Nigeria	NNP
.	.

If	IN
a	DT
hostile	JJ
predator	VB
emerges	VBZ
for	IN
Saatchi	NNP
&	CC
Saatchi	NNP
Co.	NNP
,	,
co-founders	NNS
Charles	NNP
and	CC
Maurice	NNP
Saatchi	NNP
will	MD
lead	NN
a	DT
management	NN
buy-out	NN
attempt	NN
,	,
an	DT
official	NN
close	VB
to	TO
the	DT
company	NN
said	VBD
.	.

Financing	NNP
for	IN
any	DT
takeover	NN
attempt	NN
may	MD
be	VB
problematic	JJ
in	IN
the	DT
wake	NN
of	IN
Friday	NNP
's	POS
stock-market	NN
sell-off	NN
in	IN
New	NNP
York	NNP
and	CC
turmoil	NN
in	IN
the	DT
junk-bond	NN
market	NN
.	.

But	CC
the	DT
beleaguered	JJ
British	JJ
advertising	NN
and	CC
consulting	VBG
giant	NN
,	,
which	WDT
last	JJ
week	NN
named	VBN
a	DT
new	JJ
chief	NN
executive	NN
officer	NN
to	TO
replace	VB
Maurice	NNP
Saatchi	NNP
,	,
has	VBZ
been	VBN
the	DT
subject	NN
of	IN
intense	JJ
takeover	NN
speculation	NN
for	IN
weeks	NNS
.	.

Last	JJ
week	NN
,	,
Saatchi	NNP
's	POS
largest	JJS
shareholder	NN
,	,
Southeastern	NNP
Asset	NNP
Management	NNP
,	,
said	VBD
it	PRP
had	VBD
been	VBN
approached	VBN
by	IN
one	CD
or	CC
more	RBR
third	JJ
parties	NNS
interested	JJ
in	IN
a	DT
possible	JJ
restructuring	NN
.	.

And	CC
Carl	NNP
Spielvogel	NNP
,	,
chief	NN
executive	NN
officer	NN
of	IN
Saatchi	NNP
's	POS
big	JJ
Backer	NNP
Spielvogel	NNP
Bates	NNP
advertising	NN
unit	NN
,	,
said	VBD
he	PRP
had	VBD
offered	VBD
to	TO
lead	NN
a	DT
management	NN
buy-out	NN
of	IN
the	DT
company	NN
,	,
but	CC
was	VBD
rebuffed	VBN
by	IN
Charles	NNP
Saatchi	NNP
.	.

Mr.	NNP
Spielvogel	NNP
said	VBD
he	PRP
would	MD
n't	RB
launch	VB
a	DT
hostile	JJ
bid	NN
.	.

The	DT
executive	NN
close	VB
to	TO
Saatchi	NNP
&	CC
Saatchi	NNP
said	VBD
that	IN
``	``
if	IN
a	DT
bidder	NN
came	VBD
up	RP
with	IN
a	DT
ludicrously	RB
high	JJ
offer	NN
,	,
a	DT
crazy	JJ
offer	NN
which	WDT
Saatchi	NNP
knew	VBD
it	PRP
could	MD
n't	RB
beat	JJ
,	,
it	PRP
would	MD
have	VB
no	DT
choice	NN
but	CC
to	TO
recommend	VB
it	PRP
to	TO
shareholders	NNS
.	.

But	CC
{	(
otherwise	RB
}	)
it	PRP
would	MD
undoubtedly	RB
come	VBP
back	RB
''	''
with	IN
an	DT
offer	NN
by	IN
management	NN
.	.

The	DT
executive	NN
said	VBD
any	DT
buy-out	NN
would	MD
be	VB
led	VBN
by	IN
the	DT
current	NN
board	NN
,	,
whose	WP$
chairman	NN
is	VBZ
Maurice	NNP
Saatchi	NNP
and	CC
whose	WP$
strategic	JJ
guiding	VBG
force	NN
is	VBZ
believed	VBN
to	TO
be	VB
Charles	NNP
Saatchi	NNP
.	.

Mr.	NNP
Spielvogel	NNP
is	VBZ
n't	RB
part	NN
of	IN
the	DT
board	NN
,	,
nor	CC
are	VBP
any	DT
of	IN
the	DT
other	JJ
heads	VBZ
of	IN
Saatchi	NNP
's	POS
big	JJ
U.S.-based	JJ
ad	NN
agencies	NNS
.	.

The	DT
executive	NN
did	VBD
n't	RB
name	NN
any	DT
price	NN
,	,
but	CC
securities	NNS
analysts	NNS
have	VB
said	VBD
Saatchi	NNP
would	MD
fetch	VB
upward	RB
of	IN
$	$
1.3	CD
billion	CD
.	.

The	DT
executive	NN
denied	VBD
speculation	NN
that	IN
Saatchi	NNP
was	VBD
bringing	VBG
in	IN
the	DT
new	JJ
chief	NN
executive	NN
officer	NN
only	RB
to	TO
clean	VB
up	RP
the	DT
company	NN
financially	RB
so	RB
that	IN
the	DT
brothers	NNS
could	MD
lead	NN
a	DT
buy-back	JJ
.	.

That	DT
speculation	NN
abounded	VBD
Friday	NNP
as	RB
industry	NN
executives	NNS
analyzed	VBD
the	DT
appointment	NN
of	IN
the	DT
new	JJ
chief	NN
executive	NN
,	,
Robert	NNP
Louis-Dreyfus	NNP
,	,
who	WP
joins	VBZ
Saatchi	NNP
and	CC
becomes	VBZ
a	DT
member	NN
of	IN
its	PRP$
board	NN
on	IN
Jan.	NNP
1	CD
.	.

Mr.	NNP
Louis-Dreyfus	NNP
,	,
formerly	RB
chief	NN
executive	NN
of	IN
the	DT
pharmaceutical	JJ
research	NN
firm	JJ
IMS	NNP
International	NNP
Inc.	NNP
,	,
has	VBZ
a	DT
reputation	NN
as	RB
a	DT
savvy	JJ
financial	JJ
manager	NN
,	,
and	CC
will	MD
be	VB
charged	VBD
largely	RB
with	IN
repairing	VBG
Saatchi	NNP
's	POS
poor	JJ
financial	JJ
state	NN
.	.

Asked	VBN
about	IN
the	DT
speculation	NN
that	IN
Mr.	NNP
Louis-Dreyfus	NNP
has	VBZ
been	VBN
hired	VBN
to	TO
pave	VB
the	DT
way	NN
for	IN
a	DT
buy-out	NN
by	IN
the	DT
brothers	NNS
,	,
the	DT
executive	NN
replied	VBD
,	,
``	``
That	DT
is	VBZ
n't	RB
the	DT
reason	NN
Dreyfus	NNP
has	VBZ
been	VBN
brought	VBD
in	IN
.	.

He	PRP
was	VBD
brought	VBD
in	IN
to	TO
turn	VBP
around	IN
the	DT
company	NN
.	.
''	''

Separately	RB
,	,
several	JJ
Saatchi	NNP
agency	NN
clients	NNS
said	VBD
they	PRP
believe	VBP
the	DT
company	NN
's	POS
management	NN
shakeup	NN
will	MD
have	VB
little	RB
affect	VB
on	IN
them	PRP
.	.

``	``
It	NNP
has	VBZ
n't	RB
had	VBD
any	DT
impact	NN
on	IN
us	PRP
,	,
nor	CC
do	VB
we	PRP
expect	VBP
it	PRP
to	TO
,	,
''	''
said	VBD
a	DT
spokeswoman	NN
for	IN
Miller	NNP
Brewing	NNP
Co.	NNP
,	,
a	DT
major	JJ
client	NN
of	IN
Backer	NNP
Spielvogel	NNP
.	.

John	NNP
Lampe	VB
,	,
director	NN
of	IN
advertising	NN
at	IN
PaineWebber	NNP
Inc.	NNP
,	,
a	DT
Saatchi	NNP
&	CC
Saatchi	NNP
Advertising	NNP
client	NN
,	,
said	VBD
:	:
``	``
We	PRP
have	VB
no	DT
problem	NN
with	IN
the	DT
announcement	NN
,	,
because	IN
we	PRP
do	VB
n't	RB
know	VB
what	WP
change	NN
it	PRP
's	POS
going	VBG
to	TO
bring	VB
about	IN
.	.

We	PRP
are	VBP
n't	RB
going	VBG
to	TO
change	NN
agencies	NNS
because	IN
of	IN
a	DT
change	NN
in	IN
London	NNP
.	.
''	''

Executives	NNS
at	IN
Backer	NNP
Spielvogel	NNP
client	NN
Avis	NNP
Inc.	NNP
,	,
as	RB
well	RB
as	RB
at	IN
Saatchi	NNP
client	NN
Philips	NNP
Lighting	NNP
Co.	NNP
,	,
also	RB
said	VBD
they	PRP
saw	VBD
no	DT
effect	NN
.	.

Executives	NNS
at	IN
Prudential-Bache	NNP
Securities	NNPS
Inc.	NNP
,	,
a	DT
Backer	NNP
Spielvogel	NNP
client	NN
that	IN
is	VBZ
reviewing	VBG
its	PRP$
account	NN
,	,
declined	VBD
comment	NN
.	.

Mr.	NNP
Spielvogel	NNP
had	VBD
said	VBD
that	IN
Prudential-Bache	NNP
was	VBD
prepared	VBN
to	TO
finance	NN
either	CC
a	DT
management	NN
buy-out	NN
and	CC
restructuring	NN
,	,
or	CC
a	DT
buy-out	NN
of	IN
Backer	NNP
Spielvogel	NNP
alone	RB
,	,
led	VBN
by	IN
him	PRP
.	.

Ad	NN
Notes	NNS
...	:
.	.

NEW	NNP
ACCOUNT	NN
:	:

California	NNP
's	POS
Glendale	VB
Federal	NNP
Bank	NNP
awarded	VBD
its	PRP$
$	$
12	CD
million	CD
to	TO
$	$
15	CD
million	CD
account	NN
to	TO
the	DT
Los	NNP
Angeles	NNP
office	NN
of	IN
Omnicom	NNP
Group	NNP
's	POS
BBDO	NNP
agency	NN
.	.

The	DT
account	NN
was	VBD
previously	RB
handled	VBD
by	IN
Davis	NNP
,	,
Ball	NNP
&	CC
Colombatto	VB
Advertising	NNP
Inc.	NNP
,	,
a	DT
Los	NNP
Angeles	NNP
agency	NN
.	.

ACCOUNT	NN
REVIEW	NNP
:	:

Royal	NNP
Crown	NNP
Cola	VB
Co.	NNP
has	VBZ
ended	VBD
its	PRP$
relationship	NN
with	IN
the	DT
Boston	NNP
office	NN
of	IN
Hill	NNP
,	,
Holliday	VB
,	,
Connors	NNP
,	,
Cosmopulos	VB
.	.

The	DT
account	NN
had	VBD
billed	VBN
about	IN
$	$
6	CD
million	CD
in	IN
1988	CD
,	,
according	VBG
to	TO
Leading	JJ
National	NNP
Advertisers	NNS
.	.

NOT-GUILTY	IN
PLEA	NNP
:	:

As	IN
expected	VBN
,	,
Young	NNP
&	CC
Rubicam	NNP
Inc.	NNP
along	IN
with	IN
two	CD
senior	JJ
executives	NNS
and	CC
a	DT
former	JJ
employee	NN
,	,
pleaded	VBD
not	RB
guilty	JJ
in	IN
federal	JJ
court	NN
in	IN
New	NNP
Haven	NNP
,	,
Conn.	NNP
,	,
to	TO
conspiracy	NN
and	CC
racketeering	NN
charges	VBZ
.	.

The	DT
government	NN
has	VBZ
charged	VBD
that	IN
they	PRP
bribed	VBN
Jamaican	JJ
officials	NNS
to	TO
win	VB
the	DT
Jamaica	NNP
Tourist	NNP
Board	NNP
ad	NN
account	NN
in	IN
1981	CD
.	.

A	DT
spokesman	NN
for	IN
the	DT
U.S.	NNP
Attorney	NNP
's	POS
office	NN
said	VBD
extradition	NN
proceedings	NNS
are	VBP
``	``
just	RB
beginning	NN
''	''
for	IN
the	DT
other	JJ
two	CD
defendants	NNS
in	IN
the	DT
case	NN
,	,
Eric	NNP
Anthony	NNP
Abrahams	VB
,	,
former	JJ
Jamaican	JJ
tourism	NN
minister	NN
,	,
and	CC
Jamaican	JJ
businessman	NN
Arnold	NNP
Foote	NNP
Jr	NNP
.	.

KOREAN	IN
AGENCY	NNP
:	:

The	DT
Samsung	NNP
Group	NNP
and	CC
Bozell	NNP
Inc.	NNP
agreed	VBD
to	TO
establish	VB
a	DT
joint	JJ
venture	NN
advertising	NN
agency	NN
in	IN
South	NNP
Korea	NNP
.	.

Bozell	NNP
Cheil	VB
Corp.	NNP
,	,
as	RB
the	DT
new	JJ
agency	NN
will	MD
be	VB
called	VBN
,	,
will	MD
be	VB
based	VBN
in	IN
Seoul	NNP
and	CC
is	VBZ
70	CD
%	NN
owned	VBN
by	IN
Samsung	NNP
and	CC
30	CD
%	NN
owned	VBN
by	IN
Bozell	NNP
.	.

Samsung	NNP
already	RB
owns	VBZ
Korea	NNP
First	NNP
Advertising	NNP
Co.	NNP
,	,
that	IN
country	NN
's	POS
largest	JJS
agency	NN
.	.

Bozell	NNP
joins	VBZ
Backer	NNP
Spielvogel	NNP
Bates	NNP
and	CC
Ogilvy	NNP
Group	NNP
as	RB
U.S.	NNP
agencies	NNS
with	IN
interests	NNS
in	IN
Korean	JJ
agencies	NNS
.	.

Citing	VBG
a	DT
payment	NN
from	IN
a	DT
supplier	NN
and	CC
strong	JJ
sales	NNS
of	IN
certain	JJ
data-storage	JJ
products	NNS
,	,
Maxtor	VB
Corp.	NNP
said	VBD
earnings	NNS
and	CC
revenue	NN
jumped	VBD
in	IN
its	PRP$
second	NN
quarter	NN
ended	VBD
Sept.	NNP
24	CD
.	.

The	DT
maker	NN
of	IN
computer-data-storage	VB
products	NNS
said	VBD
net	JJ
income	NN
rose	VBD
to	TO
$	$
4.8	CD
million	CD
,	,
or	CC
23	CD
cents	NNS
a	DT
share	NN
,	,
from	IN
year-earlier	JJ
net	JJ
of	IN
$	$
1.1	CD
million	CD
,	,
or	CC
five	CD
cents	NNS
a	DT
share	NN
.	.

Revenue	NN
soared	VBN
to	TO
$	$
117	CD
million	CD
from	IN
$	$
81.5	VB
million	CD
.	.

Maxtor	IN
said	VBD
its	PRP$
results	NNS
were	VBD
boosted	VBD
by	IN
$	$
2	LS
million	CD
in	IN
payments	NNS
received	VBD
from	IN
a	DT
supplier	NN
,	,
for	IN
a	DT
certain	JJ
line	NN
of	IN
products	NNS
that	IN
Maxtor	VB
is	VBZ
n't	RB
going	VBG
to	TO
sell	VB
anymore	RB
.	.

Maxtor	IN
said	VBD
effects	NNS
from	IN
discontinuing	VBG
the	DT
line	NN
may	MD
have	VB
a	DT
positive	JJ
effect	NN
on	IN
future	NN
earnings	NNS
and	CC
revenue	NN
.	.

A	DT
spokeswoman	NN
would	MD
n't	RB
elaborate	JJ
,	,
but	CC
the	DT
company	NN
said	VBD
the	DT
discontinued	VBN
product	NN
has	VBZ
never	RB
been	VBN
a	DT
major	JJ
source	NN
of	IN
revenue	NN
or	CC
profit	NN
.	.

Operationally	IN
,	,
Maxtor	VB
benefited	VBD
from	IN
robust	JJ
sales	NNS
of	IN
products	NNS
that	IN
store	NN
data	NNS
for	IN
high-end	JJ
personal	JJ
computers	NNS
and	CC
computer	NN
workstations	NNS
.	.

In	IN
the	DT
fiscal	JJ
first	JJ
half	DT
,	,
net	JJ
was	VBD
$	$
7	CD
million	CD
,	,
or	CC
34	CD
cents	NNS
a	DT
share	NN
,	,
up	RP
from	IN
the	DT
year-earlier	JJ
$	$
3.1	CD
million	CD
,	,
or	CC
15	CD
cents	NNS
a	DT
share	NN
.	.

Revenue	NN
rose	VBD
to	TO
$	$
225.5	CD
million	CD
from	IN
$	$
161.8	VB
million	CD
.	.

Robert	NNP
G.	NNP
Walden	VB
,	,
62	CD
years	NNS
old	JJ
,	,
was	VBD
elected	VBN
a	DT
director	NN
of	IN
this	DT
provider	NN
of	IN
advanced	VBD
technology	NN
systems	NNS
and	CC
services	NNS
,	,
increasing	VBG
the	DT
board	NN
to	TO
eight	CD
members	NNS
.	.

He	PRP
retired	VBD
as	RB
senior	JJ
vice	NN
president	NN
,	,
finance	NN
and	CC
administration	NN
,	,
and	CC
chief	NN
financial	JJ
officer	NN
of	IN
the	DT
company	NN
Oct.	NNP
1	CD
.	.

Southmark	NNP
Corp.	NNP
said	VBD
that	IN
it	PRP
filed	VBD
part	NN
of	IN
its	PRP$
10-K	VB
report	NN
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
,	,
but	CC
that	IN
the	DT
filing	NN
does	VBZ
n't	RB
include	VB
its	PRP$
audited	VBN
financial	JJ
statements	NNS
and	CC
related	VBN
information	NN
.	.

The	DT
real	JJ
estate	NN
and	CC
thrift	NN
concern	NN
,	,
operating	VBG
under	IN
bankruptcy-law	NN
proceedings	NNS
,	,
said	VBD
it	PRP
told	VBD
the	DT
SEC	NNP
it	PRP
could	MD
n't	RB
provide	VB
financial	JJ
statements	NNS
by	IN
the	DT
end	NN
of	IN
its	PRP$
first	JJ
extension	NN
``	``
without	IN
unreasonable	JJ
burden	NN
or	CC
expense	NN
.	.
''	''

The	DT
company	NN
asked	VBD
for	IN
a	DT
15-day	JJ
extension	NN
Sept.	NNP
30	CD
,	,
when	WRB
the	DT
financial	JJ
reports	NNS
were	VBD
due	JJ
.	.

Southmark	NNP
said	VBD
it	PRP
plans	NNS
to	TO
amend	VB
its	PRP$
10K	VB
to	TO
provide	VB
financial	JJ
results	NNS
as	RB
soon	RB
as	RB
its	PRP$
audit	NN
is	VBZ
completed	VBN
.	.

Alan	NNP
Seelenfreund	VB
,	,
52	CD
years	NNS
old	JJ
,	,
was	VBD
named	VBN
chairman	NN
of	IN
this	DT
processor	NN
of	IN
prescription	NN
claims	VBZ
,	,
succeeding	VBG
Thomas	NNP
W.	NNP
Field	NNP
Jr.	NNP
,	,
55	CD
,	,
who	WP
resigned	VBD
last	JJ
month	NN
.	.

Mr.	NNP
Field	NNP
also	RB
had	VBD
been	VBN
chairman	NN
of	IN
McKesson	VB
Corp.	NNP
,	,
resigning	VBG
that	IN
post	NN
after	IN
a	DT
dispute	NN
with	IN
the	DT
board	NN
over	IN
corporate	JJ
strategy	NN
.	.

Mr.	NNP
Seelenfreund	VB
is	VBZ
executive	NN
vice	NN
president	NN
and	CC
chief	NN
financial	JJ
officer	NN
of	IN
McKesson	VB
and	CC
will	MD
continue	VB
in	IN
those	DT
roles	NNS
.	.

PCS	IN
also	RB
named	VBN
Rex	NNP
R.	NNP
Malson	VB
,	,
57	CD
,	,
executive	NN
vice	NN
president	NN
at	IN
McKesson	VB
,	,
as	RB
a	DT
director	NN
,	,
filling	VBG
the	DT
seat	NN
vacated	VBN
by	IN
Mr.	NNP
Field	NNP
.	.

Messrs.	NNPS
Malson	VB
and	CC
Seelenfreund	VB
are	VBP
directors	NNS
of	IN
McKesson	VB
,	,
which	WDT
has	VBZ
an	DT
86	CD
%	NN
stake	NN
in	IN
PCS	VB
.	.

MedChem	IN
Products	NNP
Inc.	NNP
said	VBD
a	DT
U.S.	NNP
District	NNP
Court	NNP
in	IN
Boston	NNP
ruled	VBD
that	IN
a	DT
challenge	NN
by	IN
MedChem	VB
to	TO
the	DT
validity	NN
of	IN
a	DT
U.S.	NNP
patent	NN
held	VBD
by	IN
Pharmacia	VB
Inc.	NNP
was	VBD
``	``
without	IN
merit	NN
.	.
''	''

Pharmacia	IN
,	,
based	VBN
in	IN
Upsala	VB
,	,
Sweden	NNP
,	,
had	VBD
charged	VBD
in	IN
a	DT
lawsuit	NN
against	IN
MedChem	VB
that	IN
MedChem	VB
's	POS
AMVISC	VB
product	NN
line	NN
infringes	VBZ
on	IN
the	DT
Pharmacia	VB
patent	NN
.	.

The	DT
patent	NN
is	VBZ
related	VBN
to	TO
hyaluronic	VB
acid	NN
,	,
a	DT
rooster-comb	VB
extract	VB
used	VBN
in	IN
eye	NN
surgery	NN
.	.

In	IN
its	PRP$
lawsuit	NN
,	,
Pharmacia	VB
is	VBZ
seeking	VBG
unspecified	JJ
damages	NNS
and	CC
a	DT
preliminary	JJ
injunction	NN
to	TO
block	NN
MedChem	VB
from	IN
selling	VBG
the	DT
AMVISC	VB
products	NNS
.	.

A	DT
MedChem	NN
spokesman	NN
said	VBD
the	DT
products	NNS
contribute	VBP
about	IN
a	DT
third	JJ
of	IN
MedChem	VB
's	POS
sales	NNS
and	CC
10	CD
%	NN
to	TO
20	CD
%	NN
of	IN
its	PRP$
earnings	NNS
.	.

In	IN
the	DT
year	NN
ended	VBD
Aug.	NNP
31	CD
,	,
1988	CD
,	,
MedChem	VB
earned	VBN
$	$
2.9	CD
million	CD
,	,
or	CC
72	CD
cents	NNS
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
17.4	CD
million	CD
.	.

MedChem	IN
said	VBD
the	DT
court	NN
's	POS
ruling	NN
was	VBD
issued	VBN
as	RB
part	NN
of	IN
a	DT
``	``
first-phase	VB
trial	NN
''	''
in	IN
the	DT
patent-infringement	NN
proceedings	NNS
and	CC
concerns	NNS
only	RB
one	CD
of	IN
its	PRP$
defenses	NNS
in	IN
the	DT
case	NN
.	.

It	NNP
said	VBD
it	PRP
is	VBZ
considering	VBG
``	``
all	DT
of	IN
its	PRP$
options	NNS
in	IN
light	JJ
of	IN
the	DT
decision	NN
,	,
including	VBG
a	DT
possible	JJ
appeal	VB
.	.
''	''

The	DT
medical-products	NNS
company	NN
added	VBD
that	IN
it	PRP
plans	NNS
to	TO
``	``
assert	VB
its	PRP$
other	JJ
defenses	NNS
''	''
against	IN
Pharmacia	VB
's	POS
lawsuit	NN
,	,
including	VBG
the	DT
claim	NN
that	IN
it	PRP
has	VBZ
n't	RB
infringed	VBD
on	IN
Pharmacia	VB
's	POS
patent	NN
.	.

MedChem	IN
said	VBD
that	IN
the	DT
court	NN
scheduled	VBN
a	DT
conference	NN
for	IN
next	JJ
Monday	NNP
--	:
to	TO
set	VBN
a	DT
date	NN
for	IN
proceedings	NNS
on	IN
Pharmacia	VB
's	POS
motion	NN
for	IN
a	DT
preliminary	JJ
injunction	NN
.	.

Newspaper	NNP
publishers	NNS
are	VBP
reporting	VBG
mixed	VBN
third-quarter	NN
results	NNS
,	,
aided	VBN
by	IN
favorable	JJ
newsprint	NN
prices	NNS
and	CC
hampered	VBN
by	IN
flat	JJ
or	CC
declining	VBG
advertising	NN
linage	NN
,	,
especially	RB
in	IN
the	DT
Northeast	NNP
.	.

Adding	VBG
to	TO
unsteadiness	VB
in	IN
the	DT
industry	NN
,	,
seasonal	JJ
retail	JJ
ad	NN
spending	NN
patterns	NNS
in	IN
newspapers	NNS
have	VB
been	VBN
upset	JJ
by	IN
shifts	NNS
in	IN
ownership	NN
and	CC
general	NN
hardships	NNS
within	IN
the	DT
retail	JJ
industry	NN
.	.

In	IN
New	NNP
York	NNP
,	,
the	DT
Bonwit	NNP
Teller	NNP
and	CC
B.	NNP
Altman	NNP
&	CC
Co.	NNP
department	NN
stores	NNS
have	VB
filed	VBD
for	IN
protection	NN
from	IN
creditors	NNS
under	IN
Chapter	NN
11	CD
of	IN
the	DT
federal	JJ
Bankruptcy	NNP
Code	NNP
,	,
while	IN
the	DT
R.H.	NNP
Macy	NNP
&	CC
Co.	NNP
,	,
Bloomingdale	NNP
's	POS
and	CC
Saks	NNP
Fifth	NNP
Avenue	NNP
department-store	JJ
chains	NNS
are	VBP
for	IN
sale	NN
.	.

Many	DT
papers	NNS
throughout	IN
the	DT
country	NN
are	VBP
also	RB
faced	VBN
with	IN
a	DT
slowdown	NN
in	IN
classified-ad	VB
spending	NN
,	,
a	DT
booming	JJ
category	NN
for	IN
newspapers	NNS
in	IN
recent	JJ
years	NNS
.	.

Until	IN
recently	RB
,	,
industry	NN
analysts	NNS
believed	VBD
decreases	NNS
in	IN
retail	JJ
ad	NN
spending	NN
had	VBD
bottomed	VBD
out	IN
and	CC
would	MD
in	IN
fact	NN
increase	NN
in	IN
this	DT
year	NN
's	POS
third	JJ
and	CC
fourth	JJ
quarters	NNS
.	.

All	DT
bets	NNS
are	VBP
off	RP
,	,
analysts	NNS
say	VBP
,	,
because	IN
of	IN
the	DT
shifting	VBG
ownership	NN
of	IN
the	DT
retail	JJ
chains	NNS
.	.

``	``
Improved	VB
paper	NN
prices	NNS
will	MD
help	VB
offset	VB
weakness	NN
in	IN
linage	NN
,	,
but	CC
the	DT
retailers	NNS
'	POS
problems	NNS
have	VB
affected	VBD
the	DT
amount	VBP
of	IN
ad	NN
linage	NN
they	PRP
usually	RB
run	VBD
,	,
''	''
said	VBD
Edward	NNP
J.	NNP
Atorino	VB
,	,
industry	NN
analyst	NN
for	IN
Salomon	NNP
Brothers	NNPS
Inc	NNP
.	.

``	``
Retailers	NNP
are	VBP
just	RB
in	IN
disarray	NN
.	.
''	''

For	IN
instance	NN
,	,
Gannett	NNP
Co.	NNP
posted	VBD
an	DT
11	CD
%	NN
gain	NN
in	IN
net	JJ
income	NN
,	,
as	IN
total	JJ
ad	NN
pages	NNS
dropped	VBD
at	IN
USA	NNP
Today	NNP
,	,
but	CC
advertising	NN
revenue	NN
rose	VBD
because	IN
of	IN
a	DT
higher	JJR
circulation	NN
rate	NN
base	NN
and	CC
increased	VBN
rates	NNS
.	.

Gannett	NNP
's	POS
83	CD
daily	JJ
and	CC
35	CD
non-daily	JJ
newspapers	NNS
reported	VBN
a	DT
3	CD
%	NN
increase	NN
in	IN
advertising	NN
and	CC
circulation	NN
revenue	NN
.	.

Total	JJ
advertising	NN
linage	NN
was	VBD
``	``
modestly	RB
''	''
lower	JJR
as	RB
classified-ad	VB
volume	NN
increased	VBN
,	,
while	IN
there	EX
was	VBD
``	``
softer	JJR
demand	VBP
''	''
for	IN
retail	JJ
and	CC
national	JJ
ad	NN
linage	NN
,	,
said	VBD
John	NNP
Curley	VB
,	,
Gannett	NNP
's	POS
chief	NN
executive	NN
officer	NN
.	.

At	IN
USA	NNP
Today	NNP
,	,
ad	NN
pages	NNS
totaled	VBD
785	CD
for	IN
the	DT
quarter	NN
,	,
down	IN
9.2	CD
%	NN
from	IN
the	DT
1988	CD
period	NN
,	,
which	WDT
was	VBD
helped	VBD
by	IN
increased	VBN
ad	NN
spending	NN
from	IN
the	DT
Summer	NNP
Olympics	NNP
.	.

While	IN
USA	NNP
Today	NNP
's	POS
total	JJ
paid	VBN
ad	NN
pages	NNS
for	IN
the	DT
year	NN
to	TO
date	VB
totaled	VBD
2,735	NN
,	,
a	DT
decrease	NN
of	IN
4	CD
%	NN
from	IN
last	JJ
year	NN
,	,
the	DT
paper	NN
's	POS
ad	NN
revenue	NN
increased	VBN
8	CD
%	NN
in	IN
the	DT
quarter	NN
and	CC
13	CD
%	NN
in	IN
the	DT
nine	CD
months	NNS
.	.

In	IN
the	DT
nine	CD
months	NNS
,	,
Gannett	NNP
's	POS
net	JJ
rose	VBD
9.5	CD
%	NN
to	TO
$	$
270	CD
million	CD
,	,
or	CC
$	$
1.68	CD
a	DT
share	NN
,	,
from	IN
$	$
247	CD
million	CD
,	,
or	CC
$	$
1.52	CD
a	DT
share	NN
.	.

Revenue	NN
gained	VBN
6	CD
%	NN
to	TO
$	$
2.55	CD
billion	CD
from	IN
$	$
2.4	CD
billion	CD
.	.

At	IN
Dow	NNP
Jones	NNP
&	CC
Co.	NNP
,	,
third-quarter	JJ
net	NN
income	NN
fell	VBD
9.9	CD
%	NN
from	IN
the	DT
year-earlier	JJ
period	NN
.	.

Net	JJ
fell	VBD
to	TO
$	$
28.8	CD
million	CD
,	,
or	CC
29	CD
cents	NNS
a	DT
share	NN
,	,
from	IN
$	$
32	CD
million	CD
,	,
or	CC
33	CD
cents	NNS
a	DT
share	NN
.	.

The	DT
year-earlier	JJ
period	NN
included	VBN
a	DT
one-time	JJ
gain	NN
of	IN
$	$
3.5	CD
million	CD
,	,
or	CC
four	CD
cents	NNS
a	DT
share	NN
.	.

Revenue	NN
gained	VBN
5.3	CD
%	NN
to	TO
$	$
404.1	VB
million	CD
from	IN
$	$
383.8	VB
million	CD
.	.

The	DT
drop	NN
in	IN
profit	NN
reflected	VBD
,	,
in	IN
part	NN
,	,
continued	VBD
softness	NN
in	IN
financial	JJ
advertising	NN
at	IN
The	DT
Wall	NNP
Street	NNP
Journal	NNP
and	CC
Barron	NNP
's	POS
magazine	NN
.	.

Ad	NN
linage	NN
at	IN
the	DT
Journal	NNP
fell	VBD
6.1	CD
%	NN
in	IN
the	DT
third	JJ
quarter	NN
.	.

Affiliated	NNP
Publications	NNP
Inc.	NNP
reversed	VBN
a	DT
year-earlier	JJ
third	JJ
quarter	NN
net	JJ
loss	NN
.	.

The	DT
publisher	NN
of	IN
the	DT
Boston	NNP
Globe	NNP
reported	VBN
net	JJ
of	IN
$	$
8.5	CD
million	CD
,	,
or	CC
12	CD
cents	NNS
a	DT
share	NN
,	,
compared	VBN
with	IN
a	DT
loss	NN
of	IN
$	$
26.5	CD
million	CD
,	,
or	CC
38	CD
cents	NNS
a	DT
share	NN
,	,
for	IN
the	DT
third	JJ
quarter	NN
in	IN
1988	CD
.	.

William	NNP
O.	NNP
Taylor	NNP
,	,
the	DT
parent	NN
's	POS
chairman	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
said	VBD
earnings	NNS
continued	VBD
to	TO
be	VB
hurt	VBN
by	IN
softness	NN
in	IN
ad	NN
volume	NN
at	IN
the	DT
Boston	NNP
newspaper	NN
.	.

Third-quarter	NN
profit	NN
estimates	NNS
for	IN
several	JJ
companies	NNS
are	VBP
being	VBG
strongly	RB
affected	VBD
by	IN
the	DT
price	NN
of	IN
newsprint	NN
,	,
which	WDT
in	IN
the	DT
last	JJ
two	CD
years	NNS
has	VBZ
had	VBD
several	JJ
price	NN
increases	NNS
.	.

After	IN
a	DT
supply	VB
crunch	NN
caused	VBN
prices	NNS
to	TO
rise	VB
14	CD
%	NN
since	IN
1986	CD
to	TO
$	$
650	CD
a	DT
metric	JJ
ton	NN
,	,
analysts	NNS
are	VBP
encouraged	VBN
,	,
because	IN
they	PRP
do	VB
n't	RB
expect	VBP
a	DT
price	NN
increase	NN
for	IN
the	DT
rest	NN
of	IN
this	DT
year	NN
.	.

Companies	NNPS
with	IN
daily	JJ
newspapers	NNS
in	IN
the	DT
Northeast	NNP
will	MD
need	MD
the	DT
stable	JJ
newsprint	NN
prices	NNS
to	TO
ease	VB
damage	NN
from	IN
weak	JJ
ad	NN
linage	NN
.	.

Mr.	NNP
Atorino	VB
at	IN
Salomon	NNP
Brothers	NNPS
said	VBD
he	PRP
estimates	NNS
that	IN
Times	NNP
Mirror	NNP
Co.	NNP
's	POS
earnings	NNS
were	VBD
down	IN
for	IN
the	DT
third	JJ
quarter	NN
,	,
because	IN
of	IN
soft	JJ
advertising	NN
levels	NNS
at	IN
its	PRP$
Long	NNP
Island	NNP
Newsday	NNP
and	CC
Hartford	NNP
Courant	NNP
newspapers	NNS
.	.

Trouble	NN
on	IN
the	DT
East	NNP
Coast	NNP
was	VBD
likely	JJ
offset	VB
by	IN
improved	VBN
ad	NN
linage	NN
at	IN
the	DT
Los	NNP
Angeles	NNP
Times	NNP
,	,
which	WDT
this	DT
week	NN
also	RB
unveiled	VBD
a	DT
redesign	VB
.	.

New	NNP
York	NNP
Times	NNP
Co.	NNP
is	VBZ
expected	VBN
to	TO
report	NN
lower	JJR
earnings	NNS
for	IN
the	DT
third	JJ
quarter	NN
because	IN
of	IN
continued	VBD
weak	JJ
advertising	NN
levels	NNS
at	IN
its	PRP$
flagship	NN
New	NNP
York	NNP
Times	NNP
and	CC
deep	JJ
discounting	NN
of	IN
newsprint	NN
at	IN
its	PRP$
affiliate	NN
,	,
Forest	NNP
Products	NNPS
Group	NNP
.	.

``	``
Times	NNP
Co.	NNP
's	POS
regional	JJ
daily	JJ
newspapers	NNS
are	VBP
holding	VBG
up	RP
well	RB
,	,
but	CC
there	EX
is	VBZ
little	RB
sign	NN
that	IN
things	NNS
will	MD
improve	VB
in	IN
the	DT
New	NNP
York	NNP
market	NN
,	,
''	''
said	VBD
Alan	NNP
Kassan	VB
,	,
an	DT
analyst	NN
with	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
.	.

Washington	NNP
Post	NNP
Co.	NNP
is	VBZ
expected	VBN
to	TO
report	NN
improved	VBN
earnings	NNS
,	,
largely	RB
because	IN
of	IN
increased	VBN
cable	NN
revenue	NN
and	CC
publishing	VBG
revenue	NN
helped	VBD
by	IN
an	DT
improved	VBN
retail	JJ
market	NN
in	IN
the	DT
Washington	NNP
area	NN
.	.

According	VBG
to	TO
analysts	NNS
,	,
profits	NNS
were	VBD
also	RB
helped	VBD
by	IN
successful	JJ
cost-cutting	NN
measures	NNS
at	IN
Newsweek	NNP
.	.

The	DT
news-weekly	NN
has	VBZ
faced	VBN
heightened	VBN
competition	NN
from	IN
rival	NN
Time	NNP
magazine	NN
and	CC
a	DT
relatively	RB
flat	JJ
magazine	NN
advertising	NN
market	NN
.	.

Knight-Ridder	NNP
Inc.	NNP
is	VBZ
faced	VBN
with	IN
continued	VBD
uncertainty	NN
over	IN
the	DT
pending	VBG
joint	JJ
operating	VBG
agreement	NN
between	IN
its	PRP$
Detroit	NNP
Free	NNP
Press	NNP
and	CC
Gannett	NNP
's	POS
Detroit	NNP
News	NNP
,	,
and	CC
has	VBZ
told	VBD
analysts	NNS
that	IN
earnings	NNS
were	VBD
down	IN
in	IN
the	DT
third	JJ
quarter	NN
.	.

However	RB
,	,
analysts	NNS
point	VBP
to	TO
positive	JJ
advertising	NN
spending	NN
at	IN
several	JJ
of	IN
its	PRP$
major	JJ
daily	JJ
newspapers	NNS
,	,
such	JJ
as	RB
the	DT
Miami	NNP
Herald	NNP
and	CC
San	NNP
Jose	NNP
Mercury	NNP
News	NNP
.	.

``	``
The	DT
Miami	NNP
market	NN
is	VBZ
coming	VBG
back	RB
strong	JJ
after	IN
a	DT
tough	JJ
couple	NN
of	IN
years	NNS
''	''
when	WRB
Knight-Ridder	NNP
``	``
was	VBD
starting	VBG
up	RP
a	DT
Hispanic	JJ
edition	NN
and	CC
circulation	NN
was	VBD
falling	VBG
,	,
''	''
said	VBD
Bruce	NNP
Thorp	VB
,	,
an	DT
analyst	NN
for	IN
Provident	NNP
National	NNP
Bank	NNP
.	.

General	NNP
Motors	NNPS
Corp.	NNP
,	,
in	IN
a	DT
series	NN
of	IN
moves	NNS
that	IN
angered	VBN
union	NN
officials	NNS
in	IN
the	DT
U.S.	NNP
and	CC
Canada	NNP
,	,
has	VBZ
signaled	VBD
that	IN
as	RB
many	JJ
as	RB
five	CD
North	NNP
American	JJ
assembly	NN
plants	NNS
may	MD
not	RB
survive	VB
the	DT
mid-1990s	CD
as	RB
the	DT
corporation	NN
struggles	VBZ
to	TO
cut	VB
its	PRP$
excess	JJ
vehicle-making	VB
capacity	NN
.	.

In	IN
announcements	NNS
to	TO
workers	NNS
late	JJ
last	JJ
week	NN
,	,
GM	NNP
effectively	RB
signed	VBD
death	NN
notices	NNS
for	IN
two	CD
full-sized	JJ
van	NN
assembly	NN
plants	NNS
,	,
and	CC
cast	NN
serious	JJ
doubt	VB
on	IN
the	DT
futures	NNS
of	IN
three	CD
U.S.	NNP
car	NN
factories	NNS
.	.

GM	NNP
is	VBZ
under	IN
intense	JJ
pressure	NN
to	TO
close	VB
factories	NNS
that	IN
became	VBD
unprofitable	JJ
as	RB
the	DT
giant	NN
auto	NN
maker	NN
's	POS
U.S.	NNP
market	NN
share	NN
skidded	VBD
during	IN
the	DT
past	IN
decade	NN
.	.

The	DT
company	NN
,	,
currently	RB
using	VBG
about	IN
80	CD
%	NN
of	IN
its	PRP$
North	NNP
American	JJ
vehicle	NN
capacity	NN
,	,
has	VBZ
vowed	VBD
it	PRP
will	MD
run	VBD
at	IN
100	CD
%	NN
of	IN
capacity	NN
by	IN
1992	CD
.	.

Just	RB
a	DT
month	NN
ago	IN
,	,
GM	NNP
announced	VBD
it	PRP
would	MD
make	VBP
an	DT
aging	VBG
assembly	NN
plant	NN
in	IN
Lakewood	VB
,	,
Ga.	NNP
,	,
the	DT
eighth	JJ
U.S.	NNP
assembly	NN
facility	NN
to	TO
close	VB
since	IN
1987	CD
.	.

Now	RB
,	,
GM	NNP
appears	VBZ
to	TO
be	VB
stepping	JJ
up	RP
the	DT
pace	NN
of	IN
its	PRP$
factory	NN
consolidation	NN
to	TO
get	VB
in	IN
shape	NN
for	IN
the	DT
1990s	CD
.	.

One	CD
reason	NN
is	VBZ
mounting	VBG
competition	NN
from	IN
new	JJ
Japanese	JJ
car	NN
plants	NNS
in	IN
the	DT
U.S.	NNP
that	IN
are	VBP
pouring	VBG
out	IN
more	RBR
than	IN
one	CD
million	CD
vehicles	NNS
a	DT
year	NN
at	IN
costs	NNS
lower	JJR
than	IN
GM	NNP
can	MD
match	VB
.	.

Another	DT
is	VBZ
that	IN
United	NNP
Auto	NNP
Workers	NNPS
union	NN
officials	NNS
have	VBP
signaled	VBN
they	PRP
want	VBP
tighter	JJR
no-layoff	NN
provisions	NNS
in	IN
the	DT
new	JJ
Big	NNP
Three	NNP
national	JJ
contract	NN
that	IN
will	MD
be	VB
negotiated	VBN
next	JJ
year	NN
.	.

GM	NNP
officials	NNS
want	VBP
to	TO
get	VB
their	PRP$
strategy	NN
to	TO
reduce	VB
capacity	NN
and	CC
the	DT
work	NN
force	NN
in	IN
place	NN
before	IN
those	DT
talks	NNS
begin	VB
.	.

The	DT
problem	NN
,	,
however	RB
,	,
is	VBZ
that	IN
GM	NNP
's	POS
moves	NNS
are	VBP
coming	VBG
at	IN
a	DT
time	NN
when	WRB
UAW	NNP
leaders	NNS
are	VBP
trying	VBG
to	TO
silence	NN
dissidents	NNS
who	WP
charge	NN
the	DT
union	NN
is	VBZ
too	RB
passive	JJ
in	IN
the	DT
face	NN
of	IN
GM	NNP
layoffs	NNS
.	.

Against	IN
that	DT
backdrop	NN
,	,
UAW	NNP
Vice	NNP
President	NNP
Stephen	NNP
P.	NNP
Yokich	VB
,	,
who	WP
recently	RB
became	VBD
head	VB
of	IN
the	DT
union	NN
's	POS
GM	NNP
department	NN
,	,
issued	VBN
a	DT
statement	NN
Friday	NNP
blasting	VB
GM	NNP
's	POS
``	``
flagrant	VB
insensitivity	VB
''	''
toward	IN
union	NN
members	NNS
.	.

The	DT
auto	NN
maker	NN
's	POS
decision	NN
to	TO
let	VBN
word	NN
of	IN
the	DT
latest	JJS
shutdowns	NNS
and	CC
product	NN
reassignments	VB
trickle	VB
out	IN
in	IN
separate	VB
communiques	NNS
to	TO
the	DT
affected	VBD
plants	NNS
showed	VBD
``	``
disarray	NN
''	''
and	CC
an	DT
``	``
inability	NN
or	CC
unwillingness	NN
to	TO
provide	VB
consistent	JJ
information	NN
,	,
''	''
Mr.	NNP
Yokich	VB
said	VBD
.	.

GM	NNP
officials	NNS
told	VBD
workers	NNS
late	JJ
last	JJ
week	NN
of	IN
the	DT
following	VBG
moves	NNS
:	:
Production	NN
of	IN
full-sized	JJ
vans	NNS
will	MD
be	VB
consolidated	JJ
into	IN
a	DT
single	JJ
plant	NN
in	IN
Flint	NNP
,	,
Mich	NNP
.	.

That	DT
means	VBZ
two	CD
plants	NNS
--	:
one	CD
in	IN
Scarborough	NNP
,	,
Ontario	NNP
,	,
and	CC
the	DT
other	JJ
in	IN
Lordstown	NNP
,	,
Ohio	NNP
--	:
probably	RB
will	MD
be	VB
shut	VB
down	IN
after	IN
the	DT
end	NN
of	IN
1991	CD
.	.

The	DT
shutdowns	NNS
will	MD
idle	JJ
about	IN
3,000	CD
Canadian	JJ
assembly	NN
workers	NNS
and	CC
about	IN
2,500	CD
workers	NNS
in	IN
Ohio	NNP
.	.

Robert	NNP
White	NNP
,	,
Canadian	JJ
Auto	NN
Workers	NNPS
union	NN
president	NN
,	,
used	VBN
the	DT
impending	JJ
Scarborough	NNP
shutdown	NN
to	TO
criticize	VBP
the	DT
U.S.-Canada	NNP
free	JJ
trade	NN
agreement	NN
and	CC
its	PRP$
champion	VBP
,	,
Prime	NNP
Minister	NNP
Brian	NNP
Mulroney	NNP
.	.

But	CC
Canadian	JJ
auto	NN
workers	NNS
may	MD
benefit	NN
from	IN
a	DT
separate	VB
GM	NNP
move	NN
that	IN
affects	VBZ
three	CD
U.S.	NNP
car	NN
plants	NNS
and	CC
one	CD
in	IN
Quebec	NNP
.	.

Workers	NNPS
at	IN
plants	NNS
in	IN
Van	NNP
Nuys	NNP
,	,
Calif.	NNP
,	,
Oklahoma	NNP
City	NNP
and	CC
Pontiac	NNP
,	,
Mich.	NNP
,	,
were	VBD
told	VBD
their	PRP$
facilities	NNS
are	VBP
no	DT
longer	RB
being	VBG
considered	VBN
to	TO
build	VB
the	DT
next	JJ
generation	NN
of	IN
the	DT
Pontiac	NNP
Firebird	VB
and	CC
Chevrolet	NNP
Camaro	VB
muscle	NN
cars	NNS
.	.

GM	NNP
is	VBZ
studying	VBG
whether	IN
it	PRP
can	MD
build	VB
the	DT
new	JJ
Camaro-Firebird	VB
profitably	RB
at	IN
a	DT
plant	NN
in	IN
St.	NNP
Therese	VB
,	,
Quebec	NNP
,	,
company	NN
and	CC
union	NN
officials	NNS
said	VBD
.	.

That	DT
announcement	NN
left	VBN
union	NN
officials	NNS
in	IN
Van	NNP
Nuys	NNP
and	CC
Oklahoma	NNP
City	NNP
uncertain	JJ
about	IN
their	PRP$
futures	NNS
.	.

The	DT
Van	NNP
Nuys	NNP
plant	NN
,	,
which	WDT
employs	VBZ
about	IN
3,000	CD
workers	NNS
,	,
does	VBZ
n't	RB
have	VB
a	DT
product	NN
to	TO
build	VB
after	IN
1993	CD
.	.

Jerry	NNP
Shrieves	VB
,	,
UAW	NNP
local	JJ
president	NN
,	,
said	VBD
the	DT
facility	NN
was	VBD
asked	VBD
to	TO
draw	VB
up	RP
plans	NNS
to	TO
continue	VB
working	VBG
as	RB
a	DT
``	``
flex	VB
plant	NN
,	,
''	''
which	WDT
could	MD
build	VB
several	JJ
different	JJ
types	NNS
of	IN
products	NNS
on	IN
short	JJ
notice	NN
to	TO
satisfy	VB
demand	VBP
.	.

At	IN
the	DT
Oklahoma	NNP
City	NNP
plant	NN
,	,
which	WDT
employs	VBZ
about	RB
6,000	CD
workers	NNS
building	VBG
the	DT
eight-year-old	NN
A-body	NN
mid-sized	JJ
cars	NNS
,	,
Steve	NNP
Featherston	VB
,	,
UAW	NNP
local	JJ
vice	NN
president	NN
,	,
said	VBD
the	DT
plant	NN
has	VBZ
no	DT
new	JJ
product	NN
lined	VBD
up	RP
,	,
and	CC
``	``
none	NN
of	IN
us	PRP
knows	VBZ
''	''
when	WRB
the	DT
A-body	VB
cars	NNS
will	MD
die	VB
.	.

He	PRP
said	VBD
he	PRP
believes	VBZ
GM	NNP
has	VBZ
plans	NNS
to	TO
keep	VB
building	NN
A-body	VB
cars	NNS
into	IN
the	DT
mid-1990s	CD
.	.

At	IN
Pontiac	NNP
,	,
however	RB
,	,
the	DT
Camaro-Firebird	NN
decision	NN
appears	VBZ
to	TO
erase	VB
UAW	NNP
hopes	VBZ
that	IN
GM	NNP
would	MD
reopen	VB
the	DT
shuttered	VBD
assembly	NN
plant	NN
that	IN
last	JJ
built	VBN
the	DT
plastic-bodied	JJ
,	,
two-seater	VB
Pontiac	NNP
Fiero	VB
model	NN
.	.

The	DT
Fiero	NN
plant	NN
was	VBD
viewed	VBN
as	RB
a	DT
model	NN
of	IN
union-management	VB
cooperation	NN
at	IN
GM	NNP
before	IN
slow	VB
sales	NNS
of	IN
the	DT
Fiero	VB
forced	VBD
the	DT
company	NN
to	TO
close	VB
the	DT
factory	NN
last	JJ
year	NN
.	.

Union	NNP
officials	NNS
have	VB
taken	VBN
a	DT
beating	VBG
politically	RB
as	RB
a	DT
result	NN
.	.

Dissident	JJ
UAW	NNP
members	NNS
have	VB
used	VBN
the	DT
Fiero	VB
plant	NN
as	RB
a	DT
symbol	NN
of	IN
labor-management	JJ
cooperation	NN
's	POS
failure	NN
.	.

Institut	NNP
Merieux	NNP
S.A.	NNP
of	IN
France	NNP
said	VBD
the	DT
Canadian	JJ
government	NN
raised	VBN
an	DT
obstacle	NN
to	TO
its	PRP$
proposed	VBN
acquisition	NN
of	IN
Connaught	NNP
BioSciences	NNPS
Inc.	NNP
for	IN
942	CD
million	CD
Canadian	JJ
dollars	NNS
(	(
US$	$
801.6	VB
million	CD
)	)
.	.

Merieux	NNP
said	VBD
the	DT
government	NN
's	POS
minister	NN
of	IN
industry	NN
,	,
science	NN
and	CC
technology	NN
told	VBD
it	PRP
that	IN
he	PRP
was	VBD
n't	RB
convinced	JJ
that	IN
the	DT
purchase	VB
is	VBZ
likely	JJ
to	TO
be	VB
of	IN
``	``
net	JJ
benefit	NN
''	''
to	TO
Canada	NNP
.	.

Canadian	JJ
investment	NN
rules	NNS
require	VB
that	IN
big	JJ
foreign	JJ
takeovers	NNS
meet	VB
that	IN
standard	NN
.	.

The	DT
French	JJ
company	NN
said	VBD
the	DT
government	NN
gave	VBD
it	PRP
30	CD
days	NNS
in	IN
which	WDT
to	TO
submit	VB
information	NN
to	TO
further	JJ
support	VB
its	PRP$
takeover	NN
plan	VB
.	.

Both	DT
Merieux	NNP
and	CC
Connaught	NNP
are	VBP
biotechnology	NN
research	NN
and	CC
vaccine	NN
manufacturing	VBG
concerns	NNS
.	.

The	DT
government	NN
's	POS
action	NN
was	VBD
unusual	JJ
.	.

Alan	NNP
Nymark	VB
,	,
executive	NN
vice	NN
president	NN
of	IN
Investment	NNP
Canada	NNP
,	,
which	WDT
oversees	VBZ
foreign	JJ
takeovers	NNS
,	,
said	VBD
it	PRP
marked	VBD
the	DT
first	JJ
time	NN
in	IN
its	PRP$
four-year	JJ
history	NN
that	IN
the	DT
agency	NN
has	VBZ
made	VBN
an	DT
adverse	JJ
net-benefit	VB
decision	NN
about	IN
the	DT
acquisition	NN
of	IN
a	DT
publicly	RB
traded	VBN
company	NN
.	.

He	PRP
said	VBD
it	PRP
has	VBZ
reached	VBN
the	DT
same	JJ
conclusions	NNS
about	IN
some	DT
attempts	NNS
to	TO
buy	VB
closely	RB
held	VBD
concerns	NNS
,	,
but	CC
eventually	RB
allowed	VBN
those	DT
acquisitions	NNS
to	TO
proceed	VB
.	.

``	``
This	DT
is	VBZ
n't	RB
a	DT
change	NN
in	IN
government	NN
policy	NN
;	:
this	DT
provision	NN
has	VBZ
been	VBN
used	VBN
before	IN
,	,
''	''
said	VBD
Jodi	VB
Redmond	NNP
,	,
press	NN
secretary	NN
for	IN
Harvie	VB
Andre	NNP
,	,
Canada	NNP
's	POS
minister	NN
of	IN
industry	NN
,	,
science	NN
and	CC
technology	NN
.	.

Mr.	NNP
Andre	NNP
issued	VBN
the	DT
ruling	NN
based	VBN
on	IN
a	DT
recommendation	NN
by	IN
Investment	NNP
Canada	NNP
.	.

Spokesmen	NNP
for	IN
Merieux	NNP
and	CC
Connaught	NNP
said	VBD
they	PRP
had	VBD
n't	RB
been	VBN
informed	VBN
of	IN
specific	JJ
areas	NNS
of	IN
concern	NN
by	IN
either	CC
the	DT
government	NN
or	CC
Investment	NNP
Canada	NNP
,	,
but	CC
added	VBD
they	PRP
hope	VBP
to	TO
have	VB
more	RBR
information	NN
early	RB
this	DT
week	NN
.	.

Investment	NNP
Canada	NNP
declined	VBD
to	TO
comment	NN
on	IN
the	DT
reasons	NNS
for	IN
the	DT
government	NN
decision	NN
.	.

Viren	IN
Mehta	NNP
,	,
a	DT
partner	NN
with	IN
Mehta	NNP
&	CC
Isaly	VB
,	,
a	DT
New	NNP
York-based	JJ
pharmaceutical	JJ
industry	NN
research	NN
firm	JJ
,	,
said	VBD
the	DT
government	NN
's	POS
ruling	NN
was	VBD
n't	RB
unexpected	JJ
.	.

``	``
This	DT
has	VBZ
become	VB
a	DT
very	RB
politicized	VBN
deal	NN
,	,
concerning	VBG
Canada	NNP
's	POS
only	RB
large	JJ
,	,
world-class	JJ
bio-research	VB
or	CC
pharmaceutical	JJ
company	NN
,	,
''	''
Mr.	NNP
Mehta	NNP
said	VBD
.	.

Mr.	NNP
Mehta	NNP
said	VBD
the	DT
move	NN
that	IN
could	MD
allow	VB
the	DT
transaction	NN
to	TO
go	VB
ahead	RB
as	RB
planned	VBD
could	MD
be	VB
an	DT
out-of-court	JJ
settlement	NN
of	IN
Connaught	NNP
's	POS
dispute	NN
with	IN
the	DT
University	NNP
of	IN
Toronto	NNP
.	.

The	DT
University	NNP
is	VBZ
seeking	VBG
to	TO
block	NN
the	DT
acquisition	NN
of	IN
Connaught	NNP
by	IN
foreign	JJ
interests	NNS
,	,
citing	VBG
concerns	NNS
about	IN
the	DT
amount	VBP
of	IN
research	NN
that	IN
would	MD
be	VB
done	VBN
in	IN
Canada	NNP
.	.

The	DT
university	NN
is	VBZ
considering	VBG
a	DT
settlement	NN
proposal	NN
made	VBN
by	IN
Connaught	NNP
.	.

While	IN
neither	DT
side	NN
will	MD
disclose	VB
its	PRP$
contents	NNS
,	,
Mr.	NNP
Mehta	NNP
expects	VBZ
it	PRP
to	TO
contain	VB
more	JJR
specific	JJ
guarantees	NNS
on	IN
research	NN
and	CC
development	NN
spending	NN
levels	NNS
in	IN
Canada	NNP
than	IN
Merieux	NNP
offered	VBD
to	TO
Investment	NNP
Canada	NNP
.	.

Some	DT
analysts	NNS
,	,
such	JJ
as	RB
Murray	NNP
Grossner	VB
of	IN
Toronto-based	JJ
Richardson	NNP
Greenshields	NNP
Inc.	NNP
,	,
believe	VBP
the	DT
government	NN
ruling	NN
leaves	VBZ
the	DT
door	NN
open	JJ
for	IN
other	JJ
bidders	NNS
,	,
such	JJ
as	RB
Switzerland	NNP
's	POS
Ciba-Geigy	NNP
and	CC
Chiron	NNP
Corp.	NNP
of	IN
Emeryville	NNP
,	,
Calif	NNP
.	.

Officials	NNS
for	IN
the	DT
two	CD
concerns	NNS
,	,
which	WDT
are	VBP
bidding	NN
C$	$
30	CD
a	DT
share	NN
for	IN
Connaught	NNP
,	,
could	MD
n't	RB
be	VB
reached	VBN
for	IN
comment	NN
.	.

French	JJ
state-owned	JJ
Rhone-Poulenc	NNP
S.A.	NNP
holds	VBZ
51	CD
%	NN
of	IN
Merieux	NNP
.	.

Weatherford	IN
International	NNP
Inc.	NNP
said	VBD
it	PRP
canceled	VBN
plans	NNS
for	IN
a	DT
preferred-stock	JJ
swap	VB
but	CC
may	MD
resume	VB
payment	NN
of	IN
dividends	NNS
on	IN
the	DT
stock	NN
,	,
and	CC
added	VBD
that	IN
it	PRP
expects	VBZ
to	TO
publicly	RB
offer	NN
about	IN
10	CD
million	CD
common	JJ
shares	NNS
.	.

The	DT
company	NN
said	VBD
it	PRP
planned	VBD
to	TO
offer	NN
an	DT
undetermined	JJ
number	NN
of	IN
common	JJ
shares	NNS
in	IN
exchange	NN
for	IN
the	DT
585,000	CD
shares	NNS
of	IN
its	PRP$
preferred	JJ
stock	NN
outstanding	JJ
.	.

The	DT
exchange	NN
ratio	NN
was	VBD
never	RB
established	VBD
.	.

Weatherford	IN
said	VBD
market	NN
conditions	NNS
led	VBN
to	TO
the	DT
cancellation	NN
of	IN
the	DT
planned	VBD
exchange	NN
.	.

The	DT
energy-services	NN
concern	NN
said	VBD
,	,
however	RB
,	,
that	IN
in	IN
January	NNP
1990	CD
,	,
it	PRP
may	MD
resume	VB
payments	NNS
of	IN
dividends	NNS
on	IN
the	DT
preferred	JJ
stock	NN
.	.

Weatherford	IN
suspended	VBN
its	PRP$
preferred-dividend	VB
payment	NN
in	IN
October	NNP
1985	CD
and	CC
said	VBD
it	PRP
has	VBZ
n't	RB
any	DT
plans	NNS
to	TO
catch	VB
up	RP
on	IN
dividends	NNS
in	IN
arrears	NNS
about	IN
$	$
6	CD
million	CD
,	,
but	CC
will	MD
do	VB
so	RB
some	DT
time	NN
in	IN
the	DT
future	NN
.	.

Additionally	RB
,	,
the	DT
company	NN
said	VBD
it	PRP
filed	VBD
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
for	IN
the	DT
proposed	VBN
offering	VBG
of	IN
10	CD
million	CD
shares	NNS
of	IN
common	JJ
stock	NN
,	,
expected	VBN
to	TO
be	VB
offered	VBD
in	IN
November	NNP
.	.

The	DT
company	NN
said	VBD
Salomon	NNP
Brothers	NNPS
Inc.	NNP
and	CC
Howard	NNP
,	,
Weil	NNP
,	,
Labouisse	VB
,	,
Friedrichs	VB
Inc.	NNP
,	,
underwriters	NNS
for	IN
the	DT
offering	VBG
,	,
were	VBD
granted	VBN
an	DT
option	NN
to	TO
buy	VB
as	RB
much	JJ
as	RB
an	DT
additional	JJ
1.5	CD
million	CD
shares	NNS
to	TO
cover	VB
over-allotments	VB
.	.

Proceeds	NNS
will	MD
be	VB
used	VBN
to	TO
eliminate	VB
and	CC
restructure	VB
bank	NN
debt	NN
.	.

Weatherford	IN
currently	RB
has	VBZ
approximately	RB
11.1	CD
million	CD
common	JJ
shares	NNS
outstanding	JJ
.	.

Earnings	NNS
for	IN
most	RBS
of	IN
the	DT
nation	NN
's	POS
major	JJ
pharmaceutical	JJ
makers	NNS
are	VBP
believed	VBN
to	TO
have	VB
moved	VBD
ahead	RB
briskly	RB
in	IN
the	DT
third	JJ
quarter	NN
,	,
as	RB
companies	NNS
with	IN
newer	JJR
,	,
big-selling	JJ
prescription	NN
drugs	NNS
fared	VBD
especially	RB
well	RB
.	.

For	IN
the	DT
third	JJ
consecutive	JJ
quarter	NN
,	,
however	RB
,	,
most	RBS
of	IN
the	DT
companies	NNS
'	POS
revenues	NNS
were	VBD
battered	VBN
by	IN
adverse	JJ
foreign-currency	NN
translations	NNS
as	IN
a	DT
result	NN
of	IN
the	DT
strong	JJ
dollar	NN
abroad	RB
.	.

Analysts	NNS
said	VBD
that	IN
Merck	NNP
&	CC
Co.	NNP
,	,
Eli	NNP
Lilly	NNP
&	CC
Co.	NNP
,	,
Warner-Lambert	NNP
Co.	NNP
and	CC
the	DT
Squibb	NNP
Corp.	NNP
unit	NN
of	IN
Bristol-Myers	NNP
Squibb	NNP
Co.	NNP
all	DT
benefited	VBD
from	IN
strong	JJ
sales	NNS
of	IN
relatively	RB
new	JJ
,	,
higher-priced	JJ
medicines	NNS
that	IN
provide	VB
wide	JJ
profit	NN
margins	NNS
.	.

Less	RBR
robust	JJ
earnings	NNS
at	IN
Pfizer	NNP
Inc.	NNP
and	CC
Upjohn	NNP
Co.	NNP
were	VBD
attributed	VBN
to	TO
those	DT
companies	NNS
'	POS
older	JJR
products	NNS
,	,
many	JJ
of	IN
which	WDT
face	NN
stiffening	VB
competition	NN
from	IN
generic	JJ
drugs	NNS
and	CC
other	JJ
medicines	NNS
.	.

Joseph	NNP
Riccardo	VB
,	,
an	DT
analyst	NN
with	IN
Bear	NNP
,	,
Stearns	NNP
&	CC
Co.	NNP
,	,
said	VBD
that	IN
over	IN
the	DT
past	IN
few	JJ
years	NNS
most	RBS
drug	NN
makers	NNS
have	VB
shed	VB
their	PRP$
slow-growing	JJ
businesses	NNS
and	CC
instituted	VBN
other	JJ
cost	NN
savings	NNS
,	,
such	JJ
as	RB
consolidating	VBG
manufacturing	VBG
plants	NNS
and	CC
administrative	JJ
staffs	NNS
.	.

As	IN
a	DT
result	NN
,	,
``	``
major	JJ
new	JJ
products	NNS
are	VBP
having	VBG
significant	JJ
impact	NN
,	,
even	RB
on	IN
a	DT
company	NN
with	IN
very	RB
large	JJ
revenues	NNS
,	,
''	''
Mr.	NNP
Riccardo	VB
said	VBD
.	.

Analysts	NNS
said	VBD
profit	NN
for	IN
the	DT
dozen	NN
or	CC
so	RB
big	JJ
drug	NN
makers	NNS
,	,
as	RB
a	DT
group	NN
,	,
is	VBZ
estimated	VBD
to	TO
have	VB
climbed	VBD
between	IN
11	CD
%	NN
and	CC
14	CD
%	NN
.	.

While	IN
that	DT
's	VBZ
not	RB
spectacular	JJ
,	,
Neil	NNP
Sweig	NNP
,	,
an	DT
analyst	NN
with	IN
Prudential	NNP
Bache	NNP
,	,
said	VBD
that	IN
the	DT
rate	NN
of	IN
growth	NN
will	MD
``	``
look	VB
especially	RB
good	JJ
as	RB
compared	VBN
to	TO
other	JJ
companies	NNS
if	IN
the	DT
economy	NN
turns	VBZ
downward	RB
.	.
''	''

Mr.	NNP
Sweig	VB
estimated	VBD
that	IN
Merck	NNP
's	POS
profit	NN
for	IN
the	DT
quarter	NN
rose	VBD
by	IN
about	IN
22	CD
%	NN
,	,
propelled	VBD
by	IN
sales	NNS
of	IN
its	PRP$
line-up	NN
of	IN
fast-growing	JJ
prescription	NN
drugs	NNS
,	,
including	VBG
its	PRP$
anti-cholesterol	VB
drug	NN
,	,
Mevacor	NNP
;	:
a	DT
high	JJ
blood	NN
pressure	NN
medicine	NN
,	,
Vasotec	VB
;	:
Primaxin	VB
,	,
an	DT
antibiotic	JJ
,	,
and	CC
Pepcid	VB
,	,
an	DT
anti-ulcer	VB
medication	NN
.	.

Profit	NN
climbed	VBD
even	RB
though	IN
Merck	NNP
's	POS
sales	NNS
were	VBD
reduced	VBN
by	IN
``	``
one	CD
to	TO
three	CD
percentage	NN
points	NNS
''	''
as	RB
a	DT
result	NN
of	IN
the	DT
strong	JJ
dollar	NN
,	,
Mr.	NNP
Sweig	VB
said	VBD
.	.

In	IN
the	DT
third	JJ
quarter	NN
of	IN
1988	CD
,	,
Merck	NNP
earned	VBN
$	$
311.8	VB
million	CD
,	,
or	CC
79	CD
cents	NNS
a	DT
share	NN
.	.

In	IN
Rahway	NNP
,	,
N.J.	NNP
,	,
a	DT
Merck	NNP
spokesman	NN
said	VBD
the	DT
company	NN
does	VBZ
n't	RB
make	VBP
earnings	NNS
projections	NNS
.	.

Mr.	NNP
Sweig	VB
said	VBD
he	PRP
estimated	VBD
that	IN
Lilly	NNP
's	POS
earnings	NNS
for	IN
the	DT
quarter	NN
jumped	VBD
about	IN
20	CD
%	NN
,	,
largely	RB
because	IN
of	IN
the	DT
performance	NN
of	IN
its	PRP$
new	JJ
anti-depressant	NN
Prozac	NNP
.	.

The	DT
drug	NN
,	,
introduced	VBN
last	JJ
year	NN
,	,
is	VBZ
expected	VBN
to	TO
generate	VB
sales	NNS
of	IN
about	IN
$	$
300	CD
million	CD
this	DT
year	NN
.	.

``	``
It	NNP
's	POS
turning	VBG
out	IN
to	TO
be	VB
a	DT
real	JJ
blockbuster	NN
,	,
''	''
Mr.	NNP
Sweig	VB
said	VBD
.	.

In	IN
last	JJ
year	NN
's	POS
third	JJ
quarter	NN
,	,
Lilly	NNP
earned	VBN
$	$
171.4	VB
million	CD
,	,
or	CC
$	$
1.20	CD
a	DT
share	NN
.	.

In	IN
Indianapolis	NNP
,	,
Lilly	NNP
declined	VBD
comment	NN
.	.

Several	JJ
analysts	NNS
said	VBD
they	PRP
expected	VBN
Warner-Lambert	NNP
's	POS
profit	NN
also	RB
to	TO
increase	NN
by	IN
more	RBR
than	IN
20	CD
%	NN
from	IN
$	$
87.7	VB
million	CD
,	,
or	CC
$	$
1.25	CD
a	DT
share	NN
,	,
it	PRP
reported	VBN
in	IN
the	DT
like	IN
period	NN
last	JJ
year	NN
.	.

The	DT
company	NN
is	VBZ
praised	VBD
by	IN
analysts	NNS
for	IN
sharply	RB
lowering	VBG
its	PRP$
costs	NNS
in	IN
recent	JJ
years	NNS
and	CC
shedding	VBG
numerous	JJ
companies	NNS
with	IN
low	JJ
profit	NN
margins	NNS
.	.

The	DT
company	NN
's	POS
lean	JJ
operation	NN
,	,
analysts	NNS
said	VBD
,	,
allowed	VBN
sharp-rising	VB
sales	NNS
from	IN
its	PRP$
cholesterol	NN
drug	NN
,	,
Lopid	NNP
,	,
to	TO
power	NN
earnings	NNS
growth	NN
.	.

Lopid	NNP
sales	NNS
are	VBP
expected	VBN
to	TO
be	VB
about	IN
$	$
300	CD
million	CD
this	DT
year	NN
,	,
up	RP
from	IN
$	$
190	CD
million	CD
in	IN
1988	CD
.	.

In	IN
Morris	NNP
Plains	NNPS
,	,
N.J.	NNP
,	,
a	DT
spokesman	NN
for	IN
the	DT
company	NN
said	VBD
the	DT
analysts	NNS
'	POS
projections	NNS
are	VBP
``	``
in	IN
the	DT
ballpark	NN
.	.
''	''

Squibb	NNP
's	POS
profit	NN
,	,
estimated	VBD
by	IN
analysts	NNS
to	TO
be	VB
about	IN
18	CD
%	NN
above	IN
the	DT
$	$
123	CD
million	CD
,	,
or	CC
$	$
1.25	CD
a	DT
share	NN
,	,
it	PRP
earned	VBN
in	IN
the	DT
third	JJ
quarter	NN
of	IN
1988	CD
,	,
was	VBD
the	DT
result	NN
of	IN
especially	RB
strong	JJ
sales	NNS
of	IN
its	PRP$
Capoten	VB
drug	NN
for	IN
treating	VBG
high	JJ
blood	NN
pressure	NN
and	CC
other	JJ
heart	NN
disease	NN
.	.

The	DT
company	NN
was	VBD
officially	RB
merged	VBN
with	IN
Bristol-Myers	NNP
Co.	NNP
earlier	JJR
this	DT
month	NN
.	.

Bristol-Myers	NNP
declined	VBD
to	TO
comment	NN
.	.

Mr.	NNP
Riccardo	VB
of	IN
Bear	NNP
Stearns	NNP
said	VBD
that	IN
Schering-Plough	NNP
Corp.	NNP
's	POS
expected	VBN
profit	NN
rise	VB
of	IN
about	IN
18	CD
%	NN
to	TO
20	CD
%	NN
,	,
and	CC
Bristol-Meyers	VB
's	POS
expected	VBN
profit	NN
increase	NN
of	IN
about	IN
13	CD
%	NN
are	VBP
largely	RB
because	IN
``	``
those	DT
companies	NNS
are	VBP
really	RB
managed	VBD
well	RB
.	.
''	''

ScheringPlough	IN
earned	VBN
$	$
94.4	VB
million	CD
,	,
or	CC
84	CD
cents	NNS
a	DT
share	NN
,	,
while	IN
Bristol-Myers	NNP
earned	VBN
$	$
232.3	CD
million	CD
,	,
or	CC
81	CD
cents	NNS
a	DT
share	NN
,	,
in	IN
the	DT
like	IN
period	NN
a	DT
year	NN
earlier	JJR
.	.

In	IN
Madison	NNP
,	,
N.J.	NNP
,	,
a	DT
spokesman	NN
for	IN
Schering-Plough	NNP
said	VBD
the	DT
company	NN
has	VBZ
``	``
no	DT
problems	NNS
''	''
with	IN
the	DT
average	NN
estimate	NN
by	IN
a	DT
analysts	NNS
that	IN
third-quarter	NN
earnings	NNS
per	IN
share	NN
rose	VBD
by	IN
about	IN
19	CD
%	NN
,	,
to	TO
$	$
1	CD
.	.

The	DT
company	NN
expects	VBZ
to	TO
achieve	VB
the	DT
20	CD
%	NN
increase	NN
in	IN
full-year	JJ
earnings	NNS
per	IN
share	NN
,	,
as	RB
it	PRP
projected	VBN
in	IN
the	DT
spring	NN
,	,
the	DT
spokesman	NN
said	VBD
.	.

Meanwhile	RB
,	,
analysts	NNS
said	VBD
Pfizer	NNP
's	POS
recent	JJ
string	NN
of	IN
lackluster	NN
quarterly	NN
performances	NNS
continued	VBD
,	,
as	RB
earnings	NNS
in	IN
the	DT
quarter	NN
were	VBD
expected	VBN
to	TO
decline	NN
by	IN
about	IN
5	CD
%	NN
.	.

Sales	NNS
of	IN
Pfizer	NNP
's	POS
important	JJ
drugs	NNS
,	,
Feldene	VB
for	IN
treating	VBG
arthritis	NN
,	,
and	CC
Procardia	NNP
,	,
a	DT
heart	NN
medicine	NN
,	,
have	VB
shrunk	VBN
because	IN
of	IN
increased	VBN
competition	NN
.	.

``	``
The	DT
(	(
strong	JJ
)	)
dollar	NN
hurt	VBN
Pfizer	NNP
a	DT
lot	NN
,	,
too	RB
,	,
''	''
Mr.	NNP
Sweig	VB
said	VBD
.	.

In	IN
the	DT
third	JJ
quarter	NN
last	JJ
year	NN
,	,
Pfizer	NNP
earned	VBN
$	$
216.8	VB
million	CD
,	,
or	CC
$	$
1.29	CD
a	DT
share	NN
.	.

In	IN
New	NNP
York	NNP
,	,
the	DT
company	NN
declined	VBD
comment	NN
.	.

Analysts	NNS
said	VBD
they	PRP
expected	VBN
Upjohn	NNP
's	POS
profit	NN
to	TO
be	VB
flat	JJ
or	CC
rise	VB
by	IN
only	RB
about	IN
2	LS
%	NN
to	TO
4	CD
%	NN
as	RB
compared	VBN
with	IN
$	$
89.6	CD
million	CD
,	,
or	CC
49	CD
cents	NNS
a	DT
share	NN
,	,
it	PRP
earned	VBN
a	DT
year	NN
ago	IN
.	.

Upjohn	NNP
's	POS
biggest-selling	JJ
drugs	NNS
are	VBP
Xanax	VB
,	,
a	DT
tranquilizer	VB
,	,
and	CC
Halcion	VB
,	,
a	DT
sedative	VB
.	.

Sales	NNS
of	IN
both	DT
drugs	NNS
have	VB
been	VBN
hurt	VBN
by	IN
new	JJ
state	NN
laws	NNS
restricting	VBG
the	DT
prescriptions	NNS
of	IN
certain	JJ
tranquilizing	VB
medicines	NNS
and	CC
adverse	JJ
publicity	NN
about	IN
the	DT
excessive	JJ
use	VBP
of	IN
the	DT
drugs	NNS
.	.

Also	RB
,	,
the	DT
company	NN
's	POS
hair-growing	VB
drug	NN
,	,
Rogaine	VB
,	,
is	VBZ
selling	VBG
well	RB
--	:
at	IN
about	IN
$	$
125	CD
million	CD
for	IN
the	DT
year	NN
,	,
but	CC
the	DT
company	NN
's	POS
profit	NN
from	IN
the	DT
drug	NN
has	VBZ
been	VBN
reduced	VBN
by	IN
Upjohn	NNP
's	POS
expensive	JJ
print	NN
and	CC
television	NN
campaigns	NNS
for	IN
advertising	NN
,	,
analysts	NNS
said	VBD
.	.

In	IN
Kalamazoo	NNP
,	,
Mich.	NNP
,	,
Upjohn	NNP
declined	VBD
comment	NN
.	.

Amid	IN
a	DT
crowd	NN
of	IN
crashing	VBG
stocks	NNS
,	,
Relational	VB
Technology	NNP
Inc.	NNP
's	POS
stock	NN
fell	VBD
particularly	RB
hard	RB
Friday	NNP
,	,
dropping	VBG
23	CD
%	NN
because	IN
its	PRP$
problems	NNS
were	VBD
compounded	VBN
by	IN
disclosure	NN
of	IN
an	DT
unexpected	JJ
loss	NN
for	IN
its	PRP$
fiscal	JJ
first	JJ
quarter	NN
.	.

The	DT
database	NN
software	NN
company	NN
said	VBD
it	PRP
expects	VBZ
a	DT
$	$
2	LS
million	CD
net	JJ
loss	NN
for	IN
the	DT
fiscal	JJ
first	JJ
quarter	NN
ended	VBD
Sept.	NNP
30	CD
.	.

It	NNP
said	VBD
analysts	NNS
had	VBD
been	VBN
expecting	VBG
a	DT
small	JJ
profit	NN
for	IN
the	DT
period	NN
.	.

Revenue	NN
is	VBZ
expected	VBN
to	TO
be	VB
``	``
up	RP
modestly	RB
''	''
from	IN
the	DT
$	$
26.5	CD
million	CD
reported	VBN
a	DT
year	NN
ago	IN
.	.

Relational	IN
Technology	NNP
reported	VBN
net	JJ
income	NN
of	IN
$	$
1.5	CD
million	CD
,	,
or	CC
12	CD
cents	NNS
a	DT
share	NN
,	,
in	IN
the	DT
year-earlier	JJ
period	NN
.	.

``	``
While	IN
our	PRP$
international	JJ
operations	NNS
showed	VBD
strong	JJ
growth	NN
,	,
our	PRP$
domestic	JJ
business	NN
was	VBD
substantially	RB
below	IN
expectations	NNS
,	,
''	''
said	VBD
Paul	NNP
Newton	NNP
,	,
president	NN
and	CC
chief	NN
executive	NN
officer	NN
.	.

A	DT
spokesman	NN
said	VBD
the	DT
company	NN
's	POS
first	JJ
quarter	NN
is	VBZ
historically	RB
soft	JJ
,	,
and	CC
computer	NN
companies	NNS
in	IN
general	NN
are	VBP
experiencing	VBG
slower	JJR
sales	NNS
.	.

Mr.	NNP
Newton	NNP
said	VBD
he	PRP
accepted	VBD
the	DT
resignation	NN
of	IN
Thomas	NNP
Wilson	NNP
,	,
vice	NN
president	NN
of	IN
corporate	JJ
sales	NNS
,	,
and	CC
that	IN
his	PRP$
marketing	NN
responsibilities	NNS
have	VB
been	VBN
reassigned	VBN
.	.

The	DT
company	NN
said	VBD
Mr.	NNP
Wilson	NNP
's	POS
resignation	NN
was	VBD
n't	RB
related	VBN
to	TO
the	DT
sales	NNS
shortfall	NN
.	.

Relational	IN
Technology	NNP
went	VBD
public	JJ
in	IN
May	NNP
1988	CD
at	IN
$	$
14	CD
a	DT
share	NN
.	.

It	NNP
fell	VBD
$	$
1.875	CD
a	DT
share	NN
Friday	NNP
,	,
to	TO
$	$
6.25	CD
,	,
a	DT
new	JJ
low	JJ
,	,
in	IN
over-the-counter	NN
trading	NN
.	.

Its	PRP$
high	JJ
for	IN
the	DT
past	IN
year	NN
was	VBD
$	$
16.375	CD
a	DT
share	NN
.	.

In	IN
the	DT
previous	JJ
quarter	NN
,	,
the	DT
company	NN
earned	VBN
$	$
4.5	CD
million	CD
,	,
or	CC
37	CD
cents	NNS
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
47.2	VB
million	CD
.	.

The	DT
Bronx	NNP
has	VBZ
a	DT
wonderful	JJ
botanical	VB
garden	VB
,	,
a	DT
great	JJ
zoo	NN
,	,
its	PRP$
own	JJ
charming	JJ
Little	JJ
Italy	NNP
(	(
on	IN
Arthur	NNP
Avenue	NNP
)	)
and	CC
,	,
of	IN
course	NN
,	,
the	DT
Yankees	NNPS
.	.

However	RB
,	,
most	RBS
people	NNS
,	,
having	VBG
been	VBN
subjected	VBN
to	TO
news	NN
footage	NN
of	IN
the	DT
devastated	VBD
South	NNP
Bronx	NNP
,	,
look	VB
at	IN
the	DT
borough	NN
the	DT
way	NN
Tom	NNP
Wolfe	NNP
's	POS
Sherman	NNP
McCoy	NNP
did	VBD
in	IN
``	``
Bonfire	NN
of	IN
the	DT
Vanities	NNS
''	''
--	:
as	RB
a	DT
wrong	JJ
turn	VBP
into	IN
hell	NN
.	.

But	CC
Laura	NNP
Cunningham	NNP
's	POS
Bronx	NNP
,	,
her	PRP$
childhood	NN
Bronx	NNP
of	IN
the	DT
'50s	VB
,	,
is	VBZ
something	NN
else	RB
altogether	RB
.	.

In	IN
a	DT
lovely	JJ
,	,
novelistic	JJ
memoir	VB
,	,
``	``
Sleeping	VBG
Arrangements	VB
''	''
(	(
Knopf	NNP
,	,
195	CD
pages	NNS
,	,
$	$
18.95	CD
)	)
,	,
she	PRP
remembers	VBZ
an	DT
exotic	JJ
playground	NN
,	,
peopled	VB
mainly	RB
by	IN
Jewish	NNP
eccentrics	VB
and	CC
the	DT
occasional	JJ
Catholic	NNP
(	(
real	JJ
oddballs	VB
like	IN
her	PRP$
sexpot	VB
friend	NN
,	,
the	DT
hell-kitten	VB
Diana	NNP
,	,
age	NN
five	CD
)	)
.	.

Ms.	NNP
Cunningham	NNP
,	,
a	DT
novelist	NN
and	CC
playwright	NN
,	,
has	VBZ
a	DT
vivid	JJ
and	CC
dramatically	RB
outsized	JJ
sense	NN
of	IN
recall	VB
.	.

She	PRP
transforms	VBZ
her	PRP$
``	``
Bronx	NNP
of	IN
the	DT
emotions	NNS
,	,
a	DT
place	NN
where	WRB
the	DT
flats	NNS
of	IN
mediocrity	VB
are	VBP
only	RB
relieved	VBN
by	IN
steep	JJ
descents	VB
into	IN
hysteria	NN
''	''
into	IN
the	DT
``	``
Babylonian	VB
Bronx	NNP
,	,
''	''
a	DT
world	NN
simmering	VBG
with	IN
sex	NN
and	CC
death	NN
and	CC
intrigue	NN
.	.

In	IN
the	DT
Babylonian	VB
Bronx	NNP
,	,
Jewish	NNP
working-class	JJ
people	NNS
lived	VBD
in	IN
drab	JJ
,	,
Soviet-style	JJ
buildings	NNS
``	``
glamorized	VB
''	''
with	IN
names	NNS
like	IN
AnaMor	VB
Towers	NNP
(	(
after	IN
owners	NNS
Anna	NNP
and	CC
Morris	NNP
Snezak	VB
)	)
,	,
whose	WP$
lobbies	NNS
and	CC
hallways	VB
were	VBD
decorated	VBN
with	IN
murals	NNS
of	IN
ancient	JJ
Syrians	VB
and	CC
Greeks	NNPS
,	,
friezes	VB
of	IN
Pompeii	VB
.	.

For	IN
Ms.	NNP
Cunningham	NNP
the	DT
architectural	JJ
discombobulation	NN
matched	VBN
the	DT
discrepancy	NN
she	PRP
felt	VBD
living	VBG
in	IN
the	DT
AnaMor	VB
Towers	NNP
as	RB
a	DT
little	RB
girl	NN
:	:
``	``
...	:
outwardly	RB
ordinary	JJ
,	,
inwardly	VB
ornate	VB
,	,
owing	VB
all	DT
inspiration	NN
to	TO
heathen	VB
cultures	NNS
.	.
''	''

Sharp-witted	IN
and	CC
funny	JJ
but	CC
never	RB
mean	VB
,	,
she	PRP
's	POS
a	DT
memorialist	VB
a	DT
bit	NN
like	IN
Truman	VB
Capote	VB
,	,
if	IN
he	PRP
'd	MD
been	VBN
Jewish	NNP
and	CC
female	NN
and	CC
less	RBR
bitchy	VB
.	.

Little	JJ
Lily	NNP
,	,
as	RB
Ms.	NNP
Cunningham	NNP
calls	VBZ
herself	PRP
in	IN
the	DT
book	NN
,	,
really	RB
was	VBD
n't	RB
ordinary	JJ
.	.

She	PRP
was	VBD
raised	VBN
,	,
for	IN
the	DT
first	JJ
eight	CD
years	NNS
,	,
by	IN
her	PRP$
mother	NN
,	,
Rosie	VB
,	,
whom	WP
she	PRP
remembers	VBZ
as	RB
a	DT
loving	VB
liar	NN
,	,
who	WP
realigned	VB
history	NN
to	TO
explain	VB
why	WRB
Lily	NNP
's	POS
father	NN
did	VBD
n't	RB
live	VB
with	IN
them	PRP
.	.

Rosie	IN
reinvented	VBD
this	DT
man	NN
,	,
who	WP
may	MD
or	CC
may	MD
not	RB
have	VB
known	VBN
about	IN
his	PRP$
child	NN
,	,
as	RB
a	DT
war	NN
hero	NN
for	IN
Lily	NNP
's	POS
benefit	NN
.	.

Rosie	IN
died	VBN
young	JJ
and	CC
Lily	NNP
has	VBZ
remembered	VBD
her	PRP$
as	RB
a	DT
romantic	JJ
figure	NN
,	,
who	WP
did	VBD
n't	RB
interfere	VB
much	JJ
with	IN
her	PRP$
child	NN
's	POS
education	NN
on	IN
the	DT
streets	NNS
.	.

The	DT
games	NNS
Bronx	NNP
children	NNS
played	VBD
(	(
holding	VBG
kids	NNS
down	IN
and	CC
stripping	VBG
them	PRP
,	,
for	IN
example	NN
)	)
seem	VBP
tame	JJ
by	IN
today	NN
's	POS
crack	VB
standards	NNS
,	,
but	CC
Ms.	NNP
Cunningham	NNP
makes	VBZ
it	PRP
all	DT
sound	NN
like	IN
a	DT
great	JJ
adventure	NN
.	.

``	``
Without	IN
official	NN
knowledge	NN
of	IN
sex	NN
or	CC
death	NN
,	,
we	PRP
flirted	VB
with	IN
both	DT
,	,
''	''
she	PRP
writes	VBZ
.	.

She	PRP
analyzed	VBD
families	NNS
by	IN
their	PRP$
sleeping	NN
arrangements	NNS
.	.

Her	PRP$
friend	NN
Susan	NNP
,	,
whose	WP$
parents	NNS
kept	VBN
reminding	VBG
her	PRP$
she	PRP
was	VBD
unwanted	JJ
,	,
slept	VBD
on	IN
a	DT
narrow	JJ
bed	NN
wedged	VBN
into	IN
her	PRP$
parents	NNS
'	POS
bedroom	NN
,	,
as	RB
though	IN
she	PRP
were	VBD
a	DT
temporary	JJ
visitor	NN
.	.

Her	PRP$
friend	NN
Diana	NNP
's	POS
father	NN
was	VBD
a	DT
professional	JJ
thief	NN
;	:
they	PRP
did	VBD
n't	RB
seem	VBP
to	TO
have	VB
any	DT
bedrooms	VB
at	IN
all	DT
.	.

Maybe	RB
Lily	NNP
became	VBD
so	RB
obsessed	VB
with	IN
where	WRB
people	NNS
slept	VBD
and	CC
how	WRB
because	IN
her	PRP$
own	JJ
arrangements	NNS
kept	VBN
shifting	VBG
.	.

When	WRB
Rosie	VB
died	VBD
,	,
her	PRP$
uncles	VB
moved	VBD
in	IN
--	:
and	CC
let	VBN
her	PRP$
make	VBP
the	DT
sleeping	NN
and	CC
other	JJ
household	NN
arrangements	NNS
.	.

They	PRP
painted	VBD
the	DT
apartment	NN
orange	NN
,	,
pink	JJ
and	CC
white	JJ
,	,
according	VBG
to	TO
her	PRP$
instructions	NNS
.	.

With	IN
loving	NNP
detail	NN
she	PRP
recalls	VBZ
her	PRP$
Uncle	NNP
Gabe	VB
,	,
an	DT
Orthodox	NNP
Jew	VB
and	CC
song	NN
lyricist	VB
(	(
who	WP
rhymed	VB
river	NN
with	IN
liver	NN
in	IN
a	DT
love	VB
song	NN
)	)
;	:
and	CC
Uncle	NNP
Len	NNP
,	,
a	DT
mysterious	JJ
part-time	JJ
investigator	NN
who	WP
looked	VBD
like	IN
Lincoln	NNP
and	CC
carried	VBD
a	DT
change	NN
of	IN
clothing	NN
in	IN
a	DT
Manila	NNP
envelope	NN
,	,
like	IN
an	DT
``	``
undercover	JJ
President	NNP
on	IN
a	DT
good-will	NN
mission	NN
.	.
''	''

They	PRP
came	VBD
by	IN
their	PRP$
strangeness	VB
honestly	RB
.	.

Lily	NNP
's	POS
grandmother	NN
,	,
no	DT
cookie	NN
baker	VB
,	,
excised	VB
the	DT
heads	VBZ
of	IN
disliked	VB
relatives	NNS
from	IN
the	DT
family	NN
album	NN
,	,
and	CC
lugged	VB
around	IN
her	PRP$
perennial	JJ
work-in-progress	VB
,	,
``	``
Philosophy	VB
for	IN
Women	NNP
.	.
''	''

The	DT
book	NN
loses	VBZ
some	DT
momentum	NN
toward	IN
the	DT
end	NN
,	,
when	WRB
Lily	NNP
becomes	VBZ
more	RBR
preoccupied	VBN
with	IN
dating	VBG
boys	NNS
and	CC
less	RBR
with	IN
her	PRP$
delightfully	VB
weird	JJ
family	NN
.	.

For	IN
the	DT
most	RBS
part	NN
,	,
though	IN
,	,
there	EX
's	VBZ
much	RB
pleasure	NN
in	IN
her	PRP$
saucy	VBD
,	,
poignant	JJ
probe	NN
into	IN
the	DT
mysteries	NNS
of	IN
the	DT
Babylonian	VB
Bronx	NNP
.	.

The	DT
Bronx	NNP
also	RB
figures	NNS
in	IN
Bruce	NNP
Jay	NNP
Friedman	NNP
's	POS
latest	JJS
novel	JJ
,	,
which	WDT
flashes	NNS
back	RB
to	TO
the	DT
New	NNP
York	NNP
of	IN
the	DT
'50s	VB
.	.

But	CC
both	DT
the	DT
past	IN
and	CC
present	JJ
worlds	NNS
of	IN
``	``
The	DT
Current	JJ
Climate	NN
''	''
(	(
Atlantic	NNP
Monthly	JJ
Press	NNP
,	,
200	CD
pages	NNS
,	,
$	$
18.95	CD
)	)
feel	VBP
cramped	VB
and	CC
static	JJ
.	.

For	IN
his	PRP$
sixth	JJ
novel	NN
,	,
Mr.	NNP
Friedman	NNP
tried	VBD
to	TO
resuscitate	VB
the	DT
protagonist	NN
of	IN
his	PRP$
1972	CD
work	NN
,	,
``	``
About	IN
Harry	NNP
Towns	NNP
.	.
''	''

Harry	NNP
is	VBZ
now	RB
a	DT
57-year-old	JJ
writer	NN
,	,
whose	WP$
continuing	VBG
flirtation	VB
with	IN
drugs	NNS
and	CC
marginal	JJ
types	NNS
in	IN
Hollywood	NNP
and	CC
New	NNP
York	NNP
seems	VBZ
quaintly	VB
out-of-synch	VB
.	.

Harry	NNP
fondly	RB
remembers	VBZ
the	DT
``	``
old	JJ
''	''
days	NNS
of	IN
the	DT
early	RB
'70s	CD
,	,
when	WRB
people	NNS
like	IN
his	PRP$
friend	NN
Travis	NNP
would	MD
take	VB
a	DT
psychiatrist	VB
on	IN
a	DT
date	NN
to	TO
analyze	VBP
what	WP
Travis	NNP
was	VBD
doing	VBG
wrong	JJ
.	.

``	``
An	DT
L.A.	NNP
solution	NN
,	,
''	''
explains	VBZ
Mr.	NNP
Friedman	NNP
.	.

Line	NNP
by	IN
line	NN
Mr.	NNP
Friedman	NNP
's	POS
weary	JJ
cynicism	NN
can	MD
be	VB
amusing	JJ
,	,
especially	RB
when	WRB
he	PRP
's	POS
riffing	VB
on	IN
the	DT
Hollywood	NNP
social	JJ
scheme	NN
--	:
the	DT
way	NN
people	NNS
size	NN
each	DT
other	JJ
up	RP
,	,
immediately	RB
canceling	VB
the	DT
desperate	JJ
ones	NNS
who	WP
merely	RB
almost	RB
made	VBN
it	PRP
.	.

Harry	NNP
has	VBZ
avoided	VBN
all	DT
that	IN
by	IN
living	VBG
in	IN
a	DT
Long	NNP
Island	NNP
suburb	NN
with	IN
his	PRP$
wife	NN
,	,
who	WP
's	POS
so	RB
addicted	VBN
to	TO
soap	NN
operas	VB
and	CC
mystery	NN
novels	NNS
she	PRP
barely	RB
seems	VBZ
to	TO
notice	NN
when	WRB
her	PRP$
husband	NN
disappears	VBZ
for	IN
drug-seeking	VB
forays	NNS
into	IN
Manhattan	NNP
.	.

But	CC
it	PRP
does	VBZ
n't	RB
take	VB
too	RB
many	JJ
lines	NNS
to	TO
figure	NN
Harry	NNP
out	IN
.	.

He	PRP
's	POS
a	DT
bore	VBD
.	.

Gulf	NNP
Resources	NNPS
&	CC
Chemical	NNP
Corp.	NNP
said	VBD
it	PRP
agreed	VBD
to	TO
pay	VB
$	$
1.5	CD
million	CD
as	RB
part	NN
of	IN
an	DT
accord	NN
with	IN
the	DT
Environmental	NNP
Protection	NNP
Agency	NNP
regarding	VBG
an	DT
environmental	JJ
cleanup	NN
of	IN
a	DT
defunct	VB
smelter	NN
the	DT
company	NN
formerly	RB
operated	VBN
in	IN
Idaho	NNP
.	.

In	IN
1984	CD
the	DT
EPA	NNP
notified	VBN
Gulf	NNP
Resources	NNPS
,	,
which	WDT
was	VBD
a	DT
part-owner	VB
of	IN
the	DT
smelter	NN
,	,
that	IN
it	PRP
was	VBD
potentially	RB
liable	JJ
for	IN
sharing	VBG
cleanup	NN
costs	NNS
at	IN
the	DT
site	NN
under	IN
the	DT
federal	JJ
Superfund	NNP
program	NN
.	.

The	DT
21-square-mile	NN
area	NN
is	VBZ
contaminated	VBN
with	IN
lead	NN
,	,
zinc	NN
and	CC
other	JJ
metals	NNS
.	.

Gulf	NNP
Resources	NNPS
earlier	JJR
this	DT
year	NN
proposed	VBN
a	DT
reorganization	NN
plan	VB
that	IN
would	MD
make	VBP
it	PRP
a	DT
unit	NN
of	IN
a	DT
Bermuda	NNP
concern	NN
,	,
potentially	RB
exempting	VBG
it	PRP
from	IN
liability	NN
for	IN
the	DT
smelter	NN
's	POS
cleanup	NN
costs	NNS
.	.

The	DT
company	NN
said	VBD
that	IN
as	RB
part	NN
of	IN
its	PRP$
agreement	NN
with	IN
the	DT
EPA	NNP
,	,
it	PRP
``	``
made	VBN
certain	JJ
voluntary	JJ
undertakings	NNS
with	IN
respect	VB
to	TO
intercorporate	VB
transactions	NNS
entered	VBN
into	IN
after	IN
the	DT
reorganization	NN
.	.
''	''

The	DT
company	NN
,	,
which	WDT
issued	VBN
a	DT
statement	NN
on	IN
the	DT
agreement	NN
late	JJ
Friday	NNP
,	,
said	VBD
that	IN
$	$
1	CD
million	CD
of	IN
the	DT
payment	NN
was	VBD
previously	RB
provided	VBN
for	IN
in	IN
its	PRP$
financial	JJ
statements	NNS
and	CC
that	IN
$	$
500,000	CD
will	MD
be	VB
recognized	VBN
in	IN
its	PRP$
1989	CD
third-quarter	NN
statement	NN
.	.

The	DT
agreement	NN
and	CC
consent	NN
decree	NN
are	VBP
subject	NN
to	TO
court	NN
approval	NN
,	,
the	DT
company	NN
said	VBD
.	.

Gulf	NNP
Resources	NNPS
added	VBD
that	IN
it	PRP
``	``
will	MD
seek	VBP
to	TO
recover	VB
equitable	JJ
contribution	NN
from	IN
others	NNS
for	IN
both	DT
the	DT
amount	VBP
of	IN
the	DT
settlement	NN
and	CC
any	DT
other	JJ
liabilities	NNS
it	PRP
may	MD
incur	VB
under	IN
the	DT
Superfund	NNP
law	NN
.	.
''	''

Under	IN
the	DT
agreement	NN
,	,
Gulf	NNP
must	MD
give	VB
the	DT
U.S.	NNP
government	NN
45	CD
days	NNS
'	POS
advance	NN
written	VBN
notice	NN
before	IN
issuing	VBG
any	DT
dividends	NNS
on	IN
common	JJ
stock	NN
.	.

The	DT
company	NN
's	POS
net	JJ
worth	JJ
can	MD
not	RB
fall	VB
below	IN
$	$
185	CD
million	CD
after	IN
the	DT
dividends	NNS
are	VBP
issued	VBN
.	.

``	``
The	DT
terms	NNS
of	IN
that	IN
agreement	NN
only	RB
become	VB
effective	JJ
the	DT
date	NN
of	IN
Gulf	NNP
's	POS
reorganization	NN
,	,
which	WDT
we	PRP
anticipate	VB
will	MD
occur	VB
sometime	RB
in	IN
early	RB
1990	CD
,	,
''	''
said	VBD
Lawrence	NNP
R.	NNP
Mehl	NNP
,	,
Gulf	NNP
's	POS
general	NN
counsel	NN
.	.

In	IN
addition	NN
,	,
Gulf	NNP
must	MD
give	VBP
the	DT
government	NN
20	CD
days	NNS
'	POS
advance	NN
written	VBN
notice	NN
of	IN
any	DT
loans	NNS
exceeding	VBG
$	$
50	CD
million	CD
that	IN
are	VBP
made	VBN
to	TO
the	DT
Bermuda-based	JJ
holding	VBG
company	NN
.	.

Gulf	NNP
's	POS
net	JJ
worth	JJ
after	IN
those	DT
transaction	NN
must	MD
be	VB
at	IN
least	JJS
$	$
150	CD
million	CD
.	.

Separately	RB
,	,
the	DT
company	NN
said	VBD
it	PRP
expects	VBZ
to	TO
hold	VBP
a	DT
special	JJ
meeting	VBG
for	IN
shareholders	NNS
in	IN
early	RB
1990	CD
to	TO
vote	NN
on	IN
its	PRP$
proposed	VBN
reorganization	NN
.	.

Many	DT
of	IN
the	DT
nation	NN
's	POS
highest-ranking	VB
executives	NNS
saluted	VB
Friday	NNP
's	POS
market	NN
plunge	NN
as	RB
an	DT
overdue	JJ
comeuppance	VB
for	IN
speculators	NNS
and	CC
takeover	NN
players	NNS
.	.

Assuming	VBG
that	IN
the	DT
market	NN
does	VBZ
n't	RB
head	VB
into	IN
a	DT
bottomless	JJ
free	JJ
fall	VB
,	,
some	DT
executives	NNS
think	VBP
Friday	NNP
's	POS
action	NN
could	MD
prove	VB
a	DT
harbinger	NN
of	IN
good	JJ
news	NN
--	:
as	RB
a	DT
sign	NN
that	IN
the	DT
leveraged	JJ
buy-out	NN
and	CC
takeover	NN
frenzy	NN
of	IN
recent	JJ
years	NNS
may	MD
be	VB
abating	VBG
.	.

``	``
This	DT
is	VBZ
a	DT
reaction	NN
to	TO
artificial	JJ
LBO	NNP
valuations	NNS
,	,
rather	RB
than	IN
to	TO
any	DT
fundamentals	NNS
,	,
''	''
said	VBD
John	NNP
Young	NNP
,	,
chairman	NN
of	IN
Hewlett-Packard	NNP
Co.	NNP
,	,
whose	WP$
shares	NNS
dropped	VBD
$	$
3.125	CD
to	TO
$	$
48.125	VB
.	.

``	``
If	IN
we	PRP
get	VB
rid	JJ
of	IN
a	DT
lot	NN
of	IN
that	IN
nonsense	NN
,	,
it	PRP
will	MD
be	VB
a	DT
big	JJ
plus	CC
.	.
''	''

A	DT
few	JJ
of	IN
the	DT
executives	NNS
here	RB
for	IN
the	DT
fall	VB
meeting	VBG
of	IN
the	DT
Business	NNP
Council	NNP
,	,
a	DT
group	NN
that	IN
meets	VBZ
to	TO
discuss	VBP
national	JJ
issues	NNS
,	,
were	VBD
only	RB
too	RB
happy	JJ
to	TO
personalize	VB
their	PRP$
criticism	NN
.	.

``	``
People	NNS
wish	VBP
the	DT
government	NN
would	MD
do	VB
something	NN
about	IN
leveraged	JJ
buy-outs	NNS
,	,
do	VB
something	NN
about	IN
takeovers	NNS
,	,
do	VB
something	NN
about	IN
Donald	NNP
Trump	NNP
,	,
''	''
said	VBD
Rand	NNP
Araskog	NNP
,	,
chairman	NN
of	IN
ITT	NNP
Corp.	NNP
,	,
whose	WP$
stock	NN
dropped	VBD
$	$
3.375	VB
.	.

``	``
Where	WRB
's	POS
the	DT
leadership	NN
?	.

Where	WRB
's	POS
the	DT
guy	NN
who	WP
can	MD
say	VBP
:	:
`	``
Enough	NNP
is	VBZ
enough	RB
'	POS
''	''
?	.

The	DT
executives	NNS
were	VBD
remarkably	RB
unperturbed	VB
by	IN
the	DT
plunge	NN
even	RB
though	IN
it	PRP
lopped	VB
billions	NNS
of	IN
dollars	NNS
off	RP
the	DT
value	NN
of	IN
their	PRP$
companies	NNS
--	:
and	CC
millions	NNS
off	RP
their	PRP$
personal	JJ
fortunes	NNS
.	.

``	``
I	PRP
'm	VBP
not	RB
going	VBG
to	TO
worry	VB
about	IN
one	CD
day	NN
's	POS
decline	NN
,	,
''	''
said	VBD
Kenneth	NNP
Olsen	NNP
,	,
Digital	NNP
Equipment	NNP
Corp.	NNP
president	NN
,	,
who	WP
was	VBD
leisurely	JJ
strolling	VBG
through	IN
the	DT
bright	JJ
orange	NN
and	CC
yellow	JJ
leaves	VBZ
of	IN
the	DT
mountains	NNS
here	RB
after	IN
his	PRP$
company	NN
's	POS
shares	NNS
plunged	VBD
$	$
5.75	CD
to	TO
close	VB
at	IN
$	$
86.50	CD
.	.

``	``
I	PRP
did	VBD
n't	RB
bother	VBP
calling	VBG
anybody	NN
;	:
I	PRP
did	VBD
n't	RB
even	RB
turn	VBP
on	IN
TV	NN
.	.
''	''

``	``
There	EX
has	VBZ
n't	RB
been	VBN
any	DT
fundamental	JJ
change	NN
in	IN
the	DT
economy	NN
,	,
''	''
added	VBD
John	NNP
Smale	NNP
,	,
whose	WP$
Procter	NNP
&	CC
Gamble	NNP
Co.	NNP
took	VBD
an	DT
$	$
8.75	CD
slide	NN
to	TO
close	VB
at	IN
$	$
120.75	VB
.	.

``	``
The	DT
fact	NN
that	IN
this	DT
happened	VBD
two	CD
years	NNS
ago	IN
and	CC
there	EX
was	VBD
a	DT
recovery	NN
gives	VBZ
people	NNS
some	DT
comfort	NN
that	IN
this	DT
wo	MD
n't	RB
be	VB
a	DT
problem	NN
.	.
''	''

Of	IN
course	NN
,	,
established	VBN
corporate	JJ
managements	NNS
often	RB
tend	VBP
to	TO
applaud	VB
the	DT
setbacks	NNS
of	IN
stock	NN
speculators	NNS
and	CC
takeover	NN
artists	NNS
.	.

Indeed	RB
,	,
one	CD
chief	NN
executive	NN
who	WP
was	VBD
downright	RB
delighted	JJ
by	IN
Friday	NNP
's	POS
events	NNS
was	VBD
Robert	NNP
Crandall	NNP
,	,
chairman	NN
of	IN
AMR	NNP
Corp.	NNP
,	,
the	DT
parent	NN
of	IN
American	JJ
Airlines	NNPS
and	CC
the	DT
target	NN
of	IN
a	DT
takeover	NN
offer	NN
by	IN
Mr.	NNP
Trump	NNP
.	.

Asked	VBN
whether	IN
Friday	NNP
's	POS
action	NN
could	MD
help	VB
him	PRP
avoid	VB
being	VBG
Trumped	VB
by	IN
the	DT
New	NNP
York	NNP
real	JJ
estate	NN
magnate	NN
,	,
Mr.	NNP
Crandall	NNP
smiled	VBD
broadly	RB
and	CC
said	VBD
:	:
``	``
No	DT
comment	NN
.	.
''	''

On	IN
Friday	NNP
morning	NN
,	,
before	IN
the	DT
market	NN
's	POS
sell-off	NN
,	,
the	DT
business	NN
leaders	NNS
issued	VBD
a	DT
report	NN
predicting	VBG
the	DT
economy	NN
would	MD
grow	VB
at	IN
roughly	RB
an	DT
inflation-adjusted	JJ
2	LS
%	NN
annual	JJ
rate	NN
,	,
through	IN
next	JJ
year	NN
,	,
then	RB
accelerate	VB
anew	RB
in	IN
1991	CD
.	.

Of	IN
the	DT
19	CD
economists	NNS
who	WP
worked	VBD
on	IN
the	DT
Business	NNP
Council	NNP
forecast	NN
,	,
only	RB
two	CD
projected	VBN
periods	NNS
of	IN
decline	NN
in	IN
the	DT
nation	NN
's	POS
output	NN
over	IN
the	DT
next	JJ
two	CD
years	NNS
,	,
and	CC
in	IN
``	``
both	DT
instances	NNS
the	DT
declines	NNS
are	VBP
too	RB
modest	JJ
to	TO
warrant	VB
the	DT
phrase	NN
recession	NN
,	,
''	''
said	VBD
Lewis	NNP
Preston	NNP
,	,
chairman	NN
of	IN
J.P.	NNP
Morgan	NNP
&	CC
Co.	NNP
and	CC
vice	NN
chairman	NN
of	IN
the	DT
Business	NNP
Council	NNP
.	.

The	DT
real	JJ
estate	NN
slump	NN
that	IN
's	POS
pushing	VBG
down	IN
the	DT
price	NN
of	IN
New	NNP
York	NNP
office	NN
space	NN
and	CC
housing	NN
is	VBZ
also	RB
affecting	VBG
the	DT
city	NN
's	POS
retail	JJ
real	JJ
estate	NN
market	NN
.	.

In	IN
Manhattan	NNP
,	,
once-desirable	VB
store	NN
sites	NNS
sit	VBP
vacant	JJ
and	CC
newly	RB
constructed	VBN
space	NN
has	VBZ
been	VBN
slow	VB
to	TO
fill	VB
.	.

Retail	NNP
real	JJ
estate	NN
brokers	NNS
say	VBP
tenants	NNS
are	VBP
reluctant	JJ
to	TO
sign	NN
leases	NNS
because	IN
of	IN
uncertainty	NN
about	IN
the	DT
local	JJ
economy	NN
,	,
turmoil	NN
in	IN
their	PRP$
own	JJ
industries	NNS
and	CC
a	DT
belief	NN
that	IN
rents	VBZ
have	VB
not	RB
yet	RB
hit	VBD
bottom	NN
.	.

``	``
There	EX
is	VBZ
an	DT
unbelievable	JJ
amount	VBP
of	IN
space	NN
available	JJ
,	,
''	''
says	VBZ
Faith	VB
Consolo	VB
,	,
senior	JJ
vice	NN
president	NN
at	IN
Garrick-Aug	VB
Associates	NNPS
Store	NNP
Leasing	NNP
Inc	NNP
.	.

There	EX
are	VBP
about	IN
2,000	CD
stores	NNS
for	IN
rent	NN
,	,
up	RP
from	IN
a	DT
more	RBR
typical	JJ
range	NN
of	IN
1,200	CD
to	TO
1,500	CD
.	.

``	``
This	DT
further	JJ
confuses	VB
retailers	NNS
,	,
''	''
she	PRP
says	VBZ
.	.

``	``
They	PRP
wonder	NN
should	MD
they	PRP
sign	NN
a	DT
lease	NN
if	IN
prices	NNS
are	VBP
still	RB
coming	VBG
down	IN
?	.

Is	VBZ
this	DT
the	DT
wrong	JJ
time	NN
to	TO
open	JJ
a	DT
store	NN
?	.

Who	WP
is	VBZ
going	VBG
to	TO
be	VB
in	IN
the	DT
space	NN
next	JJ
door	NN
?	.
''	''

In	IN
addition	NN
,	,
Ms.	NNP
Consolo	VB
says	VBZ
,	,
tenants	NNS
usually	RB
can	MD
negotiate	VB
to	TO
pay	VB
rents	VBZ
that	IN
are	VBP
about	IN
one-quarter	NN
lower	JJR
than	IN
landlords	VB
'	POS
initial	JJ
asking	VBG
price	NN
.	.

A	DT
handful	NN
of	IN
hot	JJ
retail	JJ
locations	NNS
,	,
such	JJ
as	RB
the	DT
57th	JJ
Street	NNP
and	CC
Madison	NNP
and	CC
Fifth	NNP
Avenue	NNP
areas	NNS
,	,
have	VB
been	VBN
able	JJ
to	TO
sustain	VB
what	WP
many	JJ
see	VB
as	RB
astronomical	JJ
rents	VBZ
.	.

And	CC
,	,
in	IN
some	DT
neighborhoods	NNS
,	,
rents	VBZ
have	VB
merely	RB
hit	VBD
a	DT
plateau	NN
.	.

But	CC
on	IN
average	NN
,	,
Manhattan	NNP
retail	JJ
rents	VBZ
have	VB
dropped	VBD
10	CD
%	NN
to	TO
15	CD
%	NN
in	IN
the	DT
past	IN
six	CD
months	NNS
alone	RB
,	,
experts	NNS
say	VBP
.	.

That	DT
follows	VBZ
a	DT
more	RBR
subtle	JJ
decline	NN
in	IN
the	DT
prior	RB
six	CD
months	NNS
,	,
after	IN
Manhattan	NNP
rents	VBZ
had	VBD
run	VBD
up	RP
rapidly	RB
since	IN
1986	CD
.	.

The	DT
same	JJ
factors	NNS
limiting	VBG
demand	VBP
for	IN
office	NN
space	NN
have	VB
affected	VBD
retailing	NN
.	.

``	``
As	IN
businesses	NNS
contract	NN
or	CC
depart	VB
,	,
the	DT
number	NN
of	IN
employees	NNS
who	WP
might	MD
use	VBP
retail	JJ
services	NNS
shrinks	VB
,	,
''	''
says	VBZ
Edward	NNP
A.	NNP
Friedman	NNP
,	,
senior	JJ
vice	NN
president	NN
of	IN
Helmsley	NNP
Spear	VB
Inc	NNP
.	.

He	PRP
says	VBZ
financial	JJ
problems	NNS
plaguing	VB
electronics	NNS
,	,
fur	NN
and	CC
furniture	NN
companies	NNS
--	:
key	NN
categories	NNS
in	IN
the	DT
local	JJ
retail	JJ
economy	NN
--	:
have	VB
further	JJ
deflated	VBN
the	DT
market	NN
.	.

Hardest	RBS
hit	VBD
are	VBP
what	WP
he	PRP
calls	VBZ
``	``
secondary	JJ
''	''
sites	NNS
that	IN
primarily	RB
serve	VB
neighborhood	NN
residents	NNS
.	.

In	IN
these	DT
locations	NNS
,	,
Mr.	NNP
Friedman	NNP
says	VBZ
,	,
``	``
Retailers	NNP
are	VBP
increasingly	RB
cautious	JJ
about	IN
expanding	VBG
and	CC
rents	VBZ
have	VB
remained	VBD
steady	JJ
or	CC
in	IN
some	DT
cases	NNS
have	VB
declined	VBD
.	.
''	''

Weakness	NN
in	IN
the	DT
restaurant	NN
industry	NN
,	,
which	WDT
is	VBZ
leaving	VBG
retail	JJ
space	NN
vacant	JJ
,	,
exacerbates	VBZ
the	DT
problem	NN
for	IN
landlords	VB
.	.

It	NNP
is	VBZ
also	RB
no	DT
comfort	NN
to	TO
landlords	VB
and	CC
small	JJ
New	NNP
York	NNP
retailers	NNS
when	WRB
the	DT
future	NN
of	IN
larger	JJR
department	NN
stores	NNS
,	,
which	WDT
anchor	VB
retail	JJ
neighborhoods	NNS
,	,
are	VBP
in	IN
doubt	VB
.	.

Hooker	NNP
Corp.	NNP
,	,
parent	NN
of	IN
Bonwit	NNP
Teller	NNP
and	CC
B.	NNP
Altman	NNP
's	POS
,	,
is	VBZ
mired	JJ
in	IN
bankruptcy	NN
proceedings	NNS
and	CC
Bloomingdale	NNP
's	POS
is	VBZ
for	IN
sale	NN
by	IN
its	PRP$
owner	NN
,	,
Campeau	NNP
Corp	NNP
.	.

The	DT
trend	NN
toward	IN
lower	JJR
rents	VBZ
may	MD
seem	VBP
surprising	JJ
given	VBN
that	IN
some	DT
communities	NNS
in	IN
New	NNP
York	NNP
are	VBP
bemoaning	VBG
the	DT
loss	NN
of	IN
favorite	JJ
local	JJ
businesses	NNS
to	TO
high	JJ
rents	VBZ
.	.

But	CC
,	,
despite	IN
the	DT
recent	JJ
softening	NN
,	,
for	IN
many	JJ
of	IN
these	DT
retailers	NNS
there	EX
's	POS
still	RB
been	VBN
too	RB
big	JJ
a	DT
jump	NN
from	IN
the	DT
rental	JJ
rates	NNS
of	IN
the	DT
late	JJ
1970s	CD
,	,
when	WRB
their	PRP$
leases	NNS
were	VBD
signed	VBD
.	.

Certainly	RB
,	,
the	DT
recent	JJ
drop	NN
in	IN
prices	NNS
does	VBZ
n't	RB
mean	VB
Manhattan	NNP
comes	VBZ
cheap	JJ
.	.

New	NNP
York	NNP
retail	JJ
rents	VBZ
still	RB
run	VBD
well	RB
above	IN
the	DT
going	VBG
rate	NN
in	IN
other	JJ
U.S.	NNP
cities	NNS
.	.

Madison	NNP
and	CC
Fifth	NNP
Avenues	VB
and	CC
East	NNP
57th	JJ
Street	NNP
can	MD
command	NN
rents	VBZ
of	IN
up	RP
to	TO
$	$
500	CD
a	DT
square	JJ
foot	NN
,	,
and	CC
$	$
250	CD
is	VBZ
not	RB
uncommon	JJ
.	.

The	DT
thriving	JJ
34th	VB
Street	NNP
area	NN
offers	VBZ
rents	VBZ
of	IN
about	IN
$	$
100	CD
a	DT
square	JJ
foot	NN
,	,
as	RB
do	VB
up-and-coming	VB
locations	NNS
along	IN
lower	JJR
Fifth	NNP
Avenue	NNP
.	.

By	IN
contrast	NN
,	,
rentals	NNS
in	IN
the	DT
best	JJS
retail	JJ
locations	NNS
in	IN
Boston	NNP
,	,
San	NNP
Francisco	NNP
and	CC
Chicago	NNP
rarely	RB
top	NN
$	$
100	CD
a	DT
square	JJ
foot	NN
.	.

And	CC
rents	VBZ
on	IN
Beverly	NNP
Hills	NNPS
'	POS
Rodeo	NN
Drive	NNP
generally	RB
do	VB
n't	RB
exceed	VBP
about	IN
$	$
125	CD
a	DT
square	JJ
foot	NN
.	.

The	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
said	VBD
two	CD
securities	NNS
will	MD
begin	VB
trading	NN
this	DT
week	NN
.	.

Precision	IN
Castparts	NNP
Corp.	NNP
,	,
Portland	NNP
,	,
Ore.	NNP
,	,
will	MD
begin	VB
trading	NN
with	IN
the	DT
symbol	NN
PCP	VB
.	.

It	NNP
makes	VBZ
investment	NN
castings	VB
and	CC
has	VBZ
traded	VBN
over-the-counter	NN
.	.

Royal	NNP
Bank	NNP
of	IN
Scotland	NNP
Group	NNP
PLC	NNP
,	,
an	DT
Edinburgh	NNP
,	,
Scotland	NNP
,	,
financial	JJ
services	NNS
company	NN
,	,
will	MD
list	NN
American	JJ
depositary	NN
shares	NNS
,	,
representing	VBG
preferred	JJ
shares	NNS
,	,
with	IN
the	DT
symbol	NN
RBSPr	VB
.	.

It	NNP
will	MD
continue	VB
to	TO
trade	NN
on	IN
the	DT
International	NNP
Stock	NNP
Exchange	NNP
,	,
London	NNP
.	.

The	DT
American	JJ
Stock	NNP
Exchange	NNP
listed	VBD
shares	NNS
of	IN
two	CD
companies	NNS
.	.

AIM	IN
Telephones	NNP
Inc.	NNP
,	,
a	DT
Parsippany	VB
,	,
N.J.	NNP
,	,
telecommunications	NN
equipment	NN
supply	VB
company	NN
,	,
started	VBN
trading	NN
with	IN
the	DT
symbol	NN
AIM	VB
.	.

It	NNP
had	VBD
traded	VBN
over-the-counter	NN
.	.

Columbia	NNP
Laboratories	NNPS
Inc.	NNP
,	,
Miami	NNP
,	,
began	VBD
trading	NN
with	IN
the	DT
symbol	NN
COB	VB
.	.

The	DT
pharmaceuticals	NNS
maker	NN
had	VBD
traded	VBN
over-the-counter	NN
.	.

The	DT
National	NNP
Market	NNP
System	NNP
of	IN
the	DT
Nasdaq	NNP
over-the-counter	NN
market	NN
listed	VBD
shares	NNS
of	IN
one	CD
company	NN
.	.

Employee	NNP
Benefit	NNP
Plans	NNS
Inc.	NNP
,	,
a	DT
Minneapolis	NNP
health-care	NN
services	NNS
company	NN
,	,
was	VBD
listed	VBD
with	IN
the	DT
symbol	NN
EBPI	VB
.	.

When	WRB
Justice	NNP
William	NNP
Brennan	VB
marks	VBZ
the	DT
start	VB
of	IN
his	PRP$
34th	VB
year	NN
on	IN
the	DT
Supreme	NNP
Court	NNP
today	NN
,	,
the	DT
occasion	VB
will	MD
differ	VB
sharply	RB
from	IN
previous	JJ
anniversaries	VB
of	IN
his	PRP$
tenure	NN
.	.

For	IN
the	DT
first	JJ
time	NN
,	,
the	DT
83-year-old	NN
justice	NN
finds	VBZ
his	PRP$
influence	VB
almost	RB
exclusively	RB
in	IN
dissent	NN
,	,
rather	RB
than	IN
as	RB
a	DT
force	NN
in	IN
the	DT
high	JJ
court	NN
's	POS
majority	NN
.	.

This	DT
role	NN
reversal	NN
holds	VBZ
true	JJ
,	,
as	RB
well	RB
,	,
for	IN
his	PRP$
three	CD
liberal	JJ
and	CC
moderate	JJ
allies	NNS
,	,
Justices	VB
Thurgood	VB
Marshall	NNP
,	,
Harry	NNP
Blackmun	VB
and	CC
John	NNP
Stevens	NNP
.	.

But	CC
are	VBP
these	DT
four	CD
players	NNS
,	,
three	CD
of	IN
them	PRP
in	IN
their	PRP$
80s	VB
,	,
ready	JJ
to	TO
assume	VBP
a	DT
different	JJ
role	NN
after	IN
88	CD
years	NNS
,	,
collectively	RB
,	,
of	IN
service	VB
on	IN
the	DT
high	JJ
court	NN
?	.

Every	DT
indication	NN
is	VBZ
that	IN
the	DT
four	CD
are	VBP
prepared	VBN
to	TO
accept	VB
this	DT
new	JJ
role	NN
,	,
and	CC
the	DT
frustrations	NN
that	IN
go	VB
with	IN
it	PRP
,	,
but	CC
in	IN
different	JJ
ways	NNS
.	.

Justices	IN
Brennan	NNP
and	CC
Stevens	NNP
appear	VB
philosophical	JJ
about	IN
it	PRP
;	:
Justices	VB
Marshall	NNP
and	CC
Blackmun	VB
appear	VB
fighting	VBG
mad	JJ
.	.

The	DT
four	CD
justices	NNS
are	VBP
no	DT
newcomers	NNS
to	TO
dissent	NN
,	,
often	RB
joining	VBG
forces	NNS
in	IN
the	DT
past	IN
decade	NN
to	TO
criticize	VBP
the	DT
court	NN
's	POS
conservative	JJ
drift	VB
.	.

But	CC
always	RB
,	,
in	IN
years	NNS
past	IN
,	,
they	PRP
have	VB
bucked	VBD
the	DT
trend	NN
and	CC
have	VB
been	VBN
able	JJ
to	TO
pick	VB
up	RP
a	DT
fifth	JJ
vote	NN
to	TO
eke	VB
out	IN
a	DT
number	NN
of	IN
major	JJ
victories	NNS
in	IN
civil	JJ
rights	NNS
and	CC
liberties	NNS
cases	NNS
.	.

Now	RB
,	,
however	RB
,	,
as	RB
the	DT
court	NN
's	POS
new	JJ
five-member	JJ
conservative	JJ
majority	NN
continues	VBZ
to	TO
solidify	VBP
,	,
victories	NNS
for	IN
the	DT
liberals	NNS
are	VBP
rare	JJ
.	.

The	DT
change	NN
is	VBZ
most	RBS
dramatic	JJ
for	IN
Justice	NNP
Brennan	VB
,	,
the	DT
last	JJ
survivor	NN
of	IN
the	DT
mid-1960s	VB
liberal	JJ
majority	NN
under	IN
Chief	NNP
Justice	NNP
Earl	NNP
Warren	NNP
.	.

In	IN
the	DT
seven	CD
Supreme	NNP
Court	NNP
terms	NNS
from	IN
the	DT
fall	VB
of	IN
1962	CD
through	IN
the	DT
spring	NN
of	IN
1967	CD
,	,
the	DT
height	NN
of	IN
the	DT
Warren	NNP
Court	NNP
's	POS
power	NN
,	,
Justice	NNP
Brennan	VB
cast	NN
only	RB
25	CD
dissenting	VB
votes	NNS
in	IN
555	CD
cases	NNS
decided	VBD
by	IN
the	DT
court	NN
.	.

Last	JJ
term	NN
alone	RB
he	PRP
cast	NN
52	CD
dissenting	VB
votes	NNS
in	IN
133	CD
decisions	NNS
,	,
with	IN
the	DT
contentious	JJ
flag-burning	NN
ruling	NN
as	RB
his	PRP$
only	RB
big	JJ
victory	NN
.	.

But	CC
Justice	NNP
Brennan	VB
foresaw	VB
his	PRP$
new	JJ
role	NN
,	,
strongly	RB
defending	VBG
the	DT
importance	NN
of	IN
dissents	VB
in	IN
a	DT
1985	CD
speech	NN
.	.

``	``
Each	DT
time	NN
the	DT
court	NN
revisits	VB
an	DT
issue	NN
,	,
the	DT
justices	NNS
will	MD
be	VB
forced	VBD
by	IN
a	DT
dissent	NN
to	TO
reconsider	VB
the	DT
fundamental	JJ
questions	NNS
and	CC
to	TO
rethink	VB
the	DT
result	NN
,	,
''	''
he	PRP
said	VBD
.	.

Moreover	RB
,	,
in	IN
recent	JJ
months	NNS
he	PRP
has	VBZ
said	VBD
that	IN
when	WRB
he	PRP
was	VBD
on	IN
the	DT
winning	VBG
side	NN
in	IN
the	DT
1960s	CD
,	,
he	PRP
knew	VBD
that	IN
the	DT
tables	NNS
might	MD
turn	VBP
in	IN
the	DT
future	NN
.	.

He	PRP
has	VBZ
said	VBD
that	IN
he	PRP
now	RB
knows	VBZ
how	WRB
Justice	NNP
John	NNP
Harlan	NNP
felt	VBD
,	,
a	DT
reference	NN
to	TO
the	DT
late	JJ
conservative	JJ
justice	NN
who	WP
was	VBD
the	DT
most	RBS
frequent	JJ
dissenter	VB
from	IN
the	DT
Warren	NNP
Court	NNP
's	POS
opinions	NNS
.	.

Associates	NNPS
of	IN
81-year-old	VB
Justice	NNP
Marshall	NNP
say	VBP
he	PRP
was	VBD
``	``
depressed	VBN
''	''
about	IN
the	DT
court	NN
's	POS
direction	NN
last	JJ
spring	NN
,	,
but	CC
is	VBZ
feisty	JJ
about	IN
his	PRP$
role	NN
and	CC
determined	VBN
to	TO
speak	VB
out	IN
against	IN
the	DT
court	NN
's	POS
cutbacks	NNS
in	IN
civil	JJ
rights	NNS
.	.

``	``
We	PRP
could	MD
sweep	NN
it	PRP
under	IN
the	DT
rug	VB
and	CC
hide	VB
it	PRP
,	,
but	CC
I	PRP
'm	VBP
not	RB
going	VBG
to	TO
do	VB
it	PRP
,	,
''	''
he	PRP
said	VBD
in	IN
a	DT
speech	NN
last	JJ
month	NN
.	.

He	PRP
,	,
like	IN
Justice	NNP
Brennan	VB
,	,
considers	VBZ
dissents	VB
highly	RB
important	JJ
for	IN
the	DT
future	NN
,	,
a	DT
point	VBP
that	IN
has	VBZ
n't	RB
escaped	VBD
legal	JJ
scholars	NNS
.	.

Harvard	NNP
Law	NNP
School	NNP
Professor	NNP
Laurence	NNP
Tribe	NNP
says	VBZ
there	EX
is	VBZ
a	DT
``	``
generation-skipping	VB
''	''
flavor	NN
to	TO
current	NN
dissents	VB
.	.

The	DT
dissenters	NNS
in	IN
the	DT
Warren	NNP
Court	NNP
,	,
he	PRP
says	VBZ
,	,
appeared	VBD
to	TO
be	VB
writing	VBG
for	IN
the	DT
short-term	JJ
,	,
suggesting	VBG
that	IN
the	DT
court	NN
's	POS
direction	NN
might	MD
change	NN
soon	RB
.	.

``	``
Brennan	VB
and	CC
Marshall	NNP
are	VBP
speaking	VBG
in	IN
their	PRP$
dissents	VB
to	TO
a	DT
more	RBR
distant	JJ
future	NN
,	,
''	''
he	PRP
says	VBZ
.	.

Justice	NNP
Blackmun	VB
,	,
who	WP
will	MD
turn	VBP
81	CD
next	JJ
month	NN
,	,
also	RB
seems	VBZ
feisty	JJ
about	IN
his	PRP$
new	JJ
role	NN
.	.

Associates	NNPS
say	VBP
he	PRP
takes	VBZ
some	DT
defeats	VBZ
more	RBR
personally	RB
than	IN
his	PRP$
colleagues	NNS
,	,
especially	RB
attempts	NNS
to	TO
curtail	VB
the	DT
right	RB
to	TO
abortion	NN
first	JJ
recognized	VBN
in	IN
his	PRP$
1973	CD
opinion	NN
,	,
Roe	NNP
vs.	CC
Wade	NNP
.	.

Friends	NNPS
and	CC
associates	NNS
who	WP
saw	VBD
Justice	NNP
Blackmun	VB
during	IN
the	DT
summer	NN
said	VBD
he	PRP
was	VBD
no	DT
more	RBR
discouraged	VBN
about	IN
the	DT
court	NN
than	IN
in	IN
recent	JJ
years	NNS
.	.

And	CC
his	PRP$
outlook	NN
improved	VBN
after	IN
successful	JJ
cataract	VB
surgery	NN
in	IN
August	NNP
.	.

But	CC
his	PRP$
level	NN
of	IN
frustration	NN
showed	VBD
in	IN
a	DT
recent	JJ
,	,
impassioned	VB
speech	NN
to	TO
a	DT
group	NN
of	IN
hundreds	NNS
of	IN
lawyers	NNS
in	IN
Chicago	NNP
.	.

He	PRP
concluded	VBD
his	PRP$
remarks	NNS
by	IN
quoting	VBG
,	,
emotionally	RB
and	CC
at	IN
some	DT
length	NN
,	,
according	VBG
to	TO
those	DT
present	JJ
,	,
the	DT
late	JJ
Martin	NNP
Luther	NNP
King	NNP
's	POS
famous	JJ
``	``
I	PRP
Have	VBP
a	DT
Dream	VB
''	''
speech	NN
from	IN
the	DT
1963	CD
March	NNP
on	IN
Washington	NNP
.	.

Justice	NNP
Stevens	NNP
,	,
69	CD
,	,
is	VBZ
probably	RB
the	DT
most	RBS
philosophical	JJ
of	IN
the	DT
dissenters	NNS
about	IN
his	PRP$
role	NN
,	,
in	IN
part	NN
because	IN
he	PRP
may	MD
be	VB
the	DT
least	JJS
liberal	JJ
of	IN
the	DT
four	CD
,	,
but	CC
also	RB
because	IN
he	PRP
enjoys	VBZ
the	DT
intellectual	JJ
challenge	NN
of	IN
arguing	VBG
with	IN
the	DT
majority	NN
more	RBR
than	IN
the	DT
others	NNS
.	.

If	IN
the	DT
role	NN
these	DT
four	CD
dissenters	NNS
are	VBP
assuming	VBG
is	VBZ
a	DT
familiar	JJ
one	CD
in	IN
modern	JJ
Supreme	NNP
Court	NNP
history	NN
,	,
it	PRP
also	RB
differs	VBZ
in	IN
an	DT
important	JJ
way	NN
from	IN
recent	JJ
history	NN
,	,
court	NN
watchers	NNS
say	VBP
.	.

``	``
The	DT
dissenters	NNS
of	IN
the	DT
Warren	NNP
Court	NNP
were	VBD
often	RB
defending	VBG
a	DT
legal	JJ
legacy	NN
that	IN
they	PRP
inherited	VBN
,	,
''	''
says	VBZ
Prof.	NNP
A.E.	VB
Dick	NNP
Howard	NNP
of	IN
the	DT
University	NNP
of	IN
Virginia	NNP
Law	NNP
School	NNP
,	,
``	``
but	CC
the	DT
dissenters	NNS
today	NN
are	VBP
defending	VBG
a	DT
legacy	NN
that	IN
they	PRP
created	VBN
.	.

The	DT
government	NN
sold	VBN
the	DT
deposits	NNS
of	IN
four	CD
savings-and-loan	NN
institutions	NNS
,	,
in	IN
its	PRP$
first	JJ
wave	NN
of	IN
sales	NNS
of	IN
big	JJ
,	,
sick	JJ
thrifts	NNS
,	,
but	CC
low	JJ
bids	NNS
prevented	VBD
the	DT
sale	NN
of	IN
a	DT
fifth	JJ
.	.

The	DT
four	CD
S&Ls	NNS
were	VBD
sold	VBN
to	TO
large	JJ
banks	NNS
,	,
as	RB
was	VBD
the	DT
case	NN
with	IN
most	RBS
of	IN
the	DT
28	CD
previous	JJ
transactions	NNS
initiated	VBD
by	IN
the	DT
Resolution	NNP
Trust	NNP
Corp.	NNP
since	IN
it	PRP
was	VBD
created	VBN
in	IN
the	DT
S&L	NN
bailout	NN
legislation	NN
two	CD
months	NNS
ago	IN
.	.

Two	CD
of	IN
the	DT
four	CD
big	JJ
thrifts	NNS
were	VBD
sold	VBN
to	TO
NCNB	NNP
Corp.	NNP
,	,
Charlotte	NNP
,	,
N.C.	NNP
,	,
which	WDT
has	VBZ
aggressively	RB
expanded	VBN
its	PRP$
markets	NNS
,	,
particularly	RB
in	IN
Texas	NNP
and	CC
Florida	NNP
.	.

A	DT
Canadian	JJ
bank	NN
bought	VBN
another	DT
thrift	NN
,	,
in	IN
the	DT
first	JJ
RTC	NNP
transaction	NN
with	IN
a	DT
foreign	JJ
bank	NN
.	.

Under	IN
these	DT
deals	NNS
,	,
the	DT
RTC	NNP
sells	VBZ
just	RB
the	DT
deposits	NNS
and	CC
the	DT
healthy	JJ
assets	NNS
.	.

These	DT
``	``
clean-bank	JJ
''	''
transactions	NNS
leave	VB
the	DT
bulk	NN
of	IN
bad	JJ
assets	NNS
,	,
mostly	RB
real	JJ
estate	NN
,	,
with	IN
the	DT
government	NN
,	,
to	TO
be	VB
sold	VBN
later	RB
.	.

In	IN
these	DT
four	CD
,	,
for	IN
instance	NN
,	,
the	DT
RTC	NNP
is	VBZ
stuck	VBD
with	IN
$	$
4.51	CD
billion	CD
in	IN
bad	JJ
assets	NNS
.	.

Acquirers	IN
paid	VBN
premiums	NNS
ranging	VBG
from	IN
1.5	CD
%	NN
to	TO
3.7	CD
%	NN
for	IN
the	DT
deposits	NNS
and	CC
branch	NN
systems	NNS
,	,
roughly	RB
in	IN
line	NN
with	IN
what	WP
analysts	NNS
were	VBD
expecting	VBG
.	.

The	DT
buyers	NNS
will	MD
also	RB
be	VB
locked	VBN
into	IN
deposit	VB
rates	NNS
for	IN
just	RB
two	CD
weeks	NNS
,	,
as	RB
has	VBZ
been	VBN
the	DT
case	NN
with	IN
previous	JJ
deals	NNS
.	.

After	IN
that	DT
,	,
the	DT
buyers	NNS
may	MD
repudiate	VB
the	DT
rates	NNS
paid	VBN
by	IN
the	DT
former	JJ
thrifts	NNS
.	.

But	CC
it	PRP
's	POS
uncertain	JJ
whether	IN
these	DT
institutions	NNS
will	MD
take	VB
those	DT
steps	NNS
.	.

NCNB	NNP
,	,
for	IN
example	NN
,	,
has	VBZ
been	VBN
one	CD
of	IN
the	DT
highest	JJS
rate	NN
payers	NNS
in	IN
the	DT
Texas	NNP
market	NN
,	,
and	CC
in	IN
Florida	NNP
,	,
rates	NNS
are	VBP
especially	RB
sensitive	JJ
in	IN
retirement	NN
communities	NNS
.	.

The	DT
RTC	NNP
had	VBD
previously	RB
targeted	VBN
five	CD
thrifts	NNS
for	IN
quick	JJ
sales	NNS
in	IN
order	NN
to	TO
spend	VBP
cash	NN
by	IN
certain	JJ
budgetary	JJ
deadlines	NNS
,	,
but	CC
the	DT
delays	NNS
illustrate	VBP
the	DT
tough	JJ
chore	VB
facing	VBG
the	DT
agency	NN
.	.

``	``
These	DT
thrifts	NNS
are	VBP
beached	VB
whales	VB
,	,
''	''
said	VBD
Bert	NNP
Ely	NNP
,	,
an	DT
industry	NN
consultant	NN
based	VBN
in	IN
Alexandria	NNP
,	,
Va	NNP
.	.

For	IN
example	NN
,	,
the	DT
delay	NN
in	IN
selling	VBG
People	NNS
's	POS
Heritage	NNP
Savings	NNP
,	,
Salina	NNP
,	,
Kan.	NNP
,	,
with	IN
$	$
1.7	CD
billion	CD
in	IN
assets	NNS
,	,
has	VBZ
forced	VBN
the	DT
RTC	NNP
to	TO
consider	VB
selling	VBG
off	RP
the	DT
thrift	NN
branch-by-branch	NN
,	,
instead	RB
of	IN
as	RB
a	DT
whole	JJ
institution	NN
.	.

NCNB	NNP
continued	VBD
its	PRP$
foray	NN
into	IN
the	DT
Florida	NNP
and	CC
Texas	NNP
markets	NNS
.	.

NCNB	NNP
will	MD
acquire	VB
University	NNP
Federal	NNP
Savings	NNP
Association	NNP
,	,
Houston	NNP
,	,
which	WDT
had	VBD
assets	NNS
of	IN
$	$
2.8	CD
billion	CD
.	.

NCNB	NNP
Texas	NNP
National	NNP
Bank	NNP
will	MD
pay	VB
the	DT
RTC	NNP
a	DT
premium	NN
of	IN
$	$
129	CD
million	CD
for	IN
$	$
3.5	CD
billion	CD
in	IN
deposits	NNS
.	.

As	IN
a	DT
measure	NN
of	IN
the	DT
depths	NNS
to	TO
which	WDT
the	DT
Texas	NNP
real	JJ
estate	NN
market	NN
has	VBZ
sunk	VBN
,	,
the	DT
RTC	NNP
will	MD
pay	VB
$	$
3.8	CD
billion	CD
to	TO
NCNB	NNP
to	TO
take	VB
$	$
750	CD
million	CD
of	IN
bad	JJ
assets	NNS
.	.

NCNB	NNP
also	RB
acquired	VBN
Freedom	NN
Savings	NNP
&	CC
Loan	NNP
Association	NNP
,	,
Tampa	NNP
,	,
Fla.	NNP
,	,
which	WDT
had	VBD
total	JJ
assets	NNS
of	IN
$	$
900	CD
million	CD
.	.

NCNB	NNP
will	MD
pay	VB
the	DT
RTC	NNP
a	DT
premium	NN
of	IN
$	$
40.4	CD
million	CD
for	IN
$	$
1.1	CD
billion	CD
in	IN
deposits	NNS
.	.

NCNB	NNP
will	MD
also	RB
acquire	VB
$	$
266	CD
million	CD
of	IN
Freedom	NN
's	POS
assets	NNS
from	IN
the	DT
RTC	NNP
,	,
which	WDT
will	MD
require	VB
$	$
875	CD
million	CD
in	IN
assistance	NN
.	.

Meridian	NNP
Bancorp	NNP
Inc.	NNP
,	,
Reading	VBG
,	,
Pa.	NNP
,	,
will	MD
acquire	VB
Hill	NNP
Financial	NNP
Savings	NNP
Association	NNP
,	,
Red	NNP
Hill	NNP
,	,
Pa.	NNP
,	,
which	WDT
had	VBD
$	$
2.3	CD
billion	CD
in	IN
assets	NNS
.	.

Meridian	NNP
will	MD
pay	VB
a	DT
premium	NN
of	IN
$	$
30.5	VB
million	CD
to	TO
assume	VBP
$	$
2	LS
billion	CD
in	IN
deposits	NNS
.	.

It	NNP
will	MD
also	RB
purchase	VB
$	$
845	VB
million	CD
of	IN
the	DT
thrift	NN
's	POS
assets	NNS
,	,
with	IN
$	$
1.9	CD
billion	CD
in	IN
RTC	NNP
assistance	NN
.	.

In	IN
the	DT
first	JJ
RTC	NNP
transaction	NN
with	IN
a	DT
foreign	JJ
buyer	NN
,	,
Royal	NNP
Trustco	VB
Ltd.	NNP
,	,
Toronto	NNP
,	,
will	MD
acquire	VB
Pacific	NNP
Savings	NNP
Bank	NNP
,	,
Costa	NNP
Mesa	NNP
,	,
Calif.	NNP
,	,
which	WDT
had	VBD
$	$
949	VB
million	CD
in	IN
assets	NNS
.	.

Royal	NNP
Trustco	VB
will	MD
pay	VB
the	DT
RTC	NNP
$	$
25	CD
million	CD
to	TO
assume	VBP
$	$
989	VB
million	CD
in	IN
deposits	NNS
.	.

It	NNP
will	MD
also	RB
purchase	VB
$	$
473	CD
million	CD
in	IN
assets	NNS
,	,
and	CC
receive	VB
$	$
550	CD
million	CD
in	IN
assistance	NN
from	IN
the	DT
RTC	NNP
.	.

The	DT
following	JJ
issues	NNS
were	VBD
recently	RB
filed	VBD
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
:	:

American	JJ
Cyanamid	NNP
Co.	NNP
,	,
offering	VBG
of	IN
1,250,000	CD
common	JJ
shares	NNS
,	,
via	IN
Merrill	NNP
Lynch	NNP
Capital	NNP
Markets	NNPS
.	.

Limited	NNP
Inc.	NNP
,	,
offering	VBG
of	IN
up	RP
to	TO
$	$
300	CD
million	CD
of	IN
debt	NN
securities	NNS
and	CC
warrants	NNS
.	.

Nuveen	NNP
California	NNP
Performance	NNP
Plus	NNP
Municipal	JJ
Fund	NNP
Inc.	NNP
,	,
initial	JJ
offering	VBG
of	IN
five	CD
million	CD
common	JJ
shares	NNS
,	,
via	IN
Alex	NNP
.	.
Brown	NNP
&	CC
Sons	NNPS
Inc.	NNP
,	,
John	NNP
Nuveen	NNP
&	CC
Co.	NNP
,	,
Prudential-Bache	NNP
Capital	NNP
Funding	NNP
,	,
and	CC
Bateman	NNP
Eichler	VB
,	,
Hill	NNP
Richards	NNP
.	.

PacifiCare	IN
Health	NNP
Systems	NNPS
Inc.	NNP
,	,
proposed	VBN
offering	VBG
of	IN
1.5	CD
million	CD
common	JJ
shares	NNS
,	,
of	IN
which	WDT
700,000	CD
shares	NNS
will	MD
be	VB
offered	VBD
by	IN
PacifiCare	VB
and	CC
800,000	CD
shares	NNS
by	IN
UniHealth	VB
America	NNP
Inc	NNP
.	.
(	(
PacifiCare	VB
's	POS
71	CD
%	NN
)	)
,	,
via	IN
Dillon	NNP
,	,
Read	NNP
&	CC
Co.	NNP
Inc.	NNP
,	,
Goldman	NNP
,	,
Sachs	NNP
&	CC
Co.	NNP
and	CC
Dean	NNP
Witter	NNP
Reynolds	NNP
Inc	NNP
.	.

Pricor	IN
Inc.	NNP
,	,
offering	VBG
of	IN
one	CD
million	CD
new	JJ
shares	NNS
of	IN
common	JJ
stock	NN
and	CC
300,000	CD
shares	NNS
by	IN
holders	NNS
,	,
via	IN
Drexel	NNP
Burnham	NNP
Lambert	NNP
Inc.	NNP
and	CC
J.C.	NNP
Bradford	NNP
&	CC
Co	NNP
.	.

Trans	NNP
World	NNP
Airlines	NNPS
Inc.	NNP
,	,
offering	VBG
of	IN
$	$
150	CD
million	CD
senior	JJ
notes	NNS
,	,
via	IN
Drexel	NNP
Burnham	NNP
.	.

Time	NNP
magazine	NN
,	,
in	IN
a	DT
move	NN
to	TO
reduce	VB
the	DT
costs	NNS
of	IN
wooing	VBG
new	JJ
subscribers	NNS
,	,
is	VBZ
lowering	VBG
its	PRP$
circulation	NN
guarantee	VB
to	TO
advertisers	NNS
for	IN
the	DT
second	NN
consecutive	JJ
year	NN
,	,
increasing	VBG
its	PRP$
subscription	NN
rates	NNS
and	CC
cutting	VBG
back	RB
on	IN
merchandise	NN
giveaways	NNS
.	.

In	IN
an	DT
announcement	NN
to	TO
its	PRP$
staff	NN
last	JJ
week	NN
,	,
executives	NNS
at	IN
Time	NNP
Warner	NNP
Inc.	NNP
's	POS
weekly	JJ
magazine	NN
said	VBD
Time	NNP
will	MD
``	``
dramatically	RB
de-emphasize	VB
''	''
its	PRP$
use	VBP
of	IN
electronic	JJ
giveaways	NNS
such	JJ
as	RB
telephones	NNS
in	IN
television	NN
subscription	NN
drives	VBZ
;	:
cut	VB
the	DT
circulation	NN
it	PRP
guarantees	VBZ
advertisers	NNS
by	IN
300,000	CD
,	,
to	TO
four	CD
million	CD
;	:
and	CC
increase	NN
the	DT
cost	NN
of	IN
its	PRP$
annual	JJ
subscription	NN
rate	NN
by	IN
about	IN
$	$
4	CD
to	TO
$	$
55	CD
.	.

In	IN
a	DT
related	VBN
development	NN
,	,
the	DT
news-weekly	VB
,	,
for	IN
the	DT
fourth	JJ
year	NN
in	IN
a	DT
row	NN
,	,
said	VBD
it	PRP
wo	MD
n't	RB
increase	NN
its	PRP$
advertising	NN
rates	NNS
in	IN
1990	CD
;	:
a	DT
full	JJ
,	,
four-color	JJ
page	NN
in	IN
the	DT
magazine	NN
costs	NNS
about	IN
$	$
120,000	CD
.	.

However	RB
,	,
because	IN
the	DT
guaranteed	VBN
circulation	NN
base	NN
is	VBZ
being	VBG
lowered	VBD
,	,
ad	NN
rates	NNS
will	MD
be	VB
effectively	RB
7.5	CD
%	NN
higher	JJR
per	IN
subscriber	NN
,	,
according	VBG
to	TO
Richard	NNP
Heinemann	NNP
,	,
Time	NNP
associate	JJ
publisher	NN
.	.

Time	NNP
is	VBZ
following	VBG
the	DT
course	NN
of	IN
some	DT
other	JJ
mass-circulation	VB
magazines	NNS
that	IN
in	IN
recent	JJ
years	NNS
have	VB
challenged	VBN
the	DT
publishing	VBG
myth	VB
that	IN
maintaining	VBG
artificially	RB
high	JJ
,	,
and	CC
expensive	JJ
,	,
circulations	VB
is	VBZ
the	DT
way	NN
to	TO
draw	VB
advertisers	NNS
.	.

In	IN
recent	JJ
years	NNS
,	,
Reader	NNP
's	POS
Digest	NNP
,	,
New	NNP
York	NNP
Times	NNP
Co.	NNP
's	POS
McCall	NNP
's	POS
,	,
and	CC
most	RBS
recently	RB
News	NNP
Corp.	NNP
's	POS
TV	NN
Guide	NNP
,	,
have	VB
cut	VB
their	PRP$
massive	JJ
circulation	NN
rate	NN
bases	NNS
to	TO
eliminate	VB
marginal	JJ
circulation	NN
and	CC
hold	VBP
down	IN
rates	NNS
for	IN
advertisers	NNS
.	.

Deep	JJ
discounts	NNS
in	IN
subscriptions	NNS
and	CC
offers	VBZ
of	IN
free	JJ
clock	NN
radios	NNS
and	CC
watches	NNS
have	VB
become	VB
accepted	VBD
forms	NNS
of	IN
attracting	VBG
new	JJ
subscribers	NNS
in	IN
the	DT
hyper-competitive	VB
world	NN
of	IN
magazine	NN
news-weeklies	VB
.	.

But	CC
Time	NNP
,	,
as	RB
part	NN
of	IN
the	DT
more	RBR
cost-conscious	JJ
Time	NNP
Warner	NNP
,	,
wants	VBZ
to	TO
wean	VB
itself	PRP
away	RB
from	IN
expensive	JJ
gimmicks	NNS
.	.

Besides	IN
,	,
Time	NNP
executives	NNS
think	VBP
selling	VBG
a	DT
news	NN
magazine	NN
with	IN
a	DT
clock	NN
radio	NN
is	VBZ
tacky	VB
.	.

``	``
Giveaways	VB
just	RB
give	VBP
people	NNS
the	DT
wrong	JJ
image	NN
,	,
''	''
said	VBD
Mr.	NNP
Heinemann	NNP
.	.

``	``
That	DT
perception	NN
takes	VBZ
the	DT
focus	NN
off	RP
the	DT
magazine	NN
.	.
''	''

Time	NNP
magazine	NN
executives	NNS
predictably	RB
paint	VB
the	DT
circulation	NN
cut	VB
as	RB
a	DT
show	NN
of	IN
strength	NN
and	CC
actually	RB
a	DT
benefit	NN
to	TO
advertisers	NNS
.	.

``	``
What	WP
we	PRP
are	VBP
doing	VBG
is	VBZ
screening	NN
out	IN
the	DT
readers	NNS
who	WP
are	VBP
only	RB
casually	RB
related	VBN
to	TO
the	DT
magazine	NN
and	CC
do	VB
n't	RB
really	RB
read	VBP
it	PRP
,	,
''	''
said	VBD
Mr.	NNP
Heinemann	NNP
.	.

``	``
We	PRP
are	VBP
trying	VBG
to	TO
create	VBP
quality	NN
and	CC
involvement	NN
.	.
''	''

However	RB
,	,
Time	NNP
executives	NNS
used	VBN
the	DT
same	JJ
explanation	NN
when	WRB
in	IN
October	NNP
1988	CD
the	DT
magazine	NN
cut	VB
its	PRP$
guaranteed	VBN
circulation	NN
from	IN
4.6	CD
million	CD
to	TO
4.3	CD
million	CD
.	.

And	CC
Time	NNP
's	POS
paid	VBN
circulation	NN
,	,
according	VBG
to	TO
Audit	NNP
Bureau	NNP
of	IN
Circulations	VB
,	,
dropped	VBD
7.3	CD
%	NN
to	TO
4,393,237	VB
in	IN
the	DT
six	CD
months	NNS
ended	VBD
June	NNP
30	CD
,	,
1989	CD
.	.

Still	RB
,	,
Time	NNP
's	POS
move	NN
is	VBZ
being	VBG
received	VBD
well	RB
,	,
once	RB
again	RB
.	.

``	``
It	NNP
's	POS
terrific	JJ
for	IN
advertisers	NNS
to	TO
know	VB
the	DT
reader	NN
will	MD
be	VB
paying	VBG
more	RBR
,	,
''	''
said	VBD
Michael	NNP
Drexler	VB
,	,
national	JJ
media	NNS
director	NN
at	IN
Bozell	NNP
Inc.	NNP
ad	NN
agency	NN
.	.

``	``
A	DT
few	JJ
drops	NNS
in	IN
circulation	NN
are	VBP
of	IN
no	DT
consequence	NN
.	.

It	NNP
's	POS
not	RB
a	DT
show	NN
of	IN
weakness	NN
;	:
they	PRP
are	VBP
improving	VBG
the	DT
quality	NN
of	IN
circulation	NN
while	IN
insuring	VBG
their	PRP$
profits	NNS
.	.
''	''

Mr.	NNP
Heinemann	NNP
said	VBD
the	DT
changes	NNS
represent	VB
a	DT
new	JJ
focus	NN
in	IN
the	DT
magazine	NN
industry	NN
:	:
a	DT
magazine	NN
's	POS
net	JJ
revenue	NN
per	IN
subscriber	NN
,	,
or	CC
the	DT
actual	JJ
revenue	NN
from	IN
subscribers	NNS
after	IN
discounts	NNS
and	CC
the	DT
cost	NN
of	IN
premiums	NNS
have	VB
been	VBN
stripped	VBN
away	RB
.	.

``	``
The	DT
question	VBP
is	VBZ
how	WRB
much	JJ
are	VBP
we	PRP
getting	VBG
from	IN
each	DT
reader	NN
,	,
''	''
said	VBD
Mr.	NNP
Heinemann	NNP
.	.

Time	NNP
's	POS
rivals	NNS
news-weeklies	VB
,	,
Washington	NNP
Post	NNP
Co.	NNP
's	POS
Newsweek	NNP
and	CC
U.S.	NNP
News	NNP
&	CC
World	NNP
Report	NNP
,	,
are	VBP
less	RBR
reliant	VB
on	IN
electronic	JJ
giveaways	NNS
,	,
and	CC
in	IN
recent	JJ
years	NNS
both	DT
have	VB
been	VBN
increasing	VBG
their	PRP$
circulation	NN
rate	NN
bases	NNS
.	.

Both	DT
magazines	NNS
are	VBP
expected	VBN
to	TO
announce	VB
their	PRP$
ad	NN
rates	NNS
and	CC
circulation	NN
levels	NNS
for	IN
1990	CD
within	IN
a	DT
month	NN
.	.

When	WRB
the	DT
news	NN
broke	VBD
of	IN
an	DT
attempted	VBD
coup	NN
in	IN
Panama	NNP
two	CD
weeks	NNS
ago	IN
,	,
Sen.	NNP
Christopher	NNP
Dodd	NNP
called	VBN
the	DT
State	NNP
Department	NNP
for	IN
a	DT
briefing	NN
.	.

``	``
They	PRP
said	VBD
,	,
`	``
follow	VB
CNN	NNP
,	,
'	POS
''	''
he	PRP
told	VBD
reporters	NNS
.	.

That	DT
shows	NNS
how	WRB
far	JJ
Ted	NNP
Turner	NNP
's	POS
Cable	NNP
News	NNP
Network	NN
has	VBZ
come	VBP
since	IN
its	PRP$
birth	NN
nine	CD
years	NNS
ago	IN
,	,
when	WRB
it	PRP
was	VBD
considered	VBN
the	DT
laughingstock	NN
of	IN
television	NN
news	NN
.	.

It	NNP
is	VBZ
bigger	JJR
,	,
faster	RBR
and	CC
more	RBR
profitable	JJ
than	IN
the	DT
news	NN
divisions	NNS
of	IN
any	DT
of	IN
the	DT
three	CD
major	JJ
broadcast	NN
networks	NNS
.	.

Its	PRP$
niche	NN
as	RB
the	DT
``	``
network	NN
of	IN
record	NN
''	''
during	IN
major	JJ
crises	NNS
draws	VBZ
elite	NNS
audiences	NNS
around	IN
the	DT
world	NN
.	.

But	CC
for	IN
all	DT
its	PRP$
success	NN
,	,
CNN	NNP
has	VBZ
hit	VBD
a	DT
plateau	NN
.	.

Although	IN
viewership	NN
soars	NN
when	WRB
big	JJ
news	NN
breaks	VBZ
,	,
it	PRP
ebbs	VBZ
during	IN
periods	NNS
of	IN
calm	JJ
.	.

CNN	NNP
executives	NNS
worry	VB
that	IN
the	DT
network	NN
's	POS
punchy	VB
but	CC
repetitive	JJ
news	NN
format	NN
may	MD
be	VB
getting	VBG
stale	JJ
and	CC
wo	MD
n't	RB
keep	VB
viewers	NNS
coming	VBG
back	RB
as	RB
the	DT
alternatives	NNS
multiply	VB
for	IN
news	NN
and	CC
information	NN
on	IN
cable-TV	NN
.	.

``	``
Just	RB
the	DT
fact	NN
we	PRP
're	VBP
on	IN
24	CD
hours	NNS
is	VBZ
no	DT
longer	RB
bulletin	NN
,	,
''	''
says	VBZ
Ed	NNP
Turner	NNP
,	,
CNN	NNP
's	POS
executive	NN
vice	NN
president	NN
,	,
news	NN
gathering	NN
(	(
and	CC
no	DT
relation	NN
to	TO
Ted	NNP
Turner	NNP
)	)
.	.

``	``
You	PRP
ca	MD
n't	RB
live	VB
on	IN
that	IN
.	.
''	''

So	IN
CNN	NNP
,	,
a	DT
unit	NN
of	IN
Atlanta-based	JJ
Turner	NNP
Broadcasting	NNP
System	NNP
Inc.	NNP
,	,
is	VBZ
trying	VBG
to	TO
reposition	VB
itself	PRP
as	RB
a	DT
primary	JJ
channel	NN
,	,
or	CC
what	WP
people	NNS
in	IN
the	DT
television	NN
industry	NN
call	VB
a	DT
``	``
top	NN
of	IN
mind	NN
''	''
network	NN
.	.

Tonight	NNP
,	,
to	TO
kick	VB
off	RP
the	DT
effort	NN
,	,
CNN	NNP
will	MD
premiere	JJ
its	PRP$
first	JJ
prime-time	JJ
newscast	NN
in	IN
years	NNS
,	,
an	DT
hourlong	VB
show	NN
at	IN
6	CD
p.m	RB
.	.
Eastern	NNP
time	NN
to	TO
air	NN
head-to-head	VB
against	IN
the	DT
network	NN
newscasts	NNS
.	.

The	DT
show	NN
will	MD
be	VB
co-anchored	VB
by	IN
Bernard	NNP
Shaw	NNP
and	CC
Catherine	NNP
Crier	VB
,	,
a	DT
34-year-old	VB
former	JJ
Texas	NNP
judge	NN
and	CC
campus	NN
beauty	NN
queen	NN
who	WP
has	VBZ
never	RB
held	VBD
a	DT
job	NN
in	IN
television	NN
or	CC
journalism	NN
.	.

The	DT
new	JJ
show	NN
is	VBZ
perhaps	RB
the	DT
boldest	JJS
in	IN
a	DT
number	NN
of	IN
steps	NNS
the	DT
network	NN
is	VBZ
taking	VBG
to	TO
build	VB
audience	NN
loyalty	NN
by	IN
shifting	VBG
away	RB
from	IN
its	PRP$
current	NN
format	NN
toward	IN
more	RBR
full-length	VB
``	``
signature	NN
''	''
programming	NN
with	IN
recognizable	JJ
stars	NNS
.	.

To	TO
distinguish	VB
itself	PRP
,	,
CNN	NNP
is	VBZ
also	RB
expanding	VBG
international	JJ
coverage	NN
and	CC
adding	VBG
a	DT
second	NN
global-news	VB
program	NN
.	.

It	NNP
is	VBZ
paying	VBG
higher	JJR
salaries	NNS
--	:
after	IN
years	NNS
of	IN
scrimping	VBG
--	:
to	TO
lure	NN
and	CC
keep	VB
experienced	VBN
staffers	NNS
.	.

And	CC
it	PRP
is	VBZ
embarking	VB
on	IN
an	DT
expensive	JJ
gamble	NN
to	TO
break	VB
major	JJ
stories	NNS
with	IN
a	DT
large	JJ
investigative-reporting	VB
team	NN
.	.

``	``
The	DT
next	JJ
stage	NN
is	VBZ
to	TO
get	VB
beyond	IN
the	DT
opinion	NN
leaders	NNS
who	WP
use	VBP
us	PRP
as	RB
a	DT
point	VBP
of	IN
reference	NN
to	TO
become	VB
a	DT
point	VBP
of	IN
reference	NN
at	IN
ordinary	JJ
dinner	NN
tables	NNS
,	,
''	''
says	VBZ
Jon	NNP
Petrovich	NNP
,	,
executive	NN
vice	NN
president	NN
of	IN
Headline	VB
News	NNP
,	,
CNN	NNP
's	POS
sister	NN
network	NN
.	.

But	CC
that	IN
wo	MD
n't	RB
be	VB
easy	JJ
.	.

Networks	NNP
,	,
like	IN
other	JJ
consumer	NN
products	NNS
,	,
develop	VB
images	NNS
in	IN
peoples	NNS
'	POS
minds	NNS
that	IN
are	VBP
n't	RB
easy	JJ
to	TO
change	NN
.	.

It	NNP
also	RB
takes	VBZ
money	NN
that	IN
CNN	NNP
has	VBZ
been	VBN
reluctant	JJ
to	TO
spend	VBP
to	TO
make	VBP
programs	NNS
and	CC
hire	VB
talent	NN
that	IN
viewers	NNS
will	MD
tune	NN
in	IN
specially	RB
to	TO
see	VB
.	.

And	CC
the	DT
cable-TV	NN
operators	NNS
--	:
CNN	NNP
's	POS
distributors	NNS
and	CC
part	NN
owners	NNS
--	:
like	IN
things	NNS
just	RB
the	DT
way	NN
they	PRP
are	VBP
.	.

The	DT
repositioning	NN
bid	NN
is	VBZ
aimed	VBN
at	IN
CNN	NNP
's	POS
unsteady	JJ
viewership	NN
--	:
and	CC
what	WP
may	MD
happen	VB
to	TO
it	PRP
as	RB
the	DT
cable-TV	NN
news	NN
market	NN
grows	VBZ
more	RBR
competitive	JJ
.	.

Already	RB
,	,
CNN	NNP
is	VBZ
facing	VBG
stronger	JJR
competition	NN
from	IN
Financial	NNP
News	NNP
Network	NN
Inc.	NNP
and	CC
General	NNP
Electric	NNP
Co.	NNP
's	POS
Consumer	NNP
News	NNP
and	CC
Business	NNP
Channel	NNP
,	,
both	DT
of	IN
which	WDT
are	VBP
likely	JJ
to	TO
pursue	VB
more	RBR
general	NN
news	NN
in	IN
the	DT
future	NN
.	.

In	IN
addition	NN
,	,
many	JJ
cable-TV	NN
systems	NNS
themselves	PRP
are	VBP
airing	VBG
more	RBR
local	JJ
and	CC
regional	JJ
news	NN
programs	NNS
produced	VBD
by	IN
local	JJ
broadcast	NN
stations	NNS
.	.

CNN	NNP
wants	VBZ
to	TO
change	NN
its	PRP$
viewers	NNS
'	POS
habits	NNS
.	.

Its	PRP$
watchers	NNS
are	VBP
,	,
on	IN
the	DT
whole	JJ
,	,
a	DT
disloyal	JJ
group	NN
of	IN
channel-zapping	VB
``	``
grazers	VB
''	''
and	CC
news	NN
junkies	VB
,	,
who	WP
spend	VBP
an	DT
average	NN
of	IN
just	RB
26	CD
minutes	NNS
a	DT
day	NN
watching	VBG
CNN	NNP
,	,
according	VBG
to	TO
audience	NN
research	NN
.	.

That	DT
's	VBZ
less	RBR
than	IN
one-third	NN
the	DT
time	NN
that	IN
viewers	NNS
watch	NN
the	DT
major	JJ
broadcast	NN
networks	NNS
.	.

The	DT
brief	JJ
attention	NN
viewers	NNS
give	VBP
CNN	NNP
could	MD
put	VBN
it	PRP
at	IN
a	DT
disadvantage	NN
as	RB
ratings	NNS
data	NNS
,	,
and	CC
advertising	NN
,	,
become	VB
more	RBR
important	JJ
to	TO
cable-TV	NN
channels	NNS
.	.

CNN	NNP
's	POS
viewer	NN
habits	NNS
have	VB
been	VBN
molded	VB
by	IN
its	PRP$
format	NN
.	.

Its	PRP$
strategy	NN
in	IN
the	DT
past	IN
has	VBZ
been	VBN
to	TO
serve	VB
as	RB
a	DT
TV	NN
wire	NN
service	VB
.	.

It	NNP
focused	VBD
on	IN
building	NN
up	RP
its	PRP$
news	NN
bureaus	NNS
around	IN
the	DT
world	NN
,	,
so	RB
as	RB
events	NNS
took	VBD
place	NN
it	PRP
could	MD
go	VB
live	VB
quicker	JJR
and	CC
longer	RB
than	IN
other	JJ
networks	NNS
.	.

It	NNP
filled	VBN
its	PRP$
daily	JJ
schedule	NN
with	IN
newscasts	NNS
called	VBN
``	``
Daybreak	VB
,	,
''	''
``	``
Daywatch	VB
,	,
''	''
``	``
Newsday	NNP
,	,
''	''
and	CC
``	``
Newsnight	VB
,	,
''	''
but	CC
the	DT
shows	VBZ
varied	JJ
little	RB
in	IN
content	NN
,	,
personality	NN
or	CC
look	VB
.	.

Now	RB
,	,
the	DT
push	VB
is	VBZ
on	IN
for	IN
more-distinctive	VB
shows	VBZ
.	.

``	``
Our	PRP$
goal	NN
is	VBZ
to	TO
create	VBP
more	RBR
programs	NNS
with	IN
an	DT
individual	JJ
identity	NN
,	,
''	''
says	VBZ
Paul	NNP
Amos	VB
,	,
CNN	NNP
executive	NN
vice	NN
president	NN
for	IN
programming	NN
.	.

Accordingly	RB
,	,
CNN	NNP
is	VBZ
adding	VBG
a	DT
world-affairs	VB
show	NN
in	IN
the	DT
morning	NN
because	IN
surveys	NNS
show	NN
its	PRP$
global-news	VB
hour	NN
in	IN
the	DT
afternoon	NN
is	VBZ
among	IN
its	PRP$
most	RBS
``	``
differentiated	VB
''	''
programs	NNS
in	IN
viewers	NNS
'	POS
minds	NNS
,	,
says	VBZ
Mr.	NNP
Amos	VB
.	.

And	CC
it	PRP
is	VBZ
exploring	VBG
other	JJ
original	JJ
programs	NNS
,	,
similar	JJ
to	TO
its	PRP$
``	``
Larry	NNP
King	NNP
Live	NNP
''	''
and	CC
``	``
Crossfire	VB
''	''
talk	NN
shows	VBZ
,	,
which	WDT
executives	NNS
hope	VBP
will	MD
keep	VB
people	NNS
tuned	VBN
in	IN
.	.

Then	RB
there	EX
's	POS
``	``
The	DT
World	NNP
Today	NN
,	,
''	''
the	DT
prime-time	JJ
newscast	NN
featuring	VBG
Mr.	NNP
Shaw	NNP
and	CC
Ms.	NNP
Crier	VB
.	.

Until	IN
now	RB
,	,
CNN	NNP
has	VBZ
featured	VBN
its	PRP$
Hollywood	NNP
gossip	NN
show	NN
during	IN
the	DT
key	JJ
evening	NN
period	NN
.	.

But	CC
70	CD
%	NN
of	IN
the	DT
cable-television-equipped	VB
households	NNS
that	IN
watch	NN
news	NN
do	VB
so	RB
between	IN
6:30	CD
p.m.	NN
and	CC
7	CD
p.m.	NN
,	,
the	DT
network	NN
discovered	VBN
,	,
so	RB
CNN	NNP
wants	VBZ
in	IN
.	.

Mr.	NNP
Amos	VB
says	VBZ
the	DT
Shaw-Crier	VB
team	NN
will	MD
probably	RB
do	VB
two	CD
live	VB
interviews	NNS
a	DT
day	NN
,	,
with	IN
most	RBS
of	IN
the	DT
program	NN
,	,
at	IN
least	JJS
for	IN
now	RB
,	,
appearing	VBG
similar	JJ
to	TO
CNN	NNP
's	POS
other	JJ
newcasts	VB
.	.

Some	DT
in	IN
the	DT
industry	NN
are	VBP
skeptical	JJ
.	.

``	``
I	PRP
find	VB
it	PRP
hard	RB
to	TO
conceive	VB
of	IN
people	NNS
switching	VBG
over	IN
to	TO
CNN	NNP
for	IN
what	WP
,	,
at	IN
least	JJS
in	IN
the	DT
public	JJ
's	POS
mind	NN
,	,
is	VBZ
the	DT
same	JJ
news	NN
,	,
''	''
says	VBZ
Reuven	NNP
Frank	NNP
,	,
the	DT
former	JJ
two-time	VB
president	NN
of	IN
NBC	NNP
News	NNP
and	CC
creator	NN
of	IN
the	DT
Huntley-Brinkley	VB
Report	NNP
.	.

The	DT
evening	NN
news	NN
is	VBZ
also	RB
slated	VBN
as	RB
CNN	NNP
's	POS
stage	NN
for	IN
its	PRP$
big	JJ
push	VB
into	IN
investigative	JJ
journalism	NN
.	.

In	IN
August	NNP
,	,
the	DT
network	NN
hired	VBN
award-winning	VB
producer	NN
Pamela	NNP
Hill	NNP
,	,
the	DT
former	JJ
head	VB
of	IN
news	NN
specials	NNS
at	IN
ABC	NNP
.	.

She	PRP
's	POS
assembling	VBG
a	DT
staff	NN
of	IN
about	IN
35	CD
investigative	JJ
reporters	NNS
who	WP
will	MD
produce	VB
weekly	JJ
,	,
in-depth	JJ
segments	NNS
,	,
with	IN
an	DT
eye	NN
toward	IN
breaking	VBG
big	JJ
stories	NNS
.	.

CNN	NNP
executives	NNS
hope	VBP
the	DT
headlines	NNS
created	VBN
by	IN
such	JJ
scoops	VBZ
will	MD
generate	VB
excitement	NN
for	IN
its	PRP$
``	``
branded	VB
''	''
programs	NNS
,	,
in	IN
the	DT
way	NN
``	``
60	CD
Minutes	NNPS
''	''
did	VBD
so	RB
well	RB
for	IN
CBS	NNP
.	.

That	DT
's	VBZ
such	JJ
a	DT
departure	NN
from	IN
the	DT
past	IN
that	IN
many	JJ
in	IN
the	DT
industry	NN
are	VBP
skeptical	JJ
CNN	NNP
will	MD
follow	VB
through	IN
with	IN
its	PRP$
investigative	JJ
commitment	NN
,	,
especially	RB
after	IN
it	PRP
sees	VBZ
the	DT
cost	NN
of	IN
producing	VBG
in-depth	JJ
pieces	NNS
.	.

``	``
They	PRP
've	VBP
never	RB
shown	VBN
any	DT
inclination	NN
to	TO
spend	VBP
money	NN
on	IN
production	NN
,	,
''	''
says	VBZ
Michael	NNP
Mosettig	VB
,	,
a	DT
senior	JJ
producer	NN
with	IN
MacNeil-Lehrer	VB
NewsHour	VB
,	,
who	WP
notes	NNS
that	IN
CNN	NNP
is	VBZ
indispensable	VB
to	TO
his	PRP$
job	NN
.	.

The	DT
network	NN
's	POS
salaries	NNS
have	VB
always	RB
ranged	VBD
far	JJ
below	IN
industry	NN
standards	NNS
,	,
resulting	VBG
in	IN
a	DT
less-experienced	VB
work	NN
force	NN
.	.

CNN	NNP
recently	RB
gave	VBD
most	RBS
employees	NNS
raises	VBZ
of	IN
as	RB
much	JJ
as	RB
15	CD
%	NN
,	,
but	CC
they	PRP
're	VBP
still	RB
drastically	RB
underpaid	JJ
compared	VBN
with	IN
the	DT
networks	NNS
.	.

Says	VBZ
Mr.	NNP
Mosettig	VB
:	:
``	``
CNN	NNP
is	VBZ
my	PRP$
wire	NN
service	VB
;	:
they	PRP
're	VBP
on	IN
top	NN
of	IN
everything	NN
.	.

But	CC
to	TO
improve	VB
,	,
they	PRP
've	VBP
really	RB
got	VBD
to	TO
make	VBP
the	DT
investment	NN
in	IN
people	NNS
.	.
''	''

In	IN
any	DT
case	NN
,	,
cable-TV-system	VB
operators	NNS
have	VB
reason	NN
to	TO
fear	VBP
any	DT
tinkering	VBG
with	IN
CNN	NNP
's	POS
format	NN
.	.

They	PRP
market	NN
cable-TV	NN
on	IN
the	DT
very	RB
grazing	NN
opportunities	NNS
CNN	NNP
seeks	VBZ
to	TO
discourage	VB
.	.

``	``
We	PRP
would	MD
obviously	RB
be	VB
upset	JJ
if	IN
those	DT
kinds	NNS
of	IN
services	NNS
evolved	VBN
into	IN
more	RBR
general-interest	VB
,	,
long-format	VB
programming	NN
,	,
''	''
says	VBZ
Robert	NNP
Stengel	VB
,	,
senior	JJ
vice	NN
president	NN
,	,
programming	NN
,	,
of	IN
Continental	NNP
Cablevision	NNP
Inc.	NNP
,	,
which	WDT
holds	VBZ
a	DT
2	LS
%	NN
stake	NN
in	IN
Turner	NNP
Broadcasting	NNP
.	.

The	DT
Second	JJ
U.S.	NNP
Circuit	NN
Court	NNP
of	IN
Appeals	NNPS
opinion	NN
in	IN
the	DT
Arcadian	VB
Phosphate	VB
case	NN
did	VBD
not	RB
repudiate	VB
the	DT
position	NN
Pennzoil	NNP
Co.	NNP
took	VBD
in	IN
its	PRP$
dispute	NN
with	IN
Texaco	NNP
,	,
contrary	NN
to	TO
your	PRP$
Sept.	NNP
8	CD
article	NN
``	``
Court	NNP
Backs	VB
Texaco	NNP
's	POS
View	NNP
in	IN
Pennzoil	NNP
Case	NNP
--	:
Too	NNP
Late	JJ
.	.
''	''

The	DT
fundamental	JJ
rule	VB
of	IN
contract	NN
law	NN
applied	VBN
to	TO
both	DT
cases	NNS
was	VBD
that	IN
courts	NNS
will	MD
not	RB
enforce	VB
agreements	NNS
to	TO
which	WDT
the	DT
parties	NNS
did	VBD
not	RB
intend	VB
to	TO
be	VB
bound	VBN
.	.

In	IN
the	DT
Pennzoil\/Texaco	VB
litigation	NN
,	,
the	DT
courts	NNS
found	VBD
Pennzoil	NNP
and	CC
Getty	NNP
Oil	NNP
intended	VBN
to	TO
be	VB
bound	VBN
;	:
in	IN
Arcadian	VB
Phosphates	VB
they	PRP
found	VBD
there	EX
was	VBD
no	DT
intention	NN
to	TO
be	VB
bound	VBN
.	.

Admittedly	RB
,	,
the	DT
principle	NN
in	IN
the	DT
cases	NNS
is	VBZ
the	DT
same	JJ
.	.

But	CC
the	DT
outcome	NN
of	IN
a	DT
legal	JJ
dispute	NN
almost	RB
always	RB
turns	VBZ
on	IN
the	DT
facts	NNS
.	.

And	CC
the	DT
facts	NNS
,	,
as	RB
found	VBD
by	IN
the	DT
various	JJ
courts	NNS
in	IN
these	DT
two	CD
lawsuits	NNS
,	,
were	VBD
different	JJ
.	.

When	WRB
you	PRP
suggest	VBP
otherwise	RB
,	,
you	PRP
leave	VB
the	DT
realm	NN
of	IN
reporting	VBG
and	CC
enter	VB
the	DT
orbit	NN
of	IN
speculation	NN
.	.

Charles	NNP
F.	NNP
Vihon	VB

Valley	NNP
Federal	NNP
Savings	NNP
&	CC
Loan	NNP
Association	NNP
said	VBD
Imperial	NNP
Corp.	NNP
of	IN
America	NNP
withdrew	VBD
from	IN
regulators	NNS
its	PRP$
application	NN
to	TO
buy	VB
five	CD
Valley	NNP
Federal	NNP
branches	NNS
,	,
leaving	VBG
the	DT
transaction	NN
in	IN
limbo	NN
.	.

The	DT
broken	JJ
purchase	VB
appears	VBZ
as	RB
additional	JJ
evidence	NN
of	IN
trouble	NN
at	IN
Imperial	NNP
Corp.	NNP
,	,
whose	WP$
spokesman	NN
said	VBD
the	DT
company	NN
withdrew	VBD
its	PRP$
application	NN
from	IN
the	DT
federal	JJ
Office	NN
of	IN
Thrift	NN
Supervision	NNP
because	IN
of	IN
an	DT
informal	JJ
notice	NN
that	IN
Imperial	NNP
's	POS
thrift	NN
unit	NN
failed	VBN
to	TO
meet	VB
Community	NNP
Reinvestment	NNP
Act	NNP
requirements	NNS
.	.

The	DT
Community	NNP
Reinvestment	NNP
Act	NNP
requires	VBZ
savings	NNS
and	CC
loan	NN
associations	NNS
to	TO
lend	VB
money	NN
in	IN
amounts	NNS
related	VBN
to	TO
areas	NNS
where	WRB
deposits	NNS
are	VBP
received	VBD
.	.

The	DT
transaction	NN
,	,
announced	VBD
in	IN
August	NNP
,	,
included	VBN
about	IN
$	$
146	CD
million	CD
in	IN
deposits	NNS
at	IN
the	DT
five	CD
outlets	NNS
in	IN
California	NNP
's	POS
San	NNP
Joaquin	NNP
Valley	NNP
.	.

Terms	NNS
were	VBD
n't	RB
disclosed	VBN
,	,
but	CC
Valley	NNP
Federal	NNP
had	VBD
said	VBD
it	PRP
expected	VBN
to	TO
post	NN
a	DT
modest	JJ
pretax	NN
gain	NN
and	CC
to	TO
save	VB
about	IN
$	$
2	LS
million	CD
in	IN
operating	VBG
costs	NNS
annually	RB
.	.

Valley	NNP
Federal	NNP
said	VBD
Friday	NNP
that	IN
it	PRP
is	VBZ
considering	VBG
whether	IN
to	TO
seek	VBP
another	DT
buyer	NN
for	IN
the	DT
branches	NNS
or	CC
to	TO
pursue	VB
the	DT
transaction	NN
with	IN
Imperial	NNP
Corp.	NNP
,	,
which	WDT
said	VBD
it	PRP
is	VBZ
attempting	VBG
to	TO
meet	VB
Community	NNP
Reinvestment	NNP
Act	NNP
requirements	NNS
.	.

Valley	NNP
Federal	NNP
,	,
with	IN
assets	NNS
of	IN
$	$
3.3	CD
billion	CD
,	,
is	VBZ
based	VBN
in	IN
Van	NNP
Nuys	NNP
.	.

Imperial	NNP
Corp.	NNP
,	,
based	VBN
in	IN
San	NNP
Diego	NNP
,	,
is	VBZ
the	DT
parent	NN
of	IN
Imperial	NNP
Savings	NNP
&	CC
Loan	NNP
.	.

In	IN
the	DT
first	JJ
six	CD
months	NNS
of	IN
the	DT
year	NN
it	PRP
posted	VBD
a	DT
net	JJ
loss	NN
of	IN
$	$
33.1	CD
million	CD
.	.

Call	VB
it	PRP
the	DT
``	``
we	PRP
're	VBP
too	RB
broke	VBD
to	TO
fight	VB
''	''
defense	NN
.	.

Lawyers	NNS
for	IN
dozens	NNS
of	IN
insolvent	JJ
savings	NNS
and	CC
loan	NN
associations	NNS
are	VBP
trying	VBG
a	DT
new	JJ
tack	NN
in	IN
their	PRP$
efforts	NNS
to	TO
defuse	VB
suits	NNS
filed	VBD
by	IN
borrowers	NNS
,	,
developers	NNS
and	CC
creditors	NNS
.	.

The	DT
thrifts	NNS
'	POS
lawyers	NNS
claim	NN
that	IN
the	DT
suits	NNS
,	,
numbering	VB
700	CD
to	TO
1,000	CD
in	IN
Texas	NNP
alone	RB
,	,
should	MD
be	VB
dismissed	VBD
as	RB
moot	VB
because	IN
neither	CC
the	DT
S&Ls	NNS
nor	CC
the	DT
extinct	JJ
Federal	NNP
Savings	NNP
and	CC
Loan	NNP
Insurance	NNP
Corp.	NNP
has	VBZ
the	DT
money	NN
to	TO
pay	VB
judgments	NNS
.	.

Though	IN
the	DT
argument	NN
may	MD
have	VB
a	DT
common-sense	JJ
ring	VBP
to	TO
it	PRP
,	,
even	RB
the	DT
S&L	NN
lawyers	NNS
concede	VBP
there	EX
's	POS
little	RB
precedent	NN
to	TO
back	RB
their	PRP$
position	NN
.	.

Still	RB
,	,
one	CD
federal	JJ
appeals	NNS
court	NN
has	VBZ
signaled	VBD
it	PRP
's	POS
willing	JJ
to	TO
entertain	VB
the	DT
notion	NN
,	,
and	CC
the	DT
lawyers	NNS
have	VB
renewed	VBN
their	PRP$
arguments	NNS
in	IN
Texas	NNP
and	CC
eight	CD
other	JJ
states	NNS
where	WRB
the	DT
defense	NN
is	VBZ
permitted	VBN
under	IN
state	NN
law	NN
.	.

The	DT
dismissal	NN
of	IN
the	DT
pending	VBG
suits	NNS
could	MD
go	VB
a	DT
long	JJ
way	NN
toward	IN
clearing	NN
court	NN
dockets	VB
in	IN
Texas	NNP
and	CC
reducing	VBG
the	DT
FSLIC	VB
's	POS
massive	JJ
legal	JJ
bills	NNS
,	,
which	WDT
topped	VBD
$	$
73	CD
million	CD
last	JJ
year	NN
.	.

The	DT
S&L	NN
lawyers	NNS
were	VBD
encouraged	VBN
last	JJ
month	NN
by	IN
an	DT
appellate-court	VB
ruling	NN
in	IN
two	CD
cases	NNS
brought	VBD
against	IN
defunct	VB
Sunbelt	VB
Savings	NNP
&	CC
Loan	NNP
Association	NNP
of	IN
Dallas	NNP
by	IN
the	DT
developers	NNS
of	IN
the	DT
Valley	NNP
Ranch	NNP
,	,
best	JJS
known	VBN
as	RB
the	DT
training	NN
center	NN
for	IN
the	DT
Dallas	NNP
Cowboys	NNPS
football	NN
team	NN
.	.

Sunbelt	IN
foreclosed	JJ
on	IN
the	DT
ranch	NN
.	.

Sunbelt	IN
and	CC
the	DT
FSLIC	VB
argued	VBD
to	TO
the	DT
Fifth	NNP
U.S.	NNP
Circuit	NN
Court	NNP
of	IN
Appeals	NNPS
``	``
that	IN
there	EX
will	MD
never	RB
be	VB
any	DT
assets	NNS
with	IN
which	WDT
to	TO
satisfy	VB
a	DT
judgment	NN
against	IN
Sunbelt	VB
Savings	NNP
nor	CC
any	DT
means	VBZ
to	TO
collect	VBP
from	IN
any	DT
other	JJ
party	NN
,	,
including	VBG
FSLIC	VB
.	.
''	''

``	``
If	IN
true	JJ
,	,
''	''
the	DT
court	NN
wrote	VBD
,	,
``	``
this	DT
contention	NN
would	MD
justify	VB
dismissal	NN
of	IN
these	DT
actions	NNS
on	IN
prudential	VB
grounds	NNS
.	.
''	''

But	CC
the	DT
court	NN
said	VBD
it	PRP
lacked	VBD
enough	RB
financial	JJ
information	NN
about	IN
Sunbelt	VB
and	CC
the	DT
FSLIC	VB
and	CC
sent	VBD
the	DT
cases	NNS
back	RB
to	TO
federal	JJ
district	NN
court	NN
in	IN
Dallas	NNP
.	.

Charles	NNP
Haworth	VB
,	,
a	DT
lawyer	NN
for	IN
Sunbelt	VB
,	,
says	VBZ
he	PRP
plans	NNS
to	TO
file	NN
a	DT
brief	NN
this	DT
week	NN
urging	VBG
the	DT
district	NN
judge	NN
to	TO
dismiss	VB
the	DT
suits	NNS
,	,
because	IN
Sunbelt	VB
's	POS
liabilities	NNS
exceeded	VBN
its	PRP$
assets	NNS
by	IN
about	IN
$	$
2	LS
billion	CD
when	WRB
federal	JJ
regulators	NNS
closed	VBN
it	PRP
in	IN
August	NNP
1988	CD
.	.

``	``
This	DT
institution	NN
is	VBZ
just	RB
brain	NN
dead	JJ
,	,
''	''
says	VBZ
Mr.	NNP
Haworth	VB
,	,
a	DT
partner	NN
in	IN
the	DT
Dallas	NNP
office	NN
of	IN
Andrews	NNP
&	CC
Kurth	VB
,	,
a	DT
Houston	NNP
law	NN
firm	JJ
.	.

But	CC
a	DT
lawyer	NN
for	IN
Triland	VB
Investment	NNP
Group	NNP
,	,
the	DT
developer	NN
of	IN
Valley	NNP
Ranch	NNP
,	,
dismisses	VBZ
such	JJ
arguments	NNS
as	RB
a	DT
``	``
defense	NN
du	NNP
jour	FW
.	.
''	''

Attorney	NNP
Richard	NNP
Jackson	NNP
of	IN
Dallas	NNP
says	VBZ
a	DT
judgment	NN
for	IN
Triland	VB
could	MD
be	VB
satisfied	VBN
in	IN
ways	NNS
other	JJ
than	IN
a	DT
monetary	JJ
award	VB
,	,
including	VBG
the	DT
reversal	NN
of	IN
Sunbelt	VB
's	POS
foreclosure	NN
on	IN
Valley	NNP
Ranch	NNP
.	.

``	``
We	PRP
're	VBP
asking	VBG
the	DT
court	NN
for	IN
a	DT
number	NN
of	IN
things	NNS
he	PRP
can	MD
grant	NN
in	IN
addition	NN
to	TO
the	DT
thrill	NN
of	IN
victory	NN
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
We	PRP
'd	MD
take	VB
the	DT
Valley	NNP
Ranch	NNP
free	JJ
and	CC
clear	VB
as	RB
a	DT
booby	VB
prize	NN
.	.

Kenneth	NNP
J.	NNP
Thygerson	VB
,	,
who	WP
was	VBD
named	VBN
president	NN
of	IN
this	DT
thrift	NN
holding	VBG
company	NN
in	IN
August	NNP
,	,
resigned	VBD
,	,
citing	VBG
personal	JJ
reasons	NNS
.	.

Mr.	NNP
Thygerson	VB
said	VBD
he	PRP
had	VBD
planned	VBD
to	TO
travel	NN
between	IN
the	DT
job	NN
in	IN
Denver	NNP
and	CC
his	PRP$
San	NNP
Diego	NNP
home	RB
,	,
but	CC
has	VBZ
found	VBD
the	DT
commute	NN
too	RB
difficult	JJ
to	TO
continue	VB
.	.

A	DT
new	JJ
president	NN
was	VBD
n't	RB
named	VBN
.	.

SOUTH	IN
AFRICA	NNP
FREED	VB
the	DT
ANC	NNP
's	POS
Sisulu	NNP
and	CC
seven	CD
other	JJ
political	JJ
prisoners	NNS
.	.

Thousands	NNS
of	IN
supporters	NNS
,	,
many	JJ
brandishing	VB
flags	NNS
of	IN
the	DT
outlawed	VBN
African	NNP
National	NNP
Congress	NNP
,	,
gave	VBD
the	DT
anti-apartheid	NN
activists	NNS
a	DT
tumultuous	JJ
reception	NN
upon	IN
their	PRP$
return	NN
to	TO
black	JJ
townships	NNS
across	IN
the	DT
country	NN
.	.

Most	RBS
of	IN
those	DT
freed	VBN
had	VBD
spent	VBN
at	IN
least	JJS
25	CD
years	NNS
in	IN
prison	NN
.	.

The	DT
77-year-old	JJ
Sisulu	NNP
,	,
sentenced	VBN
to	TO
life	NN
in	IN
1964	CD
along	IN
with	IN
black	JJ
nationalist	VB
Nelson	NNP
Mandela	NNP
for	IN
plotting	VBG
to	TO
overthrow	VB
the	DT
government	NN
,	,
said	VBD
equality	NN
for	IN
blacks	NNS
in	IN
South	NNP
Africa	NNP
was	VBD
in	IN
reach	VBP
.	.

The	DT
releases	NNS
,	,
announced	VBD
last	JJ
week	NN
by	IN
President	NNP
de	NNP
Klerk	NNP
,	,
were	VBD
viewed	VBN
as	RB
Pretoria	NNP
's	POS
tacit	JJ
legalization	NN
of	IN
the	DT
ANC	NNP
.	.

Mandela	NNP
,	,
considered	VBN
the	DT
most	RBS
prominent	JJ
leader	NN
of	IN
the	DT
ANC	NNP
,	,
remains	VBZ
in	IN
prison	NN
.	.

But	CC
his	PRP$
release	NN
within	IN
the	DT
next	JJ
few	JJ
months	NNS
is	VBZ
widely	RB
expected	VBN
.	.

The	DT
Soviet	JJ
Union	NNP
reported	VBN
that	IN
thousands	NNS
of	IN
tons	NNS
of	IN
goods	NNS
needed	VBN
to	TO
ease	VB
widespread	JJ
shortages	NNS
across	IN
the	DT
nation	NN
were	VBD
piled	VBN
up	RP
at	IN
ports	NNS
and	CC
rail	NN
depots	VB
,	,
and	CC
food	NN
shipments	NNS
were	VBD
rotting	VBG
because	IN
of	IN
a	DT
lack	VBP
of	IN
people	NNS
and	CC
equipment	NN
to	TO
move	NN
the	DT
cargo	NN
.	.

Strikes	IN
and	CC
mismanagement	NN
were	VBD
cited	VBD
,	,
and	CC
Premier	NNP
Ryzhkov	NNP
warned	VBD
of	IN
``	``
tough	JJ
measures	NNS
.	.
''	''

Bush	NNP
indicated	VBD
there	EX
might	MD
be	VB
``	``
room	NN
for	IN
flexibility	NN
''	''
in	IN
a	DT
bill	NN
to	TO
allow	VB
federal	JJ
funding	NN
of	IN
abortions	NNS
for	IN
poor	JJ
women	NNS
who	WP
are	VBP
vicitims	VB
of	IN
rape	NN
and	CC
incest	NN
.	.

He	PRP
reiterated	VBD
his	PRP$
opposition	NN
to	TO
such	JJ
funding	NN
,	,
but	CC
expressed	VBD
hope	VBP
of	IN
a	DT
compromise	NN
.	.

The	DT
president	NN
,	,
at	IN
a	DT
news	NN
conference	NN
Friday	NNP
,	,
also	RB
renewed	VBN
a	DT
call	VB
for	IN
the	DT
ouster	NN
of	IN
Panama	NNP
's	POS
Noriega	NNP
.	.

The	DT
White	NNP
House	NNP
said	VBD
minors	NNS
have	VB
n't	RB
any	DT
right	RB
to	TO
abortion	NN
without	IN
the	DT
consent	NN
of	IN
their	PRP$
parents	NNS
.	.

The	DT
administration	NN
's	POS
policy	NN
was	VBD
stated	VBN
in	IN
a	DT
friend-of-the-court	JJ
brief	NN
urging	VBG
the	DT
Supreme	NNP
Court	NNP
to	TO
give	VBP
states	NNS
more	RBR
leeway	NN
to	TO
restrict	VB
abortions	NNS
.	.

Ten	CD
of	IN
the	DT
nation	NN
's	POS
governors	NNS
,	,
meanwhile	RB
,	,
called	VBN
on	IN
the	DT
justices	NNS
to	TO
reject	VB
efforts	NNS
to	TO
limit	NN
abortions	NNS
.	.

The	DT
Justice	NNP
Department	NNP
announced	VBD
that	IN
the	DT
FBI	NNP
has	VBZ
been	VBN
given	VBN
the	DT
authority	NN
to	TO
seize	VB
U.S.	NNP
fugitives	NNS
overseas	RB
without	IN
the	DT
permission	NN
of	IN
foreign	JJ
governments	NNS
.	.

Secretary	NNP
of	IN
State	NNP
Baker	NNP
emphasized	VBD
Friday	NNP
that	IN
the	DT
new	JJ
policy	NN
would	MD
n't	RB
be	VB
invoked	VB
by	IN
the	DT
Bush	NNP
administration	NN
without	IN
full	JJ
consideration	NN
of	IN
foreign-policy	NN
implications	NNS
.	.

NASA	NNP
pronounced	VBN
the	DT
space	NN
shuttle	NN
Atlantis	NNP
ready	JJ
for	IN
launch	VB
tomorrow	NN
following	VBG
a	DT
five-day	JJ
postponement	NN
of	IN
the	DT
flight	NN
because	IN
of	IN
a	DT
faulty	JJ
engine	NN
computer	NN
.	.

The	DT
device	NN
was	VBD
replaced	VBD
.	.

The	DT
spacecraft	NN
's	POS
five	CD
astronauts	NNS
are	VBP
to	TO
dispatch	VB
the	DT
Galileo	NNP
space	NN
probe	NN
on	IN
an	DT
exploration	NN
mission	NN
to	TO
Jupiter	NNP
.	.

South	NNP
Korea	NNP
's	POS
President	NNP
Roh	NNP
traveled	VBD
to	TO
the	DT
U.S.	NNP
for	IN
a	DT
five-day	JJ
visit	VB
that	IN
is	VBZ
expected	VBN
to	TO
focus	NN
on	IN
ties	NNS
between	IN
Washington	NNP
and	CC
Seoul	NNP
.	.

Roh	NNP
,	,
who	WP
is	VBZ
facing	VBG
calls	VBZ
for	IN
the	DT
reduction	NN
of	IN
U.S.	NNP
military	JJ
forces	NNS
in	IN
South	NNP
Korea	NNP
,	,
is	VBZ
to	TO
meet	VB
with	IN
Bush	NNP
tomorrow	NN
and	CC
is	VBZ
to	TO
address	VB
a	DT
joint	JJ
session	NN
of	IN
Congress	NNP
on	IN
Wednesday	NNP
.	.

China	NNP
's	POS
Communist	NNP
leadership	NN
voted	VBD
to	TO
purge	VB
the	DT
party	NN
of	IN
``	``
hostile	JJ
and	CC
anti-party	VB
elements	NNS
''	''
and	CC
wealthy	JJ
private	JJ
businessmen	NNS
,	,
whom	WP
they	PRP
called	VBN
exploiters	VB
.	.

The	DT
decision	NN
,	,
reported	VBN
by	IN
the	DT
official	NN
Xinhua	NNP
News	NNP
Agency	NNP
,	,
indicated	VBD
that	IN
the	DT
crackdown	NN
prompted	VBN
by	IN
student-led	VB
pro-democracy	JJ
protests	NNS
in	IN
June	NNP
is	VBZ
intensifying	VBG
.	.

Hundreds	NNS
of	IN
East	NNP
Germans	NNPS
flocked	VBD
to	TO
Bonn	NNP
's	POS
Embassy	NNP
in	IN
Warsaw	NNP
,	,
bringing	VBG
to	TO
more	RBR
than	IN
1,200	CD
the	DT
number	NN
of	IN
emigres	NNS
expected	VBN
to	TO
flee	VB
to	TO
the	DT
West	NNP
beginning	NN
today	NN
.	.

More	JJR
than	IN
2,100	CD
others	NNS
escaped	VBD
to	TO
West	NNP
Germany	NNP
through	IN
Hungary	NNP
over	IN
the	DT
Weekend	NNP
.	.

In	IN
Leipzig	NNP
,	,
activists	NNS
vowed	VBD
to	TO
continue	VB
street	NN
protests	NNS
to	TO
demand	VBP
internal	JJ
change	NN
.	.

Zaire	IN
's	VBZ
President	NNP
Mobutu	VB
met	VBN
in	IN
southern	JJ
France	NNP
with	IN
Angolan	VB
rebel	NN
leader	NN
Savimbi	VB
and	CC
a	DT
senior	JJ
U.S.	NNP
envoy	VB
in	IN
a	DT
bid	NN
to	TO
revive	VB
an	DT
accord	NN
to	TO
end	NN
Angola	VB
's	POS
civil	JJ
war	NN
.	.

Details	NNS
of	IN
the	DT
talks	NNS
,	,
described	VBN
by	IN
a	DT
Zairean	VB
official	NN
as	RB
``	``
very	RB
delicate	JJ
,	,
''	''
were	VBD
n't	RB
disclosed	VBN
.	.

PLO	NNP
leader	NN
Arafat	NNP
insisted	VBD
on	IN
guarantees	VBZ
that	IN
any	DT
elections	NNS
in	IN
the	DT
Israeli-occupied	JJ
territories	NNS
would	MD
be	VB
impartial	VB
.	.

He	PRP
made	VBN
his	PRP$
remarks	NNS
to	TO
a	DT
PLO	NNP
gathering	NN
in	IN
Baghdad	VB
.	.

In	IN
the	DT
occupied	JJ
lands	NNS
,	,
underground	JJ
leaders	NNS
of	IN
the	DT
Arab	NNP
uprising	NN
rejected	VBD
a	DT
U.S.	NNP
plan	VB
to	TO
arrange	VB
Israeli-Palestinian	JJ
talks	NNS
as	RB
Shamir	NNP
opposed	VBN
holding	VBG
such	JJ
discussions	NNS
in	IN
Cairo	NN
.	.

Lebanese	JJ
Christian	NNP
lawmakers	NNS
presented	VBD
to	TO
Arab	NNP
mediators	VB
at	IN
talks	NNS
in	IN
Saudi	NNP
Arabia	NNP
proposals	NNS
for	IN
a	DT
new	JJ
timetable	NN
for	IN
the	DT
withdrawal	NN
of	IN
Syria	NNP
's	POS
forces	NNS
from	IN
Lebanon	NNP
.	.

A	DT
plan	NN
currently	RB
under	IN
study	NN
gives	VBZ
Damascus	NNP
two	CD
years	NNS
to	TO
pull	VB
back	RB
to	TO
eastern	JJ
Lebanon	NNP
,	,
starting	VBG
from	IN
the	DT
time	NN
Beirut	NNP
's	POS
legislature	NN
increases	NNS
political	JJ
power	NN
for	IN
Moslems	NNPS
.	.

Hurricane	NNP
Jerry	NNP
threatened	VBD
to	TO
combine	VB
with	IN
the	DT
highest	JJS
tides	NNS
of	IN
the	DT
year	NN
to	TO
swamp	VB
the	DT
Texas-Louisiana	VB
coast	NN
.	.

Thousands	NNS
of	IN
residents	NNS
of	IN
low-lying	VB
areas	NNS
were	VBD
ordered	VBD
to	TO
evacuate	VB
as	RB
the	DT
storm	NN
headed	VBD
north	RB
in	IN
the	DT
Gulf	NNP
of	IN
Mexico	NNP
with	IN
80	CD
mph	NN
winds	NNS
.	.

A	DT
group	NN
of	IN
Arby	NNP
's	POS
franchisees	NNS
said	VBD
they	PRP
formed	VBN
an	DT
association	NN
to	TO
oppose	VBP
Miami	NNP
Beach	NNP
financier	NN
Victor	NNP
Posner	NNP
's	POS
control	NN
of	IN
the	DT
restaurant	NN
chain	NN
.	.

The	DT
decision	NN
is	VBZ
the	DT
latest	JJS
move	NN
in	IN
an	DT
escalating	VB
battle	NN
between	IN
the	DT
franchisees	NNS
and	CC
Mr.	NNP
Posner	NNP
that	IN
began	VBD
in	IN
August	NNP
.	.

At	IN
the	DT
time	NN
,	,
a	DT
group	NN
called	VBN
R.B.	VB
Partners	NNPS
Ltd.	NNP
,	,
consisting	VBG
of	IN
eight	CD
of	IN
Arby	NNP
's	POS
largest	JJS
franchisees	NNS
,	,
offered	VBD
more	RBR
than	IN
$	$
200	CD
million	CD
to	TO
buy	VB
Arby	NNP
's	POS
Inc.	NNP
,	,
which	WDT
is	VBZ
part	NN
of	IN
DWG	NNP
Corp	NNP
.	.

DWG	NNP
is	VBZ
a	DT
holding	VBG
company	NN
controlled	VBN
by	IN
Mr.	NNP
Posner	NNP
.	.

One	CD
week	NN
later	RB
,	,
Leonard	NNP
H.	NNP
Roberts	NNP
,	,
president	NN
and	CC
chief	NN
executive	NN
officer	NN
of	IN
Arby	NNP
's	POS
,	,
was	VBD
fired	VBD
in	IN
a	DT
dispute	NN
with	IN
Mr.	NNP
Posner	NNP
.	.

Friday	NNP
,	,
42	CD
franchisees	NNS
announced	VBD
the	DT
formation	NN
of	IN
an	DT
association	NN
--	:
called	VBN
A.P.	NNP
Association	NNP
Inc.	NNP
--	:
to	TO
``	``
preserve	VB
the	DT
integrity	NN
of	IN
the	DT
Arby	NNP
's	POS
system	NN
.	.
''	''

The	DT
franchisees	NNS
,	,
owners	NNS
or	CC
operators	NNS
of	IN
1,000	CD
of	IN
the	DT
1,900	CD
franchised	VBN
Arby	NNP
's	POS
in	IN
the	DT
U.S.	NNP
,	,
said	VBD
:	:
``	``
We	PRP
have	VB
concluded	VBD
that	IN
continued	VBD
control	NN
of	IN
Arby	NNP
's	POS
by	IN
Victor	NNP
Posner	NNP
is	VBZ
totally	RB
unacceptable	JJ
to	TO
us	PRP
,	,
because	IN
it	PRP
is	VBZ
extremely	RB
likely	JJ
to	TO
cause	VB
irreparable	JJ
damage	NN
to	TO
the	DT
Arby	NNP
's	POS
system	NN
.	.

We	PRP
support	VB
all	DT
efforts	NNS
to	TO
remove	VB
Victor	NNP
Posner	NNP
from	IN
control	NN
of	IN
Arby	NNP
's	POS
Inc.	NNP
and	CC
the	DT
Arby	NNP
's	POS
system	NN
.	.
''	''

The	DT
group	NN
said	VBD
it	PRP
would	MD
consider	VB
,	,
among	IN
other	JJ
things	NNS
,	,
withholding	VBG
royalty	NN
payments	NNS
and	CC
initiating	VB
a	DT
class-action	JJ
lawsuit	NN
seeking	VBG
court	NN
approval	NN
for	IN
the	DT
withholdings	VB
.	.

In	IN
Florida	NNP
,	,
Renee	NNP
Mottram	NNP
,	,
a	DT
senior	JJ
vice	NN
president	NN
at	IN
DWG	NNP
,	,
responded	VBD
:	:
``	``
We	PRP
do	VB
n't	RB
think	VBP
any	DT
individual	JJ
or	CC
group	NN
should	MD
disrupt	VB
a	DT
winning	VBG
system	NN
or	CC
illegally	RB
interfere	VB
with	IN
existing	VBG
contractual	JJ
relationships	NNS
for	IN
their	PRP$
own	JJ
self-serving	JJ
motives	NNS
.	.

September	NNP
's	POS
steep	JJ
rise	VB
in	IN
producer	NN
prices	NNS
shows	VBZ
that	IN
inflation	NN
still	RB
persists	VBZ
,	,
and	CC
the	DT
pessimism	NN
over	IN
interest	NN
rates	NNS
caused	VBN
by	IN
the	DT
new	JJ
price	NN
data	NNS
contributed	VBD
to	TO
the	DT
stock	NN
market	NN
's	POS
plunge	NN
Friday	NNP
.	.

After	IN
falling	VBG
for	IN
three	CD
consecutive	JJ
months	NNS
,	,
the	DT
producer	NN
price	NN
index	NN
for	IN
finished	VBD
goods	NNS
shot	NN
up	RP
0.9	CD
%	NN
last	JJ
month	NN
,	,
the	DT
Labor	NNP
Department	NNP
reported	VBN
Friday	NNP
,	,
as	RB
energy	NN
prices	NNS
jumped	VBD
after	IN
tumbling	VBG
through	IN
the	DT
summer	NN
.	.

Although	IN
the	DT
report	NN
,	,
which	WDT
was	VBD
released	VBN
before	IN
the	DT
stock	NN
market	NN
opened	VBD
,	,
did	VBD
n't	RB
trigger	VB
the	DT
190.58-point	JJ
drop	NN
in	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
,	,
analysts	NNS
said	VBD
it	PRP
did	VBD
play	NN
a	DT
role	NN
in	IN
the	DT
market	NN
's	POS
decline	NN
.	.

Analysts	NNS
immediately	RB
viewed	VBN
the	DT
price	NN
data	NNS
,	,
the	DT
grimmest	VB
inflation	NN
news	NN
in	IN
months	NNS
,	,
as	RB
evidence	NN
that	IN
the	DT
Federal	NNP
Reserve	NNP
was	VBD
unlikely	JJ
to	TO
allow	VB
interest	NN
rates	NNS
to	TO
fall	VB
as	RB
many	JJ
investors	NNS
had	VBD
hoped	VBN
.	.

Further	JJ
fueling	VBG
the	DT
belief	NN
that	IN
pressures	NNS
in	IN
the	DT
economy	NN
were	VBD
sufficient	JJ
to	TO
keep	VB
the	DT
Fed	NNP
from	IN
easing	NN
credit	NN
,	,
the	DT
Commerce	NNP
Department	NNP
reported	VBN
Friday	NNP
that	IN
retail	JJ
sales	NNS
grew	VBD
0.5	CD
%	NN
in	IN
September	NNP
,	,
to	TO
$	$
145.21	VB
billion	CD
.	.

That	DT
rise	NN
came	VBD
on	IN
top	NN
of	IN
a	DT
0.7	CD
%	NN
gain	NN
in	IN
August	NNP
,	,
and	CC
suggested	VBN
there	EX
is	VBZ
still	RB
healthy	JJ
consumer	NN
demand	VBP
in	IN
the	DT
economy	NN
.	.

``	``
I	PRP
think	VBP
the	DT
Friday	NNP
report	NN
,	,
combined	VBN
with	IN
the	DT
actions	NNS
of	IN
the	DT
Fed	NNP
,	,
weakened	VBD
the	DT
belief	NN
that	IN
there	EX
was	VBD
going	VBG
to	TO
be	VB
an	DT
imminent	JJ
easing	NN
of	IN
monetary	JJ
policy	NN
,	,
''	''
said	VBD
Robert	NNP
Dederick	NNP
,	,
chief	NN
economist	NN
at	IN
Northern	NNP
Trust	NNP
Co.	NNP
in	IN
Chicago	NNP
.	.

But	CC
economists	NNS
were	VBD
divided	VBN
over	IN
the	DT
extent	NN
of	IN
the	DT
inflation	NN
threat	NN
signaled	VBD
by	IN
the	DT
new	JJ
numbers	NNS
.	.

``	``
The	DT
overall	JJ
0.9	CD
%	NN
increase	NN
is	VBZ
serious	JJ
in	IN
itself	PRP
,	,
but	CC
what	WP
is	VBZ
even	RB
worse	JJR
is	VBZ
that	IN
excluding	VBG
food	NN
and	CC
energy	NN
,	,
the	DT
producer	NN
price	NN
index	NN
still	RB
increased	VBN
by	IN
0.7	CD
%	NN
,	,
''	''
said	VBD
Gordon	NNP
Richards	NNP
,	,
an	DT
economist	NN
at	IN
the	DT
National	NNP
Association	NNP
of	IN
Manufacturers	NNS
.	.

But	CC
Sung	NNP
Won	NNP
Sohn	NNP
,	,
chief	NN
economist	NN
at	IN
Norwest	NNP
Corp.	NNP
in	IN
Minneapolis	NNP
,	,
blamed	VBD
rising	VBG
energy	NN
prices	NNS
and	CC
the	DT
annual	JJ
autumn	NN
increase	NN
in	IN
car	NN
prices	NNS
for	IN
most	RBS
of	IN
the	DT
September	NNP
jump	NN
.	.

``	``
I	PRP
would	MD
say	VBP
this	DT
is	VBZ
not	RB
bad	JJ
news	NN
;	:
this	DT
is	VBZ
a	DT
blip	NN
,	,
''	''
he	PRP
said	VBD
.	.

``	``
The	DT
core	NN
rate	NN
is	VBZ
not	RB
really	RB
out	IN
of	IN
line	NN
.	.
''	''

All	DT
year	NN
,	,
energy	NN
prices	NNS
have	VB
skewed	VBN
the	DT
producer	NN
price	NN
index	NN
,	,
which	WDT
measures	NNS
changes	NNS
in	IN
the	DT
prices	NNS
producers	NNS
receive	VB
for	IN
goods	NNS
.	.

Inflation	NN
unquestionably	VB
has	VBZ
fallen	VBN
back	RB
from	IN
its	PRP$
torrid	JJ
pace	NN
last	JJ
winter	NN
,	,
when	WRB
a	DT
steep	JJ
run-up	NN
in	IN
world	NN
oil	NN
prices	NNS
sent	VBD
the	DT
index	NN
surging	JJ
at	IN
double-digit	JJ
annual	JJ
rates	NNS
.	.

Energy	NNP
prices	NNS
then	RB
plummeted	VBD
through	IN
the	DT
summer	NN
,	,
causing	VBG
the	DT
index	NN
to	TO
decline	NN
for	IN
three	CD
consecutive	JJ
months	NNS
.	.

Overall	RB
,	,
the	DT
index	NN
has	VBZ
climbed	VBD
at	IN
a	DT
5.1	CD
%	NN
compound	JJ
annual	JJ
rate	NN
since	IN
the	DT
start	VB
of	IN
the	DT
year	NN
,	,
the	DT
Labor	NNP
Department	NNP
said	VBD
.	.

While	IN
far	RB
more	JJR
restrained	JJ
than	IN
the	DT
pace	NN
at	IN
the	DT
beginning	NN
of	IN
the	DT
year	NN
,	,
that	WDT
is	VBZ
still	RB
a	DT
steeper	JJR
rise	VB
than	IN
the	DT
4.0	CD
%	NN
increase	NN
for	IN
all	DT
of	IN
1988	CD
.	.

Moreover	RB
,	,
this	DT
year	NN
's	POS
good	JJ
inflation	NN
news	NN
may	MD
have	VB
ended	VBD
last	JJ
month	NN
,	,
when	WRB
energy	NN
prices	NNS
zoomed	VBN
up	RP
6.5	CD
%	NN
after	IN
plunging	NN
7.3	CD
%	NN
in	IN
August	NNP
.	.

Some	DT
analysts	NNS
expect	VBP
oil	NN
prices	NNS
to	TO
remain	VBP
relatively	RB
stable	JJ
in	IN
the	DT
months	NNS
ahead	RB
,	,
leaving	VBG
the	DT
future	NN
pace	NN
of	IN
inflation	NN
uncertain	JJ
.	.

Analysts	NNS
had	VBD
expected	VBN
that	IN
the	DT
climb	NN
in	IN
oil	NN
prices	NNS
last	JJ
month	NN
would	MD
lead	NN
to	TO
a	DT
substantial	JJ
rise	VB
in	IN
the	DT
producer	NN
price	NN
index	NN
,	,
but	CC
the	DT
0.9	CD
%	NN
climb	NN
was	VBD
higher	JJR
than	IN
most	RBS
anticipated	VBN
.	.

``	``
I	PRP
think	VBP
the	DT
resurgence	NN
{	(
in	IN
inflation	NN
}	)
is	VBZ
going	VBG
to	TO
continue	VB
for	IN
a	DT
few	JJ
months	NNS
,	,
''	''
said	VBD
John	NNP
Mueller	VB
,	,
chief	NN
economist	NN
at	IN
Bell	NNP
Mueller	VB
Cannon	NNP
,	,
a	DT
Washington	NNP
economic	JJ
forecasting	NN
firm	JJ
.	.

He	PRP
predicted	VBD
that	IN
inflation	NN
will	MD
moderate	JJ
next	JJ
year	NN
,	,
saying	VBG
that	IN
credit	NN
conditions	NNS
are	VBP
fairly	RB
tight	RB
world-wide	JJ
.	.

But	CC
Dirk	NNP
Van	NNP
Dongen	VB
,	,
president	NN
of	IN
the	DT
National	NNP
Association	NNP
of	IN
Wholesaler-Distributors	VB
,	,
said	VBD
that	IN
last	JJ
month	NN
's	POS
rise	VB
``	``
is	VBZ
n't	RB
as	RB
bad	JJ
an	DT
omen	VB
''	''
as	RB
the	DT
0.9	CD
%	NN
figure	NN
suggests	VBZ
.	.

``	``
If	IN
you	PRP
examine	VB
the	DT
data	NNS
carefully	RB
,	,
the	DT
increase	NN
is	VBZ
concentrated	VBN
in	IN
energy	NN
and	CC
motor	NN
vehicle	NN
prices	NNS
,	,
rather	RB
than	IN
being	VBG
a	DT
broad-based	JJ
advance	NN
in	IN
the	DT
prices	NNS
of	IN
consumer	NN
and	CC
industrial	JJ
goods	NNS
,	,
''	''
he	PRP
explained	VBD
.	.

Passenger	NN
car	NN
prices	NNS
jumped	VBD
3.8	CD
%	NN
in	IN
September	NNP
,	,
after	IN
climbing	VBG
0.5	CD
%	NN
in	IN
August	NNP
and	CC
declining	VBG
in	IN
the	DT
late	JJ
spring	NN
and	CC
summer	NN
.	.

Many	DT
analysts	NNS
said	VBD
the	DT
September	NNP
increase	NN
was	VBD
a	DT
one-time	JJ
event	NN
,	,
coming	VBG
as	RB
dealers	NNS
introduced	VBN
their	PRP$
1990	CD
models	NNS
.	.

Although	IN
all	DT
the	DT
price	NN
data	NNS
were	VBD
adjusted	VBN
for	IN
normal	JJ
seasonal	JJ
fluctuations	NNS
,	,
car	NN
prices	NNS
rose	VBD
beyond	IN
the	DT
customary	JJ
autumn	NN
increase	NN
.	.

Prices	NNS
for	IN
capital	NN
equipment	NN
rose	VBD
a	DT
hefty	JJ
1.1	CD
%	NN
in	IN
September	NNP
,	,
while	IN
prices	NNS
for	IN
home	RB
electronic	JJ
equipment	NN
fell	VBD
1.1	CD
%	NN
.	.

Food	NN
prices	NNS
declined	VBD
0.6	CD
%	NN
,	,
after	IN
climbing	VBG
0.3	CD
%	NN
in	IN
August	NNP
.	.

Meanwhile	RB
,	,
the	DT
retail	JJ
sales	NNS
report	NN
showed	VBD
that	IN
car	NN
sales	NNS
rose	VBD
0.8	CD
%	NN
in	IN
September	NNP
to	TO
$	$
32.82	VB
billion	CD
.	.

But	CC
at	IN
least	JJS
part	NN
of	IN
the	DT
increase	NN
could	MD
have	VB
come	VBP
from	IN
higher	JJR
prices	NNS
,	,
analysts	NNS
said	VBD
.	.

Sales	NNS
at	IN
general	NN
merchandise	NN
stores	NNS
rose	VBD
1.7	CD
%	NN
after	IN
declining	VBG
0.6	CD
%	NN
in	IN
August	NNP
,	,
while	IN
sales	NNS
of	IN
building	NN
materials	NNS
fell	VBD
1.8	CD
%	NN
after	IN
rising	VBG
1.7	CD
%	NN
.	.

Producer	IN
prices	NNS
for	IN
intermediate	JJ
goods	NNS
grew	VBD
0.4	CD
%	NN
in	IN
September	NNP
,	,
after	IN
dropping	VBG
for	IN
three	CD
consecutive	JJ
months	NNS
.	.

Prices	NNS
for	IN
crude	NN
goods	NNS
,	,
an	DT
array	NN
of	IN
raw	JJ
materials	NNS
,	,
jumped	VBD
1.1	CD
%	NN
after	IN
declining	VBG
1.9	CD
%	NN
in	IN
August	NNP
and	CC
edging	VBG
up	RP
0.2	CD
%	NN
in	IN
July	NNP
.	.

Here	RB
are	VBP
the	DT
Labor	NNP
Department	NNP
's	POS
producer	NN
price	NN
indexes	NNS
(	(
1982	CD
=	SYM
100	CD
)	)
for	IN
September	NNP
,	,
before	IN
seasonal	JJ
adjustment	NN
,	,
and	CC
the	DT
percentage	NN
changes	NNS
from	IN
September	NNP
,	,
1988	CD
.	.

CityFed	IN
Financial	NNP
Corp.	NNP
said	VBD
it	PRP
expects	VBZ
to	TO
report	NN
a	DT
loss	NN
of	IN
at	IN
least	JJS
$	$
125	CD
million	CD
to	TO
$	$
150	CD
million	CD
for	IN
the	DT
third	JJ
quarter	NN
.	.

In	IN
the	DT
year-earlier	JJ
period	NN
,	,
CityFed	VB
had	VBD
net	JJ
income	NN
of	IN
$	$
485,000	VB
,	,
but	CC
no	DT
per-share	JJ
earnings	NNS
.	.

CityFed	IN
's	VBZ
president	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
John	NNP
Atherton	VB
,	,
said	VBD
the	DT
loss	NN
stems	VBZ
from	IN
several	JJ
factors	NNS
.	.

He	PRP
said	VBD
nonperforming	JJ
assets	NNS
rose	VBD
to	TO
slightly	RB
more	RBR
than	IN
$	$
700	CD
million	CD
from	IN
$	$
516	VB
million	CD
between	IN
June	NNP
and	CC
September	NNP
.	.

Approximately	RB
85	CD
%	NN
of	IN
the	DT
total	JJ
consisted	VBD
of	IN
nonperforming	JJ
commercial	JJ
real	JJ
estate	NN
assets	NNS
.	.

Accordingly	RB
,	,
CityFed	VB
estimated	VBD
that	IN
it	PRP
will	MD
provide	VB
between	IN
$	$
85	CD
million	CD
and	CC
$	$
110	CD
million	CD
for	IN
credit	NN
losses	NNS
in	IN
the	DT
third	JJ
quarter	NN
.	.

CityFed	IN
added	VBN
that	IN
significant	JJ
additional	JJ
loan-loss	NN
provisions	NNS
may	MD
be	VB
required	VBN
by	IN
federal	JJ
regulators	NNS
as	RB
part	NN
of	IN
the	DT
current	NN
annual	JJ
examination	NN
of	IN
City	NNP
Federal	NNP
Savings	NNP
Bank	NNP
,	,
CityFed	VB
's	POS
primary	JJ
subsidiary	NN
,	,
based	VBN
in	IN
Somerset	NNP
,	,
N.J	NNP
.	.

City	NNP
Federal	NNP
operates	VBZ
105	CD
banking	VBG
offices	NNS
in	IN
New	NNP
Jersey	NNP
and	CC
Florida	NNP
.	.

Mr.	NNP
Atherton	VB
said	VBD
CityFed	VB
will	MD
also	RB
mark	VB
its	PRP$
portfolio	NN
of	IN
high-yield	JJ
corporate	JJ
bonds	NNS
to	TO
market	NN
as	RB
a	DT
result	NN
of	IN
federal	JJ
legislation	NN
requiring	VBG
that	IN
savings	NNS
institutions	NNS
divest	VB
themselves	PRP
of	IN
such	JJ
bonds	NNS
.	.

That	DT
action	NN
,	,
CityFed	VB
said	VBD
,	,
will	MD
result	NN
in	IN
a	DT
charge	NN
against	IN
third-quarter	NN
results	NNS
of	IN
approximately	RB
$	$
30	CD
million	CD
.	.

CityFed	IN
also	RB
said	VBD
it	PRP
expects	VBZ
to	TO
shed	VB
its	PRP$
remaining	VBG
mortgage	NN
loan	NN
origination	VB
operations	NNS
outside	JJ
its	PRP$
principal	NN
markets	NNS
in	IN
New	NNP
Jersey	NNP
and	CC
Florida	NNP
and	CC
,	,
as	RB
a	DT
result	NN
,	,
is	VBZ
taking	VBG
a	DT
charge	NN
for	IN
discontinued	VBN
operations	NNS
.	.

All	DT
these	DT
actions	NNS
,	,
Mr.	NNP
Atherton	VB
said	VBD
,	,
will	MD
result	NN
in	IN
a	DT
loss	NN
of	IN
$	$
125	CD
million	CD
to	TO
$	$
150	CD
million	CD
for	IN
the	DT
third	JJ
quarter	NN
.	.

He	PRP
added	VBD
,	,
however	RB
:	:
``	``
Depending	VBG
on	IN
the	DT
resolution	NN
of	IN
certain	JJ
accounting	NN
issues	NNS
relating	VBG
to	TO
mortgages	NNS
servicing	NN
and	CC
the	DT
outcome	NN
of	IN
the	DT
annual	JJ
examination	NN
of	IN
City	NNP
Federal	NNP
currently	RB
in	IN
progress	NN
with	IN
respect	VB
to	TO
the	DT
appropriate	JJ
level	NN
of	IN
loan	NN
loss	NN
reserves	NNS
,	,
the	DT
total	JJ
loss	NN
for	IN
the	DT
quarter	NN
could	MD
significantly	RB
exceed	VBP
this	DT
range	NN
.	.

CenTrust	NNP
Savings	NNP
Bank	NNP
said	VBD
federal	JJ
thrift	NN
regulators	NNS
ordered	VBD
it	PRP
to	TO
suspend	VB
dividend	NN
payments	NNS
on	IN
its	PRP$
two	CD
classes	NNS
of	IN
preferred	JJ
stock	NN
,	,
indicating	VBG
that	IN
regulators	NNS
'	POS
concerns	NNS
about	IN
the	DT
troubled	VBN
institution	NN
have	VB
heightened	VBN
.	.

In	IN
a	DT
statement	NN
,	,
Miami-based	JJ
CenTrust	NNP
said	VBD
the	DT
regulators	NNS
cited	VBD
the	DT
thrift	NN
's	POS
operating	VBG
losses	NNS
and	CC
``	``
apparent	JJ
losses	NNS
''	''
in	IN
its	PRP$
junk-bond	NN
portfolio	NN
in	IN
ordering	VBG
the	DT
suspension	NN
of	IN
the	DT
dividends	NNS
.	.

Regulators	NNS
also	RB
ordered	VBD
CenTrust	NNP
to	TO
stop	VB
buying	VBG
back	RB
the	DT
preferred	JJ
stock	NN
.	.

David	NNP
L.	NNP
Paul	NNP
,	,
chairman	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
criticized	VBN
the	DT
federal	JJ
Office	NN
of	IN
Thrift	NN
Supervision	NNP
,	,
which	WDT
issued	VBN
the	DT
directive	NN
,	,
saying	VBG
it	PRP
was	VBD
``	``
inappropriate	JJ
''	''
and	CC
based	VBN
on	IN
``	``
insufficient	JJ
''	''
reasons	NNS
.	.

He	PRP
said	VBD
the	DT
thrift	NN
will	MD
try	VB
to	TO
get	VB
regulators	NNS
to	TO
reverse	NN
the	DT
decision	NN
.	.

The	DT
suspension	NN
of	IN
a	DT
preferred	JJ
stock	NN
dividend	NN
is	VBZ
a	DT
serious	JJ
step	VB
that	IN
signals	NNS
that	IN
regulators	NNS
have	VB
deep	JJ
concerns	NNS
about	IN
an	DT
institution	NN
's	POS
health	NN
.	.

In	IN
March	NNP
,	,
regulators	NNS
labeled	VBN
CenTrust	NNP
a	DT
``	``
troubled	VBN
institution	NN
,	,
''	''
largely	RB
because	IN
of	IN
its	PRP$
big	JJ
junk-bond	NN
holdings	NNS
and	CC
its	PRP$
operating	VBG
losses	NNS
.	.

In	IN
the	DT
same	JJ
month	NN
,	,
the	DT
Office	NN
of	IN
Thrift	NN
Supervision	NNP
ordered	VBD
the	DT
institution	NN
to	TO
stop	VB
paying	VBG
common	JJ
stock	NN
dividends	NNS
until	IN
its	PRP$
operations	NNS
were	VBD
on	IN
track	NN
.	.

For	IN
the	DT
nine	CD
months	NNS
ended	VBD
June	NNP
30	CD
,	,
CenTrust	NNP
had	VBD
a	DT
net	JJ
loss	NN
of	IN
$	$
21.3	CD
million	CD
,	,
compared	VBN
with	IN
year-earlier	JJ
net	JJ
income	NN
of	IN
$	$
52.8	VB
million	CD
.	.

CenTrust	NNP
,	,
which	WDT
is	VBZ
Florida	NNP
's	POS
largest	JJS
thrift	NN
,	,
holds	VBZ
one	CD
of	IN
the	DT
largest	JJS
junk-bond	NN
portfolios	NNS
of	IN
any	DT
thrift	NN
in	IN
the	DT
nation	NN
.	.

Since	IN
April	NNP
,	,
it	PRP
has	VBZ
pared	VBN
its	PRP$
high-yield	JJ
bond	NN
holdings	NNS
to	TO
about	RB
$	$
890	VB
million	CD
from	IN
$	$
1.35	CD
billion	CD
.	.

Mr.	NNP
Paul	NNP
said	VBD
only	RB
about	IN
$	$
150	CD
million	CD
of	IN
the	DT
current	NN
holdings	NNS
are	VBP
tradeable	VB
securities	NNS
registered	VBN
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
.	.

The	DT
remainder	NN
,	,
he	PRP
said	VBD
,	,
are	VBP
commercial	JJ
loan	NN
participations	VB
,	,
or	CC
private	JJ
placements	NNS
,	,
that	IN
are	VBP
n't	RB
filed	VBD
with	IN
the	DT
SEC	NNP
and	CC
do	VB
n't	RB
have	VB
a	DT
ready	JJ
market	NN
.	.

CenTrust	NNP
and	CC
regulators	NNS
have	VB
been	VBN
in	IN
a	DT
dispute	NN
over	IN
market	NN
valuations	NNS
for	IN
the	DT
junk	NN
bonds	NNS
.	.

The	DT
Office	NNP
of	IN
Thrift	NN
Supervision	NNP
has	VBZ
been	VBN
hounding	VB
CenTrust	NNP
to	TO
provide	VB
current	NN
market	NN
values	NNS
for	IN
its	PRP$
holdings	NNS
,	,
but	CC
CenTrust	NNP
has	VBZ
said	VBD
it	PRP
ca	MD
n't	RB
easily	RB
obtain	VB
such	JJ
values	NNS
because	IN
of	IN
the	DT
relative	JJ
illiquidity	NN
of	IN
the	DT
bonds	NNS
and	CC
lack	VBP
of	IN
a	DT
ready	JJ
market	NN
.	.

Regulators	NNS
have	VB
become	VB
increasingly	RB
antsy	VB
about	IN
CenTrust	NNP
's	POS
and	CC
other	JJ
thrifts	NNS
'	POS
junk-bond	NN
holdings	NNS
in	IN
light	JJ
of	IN
the	DT
recent	JJ
federal	JJ
thrift	NN
bailout	NN
legislation	NN
and	CC
the	DT
recent	JJ
deep	JJ
decline	NN
in	IN
the	DT
junk-bond	NN
market	NN
.	.

The	DT
legislation	NN
requires	VBZ
thrifts	NNS
to	TO
divest	VB
themselves	PRP
of	IN
junk	NN
bonds	NNS
in	IN
the	DT
new	JJ
,	,
somber	JJ
regulatory	JJ
climate	NN
.	.

In	IN
American	NNP
Stock	NNP
Exchange	NNP
composite	JJ
trading	NN
Friday	NNP
,	,
CenTrust	NNP
common	JJ
shares	NNS
closed	VBN
at	IN
$	$
3	CD
,	,
down	IN
12.5	CD
cents	NNS
.	.

In	IN
a	DT
statement	NN
Friday	NNP
,	,
Mr.	NNP
Paul	NNP
challenged	VBN
the	DT
regulators	NNS
'	POS
decision	NN
,	,
saying	VBG
the	DT
thrift	NN
's	POS
operating	VBG
losses	NNS
and	CC
``	``
apparent	JJ
''	''
junk-bond	NN
losses	NNS
``	``
have	VB
been	VBN
substantially	RB
offset	VB
by	IN
gains	NNS
in	IN
other	JJ
activities	NNS
of	IN
the	DT
bank	NN
.	.
''	''

He	PRP
also	RB
said	VBD
substantial	JJ
reserves	NNS
have	VB
been	VBN
set	VBN
aside	RB
for	IN
possible	JJ
losses	NNS
from	IN
the	DT
junk	NN
bonds	NNS
.	.

In	IN
the	DT
third	JJ
quarter	NN
,	,
for	IN
instance	NN
,	,
CenTrust	NNP
added	VBD
$	$
22.5	CD
million	CD
to	TO
its	PRP$
general	NN
reserves	NNS
.	.

Mr.	NNP
Paul	NNP
said	VBD
the	DT
regulators	NNS
should	MD
instead	RB
move	NN
ahead	RB
with	IN
approving	VBG
CenTrust	NNP
's	POS
request	NN
to	TO
sell	VB
63	CD
of	IN
its	PRP$
71	CD
branches	NNS
to	TO
Great	NNP
Western	JJ
Bank	NNP
,	,
a	DT
unit	NN
of	IN
Great	NNP
Western	JJ
Financial	NNP
Corp.	NNP
based	VBN
in	IN
Beverly	NNP
Hills	NNPS
,	,
Calif	NNP
.	.

The	DT
branch	NN
sale	NN
is	VBZ
the	DT
centerpiece	NN
of	IN
CenTrust	NNP
's	POS
strategy	NN
to	TO
transform	VB
itself	PRP
into	IN
a	DT
traditional	JJ
S&L	NN
from	IN
a	DT
high-flying	JJ
institution	NN
that	IN
relied	VBN
heavily	RB
on	IN
securities	NNS
trading	NN
for	IN
profits	NNS
,	,
according	VBG
to	TO
Mr.	NNP
Paul	NNP
.	.

Most	RBS
analysts	NNS
and	CC
thrift	NN
executives	NNS
had	VBD
expected	VBN
a	DT
decision	NN
on	IN
the	DT
proposed	VBN
transaction	NN
,	,
which	WDT
was	VBD
announced	VBD
in	IN
July	NNP
,	,
long	JJ
before	IN
now	RB
.	.

Many	DT
interpret	VB
the	DT
delay	VB
as	RB
an	DT
indication	NN
that	IN
regulators	NNS
are	VBP
skeptical	JJ
about	IN
the	DT
proposal	NN
.	.

Branches	IN
and	CC
deposits	NNS
can	MD
be	VB
sold	VBN
at	IN
a	DT
premium	NN
in	IN
the	DT
event	NN
federal	JJ
regulators	NNS
take	VB
over	IN
an	DT
institution	NN
.	.

CenTrust	NNP
,	,
however	RB
,	,
touts	VBZ
the	DT
branch	NN
sale	NN
,	,
saying	VBG
it	PRP
would	MD
bring	VB
in	IN
$	$
150	CD
million	CD
and	CC
reduce	VB
the	DT
thrift	NN
's	POS
assets	NNS
to	TO
$	$
6.7	CD
billion	CD
from	IN
$	$
9	CD
billion	CD
.	.

It	NNP
said	VBD
the	DT
sale	NN
would	MD
give	VBP
it	PRP
positive	JJ
tangible	JJ
capital	NN
of	IN
$	$
82	CD
million	CD
,	,
or	CC
about	IN
1.2	CD
%	NN
of	IN
assets	NNS
,	,
from	IN
a	DT
negative	JJ
$	$
33	CD
million	CD
as	RB
of	IN
Sept.	NNP
30	CD
,	,
thus	RB
bringing	VBG
CenTrust	NNP
close	VB
to	TO
regulatory	JJ
standards	NNS
.	.

CenTrust	NNP
said	VBD
the	DT
branch	NN
sale	NN
would	MD
also	RB
reduce	VB
the	DT
company	NN
's	POS
large	JJ
amount	VBP
of	IN
good	JJ
will	MD
by	IN
about	IN
$	$
180	CD
million	CD
.	.

Critics	NNS
,	,
however	RB
,	,
say	VBP
the	DT
branch	NN
sale	NN
will	MD
make	VBP
CenTrust	NNP
more	RBR
dependent	JJ
than	IN
ever	RB
on	IN
brokered	VB
deposits	NNS
and	CC
junk	NN
bonds	NNS
.	.

Mr.	NNP
Paul	NNP
counters	NNS
that	IN
he	PRP
intends	VBZ
to	TO
further	JJ
pare	VB
the	DT
size	NN
of	IN
CenTrust	NNP
by	IN
not	RB
renewing	VBG
more	RBR
than	IN
$	$
1	CD
billion	CD
of	IN
brokered	VB
certificates	NNS
of	IN
deposit	VB
when	WRB
they	PRP
come	VBP
due	JJ
.	.

The	DT
thrift	NN
is	VBZ
also	RB
working	VBG
to	TO
unload	VB
its	PRP$
junk-bond	NN
portfolio	NN
by	IN
continuing	VBG
to	TO
sell	VB
off	RP
the	DT
bonds	NNS
,	,
and	CC
it	PRP
plans	NNS
to	TO
eventually	RB
place	NN
some	DT
of	IN
them	PRP
in	IN
a	DT
separate	VB
affiliate	NN
,	,
as	RB
required	VBN
under	IN
the	DT
new	JJ
thrift	NN
law	NN
.	.

On	IN
a	DT
recent	JJ
Saturday	NNP
night	NN
,	,
in	IN
the	DT
midst	NN
of	IN
West	NNP
Germany	NNP
's	POS
most	RBS
popular	JJ
prime-time	JJ
show	NN
,	,
a	DT
contestant	VB
bet	NN
the	DT
host	NN
that	IN
she	PRP
could	MD
name	NN
any	DT
of	IN
100	CD
different	JJ
cheeses	VB
after	IN
just	RB
one	CD
nibble	VB
,	,
while	IN
blindfolded	VBD
.	.

The	DT
woman	NN
won	VBD
the	DT
bet	NN
.	.

But	CC
perhaps	RB
even	RB
more	RBR
remarkable	JJ
,	,
the	DT
three-hour-show	VB
,	,
``	``
Wetten	VB
Dass	VB
''	''
(	(
Make	VB
a	DT
Bet	VB
)	)
,	,
regularly	RB
wins	VBZ
the	DT
top	NN
slot	NN
in	IN
the	DT
country	NN
's	POS
TV	NN
ratings	NNS
,	,
sometimes	RB
drawing	VBG
as	RB
many	JJ
as	RB
50	CD
%	NN
of	IN
West	NNP
German	JJ
households	NNS
.	.

As	IN
the	DT
1992	CD
economic	JJ
integration	NN
approaches	VBZ
,	,
Europe	NNP
's	POS
cultural	JJ
curators	NNS
have	VB
taken	VBN
to	TO
the	DT
ramparts	VB
against	IN
American	JJ
``	``
cultural	JJ
imperialism	NN
,	,
''	''
threatening	VBG
to	TO
impose	VB
quotas	NNS
against	IN
such	JJ
pop	NN
invaders	VB
as	RB
``	``
Dallas	NNP
,	,
''	''
``	``
Miami	NNP
Vice	NNP
''	''
and	CC
``	``
L.A.	NNP
Law	NNP
.	.
''	''

But	CC
much	JJ
of	IN
what	WP
the	DT
Europeans	NNPS
want	VBP
to	TO
protect	VB
seems	VBZ
every	DT
bit	NN
as	RB
cheesy	VB
as	RB
what	WP
they	PRP
are	VBP
trying	VBG
to	TO
keep	VB
out	IN
.	.

The	DT
most	RBS
militant	JJ
opposition	NN
to	TO
American	JJ
TV	NN
imports	NNS
has	VBZ
come	VBP
from	IN
French	JJ
television	NN
and	CC
movie	NN
producers	NNS
,	,
who	WP
have	VB
demanded	VBD
quotas	NNS
ensuring	VBG
that	IN
a	DT
full	JJ
60	CD
%	NN
of	IN
Europe	NNP
's	POS
TV	NN
shows	VBZ
be	VB
produced	VBD
in	IN
Europe	NNP
.	.

So	IN
far	RB
,	,
the	DT
French	JJ
have	VB
failed	VBN
to	TO
win	VB
enough	RB
broad-based	JJ
support	VB
to	TO
prevail	VB
.	.

A	DT
glance	NN
through	IN
the	DT
television	NN
listings	NNS
and	CC
a	DT
few	JJ
twists	NNS
of	IN
the	DT
European	NNP
television	NN
dial	NN
suggest	VBP
one	CD
reason	NN
why	WRB
.	.

While	IN
there	EX
are	VBP
some	DT
popular	JJ
action	NN
and	CC
drama	NN
series	NN
,	,
few	JJ
boast	NN
the	DT
high	JJ
culture	NN
and	CC
classy	JJ
production	NN
values	NNS
one	CD
might	MD
expect	VB
.	.

More	JJR
European	NNP
air	NN
time	NN
is	VBZ
filled	VBN
with	IN
low-budget	JJ
game	NN
shows	VBZ
,	,
variety	NN
hours	NNS
,	,
movies	NNS
and	CC
talk	NN
shows	VBZ
,	,
many	JJ
of	IN
which	WDT
are	VBP
authorized	VBN
knock-offs	VB
of	IN
their	PRP$
American	JJ
counterparts	NNS
.	.

One	CD
of	IN
France	NNP
's	POS
most	RBS
popular	JJ
Saturday	NNP
night	NN
programs	NNS
features	NNS
semi-celebrities	VB
seeking	VBG
out	IN
their	PRP$
grammar-school	VB
classmates	NNS
for	IN
on-air	VB
reunions	VB
.	.

A	DT
Flemish	JJ
game	NN
show	NN
has	VBZ
as	RB
its	PRP$
host	NN
a	DT
Belgian	JJ
pretending	VB
to	TO
be	VB
Italian	JJ
.	.

One	CD
of	IN
Italy	NNP
's	POS
favorite	JJ
shows	VBZ
,	,
``	``
Fantastico	VB
,	,
''	''
a	DT
tepid	JJ
variety	NN
show	NN
,	,
is	VBZ
so	RB
popular	JJ
that	IN
viewers	NNS
clamored	VB
to	TO
buy	VB
a	DT
chocolate	NN
product	NN
,	,
``	``
Cacao	VB
Fantastico	VB
,	,
''	''
whose	WP$
praises	VBZ
were	VBD
sung	VBN
each	DT
week	NN
by	IN
dancing	NN
showgirls	VB
--	:
even	RB
though	IN
the	DT
product	NN
did	VBD
n't	RB
exist	VB
.	.

Topping	IN
the	DT
cheese	NN
stunt	NN
,	,
on	IN
another	DT
typical	JJ
evening	NN
of	IN
fun	NN
on	IN
``	``
Wetten	VB
Dass	VB
,	,
''	''
a	DT
contestant	VB
won	VBD
a	DT
bet	NN
with	IN
the	DT
show	NN
's	POS
host	NN
,	,
Thomas	NNP
Gottschalk	VB
,	,
that	IN
he	PRP
could	MD
identify	VB
300	CD
German	JJ
dialects	NNS
over	IN
the	DT
telephone	NN
.	.

A	DT
celebrity	NN
guest	NN
,	,
U.S.	NNP
Ambassador	NNP
to	TO
West	NNP
Germany	NNP
Richard	NNP
Burt	NNP
,	,
also	RB
won	VBD
a	DT
bet	NN
that	IN
someone	NN
could	MD
pile	VBP
up	RP
$	$
150	CD
worth	JJ
of	IN
quarters	NNS
on	IN
a	DT
slanted	VB
coin	NN
.	.

Mr.	NNP
Burt	NNP
nonetheless	RB
paid	VBN
the	DT
penalty	NN
as	RB
if	IN
he	PRP
had	VBD
lost	VBN
,	,
agreeing	VBG
to	TO
spend	VBP
a	DT
day	NN
with	IN
West	NNP
German	JJ
Foreign	NNP
Minister	NNP
Hans-Dietrich	NNP
Genscher	NNP
frying	VB
and	CC
selling	VBG
their	PRP$
combined	VBN
weight	NN
in	IN
potato	NN
pancakes	VB
.	.

If	IN
this	DT
seems	VBZ
like	IN
pretty	RB
weak	JJ
stuff	NN
around	IN
which	WDT
to	TO
raise	VB
the	DT
protectionist	VB
barriers	NNS
,	,
it	PRP
may	MD
be	VB
because	IN
these	DT
shows	VBZ
need	MD
all	DT
the	DT
protection	NN
they	PRP
can	MD
get	VB
.	.

European	NNP
programs	NNS
usually	RB
target	NN
only	RB
their	PRP$
own	JJ
local	JJ
audience	NN
,	,
and	CC
often	RB
only	RB
a	DT
small	JJ
portion	NN
of	IN
that	IN
.	.

Mega-hits	IN
in	IN
Germany	NNP
or	CC
Italy	NNP
rarely	RB
make	VBP
it	PRP
even	RB
to	TO
France	NNP
or	CC
Great	NNP
Britain	NNP
,	,
and	CC
almost	RB
never	RB
show	NN
up	RP
on	IN
U.S.	NNP
screens	NNS
.	.

Attempts	IN
to	TO
produce	VB
``	``
pan-European	VB
''	''
programs	NNS
have	VB
generally	RB
resulted	VBN
in	IN
disappointment	NN
.	.

One	CD
annual	JJ
co-production	NN
,	,
the	DT
three-hour-long	VB
``	``
Eurovision	VB
Song	NN
Contest	VB
,	,
''	''
featuring	VBG
soft-rock	VB
songs	NNS
from	IN
each	DT
of	IN
20	CD
European	NNP
countries	NNS
,	,
has	VBZ
been	VBN
described	VBN
as	RB
the	DT
world	NN
's	POS
most	RBS
boring	JJ
TV	NN
show	NN
.	.

Another	DT
,	,
``	``
Jeux	JJ
Sans	NNP
Frontieres	VB
,	,
''	''
where	WRB
villagers	NNS
from	IN
assorted	JJ
European	NNP
countries	NNS
make	VBP
fools	NNS
of	IN
themselves	PRP
performing	VBG
pointless	JJ
tasks	NNS
,	,
is	VBZ
a	DT
hit	VBD
in	IN
France	NNP
.	.

A	DT
U.S.-made	JJ
imitation	NN
under	IN
the	DT
title	NN
``	``
Almost	RB
Anything	NNP
Goes	VBZ
''	''
flopped	VBD
fast	RB
.	.

For	IN
the	DT
most	RBS
part	NN
,	,
what	WP
's	VBZ
made	VBN
here	RB
stays	VBZ
here	RB
,	,
and	CC
for	IN
good	JJ
reason	NN
.	.

The	DT
cream	NN
of	IN
the	DT
British	JJ
crop	NN
,	,
the	DT
literary	JJ
dramas	NN
that	IN
are	VBP
shown	VBN
on	IN
U.S.	NNP
public	JJ
television	NN
as	RB
``	``
Masterpiece	NNP
Theater	NNP
,	,
''	''
make	VBP
up	RP
a	DT
relatively	RB
small	JJ
part	NN
of	IN
British	JJ
air	NN
time	NN
.	.

Most	RBS
British	JJ
programming	NN
is	VBZ
more	RBR
of	IN
an	DT
acquired	VBN
taste	NN
.	.

There	EX
is	VBZ
,	,
for	IN
instance	NN
,	,
``	``
One	CD
Man	NN
and	CC
His	PRP$
Dog	NNP
,	,
''	''
a	DT
herding	VBG
contest	NN
among	IN
sheep	NN
dogs	NNS
.	.

Also	RB
riveting	JJ
to	TO
the	DT
British	JJ
are	VBP
hours	NNS
of	IN
dart-throwing	VB
championships	NNS
,	,
even	RB
more	RBR
hours	NNS
of	IN
lawn	NN
bowling	NN
contests	VB
and	CC
still	RB
more	RBR
hours	NNS
of	IN
snooker	VB
marathons	VB
.	.

European	NNP
drama	NN
has	VBZ
had	VBD
better	RB
,	,
though	IN
still	RB
mixed	VBN
,	,
fortunes	NNS
.	.

The	DT
most	RBS
popular	JJ
such	JJ
shows	VBZ
focus	NN
on	IN
narrow	JJ
national	JJ
concerns	NNS
.	.

A	DT
French	JJ
knock-off	VB
of	IN
``	``
Dallas	NNP
,	,
''	''
called	VBN
``	``
Chateauvallon	VB
''	''
and	CC
set	VBN
in	IN
a	DT
French	JJ
vineyard	VB
,	,
had	VBD
a	DT
good	JJ
run	VBD
in	IN
France	NNP
,	,
which	WDT
ended	VBD
after	IN
the	DT
female	NN
lead	NN
was	VBD
injured	VBN
in	IN
a	DT
real-life	JJ
auto	NN
accident	NN
.	.

``	``
Schwarzwaldklinik	VB
,	,
''	''
(	(
Black	NNP
Forest	NNP
Clinic	NNP
)	)
,	,
a	DT
kind	NN
of	IN
German	JJ
``	``
St	NNP
.	.
Elsewhere	RB
''	''
set	VBN
in	IN
a	DT
health	NN
spa	NN
,	,
is	VBZ
popular	JJ
in	IN
Germany	NNP
,	,
and	CC
has	VBZ
spread	VBD
into	IN
France	NNP
.	.

Italy	NNP
's	POS
most	RBS
popular	JJ
series	NN
is	VBZ
a	DT
drama	NN
called	VBN
``	``
La	NNP
Piovra	VB
,	,
''	''
or	CC
``	``
The	DT
Octopus	VB
,	,
''	''
which	WDT
chronicles	VBZ
the	DT
fight	VB
of	IN
an	DT
idealistic	JJ
young	JJ
investigator	NN
in	IN
Palermo	VB
against	IN
the	DT
Mafia	NNP
.	.

It	NNP
was	VBD
front-page	VB
news	NN
in	IN
Italy	NNP
earlier	JJR
this	DT
year	NN
when	WRB
the	DT
fictional	JJ
inspector	NN
was	VBD
gunned	VBN
down	IN
in	IN
the	DT
series	NN
.	.

Spain	NNP
's	POS
most	RBS
popular	JJ
mini-series	VB
this	DT
year	NN
was	VBD
``	``
Juncal	VB
,	,
''	''
the	DT
story	NN
of	IN
an	DT
aging	VBG
bullfighter	VB
.	.

``	``
The	DT
trend	NN
is	VBZ
pretty	RB
well	RB
established	VBD
now	RB
that	IN
local	JJ
programs	NNS
are	VBP
the	DT
most	RBS
popular	JJ
,	,
with	IN
American	JJ
programs	NNS
second	NN
,	,
''	''
says	VBZ
Brian	NNP
Wenham	VB
,	,
a	DT
former	JJ
director	NN
of	IN
programs	NNS
for	IN
the	DT
British	JJ
Broadcasting	NNP
Corp	NNP
.	.

``	``
Given	VBN
a	DT
choice	NN
,	,
everybody	NN
will	MD
watch	NN
a	DT
home-produced	VB
show	NN
.	.
''	''

But	CC
frequently	RB
there	EX
is	VBZ
n't	RB
much	JJ
choice	NN
.	.

Thus	RB
,	,
Europe	NNP
has	VBZ
begun	VBN
the	DT
recent	JJ
crusade	NN
to	TO
produce	VB
more	RBR
worthy	JJ
shows	VBZ
of	IN
its	PRP$
own	JJ
,	,
programs	NNS
with	IN
broader	JJR
appeal	VB
.	.

``	``
We	PRP
've	VBP
basically	RB
got	VBD
to	TO
start	VB
from	IN
scratch	NN
,	,
to	TO
train	NN
writers	NNS
and	CC
producers	NNS
to	TO
make	VBP
shows	VBZ
that	IN
other	JJ
people	NNS
will	MD
want	VBP
to	TO
see	VB
,	,
''	''
concedes	VBZ
Colin	NNP
Young	NNP
,	,
head	VB
of	IN
Britain	NNP
's	POS
National	NNP
Film	NNP
Theatre	NNP
School	NNP
.	.

While	IN
some	DT
in	IN
the	DT
U.S.	NNP
contend	VBP
that	IN
advertising	NN
is	VBZ
the	DT
bane	NN
of	IN
television	NN
,	,
here	RB
many	JJ
believe	VBP
that	IN
its	PRP$
absence	NN
is	VBZ
to	TO
blame	NN
for	IN
the	DT
European	NNP
TV	NN
industry	NN
's	POS
sluggish	JJ
development	NN
.	.

Until	IN
recently	RB
,	,
national	JJ
governments	NNS
in	IN
Europe	NNP
controlled	VBN
most	RBS
of	IN
the	DT
air	NN
time	NN
and	CC
allowed	VBN
little	RB
or	CC
no	DT
advertising	NN
.	.

Since	IN
production	NN
costs	NNS
were	VBD
guaranteed	VBN
,	,
it	PRP
did	VBD
n't	RB
matter	VB
that	IN
a	DT
program	NN
could	MD
n't	RB
be	VB
sold	VBN
abroad	RB
or	CC
put	VBN
into	IN
syndication	NN
,	,
as	RB
most	RBS
American	JJ
programs	NNS
are	VBP
.	.

But	CC
not	RB
much	JJ
money	NN
was	VBD
spent	VBN
on	IN
the	DT
shows	VBZ
,	,
either	CC
,	,
a	DT
situation	NN
that	IN
encouraged	VBN
cheap-to-make	VB
talk	NN
and	CC
game	NN
shows	VBZ
,	,
while	IN
discouraging	VBG
expensive-to-produce	VB
dramas	NN
.	.

Now	RB
,	,
however	RB
,	,
commercial	JJ
channels	NNS
are	VBP
coming	VBG
to	TO
most	RBS
European	NNP
countries	NNS
,	,
and	CC
at	IN
the	DT
same	JJ
time	NN
,	,
satellite	NN
and	CC
cable	NN
technology	NN
is	VBZ
spreading	VBG
rapidly	RB
.	.

Just	RB
last	JJ
week	NN
,	,
Greece	NNP
authorized	VBN
two	CD
commercial	JJ
channels	NNS
for	IN
the	DT
first	JJ
time	NN
;	:
Spain	NNP
earlier	JJR
began	VBD
to	TO
allow	VB
commercial	JJ
television	NN
alongside	IN
its	PRP$
state	NN
channels	NNS
.	.

The	DT
result	NN
is	VBZ
a	DT
new	JJ
and	CC
huge	JJ
appetite	NN
for	IN
programming	NN
.	.

But	CC
perhaps	RB
to	TO
the	DT
consternation	VB
of	IN
those	DT
calling	VBG
for	IN
quotas	NNS
,	,
most	RBS
of	IN
this	DT
void	VB
is	VBZ
likely	JJ
to	TO
be	VB
filled	VBN
with	IN
the	DT
cheapest	JJS
and	CC
most	RBS
plentiful	JJ
programming	NN
now	RB
available	JJ
--	:
reruns	NNS
--	:
usually	RB
of	IN
shows	VBZ
made	VBN
in	IN
the	DT
U.S.	NNP
.	.

Sky	NN
Channel	NNP
,	,
a	DT
British-based	JJ
venture	NN
of	IN
Australian-American	VB
press	NN
tycoon	NN
Rupert	NNP
Murdoch	NNP
,	,
offers	VBZ
what	WP
must	MD
be	VB
a	DT
baffling	VB
cultural	JJ
mix	NN
to	TO
most	RBS
of	IN
its	PRP$
audience	NN
.	.

The	DT
financially	RB
struggling	VBG
station	NN
offers	VBZ
programs	NNS
obviously	RB
made	VBN
available	JJ
cheaply	RB
from	IN
its	PRP$
boss	NN
's	POS
other	JJ
ventures	NNS
.	.

In	IN
a	DT
Madrid	NNP
hotel	NN
room	NN
recently	RB
,	,
a	DT
viewer	NN
caught	VBN
the	DT
end	NN
of	IN
a	DT
badly	RB
acted	VBD
series	NN
about	IN
a	DT
fishing	NN
boat	NN
on	IN
Australia	NNP
's	POS
Great	NNP
Barrier	NNP
Reef	VB
,	,
only	RB
to	TO
be	VB
urged	VBD
by	IN
the	DT
British	JJ
announcer	NN
to	TO
``	``
stay	VB
tuned	VBN
for	IN
the	DT
further	JJ
adventures	VB
of	IN
Skippy	VB
the	DT
Kangaroo	VB
.	.
''	''

Lisa	NNP
Grishaw-Mueller	VB
in	IN
Bonn	NNP
,	,
Laura	NNP
Colby	VB
in	IN
Milan	NNP
,	,
Tim	NNP
Carrington	VB
in	IN
London	NNP
and	CC
Carlta	VB
Vitzhum	VB
in	IN
Madrid	NNP
contributed	VBD
to	TO
this	DT
article	NN
.	.

British	JJ
Aerospace	NNP
PLC	NNP
and	CC
France	NNP
's	POS
Thomson-CSF	NNP
S.A.	NNP
said	VBD
they	PRP
are	VBP
nearing	VBG
an	DT
agreement	NN
to	TO
merge	VB
their	PRP$
guided-missile	JJ
divisions	NNS
,	,
greatly	RB
expanding	VBG
collaboration	NN
between	IN
the	DT
two	CD
defense	NN
contractors	NNS
.	.

The	DT
50-50	JJ
joint	JJ
venture	NN
,	,
which	WDT
may	MD
be	VB
dubbed	VBN
Eurodynamics	VB
,	,
would	MD
have	VB
combined	VBN
annual	JJ
sales	NNS
of	IN
at	IN
least	JJS
#	#
1.4	CD
billion	CD
(	(
$	$
2.17	CD
billion	CD
)	)
and	CC
would	MD
be	VB
among	IN
the	DT
world	NN
's	POS
largest	JJS
missile	NN
makers	NNS
.	.

After	IN
two	CD
years	NNS
of	IN
talks	NNS
,	,
plans	NNS
for	IN
the	DT
venture	NN
are	VBP
sufficiently	RB
advanced	VBD
for	IN
the	DT
companies	NNS
to	TO
seek	VBP
French	JJ
and	CC
British	JJ
government	NN
clearance	NN
.	.

The	DT
companies	NNS
hope	VBP
for	IN
a	DT
final	JJ
agreement	NN
by	IN
year-end	NN
.	.

The	DT
venture	NN
would	MD
strengthen	VB
the	DT
rapidly	RB
growing	VBG
ties	NNS
between	IN
the	DT
two	CD
companies	NNS
,	,
and	CC
help	VB
make	VBP
them	PRP
a	DT
leading	VBG
force	NN
in	IN
European	NNP
defense	NN
contracting	NN
.	.

In	IN
recent	JJ
months	NNS
,	,
a	DT
string	NN
of	IN
cross-border	JJ
mergers	NNS
and	CC
joint	JJ
ventures	NNS
have	VB
reshaped	VBD
the	DT
once-balkanized	VB
world	NN
of	IN
European	NNP
arms	NNS
manufacture	VB
.	.

Already	RB
,	,
British	JJ
Aerospace	NNP
and	CC
French	JJ
government-controlled	JJ
Thomson-CSF	NNP
collaborate	VB
on	IN
a	DT
British	JJ
missile	NN
contract	NN
and	CC
on	IN
an	DT
air-traffic	NN
control	NN
radar	NN
system	NN
.	.

Just	RB
last	JJ
week	NN
they	PRP
announced	VBD
they	PRP
may	MD
make	VBP
a	DT
joint	JJ
bid	NN
to	TO
buy	VB
Ferranti	NNP
International	NNP
Signal	NNP
PLC	NNP
,	,
a	DT
smaller	JJR
British	JJ
defense	NN
contractor	NN
rocked	VBD
by	IN
alleged	VBN
accounting	NN
fraud	NN
at	IN
a	DT
U.S.	NNP
unit	NN
.	.

The	DT
sudden	JJ
romance	NN
of	IN
British	JJ
Aerospace	NNP
and	CC
Thomson-CSF	NNP
--	:
traditionally	RB
bitter	JJ
competitors	NNS
for	IN
Middle	NNP
East	NNP
and	CC
Third	LS
World	NNP
weapons	NNS
contracts	NNS
--	:
is	VBZ
stirring	VBG
controversy	NN
in	IN
Western	JJ
Europe	NNP
's	POS
defense	NN
industry	NN
.	.

Most	RBS
threatened	VBD
by	IN
closer	RBR
British	JJ
Aerospace-Thomson	VB
ties	NNS
would	MD
be	VB
their	PRP$
respective	JJ
national	JJ
rivals	NNS
,	,
including	VBG
Matra	NNP
S.A.	NNP
in	IN
France	NNP
and	CC
Britain	NNP
's	POS
General	NNP
Electric	NNP
Co.	NNP
PLC	NNP
.	.

But	CC
neither	CC
Matra	NNP
nor	CC
GEC	NNP
--	:
unrelated	JJ
to	TO
Stamford	NNP
,	,
Conn.-based	JJ
General	NNP
Electric	NNP
Co.	NNP
--	:
are	VBP
sitting	VBG
quietly	RB
by	IN
as	RB
their	PRP$
competitors	NNS
join	VB
forces	NNS
.	.

Yesterday	NN
,	,
a	DT
source	NN
close	VB
to	TO
GEC	NNP
confirmed	VBD
that	IN
his	PRP$
company	NN
may	MD
join	VB
the	DT
Ferranti	NNP
fight	VB
,	,
as	RB
part	NN
of	IN
a	DT
possible	JJ
consortium	NN
that	IN
would	MD
bid	NN
against	IN
British	JJ
Aerospace	NNP
and	CC
Thomson-CSF	NNP
.	.

Companies	NNPS
with	IN
which	WDT
GEC	NNP
has	VBZ
had	VBD
talks	NNS
about	IN
a	DT
possible	JJ
joint	JJ
Ferranti	NNP
bid	NN
include	VB
Matra	NNP
,	,
Britain	NNP
's	POS
Dowty	VB
Group	NNP
PLC	NNP
,	,
West	NNP
Germany	NNP
's	POS
Daimler-Benz	NNP
AG	NNP
,	,
and	CC
France	NNP
's	POS
Dassault	NNP
group	NN
.	.

But	CC
it	PRP
may	MD
be	VB
weeks	NNS
before	IN
GEC	NNP
and	CC
its	PRP$
potential	JJ
partners	NNS
decide	VB
whether	IN
to	TO
bid	NN
,	,
the	DT
source	NN
indicated	VBD
.	.

GEC	NNP
plans	NNS
first	JJ
to	TO
study	NN
Ferranti	NNP
's	POS
financial	JJ
accounts	NNS
,	,
which	WDT
auditors	NNS
recently	RB
said	VBD
included	VBN
#	#
215	CD
million	CD
in	IN
fictitious	JJ
contracts	NNS
at	IN
a	DT
U.S.	NNP
unit	NN
,	,
International	NNP
Signal	NNP
&	CC
Control	NNP
Group	NNP
,	,
with	IN
which	WDT
Ferranti	NNP
merged	VBN
last	JJ
year	NN
.	.

Also	RB
,	,
any	DT
GEC	NNP
bid	NN
might	MD
be	VB
blocked	VBN
by	IN
British	JJ
antitrust	JJ
regulators	NNS
;	:
Ferranti	NNP
is	VBZ
GEC	NNP
's	POS
main	JJ
competitor	NN
on	IN
several	JJ
key	NN
defense-electronics	NNS
contracts	NNS
,	,
and	CC
its	PRP$
purchase	VB
by	IN
GEC	NNP
may	MD
heighten	VB
British	JJ
Defense	NNP
Ministry	NNP
worries	NNS
about	IN
concentration	NN
in	IN
the	DT
country	NN
's	POS
defense	NN
industry	NN
.	.

A	DT
consortium	NN
bid	NN
,	,
however	RB
,	,
would	MD
diminish	VB
GEC	NNP
's	POS
direct	JJ
role	NN
in	IN
Ferranti	NNP
and	CC
might	MD
consequently	RB
appease	VB
ministry	NN
officials	NNS
.	.

A	DT
British	JJ
Aerospace	NNP
spokeswoman	NN
appeared	VBD
unperturbed	VB
by	IN
the	DT
prospect	NN
of	IN
a	DT
fight	VB
with	IN
GEC	NNP
for	IN
Ferranti	NNP
:	:
``	``
Competition	NN
is	VBZ
the	DT
name	NN
of	IN
the	DT
game	NN
,	,
''	''
she	PRP
said	VBD
.	.

At	IN
least	JJS
one	CD
potential	JJ
GEC	NNP
partner	NN
,	,
Matra	NNP
,	,
insists	VBZ
it	PRP
is	VBZ
n't	RB
interested	JJ
in	IN
Ferranti	NNP
.	.

``	``
We	PRP
have	VB
nothing	NN
to	TO
say	VBP
about	IN
this	DT
affair	NN
,	,
which	WDT
does	VBZ
n't	RB
concern	NN
us	PRP
,	,
''	''
a	DT
Matra	NNP
official	NN
said	VBD
Sunday	NNP
.	.

The	DT
missile	NN
venture	NN
,	,
the	DT
British	JJ
Aerospace	NNP
spokeswoman	NN
said	VBD
,	,
is	VBZ
a	DT
needed	VBN
response	NN
to	TO
the	DT
``	``
new	JJ
environment	NN
''	''
in	IN
defense	NN
contracting	NN
.	.

For	IN
both	DT
Thomson	NNP
and	CC
British	JJ
Aerospace	NNP
,	,
earnings	NNS
in	IN
their	PRP$
home	RB
markets	NNS
have	VB
come	VBP
under	IN
pressure	NN
from	IN
increasingly	RB
tight-fisted	VB
defense	NN
ministries	NNS
;	:
and	CC
Middle	NNP
East	NNP
sales	NNS
,	,
a	DT
traditional	JJ
mainstay	NN
for	IN
both	DT
companies	NNS
'	POS
exports	NNS
,	,
have	VB
been	VBN
hurt	VBN
by	IN
five	CD
years	NNS
of	IN
weak	JJ
oil	NN
prices	NNS
.	.

The	DT
venture	NN
's	POS
importance	NN
for	IN
Thomson	NNP
is	VBZ
great	JJ
.	.

Thomson	NNP
feels	VBZ
the	DT
future	NN
of	IN
its	PRP$
defense	NN
business	NN
depends	VBZ
on	IN
building	NN
cooperation	NN
with	IN
other	JJ
Europeans	NNPS
.	.

The	DT
European	JJ
defense	NN
industry	NN
is	VBZ
consolidating	VBG
;	:
for	IN
instance	NN
,	,
West	NNP
Germany	NNP
's	POS
Siemens	NNP
AG	NNP
recently	RB
joined	VBD
GEC	NNP
in	IN
a	DT
takeover	NN
of	IN
Britain	NNP
's	POS
Plessey	VB
Co.	NNP
,	,
and	CC
Daimler-Benz	NNP
agreed	VBD
to	TO
buy	VB
Messerschmitt-Boelkow	VB
Blohm	VB
G.m.b	NNP
.	.
H	NN
.	.

In	IN
missiles	NNS
,	,
Thomson	NNP
is	VBZ
already	RB
overshadowed	VBN
by	IN
British	JJ
Aerospace	NNP
and	CC
by	IN
its	PRP$
home	RB
rival	NN
,	,
France	NNP
's	POS
Aerospatiale	VB
S.A.	NNP
;	:
to	TO
better	RB
compete	VB
,	,
Thomson	NNP
officials	NNS
say	VBP
,	,
they	PRP
need	MD
a	DT
partnership	NN
.	.

To	TO
justify	VB
50-50	JJ
ownership	NN
of	IN
the	DT
planned	VBD
venture	NN
,	,
Thomson	NNP
would	MD
make	VBP
a	DT
cash	NN
payment	NN
to	TO
British	JJ
Aerospace	NNP
.	.

Annual	JJ
revenue	NN
of	IN
British	JJ
Aerospace	NNP
's	POS
missile	NN
business	NN
is	VBZ
about	IN
#	#
950	CD
million	CD
,	,
a	DT
Thomson	NNP
spokesman	NN
said	VBD
.	.

British	JJ
Aerospace	NNP
's	POS
chief	NN
missile	NN
products	NNS
include	VB
its	PRP$
17-year-old	JJ
family	NN
of	IN
Rapier	VB
surface-to-air	VB
missiles	NNS
.	.

Thomson	NNP
missile	NN
products	NNS
,	,
with	IN
about	IN
half	DT
British	JJ
Aerospace	NNP
's	POS
annual	JJ
revenue	NN
,	,
include	VB
the	DT
Crotale	VB
surface-to-air	VB
missile	NN
family	NN
.	.

Interprovincial	NNP
Pipe	NNP
Line	NNP
Co.	NNP
said	VBD
it	PRP
will	MD
delay	VB
a	DT
proposed	VBN
two-step	JJ
,	,
830	CD
million	CD
Canadian-dollar	VB
(	(
US$	$
705.6	VB
million	CD
)	)
expansion	NN
of	IN
its	PRP$
system	NN
because	IN
Canada	NNP
's	POS
output	NN
of	IN
crude	NN
oil	NN
is	VBZ
shrinking	VBG
.	.

Interprovincial	NNP
,	,
Canada	NNP
's	POS
biggest	JJS
oil	NN
pipeline	NN
operator	NN
and	CC
a	DT
major	JJ
transporter	NN
of	IN
crude	NN
to	TO
the	DT
U.S.	NNP
,	,
said	VBD
revised	VBN
industry	NN
forecasts	NNS
indicate	VB
that	IN
Canadian	JJ
oil	NN
output	NN
will	MD
total	JJ
about	IN
1.64	CD
million	CD
barrels	NNS
a	DT
day	NN
by	IN
1991	CD
,	,
8	CD
%	NN
lower	JJR
than	IN
a	DT
previous	JJ
estimate	NN
.	.

Canadian	JJ
crude	NN
production	NN
averaged	VBD
about	IN
1.69	CD
million	CD
barrels	NNS
a	DT
day	NN
during	IN
1989	CD
's	POS
first	JJ
half	DT
,	,
about	IN
1	CD
%	NN
below	IN
the	DT
1988	CD
level	NN
.	.

``	``
The	DT
capability	NN
of	IN
existing	VBG
fields	NNS
to	TO
deliver	VB
oil	NN
is	VBZ
dropping	VBG
,	,
''	''
and	CC
oil	NN
exploration	NN
activity	NN
is	VBZ
also	RB
down	IN
dramatically	RB
,	,
as	RB
many	JJ
producers	NNS
shift	NN
their	PRP$
emphasis	NN
to	TO
natural	JJ
gas	NN
,	,
said	VBD
Ronald	NNP
Watkins	NNP
,	,
vice	NN
president	NN
for	IN
government	NN
and	CC
industry	NN
relations	NNS
with	IN
Interprovincial	NNP
's	POS
parent	NN
,	,
Interhome	NNP
Energy	NNP
Inc	NNP
.	.

Mr.	NNP
Watkins	NNP
said	VBD
volume	NN
on	IN
Interprovincial	NNP
's	POS
system	NN
is	VBZ
down	IN
about	IN
2	LS
%	NN
since	IN
January	NNP
and	CC
is	VBZ
expected	VBN
to	TO
fall	VB
further	JJ
,	,
making	VBG
expansion	NN
unnecessary	JJ
until	IN
perhaps	RB
the	DT
mid-1990s	CD
.	.

``	``
There	EX
has	VBZ
been	VBN
a	DT
swing	VBP
of	IN
the	DT
pendulum	VB
back	RB
to	TO
the	DT
gas	NN
side	NN
,	,
''	''
he	PRP
said	VBD
.	.

Many	DT
of	IN
Canada	NNP
's	POS
oil	NN
and	CC
gas	NN
producers	NNS
say	VBP
the	DT
outlook	NN
for	IN
natural	JJ
gas	NN
is	VBZ
better	RB
than	IN
it	PRP
is	VBZ
for	IN
oil	NN
,	,
and	CC
have	VB
shifted	VBN
their	PRP$
exploration	NN
and	CC
development	NN
budgets	NNS
accordingly	RB
.	.

The	DT
number	NN
of	IN
active	JJ
drilling	NN
rigs	NNS
in	IN
Canada	NNP
is	VBZ
down	IN
30	CD
%	NN
from	IN
a	DT
year	NN
ago	IN
,	,
and	CC
the	DT
number	NN
of	IN
completed	VBN
oil	NN
wells	NNS
is	VBZ
``	``
down	IN
more	RBR
than	IN
that	IN
,	,
due	JJ
to	TO
the	DT
increasing	VBG
focus	NN
on	IN
gas	NN
exploration	NN
,	,
''	''
said	VBD
Robert	NNP
Feick	VB
,	,
manager	NN
of	IN
crude	NN
oil	NN
with	IN
Calgary	NNP
's	POS
Independent	JJ
Petroleum	NN
Association	NNP
of	IN
Canada	NNP
,	,
an	DT
industry	NN
group	NN
.	.

Mr.	NNP
Watkins	NNP
said	VBD
the	DT
main	JJ
reason	NN
for	IN
the	DT
production	NN
decline	NN
is	VBZ
shrinking	VBG
output	NN
of	IN
light	JJ
crude	NN
from	IN
mature	VB
,	,
conventional	JJ
fields	NNS
in	IN
western	JJ
Canada	NNP
.	.

Interprovincial	NNP
transports	VBZ
about	IN
75	CD
%	NN
of	IN
all	DT
crude	NN
produced	VBD
in	IN
western	JJ
Canada	NNP
,	,
and	CC
almost	RB
60	CD
%	NN
of	IN
Interprovincial	NNP
's	POS
total	JJ
volume	NN
consists	VBZ
of	IN
light	JJ
crude	NN
.	.

Nearly	RB
all	DT
of	IN
the	DT
crude	NN
oil	NN
that	IN
Canada	NNP
exports	NNS
to	TO
the	DT
U.S.	NNP
is	VBZ
transported	VBN
on	IN
Interprovincial	NNP
's	POS
system	NN
,	,
whose	WP$
main	JJ
line	NN
runs	VBZ
from	IN
Edmonton	VB
to	TO
major	JJ
U.S.	NNP
and	CC
Canadian	JJ
cities	NNS
in	IN
the	DT
Great	NNP
Lakes	NNP
region	NN
,	,
including	VBG
Chicago	NNP
,	,
Buffalo	NNP
,	,
Toronto	NNP
and	CC
Montreal	NNP
.	.

Canada	NNP
's	POS
current	NN
oil	NN
exports	NNS
to	TO
the	DT
U.S.	NNP
total	JJ
about	IN
600,000	CD
barrels	NNS
a	DT
day	NN
,	,
or	CC
about	IN
9.1	CD
%	NN
of	IN
net	JJ
U.S.	NNP
crude	NN
imports	NNS
,	,
said	VBD
John	NNP
Lichtblau	NNP
,	,
president	NN
of	IN
the	DT
New	NNP
York-based	JJ
Petroleum	NN
Industry	NNP
Research	NNP
Foundation	NNP
.	.

That	DT
ranks	NNS
Canada	NNP
as	RB
the	DT
fourth-largest	JJ
source	NN
of	IN
imported	VBN
crude	NN
,	,
behind	IN
Saudi	NNP
Arabia	NNP
,	,
Nigeria	NNP
and	CC
Mexico	NNP
.	.

Mr.	NNP
Lichtblau	NNP
said	VBD
Canada	NNP
's	POS
declining	VBG
crude	NN
output	NN
,	,
combined	VBN
with	IN
the	DT
fast-shrinking	VB
output	NN
of	IN
U.S.	NNP
crude	NN
,	,
will	MD
help	VB
intensify	VB
U.S.	NNP
reliance	NN
on	IN
oil	NN
from	IN
overseas	RB
,	,
particularly	RB
the	DT
Middle	NNP
East	NNP
.	.

``	``
It	NNP
's	POS
very	RB
much	JJ
a	DT
growing	VBG
concern	NN
.	.

But	CC
when	WRB
something	NN
is	VBZ
inevitable	JJ
,	,
you	PRP
learn	VBP
to	TO
live	VB
with	IN
it	PRP
,	,
''	''
he	PRP
said	VBD
.	.

Mr.	NNP
Lichtblau	NNP
stressed	VBD
that	IN
the	DT
delay	VB
of	IN
Interprovincial	NNP
's	POS
proposed	VBN
expansion	NN
wo	MD
n't	RB
by	IN
itself	PRP
increase	NN
U.S.	NNP
dependence	NN
on	IN
offshore	RB
crude	NN
,	,
however	RB
,	,
since	IN
Canadian	JJ
imports	NNS
are	VBP
limited	VBN
in	IN
any	DT
case	NN
by	IN
Canada	NNP
's	POS
falling	VBG
output	NN
.	.

Under	IN
terms	NNS
of	IN
its	PRP$
proposed	JJ
two-step	JJ
expansion	NN
,	,
which	WDT
would	MD
have	VB
required	VBN
regulatory	JJ
approval	NN
,	,
Interprovincial	NNP
intended	VBD
to	TO
add	VB
200,000	CD
barrels	NNS
a	DT
day	NN
of	IN
additional	JJ
capacity	NN
to	TO
its	PRP$
system	NN
,	,
beginning	NN
with	IN
a	DT
modest	JJ
expansion	NN
by	IN
1991	CD
.	.

The	DT
system	NN
currently	RB
has	VBZ
a	DT
capacity	NN
of	IN
1.55	CD
million	CD
barrels	NNS
a	DT
day	NN
.	.

Inland	NNP
Steel	NNP
Industries	NNPS
Inc.	NNP
expects	VBZ
to	TO
report	NN
that	IN
third-quarter	NN
earnings	NNS
dropped	VBD
more	RBR
than	IN
50	CD
%	NN
from	IN
the	DT
previous	JJ
quarter	NN
as	RB
a	DT
result	NN
of	IN
reduced	VBN
sales	NNS
volume	NN
and	CC
increased	VBN
costs	NNS
.	.

In	IN
the	DT
second	NN
quarter	NN
,	,
the	DT
steelmaker	NN
had	VBD
net	JJ
income	NN
of	IN
$	$
45.3	CD
million	CD
or	CC
$	$
1.25	CD
a	DT
share	NN
,	,
including	VBG
a	DT
pretax	NN
charge	NN
of	IN
$	$
17	CD
million	CD
related	VBN
to	TO
the	DT
settlement	NN
of	IN
a	DT
suit	NN
,	,
on	IN
sales	NNS
of	IN
$	$
1.11	CD
billion	CD
.	.

The	DT
company	NN
said	VBD
normal	JJ
seasonal	JJ
softness	NN
and	CC
lost	VBN
orders	NNS
caused	VBN
by	IN
prolonged	JJ
labor	NN
talks	NNS
reduced	VBN
shipments	NNS
by	IN
200,000	CD
tons	NNS
in	IN
the	DT
latest	JJS
quarter	NN
,	,
compared	VBN
with	IN
the	DT
second	NN
quarter	NN
.	.

At	IN
the	DT
same	JJ
time	NN
,	,
the	DT
integrated-steel	NN
business	NN
was	VBD
hurt	VBN
by	IN
continued	VBD
increases	NNS
in	IN
materials	NNS
costs	NNS
and	CC
repair	VB
and	CC
maintenance	NN
expenses	NNS
,	,
as	RB
well	RB
as	RB
higher	JJR
labor	NN
costs	NNS
under	IN
its	PRP$
new	JJ
contract	NN
.	.

The	DT
service-center	NN
business	NN
was	VBD
hurt	VBN
by	IN
reduced	VBN
margins	NNS
and	CC
start-up	JJ
costs	NNS
associated	VBN
with	IN
its	PRP$
Joseph	NNP
T.	NNP
Ryerson	VB
&	CC
Son	NNP
unit	NN
.	.

The	DT
company	NN
said	VBD
it	PRP
is	VBZ
beginning	NN
to	TO
see	VB
some	DT
shipping-rate	VB
improvements	NNS
in	IN
both	DT
the	DT
intergrated-steel	VB
and	CC
steel-service-center	VB
segments	NNS
,	,
which	WDT
should	MD
result	NN
in	IN
improved	VBN
results	NNS
for	IN
the	DT
fourth	JJ
quarter	NN
.	.

Inland	NNP
said	VBD
its	PRP$
third-quarter	NN
results	NNS
will	MD
be	VB
announced	VBD
later	RB
this	DT
week	NN
.	.

In	IN
the	DT
year-earlier	JJ
third	JJ
quarter	NN
,	,
when	WRB
the	DT
industry	NN
was	VBD
in	IN
the	DT
midst	NN
of	IN
a	DT
boom	NN
,	,
the	DT
company	NN
had	VBD
net	JJ
of	IN
$	$
61	CD
million	CD
,	,
or	CC
$	$
1.70	CD
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
1.02	CD
billion	CD
.	.

Predicting	IN
the	DT
financial	JJ
results	NNS
of	IN
computer	NN
firms	NNS
has	VBZ
been	VBN
a	DT
tough	JJ
job	NN
lately	RB
.	.

Take	VBP
Microsoft	NNP
Corp.	NNP
,	,
the	DT
largest	JJS
maker	NN
of	IN
personal	JJ
computer	NN
software	NN
and	CC
generally	RB
considered	VBN
an	DT
industry	NN
bellwether	JJ
.	.

In	IN
July	NNP
,	,
the	DT
company	NN
stunned	VBD
Wall	NNP
Street	NNP
with	IN
the	DT
prediction	NN
that	IN
growth	NN
in	IN
the	DT
personal	JJ
computer	NN
business	NN
overall	JJ
would	MD
be	VB
only	RB
10	CD
%	NN
in	IN
1990	CD
,	,
a	DT
modest	JJ
increase	NN
when	WRB
compared	VBN
with	IN
the	DT
sizzling	VBG
expansion	NN
of	IN
years	NNS
past	IN
.	.

Investors	NNS
--	:
taking	VBG
this	DT
as	RB
a	DT
sign	NN
that	IN
a	DT
broad	JJ
industry	NN
slump	NN
was	VBD
in	IN
the	DT
offing	NN
--	:
reacted	VBN
by	IN
selling	VBG
the	DT
company	NN
's	POS
stock	NN
,	,
which	WDT
lost	VBN
$	$
3.25	CD
that	IN
day	NN
to	TO
close	VB
at	IN
$	$
52	CD
in	IN
national	JJ
over-the-counter	NN
trading	NN
.	.

But	CC
that	IN
was	VBD
all	DT
of	IN
three	CD
months	NNS
ago	IN
.	.

Last	JJ
week	NN
,	,
Microsoft	NNP
said	VBD
it	PRP
expects	VBZ
revenue	NN
for	IN
its	PRP$
first	JJ
quarter	NN
ended	VBD
Sept.	NNP
30	CD
to	TO
increase	NN
34	CD
%	NN
.	.

The	DT
announcement	NN
caused	VBN
the	DT
company	NN
's	POS
stock	NN
to	TO
surge	NN
$	$
6.50	CD
to	TO
close	VB
at	IN
$	$
75.50	VB
a	DT
share	NN
.	.

Microsoft	NNP
's	POS
surprising	JJ
strength	NN
is	VBZ
one	CD
example	NN
of	IN
the	DT
difficulty	NN
facing	VBG
investors	NNS
looking	VBG
for	IN
reassurances	VB
about	IN
the	DT
financial	JJ
health	NN
of	IN
the	DT
computer	NN
firms	NNS
.	.

``	``
It	NNP
's	POS
hard	RB
to	TO
know	VB
what	WP
to	TO
expect	VBP
at	IN
this	DT
point	VBP
,	,
''	''
said	VBD
Peter	NNP
Rogers	NNP
,	,
an	DT
analyst	NN
at	IN
Robertson	NNP
Stephens	NNP
&	CC
Co	NNP
.	.

``	``
The	DT
industry	NN
defies	VB
characterization	NN
.	.
''	''

To	TO
illustrate	VBP
,	,
Mr.	NNP
Rogers	NNP
said	VBD
that	IN
of	IN
the	DT
14	CD
computer-related	JJ
firms	NNS
he	PRP
follows	VBZ
,	,
half	DT
will	MD
report	NN
for	IN
their	PRP$
most	RBS
recent	JJ
quarter	NN
earnings	NNS
below	IN
last	JJ
year	NN
's	POS
results	NNS
,	,
and	CC
half	DT
above	IN
those	DT
results	NNS
.	.

Among	IN
those	DT
companies	NNS
expected	VBN
to	TO
have	VB
a	DT
down	RB
quarter	NN
are	VBP
Hewlett-Packard	NNP
Co.	NNP
,	,
Amdahl	NNP
Corp.	NNP
and	CC
Sun	NNP
Microsystems	NNPS
Inc.	NNP
,	,
generally	RB
solid	JJ
performers	NNS
in	IN
the	DT
past	IN
.	.

International	NNP
Business	NNP
Machines	NNPS
Corp.	NNP
also	RB
is	VBZ
expected	VBN
to	TO
report	NN
disappointing	JJ
results	NNS
.	.

Apple	NNP
Computer	NNP
Inc.	NNP
,	,
meanwhile	RB
,	,
is	VBZ
expected	VBN
to	TO
show	NN
improved	VBN
earnings	NNS
for	IN
the	DT
period	NN
ended	VBD
Sept	NNP
.	.

Another	DT
contradictory	JJ
message	NN
comes	VBZ
from	IN
Businessland	NNP
Inc.	NNP
,	,
a	DT
computer	NN
retailer	NN
.	.

In	IN
July	NNP
,	,
the	DT
company	NN
reported	VBN
that	IN
booming	JJ
sales	NNS
of	IN
new	JJ
personal	JJ
computers	NNS
from	IN
Apple	NNP
and	CC
IBM	NNP
had	VBD
resulted	VBN
in	IN
net	JJ
income	NN
more	RBR
than	IN
doubling	VBG
for	IN
its	PRP$
fourth	JJ
quarter	NN
ended	VBD
June	NNP
30	CD
to	TO
$	$
7.4	CD
million	CD
,	,
or	CC
23	CD
cents	NNS
a	DT
share	NN
.	.

This	DT
month	NN
,	,
however	RB
,	,
Businessland	NNP
warned	VBD
investors	NNS
that	IN
results	NNS
for	IN
its	PRP$
first	JJ
quarter	NN
ended	VBD
Sept.	NNP
30	CD
had	VBD
n't	RB
met	VBN
expectations	NNS
.	.

The	DT
company	NN
said	VBD
it	PRP
expects	VBZ
earnings	NNS
of	IN
14	CD
to	TO
17	CD
cents	NNS
a	DT
share	NN
,	,
down	IN
from	IN
25	CD
cents	NNS
a	DT
share	NN
in	IN
the	DT
year-earlier	JJ
period	NN
.	.

While	IN
the	DT
earnings	NNS
picture	VBP
confuses	NN
,	,
observers	NNS
say	VBP
the	DT
major	JJ
forces	NNS
expected	VBN
to	TO
shape	NN
the	DT
industry	NN
in	IN
the	DT
coming	VBG
year	NN
are	VBP
clearer	JJR
.	.

Companies	NNPS
will	MD
continue	VB
to	TO
war	NN
over	IN
standards	NNS
.	.

In	IN
computer	NN
publishing	VBG
,	,
a	DT
battle	NN
over	IN
typefaces	VB
is	VBZ
hurting	VBG
Adobe	NNP
Systems	NNPS
Inc.	NNP
,	,
which	WDT
sells	VBZ
software	NN
that	IN
controls	NNS
the	DT
image	NN
produced	VBD
by	IN
printers	NNS
and	CC
displays	NNS
.	.

Until	IN
recently	RB
,	,
Adobe	NNP
had	VBD
a	DT
lock	NN
on	IN
the	DT
market	NN
for	IN
image	NN
software	NN
,	,
but	CC
last	JJ
month	NN
Apple	NNP
,	,
Adobe	NNP
's	POS
biggest	JJS
customer	NN
,	,
and	CC
Microsoft	NNP
rebelled	VB
.	.

Now	RB
the	DT
two	CD
firms	NNS
are	VBP
collaborating	VBG
on	IN
an	DT
alternative	NN
to	TO
Adobe	NNP
's	POS
approach	NN
,	,
and	CC
analysts	NNS
say	VBP
they	PRP
are	VBP
likely	JJ
to	TO
carry	VBP
IBM	NNP
,	,
the	DT
biggest	JJS
seller	NN
of	IN
personal	JJ
computers	NNS
,	,
along	IN
with	IN
them	PRP
.	.

The	DT
short-term	JJ
outlook	NN
for	IN
Adobe	NNP
's	POS
business	NN
,	,
however	RB
,	,
appears	VBZ
strong	JJ
.	.

The	DT
company	NN
is	VBZ
beginning	NN
to	TO
ship	VB
a	DT
new	JJ
software	NN
program	NN
that	IN
's	POS
being	VBG
heralded	VBN
as	RB
a	DT
boon	NN
for	IN
owners	NNS
of	IN
low-end	JJ
printers	NNS
sold	VBN
by	IN
Apple	NNP
.	.

The	DT
program	NN
is	VBZ
aimed	VBN
at	IN
improving	VBG
the	DT
quality	NN
of	IN
printed	VBN
material	NN
.	.

John	NNP
Warnock	VB
,	,
Adobe	NNP
's	POS
chief	NN
executive	NN
officer	NN
,	,
said	VBD
the	DT
Mountain	NNP
View	NNP
,	,
Calif.	NNP
,	,
company	NN
has	VBZ
been	VBN
receiving	VBG
1,000	CD
calls	VBZ
a	DT
day	NN
about	IN
the	DT
product	NN
since	IN
it	PRP
was	VBD
demonstrated	VBD
at	IN
a	DT
computer	NN
publishing	VBG
conference	NN
several	JJ
weeks	NNS
ago	IN
.	.

Meanwhile	RB
,	,
competition	NN
between	IN
various	JJ
operating	VBG
systems	NNS
,	,
which	WDT
control	NN
the	DT
basic	JJ
functions	NNS
of	IN
a	DT
computer	NN
,	,
spells	NNS
trouble	NN
for	IN
software	NN
firms	NNS
generally	RB
.	.

``	``
It	NNP
creates	VBZ
uncertainty	NN
and	CC
usually	RB
slows	VBZ
down	IN
sales	NNS
,	,
''	''
said	VBD
Russ	NNP
Crabs	VB
,	,
an	DT
analyst	NN
at	IN
Soundview	NNP
Financial	NNP
Group	NNP
.	.

Mr.	NNP
Crabs	VB
said	VBD
this	DT
probably	RB
is	VBZ
behind	IN
the	DT
expected	VBN
weak	JJ
performance	NN
of	IN
Aldus	NNP
Corp.	NNP
,	,
maker	NN
of	IN
a	DT
widely	RB
used	VBN
computer	NN
publishing	VBG
program	NN
.	.

He	PRP
expects	VBZ
Aldus	NNP
to	TO
report	NN
earnings	NNS
of	IN
21	CD
cents	NNS
a	DT
share	NN
on	IN
revenues	NNS
of	IN
$	$
19.5	CD
million	CD
for	IN
its	PRP$
third	JJ
quarter	NN
,	,
compared	VBN
with	IN
earnings	NNS
of	IN
30	CD
cents	NNS
a	DT
share	NN
on	IN
revenue	NN
of	IN
20.4	CD
million	CD
in	IN
the	DT
year-earlier	JJ
period	NN
.	.

Aldus	NNP
officials	NNS
could	MD
n't	RB
be	VB
reached	VBN
for	IN
comment	NN
.	.

On	IN
the	DT
other	JJ
hand	NN
,	,
the	DT
battle	NN
of	IN
the	DT
bus	NN
is	VBZ
expected	VBN
to	TO
grow	VB
increasingly	RB
irrelevant	JJ
.	.

A	DT
bus	NN
is	VBZ
the	DT
data	NNS
highway	NN
within	IN
a	DT
computer	NN
.	.

IBM	NNP
is	VBZ
backing	NN
one	CD
type	NN
of	IN
bus	NN
called	VBN
microchannel	VB
,	,
while	IN
the	DT
nine	CD
other	JJ
leading	VBG
computer	NN
makers	NNS
,	,
including	VBG
H-P	VB
and	CC
Compaq	NNP
Computer	NNP
Corp.	NNP
,	,
have	VB
chosen	VBN
another	DT
method	NN
.	.

``	``
Users	VB
do	VB
n't	RB
care	NN
about	IN
the	DT
bus	NN
,	,
''	''
said	VBD
Daniel	NNP
Benton	NNP
,	,
an	DT
analyst	NN
at	IN
Goldman	NNP
,	,
Sachs	NNP
&	CC
Co	NNP
.	.

He	PRP
said	VBD
Apple	NNP
's	POS
family	NN
of	IN
Macintosh	NNP
computers	NNS
,	,
for	IN
instance	NN
,	,
uses	NNS
four	CD
different	JJ
buses	NNS
``	``
and	CC
no	DT
one	CD
seems	VBZ
to	TO
mind	NN
.	.
''	''

The	DT
gap	NN
between	IN
winners	NNS
and	CC
laggards	VB
will	MD
grow	VB
.	.

In	IN
personal	JJ
computers	NNS
,	,
Apple	NNP
,	,
Compaq	NNP
and	CC
IBM	NNP
are	VBP
expected	VBN
to	TO
tighten	VB
their	PRP$
hold	VBP
on	IN
their	PRP$
business	NN
.	.

At	IN
the	DT
same	JJ
time	NN
,	,
second-tier	NNP
firms	NNS
will	MD
continue	VB
to	TO
lose	VB
ground	VBD
.	.

Some	DT
lagging	JJ
competitors	NNS
even	RB
may	MD
leave	VB
the	DT
personal	JJ
computer	NN
business	NN
altogether	RB
.	.

Wyse	IN
Technology	NNP
,	,
for	IN
instance	NN
,	,
is	VBZ
considered	VBN
a	DT
candidate	NN
to	TO
sell	VB
its	PRP$
troubled	VBN
operation	NN
.	.

``	``
Wyse	VB
has	VBZ
done	VBN
well	RB
establishing	VBG
a	DT
distribution	NN
business	NN
,	,
but	CC
they	PRP
have	VB
n't	RB
delivered	VBN
products	NNS
that	IN
sell	VB
,	,
''	''
said	VBD
Kimball	VB
Brown	NNP
,	,
an	DT
analyst	NN
at	IN
Prudential-Bache	NNP
Securities	NNPS
.	.

Mr.	NNP
Brown	NNP
estimates	NNS
Wyse	VB
,	,
whose	WP$
terminals	NNS
business	NN
is	VBZ
strong	JJ
,	,
will	MD
report	NN
a	DT
loss	NN
of	IN
12	CD
cents	NNS
a	DT
share	NN
for	IN
its	PRP$
quarter	NN
ended	VBD
Sept	NNP
.	.

Personal-computer	NN
makers	NNS
will	MD
continue	VB
to	TO
eat	VB
away	RB
at	IN
the	DT
business	NN
of	IN
more	RBR
traditional	JJ
computer	NN
firms	NNS
.	.

Ever-more	IN
powerful	JJ
desk-top	JJ
computers	NNS
,	,
designed	VBN
with	IN
one	CD
or	CC
more	RBR
microprocessors	NNS
as	RB
their	PRP$
``	``
brains	NNS
,	,
''	''
are	VBP
expected	VBN
to	TO
increasingly	RB
take	VB
on	IN
functions	NNS
carried	VBD
out	IN
by	IN
more	RBR
expensive	JJ
minicomputers	NNS
and	CC
mainframes	NNS
.	.

``	``
The	DT
guys	NNS
that	IN
make	VBP
traditional	JJ
hardware	NN
are	VBP
really	RB
being	VBG
obsoleted	VB
by	IN
microprocessor-based	JJ
machines	NNS
,	,
''	''
said	VBD
Mr.	NNP
Benton	NNP
.	.

As	IN
a	DT
result	NN
of	IN
this	DT
trend	NN
,	,
longtime	JJ
powerhouses	NNS
H-P	VB
,	,
IBM	NNP
and	CC
Digital	NNP
Equipment	NNP
Corp.	NNP
are	VBP
scrambling	VBG
to	TO
counterattack	VB
with	IN
microprocessor-based	JJ
systems	NNS
of	IN
their	PRP$
own	JJ
.	.

But	CC
they	PRP
will	MD
have	VB
to	TO
act	VB
quickly	RB
.	.

Mr.	NNP
Benton	NNP
expects	VBZ
Compaq	NNP
to	TO
unveil	VB
a	DT
family	NN
of	IN
high-end	JJ
personal	JJ
computers	NNS
later	RB
this	DT
year	NN
that	IN
are	VBP
powerful	JJ
enough	RB
to	TO
serve	VB
as	RB
the	DT
hub	NN
for	IN
communications	NNS
within	IN
large	JJ
networks	NNS
of	IN
desk-top	JJ
machines	NNS
.	.

A	DT
raft	NN
of	IN
new	JJ
computer	NN
companies	NNS
also	RB
has	VBZ
targeted	VBN
this	DT
``	``
server	VB
''	''
market	NN
.	.

Population	NNP
Drain	VB
Ends	NNS
For	IN
Midwestern	NN
States	NNPS

IOWA	IN
IS	VBZ
MAKING	VB
a	DT
comeback	NN
.	.

So	IN
are	VBP
Indiana	NNP
,	,
Ohio	NNP
and	CC
Michigan	NNP
.	.

The	DT
population	NN
of	IN
all	DT
four	CD
states	NNS
is	VBZ
on	IN
the	DT
upswing	NN
,	,
according	VBG
to	TO
new	JJ
Census	NNP
Bureau	NNP
estimates	NNS
,	,
following	VBG
declines	NNS
throughout	IN
the	DT
early	RB
1980s	CD
.	.

The	DT
gains	NNS
,	,
to	TO
be	VB
sure	JJ
,	,
are	VBP
rather	RB
small	JJ
.	.

Iowa	NNP
,	,
for	IN
instance	NN
,	,
saw	VBD
its	PRP$
population	NN
grow	VB
by	IN
11,000	CD
people	NNS
,	,
or	CC
0.4	CD
%	NN
,	,
between	IN
1987	CD
and	CC
1988	CD
,	,
the	DT
Census	NNP
Bureau	NNP
says	VBZ
.	.

Still	RB
,	,
even	RB
that	IN
modest	JJ
increase	NN
is	VBZ
good	JJ
news	NN
for	IN
a	DT
state	NN
that	IN
had	VBD
n't	RB
grown	VBN
at	IN
all	DT
since	IN
1981	CD
.	.

Between	IN
1987	CD
and	CC
1988	CD
,	,
North	NNP
Dakota	NNP
was	VBD
the	DT
only	JJ
state	NN
in	IN
the	DT
Midwest	NNP
to	TO
lose	VB
population	NN
,	,
a	DT
loss	NN
of	IN
4,000	CD
people	NNS
.	.

Six	CD
of	IN
the	DT
12	CD
midwestern	VB
states	NNS
have	VB
been	VBN
growing	VBG
steadily	RB
since	IN
1980	CD
--	:
Illinois	NNP
,	,
Kansas	NNP
,	,
Minnesota	NNP
,	,
Missouri	NNP
,	,
South	NNP
Dakota	NNP
and	CC
Wisconsin	NNP
.	.

The	DT
Northeast	NNP
has	VBZ
been	VBN
holding	VBG
its	PRP$
own	JJ
in	IN
the	DT
population	NN
race	NN
.	.

Seven	NNP
of	IN
nine	CD
states	NNS
have	VB
grown	VBN
each	DT
year	NN
since	IN
1980	CD
,	,
including	VBG
New	NNP
York	NNP
,	,
which	WDT
lost	VBN
4	CD
%	NN
of	IN
its	PRP$
population	NN
during	IN
the	DT
1970s	CD
.	.

And	CC
although	IN
Pennsylvania	NNP
and	CC
Massachusetts	NNP
suffered	VBD
slight	JJ
declines	NNS
earlier	JJR
in	IN
the	DT
decade	NN
,	,
they	PRP
are	VBP
growing	VBG
again	RB
.	.

At	IN
the	DT
same	JJ
time	NN
,	,
several	JJ
states	NNS
in	IN
the	DT
South	NNP
and	CC
West	NNP
have	VBP
had	VBN
their	PRP$
own	JJ
population	NN
turnaround	NN
.	.

Seven	NNP
states	NNS
that	IN
grew	VBD
in	IN
the	DT
early	RB
1980s	CD
are	VBP
now	RB
losing	VBG
population	NN
--	:
West	NNP
Virginia	NNP
,	,
Mississippi	NNP
,	,
Louisiana	NNP
,	,
Oklahoma	NNP
,	,
Montana	NNP
,	,
Wyoming	NNP
and	CC
Alaska	NNP
.	.

Overall	RB
,	,
though	IN
,	,
the	DT
South	NNP
and	CC
West	NNP
still	RB
outpace	VB
the	DT
Northeast	NNP
and	CC
Midwest	NNP
,	,
and	CC
fast-growing	JJ
states	NNS
like	IN
Florida	NNP
and	CC
California	NNP
ensure	VB
that	IN
the	DT
pattern	NN
will	MD
continue	VB
.	.

But	CC
the	DT
growth	NN
gap	NN
between	IN
the	DT
Sun	NNP
Belt	NNP
and	CC
other	JJ
regions	NNS
has	VBZ
clearly	RB
started	VBN
narrowing	VBG
.	.

More	JJR
Elderly	VB
Maintain	VB
Their	PRP$
Independence	NNP

THANKS	IN
TO	TO
modern	JJ
medicine	NN
,	,
more	RBR
couples	NNS
are	VBP
growing	VBG
old	JJ
together	RB
.	.

And	CC
even	RB
after	IN
losing	VBG
a	DT
spouse	NN
,	,
more	RBR
of	IN
the	DT
elderly	JJ
are	VBP
staying	VBG
independent	JJ
.	.

A	DT
new	JJ
Census	NNP
Bureau	NNP
study	NN
of	IN
the	DT
noninstitutionalized	VB
population	NN
shows	VBZ
that	IN
64	CD
%	NN
of	IN
people	NNS
aged	VBN
65	CD
to	TO
74	CD
were	VBD
living	VBG
with	IN
a	DT
spouse	NN
in	IN
1988	CD
,	,
up	RP
from	IN
59	CD
%	NN
in	IN
1970	CD
.	.

This	DT
does	VBZ
n't	RB
mean	VB
they	PRP
're	VBP
less	RBR
likely	JJ
to	TO
live	VB
alone	RB
,	,
however	RB
.	.

That	DT
share	NN
has	VBZ
remained	VBD
at	IN
about	IN
24	CD
%	NN
since	IN
1970	CD
.	.

What	WP
has	VBZ
changed	VBN
is	VBZ
that	IN
more	RBR
of	IN
the	DT
young	JJ
elderly	JJ
are	VBP
living	VBG
with	IN
spouses	NNS
rather	RB
than	IN
with	IN
other	JJ
relatives	NNS
,	,
such	JJ
as	RB
children	NNS
.	.

In	IN
1988	CD
,	,
10	CD
%	NN
of	IN
those	DT
aged	VBN
65	CD
to	TO
74	CD
lived	VBD
with	IN
relatives	NNS
other	JJ
than	IN
spouses	NNS
,	,
down	IN
from	IN
15	CD
%	NN
in	IN
1970	CD
.	.

As	IN
people	NNS
get	VB
even	RB
older	JJR
,	,
many	JJ
become	VB
widowed	VBN
.	.

But	CC
even	RB
among	IN
those	DT
aged	VBN
75	CD
and	CC
older	JJR
,	,
the	DT
share	NN
living	VBG
with	IN
a	DT
spouse	NN
rose	VBD
slightly	RB
,	,
to	TO
40	CD
%	NN
in	IN
1988	CD
from	IN
38	CD
%	NN
in	IN
1970	CD
.	.

Like	IN
their	PRP$
younger	JJR
counterparts	NNS
,	,
the	DT
older	JJR
elderly	JJ
are	VBP
less	JJR
likely	JJ
to	TO
live	VB
with	IN
other	JJ
relatives	NNS
.	.

Only	RB
17	CD
%	NN
of	IN
those	DT
aged	VBN
75	CD
and	CC
older	JJR
lived	VBD
with	IN
relatives	NNS
other	JJ
than	IN
spouses	NNS
in	IN
1988	CD
,	,
down	IN
from	IN
26	CD
%	NN
in	IN
1970	CD
.	.

The	DT
likelihood	NN
of	IN
living	VBG
alone	RB
beyond	IN
the	DT
age	NN
of	IN
75	CD
has	VBZ
increased	VBN
to	TO
40	CD
%	NN
from	IN
32	CD
%	NN
.	.

More	JJR
people	NNS
are	VBP
remaining	VBG
independent	JJ
longer	RB
presumably	RB
because	IN
they	PRP
are	VBP
better	RB
off	RP
physically	RB
and	CC
financially	RB
.	.

Careers	IN
Count	NNP
Most	RBS
For	IN
the	DT
Well-to-Do	VB

MANY	IN
AFFLUENT	NNP
people	NNS
place	NN
personal	JJ
success	NN
and	CC
money	NN
above	IN
family	NN
.	.

At	IN
least	JJS
that	IN
's	VBZ
what	WP
a	DT
survey	NN
by	IN
Ernst	NNP
&	CC
Young	NNP
and	CC
Yankelovich	NNP
,	,
Clancy	VB
,	,
Shulman	NNP
indicates	VBZ
.	.

Two-thirds	IN
of	IN
respondents	NNS
said	VBD
they	PRP
strongly	RB
felt	VBD
the	DT
need	MD
to	TO
be	VB
successful	JJ
in	IN
their	PRP$
jobs	NNS
,	,
while	IN
fewer	JJR
than	IN
half	DT
said	VBD
they	PRP
strongly	RB
felt	VBD
the	DT
need	MD
to	TO
spend	VBP
more	RBR
time	NN
with	IN
their	PRP$
families	NNS
.	.

Being	VBG
successful	JJ
in	IN
careers	NNS
and	CC
spending	NN
the	DT
money	NN
they	PRP
make	VBP
are	VBP
top	NN
priorities	NNS
for	IN
this	DT
group	NN
.	.

Unlike	IN
most	JJS
studies	NNS
of	IN
the	DT
affluent	JJ
market	NN
,	,
this	DT
survey	NN
excluded	VBN
the	DT
super-rich	NN
.	.

Average	NNP
household	NN
income	NN
for	IN
the	DT
sample	NN
was	VBD
$	$
194,000	CD
,	,
and	CC
average	NN
net	JJ
assets	NNS
were	VBD
reported	VBN
as	RB
$	$
775,000	VB
.	.

The	DT
goal	NN
was	VBD
to	TO
learn	VBP
about	IN
one	CD
of	IN
today	NN
's	POS
fastest-growing	JJ
income	NN
groups	NNS
,	,
the	DT
upper-middle	JJ
class	NN
.	.

Although	IN
they	PRP
represent	VBP
only	RB
2	CD
%	NN
of	IN
the	DT
population	NN
,	,
they	PRP
control	VBP
nearly	RB
one-third	JJ
of	IN
discretionary	JJ
income	NN
.	.

Across	IN
the	DT
board	NN
,	,
these	DT
consumers	NNS
value	NN
quality	NN
,	,
buy	VB
what	WP
they	PRP
like	VBP
rather	RB
than	IN
just	RB
what	WP
they	PRP
need	VBP
,	,
and	CC
appreciate	VB
products	NNS
that	IN
are	VBP
distinctive	JJ
.	.

Despite	IN
their	PRP$
considerable	JJ
incomes	NNS
and	CC
assets	NNS
,	,
40	CD
%	NN
of	IN
the	DT
respondents	NNS
in	IN
the	DT
study	NN
do	VBP
n't	RB
feel	VB
financially	RB
secure	VB
,	,
and	CC
one-fourth	NN
do	VBP
n't	RB
feel	VB
that	IN
they	PRP
have	VBP
made	VBN
it	PRP
.	.

Twenty	CD
percent	NN
do	VB
n't	RB
even	RB
feel	VBP
they	PRP
are	VBP
financially	RB
well	RB
off	RP
.	.

Many	DT
of	IN
the	DT
affluent	JJ
are	VBP
n't	RB
comfortable	JJ
with	IN
themselves	PRP
,	,
either	CC
.	.

About	IN
40	CD
%	NN
do	VB
n't	RB
feel	VBP
they	PRP
're	VBP
more	RBR
able	JJ
than	IN
others	NNS
.	.

While	IN
twothirds	NNP
feel	VBP
some	DT
guilt	NN
about	IN
being	VBG
affluent	JJ
,	,
only	RB
25	CD
%	NN
give	VBP
$	$
2,500	CD
or	CC
more	RBR
to	TO
charity	NN
each	DT
year	NN
.	.

Thirty-five	IN
percent	NN
attend	VB
religious	JJ
services	NNS
regularly	RB
;	:
at	IN
the	DT
same	JJ
time	NN
,	,
60	CD
%	NN
feel	VBP
that	IN
in	IN
life	NN
one	CD
sometimes	RB
has	VBZ
to	TO
compromise	NN
one	CD
's	POS
principles	NNS
.	.

Odds	NNS
and	CC
Ends	NNS

THE	DT
NUMBER	NN
of	IN
women	NNS
and	CC
minorities	NNS
who	WP
hold	VBP
jobs	NNS
in	IN
top	NN
management	NN
in	IN
the	DT
nation	NN
's	POS
largest	JJS
banks	NNS
has	VBZ
more	RBR
than	IN
doubled	VBN
since	IN
1978	CD
.	.

The	DT
American	JJ
Bankers	NNPS
Association	NNP
says	VBZ
that	IN
women	NNS
make	VBP
up	RP
47	CD
%	NN
of	IN
officials	NNS
and	CC
managers	NNS
in	IN
the	DT
top	NN
50	CD
banks	NNS
,	,
up	RP
from	IN
33	CD
%	NN
in	IN
1978	CD
.	.

The	DT
share	NN
of	IN
minorities	NNS
in	IN
those	DT
positions	NNS
has	VBZ
risen	VBN
to	TO
16	CD
%	NN
from	IN
12	CD
%	NN
...	:
.	.

Per-capita	IN
personal	JJ
income	NN
in	IN
the	DT
U.S.	NNP
grew	VBD
faster	RBR
than	IN
inflation	NN
last	JJ
year	NN
,	,
according	VBG
to	TO
the	DT
Bureau	NNP
of	IN
Economic	JJ
Analysis	NN
.	.

The	DT
amount	NN
of	IN
income	NN
divvied	VB
up	RP
for	IN
each	DT
man	NN
,	,
woman	NN
and	CC
child	NN
was	VBD
$	$
16,489	VB
in	IN
1988	CD
,	,
up	RP
6.6	CD
%	NN
from	IN
$	$
15,472	VB
in	IN
1987	CD
.	.

Per	IN
capita	NN
personal	JJ
income	NN
ranged	VBD
from	IN
$	$
11,116	CD
in	IN
Mississippi	NNP
to	TO
$	$
23,059	VB
in	IN
Connecticut	NNP
...	:
.	.

There	EX
are	VBP
13.1	CD
million	CD
students	NNS
in	IN
college	NN
this	DT
fall	VB
,	,
up	RP
2	LS
%	NN
from	IN
1988	CD
,	,
the	DT
National	NNP
Center	NNP
for	IN
Education	NNP
Statistics	NNP
estimates	NNS
.	.

About	IN
54	CD
%	NN
are	VBP
women	NNS
,	,
and	CC
44	CD
%	NN
are	VBP
part-time	JJ
students	NNS
.	.

This	DT
small	JJ
Dallas	NNP
suburb	NN
's	POS
got	VBD
trouble	NN
.	.

Trouble	NN
with	IN
a	DT
capital	NN
T	VB
and	CC
that	IN
rhymes	VB
with	IN
P	VB
and	CC
that	IN
stands	NNS
for	IN
pool	NN
.	.

More	JJR
than	IN
30	CD
years	NNS
ago	IN
,	,
Prof.	NNP
Harold	NNP
Hill	NNP
,	,
the	DT
con	RB
man	NN
in	IN
Meredith	NNP
Willson	VB
's	POS
``	``
The	DT
Music	NNP
Man	NN
,	,
''	''
warned	VBD
the	DT
citizens	NNS
of	IN
River	NNP
City	NNP
,	,
Iowa	NNP
,	,
against	IN
the	DT
game	NN
.	.

Now	RB
kindred	VB
spirits	NNS
on	IN
Addison	NNP
's	POS
town	NN
council	NN
have	VB
barred	VBN
the	DT
town	NN
's	POS
fanciest	VB
hotel	NN
,	,
the	DT
Grand	NNP
Kempinski	VB
,	,
from	IN
installing	VBG
three	CD
free	JJ
pool	NN
tables	NNS
in	IN
its	PRP$
new	JJ
lounge	NN
.	.

Mayor	NNP
Lynn	NNP
Spruill	VB
and	CC
two	CD
members	NNS
of	IN
the	DT
council	NN
said	VBD
they	PRP
were	VBD
worried	VBN
about	IN
setting	VBG
a	DT
precedent	NN
that	IN
would	MD
permit	VB
pool	NN
halls	NNS
along	IN
Addison	NNP
's	POS
main	JJ
street	NN
.	.

And	CC
the	DT
mayor	NN
,	,
in	IN
an	DT
admonition	NN
that	IN
bears	VBZ
a	DT
rhythmic	JJ
resemblance	NN
to	TO
Prof.	NNP
Hill	NNP
's	POS
,	,
warned	VBD
that	IN
``	``
alcohol	NN
leads	VBZ
to	TO
betting	VBG
,	,
which	WDT
leads	VBZ
to	TO
fights	NNS
.	.
''	''

The	DT
council	NN
's	POS
action	NN
is	VBZ
yet	RB
another	DT
blow	NN
to	TO
a	DT
sport	NN
that	IN
its	PRP$
fans	NNS
claim	NN
has	VBZ
been	VBN
maligned	VB
unjustly	VB
for	IN
years	NNS
.	.

``	``
Obviously	RB
they	PRP
're	VBP
not	RB
in	IN
touch	NN
with	IN
what	WP
's	POS
going	VBG
on	IN
,	,
''	''
says	VBZ
Tom	NNP
Manske	VB
,	,
vice	NN
president	NN
of	IN
the	DT
National	NNP
Pocket	VB
Billiards	VB
Association	NNP
.	.

Pool	NNP
is	VBZ
hot	JJ
in	IN
New	NNP
York	NNP
and	CC
Chicago	NNP
,	,
he	PRP
insists	VBZ
,	,
where	WRB
``	``
upscale	JJ
,	,
suit-and-tie	VB
places	NNS
''	''
are	VBP
adding	VBG
tables	NNS
.	.

With	IN
today	NN
's	POS
tougher	JJR
drunk	JJ
driving	VBG
laws	NNS
,	,
he	PRP
adds	VBZ
,	,
``	``
people	NNS
do	VB
n't	RB
want	VBP
to	TO
just	RB
sit	VBP
around	IN
and	CC
drink	NN
.	.
''	''

Besides	IN
,	,
rowdy	VB
behavior	NN
seems	VBZ
unlikely	JJ
at	IN
the	DT
Grand	NNP
Kempinski	VB
,	,
where	WRB
rooms	NNS
average	NN
$	$
200	CD
a	DT
night	NN
and	CC
the	DT
cheap	JJ
mixed	VBN
drinks	NNS
go	VB
for	IN
$	$
3.50	CD
a	DT
pop	NN
.	.

At	IN
the	DT
lounge	NN
,	,
manager	NN
Elizabeth	NNP
Dyer	NNP
wo	MD
n't	RB
admit	VB
patrons	NNS
in	IN
jeans	NNS
,	,
T-shirts	NNS
or	CC
tennis	NN
shoes	NNS
.	.

But	CC
a	DT
majority	NN
of	IN
the	DT
Addison	NNP
council	NN
did	VBD
n't	RB
buy	VB
those	DT
arguments	NNS
.	.

Introducing	IN
pool	NN
,	,
argued	VBD
Councilwoman	VB
Riley	NNP
Reinker	VB
,	,
would	MD
be	VB
``	``
dangerous	JJ
.	.

It	NNP
would	MD
open	JJ
a	DT
can	MD
of	IN
worms	NNS
.	.
''	''

Addison	NNP
is	VBZ
no	DT
stranger	NN
to	TO
cans	NNS
of	IN
worms	NNS
,	,
either	CC
.	.

After	IN
its	PRP$
previous	JJ
mayor	NN
committed	JJ
suicide	NN
last	JJ
year	NN
,	,
an	DT
investigation	NN
disclosed	VBN
that	IN
town	NN
officials	NNS
regularly	RB
voted	VBD
on	IN
their	PRP$
own	JJ
projects	NNS
,	,
gave	VBD
special	JJ
favors	VBZ
to	TO
developer	NN
friends	NNS
and	CC
dipped	VBD
into	IN
the	DT
town	NN
's	POS
coffers	NNS
for	IN
trips	NNS
and	CC
retreats	NNS
.	.

The	DT
revelations	NNS
embarrassed	JJ
town	NN
officials	NNS
,	,
although	IN
they	PRP
argued	VBD
that	IN
the	DT
problems	NNS
were	VBD
n't	RB
as	RB
severe	JJ
as	RB
the	DT
media	NNS
suggested	VBN
.	.

Now	RB
comes	VBZ
the	DT
pool	NN
flap	NN
.	.

``	``
I	PRP
think	VBP
there	EX
's	POS
some	DT
people	NNS
worried	VBN
about	IN
something	NN
pretty	RB
ridiculous	JJ
,	,
''	''
Councilman	VB
John	NNP
Nolan	NNP
says	VBZ
.	.

``	``
I	PRP
thought	VBN
this	DT
was	VBD
all	DT
taken	VBN
care	NN
of	IN
in	IN
`	``
The	DT
Music	NNP
Man	NN
.	.

The	DT
only	JJ
thing	NN
Robert	NNP
Goldberg	NNP
could	MD
praise	NN
about	IN
CBS	NNP
's	POS
new	JJ
show	NN
``	``
Island	NNP
Son	NNP
''	''
(	(
Leisure	NN
&	CC
Arts	NNS
,	,
Sept.	NNP
25	CD
)	)
was	VBD
the	DT
local	JJ
color	NN
;	:
unfortunately	RB
neither	CC
he	PRP
nor	CC
the	DT
producers	NNS
of	IN
the	DT
show	NN
have	VB
done	VBN
their	PRP$
homework	NN
.	.

For	IN
instance	NN
:	:
``	``
Haole	JJ
''	''
(	(
white	JJ
)	)
is	VBZ
not	RB
the	DT
ultimate	JJ
insult	NN
;	:
``	``
Mainland	VB
haole	VB
''	''
is	VBZ
.	.

Richard	NNP
Chamberlain	NNP
dresses	NNS
as	RB
a	DT
``	``
Mainland	VB
haole	VB
,	,
''	''
tucking	VB
in	IN
a	DT
Hawaiian	JJ
shirt	NN
and	CC
rolling	VBG
up	RP
its	PRP$
long	JJ
sleeves	NNS
.	.

And	CC
the	DT
local	JJ
expression	NN
for	IN
brother	NN
is	VBZ
``	``
brah	VB
,	,
''	''
not	RB
``	``
bruddah	VB
.	.
''	''

And	CC
even	RB
if	IN
a	DT
nurse	NN
would	MD
wear	VB
flowers	NNS
in	IN
her	PRP$
hair	NN
while	IN
on	IN
duty	NN
,	,
if	IN
she	PRP
were	VBD
engaged	VBN
she	PRP
would	MD
know	VB
to	TO
wear	VB
them	PRP
behind	IN
her	PRP$
left	VBN
,	,
not	RB
right	RB
,	,
ear	NN
.	.

Sorry	IN
,	,
the	DT
show	NN
does	VBZ
not	RB
even	RB
have	VB
the	DT
one	CD
redeeming	JJ
quality	NN
of	IN
genuine	JJ
local	JJ
color	NN
.	.

Anita	NNP
Davis	NNP

Of	IN
all	DT
the	DT
ethnic	JJ
tensions	NNS
in	IN
America	NNP
,	,
which	WDT
is	VBZ
the	DT
most	RBS
troublesome	JJ
right	RB
now	RB
?	.

A	DT
good	JJ
bet	NN
would	MD
be	VB
the	DT
tension	NN
between	IN
blacks	NNS
and	CC
Jews	NNPS
in	IN
New	NNP
York	NNP
City	NNP
.	.

Or	CC
so	RB
it	PRP
must	MD
seem	VBP
to	TO
Jackie	NNP
Mason	NNP
,	,
the	DT
veteran	JJ
Jewish	NNP
comedian	NN
appearing	VBG
in	IN
a	DT
new	JJ
ABC	NNP
sitcom	NN
airing	VBG
on	IN
Tuesday	NNP
nights	NNS
(	(
9:30-10	VB
p.m.	NN
EDT	NNP
)	)
.	.

Not	RB
only	RB
is	VBZ
Mr.	NNP
Mason	NNP
the	DT
star	NN
of	IN
``	``
Chicken	NNP
Soup	NNP
,	,
''	''
he	PRP
's	POS
also	RB
the	DT
inheritor	VB
of	IN
a	DT
comedic	JJ
tradition	NN
dating	VBG
back	RB
to	TO
``	``
Duck	NN
Soup	NNP
,	,
''	''
and	CC
he	PRP
's	POS
currently	RB
a	DT
man	NN
in	IN
hot	JJ
water	NN
.	.

Here	RB
,	,
in	IN
neutral	JJ
language	NN
,	,
is	VBZ
the	DT
gist	NN
of	IN
Mr.	NNP
Mason	NNP
's	POS
remarks	NNS
,	,
quoted	VBD
first	JJ
in	IN
the	DT
Village	NNP
Voice	NNP
while	IN
he	PRP
was	VBD
a	DT
paid	VBN
spokesman	NN
for	IN
the	DT
Rudolph	NNP
Giuliani	NNP
mayoral	JJ
campaign	NN
,	,
and	CC
then	RB
in	IN
Newsweek	NNP
after	IN
he	PRP
and	CC
the	DT
campaign	NN
parted	VB
company	NN
.	.

Mr.	NNP
Mason	NNP
said	VBD
that	IN
many	JJ
Jewish	NNP
voters	NNS
feel	VBP
guilty	JJ
toward	IN
blacks	NNS
,	,
so	RB
they	PRP
support	VB
black	JJ
candidates	NNS
uncritically	VB
.	.

He	PRP
said	VBD
that	IN
many	JJ
black	JJ
voters	NNS
feel	VBP
bitter	JJ
about	IN
racial	JJ
discrimination	NN
,	,
so	RB
they	PRP
,	,
too	RB
,	,
support	VB
black	JJ
candidates	NNS
uncritically	VB
.	.

He	PRP
said	VBD
that	IN
Jews	NNPS
have	VB
contributed	VBD
more	RBR
to	TO
black	JJ
causes	NNS
over	IN
the	DT
years	NNS
than	IN
vice	NN
versa	RB
.	.

Of	IN
course	NN
,	,
Mr.	NNP
Mason	NNP
did	VBD
not	RB
use	VB
neutral	JJ
language	NN
.	.

As	IN
a	DT
practitioner	VB
of	IN
ethnic	JJ
humor	NN
from	IN
the	DT
old	JJ
days	NNS
on	IN
the	DT
Borscht	VB
Belt	NNP
,	,
live	VB
television	NN
and	CC
the	DT
nightclub	NN
circuit	NN
,	,
Mr.	NNP
Mason	NNP
instinctively	VB
reached	VBN
for	IN
the	DT
vernacular	VB
.	.

He	PRP
said	VBD
Jews	NNPS
were	VBD
``	``
sick	JJ
with	IN
complexes	NNS
''	''
;	:
and	CC
he	PRP
called	VBN
David	NNP
Dinkins	NNP
,	,
Mr.	NNP
Giuliani	NNP
's	POS
black	JJ
opponent	NN
,	,
``	``
a	DT
fancy	JJ
shvartze	VB
with	IN
a	DT
mustache	VB
.	.
''	''

If	IN
Mr.	NNP
Mason	NNP
had	VBD
used	VBN
less	RBR
derogatory	JJ
language	NN
to	TO
articulate	VB
his	PRP$
amateur	JJ
analysis	NN
of	IN
the	DT
voting	NN
behavior	NN
of	IN
his	PRP$
fellow	NN
New	NNP
Yorkers	NNPS
,	,
would	MD
the	DT
water	NN
be	VB
quite	RB
so	RB
hot	JJ
?	.

It	NNP
probably	RB
would	MD
,	,
because	IN
few	JJ
or	CC
none	NN
of	IN
the	DT
people	NNS
upset	JJ
by	IN
Mr.	NNP
Mason	NNP
's	POS
remarks	NNS
have	VB
bothered	VBN
to	TO
distinguish	VB
between	IN
the	DT
substance	NN
of	IN
his	PRP$
comments	NNS
and	CC
the	DT
fact	NN
that	IN
he	PRP
used	VBN
insulting	JJ
language	NN
.	.

In	IN
addition	NN
,	,
some	DT
of	IN
Mr.	NNP
Mason	NNP
's	POS
critics	NNS
have	VB
implied	VBN
that	IN
his	PRP$
type	NN
of	IN
ethnic	JJ
humor	NN
is	VBZ
itself	PRP
a	DT
form	NN
of	IN
racism	NN
.	.

For	IN
example	NN
,	,
the	DT
New	NNP
York	NNP
state	NN
counsel	NN
for	IN
the	DT
NAACP	NNP
said	VBD
that	IN
Mr.	NNP
Mason	NNP
is	VBZ
``	``
like	IN
a	DT
dinosaur	NN
.	.

People	NNS
are	VBP
fast	RB
leaving	VBG
the	DT
place	NN
where	WRB
he	PRP
is	VBZ
stuck	VBD
.	.
''	''

These	DT
critics	NNS
fail	VBP
to	TO
distinguish	VB
between	IN
the	DT
type	NN
of	IN
ethnic	JJ
humor	NN
that	IN
aims	VBZ
at	IN
disparaging	VBG
another	DT
group	NN
,	,
such	JJ
as	IN
``	``
Polish	JJ
jokes	NNS
''	''
;	:
and	CC
the	DT
type	NN
that	IN
is	VBZ
double-edged	JJ
,	,
aiming	VBG
inward	NN
as	IN
well	RB
as	RB
outward	VB
.	.

The	DT
latter	JJ
typically	RB
is	VBZ
the	DT
humor	NN
of	IN
the	DT
underdog	VB
,	,
and	CC
it	PRP
was	VBD
perfected	VBN
by	IN
both	DT
blacks	NNS
and	CC
Jews	NNPS
on	IN
the	DT
minstrel	VB
and	CC
vaudeville	VB
stage	NN
as	RB
a	DT
means	VBZ
of	IN
mocking	VB
their	PRP$
white	JJ
and	CC
gentile	VB
audiences	NNS
along	IN
with	IN
themselves	PRP
.	.

In	IN
the	DT
hands	NNS
of	IN
a	DT
zealot	VB
like	IN
Lenny	NNP
Bruce	NNP
,	,
this	DT
double-edged	JJ
blade	VB
could	MD
cut	VB
both	DT
the	DT
self	NN
and	CC
the	DT
audience	NN
to	TO
ribbons	NNS
.	.

But	CC
wielded	VB
by	IN
a	DT
pro	JJ
like	IN
Jackie	NNP
Mason	NNP
,	,
it	PRP
is	VBZ
a	DT
constructive	JJ
form	NN
of	IN
mischief	NN
.	.

Why	WRB
constructive	JJ
?	.

Because	IN
despite	IN
all	DT
the	DT
media	NNS
prattle	NN
about	IN
comedy	NN
and	CC
politics	NNS
not	RB
mixing	VBG
,	,
they	PRP
are	VBP
similar	JJ
in	IN
one	CD
respect	VB
:	:
Both	PDT
can	MD
serve	VB
as	RB
mechanisms	NNS
for	IN
easing	NN
tensions	NNS
and	CC
facilitating	VBG
the	DT
co-existence	VB
of	IN
groups	NNS
in	IN
conflict	NN
.	.

That	DT
's	VBZ
why	WRB
it	PRP
's	POS
dangerous	JJ
to	TO
have	VB
well-intentioned	JJ
thought	VBN
police	NNS
,	,
on	IN
college	NN
campuses	NNS
and	CC
elsewhere	RB
,	,
taboo	NN
all	DT
critical	JJ
mention	VB
of	IN
group	NN
differences	NNS
.	.

As	IN
Elizabeth	NNP
Kristol	NNP
wrote	VBD
in	IN
the	DT
New	NNP
York	NNP
Times	NNP
just	RB
before	IN
the	DT
Mason	NNP
donnybrook	NN
,	,
``	``
Perhaps	RB
intolerance	VB
would	MD
not	RB
boil	NN
over	IN
with	IN
such	JJ
intensity	NN
if	IN
honest	JJ
differences	NNS
were	VBD
allowed	VBN
to	TO
simmer	VB
.	.
''	''

The	DT
question	NN
is	VBZ
,	,
if	IN
group	NN
conflicts	NNS
still	RB
exist	VB
(	(
as	RB
undeniably	RB
they	PRP
do	VB
)	)
,	,
and	CC
if	IN
Mr.	NNP
Mason	NNP
's	POS
type	NN
of	IN
ethnic	JJ
humor	NN
is	VBZ
passe	VB
,	,
then	RB
what	WP
other	JJ
means	VBZ
do	VB
we	PRP
have	VB
for	IN
letting	VBG
off	RP
steam	NN
?	.

Do	VB
n't	RB
say	VBP
the	DT
TV	NN
sitcom	NN
,	,
because	IN
that	IN
happens	VBZ
to	TO
be	VB
a	DT
genre	VB
that	IN
,	,
in	IN
its	PRP$
desperate	JJ
need	MD
to	TO
attract	VB
everybody	NN
and	CC
offend	VB
nobody	NN
,	,
resembles	VBZ
politics	NNS
more	RBR
than	IN
it	PRP
does	VBZ
comedy	NN
.	.

It	NNP
is	VBZ
true	JJ
that	IN
the	DT
best	JJS
sitcoms	VB
do	VB
allow	VB
group	NN
differences	NNS
to	TO
simmer	VB
:	:
yuppies	NNS
vs.	CC
blue-collar	JJ
Bostonians	VB
in	IN
``	``
Cheers	NNP
''	''
;	:
children	NNS
vs.	CC
adults	NNS
in	IN
``	``
The	DT
Cosby	NNP
Show	NNP
.	.
''	''

But	CC
these	DT
are	VBP
not	RB
the	DT
differences	NNS
that	IN
make	VBP
headlines	NNS
.	.

In	IN
``	``
Chicken	NNP
Soup	NNP
,	,
''	''
Mr.	NNP
Mason	NNP
plays	VBZ
Jackie	NNP
,	,
a	DT
Jewish	NNP
bachelor	NN
courting	VBG
Maddie	VB
(	(
Lynn	NNP
Redgrave	VB
)	)
,	,
an	DT
Irish	JJ
widow	NN
and	CC
mother	NN
of	IN
three	CD
,	,
against	IN
the	DT
wishes	VBZ
of	IN
his	PRP$
mother	NN
(	(
Rita	NNP
Karin	VB
)	)
and	CC
her	PRP$
brother	NN
Michael	NNP
(	(
Brandon	NNP
Maggart	VB
)	)
.	.

It	NNP
's	POS
worth	JJ
noting	VBG
that	IN
both	DT
disapproving	VB
relatives	NNS
are	VBP
immigrants	NNS
.	.

At	IN
least	JJS
,	,
they	PRP
both	DT
speak	VB
with	IN
strong	JJ
accents	NN
,	,
as	RB
do	VB
Jackie	NNP
and	CC
Maddie	VB
.	.

It	NNP
could	MD
n't	RB
be	VB
more	RBR
obvious	JJ
that	IN
``	``
Chicken	NNP
Soup	NNP
''	''
is	VBZ
being	VBG
made	VBN
from	IN
an	DT
old	JJ
recipe	NN
.	.

And	CC
a	DT
safe	JJ
one	CD
--	:
imagine	VB
if	IN
the	DT
romance	NN
in	IN
question	VBP
were	VBD
between	IN
an	DT
Orthodox	NNP
Jew	VB
and	CC
a	DT
member	NN
of	IN
the	DT
Nation	NN
of	IN
Islam	NNP
.	.

Back	RB
in	IN
the	DT
1920s	NN
,	,
the	DT
play	VB
and	CC
movie	NN
versions	NNS
of	IN
``	``
Abie	VB
's	POS
Irish	JJ
Rose	NNP
''	''
made	VBN
the	DT
theme	NN
of	IN
courtship	NN
between	IN
the	DT
assimilated	VB
offspring	NN
of	IN
Jewish	NNP
and	CC
Irish	JJ
immigrants	NNS
so	RB
popular	JJ
that	IN
its	PRP$
author	NN
,	,
Anne	NNP
Nichols	NNP
,	,
lost	VBN
a	DT
plagiarism	VB
suit	NN
on	IN
the	DT
grounds	NNS
that	IN
the	DT
plot	NN
has	VBZ
entered	VBN
the	DT
public	JJ
domain	NN
.	.

And	CC
it	PRP
has	VBZ
remained	VBD
there	EX
,	,
as	RB
evidenced	VBN
by	IN
its	PRP$
reappearance	NN
in	IN
a	DT
1972	CD
CBS	NNP
sitcom	NN
called	VBN
``	``
Bridget	NNP
Loves	VBZ
Bernie	NNP
,	,
''	''
whose	WP$
sole	JJ
distinction	NN
was	VBD
that	IN
it	PRP
led	VBN
to	TO
the	DT
real-life	JJ
marriage	NN
of	IN
Meredith	NNP
Baxter	NNP
and	CC
David	NNP
Birney	VB
.	.

Clearly	RB
,	,
the	DT
question	VBP
with	IN
``	``
Chicken	NNP
Soup	NNP
''	''
is	VBZ
not	RB
whether	IN
the	DT
pot	NN
will	MD
boil	NN
over	IN
,	,
but	CC
whether	IN
it	PRP
will	MD
simmer	VB
at	IN
all	DT
.	.

So	IN
far	RB
,	,
the	DT
bubbles	VB
have	VB
been	VBN
few	JJ
and	CC
far	JJ
between	IN
.	.

Part	NN
of	IN
the	DT
problem	NN
is	VBZ
the	DT
tendency	NN
of	IN
all	DT
sitcoms	VB
,	,
ever	RB
since	IN
the	DT
didactic	VB
days	NNS
of	IN
Norman	NNP
Lear	VB
,	,
to	TO
preach	VBP
about	IN
social	JJ
issues	NNS
.	.

To	TO
some	DT
extent	NN
,	,
this	DT
tendency	NN
emerges	VBZ
whenever	WRB
the	DT
show	NN
tries	VBZ
to	TO
enlighten	VB
us	PRP
about	IN
ethnic	JJ
stereotypes	VB
by	IN
reversing	VBG
them	PRP
.	.

For	IN
instance	NN
,	,
Michael	NNP
dislikes	NN
Jackie	NNP
not	RB
because	IN
he	PRP
's	VBZ
a	DT
shrewd	JJ
Jewish	NNP
businessman	NN
,	,
but	CC
because	IN
he	PRP
quits	VBZ
his	PRP$
well-paying	JJ
job	NN
as	RB
a	DT
salesman	NN
in	IN
order	NN
to	TO
become	VB
a	DT
social	JJ
worker	NN
.	.

Even	RB
more	RBR
problematic	JJ
is	VBZ
the	DT
incompatibility	VB
between	IN
sitcom	NN
preachiness	VB
and	CC
Mr.	NNP
Mason	NNP
's	POS
comic	JJ
persona	NN
.	.

The	DT
best	JJS
moments	NNS
in	IN
the	DT
show	NN
occur	VB
at	IN
the	DT
beginning	NN
and	CC
the	DT
end	NN
(	(
and	CC
occasionally	RB
in	IN
the	DT
middle	JJ
)	)
,	,
when	WRB
Mr.	NNP
Mason	NNP
slips	VBZ
into	IN
his	PRP$
standup	VB
mode	NN
and	CC
starts	NNS
meting	VB
out	IN
that	IN
old-fashioned	JJ
Jewish	NNP
mischief	NN
to	TO
other	JJ
people	NNS
as	RB
well	RB
as	RB
to	TO
himself	PRP
.	.

But	CC
too	RB
often	RB
,	,
these	DT
routines	VB
lack	VBP
spark	VB
because	IN
this	DT
sitcom	NN
,	,
like	IN
all	DT
sitcoms	VB
,	,
is	VBZ
timid	JJ
about	IN
confronting	VBG
Mr.	NNP
Mason	NNP
's	POS
stock	NN
in	IN
trade	NN
-	:
ethnic	JJ
differences	NNS
.	.

I	PRP
'm	VBP
not	RB
suggesting	VBG
that	IN
the	DT
producers	NNS
start	VB
putting	VBG
together	RB
episodes	NNS
about	IN
topics	NNS
like	IN
the	DT
Catholic-Jewish	VB
dispute	NN
over	IN
the	DT
Carmelite	VB
convent	NN
at	IN
Auschwitz	VB
.	.

That	DT
issue	NN
,	,
like	IN
racial	JJ
tensions	NNS
in	IN
New	NNP
York	NNP
City	NNP
,	,
will	MD
have	VB
to	TO
cool	JJ
down	IN
,	,
not	RB
heat	NN
up	RP
,	,
before	IN
it	PRP
can	MD
simmer	VB
.	.

But	CC
I	PRP
am	VBP
suggesting	VBG
that	IN
they	PRP
stop	VB
requiring	VBG
Mr.	NNP
Mason	NNP
to	TO
interrupt	VB
his	PRP$
classic	JJ
shtik	VB
with	IN
some	DT
line	NN
about	IN
``	``
caring	NN
for	IN
other	JJ
people	NNS
''	''
that	IN
would	MD
sound	NN
shmaltzy	VB
on	IN
the	DT
lips	NNS
of	IN
Miss	NNP
America	NNP
.	.

At	IN
your	PRP$
age	NN
,	,
Jackie	NNP
,	,
you	PRP
ought	MD
to	TO
know	VB
that	IN
you	PRP
ca	MD
n't	RB
make	VBP
soup	NN
without	IN
turning	VBG
up	RP
the	DT
flame	NN
.	.

The	DT
official	NN
White	NNP
House	NNP
reaction	NN
to	TO
a	DT
plunge	NN
in	IN
stock	NN
prices	NNS
has	VBZ
a	DT
60-year	VB
history	NN
of	IN
calm	JJ
,	,
right	RB
up	RP
through	IN
Friday	NNP
.	.

Treasury	NNP
Secretary	NNP
Nicholas	NNP
Brady	NNP
said	VBD
in	IN
a	DT
statement	NN
Friday	NNP
that	IN
the	DT
stock-market	NN
decline	NN
``	``
does	VBZ
n't	RB
signal	VB
any	DT
fundamental	JJ
change	NN
in	IN
the	DT
condition	NN
of	IN
the	DT
economy	NN
.	.
''	''

``	``
The	DT
economy	NN
,	,
''	''
he	PRP
added	VBD
,	,
``	``
remains	VBZ
well-balanced	JJ
and	CC
the	DT
outlook	NN
is	VBZ
for	IN
continued	VBD
moderate	JJ
growth	NN
.	.
''	''

Sound	NNP
familiar	JJ
?	.

Here	RB
's	POS
what	WP
Ronald	NNP
Reagan	NNP
said	VBD
after	IN
the	DT
1987	CD
crash	VB
:	:
``	``
The	DT
underlying	VBG
economy	NN
remains	VBZ
sound	NN
.	.

There	EX
is	VBZ
nothing	NN
wrong	JJ
with	IN
the	DT
economy	NN
...	:
all	DT
the	DT
indices	VB
are	VBP
up	RP
.	.
''	''

Heard	NNP
that	IN
before	IN
?	.

After	IN
the	DT
1929	CD
crash	VB
,	,
Herbert	NNP
Hoover	NNP
said	VBD
:	:
``	``
The	DT
fundamental	JJ
business	NN
of	IN
the	DT
country	NN
...	:
is	VBZ
on	IN
a	DT
sound	NN
and	CC
prosperous	JJ
basis	NN
.	.

James	NNP
Robinson	NNP
,	,
57	CD
years	NNS
old	JJ
,	,
was	VBD
elected	VBN
president	NN
and	CC
chief	NN
executive	NN
officer	NN
of	IN
this	DT
maker	NN
of	IN
magnetic	JJ
recording	NN
heads	VBZ
for	IN
disk	NN
drives	VBZ
.	.

He	PRP
has	VBZ
been	VBN
president	NN
and	CC
chief	NN
executive	NN
officer	NN
of	IN
Amperex	VB
Electronics	NNPS
Corp.	NNP
,	,
a	DT
division	NN
of	IN
North	NNP
American	JJ
Philips	NNP
Corp.	NNP
,	,
itself	PRP
a	DT
subsidiary	NN
of	IN
N.V	NNP
.	.
Philips	NNP
of	IN
the	DT
Netherlands	NNP
.	.

Charles	NNP
J.	NNP
Lawson	NNP
Jr.	NNP
,	,
68	CD
,	,
who	WP
had	VBD
been	VBN
acting	VBG
chief	NN
executive	NN
since	IN
June	NNP
14	CD
,	,
will	MD
continue	VB
as	RB
chairman	NN
.	.

The	DT
former	JJ
president	NN
and	CC
chief	NN
executive	NN
,	,
Eric	NNP
W.	NNP
Markrud	VB
,	,
resigned	VBD
in	IN
June	NNP
.	.

The	DT
Senate	NNP
's	POS
decision	NN
to	TO
approve	VB
a	DT
bare-bones	JJ
deficit-reduction	JJ
bill	NN
without	IN
a	DT
capital-gains	JJ
tax	NN
cut	VB
still	RB
leaves	VBZ
open	JJ
the	DT
possibility	NN
of	IN
enacting	VBG
a	DT
gains	NNS
tax	NN
reduction	NN
this	DT
year	NN
.	.

Late	JJ
Friday	NNP
night	NN
,	,
the	DT
Senate	NNP
voted	VBD
87-7	VB
to	TO
approve	VB
an	DT
estimated	VBD
$	$
13.5	CD
billion	CD
measure	NN
that	IN
had	VBD
been	VBN
stripped	VBN
of	IN
hundreds	NNS
of	IN
provisions	NNS
that	IN
would	MD
have	VB
widened	VBD
,	,
rather	RB
than	IN
narrowed	VBD
,	,
the	DT
federal	JJ
budget	NN
deficit	NN
.	.

Lawmakers	NNS
drastically	RB
streamlined	JJ
the	DT
bill	NN
to	TO
blunt	JJ
criticism	NN
that	IN
it	PRP
was	VBD
bloated	JJ
with	IN
special-interest	JJ
tax	NN
breaks	VBZ
and	CC
spending	NN
increases	NNS
.	.

``	``
We	PRP
're	VBP
putting	VBG
a	DT
deficit-reduction	JJ
bill	NN
back	RB
in	IN
the	DT
category	NN
of	IN
being	VBG
a	DT
deficit-reduction	JJ
bill	NN
,	,
''	''
said	VBD
Senate	NNP
Budget	NNP
Committee	NNP
Chairman	NNP
James	NNP
Sasser	NNP
(	(
D.	NNP
,	,
Tenn	NNP
.	.
)	)
.	.

But	CC
Senate	NNP
supporters	NNS
of	IN
the	DT
trimmer	VB
legislation	NN
said	VBD
that	IN
other	JJ
bills	NNS
would	MD
soon	RB
be	VB
moving	VBG
through	IN
Congress	NNP
that	IN
could	MD
carry	VBP
some	DT
of	IN
the	DT
measures	NNS
that	IN
had	VBD
been	VBN
cast	NN
aside	RB
,	,
including	VBG
a	DT
capital-gains	JJ
tax	NN
cut	VB
.	.

In	IN
addition	NN
,	,
the	DT
companion	NN
deficit-reduction	JJ
bill	NN
already	RB
passed	VBN
by	IN
the	DT
House	NNP
includes	VBZ
a	DT
capital-gains	JJ
provision	NN
.	.

House-Senate	NNP
negotiations	NNS
are	VBP
likely	JJ
to	TO
begin	VB
at	IN
midweek	JJ
and	CC
last	JJ
for	IN
a	DT
while	IN
.	.

``	``
No	DT
one	CD
can	MD
predict	VBP
exactly	RB
what	WP
will	MD
happen	VB
on	IN
the	DT
House	NNP
side	NN
,	,
''	''
said	VBD
Senate	NNP
Minority	NNP
Leader	NNP
Robert	NNP
Dole	NNP
(	(
R.	NNP
,	,
Kan	NNP
.	.
)	)
.	.

But	CC
,	,
he	PRP
added	VBD
,	,
``	``
I	PRP
believe	VBP
Republicans	NNPS
and	CC
Democrats	NNP
will	MD
work	NN
together	RB
to	TO
get	VB
capital-gains	JJ
reform	NN
this	DT
year	NN
.	.
''	''

White	NNP
House	NNP
Budget	NNP
Director	NNP
Richard	NNP
Darman	NNP
told	VBD
reporters	NNS
yesterday	NN
that	IN
the	DT
administration	NN
would	MD
n't	RB
push	VB
to	TO
keep	VB
the	DT
capital-gains	JJ
cut	VB
in	IN
the	DT
final	JJ
version	NN
of	IN
the	DT
bill	NN
.	.

``	``
We	PRP
do	VB
n't	RB
need	MD
this	DT
as	RB
a	DT
way	NN
to	TO
get	VB
capital	NN
gains	NNS
,	,
''	''
he	PRP
said	VBD
.	.

House	NNP
Budget	NNP
Committee	NNP
Chairman	NNP
Leon	NNP
Panetta	NNP
(	(
D.	NNP
,	,
Calif	NNP
.	.
)	)
said	VBD
in	IN
an	DT
interview	NN
,	,
``	``
If	IN
that	IN
's	POS
the	DT
signal	VB
that	IN
comes	VBZ
from	IN
the	DT
White	NNP
House	NNP
,	,
that	IN
will	MD
help	VB
a	DT
great	JJ
deal	NN
.	.
''	''

The	DT
Senate	NNP
's	POS
decision	NN
was	VBD
a	DT
setback	NN
for	IN
President	NNP
Bush	NNP
and	CC
will	MD
make	VBP
approval	NN
of	IN
a	DT
capital-gains	JJ
tax	NN
cut	VB
less	RBR
certain	JJ
this	DT
year	NN
.	.

Opponents	NNS
of	IN
the	DT
cut	VB
are	VBP
playing	VBG
hardball	NN
.	.

Senate	NNP
Majority	NNP
Leader	NNP
George	NNP
Mitchell	NNP
(	(
D.	NNP
,	,
Maine	NNP
)	)
said	VBD
he	PRP
was	VBD
``	``
confident	JJ
''	''
that	IN
any	DT
House-Senate	NNP
agreement	NN
on	IN
the	DT
deficit-reduction	JJ
legislation	NN
would	MD
n't	RB
include	VB
a	DT
capital-gains	JJ
tax	NN
cut	VB
.	.

And	CC
a	DT
senior	JJ
aide	NN
to	TO
the	DT
House	NNP
Ways	NNPS
and	CC
Means	NNPS
Committee	NNP
,	,
where	WRB
tax	NN
legislation	NN
originates	VBZ
,	,
said	VBD
there	EX
are	VBP
n't	RB
any	DT
``	``
plans	NNS
to	TO
produce	VB
another	DT
tax	NN
bill	NN
that	IN
could	MD
carry	VBP
a	DT
gains	NNS
tax	NN
cut	VB
this	DT
year	NN
.	.
''	''

One	CD
obvious	JJ
place	NN
to	TO
attach	VBP
a	DT
capital-gains	JJ
tax	NN
cut	VB
,	,
and	CC
perhaps	RB
other	JJ
popular	JJ
items	NNS
stripped	VBN
from	IN
the	DT
deficit-reduction	JJ
bill	NN
,	,
is	VBZ
the	DT
legislation	NN
to	TO
raise	VB
the	DT
federal	JJ
borrowing	VBG
limit	NN
.	.

Such	JJ
legislation	NN
must	MD
be	VB
enacted	VBD
by	IN
the	DT
end	NN
of	IN
the	DT
month	NN
.	.

The	DT
Senate	NNP
bill	NN
was	VBD
pared	VBN
back	RB
in	IN
an	DT
attempt	NN
to	TO
speed	NN
deficit-reduction	JJ
through	IN
Congress	NNP
.	.

Because	IN
the	DT
legislation	NN
has	VBZ
n't	RB
been	VBN
completed	VBN
,	,
President	NNP
Bush	NNP
has	VBZ
until	IN
midnight	NN
tonight	NN
to	TO
enact	VB
across-the-board	JJ
spending	NN
cuts	NNS
mandated	VBN
by	IN
the	DT
Gramm-Rudman	NNP
deficit-reduction	NN
law	NN
.	.

Senators	NNPS
hope	VBP
that	IN
the	DT
need	MD
to	TO
avoid	VB
those	DT
cuts	NNS
will	MD
pressure	NN
the	DT
House	NNP
to	TO
agree	VB
to	TO
the	DT
streamlined	JJ
bill	NN
.	.

The	DT
House	NNP
appears	VBZ
reluctant	JJ
to	TO
join	VB
the	DT
senators	NNS
.	.

A	DT
key	JJ
is	VBZ
whether	IN
House	NNP
Republicans	NNPS
are	VBP
willing	JJ
to	TO
acquiesce	VB
to	TO
their	PRP$
Senate	NNP
colleagues	NNS
'	POS
decision	NN
to	TO
drop	NN
many	JJ
pet	NN
provisions	NNS
.	.

``	``
Although	IN
I	PRP
am	VBP
encouraged	VBN
by	IN
the	DT
Senate	NNP
action	NN
,	,
''	''
said	VBD
Chairman	NNP
Dan	NNP
Rostenkowski	NNP
(	(
D.	NNP
,	,
Ill	NNP
.	.
)	)
of	IN
the	DT
House	NNP
Ways	NNPS
and	CC
Means	NNPS
Committee	NNP
,	,
``	``
it	PRP
is	VBZ
uncertain	JJ
whether	IN
a	DT
clean	VB
bill	NN
can	MD
be	VB
achieved	VBN
in	IN
the	DT
upcoming	VB
conference	NN
with	IN
the	DT
Senate	NNP
.	.
''	''

Another	DT
big	JJ
question	NN
hovering	VBG
over	RP
the	DT
debate	NN
is	VBZ
what	WP
President	NNP
Bush	NNP
thinks	VBZ
.	.

He	PRP
has	VBZ
been	VBN
resisting	VBG
a	DT
stripped-down	JJ
bill	NN
without	IN
a	DT
guaranteed	VBN
vote	NN
on	IN
his	PRP$
capital-gains	JJ
tax	NN
cut	VB
.	.

But	CC
Republican	JJ
senators	NNS
saw	VBD
no	DT
way	NN
to	TO
overcome	VB
a	DT
procedural	JJ
hurdle	NN
and	CC
garner	VB
the	DT
60	CD
votes	NNS
needed	VBN
to	TO
win	VB
the	DT
capital-gains	JJ
issue	NN
on	IN
the	DT
floor	NN
,	,
so	RB
they	PRP
went	VBD
ahead	RB
with	IN
the	DT
streamlined	JJ
bill	NN
.	.

The	DT
Senate	NNP
bill	NN
was	VBD
stripped	VBN
of	IN
many	JJ
popular	JJ
,	,
though	IN
revenue-losing	VB
,	,
provisions	NNS
,	,
a	DT
number	NN
of	IN
which	WDT
are	VBP
included	VBN
in	IN
the	DT
House-passed	JJ
bill	NN
.	.

These	DT
include	VBP
a	DT
child-care	JJ
initiative	NN
and	CC
extensions	NNS
of	IN
soon-to-expire	VB
tax	NN
breaks	VBZ
for	IN
low-income	JJ
housing	NN
and	CC
research-and-development	NN
expenditures	NNS
.	.

Also	RB
missing	VBG
from	IN
the	DT
Senate	NNP
bill	NN
is	VBZ
the	DT
House	NNP
's	POS
repeal	VB
of	IN
a	DT
law	NN
,	,
called	VBN
Section	NN
89	CD
,	,
that	IN
compels	VB
companies	NNS
to	TO
give	VBP
rank-and-file	JJ
workers	NNS
comparable	JJ
health	NN
benefits	NNS
to	TO
top	NN
paid	VBN
executives	NNS
.	.

One	CD
high-profile	JJ
provision	NN
that	IN
was	VBD
originally	RB
in	IN
the	DT
Senate	NNP
bill	NN
but	CC
was	VBD
cut	VB
out	IN
because	IN
it	PRP
lost	VBN
money	NN
was	VBD
the	DT
proposal	NN
by	IN
Chairman	NNP
Lloyd	NNP
Bentsen	NNP
(	(
D.	NNP
,	,
Texas	NNP
)	)
of	IN
the	DT
Senate	NNP
Finance	NNP
Committee	NNP
to	TO
expand	VB
the	DT
deduction	NN
for	IN
individual	JJ
retirement	NN
accounts	NNS
.	.

Mr.	NNP
Bentsen	NNP
said	VBD
he	PRP
hopes	VBZ
the	DT
Senate	NNP
will	MD
consider	VB
that	IN
measure	NN
soon	RB
.	.

To	TO
the	DT
delight	NN
of	IN
some	DT
doctors	NNS
,	,
the	DT
bill	NN
dropped	VBD
a	DT
plan	VB
passed	VBN
by	IN
the	DT
Finance	NNP
Committee	NNP
that	IN
would	MD
have	VB
overhauled	VBN
the	DT
entire	JJ
physician-reimbursement	VB
system	NN
under	IN
Medicare	NNP
.	.

To	TO
the	DT
detriment	NN
of	IN
many	JJ
low-income	JJ
people	NNS
,	,
efforts	NNS
to	TO
boost	VB
Medicaid	NNP
funding	NN
,	,
especially	RB
in	IN
rural	JJ
areas	NNS
,	,
also	RB
were	VBD
stricken	VBN
.	.

Asked	VBN
why	WRB
senators	NNS
were	VBD
giving	VBG
up	RP
so	RB
much	JJ
,	,
New	NNP
Mexico	NNP
Sen.	NNP
Pete	NNP
Domenici	NNP
,	,
the	DT
ranking	VBG
Republican	JJ
on	IN
the	DT
Senate	NNP
Budget	NNP
Committee	NNP
,	,
said	VBD
,	,
``	``
We	PRP
're	VBP
looking	VBG
like	IN
idiots	NNS
.	.

Things	NNS
had	VBD
just	RB
gone	VBN
too	RB
far	JJ
.	.
''	''

Sen.	NNP
Dole	NNP
said	VBD
that	IN
the	DT
move	NN
required	VBN
sacrifice	NN
by	IN
every	DT
senator	NN
.	.

It	NNP
worked	VBD
,	,
others	NNS
said	VBD
,	,
because	IN
there	EX
were	VBD
no	DT
exceptions	NNS
:	:
all	DT
revenue-losing	VB
provisions	NNS
were	VBD
stricken	VBN
.	.

The	DT
Senate	NNP
also	RB
dropped	VBD
a	DT
plan	VB
by	IN
its	PRP$
Finance	NNP
Committee	NNP
that	IN
would	MD
have	VB
increased	VBN
the	DT
income	NN
threshold	NN
beyond	IN
which	WDT
senior	JJ
citizens	NNS
have	VB
their	PRP$
Social	NNP
Security	NNP
benefits	NNS
reduced	VBN
.	.

In	IN
addition	NN
,	,
the	DT
bill	NN
dropped	VBD
a	DT
plan	VB
to	TO
make	VBP
permanent	JJ
a	DT
3	CD
%	NN
excise	NN
tax	NN
on	IN
long-distance	NN
telephone	NN
calls	VBZ
.	.

It	NNP
no	DT
longer	RB
includes	VBZ
a	DT
plan	VB
that	IN
would	MD
have	VB
repealed	VBN
what	WP
remains	VBZ
of	IN
the	DT
completed-contract	VB
method	NN
of	IN
accounting	NN
,	,
which	WDT
is	VBZ
used	VBN
by	IN
military	JJ
contractors	NNS
to	TO
reduce	VB
their	PRP$
tax	NN
burden	NN
.	.

It	NNP
also	RB
drops	NNS
a	DT
provision	NN
that	IN
would	MD
have	VB
permitted	VBN
corporations	NNS
to	TO
use	VBP
excess	JJ
pension	NN
funds	NNS
to	TO
pay	VB
health	NN
benefits	NNS
for	IN
current	NN
retirees	NNS
.	.

Also	RB
stricken	VBN
was	VBD
a	DT
fivefold	RB
increase	NN
in	IN
the	DT
maximum	JJ
Occupational	NNP
Safety	NNP
and	CC
Health	NNP
Administration	NN
penalties	NNS
,	,
which	WDT
would	MD
have	VB
raised	VBN
$	$
65	CD
million	CD
in	IN
fiscal	JJ
1990	CD
.	.

A	DT
provision	NN
that	IN
would	MD
have	VB
made	VBN
the	DT
Social	NNP
Security	NNP
Administration	NN
an	DT
independent	JJ
agency	NN
was	VBD
excised	VB
.	.

The	DT
approval	NN
of	IN
the	DT
Senate	NNP
bill	NN
was	VBD
especially	RB
sweet	JJ
for	IN
Sen.	NNP
Mitchell	NNP
,	,
who	WP
had	VBD
proposed	VBN
the	DT
streamlining	VBG
.	.

Mr.	NNP
Mitchell	NNP
's	POS
relations	NNS
with	IN
Budget	NNP
Director	NNP
Darman	NNP
,	,
who	WP
pushed	VBN
for	IN
a	DT
capital-gains	JJ
cut	VB
to	TO
be	VB
added	VBD
to	TO
the	DT
measure	NN
,	,
have	VB
been	VBN
strained	VBN
since	IN
Mr.	NNP
Darman	NNP
chose	VBD
to	TO
bypass	NN
the	DT
Maine	NNP
Democrat	NNP
and	CC
deal	NN
with	IN
other	JJ
lawmakers	NNS
earlier	JJR
this	DT
year	NN
during	IN
a	DT
dispute	NN
over	IN
drug	NN
funding	NN
in	IN
the	DT
fiscal	JJ
1989	CD
supplemental	JJ
spending	NN
bill	NN
.	.

The	DT
deficit	NN
reduction	NN
bill	NN
contains	VBZ
$	$
5.3	CD
billion	CD
in	IN
tax	NN
increases	NNS
in	IN
fiscal	JJ
1990	CD
,	,
and	CC
$	$
26	CD
billion	CD
over	IN
five	CD
years	NNS
.	.

The	DT
revenue-raising	JJ
provisions	NNS
,	,
which	WDT
affect	VB
mostly	RB
corporations	NNS
,	,
would	MD
:	:

--	:
Prevent	VB
companies	NNS
that	IN
have	VB
made	VBN
leveraged	JJ
buy-outs	NNS
from	IN
getting	VBG
federal	JJ
tax	NN
refunds	NNS
resulting	VBG
from	IN
losses	NNS
caused	VBN
by	IN
interest	NN
payments	NNS
on	IN
debt	NN
issued	VBN
to	TO
finance	NN
the	DT
buy-outs	NNS
,	,
effective	JJ
Aug.	NNP
2	LS
,	,
1989	CD
.	.

--	:
Require	VB
mutual	JJ
funds	NNS
to	TO
include	VB
in	IN
their	PRP$
taxable	JJ
income	NN
dividends	NNS
paid	VBN
to	TO
them	PRP
on	IN
the	DT
date	NN
that	IN
the	DT
dividends	NNS
are	VBP
declared	VBD
rather	RB
than	IN
received	VBD
,	,
effective	JJ
the	DT
day	NN
after	IN
the	DT
tax	NN
bill	NN
is	VBZ
enacted	VBD
.	.

--	:
Close	NNP
a	DT
loophole	NN
regarding	VBG
employee	NN
stock	NN
ownership	NN
plans	NNS
,	,
effective	JJ
June	NNP
6	CD
,	,
1989	CD
,	,
that	IN
has	VBZ
been	VBN
exploited	VBN
by	IN
investment	NN
bankers	NNS
in	IN
corporate	JJ
takeovers	NNS
.	.

The	DT
measure	NN
repeals	VB
a	DT
50	CD
%	NN
exclusion	NN
given	VBN
to	TO
banks	NNS
on	IN
the	DT
interest	NN
from	IN
loans	NNS
used	VBN
to	TO
acquire	VB
securities	NNS
for	IN
an	DT
ESOP	NNP
,	,
if	IN
the	DT
ESOP	NNP
owns	VBZ
less	RBR
than	IN
30	CD
%	NN
of	IN
the	DT
employer	NN
's	POS
stock	NN
.	.

--	:
Curb	VB
junk	NN
bonds	NNS
by	IN
ending	VBG
tax	NN
benefits	NNS
for	IN
certain	JJ
securities	NNS
,	,
such	JJ
as	RB
zero-coupon	NN
bonds	NNS
,	,
that	IN
postpone	VB
cash	NN
interest	NN
payments	NNS
.	.

--	:
Raise	VB
$	$
851	VB
million	CD
by	IN
suspending	VBG
for	IN
one	CD
year	NN
an	DT
automatic	JJ
reduction	NN
in	IN
airport	NN
and	CC
airway	VB
taxes	NNS
.	.

--	:
Speed	NN
up	RP
the	DT
collection	NN
of	IN
the	DT
payroll	NN
tax	NN
from	IN
large	JJ
companies	NNS
,	,
effective	JJ
August	NNP
1990	CD
.	.

--	:
Impose	VB
a	DT
tax	NN
on	IN
ozone-depleting	VB
chemicals	NNS
,	,
such	JJ
as	RB
those	DT
used	VBN
in	IN
air	NN
conditioners	NNS
and	CC
in	IN
Styrofoam	VB
,	,
beginning	NN
at	IN
$	$
1.10	CD
a	DT
pound	NN
starting	VBG
next	JJ
year	NN
.	.

--	:
Withhold	VB
income	NN
taxes	NNS
from	IN
the	DT
paychecks	NNS
of	IN
certain	JJ
farm	NN
workers	NNS
currently	RB
exempt	VB
from	IN
withholding	VBG
.	.

--	:
Change	NNP
the	DT
collection	NN
of	IN
gasoline	NN
excise	NN
taxes	NNS
to	TO
weekly	JJ
from	IN
semimonthly	VB
,	,
effective	JJ
next	JJ
year	NN
.	.

--	:
Restrict	VB
the	DT
ability	NN
of	IN
real	JJ
estate	NN
owners	NNS
to	TO
escape	VB
taxes	NNS
by	IN
swapping	VBG
one	CD
piece	NN
of	IN
property	NN
for	IN
another	DT
instead	RB
of	IN
selling	VBG
it	PRP
for	IN
cash	NN
.	.

--	:
Increase	VB
to	TO
$	$
6	CD
a	DT
person	NN
from	IN
$	$
3	CD
the	DT
international	JJ
air-passenger	VB
departure	NN
tax	NN
,	,
and	CC
impose	VB
a	DT
$	$
3-a-person	VB
tax	NN
on	IN
international	JJ
departures	NNS
by	IN
commercial	JJ
ships	NNS
.	.

The	DT
measure	NN
also	RB
includes	VBZ
spending	NN
cuts	NNS
and	CC
increases	NNS
in	IN
federal	JJ
fees	NNS
.	.

Among	IN
its	PRP$
provisions	NNS
:	:

--	:
Reduction	NN
of	IN
Medicare	NNP
spending	NN
in	IN
fiscal	JJ
1990	CD
by	IN
some	DT
$	$
2.8	CD
billion	CD
,	,
in	IN
part	NN
by	IN
curbing	VBG
increases	NNS
in	IN
reimbursements	NNS
to	TO
physicians	NNS
.	.

The	DT
plan	NN
would	MD
impose	VB
a	DT
brief	NN
freeze	NN
on	IN
physician	NN
fees	NNS
next	JJ
year	NN
.	.

--	:
Removal	VB
of	IN
the	DT
U.S.	NNP
Postal	NNP
Service	NNP
's	POS
operating	VBG
budget	NN
from	IN
the	DT
federal	JJ
budget	NN
,	,
reducing	VBG
the	DT
deficit	NN
by	IN
$	$
1.77	CD
billion	CD
.	.

A	DT
similar	JJ
provision	NN
is	VBZ
in	IN
the	DT
House	NNP
version	NN
.	.

--	:
Authority	NNP
for	IN
the	DT
Federal	NNP
Aviation	NNP
Administration	NN
to	TO
raise	VB
$	$
239	VB
million	CD
by	IN
charging	VBG
fees	NNS
for	IN
commercial	JJ
airline-landing	VB
rights	NNS
at	IN
New	NNP
York	NNP
's	POS
LaGuardia	NNP
and	CC
John	NNP
F.	NNP
Kennedy	NNP
International	NNP
Airports	VB
,	,
O'Hare	VB
International	NNP
Airport	NNP
in	IN
Chicago	NNP
and	CC
National	NNP
Airport	NNP
in	IN
Washington	NNP
.	.

--	:
Increases	VB
in	IN
Nuclear	NNP
Regulatory	NNP
Commission	NNP
fees	NNS
totaling	VBG
$	$
54	CD
million	CD
.	.

--	:
Direction	VB
to	TO
the	DT
U.S.	NNP
Coast	NNP
Guard	NNP
to	TO
collect	VBP
$	$
50	CD
million	CD
from	IN
users	NNS
of	IN
Coast	NNP
Guard	NNP
services	NNS
.	.

--	:
Raising	NNP
an	DT
additional	JJ
$	$
43	CD
million	CD
by	IN
increasing	VBG
existing	VBG
Federal	NNP
Communications	NNP
Commission	NNP
fees	NNS
and	CC
penalties	NNS
and	CC
establishing	VBG
new	JJ
fees	NNS
for	IN
amateur	JJ
radio	NN
operators	NNS
,	,
ship	VB
stations	NNS
and	CC
mobile	JJ
radio	NN
facilities	NNS
.	.

John	NNP
E.	NNP
Yang	NNP
contributed	VBD
to	TO
this	DT
article	NN
.	.

In	IN
response	NN
to	TO
your	PRP$
overly	RB
optimistic	JJ
,	,
outdated	JJ
piece	NN
on	IN
how	WRB
long	JJ
unemployment	NN
lasts	VBZ
(	(
People	NNS
Patterns	VB
,	,
Sept.	NNP
20	CD
)	)
:	:
I	PRP
am	VBP
in	IN
the	DT
communications	NNS
field	NN
,	,
above	IN
entry	NN
level	NN
.	.

I	PRP
was	VBD
laid	VBD
off	RP
in	IN
August	NNP
1988	CD
,	,
and	CC
after	IN
a	DT
thorough	JJ
and	CC
exhausting	VBG
job	NN
search	NN
,	,
was	VBD
hired	VBN
in	IN
August	NNP
1989	CD
.	.

My	PRP$
unemployment	NN
insurance	NN
ran	VBD
out	IN
before	IN
I	PRP
found	VBD
a	DT
job	NN
;	:
I	PRP
found	VBD
cutbacks	NNS
and	CC
layoffs	NNS
in	IN
many	JJ
companies	NNS
.	.

The	DT
statistics	NNS
quoted	VBD
by	IN
the	DT
``	``
new	JJ
''	''
Census	NNP
Bureau	NNP
report	NN
(	(
garnered	VBD
from	IN
1984	CD
to	TO
1986	CD
)	)
are	VBP
out	IN
of	IN
date	NN
,	,
certainly	RB
as	RB
an	DT
average	NN
for	IN
the	DT
Northeast	NNP
,	,
and	CC
possibly	RB
for	IN
the	DT
rest	NN
of	IN
the	DT
country	NN
.	.

I	PRP
think	VBP
what	WP
bothered	VBN
me	PRP
most	RBS
about	IN
the	DT
piece	NN
was	VBD
that	IN
there	EX
seemed	VBD
to	TO
be	VB
an	DT
underlying	VBG
attitude	NN
to	TO
tell	VB
your	PRP$
readers	NNS
all	DT
is	VBZ
well	RB
--	:
if	IN
you	PRP
're	VBP
getting	VBG
laid	VBD
off	RP
do	VB
n't	RB
worry	VB
,	,
and	CC
if	IN
you	PRP
're	VBP
unemployed	JJ
,	,
it	PRP
's	POS
a	DT
seller	NN
's	POS
market	NN
.	.

To	TO
top	NN
it	PRP
off	RP
,	,
you	PRP
captioned	VB
the	DT
graph	NN
showing	VBG
the	DT
average	NN
number	NN
of	IN
months	NNS
in	IN
a	DT
job	NN
search	NN
as	RB
``	``
Time	NNP
Off	IN
.	.
''	''

Are	VBP
you	PRP
kidding	VB
?	.

Looking	VBG
for	IN
a	DT
job	NN
was	VBD
one	CD
of	IN
the	DT
most	RBS
anxious	JJ
periods	NNS
of	IN
my	PRP$
life	NN
--	:
and	CC
is	VBZ
for	IN
most	RBS
people	NNS
.	.

Your	PRP$
paper	NN
needs	VBZ
a	DT
serious	JJ
reality	NN
check	VB
.	.

Reva	IN
Levin	NNP

Cambridge	NNP
,	,
Mass	NNP
.	.

BULL	IN
HN	NNP
INFORMATION	VB
SYSTEMS	NNP
Inc.	NNP
is	VBZ
a	DT
U.S.	NNP
majority-owned	JJ
unit	NN
of	IN
Cie.	NNP
des	NNP
Machines	NNPS
Bull	NNP
.	.

In	IN
Friday	NNP
's	POS
edition	NN
,	,
the	DT
name	NN
of	IN
the	DT
unit	NN
was	VBD
misstated	VBN
.	.

Moody	NNP
's	POS
Investors	NNS
Service	NNP
said	VBD
it	PRP
reduced	VBN
its	PRP$
rating	NN
on	IN
$	$
165	CD
million	CD
of	IN
subordinated	JJ
debt	NN
of	IN
this	DT
Beverly	NNP
Hills	NNPS
,	,
Calif.	NNP
,	,
thrift	NN
,	,
citing	VBG
turmoil	NN
in	IN
the	DT
market	NN
for	IN
low-grade	VB
,	,
high-yield	JJ
securities	NNS
.	.

The	DT
agency	NN
said	VBD
it	PRP
reduced	VBN
its	PRP$
rating	NN
on	IN
the	DT
thrift	NN
's	POS
subordinated	JJ
debt	NN
to	TO
B-2	NNP
from	IN
Ba-2	VB
and	CC
will	MD
keep	VB
the	DT
debt	NN
under	IN
review	NN
for	IN
possible	JJ
further	JJ
downgrade	NN
.	.

Columbia	NNP
Savings	NNP
is	VBZ
a	DT
major	JJ
holder	NN
of	IN
so-called	JJ
junk	NN
bonds	NNS
.	.

New	NNP
federal	JJ
legislation	NN
requires	VBZ
that	IN
all	DT
thrifts	NNS
divest	VB
themselves	PRP
of	IN
such	JJ
speculative	JJ
securities	NNS
over	IN
a	DT
period	NN
of	IN
years	NNS
.	.

Columbia	NNP
Savings	NNP
officials	NNS
were	VBD
n't	RB
available	JJ
for	IN
comment	NN
on	IN
the	DT
downgrade	NN
.	.

FRANKLIN	NNP
SAVINGS	NNPS
ASSOCIATION	NNP
(	(
Ottawa	NNP
,	,
Kan.	NNP
)	)
--	:

Moody	NNP
's	POS
Investors	NNS
Service	NNP
Inc.	NNP
said	VBD
it	PRP
downgraded	VBD
its	PRP$
rating	NN
to	TO
B-2	NNP
from	IN
Ba-3	JJ
on	IN
less	RBR
than	IN
$	$
20	CD
million	CD
of	IN
this	DT
thrift	NN
's	POS
senior	JJ
subordinated	JJ
notes	NNS
.	.

The	DT
rating	NN
concern	NN
said	VBD
Franklin	NNP
's	POS
``	``
troubled	VBN
diversification	NN
record	NN
in	IN
the	DT
securities	NNS
business	NN
''	''
was	VBD
one	CD
reason	NN
for	IN
the	DT
downgrade	NN
,	,
citing	VBG
the	DT
troubles	NNS
at	IN
its	PRP$
L.F.	VB
Rothschild	NNP
subsidiary	NN
and	CC
the	DT
possible	JJ
sale	NN
of	IN
other	JJ
subsidiaries	NNS
.	.

``	``
They	PRP
perhaps	RB
had	VBD
concern	NN
that	IN
we	PRP
were	VBD
getting	VBG
out	IN
of	IN
all	DT
these	DT
,	,
''	''
said	VBD
Franklin	NNP
President	NNP
Duane	NNP
H.	NNP
Hall	NNP
.	.

``	``
I	PRP
think	VBP
it	PRP
was	VBD
a	DT
little	RB
premature	JJ
on	IN
their	PRP$
part	NN
.	.

Just	RB
when	WRB
it	PRP
seemed	VBD
safe	JJ
to	TO
go	VB
back	RB
into	IN
stocks	NNS
,	,
Wall	NNP
Street	NNP
suffered	VBD
another	DT
severe	JJ
attack	NN
of	IN
nerves	NNS
.	.

Does	VBZ
this	DT
signal	VB
another	DT
Black	NNP
Monday	NNP
is	VBZ
coming	VBG
?	.

Or	CC
is	VBZ
this	DT
an	DT
extraordinary	JJ
buying	VBG
opportunity	NN
,	,
just	RB
like	IN
Oct.	NNP
19	CD
,	,
1987	CD
,	,
eventually	RB
turned	VBD
out	IN
to	TO
be	VB
?	.

Here	RB
's	POS
what	WP
several	JJ
leading	VBG
market	NN
experts	NNS
and	CC
money	NN
managers	NNS
say	VBP
about	IN
Friday	NNP
's	POS
action	NN
,	,
what	WP
happens	VBZ
next	JJ
and	CC
what	WP
investors	NNS
should	MD
do	VB
.	.

Joseph	NNP
Granville	NNP
.	.

``	``
I	PRP
'm	VBP
the	DT
only	RB
one	CD
who	WP
said	VBD
there	EX
would	MD
be	VB
an	DT
October	NNP
massacre	NN
,	,
all	DT
through	IN
late	JJ
August	NNP
and	CC
September	NNP
,	,
''	''
says	VBZ
Mr.	NNP
Granville	NNP
,	,
once	RB
a	DT
widely	RB
followed	VBN
market	NN
guru	NN
and	CC
still	RB
a	DT
well-known	JJ
newsletter	NN
writer	NN
.	.

``	``
Everyone	NN
will	MD
tell	VB
you	PRP
that	IN
this	DT
time	NN
is	VBZ
different	JJ
from	IN
1987	CD
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
Well	RB
,	,
in	IN
some	DT
ways	NNS
it	PRP
is	VBZ
different	JJ
,	,
but	CC
technically	RB
it	PRP
is	VBZ
just	RB
the	DT
same	JJ
.	.

If	IN
you	PRP
're	VBP
a	DT
technician	NN
,	,
you	PRP
obey	VB
the	DT
signals	NNS
.	.

Right	RB
now	RB
they	PRP
're	VBP
telling	VBG
me	PRP
to	TO
get	VB
the	DT
hell	NN
out	IN
and	CC
stay	VB
out	IN
.	.

I	PRP
see	VB
no	DT
major	JJ
support	VB
until	IN
2200	CD
.	.

I	PRP
see	VB
a	DT
possibility	NN
of	IN
going	VBG
to	TO
2200	CD
this	DT
month	NN
.	.
''	''

Mr.	NNP
Granville	NNP
says	VBZ
he	PRP
would	MD
n't	RB
even	RB
think	VBP
of	IN
buying	VBG
until	IN
at	IN
least	JJS
600	CD
to	TO
700	CD
stocks	NNS
have	VB
hit	VBD
52-week	JJ
lows	NNS
;	:
about	IN
100	CD
stocks	NNS
hit	VBD
new	JJ
lows	NNS
Friday	NNP
.	.

``	``
Most	RBS
people	NNS
,	,
''	''
he	PRP
says	VBZ
,	,
``	``
have	VB
no	DT
idea	NN
what	WP
a	DT
massacre	NN
pattern	NN
looks	VBZ
like	IN
.	.
''	''

Elaine	NNP
Garzarelli	VB
.	.

A	DT
quantitative	JJ
analyst	NN
with	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc.	NNP
,	,
Ms.	NNP
Garzarelli	VB
had	VBD
warned	VBD
clients	NNS
to	TO
take	VB
their	PRP$
money	NN
out	IN
of	IN
the	DT
market	NN
before	IN
the	DT
1987	CD
crash	VB
.	.

Friday	NNP
's	POS
big	JJ
drop	NN
,	,
she	PRP
says	VBZ
,	,
``	``
was	VBD
not	RB
a	DT
crash	VB
.	.

This	DT
was	VBD
an	DT
October	NNP
massacre	NN
''	''
like	IN
those	DT
that	IN
occurred	VBD
in	IN
1978	CD
and	CC
1979	CD
.	.

Now	RB
,	,
as	RB
in	IN
those	DT
two	CD
years	NNS
,	,
her	PRP$
stock	NN
market	NN
indicators	NNS
are	VBP
positive	JJ
.	.

So	IN
she	PRP
thinks	VBZ
the	DT
damage	NN
will	MD
be	VB
short-lived	JJ
and	CC
contained	VBD
.	.

``	``
Those	DT
corrections	NNS
lasted	VBN
one	CD
to	TO
four	CD
weeks	NNS
and	CC
took	VBD
the	DT
market	NN
10%-12	VB
%	NN
down	IN
,	,
''	''
she	PRP
says	VBZ
.	.

``	``
This	DT
is	VBZ
exactly	RB
the	DT
same	JJ
thing	NN
,	,
as	RB
far	JJ
as	RB
I	PRP
'm	VBP
concerned	VBD
.	.
''	''

Thus	RB
,	,
she	PRP
says	VBZ
,	,
if	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
dropped	VBD
below	IN
2450	VB
,	,
``	``
It	NNP
would	MD
just	RB
be	VB
a	DT
fluke	NN
.	.

My	PRP$
advice	NN
is	VBZ
to	TO
buy	VB
.	.
''	''

As	IN
she	PRP
calculates	VBZ
it	PRP
,	,
the	DT
average	NN
stock	NN
now	RB
sells	VBZ
for	IN
about	IN
12.5	CD
times	NNS
companies	NNS
'	POS
earnings	NNS
.	.

She	PRP
says	VBZ
that	IN
ratio	NN
could	MD
climb	NN
to	TO
14.5	CD
,	,
given	VBN
current	NN
interest	NN
rates	NNS
,	,
and	CC
still	RB
be	VB
within	IN
the	DT
range	NN
of	IN
``	``
fair	JJ
value	NN
.	.
''	''

Ned	NNP
Davis	NNP
.	.

Friday	NNP
's	POS
fall	VB
marks	VBZ
the	DT
start	VB
of	IN
a	DT
bear	VBP
market	NN
,	,
says	VBZ
Mr.	NNP
Davis	NNP
,	,
president	NN
of	IN
Ned	NNP
Davis	NNP
Research	NNP
Inc	NNP
.	.

But	CC
Mr.	NNP
Davis	NNP
,	,
whose	WP$
views	NNS
are	VBP
widely	RB
respected	VBN
by	IN
money	NN
managers	NNS
,	,
says	VBZ
he	PRP
expects	VBZ
no	DT
1987-style	JJ
crash	VB
.	.

``	``
There	EX
was	VBD
a	DT
unique	JJ
combination	NN
in	IN
1987	CD
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
Margin	NN
debt	NN
was	VBD
at	IN
a	DT
record	NN
high	JJ
.	.

There	EX
was	VBD
tremendous	JJ
public	JJ
enthusiasm	NN
for	IN
stock	NN
mutual	JJ
funds	NNS
.	.

The	DT
main	JJ
thing	NN
was	VBD
portfolio	NN
insurance	NN
,	,
''	''
a	DT
mechanical	JJ
trading	NN
system	NN
intended	VBN
to	TO
protect	VB
an	DT
investor	NN
against	IN
losses	NNS
.	.
``	``

A	DT
hundred	CD
billion	CD
dollars	NNS
in	IN
stock	NN
was	VBD
subject	NN
''	''
to	TO
it	PRP
.	.

In	IN
1987	CD
,	,
such	JJ
selling	VBG
contributed	VBD
to	TO
a	DT
snowball	VB
effect	NN
.	.

Today	NN
could	MD
even	RB
be	VB
an	DT
up	RP
day	NN
,	,
Mr.	NNP
Davis	NNP
says	VBZ
,	,
if	IN
major	JJ
brokerage	NN
firms	NNS
agree	VB
to	TO
refrain	VB
from	IN
program	NN
trading	NN
.	.

Over	IN
the	DT
next	JJ
several	JJ
months	NNS
,	,
though	IN
,	,
he	PRP
says	VBZ
things	NNS
look	VB
bad	JJ
.	.

``	``
I	PRP
think	VBP
the	DT
market	NN
will	MD
be	VB
heading	VBG
down	IN
into	IN
November	NNP
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
We	PRP
will	MD
probably	RB
have	VB
a	DT
year-end	NN
rally	NN
,	,
and	CC
then	RB
go	VB
down	IN
again	RB
.	.

Sort	IN
of	IN
a	DT
two-step	JJ
bear	VBP
market	NN
.	.
''	''

He	PRP
expects	VBZ
the	DT
downturn	NN
to	TO
carry	VBP
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
down	IN
to	TO
around	IN
2000	CD
sometime	RB
next	JJ
year	NN
.	.

``	``
That	DT
would	MD
be	VB
a	DT
normal	JJ
bear	VBP
market	NN
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
I	PRP
guess	VB
that	IN
's	POS
my	PRP$
forecast	VBP
.	.
''	''

Leon	NNP
G.	NNP
Cooperman	VB
.	.

``	``
I	PRP
do	VB
n't	RB
think	VBP
the	DT
market	NN
is	VBZ
going	VBG
through	IN
another	DT
October	NNP
'87	VB
.	.

I	PRP
do	VB
n't	RB
think	VBP
that	IN
's	POS
the	DT
case	NN
at	IN
all	DT
,	,
''	''
says	VBZ
Mr.	NNP
Cooperman	VB
,	,
a	DT
partner	NN
at	IN
Goldman	NNP
,	,
Sachs	NNP
&	CC
Co.	NNP
and	CC
chairman	NN
of	IN
Goldman	NNP
Sachs	NNP
Asset	NNP
Management	NNP
.	.

Mr.	NNP
Cooperman	VB
sees	VBZ
this	DT
as	RB
a	DT
good	JJ
time	NN
to	TO
pick	VB
up	RP
bargains	NNS
,	,
but	CC
he	PRP
does	VBZ
n't	RB
think	VBP
there	EX
's	POS
any	DT
need	MD
to	TO
rush	NN
.	.

``	``
I	PRP
expect	VBP
the	DT
market	NN
to	TO
open	JJ
weaker	JJR
Monday	NNP
,	,
but	CC
then	RB
it	PRP
should	MD
find	VB
some	DT
stability	NN
.	.
''	''

He	PRP
ticks	VB
off	RP
several	JJ
major	JJ
differences	NNS
between	IN
now	RB
and	CC
two	CD
years	NNS
ago	IN
.	.

Unlike	IN
1987	CD
,	,
interest	NN
rates	NNS
have	VBP
been	VBN
falling	VBG
this	DT
year	NN
.	.

Unlike	IN
1987	CD
,	,
the	DT
dollar	NN
has	VBZ
been	VBN
strong	JJ
.	.

And	CC
unlike	IN
1987	CD
,	,
the	DT
economy	NN
does	VBZ
n't	RB
appear	VB
to	TO
be	VB
in	IN
any	DT
danger	NN
of	IN
overheating	VB
.	.

But	CC
the	DT
economy	NN
's	POS
slower	JJR
growth	NN
this	DT
year	NN
also	RB
means	VBZ
the	DT
outlook	NN
for	IN
corporate	JJ
profits	NNS
``	``
is	VBZ
n't	RB
good	JJ
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
So	RB
it	PRP
's	POS
a	DT
very	RB
mixed	VBN
bag	NN
.	.
''	''

Thus	RB
,	,
he	PRP
concludes	VBZ
,	,
``	``
This	DT
is	VBZ
not	RB
a	DT
good	JJ
environment	NN
to	TO
be	VB
fully	RB
invested	VBN
''	''
in	IN
stocks	NNS
.	.

``	``
If	IN
I	PRP
had	VBD
come	VBP
into	IN
Friday	NNP
on	IN
margin	NN
or	CC
with	IN
very	RB
little	RB
cash	NN
in	IN
the	DT
portfolios	NNS
,	,
I	PRP
would	MD
not	RB
do	VB
any	DT
buying	VBG
.	.

But	CC
we	PRP
came	VBD
into	IN
Friday	NNP
with	IN
a	DT
conservative	JJ
portfolio	NN
,	,
so	RB
I	PRP
would	MD
look	VB
to	TO
do	VB
some	DT
modest	JJ
buying	VBG
''	''
on	IN
behalf	NN
of	IN
clients	NNS
.	.
``	``

We	PRP
're	VBP
going	VBG
to	TO
look	VB
for	IN
some	DT
of	IN
the	DT
better-known	JJ
companies	NNS
that	IN
got	VBD
clocked	VB
''	''
Friday	NNP
.	.

John	NNP
Kenneth	NNP
Galbraith	VB
.	.

``	``
This	DT
is	VBZ
the	DT
latest	JJS
manifestation	VB
of	IN
the	DT
capacity	NN
of	IN
the	DT
financial	JJ
community	NN
for	IN
recurrent	VB
insanity	VB
,	,
''	''
says	VBZ
Mr.	NNP
Galbraith	VB
,	,
an	DT
economist	NN
.	.

``	``
I	PRP
see	VB
this	DT
as	RB
a	DT
reaction	NN
to	TO
the	DT
whole	JJ
junk	NN
bond	NN
explosion	NN
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
The	DT
explosion	NN
of	IN
junk	NN
bonds	NNS
and	CC
takeovers	NNS
has	VBZ
lodged	VBN
a	DT
lot	NN
of	IN
insecure	VB
securities	NNS
in	IN
the	DT
hands	NNS
of	IN
investors	NNS
and	CC
loaded	VBN
the	DT
corporations	NNS
that	IN
are	VBP
the	DT
objects	NNS
of	IN
takeovers	NNS
or	CC
feared	VBD
takeovers	NNS
with	IN
huge	JJ
amounts	NNS
of	IN
debt	NN
rather	RB
than	IN
equity	NN
.	.

This	DT
has	VBZ
both	DT
made	VBN
investors	NNS
uneasy	JJ
and	CC
the	DT
corporations	NNS
more	RBR
vulnerable	JJ
.	.
''	''

Nevertheless	RB
,	,
he	PRP
says	VBZ
a	DT
depression	NN
does	VBZ
n't	RB
appear	VB
likely	JJ
.	.

``	``
There	EX
is	VBZ
more	RBR
resiliency	NN
in	IN
the	DT
economy	NN
at	IN
large	JJ
than	IN
we	PRP
commonly	RB
suppose	VBP
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
It	NNP
takes	VBZ
more	RBR
error	NN
now	RB
to	TO
have	VB
a	DT
major	JJ
depression	NN
than	IN
back	RB
in	IN
the	DT
Thirties	VB
--	:
much	JJ
as	RB
the	DT
financial	JJ
community	NN
and	CC
the	DT
government	NN
may	MD
try	VB
.	.
''	''

Mario	NNP
Gabelli	NNP
.	.

New	NNP
York	NNP
money	NN
manager	NN
Mario	NNP
Gabelli	NNP
,	,
an	DT
expert	NN
at	IN
spotting	VBG
takeover	NN
candidates	NNS
,	,
says	VBZ
that	IN
takeovers	NNS
are	VBP
n't	RB
totally	RB
gone	VBN
.	.

``	``
Companies	NNPS
are	VBP
still	RB
going	VBG
to	TO
buy	VB
companies	NNS
around	IN
the	DT
world	NN
,	,
''	''
he	PRP
says	VBZ
.	.

Examples	NNS
are	VBP
``	``
Ford	NNP
looking	VBG
at	IN
Jaguar	NNP
,	,
BellSouth	NNP
looking	VBG
at	IN
LIN	NNP
Broadcasting	NNP
.	.
''	''

These	DT
sorts	NNS
of	IN
takeovers	NNS
do	VBP
n't	RB
require	VB
junk	NN
bonds	NNS
or	CC
big	JJ
bank	NN
loans	NNS
to	TO
finance	VB
them	PRP
,	,
so	RB
Mr.	NNP
Gabelli	NNP
figures	NNS
they	PRP
will	MD
continue	VB
.	.

``	``
The	DT
market	NN
was	VBD
up	RP
35	CD
%	NN
since	IN
{	(
President	NNP
}	)
Bush	NNP
took	VBD
office	NN
,	,
''	''
Mr.	NNP
Gabelli	NNP
says	VBZ
,	,
so	RB
a	DT
correction	NN
was	VBD
to	TO
be	VB
expected	VBN
.	.

He	PRP
thinks	VBZ
another	DT
crash	VB
is	VBZ
``	``
unlikely	JJ
,	,
''	''
and	CC
says	VBZ
he	PRP
was	VBD
``	``
nibbling	VB
at	IN
''	''
selected	VBN
stocks	NNS
during	IN
Friday	NNP
's	POS
plunge	NN
.	.

``	``
Stocks	NNS
that	IN
were	VBD
thrown	VBN
out	IN
just	RB
on	IN
an	DT
emotional	JJ
basis	NN
are	VBP
a	DT
great	JJ
opportunity	NN
{	(
this	DT
}	)
week	NN
for	IN
guys	NNS
like	IN
me	PRP
,	,
''	''
he	PRP
says	VBZ
.	.

Jim	NNP
Rogers	NNP
.	.

``	``
It	NNP
seems	VBZ
to	TO
me	PRP
that	IN
this	DT
is	VBZ
the	DT
pin	VB
that	IN
has	VBZ
finally	RB
pricked	VB
the	DT
balloon	NN
,	,
''	''
says	VBZ
Mr.	NNP
Rogers	NNP
,	,
a	DT
professor	NN
of	IN
finance	NN
at	IN
Columbia	NNP
University	NNP
and	CC
former	JJ
co-manager	NN
of	IN
one	CD
of	IN
the	DT
most	RBS
successful	JJ
hedge	NN
funds	NNS
in	IN
history	NN
,	,
Quantum	NNP
Fund	NNP
.	.

He	PRP
sees	VBZ
``	``
economic	JJ
problems	NNS
,	,
financial	JJ
problems	NNS
''	''
ahead	RB
for	IN
the	DT
U.S.	NNP
,	,
with	IN
a	DT
fairly	RB
strong	JJ
possibility	NN
of	IN
a	DT
recession	NN
.	.

``	``
Friday	NNP
you	PRP
could	MD
n't	RB
sell	VB
dollars	NNS
,	,
''	''
he	PRP
says	VBZ
.	.

Dealers	NNS
``	``
would	MD
give	VBP
you	PRP
a	DT
quote	NN
,	,
but	CC
then	RB
refuse	VB
to	TO
make	VBP
the	DT
trade	NN
.	.
''	''

If	IN
the	DT
dollar	NN
stays	VBZ
weak	JJ
,	,
he	PRP
says	VBZ
,	,
that	WDT
will	MD
add	VB
to	TO
inflationary	JJ
pressures	NNS
in	IN
the	DT
U.S.	NNP
and	CC
make	VB
it	PRP
hard	RB
for	IN
the	DT
Federal	NNP
Reserve	NNP
Board	NNP
to	TO
ease	VB
interest	NN
rates	NNS
very	RB
much	RB
.	.

Mr.	NNP
Rogers	NNP
wo	MD
n't	RB
decide	VB
what	WP
to	TO
do	VB
today	NN
until	IN
he	PRP
sees	VBZ
how	WRB
the	DT
London	NNP
and	CC
Tokyo	NNP
markets	NNS
go	VB
.	.

He	PRP
recommends	VBZ
that	IN
investors	NNS
sell	VB
takeover-related	JJ
stocks	NNS
,	,
but	CC
hang	VB
on	IN
to	TO
some	DT
other	JJ
stocks	NNS
--	:
especially	RB
utilities	NNS
,	,
which	WDT
often	RB
do	VB
well	RB
during	IN
periods	NNS
of	IN
economic	JJ
weakness	NN
.	.

Frank	NNP
Curzio	VB
.	.

Many	DT
people	NNS
now	RB
claim	NN
to	TO
have	VB
predicted	VBD
the	DT
1987	CD
crash	VB
.	.

Queens	NNP
newsletter	NN
writer	NN
Francis	NNP
X.	NNP
Curzio	VB
actually	RB
did	VBD
it	PRP
:	:
He	PRP
stated	VBN
in	IN
writing	VBG
in	IN
September	NNP
1987	CD
that	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
was	VBD
likely	JJ
to	TO
decline	NN
about	IN
500	CD
points	NNS
the	DT
following	VBG
month	NN
.	.

Mr.	NNP
Curzio	VB
says	VBZ
what	WP
happens	VBZ
now	RB
will	MD
depend	VBP
a	DT
good	JJ
deal	NN
on	IN
the	DT
Federal	NNP
Reserve	NNP
Board	NNP
.	.

If	IN
it	PRP
promptly	RB
cuts	VBZ
the	DT
discount	NN
rate	NN
it	PRP
charges	VBZ
on	IN
loans	NNS
to	TO
banks	NNS
,	,
he	PRP
says	VBZ
,	,
``	``
That	DT
could	MD
quiet	VB
things	NNS
down	IN
.	.
''	''

If	IN
not	RB
,	,
``	``
We	PRP
could	MD
go	VB
to	TO
2200	CD
very	RB
soon	RB
.	.
''	''

Frank	NNP
W.	NNP
Terrizzi	NNP
.	.

Stock	NNP
prices	NNS
``	``
would	MD
still	RB
have	VB
to	TO
go	VB
down	IN
some	DT
additional	JJ
amount	VBP
before	IN
we	PRP
become	VB
positive	JJ
on	IN
stocks	NNS
,	,
''	''
says	VBZ
Mr.	NNP
Terrizzi	NNP
,	,
president	NN
and	CC
managing	VBG
director	NN
of	IN
Renaissance	NNP
Investment	NNP
Management	NNP
Inc.	NNP
in	IN
Cincinnati	NNP
.	.

Renaissance	NNP
,	,
which	WDT
manages	VBZ
about	IN
$	$
1.8	CD
billion	CD
,	,
drew	VBD
stiff	JJ
criticism	NN
from	IN
many	JJ
clients	NNS
earlier	JJR
this	DT
year	NN
because	IN
it	PRP
pulled	VBN
entirely	RB
out	IN
of	IN
stocks	NNS
at	IN
the	DT
beginning	NN
of	IN
the	DT
year	NN
and	CC
thus	RB
missed	VBD
a	DT
strong	JJ
rally	NN
.	.

Renaissance	NNP
is	VBZ
keeping	VBG
its	PRP$
money	NN
entirely	RB
in	IN
cash	NN
equivalents	NNS
,	,
primarily	RB
U.S.	NNP
Treasury	NNP
bills	NNS
.	.

``	``
T-bills	NNS
probably	RB
are	VBP
the	DT
right	RB
place	NN
to	TO
be	VB
,	,
''	''
he	PRP
says	VBZ
.	.

Regarding	VBG
the	DT
Oct.	NNP
3	CD
letter	NN
to	TO
the	DT
editor	NN
from	IN
Rep.	NNP
Tom	NNP
Lantos	NNP
,	,
chairman	NN
of	IN
the	DT
House	NNP
Subcommittee	NNP
on	IN
Employment	NN
and	CC
Housing	NN
,	,
alleging	VBG
:	:

1	CD
.	.
That	DT
your	PRP$
Sept.	NNP
28	CD
editorial	NN
``	``
Kangaroo	VB
Committees	NNS
''	''
was	VBD
factually	RB
inaccurate	JJ
and	CC
deliberately	RB
misleading	JJ
.	.

I	PRP
thought	VBN
your	PRP$
editorial	NN
was	VBD
factually	RB
accurate	JJ
and	CC
deliberately	RB
elucidative	VB
.	.

2	LS
.	.
That	DT
Mr.	NNP
Lantos	NNP
supported	VBN
the	DT
rights	NNS
of	IN
the	DT
witnesses	NNS
to	TO
take	VB
the	DT
Fifth	NNP
Amendment	NNP
.	.

Yes	UH
,	,
he	PRP
did	VBD
.	.

As	IN
I	PRP
watched	VBD
him	PRP
on	IN
C-Span	VB
,	,
I	PRP
heard	VBN
him	PRP
speak	VB
those	DT
lovely	JJ
words	NNS
about	IN
the	DT
Bill	NNP
of	IN
Rights	NNPS
,	,
which	WDT
he	PRP
quotes	VBZ
from	IN
the	DT
transcript	NN
of	IN
the	DT
hearings	NNS
.	.

He	PRP
did	VBD
repeat	VB
those	DT
nice	JJ
platitudes	VB
several	JJ
times	NNS
as	RB
an	DT
indication	NN
of	IN
his	PRP$
support	VB
for	IN
the	DT
Constitution	NNP
.	.

He	PRP
used	VBN
about	IN
56	CD
words	NNS
defending	VBG
the	DT
witnesses	NNS
'	POS
constitutional	JJ
rights	NNS
.	.

Unfortunately	RB
,	,
by	IN
my	PRP$
rough	JJ
guess	VB
,	,
he	PRP
used	VBN
better	RB
than	IN
5,000	CD
words	NNS
heaping	VB
scorn	VB
on	IN
the	DT
witnesses	NNS
for	IN
exercising	VBG
the	DT
Fifth	NNP
.	.

He	PRP
sandwiched	VBN
his	PRP$
praise	NN
of	IN
constitutional	JJ
meat	NN
between	IN
large	JJ
loaves	VB
of	IN
bilious	VB
commentary	NN
.	.

As	IN
your	PRP$
editorial	NN
rightly	RB
pointed	VBD
out	IN
,	,
Samuel	NNP
Pierce	NNP
,	,
former	JJ
HUD	NNP
secretary	NN
,	,
and	CC
Lance	NNP
Wilson	NNP
,	,
Mr.	NNP
Pierce	NNP
's	POS
former	JJ
aide	NN
,	,
``	``
are	VBP
currently	RB
being	VBG
held	VBD
up	RP
to	TO
scorn	VB
for	IN
taking	VBG
the	DT
Fifth	NNP
Amendment	NNP
.	.

''	''
That	DT
certainly	RB
is	VBZ
not	RB
the	DT
supposed	VBD
``	``
distorted	VBN
reading	NN
''	''
indicated	VBD
by	IN
Mr.	NNP
Lantos	NNP
.	.

3	CD
.	.
That	DT
his	PRP$
``	``
committee	NN
does	VBZ
not	RB
deal	NN
with	IN
any	DT
possible	JJ
criminal	JJ
activity	NN
at	IN
HUD	NNP
.	.

My	PRP$
colleagues	NNS
and	CC
I	PRP
fully	RB
realize	VB
we	PRP
are	VBP
not	RB
a	DT
court	NN
...	:
etc	FW
.	.
''	''

Absolute	IN
rubbish	JJ
.	.

By	IN
any	DT
``	``
reasonable	JJ
man	NN
''	''
criterion	VB
,	,
Mr.	NNP
Lantos	NNP
and	CC
his	PRP$
colleagues	NNS
have	VB
a	DT
whole	JJ
bunch	NN
of	IN
people	NNS
tried	VBD
and	CC
convicted	VBN
.	.

Apparently	RB
,	,
their	PRP$
verdict	NN
is	VBZ
in	IN
.	.

Right	RB
now	RB
they	PRP
're	VBP
pursuing	VBG
evidence	NN
.	.

That	DT
's	VBZ
not	RB
a	DT
bad	JJ
way	NN
to	TO
proceed	VB
,	,
just	RB
somewhat	RB
different	JJ
from	IN
standard	NN
American	JJ
practice	NN
.	.

How	WRB
was	VBD
that	IN
practice	NN
referred	VBN
to	TO
when	WRB
I	PRP
was	VBD
in	IN
school	NN
?	.

Ah	UH
,	,
yes	UH
,	,
something	NN
called	VBN
a	DT
Star	NNP
Chamber	NNP
.	.

Of	IN
course	NN
,	,
Mr.	NNP
Lantos	NNP
doth	NNP
protest	NN
that	IN
his	PRP$
subcommittee	NN
simply	RB
seeks	VBZ
information	NN
for	IN
legislative	JJ
change	NN
.	.

No	DT
doubt	NN
that	IN
's	POS
partially	RB
true	JJ
.	.

Everything	NN
that	IN
Mr.	NNP
Lantos	NNP
says	VBZ
in	IN
his	PRP$
letter	NN
is	VBZ
partially	RB
true	JJ
.	.

He	PRP
's	POS
right	RB
about	IN
his	PRP$
subcommittee	NN
's	POS
responsibilities	NNS
when	WRB
it	PRP
comes	VBZ
to	TO
obtaining	VBG
information	NN
from	IN
prior	RB
HUD	NNP
officials	NNS
.	.

But	CC
if	IN
his	PRP$
explanation	NN
of	IN
motivation	NN
is	VBZ
true	JJ
,	,
why	WRB
is	VBZ
his	PRP$
investigation	NN
so	RB
oriented	VBN
as	RB
to	TO
identify	VB
criminal	JJ
activity	NN
?	.

Why	WRB
not	RB
simply	RB
questions	NNS
designed	VBN
to	TO
identify	VB
sources	NNS
and	CC
causes	NNS
of	IN
waste	NN
and	CC
inefficiency	NN
?	.

Such	JJ
as	RB
,	,
what	WP
happened	VBD
when	WRB
Congress	NNP
wanted	VBN
to	TO
know	VB
about	IN
$	$
400	CD
toilet	NN
seats	NNS
or	CC
whatever	WDT
they	PRP
supposedly	RB
cost	NN
?	.

No	DT
,	,
Mr.	NNP
Lantos	NNP
's	POS
complaints	NNS
simply	RB
wo	MD
n't	RB
wash	NN
.	.

4	CD
.	.
That	DT
the	DT
Journal	NNP
defends	VBZ
``	``
the	DT
sleaze	VB
,	,
fraud	NN
,	,
waste	NN
,	,
embezzlement	VB
,	,
influence-peddling	NN
and	CC
abuse	NN
of	IN
the	DT
public	JJ
that	IN
took	VBD
place	NN
while	IN
Mr.	NNP
Pierce	NNP
was	VBD
secretary	NN
of	IN
HUD	NNP
,	,
''	''
etc.	FW
and	CC
so	RB
forth	RB
.	.

No	DT
,	,
to	TO
my	PRP$
mind	NN
,	,
the	DT
Journal	NNP
did	VBD
not	RB
``	``
defend	VB
sleaze	VB
,	,
fraud	NN
,	,
waste	NN
,	,
embezzlement	VB
,	,
influence-peddling	NN
and	CC
abuse	NN
of	IN
the	DT
public	JJ
trust	NN
...	:
''	''

it	PRP
defended	VBD
appropriate	JJ
constitutional	JJ
safeguards	NNS
and	CC
practical	JJ
common	JJ
sense	NN
.	.

The	DT
problem	NN
,	,
which	WDT
the	DT
Journal	NNP
so	RB
rightly	RB
pointed	VBD
out	IN
in	IN
a	DT
number	NN
of	IN
articles	NNS
,	,
is	VBZ
not	RB
the	DT
likes	VBZ
of	IN
Mr.	NNP
Lantos	NNP
,	,
who	WP
after	IN
all	DT
is	VBZ
really	RB
a	DT
bit	NN
player	NN
on	IN
the	DT
stage	NN
,	,
but	CC
the	DT
attempt	NN
by	IN
Congress	NNP
to	TO
enhance	VB
itself	PRP
into	IN
a	DT
quasi-parliamentary\/judicial	VB
body	NN
.	.

(	(
Of	IN
course	NN
,	,
we	PRP
've	VBP
also	RB
got	VBD
a	DT
judiciary	NN
that	IN
seeks	VBZ
the	DT
same	JJ
objective	JJ
.	.
)	)

The	DT
system	NN
is	VBZ
the	DT
problem	NN
,	,
not	RB
an	DT
individual	JJ
member	NN
.	.

Individuals	NNS
can	MD
always	RB
have	VB
their	PRP$
hands	NNS
slapped	VBD
.	.

It	NNP
's	POS
when	WRB
such	JJ
slapping	NN
does	VBZ
n't	RB
occur	VB
that	IN
we	PRP
've	VBP
got	VBD
trouble	NN
.	.

I	PRP
do	VB
not	RB
by	IN
any	DT
means	VBZ
defend	VB
HUD	NNP
management	NN
.	.

But	CC
I	PRP
think	VBP
the	DT
kind	NN
of	IN
congressional	JJ
investigation	NN
that	IN
has	VBZ
been	VBN
pursued	VBN
is	VBZ
a	DT
far	JJ
greater	JJR
danger	NN
to	TO
American	JJ
notions	NNS
of	IN
liberty	NN
and	CC
freedom	NN
than	IN
any	DT
incompetency	VB
(	(
and	CC
,	,
yes	UH
,	,
maybe	RB
criminality	NN
)	)
within	IN
HUD	NNP
could	MD
possibly	RB
generate	VB
.	.

The	DT
last	JJ
time	NN
I	PRP
saw	VBD
a	DT
similar	JJ
congressional	JJ
hearing	NN
was	VBD
when	WRB
``	``
Tail	VB
Gunner	VB
Joe	NNP
''	''
McCarthy	NNP
did	VBD
his	PRP$
work	NN
.	.

Raymond	NNP
Weber	VB

Parsippany	IN
,	,
N.J	NNP
.	.

I	PRP
disagree	VBP
with	IN
the	DT
statement	NN
by	IN
Mr.	NNP
Lantos	NNP
that	IN
one	CD
should	MD
not	RB
draw	VB
an	DT
adverse	JJ
inference	VB
against	IN
former	JJ
HUD	NNP
officials	NNS
who	WP
assert	VB
their	PRP$
Fifth	NNP
Amendment	NNP
privilege	NN
against	IN
self-incrimination	NN
in	IN
congressional	JJ
hearings	NNS
.	.

The	DT
Fifth	NNP
Amendment	NNP
states	NNS
in	IN
relevant	JJ
part	NN
that	IN
no	DT
person	NN
``	``
shall	MD
be	VB
compelled	VBN
,	,
in	IN
any	DT
criminal	JJ
case	NN
,	,
to	TO
be	VB
a	DT
witness	NN
against	IN
himself	PRP
.	.
''	''

This	DT
privilege	NN
against	IN
self-incrimination	NN
precludes	VB
the	DT
drawing	VBG
of	IN
an	DT
adverse	JJ
inference	VB
against	IN
a	DT
criminal	JJ
defendant	NN
who	WP
chooses	VBZ
not	RB
to	TO
testify	VB
.	.

Thus	RB
,	,
in	IN
a	DT
criminal	JJ
case	NN
,	,
a	DT
prosecutor	NN
can	MD
not	RB
comment	NN
on	IN
a	DT
defendant	NN
's	POS
failure	NN
to	TO
testify	VB
nor	CC
can	MD
the	DT
defendant	NN
be	VB
compelled	VBN
to	TO
take	VB
the	DT
stand	VB
as	RB
a	DT
witness	NN
,	,
thus	RB
forcing	VBG
him	PRP
to	TO
``	``
take	VB
the	DT
Fifth	NNP
.	.
''	''

The	DT
privilege	NN
,	,
however	RB
,	,
has	VBZ
been	VBN
limited	VBN
in	IN
accordance	VB
with	IN
its	PRP$
plain	JJ
language	NN
to	TO
protect	VB
the	DT
defendant	NN
in	IN
criminal	JJ
matters	NNS
only	RB
.	.

The	DT
Supreme	NNP
Court	NNP
and	CC
some	DT
states	NNS
have	VB
specifically	RB
recognized	VBN
that	IN
``	``
the	DT
Fifth	NNP
Amendment	NNP
does	VBZ
not	RB
preclude	VB
the	DT
inference	VB
where	WRB
the	DT
privilege	NN
is	VBZ
claimed	VBD
by	IN
a	DT
party	NN
to	TO
a	DT
civil	JJ
cause	VB
.	.
''	''

Baxter	NNP
v.	IN
Palmingiano	VB
,	,
425	CD
U.S.	NNP
308	VB
(	(
1976	CD
)	)
.	.

Thus	RB
,	,
in	IN
a	DT
civil	JJ
case	NN
,	,
a	DT
defendant	NN
may	MD
be	VB
called	VBN
as	RB
a	DT
witness	NN
,	,
he	PRP
may	MD
be	VB
forced	VBD
to	TO
testify	VB
or	CC
take	VB
the	DT
Fifth	NNP
,	,
and	CC
his	PRP$
taking	VBG
of	IN
the	DT
Fifth	NNP
may	MD
permit	VB
the	DT
drawing	VBG
of	IN
an	DT
adverse	JJ
inference	VB
against	IN
him	PRP
in	IN
the	DT
civil	JJ
matter	NN
.	.

He	PRP
may	MD
take	VB
the	DT
Fifth	NNP
in	IN
a	DT
civil	JJ
matter	NN
only	RB
if	IN
he	PRP
has	VBZ
a	DT
good	JJ
faith	NN
and	CC
justifiable	VB
belief	NN
that	IN
his	PRP$
testimony	NN
may	MD
subject	NN
him	PRP
to	TO
criminal	JJ
prosecution	NN
.	.

Allowing	VBG
the	DT
defendant	NN
to	TO
take	VB
the	DT
Fifth	NNP
in	IN
a	DT
civil	JJ
matter	NN
is	VBZ
not	RB
based	VBN
on	IN
a	DT
constitutional	JJ
right	RB
to	TO
refuse	VB
to	TO
testify	VB
where	WRB
one	CD
's	POS
testimony	NN
harms	VBZ
him	PRP
in	IN
the	DT
civil	JJ
matter	NN
,	,
but	CC
because	IN
the	DT
testimony	NN
in	IN
the	DT
civil	JJ
matter	NN
could	MD
be	VB
unconstitutionally	VB
used	VBN
against	IN
him	PRP
in	IN
a	DT
subsequent	JJ
criminal	JJ
prosecution	NN
.	.

Absent	IN
the	DT
risk	NN
of	IN
such	JJ
prosecution	NN
,	,
a	DT
court	NN
may	MD
order	NN
the	DT
defendant	NN
to	TO
testify	VB
.	.

Thus	RB
,	,
when	WRB
Mr.	NNP
Pierce	NNP
asserted	VBD
the	DT
Fifth	NNP
in	IN
a	DT
noncriminal	JJ
proceeding	NN
,	,
particularly	RB
after	IN
presumably	RB
receiving	VBG
extensive	JJ
advice	NN
from	IN
legal	JJ
counsel	NN
,	,
one	CD
must	MD
conclude	VBP
that	IN
he	PRP
held	VBD
a	DT
good-faith	VB
,	,
justifiable	VB
belief	NN
that	IN
his	PRP$
testimony	NN
could	MD
be	VB
used	VBN
against	IN
him	PRP
in	IN
a	DT
subsequent	JJ
criminal	JJ
prosecution	NN
.	.

The	DT
subcommittee	NN
,	,
Congress	NNP
and	CC
the	DT
American	JJ
public	JJ
have	VB
every	DT
right	RB
to	TO
draw	VB
the	DT
adverse	JJ
inference	VB
and	CC
to	TO
concur	VB
with	IN
Mr.	NNP
Pierce	NNP
's	POS
own	JJ
belief	NN
that	IN
his	PRP$
testimony	NN
could	MD
help	VB
convict	VB
him	PRP
of	IN
a	DT
crime	NN
.	.

Drawing	IN
the	DT
adverse	JJ
inference	VB
in	IN
a	DT
noncriminal	JJ
congressional	JJ
hearing	NN
does	VBZ
not	RB
offend	VB
the	DT
Fifth	NNP
Amendment	NNP
shield	VB
against	IN
self-incrimination	NN
.	.

Clark	NNP
S.	NNP
Spalsbury	VB
Jr	NNP
.	.

Estes	IN
Park	NNP
,	,
Colo	NNP
.	.

It	NNP
was	VBD
Friday	NNP
the	DT
13th	JJ
,	,
and	CC
the	DT
stock	NN
market	NN
plummeted	VBD
nearly	RB
200	CD
points	NNS
.	.

Just	RB
a	DT
coincidence	NN
?	.

Or	CC
is	VBZ
triskaidekaphobia	VB
--	:
fear	VBP
of	IN
the	DT
number	NN
13	CD
--	:
justified	JJ
?	.

In	IN
academia	NN
,	,
a	DT
so-called	JJ
Friday	NNP
the	DT
13th	JJ
effect	NN
has	VBZ
been	VBN
set	VBN
up	RP
and	CC
shot	NN
down	IN
by	IN
different	JJ
professors	NNS
.	.

Robert	NNP
Kolb	VB
and	CC
Ricardo	VB
Rodriguez	NNP
,	,
professors	NNS
of	IN
finance	NN
at	IN
the	DT
University	NNP
of	IN
Miami	NNP
,	,
found	VBD
evidence	NN
that	IN
the	DT
market	NN
is	VBZ
spooked	VBN
by	IN
Friday	NNP
the	DT
13th	JJ
.	.

But	CC
their	PRP$
study	NN
,	,
which	WDT
spanned	VB
the	DT
1962-85	VB
period	NN
,	,
has	VBZ
since	IN
been	VBN
shown	VBN
to	TO
be	VB
jinxed	VB
by	IN
an	DT
unlucky	VB
choice	NN
of	IN
data	NNS
.	.

In	IN
the	DT
'70s	CD
,	,
the	DT
market	NN
took	VBD
falls	VBZ
nine	CD
times	NNS
in	IN
a	DT
row	NN
on	IN
Friday	NNP
the	DT
you-know-what	VB
.	.

But	CC
the	DT
date	NN
tends	VBZ
to	TO
be	VB
a	DT
plus	CC
,	,
not	RB
a	DT
minus	CC
,	,
for	IN
stocks	NNS
,	,
according	VBG
to	TO
Yale	NNP
Hirsch	NNP
,	,
a	DT
collector	NN
of	IN
stock	NN
market	NN
lore	VB
.	.

Another	DT
study	NN
found	VBD
that	IN
the	DT
82	CD
Fridays	NNS
the	DT
13th	JJ
in	IN
the	DT
1940-1987	NN
period	NN
had	VBD
higher	JJR
than	IN
average	NN
returns	NNS
--	:
higher	JJR
even	RB
than	IN
Fridays	NNP
in	IN
general	NN
,	,
which	WDT
tend	VB
to	TO
be	VB
strong	JJ
days	NNS
for	IN
stock	NN
prices	NNS
.	.

On	IN
the	DT
only	JJ
other	JJ
Friday	NNP
the	DT
13th	JJ
this	DT
year	NN
,	,
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
rose	VBD
about	IN
four	CD
points	NNS
.	.

Professor	NNP
Kolb	VB
says	VBZ
the	DT
original	JJ
study	NN
,	,
titled	VBN
Friday	NNP
the	DT
13th	JJ
,	,
Part	NN
VII	NNP
,	,
was	VBD
published	VBN
tongue-in-cheek	JJ
.	.

In	IN
a	DT
similar	JJ
vein	NN
,	,
he	PRP
adds	VBZ
that	IN
the	DT
anniversary	NN
of	IN
the	DT
1987	CD
crash	VB
and	CC
Saturday	NNP
's	POS
full	JJ
moon	NN
could	MD
have	VB
played	VBD
a	DT
part	NN
,	,
too	RB
,	,
in	IN
Friday	NNP
's	POS
market	NN
activity	NN
.	.

reminiscent	JJ
of	IN
those	DT
during	IN
the	DT
1987	CD
crash	VB
--	:
that	IN
as	RB
stock	NN
prices	NNS
plummeted	VBD
and	CC
trading	NN
activity	NN
escalated	VB
,	,
some	DT
phone	NN
calls	VBZ
to	TO
market	NN
makers	NNS
in	IN
over-the-counter	NN
stocks	NNS
went	VBD
unanswered	JJ
.	.

``	``
We	PRP
could	MD
n't	RB
get	VB
dealers	NNS
to	TO
answer	NN
their	PRP$
phones	NNS
,	,
''	''
said	VBD
Robert	NNP
King	NNP
,	,
senior	JJ
vice	NN
president	NN
of	IN
OTC	NNP
trading	NN
at	IN
Robinson-Humphrey	VB
Co.	NNP
in	IN
Atlanta	NNP
.	.

``	``
It	NNP
was	VBD
{	(
like	IN
}	)
the	DT
Friday	NNP
before	IN
Black	NNP
Monday	NNP
''	''
two	CD
years	NNS
ago	IN
.	.

Whether	IN
unanswered	JJ
phone	NN
calls	VBZ
had	VBD
any	DT
effect	NN
or	CC
not	RB
,	,
Nasdaq	NNP
stocks	NNS
sank	VBD
far	JJ
less	RBR
than	IN
those	DT
on	IN
the	DT
New	NNP
York	NNP
and	CC
American	JJ
exchanges	NNS
.	.

Nonetheless	RB
,	,
the	DT
Nasdaq	NNP
Composite	NNP
Index	NNP
suffered	VBD
its	PRP$
biggest	JJS
point	VBP
decline	NN
of	IN
the	DT
year	NN
and	CC
its	PRP$
sixth	JJ
worst	JJS
ever	RB
,	,
diving	NN
14.90	VB
,	,
or	CC
3	CD
%	NN
,	,
to	TO
467.29	VB
.	.

Ten	CD
points	NNS
of	IN
the	DT
drop	NN
occurred	VBD
during	IN
the	DT
last	JJ
45	CD
minutes	NNS
of	IN
trading	NN
.	.

By	IN
comparison	NN
,	,
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
Composite	NNP
tumbled	VBD
5.8	CD
%	NN
Friday	NNP
and	CC
the	DT
American	JJ
Stock	NNP
Exchange	NNP
Composite	NNP
fell	VBD
4	CD
%	NN
.	.

On	IN
Oct.	NNP
16	CD
,	,
1987	CD
,	,
the	DT
Nasdaq	NNP
Composite	NNP
fell	VBD
16.18	NNP
points	NNS
,	,
or	CC
3.8	CD
%	NN
,	,
followed	VBN
by	IN
its	PRP$
devastating	VBG
46.12-point	VB
,	,
or	CC
11	CD
%	NN
slide	NN
,	,
three	CD
days	NNS
later	RB
.	.

Nasdaq	NNP
volume	NN
Friday	NNP
totaled	VBD
167.7	VB
million	CD
shares	NNS
,	,
which	WDT
was	VBD
only	RB
the	DT
fifth	JJ
busiest	JJS
day	NN
so	RB
far	JJ
this	DT
year	NN
.	.

The	DT
single-day	NN
record	NN
of	IN
288	CD
million	CD
shares	NNS
was	VBD
set	VBN
on	IN
Oct.	NNP
21	CD
,	,

``	``
There	EX
was	VBD
n't	RB
a	DT
lot	NN
of	IN
volume	NN
because	IN
it	PRP
was	VBD
just	RB
impossible	JJ
to	TO
get	VB
stock	NN
moved	VBD
,	,
''	''
said	VBD
E.E.	NNP
``	``
Buzzy	NNP
''	''
Geduld	NNP
,	,
president	NN
of	IN
Herzog	NNP
,	,
Heine	NNP
,	,
Geduld	NNP
,	,
a	DT
New	NNP
York	NNP
company	NN
that	IN
makes	VBZ
markets	NNS
in	IN
thousands	NNS
of	IN
OTC	NNP
issues	NNS
.	.

Most	RBS
of	IN
the	DT
complaints	NNS
about	IN
unanswered	JJ
phone	NN
calls	VBZ
came	VBD
from	IN
regional	JJ
brokers	NNS
rather	RB
than	IN
individual	JJ
investors	NNS
.	.

Mr.	NNP
King	NNP
of	IN
Robinson-Humphrey	VB
and	CC
others	NNS
were	VBD
quick	JJ
to	TO
add	VB
that	IN
they	PRP
believe	VBP
the	DT
problem	NN
stemmed	VBD
more	RBR
from	IN
traders	NNS
'	POS
inability	NN
to	TO
handle	VB
the	DT
volume	NN
of	IN
calls	VBZ
,	,
rather	RB
than	IN
a	DT
deliberate	JJ
attempt	NN
to	TO
avoid	VB
making	VBG
trades	NNS
.	.

The	DT
subject	JJ
is	VBZ
a	DT
sore	JJ
one	CD
for	IN
Nasdaq	NNP
and	CC
its	PRP$
market-making	NN
companies	NNS
,	,
which	WDT
were	VBD
widely	RB
criticized	VBN
two	CD
years	NNS
ago	IN
following	VBG
complaints	NNS
from	IN
investors	NNS
who	WP
could	MD
n't	RB
reach	VBP
their	PRP$
brokers	NNS
or	CC
trade	NN
in	IN
the	DT
chaos	NN
of	IN
the	DT
crash	VB
.	.

Peter	NNP
DaPuzzo	NNP
,	,
head	VB
of	IN
retail	JJ
equity	NN
trading	NN
at	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
,	,
declared	VBD
:	:
``	``
It	NNP
was	VBD
the	DT
last	JJ
hour	NN
of	IN
trading	NN
on	IN
a	DT
Friday	NNP
.	.

There	EX
were	VBD
too	RB
many	JJ
phones	NNS
ringing	VBG
and	CC
too	RB
many	JJ
things	NNS
happening	VBG
to	TO
expect	VBP
market	NN
makers	NNS
to	TO
be	VB
as	RB
efficient	JJ
as	RB
robots	NNS
.	.

It	NNP
was	VBD
n't	RB
intentional	JJ
,	,
we	PRP
were	VBD
all	DT
busy	JJ
.	.
''	''

James	NNP
Tarantino	VB
,	,
head	VB
of	IN
OTC	NNP
trading	NN
at	IN
Hambrecht	NNP
&	CC
Quist	NNP
in	IN
San	NNP
Francisco	NNP
,	,
said	VBD
,	,
``	``
It	NNP
was	VBD
just	RB
like	IN
two	CD
years	NNS
ago	IN
.	.

Everybody	NN
was	VBD
trying	VBG
to	TO
do	VB
the	DT
same	JJ
thing	NN
at	IN
the	DT
same	JJ
time	NN
.	.
''	''

Jeremiah	NNP
Mullins	NNP
,	,
the	DT
OTC	NNP
trading	NN
chief	NN
at	IN
Dean	NNP
Witter	NNP
Reynolds	NNP
in	IN
New	NNP
York	NNP
,	,
said	VBD
proudly	RB
that	IN
his	PRP$
company	NN
executed	VBN
every	DT
order	NN
it	PRP
received	VBD
by	IN
the	DT
close	VB
of	IN
trading	NN
.	.

But	CC
,	,
he	PRP
added	VBD
,	,
``	``
you	PRP
can	MD
only	RB
take	VB
one	CD
call	VB
at	IN
a	DT
time	NN
.	.
''	''

Market	NNP
makers	NNS
keep	VB
supplies	NNS
of	IN
stock	NN
on	IN
hand	NN
to	TO
maintain	VB
orderly	JJ
trading	NN
when	WRB
imbalances	NNS
occur	VB
.	.

On	IN
days	NNS
like	IN
Friday	NNP
,	,
that	WDT
means	VBZ
they	PRP
must	MD
buy	VB
shares	NNS
from	IN
sellers	NNS
when	WRB
no	DT
one	CD
else	RB
is	VBZ
willing	JJ
to	TO
.	.

When	WRB
selling	VBG
is	VBZ
so	RB
frenzied	JJ
,	,
prices	NNS
fall	VB
steeply	RB
and	CC
fast	RB
.	.

Two	CD
years	NNS
ago	IN
,	,
faced	VBN
with	IN
the	DT
possibility	NN
of	IN
heavy	JJ
losses	NNS
on	IN
the	DT
stocks	NNS
in	IN
their	PRP$
inventories	NNS
,	,
market	NN
makers	NNS
themselves	PRP
began	VBD
dumping	VBG
shares	NNS
,	,
exacerbating	VBG
the	DT
slide	NN
in	IN
OTC	NNP
stock	NN
prices	NNS
.	.

On	IN
Friday	NNP
,	,
some	DT
market	NN
makers	NNS
were	VBD
selling	VBG
again	RB
,	,
traders	NNS
said	VBD
.	.

But	CC
,	,
with	IN
profits	NNS
sagging	VBG
on	IN
Wall	NNP
Street	NNP
since	IN
the	DT
crash	VB
,	,
companies	NNS
have	VB
kept	VBN
smaller	JJR
share	NN
stockpiles	NNS
on	IN
hand	NN
.	.

Mr.	NNP
Tarantino	VB
of	IN
Hambrecht	NNP
&	CC
Quist	NNP
said	VBD
some	DT
prices	NNS
fell	VBD
without	IN
trades	NNS
taking	VBG
place	NN
,	,
as	RB
market	NN
makers	NNS
kept	VBN
dropping	VBG
the	DT
prices	NNS
at	IN
which	WDT
they	PRP
would	MD
buy	VB
shares	NNS
.	.

``	``
Everyone	NN
was	VBD
hitting	VBG
everyone	NN
else	RB
's	POS
bid	NN
,	,
''	''
he	PRP
said	VBD
.	.

So	IN
,	,
while	IN
OTC	NNP
companies	NNS
incurred	VBN
losses	NNS
on	IN
Friday	NNP
,	,
trading	NN
officials	NNS
said	VBD
the	DT
damage	NN
was	VBD
n't	RB
as	RB
bad	JJ
as	RB
it	PRP
was	VBD
in	IN
1987	CD
.	.

``	``
Two	CD
years	NNS
ago	IN
we	PRP
were	VBD
carrying	VBG
huge	JJ
inventories	NNS
and	CC
that	IN
was	VBD
the	DT
big	JJ
culprit	NN
.	.

I	PRP
do	VB
n't	RB
know	VB
of	IN
anyone	NN
carrying	VBG
big	JJ
inventories	NNS
now	RB
,	,
''	''
said	VBD
Mr.	NNP
King	NNP
of	IN
Robinson-Humphrey	VB
.	.

Tony	NNP
Cecin	VB
,	,
head	VB
of	IN
equity	NN
trading	NN
at	IN
Piper	NNP
,	,
Jaffray	NNP
&	CC
Hopwood	NNP
in	IN
Minneapolis	NNP
,	,
said	VBD
that	IN
Piper	NNP
Jaffray	NNP
actually	RB
made	VBN
money	NN
on	IN
Friday	NNP
.	.

It	NNP
helped	VBD
that	IN
his	PRP$
inventory	NN
is	VBZ
a	DT
third	JJ
smaller	JJR
now	RB
than	IN
it	PRP
was	VBD
two	CD
years	NNS
ago	IN
,	,
he	PRP
said	VBD
.	.

Joseph	NNP
Hardiman	NNP
,	,
president	NN
of	IN
the	DT
National	NNP
Association	NNP
of	IN
Securities	NNPS
Dealers	NNS
,	,
which	WDT
oversees	VBZ
the	DT
Nasdaq	NNP
computerized	VBN
trading	NN
system	NN
,	,
said	VBD
that	IN
despite	IN
the	DT
rush	NN
of	IN
selling	VBG
,	,
he	PRP
never	RB
considered	VBN
the	DT
situation	NN
an	DT
``	``
emergency	NN
.	.
''	''

``	``
The	DT
pace	NN
of	IN
trading	NN
was	VBD
orderly	JJ
,	,
''	''
he	PRP
said	VBD
.	.

Nasdaq	NNP
's	POS
Small	JJ
Order	NN
Execution	VB
System	NNP
``	``
worked	VBD
beautifully	VB
,	,
''	''
as	RB
did	VBD
the	DT
automated	JJ
system	NN
for	IN
larger	JJR
trades	NNS
,	,
according	VBG
to	TO
Mr.	NNP
Hardiman	NNP
.	.

Nevertheless	RB
,	,
the	DT
shock	NN
of	IN
another	DT
steep	JJ
plunge	NN
in	IN
stock	NN
prices	NNS
undoubtedly	RB
will	MD
shake	VB
many	JJ
investors	NNS
'	POS
confidence	NN
.	.

In	IN
the	DT
past	IN
,	,
the	DT
OTC	NNP
market	NN
thrived	VB
on	IN
a	DT
firm	JJ
base	NN
of	IN
small-investor	VB
participation	NN
.	.

Because	IN
Nasdaq	NNP
's	POS
trading	NN
volume	NN
has	VBZ
n't	RB
returned	VBN
to	TO
pre-crash	JJ
levels	NNS
,	,
traders	NNS
and	CC
OTC	NNP
market	NN
officials	NNS
hope	VBP
the	DT
damage	NN
wo	MD
n't	RB
be	VB
permanent	JJ
.	.

But	CC
they	PRP
are	VBP
worried	VBN
.	.

``	``
We	PRP
were	VBD
just	RB
starting	VBG
to	TO
get	VB
the	DT
public	JJ
's	POS
confidence	NN
back	RB
,	,
''	''
lamented	VBD
Mr.	NNP
Mullins	NNP
of	IN
Dean	NNP
Witter	NNP
.	.

More	JJR
troubling	JJ
is	VBZ
the	DT
prospect	NN
that	IN
the	DT
overall	JJ
collapse	NN
in	IN
stock	NN
prices	NNS
could	MD
permanently	RB
erode	VB
the	DT
base	NN
of	IN
small-investor	VB
support	VB
the	DT
OTC	NNP
market	NN
was	VBD
struggling	VBG
to	TO
rebuild	VB
in	IN
the	DT
wake	NN
of	IN
the	DT
October	NNP
1987	CD
crash	VB
.	.

Mr.	NNP
Cecin	VB
of	IN
Piper	NNP
Jaffray	NNP
says	VBZ
some	DT
action	NN
from	IN
government	NN
policy	NN
makers	NNS
would	MD
allay	VB
investor	NN
fears	NNS
.	.

It	NNP
wo	MD
n't	RB
take	VB
much	JJ
more	RBR
to	TO
``	``
scare	NN
the	DT
hell	NN
out	IN
of	IN
retail	JJ
investors	NNS
,	,
''	''
he	PRP
says	VBZ
.	.

The	DT
sellers	NNS
on	IN
Friday	NNP
came	VBD
from	IN
all	DT
corners	NNS
of	IN
the	DT
OTC	NNP
market	NN
--	:
big	JJ
and	CC
small	JJ
institutional	JJ
investors	NNS
,	,
as	RB
well	RB
as	RB
individual	JJ
investors	NNS
and	CC
market	NN
makers	NNS
.	.

But	CC
grateful	JJ
traders	NNS
said	VBD
the	DT
sell	VB
orders	NNS
generally	RB
ranged	VBD
from	IN
20,000	CD
shares	NNS
to	TO
50,000	CD
shares	NNS
,	,
compared	VBN
with	IN
blocks	NNS
of	IN
500,000	CD
shares	NNS
or	CC
more	RBR
two	CD
years	NNS
ago	IN
.	.

Shearson	NNP
's	POS
Mr.	NNP
DaPuzzo	NNP
said	VBD
retail	JJ
investors	NNS
nervously	RB
sold	VBN
stock	NN
Friday	NNP
and	CC
never	RB
returned	VBD
to	TO
bargain-hunt	VB
.	.

Institutional	JJ
investors	NNS
,	,
which	WDT
had	VBD
been	VBN
selling	VBG
stock	NN
throughout	IN
last	JJ
week	NN
to	TO
lock	NN
in	IN
handsome	JJ
gains	NNS
made	VBN
through	IN
the	DT
third	JJ
quarter	NN
,	,
were	VBD
calmer	JJR
.	.

``	``
We	PRP
had	VBD
a	DT
good	JJ
amount	VBP
of	IN
selling	VBG
from	IN
institutions	NNS
,	,
but	CC
not	RB
as	RB
much	JJ
panic	NN
,	,
''	''
Mr.	NNP
DaPuzzo	NNP
said	VBD
.	.

``	``
If	IN
they	PRP
could	MD
n't	RB
sell	VB
,	,
some	DT
of	IN
them	PRP
put	VBN
the	DT
shares	NNS
back	RB
on	IN
the	DT
shelf	NN
.	.
''	''

In	IN
addition	NN
,	,
he	PRP
said	VBD
,	,
some	DT
bigger	JJR
institutional	JJ
investors	NNS
placed	VBN
bids	NNS
to	TO
buy	VB
some	DT
OTC	NNP
stocks	NNS
whose	WP$
prices	NNS
were	VBD
beaten	VBN
down	IN
.	.

In	IN
addition	NN
,	,
Mr.	NNP
DaPuzzo	NNP
said	VBD
computer-guided	JJ
program	NN
selling	VBG
of	IN
OTC	NNP
stocks	NNS
in	IN
the	DT
Russell	NNP
Index	NNP
of	IN
2000	CD
small	JJ
stocks	NNS
and	CC
the	DT
Standard	NNP
&	CC
Poor	NNP
's	POS
500-stock	JJ
Index	NNP
sent	VBD
occasional	JJ
``	``
waves	NNS
``	``
through	IN
the	DT
market	NN
.	.

Nasdaq	NNP
's	POS
biggest	JJS
stocks	NNS
were	VBD
hammered	VBN
.	.

The	DT
Nasdaq	NNP
100	CD
Index	NNP
of	IN
the	DT
largest	JJS
nonfinancial	JJ
issues	NNS
,	,
including	VBG
the	DT
big	JJ
OTC	NNP
technology	NN
issues	NNS
,	,
tumbled	VBD
4.2	CD
%	NN
,	,
or	CC
19.76	CD
,	,
to	TO
449.33	VB
.	.

The	DT
Nasdaq	NNP
Financial	NNP
Index	NNP
of	IN
giant	NN
insurance	NN
and	CC
banking	VBG
stocks	NNS
dropped	VBD
2	LS
%	NN
,	,
or	CC
9.31	VB
,	,
to	TO
462.98	VB
.	.

The	DT
OTC	NNP
market	NN
has	VBZ
only	RB
a	DT
handful	NN
of	IN
takeover-related	JJ
stocks	NNS
.	.

But	CC
they	PRP
fell	VBD
sharply	RB
.	.

McCaw	NNP
Cellular	NNP
Communications	NNP
,	,
for	IN
instance	NN
,	,
has	VBZ
offered	VBD
to	TO
buy	VB
LIN	NNP
Broadcasting	NNP
as	RB
well	RB
as	RB
Metromedia	NNP
's	POS
New	NNP
York	NNP
City	NNP
cellular	JJ
telephone	NN
interests	NNS
,	,
and	CC
in	IN
a	DT
separate	VB
transaction	NN
,	,
sell	VB
certain	JJ
McCaw	NNP
properties	NNS
to	TO
Contel	NNP
Cellular	NNP
.	.

McCaw	NNP
lost	VBN
8	CD
%	NN
,	,
or	CC
3	CD
1\/2	CD
,	,
to	TO
40	CD
.	.

LIN	NNP
Broadcasting	NNP
,	,
dropped	VBD
5	CD
1\/2	CD
,	,
or	CC
5	CD
%	NN
,	,
to	TO
107	CD
1\/2	CD
.	.

The	DT
turnover	NN
in	IN
both	DT
issues	NNS
was	VBD
roughly	RB
normal	JJ
.	.

On	IN
a	DT
day	NN
when	WRB
negative	JJ
takeover-related	JJ
news	NN
did	VBD
n't	RB
sit	VBP
well	RB
with	IN
investors	NNS
,	,
Commercial	NNP
Intertech	VB
,	,
a	DT
maker	NN
of	IN
engineered	VBN
metal	NN
parts	NNS
,	,
said	VBD
Haas	NNP
&	CC
Partners	NNPS
advised	VBN
it	PRP
that	IN
it	PRP
does	VBZ
n't	RB
plan	VB
to	TO
pursue	VB
its	PRP$
previously	RB
reported	VBN
$	$
27.50-a-share	VB
bid	NN
to	TO
buy	VB
the	DT
company	NN
.	.

Commercial	NNP
Intertech	VB
plummeted	VBD
6	CD
to	TO
26	CD
.	.

The	DT
issues	NNS
of	IN
companies	NNS
with	IN
ties	NNS
to	TO
the	DT
junk	NN
bond	NN
market	NN
also	RB
tumbled	VBD
Friday	NNP
.	.

On	IN
the	DT
OTC	NNP
market	NN
,	,
First	NNP
Executive	NNP
,	,
a	DT
big	JJ
buyer	NN
of	IN
the	DT
high-risk	JJ
,	,
high-yield	JJ
issues	NNS
,	,
slid	VBD
2	LS
to	TO
12	CD
1\/4	CD
.	.

Among	IN
other	JJ
OTC	NNP
issues	NNS
,	,
Intel	NNP
,	,
dropped	VBD
2	CD
1\/8	CD
to	TO
33	CD
7\/8	CD
;	:
Laidlaw	NNP
Transportation	NNP
lost	VBD
1	CD
1\/8	CD
to	TO
19	CD
1\/2	CD
;	:
the	DT
American	JJ
depositary	NN
receipts	NNS
of	IN
Jaguar	NNP
were	VBD
off	RP
1\/4	CD
to	TO
10	CD
1\/4	CD
;	:
MCI	NNP
Communications	NNP
slipped	VBD
2	LS
1\/4	CD
to	TO
43	CD
1\/2	CD
;	:
Apple	NNP
Computer	NNP
fell	VBD
3	CD
to	TO
45	CD
3\/4	CD
and	CC
Nike	NNP
dropped	VBD
2	LS
1\/4	CD
to	TO
66	CD
3\/4	CD
.	.

Friday	NNP
,	,
October	NNP
13	CD
,	,
1989	CD

The	DT
key	JJ
U.S.	NNP
and	CC
foreign	JJ
annual	JJ
interest	NN
rates	NNS
below	IN
are	VBP
a	DT
guide	NN
to	TO
general	NN
levels	NNS
but	CC
do	VB
n't	RB
always	RB
represent	VB
actual	JJ
transactions	NNS
.	.

PRIME	JJ
RATE	NN
:	:

10	CD
1\/2	CD
%	NN
.	.

The	DT
base	NN
rate	NN
on	IN
corporate	JJ
loans	NNS
at	IN
large	JJ
U.S.	NNP
money	NN
center	NN
commercial	JJ
banks	NNS
.	.

FEDERAL	JJ
FUNDS	NNS
:	:

8	CD
13\/16	CD
%	NN
high	JJ
,	,
8	CD
1\/2	CD
%	NN
low	JJ
,	,
8	CD
5\/8	CD
%	NN
near	IN
closing	VBG
bid	NN
,	,
8	CD
3\/4	CD
%	NN
offered	VBD
.	.

Reserves	NNS
traded	VBN
among	IN
commercial	JJ
banks	NNS
for	IN
overnight	JJ
use	VBP
in	IN
amounts	NNS
of	IN
$	$
1	CD
million	CD
or	CC
more	RBR
.	.

Source	NN
:	:
Fulton	NNP
Prebon	NNP
(	(
U.S.A	NNP
.	.
)	)
Inc	NNP
.	.

DISCOUNT	NN
RATE	NN
:	:

7	CD
%	NN
.	.

The	DT
charge	NN
on	IN
loans	NNS
to	TO
depository	NN
institutions	NNS
by	IN
the	DT
New	NNP
York	NNP
Federal	NNP
Reserve	NNP
Bank	NNP
.	.

CALL	JJ
MONEY	NN
:	:

9	CD
3\/4	CD
%	NN
to	TO
10	CD
%	NN
.	.

The	DT
charge	NN
on	IN
loans	NNS
to	TO
brokers	NNS
on	IN
stock	NN
exchange	NN
collateral	NN
.	.

COMMERCIAL	JJ
PAPER	NN
placed	VBN
directly	RB
by	IN
General	NNP
Motors	NNPS
Acceptance	NNP
Corp.	NNP
:	:

8.60	CD
%	NN
30	CD
to	TO
44	CD
days	NNS
;	:
8.55	CD
%	NN
45	CD
to	TO
59	CD
days	NNS
;	:
8.375	CD
%	NN
60	CD
to	TO
79	CD
days	NNS
;	:
8.50	CD
%	NN
80	CD
to	TO
89	CD
days	NNS
;	:
8.25	CD
%	NN
90	CD
to	TO
119	CD
days	NNS
;	:
8.125	CD
%	NN
120	CD
to	TO
149	CD
days	NNS
;	:
8	CD
%	NN
150	CD
to	TO
179	CD
days	NNS
;	:
7.625	VB
%	NN
180	CD
to	TO
270	CD
days	NNS
.	.

COMMERCIAL	JJ
PAPER	NN
:	:

High-grade	JJ
unsecured	JJ
notes	NNS
sold	VBN
through	IN
dealers	NNS
by	IN
major	JJ
corporations	NNS
in	IN
multiples	NNS
of	IN
$	$
1,000	CD
:	:

8.65	CD
%	NN
30	CD
days	NNS
;	:
8.55	CD
%	NN
60	CD
days	NNS
;	:
8.55	CD
%	NN
90	CD
days	NNS
.	.

CERTIFICATES	NNS
OF	IN
DEPOSIT	NN
:	:

8.15	CD
%	NN
one	CD
month	NN
;	:
8.15	CD
%	NN
two	CD
months	NNS
;	:
8.13	CD
%	NN
three	CD
months	NNS
;	:
8.11	VB
%	NN
six	CD
months	NNS
;	:
8.08	CD
%	NN
one	CD
year	NN
.	.

Average	NNP
of	IN
top	NN
rates	NNS
paid	VBN
by	IN
major	JJ
New	NNP
York	NNP
banks	NNS
on	IN
primary	JJ
new	JJ
issues	NNS
of	IN
negotiable	JJ
C.D.s	NNPS
,	,
usually	RB
on	IN
amounts	NNS
of	IN
$	$
1	CD
million	CD
and	CC
more	RBR
.	.

The	DT
minimum	JJ
unit	NN
is	VBZ
$	$
100,000	CD
.	.

Typical	JJ
rates	NNS
in	IN
the	DT
secondary	JJ
market	NN
:	:

8.65	CD
%	NN
one	CD
month	NN
;	:
8.65	CD
%	NN
three	CD
months	NNS
;	:
8.55	CD
%	NN
six	CD
months	NNS
.	.

BANKERS	NNS
ACCEPTANCES	NNS
:	:

8.52	CD
%	NN
30	CD
days	NNS
;	:
8.37	VB
%	NN
60	CD
days	NNS
;	:
8.15	CD
%	NN
90	CD
days	NNS
;	:
7.98	CD
%	NN
120	CD
days	NNS
;	:
7.92	CD
%	NN
150	CD
days	NNS
;	:
7.80	CD
%	NN
180	CD
days	NNS
.	.

Negotiable	JJ
,	,
bank-backed	JJ
business	NN
credit	NN
instruments	NNS
typically	RB
financing	VBG
an	DT
import	NN
order	NN
.	.

LONDON	NNP
LATE	JJ
EURODOLLARS	NNS
:	:

8	CD
13\/16	CD
%	NN
to	TO
8	CD
11\/16	CD
%	NN
one	CD
month	NN
;	:
8	CD
13\/16	CD
%	NN
to	TO
8	CD
11\/16	CD
%	NN
two	CD
months	NNS
;	:
8	CD
13\/16	CD
%	NN
to	TO
8	CD
11\/16	CD
%	NN
three	CD
months	NNS
;	:
8	CD
3\/4	CD
%	NN
to	TO
8	CD
5\/8	CD
%	NN
four	CD
months	NNS
;	:
8	CD
11\/16	CD
%	NN
to	TO
8	CD
9\/16	CD
%	NN
five	CD
months	NNS
;	:
8	CD
5\/8	CD
%	NN
to	TO
8	CD
1\/2	CD
%	NN
six	CD
months	NNS
.	.

LONDON	NNP
INTERBANK	NNP
OFFERED	NNP
RATES	NNPS
(	(
LIBOR	NNP
)	)
:	:

8	CD
3\/4	CD
%	NN
one	CD
month	NN
;	:
8	CD
3\/4	CD
%	NN
three	CD
months	NNS
;	:
8	CD
9\/16	CD
%	NN
six	CD
months	NNS
;	:
8	CD
9\/16	CD
%	NN
one	CD
year	NN
.	.

The	DT
average	JJ
of	IN
interbank	NN
offered	VBD
rates	NNS
for	IN
dollar	NN
deposits	NNS
in	IN
the	DT
London	NNP
market	NN
based	VBN
on	IN
quotations	NNS
at	IN
five	CD
major	JJ
banks	NNS
.	.

FOREIGN	JJ
PRIME	JJ
RATES	NNPS
:	:

Canada	NNP
13.50	CD
%	NN
;	:
Germany	NNP
8.50	CD
%	NN
;	:
Japan	NNP
4.875	CD
%	NN
;	:
Switzerland	NNP
8.50	CD
%	NN
;	:
Britain	NNP
15	CD
%	NN
.	.

These	DT
rate	NN
indications	NNS
are	VBP
n't	RB
directly	RB
comparable	JJ
;	:
lending	VBG
practices	NNS
vary	VBP
widely	RB
by	IN
location	NN
.	.

TREASURY	NN
BILLS	NNS
:	:

Results	NNS
of	IN
the	DT
Tuesday	NNP
,	,
October	NNP
10	CD
,	,
1989	CD
,	,
auction	NN
of	IN
short-term	JJ
U.S.	NNP
government	NN
bills	NNS
,	,
sold	VBN
at	IN
a	DT
discount	NN
from	IN
face	NN
value	NN
in	IN
units	NNS
of	IN
$	$
10,000	CD
to	TO
$	$
1	CD
million	CD
:	:

7.63	CD
%	NN
13	CD
weeks	NNS
;	:
7.60	CD
%	NN
26	CD
weeks	NNS
.	.

FEDERAL	JJ
HOME	NNP
LOAN	NNP
MORTGAGE	NNP
CORP	NNP
.	.
(	(
Freddie	NNP
Mac	NNP
)	)
:	:

Posted	VBN
yields	NNS
on	IN
30-year	JJ
mortgage	NN
commitments	NNS
for	IN
delivery	NN
within	IN
30	CD
days	NNS
.	.

9.91	IN
%	NN
,	,
standard	NN
conventional	JJ
fixedrate	VB
mortgages	NNS
;	:
7.875	CD
%	NN
,	,
2	LS
%	NN
rate	NN
capped	VBD
one-year	JJ
adjustable	JJ
rate	NN
mortgages	NNS
.	.

Source	NN
:	:
Telerate	NNP
Systems	NNPS
Inc	NNP
.	.

FEDERAL	JJ
NATIONAL	NNP
MORTGAGE	NNP
ASSOCIATION	NNP
(	(
Fannie	NNP
Mae	NNP
)	)
:	:

Posted	VBN
yields	NNS
on	IN
30	CD
year	NN
mortgage	NN
commitments	NNS
for	IN
delivery	NN
within	IN
30	CD
days	NNS
(	(
priced	VBN
at	IN
par	JJ
)	)

9.86	CD
%	NN
,	,
standard	NN
conventional	JJ
fixed-rate	JJ
mortgages	NNS
;	:
8.85	CD
%	NN
,	,
6\/2	CD
rate	NN
capped	VBD
one-year	JJ
adjustable	JJ
rate	NN
mortgages	NNS
.	.

Source	NN
:	:
Telerate	NNP
Systems	NNPS
Inc	NNP
.	.

MERRILL	NNP
LYNCH	NNP
READY	NNP
ASSETS	NNPS
TRUST	NNP
:	:

8.33	CD
%	NN
.	.

Annualized	VBN
average	NN
rate	NN
of	IN
return	NN
after	IN
expenses	NNS
for	IN
the	DT
past	IN
30	CD
days	NNS
;	:
not	RB
a	DT
forecast	VBP
of	IN
future	NN
returns	NNS
.	.

Pension	NNP
funds	NNS
,	,
insurers	NNS
and	CC
other	JJ
behemoths	NNS
of	IN
the	DT
investing	VBG
world	NN
said	VBD
they	PRP
began	VBD
scooping	VB
up	RP
stocks	NNS
during	IN
Friday	NNP
's	POS
market	NN
rout	NN
.	.

And	CC
they	PRP
plan	VB
to	TO
buy	VB
more	RBR
today	NN
.	.

Rightly	IN
or	CC
wrongly	RB
,	,
many	JJ
giant	NN
institutional	JJ
investors	NNS
appear	VB
to	TO
be	VB
fighting	VBG
the	DT
latest	JJS
war	NN
by	IN
applying	VBG
the	DT
lesson	NN
they	PRP
learned	VBN
in	IN
the	DT
October	NNP
1987	CD
crash	VB
:	:
Buying	VBG
at	IN
the	DT
bottom	NN
pays	VBZ
off	RP
.	.

To	TO
be	VB
sure	JJ
,	,
big	JJ
investors	NNS
might	MD
put	VBN
away	RB
their	PRP$
checkbooks	NNS
in	IN
a	DT
hurry	NN
if	IN
stocks	NNS
open	JJ
sharply	RB
lower	JJR
today	NN
.	.

They	PRP
could	MD
still	RB
panic	NN
and	CC
bail	VB
out	IN
of	IN
the	DT
market	NN
.	.

But	CC
their	PRP$
1987	CD
performance	NN
indicates	VBZ
that	IN
they	PRP
wo	MD
n't	RB
abandon	VB
stocks	NNS
unless	IN
conditions	NNS
get	VB
far	JJ
worse	JJR
.	.

``	``
Last	JJ
time	NN
,	,
we	PRP
got	VBD
rewarded	VBN
for	IN
going	VBG
out	IN
and	CC
buying	VBG
stocks	NNS
when	WRB
the	DT
panic	NN
was	VBD
the	DT
worst	JJS
,	,
''	''
said	VBD
John	NNP
W.	NNP
Rogers	NNP
,	,
president	NN
of	IN
Chicago-based	JJ
Ariel	NNP
Capital	NNP
Management	NNP
Inc.	NNP
,	,
which	WDT
manages	VBZ
$	$
1.1	CD
billion	CD
of	IN
stocks	NNS
.	.

Mr.	NNP
Rogers	NNP
spent	VBN
half	DT
his	PRP$
cash	NN
on	IN
hand	NN
Friday	NNP
for	IN
``	``
our	PRP$
favorite	JJ
stocks	NNS
that	IN
have	VB
fallen	VBN
apart	RB
.	.
''	''

He	PRP
expects	VBZ
to	TO
invest	VB
the	DT
rest	NN
if	IN
the	DT
market	NN
weakens	VBZ
further	JJ
.	.

Denver-based	JJ
portfolio	NN
manager	NN
James	NNP
Craig	NNP
was	VBD
n't	RB
daunted	VB
when	WRB
Friday	NNP
's	POS
rout	NN
shaved	VBD
$	$
40	CD
million	CD
from	IN
the	DT
value	NN
of	IN
the	DT
$	$
752	VB
million	CD
Janus	NNP
Fund	NNP
he	PRP
oversees	VBZ
.	.

``	``
I	PRP
waited	VBD
to	TO
make	VBP
sure	JJ
all	DT
the	DT
program	NN
trades	NNS
had	VBD
kicked	VBD
through	IN
,	,
''	''
he	PRP
said	VBD
.	.

Then	RB
he	PRP
jumped	VBD
into	IN
the	DT
market	NN
:	:

``	``
I	PRP
spent	VBN
$	$
30	CD
million	CD
in	IN
the	DT
last	JJ
half-hour	NN
.	.
''	''

Other	JJ
money	NN
managers	NNS
also	RB
opened	VBN
their	PRP$
wallets	NNS
.	.

``	``
I	PRP
was	VBD
buying	VBG
at	IN
the	DT
close	VB
(	(
Friday	NNP
)	)
and	CC
I	PRP
'll	MD
be	VB
buying	VBG
again	RB
because	IN
I	PRP
know	VB
we	PRP
're	VBP
getting	VBG
good	JJ
value	NN
,	,
''	''
said	VBD
Frederick	NNP
A.	NNP
Moran	NNP
,	,
president	NN
of	IN
Moran	NNP
Asset	NNP
Management	NNP
Inc.	NNP
,	,
Greenwich	NNP
,	,
Conn	NNP
.	.

``	``
There	EX
is	VBZ
no	DT
justification	NN
on	IN
the	DT
fundamental	JJ
level	NN
for	IN
this	DT
crash	VB
.	.
''	''

Unlike	IN
mutual	JJ
funds	NNS
,	,
which	WDT
can	MD
be	VB
forced	VBN
to	TO
sell	VB
stockholdings	NNS
when	WRB
investors	NNS
rush	VBP
to	TO
withdraw	VB
money	NN
,	,
big	JJ
investors	NNS
such	JJ
as	IN
pension	NN
funds	NNS
and	CC
insurance	NN
companies	NNS
can	MD
decide	VB
to	TO
ride	VB
out	RP
market	NN
storms	NNS
without	IN
jettisoning	VBG
stock	NN
.	.

Most	RBS
often	RB
,	,
they	PRP
do	VB
just	RB
that	IN
,	,
because	IN
stocks	NNS
have	VB
proved	VBD
to	TO
be	VB
the	DT
best-performing	JJ
long-term	JJ
investment	NN
,	,
attracting	VBG
about	IN
$	$
1	CD
trillion	CD
from	IN
pension	NN
funds	NNS
alone	RB
.	.

``	``
If	IN
you	PRP
bought	VBN
after	IN
the	DT
crash	VB
,	,
you	PRP
did	VBD
very	RB
very	RB
well	RB
off	RP
the	DT
bottom	NN
,	,
''	''
said	VBD
Stephen	NNP
B.	NNP
Timbers	NNP
,	,
chief	NN
investment	NN
officer	NN
of	IN
Chicago-based	JJ
Kemper	NNP
Financial	NNP
Services	NNPS
Inc	NNP
.	.

The	DT
$	$
56	CD
billion	CD
California	NNP
Public	NNP
Employees	NNS
Retirement	NNP
System	NNP
,	,
for	IN
one	CD
,	,
added	VBD
$	$
1	CD
billion	CD
to	TO
its	PRP$
stock	NN
portfolio	NN
two	CD
years	NNS
ago	IN
.	.

``	``
The	DT
last	JJ
crash	VB
taught	VBN
institutional	JJ
investors	NNS
that	IN
they	PRP
have	VB
to	TO
be	VB
long-term	JJ
holders	NNS
,	,
and	CC
that	IN
they	PRP
ca	MD
n't	RB
react	VBP
to	TO
short-term	JJ
events	NNS
,	,
good	JJ
or	CC
bad	JJ
,	,
''	''
said	VBD
Stephen	NNP
L.	NNP
Nesbitt	NNP
,	,
senior	JJ
vice	NN
president	NN
for	IN
the	DT
pension	NN
consultants	NNS
Wilshire	NNP
Associates	NNPS
in	IN
Santa	NNP
Monica	NNP
,	,
Calif	NNP
.	.

``	``
Those	DT
that	IN
pulled	VBN
out	IN
(	(
of	IN
stocks	NNS
)	)
regretted	VBN
it	PRP
,	,
''	''
he	PRP
said	VBD
,	,
``	``
so	RB
I	PRP
doubt	VB
you	PRP
'll	MD
see	VB
any	DT
significant	JJ
changes	NNS
''	''
in	IN
institutional	JJ
portfolios	NNS
as	RB
a	DT
result	NN
of	IN
Friday	NNP
's	POS
decline	NN
.	.

Stocks	NNS
,	,
as	RB
measured	VBN
by	IN
the	DT
Standard	NNP
&	CC
Poor	NNP
's	POS
500-stock	JJ
index	NN
,	,
have	VB
been	VBN
stellar	JJ
performers	NNS
this	DT
year	NN
,	,
rising	VBG
27.97	VB
%	NN
before	IN
Friday	NNP
's	POS
plunge	NN
,	,
excluding	VBG
dividends	NNS
.	.

Even	RB
Friday	NNP
's	POS
slump	NN
leaves	VBZ
investors	NNS
ahead	RB
more	RBR
than	IN
20	CD
%	NN
,	,
well	RB
above	IN
the	DT
annual	JJ
average	NN
for	IN
stocks	NNS
over	IN
several	JJ
decades	NNS
.	.

``	``
You	PRP
could	MD
go	VB
down	IN
400	CD
points	NNS
and	CC
still	RB
have	VB
a	DT
good	JJ
year	NN
in	IN
the	DT
market	NN
,	,
''	''
said	VBD
James	NNP
D.	NNP
Awad	VB
,	,
president	NN
of	IN
New	NNP
York-based	JJ
BMI	VB
Capital	NNP
Corp	NNP
.	.

Mr.	NNP
Awad	VB
,	,
however	RB
,	,
worries	NNS
that	IN
the	DT
market	NN
``	``
could	MD
go	VB
down	IN
800	CD
or	CC
900	CD
points	NNS
in	IN
the	DT
next	JJ
few	JJ
days	NNS
.	.

It	NNP
can	MD
happen	VB
before	IN
you	PRP
can	MD
turn	VBP
around	IN
.	.
''	''

He	PRP
said	VBD
he	PRP
discerns	VB
many	JJ
parallels	VBZ
with	IN
1987	CD
,	,
including	VBG
the	DT
emphasis	NN
on	IN
takeover	NN
stocks	NNS
and	CC
the	DT
re-emergence	VB
of	IN
computerized	VBN
program	NN
trading	NN
.	.

``	``
The	DT
only	RB
thing	NN
you	PRP
do	VB
n't	RB
have	VB
,	,
''	''
he	PRP
said	VBD
,	,
``	``
is	VBZ
the	DT
`	``
portfolio	NN
insurance	NN
'	POS
phenomenon	NN
overlaid	VB
on	IN
the	DT
rest	NN
.	.
''	''

Most	RBS
institutional	JJ
investors	NNS
have	VB
abandoned	VBD
the	DT
portfolio	NN
insurance	NN
hedging	NN
technique	NN
,	,
which	WDT
is	VBZ
widely	RB
thought	VBN
to	TO
have	VB
worsened	VBN
the	DT
1987	CD
crash	VB
.	.

Not	RB
really	RB
insurance	NN
,	,
this	DT
tactic	NN
was	VBD
designed	VBN
to	TO
soften	VB
the	DT
blow	NN
of	IN
declining	VBG
stock	NN
prices	NNS
and	CC
generate	VB
an	DT
offsetting	VBG
profit	NN
by	IN
selling	VBG
waves	NNS
of	IN
S&P	NNP
futures	NNS
contracts	NNS
.	.

In	IN
its	PRP$
severest	VB
test	NN
,	,
the	DT
$	$
60	CD
billion	CD
of	IN
portfolio	NN
insurance	NN
in	IN
effect	NN
in	IN
the	DT
1987	CD
crash	VB
did	VBD
n't	RB
work	NN
,	,
as	RB
stock	NN
buyers	NNS
disappeared	VBD
and	CC
stock	NN
and	CC
futures	NNS
prices	NNS
became	VBD
disconnected	VBN
.	.

Even	RB
without	IN
portfolio	NN
insurance	NN
,	,
market	NN
conditions	NNS
were	VBD
grim	JJ
Friday	NNP
,	,
money	NN
managers	NNS
said	VBD
.	.

Neil	NNP
Weisman	NNP
,	,
whose	WP$
New	NNP
York-based	JJ
Chilmark	NNP
Capital	NNP
Partners	NNPS
had	VBD
converted	VBN
85	CD
%	NN
of	IN
its	PRP$
$	$
220	CD
million	CD
investment	NN
pool	NN
to	TO
cash	NN
in	IN
recent	JJ
months	NNS
,	,
said	VBD
he	PRP
was	VBD
besieged	VBN
by	IN
Wall	NNP
Street	NNP
firms	NNS
Friday	NNP
asking	VBG
him	PRP
to	TO
take	VB
stock	NN
off	RP
their	PRP$
hands	NNS
.	.

``	``
We	PRP
got	VBD
calls	VBZ
from	IN
big	JJ
block	NN
houses	NNS
asking	VBG
us	PRP
if	IN
we	PRP
want	VBP
to	TO
make	VBP
bids	NNS
on	IN
anything	NN
,	,
''	''
said	VBD
Mr.	NNP
Weisman	NNP
,	,
who	WP
,	,
happy	JJ
with	IN
his	PRP$
returns	NNS
on	IN
investments	NNS
chalked	VBN
up	RP
earlier	JJR
,	,
declined	VBD
the	DT
offers	VBZ
.	.

Mr.	NNP
Weisman	NNP
predicts	VBZ
stocks	NNS
will	MD
appear	VB
to	TO
stabilize	VBP
in	IN
the	DT
next	JJ
few	JJ
days	NNS
before	IN
declining	VBG
again	RB
,	,
trapping	VB
more	RBR
investors	NNS
.	.

``	``
I	PRP
think	VBP
it	PRP
will	MD
be	VB
a	DT
rigor	NN
mortis	VB
rally	NN
,	,
''	''
he	PRP
said	VBD
.	.

Meanwhile	RB
,	,
Friday	NNP
brought	VBD
a	DT
reprieve	NN
for	IN
money	NN
managers	NNS
whose	WP$
investment	NN
styles	NNS
had	VBD
put	VBN
them	PRP
at	IN
odds	NNS
with	IN
the	DT
market	NN
rally	NN
.	.

Especially	RB
gleeful	JJ
were	VBD
the	DT
short	JJ
sellers	NNS
,	,
who	WP
have	VB
been	VBN
pounded	VBN
by	IN
this	DT
year	NN
's	POS
market	NN
climb	NN
.	.

The	DT
shorts	NNS
sell	VB
borrowed	VBN
shares	NNS
,	,
hoping	VBG
to	TO
profit	NN
by	IN
replacing	VBG
them	PRP
later	RB
at	IN
a	DT
lower	JJR
price	NN
.	.

The	DT
nation	NN
's	POS
largest	JJS
short-selling	VB
operation	NN
is	VBZ
Feshbach	VB
Brothers	NNPS
,	,
Palo	NNP
Alto	NNP
,	,
Calif.	NNP
,	,
which	WDT
said	VBD
last	JJ
May	NNP
that	IN
its	PRP$
short	JJ
positions	NNS
had	VBD
shown	VBN
losses	NNS
of	IN
10	CD
%	NN
for	IN
the	DT
year	NN
up	RP
to	TO
that	IN
point	VBP
.	.

All	DT
that	IN
now	RB
has	VBZ
changed	VBN
.	.

``	``
We	PRP
're	VBP
ahead	RB
for	IN
the	DT
year	NN
because	IN
of	IN
Friday	NNP
,	,
''	''
said	VBD
the	DT
firm	JJ
's	POS
Kurt	NNP
Feshbach	VB
.	.

``	``
We	PRP
're	VBP
not	RB
making	VBG
a	DT
killing	NN
,	,
but	CC
we	PRP
had	VBD
a	DT
good	JJ
day	NN
.	.

Food	NN
and	CC
Drug	NNP
Administration	NN
spokesman	NN
Jeff	NNP
Nesbit	VB
said	VBD
the	DT
agency	NN
has	VBZ
turned	VBD
over	IN
evidence	NN
in	IN
a	DT
criminal	JJ
investigation	NN
concerning	VBG
Vitarine	VB
Pharmaceuticals	NNP
Inc.	NNP
to	TO
the	DT
U.S.	NNP
Attorney	NNP
's	POS
office	NN
in	IN
Baltimore	NNP
.	.

Neither	DT
Vitarine	NN
nor	CC
any	DT
of	IN
the	DT
Springfield	NNP
Gardens	NNP
,	,
N.Y.	NNP
,	,
company	NN
's	POS
officials	NNS
or	CC
employees	NNS
have	VB
been	VBN
charged	VBD
with	IN
any	DT
crimes	NNS
.	.

Vitarine	IN
won	VBN
approval	NN
to	TO
market	NN
a	DT
version	NN
of	IN
a	DT
blood	NN
pressure	NN
medicine	NN
but	CC
acknowledged	VBD
that	IN
it	PRP
substituted	VBN
a	DT
SmithKline	NNP
Beecham	NNP
PLC	NNP
product	NN
as	RB
its	PRP$
own	JJ
in	IN
tests	VBZ
.	.

Mr.	NNP
Nesbit	VB
also	RB
said	VBD
the	DT
FDA	NNP
has	VBZ
asked	VBD
Bolar	NNP
Pharmaceutical	NNP
Co.	NNP
to	TO
recall	VB
at	IN
the	DT
retail	JJ
level	NN
its	PRP$
urinary	VB
tract	NN
antibiotic	JJ
.	.

But	CC
so	RB
far	JJ
the	DT
company	NN
has	VBZ
n't	RB
complied	VBN
with	IN
that	IN
request	NN
,	,
the	DT
spokesman	NN
said	VBD
.	.

Bolar	NNP
,	,
the	DT
subject	NN
of	IN
a	DT
criminal	JJ
investigation	NN
by	IN
the	DT
FDA	NNP
and	CC
the	DT
Inspector	NNP
General	NNP
's	POS
office	NN
of	IN
the	DT
Health	NNP
and	CC
Human	NNP
Services	NNPS
Department	NNP
,	,
only	RB
agreed	VBD
to	TO
recall	VB
two	CD
strengths	NNS
of	IN
its	PRP$
version	NN
of	IN
Macrodantin	VB
``	``
as	RB
far	JJ
down	IN
as	RB
direct	JJ
customers	NNS
,	,
mostly	RB
wholesalers	NNS
,	,
''	''
Mr.	NNP
Nesbit	VB
said	VBD
.	.

Bolar	NNP
,	,
of	IN
Copiague	VB
,	,
N.Y.	NNP
,	,
earlier	JJR
began	VBD
a	DT
voluntary	JJ
recall	VB
of	IN
both	DT
its	PRP$
100	CD
milligram	VB
and	CC
50	CD
milligram	VB
versions	NNS
of	IN
the	DT
drug	NN
.	.

The	DT
FDA	NNP
has	VBZ
said	VBD
it	PRP
presented	VBD
evidence	NN
it	PRP
uncovered	VBN
to	TO
the	DT
company	NN
indicating	VBG
that	IN
Bolar	NNP
substituted	VBN
the	DT
brand-name	JJ
product	NN
for	IN
its	PRP$
own	JJ
to	TO
gain	NN
government	NN
approval	NN
to	TO
sell	VB
generic	JJ
versions	NNS
of	IN
Macrodantin	VB
.	.

Bolar	NNP
has	VBZ
denied	VBD
that	IN
it	PRP
switched	VBD
the	DT
brand-name	JJ
product	NN
for	IN
its	PRP$
own	JJ
in	IN
such	JJ
testing	VBG
.	.

The	DT
West	NNP
German	JJ
retailer	NN
ASKO	VB
Deutsche	FW
Kaufhaus	VB
AG	NNP
plans	NNS
to	TO
challenge	NN
the	DT
legality	NN
of	IN
a	DT
widely	RB
employed	VBN
anti-takeover	JJ
defense	NN
of	IN
companies	NNS
in	IN
the	DT
Netherlands	NNP
.	.

The	DT
eventual	JJ
court	NN
decision	NN
could	MD
become	VB
a	DT
landmark	NN
in	IN
Dutch	JJ
corporate	JJ
law	NN
because	IN
the	DT
lawsuit	NN
ASKO	VB
plans	NNS
to	TO
file	NN
would	MD
be	VB
the	DT
first	JJ
to	TO
challenge	NN
the	DT
entire	JJ
principle	NN
and	CC
practice	NN
of	IN
companies	NNS
issuing	VBG
voting	VBG
preferred	JJ
shares	NNS
to	TO
management-controlled	VB
trusts	NNS
to	TO
dilute	VB
voting	VBG
power	NN
of	IN
common	JJ
stockholders	NNS
.	.

Up	IN
to	TO
now	RB
only	RB
specific	JJ
aspects	NNS
of	IN
these	DT
defenses	NNS
have	VBP
been	VBN
challenged	VBN
,	,
though	IN
unsuccessfully	RB
,	,
ASKO	NNP
's	POS
Dutch	JJ
lawyers	NNS
noted	VBD
.	.

Should	MD
the	DT
courts	NNS
uphold	VB
the	DT
validity	NN
of	IN
this	DT
type	NN
of	IN
defense	NN
,	,
ASKO	VB
will	MD
then	RB
ask	VB
the	DT
court	NN
to	TO
overturn	VB
such	JJ
a	DT
vote-diluting	VB
maneuver	NN
recently	RB
deployed	VBD
by	IN
Koninklijke	VB
Ahold	VB
NV	NNP
.	.

ASKO	IN
says	VBZ
the	DT
Dutch-based	JJ
international	JJ
food	NN
retailer	NN
had	VBD
n't	RB
reasonable	JJ
grounds	NNS
to	TO
issue	NN
preferred	JJ
stock	NN
to	TO
a	DT
friendly	JJ
trust	NN
and	CC
thus	RB
dilute	VB
the	DT
worth	JJ
and	CC
voting	VBG
power	NN
of	IN
ASKO	VB
and	CC
other	JJ
shareholders	NNS
.	.

Speaking	VBG
through	IN
its	PRP$
Dutch	JJ
lawyers	NNS
,	,
ASKO	VB
also	RB
disclosed	VBN
it	PRP
holds	VBZ
a	DT
15	CD
%	NN
stake	NN
in	IN
Ahold	VB
.	.

It	NNP
was	VBD
previously	RB
thought	VBN
ASKO	VB
held	VBD
a	DT
13.6	CD
%	NN
stake	NN
that	IN
was	VBD
accumulated	VBN
since	IN
July	NNP
.	.

A	DT
spokesman	NN
for	IN
Ahold	VB
said	VBD
his	PRP$
company	NN
is	VBZ
confident	JJ
of	IN
its	PRP$
own	JJ
position	NN
and	CC
the	DT
propriety	NN
of	IN
the	DT
preferred-share	JJ
issue	NN
.	.

He	PRP
termed	VBN
ASKO	VB
's	POS
legal	JJ
actions	NNS
as	RB
``	``
unproductive	JJ
''	''
to	TO
international	JJ
cooperation	NN
among	IN
European	NNP
retailers	NNS
.	.

Chase	NNP
Manhattan	NNP
Bank	NNP
Chairman	NNP
Willard	NNP
Butcher	NNP
is	VBZ
a	DT
conservative	JJ
banker	NN
and	CC
a	DT
loyal	JJ
Republican	JJ
,	,
but	CC
on	IN
Friday	NNP
morning	NN
he	PRP
had	VBD
few	JJ
kind	NN
words	NNS
for	IN
President	NNP
Bush	NNP
's	POS
economic	JJ
policy-making	VBG
.	.

``	``
There	EX
are	VBP
some	DT
very	RB
significant	JJ
issues	NNS
out	IN
there	EX
,	,
such	JJ
as	RB
the	DT
fiscal	JJ
deficit	NN
,	,
the	DT
trade	NN
deficit	NN
,	,
our	PRP$
relations	NNS
with	IN
Japan	NNP
,	,
that	IN
have	VB
to	TO
be	VB
the	DT
subject	NN
of	IN
major	JJ
initiatives	NNS
,	,
''	''
he	PRP
said	VBD
in	IN
an	DT
interview	NN
.	.

``	``
I	PRP
'd	MD
like	IN
to	TO
see	VB
that	IN
initiative	NN
,	,
and	CC
I	PRP
have	VB
n't	RB
.	.

There	EX
is	VBZ
n't	RB
a	DT
big	JJ
shot	NN
,	,
an	DT
agenda	NN
.	.
''	''

A	DT
few	JJ
hours	NNS
later	RB
,	,
the	DT
stock	NN
market	NN
dropped	VBD
190	CD
points	NNS
.	.

Politicians	IN
tried	VBN
to	TO
finger	NN
each	DT
other	JJ
for	IN
the	DT
blame	NN
,	,
although	IN
many	JJ
analysts	NNS
doubt	VB
that	IN
Washington	NNP
was	VBD
singly	VB
responsible	JJ
for	IN
Wall	NNP
Street	NNP
's	POS
woes	NNS
.	.

But	CC
Mr.	NNP
Butcher	NNP
's	POS
comments	NNS
make	VBP
one	CD
thing	NN
clear	VB
:	:
Some	DT
on	IN
Wall	NNP
Street	NNP
wonder	NN
if	IN
anyone	NN
is	VBZ
in	IN
charge	NN
of	IN
economic	JJ
policy	NN
.	.

Consider	VB
this	DT
:	:

--	:
By	IN
11:59	CD
p.m.	NN
tonight	NN
,	,
President	NNP
Bush	NNP
must	MD
order	NN
$	$
16	CD
billion	CD
of	IN
automatic	JJ
,	,
across-the-board	JJ
cuts	NNS
in	IN
government	NN
spending	NN
to	TO
comply	VB
with	IN
the	DT
Gramm-Rudman	NNP
budget	NN
law	NN
.	.

The	DT
cuts	NNS
are	VBP
necessary	JJ
because	IN
Congress	NNP
and	CC
the	DT
administration	NN
have	VB
failed	VBN
to	TO
reach	VBP
agreement	NN
on	IN
a	DT
deficit-cutting	JJ
bill	NN
.	.

``	``
We	PRP
simply	RB
do	VB
n't	RB
have	VB
strong	JJ
leadership	NN
to	TO
try	VB
to	TO
reduce	VB
the	DT
deficit	NN
and	CC
make	VBP
tough	JJ
choices	NNS
,	,
''	''
House	NNP
Budget	NNP
Committee	NNP
Chairman	NNP
Leon	NNP
Panetta	NNP
(	(
D.	NNP
,	,
Calif	NNP
.	.
)	)
said	VBD
yesterday	NN
on	IN
NBC	NNP
News	NNP
's	POS
``	``
Meet	NNP
the	DT
Press	NNP
.	.
''	''

--	:
For	IN
the	DT
last	JJ
two	CD
weeks	NNS
,	,
the	DT
Bush	NNP
administration	NN
and	CC
the	DT
Federal	NNP
Reserve	NNP
have	VB
been	VBN
engaged	VBN
in	IN
a	DT
semi-public	VB
battle	NN
over	IN
international	JJ
economic	JJ
policy	NN
.	.

The	DT
administration	NN
has	VBZ
been	VBN
trying	VBG
to	TO
push	VB
the	DT
dollar	NN
lower	JJR
;	:
the	DT
Fed	NNP
has	VBZ
been	VBN
resisting	VBG
.	.

``	``
One	CD
of	IN
the	DT
things	NNS
that	IN
continues	VBZ
to	TO
worry	VB
me	PRP
is	VBZ
this	DT
monetary	JJ
warfare	NN
between	IN
the	DT
Treasury	NNP
Department	NNP
and	CC
the	DT
Federal	NNP
Reserve	NNP
Board	NNP
,	,
''	''
said	VBD
Lawrence	NNP
Kudlow	VB
,	,
a	DT
Bear	NNP
,	,
Stearns	NNP
&	CC
Co.	NNP
economist	NN
,	,
on	IN
ABC	NNP
's	POS
``	``
This	DT
Week	NNP
.	.
''	''

--	:
The	DT
administration	NN
has	VBZ
sent	VBD
out	IN
confusing	JJ
signals	NNS
about	IN
its	PRP$
response	NN
to	TO
a	DT
recent	JJ
spate	NN
of	IN
airline	NN
takeovers	NNS
.	.

Last	JJ
month	NN
,	,
Transportation	NNP
Secretary	NNP
Sam	NNP
Skinner	NNP
forced	VBD
Northwest	NNP
Airlines	NNPS
to	TO
reduce	VB
a	DT
stake	NN
held	VBD
by	IN
KLM	NNP
Royal	NNP
Dutch	JJ
Airlines	NNPS
.	.

But	CC
he	PRP
has	VBZ
since	IN
run	VBD
into	IN
opposition	NN
from	IN
the	DT
Treasury	NNP
and	CC
the	DT
White	NNP
House	NNP
over	IN
that	IN
decision	NN
.	.

And	CC
he	PRP
has	VBZ
kept	VBN
mum	VB
on	IN
how	WRB
his	PRP$
decision	NN
might	MD
affect	VB
a	DT
bid	NN
for	IN
United	NNP
Airlines	NNPS
,	,
which	WDT
includes	VBZ
a	DT
big	JJ
stake	NN
by	IN
British	JJ
Airways	NNPS
PLC	NNP
.	.

Some	DT
analysts	NNS
say	VBP
uncertainty	NN
about	IN
Washington	NNP
's	POS
anti-takeover	JJ
policy	NN
was	VBD
one	CD
reason	NN
that	IN
financing	VBG
for	IN
the	DT
United	NNP
Airlines	NNPS
takeover	NN
fell	VBD
through	IN
--	:
the	DT
event	NN
that	IN
triggered	VBN
the	DT
market	NN
drop	NN
.	.

In	IN
many	JJ
ways	NNS
,	,
the	DT
backdrop	NN
to	TO
Friday	NNP
's	POS
stock	NN
decline	NN
is	VBZ
eerily	VB
similar	JJ
to	TO
that	IN
of	IN
October	NNP
1987	CD
's	POS
508-point	JJ
crash	VB
.	.

Then	RB
,	,
as	RB
now	RB
,	,
the	DT
budget	NN
debate	NN
was	VBD
behind	IN
schedule	NN
and	CC
automatic	JJ
spending	NN
cuts	NNS
were	VBD
within	IN
days	NNS
of	IN
taking	VBG
hold	VBP
.	.

The	DT
Treasury	NNP
was	VBD
locked	VBN
in	IN
a	DT
battle	NN
over	IN
international	JJ
economic	JJ
policy	NN
,	,
although	IN
at	IN
that	IN
time	NN
it	PRP
was	VBD
with	IN
West	NNP
German	JJ
officials	NNS
rather	RB
than	IN
the	DT
Federal	NNP
Reserve	NNP
.	.

And	CC
concern	NN
about	IN
official	NN
actions	NNS
aimed	VBN
at	IN
takeovers	NNS
--	:
then	RB
by	IN
the	DT
tax-writing	JJ
House	NNP
Ways	NNPS
and	CC
Means	NNPS
Committee	NNP
rather	RB
than	IN
the	DT
Transportation	NNP
Department	NNP
--	:
were	VBD
making	VBG
markets	NNS
nervous	JJ
.	.

The	DT
1987	CD
crash	VB
brought	VBD
the	DT
Reagan	NNP
administration	NN
and	CC
Democratic	NNP
lawmakers	NNS
to	TO
the	DT
table	NN
for	IN
the	DT
first	JJ
budget	NN
summit	NN
,	,
resulting	VBG
in	IN
a	DT
two-year	JJ
plan	VB
to	TO
reduce	VB
the	DT
deficit	NN
by	IN
more	RBR
than	IN
$	$
76	CD
billion	CD
--	:
even	RB
though	IN
the	DT
deficit	NN
actually	RB
rose	VBD
by	IN
nearly	RB
$	$
12	CD
billion	CD
during	IN
that	IN
period	NN
.	.

But	CC
,	,
barring	VBG
further	JJ
drops	NNS
in	IN
the	DT
market	NN
this	DT
week	NN
,	,
a	DT
similar	JJ
outcome	NN
does	VBZ
n't	RB
seem	VBP
likely	JJ
this	DT
year	NN
.	.

Lawmakers	NNS
and	CC
administration	NN
officials	NNS
agree	VB
that	IN
Friday	NNP
's	POS
drop	NN
,	,
by	IN
itself	PRP
,	,
is	VBZ
n't	RB
enough	RB
to	TO
force	NN
both	DT
sides	NNS
back	RB
to	TO
the	DT
table	NN
to	TO
try	VB
to	TO
reach	VBP
a	DT
deficit-reduction	JJ
agreement	NN
that	IN
would	MD
be	VB
more	RBR
serious	JJ
and	CC
more	RBR
far-reaching	JJ
than	IN
last	JJ
spring	NN
's	POS
gimmick-ridden	VB
plan	VB
,	,
which	WDT
still	RB
is	VBZ
n't	RB
fully	RB
implemented	VBN
.	.

One	CD
of	IN
the	DT
biggest	JJS
reasons	NNS
that	IN
new	JJ
talks	NNS
are	VBP
n't	RB
likely	JJ
to	TO
come	VBP
about	IN
is	VBZ
that	IN
,	,
as	RB
everyone	NN
learned	VBN
in	IN
1987	CD
,	,
the	DT
economy	NN
and	CC
the	DT
market	NN
can	MD
survive	VB
a	DT
one-day	JJ
508-point	JJ
tumble	NN
.	.

``	``
Everybody	NN
thought	VBN
we	PRP
were	VBD
looking	VBG
at	IN
a	DT
repetition	VB
of	IN
1929	CD
,	,
that	IN
we	PRP
were	VBD
looking	VBG
at	IN
a	DT
recession	NN
,	,
''	''
Rep.	NNP
Panetta	NNP
said	VBD
yesterday	NN
in	IN
an	DT
interview	NN
.	.

``	``
That	DT
did	VBD
not	RB
happen	VB
.	.

They	PRP
learned	VBN
they	PRP
could	MD
survive	VB
it	PRP
without	IN
much	JJ
problem	NN
.	.
''	''

But	CC
administration	NN
officials	NNS
privately	RB
agree	VB
with	IN
Mr.	NNP
Panetta	NNP
,	,
who	WP
said	VBD
a	DT
precipitous	JJ
drop	NN
this	DT
week	NN
``	``
is	VBZ
going	VBG
to	TO
force	NN
the	DT
president	NN
and	CC
Congress	NNP
to	TO
take	VB
a	DT
much	JJ
harder	RBR
look	VB
at	IN
fiscal	JJ
policy	NN
.	.
''	''

In	IN
that	DT
case	NN
,	,
there	EX
will	MD
be	VB
plenty	RB
of	IN
blame	NN
to	TO
go	VB
around	IN
.	.

``	``
There	EX
is	VBZ
an	DT
underlying	VBG
concern	NN
on	IN
the	DT
part	NN
of	IN
the	DT
American	JJ
people	NNS
--	:
and	CC
there	EX
should	MD
be	VB
-	:
that	IN
the	DT
administration	NN
has	VBZ
not	RB
gone	VBN
far	JJ
enough	RB
in	IN
cutting	VBG
this	DT
deficit	NN
and	CC
that	IN
Congress	NNP
has	VBZ
been	VBN
unwilling	JJ
to	TO
cut	VB
what	WP
the	DT
administration	NN
asked	VBD
us	PRP
to	TO
cut	VB
,	,
''	''
said	VBD
Senate	NNP
Finance	NNP
Committee	NNP
Chairman	NNP
Lloyd	NNP
Bentsen	NNP
(	(
D.	NNP
,	,
Texas	NNP
)	)
.	.

Nevertheless	RB
,	,
it	PRP
clearly	RB
will	MD
take	VB
more	RBR
than	IN
Friday	NNP
's	POS
190-point	JJ
decline	NN
to	TO
overcome	VB
the	DT
bitter	JJ
feelings	NNS
that	IN
have	VB
developed	VBD
between	IN
lawmakers	NNS
and	CC
White	NNP
House	NNP
Budget	NNP
Director	NNP
Richard	NNP
Darman	NNP
over	IN
the	DT
capital-gains	JJ
fight	VB
.	.

Hill	NNP
Democrats	NNP
are	VBP
particularly	RB
angry	JJ
over	IN
Mr.	NNP
Bush	NNP
's	POS
claim	NN
that	IN
the	DT
capital-gains	JJ
cut	VB
was	VBD
part	NN
of	IN
April	NNP
's	POS
budget	NN
accord	NN
and	CC
his	PRP$
insistence	NN
on	IN
combining	VBG
it	PRP
with	IN
the	DT
deficit-reduction	JJ
legislation	NN
.	.

``	``
There	EX
is	VBZ
no	DT
prospect	NN
of	IN
any	DT
so-called	JJ
grand	JJ
compromise	NN
or	CC
deal	NN
next	JJ
year	NN
because	IN
the	DT
administration	NN
simply	RB
did	VBD
n't	RB
live	VB
up	RP
to	TO
this	DT
year	NN
's	POS
deal	NN
,	,
''	''
Senate	NNP
Majority	NNP
Leader	NNP
George	NNP
Mitchell	NNP
(	(
D.	NNP
,	,
Maine	NNP
)	)
said	VBD
yesterday	NN
on	IN
CBS	NNP
News	NNP
's	POS
``	``
Face	NNP
the	DT
Nation	NN
.	.
''	''

During	IN
last	JJ
week	NN
's	POS
maneuverings	NN
on	IN
the	DT
deficit-cutting	JJ
bill	NN
and	CC
the	DT
capital-gains	JJ
issue	NN
,	,
there	EX
were	VBD
signs	NNS
that	IN
Senate	NNP
Republicans	NNPS
and	CC
the	DT
administration	NN
were	VBD
at	IN
odds	NNS
.	.

At	IN
the	DT
very	RB
moment	NN
that	IN
Senate	NNP
Republicans	NNPS
were	VBD
negotiating	VBG
a	DT
deal	NN
to	TO
exclude	VB
capital	NN
gains	NNS
from	IN
the	DT
deficit-reduction	JJ
legislation	NN
,	,
White	NNP
House	NNP
spokesman	NN
Marlin	NNP
Fitzwater	NNP
told	VBD
reporters	NNS
that	IN
it	PRP
was	VBD
the	DT
president	NN
's	POS
policy	NN
to	TO
include	VB
it	PRP
.	.

When	WRB
an	DT
agreement	NN
was	VBD
reached	VBN
to	TO
strip	VB
capital	NN
gains	NNS
from	IN
the	DT
legislation	NN
,	,
Oregon	NNP
Sen.	NNP
Bob	NNP
Packwood	NNP
,	,
the	DT
ranking	VBG
GOP	NNP
member	NN
of	IN
the	DT
tax-writing	JJ
Senate	NNP
Finance	NNP
Committee	NNP
,	,
hailed	VBD
it	PRP
.	.

Asked	VBN
if	IN
the	DT
administration	NN
agreed	VBD
,	,
he	PRP
curtly	RB
replied	VBD
:	:
``	``
The	DT
adminstration	VB
will	MD
have	VB
to	TO
speak	VB
for	IN
itself	PRP
.	.
''	''

Friday	NNP
's	POS
market	NN
tumble	NN
could	MD
spur	VB
action	NN
on	IN
reconciling	VB
the	DT
House	NNP
and	CC
Senate	NNP
versions	NNS
of	IN
the	DT
deficit-reduction	JJ
measure	NN
,	,
a	DT
process	NN
that	IN
is	VBZ
n't	RB
expected	VBN
to	TO
begin	VB
until	IN
tomorrow	NN
at	IN
the	DT
soonest	JJS
.	.

Senate	NNP
Republicans	NNPS
expressed	VBD
the	DT
hope	VBP
that	IN
the	DT
House	NNP
would	MD
follow	VB
the	DT
lead	NN
of	IN
the	DT
Senate	NNP
,	,
which	WDT
on	IN
Friday	NNP
agreed	VBD
to	TO
drop	NN
a	DT
variety	NN
of	IN
spending	NN
measures	NNS
and	CC
tax	NN
breaks	VBZ
that	IN
would	MD
have	VB
increased	VBN
the	DT
fiscal	JJ
1990	CD
deficit	NN
.	.

``	``
The	DT
market	NN
needs	VBZ
a	DT
strong	JJ
signal	VB
that	IN
we	PRP
're	VBP
serious	JJ
about	IN
deficit	NN
reduction	NN
,	,
and	CC
the	DT
best	JJS
way	NN
to	TO
do	VB
that	IN
is	VBZ
for	IN
the	DT
House	NNP
of	IN
Representatives	NNPS
to	TO
strip	VB
their	PRP$
bill	NN
''	''
of	IN
similar	JJ
provisions	NNS
,	,
Sen.	NNP
Warren	NNP
Rudman	NNP
(	(
R.	NNP
,	,
N.H	NNP
.	.
)	)
.	.
said	VBD
yesterday	NN
.	.

The	DT
White	NNP
House	NNP
Office	NN
of	IN
Management	NNP
and	CC
Budget	NNP
,	,
whose	WP$
calculations	NNS
determine	VB
whether	IN
the	DT
Gramm-Rudman	NNP
targets	NNS
are	VBP
met	VBN
,	,
estimated	VBD
that	IN
the	DT
House-passed	JJ
deficit-reduction	JJ
measure	NN
would	MD
cut	VB
the	DT
fiscal	JJ
1990	CD
shortfall	NN
by	IN
$	$
6.2	CD
billion	CD
,	,
almost	RB
half	DT
of	IN
the	DT
Congressional	JJ
Budget	NNP
Office	NN
's	POS
estimate	NN
of	IN
$	$
11.0	CD
billion	CD
.	.

Rep.	NNP
Panetta	NNP
said	VBD
that	IN
OMB	NNP
's	POS
figure	NN
would	MD
still	RB
be	VB
enough	RB
to	TO
avoid	VB
permanent	JJ
across-the-board	JJ
cuts	NNS
,	,
but	CC
added	VBD
:	:
``	``
We	PRP
're	VBP
getting	VBG
very	RB
close	VB
to	TO
the	DT
margins	NNS
here	RB
.	.
''	''

No	DT
one	CD
in	IN
Washington	NNP
was	VBD
willing	JJ
to	TO
take	VB
the	DT
blame	NN
for	IN
provoking	VBG
Friday	NNP
's	POS
drop	NN
in	IN
the	DT
stock	NN
market	NN
.	.

But	CC
some	DT
players	NNS
were	VBD
quick	JJ
to	TO
seize	VB
the	DT
moment	NN
.	.

Before	IN
the	DT
sun	NN
had	VBD
set	VBN
on	IN
Friday	NNP
,	,
Richard	NNP
Rahn	NNP
,	,
the	DT
supply-side	NN
chief	NN
economist	NN
of	IN
the	DT
U.S.	NNP
Chamber	NNP
of	IN
Commerce	NNP
,	,
issued	VBN
a	DT
statement	NN
attributing	VBG
the	DT
drop	NN
in	IN
stock	NN
prices	NNS
to	TO
the	DT
Senate	NNP
decision	NN
to	TO
postpone	VB
action	NN
on	IN
capital	NN
gains	NNS
.	.

``	``
Investors	NNS
,	,
who	WP
had	VBD
been	VBN
holding	VBG
assets	NNS
in	IN
anticipation	NN
of	IN
a	DT
more	RBR
favorable	JJ
time	NN
to	TO
sell	VB
,	,
were	VBD
spooked	VBN
,	,
''	''
he	PRP
said	VBD
.	.

``	``
There	EX
have	VB
been	VBN
many	JJ
preposterous	JJ
reasons	NNS
advanced	VBD
to	TO
support	VB
a	DT
capital-gains	JJ
tax	NN
cut	VB
,	,
''	''
Sen.	NNP
Mitchell	NNP
said	VBD
during	IN
his	PRP$
television	NN
appearance	NN
,	,
``	``
but	CC
I	PRP
suggest	VBP
that	IN
is	VBZ
perhaps	RB
more	RBR
than	IN
any	DT
of	IN
the	DT
others	NNS
.	.

The	DT
following	JJ
U.S.	NNP
Treasury	NNP
,	,
corporate	JJ
and	CC
municipal	JJ
offerings	NNS
are	VBP
tentatively	RB
scheduled	VBN
for	IN
sale	NN
this	DT
week	NN
,	,
according	VBG
to	TO
Dow	NNP
Jones	NNP
Capital	NNP
Markets	NNPS
Report	NNP
:	:

$	$
15.2	CD
billion	CD
of	IN
three-month	JJ
and	CC
six-month	JJ
bills	NNS
.	.

Two-year	IN
notes	NNS
,	,
refinancing	NN
about	IN
$	$
9.6	CD
billion	CD
in	IN
maturing	VBG
debt	NN
.	.

$	$
9.75	CD
billion	CD
of	IN
52-week	JJ
bills	NNS
.	.

Connecticut	NNP
Light	NNP
&	CC
Power	NNP
Co.	NNP
--	:

Three	NNP
million	CD
shares	NNS
of	IN
$	$
25	CD
preferred	JJ
,	,
via	IN
competitive	JJ
bidding	NN
.	.

B&H	IN
Crude	JJ
Carriers	NNP
Ltd.	NNP
--	:

Four	CD
million	CD
common	JJ
shares	NNS
,	,
via	IN
Salomon	NNP
Brothers	NNPS
Inc	NNP
.	.

Baldwin	NNP
Technology	NNP
Co.	NNP
--	:

2.6	CD
million	CD
Class	NN
A	DT
shares	NNS
,	,
via	IN
Smith	NNP
Barney	NNP
Harris	NNP
Upham	NNP
&	CC
Co	NNP
.	.

Blockbuster	NNP
Entertainment	NNP
Corp.	NNP
--	:

$	$
250	CD
million	CD
(	(
face	NN
amount	VBP
)	)
Liquid	NN
Yield	NNP
Option	NN
Notes	NNS
,	,
via	IN
Merrill	NNP
Lynch	NNP
Capital	NNP
Markets	NNPS
.	.

Chase	NNP
Manhattan	NNP
Corp.	NNP
--	:

14	CD
million	CD
common	JJ
shares	NNS
,	,
via	IN
Goldman	NNP
,	,
Sachs	NNP
&	CC
Co	NNP
.	.

Comcast	NNP
Corp.	NNP
--	:

$	$
150	CD
million	CD
convertible	JJ
debentures	NNS
,	,
via	IN
Merrill	NNP
Lynch	NNP
.	.

CSS	IN
Industries	NNP
--	:

1.3	CD
million	CD
common	JJ
shares	NNS
,	,
via	IN
Merrill	NNP
Lynch	NNP
.	.

Eastern	NNP
Utilities	NNPS
Associates	NNPS
--	:

1.5	CD
million	CD
common	JJ
shares	NNS
,	,
via	IN
PaineWebber	NNP
Inc	NNP
.	.

Employee	NNP
Benefit	NNP
Plans	NNS
Inc.	NNP
--	:

Two	CD
million	CD
common	JJ
shares	NNS
,	,
via	IN
Dean	NNP
Witter	NNP
Capital	NNP
Markets	NNPS
.	.

Exabyte	NNP
Corp.	NNP
--	:

2,850,000	CD
common	JJ
shares	NNS
,	,
via	IN
Goldman	NNP
Sachs	NNP
.	.

Knowledgeware	IN
Inc.	NNP
--	:

2.4	CD
million	CD
common	JJ
shares	NNS
,	,
via	IN
Montgomery	NNP
Securities	NNPS
.	.

Oregon	NNP
--	:

$	$
100	CD
million	CD
of	IN
general	NN
obligation	NN
veterans	NNS
'	POS
tax	NN
notes	NNS
,	,
Series	NNP
1989	CD
,	,
via	IN
competitive	JJ
bid	NN
.	.

Washington	NNP
,	,
D.C.	NNP
--	:

$	$
200	CD
million	CD
of	IN
1990	CD
general	NN
obligation	NN
tax	NN
revenue	NN
notes	NNS
(	(
Series	NNP
1990A	VB
)	)
,	,
via	IN
competitive	JJ
bid	NN
.	.

Virginia	NNP
Public	NNP
School	NNP
Authority	NNP
--	:

$	$
55,730,000	VB
of	IN
school	NN
financing	VBG
bonds	NNS
,	,
1989	CD
Series	NNP
B	NNP
(	(
1987	CD
resolution	NN
)	)
,	,
via	IN
competitive	JJ
bid	NN
.	.

Austin	NNP
,	,
Texas	NNP
--	:

$	$
68,230,000	VB
of	IN
various	JJ
bonds	NNS
,	,
including	VBG
$	$
32	CD
million	CD
hotel	NN
occupancy	NN
tax	NN
revenue	NN
bonds	NNS
,	,
Series	NNP
1989A	NNP
,	,
and	CC
$	$
36.23	VB
million	CD
convention	NN
center	NN
revenue	NN
bonds	NNS
,	,
Series	NNP
1989B	NNP
,	,
via	IN
a	DT
Morgan	NNP
Stanley	NNP
&	CC
Co.	NNP
group	NN
.	.

California	NNP
Health	NNP
Facilities	NNP
Financing	NNP
Authority	NNP
--	:

$	$
144.5	CD
million	CD
of	IN
Kaiser	NNP
Permanente	NNP
revenue	NN
bonds	NNS
,	,
via	IN
a	DT
PaineWebber	NNP
group	NN
.	.

Connecticut	NNP
--	:

$	$
100	CD
million	CD
of	IN
general	NN
obligation	NN
capital	NN
appreciation	NN
bonds	NNS
,	,
College	NNP
Savings	NNP
Plan	NNP
,	,
1989	CD
Series	NNP
B	NNP
,	,
via	IN
a	DT
Prudential-Bache	NNP
Capital	NNP
Funding	NNP
group	NN
.	.

Pennsylvania	NNP
Higher	JJR
Education	NNP
Facilities	NNP
Authority	NNP
--	:

$	$
117	CD
million	CD
of	IN
revenue	NN
bonds	NNS
for	IN
Hahnemann	NNP
University	NNP
,	,
Series	NNP
1989	CD
,	,
via	IN
a	DT
Merrill	NNP
Lynch	NNP
group	NN
.	.

Tennessee	NNP
Valley	NNP
Authority	NNP
--	:

Three	NNP
billion	CD
of	IN
power	NN
bonds	NNS
,	,
via	IN
First	NNP
Boston	NNP
Corp	NNP
.	.

University	NNP
of	IN
Medicine	NN
And	CC
Dentistry	NNP
of	IN
New	NNP
Jersey	NNP
--	:

$	$
55	CD
million	CD
of	IN
Series	NNP
C	NNP
bonds	NNS
,	,
via	IN
a	DT
Prudential-Bache	NNP
group	NN
.	.

West	NNP
Virginia	NNP
Parkways	NNP
,	,
Economic	JJ
Development	NNP
And	CC
Tourism	NNP
Authority	NNP
--	:

$	$
143	CD
million	CD
of	IN
parkway	NN
revenue	NN
bonds	NNS
,	,
Series	NNP
1989	CD
,	,
via	IN
a	DT
PaineWebber	NNP
group	NN
.	.

San	NNP
Antonio	NNP
,	,
Texas	NNP
--	:

$	$
640	CD
million	CD
of	IN
gas	NN
and	CC
electric	JJ
revenue	NN
refunding	NN
bonds	NNS
,	,
via	IN
a	DT
First	NNP
Boston	NNP
group	NN
.	.

South	NNP
Dakota	NNP
Health	NNP
&	CC
Education	NNP
Facility	VB
Authority	NNP
--	:

$	$
51.1	CD
million	CD
of	IN
Rapid	NNP
City	NNP
Regional	NNP
Hospital	NNP
bonds	NNS
,	,
via	IN
a	DT
Dougherty	NNP
,	,
Dawkins	VB
,	,
Strand	VB
&	CC
Yost	VB
Inc.	NNP
group	NN
.	.

Small	JJ
investors	NNS
matched	VBN
their	PRP$
big	JJ
institutional	JJ
brethren	NNS
in	IN
anxiety	NN
over	IN
the	DT
weekend	NN
,	,
but	CC
most	RBS
seemed	VBD
to	TO
be	VB
taking	VBG
a	DT
philosophical	JJ
approach	NN
and	CC
said	VBD
they	PRP
were	VBD
resigned	VBD
to	TO
riding	VBG
out	IN
the	DT
latest	JJS
storm	NN
in	IN
the	DT
stock	NN
market	NN
.	.

``	``
I	PRP
'm	VBP
not	RB
losing	VBG
faith	NN
in	IN
the	DT
market	NN
,	,
''	''
said	VBD
Boston	NNP
lawyer	NN
Christopher	NNP
Sullivan	NNP
as	RB
he	PRP
watched	VBD
the	DT
market	NN
plunge	NN
on	IN
a	DT
big	JJ
screen	NN
in	IN
front	NN
of	IN
a	DT
brokerage	NN
firm	JJ
.	.

But	CC
he	PRP
's	POS
not	RB
so	RB
sure	JJ
about	IN
everyone	NN
else	RB
.	.

``	``
I	PRP
think	VBP
on	IN
Monday	NNP
the	DT
small	JJ
(	(
investors	NNS
)	)
are	VBP
going	VBG
to	TO
panic	NN
and	CC
sell	VB
,	,
''	''
predicted	VBD
Mr.	NNP
Sullivan	NNP
,	,
whose	WP$
investments	NNS
include	VB
AMR	NNP
Corp.	NNP
's	POS
American	JJ
Airlines	NNPS
unit	NN
and	CC
several	JJ
mutual	JJ
funds	NNS
.	.

``	``
And	CC
I	PRP
think	VBP
institutions	NNS
are	VBP
going	VBG
to	TO
come	VBP
in	IN
and	CC
buy	VB
...	:

I	PRP
'm	VBP
going	VBG
to	TO
hold	VBP
on	IN
.	.

If	IN
I	PRP
sell	VBP
now	RB
,	,
I	PRP
'll	MD
take	VB
a	DT
big	JJ
loss	NN
.	.
''	''

Some	DT
evinced	VBN
an	DT
optimism	NN
that	IN
had	VBD
been	VBN
rewarded	VBN
when	WRB
they	PRP
did	VBD
n't	RB
flee	VB
the	DT
market	NN
in	IN
1987	CD
.	.

``	``
Oh	UH
,	,
I	PRP
bet	NN
it	PRP
'll	MD
be	VB
up	RP
50	CD
points	NNS
on	IN
Monday	NNP
,	,
''	''
said	VBD
Lucy	NNP
Crump	VB
,	,
a	DT
78-year-old	VB
retired	VBD
housewife	NN
in	IN
Lexington	NNP
,	,
Ky	NNP
.	.

Mrs.	NNP
Crump	VB
said	VBD
her	PRP$
Ashwood	VB
Investment	NNP
Club	NNP
's	POS
portfolio	NN
lost	VBN
about	IN
one-third	NN
of	IN
its	PRP$
value	NN
following	VBG
the	DT
Black	NNP
Monday	NNP
crash	VB
,	,
``	``
but	CC
no	DT
one	CD
got	VBD
discouraged	VBN
,	,
and	CC
we	PRP
gained	VBN
that	IN
back	RB
--	:
and	CC
more	RBR
.	.
''	''

At	IN
the	DT
annual	JJ
congress	NN
of	IN
the	DT
National	NNP
Association	NNP
of	IN
Investors	NNS
Corp.	NNP
at	IN
the	DT
Hyatt	NNP
Regency	NNP
hotel	NN
in	IN
Minneapolis	NNP
,	,
the	DT
scene	NN
was	VBD
calm	JJ
.	.

Some	DT
500	CD
investors	NNS
representing	VBG
investor	NN
clubs	NNS
from	IN
around	IN
the	DT
U.S.	NNP
were	VBD
attending	VBG
when	WRB
the	DT
market	NN
started	VBN
to	TO
slide	NN
Friday	NNP
.	.

But	CC
Robert	NNP
Showalter	VB
,	,
an	DT
official	NN
of	IN
the	DT
association	NN
,	,
said	VBD
no	DT
special	JJ
bulletins	NNS
or	CC
emergency	NN
meetings	NNS
of	IN
the	DT
investors	NNS
'	POS
clubs	NNS
are	VBP
planned	VBD
.	.

In	IN
fact	NN
,	,
some	DT
of	IN
the	DT
association	NN
's	POS
members	NNS
--	:
long-term	JJ
,	,
buy-and-hold	CD
investors	NNS
--	:
welcomed	VBD
the	DT
drop	NN
in	IN
prices	NNS
.	.

``	``
We	PRP
hope	VBP
to	TO
take	VB
advantage	NN
of	IN
it	PRP
,	,
''	''
said	VBD
John	NNP
Snyder	NNP
,	,
a	DT
member	NN
of	IN
a	DT
Los	NNP
Angeles	NNP
investors	NNS
'	POS
club	NN
.	.

He	PRP
has	VBZ
four	CD
stocks	NNS
in	IN
mind	NN
to	TO
buy	VB
if	IN
the	DT
prices	NNS
drop	NN
to	TO
the	DT
level	NN
he	PRP
wants	VBZ
.	.

Not	RB
everyone	NN
is	VBZ
reacting	VBG
so	RB
calmly	VB
,	,
however	RB
,	,
and	CC
many	JJ
wonder	NN
about	IN
the	DT
long-term	JJ
implications	NNS
of	IN
what	WP
is	VBZ
widely	RB
viewed	VBN
as	RB
the	DT
cause	VB
of	IN
Friday	NNP
's	POS
slide	NN
,	,
reluctance	NN
by	IN
banks	NNS
to	TO
provide	VB
financing	VBG
for	IN
a	DT
buy-out	NN
of	IN
UAL	NNP
Corp.	NNP
,	,
parent	NN
of	IN
United	NNP
Airlines	NNPS
.	.

Marc	NNP
Perkins	NNP
,	,
a	DT
Tampa	NNP
,	,
Fla.	NNP
,	,
investment	NN
banker	NN
,	,
said	VBD
the	DT
market	NN
drop	NN
is	VBZ
one	CD
of	IN
``	``
a	DT
tremendous	JJ
number	NN
of	IN
signs	NNS
that	IN
the	DT
leveraged	JJ
take-out	NN
era	NN
is	VBZ
ending	VBG
.	.

There	EX
's	POS
no	DT
question	VBP
that	IN
there	EX
's	POS
a	DT
general	NN
distaste	VB
for	IN
leverage	VB
among	IN
lenders	NNS
.	.

''	''
Mr.	NNP
Perkins	NNP
believes	VBZ
,	,
however	RB
,	,
that	IN
the	DT
market	NN
could	MD
be	VB
stabilized	VBN
if	IN
California	NNP
investor	NN
Marvin	NNP
Davis	NNP
steps	NNS
back	RB
in	IN
to	TO
the	DT
United	NNP
bidding	NN
with	IN
an	DT
offer	NN
of	IN
$	$
275	CD
a	DT
share	NN
.	.

Sara	NNP
Albert	NNP
,	,
a	DT
34-year-old	VB
Dallas	NNP
law	NN
student	NN
,	,
says	VBZ
she	PRP
's	POS
generally	RB
skittish	JJ
about	IN
the	DT
stock	NN
market	NN
and	CC
the	DT
takeover	NN
activity	NN
that	IN
seems	VBZ
to	TO
fuel	NN
it	PRP
.	.

``	``
I	PRP
have	VB
this	DT
feeling	VBG
that	IN
it	PRP
's	POS
built	VBN
on	IN
sand	NN
,	,
''	''
she	PRP
says	VBZ
,	,
that	IN
the	DT
market	NN
rises	NNS
``	``
but	CC
there	EX
's	POS
no	DT
foundation	NN
to	TO
it	PRP
.	.
''	''

She	PRP
and	CC
her	PRP$
husband	NN
pulled	VBN
most	RBS
of	IN
their	PRP$
investments	NNS
out	IN
of	IN
the	DT
market	NN
after	IN
the	DT
1987	CD
crash	VB
,	,
although	IN
she	PRP
still	RB
owns	VBZ
some	DT
Texaco	NNP
stock	NN
.	.

Partly	RB
because	IN
of	IN
concern	NN
about	IN
the	DT
economy	NN
and	CC
partly	RB
because	IN
she	PRP
recently	RB
quit	VBP
her	PRP$
job	NN
as	RB
a	DT
legal	JJ
assistant	NN
to	TO
go	VB
to	TO
school	NN
,	,
``	``
I	PRP
think	VBP
at	IN
this	DT
point	VBP
we	PRP
want	VBP
to	TO
be	VB
a	DT
lot	NN
more	RBR
liquid	JJ
.	.
''	''

Others	NNS
wonder	NN
how	WRB
many	JJ
more	RBR
of	IN
these	DT
shocks	NNS
the	DT
small	JJ
investor	NN
can	MD
stand	VB
.	.

``	``
We	PRP
all	DT
assumed	VBN
October	NNP
'87	VB
was	VBD
a	DT
one-time	JJ
shot	NN
,	,
''	''
said	VBD
San	NNP
Francisco	NNP
attorney	NN
David	NNP
Greenberg	NNP
.	.

``	``
We	PRP
told	VBD
the	DT
little	RB
guy	NN
it	PRP
could	MD
only	RB
happen	VB
once	RB
in	IN
a	DT
lifetime	NN
,	,
come	VBP
on	IN
back	RB
.	.

Now	RB
it	PRP
's	POS
happening	VBG
again	RB
.	.
''	''

Mr.	NNP
Greenberg	NNP
got	VBD
out	IN
just	RB
before	IN
the	DT
1987	CD
crash	VB
and	CC
,	,
to	TO
his	PRP$
regret	VB
,	,
never	RB
went	VBD
back	RB
even	RB
as	RB
the	DT
market	NN
soared	VBN
.	.

This	DT
time	NN
he	PRP
's	POS
ready	JJ
to	TO
buy	VB
in	IN
``	``
when	WRB
the	DT
panic	NN
wears	VBZ
off	RP
.	.
''	''

Still	RB
,	,
he	PRP
adds	VBZ
:	:
``	``
We	PRP
ca	MD
n't	RB
have	VB
this	DT
kind	NN
of	IN
thing	NN
happen	VB
very	RB
often	RB
.	.

When	WRB
the	DT
little	RB
guy	NN
gets	VBZ
frightened	JJ
,	,
the	DT
big	JJ
guys	NNS
hurt	VBN
badly	RB
.	.

Merrill	NNP
Lynch	NNP
ca	MD
n't	RB
survive	VB
without	IN
the	DT
little	RB
guy	NN
.	.
''	''

Small	JJ
investors	NNS
have	VB
tiptoed	VBD
back	RB
into	IN
the	DT
market	NN
following	VBG
Black	NNP
Monday	NNP
,	,
but	CC
mostly	RB
through	IN
mutual	JJ
funds	NNS
.	.

Discount	IN
brokerage	NN
customers	NNS
``	``
have	VB
been	VBN
in	IN
the	DT
market	NN
somewhat	RB
but	CC
not	RB
whole	JJ
hog	NN
like	IN
they	PRP
were	VBD
two	CD
years	NNS
ago	IN
,	,
''	''
says	VBZ
Leslie	NNP
Quick	RB
Jr.	NNP
,	,
chairman	NN
of	IN
the	DT
Quick	RB
&	CC
Reilly	NNP
discount	NN
brokerage	NN
firm	JJ
.	.

Hugo	NNP
Quackenbush	NNP
,	,
senior	JJ
vice	NN
president	NN
at	IN
Charles	NNP
Scwhab	VB
Corp.	NNP
,	,
says	VBZ
Schwab	NNP
customers	NNS
``	``
have	VB
been	VBN
neutral	JJ
to	TO
cautious	JJ
recently	RB
about	IN
stocks	NNS
.	.
''	''

Individual	NNP
investors	NNS
are	VBP
still	RB
angry	JJ
about	IN
program	NN
trading	NN
,	,
Mr.	NNP
Quackenbush	NNP
says	VBZ
.	.

Avner	NNP
Arbel	NNP
,	,
a	DT
Cornell	NNP
University	NNP
finance	NN
professor	NN
,	,
says	VBZ
government	NN
regulators	NNS
will	MD
have	VB
to	TO
more	RBR
closely	RB
control	NN
program	NN
trading	NN
to	TO
``	``
win	VB
back	RB
the	DT
confidence	NN
of	IN
the	DT
small	JJ
investor	NN
.	.
''	''

But	CC
it	PRP
's	POS
not	RB
only	RB
the	DT
stock	NN
market	NN
that	IN
has	VBZ
some	DT
small	JJ
investors	NNS
worried	VBN
.	.

Alan	NNP
Helfman	VB
,	,
general	NN
sales	NNS
manager	NN
of	IN
a	DT
Chrysler	NNP
dealership	NN
in	IN
Houston	NNP
,	,
said	VBD
he	PRP
and	CC
his	PRP$
mother	NN
have	VB
some	DT
joint	JJ
stock	NN
investments	NNS
,	,
but	CC
the	DT
overall	JJ
economy	NN
is	VBZ
his	PRP$
chief	NN
worry	VB
.	.

``	``
These	DT
high	JJ
rollers	NNS
took	VBD
a	DT
big	JJ
bath	NN
today	NN
,	,
''	''
he	PRP
said	VBD
in	IN
his	PRP$
showroom	NN
,	,
which	WDT
is	VBZ
within	IN
a	DT
few	JJ
miles	NNS
of	IN
the	DT
multi-million	VB
dollar	NN
homes	NNS
of	IN
some	DT
of	IN
Houston	NNP
's	POS
richest	JJS
citizens	NNS
.	.

``	``
And	CC
I	PRP
can	MD
tell	VB
you	PRP
that	IN
a	DT
high	JJ
roller	NN
is	VBZ
n't	RB
going	VBG
to	TO
come	VBP
in	IN
tomorrow	NN
and	CC
buy	VB
a	DT
Chrysler	NNP
TC	VB
by	IN
Maserati	VB
.	.
''	''

And	CC
,	,
finally	RB
,	,
there	EX
were	VBD
the	DT
gloaters	VB
.	.

``	``
I	PRP
got	VBD
out	IN
in	IN
1987	CD
.	.

Everything	NN
,	,
''	''
said	VBD
Pascal	NNP
Antori	VB
,	,
an	DT
Akron	NNP
,	,
Ohio	NNP
,	,
plumbing	NN
contractor	NN
who	WP
was	VBD
visiting	VBG
Chicago	NNP
and	CC
stopped	VBN
by	IN
Fidelity	NNP
Investments	NNPS
'	POS
LaSalle	NNP
Street	NNP
office	NN
.	.

``	``
I	PRP
just	RB
stopped	VBN
by	IN
to	TO
see	VB
how	WRB
much	JJ
I	PRP
would	MD
have	VB
lost	VBN
.	.
''	''

Would	MD
Mr.	NNP
Antori	VB
ever	RB
get	VB
back	RB
in	IN
?	.

``	``
Are	VBP
you	PRP
kidding	VB
!	.

When	WRB
it	PRP
comes	VBZ
to	TO
money	NN
:	:
Once	RB
bitten	VB
,	,
2,000	CD
times	NNS
shy	VB
.	.

The	DT
crowded	JJ
field	NN
for	IN
notebook-sized	JJ
computers	NNS
is	VBZ
about	IN
to	TO
become	VB
a	DT
lot	NN
more	RBR
crowded	VBN
.	.

Compaq	NNP
Computer	NNP
Corp.	NNP
's	POS
long-awaited	JJ
entry	NN
today	NN
into	IN
the	DT
notebook	NN
field	NN
is	VBZ
expected	VBN
to	TO
put	VBN
immediate	JJ
heat	NN
on	IN
others	NNS
in	IN
the	DT
market	NN
,	,
especially	RB
Zenith	NNP
Electronics	NNPS
Corp.	NNP
,	,
the	DT
current	NN
market	NN
leader	NN
,	,
and	CC
on	IN
a	DT
swarm	VB
of	IN
promising	VBG
start-ups	NNS
.	.

Compaq	NNP
's	POS
series	NN
of	IN
notebooks	NNS
extends	VBZ
a	DT
trend	NN
toward	IN
downsizing	VBG
in	IN
the	DT
personal	JJ
computer	NN
market	NN
.	.

One	CD
manufacturer	NN
already	RB
has	VBZ
produced	VBD
a	DT
clipboard-sized	VB
computer	NN
called	VBN
a	DT
notepad	VB
,	,
and	CC
two	CD
others	NNS
have	VB
introduced	VBN
even	RB
smaller	JJR
``	``
palmtops	VB
.	.
''	''

But	CC
those	DT
machines	NNS
are	VBP
still	RB
considered	VBN
novelties	NNS
,	,
with	IN
keyboards	VB
only	RB
a	DT
munchkin	VB
could	MD
love	VB
and	CC
screens	NNS
to	TO
match	VB
.	.

Compaq	NNP
's	POS
notebooks	NNS
,	,
by	IN
contrast	NN
,	,
may	MD
be	VB
the	DT
first	JJ
in	IN
their	PRP$
weight	NN
class	NN
not	RB
to	TO
skimp	VB
on	IN
features	NNS
found	VBD
in	IN
much	JJ
bigger	JJR
machines	NNS
.	.

Analysts	NNS
say	VBP
they	PRP
're	VBP
faster	RBR
and	CC
carry	VBP
more	RBR
memory	NN
than	IN
anything	NN
else	RB
of	IN
their	PRP$
size	NN
on	IN
the	DT
market	NN
--	:
and	CC
they	PRP
're	VBP
priced	VBN
aggressively	RB
at	IN
$	$
2,400	CD
to	TO
$	$
5,000	CD
.	.

All	DT
of	IN
this	DT
comes	VBZ
in	IN
a	DT
machine	NN
that	IN
weighs	VBZ
only	RB
six	CD
pounds	NNS
and	CC
fits	VBZ
comfortably	RB
into	IN
most	RBS
briefcases	VB
.	.

In	IN
recent	JJ
months	NNS
,	,
Compaq	NNP
's	POS
competition	NN
,	,
including	VBG
Zenith	NNP
,	,
Toshiba	NNP
Corp.	NNP
,	,
Tandy	NNP
Corp.	NNP
and	CC
NEC	NNP
Corp.	NNP
all	DT
have	VB
introduced	VBN
portables	VB
that	IN
weigh	VBP
approximately	RB
the	DT
same	JJ
and	CC
that	IN
are	VBP
called	VBN
notebooks	NNS
--	:
perhaps	RB
misleadingly	VB
.	.

One	CD
analyst	NN
,	,
noting	VBG
that	IN
most	RBS
such	JJ
machines	NNS
are	VBP
about	IN
two	CD
inches	NNS
thick	JJ
,	,
takes	VBZ
exception	NN
to	TO
the	DT
name	NN
.	.

``	``
This	DT
is	VBZ
n't	RB
quite	RB
a	DT
notebook	NN
--	:
I	PRP
call	VB
it	PRP
a	DT
phonebook	NN
,	,
''	''
he	PRP
says	VBZ
.	.

That	DT
ca	MD
n't	RB
be	VB
said	VBD
of	IN
the	DT
$	$
2,400	CD
notepad	VB
computer	NN
introduced	VBN
a	DT
few	JJ
weeks	NNS
ago	IN
by	IN
GRiD	NNP
Systems	NNPS
Corp.	NNP
,	,
a	DT
unit	NN
of	IN
Tandy	NNP
.	.

Instead	RB
of	IN
a	DT
keyboard	NN
,	,
it	PRP
features	NNS
a	DT
writing	VBG
surface	VB
,	,
an	DT
electronic	JJ
pen	NN
and	CC
the	DT
ability	NN
to	TO
``	``
read	VBP
''	''
block	NN
printing	NN
.	.

At	IN
4	CD
1\/2	CD
pounds	NNS
,	,
it	PRP
may	MD
be	VB
too	RB
ambitiously	VB
named	VBN
,	,
but	CC
it	PRP
nevertheless	RB
opens	VBZ
up	RP
the	DT
kind	NN
of	IN
marketing	NN
possibilities	NNS
that	IN
make	VBP
analysts	NNS
froth	VB
.	.

Palmtops	IN
are	VBP
n't	RB
far	JJ
behind	IN
.	.

Atari	NNP
Corp.	NNP
's	POS
Portfolio	NN
,	,
introduced	VBN
in	IN
Europe	NNP
two	CD
months	NNS
ago	IN
and	CC
in	IN
the	DT
U.S.	NNP
in	IN
early	RB
September	NNP
,	,
weighs	VBZ
less	RBR
than	IN
a	DT
pound	NN
,	,
costs	NNS
a	DT
mere	JJ
$	$
400	CD
and	CC
runs	VBZ
on	IN
three	CD
AA	VB
batteries	NNS
,	,
yet	RB
has	VBZ
the	DT
power	NN
to	TO
run	VBD
some	DT
spreadsheets	NNS
and	CC
word	NN
processing	NN
programs	NNS
.	.

Some	DT
critics	NNS
,	,
however	RB
,	,
say	VBP
its	PRP$
ability	NN
to	TO
run	VBD
commonplace	NN
programs	NNS
is	VBZ
restricted	VBN
by	IN
a	DT
limited	VBN
memory	NN
.	.

Poquet	IN
Computer	NNP
Corp.	NNP
,	,
meanwhile	RB
,	,
has	VBZ
introduced	VBN
a	DT
much	JJ
more	RBR
sophisticated	JJ
palmtop	VB
that	IN
can	MD
run	VBD
Lotus	NNP
1-2-3	NNP
and	CC
other	JJ
sophisticated	JJ
software	NN
programs	NNS
,	,
but	CC
costs	NNS
five	CD
times	NNS
as	RB
much	JJ
.	.

At	IN
stake	NN
is	VBZ
what	WP
Mike	NNP
Swavely	NNP
,	,
Compaq	NNP
's	POS
president	NN
of	IN
North	NNP
America	NNP
operations	NNS
,	,
calls	VBZ
``	``
the	DT
Holy	NNP
Grail	NNP
of	IN
the	DT
computer	NN
industry	NN
''	''
--	:
the	DT
search	NN
for	IN
``	``
a	DT
real	JJ
computer	NN
in	IN
a	DT
package	NN
so	RB
small	JJ
you	PRP
can	MD
take	VB
it	PRP
everywhere	RB
.	.
''	''

The	DT
market	NN
is	VBZ
so	RB
new	JJ
,	,
nobody	NN
knows	VBZ
yet	RB
how	WRB
big	JJ
it	PRP
can	MD
be	VB
.	.

``	``
I	PRP
've	VBP
had	VBD
a	DT
lot	NN
of	IN
people	NNS
trying	VBG
to	TO
sell	VB
me	PRP
services	NNS
to	TO
find	VB
out	IN
how	WRB
big	JJ
it	PRP
is	VBZ
,	,
''	''
says	VBZ
Tom	NNP
Humphries	NNP
,	,
director	NN
of	IN
marketing	NN
for	IN
GRiD	NNP
.	.

``	``
Whether	IN
it	PRP
's	POS
$	$
5	CD
billion	CD
or	CC
$	$
3.5	CD
billion	CD
,	,
it	PRP
does	VBZ
n't	RB
matter	NN
.	.

It	NNP
's	POS
huge	JJ
.	.
''	''

Consider	VB
the	DT
growth	NN
of	IN
portables	VB
,	,
which	WDT
now	RB
comprise	VBP
12	CD
%	NN
of	IN
all	DT
personal	JJ
computer	NN
sales	NNS
.	.

Laptops	IN
--	:
generally	RB
anything	NN
under	IN
15	CD
pounds	NNS
--	:
have	VB
become	VB
the	DT
fastest-growing	JJ
personal	JJ
computer	NN
segment	NN
,	,
with	IN
sales	NNS
doubling	VBG
this	DT
year	NN
.	.

Responding	VBG
to	TO
that	IN
demand	VBP
,	,
however	RB
,	,
has	VBZ
led	VBN
to	TO
a	DT
variety	NN
of	IN
compromises	NNS
.	.

Making	VBG
computers	NNS
smaller	JJR
often	RB
means	VBZ
sacrificing	VBG
memory	NN
.	.

It	NNP
also	RB
has	VBZ
precluded	JJ
use	VBP
of	IN
the	DT
faster	RBR
,	,
more	RBR
powerful	JJ
microprocessors	NNS
found	VBD
in	IN
increasing	VBG
numbers	NNS
of	IN
desktop	NN
machines	NNS
.	.

Size	NN
and	CC
weight	NN
considerations	NNS
also	RB
have	VB
limited	VBN
screen	NN
displays	NNS
.	.

The	DT
competitive	JJ
sniping	VB
can	MD
get	VB
pretty	RB
petty	JJ
at	IN
times	NNS
.	.

A	DT
Poquet	NN
spokesman	NN
,	,
for	IN
example	NN
,	,
criticizes	VBZ
the	DT
Atari	NNP
Portfolio	NN
because	IN
it	PRP
requires	VBZ
three	CD
batteries	NNS
while	IN
the	DT
Poquet	VB
needs	VBZ
only	RB
two	CD
.	.

Both	DT
palmtops	NN
are	VBP
dismissed	VBD
by	IN
notebook	NN
makers	NNS
,	,
who	WP
argue	VBP
that	IN
they	PRP
're	VBP
too	RB
small	JJ
--	:
a	DT
problem	NN
Poquet	VB
also	RB
encountered	VBD
in	IN
focus	NN
groups	NNS
,	,
admits	VBZ
Gerry	NNP
Purdy	VB
,	,
director	NN
of	IN
marketing	NN
.	.

Poquet	IN
,	,
trying	VBG
to	TO
avoid	VB
the	DT
``	``
gadget	VB
''	''
label	NN
,	,
responded	VBD
with	IN
the	DT
tag	NN
line	NN
,	,
``	``
The	DT
Poquet	VB
PC	NN
--	:
a	DT
Very	VB
Big	NNP
Computer	NNP
.	.
''	''

Despite	IN
the	DT
sniping	NN
,	,
few	JJ
question	VBP
the	DT
inevitability	VB
of	IN
the	DT
move	NN
to	TO
small	JJ
machines	NNS
that	IN
do	VB
n't	RB
make	VBP
compromises	NNS
.	.

Toward	IN
that	DT
end	NN
,	,
experts	NNS
say	VBP
the	DT
real	JJ
battle	NN
will	MD
take	VB
place	NN
between	IN
center-stage	NNP
players	NNS
like	IN
Toshiba	NNP
,	,
Zenith	NNP
and	CC
now	RB
Compaq	NNP
.	.

Compaq	NNP
's	POS
new	JJ
machines	NNS
are	VBP
considered	VBN
a	DT
direct	JJ
threat	NN
to	TO
start-up	JJ
firms	NNS
like	IN
Dynabook	VB
Inc.	NNP
,	,
which	WDT
introduced	VBN
in	IN
June	NNP
a	DT
computer	NN
that	IN
,	,
like	IN
Compaq	NNP
's	POS
,	,
uses	NNS
an	DT
Intel	NNP
286	CD
microprocessor	NN
and	CC
has	VBZ
a	DT
hard	RB
disk	NN
drive	NN
.	.

But	CC
the	DT
Dynabook	VB
product	NN
is	VBZ
twice	RB
as	RB
heavy	JJ
and	CC
costs	NNS
more	RBR
than	IN
Compaq	NNP
's	POS
.	.

Compaq	NNP
's	POS
announcement	NN
also	RB
spells	NNS
trouble	NN
for	IN
Zenith	NNP
,	,
which	WDT
last	JJ
year	NN
had	VBD
28	CD
%	NN
of	IN
the	DT
U.S.	NNP
laptop	JJ
market	NN
but	CC
recently	RB
agreed	VBD
to	TO
sell	VB
its	PRP$
computer	NN
business	NN
to	TO
Cie.	NNP
des	NNP
Machines	NNPS
Bull	NNP
,	,
the	DT
French	JJ
government-owned	JJ
computer	NN
maker	NN
.	.

Zenith	NNP
holders	NNS
will	MD
vote	NN
in	IN
December	NNP
on	IN
the	DT
proposed	VBN
$	$
635	CD
million	CD
sale	NN
,	,
a	DT
price	NN
that	IN
could	MD
slip	VB
because	IN
it	PRP
is	VBZ
pegged	VBD
to	TO
Zenith	NNP
's	POS
share	NN
and	CC
sales	NNS
.	.

Compaq	NNP
is	VBZ
already	RB
taking	VBG
aim	NN
at	IN
Zenith	NNP
's	POS
market	NN
share	NN
.	.

Rod	NNP
Canion	VB
,	,
Compaq	NNP
's	POS
president	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
notes	NNS
pointedly	RB
that	IN
Zenith	NNP
's	POS
$	$
2,000	CD
MinisPort	VB
uses	NNS
an	DT
``	``
unconventional	JJ
''	''
two-inch	VB
floppy	JJ
disk	NN
,	,
whereas	IN
Compaq	NNP
's	POS
new	JJ
machines	NNS
use	VBP
the	DT
more	RBR
common	JJ
3	CD
1\/2-inch	JJ
disk	NN
.	.

John	NNP
P.	NNP
Frank	NNP
,	,
president	NN
of	IN
Zenith	NNP
Data	NNP
Systems	NNPS
,	,
simply	RB
shrugs	VBZ
off	RP
such	JJ
criticism	NN
,	,
noting	VBG
that	IN
3	CD
1\/2-inch	JJ
floppies	VB
were	VBD
also	RB
``	``
unconventional	JJ
''	''
when	WRB
they	PRP
first	JJ
replaced	VBD
five-inch	VB
disks	NNS
.	.

``	``
We	PRP
do	VB
n't	RB
look	VB
at	IN
it	PRP
as	RB
not	RB
being	VBG
a	DT
standard	NN
,	,
we	PRP
look	VB
at	IN
it	PRP
as	RB
a	DT
new	JJ
standard	NN
,	,
''	''
he	PRP
argues	VBZ
.	.

Analysts	NNS
do	VB
n't	RB
see	VB
it	PRP
that	IN
way	NN
.	.

``	``
I	PRP
ca	MD
n't	RB
imagine	VB
that	IN
you	PRP
'll	MD
talk	NN
to	TO
anyone	NN
who	WP
wo	MD
n't	RB
tell	VB
you	PRP
this	DT
is	VBZ
dynamite	VB
for	IN
Compaq	NNP
and	CC
a	DT
stopper	NN
for	IN
everyone	NN
else	RB
,	,
''	''
says	VBZ
Gene	NNP
Talsky	VB
,	,
president	NN
of	IN
Professional	NNP
Marketing	NNP
Management	NNP
Inc	NNP
.	.

Adds	VBZ
Bill	NNP
Lempesis	VB
,	,
senior	JJ
industry	NN
analyst	NN
for	IN
DataQuest	VB
,	,
a	DT
high-technology	JJ
market	NN
research	NN
firm	JJ
:	:
``	``
We	PRP
basically	RB
think	VBP
that	IN
these	DT
are	VBP
very	RB
hot	JJ
products	NNS
.	.

The	DT
problem	NN
Compaq	NNP
is	VBZ
going	VBG
to	TO
have	VB
is	VBZ
that	IN
they	PRP
wo	MD
n't	RB
be	VB
able	JJ
to	TO
make	VBP
enough	RB
of	IN
them	PRP
.	.
''	''

Compaq	NNP
's	POS
machines	NNS
include	VB
the	DT
3	CD
1\/2-inch	JJ
floppy	JJ
disk	NN
drive	NN
,	,
a	DT
backlit	JJ
screen	NN
that	IN
is	VBZ
only	RB
1\/4-inch	VB
thick	JJ
and	CC
an	DT
internal	JJ
expansion	NN
slot	NN
for	IN
a	DT
modem	VB
--	:
in	IN
other	JJ
words	NNS
,	,
almost	RB
all	DT
the	DT
capabilities	NNS
of	IN
a	DT
typical	JJ
office	NN
machine	NN
.	.

Others	NNS
undoubtedly	RB
will	MD
follow	VB
,	,
but	CC
most	RBS
analysts	NNS
believe	VBP
Compaq	NNP
has	VBZ
at	IN
least	JJS
a	DT
six-month	JJ
lead	NN
on	IN
the	DT
competition	NN
.	.

Toshiba	NNP
's	POS
line	NN
of	IN
portables	VB
,	,
for	IN
example	NN
,	,
features	NNS
the	DT
T-1000	VB
,	,
which	WDT
is	VBZ
in	IN
the	DT
same	JJ
weight	NN
class	NN
but	CC
is	VBZ
much	JJ
slower	JJR
and	CC
has	VBZ
less	RBR
memory	NN
,	,
and	CC
the	DT
T-1600	VB
,	,
which	WDT
also	RB
uses	NNS
a	DT
286	CD
microprocessor	NN
,	,
but	CC
which	WDT
weighs	VBZ
almost	RB
twice	RB
as	RB
much	JJ
and	CC
is	VBZ
three	CD
times	NNS
the	DT
size	NN
.	.

A	DT
third	JJ
model	NN
,	,
marketed	VBN
in	IN
Japan	NNP
,	,
may	MD
hit	VBD
the	DT
U.S.	NNP
by	IN
the	DT
end	NN
of	IN
the	DT
first	JJ
quarter	NN
of	IN
1990	CD
,	,
but	CC
by	IN
then	RB
,	,
analysts	NNS
say	VBP
,	,
Compaq	NNP
will	MD
have	VB
established	VBD
itself	PRP
as	RB
one	CD
of	IN
three	CD
major	JJ
players	NNS
.	.

What	WP
about	IN
Big	NNP
Blue	NNP
?	.

International	NNP
Business	NNP
Machines	NNPS
Corp.	NNP
,	,
analysts	NNS
say	VBP
,	,
has	VBZ
been	VBN
burned	VBN
twice	RB
in	IN
trying	VBG
to	TO
enter	VB
the	DT
laptop	JJ
market	NN
and	CC
shows	VBZ
no	DT
signs	NNS
of	IN
trying	VBG
to	TO
get	VB
into	IN
notebooks	NNS
anytime	RB
soon	RB
.	.

Honeywell	NNP
Inc.	NNP
and	CC
International	NNP
Business	NNP
Machines	NNPS
Corp.	NNP
received	VBD
Air	NNP
Force	NNP
contracts	NNS
to	TO
develop	VB
integrated	VBN
circuits	NNS
for	IN
use	VBP
in	IN
space	NN
.	.

Honeywell	NNP
's	POS
contract	NN
totaled	VBD
$	$
69.7	VB
million	CD
,	,
and	CC
IBM	NNP
's	POS
$	$
68.8	CD
million	CD
.	.

Boeing	NNP
Co.	NNP
received	VBD
a	DT
$	$
46.7	VB
million	CD
Air	NNP
Force	NNP
contract	NN
for	IN
developing	VBG
cable	NN
systems	NNS
for	IN
the	DT
Minuteman	NNP
Missile	NNP
.	.

General	NNP
Dynamics	NNPS
Corp.	NNP
received	VBD
a	DT
$	$
29	CD
million	CD
Air	NNP
Force	NNP
contract	NN
for	IN
electronic-warfare	VB
training	NN
sets	VBZ
.	.

Grumman	NNP
Corp.	NNP
received	VBD
an	DT
$	$
18.1	CD
million	CD
Navy	NNP
contract	NN
to	TO
upgrade	NN
aircraft	NN
electronics	NNS
.	.

Avco	IN
Corp.	NNP
received	VBD
an	DT
$	$
11.8	CD
million	CD
Army	NNP
contract	NN
for	IN
helicopter	NN
engines	NNS
.	.

Sharp	NNP
increases	NNS
in	IN
the	DT
price	NN
of	IN
fresh	JJ
produce	VB
caused	VBN
Spain	NNP
's	POS
September	NNP
consumer	NN
price	NN
index	NN
to	TO
shoot	VBP
up	RP
1.1	CD
%	NN
from	IN
the	DT
previous	JJ
month	NN
,	,
pushing	VBG
the	DT
annual	JJ
rate	NN
of	IN
inflation	NN
to	TO
6.8	CD
%	NN
,	,
the	DT
National	NNP
Institute	NNP
of	IN
Statistics	NNP
said	VBD
Friday	NNP
.	.

The	DT
monthly	JJ
increase	NN
is	VBZ
the	DT
highest	JJS
recorded	JJ
in	IN
the	DT
past	IN
four	CD
years	NNS
.	.

The	DT
index	NN
,	,
which	WDT
registered	VBN
156.8	CD
at	IN
the	DT
end	NN
of	IN
September	NNP
,	,
has	VBZ
a	DT
base	NN
of	IN
100	CD
set	VBN
in	IN
1983	CD
and	CC
is	VBZ
n't	RB
seasonally	RB
adjusted	VBN
.	.

Prices	NNS
have	VB
risen	VBN
5.9	CD
%	NN
in	IN
the	DT
first	JJ
nine	CD
months	NNS
of	IN
the	DT
year	NN
,	,
outstripping	VB
both	DT
the	DT
initial	JJ
3	CD
%	NN
inflation	NN
goal	NN
set	VBN
by	IN
the	DT
government	NN
of	IN
Socialist	JJ
Prime	NNP
Minister	NNP
Felipe	NNP
Gonzalez	NNP
and	CC
the	DT
second	NN
,	,
revised	VBN
goal	NN
of	IN
5.8	CD
%	NN
.	.

Japan	NNP
's	POS
wholesale	JJ
prices	NNS
in	IN
September	NNP
rose	VBD
3.3	CD
%	NN
from	IN
a	DT
year	NN
earlier	JJR
and	CC
were	VBD
up	RP
0.4	CD
%	NN
from	IN
the	DT
previous	JJ
month	NN
,	,
the	DT
Bank	NNP
of	IN
Japan	NNP
announced	VBD
Friday	NNP
.	.

The	DT
wholesale	JJ
price	NN
index	NN
stood	VBD
at	IN
90.1	VB
,	,
compared	VBN
with	IN
a	DT
1985	CD
base	NN
of	IN
100	CD
.	.

Plunge	IN
?	.

What	WP
plunge	NN
?	.

Twenty-four	IN
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
issues	NNS
hit	VBD
52-week	JJ
highs	NNS
during	IN
Friday	NNP
's	POS
trading	NN
,	,
despite	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
's	POS
190.58-point	JJ
plunge	NN
.	.

Stocks	NNS
of	IN
utilities	NNS
held	VBD
up	RP
relatively	RB
better	RB
than	IN
other	JJ
market	NN
sectors	NNS
during	IN
the	DT
sell-off	NN
.	.

And	CC
among	IN
the	DT
issues	NNS
hitting	VBG
new	JJ
highs	NNS
were	VBD
Detroit	NNP
Edison	NNP
Co.	NNP
and	CC
Niagara	VB
Mohawk	VB
Power	NNP
Corp	NNP
.	.

Other	JJ
major	JJ
issues	NNS
hitting	VBG
highs	NNS
included	VBN
American	JJ
Telephone	NNP
&	CC
Telegraph	NNP
Co.	NNP
,	,
Westinghouse	NNP
Electric	NNP
Corp.	NNP
,	,
Exxon	NNP
Corp.	NNP
and	CC
Cigna	NNP
Corp.	NNP
,	,
the	DT
big	JJ
insurer	NN
.	.

Of	IN
course	NN
,	,
many	JJ
more	JJR
issues	NNS
--	:
93	CD
--	:
hit	VBD
new	JJ
lows	NNS
.	.

These	DT
included	VBN
International	NNP
Business	NNP
Machines	NNPS
Corp.	NNP
,	,
which	WDT
during	IN
Friday	NNP
's	POS
session	NN
traded	VBD
below	IN
$	$
100	CD
a	DT
share	NN
for	IN
the	DT
first	JJ
time	NN
since	IN
June	NNP
1984	CD
.	.

IBM	NNP
closed	VBN
at	IN
$	$
102	CD
,	,
down	IN
$	$
5.625	VB
.	.

Other	JJ
new	JJ
lows	NNS
included	VBN
Navistar	VB
International	NNP
Corp.	NNP
,	,
Union	NNP
Carbide	NNP
Corp.	NNP
and	CC
Bethlehem	NNP
Steel	NNP
Corp.	NNP
,	,
all	DT
of	IN
which	WDT
are	VBP
included	VBN
in	IN
the	DT
industrial	JJ
average	NN
.	.

Meanwhile	RB
,	,
two	CD
initial	JJ
public	JJ
offerings	NNS
braved	VB
the	DT
cascading	VB
market	NN
in	IN
their	PRP$
maiden	JJ
day	NN
of	IN
national	JJ
over-the-counter	NN
trading	NN
Friday	NNP
.	.

Shares	NNS
of	IN
Rally	NNP
's	POS
Inc.	NNP
,	,
an	DT
operator	NN
of	IN
fast-food	NN
restaurants	NNS
,	,
closed	VBN
at	IN
$	$
17	CD
each	DT
,	,
up	RP
from	IN
its	PRP$
$	$
15	CD
offering	VBG
price	NN
and	CC
shares	NNS
of	IN
Employee	NNP
Benefit	NNP
Plans	NNS
Inc.	NNP
,	,
a	DT
health-care	NN
consultant	NN
,	,
closed	VBN
at	IN
$	$
14.125	VB
,	,
up	RP
from	IN
its	PRP$
$	$
12	CD
offering	VBG
price	NN
.	.

Ford	NNP
Motor	NNP
Co.	NNP
said	VBD
it	PRP
acquired	VBN
5	CD
%	NN
of	IN
the	DT
shares	NNS
in	IN
Jaguar	NNP
PLC	NNP
.	.

Jaguar	NNP
,	,
the	DT
London	NNP
Stock	NNP
Exchange	NNP
and	CC
the	DT
U.S.	NNP
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
are	VBP
being	VBG
notified	VBN
of	IN
the	DT
transactions	NNS
,	,
the	DT
company	NN
said	VBD
.	.

The	DT
U.S.	NNP
Federal	NNP
Trade	NN
Commission	NNP
advised	VBN
Ford	NNP
last	JJ
week	NN
that	IN
it	PRP
would	MD
n't	RB
raise	VB
any	DT
objection	NN
to	TO
the	DT
acquisition	NN
of	IN
as	RB
much	JJ
as	RB
15	CD
%	NN
of	IN
Jaguar	NNP
shares	NNS
.	.

The	DT
No.	NN
2	LS
auto	NN
maker	NN
disclosed	VBN
last	JJ
month	NN
that	IN
it	PRP
wants	VBZ
to	TO
buy	VB
as	RB
much	JJ
as	RB
15	CD
%	NN
of	IN
the	DT
British	JJ
luxury-car	NN
maker	NN
,	,
the	DT
maximum	JJ
allowed	VBN
under	IN
current	NN
United	NNP
Kingdom	NNP
government	NN
restrictions	NNS
.	.

General	NNP
Motors	NNPS
Corp.	NNP
said	VBD
it	PRP
had	VBD
discussed	VBN
the	DT
possibility	NN
of	IN
a	DT
joint	JJ
venture	NN
with	IN
Jaguar	NNP
before	IN
Ford	NNP
began	VBD
buying	VBG
shares	NNS
.	.

GM	NNP
said	VBD
it	PRP
still	RB
is	VBZ
talking	VBG
with	IN
Jaguar	NNP
about	IN
acquiring	VBG
a	DT
minority	NN
interest	NN
.	.

Investors	NNS
who	WP
bought	VBN
stock	NN
with	IN
borrowed	VBN
money	NN
--	:
that	IN
is	VBZ
,	,
``	``
on	IN
margin	NN
''	''
--	:
may	MD
be	VB
more	RBR
worried	VBN
than	IN
most	RBS
following	VBG
Friday	NNP
's	POS
market	NN
drop	NN
.	.

That	DT
's	VBZ
because	IN
their	PRP$
brokers	NNS
can	MD
require	VB
them	PRP
to	TO
sell	VB
some	DT
shares	NNS
or	CC
put	VBN
up	RP
more	RBR
cash	NN
to	TO
enhance	VB
the	DT
collateral	NN
backing	NN
their	PRP$
loans	NNS
.	.

In	IN
October	NNP
1987	CD
,	,
these	DT
margin	NN
calls	VBZ
were	VBD
thought	VBN
to	TO
have	VB
contributed	VBD
to	TO
the	DT
downward	RB
spiral	NN
of	IN
the	DT
stock	NN
market	NN
.	.

Typically	RB
,	,
a	DT
margin	NN
call	VB
occurs	VBZ
when	WRB
the	DT
price	NN
of	IN
a	DT
stock	NN
falls	VBZ
below	IN
75	CD
%	NN
of	IN
its	PRP$
original	JJ
value	NN
.	.

If	IN
the	DT
investor	NN
does	VBZ
n't	RB
put	VB
up	RP
the	DT
extra	JJ
cash	NN
to	TO
satisfy	VB
the	DT
call	NN
,	,
the	DT
brokerage	NN
firm	NN
may	MD
begin	VB
liquidating	VBG
the	DT
securities	NNS
.	.

But	CC
some	DT
big	JJ
brokerage	NN
firms	NNS
said	VBD
they	PRP
do	VB
n't	RB
expect	VBP
major	JJ
problems	NNS
as	RB
a	DT
result	NN
of	IN
margin	NN
calls	VBZ
.	.

Margin	NN
calls	VBZ
since	IN
Friday	NNP
``	``
have	VB
been	VBN
higher	JJR
than	IN
usual	JJ
,	,
but	CC
reasonable	JJ
,	,
''	''
a	DT
spokesman	NN
for	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc.	NNP
said	VBD
.	.

Merrill	NNP
Lynch	NNP
&	CC
Co.	NNP
officials	NNS
``	``
do	VB
n't	RB
expect	VBP
{	(
margin	NN
calls	VBZ
}	)
to	TO
be	VB
as	RB
big	JJ
a	DT
factor	NN
as	RB
in	IN
1987	CD
''	''
because	IN
fewer	JJR
individual	JJ
investors	NNS
are	VBP
buying	VBG
stock	NN
on	IN
margin	NN
,	,
a	DT
spokesman	NN
said	VBD
.	.

Hugo	NNP
Quackenbush	NNP
,	,
senior	JJ
vice	NN
president	NN
at	IN
Charles	NNP
Schwab	NNP
Corp.	NNP
,	,
the	DT
San	NNP
Francisco-based	JJ
discount	NN
brokerage	NN
firm	JJ
,	,
said	VBD
he	PRP
did	VBD
n't	RB
expect	VBP
any	DT
immediate	JJ
problems	NNS
with	IN
margin	NN
calls	VBZ
for	IN
Schwab	NNP
customers	NNS
.	.

He	PRP
said	VBD
Schwab	NNP
had	VBD
increased	VBN
margin	NN
requirements	NNS
``	``
so	RB
customers	NNS
have	VB
more	RBR
of	IN
a	DT
cushion	VB
.	.
''	''

He	PRP
added	VBD
:	:
``	``
We	PRP
learned	VBN
a	DT
lesson	NN
in	IN
1987	CD
about	IN
volatility	NN
.	.

Avis	NNP
Inc.	NNP
,	,
following	VBG
rival	NN
Hertz	NNP
Corp.	NNP
's	POS
lead	NN
,	,
said	VBD
it	PRP
is	VBZ
backing	NN
out	IN
of	IN
frequent-flier	JJ
programs	NNS
with	IN
three	CD
airlines	NNS
.	.

The	DT
Garden	NNP
City	NNP
,	,
N.Y.	NNP
,	,
car-rental	JJ
company	NN
said	VBD
it	PRP
wo	MD
n't	RB
renew	VB
contracts	NNS
with	IN
NWA	NNP
Inc.	NNP
's	POS
Northwest	NNP
Airlines	NNPS
unit	NN
,	,
Pan	NNP
Am	NNP
Corp.	NNP
's	POS
Pan	NNP
American	JJ
World	NNP
Airways	NNPS
unit	NN
and	CC
Midway	NNP
Airlines	NNPS
at	IN
the	DT
end	NN
of	IN
this	DT
year	NN
.	.

But	CC
it	PRP
remains	VBZ
involved	VBN
in	IN
programs	NNS
with	IN
AMR	NNP
Corp.	NNP
's	POS
American	JJ
Airlines	NNPS
unit	NN
and	CC
Delta	NNP
Air	NNP
Lines	NNPS
.	.

Industry	NNP
estimates	NNS
put	VBN
Avis	NNP
's	POS
annual	JJ
cost	NN
of	IN
all	DT
five	CD
programs	NNS
at	IN
between	IN
$	$
8	CD
million	CD
and	CC
$	$
14	CD
million	CD
.	.

A	DT
spokesman	NN
for	IN
Avis	NNP
would	MD
n't	RB
specify	VB
the	DT
costs	NNS
but	CC
said	VBD
the	DT
three	CD
airlines	NNS
being	VBG
dropped	VBD
account	NN
for	IN
``	``
far	JJ
less	RBR
than	IN
half	DT
''	''
of	IN
the	DT
total	JJ
.	.

Budget	NNP
Rent	NNP
a	DT
Car	NN
Corp.	NNP
,	,
of	IN
Chicago	NNP
,	,
and	CC
National	NNP
Car	NN
Rental	JJ
Systems	NNPS
Inc.	NNP
,	,
of	IN
Minneapolis	NNP
,	,
both	DT
said	VBD
they	PRP
had	VBD
no	DT
plans	NNS
to	TO
follow	VB
suit	NN
.	.

In	IN
fact	NN
,	,
Budget	NNP
indicated	VBD
it	PRP
saw	VBD
some	DT
benefit	NN
to	TO
staying	VBG
involved	VBN
in	IN
these	DT
programs	NNS
,	,
in	IN
which	WDT
renters	NNS
earn	VB
frequent-flier	JJ
miles	NNS
and	CC
fliers	NNS
can	MD
get	VB
car-rental	JJ
discounts	NNS
.	.

``	``
I	PRP
can	MD
not	RB
see	VB
how	WRB
this	DT
news	NN
by	IN
Hertz	NNP
and	CC
Avis	NNP
can	MD
not	RB
benefit	NN
Budget	NNP
's	POS
programs	NNS
,	,
''	''
said	VBD
Bob	NNP
Wilson	NNP
,	,
Budget	NNP
's	POS
vice	NN
president	NN
,	,
marketing	NN
planning	NN
.	.

Northwest	NNP
and	CC
Midway	NNP
are	VBP
two	CD
of	IN
the	DT
five	CD
airlines	NNS
with	IN
which	WDT
Budget	NNP
has	VBZ
agreements	NNS
.	.

National	NNP
also	RB
participates	VBZ
in	IN
the	DT
Northwest	NNP
frequent-flier	JJ
program	NN
along	IN
with	IN
four	CD
other	JJ
airlines	NNS
,	,
including	VBG
Delta	NNP
and	CC
USAir	NNP
Group	NNP
Inc.	NNP
's	POS
USAir	NNP
unit	NN
.	.

A	DT
month	NN
ago	IN
,	,
Hertz	NNP
,	,
of	IN
Park	NNP
Ridge	NNP
,	,
N.J.	NNP
,	,
said	VBD
that	IN
it	PRP
would	MD
drop	NN
its	PRP$
marketing	NN
agreements	NNS
at	IN
year	NN
end	NN
with	IN
Delta	NNP
,	,
America	NNP
West	NNP
and	CC
Texas	NNP
Air	NNP
Corp.	NNP
's	POS
Continental	NNP
Airlines	NNPS
and	CC
Eastern	NNP
Airlines	NNPS
,	,
and	CC
that	IN
pacts	NNS
with	IN
American	JJ
Airlines	NNPS
,	,
UAL	NNP
Inc	NNP
's	POS
United	NNP
Airlines	NNPS
and	CC
USAir	NNP
also	RB
would	MD
be	VB
ended	VBD
...	:
sometime	RB
after	IN
Dec.	NNP
31	CD
.	.

At	IN
the	DT
time	NN
,	,
Hertz	NNP
said	VBD
its	PRP$
annual	JJ
fees	NNS
to	TO
those	DT
airlines	NNS
amounted	VBD
to	TO
$	$
20	CD
million	CD
and	CC
that	IN
the	DT
value	NN
of	IN
redeemed	VBN
awards	NNS
topped	VBD
$	$
15	CD
million	CD
.	.

Analysts	NNS
and	CC
competitors	NNS
,	,
however	RB
,	,
doubt	VB
the	DT
numbers	NNS
were	VBD
that	IN
high	JJ
.	.

Budget	NNP
said	VBD
its	PRP$
frequent-flier	JJ
costs	NNS
are	VBP
``	``
substantially	RB
below	IN
''	''
Avis	NNP
's	POS
level	NN
.	.

Robert	NNP
D.	NNP
Cardillo	VB
,	,
Avis	NNP
vice	NN
president	NN
of	IN
marketing	NN
,	,
said	VBD
,	,
``	``
The	DT
proliferation	NN
and	CC
costs	NNS
attached	VBN
to	TO
{	(
frequent-flier	JJ
programs	NNS
}	)
have	VB
significantly	RB
diminished	VBN
their	PRP$
value	NN
.	.
''	''

This	DT
year	NN
has	VBZ
been	VBN
difficult	JJ
for	IN
both	DT
Hertz	NNP
and	CC
Avis	NNP
,	,
said	VBD
Charles	NNP
Finnie	VB
,	,
car-rental	JJ
industry	NN
analyst	NN
at	IN
Alex	NNP
.	.
Brown	NNP
&	CC
Sons	NNPS
.	.

``	``
They	PRP
've	VBP
been	VBN
looking	VBG
to	TO
get	VB
their	PRP$
costs	NNS
down	IN
,	,
and	CC
this	DT
is	VBZ
a	DT
fairly	RB
sensible	JJ
way	NN
to	TO
do	VB
it	PRP
,	,
''	''
he	PRP
said	VBD
.	.

CBS	NNP
Inc.	NNP
is	VBZ
cutting	VBG
``	``
The	DT
Pat	NNP
Sajak	NNP
Show	NNP
''	''
down	IN
to	TO
one	CD
hour	NN
from	IN
its	PRP$
current	NN
90	CD
minutes	NNS
.	.

CBS	NNP
insisted	VBD
the	DT
move	NN
was	VBD
n't	RB
a	DT
setback	NN
for	IN
the	DT
program	NN
,	,
which	WDT
is	VBZ
the	DT
network	NN
's	POS
first	JJ
entry	NN
into	IN
the	DT
late-night	JJ
talk	NN
show	NN
format	NN
since	IN
1972	CD
.	.

``	``
I	PRP
have	VB
every	DT
intention	NN
of	IN
making	VBG
this	DT
the	DT
best	JJS
possible	JJ
show	NN
and	CC
having	VBG
it	PRP
run	VBD
one	CD
hour	NN
is	VBZ
the	DT
best	JJS
way	NN
to	TO
it	PRP
,	,
''	''
said	VBD
Rod	NNP
Perth	NNP
,	,
who	WP
was	VBD
named	VBN
vice	NN
president	NN
of	IN
late	JJ
night	NN
entertainment	NN
in	IN
August	NNP
.	.

``	``
This	DT
will	MD
raise	VB
the	DT
energy	NN
level	NN
of	IN
the	DT
show	NN
.	.
''	''

CBS	NNP
will	MD
continue	VB
to	TO
program	NN
action-adventure	VB
shows	VBZ
to	TO
follow	VB
the	DT
Sajak	NNP
hour	NN
.	.

But	CC
CBS	NNP
News	NNP
will	MD
extend	VB
its	PRP$
four-hour	JJ
``	``
Nightwatch	VB
''	''
by	IN
30	CD
minutes	NNS
and	CC
begin	VB
at	IN
1:30	VB
a.m	RB
.	.

The	DT
show	NN
,	,
despite	IN
a	DT
promising	VBG
start	VB
,	,
has	VBZ
slipped	VBD
badly	RB
in	IN
the	DT
weekly	JJ
ratings	NNS
as	RB
compiled	VBN
by	IN
A.C.	NNP
Nielsen	NNP
Co.	NNP
,	,
finishing	VBG
far	JJ
below	IN
``	``
Tonight	NNP
''	''
on	IN
NBC	NNP
,	,
a	DT
unit	NN
of	IN
General	NNP
Electric	NNP
Co.	NNP
,	,
and	CC
``	``
Nightline	NNP
''	''
on	IN
ABC-TV	NNP
,	,
a	DT
unit	NN
of	IN
Capital	NNP
Cities\/ABC	NNP
Inc	NNP
.	.

Further	JJ
fractioning	VB
the	DT
late-night	JJ
audience	NN
is	VBZ
the	DT
addition	NN
of	IN
the	DT
``	``
Arsenio	VB
Hall	NNP
Show	NNP
,	,
''	''
syndicated	VBN
by	IN
Paramount	NNP
Communications	NNP
Inc	NNP
.	.

Tandem	NNP
Computers	NNPS
Inc.	NNP
,	,
preparing	VBG
to	TO
fight	VB
with	IN
International	NNP
Business	NNP
Machines	NNPS
Corp.	NNP
for	IN
a	DT
piece	NN
of	IN
the	DT
mainframe	NN
business	NN
,	,
said	VBD
it	PRP
expects	VBZ
to	TO
post	NN
higher	JJR
revenue	NN
and	CC
earnings	NNS
for	IN
its	PRP$
fiscal	JJ
fourth	JJ
quarter	NN
ended	VBD
Sept.	NNP
30	CD
.	.

Tandem	NNP
said	VBD
it	PRP
expects	VBZ
to	TO
report	NN
revenue	NN
of	IN
about	IN
$	$
450	CD
million	CD
and	CC
earnings	NNS
of	IN
35	CD
cents	NNS
to	TO
40	CD
cents	NNS
a	DT
share	NN
.	.

The	DT
results	NNS
,	,
which	WDT
are	VBP
in	IN
line	NN
with	IN
analysts	NNS
'	POS
estimates	NNS
,	,
reflect	VB
``	``
a	DT
continued	VBD
improvement	NN
in	IN
our	PRP$
U.S.	NNP
business	NN
,	,
''	''
said	VBD
James	NNP
Treybig	VB
,	,
Tandem	NNP
's	POS
chief	NN
executive	NN
officer	NN
.	.

In	IN
the	DT
year-earlier	JJ
period	NN
,	,
Tandem	NNP
reported	VBN
net	JJ
income	NN
of	IN
$	$
30.1	CD
million	CD
,	,
or	CC
31	CD
cents	NNS
a	DT
share	NN
,	,
on	IN
revenue	NN
of	IN
$	$
383.9	VB
million	CD
.	.

Tandem	NNP
expects	VBZ
to	TO
report	NN
the	DT
full	JJ
results	NNS
for	IN
the	DT
quarter	NN
next	JJ
week	NN
.	.

Analysts	NNS
have	VB
predicted	VBD
that	IN
the	DT
Cupertino	NNP
,	,
Calif.	NNP
,	,
company	NN
will	MD
report	NN
revenue	NN
of	IN
$	$
430	CD
million	CD
to	TO
$	$
460	VB
million	CD
and	CC
earnings	NNS
of	IN
35	CD
cents	NNS
to	TO
40	CD
cents	NNS
a	DT
share	NN
.	.

Commenting	VBG
on	IN
the	DT
results	NNS
for	IN
the	DT
quarter	NN
,	,
Mr.	NNP
Treybig	VB
said	VBD
the	DT
strength	NN
of	IN
the	DT
company	NN
's	POS
domestic	JJ
business	NN
came	VBD
as	RB
``	``
a	DT
surprise	NN
''	''
to	TO
him	PRP
,	,
noting	VBG
that	IN
sales	NNS
``	``
in	IN
every	DT
region	NN
of	IN
the	DT
U.S.	NNP
exceeded	VBN
our	PRP$
plan	VB
.	.
''	''

The	DT
company	NN
's	POS
U.S.	NNP
performance	NN
was	VBD
helped	VBD
by	IN
``	``
a	DT
record	NN
quarter	NN
for	IN
new	JJ
customers	NNS
,	,
''	''
he	PRP
said	VBD
.	.

Tandem	NNP
makes	VBZ
``	``
fault-tolerant	VB
''	''
computers	NNS
--	:
machines	NNS
with	IN
built-in	JJ
backup	NN
systems	NNS
--	:
that	IN
run	VBD
stock	NN
exchanges	NNS
,	,
networks	NNS
of	IN
automatic	JJ
tellers	NNS
and	CC
other	JJ
complex	JJ
computer	NN
systems	NNS
.	.

Tomorrow	NNP
the	DT
company	NN
is	VBZ
scheduled	VBN
to	TO
announce	VB
its	PRP$
most	RBS
powerful	JJ
computer	NN
ever	RB
,	,
which	WDT
for	IN
the	DT
first	JJ
time	NN
will	MD
bring	VB
it	PRP
into	IN
direct	JJ
competition	NN
with	IN
makers	NNS
of	IN
mainframe	NN
computers	NNS
.	.

Tandem	NNP
's	POS
new	JJ
high-end	JJ
computer	NN
is	VBZ
called	VBN
Cyclone	VB
.	.

Prices	NNS
for	IN
the	DT
machine	NN
,	,
which	WDT
can	MD
come	VBP
in	IN
various	JJ
configurations	VB
,	,
are	VBP
$	$
2	LS
million	CD
to	TO
$	$
10	CD
million	CD
.	.

Analysts	NNS
expect	VBP
the	DT
new	JJ
computer	NN
to	TO
wrest	VB
a	DT
hefty	JJ
slice	NN
of	IN
business	NN
away	RB
from	IN
IBM	NNP
,	,
the	DT
longtime	JJ
leader	NN
in	IN
mainframes	NNS
.	.

``	``
We	PRP
believe	VBP
they	PRP
could	MD
siphon	VB
perhaps	RB
two	CD
to	TO
three	CD
billion	CD
dollars	NNS
from	IN
IBM	NNP
''	''
over	IN
the	DT
next	JJ
few	JJ
years	NNS
,	,
said	VBD
George	NNP
Weiss	NNP
,	,
an	DT
analyst	NN
at	IN
the	DT
Gartner	NNP
group	NN
.	.

That	DT
will	MD
spur	VB
Tandem	NNP
's	POS
growth	NN
.	.

``	``
I	PRP
'd	MD
be	VB
disappointed	JJ
if	IN
the	DT
company	NN
grew	VBD
by	IN
less	RBR
than	IN
20	CD
%	NN
next	JJ
year	NN
,	,
''	''
said	VBD
John	NNP
Levinson	NNP
,	,
an	DT
analyst	NN
at	IN
Goldman	NNP
,	,
Sachs	NNP
&	CC
Co	NNP
.	.

IBM	NNP
is	VBZ
expected	VBN
to	TO
respond	VB
to	TO
Tandem	NNP
's	POS
Cyclone	VB
by	IN
discounting	NN
its	PRP$
own	JJ
mainframes	NNS
,	,
which	WDT
analysts	NNS
say	VBP
are	VBP
roughly	RB
three	CD
times	NNS
the	DT
price	NN
of	IN
a	DT
comparable	JJ
system	NN
from	IN
Tandem	NNP
.	.

``	``
Obviously	RB
IBM	NNP
can	MD
give	VBP
bigger	JJR
discounts	NNS
to	TO
users	NNS
immediately	RB
,	,
''	''
said	VBD
Mr.	NNP
Weiss	NNP
.	.

But	CC
Mr.	NNP
Treybig	VB
questions	NNS
whether	IN
that	IN
will	MD
be	VB
enough	RB
to	TO
stop	VB
Tandem	NNP
's	POS
first	JJ
mainframe	NN
from	IN
taking	VBG
on	IN
some	DT
of	IN
the	DT
functions	NNS
that	IN
large	JJ
organizations	NNS
previously	RB
sought	VBD
from	IN
Big	NNP
Blue	NNP
's	POS
machines	NNS
.	.

``	``
The	DT
answer	NN
is	VBZ
n't	RB
price	NN
reductions	NNS
,	,
but	CC
new	JJ
systems	NNS
,	,
''	''
he	PRP
said	VBD
.	.

Nevertheless	RB
,	,
Tandem	NNP
faces	VBZ
a	DT
variety	NN
of	IN
challenges	NNS
,	,
the	DT
biggest	JJS
being	VBG
that	IN
customers	NNS
generally	RB
view	NN
the	DT
company	NN
's	POS
computers	NNS
as	RB
complementary	JJ
to	TO
IBM	NNP
's	POS
mainframes	NNS
.	.

Even	RB
Mr.	NNP
Treybig	VB
is	VBZ
reluctant	JJ
to	TO
abandon	VB
this	DT
notion	NN
,	,
insisting	VBG
that	IN
Tandem	NNP
's	POS
new	JJ
machines	NNS
are	VBP
n't	RB
replacements	NNS
for	IN
IBM	NNP
's	POS
mainframes	NNS
.	.

``	``
We	PRP
're	VBP
after	IN
a	DT
little	RB
bigger	JJR
niche	NN
,	,
''	''
he	PRP
said	VBD
.	.

Do	VB
n't	RB
jump	NN
yet	RB
.	.

The	DT
stock	NN
market	NN
's	POS
swoon	NN
may	MD
turn	VBP
out	IN
to	TO
be	VB
good	JJ
news	NN
for	IN
the	DT
economy	NN
.	.

In	IN
one	CD
wild	JJ
hour	NN
of	IN
trading	NN
,	,
the	DT
market	NN
managed	VBD
to	TO
accomplish	VB
what	WP
the	DT
Bush	NNP
administration	NN
has	VBZ
been	VBN
trying	VBG
to	TO
do	VB
,	,
unsuccessfully	RB
,	,
for	IN
weeks	NNS
.	.

It	NNP
is	VBZ
forcing	VBG
the	DT
Federal	NNP
Reserve	NNP
to	TO
ease	VB
its	PRP$
grip	NN
on	IN
credit	NN
and	CC
it	PRP
took	VBD
the	DT
wind	NN
out	IN
of	IN
a	DT
previously	RB
irrepressible	VB
dollar	NN
.	.

The	DT
resulting	VBG
decline	NN
in	IN
interest	NN
rates	NNS
and	CC
the	DT
value	NN
of	IN
the	DT
dollar	NN
could	MD
reinvigorate	VB
American	JJ
business	NN
--	:
indeed	RB
,	,
the	DT
entire	JJ
economy	NN
.	.

This	DT
may	MD
sound	NN
strangely	VB
optimistic	JJ
.	.

After	IN
all	DT
,	,
until	IN
a	DT
few	JJ
years	NNS
ago	IN
,	,
the	DT
stock	NN
market	NN
was	VBD
viewed	VBN
as	RB
a	DT
barometer	NN
of	IN
the	DT
national	JJ
economy	NN
.	.

When	WRB
it	PRP
went	VBD
down	IN
,	,
by	IN
all	DT
tradition	NN
,	,
the	DT
economy	NN
followed	VBN
.	.

That	DT
has	VBZ
changed	VBN
,	,
partly	RB
because	IN
the	DT
two	CD
years	NNS
following	VBG
the	DT
worst	JJS
stock-market	NN
plunge	NN
in	IN
history	NN
have	VB
been	VBN
reasonably	RB
comfortable	JJ
.	.

The	DT
1987	CD
crash	VB
was	VBD
``	``
a	DT
false	JJ
alarm	NN
however	RB
you	PRP
view	NN
it	PRP
,	,
''	''
says	VBZ
University	NNP
of	IN
Chicago	NNP
economist	NN
Victor	NNP
Zarnowitz	VB
.	.

The	DT
market	NN
seems	VBZ
increasingly	RB
disconnected	VBN
from	IN
the	DT
rest	NN
of	IN
the	DT
nation	NN
.	.

Its	PRP$
spasms	NNS
ca	MD
n't	RB
be	VB
traced	VBD
to	TO
fundamental	JJ
business	NN
conditions	NNS
,	,
nor	CC
do	VB
they	PRP
appear	VB
to	TO
presage	VB
major	JJ
shifts	NNS
in	IN
the	DT
economy	NN
.	.

``	``
The	DT
market	NN
today	NN
has	VBZ
a	DT
life	NN
of	IN
its	PRP$
own	JJ
,	,
''	''
John	NNP
Akers	VB
,	,
chairman	NN
of	IN
International	NNP
Business	NNP
Machines	NNPS
Corp.	NNP
,	,
said	VBD
Saturday	NNP
.	.

``	``
There	EX
's	POS
nothing	NN
rational	JJ
about	IN
this	DT
kind	NN
of	IN
action	NN
.	.
''	''

Of	IN
course	NN
,	,
the	DT
health	NN
of	IN
the	DT
economy	NN
will	MD
be	VB
threatened	VBN
if	IN
the	DT
market	NN
continues	VBZ
to	TO
dive	NN
this	DT
week	NN
.	.

Sharply	IN
falling	VBG
stock	NN
prices	NNS
do	VB
reduce	VB
consumer	NN
wealth	NN
,	,
damage	NN
business	NN
confidence	NN
and	CC
discourage	VB
the	DT
foreign	JJ
investors	NNS
upon	IN
whom	WP
the	DT
U.S.	NNP
now	RB
relies	VBZ
for	IN
financial	JJ
sustenance	VB
.	.

The	DT
financial-services	NNS
industry	NN
was	VBD
battered	VBN
by	IN
the	DT
1987	CD
crash	VB
.	.

What	WP
's	POS
more	RBR
,	,
although	IN
the	DT
stock	NN
market	NN
is	VBZ
far	JJ
less	RBR
overvalued	VBN
today	NN
than	IN
two	CD
years	NNS
ago	IN
,	,
the	DT
U.S.	NNP
economy	NN
is	VBZ
weaker	JJR
.	.

Growth	NNP
is	VBZ
slower	JJR
.	.

Profits	NNPS
are	VBP
softer	JJR
.	.

Debt	NNP
burdens	NNS
are	VBP
heavier	JJR
.	.

But	CC
if	IN
the	DT
stock	NN
market	NN
does	VBZ
n't	RB
continue	VB
to	TO
plummet	VBP
,	,
the	DT
beneficial	JJ
effects	NNS
of	IN
lower	JJR
interest	NN
rates	NNS
and	CC
a	DT
lower	JJR
dollar	NN
may	MD
well	RB
dominate	VBP
.	.

The	DT
Fed	NNP
,	,
which	WDT
until	IN
Friday	NNP
had	VBD
been	VBN
resisting	VBG
moves	NNS
to	TO
ease	VB
credit	NN
,	,
is	VBZ
now	RB
poised	VBN
to	TO
pour	VB
money	NN
into	IN
the	DT
economy	NN
if	IN
needed	VBN
to	TO
soothe	VB
the	DT
markets	NNS
.	.

Fed	NNP
officials	NNS
may	MD
protest	NN
that	IN
this	DT
does	VBZ
n't	RB
necessarily	RB
mean	VB
a	DT
fundamental	JJ
change	NN
in	IN
their	PRP$
interest-rate	NN
policies	NNS
.	.

But	CC
the	DT
experience	NN
of	IN
the	DT
1987	CD
crash	VB
suggests	VBZ
the	DT
Fed	NNP
is	VBZ
likely	JJ
to	TO
bring	VB
down	IN
short-term	JJ
interest	NN
rates	NNS
in	IN
its	PRP$
effort	NN
to	TO
calm	JJ
markets	NNS
.	.

Anticipating	VBG
the	DT
Fed	NNP
's	POS
move	NN
,	,
money	NN
traders	NNS
lowered	VBD
a	DT
key	NN
interest	NN
rate	NN
known	VBN
as	RB
the	DT
Federal	NNP
Funds	NNS
rate	NN
to	TO
8.625	CD
%	NN
late	JJ
Friday	NNP
,	,
down	IN
from	IN
8.820	VB
%	NN
the	DT
day	NN
before	IN
.	.

Tiny	IN
movements	NNS
in	IN
the	DT
rate	NN
,	,
which	WDT
is	VBZ
what	WP
banks	NNS
charge	NN
each	DT
other	JJ
for	IN
overnight	JJ
loans	NNS
,	,
are	VBP
usually	RB
among	IN
the	DT
few	JJ
visible	JJ
tracks	VBZ
that	IN
the	DT
Fed	NNP
leaves	VBZ
on	IN
the	DT
monetary	JJ
markets	NNS
.	.

The	DT
dollar	NN
also	RB
began	VBD
to	TO
decline	NN
Friday	NNP
as	RB
the	DT
stock	NN
market	NN
's	POS
plunge	NN
caused	VBN
some	DT
investors	NNS
to	TO
reassess	NN
their	PRP$
desire	NN
to	TO
invest	VB
in	IN
the	DT
U.S.	NNP
.	.

Treasury	NNP
officials	NNS
have	VB
been	VBN
arguing	VBG
for	IN
months	NNS
that	IN
the	DT
dollar	NN
's	POS
strength	NN
was	VBD
out	IN
of	IN
whack	VB
with	IN
economic	JJ
fundamentals	NNS
,	,
threatening	VBG
to	TO
extinguish	VB
the	DT
export	NN
boom	NN
that	IN
has	VBZ
sustained	VBN
manufacturers	NNS
for	IN
several	JJ
years	NNS
.	.

The	DT
market	NN
drop	NN
has	VBZ
now	RB
apparently	RB
convinced	JJ
foreign	JJ
investors	NNS
that	IN
the	DT
Treasury	NNP
was	VBD
right	RB
about	IN
the	DT
overpriced	VBN
dollar	NN
.	.

A	DT
modest	JJ
drop	NN
in	IN
the	DT
dollar	NN
--	:
only	RB
a	DT
modest	JJ
one	CD
,	,
mind	NN
you	PRP
--	:
would	MD
be	VB
welcomed	VBD
by	IN
the	DT
U.S.	NNP
.	.

That	DT
was	VBD
n't	RB
the	DT
case	NN
in	IN
1987	CD
,	,
when	WRB
the	DT
dollar	NN
was	VBD
so	RB
weak	JJ
that	IN
some	DT
economists	NNS
and	CC
government	NN
officials	NNS
seriously	RB
worried	VBN
that	IN
it	PRP
might	MD
collapse	NN
,	,
producing	VBG
panic	NN
among	IN
foreign	JJ
investors	NNS
and	CC
diminishing	VBG
the	DT
flow	VB
of	IN
foreign	JJ
capital	NN
to	TO
the	DT
U.S.	NNP
.	.

Another	DT
big	JJ
difference	NN
between	IN
1987	CD
and	CC
1989	CD
is	VBZ
n't	RB
so	RB
comforting	JJ
.	.

In	IN
the	DT
third	JJ
quarter	NN
of	IN
1987	CD
,	,
the	DT
economy	NN
spurted	VBN
at	IN
an	DT
inflation-adjusted	JJ
annual	JJ
rate	NN
of	IN
5.3	CD
%	NN
.	.

The	DT
consensus	NN
among	IN
economists	NNS
is	VBZ
that	IN
it	PRP
grew	VBD
a	DT
much	JJ
more	RBR
sluggish	JJ
2.3	CD
%	NN
in	IN
the	DT
third	JJ
quarter	NN
of	IN
1989	CD
,	,
which	WDT
ended	VBD
two	CD
weeks	NNS
ago	IN
.	.

The	DT
plunge	NN
in	IN
stock	NN
prices	NNS
``	``
is	VBZ
happening	VBG
at	IN
a	DT
time	NN
when	WRB
the	DT
economy	NN
has	VBZ
already	RB
slowed	VBN
down	IN
,	,
''	''
says	VBZ
economist	NN
Lawrence	NNP
Chimerine	VB
of	IN
WEFA	NNP
Group	NNP
,	,
a	DT
Bala	VB
Cynwyd	VB
,	,
Pa.	NNP
,	,
forecasting	NN
company	NN
.	.

``	``
A	DT
lot	NN
of	IN
pent-up	JJ
demand	VBP
is	VBZ
gone	VBN
.	.
''	''

Consumer	NNP
spending	NN
did	VBD
drop	NN
in	IN
the	DT
months	NNS
following	VBG
Black	NNP
Monday	NNP
1987	CD
--	:
``	``
but	CC
only	RB
slightly	RB
and	CC
for	IN
a	DT
short	JJ
period	NN
of	IN
time	NN
,	,
''	''
recalls	VBZ
Mr.	NNP
Zarnowitz	VB
,	,
a	DT
longtime	JJ
student	NN
of	IN
business	NN
cycles	NNS
.	.

``	``
That	DT
was	VBD
offset	VB
by	IN
strength	NN
elsewhere	RB
.	.

{	(
The	DT
effects	NNS
}	)
were	VBD
much	JJ
less	RBR
severe	JJ
and	CC
less	RBR
prolonged	JJ
than	IN
some	DT
had	VBD
feared	VBD
or	CC
expected	VBN
.	.

''	''
Today	NN
,	,
he	PRP
frets	VBZ
,	,
exports	NNS
and	CC
business	NN
investment	NN
spending	NN
may	MD
be	VB
insufficient	JJ
to	TO
pick	VB
up	RP
the	DT
slack	NN
if	IN
stock	NN
prices	NNS
sink	VB
this	DT
week	NN
and	CC
if	IN
consumers	NNS
retrench	VB
in	IN
reaction	NN
.	.

What	WP
's	POS
more	RBR
,	,
the	DT
corporate	JJ
borrowing	VBG
binge	NN
has	VBZ
n't	RB
abated	VBD
in	IN
the	DT
past	IN
two	CD
years	NNS
.	.

``	``
We	PRP
've	VBP
had	VBD
two	CD
more	RBR
years	NNS
of	IN
significant	JJ
accumulation	NN
of	IN
debt	NN
...	:
just	RB
at	IN
the	DT
time	NN
when	WRB
earnings	NNS
are	VBP
being	VBG
squeezed	VBN
,	,
''	''
Mr.	NNP
Chimerine	VB
notes	NNS
.	.

The	DT
more	JJR
a	DT
company	NN
relies	VBZ
on	IN
borrowed	VBN
money	NN
,	,
the	DT
greater	JJR
its	PRP$
sensitivity	NN
to	TO
an	DT
economic	JJ
slowdown	NN
.	.

A	DT
company	NN
with	IN
a	DT
strong	JJ
balance	NN
sheet	NN
can	MD
withstand	VB
an	DT
unanticipated	JJ
storm	NN
;	:
a	DT
highly	RB
leveraged	JJ
company	NN
may	MD
end	NN
up	RP
in	IN
bankruptcy	NN
court	NN
.	.

The	DT
Fed	NNP
,	,
of	IN
course	NN
,	,
knows	VBZ
that	IN
very	RB
well	RB
--	:
hence	RB
its	PRP$
readiness	NN
to	TO
pump	VB
credit	NN
into	IN
the	DT
economy	NN
this	DT
morning	NN
.	.

But	CC
,	,
in	IN
the	DT
process	NN
,	,
the	DT
Fed	NNP
risks	NNS
reigniting	VB
inflation	NN
.	.

Even	RB
before	IN
Friday	NNP
's	POS
events	NNS
,	,
Harvard	NNP
University	NNP
economist	NN
Benjamin	NNP
Friedman	NNP
was	VBD
arguing	VBG
that	IN
the	DT
Fed	NNP
wo	MD
n't	RB
be	VB
able	JJ
to	TO
live	VB
up	RP
to	TO
its	PRP$
tough	JJ
words	NNS
on	IN
eliminating	VBG
inflation	NN
because	IN
of	IN
its	PRP$
responsibility	NN
to	TO
protect	VB
fragile	JJ
financial	JJ
markets	NNS
,	,
banks	NNS
and	CC
highly	RB
leveraged	JJ
corporations	NNS
.	.

The	DT
biggest	JJS
threat	NN
on	IN
the	DT
economic	JJ
horizon	NN
right	RB
now	RB
is	VBZ
n't	RB
recession	NN
,	,
he	PRP
reasons	NNS
;	:
it	PRP
's	POS
an	DT
outbreak	NN
of	IN
uncontrolled	JJ
inflation	NN
.	.

In	IN
the	DT
end	NN
,	,
the	DT
1987	CD
collapse	NN
suggested	VBN
,	,
the	DT
economy	NN
does	VBZ
n't	RB
move	NN
in	IN
lockstep	VB
with	IN
stock	NN
prices	NNS
.	.

The	DT
economy	NN
does	VBZ
,	,
however	RB
,	,
depend	VBP
on	IN
the	DT
confidence	NN
of	IN
businesses	NNS
,	,
consumers	NNS
and	CC
foreign	JJ
investors	NNS
.	.

A	DT
panic	NN
on	IN
Wall	NNP
Street	NNP
does	VBZ
n't	RB
exactly	RB
inspire	VB
confidence	NN
.	.

Surveys	NNS
suggested	VBN
that	IN
consumer	NN
confidence	NN
was	VBD
high	JJ
before	IN
Friday	NNP
.	.

A	DT
190-point	JJ
drop	NN
is	VBZ
n't	RB
likely	JJ
to	TO
make	VBP
much	JJ
of	IN
a	DT
dent	NN
;	:
multiply	VB
that	IN
a	DT
few	JJ
times	NNS
over	IN
,	,
though	IN
,	,
and	CC
it	PRP
will	MD
.	.

If	IN
the	DT
reactions	NNS
of	IN
executives	NNS
gathered	VBD
Saturday	NNP
at	IN
Hot	NNP
Springs	NNP
,	,
Va.	NNP
,	,
for	IN
the	DT
Business	NNP
Council	NNP
meetings	NNS
are	VBP
typical	JJ
,	,
business	NN
leaders	NNS
were	VBD
n't	RB
overly	RB
rattled	VBN
by	IN
Friday	NNP
's	POS
decline	NN
.	.

And	CC
if	IN
foreign	JJ
investors	NNS
become	VB
a	DT
tad	RB
more	RBR
cautious	JJ
--	:
well	RB
,	,
the	DT
dollar	NN
's	POS
recent	JJ
strength	NN
suggests	VBZ
that	IN
the	DT
U.S.	NNP
can	MD
stand	VB
it	PRP
.	.

On	IN
the	DT
bottom	NN
line	NN
,	,
the	DT
most	RBS
comforting	JJ
fact	NN
for	IN
the	DT
economic	JJ
outlook	NN
is	VBZ
that	IN
we	PRP
've	VBP
been	VBN
through	IN
this	DT
before	IN
.	.

Two	CD
years	NNS
ago	IN
,	,
about	IN
the	DT
only	RB
point	VBP
of	IN
comparison	NN
was	VBD
the	DT
1929	CD
crash	VB
and	CC
the	DT
subsequent	JJ
Depression	NN
.	.

The	DT
doomsayers	NNS
had	VBD
a	DT
receptive	JJ
audience	NN
.	.

The	DT
prosperity	NN
that	IN
followed	VBN
Black	NNP
Monday	NNP
permits	NNS
a	DT
more	RBR
optimistic	JJ
view	NN
today	NN
.	.

At	IN
the	DT
very	RB
least	JJS
,	,
the	DT
establishment	NN
here	RB
is	VBZ
taking	VBG
comfort	NN
from	IN
the	DT
nation	NN
's	POS
success	NN
in	IN
handling	VBG
the	DT
last	JJ
go-around	NN
.	.

As	IN
Sen.	NNP
Lloyd	NNP
Bentsen	NNP
(	(
D.	NNP
,	,
Texas	NNP
)	)
observed	VBD
yesterday	NN
,	,
``	``
The	DT
Fed	NNP
avoided	VBN
a	DT
meltdown	NN
last	JJ
time	NN
.	.

They	PRP
are	VBP
more	RBR
sophisticated	JJ
this	DT
time	NN
.	.

The	DT
chemical	NN
industry	NN
is	VBZ
expected	VBN
to	TO
report	NN
that	IN
profits	NNS
eroded	VBN
in	IN
the	DT
third	JJ
quarter	NN
because	IN
of	IN
skidding	VB
prices	NNS
in	IN
the	DT
commodity	NN
end	NN
of	IN
the	DT
business	NN
.	.

Producers	NNP
of	IN
commodity	NN
chemicals	NNS
,	,
the	DT
basic	JJ
chemicals	NNS
produced	VBD
in	IN
huge	JJ
volumes	NNS
for	IN
other	JJ
manufacturers	NNS
,	,
have	VB
seen	VBN
sharp	JJ
inventory	NN
cutting	VBG
by	IN
buyers	NNS
.	.

Once	IN
the	DT
chief	JJ
beneficiaries	NNS
of	IN
the	DT
industry	NN
's	POS
now	RB
fading	JJ
boom	NN
,	,
these	DT
producers	NNS
also	RB
will	MD
be	VB
reporting	VBG
against	IN
exceptionally	RB
strong	JJ
performances	NNS
in	IN
the	DT
1988	CD
third	JJ
quarter	NN
.	.

``	``
For	IN
some	DT
of	IN
these	DT
companies	NNS
,	,
this	DT
will	MD
be	VB
the	DT
first	JJ
quarter	NN
with	IN
year-to-year	JJ
negative	JJ
comparisons	NNS
,	,
''	''
says	VBZ
Leonard	NNP
Bogner	VB
,	,
a	DT
chemical	NN
industry	NN
analyst	NN
at	IN
Prudential	NNP
Bache	NNP
Research	NNP
.	.

``	``
This	DT
could	MD
be	VB
the	DT
first	JJ
of	IN
five	CD
or	CC
six	CD
down	IN
quarters	NNS
.	.
''	''

Perhaps	RB
most	RBS
prominent	JJ
,	,
Dow	NNP
Chemical	NNP
Co.	NNP
,	,
which	WDT
as	RB
of	IN
midyear	NN
had	VBD
racked	VBN
up	RP
eight	CD
consecutive	JJ
record	NN
quarters	NNS
,	,
is	VBZ
expected	VBN
to	TO
report	NN
that	IN
profit	NN
decreased	VBD
in	IN
the	DT
latest	JJS
quarter	NN
from	IN
a	DT
year	NN
earlier	JJR
,	,
if	IN
only	RB
by	IN
a	DT
shade	NN
.	.

Though	IN
Dow	NNP
has	VBZ
aggressively	RB
diversified	JJ
into	IN
specialty	NN
chemicals	NNS
and	CC
pharmaceuticals	NNS
,	,
the	DT
company	NN
still	RB
has	VBZ
a	DT
big	JJ
stake	NN
in	IN
polyethylene	NN
,	,
which	WDT
is	VBZ
used	VBN
in	IN
packaging	NN
and	CC
housewares	NNS
.	.

Analysts	NNS
'	POS
third-quarter	NN
estimates	NNS
for	IN
the	DT
Midland	NNP
,	,
Mich.	NNP
,	,
company	NN
are	VBP
between	IN
$	$
3.20	CD
a	DT
share	NN
and	CC
$	$
3.30	CD
a	DT
share	NN
,	,
compared	VBN
with	IN
$	$
3.36	CD
a	DT
year	NN
ago	IN
,	,
when	WRB
profit	NN
was	VBD
$	$
632	CD
million	CD
on	IN
sales	NNS
of	IN
$	$
4.15	CD
billion	CD
.	.

A	DT
Dow	NNP
spokeswoman	NN
declined	VBD
to	TO
comment	NN
on	IN
the	DT
estimates	NNS
.	.

At	IN
the	DT
investment	NN
firm	NN
of	IN
Smith	NNP
Barney	NNP
,	,
Harris	NNP
Upham	NNP
&	CC
Co.	NNP
,	,
the	DT
commodity-chemical	NN
segment	NN
is	VBZ
seen	VBN
pulling	VBG
down	IN
overall	JJ
profit	NN
for	IN
20	CD
companies	NNS
representative	NN
of	IN
the	DT
whole	JJ
industry	NN
by	IN
8	CD
%	NN
to	TO
10	CD
%	NN
.	.

``	``
You	PRP
will	MD
find	VB
the	DT
commodities	NNS
off	RP
more	RBR
than	IN
the	DT
others	NNS
and	CC
the	DT
diversified	JJ
companies	NNS
about	IN
even	RB
or	CC
slightly	RB
better	RB
,	,
''	''
says	VBZ
James	NNP
Wilbur	NNP
,	,
a	DT
Smith	NNP
Barney	NNP
analyst	NN
.	.

First	NNP
Boston	NNP
Corp.	NNP
projects	NNS
that	IN
10	CD
of	IN
the	DT
15	CD
companies	NNS
it	PRP
follows	VBZ
will	MD
report	NN
lower	JJR
profit	NN
.	.

Most	RBS
of	IN
the	DT
10	CD
have	VB
big	JJ
commodity-chemical	VB
operations	NNS
.	.

Still	RB
,	,
some	DT
industry	NN
giants	NNS
are	VBP
expected	VBN
to	TO
report	NN
continuing	VBG
gains	NNS
,	,
largely	RB
because	IN
so	RB
much	JJ
of	IN
their	PRP$
business	NN
is	VBZ
outside	JJ
commodity	NN
chemicals	NNS
.	.

Du	NNP
Pont	NNP
Co.	NNP
is	VBZ
thought	VBN
to	TO
have	VB
had	VBD
steady	JJ
profit	NN
growth	NN
in	IN
white	JJ
pigments	VB
,	,
fibers	NNS
and	CC
polymers	NNS
.	.

Moreover	RB
,	,
the	DT
Wilmington	NNP
,	,
Del.	NNP
,	,
company	NN
is	VBZ
helped	VBD
when	WRB
prices	NNS
weaken	VB
on	IN
the	DT
commodity	NN
chemicals	NNS
it	PRP
buys	NNS
for	IN
its	PRP$
own	JJ
production	NN
needs	VBZ
,	,
such	JJ
as	RB
ethylene	NN
.	.

Analysts	NNS
are	VBP
divided	VBN
over	IN
whether	IN
Du	NNP
Pont	NNP
will	MD
report	NN
much	JJ
of	IN
a	DT
gain	NN
in	IN
the	DT
latest	JJS
quarter	NN
from	IN
its	PRP$
Conoco	NNP
Inc.	NNP
oil	NN
company	NN
.	.

The	DT
estimates	NNS
for	IN
Du	NNP
Pont	NNP
range	NN
from	IN
$	$
2.25	CD
to	TO
$	$
2.45	CD
a	DT
share	NN
.	.

In	IN
the	DT
1988	CD
third	JJ
quarter	NN
,	,
the	DT
company	NN
earned	VBN
$	$
461	CD
million	CD
,	,
or	CC
$	$
1.91	CD
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
7.99	CD
billion	CD
.	.

Du	NNP
Pont	NNP
declined	VBD
to	TO
comment	NN
.	.

Monsanto	NNP
Co.	NNP
,	,
too	RB
,	,
is	VBZ
expected	VBN
to	TO
continue	VB
reporting	VBG
higher	JJR
profit	NN
,	,
even	RB
though	IN
its	PRP$
sales	NNS
of	IN
crop	NN
chemicals	NNS
were	VBD
hurt	VBN
in	IN
the	DT
latest	JJS
quarter	NN
by	IN
drought	NN
in	IN
northern	JJ
Europe	NNP
and	CC
the	DT
western	JJ
U.S.	NNP
.	.

The	DT
St.	NNP
Louis-based	JJ
company	NN
is	VBZ
expected	VBN
to	TO
report	NN
again	RB
that	IN
losses	NNS
in	IN
its	PRP$
G.D.	NNP
Searle	NNP
&	CC
Co.	NNP
pharmaceutical	JJ
business	NN
are	VBP
narrowing	VBG
.	.

Searle	NNP
continued	VBD
to	TO
operate	VB
in	IN
the	DT
red	JJ
through	IN
the	DT
first	JJ
half	DT
of	IN
the	DT
year	NN
,	,
but	CC
Monsanto	NNP
has	VBZ
said	VBD
it	PRP
expects	VBZ
Searle	NNP
to	TO
post	NN
a	DT
profit	NN
for	IN
all	DT
of	IN
1989	CD
.	.

Most	RBS
estimates	NNS
for	IN
Monsanto	NNP
run	VBD
between	IN
$	$
1.70	CD
and	CC
$	$
2	LS
a	DT
share	NN
.	.

A	DT
year	NN
ago	IN
,	,
the	DT
company	NN
posted	VBD
third-quarter	NN
profit	NN
of	IN
$	$
116	CD
million	CD
,	,
or	CC
$	$
1.67	CD
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
2.02	CD
billion	CD
.	.

Monsanto	NNP
declined	VBD
to	TO
comment	NN
.	.

But	CC
the	DT
commodity-chemical	VB
producers	NNS
are	VBP
caught	VBN
on	IN
the	DT
downside	NN
of	IN
a	DT
pricing	NN
cycle	NN
.	.

By	IN
some	DT
accounts	NNS
on	IN
Wall	NNP
Street	NNP
and	CC
in	IN
the	DT
industry	NN
,	,
the	DT
inventory	NN
reductions	NNS
are	VBP
near	IN
an	DT
end	NN
,	,
which	WDT
may	MD
presage	VB
firmer	JJR
demand	VBP
.	.

But	CC
doubters	NNS
say	VBP
growing	VBG
production	NN
capacity	NN
could	MD
keep	VB
pressure	NN
on	IN
prices	NNS
into	IN
the	DT
early	RB
1990s	CD
.	.

In	IN
the	DT
latest	JJS
quarter	NN
,	,
at	IN
least	JJS
,	,
profit	NN
is	VBZ
expected	VBN
to	TO
fall	VB
sharply	RB
.	.

For	IN
Himont	NNP
Inc.	NNP
,	,
``	``
how	WRB
far	RB
down	RB
it	PRP
is	VBZ
,	,
we	PRP
do	VBP
n't	RB
know	VB
,	,
''	''
says	VBZ
Leslie	NNP
Ravitz	NNP
at	IN
Salomon	NNP
Brothers	NNPS
.	.

The	DT
projections	NNS
are	VBP
in	IN
the	DT
neighborhood	NN
of	IN
50	CD
cents	NNS
a	DT
share	NN
to	TO
75	CD
cents	NNS
,	,
compared	VBN
with	IN
a	DT
restated	VBD
$	$
1.65	CD
a	DT
share	NN
a	DT
year	NN
earlier	JJR
,	,
when	WRB
profit	NN
was	VBD
$	$
107.8	VB
million	CD
on	IN
sales	NNS
of	IN
$	$
435.5	CD
million	CD
.	.

Himont	NNP
faces	VBZ
lower	JJR
prices	NNS
for	IN
its	PRP$
mainstay	NN
product	NN
,	,
polypropylene	NN
,	,
while	IN
it	PRP
goes	VBZ
forward	RB
with	IN
a	DT
heavy	JJ
capital	NN
investment	NN
program	NN
to	TO
bolster	VB
its	PRP$
raw	JJ
material	NN
supply	VB
and	CC
develop	VB
new	JJ
uses	NNS
for	IN
polypropylene	NN
,	,
whose	WP$
markets	NNS
include	VB
the	DT
packaging	NN
and	CC
automobile	NN
industries	NNS
.	.

The	DT
company	NN
,	,
based	VBN
in	IN
Wilmington	NNP
,	,
Del.	NNP
,	,
is	VBZ
81%-owned	JJ
by	IN
Montedison	NNP
S.p	NNP
.	.
A.	NNP
,	,
Milan	NNP
,	,
which	WDT
has	VBZ
an	DT
offer	NN
outstanding	JJ
for	IN
the	DT
Himont	NNP
shares	NNS
it	PRP
does	VBZ
n't	RB
already	RB
own	JJ
.	.

At	IN
Quantum	NNP
Chemical	NNP
Corp.	NNP
,	,
New	NNP
York	NNP
,	,
the	DT
trouble	NN
is	VBZ
lower	JJR
prices	NNS
for	IN
polyethylene	NN
,	,
higher	JJR
debt	NN
costs	NNS
and	CC
the	DT
idling	VBG
of	IN
an	DT
important	JJ
plant	NN
due	JJ
to	TO
an	DT
explosion	NN
.	.

Some	DT
analysts	NNS
hedge	NN
their	PRP$
estimates	NNS
for	IN
Quantum	NNP
,	,
because	IN
it	PRP
is	VBZ
n't	RB
known	VBN
when	WRB
the	DT
company	NN
will	MD
book	NN
certain	JJ
one-time	JJ
charges	VBZ
.	.

But	CC
the	DT
estimates	NNS
range	NN
from	IN
break-even	JJ
to	TO
35	CD
cents	NNS
a	DT
share	NN
.	.

In	IN
the	DT
1988	CD
third	JJ
quarter	NN
,	,
Quantum	NNP
earned	VBN
$	$
99.8	VB
million	CD
,	,
or	CC
$	$
3.92	CD
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
724.4	CD
million	CD
.	.

Another	DT
big	JJ
polyethylene	NN
producer	NN
,	,
Union	NNP
Carbide	NNP
Corp.	NNP
,	,
is	VBZ
expected	VBN
to	TO
post	VB
profit	NN
of	IN
between	IN
$	$
1	CD
a	DT
share	NN
and	CC
$	$
1.25	CD
,	,
compared	VBN
with	IN
$	$
1.56	CD
a	DT
share	NN
a	DT
year	NN
earlier	JJR
,	,
when	WRB
the	DT
company	NN
earned	VBN
$	$
213	CD
million	CD
on	IN
sales	NNS
of	IN
$	$
2.11	CD
billion	CD
.	.

Himont	NNP
,	,
Quantum	NNP
and	CC
Union	NNP
Carbide	NNP
all	DT
declined	VBD
to	TO
comment	NN
.	.

The	DT
following	JJ
were	VBD
among	IN
Friday	NNP
's	POS
offerings	NNS
and	CC
pricings	NNS
in	IN
the	DT
U.S.	NNP
and	CC
non-U.S.	JJ
capital	NN
markets	NNS
,	,
with	IN
terms	NNS
and	CC
syndicate	NN
manager	NN
,	,
as	RB
compiled	VBN
by	IN
Dow	NNP
Jones	NNP
Capital	NNP
Markets	NNPS
Report	NNP
:	:

Dow	NNP
Chemical	NNP
Co.	NNP
--	:

$	$
150	CD
million	CD
of	IN
8.55	CD
%	NN
senior	JJ
notes	NNS
due	JJ
Oct.	NNP
15	CD
,	,
2009	CD
,	,
priced	VBN
at	IN
par	JJ
.	.

The	DT
issue	NN
,	,
which	WDT
is	VBZ
puttable	JJ
back	RB
to	TO
the	DT
company	NN
at	IN
par	JJ
on	IN
Oct.	NNP
15	CD
,	,
1999	CD
,	,
was	VBD
priced	VBN
at	IN
a	DT
spread	VBD
of	IN
50	CD
basis	NN
points	NNS
above	IN
the	DT
Treasury	NNP
's	POS
10-year	JJ
note	NN
.	.

Rated	VBN
single-A-1	JJ
by	IN
Moody	NNP
's	POS
Investors	NNS
Service	NNP
Inc.	NNP
and	CC
single-A	NNP
by	IN
Standard	NNP
&	CC
Poor	NNP
's	POS
Corp.	NNP
,	,
the	DT
non-callable	JJ
issue	NN
will	MD
be	VB
sold	VBN
through	IN
underwriters	NNS
led	VBN
by	IN
Merrill	NNP
Lynch	NNP
Capital	NNP
Markets	NNPS
.	.

Centel	IN
Capital	NNP
Corp.	NNP
--	:

$	$
150	CD
million	CD
of	IN
9	CD
%	NN
debentures	NNS
due	JJ
Oct.	NNP
15	CD
,	,
2019	CD
,	,
priced	VBN
at	IN
99.943	VB
to	TO
yield	VB
9.008	VB
%	NN
.	.

The	DT
non-callable	JJ
issue	NN
,	,
which	WDT
can	MD
be	VB
put	VBN
back	RB
to	TO
the	DT
company	NN
in	IN
1999	CD
,	,
was	VBD
priced	VBN
at	IN
99	CD
basis	NN
points	NNS
above	IN
the	DT
Treasury	NNP
's	POS
10-year	JJ
note	NN
.	.

Rated	VBN
Baa-1	JJ
by	IN
Moody	NNP
's	POS
and	CC
triple-B-plus	JJ
by	IN
S&P	NNP
,	,
the	DT
issue	NN
will	MD
be	VB
sold	VBN
through	IN
underwriters	NNS
led	VBN
by	IN
Morgan	NNP
Stanley	NNP
&	CC
Co	NNP
.	.

Federal	NNP
Home	NNP
Loan	NNP
Mortgage	NNP
Corp.	NNP
--	:

$	$
500	CD
million	CD
of	IN
Remic	NNP
mortgage	NN
securities	NNS
offered	VBD
in	IN
13	CD
classes	NNS
by	IN
Prudential-Bache	NNP
Securities	NNPS
Inc	NNP
.	.

The	DT
offering	NN
,	,
Series	NNP
102	CD
,	,
backed	VBN
by	IN
Freddie	NNP
Mac	NNP
8	CD
1\/2	CD
%	NN
securities	NNS
with	IN
a	DT
weighted	JJ
average	NN
remaining	VBG
term	NN
to	TO
maturity	NN
of	IN
28.4	CD
years	NNS
,	,
was	VBD
priced	VBN
before	IN
the	DT
market	NN
's	POS
afternoon	NN
surge	NN
.	.

Among	IN
classes	NNS
for	IN
which	WDT
details	NNS
were	VBD
available	JJ
,	,
yields	NNS
ranged	VBD
from	IN
8.78	VB
%	NN
,	,
or	CC
75	CD
basis	NN
points	NNS
over	IN
two-year	JJ
Treasury	NNP
securities	NNS
,	,
to	TO
10.05	CD
%	NN
,	,
or	CC
200	CD
basis	NN
points	NNS
over	IN
10-year	JJ
Treasurys	NNS
.	.

Federal	NNP
Home	NNP
Loan	NNP
Mortgage	NNP
Corp.	NNP
--	:

$	$
300	CD
million	CD
of	IN
Remic	NNP
mortgage	NN
securities	NNS
offered	VBD
by	IN
Citicorp	NNP
Securities	NNPS
Markets	NNPS
Inc	NNP
.	.

The	DT
offering	NN
,	,
Series	NNP
101	CD
,	,
is	VBZ
backed	VBN
by	IN
Freddie	NNP
Mac	NNP
9	CD
1\/2	CD
%	NN
securities	NNS
.	.

Pricing	NN
details	NNS
were	VBD
n't	RB
immediately	RB
available	JJ
.	.

Federal	NNP
Home	NNP
Loan	NNP
Mortgage	NNP
Corp.	NNP
--	:

$	$
200	CD
million	CD
of	IN
stripped	VBN
mortgage	NN
securities	NNS
underwritten	VBN
by	IN
BT	NNP
Securities	NNPS
Corp	NNP
.	.

The	DT
agency	NN
's	POS
first	JJ
strips	NNS
issue	NN
,	,
collateralized	JJ
by	IN
Freddie	NNP
Mac	NNP
8	CD
%	NN
securities	NNS
pooled	VBN
into	IN
a	DT
single	JJ
security	NN
called	VBN
a	DT
Giant	NNP
,	,
will	MD
be	VB
divided	VBN
into	IN
interest-only	VB
and	CC
principal-only	VB
securities	NNS
.	.

The	DT
collateral	NN
is	VBZ
being	VBG
sold	VBN
by	IN
a	DT
thrift	NN
institution	NN
.	.

The	DT
principal-only	NN
securities	NNS
will	MD
be	VB
repackaged	VB
by	IN
BT	NNP
Securities	NNPS
into	IN
a	DT
Freddie	NNP
Mac	NNP
Remic	NNP
,	,
Series	NNP
103	CD
,	,
that	IN
will	MD
have	VB
six	CD
classes	NNS
.	.

The	DT
interest-only	NN
securities	NNS
will	MD
be	VB
sold	VBN
separately	RB
by	IN
BT	NNP
Securities	NNPS
.	.

The	DT
principal-only	NN
securities	NNS
pay	VB
the	DT
principal	NN
from	IN
the	DT
underlying	VBG
Freddie	NNP
Mac	NNP
8	CD
%	NN
securities	NNS
,	,
while	IN
the	DT
interest-only	VB
securities	NNS
pay	VB
only	RB
interest	NN
.	.

Freddie	NNP
Mac	NNP
said	VBD
the	DT
principal-only	VB
securities	NNS
were	VBD
priced	VBN
at	IN
58	CD
1\/4	CD
to	TO
yield	VB
8.45	CD
%	NN
,	,
assuming	VBG
an	DT
average	NN
life	NN
of	IN
eight	CD
years	NNS
and	CC
a	DT
prepayment	NN
of	IN
160	CD
%	NN
of	IN
the	DT
PSA	VB
model	NN
.	.

The	DT
interest-only	NN
securities	NNS
were	VBD
priced	VBN
at	IN
35	CD
1\/2	CD
to	TO
yield	VB
10.72	VB
%	NN
.	.

There	EX
were	VBD
no	DT
major	JJ
Eurobond	NN
or	CC
foreign	JJ
bond	NN
offerings	NNS
in	IN
Europe	NNP
Friday	NNP
.	.