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Confidence in the pound is widely expected to take another sharp dive if trade figures for September , due for release tomorrow , fail to show a substantial improvement from July and August 's near-record deficits . NN IN DT NN VBZ RB VBN TO VB DT JJ NN IN NN NNS IN NNP , JJ IN NN NN , VB TO VB DT JJ NN IN NNP CC NNP POS JJ NNS .
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Chancellor of the Exchequer Nigel Lawson 's restated commitment to a firm monetary policy has helped to prevent a freefall in sterling over the past week . NNP IN DT NNP NNP NNP POS VBN NN TO DT NN JJ NN VBZ VBN TO VB DT NN IN NN IN DT JJ NN .
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But analysts reckon underlying support for sterling has been eroded by the chancellor 's failure to announce any new policy measures in his Mansion House speech last Thursday . CC NNS VBP VBG NN IN NN VBZ VBN VBN IN DT NN POS NN TO VB DT JJ NN NNS IN PRP$ NNP NNP NN JJ NNP .
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This has increased the risk of the government being forced to increase base rates to 16 % from their current 15 % level to defend the pound , economists and foreign exchange market analysts say . DT VBZ VBN DT NN IN DT NN VBG VBN TO VB NN NNS TO CD NN IN PRP$ JJ CD NN NN TO VB DT NN , NNS CC JJ NN NN NNS VBP .
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`` The risks for sterling of a bad trade figure are very heavily on the down side , '' said Chris Dillow , senior U.K. economist at Nomura Research Institute . `` DT NNS IN NN IN DT JJ NN NN VBP RB RB IN DT JJ NN , '' VBD NNP NNP , JJ NNP NN IN NNP NNP NNP .
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`` If there is another bad trade number , there could be an awful lot of pressure , '' noted Simon Briscoe , U.K. economist for Midland Montagu , a unit of Midland Bank PLC . `` IN EX VBZ DT JJ NN NN , EX MD VB DT JJ NN IN NN , '' VBD NNP NNP , NNP NN IN NNP NNP , DT NN IN NNP NNP NNP .
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Forecasts for the trade figures range widely , but few economists expect the data to show a very marked improvement from the # 2 billion -LRB- $ 3.2 billion -RRB- deficit in the current account reported for August . NNS IN DT NN NNS VBP RB , CC JJ NNS VBP DT NNS TO VB DT RB VBN NN IN DT # CD CD ( $ CD CD ) NN IN DT JJ NN VBD IN NNP .
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The August deficit and the # 2.2 billion gap registered in July are topped only by the # 2.3 billion deficit of October 1988 . DT NNP NN CC DT # CD CD NN VBN IN NNP VBP VBN RB IN DT # CD CD NN IN NNP CD .
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Sanjay Joshi , European economist at Baring Brothers & Co. , said there is no sign that Britain 's manufacturing industry is transforming itself to boost exports . NNP NNP , JJ NN IN NNP NNPS CC NNP , VBD EX VBZ DT NN IN NNP POS NN NN VBZ VBG PRP TO VB NNS .
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At the same time , he remains fairly pessimistic about the outlook for imports , given continued high consumer and capital goods inflows . IN DT JJ NN , PRP VBZ RB JJ IN DT NN IN NNS , VBN VBD JJ NN CC NN NNS NNS .
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He reckons the current account deficit will narrow to only # 1.8 billion in September . PRP VBZ DT JJ NN NN MD VB TO RB # CD CD IN NNP .
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However , Mr. Dillow said he believes that a reduction in raw material stockbuilding by industry could lead to a sharp drop in imports . RB , NNP NNP VBD PRP VBZ IN DT NN IN JJ NN VBG IN NN MD VB TO DT JJ NN IN NNS .
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Combined with at least some rebound in exports after August 's unexpected decline , the deficit could narrow to as little as # 1.3 billion . VBN IN IN JJS DT NN IN NNS IN NNP POS JJ NN , DT NN MD VB TO RB JJ IN # CD CD .
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Mr. Briscoe , who also forecasts a # 1.3 billion current account gap , warns that even if the trade figures are bullish for sterling , the currency wo n't advance much because investors will want to see further evidence of the turnaround before adjusting positions . NNP NNP , WP RB VBZ DT # CD CD JJ NN NN , VBZ IN RB IN DT NN NNS VBP JJ IN NN , DT NN MD RB VB JJ IN NNS MD VB TO VB JJ NN IN DT NN IN VBG NNS .
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Nevertheless , he noted , `` No one will want to go into the trade figures without a flat position '' in the pound . RB , PRP VBD , `` DT PRP MD VB TO VB IN DT NN NNS IN DT JJ NN '' IN DT NN .
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Meanwhile , overall evidence on the economy remains fairly clouded . RB , JJ NN IN DT NN VBZ RB VBN .
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In his Mansion House speech , Mr. Lawson warned that a further slowdown can be expected as the impact of the last rise in interest rates earlier this month takes effect . IN PRP$ NNP NNP NN , NNP NNP VBD IN DT JJ NN MD VB VBN IN DT NN IN DT JJ NN IN NN NNS RBR DT NN VBZ NN .
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U.K. base rates are at their highest level in eight years . JJ NN NNS VBP IN PRP$ JJS NN IN CD NNS .
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But consumer expenditure data released Friday do n't suggest that the U.K. economy is slowing that quickly . CC NN NN NNS VBD NNP VBP RB VB IN DT NNP NN VBZ VBG DT RB .
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The figures show that spending rose 0.1 % in the third quarter from the second quarter and was up 3.8 % from a year ago . DT NNS VBP DT NN VBD CD NN IN DT JJ NN IN DT JJ NN CC VBD IN CD NN IN DT NN RB .
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This compares with a 1.6 % rise in the second from the first quarter and a 5.4 % increase from the second quarter of 1988 . DT VBZ IN DT CD NN NN IN DT NN IN DT JJ NN CC DT CD NN NN IN DT JJ NN IN CD .
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Mr. Dillow said the data show the economy `` is still quite strong , '' but suggestions that much of the spending went on services rather than consumer goods should reduce fears of more import rises . NNP NNP VBD DT NNS VBP DT NN `` VBZ RB RB JJ , '' CC NNS IN NN IN DT NN VBD IN NNS RB IN NN NNS MD VB NNS IN JJR NN NNS .
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Certainly , the chancellor has made it clear that he is prepared to increase interest rates again if necessary to both ensure that a substantial slowdown does take place and that sterling does n't decline further . RB , DT NN VBZ VBN PRP JJ IN PRP VBZ VBN TO VB NN NNS RB IN JJ TO DT VB IN DT JJ NN VBZ VB NN CC DT NN VBZ RB VB JJ .
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Thursday , he reminded his audience that the government `` can not allow the necessary rigor of monetary policy to be undermined by exchange rate weakness . '' NNP , PRP VBD PRP$ NN IN DT NN `` MD RB VB DT JJ NN IN JJ NN TO VB VBN IN NN NN NN . ''
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Analysts agree there is little holding sterling firm at the moment other than Mr. Lawson 's promise that rates will be pushed higher if necessary . NNS VBP EX VBZ JJ NN NN NN IN DT NN JJ IN NNP NNP POS NN IN NNS MD VB VBN JJR IN JJ .
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And , they warn , any further drop in the government 's popularity could swiftly make this promise sound hollow . CC , PRP VBP , DT JJ NN IN DT NN POS NN MD RB VB DT NN NN JJ .
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Sterling was already showing some signs of a lack of confidence in Mr. Lawson 's promise Friday . NNP VBD RB VBG DT NNS IN DT NN IN NN IN NNP NNP POS NN NNP .
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In European trading it declined to $ 1.5890 and 2.9495 marks from $ 1.5940 and 2.9429 marks late Thursday . IN JJ NN PRP VBD TO $ CD CC CD NNS IN $ CD CC CD NNS JJ NNP .
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Economists suggested that if the pound falls much below 2.90 marks , the government will be forced to increase rates to 16 % , both to halt any further decline and ensure that the balance of monetary policy remains unchanged . NNS VBD IN IN DT NN VBZ JJ IN CD NNS , DT NN MD VB VBN TO VB NNS TO CD NN , DT TO VB DT JJ NN CC VB IN DT NN IN JJ NN VBZ JJ .
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Friday 's Market Activity NNP POS NNP NN
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The dollar posted gains in quiet trading as concerns about equities abated . DT NN VBD NNS IN JJ NN IN NNS IN NNS VBN .
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Foreign exchange dealers said that the currency market has begun to distance itself from the volatile stock exchange , which has preoccupied the market since Oct. 13 , when the Dow Jones Industrial Average plunged more than 190 points . JJ NN NNS VBD IN DT NN NN VBZ VBN TO VB PRP IN DT JJ NN NN , WDT VBZ VBN DT NN IN NNP CD , WRB DT NNP NNP NNP NNP VBD JJR IN CD NNS .
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Currency analysts predict that in the coming week the foreign exchange market will shift its focus back to economic fundamentals , keeping a close eye out for any signs of monetary easing by U.S. Federal Reserve . NN NNS VBP IN IN DT VBG NN DT JJ NN NN MD VB PRP$ NN RB TO JJ NNS , VBG DT NN NN IN IN DT NNS IN JJ NN IN NNP NNP NNP .
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Late in the New York trading day , the dollar was quoted at 1.8578 marks , up from 1.8470 marks late Thursday in New York . RB IN DT NNP NNP NN NN , DT NN VBD VBN IN CD NNS , IN IN CD NNS JJ NNP IN NNP NNP .
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The U.S. currency was also changing hands at 142.43 yen , up from 141.70 yen in New York late Thursday . DT NNP NN VBD RB VBG NNS IN CD NN , IN IN CD NN IN NNP NNP JJ NNP .
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In Tokyo on Monday , the U.S. currency opened for trading at 141.95 yen , up from Friday 's Tokyo close of 141.35 yen . IN NNP IN NNP , DT NNP NN VBD IN NN IN CD NN , IN IN NNP POS NNP NN IN CD NN .
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On the Commodity Exchange in New York , gold for current delivery settled at $ 367.30 an ounce , up 20 cents . IN DT NNP NNP IN NNP NNP , NN IN JJ NN VBD IN $ CD DT NN , IN CD NNS .
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Estimated volume was a light 2.4 million ounces . VBN NN VBD DT NN CD CD NNS .
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In early trading in Hong Kong Monday , gold was quoted at $ 366.50 an ounce . IN JJ NN IN NNP NNP NNP , NN VBD VBN IN $ CD DT NN .
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East Rock Partners Limited Partnership said it proposed to acquire A.P. Green Industries Inc. for $ 40 a share . NNP NNP NNP NNP NNP VBD PRP VBD TO VB NNP NNP NNP NNP IN $ CD DT NN .
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In an Oct. 19 letter to A.P. Green 's board , East Rock said the offer is subject to the signing of a merger agreement by no later than Oct. 31 . IN DT NNP CD NN TO NNP NNP POS NN , NNP NNP VBD DT NN VBZ NN TO DT NN IN DT NN NN IN DT RB IN NNP CD .
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The letter , attached to a filing with the Securities and Exchange Commission , said the approval is also contingent upon obtaining satisfactory financing . DT NN , VBN TO DT NN IN DT NNP CC NNP NNP , VBD DT NN VBZ RB JJ IN VBG JJ NN .
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An A.P. Green official declined to comment on the filing . DT NNP NNP NN VBD TO VB IN DT NN .
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The $ 40-a-share proposal values the company at about $ 106.6 million . DT $ JJ NN VBZ DT NN IN RB $ CD CD .
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A.P. Green currently has 2,664,098 shares outstanding . NNP NNP RB VBZ CD NNS JJ .
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Its stock closed at $ 38 , up $ 1.875 , in national over-the-counter trading . PRP$ NN VBD IN $ CD , IN $ CD , IN JJ JJ NN .
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The company is a Mexico , Mo. , maker of refractory products . DT NN VBZ DT NNP , NNP , NN IN JJ NNS .
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East Rock also said in the filing that it boosted its stake in A.P. Green to 8.7 % . NNP NNP RB VBD IN DT NN IN PRP VBD PRP$ NN IN NNP NNP TO CD NN .
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It now holds 233,000 A.P. Green common shares , including 30,000 shares bought last Thursday for $ 35.50 to $ 36.50 a share . PRP RB VBZ CD NNP NNP JJ NNS , VBG CD NNS VBD JJ NNP IN $ CD TO $ CD DT NN .
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New York-based John Kuhns and Robert MacDonald control East Rock Partners Inc. , the sole general partner of East Rock Partners L.P . NNP JJ NNP NNP CC NNP NNP NN NNP NNP NNP NNP , DT JJ JJ NN IN NNP NNP NNP NNP .
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The sole limited partner of the partnership is Westwood Brick Lime Inc. , an indirect subsidiary of Westwood Group Inc . DT JJ JJ NN IN DT NN VBZ NNP NNP NNP NNP , DT JJ NN IN NNP NNP NNP .
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Both Westwood Brick and Westwood Group are based in Boston . DT NNP NNP CC NNP NNP VBP VBN IN NNP .
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Freight rates , declining for most of the decade because of competition spurred by deregulation , are bottoming out , turning upward and threatening to fuel inflation . NN NNS , VBG IN RBS IN DT NN IN IN NN VBN IN NN , VBP VBG IN , VBG RB CC VBG TO VB NN .
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Trucking , shipping and air-freight companies have announced rate increases , scheduled for this fall or early next year , reflecting higher costs and tightened demand for freight transport . NNP , VBG CC NN NNS VBP VBN NN NNS , VBN IN DT NN CC JJ JJ NN , VBG JJR NNS CC VBD NN IN NN NN .
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Major shippers say they expect freight rates to rise at least as fast as inflation and maybe faster in the next few years . JJ NNS VBP PRP VBP NN NNS TO VB IN JJS RB RB IN NN CC RB RBR IN DT JJ JJ NNS .
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That 's a big change from recent years when freight haulage was a bright spot for U.S. productivity , helping to restrain inflation and make U.S. industry more competitive abroad . DT VBZ DT JJ NN IN JJ NNS WRB NN NN VBD DT JJ NN IN NNP NN , VBG TO VB NN CC VB NNP NN RBR JJ RB .
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`` Demand has caught up with the supply of certain types of freight transportation , and rates are starting to move up '' at a rate `` close to or slightly more than the inflation rate , '' said Clifford Sayre , director of logistics at Du Pont Co . `` NN VBZ VBN IN IN DT NN IN JJ NNS IN NN NN , CC NNS VBP VBG TO VB IN '' IN DT NN `` RB TO CC RB JJR IN DT NN NN , '' VBD NNP NNP , NN IN NNS IN NNP NNP NNP .
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Shippers surveyed recently by Ohio State University said they expect their freight-transport , storage and distribution costs to rise about 4 % this year . NNS VBN RB IN NNP NNP NNP VBD PRP VBP PRP$ JJ , NN CC NN NNS TO VB IN CD NN DT NN .
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Only 10 % of the 250 shippers polled expected their freight-transport costs to decrease , compared with 30 % who had looked to freight transport to reduce costs in past years . RB CD NN IN DT CD NNS VBN VBN PRP$ JJ NNS TO VB , VBN IN CD NN WP VBD VBN TO VB NN TO VB NNS IN JJ NNS .
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`` This is the first year since transportation deregulation in 1980 that we have had such a dramatic and broad-based upturn in perceived transportation rates , '' said Bernard LaLonde , a transportation logistics professor at Ohio State in Columbus . `` DT VBZ DT JJ NN IN NN NN IN CD IN PRP VBP VBN JJ DT JJ CC JJ NN IN VBN NN NNS , '' VBD NNP NNP , DT NN NNS NN IN NNP NNP IN NNP .
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The deregulation of railroads and trucking companies that began in 1980 enabled shippers to bargain for transportation . DT NN IN NNS CC NN NNS WDT VBD IN CD VBD NNS TO VB IN NN .
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Carriers could use their equipment more efficiently , leading to overcapacity they were eager to fill . NNP MD VB PRP$ NN RBR RB , VBG TO NN PRP VBD JJ TO VB .
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Shippers cut about $ 35 billion from their annual , inter-city truck and rail costs , to about $ 150 billion , or about 6.4 % of gross national product , down from 8 % of GNP in 1981 . NNS VBP RB $ CD CD IN PRP$ JJ , JJ NN CC NN NNS , TO RB $ CD CD , CC IN CD NN IN JJ JJ NN , RB IN CD NN IN NNP IN CD .
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But with much of the inefficiency squeezed out of the freight-transport system , rising costs are likely to be reflected directly in higher freight rates . CC IN NN IN DT NN VBN IN IN DT JJ NN , VBG NNS VBP JJ TO VB VBN RB IN JJR NN NNS .
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`` Shippers are saying ` the party 's over , ' '' said Mr. LaLonde . `` NNS VBP VBG `` DT NN POS IN , '' '' VBD NNP NNP .
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`` Shippers wo n't be able to look for transportation-cost savings as they have for the last eight or nine years . `` NNS MD RB VB JJ TO VB IN JJ NNS IN PRP VBP IN DT JJ CD CC CD NNS .
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Transport rates wo n't be an opportunity for offsetting cost increases in other segments of the economy . '' NN NNS MD RB VB DT NN IN VBG NN NNS IN JJ NNS IN DT NN . ''
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Robert Delaney , a consultant at Arthur D. Little Inc. , Cambridge , Mass. , said `` We 've gotten all the benefits of deregulation in freight-cost reductions . NNP NNP , DT NN IN NNP NNP NNP NNP , NNP , NNP , VBD `` PRP VBP VBN PDT DT NNS IN NN IN JJ NNS .
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Now we are starting to see real freight-rate increases as carriers replace equipment , pay higher fuel costs and pay more for labor . RB PRP VBP VBG TO VB JJ JJ NNS IN NNS VBP NN , VB JJR NN NNS CC VB JJR IN NN .
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You 'll see carriers try to recoup some of the price cutting that occurred previously . '' PRP MD VB NNS VB TO VB DT IN DT NN VBG WDT VBD RB . ''
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Not everyone believes that the good times are over for shippers . RB NN VBZ IN DT JJ NNS VBP IN IN NNS .
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`` There 's still a lot of pressure on rates in both rail and truck , '' said Gerard McCullough , lecturer in transportation at Massachusetts Institute of Technology . `` EX VBZ RB DT NN IN NN IN NNS IN DT NN CC NN , '' VBD NNP NNP , NN IN NN IN NNP NNP IN NNP .
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Less-than-truckload companies , which carry the freight of several shippers in each truck trailer , discounted away a 4.7 % rate increase implemented last April . JJ NNS , WDT VBP DT NN IN JJ NNS IN DT NN NN , VBD RB DT CD NN NN NN VBD JJ NNP .
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The carriers were competing fiercely for market share . DT NNS VBD VBG RB IN NN NN .
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Railroad-rate increases are likely to be restrained by weakening rail-traffic levels and keen competition for freight from trucks . JJ NNS VBP JJ TO VB VBN IN VBG JJ NNS CC JJ NN IN NN IN NNS .
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An official at Consolidated Freightways Inc. , a Menlo Park , Calif. , less-than-truckload carrier , said rate discounting in that industry has begun to `` stabilize . '' DT NN IN NNP NNP NNP , DT NNP NNP , NNP , JJ NN , VBD NN NN IN DT NN VBZ VBN TO `` VB . ''
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Consolidated Freightways plans to raise its rates 5.3 % late this year or early next year , and at least two competitors have announced similar increases . NNP NNP VBZ TO VB PRP$ NNS CD NN JJ DT NN CC JJ JJ NN , CC IN JJS CD NNS VBP VBN JJ NNS .
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Truckers are `` trying to send signals that they need to stop the bloodletting , forget about market share and go for higher rates , '' said Michael Lloyd , an analyst at Salomon Bros . NNS VBP `` VBG TO VB NNS IN PRP VBP TO VB DT NN , VB IN NN NN CC VB IN JJR NNS , '' VBD NNP NNP , DT NN IN NNP NNP .
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And `` shippers are getting the feeling that they have played one trucker off against another as much as they can , '' he said . CC `` NNS VBP VBG DT NN IN PRP VBP VBN CD NN IN IN DT RB JJ IN PRP MD , '' PRP VBD .
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Air-freight carriers raised their rates for U.S. products going across the Pacific to Asia by about 20 % earlier this month . NN NNS VBD PRP$ NNS IN NNP NNS VBG IN DT NNP TO NNP IN IN CD NN RBR DT NN .
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And Japan Air Lines said it plans to boost its rates a further 25 % over the next two years . CC NNP NNP NNPS VBD PRP VBZ TO VB PRP$ NNS DT JJ CD NN IN DT JJ CD NNS .
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Such rate increases `` will increase the total cost of U.S. products and slow down the rate of increase of U.S. exports , '' said Richard Connors , a senior vice president of Yusen Air & Sea Service U.S.A. Inc. , the U.S. air-freight-forwarding subsidiary of Nippon Yusen Kaisha of Japan . JJ NN NNS `` MD VB DT JJ NN IN NNP NNS CC JJ RP DT NN IN NN IN NNP NNS , '' VBD NNP NNP , DT JJ NN NN IN NNP NNP CC NNP NNP NNP NNP , DT NNP JJ NN IN NNP NNP NNP IN NNP .
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Ship companies carrying bulk commodities , such as oil , grain , coal and iron ore , have been able to increase their rates in the last couple of years . NN NNS VBG NN NNS , JJ IN NN , NN , NN CC NN NN , VBP VBN JJ TO VB PRP$ NNS IN DT JJ NN IN NNS .
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Some bulk shipping rates have increased `` 3 % to 4 % in the past few months , '' said Salomon 's Mr. Lloyd . DT NN VBG NNS VBP VBN `` CD NN TO CD NN IN DT JJ JJ NNS , '' VBD NNP POS NNP NNP .
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And ship lines carrying containers are also trying to raise their rates . CC NN NNS VBG NNS VBP RB VBG TO VB PRP$ NNS .
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Carriers boosted rates more than 10 % in the North Atlantic between the U.S. and Europe last September , hoping to partly restore rates to earlier levels . NNP VBD NNS JJR IN CD NN IN DT NNP NNP IN DT NNP CC NNP JJ NNP , VBG TO RB VB NNS TO JJR NNS .
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Ship lines operating in the Pacific plan to raise rates on containers carrying U.S. exports to Asia about 10 % , effective next April . NN NNS VBG IN DT NNP NN TO VB NNS IN NNS VBG NNP NNS TO NNP IN CD NN , JJ JJ NNP .
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MGM Grand Inc. said it filed a registration statement with the Securities and Exchange Commission for a public offering of six million common shares . NNP NNP NNP VBD PRP VBD DT NN NN IN DT NNP CC NNP NNP IN DT JJ NN IN CD CD JJ NNS .
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The Beverly Hills , Calif.-based company said it would have 26.9 million common shares outstanding after the offering . DT NNP NNP , JJ NN VBD PRP MD VB CD CD JJ NNS JJ IN DT NN .
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The hotel and Gaming company said Merrill Lynch Capital Markets will lead the underwriters . DT NN CC NNP NN VBD NNP NNP NNP NNPS MD VB DT NNS .
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Proceeds from the sale will be used for remodeling and refurbishing projects , as well as for the planned MGM Grand hotel\/casino and theme park . NNS IN DT NN MD VB VBN IN VBG CC VBG NNS , RB RB IN IN DT VBN NNP NNP NN CC NN NN .
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Bob Stone stewed over a letter from his manager putting him on probation for insubordination . NNP NNP JJ IN DT NN IN PRP$ NN VBG PRP IN NN IN NN .
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Mr. Stone thought the discipline was unfair ; he believed that his manager wanted to get rid of him for personal reasons . NNP NNP VBD DT NN VBD JJ : PRP VBD IN PRP$ NN VBD TO VB JJ IN PRP IN JJ NNS .
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Unable to persuade the manager to change his decision , he went to a `` company court '' for a hearing . JJ TO VB DT NN TO VB PRP$ NN , PRP VBD TO DT `` NN NN '' IN DT NN .
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At the scheduled time , Mr. Stone entered a conference room in a building near where he worked . IN DT VBN NN , NNP NNP VBD DT NN NN IN DT NN IN WRB PRP VBD .
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After the three members of the court introduced themselves , the chairman of the panel said : `` Go ahead and tell us what happened . IN DT CD NNS IN DT NN VBD PRP , DT NN IN DT NN VBD : `` VB RB CC VB PRP WP VBD .
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We may ask questions as you go along , or we may wait until the end . '' PRP MD VB NNS IN PRP VBP IN , CC PRP MD VB IN DT NN . ''
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No lawyers or tape recorders were present . DT NNS CC NN NNS VBD JJ .
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The only extra people were a couple of personnel specialists , one of whom knew Mr. Stone 's case intimately and would help fill in any facts needed to give the court the full picture . DT RB JJ NNS VBD DT NN IN NNS NNS , CD IN WP VBD NNP NNP POS NN RB CC MD VB VB IN DT NNS VBN TO VB DT NN DT JJ NN .
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Over a cup of coffee , Mr. Stone told his story . IN DT NN IN NN , NNP NNP VBD PRP$ NN .
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He talked about 20 minutes . PRP VBD IN CD NNS .
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When he was through , the court members asked many questions , then the chairman said they would like to hear his manager 's side and talk to witnesses . WRB PRP VBD IN , DT NN NNS VBD JJ NNS , RB DT NN VBD PRP MD VB TO VB PRP$ NN POS NN CC VB TO NNS .
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The chairman promised Mr. Stone a decision within two weeks . DT NN VBD NNP NNP DT NN IN CD NNS .
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Bob Stone is a fictional name , but the incident described is real . NNP NNP VBZ DT JJ NN , CC DT NN VBN VBZ JJ .
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It happened at Northrop Corp. in Los Angeles . PRP VBD IN NNP NNP IN NNP NNP .
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The court is called the Management Appeals Committee , or just `` MAC , '' and it is likely to hear a couple of dozen cases a year . DT NN VBZ VBN DT NNP NNP NNP , CC RB `` NNP , '' CC PRP VBZ JJ TO VB DT NN IN NN VBZ DT NN .
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Alter some details of this example and it could be taking place today at Federal Express in Memphis , the Defense and Underseas Systems divisions of Honeywell in Minneapolis , a General Electric plant in Columbia , Md. , or a number of other companies . VB DT NNS IN DT NN CC PRP MD VB VBG NN NN IN NNP NNP IN NNP , DT NNP CC NNP NNP NNS IN NNP IN NNP , DT NNP NNP NN IN NNP , NNP , CC DT NN IN JJ NNS .
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These firms are pioneers in a significant new trend in the corporate world : the rise of what I call corporate due process . DT NNS VBP NNS IN DT JJ JJ NN IN DT JJ NN : DT NN IN WP PRP VBP JJ JJ NN .
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Although corporate due process is practiced today in few companies -- perhaps 40 to 60 -- it is one of the fastest developing trends in industry . IN JJ JJ NN VBZ VBN NN IN JJ NNS : RB CD TO CD : PRP VBZ CD IN DT JJS VBG NNS IN NN .
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In the coming decade a majority of people-oriented companies are likely to adopt it . IN DT VBG NN DT NN IN JJ NNS VBP JJ TO VB PRP .
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Corporate due process appeals to management for a variety of reasons . JJ JJ NN NNS TO NN IN DT NN IN NNS .
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It reduces lawsuits from disgruntled employees and ex-employees , with all that means for reduced legal costs and better public relations . PRP VBZ NNS IN JJ NNS CC NNS , IN DT WDT VBZ IN VBN JJ NNS CC RBR JJ NNS .
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It helps to keep out unions . PRP VBZ TO VB IN NNS .
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It increases employee commitment to the company , with all that means for efficiency and quality control . PRP VBZ NN NN TO DT NN , IN DT WDT VBZ IN NN CC NN NN .
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What must your management team do to establish corporate due process ? WP MD PRP$ NN NN VBP TO VB JJ JJ NN .
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Here are four key steps : RB VBP CD JJ NNS :
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1 . Make sure you have a strong personnel department . CD . VB JJ PRP VBP DT JJ NNS NN .
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It must be able to handle most of the complaints that can not be solved in the trenches by managers and their subordinates , else the company court or adjudicators will be inundated with cases . PRP MD VB JJ TO VB RBS IN DT NNS WDT MD RB VB VBN IN DT NNS IN NNS CC PRP$ NNS , RB DT NN NN CC NNS MD VB VBN IN NNS .
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At Polaroid , the Personnel Policy Planning Committee may hear only about 20 cases a year ; the rest of the many hundreds of complaints are resolved at earlier stages . IN NNP , DT NNP NNP NNP NNP MD VB RB IN CD VBZ DT NN : DT NN IN DT JJ NNS IN NNS VBP VBN IN JJR NNS .
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At TWA , the System Board of Adjustment hears 50 to 75 cases a year , only a fraction of the complaints brought to personnel specialists . IN NNP , DT NNP NNP IN NNP VBZ CD TO CD VBZ DT NN , RB DT NN IN DT NNS VBN TO NNS NNS .
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At Citicorp , the Problem Review Board may hear only 12 or so cases because of personnel 's skill in complaint-resolution . IN NNP , DT NNP NNP NNP MD VB RB CD CC RB VBZ IN IN NNS POS NN IN NN .
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In a typical year , up to 20 % of the work force goes to personnel specialists with complaints of unfair treatment . IN DT JJ NN , IN TO CD NN IN DT NN NN VBZ TO NNS NNS IN NNS IN JJ NN .
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In a large company that means many hundreds of complaints for personnel to handle . IN DT JJ NN WDT VBZ JJ NNS IN NNS IN NNS TO VB .
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2 . Formally or informally , train all your managers and supervisors in the company 's due-process approach . CD . RB CC RB , NN DT PRP$ NNS CC NNS IN DT NN POS NN NN .
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See that they know company personnel policy backwards and forwards , for it is the `` law '' governing company courts and adjudicators . VB IN PRP VBP NN NNS NN RB CC RB , IN PRP VBZ DT `` NN '' VBG NN NNS CC NNS .
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Coach them in handling complaints so that they can resolve problems immediately . NNP PRP IN NN NNS RB IN PRP MD VB NNS RB .
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In case managers and personnel specialists are unsuccessful and subordinates take their complaints to a company court or adjudicator , teach managers to accept reversals as a fact of business life , for in a good due-process system they are bound to happen . IN NN NNS CC NNS NNS VBP JJ CC NNS VBP PRP$ NNS TO DT NN NN CC NN , VB NNS TO VB NNS IN DT NN IN NN NN , IN IN DT JJ NN NN PRP VBP VBN TO VB .
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In the 15 companies I studied , reversal rates range on the average from 20 % to 40 % . IN DT CD NNS PRP VBD , NN NNS VBP IN DT NN IN CD NN TO CD NN .
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3 . Decide whether you want a panel system or a single adjudicator . CD . VB IN PRP VBP DT NN NN CC DT JJ NN .
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A panel system like that in the Bob Stone example enjoys such advantages as high credibility and , for the panelists , mutual support . DT NN NN IN DT NN DT NNP NNP NN VBZ JJ NNS IN JJ NN CC , IN DT NNS , JJ NN .
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An adjudicator system -- that is , an investigator who acts first as a fact-finder and then switches hats and arbitrates the facts -- has such advantages as speed , flexibility and maximum privacy . DT NN NN : DT VBZ , DT NN WP VBZ JJ IN DT NN CC RB VBZ NNS CC VBZ DT NNS : VBZ JJ NNS IN NN , NN CC JJ NN .
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International Business Machines and Bank of America are among the companies using the single-adjudicator approach . NNP NNP NNPS CC NNP IN NNP VBP IN DT NNS VBG DT JJ NN .
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4 . Make your due-process system visible . CD . VB PRP$ NN NN JJ .
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It wo n't do any good for anybody unless employees know about it . PRP MD RB VB DT NN IN NN IN NNS VBP IN PRP .
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Most managements hesitate to go all out in advertising their due-process systems for fear of encouraging cranks and chronic soreheads to file complaints . JJS NNS VBP TO VB DT NN IN VBG PRP$ NN NNS IN NN IN VBG NNS CC JJ NNS TO VB NNS .
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On the other hand , they make sure at a minimum that their systems are described in their employee handbooks and talked up by personnel specialists . IN DT JJ NN , PRP VBP JJ IN DT NN IN PRP$ NNS VBP VBN IN PRP$ NN NNS CC VBD IN IN NNS NNS .
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Smith-Kline Beecham goes further and sometimes features its grievance procedure in closed-circuit TV programs . NNP NNP VBZ JJ CC RB VBZ PRP$ NN NN IN JJ NN NNS .
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Naturally , one of the best ways to guarantee visibility for your due-process system is for top management to support it . RB , CD IN DT JJS NNS TO VB NN IN PRP$ NN NN VBZ IN JJ NN TO VB PRP .
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At IBM , the company 's Open Door system is sometimes the subject of memorandums from the chief executive . IN NNP , DT NN POS NNP NNP NN VBZ RB DT NN IN NNS IN DT JJ NN .
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Federal Express goes further in this respect than any company I know of with both Frederick Smith and James Barksdale , chief executive and chief operating officer , respectively , sitting in on the Appeals Board almost every Tuesday to decide cases . NNP NNP VBZ JJ IN DT NN IN DT NN PRP VBP IN IN DT NNP NNP CC NNP NNP , JJ NN CC JJ VBG NN , RB , VBG IN IN DT NNP NNP RB DT NNP TO VB NNS .
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Mr. Ewing is a consultant based in Winchester , Mass. , and author of `` Justice on the Job : Resolving Grievances in the Nonunion Workplace '' -LRB- Harvard Business School Press , 1989 -RRB- . NNP NNP VBZ DT NN VBN IN NNP , NNP , CC NN IN `` NNP IN DT NNP : NNP NNP IN DT NNP NN '' ( NNP NNP NNP NNP , CD ) .
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Tokyo stocks closed higher in active trading Friday , marking the fourth consecutive daily gain since Monday 's sharp fall . NNP NNS VBD JJR IN JJ NN NNP , VBG DT JJ JJ JJ NN IN NNP POS JJ NN .
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London shares closed moderately lower in thin trading . JJ NNS VBD RB JJR IN JJ NN .
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At Tokyo , the Nikkei index of 225 selected issues was up 112.16 points to 35486.38 . IN NNP , DT NNP NN IN CD VBN NNS VBD IN CD NNS TO CD .
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The index advanced 266.66 points Thursday . DT NN VBD CD NNS NNP .
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In early trading in Tokyo Monday , the Nikkei index rose 101.98 points to 35588.36 . IN JJ NN IN NNP NNP , DT NNP NN VBD CD NNS TO CD .
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Friday 's volume on the First Section was estimated at one billion shares , up from 862 million Thursday . NNP POS NN IN DT NNP NN VBD VBN IN CD CD NNS , IN IN CD CD NNP .
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Winners outpaced losers , 572 to 368 , while 181 issues remained unchanged . NNS VBD NNS , CD TO CD , IN CD NNS VBD JJ .
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With investors relieved at the overnight gain in New York stocks , small-lot buying orders streamed into the market from early morning , making traders believe the market was back to normal . IN NNS VBN IN DT JJ NN IN NNP NNP NNS , JJ NN NNS VBD IN DT NN IN JJ NN , VBG NNS VBP DT NN VBD RB TO JJ .
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The Nikkei , which reached as high as 35611.38 right after the opening , surrendered part of its early advance toward the end of the day because of profit-taking . DT NNP , WDT VBD RB JJ IN CD NN IN DT NN , VBD NN IN PRP$ JJ NN IN DT NN IN DT NN IN IN NN .
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`` Investors , especially dealers , do n't want to hold a position over the weekend , '' a trader at Dai-ichi Securities said , adding , though , that the trading mood remained positive through the afternoon session . `` NNS , RB NNS , VBP RB VB TO VB DT NN IN DT NN , '' DT NN IN NNP NNP VBD , VBG , RB , IN DT NN NN VBD JJ IN DT NN NN .
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The Tokyo Stock Price Index -LRB- Topix -RRB- of all issues listed in the First Section , which gained 22.78 points Thursday , was up 14.06 points , or 0.53 % , at 2679.72 . DT NNP NNP NNP NNP ( NNP ) IN DT NNS VBN IN DT NNP NN , WDT VBD CD NNS NNP , VBD IN CD NNS , CC CD NN , IN CD .
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The Second Section index , which rose 15.72 points Thursday , was up 11.88 points , or 0.32 % , to close at 3717.46 . DT JJ NN NN , WDT VBD CD NNS NNP , VBD IN CD NNS , CC CD NN , TO VB IN CD .
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Volume in the second section was estimated at 30 million shares , up from 28 million Thursday . NN IN DT JJ NN VBD VBN IN CD CD NNS , IN IN CD CD NNP .
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In turmoil caused by the previous Friday 's plunge in New York stocks , the Nikkei marked a sharp 647.33-point fall Monday . IN NN VBN IN DT JJ NNP POS NN IN NNP NNP NNS , DT NNP VBD DT JJ JJ NN NNP .
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But the Nikkei fell an overall 1.8 % in value that day compared with Wall Street 's far sharper 6.9 % drop on Oct. 13 . CC DT NNP VBD DT JJ CD NN IN NN DT NN VBN IN NNP NNP POS RB JJR CD NN NN IN NNP CD .
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The Tokyo market 's resiliency helped participants to regain confidence gradually as they spent more time on analyzing factors that caused the Friday plunge and realized these problems were unique to New York stocks and not directly related to Tokyo . DT NNP NN POS NN VBD NNS TO VB NN RB IN PRP VBD JJR NN IN VBG NNS WDT VBD DT NNP NN CC VBD DT NNS VBD JJ TO NNP NNP NNS CC RB RB VBN TO NNP .
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The Nikkei continued to gain for the rest of the week , adding 1017.69 points in four days -- more than erasing Monday 's losses . DT NNP VBD TO VB IN DT NN IN DT NN , VBG CD NNS IN CD NNS : JJR IN VBG NNP POS NNS .
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But further major advances on the Nikkei are n't foreseen this week by market observers . CC JJ JJ NNS IN DT NNP VBP RB VBN DT NN IN NN NNS .
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Investors are still waiting to see how the U.S. government will decide on interest rates and how the dollar will be stabilized . NNS VBP RB VBG TO VB WRB DT NNP NN MD VB IN NN NNS CC WRB DT NN MD VB VBN .
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Some high-priced issues made a comeback Friday . DT JJ NNS VBD DT NN NNP .
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Pioneer surged 450 yen -LRB- $ 3.16 -RRB- to 6,050 yen -LRB- $ 42.60 -RRB- . NNP VBD CD NN ( $ CD ) TO CD NN ( $ CD ) .
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Kyocera advanced 80 yen to 5,440 . NNP VBD CD NN TO CD .
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Fanuc gained 100 to 7,580 . NNP VBD CD TO CD .
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Breweries attracted investors because of their land property holdings that could figure in development or other plans , traders said . NNP VBD NNS IN IN PRP$ NN NN NNS WDT MD VB IN NN CC JJ NNS , NNS VBD .
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Sapporo gained 80 to 1,920 and Kirin added 60 to 2,070 . NNP VBD CD TO CD CC NNP VBD CD TO CD .
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Housings , constructions and pharmaceuticals continued to be bought following Thursday 's gains because of strong earnings outlooks . NNS , NNS CC NNS VBD TO VB VBN VBG NNP POS NNS IN IN JJ NNS NNS .
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Daiwa House gained 50 to 2,660 . NNP NNP VBD CD TO CD .
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Misawa Homes was up 20 at 2,960 . NNP NNP VBD IN CD IN CD .
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Kajima advanced 40 to 2,120 and Ohbayashi added 50 to 1,730 . NNP VBD CD TO CD CC NNP VBD CD TO CD .
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Fujisawa added 80 to 2,010 and Mochida advanced 230 to 4,400 . NNP VBD CD TO CD CC NNP VBD CD TO CD .
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London share prices were influenced largely by declines on Wall Street and weakness in the British pound . JJ NN NNS VBD VBN RB IN NNS IN NNP NNP CC NN IN DT JJ NN .
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The key Financial Times-Stock Exchange 100-share index ended 10.2 points lower at 2179.1 , above its intraday low of 2176.9 , but off the day 's high of 2189 . DT JJ NNP NNP NNP JJ NN VBD CD NNS JJR IN CD , IN PRP$ JJ NN IN CD , CC IN DT NN POS NN IN CD .
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The index finished 2.4 % under its close of 2233.9 the previous Friday , although it recouped some of the sharp losses staged early last week on the back of Wall Street 's fall . DT NN VBD CD NN IN PRP$ NN IN CD DT JJ NNP , IN PRP VBD DT IN DT JJ NNS VBD JJ JJ NN IN DT RB IN NNP NNP POS NN .
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London was weak throughout Friday 's trading , however , on what dealers attributed to generally thin interest ahead of the weekend and this week 's potentially important U.K. trade figures for September . NNP VBD JJ IN NNP POS NN , RB , IN WP NNS VBD TO RB JJ NN RB IN DT NN CC DT NN POS RB JJ NNP NN NNS IN NNP .
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The FT-SE 100 largely remained within an 11-point range establshed within the first hour of trading before it eased to an intraday low late in the session when a flurry of program selling pushed Wall Street lower . DT NNP CD RB VBD IN DT JJ NN VBN IN DT JJ NN IN NN IN PRP VBD TO DT JJ JJ RB IN DT NN WRB DT NN IN NN VBG VBN NNP NNP JJR .
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The FT 30-share index closed 11.0 points lower at 1761.0 . DT NNP JJ NN VBD CD NNS JJR IN CD .
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Volume was extremely thin at 351.3 million shares , the lightest volume of the week and modestly under Thursday 's 387.4 million shares . NN VBD RB JJ IN CD CD NNS , DT JJS NN IN DT NN CC RB IN NNP POS CD CD NNS .
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Dealers said the day 's action was featureless outside some response to sterling 's early weakness against the mark , and fears that Wall Street might open lower after its strong leap forward Thursday . NNS VBD DT NN POS NN VBD JJ IN DT NN TO NN POS JJ NN IN DT NN , CC NNS IN NNP NNP MD RB JJR IN PRP$ JJ NN RB NNP .
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They added that market-makers were largely sidelined after aggressively supporting the market Thursday in their quest to cover internal shortages of FT-SE 100 shares . PRP VBD IN NNS VBD RB VBN IN RB VBG DT NN NNP IN PRP$ NN TO VB JJ NNS IN NNP CD NNS .
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Interest may remain limited into tomorrow 's U.K. trade figures , which the market will be watching closely to see if there is any improvement after disappointing numbers in the previous two months . NN MD VB JJ IN NN POS NNP NN NNS , WDT DT NN MD VB VBG RB TO VB IN EX VBZ DT NN IN JJ NNS IN DT JJ CD NNS .
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The key corporate news of the day was that British Airways decided to withdraw from a management-led bid for UAL Corp. , the parent of United Airlines . DT JJ JJ NN IN DT NN VBD IN JJ NNPS VBD TO VB IN DT JJ NN IN NNP NNP , DT NN IN NNP NNPS .
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British Airways rose initially after announcing its withdrawal from the UAL deal . JJ NNPS VBD RB IN VBG PRP$ NN IN DT NNP NN .
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Dealers said they viewed the initial # 390-million -LRB- $ 622 million -RRB- outlay for a 15 % stake in the airline as a bit much . NNS VBD PRP VBD DT JJ # CD ( $ CD CD ) NN IN DT CD NN NN IN DT NN IN DT NN JJ .
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Its shares slid in late dealings to close a penny per share lower at 197 pence . PRP$ NNS VBD IN JJ NNS TO VB DT NN IN NN JJR IN CD NN .
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The airline was the most active FT-SE 100 at 8.2 million shares traded . DT NN VBD DT RBS JJ NNP CD IN CD CD NNS VBN .
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The next most active top-tier stock was B.A.T Industries , the target of Sir James Goldsmith 's # 13.4 billion bid . DT JJ RBS JJ JJ NN VBD NNP NNPS , DT NN IN NNP NNP NNP POS # CD CD NN .
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The company gained shareholder approval Thursday to restructure in a bid to fend off the hostile takeover . DT NN VBD NN NN NNP TO VB IN DT NN TO VB IN DT JJ NN .
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Sir James said Thursday night that his plans for the takeover had n't changed . NNP NNP VBD NNP NN IN PRP$ NNS IN DT NN VBD RB VBN .
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B.A.T ended the day at 778 , down 5 , on turnover of 7.5 million shares . NNP VBD DT NN IN CD , JJ NN , IN NN IN CD CD NNS .
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Dealers said it was hit by some profit-taking after gains since mid-week . NNS VBD PRP VBD VBN IN DT NN IN NNS IN NN .
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In other active shares , Trusthouse Forte shed 10 to 294 on volume of 6.4 million shares after a Barclays De Zoete Wedd downgrading , while Hillsdown Holdings , a food products concern , was boosted 2 to 271 after it disclosed it would seek shareholder approval to begin share repurchases . IN JJ JJ NNS , NNP NNP VB CD TO CD IN NN IN CD CD NNS IN DT NNP NNP NNP NNP NN , IN NNP NNP , DT NN NNS VBP , VBD VBN CD TO CD IN PRP VBD PRP MD VB NN NN TO VB NN NNS .
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Elsewhere in Europe , share prices closed higher in Stockholm , Brussels and Milan . RB IN NNP , NN NNS VBD JJR IN NNP , NNP CC NNP .
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Prices were lower in Frankfurt , Zurich , Paris and Amsterdam . NNS VBD JJR IN NNP , NNP , NNP CC NNP .
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South African gold stocks closed moderately lower . JJ JJ NN NNS VBD RB JJR .
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Share prices closed higher in Sydney , Taipei , Wellington , Manila , Hong Kong and Singapore and were lower in Seoul . NN NNS VBD JJR IN NNP , NNP , NNP , NNP , NNP NNP CC NNP CC VBD JJR IN NNP .
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Here are price trends on the world 's major stock markets , as calculated by Morgan Stanley Capital International Perspective , Geneva . RB VBP NN NNS IN DT NN POS JJ NN NNS , IN VBN IN NNP NNP NNP NNP NNP , NNP .
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To make them directly comparable , each index is based on the close of 1969 equaling 100 . TO VB PRP RB JJ , DT NN VBZ VBN IN DT NN IN CD VBG CD .
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The percentage change is since year-end . DT NN NN VBZ IN NN .
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The U.S. is required to notify foreign dictators if it knows of coup plans likely to endanger their lives , government officials said . DT NNP VBZ VBN TO VB JJ NNS IN PRP VBZ IN NN NNS JJ TO VB PRP$ NNS , NN NNS VBD .
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The notification policy was part of a set of guidelines on handling coups outlined in a secret 1988 exchange of letters between the Reagan administration and the Senate Intelligence Committee . DT NN NN VBD NN IN DT NN IN NNS IN NN NNS VBN IN DT JJ CD NN IN NNS IN DT NNP NN CC DT NNP NNP NNP .
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The existence of the guidelines has become known since President Bush disclosed them privately to seven Republican senators at a White House meeting last Monday . DT NN IN DT NNS VBZ VBN VBN IN NNP NNP VBD PRP RB TO CD NNP NNS IN DT NNP NNP NN JJ NNP .
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Officials familiar with the meeting said Mr. Bush cited the policy as an example of the sort of congressional requirements the administration contends contribute to the failure of such covert actions as this month 's futile effort to oust Panamanian dictator Manuel Noriega . NNS JJ IN DT NN VBD NNP NNP VBD DT NN IN DT NN IN DT NN IN JJ NNS DT NN VBZ VB TO DT NN IN JJ JJ NNS IN DT NN POS JJ NN TO VB JJ NN NNP NNP .
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According to the officials , Mr. Bush even read to the senators selections from a highly classified letter from the committee to the White House discussing the guidelines . VBG TO DT NNS , NNP NNP RB VB TO DT NNS NNS IN DT RB VBN NN IN DT NN TO DT NNP NNP VBG DT NNS .
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They said the president conceded the notification requirement did n't affect his decision to lend only minor support to this month 's Panama coup effort . PRP VBD DT NN VBD DT NN NN VBD RB VB PRP$ NN TO VB RB JJ NN TO DT NN POS NNP NN NN .
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No notification was ever considered , officials said , apparently because the U.S. did n't think the coup plotters intended to kill Mr. Noriega , but merely sought to imprison him . DT NN VBD RB VBN , NNS VBD , RB IN DT NNP VBD RB VB DT NN NNS VBN TO VB NNP NNP , CC RB VBD TO VB PRP .
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What 's more , both administration and congressional officials hint that the notification requirement is likely to be dropped from the guidelines on coup attempts that are being rewritten by the panel and the White House . WP VBZ JJR , DT NN CC JJ NNS VBP IN DT NN NN VBZ JJ TO VB VBN IN DT NNS IN NN NNS WDT VBP VBG VBN IN DT NN CC DT NNP NNP .
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The rewriting was launched at a meeting between Mr. Bush and intelligence committee leaders Oct. 12 , a few days before the meeting at which the president complained about the rules . DT VBG VBD VBN IN DT NN IN NNP NNP CC NN NN NNS NNP CD , DT JJ NNS IN DT NN IN WDT DT NN VBD IN DT NNS .
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However , the disclosure of the guidelines , first reported last night by NBC News , is already being interpreted on Capitol Hill as an unfair effort to pressure Congress . RB , DT NN IN DT NNS , JJ VBD JJ NN IN NNP NNP , VBZ RB VBG VBN IN NNP NNP IN DT JJ NN TO VB NNP .
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It has reopened the bitter wrangling between the White House and Congress over who is responsible for the failure to oust Mr. Noriega and , more broadly , for difficulties in carrying out covert activities abroad . PRP VBZ VBN DT JJ NN IN DT NNP NNP CC NNP IN WP VBZ JJ IN DT NN TO VB NNP NNP CC , RBR RB , IN NNS IN VBG RP JJ NNS RB .
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A statement issued by the office of the committee chairman , Sen. David Boren -LRB- D. , Okla. -RRB- , charged that the disclosure is part of a continuing effort to shift the criticism for the failure of the recent coup attempt in Panama . DT NN VBN IN DT NN IN DT NN NN , NNP NNP NNP ( NNP , NNP ) , VBN IN DT NN VBZ NN IN DT VBG NN TO VB DT NN IN DT NN IN DT JJ NN NN IN NNP .
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The statement added , `` Someone has regrettably chosen to selectively summarize portions of highly classified correspondence between the two branches of government . DT NN VBD , `` NN VBZ RB VBN TO RB VB NNS IN RB VBN NN IN DT CD NNS IN NN .
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Not only does this come close to a violation of law , it violates the trust we have all worked to develop . '' RB RB VBZ DT JJ RB TO DT NN IN NN , PRP VBZ DT NN PRP VBP DT VBN TO VB . ''
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Sen. Boren said , `` It 's time to stop bickering and work together to develop a clear and appropriate policy to help the country in the future . NNP NNP VBD , `` PRP VBZ NN TO VB NN CC NN RB TO VB DT JJ CC JJ NN TO VB DT NN IN DT NN .
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I 've invited the president to send his suggestions to the committee . '' PRP VBP VBN DT NN TO VB PRP$ NNS TO DT NN . ''
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Republican Sen. William Cohen of Maine , the panel 's vice chairman , said of the disclosure that `` a text torn out of context is a pretext , and it is unfair for those in the White House who are leaking to present the evidence in a selective fashion . '' NNP NNP NNP NNP IN NNP , DT NN POS NN NN , VBD IN DT NN IN `` DT NN VBN IN IN NN VBZ DT NN , CC PRP VBZ JJ IN DT NN DT NNP NNP WP VBP VBG TO VB DT NN IN DT JJ NN . ''
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Sen. Boren said the committee could n't defend itself by making the documents public because that would violate classification rules . NNP NNP VBD DT NN MD RB VB PRP IN VBG DT NNS JJ IN DT MD VB NN NNS .
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But the chairman and other committee members stressed that the notification guideline was n't imposed on the White House by a meddling Congress . CC DT NN CC JJ NN NNS VBD IN DT NN NN VBD RB VBN IN DT NNP NNP IN DT VBG NNP .
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Instead , both congressional and administration officials agreed , it grew out of talks about coup-planning in Panama that were initiated by the administration in July 1988 and stretched into last October . RB , DT JJ CC NN NNS VBD , PRP VBD RP IN NNS IN NN IN NNP WDT VBD VBN IN DT NN IN NNP CD CC VBD IN JJ NNP .
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The guideline was n't a law , but a joint interpretation of how the U.S. might operate during foreign coups in light of the longstanding presidential order banning a U.S. role in assassinations . DT NN VBD RB DT NN , CC DT JJ NN IN WRB DT NNP MD VB IN JJ NNS IN NN IN DT JJ JJ NN VBG DT NNP NN IN NNS .
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In fact , yesterday the administration and Congress were still differing on what had been agreed to . IN NN , NN DT NN CC NNP VBD RB VBG IN WP VBD VBN VBN TO .
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One administration official said notification was required even if the U.S. `` gets wind '' of somebody else 's coup plans that seem likely to endanger a dictator 's life . CD NN NN VBD NN VBD VBN RB IN DT NNP `` VBZ NN '' IN NN RB POS NN NNS WDT VBP JJ TO VB DT NN POS NN .
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But a congressional source close to the panel said the rule only covered coup plans directly involving the U.S. . CC DT JJ NN RB TO DT NN VBD DT NN RB VBD NN NNS RB VBG DT NNP .
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Although the notification guideline was n't carried out in this month 's coup attempt , some administration officials argue that it may have led to hesitation and uncertainty on the part of U.S. intelligence and military operatives in Panama . IN DT NN NN VBD RB VBN IN IN DT NN POS NN NN , DT NN NNS VBP IN PRP MD VB VBN TO NN CC NN IN DT NN IN NNP NN CC JJ NNS IN NNP .
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One senior administration official called the guideline `` outrageous '' and said it could make U.S. operatives reluctant to even listen to coup plans for fear they may get into legal trouble . CD JJ NN NN VBD DT NN `` JJ '' CC VBD PRP MD VB NNP NNS JJ TO RB VB TO NN NNS IN NN PRP MD VB IN JJ NN .
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The issue came to a head last year , officials recalled , partly because the Reagan administration had sought unsuccessfully to win committee approval of funding for new Panama coup efforts . DT NN VBD TO DT NN JJ NN , NNS VBD , RB IN DT NNP NN VBD VBN RB TO VB NN NN IN NN IN JJ NNP NN NNS .
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In addition , both administration and congressional officials said the need for guidelines on coups and assassinations was partly spurred by a White House desire to avoid nasty overseas surprises during the election campaign . IN NN , DT NN CC JJ NNS VBD DT NN IN NNS IN NNS CC NNS VBD RB VBN IN DT NNP NNP NN TO VB JJ JJ NNS IN DT NN NN .
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Though the assassination ban is a White House order that Congress never voted on , the intelligence committees can exercise influence over its interpretation . IN DT NN NN VBZ DT NNP NNP NN IN NNP RB VBD IN , DT NN NNS MD VB NN IN PRP$ NN .
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Last week , Central Intelligence Agency Director William Webster publicly called on Congress to provide new interpretations of the assassination order that would permit the U.S. more freedom to act in coups . JJ NN , NNP NNP NNP NNP NNP NNP RB VBD IN NNP TO VB JJ NNS IN DT NN NN WDT MD VB DT NNP JJR NN TO VB IN NNS .
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The administration has reacted to criticism that it mishandled the latest coup attempt by seeking to blame Congress for restrictions the White House said have hampered its freedom of action . DT NN VBZ VBN TO NN IN PRP VBD DT JJS NN NN IN VBG TO VB NNP IN NNS DT NNP NNP VBD VBP VBN PRP$ NN IN NN .
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However , last week Mr. Webster 's two top CIA deputies said congressional curbs had n't hampered the spy agency 's role in the coup attempt in Panama . RB , JJ NN NNP NNP POS CD JJ NNP NNS VBD JJ NNS VBD RB VBN DT NN NN POS NN IN DT NN NN IN NNP .
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Nevertheless , the administration 's criticisms appeared to have made some headway with Sens. Boren and Cohen after their Oct. 12 meeting with the president . RB , DT NN POS NNS VBD TO VB VBN DT NN IN NNP NNP CC NNP IN PRP$ NNP CD NN IN DT NN .
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The three men agreed to rewrite the guidelines , without changing the basic assassination ban , to clear up any ambiguities that may have hampered U.S. encouragement of coups against anti-American leaders . DT CD NNS VBD TO VB DT NNS , IN VBG DT JJ NN NN , TO VB IN DT NNS WDT MD VB VBN NNP NN IN NNS IN JJ NNS .
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The new argument over the notification guideline , however , could sour any atmosphere of cooperation that existed . DT JJ NN IN DT NN NN , RB , MD VB DT NN IN NN WDT VBD .
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Gerald F. Seib contributed to this article . NNP NNP NNP VBD TO DT NN .
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-LRB- During its centennial year , The Wall Street Journal will report events of the past century that stand as milestones of American business history . -RRB- ( IN PRP$ NN NN , DT NNP NNP NNP MD VB NNS IN DT JJ NN WDT VBP IN NNS IN JJ NN NN . )
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MUTUAL FUNDS ARRIVED IN THE U.S. during the Roaring Twenties -LRB- they had been in Britain for a century -RRB- , but they did n't boom until the money market fund was created in the 1970s . JJ NNS VBD IN DT NNP IN DT NNP NNP ( PRP VBD VBN IN NNP IN DT NN ) , CC PRP VBD RB VB IN DT NN NN NN VBD VBN IN DT NNS .
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By 1980 , there were more than 100 such funds . IN CD , EX VBD JJR IN CD JJ NNS .
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Besides creating a vehicle for investors , money market funds also helped rewrite banking regulations . IN VBG DT NN IN NNS , NN NN NNS RB VBD VB NN NNS .
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The idea was to let small investors , the backbone of the fund business , deal in the money market 's high short-term interest rates . DT NN VBD TO VB JJ NNS , DT NN IN DT NN NN , NN IN DT NN NN POS JJ JJ NN NNS .
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This had been the exclusive province of those rich enough to use six-figure sums to get income that was figured beyond the third or fourth decimal place . DT VBD VBN DT JJ NN IN DT JJ RB TO VB JJ NNS TO VB NN WDT VBD VBN IN DT JJ CC JJ NN NN .
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The now-standard price of $ 1 a share came about by accident . DT JJ NN IN $ CD DT NN VBD IN IN NN .
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An early fund had filed a registration with the Securities and Exchange Commission that included a fixed $ 1 price . DT JJ NN VBD VBN DT NN IN DT NNP CC NNP NNP WDT VBD DT VBN $ CD NN .
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It arrived just as the regulator handling such operations was retiring . PRP VBD RB IN DT NN VBG JJ NNS VBD VBG .
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His successor approved the $ 1 price in the process of clearing the backed-up papers on his desk . PRP$ NN VBD DT $ CD NN IN DT NN IN VBG DT JJ NNS IN PRP$ NN .
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When Dreyfus started the first advertising-backed retail fund in February 1974 , it was priced at $ 10 a share -LRB- and reached $ 1 billion in assets in one year . -RRB- WRB NNP VBD DT JJ JJ JJ NN IN NNP CD , PRP VBD VBN IN $ CD DT NN ( CC VBN $ CD CD IN NNS IN CD NN . )
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Dreyfus moved to the $ 1 price after the SEC set standards -- an average 120-day maturity of high-grade paper -- that are still the rule . NNP VBD TO DT $ CD NN IN DT NNP VBD NNS : DT JJ JJ NN IN JJ NN : WDT VBP RB DT NN .
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Keeping the listed price at a dollar is primarily a convenience . VBG DT VBN NN IN DT NN VBZ RB DT NN .
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Actually , the funds do fluctuate , but beyond the third decimal place . RB , DT NNS VBP VB , CC IN DT JJ NN NN .
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Rounding-off keeps them at $ 1 . NN VBZ PRP IN $ CD .
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Eventually , the money funds ' success forced relaxation of curbs on bank interest rates to allow banks to offer competing yields . RB , DT NN NNS POS NN VBD NN IN NNS IN NN NN NNS TO VB NNS TO VB VBG NNS .
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The new instrument also introduced many to the industry -- 30 % of fund owners -LRB- there are more than 54 million accounts -RRB- started with a money fund . DT JJ NN RB VBD JJ TO DT NN : CD NN IN NN NNS ( EX VBP JJR IN CD CD NNS ) VBD IN DT NN NN .
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Today more than 470 money market funds have total assets exceeding $ 350 billion . NN JJR IN CD NN NN NNS VBP JJ NNS VBG $ CD CD .
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-LRB- The companion tax-exempt funds add $ 71 billion . -RRB- ( DT NN JJ NNS VBP $ CD CD . )
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Dreyfus alone has seen its money market funds grow from $ 1 billion in 1975 to closes to $ 15 billion today . NNP RB VBZ VBN PRP$ NN NN NNS VBP IN $ CD CD IN CD TO VBZ TO $ CD CD NN .
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Procter & Gamble Co. and Noxell Corp. said they received early termination of the waiting period under the Hart-Scott-Rodino Act regarding the proposed $ 1.4 billion merger of Noxell into P&G . NNP CC NNP NNP CC NNP NNP VBD PRP VBD JJ NN IN DT VBG NN IN DT NNP NNP VBG DT VBN $ CD CD NN IN NNP IN NNP .
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Shareholders of Noxell , of Hunt Valley , Md. , will vote on the merger at a special meeting on Nov. 30 , the companies said . NNS IN NNP , IN NNP NNP , NNP , MD VB IN DT NN IN DT JJ NN IN NNP CD , DT NNS VBD .
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P&G , Cincinnati , agreed to exchange 0.272 share of its common stock for each share of Noxell common and Class B stock , a total of about 11 million P&G shares . NNP , NNP , VBD TO VB CD NN IN PRP$ JJ NN IN DT NN IN NNP JJ CC NNP NNP NN , DT NN IN IN CD CD NNP NNS .
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The transaction would mark the entry of P&G into cosmetics . DT NN MD VB DT NN IN NNP IN NNS .
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The company already markets a wide range of detergents , food , household and health-care products . DT NN RB VBZ DT JJ NN IN NNS , NN , NN CC NN NNS .
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Shareholders of Messerschmitt-Boelkow-Blohm G.m.b . H. postponed their formal endorsement of a merger with Daimler-Benz AG until another meeting on Nov. 17 . NNS IN NNP NNP . NNP VBD PRP$ JJ NN IN DT NN IN NNP NNP IN DT NN IN NNP CD .
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The owners of the defense and aerospace concern , which include three regional states , several industrial companies and banks , met Friday to discuss the final terms of the transaction , in which Daimler-Benz will acquire 50.01 % of DT NNS IN DT NN CC NN NN , WDT VBP CD JJ NNS , JJ JJ NNS CC NNS , VBD NNP TO VB DT JJ NNS IN DT NN , IN WDT NNP MD VB CD NN IN
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But agreement aparently could n't be reached because of opposition from the states of Hamburg and Bremen , which are demanding more influence over the German Airbus operations and a better guarantee against job losses in the troubled Northern German region . CC NN RB MD RB VB VBN IN IN NN IN DT NNS IN NNP CC NNP , WDT VBP VBG JJR NN IN DT NNP NNP NNS CC DT JJR NN IN NN NNS IN DT JJ JJ JJ NN .
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The two states and the state of Bavaria still hold a majority in MBB , but their stake will fall to around 30 % after Daimler-Benz acquires its stake in the concern . DT CD NNS CC DT NN IN NNP RB VB DT NN IN NNP , CC PRP$ NN MD VB TO IN CD NN IN NNP VBZ PRP$ NN IN DT NN .
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Jeffrey E. Levin was named vice president and chief economist of this commodity futures and options exchange . NNP NNP NNP VBD VBN NN NN CC JJ NN IN DT NN NNS CC NNS VBP .
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He had been associate professor in the department of finance at Seton Hall University . PRP VBD VBN JJ NN IN DT NN IN NN IN NNP NNP NNP .
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SIERRA TUCSON Cos. said it completed its initial public offering of 2.5 million common shares , which raised $ 30 million . NNP NNP NNP VBD PRP VBD PRP$ JJ JJ NN IN CD CD JJ NNS , WDT VBD $ CD CD .
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The Tucson , Ariz. , operator of addiction-treatment centers said proceeds will be used for expansion , to pay debt and for general corporate purposes . DT NNP , NNP , NN IN JJ NNS VBD NNS MD VB VBN IN NN , TO VB NN CC IN JJ JJ NNS .
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Oppenheimer & Co. was the lead underwriter . NNP CC NNP VBD DT NN NN .
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The government issues its first reading on third-quarter real gross national product this week in a report that is expected to disclose much tamer inflation . DT NN NNS PRP$ JJ NN IN JJ JJ JJ JJ NN DT NN IN DT NN WDT VBZ VBN TO VB RB JJR NN .
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The consensus view on real GNP , the total value of the nation 's output of goods and services adjusted for inflation , calls for a 2.3 % gain , down from the second quarter 's 2.5 % , according to MMS International , a unit of McGraw-Hill Inc. , New York . DT NN NN IN JJ NNP , DT JJ NN IN DT NN POS NN IN NNS CC NNS VBN IN NN , VBZ IN DT CD NN NN , RB IN DT JJ NN POS CD NN , VBG TO NNP NNP , DT NN IN NNP NNP , NNP NNP .
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But inflation , as measured by the GNP deflator in Thursday 's report , is expected to rise only 3.5 % , down from 4.6 % in the second quarter . CC NN , IN VBN IN DT NNP NN IN NNP POS NN , VBZ VBN TO VB RB CD NN , RB IN CD NN IN DT JJ NN .
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`` Inflation could be a real surprise , '' said Samuel D. Kahan , chief financial economist at Kleinwort Benson Government Securities Inc. , in Chicago . `` NN MD VB DT JJ NN , '' VBD NNP NNP NNP , JJ JJ NN IN NNP NNP NNP NNP NNP , IN NNP .
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`` If that gets people excited , it could serve as an impetus to the fixed-income markets to lower their rates , '' he added . `` IN DT VBZ NNS VBN , PRP MD VB IN DT NN TO DT NN NNS TO JJR PRP$ NNS , '' PRP VBD .
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The week 's other notable indicators include mid-October auto sales , September durable goods orders as well as September personal income , personal consumption and the saving rate . DT NN POS JJ JJ NNS VBP NNP NN NNS , NNP JJ NNS NNS RB RB IN NNP JJ NN , JJ NN CC DT VBG NN .
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Most are expected to fall below previous-month levels . JJS VBP VBN TO VB IN JJ NNS .
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Many economists see even slower GNP growth for the remainder of the year , with some leaning more strongly toward a possible recession . JJ NNS VBP RB JJR NNP NN IN DT NN IN DT NN , IN DT VBG RBR RB IN DT JJ NN .
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In addition to softer production data , weaker housing starts and lower corporate profits currently in evidence , some analysts believe the two recent natural disasters -- Hurricane Hugo and the San Francisco earthquake -- will carry economic ramifications in the fourth quarter . IN NN TO JJR NN NNS , JJR NN VBZ CC JJR JJ NNS RB IN NN , DT NNS VBP DT CD JJ JJ NNS : NNP NNP CC DT NNP NNP NN : MD VB JJ NNS IN DT JJ NN .
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The recent one-day , 190-point drop in the Dow Jones Industrial Average seems to be significant to economists mainly for its tacit comment on the poor quality of third-quarter profits now being reported . DT JJ JJ , JJ NN IN DT NNP NNP NNP NNP VBZ TO VB JJ TO NNS RB IN PRP$ JJ NN IN DT JJ NN IN JJ NNS RB VBG VBN .
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`` The stock market is sick because profits are crumbling , '' says Michael K. Evans , president of Evans Economics Inc. , Washington . `` DT NN NN VBZ JJ IN NNS VBP VBG , '' VBZ NNP NNP NNP , NN IN NNP NNP NNP , NNP .
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The economy , he noted , moves the market , not vice versa . DT NN , PRP VBD , VBZ DT NN , RB NN RB .
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On the other hand , Mr. Evans expects the hurricane and the earthquake `` to take a hunk out of fourth-quarter GNP . '' IN DT JJ NN , NNP NNP VBZ DT NN CC DT NN `` TO VB DT NN IN IN JJ NNP . ''
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His estimate of 3.3 % for third-quarter GNP is higher than the consensus largely because he believes current inventories are n't as low as official figures indicate . PRP$ NN IN CD NN IN JJ NNP VBZ JJR IN DT NN RB IN PRP VBZ JJ NNS VBP RB RB JJ IN JJ NNS VBP .
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Demand , he believes , is being met from overhang rather than new production . NN , PRP VBZ , VBZ VBG VBN IN NN RB IN JJ NN .
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By and large , economists believe the two natural catastrophes will limit economic damage to their regions . IN CC JJ , NNS VBP DT CD JJ NNS MD VB JJ NN TO PRP$ NNS .
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Edward J. Campbell , economist at Brown Brothers Harriman & Co. , New York , noted that large increases in construction activity along with government and private relief efforts could offset loss of production in those areas . NNP NNP NNP , NN IN NNP NNP NNP CC NNP , NNP NNP , VBD IN JJ NNS IN NN NN IN IN NN CC JJ NN NNS MD VB NN IN NN IN DT NNS .
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Gary Ciminero , economist at Fleet\/Norstar Financial Group , Providence , R.I. , expects the deflator to rise 3.7 % , well below the second quarter 's 4.6 % , partly because of what he believes will be temporarily better price behavior . NNP NNP , NN IN NNP NNP NNP , NNP , NNP , VBZ DT NN TO VB CD NN , RB IN DT JJ NN POS CD NN , RB IN IN WP PRP VBZ MD VB RB JJR NN NN .
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He expects real GNP growth of only 2.1 % for the quarter , noting a wider trade deficit , slower capital and government spending and the lower inventory figures . PRP VBZ JJ NNP NN IN RB CD NN IN DT NN , VBG DT JJR NN NN , JJR NN CC NN NN CC DT JJR NN NNS .
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Sung Won Sohn , chief economist at Norwest Corp. , Minneapolis , holds that the recent stock-market volatility `` increases the possibility of economic recession and reinforces the bad news '' from recent trade deficit , employment and housing reports . NNP NNP NNP , JJ NN IN NNP NNP , NNP , VBZ IN DT JJ NN NN `` VBZ DT NN IN JJ NN CC VBZ DT JJ NN '' IN JJ NN NN , NN CC NN NNS .
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The consensus calls for a 0.5 % increase in September personal income and a 0.3 % gain in consumption . DT NN VBZ IN DT CD NN NN IN NNP JJ NN CC DT CD NN NN IN NN .
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In August , personal income rose 0.4 % and personal consumption increased 0.9 % . IN NNP , JJ NN VBD CD NN CC JJ NN VBN CD NN .
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Charles Lieberman , managing director of financial markets reasearch at Manufacturers Hanover Securities Corp. , New York , said Hurrican Hugo shaved 0.1 % to 0.2 % from personal-income growth , because of greatly diminished rental income from tourism . NNP NNP , VBG NN IN JJ NNS NN IN NNP NNP NNP NNP , NNP NNP , VBD NNP NNP VBD CD NN TO CD NN IN JJ NN , IN IN RB VBN JJ NN IN NN .
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Durable goods orders for September , due out tomorrow , are expected to show a slip of 1 % , compared with August 's 3.9 % increase . JJ NNS NNS IN NNP , JJ IN NN , VBP VBN TO VB DT NN IN CD NN , VBN IN NNP POS CD NN NN .
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As usual , estimates on the fickle report are wide , running from a drop of 3.5 % to a gain of 1.6 % . IN JJ , VBZ IN DT JJ NN VBP JJ , VBG IN DT NN IN CD NN TO DT NN IN CD NN .
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HASTINGS MANUFACTURING Co. declared a regular quarterly dividend of 10 cents a share and an extra dividend of five cents a share on its common stock , payable Dec. 15 to shares of record Nov. 17 . NNP NNP NNP VBD DT JJ JJ NN IN CD NNS DT NN CC DT JJ NN IN CD NNS DT NN IN PRP$ JJ NN , JJ NNP CD TO NNS IN NN NNP CD .
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This is the 11th consecutive quarter in which the company has paid shareholders an extra dividend of five cents . DT VBZ DT JJ JJ NN IN WDT DT NN VBZ VBN NNS DT JJ NN IN CD NNS .
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The Hastings , Mich. , concern makes piston rings , filters and fuel pumps . DT NNP , NNP , NN VBZ NN NNS , NNS CC NN NNS .
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Vickers PLC , a United Kingdom defense and engineering company , said an investment unit controlled by New Zealand financier Ron Brierley raised its stake in the company Friday to 15.02 % from about 14.6 % Thursday and from 13.7 % the previous week . NNP NNP , DT NNP NNP NN CC NN NN , VBD DT NN NN VBN IN NNP NNP NN NNP NNP VBD PRP$ NN IN DT NN NNP TO CD NN IN IN CD NN NNP CC IN CD NN DT JJ NN .
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I.E.P. Securities Ltd. , a unit of Mr. Brierley 's Hong Kong-based Industrial Equity -LRB- Pacific -RRB- Ltd. , boosted its holdings in Vickers to 38.8 million shares . NNP NNP NNP , DT NN IN NNP NNP POS NNP NNP NNP NNP ( NNP ) NNP , VBD PRP$ NNS IN NNP TO CD CD NNS .
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The latest purchase follows small increases in his holdings made over the past five months . DT JJS NN VBZ JJ NNS IN PRP$ NNS VBN IN DT JJ CD NNS .
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In May , Mr. Brierley 's stake shrank to 8.7 % after ranging between 9 % and 11 % for much of the previous year . IN NNP , NNP NNP POS NN VBD TO CD NN IN VBG IN CD NN CC CD NN IN NN IN DT JJ NN .
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`` Ron Brierley clearly views our company as a good investment , '' a Vickers spokesman said . `` NNP NNP RB VBZ PRP$ NN IN DT JJ NN , '' DT NNP NN VBD .
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The spokesman refused to comment on speculation that Industrial Equity might use its interest as a platform to launch a hostile bid for the company . DT NN VBD TO VB IN NN IN NNP NNP MD VB PRP$ NN IN DT NN TO VB DT JJ NN IN DT NN .
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Vickers makes tanks for the U.K. army , Rolls Royce cars , and has marine and medical businesses . NNP VBZ NNS IN DT NNP NN , NNP NNP NNS , CC VBZ NN CC JJ NNS .
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When Rune Andersson set out to revive flagging Swedish conglomerate Trelleborg AB in the early 1980s , he spurned the advice of trendy management consultants . WRB NNP NNP VBD IN TO VB JJ JJ NN NNP NNP IN DT JJ CD , PRP VBD DT NN IN JJ NN NNS .
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`` All these consultants kept coming around telling us we should concentrate on high technology , electronics or biotechnology , and get out of mature basic industries , '' Mr. Andersson recalls . `` DT DT NNS VBD VBG IN VBG PRP PRP MD VB IN JJ NN , NNS CC NN , CC VB IN IN JJ JJ NNS , '' NNP NNP VBZ .
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Yet under its 45-year-old president , Trelleborg moved aggressively into those unfashionable base industries -- first strengthening its existing rubber and plastics division , later adding mining as well as building and construction materials . RB IN PRP$ JJ NN , NNP VBD RB IN DT JJ NN NNS : JJ VBG PRP$ VBG NN CC NNS NN , RB VBG NN RB RB IN NN CC NN NNS .
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It was a gutsy move for a little-known executive , fired after only two months as president of his previous company . PRP VBD DT JJ NN IN DT JJ NN , VBN IN RB CD NNS IN NN IN PRP$ JJ NN .
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But going against the grain has never bothered Mr. Andersson . CC VBG IN DT NN VBZ RB VBN NNP NNP .
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Stroking his trademark white goatee during a recent interview , the diminutive Swede quips : `` It turned out to be lucky for us . VBG PRP$ NN JJ NN IN DT JJ NN , DT JJ NN VBZ : `` PRP VBD IN TO VB JJ IN PRP .
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If the whole market thinks what you 're doing is crazy you do n't have much competition . '' IN DT JJ NN VBZ WP PRP VBP VBG VBZ JJ PRP VBP RB VB JJ NN . ''
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Mr. Andersson is anxious to strengthen Trelleborg 's balance sheet . NNP NNP VBZ JJ TO VB NNP POS NN NN .
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Characteristically , he did n't waste much time getting started . RB , PRP VBD RB VB JJ NN VBG VBN .
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On Tuesday , Trelleborg 's directors announced plans to spin off two big divisions -- minerals processing , and building and distribution -- as separately quoted companies on Stockholm 's Stock Exchange . IN NNP , NNP POS NNS VBD NNS TO VB IN CD JJ NNS : NNS NN , CC NN CC NN : IN RB VBN NNS IN NNP POS NNP NNP .
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At current market prices , the twin public offerings to be completed next year would add an estimated 2.5 billion Swedish kronor -LRB- $ 386 million -RRB- to Trelleborg 's coffers , analysts say . IN JJ NN NNS , DT JJ JJ NNS TO VB VBN JJ NN MD VB DT VBN CD CD JJ NNS ( $ CD CD ) TO NNP POS NNS , NNS VBP .
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The board had also been expected to approve a SKr1.5 billion international offering of new Trelleborg shares . DT NN VBD RB VBN VBN TO VB DT NNS CD JJ NN IN JJ NNP NNS .
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But that share issue -- intended to make Trelleborg better known among international investors -- was postponed until market conditions stabilize , people familiar with the situation say . CC DT NN NN : VBN TO VB NNP RBR VBN IN JJ NNS : VBD VBN IN NN NNS VBP , NNS JJ IN DT NN VBP .
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Trelleborg 's internationally traded `` Bfree '' series stock plunged SKr29 -LRB- $ 4.48 -RRB- to SKr205 -LRB- $ 31.65 -RRB- in volatile trading Monday in Stockholm . NNP POS RB VBN `` NNP '' NN NN VBD NNS ( $ CD ) TO NNS ( $ CD ) IN JJ NN NNP IN NNP .
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Tuesday , the shares regained SKr20 , closing at SKr225 . NNP , DT NNS VBD NNS , VBG IN NNS .
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Mr. Andersson says he is confident that taking parts of the company public will help erase the `` conglomerate stigma '' that has held down Trelleborg 's share price . NNP NNP VBZ PRP VBZ JJ IN VBG NNS IN DT NN NN MD VB VB DT `` NN NN '' WDT VBZ VBN RB NNP POS NN NN .
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Trelleborg plans to remain the dominant shareholder with stakes of slightly less than 50 % of both units . NNP VBZ TO VB DT JJ NN IN NNS IN RB JJR IN CD NN IN DT NNS .
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The spinoff should solve a problem for the parent . DT NN MD VB DT NN IN DT NN .
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A family foundation set up by late founder Henry Dunker controls 59 % of Trelleborg 's voting shares outstanding . DT NN NN VBN IN IN JJ NN NNP NNP NNS CD NN IN NNP POS NN NNS JJ .
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But the foundation bylaws require the entire Trelleborg stake to be sold in the open market if control drops below 50 % . CC DT NN NNS VBP DT JJ NNP NN TO VB VBN IN DT JJ NN IN NN VBZ IN CD NN .
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That possibility had crept closer as repeated new share offerings to finance Trelleborg 's rapid growth steadily diluted the foundation 's holding . DT NN VBD VBN RBR IN VBN JJ NN NNS TO VB NNP POS JJ NN RB VBD DT NN POS VBG .
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That growth is the result of Mr. Andersson 's shopping spree , during which he has bought and sold more than 100 companies during the past five years . DT NN VBZ DT NN IN NNP NNP POS NN NN , IN WDT PRP VBZ VBN CC VBN JJR IN CD NNS IN DT JJ CD NNS .
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Most of the new additions were barely profitable , if not outright loss makers . JJS IN DT JJ NNS VBD RB JJ , IN RB JJ NN NNS .
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Applying prowess gained during earlier stints at appliance maker AB Electrolux , Mr. Andersson and a handful of loyal lieutenants aggressively stripped away dead wood -- and got quick results . VBG NN VBD IN JJR NNS IN NN NN NNP NNP , NNP NNP CC DT NN IN JJ NNS RB VBN RB JJ NN : CC VBD JJ NNS .
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The treatment turned Trelleborg into one of Scandinavia 's biggest and fastest-growing industrial concerns . DT NN VBD NNP IN CD IN NNP POS JJS CC JJ JJ NNS .
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Between 1985 and 1988 , sales multipled more than 10 times and pretax profit surged almost twelvefold . IN CD CC CD , NNS VBD JJR IN CD NNS CC JJ NN VBD RB JJ .
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Many analysts expect Mr. Andersson , who owns 1.7 % of the company , to be named Trelleborg 's new chairman when Ernst Herslow steps down next year . JJ NNS VBP NNP NNP , WP VBZ CD NN IN DT NN , TO VB VBN NNP POS JJ NN WRB NNP NNP NNS RB JJ NN .
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But the promotion is n't likely to alter a management style Mr. Andersson describes as `` being the driving force leading the troops , not managing by sitting back with a cigar waiting for people to bring me ideas . '' CC DT NN VBZ RB JJ TO VB DT NN NN NNP NNP VBZ IN `` VBG DT VBG NN VBG DT NNS , RB VBG IN VBG RB IN DT NN VBG IN NNS TO VB PRP NNS . ''
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Last month , in his boldest move yet , Mr. Andersson and Trelleborg joined forces with Canada 's Noranda Inc. in a joint $ 2 billion hostile takeover of another big Canadian mining concern , Falconbridge Ltd . JJ NN , IN PRP$ JJS NN RB , NNP NNP CC NNP VBD NNS IN NNP POS NNP NNP IN DT JJ $ CD CD JJ NN IN DT JJ JJ NN NN , NNP NNP .
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Industry analysts suggest that the conquest of Falconbridge could vault Trelleborg from a regional Scandinavian success story to a world-class mining concern . NN NNS VBP IN DT NN IN NNP MD VB NNP IN DT JJ NNP NN NN TO DT JJ NN NN .
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`` Trelleborg is n't in the same league yet as mining giants such as RTZ Corp. or Anglo-American Corp. , '' says Mike Kurtanjek , a mining analyst at James Capel & Co. , London . `` NNP VBZ RB IN DT JJ NN RB IN NN NNS JJ IN NNP NNP CC NNP NNP , '' VBZ NNP NNP , DT NN NN IN NNP NNP CC NNP , NNP .
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`` But we certainly like what we 've seen so far . '' `` CC PRP RB IN WP PRP VBP VBN RB RB . ''
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But Trelleborg still must clear some tough hurdles . CC NNP RB MD VB DT JJ NNS .
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Mr. Andersson acknowledges that the company 's mining division `` will be busy for a while digesting its recent expansion . '' NNP NNP VBZ IN DT NN POS NN NN `` MD VB JJ IN DT NN VBG PRP$ JJ NN . ''
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Booming metals prices have fueled Trelleborg 's recent profit surge , raising mining 's share of pretax profit to 68 % this year from a big loss two years earlier . JJ NNS NNS VBP VBN NNP POS JJ NN NN , VBG NN POS NN IN JJ NN TO CD NN DT NN IN DT JJ NN CD NNS RBR .
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But analysts caution an expected fall in metal prices next year could slow profit growth . CC NNS VBP DT VBN NN IN NN NNS JJ NN MD VB NN NN .
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Mining is likely to remain Trelleborg 's main business . NNP VBZ JJ TO VB NNP POS JJ NN .
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Analysts say its chances of success will likely hinge on how well Trelleborg manages to cooperate with Noranda in the Falconbridge venture . NNS VBP PRP$ NNS IN NN MD RB NN IN WRB RB NNP VBZ TO VB IN NNP IN DT NNP NN .
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Noranda and Trelleborg each came close to winning Falconbridge alone before the successful joint bid . NNP CC NNP DT VBD RB TO VBG NNP RB IN DT JJ JJ NN .
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Some analysts say Noranda would prefer to break up Falconbridge , and that the Swedes -- relatively inexperienced in international mining operations -- could have problems holding their own with a much bigger partner like Noranda operating on its home turf . DT NNS VBP NNP MD VB TO VB IN NNP , CC IN DT NNPS : RB JJ IN JJ NN NNS : MD VB NNS VBG PRP$ JJ IN DT RB JJR NN IN NNP VBG IN PRP$ NN NN .
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Mr. Andersson insists that Trelleborg and Noranda have n't discussed a Falconbridge break-up . NNP NNP VBZ IN NNP CC NNP VBP RB VBN DT NNP NN .
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Falconbridge , he says , will continue operating in its current form . NNP , PRP VBZ , MD VB VBG IN PRP$ JJ NN .
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`` We 'd be reluctant to accept 50-50 ownership in a manufacturing company . `` PRP MD VB JJ TO VB JJ NN IN DT NN NN .
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But such partnerships are common in mining , where there are n't problems or conflict of interest or risk of cheating by a partner , '' Trelleborg 's president says . CC JJ NNS VBP JJ IN NN , WRB EX VBP RB NNS CC NN IN NN CC NN IN NN IN DT NN , '' NNP POS NN NNS .
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Perhaps more important , both companies share Mr. Andersson 's belief in the coming renaissance of base industries . RB RBR JJ , DT NNS VBP NNP NNP POS NN IN DT VBG NN IN NN NNS .
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`` If the 1980s were a decade of consumption , the '90s will be the investment decade , '' Mr. Andersson says . `` IN DT CD VBD DT NN IN NN , DT NNS MD VB DT NN NN , '' NNP NNP VBZ .
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`` The whole of Europe and the industrialized world is suffering from a breakdown in infrastructure investment , '' he says . `` DT NN IN NNP CC DT VBN NN VBZ VBG IN DT NN IN NN NN , '' PRP VBZ .
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`` That 's beginning to change . `` DT VBZ VBG TO VB .
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And investment is the key word for base metals , and most other businesses Trelleborg is in . CC NN VBZ DT JJ NN IN NN NNS , CC RBS JJ NNS NNP VBZ RB .
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Apple Computer Inc. posted improved fiscal fourth-quarter profit due largely to a $ 48 million gain on the sale of its stock in Adobe Systems Inc . NNP NNP NNP VBD VBN JJ JJ NN JJ RB TO DT $ CD CD NN IN DT NN IN PRP$ NN IN NNP NNP NNP .
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Excluding the gain , the company registered a modest 4.6 % increase for the quarter ended Sept. 29 to $ 113 million , or 87 cents a share , from the year-earlier $ 107.9 million , or 84 cents a share . VBG DT NN , DT NN VBD DT JJ CD NN NN IN DT NN VBN NNP CD TO $ CD CD , CC CD NNS DT NN , IN DT JJ $ CD CD , CC CD NNS DT NN .
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Proceeds of the Adobe sale brought net income in the quarter to $ 161.1 million , or $ 1.24 a share . NNS IN DT NNP NN VBD JJ NN IN DT NN TO $ CD CD , CC $ CD DT NN .
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Apple shares fell 75 cents in over-the-counter trading to close at $ 48 a share . NN NNS VBD CD NNS IN JJ NN TO VB IN $ CD DT NN .
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Fiscal fourth-quarter sales grew about 18 % to $ 1.38 billion from $ 1.17 billion a year earlier . JJ JJ NNS VBD IN CD NN TO $ CD CD IN $ CD CD DT NN RBR .
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Without the Adobe gain , Apple 's full-year operating profit edged up 1.5 % to $ 406 million , or $ 3.16 a share , from $ 400.3 million , or $ 3.08 a share . IN DT NNP NN , NNP POS JJ NN NN VBD IN CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN .
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Including the Adobe gain , full-year net was $ 454 million , or $ 3.53 a share . VBG DT NNP NN , JJ NN VBD $ CD CD , CC $ CD DT NN .
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Sales for the year rose nearly 30 % to $ 5.28 billion from $ 4.07 billion a year earlier . NNS IN DT NN VBD RB CD NN TO $ CD CD IN $ CD CD DT NN RBR .
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John Sculley , chairman and chief executive officer , credited the Macintosh SE\/30 and IIcx computers , introduced in the winter , for the brightened sales performance . NNP NNP , NN CC JJ JJ NN , VBD DT NNP NNP CC NNP NNS , VBN IN DT NN , IN DT VBN NNS NN .
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Mr. Sculley also indicated that sagging margins , which dogged the company through most of 1989 , began to turn up in the fourth quarter as chip prices eased . NNP NNP RB VBD IN VBG NNS , WDT VBD DT NN IN RBS IN CD , VBD TO VB IN IN DT JJ NN IN NN NNS VBD .
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`` Adverse pressure on gross margins ... has subsided , '' Mr. Sculley said . `` JJ NN IN JJ NNS : VBZ VBN , '' NNP NNP VBD .
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Margins in the fiscal fourth quarter perked up , rising to 51 % from 49.2 % a year earlier . NNS IN DT JJ JJ NN VBD IN , VBG TO CD NN IN CD NN DT NN RBR .
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For all of fiscal 1989 , however , the average gross margin was 49 % , below the average 1988 gross margin of 51 % . IN DT IN JJ CD , RB , DT JJ JJ NN VBD CD NN , IN DT JJ CD JJ NN IN CD NN .
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Lower component costs -- especially for DRAMs , or dynamic random access memory chips -- were cited for the easing of margin pressure on the company , a spokeswoman said . JJR NN NNS : RB IN NNS , CC JJ JJ NN NN NNS : VBD VBN IN DT NN IN NN NN IN DT NN , DT NN VBD .
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Looking ahead to 1990 , Mr. Sculley predicted `` another year of significant revenue growth , '' along with improved profitability , as the recovery in gross margins continues into 1990 . VBG RB TO CD , NNP NNP VBD `` DT NN IN JJ NN NN , '' IN IN VBN NN , IN DT NN IN JJ NNS VBZ IN CD .
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Gary J. Schantz , 44 years old , was named president and chief operating officer . NNP NNP NNP , CD NNS JJ , VBD VBN NN CC JJ VBG NN .
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Polymerix makes lumber-like materials that it describes as `` plastic wood . '' NNP VBZ JJ NNS IN PRP VBZ IN `` NN NN . ''
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The operating chief 's post is new . DT VBG NN POS NN VBZ JJ .
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Martin Schrager , 51 , who had been president , was named vice chairman . NNP NNP , CD , WP VBD VBN NN , VBD VBN NN NN .
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He remains chief executive officer . PRP VBZ JJ JJ NN .
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Mr. Schantz was vice president and chief operating officer of the Acrylic division of Polycast Technology Corp . NNP NNP VBD NN NN CC JJ VBG NN IN DT NNP NN IN NNP NNP NNP .
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Separately , the board expanded to six members with the election of David L. Holewinski , a consultant . RB , DT NN VBN TO CD NNS IN DT NN IN NNP NNP NNP , DT NN .
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The company also said it privately placed stock and warrants in exchange for $ 750,000 . DT NN RB VBD PRP RB VBD NN CC NNS IN NN IN $ CD .
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Terry L. Haines , formerly general manager of Canadian operations , was elected to the new position of vice president , North American sales , of this plastics concern . NNP NNP NNP , RB JJ NN IN JJ NNS , VBD VBN TO DT JJ NN IN NN NN , NNP JJ NNS , IN DT NNS VBP .
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Also , Larry A. Kushkin , executive vice president , North American operations , was named head of the company 's international automotive operations , another new position . RB , NNP NNP NNP , JJ NN NN , NNP JJ NNS , VBD VBN NN IN DT NN POS JJ JJ NNS , DT JJ NN .
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He remains an executive vice president , the company said , and his new position reflects `` the growing importance of the world automotive market as a market for A. Schulman 's high performance plastic materials . '' PRP VBZ DT JJ NN NN , DT NN VBD , CC PRP$ JJ NN VBZ `` DT VBG NN IN DT NN JJ NN IN DT NN IN NNP NNP POS JJ NN NN NNS . ''
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Gordon Trimmer will succeed Mr. Haines as manager of Canadian operations , and Mr. Kushkin 's former position is n't being filled at this time , the company said . NNP NNP MD VB NNP NNP IN NN IN JJ NNS , CC NNP NNP POS JJ NN VBZ RB VBG VBN IN DT NN , DT NN VBD .
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General Electric Co. said it signed a contract with the developers of the Ocean State Power project for the second phase of an independent $ 400 million power plant , which is being built in Burrillville , R.I . NNP NNP NNP VBD PRP VBD DT NN IN DT NNS IN DT NNP NNP NNP NN IN DT JJ NN IN DT JJ $ CD CD NN NN , WDT VBZ VBG VBN IN NNP , NNP .
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GE , along with a division of Ebasco , a subsidiary of Enserch Corp. , have been building the first 250-megawatt phase of the project , which they expect to complete in late 1990 . NNP , IN IN DT NN IN NNP , DT NN IN NNP NNP , VBP VBN VBG DT JJ JJ NN IN DT NN , WDT PRP VBP TO VB IN JJ CD .
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The second portion will be completed the following year . DT JJ NN MD VB VBN DT VBG NN .
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GE 's Power Generation subsidiary will operate and maintain the plant upon its completion . NNP POS NNP NNP NN MD VB CC VB DT NN IN PRP$ NN .
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The Environmental Protection Agency is getting a lot out of the Superfund program . DT NNP NNP NNP VBZ VBG DT NN IN IN DT NNP NN .
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Of the $ 4.4 billion spent so far on the program , 60 % is going for administrative costs , management and research , the Office of Technology Assessment just reported . IN DT $ CD CD VBD RB RB IN DT NN , CD NN VBZ VBG IN JJ NNS , NN CC NN , DT NNP IN NNP NNP RB VBD .
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Only 36 of 1,200 priority cleanup sites have been `` decontaminated . '' RB CD IN CD NN NN NNS VBP VBN `` VBN . ''
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Over the next 50 years , $ 500 billion is earmarked for the program . IN DT JJ CD NNS , $ CD CD VBZ VBN IN DT NN .
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At current allocations , that means EPA will be spending $ 300 billion on itself . IN JJ NNS , WDT VBZ NNP MD VB NN $ CD CD IN PRP .
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It may not be toxic , but we know where one waste dump is . PRP MD RB VB JJ , CC PRP VBP WRB CD NN NN NNS .
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Chambers Development Co. said its Security Bureau Inc. unit purchased two security concerns in Florida that will add $ 2.1 million of annual revenue . NNP NNP NNP VBD PRP$ NNP NNP NNP NN VBN CD NN NNS IN NNP WDT MD VB $ CD CD IN JJ NN .
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Purchase of the businesses serving Miami , Fort Lauderdale and West Palm Beach , Fla. , is part of a plan by Chambers to expand in the growing security industry . NNP IN DT NNS VBG NNP , NNP NNP CC NNP NNP NNP , NNP , VBZ NN IN DT NN IN NNP TO VB IN DT VBG NN NN .
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Terms were n't disclosed . NNS VBD RB VBN .
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Basf AG said it moved its headquarters for Latin America to Mexico and the headquarters for the Asia\/Australia regional division to Singapore , effective Oct . NNP NNP VBD PRP VBD PRP$ NN IN NNP NNP TO NNP CC DT NN IN DT NNP JJ NN TO NNP , JJ NNP .
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The central offices for both regions were previously located in Ludwigshafen , Basf headquarters . DT JJ NNS IN DT NNS VBD RB VBN IN NNP , NNP NN .
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The West German chemical concern called the moves a further step in the internationalization of its business activities . DT JJ JJ NN NN VBD DT NNS DT JJ NN IN DT NN IN PRP$ NN NNS .
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Both regions are the fastest-growing areas for Basf , the company said . DT NNS VBP DT JJ NNS IN NNP , DT NN VBD .
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David H. Eisenberg , 53 years old , was named president and chief operating officer of Imasco 's 500-store Peoples Drug Stores Inc. unit , based in Alexandria , Va . NNP NNP NNP , CD NNS JJ , VBD VBN NN CC JJ VBG NN IN NNP POS JJ NNP NNP NNP NNP NN , VBN IN NNP , NNP .
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Mr. Eisenberg was senior executive vice president and chief operating officer . NNP NNP VBD JJ JJ NN NN CC JJ VBG NN .
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Imasco is a tobacco , retailing , restaurant and financial services concern . NNP VBZ DT NN , NN , NN CC JJ NNS VBP .
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Lotus Development Corp. is in talks to sell its Signal stock-quote service to Infotechnology Inc. , the New York parent of Financial News Network , people familiar with the negotiations said . NNP NNP NNP VBZ IN NNS TO VB PRP$ NNP JJ NN TO NNP NNP , DT NNP NNP NN IN NNP NNP NNP , NNS JJ IN DT NNS VBD .
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They said the price would be around $ 10 million . PRP VBD DT NN MD VB IN $ CD CD .
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Signal , which has an estimated 10,000 subscribers and is profitable , provides stock quotes over an FM radio band that can be received by specially equipped personal computers . NNP , WDT VBZ DT VBN CD NNS CC VBZ JJ , VBZ NN NNS IN DT NNP NN NN WDT MD VB VBN IN RB VBN JJ NNS .
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The computers will display stock prices selected by users . DT NNS MD VB NN NNS VBN IN NNS .
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Lotus , Cambridge , Mass. , has been rumored to have the sale of the four-year-old unit under consideration for a year . NNP , NNP , NNP , VBZ VBN VBN TO VB DT NN IN DT JJ NN IN NN IN DT NN .
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The business is n't related to Lotus 's main businesses of making computer software and publishing information on compact disks . DT NN VBZ RB VBN TO NNP POS JJ NNS IN VBG NN NN CC NN NN IN JJ NNS .
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`` Please submit your offers , '' says Felipe Bince Jr . `` VB VB PRP$ NNS , '' VBZ NNP NNP NNP .
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He surveys the prospective investors gathered in the board room of the Philippine government 's Asset Privatization Trust for the sale of a 36 % interest in the country 's largest paper mill . PRP VBZ DT JJ NNS VBD IN DT NN NN IN DT JJ NN POS NNP NNP NNP IN DT NN IN DT CD NN NN IN DT NN POS JJS NN NN .
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The agency expects the bids to be equivalent of more than $ 80 million . DT NN VBZ DT NNS TO VB NN IN JJR IN $ CD CD .
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Not a peso is offered . RB DT NN VBZ VBN .
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Mr. Bince , the trust 's associate executive trustee , declares the bidding a failure . NNP NNP , DT NN POS JJ JJ NN , VBZ DT VBG DT NN .
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`` It 's getting harder to sell , '' he mutters as he leaves the room . `` PRP VBZ VBG JJR TO VB , '' PRP VBZ IN PRP VBZ DT NN .
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Indeed . Recently , the trust failed to auction off the paper mill , a bank , an office building and a small cotton-ginning plant . RB . RB , DT NN VBD TO VB IN DT NN NN , DT NN , DT NN NN CC DT JJ JJ NN .
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Of the four , only the bank and the plant drew bids -- one apiece . IN DT CD , RB DT NN CC DT NN VBD NNS : CD RB .
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In October 1987 , President Corazon Aquino vowed that her government would `` get out of business '' by selling all or part of the state 's holdings in the many companies taken over by the government during the 20-year rule of Ferdinand Marcos . IN NNP CD , NNP NNP NNP VBD IN PRP$ NN MD `` VB IN IN NN '' IN VBG DT CC NN IN DT NN POS NNS IN DT JJ NNS VBN IN IN DT NN IN DT JJ NN IN NNP NNP .
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Two years later , Mrs. Aquino 's promise remains largely unfulfilled . CD NNS RB , NNP NNP POS NN VBZ RB JJ .
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October is a critical month for the privatization program . NNP VBZ DT JJ NN IN DT NN NN .
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Manila is offering several major assets for the first time and is trying to conclude sales already arranged . NNP VBZ VBG JJ JJ NNS IN DT JJ NN CC VBZ VBG TO VB NNS RB VBN .
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In addition , the government is scheduled to unveil plans for privatizing Philippine Airlines , the national carrier , an effort that lawyer and business columnist Rodolfo Romero calls `` the bellwether of privatization . '' IN NN , DT NN VBZ VBN TO VB NNS IN VBG JJ NNPS , DT JJ NN , DT NN DT NN CC NN NN NNP NNP VBZ `` DT NN IN NN . ''
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All told , there are assets on the line valued at up to $ 1.03 billion . DT VBD , EX VBP NNS IN DT NN VBN IN IN TO $ CD CD .
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The privatization program is designed to rid the government of hundreds of assets and to raise critically needed funds . DT NN NN VBZ VBN TO VB DT NN IN NNS IN NNS CC TO VB RB VBN NNS .
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Much of the money from the sales is earmarked for a multibillion-dollar agrarian-reform program . RB IN DT NN IN DT NNS VBZ VBN IN DT JJ JJ NN .
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But efforts have been thwarted by official indifference , bureaucratic resistance , a legal system that operates at a snail 's pace , political opposition and government misjudgments . CC NNS VBP VBN VBN IN JJ NN , JJ NN , DT JJ NN WDT VBZ IN DT NN POS NN , JJ NN CC NN NNS .
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Most recently , a lack of buyers has been added to the list . JJS RB , DT NN IN NNS VBZ VBN VBN TO DT NN .
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Rather than gathering momentum , the program is in danger of slowing even more as the government tackles several big assets . RB IN NN NN , DT NN VBZ IN NN IN VBG RB JJR IN DT NN VBZ JJ JJ NNS .
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The axiom appears to be that the more valuable the asset , the harder the privatization process . DT NN VBZ TO VB IN DT RBR JJ DT NN , DT JJR DT NN NN .
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`` You just do n't see a whole lot happening , '' says an international economist . `` PRP RB VBP RB VB DT JJ NN VBG , '' VBZ DT JJ NN .
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To be sure , the program has n't completely stalled . TO VB JJ , DT NN VBZ RB RB VBN .
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The Asset Privatization Trust , the agency chiefly responsible for selling government-held properties , has recorded sales of more than $ 500 million since it began functioning in December 1986 . DT NNP NNP NNP , DT NN RB JJ IN VBG JJ NNS , VBZ VBN NNS IN JJR IN $ CD CD IN PRP VBD VBG IN NNP CD .
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But its success has been largely in the sale of small , nonperforming companies , which are valued for their assets . CC PRP$ NN VBZ VBN RB IN DT NN IN JJ , JJ NNS , WDT VBP VBN IN PRP$ NNS .
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Dealing with the sales this month could be particularly challenging because almost every problem that has hobbled the program in the past is popping up again . VBG IN DT NNS DT NN MD VB RB VBG IN RB DT NN WDT VBZ VBN DT NN IN DT NN VBZ VBG IN RB .
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Ramon Garcia , the Asset Trust 's executive trustee , admits to what he calls `` temporary setbacks . '' NNP NNP , DT NNP NNP POS JJ NN , VBZ TO WP PRP VBZ `` JJ NNS . ''
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In light of the poor results recently , he says , the agency is adopting an `` attitude of flexibility . '' IN NN IN DT JJ NNS RB , PRP VBZ , DT NN VBZ VBG DT `` NN IN NN . ''
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October 's troubles began when the trust failed to sell a state-owned commercial bank , Associated Bank , for the minimum price of 671 million pesos -LRB- $ 31 million -RRB- . NNP POS NNS VBD WRB DT NN VBD TO VB DT JJ JJ NN , NNP NNP , IN DT JJ NN IN CD CD NNS ( $ CD CD ) .
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At the end of the month , the agency again will offer the bank . IN DT NN IN DT NN , DT NN RB MD VB DT NN .
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But instead of a minimum price , only a target price will be established . CC RB IN DT JJ NN , RB DT NN NN MD VB VBN .
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Bankers say , however , that the government may have difficulty selling the institution even without a floor price . NNS VBP , RB , IN DT NN MD VB NN VBG DT NN RB IN DT NN NN .
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The bank has a negative net worth , they say . DT NN VBZ DT JJ JJ NN , PRP VBP .
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In addition , special bidding rules give the bank 's former owner , Leonardo Ty , the right to match the highest bid . IN NN , JJ NN NNS VBP DT NN POS JJ NN , NNP NNP , DT NN TO VB DT JJS NN .
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Mr. Ty lost control to the government in 1980 when a government bank made emergency loans to the cash-strapped institution . NNP NNP VBD NN TO DT NN IN CD WRB DT NN NN VBD NN NNS TO DT JJ NN .
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In 1983 , the loans were converted into equity , giving Manila 98 % of the bank , but with the understanding that Mr. Ty had repurchase rights . IN CD , DT NNS VBD VBN IN NN , VBG NNP CD NN IN DT NN , CC IN DT NN IN NNP NNP VBD NN NNS .
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His ability to match any bid has scared off many potential buyers . PRP$ NN TO VB DT NN VBZ VBN IN JJ JJ NNS .
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Separately , the government will try again within a month to sell the 36 % stake in Paper Industries Corp. of the Philippines , or Picop , as the paper mill is known . RB , DT NN MD VB RB IN DT NN TO VB DT CD NN NN IN NNP NNP NNP IN DT NNP , CC NNP , IN DT NN NN VBZ VBN .
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The price will depend on how much Picop shares fetch on the local stock market . DT NN MD VB IN WRB JJ NNP NNS VBP IN DT JJ NN NN .
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But according to bankers and stock analysts who have studied the paper mill , price is n't the only consideration . CC VBG TO NNS CC NN NNS WP VBP VBN DT NN NN , NN VBZ RB DT JJ NN .
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As it stands now , the government would continue to hold 45 % of Picop after the 36 % stake is sold . IN PRP VBZ RB , DT NN MD VB TO VB CD NN IN NNP IN DT CD NN NN VBZ VBN .
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-LRB- About 7.5 % of Picop is publicly traded and other shareholders own the rest of the equity . -RRB- ( IN CD NN IN NNP VBZ RB VBN CC JJ NNS VB DT NN IN DT NN . )
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|
Potential buyers , mostly foreign companies , are reluctant to take a non-controlling stake in a company that , by the government 's own reckoning , needs some $ 100 million in new capital for rehabilitation . JJ NNS , RB JJ NNS , VBP JJ TO VB DT JJ NN IN DT NN IN , IN DT NN POS JJ NN , VBZ DT $ CD CD IN JJ NN IN NN .
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The prospect of buying into a cash-hungry company without getting management control persuaded at least three foreign buyers , including a member of the Elders group of Australia , to pull out of the bidding , the bankers and analysts say . DT NN IN VBG IN DT JJ NN IN VBG NN NN VBN IN JJS CD JJ NNS , VBG DT NN IN DT NNP NN IN NNP , TO VB IN IN DT NN , DT NNS CC NNS VBP .
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Mr. Garcia acknowledges the problem and says the Asset Trust will study why the bidding failed and what changes the agency may be able to offer . NNP NNP VBZ DT NN CC VBZ DT NNP NNP MD VB WRB DT NN VBD CC WP VBZ DT NN MD VB JJ TO VB .
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Under government regulations , however , foreign ownership of Picop 's equity is limited to 40 % . IN NN NNS , RB , JJ NN IN NNP POS NN VBZ JJ TO CD NN .
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Even though the government would retain the 45 % stake in Picop , critics have accused the trust of selling out to foreigners . RB IN DT NN MD VB DT CD NN NN IN NNP , NNS VBP VBN DT NN IN VBG RP TO NNS .
|
|
A series of newspaper articles accused the trust of short-changing the government over the Picop sale . DT NN IN NN NNS VBD DT NN IN JJ DT NN IN DT NNP NN .
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Mr. Garcia says he has been notified of congressional hearings on the Picop bidding and possible legislation covering the paper mill 's sale , both prompted by the criticism of the agency . NNP NNP VBZ PRP VBZ VBN VBN IN JJ NNS IN DT NNP NN CC JJ NN VBG DT NN NN POS NN , DT VBN IN DT NN IN DT NN .
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The question of control could further hinder long-delayed plans for the government to divest itself of Philippine Airlines , in which it has a 99 % stake . DT NN IN NN MD VB VB JJ NNS IN DT NN TO VB PRP IN JJ NNPS , IN WDT PRP VBZ DT CD NN NN .
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The carrier has valuable trans-Pacific and Asian routes but it remains debt-laden and poorly managed . DT NN VBZ JJ JJ CC JJ NNS CC PRP VBZ JJ CC RB VBD .
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This maker of electronic measuring devices named two new directors , increasing board membership to nine . DT NN IN JJ NN NNS VBN CD JJ NNS , VBG NN NN TO CD .
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The new directors are Gordon M. Sprenger , president and chief executive officer of LifeSpan Inc. , and Peter S. Willmott , chairman and chief executive officer of Willmott Services Inc . DT JJ NNS VBP NNP NNP NNP , NN CC JJ JJ NN IN NNP NNP , CC NNP NNP NNP , NN CC JJ JJ NN IN NNP NNP NNP .
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Gerard E. Wood , 51 years old , was elected president , chief executive officer and a director of this minerals and materials company . NNP NNP NNP , CD NNS JJ , VBD VBN NN , JJ JJ NN CC DT NN IN DT NNS CC NNS NN .
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He succeeds Harry A. Durney , 65 , who is retiring from active duty but remains a director and consultant . PRP VBZ NNP NNP NNP , CD , WP VBZ VBG IN JJ NN CC VBZ DT NN CC NN .
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Mr. Wood has been president and chief executive of Steep Rock Resources Inc . NNP NNP VBZ VBN NN CC JJ NN IN NNP NNP NNP NNP .
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Eagle Financial Corp. and Webster Financial Corp. , two Connecticut savings bank-holding companies , agreed to merge in a tax-free stock transaction . NNP NNP NNP CC NNP NNP NNP , CD NNP NNS JJ NNS , VBD TO VB IN DT JJ NN NN .
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The new holding company , Webster\/Eagle Bancorp Inc. , will have about $ 1.2 billion of assets and 19 banking offices in Connecticut . DT JJ NN NN , NNP NNP NNP , MD VB RB $ CD CD IN NNS CC CD NN NNS IN NNP .
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Tangible capital will be about $ 115 million . JJ NN MD VB RB $ CD CD .
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The merger is subject to regulatory clearance and a definitive agreement . DT NN VBZ NN TO JJ NN CC DT JJ NN .
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In the merger , each share of Webster , based in Waterbury , will be converted into one share of the new company . IN DT NN , DT NN IN NNP , VBN IN NNP , MD VB VBN IN CD NN IN DT JJ NN .
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Each share of Eagle , based in Bristol , will become 0.95 share of Webster\/Eagle . DT NN IN NNP , VBN IN NNP , MD VB CD NN IN NNP .
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In American Stock Exchange composite trading Friday , Eagle shares rose 12.5 cents to $ 11 . IN NNP NNP NNP JJ NN NNP , NNP NNS VBD CD NNS TO $ CD .
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In national over-the-counter trading , Webster shares fell 25 cents to $ 12.375 . IN JJ JJ NN , NNP NNS VBD CD NNS TO $ CD .
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Webster has 3.5 million shares outstanding and Eagle 2.6 million . NNP VBZ CD CD NNS JJ CC NNP CD CD .
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Their indicated market values thus are about $ 43.3 million and $ 28.6 million , respectively . PRP$ VBD NN NNS RB VBP RB $ CD CD CC $ CD CD , RB .
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Frank J. Pascale , chairman of Eagle , will be chairman of the new firm and James C. Smith , president and chief executive officer of Webster , will take those posts at Webster\/Eagle . NNP NNP NNP , NN IN NNP , MD VB NN IN DT JJ NN CC NNP NNP NNP , NN CC JJ JJ NN IN NNP , MD VB DT NNS IN NNP .
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Harold W. Smith Sr. , chairman of Webster , will become chairman emeritus and a director of the new company . NNP NNP NNP NNP , NN IN NNP , MD VB NN NN CC DT NN IN DT JJ NN .
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Ralph T. Linsley , vice chairman of Eagle , will become vice chairman of Webster\/Eagle . NNP NNP NNP , NN NN IN NNP , MD VB NN NN IN NNP .
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The board will be made up of seven directors of each holding company . DT NN MD VB VBN IN IN CD NNS IN DT VBG NN .
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In an interview , James Smith said the banks ' `` markets are contiguous and their business philosophies are similar and conservative . '' IN DT NN , NNP NNP VBD DT NNS POS `` NNS VBP JJ CC PRP$ NN NNS VBP JJ CC JJ . ''
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Nonperforming loans will make up only about 0.5 % of the combined banks ' total loans outstanding , he said . JJ NNS MD VB IN RB IN CD NN IN DT VBN NNS POS JJ NNS JJ , PRP VBD .
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At June 30 , Webster , which owns First Federal Savings & Loan Association of Waterbury , had assets of $ 699 million . IN NNP CD , NNP , WDT VBZ NNP NNP NNP CC NNP NNP IN NNP , VBD NNS IN $ CD CD .
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Eagle , which controls Bristol Federal Savings Bank and First Federal Savings & Loan Association of Torrington , had assets of $ 469.6 million on that date . NNP , WDT VBZ NNP NNP NNP NNP CC NNP NNP NNP CC NNP NNP IN NNP , VBD NNS IN $ CD CD IN DT NN .
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Guillermo Ortiz 's Sept. 15 Americas column , `` Mexico 's Been Bitten by the Privatization Bug , '' is a refreshingly clear statement of his government 's commitment to privatization , and must be welcomed as such by all Americans who wish his country well . NNP NNP POS NNP CD NNP NN , `` NNP POS VBN VBN IN DT NN NN , '' VBZ DT RB JJ NN IN PRP$ NN POS NN TO NN , CC MD VB VBN IN JJ IN DT NNPS WP VBP PRP$ NN RB .
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The Mexico-United States Institute is glad to see such a high official as Mexico 's undersecretary of finance view his country 's reforms `` in the context of a larger , world-wide process '' of profound change toward free-market economics , especially in the statist countries . DT NNP NNP NNP VBZ JJ TO VB JJ DT JJ NN IN NNP POS NN IN NN VB PRP$ NN POS NNS `` IN DT NN IN DT JJR , JJ NN '' IN JJ NN IN JJ NNS , RB IN DT JJ NNS .
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Having said that , we must caution against an apparent tendency to overstate the case . VBG VBN IN , PRP MD VB IN DT JJ NN TO VB DT NN .
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It is not quite true , for example , that the Mexican government has `` privatized '' Mexicana de Aviacion , as Mr. Ortiz claims . PRP VBZ RB RB JJ , IN NN , IN DT JJ NN VBZ `` VBN '' NNP FW NNP , IN NNP NNP VBZ .
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In the same sentence he contradicts himself when he reports that the government still retains 40 % of the total equity of the airline . IN DT JJ NN PRP VBZ PRP WRB PRP VBZ IN DT NN RB VBZ CD NN IN DT JJ NN IN DT NN .
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How can a company be considered `` privatized '' if the state is so heavily represented in it ? WRB MD DT NN VB VBN `` VBN '' IN DT NN VBZ RB RB VBN IN PRP .
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-LRB- True , the Mexican government has granted `` control '' over the airline to a new private consortium , but its propensity to take back what it gives is too well known to permit one to be sanguine . -RRB- ( JJ , DT JJ NN VBZ VBN `` NN '' IN DT NN TO DT JJ JJ NN , CC PRP$ NN TO VB RB WP PRP VBZ VBZ RB RB VBN TO VB CD TO VB JJ . )
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Regrettably , too , Mr. Ortiz resorts to the familiar `` numbers game '' when he boasts that `` fewer than 392 -LCB- state enterprises -RCB- currently remain in the public sector , '' down from the `` 1,155 public entities that existed in 1982 . RB , RB , NNP NNP VBZ TO DT JJ `` NNS NN '' WRB PRP VBZ IN `` JJR IN CD ( NN NNS ) RB VB IN DT JJ NN , '' RB IN DT `` CD JJ NNS WDT VBD IN CD .
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'' But the enterprises still in state hands include the biggest and most economically powerful ones in Mexico ; indeed , they virtually constitute the economic infrastructure . '' CC DT NNS RB IN NN NNS VBP DT JJS CC RBS RB JJ NNS IN NNP : RB , PRP RB VBP DT JJ NN .
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I refer essentially to petroleum , electric power , banking and newsprint . PRP VBP RB TO NN , JJ NN , NN CC NN .
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Those enterprises , however , are not going to be privatized . DT NNS , RB , VBP RB VBG TO VB VBN .
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They are officially considered `` strategic , '' and their privatization is prohibited by the Mexican Constitution . PRP VBP RB VBN `` JJ , '' CC PRP$ NN VBZ VBN IN DT JJ NNP .
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In language that sidesteps the issue , Mr. Ortiz writes , `` The divestiture of nonpriority and nonstrategic public enterprises is an essential element of President Carlos Salinas 's plan to modernize Mexico 's economy ... . '' IN NN WDT VBZ DT NN , NNP NNP VBZ , `` DT NN IN NN CC JJ JJ NNS VBZ DT JJ NN IN NNP NNP NNP POS NN TO VB NNP POS NN : . ''
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Yet clearly , modernization must embrace its key industries before it can be said to have caught the `` privatization bug . '' RB RB , NN MD VB PRP$ JJ NNS IN PRP MD VB VB TO VB VBN DT `` NN NN . ''
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The bottom line , however , is not economic but political reform . DT NN NN , RB , VBZ RB JJ CC JJ NN .
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A long succession of Mexican presidents arbitrarily nationalized whatever industry they took a fancy to , without having to answer to the public . DT JJ NN IN JJ NNS RB VBD WDT NN PRP VBD DT JJ TO , IN VBG TO VB TO DT NN .
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To guarantee that Mexicana de Aviacion and other companies will really be privatized , Mexico needs a pluri-party political system that will ensure democracy and hence accountability . TO VB IN NNP FW NNP CC JJ NNS MD RB VB VBN , NNP VBZ DT JJ JJ NN WDT MD VB NN CC RB NN .
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Daniel James President Mexico-United States Institute NNP NNP NNP NNP NNP NNP
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The board of this Ponce , Puerto Rico concern voted to suspend payment of its quarterly of 11 cents a share for the third quarter . DT NN IN DT NNP , NNP NNP NN VBD TO VB NN IN PRP$ NN IN CD NNS DT NN IN DT JJ NN .
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The third-largest thrift institution in Puerto Rico also said it expects a return to profitability in the third quarter when it reports operating results this week . DT JJ NN NN IN NNP NNP RB VBD PRP VBZ DT NN TO NN IN DT JJ NN WRB PRP VBZ VBG VBZ DT NN .
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Ponce Federal said the dividend was suspended in anticipation of more stringent capital requirements under the Financial Institutions Reform , Recovery , and Enforcement Act of 1989 . NNP NNP VBD DT NN VBD VBN IN NN IN RBR JJ NN NNS IN DT NNP NNP NNP , NNP , CC NNP NNP IN CD .
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A labor-management group is preparing a revised buy-out bid for United Airlines parent UAL Corp. that would transfer majority ownership to employees while leaving some stock in public hands , according to people familiar with the group . DT JJ NN VBZ VBG DT VBN NN NN IN NNP NNPS NN NNP NNP WDT MD VB NN NN TO NNS IN VBG DT NN IN JJ NNS , VBG TO NNS JJ IN DT NN .
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The group has been discussing a proposal valued in a range of $ 225 to $ 240 a share , or $ 5.09 billion to $ 5.42 billion . DT NN VBZ VBN VBG DT NN VBN IN DT NN IN $ CD TO $ CD DT NN , CC $ CD CD TO $ CD CD .
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But to avoid the risk of rejection , the group does n't plan to submit the plan formally at a UAL board meeting today . CC TO VB DT NN IN NN , DT NN VBZ RB VB TO VB DT NN RB IN DT NNP NN NN NN .
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Instead , the group is raising the proposal informally to try to test the board 's reaction . RB , DT NN VBZ VBG DT NN RB TO VB TO VB DT NN POS NN .
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People familiar with the company say the board is n't likely to give quick approval to any offer substantially below the $ 300-a-share , $ 6.79 billion buy-out bid that collapsed last week after banks would n't raise needed loans and after a key partner , British Airways PLC , dropped out . NNS JJ IN DT NN VBP DT NN VBZ RB JJ TO VB JJ NN TO DT NN RB IN DT $ JJ , $ CD CD NN NN WDT VBD JJ NN IN NNS MD RB VB VBN NNS CC IN DT JJ NN , JJ NNP NNP , VBD RB .
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In composite trading Friday on the New York Stock Exchange , UAL closed at $ 168.50 a share , down $ 21.625 . IN JJ NN NNP IN DT NNP NNP NNP NNP , NNP VBD IN $ CD DT NN , RB $ CD .
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But the pilots union , which has been pushing for a takeover since 1987 , appears to be pressing ahead with the revised bid to avoid further loss of momentum even though it has n't found a partner to replace British Air . CC DT NNS NN , WDT VBZ VBN VBG IN DT NN IN CD , VBZ TO VB VBG RB IN DT VBN NN TO VB JJ NN IN NN RB IN PRP VBZ RB VBN DT NN TO VB NNP NNP .
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Although the bidding group has n't had time to develop its latest idea fully or to discuss it with banks , it believes bank financing could be obtained . IN DT NN NN VBZ RB VBN NN TO VB PRP$ JJS NN RB CC TO VB PRP IN NNS , PRP VBZ NN NN MD VB VBN .
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After the collapse of the last effort , the group does n't plan to make any formal proposal without binding commitments from banks covering the entire amount to be borrowed . IN DT NN IN DT JJ NN , DT NN VBZ RB VB TO VB DT JJ NN IN NN NNS IN NNS VBG DT JJ NN TO VB VBN .
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Under the type of transaction being discussed , the pilot-management group would borrow several billion dollars from banks that could then be used to finance a cash payment to current holders . IN DT NN IN NN VBG VBN , DT JJ NN MD VB JJ CD NNS IN NNS WDT MD RB VB VBN TO VB DT NN NN TO JJ NNS .
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Those current holders would also receive minority interests in the new company . DT JJ NNS MD RB VB NN NNS IN DT JJ NN .
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For example , the group could offer $ 200 a share in cash plus stock valued at $ 30 a share . IN NN , DT NN MD VB $ CD DT NN IN NN CC NN VBN IN $ CD DT NN .
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UAL currently has 22.6 million shares , fully diluted . NNP RB VBZ CD CD NNS , RB VBN .
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The new structure would be similar to a recapitalization in which holders get a special dividend yet retain a controlling ownership interest . DT JJ NN MD VB JJ TO DT NN IN WDT NNS VBP DT JJ NN RB VB DT VBG NN NN .
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The difference is that current holders would n't retain majority ownership or control . DT NN VBZ IN JJ NNS MD RB VB NN NN CC NN .
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The failed takeover would have given UAL employees 75 % voting control of the nation 's second-largest airline , with management getting 10 % control and British Air 15 % . DT VBN NN MD VB VBN NNP NNS CD NN NN NN IN DT NN POS JJ NN , IN NN VBG CD NN NN CC NNP NNP CD NN .
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It was n't clear how the ownership would stack up under the new plan , but employees would keep more than 50 % . PRP VBD RB JJ WRB DT NN MD VB IN IN DT JJ NN , CC NNS MD VB JJR IN CD NN .
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Management 's total could be reduced , and the public could get more than the 15 % control that had been earmarked for British Air . NNP POS NN MD VB VBN , CC DT NN MD VB JJR IN DT CD NN NN WDT VBD VBN VBN IN NNP NNP .
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One option the board is likely to consider today is some sort of cooling-off period . CD NN DT NN VBZ JJ TO VB NN VBZ DT NN IN JJ NN .
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Although the pilots are expected to continue to pursue the bid , UAL Chairman Stephen Wolf may be asked to withdraw from the buy-out effort , at least temporarily , and to return to running the company full time . IN DT NNS VBP VBN TO VB TO VB DT NN , NNP NNP NNP NNP MD VB VBN TO VB IN DT NN NN , IN JJS RB , CC TO VB TO VBG DT NN JJ NN .
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The board could eventually come under some pressure to sell the company because its members can be ousted by a majority shareholder vote , particularly since one-third of UAL stock is held by takeover stock speculators who favor a sale . DT NN MD RB VB IN DT NN TO VB DT NN IN PRP$ NNS MD VB VBN IN DT NN NN NN , RB IN NN IN NNP NN VBZ VBN IN NN NN NNS WP VBP DT NN .
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The labor-management buy-out group plans to keep its offer on the table in an apparent attempt to maintain its bargaining position with the board . DT JJ NN NN NNS TO VB PRP$ NN IN DT NN IN DT JJ NN TO VB PRP$ NN NN IN DT NN .
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However , the only outsider who has emerged to lead such a shareholder vote , Los Angeles investor Marvin Davis , who triggered the buy-out with a $ 5.4 billion bid in early August , is hanging back -- apparently to avoid being blamed for contributing to the deal 's collapse . RB , DT JJ NN WP VBZ VBN TO VB JJ DT NN NN , NNP NNP NN NNP NNP , WP VBD DT NN IN DT $ CD CD NN IN JJ NNP , VBZ VBG RB : RB TO VB VBG VBN IN VBG TO DT NN POS NN .
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Three top advisers to Mr. Davis visited New York late last week , at least in part to confer with executives at Citicorp . CD JJ NNS TO NNP NNP VBD NNP NNP JJ JJ NN , IN JJS IN NN TO VB IN NNS IN NNP .
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Mr. Davis had paid $ 6 million for Citicorp 's backing of his last bid . NNP NNP VBD VBN $ CD CD IN NNP POS VBG IN PRP$ JJ NN .
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But Citicorp has lost some credibility because it also led the unsuccessful effort to gain bank loans for the labor-management group . CC NNP VBZ VBN DT NN IN PRP RB VBD DT JJ NN TO VB NN NNS IN DT JJ NN .
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On Friday , British Air issued a statement saying it `` does not intend to participate in any new deal for the acquisition of UAL in the foreseeable future . '' IN NNP , NNP NNP VBD DT NN VBG PRP `` VBZ RB VB TO VB IN DT JJ NN IN DT NN IN NNP IN DT JJ NN . ''
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However , several people said that British Air might yet rejoin the bidding group and that the carrier made the statement to answer questions from British regulators about how it plans to use proceeds of a securities offering previously earmarked for the UAL buy-out . RB , JJ NNS VBD IN NNP NNP MD RB VB DT NN NN CC IN DT NN VBD DT NN TO VB NNS IN JJ NNS IN WRB PRP VBZ TO VB NNS IN DT NNS NN RB VBD IN DT NNP NN .
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Also late last week , UAL flight attendants agreed to participate with the pilots in crafting a revised offer . RB JJ JJ NN , NNP NN NNS VBD TO VB IN DT NNS IN VBG DT VBN NN .
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But the machinists union , whose opposition helped scuttle the first buy-out bid , is likely to favor a recapitalization with a friendly third-party investor . CC DT NNS NN , WP$ NN VBD VB DT JJ NN NN , VBZ JJ TO VB DT NN IN DT JJ JJ NN .
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One advantage the buy-out group intends to press with the board is that pilots have agreed to make $ 200 million in annual cost concessions to help finance a bid . CD NN DT NN NN VBZ TO VB IN DT NN VBZ IN NNS VBP VBN TO VB $ CD CD IN JJ NN NNS TO VB VB DT NN .
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Speculation has also arisen that the UAL executive most closely identified with the failure to gain bank financing , chief financial officer John Pope , may come under pressure to resign . NN VBZ RB VBN IN DT NNP NN RBS RB VBN IN DT NN TO VB NN NN , JJ JJ NN NNP NNP , MD VB IN NN TO VB .
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However , people familiar with the buy-out group said Mr. Pope 's departure would weaken the airline 's management at a critical time . RB , NNS JJ IN DT NN NN VBD NNP NNP POS NN MD VB DT NN POS NN IN DT JJ NN .
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Despite the buy-out group 's failure to obtain financing , UAL remains obligated to pay $ 26.7 million in investment banking and legal fees to the group 's advisers , Lazard Freres & Co. , Salomon Brothers Inc. , and Paul Weiss Rifkind Wharton & Garrison . IN DT NN NN POS NN TO VB NN , NNP VBZ VBN TO VB $ CD CD IN NN NN CC JJ NNS TO DT NN POS NNS , NNP NNP CC NNP , NNP NNP NNP , CC NNP NNP NNP NNP CC NNP .
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Whittle Communications Limited Partnership , Knoxville , Tenn. , will launch its first media property targeting Hispanic women . NNP NNP NNP NNP , NNP , NNP , MD VB PRP$ JJ NNS NN VBG JJ NNS .
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`` La Familia de Hoy , '' or `` Today 's Family , '' will debut this spring and will combine a national bimonthly magazine and TV programming . `` NNP NNP FW NNP , '' CC `` NN POS NNP , '' MD VB DT NN CC MD VB DT JJ JJ NN CC NN NN .
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The television element of `` La Familia '' includes a series of two-minute informational features to air seven days a week on the Spanish-language Univision network , a unit of Univision Holdings Inc. , which is 80%-owned by Hallmark Cards Inc . DT NN NN IN `` NNP NNP '' VBZ DT NN IN JJ JJ NNS TO VB CD NNS DT NN IN DT NNP NNP NN , DT NN IN NNP NNP NNP , WDT VBZ JJ IN NNP NNP NNP .
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The features will focus on `` parenting , family health and nutrition , and financial management , '' and will carry 30 seconds of advertising . DT NNS MD VB IN `` NN , NN NN CC NN , CC JJ NN , '' CC MD VB CD NNS IN NN .
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The magazines , also ad-supported , will be distributed in more than 10,000 doctors ' offices , clinics , and health centers in Hispanic and largely Hispanic communities . DT NNS , RB JJ , MD VB VBN IN JJR IN CD NNS POS NNS , NNS , CC NN NNS IN JJ CC RB JJ NNS .
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WEIRTON STEEL Corp. said it completed a $ 300 million sale of 10-year notes , the final step in the 1984 buy-out of the company from National Steel Corp . NNP NNP NNP VBD PRP VBD DT $ CD CD NN IN JJ NNS , DT JJ NN IN DT CD NN IN DT NN IN NNP NNP NNP .
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The 10 7\/8 % notes were priced at 99.5 % to yield 10.958 % in an offering managed by Bear , Stearns & Co. , Shearson Lehman Hutton Inc. and Lazard Freres & Co. , the company said . DT CD CD NN NNS VBD VBN IN CD NN TO VB CD NN IN DT NN VBN IN NNP , NNP CC NNP , NNP NNP NNP NNP CC NNP NNP CC NNP , DT NN VBD .
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Weirton , of Weirton , W. Va. , said $ 60.3 million of the proceeds were used to prepay the remaining amounts on the note outstanding to National Intergroup Inc. , the parent of National Steel . NNP , IN NNP , NNP NNP , VBD $ CD CD IN DT NNS VBD VBN TO VB DT VBG NNS IN DT NN JJ TO NNP NNP NNP , DT NN IN NNP NNP .
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Remaining proceeds were used to pay other debt and to finance the company 's capital spending program . VBG NNS VBD VBN TO VB JJ NN CC TO VB DT NN POS NN NN NN .
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Lep Group PLC of Britain , which holds a 62.42 % stake in Profit Systems Inc. , said it is considering courses of action that could result in its having `` active control '' of the company . NNP NNP NNP IN NNP , WDT VBZ DT CD NN NN IN NN NNP NNP , VBD PRP VBZ VBG NNS IN NN WDT MD VB IN PRP$ VBG `` JJ NN '' IN DT NN .
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In a filing with the Securities and Exchange Commission , Lep Group said a possible course of action may include acquiring some or all of the Profit Systems shares it does n't already own . IN DT NN IN DT NNP CC NNP NNP , NNP NNP VBD DT JJ NN IN NN MD VB VBG DT CC DT IN DT NN NNPS NNS PRP VBZ RB RB JJ .
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It noted , however , that it has n't determined any specific terms of a possible transaction . PRP VBD , RB , IN PRP VBZ RB VBN DT JJ NNS IN DT JJ NN .
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Lep Group and affiliates currently control 3,513,072 Profit Systems common shares , or 62.42 % , the filing said . NNP NNP CC NNS JJ NN CD NN NNPS JJ NNS , CC CD NN , DT NN VBD .
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Profit Systems , Valley Stream , N.Y. , is an air freight forwarding concern . NN NNPS , NNP NNP , NNP , VBZ DT NN NN NN NN .
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U.S. official reserve assets rose $ 6.05 billion in September , to $ 68.42 billion , the Treasury Department said . NNP JJ NN NNS VBD $ CD CD IN NNP , TO $ CD CD , DT NNP NNP VBD .
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The gain compared with a $ 1.10 billion decline in reserve assets in August to $ 62.36 billion , the department said . DT NN VBN IN DT $ CD CD NN IN NN NNS IN NNP TO $ CD CD , DT NN VBD .
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U.S. reserve assets consist of foreign currencies , gold , special drawing rights at the International Monetary Fund and the U.S. reserve position -- its ability to draw foreign currencies -- at the IMF . NNP NN NNS VBP IN JJ NNS , NN , JJ NN NNS IN DT NNP NNP NNP CC DT NNP NN NN : PRP$ NN TO VB JJ NNS : IN DT NNP .
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The nation 's holdings of foreign currencies increased $ 5.67 billion in September to $ 39.08 billion , while its gold reserves were virtually unchanged at $ 11.07 billion . DT NN POS NNS IN JJ NNS VBN $ CD CD IN NNP TO $ CD CD , IN PRP$ NN NNS VBD RB JJ IN $ CD CD .
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U.S. holdings of IMF special drawing rights last month rose $ 247 million , to $ 9.49 billion , and its reserve position at the IMF increased $ 142 million , to $ 8.79 billion . NNP NNS IN NNP JJ NN NNS JJ NN VBD $ CD CD , TO $ CD CD , CC PRP$ NN NN IN DT NNP VBD $ CD CD , TO $ CD CD .
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Alusuisse of America Inc. plans to sell its Consolidated Aluminum Corp. subsidiary as part of its strategy to focus more on aluminum packaging in the U.S. . NNP IN NNP NNP VBZ TO VB PRP$ NNP NNP NNP NN IN NN IN PRP$ NN TO VB JJR IN NN NN IN DT NNP .
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Alusuisse , of New York , declined to say how much it expects to get for the unit ; the company has hired First Boston Corp. to help identify bidders . NNP , IN NNP NNP , VBD TO VB WRB JJ PRP VBZ TO VB IN DT NN : DT NN VBZ VBN NNP NNP NNP TO VB VB NNS .
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Alusuisse is a subsidiary of Swiss Aluminium Ltd. , a Zurich , Switzerland , producer of aluminum , chemicals and packaging products . NNP VBZ DT NN IN NNP NNP NNP , DT NNP , NNP , NN IN NN , NNS CC NN NNS .
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Consolidated , which had 1988 revenue of $ 400 million , makes aluminum sheet and foil products at its Hannibal , Ohio , and Jackson , Tenn. , rolling mills and recycles aluminum at a plant in Bens Run , W.Va . NNP , WDT VBD CD NN IN $ CD CD , VBZ NN NN CC NN NNS IN PRP$ NNP , NNP , CC NNP , NNP , VBG NNS CC VBZ NN IN DT NN IN NNP NNP , NNP .
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Manhattan National Corp. said Michael A. Conway , president and chief executive officer , was elected chief executive of the holding company 's two principal insurance subsidiaries . NNP NNP NNP VBD NNP NNP NNP , NN CC JJ JJ NN , VBD VBN JJ NN IN DT VBG NN POS CD JJ NN NNS .
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He succeeds Paul P. Aniskovich Jr. , who resigned to pursue other business interests , the company said . PRP VBZ NNP NNP NNP NNP , WP VBD TO VB JJ NN NNS , DT NN VBD .
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Mr. Conway , 42 years old , was elected chairman , president and chief executive of Manhattan Life Insurance Co. and president and chief executive of Manhattan National Life Insurance Co . NNP NNP , CD NNS JJ , VBD VBN NN , NN CC JJ NN IN NNP NNP NNP NNP CC NN CC JJ NN IN NNP NNP NNP NNP NNP .
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Harry Rossi , 69 , chairman of the holding company , also remains chairman of Manhattan National Life Insurance Co . NNP NNP , CD , NN IN DT VBG NN , RB VBZ NN IN NNP NNP NNP NNP NNP .
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Mr. Conway was executive vice president and chief investment officer of Union Central Life Insurance Co. , of Cincinnati , in 1987 , when Union Central bought a 54 % interest in Manhattan National Corp . NNP NNP VBD JJ NN NN CC JJ NN NN IN NNP NNP NNP NNP NNP , IN NNP , IN CD , WRB NNP NNP VBD DT CD NN NN IN NNP NNP NNP .
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He resigned as an officer of Central Life to accept the Manhattan National presidency . PRP VBD IN DT NN IN NNP NNP TO VB DT NNP NNP NN .
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Daniel J. Terra , a director of First Illinois Corp. , said that in August he reduced his stake in First Illinois to 26.48 % of the common shares outstanding . NNP NNP NNP , DT NN IN NNP NNP NNP , VBD IN IN NNP PRP VBD PRP$ NN IN NNP NNP TO CD NN IN DT JJ NNS JJ .
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In a filing with the Securities and Exchange Commission , Mr. Terra said he sold 263,684 First Illinois common shares from Aug. 9 to Aug. 28 for $ 9.9375 to $ 10.5625 a share . IN DT NN IN DT NNP CC NNP NNP , NNP NNP VBD PRP VBD CD NNP NNP JJ NNS IN NNP CD TO NNP CD IN $ CD TO $ CD DT NN .
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As a result of the sales he holds 6,727,042 shares . IN DT NN IN DT NNS PRP VBZ CD NNS .
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Mr. Terra said in the filing that he sold the stock to decrease his position in the Evanston , Ill. , banking concern . NNP NNP VBD IN DT NN IN PRP VBD DT NN TO VB PRP$ NN IN DT NNP , NNP , NN NN .
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He may sell more shares in the open market or in private transactions , but would n't rule out changing his intentions and buying shares , the filing said . PRP MD VB JJR NNS IN DT JJ NN CC IN JJ NNS , CC MD RB VB IN VBG PRP$ NNS CC VBG NNS , DT NN VBD .
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SciMed Life Systems Inc. , Minneapolis , said a federal appeals court vacated an earlier summary judgment in its favor . NNP NNP NNP NNP , NNP , VBD DT JJ NNS VBP VBD DT JJR NN NN IN PRP$ NN .
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A lower court in St. Paul had ruled in September 1988 that a heart catheter SciMed manufactures does n't infringe on a patent owned by Advanced Cardiovascular Systems , a unit of Eli Lilly & Co . DT JJR NN IN NNP NNP VBD VBN IN NNP CD IN DT NN NN NNP VBZ VBZ RB VB IN DT NN VBN IN NNP NNP NNPS , DT NN IN NNP NNP CC NNP .
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SciMed said the appeals court remanded the case back to the district court for further proceedings . NNP VBD DT NNS VBP VBD DT NN RB TO DT NN NN IN JJ NNS .
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In national over-the-counter trading Friday , SciMed shares tumbled $ 2.75 to $ 43 . IN JJ JJ NN NNP , NNP NNS VBD $ CD TO $ CD .
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SciMed said it `` remains committed '' both to the `` vigorous defense '' of its position that the catheter does n't infringe the Lilly unit 's patent , and to the pursuit of its own counterclaims , which allege Lilly engaged in antitrust violations and other wrongful acts . NNP VBD PRP `` VBZ VBN '' DT TO DT `` JJ NN '' IN PRP$ NN IN DT NN VBZ RB VB DT NNP NN POS NN , CC TO DT NN IN PRP$ JJ NNS , WDT VBP NNP VBD IN JJ NNS CC JJ JJ NNS .
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A REVISED BID FOR UAL is being prepared by a labor-management group , sources said . DT VBN NNP IN NNP VBZ VBG VBN IN DT JJ NN , NNS VBD .
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The new proposal , which would transfer majority ownership of United Air 's parent to employees and leave some stock in public hands , would be valued at $ 225 to $ 240 a share , or as much as $ 5.42 billion . DT JJ NN , WDT MD VB NN NN IN NNP NNP POS NN TO NNS CC VB DT NN IN JJ NNS , MD VB VBN IN $ CD TO $ CD DT NN , CC RB JJ IN $ CD CD .
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But UAL 's board is n't expected to give quick approval to any offer substantially below the $ 300-a-share bid that collapsed recently . CC NNP POS NN VBZ RB VBN TO VB JJ NN TO DT NN RB IN DT $ JJ NN WDT VBD RB .
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Takeover stock speculators have incurred paper losses of over $ 700 million from the failed UAL offer , their worst loss ever on a single deal . NN NN NNS VBP VBN NN NNS IN IN $ CD CD IN DT VBN NNP NN , PRP$ JJS NN RB IN DT JJ NN .
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Ford and Saab ended talks about a possible alliance after Ford concluded that the cost to modernize Saab 's car operations would outweigh the likely return . NNP CC NNP VBD NNS IN DT JJ NN IN NNP VBD IN DT NN TO VB NNP POS NN NNS MD VB DT JJ NN .
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The collapse Friday prompted speculation that Ford would intensify its pursuit of Jaguar , which is negotiating a defensive alliance with GM . DT NN NNP VBD NN IN NNP MD VB PRP$ NN IN NNP , WDT VBZ VBG DT JJ NN IN NNP .
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Stock prices edged up in quiet trading Friday . NN NNS VBD IN IN JJ NN NNP .
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The Dow Jones industrials rose 5.94 , to 2689.14 , making the gain for the week a record 119.88 points , or 4.7 % . DT NNP NNP NNS VBD CD , TO CD , VBG DT NN IN DT NN DT NN CD NNS , CC CD NN .
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Most bond prices fell , but junk bonds and the dollar rose . JJS NN NNS VBD , CC NN NNS CC DT NN VBD .
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New York City bonds were sold off by many investors last week amid political and economic uncertainty . NNP NNP NNP NNS VBD VBN IN IN JJ NNS JJ NN IN JJ CC JJ NN .
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More banks are being hurt by Arizona 's worsening real-estate slump . JJR NNS VBP VBG VBN IN NNP POS VBG NN NN .
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First Interstate Bancorp of Los Angeles said Friday it expects a $ 16 million quarterly loss , citing property-loan losses at its Arizona unit . NNP NNP NNP IN NNP NNP VBD NNP PRP VBZ DT $ CD CD JJ NN , VBG JJ NNS IN PRP$ NNP NN .
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OPEC 's ability to produce more oil than it can sell is starting to cast a shadow over world oil markets . NNP POS NN TO VB JJR NN IN PRP MD VB VBZ VBG TO VB DT NN IN NN NN NNS .
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OPEC officials worry that prices could collapse a few months from now if the group does n't adopt new quotas . NNP NNS VBP IN NNS MD VB DT JJ NNS IN RB IN DT NN VBZ RB VB JJ NNS .
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Saatchi & Saatchi has attracted offers for some of its advertising units but has rejected them , sources said . NNP CC NNP VBZ VBN VBZ IN DT IN PRP$ NN NNS CC VBZ VBN PRP , NNS VBD .
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The proposals , from suitors including Interpublic Group , come as the London-based ad giant struggles through its most difficult period ever . DT NNS , IN NNS VBG NNP NNP , VB IN DT JJ NN NN NNS IN PRP$ RBS JJ NN RB .
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Qintex Australia suffered another setback Friday when its Los Angeles-based affiliate filed for Chapter 11 protection . NNP NNP VBD DT NN NNP WRB PRP$ NNP JJ NN VBN IN NN CD NN .
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Qintex 's $ 1.5 billion pact to buy MGM\/UA collapsed recently . NNP POS $ CD CD NN TO VB NNP VBD RB .
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Kodak entered the high-definition television market by unveiling a device that can convert conventional film into high-definition video . NNP VBD DT JJ NN NN IN VBG DT NN WDT MD VB JJ NN IN JJ NN .
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A handful of small U.S. firms are refusing to cede the HDTV-screen market to Japanese manufacturers . DT NN IN JJ NNP NNS VBP VBG TO VB DT JJ NN TO JJ NNS .
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Freight rates are bottoming out and starting to rebound . NN NNS VBP VBG IN CC VBG TO VB .
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Trucking , shipping and air-freight firms are all planning rate increases , reflecting higher costs and tightened demand . NNP , VBG CC NN NNS VBP DT NN NN NNS , VBG JJR NNS CC VBD NN .
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Texaco has purchased an oil-producing company in Texas for $ 476.5 million . NNP VBZ VBN DT JJ NN IN NNP IN $ CD CD .
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It is Texaco 's first major acquisition since the legal battle with Pennzoil began over four years ago . PRP VBZ NNP POS JJ JJ NN IN DT JJ NN IN NNP VBD IN CD NNS RB .
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Winnebago posted a widened quarterly loss and slashed its dividend in half , reflecting the deepening slowdown in recreational vehicle sales . NNP VBD DT VBD JJ NN CC VBD PRP$ NN IN NN , VBG DT VBG NN IN JJ NN NNS .
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Markets -- NNS :
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Stocks : NNS :
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Volume 164,830,000 shares . NN CD NNS .
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Dow Jones industrials 2689.14 , up 5.94 ; transportation 1230.80 , off 32.71 ; utilities 215.48 , up 0.06 . NNP NNP NNS CD , IN CD : NN CD , IN CD : NNS CD , IN CD .
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Bonds : NNS :
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Shearson Lehman Hutton Treasury index 3392.49 , off NNP NNP NNP NNP NN CD , IN
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Commodities : NNS :
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Dow Jones futures index 129.62 , off 0.51 ; spot index 131.34 , up 0.88 . NNP NNP NNS NN CD , IN CD : NN NN CD , IN CD .
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Dollar : NN :
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142.43 yen , up 0.73 ; 1.8578 marks , up 0.0108 . CD NN , IN CD : CD NNS , IN CD .
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Inmac Corp. , a money-losing direct marketer of computer supplies and accessories , said directors suspended payment of its semiannual dividend as too great a drain on funds . NNP NNP , DT JJ JJ NN IN NN NNS CC NNS , VBD NNS VBD NN IN PRP$ JJ NN IN RB JJ DT NN IN NNS .
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The company paid five cents a share in April . DT NN VBN CD NNS DT NN IN NNP .
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The directors ' action , taken Oct. 10 but announced Friday , had little or no effect on the company 's stock , which stagnated at $ 4.75 in light over-the-counter trading . DT NNS POS NN , VBN NNP CD CC VBD NNP , VBD JJ CC DT NN IN DT NN POS NN , WDT VBD IN $ CD IN NN JJ NN .
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Inmac recently disclosed a $ 12.3 million write-off related to a corporate restructuring that resulted in the company 's posting a $ 6.4 million net loss for the year ended July 29 , compared with year-earlier profit of $ 9.7 million , or $ 1.02 a share . NNP RB VBD DT $ CD CD NN VBN TO DT JJ NN WDT VBD IN DT NN VBZ VBG DT $ CD CD JJ NN IN DT NN VBN NNP CD , VBN IN JJ NN IN $ CD CD , CC $ CD DT NN .
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Sales rose 12 % to $ 249.5 million from $ 222.8 million . NNS VBD CD NN TO $ CD CD IN $ CD CD .
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`` The board felt that the continued payment of our semiannual dividend was inconsistent with recent operating results , '' said Kenneth A. Eldred , president and chief executive officer . `` DT NN VBD IN DT VBN NN IN PRP$ JJ NN VBD JJ IN JJ NN NNS , '' VBD NNP NNP NNP , NN CC JJ JJ NN .
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`` All our efforts are now focused on improving earnings to the point where we can fund additional new-country development , continue to invest in the business and reinstate the dividend , '' he added . `` DT PRP$ NNS VBP RB VBN IN VBG NNS TO DT NN WRB PRP MD VB JJ JJ NN , VB TO VB IN DT NN CC VB DT NN , '' PRP VBD .
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The company offers more than 3,500 parts and supplies directly to microcomputer and minicomputer users through catalog sales . DT NN VBZ JJR IN CD NNS CC NNS RB TO NN CC NN NNS IN NN NNS .
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The Food and Drug Administration said American Home Products Corp. agreed to recall certain generic drugs that were produced by its Quantum Pharmics unit in Amityville , N.Y . DT NNP CC NNP NNP VBD NNP NNP NNP NNP VBD TO VB JJ JJ NNS WDT VBD VBN IN PRP$ NNP NNP NN IN NNP , NNP .
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Quantum stopped shipping the drugs last month , following a federal investigation regarding information the company supplied to obtain three drug approvals . NNP VBD VBG DT NNS JJ NN , VBG DT JJ NN VBG NN DT NN VBN TO VB CD NN NNS .
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The FDA requested the recall of Quantum 's mioxidil tablets , chlorazepate dipotassium tablets and meclofenamate sodium capsules because , it said , the size of the production runs submitted for testing to gain FDA approval was in each case misrepresented as much larger than it actually was . DT NNP VBD DT NN IN NNP POS NN NNS , NN NN NNS CC NN NN NNS IN , PRP VBD , DT NN IN DT NN VBZ VBN IN NN TO VB NNP NN VBD IN DT NN VBD IN RB JJR IN PRP RB VBD .
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American Home Products , based in New York , agreed to recall four other products , trazadone , doxepin , diazepam and lorazapam , because of concerns about data submitted in their original approval applications before the FDA . NNP NNP NNPS , VBN IN NNP NNP , VBD TO VB CD JJ NNS , NN , NN , NN CC NN , IN IN NNS IN NNS VBN IN PRP$ JJ NN NNS IN DT NNP .
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No safety problems with the products are known , the FDA said . DT NN NNS IN DT NNS VBP VBN , DT NNP VBD .
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An FDA spokesperson said the drugs are still available under other brand names . DT NNP NN VBD DT NNS VBP RB JJ IN JJ NN NNS .
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Last month , American Home Products said it was suspending production and distribution of all 21 of Quantum 's generic drug products pending the completion of an exhaustive internal audit . JJ NN , NNP NNP NNPS VBD PRP VBD VBG NN CC NN IN DT CD IN NNP POS JJ NN NNS VBG DT NN IN DT JJ JJ NN .
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It also temporarily closed Quantum , because of the internal investigation , as well as the FDA 's ongoing inquiry . PRP RB RB VBD NNP , IN IN DT JJ NN , RB RB IN DT NNP POS JJ NN .
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In New York Stock Exchange composite trading , American Home Products rose 75 cents to $ 105 on Friday . IN NNP NNP NNP NNP JJ NN , NNP NNP NNPS VBD CD NNS TO $ CD IN NNP .
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Lyondell Petrochemical Co. said third-quarter net income fell 54 % , to $ 73 million , or 91 cents a share , from $ 160 million a year earlier . NNP NNP NNP VBD JJ JJ NN VBD CD NN , TO $ CD CD , CC CD NNS DT NN , IN $ CD CD DT NN RBR .
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Year-earlier per-share results are n't applicable because the company went public in January . JJ JJ NNS VBP RB JJ IN DT NN VBD JJ IN NNP .
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Revenue rose 7.7 % to $ 1.28 billion from $ 1.18 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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The petrochemical maker said the biggest reason earnings declined was a loss of production time and the increased costs associated with a temporary maintenance closing and expansion of an olefins plant . DT NN NN VBD DT JJS NN NNS VBD VBD DT NN IN NN NN CC DT VBN NNS VBN IN DT JJ NN VBG CC NN IN DT NNS VBP .
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Like other refiners , Lyondell 's margins for chemicals and gasoline were narrower . IN JJ NNS , NNP POS NNS IN NNS CC NN VBD JJR .
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While the company said chemical margins continued to worsen this quarter , costs will be lower because the maintenance and expansions are complete . IN DT NN VBD NN NNS VBD TO VB DT NN , NNS MD VB JJR IN DT NN CC NNS VBP JJ .
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In New York Stock Exchange composite trading Friday , Lyondell was unchanged at $ 18.50 a share . IN NNP NNP NNP NNP JJ NN NNP , NNP VBD JJ IN $ CD DT NN .
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Four former Cordis Corp. officials were acquitted of federal charges related to the Miami-based company 's sale of pacemakers , including conspiracy to hide pacemaker defects . CD JJ NNP NNP NNS VBD VBN IN JJ NNS VBN TO DT JJ NN POS NN IN NNS , VBG NN TO VB NN NNS .
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Jurors in U.S. District Court in Miami cleared Harold Hershhenson , a former executive vice president ; John Pagones , a former vice president ; and Stephen Vadas and Dean Ciporkin , who had been engineers with Cordis . NNS IN NNP NNP NNP IN NNP VBD NNP NNP , DT JJ JJ NN NN : NNP NNP , DT JJ NN NN : CC NNP NNP CC NNP NNP , WP VBD VBN NNS IN NNP .
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Earlier this year , Cordis , a maker of medical devices , agreed to plead guilty to felony and misdemeanor charges related to the pacemakers and to pay the government about $ 5.7 million in fines and other costs . RBR DT NN , NNP , DT NN IN JJ NNS , VBD TO VB JJ TO NN CC NN NNS VBN TO DT NNS CC TO VB DT NN RB $ CD CD IN NNS CC JJ NNS .
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Cordis sold its pacemaker operations two years ago to Telectronics Holding Ltd. of Australia . NNP VBD PRP$ NN NNS CD NNS RB TO NNP NNP NNP IN NNP .
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PAPERS : NNS :
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Management and unions representing 2,400 employees at Torstar Corp. 's Toronto Star reached a tentative contract agreement Friday , averting a strike by most employees of Canada 's largest daily newspaper . NNP CC NNS VBG CD NNS IN NNP NNP POS NNP NNP VBD DT JJ NN NN NNP , VBG DT NN IN RBS NNS IN NNP POS JJS JJ NN .
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Members of the largest union , representing 1,700 workers , voted in favor of the pact yesterday . NNS IN DT JJS NN , VBG CD NNS , VBD IN NN IN DT NN NN .
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Four other unions have yet to vote , but their leadership also recommended approval . CD JJ NNS VBP RB TO VB , CC PRP$ NN RB VBD NN .
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The pact proposes a 2 1\/2-year contract with a raise of 8 % in the first year , 7 % in the second and 4 % for the final six months . DT NN VBZ DT CD JJ NN IN DT NN IN CD NN IN DT JJ NN , CD NN IN DT JJ CC CD NN IN DT JJ CD NNS .
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Amgen Inc. said its second-quarter earnings increased more than tenfold to $ 3.9 million , or 22 cents a share , due to increased sales of the company 's new antianemia drug for kidney patients . NNP NNP VBD PRP$ JJ NNS VBN JJR IN RB TO $ CD CD , CC CD NNS DT NN , JJ TO VB NNS IN DT NN POS JJ JJ NN IN NN NNS .
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The Thousand Oaks , Calif.-based biotechnology company reported a 97 % increase in revenue to $ 42.5 million for the quarter ended Sept. 30 . DT NNP NNP , JJ NN NN VBD DT CD NN NN IN NN TO $ CD CD IN DT NN VBN NNP CD .
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In the year-ago period , Amgen reported net income of $ 320,000 , or two cents a share , on revenue of $ 21.5 million . IN DT JJ NN , NNP VBD JJ NN IN $ CD , CC CD NNS DT NN , IN NN IN $ CD CD .
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For the six months , the company reported a more than sixfold increase in earnings to $ 4.7 million , or 26 cents a share , from $ 625,000 , or four cents a share a year ago . IN DT CD NNS , DT NN VBD DT JJR IN JJ NN IN NNS TO $ CD CD , CC CD NNS DT NN , IN $ CD , CC CD NNS DT NN DT NN RB .
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Revenue rose 77 % to $ 72.6 million , from last year 's $ 41 million . NN VBD CD NN TO $ CD CD , IN JJ NN POS $ CD CD .
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LEBANESE LAWMAKERS APPROVED a peace plan but Aoun rejected it . JJ NNS VBD DT NN NN CC NNP VBD PRP .
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Lebanon 's Parliament passed the power-sharing accord to end the country 's 14-year-old conflict , but the Christian military leader wad the plan was `` full of ambiguities . '' NNP POS NNP VBD DT JJ NN TO VB DT NN POS JJ NN , CC DT NNP JJ NN NN DT NN VBD `` JJ IN NNS . ''
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The Arab League-sponsored pact , drafted during three weeks of talks at the Saudi Arabian resort of Taif , includes Syrian proposals for at least a partial troop pullout from Lebanon , and guarantees an equal number of seats for Moslems and Christians in the Parliament . DT NNP JJ NN , VBN IN CD NNS IN NNS IN DT NNP NNP NN IN NNP , VBZ JJ NNS IN IN JJS DT JJ NN NN IN NNP , CC VBZ DT JJ NN IN NNS IN NNPS CC NNPS IN DT NNP .
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The rejection by Aoun , who has demanded a total and immediate pull-out of Damascus 's 33,000 troops , puts the future of the agreement in doubt . DT NN IN NNP , WP VBZ VBN DT JJ CC JJ NN IN NNP POS CD NNS , VBZ DT NN IN DT NN IN NN .
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NORTHERN CALIFORNIA BRACED for earthquake-related traffic jams . NNP NNP NNP IN JJ NN NNS .
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As rescuers pressed their efforts after finding a survivor in a collapsed freeway , the San Francisco Bay area girded for hundreds of thousands of commuters seeking to avoid routes ravaged by last Tuesday 's tremor . IN NNS VBD PRP$ NNS IN VBG DT NN IN DT VBN NN , DT NNP NNP NNP NN VBD IN NNS IN NNS IN NNS VBG TO VB NNS VBN IN JJ NNP POS NN .
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In Oakland , officials said the 57-year-old longshoreman who spent four days entombed in rubble was in critical condition with slight improvement . IN NNP , NNS VBD DT JJ NN WP VBD CD NNS VBN IN NN VBD IN JJ NN IN JJ NN .
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Estimates of damage in the area , visited Friday by Bush , topped $ 5 billion . NNS IN NN IN DT NN , VBD NNP IN NNP , VBD $ NN CD .
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The baseball commissioner announced that the third game of the World Series between the Giants and the Athletics would n't resume until Friday . DT NN NN VBD IN DT JJ NN IN DT NNP NNP IN DT NNP CC DT NNP MD RB VB IN NNP .
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THE U.S. . IS REQUIRED to notify foreign dictators of certain coup plans . DT NNP . VBZ NNP TO VB JJ NNS IN JJ NN NNS .
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Under guidelines included in an exchange of letters between the Reagan administration and the Senate Intelligence panel last year , the U.S. must inform foreign dictators of plans likely to endanger their lives . IN NNS VBD IN DT NN IN NNS IN DT NNP NN CC DT NNP NNP NN JJ NN , DT NNP MD VB JJ NNS IN NNS JJ TO VB PRP$ NNS .
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The existence of the policy became known after Bush disclosed it to seven GOP senators last week , citing the plan as an example of congressional requirements the administration contends contribute to the failure of covert actions , officials said . DT NN IN DT NN VBD VBN IN NNP VBD PRP TO CD NNP NNS JJ NN , VBG DT NN IN DT NN IN JJ NNS DT NN VBZ VB TO DT NN IN JJ NNS , NNS VBD .
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Bush conceded that the requirement did n't affect a decision to lend only minor support to this month 's failed effort to oust Panama 's Noriega , aides said . NNP VBD IN DT NN VBD RB VB DT NN TO VB RB JJ NN TO DT NN POS VBD NN TO VB NNP POS NNP , NNS VBD .
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The shuttle Atlantis 's crew prepared to return to Earth today several hours earlier than planned to avoid high winds forecast at the landing site at Edwards Air Force Base , Calif . DT NN NNP POS NN VBN TO VB TO NNP NN JJ NNS RBR IN VBN TO VB JJ NNS VBP IN DT NN NN IN NNP NNP NNP NNP , NNP .
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The five astronauts , who stowed gear and tested the spacecraft 's steering , said they were unconcerned about the touchy weather expected in the Mojave Desert . DT CD NNS , WP VBD NN CC VBD DT NN POS NN , VBD PRP VBD JJ IN DT JJ NN VBN IN DT NNP NNP .
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Commonwealth leaders issued a declaration giving South Africa six months to deliver on pledges to ease apartheid or face new reprisals . NN NNS VBD DT NN VBG NNP NNP CD NNS TO VB IN NNS TO VB NN CC NN JJ NNS .
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The 49-nation organization , meeting in Malaysia , called for tighter financial pressure immediately . DT JJ NN , NN IN NNP , VBN IN RBR JJ NN RB .
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Britain 's Prime Minister Thatcher alone dissented . NNP POS NNP NNP NNP RB VBD .
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East Germany 's leadership vowed swift action to ease travel to the West . NNP NNP POS NN VBD JJ NN TO VB NN TO DT NNP .
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Despite the pledge by the Communist rulers , tens of thousands of people across the country staged marches over the weekend to demand democratic freedoms . IN DT NN IN DT NNP NNS , NNS IN NNS IN NNS IN DT NN VBD NNS IN DT NN TO VB JJ NNS .
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In Leipzig , more than 500 people met with local party officials to discuss internal changes . IN NNP , JJR IN CD NNS VBD IN JJ NN NNS TO VB JJ NNS .
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The Senate convicted federal Judge Alcee Hastings of Miami of eight impeachment articles , removing him from the bench . DT NNP VBD JJ NNP NNP NNP IN NNP IN CD NN NNS , VBG PRP IN DT NN .
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The chamber voted 69-26 Friday to convict the judge of perjury and bribery conspiracy . DT NN VBD CD NNP TO VB DT NN IN NN CC NN NN .
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It marked the first time a U.S. official was impeached on charges of which a jury had acquitted him . PRP VBD DT JJ NN DT NNP NN VBD VBN IN NNS IN WDT DT NN VBD VBN PRP .
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Rep. Garcia and his wife were found guilty by a federal jury in New York of extorting $ 76,000 from Wedtech Corp. in return for official acts by the New York Democrat . NNP NNP CC PRP$ NN VBD VBN JJ IN DT JJ NN IN NNP NNP IN VBG $ CD IN NNP NNP IN NN IN JJ NNS IN DT NNP NNP NNP .
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The jury also convicted them of extortion in obtaining a $ 20,000 interest-free loan from an officer of the defunct defense contractor . DT NN RB VBD PRP IN NN IN VBG DT $ CD JJ NN IN DT NN IN DT JJ NN NN .
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Authorities in Honduras launched an investigation into the cause of Saturday 's crash of a Honduran jetliner that killed 132 of the 146 people aboard . NNS IN NNP VBD DT NN IN DT NN IN NNP POS NN IN DT JJ NN WDT VBD CD IN DT CD NNS RB .
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The Boeing 727 , en route to Honduras from Costa Rica via Nicaragua , smashed into the hills outside Tegucigalpa as it approached the capital 's airport in high winds and low clouds . DT NNP CD , IN NN TO NNP IN NNP NNP IN NNP , VBD IN DT NNS IN NNP IN PRP VBD DT NN POS NN IN JJ NNS CC JJ NNS .
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The U.S. and Israel have been holding what an aide to Prime Minister Shamir called intense telephone negotiations in an effort to bridge differences over Mideast peace moves . DT NNP CC NNP VBP VBN VBG WP DT NN TO NNP NNP NNP VBD JJ NN NNS IN DT NN TO VB NNS IN NNP NN NNS .
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The Labor Party , meanwhile , threatened to support a parliamentary motion to topple the coalition unless Shamir showed flexibility on Arab-Israeli talks . DT NNP NNP , RB , VBN TO VB DT JJ NN TO VB DT NN IN NNP VBD NN IN JJ NNS .
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Nicaragua 's Defense Ministry said a group of Contra rebels ambushed two trucks carrying troops in northern Nicaragua , killing 18 of the soldiers . NNP POS NNP NNP VBD DT NN IN NNP NNS VBD CD NNS VBG NNS IN JJ NNP , VBG CD IN DT NNS .
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The incident occurred Saturday night . DT NN VBD NNP NN .
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The Sandinista government and the U.S.-backed insurgents agreed in March to suspend offensive operations , but there has been sporadic fighting . DT NNP NN CC DT JJ NNS VBD IN NNP TO VB JJ NNS , CC EX VBZ VBN JJ NN .
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Scientists have isolated a molecule that may hold potential as a treatment for disruptions of the immune system , ranging from organ-transplant rejection , to allergies and asthma , Immunex Corp. said . NNS VBP VBN DT NN WDT MD VB JJ IN DT NN IN NNS IN DT JJ NN , VBG IN JJ NN , TO NNS CC NN , NNP NNP VBD .
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The molecule is the mouse version of a protein called the interleukin-4 receptor , which directs the growth and function of white blood cells . DT NN VBZ DT NN NN IN DT NN VBD DT NN NN , WDT VBZ DT NN CC NN IN JJ NN NNS .
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Died : Alfred Hayes , 79 , former president of the Federal Reserve Bank of New York , Saturday , in New Canaan , Conn . VBD : NNP NNP , CD , JJ NN IN DT NNP NNP NNP IN NNP NNP , NNP , IN NNP NNP , NNP .
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Contel Corp. said third-quarter net income increased 16 % to $ 72 million , or 45 cents a share , from $ 62 million , or 39 cents a share , as a result of strong growth in telephone-access lines and long-distance minutes of use . NNP NNP VBD JJ JJ NN VBN CD NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , IN DT NN IN JJ NN IN JJ NNS CC JJ NNS IN NN .
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The telecommunications company 's results included a one-time gain of $ 4 million , or two cents a share , from the sale of Contel Credit , a leasing and financial-services subsidiary . DT NNS NN POS NNS VBD DT JJ NN IN $ CD CD , CC CD NNS DT NN , IN DT NN IN NNP NNP , DT NN CC NNS NN .
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Revenue rose 8.3 % to $ 780 million from $ 720 million . NN VBD CD NN TO $ CD CD IN $ CD CD .
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Telephone-operations quarterly profit increased 9 % to $ 84 million from $ 77 million , while federal-systems earnings declined 33 % to $ 4 million from $ 6 million . NNS JJ NN VBN CD NN TO $ CD CD IN $ CD CD , IN JJ NNS VBD CD NN TO $ CD CD IN $ CD CD .
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Information systems posted a loss of $ 8 million , compared with a loss of $ 9 million a year earlier . NN NNS VBD DT NN IN $ CD CD , VBN IN DT NN IN $ CD CD DT NN RBR .
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Customer-access lines increased at an annualized rate of about 4 % and minutes of long-distance use rose about 12 % . NN NNS VBN IN DT VBN NN IN IN CD NN CC NNS IN JJ NN VBD IN CD NN .
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A 10 % gain in operating profit in the quarter was offset by a 21 % boost in interest expense , reflecting higher consolidated borrowings and interest rates . DT CD NN NN IN VBG NN IN DT NN VBD VBN IN DT CD NN NN IN NN NN , VBG JJR JJ NNS CC NN NNS .
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In New York Stock Exchange composite trading , Contel closed at $ 33.75 a share , down .50 cents . IN NNP NNP NNP NNP JJ NN , NNP VBD IN $ CD DT NN , RB CD NNS .
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In East Germany , where humor has long been the only way to express political criticism , they 're not laughing about their new leader Egon Krenz . IN NNP NNP , WRB NN VBZ RB VBN DT JJ NN TO VB JJ NN , PRP VBP RB VBG IN PRP$ JJ NN NNP NNP .
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Mr. Krenz is such a contradictory figure that nobody has even come up with any good jokes about him . NNP NNP VBZ JJ DT JJ NN DT NN VBZ RB VB IN IN DT JJ NNS IN PRP .
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`` You have to have clear feelings about someone before you can make jokes , '' says an East German mother of two who loves swapping political barbs with her friends . `` PRP VBP TO VB JJ NNS IN NN IN PRP MD VB NNS , '' VBZ DT JJ JJ NN IN CD WP VBZ VBG JJ NNS IN PRP$ NNS .
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`` With Krenz , we just do n't know what to expect . '' `` IN NNP , PRP RB VBP RB VB WP TO VB . ''
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Mr. Krenz does n't seem to be the knee-jerk hardliner many initially thought he was when the 52-year-old Politburo member was selected last week to succeed Erich Honecker . NNP NNP VBZ RB VB TO VB DT JJ NN JJ RB VBD PRP VBD WRB DT NNP NNP NN VBD VBN JJ NN TO VB NNP NNP .
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But he does n't appear to be ready to make broad changes either . CC PRP VBZ RB VB TO VB JJ TO VB JJ NNS RB .
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According to East Germany 's ADN news agency , Mr. Krenz spoke to Soviet leader Mikhail Gorbachev by telephone over the weekend and acknowledged East Germany could learn from Moscow 's glasnost policies . VBG TO NNP NNP POS NNP NN NN , NNP NNP VBD TO JJ NN NNP NNP IN NN IN DT NN CC VBD NNP NNP MD VB IN NNP POS FW NNS .
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Already last week , Mr. Krenz started overhauling East Germany 's heavily censored and notoriously boring news media . RB JJ NN , NNP NNP VBD VBG NNP NNP POS RB VBN CC RB JJ NN NNS .
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On Thursday , a day after he took office , East German television broke into regular programming to launch a talk show in which viewers call in questions for a panel of officials to answer . IN NNP , DT NN IN PRP VBD NN , JJ JJ NN VBD IN JJ NN TO VB DT NN NN IN WDT NNS VBP IN NNS IN DT NN IN NNS TO VB .
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The regular nightly news program and daily newspapers are also getting a visible injection of Soviet-style glasnost . DT JJ JJ NN NN CC JJ NNS VBP RB VBG DT JJ NN IN JJ FW .
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`` It was quite a shock , '' says a 43-year-old East German shopkeeper . `` PRP VBD RB DT NN , '' VBZ DT NNP JJ JJ NN .
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`` For the first time in my life , I was n't sure whether I was listening to our news or West German television . '' `` IN DT JJ NN IN PRP$ NN , PRP VBD RB JJ IN PRP VBD VBG TO PRP$ NN CC JJ JJ NN . ''
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Other changes , including easing restrictions on travel for East Germans , are expected . JJ NNS , VBG VBG NNS IN NN IN NNP NNPS , VBP VBN .
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But whether such moves can win back the confidence of East Germans , who have taken to the streets by the thousands in recent weeks to demand democratic changes , depends largely on whether they feel they can trust Mr. Krenz . CC IN JJ NNS MD VB RB DT NN IN NNP NNPS , WP VBP VBN TO DT NNS IN DT NNS IN JJ NNS TO VB JJ NNS , VBZ RB IN IN PRP VBP PRP MD VB NNP NNP .
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And that 's a problem . CC DT VBZ DT NN .
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Mr. Krenz is not only closely identified with his mentor , Mr. Honecker , but also blamed for ordering violent police action against protesters this month and for praising China for sending tanks against student demonstrators . NNP NNP VBZ RB RB RB VBN IN PRP$ NN , NNP NNP , CC RB VBD IN VBG JJ NN NN IN NNS DT NN CC IN VBG NNP IN VBG NNS IN NN NNS .
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`` I hope he grows with the job , '' says Rainer Eppelmann , a Protestant pastor in East Berlin . `` PRP VBP PRP VBZ IN DT NN , '' VBZ NNP NNP , DT NNP NN IN NNP NNP .
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`` The most important thing is that he have a chance . '' `` DT RBS JJ NN VBZ IN PRP VBP DT NN . ''
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Although Mr. Krenz is dedicated to East Germany 's conservative vein of communism , there is much about his style that sets him apart from his party comrades . IN NNP NNP VBZ VBN TO NNP NNP POS JJ NN IN NN , EX VBZ JJ IN PRP$ NN IN NNS PRP RB IN PRP$ NN NNS .
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Unlike Mr. Honecker , who tended to lecture people about socialist values , Mr. Krenz enjoys asking questions . IN NNP NNP , WP VBD TO VB NNS IN JJ NNS , NNP NNP VBZ VBG NNS .
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Indeed , one of his first actions as leader was to visit a gritty machine factory on the outskirts of Berlin and wander among the workers -- a la Gorbachev . RB , CD IN PRP$ JJ NNS IN NN VBD TO VB DT JJ NN NN IN DT NNS IN NNP CC VB IN DT NNS : DT FW NNP .
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He was later shown on television , fielding questions . PRP VBD RB VBN IN NN , NN NNS .
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At one point , he asked a worker whether he thought East Germans were fleeing the country because of restrictive travel policies . IN CD NN , PRP VBD DT NN IN PRP VBD NNP NNPS VBD VBG DT NN IN IN JJ NN NNS .
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The worker 's tart reply : `` It 's more than just travel . DT NN POS JJ NN : `` PRP VBZ JJR IN RB NN .
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People have a sense the government is ignoring the real problems in our society . '' NNS VBP DT NN DT NN VBZ VBG DT JJ NNS IN PRP$ NN . ''
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The exchange was all the more remarkable in that authorities released television footage to Western news agencies . DT NN VBD PDT DT RBR JJ IN DT NNS VBD NN NN TO JJ NN NNS .
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This same tendency toward openness impressed a group of visiting U.S. congressmen this spring . DT JJ NN IN NN VBD DT NN IN VBG NNP NNS DT NN .
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Rather than trying to `` lecture us , '' says one congressional aide who attended the two-hour meeting , Mr. Krenz `` wanted to listen . '' RB IN VBG TO `` NN PRP , '' VBZ CD JJ NN WP VBD DT JJ NN , NNP NNP `` VBD TO VB . ''
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Rep. Ronnie Flippo -LRB- D. , Ala. -RRB- , one of the members of the delegation , says he was particularly impressed by Mr. Krenz 's ready admission that East Germany needed to change . NNP NNP NNP ( NNP , NNP ) , CD IN DT NNS IN DT NN , VBZ PRP VBD RB VBN IN NNP NNP POS JJ NN IN NNP NNP VBD TO VB .
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`` He 's a very tough man , but one who 's also open to arguments , '' adds an aide to West German Chancellor Helmut Kohl . `` PRP VBZ DT RB JJ NN , CC CD WP VBZ RB JJ TO NNS , '' VBZ DT NN TO JJ NNP NNP NNP NNP .
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But there 's another side to Mr. Krenz . CC EX VBZ DT NN TO NNP NNP .
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Born in a Baltic town in an area which is now part of Poland , he has dedicated his life to the party apparatus . VBN IN DT JJ NN IN DT NN WDT VBZ JJ NN IN NNP , PRP VBZ VBN PRP$ NN TO DT NN NN .
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He moved quickly through the ranks with the help of his patron , Mr. Honecker , and emerged as the heir apparent . PRP VBD RB IN DT NNS IN DT NN IN PRP$ NN , NNP NNP , CC VBD IN DT NN JJ .
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Barbara Donovan , an expert on East Germany at Radio Free Europe in Munich , says Mr. Krenz may project a smooth image , but she doubts he 's a true reformer . NNP NNP , DT NN IN NNP NNP IN NNP NNP NNP IN NNP , VBZ NNP NNP MD VB DT JJ NN , CC PRP VBZ PRP VBZ DT JJ NN .
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Even if he is , she adds , he appears to have only limited room for maneuver within the Communist Party 's ruling Politburo . RB IN PRP VBZ , PRP VBZ , PRP VBZ TO VB RB JJ NN IN NN IN DT NNP NNP POS NN NNP .
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Against this background , the new East German leader must move quickly to shore up his government 's standing . IN DT NN , DT JJ JJ JJ NN MD VB RB TO VB IN PRP$ NN POS VBG .
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The sudden growth of the opposition movement , together with the steady outflow of citizens escaping through Poland and Hungary , has plunged the country into its deepest political crisis since an anti-Soviet workers ' uprising in 1953 . DT JJ NN IN DT NN NN , RB IN DT JJ NN IN NNS VBG IN NNP CC NNP , VBZ VBN DT NN IN PRP$ JJS JJ NN IN DT JJ NNS POS NN IN CD .
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`` He does n't have any honeymoon period , '' says a Western diplomat based in East Berlin . `` PRP VBZ RB VB DT NN NN , '' VBZ DT JJ NN VBN IN NNP NNP .
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`` But if he 's sharp and quick , he has a chance . '' `` CC IN PRP VBZ JJ CC JJ , PRP VBZ DT NN . ''
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The diplomat adds that Mr. Krenz has several things going for him . DT NN VBZ IN NNP NNP VBZ JJ NNS VBG IN PRP .
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The East German economy is strong compared with other East bloc nations . DT JJ JJ NN VBZ RB VBN IN JJ NNP NN NNS .
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And his relative youth could help him project a more vibrant image , contrasting with the perception of Mr. Honecker as an out-of-touch old man . CC PRP$ JJ NN MD VB PRP VB DT RBR JJ NN , VBG IN DT NN IN NNP NNP IN DT JJ JJ NN .
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For average East Germans , Mr. Krenz remains a puzzle . IN JJ NNP NNPS , NNP NNP VBZ DT NN .
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`` Either he was n't being real in the past , or he is n't being real right now , '' says a 30-year-old East German doctor . `` CC PRP VBD RB VBG JJ IN DT NN , CC PRP VBZ RB VBG JJ RB RB , '' VBZ DT NNP JJ JJ NN .
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`` Either way , I have a problem with how quickly he 's changed . '' `` CC NN , PRP VBP DT NN IN WRB RB PRP VBZ VBN . ''
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The doctor was among dozens of people milling through East Berlin 's Gethsemane Church Saturday morning . DT NN VBD IN NNS IN NNS NN IN NNP NNP POS NNP NNP NNP NN .
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The walls of the church are covered with leaflets , news clippings , and handwritten notes associated with the country 's political opposition . DT NNS IN DT NN VBP VBN IN NNS , NN NNS , CC JJ NNS VBN IN DT NN POS JJ NN .
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`` I have to come here to read the walls , '' says the doctor , `` because it 's information I still ca n't get through the newspapers . '' `` PRP VBP TO VB RB TO VB DT NNS , '' VBZ DT NN , `` IN PRP VBZ NN PRP RB MD RB VB IN DT NNS . ''
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Meanwhile , East Germany 's growing openness may even allow the state-controlled news media to display a muted sense of humor . RB , NNP NNP POS VBG NN MD RB VB DT JJ NN NNS TO VB DT VBN NN IN NN .
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Television last week carried a new report on East Berlin 's main wallpaper factory and the need to boost production . NNP JJ NN VBD DT JJ NN IN NNP NNP POS JJ NN NN CC DT NN TO VB NN .
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East Germans remember a comment a few years ago by Kurt Hager , the government 's top ideologist , that just because a neighbor hangs new wallpaper , there 's no reason to change your own . NNP NNPS VBP DT NN DT JJ NNS RB IN NNP NNP , DT NN POS JJ NN , IN RB IN DT NN VBZ JJ NN , EX VBZ DT NN TO VB PRP$ JJ .
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His point was there is no reason for East Germany to copy Soviet-style changes . PRP$ NN VBD EX VBZ DT NN IN NNP NNP TO VB JJ NNS .
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`` It 's hard to know whether it was intended to be funny , '' says the East Berlin shopkeeper , `` But everyone I know laughed about it . `` PRP VBZ JJ TO VB IN PRP VBD VBN TO VB JJ , '' VBZ DT NNP NNP NN , `` CC NN PRP VBP VBD IN PRP .
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The list of laboratories claiming to be producing inexplicable amounts of heat from `` cold fusion '' experiments is slowly growing . DT NN IN NNS VBG TO VB VBG JJ NNS IN NN IN `` JJ NN '' NNS VBZ RB VBG .
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But the experiments continue to be plagued by lack of firm evidence that the extra heat is coming from the fusing of hydrogen atoms . CC DT NNS VBP TO VB VBN IN NN IN NN NN IN DT JJ NN VBZ VBG IN DT NN IN NN NNS .
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New experiments at some of the big national laboratories are still unable to find hints of nuclear fusion reactions , leaving only the finding of tritium in a Texas experiment to support University of Utah chemists ' claim of achieving hydrogen fusion at room temperatures . JJ NNS IN DT IN DT JJ JJ NNS VBP RB JJ TO VB NNS IN JJ NN NNS , VBG RB DT NN IN NN IN DT NNP NN TO VB NNP IN NNP NNS POS NN IN VBG NN NN IN NN NNS .
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The latest developments in cold fusion research were presented in 24 reports delivered at the fall meeting here of the Electrochemical Society , the first scientific meeting in five months to hear formal reports on cold fusion experiments . DT JJS NNS IN JJ NN NN VBD VBN IN CD NNS VBN IN DT NN NN RB IN DT NNP NNP , DT JJ JJ NN IN CD NNS TO VB JJ NNS IN JJ NN NNS .
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The meeting offered stark evidence of a dramatic fall in scientific interest in cold fusion research . DT NN VBD JJ NN IN DT JJ NN IN JJ NN IN JJ NN NN .
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Of the 1,300 chemists registered for the society 's weeklong meeting , fewer than 200 sat through the day and a half of cold fusion presentations at week 's end . IN DT CD NNS VBN IN DT NN POS JJ NN , JJR IN CD VBD IN DT NN CC DT NN IN JJ NN NNS IN NN POS NN .
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This was in contrast with the society 's meeting last May , at the height of the controversy , when more than 1,500 scientists , along with scores of reporters and TV crews , crowded into a Los Angeles hotel ballroom for a tumultuous special night session on the subject . DT VBD IN NN IN DT NN POS NN JJ NNP , IN DT NN IN DT NN , WRB JJR IN CD NNS , IN IN NNS IN NNS CC NN NNS , VBN IN DT NNP NNP NN NN IN DT JJ JJ NN NN IN DT NN .
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Neither of the two chemists whose Utah experiments triggered the cold fusion uproar , Martin Fleischmann and B. Stanley Pons , were at the meeting . CC IN DT CD NNS WP$ NNP NNS VBD DT JJ NN NN , NNP NNP CC NNP NNP NNP , VBD IN DT NN .
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But some members of an ad hoc expert committee set up by the Department of Energy to evaluate the cold fusion research were in the audience . CC DT NNS IN DT NN FW NN NN VBN IN IN DT NNP IN NNP TO VB DT JJ NN NN VBD IN DT NN .
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The committee is to recommend at the end of the month whether DOE should support cold fusion research . DT NN VBZ TO VB IN DT NN IN DT NN IN NNP MD VB JJ NN NN .
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Most of the two dozen scientists taking the podium reported results with new , more sophisticated variations of the seemingly simple electrolysis-of-water experiments described last March by Messrs. Fleischmann and Pons . JJS IN DT CD NN NNS VBG DT NN VBD NNS IN JJ , RBR JJ NNS IN DT RB JJ JJ NNS VBD JJ NNP IN NNP NNP CC NNP .
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The experiments involve encircling a thin rod of palladium metal with a wire of platinum and plunging the two electrodes into `` heavy '' water in which the hydrogen atoms are a doubly heavy form known as deuterium . DT NNS VBP VBG DT JJ NN IN NN NN IN DT NN IN NN CC VBG DT CD NNS IN `` JJ '' NN IN WDT DT NN NNS VBP DT RB JJ NN VBN IN NN .
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When an electric current is applied to the palladium and platinum electrodes , the heavy water did begin to break up , or dissociate . WRB DT JJ NN VBZ VBN TO DT NN CC NN NNS , DT JJ NN VBD VB TO VB IN , CC VB .
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Ordinarily the electrolysis , or breakup , of the water would consume almost all of the electrical energy . RB DT NN , CC NN , IN DT NN MD VB RB DT IN DT JJ NN .
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But Messrs. Fleischmann and Pons said their experiments also produced large amounts of heat . CC NNP NNP CC NNP VBD PRP$ NNS RB VBN JJ NNS IN NN .
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The heat energy plus the energy consumed by the breakup of the water molecules added to far more energy coming out of the apparatus than electrical energy going in , they reported . DT NN NN CC DT NN VBN IN DT NN IN DT NN NNS VBD TO RB JJR NN VBG IN IN DT NN IN JJ NN VBG IN , PRP VBD .
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Because they also detected tritium and indications of nuclear radiation , they asserted that the `` excess '' heat energy must be coming from energy released by the nuclear fusion of deuterium atoms inside the palladium rod . IN PRP RB VBD NN CC NNS IN JJ NN , PRP VBD IN DT `` JJ '' NN NN MD VB VBG IN NN VBN IN DT JJ NN IN NN NNS IN DT NN NN .
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As of last weekend , a dozen labs also have reported measuring `` excess '' heat from similar electrolytic experiments , although amounts of such heat vary widely . IN IN JJ NN , DT NN NNS RB VBP VBN VBG `` JJ '' NN IN JJ JJ NNS , IN NNS IN JJ NN VBP RB .
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One of the seven reports presented here of excess heat production was given by Richard A. Oriani , professor of chemical engineering at the University of Minnesota . CD IN DT CD NNS VBN RB IN JJ NN NN VBD VBN IN NNP NNP NNP , NN IN NN NN IN DT NNP IN NNP .
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Mr. Oriani said his skepticism of the Utah claims was initially confirmed when his first experiments last spring failed to produce results . NNP NNP VBD PRP$ NN IN DT NNP NNS VBD RB VBN WRB PRP$ JJ NNS JJ NN VBD TO VB NNS .
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But he then borrowed a palladium rod from chemists at Texas A&M who said they were getting excess heat . CC PRP RB VBD DT NN NN IN NNS IN NNP NNP WP VBD PRP VBD VBG JJ NN .
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`` The results were fascinating , '' he said . `` DT NNS VBD JJ , '' PRP VBD .
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On the fourth `` run '' with the borrowed rod , the experiment began producing excess heat . IN DT JJ `` VB '' IN DT VBN NN , DT NN VBD VBG JJ NN .
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The experiment was stopped briefly to change an instrument . DT NN VBD VBN NN TO VB DT NN .
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When it was restarted , heat output `` really took off '' and produced excess heat for several hours before dying down , he said . WRB PRP VBD VBN , NN NN `` RB VBD IN '' CC VBN JJ NN IN JJ NNS IN VBG RB , PRP VBD .
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Typical of other experiments , Mr. Oriani said his experiment was `` very erratic . '' JJ IN JJ NNS , NNP NNP VBD PRP$ NN VBD `` RB JJ . ''
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It would go along doing nothing but dissociating the heavy water and then at totally unpredictable times , it would begin producing excess heat for as long as 10 or 11 hours before quieting down . PRP MD VB IN VBG NN CC VBG DT JJ NN CC RB IN RB JJ NNS , PRP MD VB VBG JJ NN IN RB RB IN CD CC CD NNS IN VBG RB .
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The excess heat was 15 % to 20 % more than the energy involved in the electrolysis of water . DT JJ NN VBD CD NN TO CD NN JJR IN DT NN VBN IN DT NN IN NN .
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Mr. Oriani said the heat bursts were too large and too long to be explained by the sudden release of energy that might have slowly accumulated during the experiments ' quiescent times , as some scientists have suggested . NNP NNP VBD DT NN NNS VBD RB JJ CC RB JJ TO VB VBN IN DT JJ NN IN NN WDT MD VB RB VBN IN DT NNS POS JJ NNS , IN DT NNS VBP VBN .
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`` There is a reality to the excess energy , '' he said . `` EX VBZ DT NN TO DT JJ NN , '' PRP VBD .
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Other scientists said they also were getting sporadic bursts of excess heat lasting several hours at a time . JJ NNS VBD PRP RB VBD VBG JJ NNS IN JJ NN VBG JJ NNS IN DT NN .
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The bursts often occur , they said , after they `` perturbed '' the experiments by raising or lowering the amount of electric current being applied , or switching the current off and on . DT NNS RB VBP , PRP VBD , IN PRP `` JJ '' DT NNS IN VBG CC VBG DT NN IN JJ JJ NN VBN , CC VBG DT NN IN CC RB .
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One chemist privately suggested this hinted that some `` anomalous '' chemical reactions might be producing the heat . CD NN RB VBD DT VBD IN DT `` JJ '' NN NNS MD VB VBG DT NN .
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One reason questions surround the heat experiments is that they involve unusually meticulous measurements . CD NN NNS VBP DT NN NNS VBZ IN PRP VBP RB JJ NNS .
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Typically , the input energy ranges from a third of a watt to one watt and the excess energy is measured in tenths of a watt . RB , DT NN NN NNS IN DT JJ IN DT NN TO CD NN CC DT JJ NN VBZ VBN IN NNS IN DT NN .
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One exception is a continuing experiment at Stanford University where as much as 10 watts of energy are being put into the electrolytic cells . CD NN VBZ DT VBG NN IN NNP NNP WRB RB JJ IN CD NNS IN NN VBP VBG VB IN DT JJ NNS .
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A cell filled with heavy water is producing 1.0 to 1.5 watts more heat than an identical electrolytic cell filled with ordinary water next to it , reported Turgut M. Gur , an associate of materials scientist Robert A. Huggins , head of the Stanford experimental team . DT NN VBN IN JJ NN VBZ VBG CD TO CD NNS JJR NN IN DT JJ JJ NN VBN IN JJ NN JJ TO PRP , VBD NNP NNP NNP , DT NN IN NNS NN NNP NNP NNP , NN IN DT NNP JJ NN .
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One of the few hints the excess heat might be produced by fusion came from brief remarks by chemist John Bockris of Texas A&M University . CD IN DT JJ NNS DT JJ NN MD VB VBN IN NN VBD IN JJ NNS IN NN NNP NNP IN NNP NNP NNP .
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Mr. Bockris previously reported getting bursts of excess heat and of detecting increasing amounts of tritium forming in the heavy water . NNP NNP RB VBD VBG NNS IN JJ NN CC IN VBG VBG NNS IN NN VBG IN DT JJ NN .
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He said that within the past few days , he 's gotten evidence that there is a `` weak correlation '' between the time the heat bursts occur and the production of tritium . PRP VBD IN IN DT JJ JJ NNS , PRP VBZ VBN NN IN EX VBZ DT `` JJ NN '' IN DT NN DT NN NNS VBP CC DT NN IN NN .
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There is n't any way to continuously measure the amount of tritium in the heavy water , so it 's been difficult to tell whether the tritium formation is related to the heat bursts or some other phenomenon . EX VBZ RB DT NN TO RB VBP DT NN IN NN IN DT JJ NN , IN PRP VBZ VBN JJ TO VB IN DT NN NN VBZ VBN TO DT NN NNS CC DT JJ NN .
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Increasingly careful attempts to measure neutrons , which would be strong evidence of fusion reactions , continue to be negative . RB JJ NNS TO VB NNS , WDT MD VB JJ NN IN NN NNS , VB TO VB JJ .
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Messrs. Fleischmann and Pons initially reported indirect evidence of neutrons being produced in their experiment but later conceded the measurements were questionable . NNP NNP CC NNP RB VBD JJ NN IN NNS VBG VBN IN PRP$ NN CC RB VBD DT NNS VBD JJ .
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Researchers at Sandia National Laboratories in Albuquerque , N.M. , reported they went so far as to take a `` cold fusion '' experiment and three neutron detectors into a tunnel under 300 feet of granite to shield the detectors from cosmic rays . NNS IN NNP NNP NNPS IN NNP , NNP , VBD PRP VBD RB RB IN TO VB DT `` JJ NN '' NN CC CD NN NNS IN DT NN IN CD NNS IN NN TO VB DT NNS IN JJ NNS .
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A number of times they detected neutrons in one , sometimes two , of the three detectors , but only once during 411 hours of the experiment did they detect a neutron burst in all three detectors -- and they think that was a spurious event . DT NN IN NNS PRP VBD NNS IN CD , RB CD , IN DT CD NNS , CC RB RB IN CD NNS IN DT NN VBD PRP VBP DT NN NN IN DT CD NNS : CC PRP VBP WDT VBD DT JJ NN .
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Shimson Gottesfeld of Los Alamos National Laboratory said researchers there detected a burst of neutrons from an early cold fusion experiment last April but decided not to announce it until they could confirm it . NNP NNP IN NNP NNP NNP NNP VBD NNS EX VBN DT NN IN NNS IN DT JJ JJ NN NN JJ NNP CC VBD RB TO VB PRP IN PRP MD VB PRP .
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In subsequent experiments , one of two neutron detectors occasionally indicated a burst of neutrons but neutron bursts were never recorded in both detectors at the same time . IN JJ NNS , CD IN CD NN NNS RB VBD DT NN IN NNS CC NN NNS VBD RB VBN IN DT NNS IN DT JJ NN .
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They concluded the indications of neutrons stemmed from faults in the detectors rather than from the cold fusion experiment . PRP VBD DT NNS IN NNS VBD IN NNS IN DT NNS RB IN IN DT JJ NN NN .
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At the Lawrence Berkeley Laboratory in California , new experiments indicated that the lithium added to the heavy water so it will conduct a current can produce previously unsuspected electrical effects on the surface of the palladium rod -- which Messrs. Fleischmann and Pons might have misinterpreted , reported Philip Ross from the California laboratory . IN DT NNP NNP NNP IN NNP , JJ NNS VBD IN DT NN VBD TO DT JJ NN IN PRP MD VB DT NN MD VB RB JJ JJ NNS IN DT NN IN DT NN NN : WDT NNP NNP CC NNP MD VB VBN , VBD NNP NNP IN DT NNP NN .
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Dow Jones & Co. announced Wall Street Journal advertising rates for 1990 . NNP NNP CC NNP VBD NNP NNP NNP NN NNS IN CD .
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The rates , which take effect Jan. 2 , include a 4 % increase for national edition advertising . DT NNS , WDT VBP NN NNP CD , VBP DT CD NN NN IN JJ NN NN .
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The Journal also will offer expanded volume and frequency discounts . DT NNP RB MD VB VBN NN CC NN NNS .
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The increase for national edition advertising is less than the inflation rate and compares with a 6.5 % increase in 1989 . DT NN IN JJ NN NN VBZ JJR IN DT NN NN CC VBZ IN DT CD NN NN IN CD .
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`` Newsprint and postage prices this year have not gone up , '' said Peter R. Kann , president of Dow Jones . `` NN CC NN VBZ DT NN VBP RB VBN IN , '' VBD NNP NNP NNP , NN IN NNP NNP .
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`` We have invested in improved editorial quality and expanded our quality audience without substantially increasing our costs . `` PRP VBP VBN IN VBN NN NN CC VBN PRP$ NN NN IN RB VBG PRP$ NNS .
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Fundamental fairness and a sense of responsibility lead us to share operating efficiencies with our customers . '' JJ NN CC DT NN IN NN NN PRP TO VB VBG NNS IN PRP$ NNS . ''
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Advertising rates for the Eastern , Midwest , Western and Southwest editions will increase an average 5.5 % , and rates for localized advertising editions will increase 7.5 % . NN NNS IN DT NNP , NNP , JJ CC NNP NNS MD VB DT JJ CD NN , CC NNS IN JJ NN NNS MD VB CD NN .
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Rates for the Wall Street Journal Reports will remain unchanged . NNS IN DT NNP NNP NNP NNS MD VB JJ .
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A one-time noncontract full-page advertisement in The Wall Street Journal national edition will cost $ 99,385 . DT JJ JJ JJ NN IN DT NNP NNP NNP JJ NN MD VB $ CD .
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Advertising rates for The Wall Street Journal\/Europe , published in Brussels and printed in the Netherlands and Switzerland , will increase 9 % . NN NNS IN DT NNP NNP NNP , VBN IN NNP CC VBN IN DT NNP CC NNP , MD VB CD NN .
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Rates for The Asian Wall Street Journal , published and printed in Hong Kong and also printed in Singapore and Tokyo , will rise 8 % . NNS IN DT NNP NNP NNP NNP , VBN CC VBN IN NNP NNP CC RB VBN IN NNP CC NNP , MD VB CD NN .
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Rates for The Asian Wall Street Journal Weekly , published in New York for North American readers , will rise 6 % . NNS IN DT NNP NNP NNP NNP NNP , VBN IN NNP NNP IN NNP JJ NNS , MD VB CD NN .
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Dow Jones also publishes Barron 's magazine , other periodicals and community newspapers and operates electronic business information services . NNP NNP RB VBZ NNP POS NN , JJ NNS CC NN NNS CC VBZ JJ NN NN NNS .
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It owns 67 % of Telerate Inc. , a leading supplier of computerized financial information on global markets . PRP VBZ CD NN IN NNP NNP , DT VBG NN IN JJ JJ NN IN JJ NNS .
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Reflecting the impact of lower semiconductor prices and cuts in defense spending , Texas Instruments Inc. said third-quarter net income fell 31 % and sales dropped slightly from a year earlier . VBG DT NN IN JJR NN NNS CC NNS IN NN NN , NNP NNP NNP VBD JJ JJ NN VBD CD NN CC NNS VBD RB IN DT NN RBR .
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Net fell to $ 65 million , or 67 cents a common share , from $ 93.7 million or $ 1.03 a share , a year ago . NN VBD TO $ CD CD , CC CD NNS DT JJ NN , IN $ CD CD CC $ CD DT NN , DT NN RB .
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Sales fell 2.5 % to $ 1.54 billion from $ 1.58 billion . NNS VBD CD NN TO $ CD CD IN $ CD CD .
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For the nine months , the electronics and defense concern had net of $ 255.8 million , or $ 2.70 a share , down 5.6 % from $ 271 million , or $ 3.01 a share , in the year-ago period . IN DT CD NNS , DT NNS CC NN NN VBD NN IN $ CD CD , CC $ CD DT NN , RB CD NN IN $ CD CD , CC $ CD DT NN , IN DT JJ NN .
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Sales were $ 4.66 billion , up 1.3 % from $ 4.6 billion . NNS VBD $ CD CD , IN CD NN IN $ CD CD .
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Jerry Junkins , chairman , president and chief executive officer , said sluggish consumer-electronics sales reduced demand for semiconductors . NNP NNP , NN , NN CC JJ JJ NN , VBD JJ NNS NNS VBD NN IN NNS .
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That , coupled with lower semiconductor prices and higher semiconductor-depreciation expense , contributed to the decline in sales and profit . DT , VBN IN JJR NN NNS CC JJR JJ NN , VBD TO DT NN IN NNS CC NN .
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In addition , cost increases related to fixed-price defense contracts and a $ 10 million charge to reduce the work force of Texas Instruments ' defense-electronics division also reduced net . IN NN , NN NNS VBN TO JJ NN NNS CC DT $ CD CD NN TO VB DT NN NN IN NNP NNPS POS NNS NN RB VBD JJ .
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However , the quarter results included $ 28 million in royalty income from patent licenses , up from $ 21 million in the year-earlier period . RB , DT NN NNS VBD $ CD CD IN NN NN IN NN NNS , IN IN $ CD CD IN DT JJ NN .
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The nine months include $ 125 million of royalty income , up from $ 98 million last year . DT CD NNS VBP $ CD CD IN NN NN , IN IN $ CD CD JJ NN .
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Mr. Junkins was n't optimistic about the short-term outlook , hinting that further workforce reductions may be needed . NNP NNP VBD RB JJ IN DT JJ NN , VBG IN JJ NN NNS MD VB VBN .
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`` We expect near-term sluggishness in the electronics market , '' he said , `` and we will take ongoing cost-reduction actions as necessary to keep operations aligned with demand . '' `` PRP VBP JJ NN IN DT NNS NN , '' PRP VBD , `` CC PRP MD VB JJ JJ NNS IN JJ TO VB NNS VBN IN NN . ''
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Further , he said , an internal reorganization to combine several divisions into the Information Technology Group is expected to affect fourth-quarter results by an undisclosed amount . RB , PRP VBD , DT JJ NN TO VB JJ NNS IN DT NNP NNP NNP VBZ VBN TO VB JJ NNS IN DT JJ NN .
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Lynch Corp. said its Lynch Telephone Corp. subsidiary completed the acquisition of Western New Mexico Telephone Co. for $ 20 million plus assumption of $ 24 million of debt . NNP NNP VBD PRP$ NNP NNP NNP NN VBD DT NN IN NNP NNP NNP NNP NNP IN $ CD CD CC NN IN $ CD CD IN NN .
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Western New Mexico Telephone , Silver City , had net income of $ 1.9 million on revenue of about $ 10 million last year . NNP NNP NNP NNP , NNP NNP , VBD JJ NN IN $ CD CD IN NN IN RB $ CD CD JJ NN .
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It is an independent phone company with a service area of 15,000 square miles in southwest New Mexico . PRP VBZ DT JJ NN NN IN DT NN NN IN CD NN NNS IN RB NNP NNP .
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It is also a partner in the wireline cellular franchise covering most of western New Mexico . PRP VBZ RB DT NN IN DT JJ JJ NN VBG RBS IN JJ NNP NNP .
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The transaction represents Lynch 's entry into the telephone business . DT NN VBZ NNP POS NN IN DT NN NN .
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The company , which has interests in television , trucking services , and glass-making and food-processing equipment , said it plans to make other acquisitions in the telephone industry . DT NN , WDT VBZ NNS IN NN , NN NNS , CC NN CC NN NN , VBD PRP VBZ TO VB JJ NNS IN DT NN NN .
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Nelson Bunker Hunt 's attempted corner on silver a decade ago is still haunting the market in this metal . NNP NNP NNP POS VBD NN IN NN DT NN RB VBZ RB JJ DT NN IN DT NN .
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Silver , now trading around $ 5 an ounce , surged to an all-time peak of $ 50 an ounce in January 1980 from around $ 9 in mid-1979 . NN , JJ NN IN $ VBG DT NN , VBD TO DT JJ NN IN $ CD DT NN IN NNP CD IN IN $ CD IN NN .
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`` Mr. Hunt 's attempt to squeeze the silver market 10 years ago is still indirectly to blame for today 's market depression , '' says Lesley Edgar , managing director of Sharps Pixley Ltd. , London bullion brokers . `` NNP NNP POS NN TO VB DT NN NN CD NNS RB VBZ RB RB TO VB IN NN POS NN NN , '' VBZ NNP NNP , VBG NN IN NNP NNP NNP , NNP NN NNS .
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While some 100 million ounces of silver once held by Mr. Hunt and Middle Eastern associates are n't hanging over the market anymore , the price surge of 1979-80 precipitated an expansion of mine production and scrap recovery and encouraged silver consumers to economize on silver use , Mr. Edgar says . IN DT CD CD NNS IN NN RB VBD IN NNP NNP CC NNP NNP NNS VBP RB VBG IN DT NN RB , DT NN NN IN CD VBD DT NN IN NN NN CC NN NN CC VBN NN NNS TO VB IN NN NN , NNP NNP VBZ .
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Photographic developers , for example , bought equipment to recover silver from spent photographs , negatives and processing solutions . JJ NNS , IN NN , VBD NN TO VB NN IN VBN NNS , NNS CC NN NNS .
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Meanwhile , the photographic industry , which accounts for 44 % of silver consumption , continues to look for substitutes . RB , DT JJ NN , WDT VBZ IN CD NN IN NN NN , VBZ TO VB IN NNS .
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Japanese and U.S. photographic firms are beginning to produce electronic cameras and X-rays that do n't require silver , dealers say . JJ CC NNP JJ NNS VBP VBG TO VB JJ NNS CC NNS WDT VBP RB VB NN , NNS VBP .
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Silver 's history of volatility is also discouraging investors , dealers say . NN POS NN IN NN VBZ RB VBG NNS , NNS VBP .
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Even in the present uncertain investment climate , investors are preferring `` quality assets '' such as Treasury bills and bonds to gold , silver and platinum , dealers say . RB IN DT JJ JJ NN NN , NNS VBP VBG `` NN NNS '' JJ IN NNP NNS CC NNS TO NN , NN CC NN , NNS VBP .
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Although prices rallied briefly following the tumble on world stock markets earlier this month and the related decline of the dollar , precious metals are out of favor for the moment because of high interest rates and a determination by industrial nations to curb inflation , dealers say . IN NNS VBD NN VBG DT NN IN NN NN NNS RBR DT NN CC DT VBN NN IN DT NN , JJ NNS VBP IN IN NN IN DT NN IN IN JJ NN NNS CC DT NN IN JJ NNS TO VB NN , NNS VBP .
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Silver , however is in a deeper slump than are gold and platinum . NN , RB VBZ IN DT JJR NN IN VBP NN CC NN .
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Some analysts contend that silver is cheap now that prices are languishing at levels last seen in the mid-1970s . DT NNS VBP DT NN VBZ JJ RB IN NNS VBP VBG IN NNS RB VBN IN DT NNS .
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`` Bargain hunters believe that silver offers the best value amongst precious metals , '' says Frederick R. Demler , analyst at Drexel Burnham Lambert Inc . `` NN NNS VBP DT NN VBZ DT JJS NN IN JJ NNS , '' VBZ NNP NNP NNP , NN IN NNP NNP NNP NNP .
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A further decline in prices will lead to mine production cuts in the U.S. , he says . DT JJ NN IN NNS MD VB TO VB NN NNS IN DT NNP , PRP VBZ .
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Scrap merchants are converting smaller quantities of metal into silver , while low prices are discouraging exports from India and the Soviet Union . NN NNS VBP VBG JJR NNS IN NN IN NN , IN JJ NNS VBP VBG NNS IN NNP CC DT NNP NNP .
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Silver prices could also be boosted by strikes in leading producing nations Peru and Mexico , Mr. Demler says . JJ NNS MD RB VB VBN IN NNS IN VBG VBG NNS NNP CC NNP , NNP NNP VBZ .
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Meanwhile , total fabrication demand for silver has risen six years in a row , he says . RB , JJ NN NN IN NN VBZ VBN CD NNS IN DT NN , PRP VBZ .
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Japanese demand grew by 70 % in the first half of this year and the nation plans an issue of a silver commemorative coin that will require 4.5 million ounces . JJ NN VBN IN CD NN IN DT JJ NN IN DT NN CC DT NN VBZ DT NN IN DT NN JJ NN WDT MD VB CD CD NNS .
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Compared with huge annual surpluses of more than 100 million ounces in the first half of the 1980s , world silver supplies and consumption are now nearly in balance , Mr. Demler says . VBN IN JJ JJ NNS IN JJR IN CD CD NNS IN DT JJ NN IN DT CD , NN NN NNS CC NN VBP RB RB IN NN , NNP NNP VBZ .
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Despite intermittent rallies in the past few years , improvements in the supply-demand balance have n't managed to push silver prices into a higher range . IN JJ NNS IN DT JJ JJ NNS , NNS IN DT JJ NN VBP RB VBN TO VB NN NNS IN DT JJR NN .
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`` There 's just too much silver around , '' says Tom Butler , an analyst at Samuel Montagu & Co. , a London bullion house . `` EX VBZ RB RB JJ NN IN , '' VBZ NNP NNP , DT NN IN NNP NNP CC NNP , DT NNP NN NN .
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A huge silver stockpile at exchanges , refiners , consuming industries and government warehouses of at least 617 million ounces is the market depressant , says Shearson Lehman Hutton Inc. in a report . DT JJ NN NN IN NNS , NNS , VBG NNS CC NN NNS IN IN JJS CD CD NNS VBZ DT NN NN , VBZ NNP NNP NNP NNP IN DT NN .
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This year alone , inventories at the Commodity Exchange of New York jumped `` by a staggering 46 million to 221 million ounces '' because of producer deliveries , de-stocking by fabricators and sales by disenchanted investors , says Rhona O'Connell , London-based precious metals analyst at Shearson Lehman Hutton . DT NN RB , NNS IN DT NNP NNP IN NNP NNP VBD `` IN DT JJ CD CD TO CD CD NNS '' IN IN NN NNS , NN IN NNS CC NNS IN JJ NNS , VBZ NNP NNP , JJ JJ NNS NN IN NNP NNP NNP .
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`` Silver production is also in an inexorable upward trend , '' Ms. O'Connell says . `` NN NN VBZ RB IN DT JJ JJ NN , '' NNP NNP VBZ .
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Moreover , while Asian and Middle Eastern investors hoard gold and help underpin its price , silver does n't have the same mystique , dealers say . RB , IN JJ CC NNP NNP NNS VBP NN CC VB VB PRP$ NN , NN VBZ RB VB DT JJ NN , NNS VBP .
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Investors have gotten burned on silver so often that they are far more partial to gold , says Urs Seiler , senior vice president at Union Bank of Switzerland . NNS VBP VBN VBN IN NN RB RB IN PRP VBP RB RBR JJ TO NN , VBZ NNP NNP , JJ NN NN IN NNP NNP IN NNP .
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Yet if gold prices improve , silver prices could rally sharply , he says . RB IN NN NNS VBP , NN NNS MD VB RB , PRP VBZ .
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However , dealers caution that any increase would be $ 1 to $ 2 at most . RB , NNS VBP IN DT NN MD VB $ CD TO $ CD IN RBS .
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Looking ahead to other commodity markets this week : VBG RB TO JJ NN VBZ DT NN :
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Livestock and Meats NN CC NNS
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Analysts expect the prices of live cattle futures contracts to rise in trading today in the wake of a government quarterly census that found fewer-than-expected cattle on feedlots . NNS VBP DT NNS IN VB NNS NNS NNS TO VB IN NN NN IN DT NN IN DT NN JJ NN WDT VBD JJ NNS IN NNS .
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After the close of trading Friday , the Agriculture Department reported that feedlots in the 13 biggest ranch states held 8.06 million cattle on Oct. 1 , down 6 % from that date a year earlier . IN DT NN IN NN NNP , DT NNP NNP VBD IN NNS IN DT CD JJS NN NNS VBN CD CD NNS IN NNP CD , RB CD NN IN DT NN DT NN RBR .
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Most analysts had expected the government to report a 4 % decline . JJS NNS VBD VBN DT NN TO VB DT CD NN NN .
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Feedlots fatten young cattle for slaughter , so a decline signals a tightening supply of beef . NNS VBP JJ NNS IN NN , RB DT NN VBZ DT VBG NN IN NN .
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The government reported that the number of young cattle placed on feedlots during the quarter dropped 5 % compared with the year-earlier quarter . DT NN VBD IN DT NN IN JJ NNS VBN IN NNS IN DT NN VBD NN NN VBN IN DT JJ NN .
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Many industry analysts had been projecting a 3 % decline in placements for the quarter . JJ NN NNS VBD VBN VBG DT CD NN NN IN NNS IN DT NN .
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In the 1988 quarter , many farmers were forced to sell their cattle to feedlot operators because the drought dried out the pasture on their ranches . IN DT CD NN , JJ NNS VBD VBN TO VB PRP$ NNS TO NN NNS IN DT NN VBD RP IN NN IN PRP$ NNS .
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The number of cattle moving onto feedlots in the recent quarter was also lower because fattening cattle is less profitable . DT NN IN NNS VBG IN NNS IN DT JJ NN VBD RB JJR IN VBG NNS VBZ RBR JJ .
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A shortage of young cattle has made them more expensive for feedlot operators to buy . DT NN IN JJ NNS VBZ VBN PRP RBR JJ IN NN NNS TO VB .
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The Agriculture Department also said that the number of fattened cattle slaughtered in the quarter dropped by 5 % from the 1988 quarter , which was in line with projections by analysts . DT NNP NNP RB VBD IN DT NN IN VBN NNS VBN IN DT NN VBN IN NN NN IN DT CD NN , WDT VBD IN NN IN NNS IN NNS .
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Energy NNP
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Friday 's 44-cent-a-barrel price drop to $ 19.98 in the expiring November contract for West Texas Intermediate crude may well set the tone for trading this week in petroleum futures on the New York Mercantile Exchange . NNP POS JJ NN NN TO $ CD IN DT VBG NNP NN IN NNP NNP NNP NN MD RB VBN DT NN IN VBG DT NN IN NN NNS IN DT NNP NNP NNP NNP .
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Most traders and analysts attributed the decline to technical factors associated with the contract 's going off the board . JJS NNS CC NNS VBD DT NN TO JJ NNS VBN IN DT NN POS VBG IN DT NN .
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Others said that the drop continued the downward correction that 's been due in the petroleum pits and that such a trend could well continue in the next several trading sessions . NNS VBD IN DT NN VBD DT JJ NN WDT VBZ VBN JJ IN DT NN NNS CC IN JJ DT NN MD RB VB IN DT JJ JJ NN NNS .
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Barring any petroleum-related news events , trading in the days ahead should further test recent projections by oil economists and other market watchers that strong fourth-quarter demand will keep prices firm . VBG DT JJ NN NNS , NN IN DT NNS RB MD VB NN JJ NNS IN NN NNS CC JJ NN NNS IN JJ JJ NN MD VB NNS NN .
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Copper NN
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Copper prices fell sharply Friday afternoon . NN NNS VBD RB NNP NN .
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For example , copper for December delivery settled 4.5 cents lower at $ 1.2345 a pound . IN NN , NN IN NNP NN VBD CD NNS JJR IN $ CD DT NN .
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Pressure came from several developments including the settlement of two long-term strikes . NN VBD IN JJ NNS VBG DT NN IN CD JJ NNS .
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On Friday , one analyst said , rank-and-file workers ratified a new labor agreement ending a three-month strike at the Highland Valley mine in British Columbia . IN NNP , CD NN VBD , JJ NNS VBD DT JJ NN NN VBG DT JJ NN IN DT NNP NNP NN IN NNP NNP .
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In Mexico , the analyst added , employees at the Cananea mine , who have been out of work since late August when the mine was declared bankrupt by the government , accepted a 35 % cut in the 3,800-man work force . IN NNP , DT NN VBD , VBZ IN DT NNP NN , WP VBP VBN IN IN NN IN JJ NNP WRB DT NN VBD VBN JJ IN DT NN , VBD DT CD NN NN IN DT JJ NN NN .
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The mine is expected to return to production in about a week . DT NN VBZ VBN TO VB TO NN IN IN DT NN .
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On Friday , selling dominated the afternoon `` curb '' session in London , which takes place at noon EDT . IN NNP , VBG VBN DT NN `` VB '' NN IN NNP , WDT VBZ NN IN NN NNP .
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The premium of cash copper to the three-month forward offerings narrowed , indicating weaker demand for cash copper . DT NN IN NN NN TO DT JJ JJ NNS VBD , VBG JJR NN IN NN NN .
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Long-term support for the December contract was believed to be at $ 1.25 a pound . JJ NN IN DT NNP NN VBD VBN TO VB IN $ CD DT NN .
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A technical analyst said there were a number of stop-loss orders under that level that were touched off when the contract 's price fell below it . DT JJ NN VBD EX VBD DT NN IN NN NNS IN DT NN WDT VBD VBN IN WRB DT NN POS NN VBD IN PRP .
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That brought in considerable fund selling , which continued until the close of trading . DT VBN IN JJ NN VBG , WDT VBD IN DT NN IN NN .
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`` In general , it was a bearish close , '' said Ben Hanauer , a copper trader at Rudolph Wolff & Co. , a major commodities trading and brokerage firm . `` IN JJ , PRP VBD DT JJ NN , '' VBD NNP NNP , DT NN NN IN NNP NNP CC NNP , DT JJ NNS NN CC NN NN .
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But whether this price break has implications for this week , he said , `` we will know more when the London Metal Exchange copper stock levels are released Monday morning . '' CC IN DT NN NN VBZ NNS IN DT NN , PRP VBD , `` PRP MD VB JJR WRB DT NNP NNP NNP NN NN NNS VBP VBN NNP NN . ''
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Another analyst said he expected LME inventories to be down by about 15,000 tons when the weekly report is issued . DT NN VBD PRP VBD NNP NNS TO VB RB IN IN CD NNS WRB DT JJ NN VBZ VBN .
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Bernard Savaiko , senior commodities analyst at PaineWebber Inc. , said that when traders saw the market was n't reacting positively to the forecasts of lower LME stocks , they perceived a bearish sign . NNP NNP , JJ NNS NN IN NNP NNP , VBD IN WRB NNS VBD DT NN VBD RB VBG RB TO DT NNS IN JJR NNP NNS , PRP VBD DT JJ NN .
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He also noted that the Japanese , who had been buying at prices just above the $ 1.25 level , apparently pulled back from the market on Friday . PRP RB VBD IN DT NN , WP VBD VBN VBG IN NNS RB IN DT $ CD NN , RB VBD RB IN DT NN IN NNP .
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Mr. Savaiko said he sees a possibility of the December contract dropping to $ 1.05 a pound . NNP NNP VBD PRP VBZ DT NN IN DT NNP NN VBG TO $ CD DT NN .
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Hewlett-Packard Co. will announce today a software program that allows computers in a network to speed up computing tasks by sending the tasks to each other . NNP NNP MD VB NN DT NN NN WDT VBZ NNS IN DT NN TO VB IN VBG NNS IN VBG DT NNS TO DT NN .
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Called Task Broker , the program acts something like an auctioneer among a group of computers wired together . VBN NNP NNP , DT NN NNS NN IN DT NN IN DT NN IN NNS VBN RB .
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If a machine has a big computing task , Task Broker asks other computers in the network for `` bids '' on the job . IN DT NN VBZ DT JJ NN NN , NNP NNP VBZ JJ NNS IN DT NN IN `` NNS '' IN DT NN .
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It then determines which machine is free to do the task most quickly and sends the task to that machine . PRP RB VBZ WDT NN VBZ JJ TO VB DT NN RBS RB CC VBZ DT NN TO DT NN .
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Hewlett-Packard claims that the software allows a network to run three times as many tasks as conventional networks and will run each task twice as fast . NNP NNS IN DT NN VBZ DT NN TO VB CD NNS IN JJ NNS IN JJ NNS CC MD VB DT NN RB IN RB .
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The new Hewlett-Packard program , said analyst John McCarthy at Forrester Research Inc. , a computer-market research company , `` is a key building block as people move to this new model of distributed processing . '' DT JJ NNP NN , VBD NN NNP NNP IN NNP NNP NNP , DT JJ NN NN , `` VBZ DT JJ NN NN IN NNS VBP TO DT JJ NN IN VBN NN . ''
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In today 's computer networks , some machines often sit idle while others are overtaxed . IN NN POS NN NNS , DT NNS RB VBP JJ IN NNS VBP JJ .
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With the Hewlett-Packard program , he said , `` You get more bang for the buck you 've spent on computers . '' IN DT NNP NN , PRP VBD , `` PRP VBP JJR NN IN DT NN PRP VBP VBD IN NNS . ''
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The program , which will be shipped in January 1990 , runs on the Unix operating system . DT NN , WDT MD VB VBN IN NNP CD , VBZ IN DT NNP VBG NN .
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Hewlett-Packard will charge $ 5,000 for a license covering 10 users . NNP MD VB $ CD IN DT NN VBG CD NNS .
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The program now works on all Hewlett-Packard and Apollo workstations and on computers made by Multiflow Computer Inc. of Branford , Conn . DT NN RB VBZ IN DT NNP CC NNP NNS CC IN NNS VBN IN NNP NNP NNP IN NNP , NNP .
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Hewlett-Packard said it will sell versions later next year that run on Sun Microsystems Inc. and Digital Equipment Corp. machines . NNP VBD PRP MD VB NNS RB JJ NN WDT VBP IN NNP NNP NNP CC NNP NNP NNP NNS .
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The Task Broker differs from other programs that spread computing tasks around a network . DT NNP NNP VBZ IN JJ NNS WDT VBP VBG NNS IN DT NN .
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A previously available program called Network Computing System , developed by Hewlett-Packard 's Apollo division , for instance , takes a task and splits it up into parts , divvying up those parts to several computers in a network for simultaneous processing . DT RB JJ NN VBN NNP VBG NNP , VBN IN NNP POS NNP NN , IN NN , VBZ DT NN CC NNS PRP IN IN NNS , VBG IN DT NNS TO JJ NNS IN DT NN IN JJ NN .
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But programs in individual computers must be revised in order to work with that system . CC NNS IN JJ NNS MD VB VBN IN NN TO VB IN DT NN .
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Applications wo n't have to be rewritten to work with Task Broker , Hewlett-Packard said , and the user of a computer wo n't be able to tell that another machine is doing the work . NNS MD RB VB TO VB VBN TO VB IN NNP NNP , NNP VBD , CC DT NN IN DT NN MD RB VB JJ TO VB IN DT NN VBZ VBG DT NN .
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The Task Broker `` turns that network into -- as far as the user is concerned -- one giant computer , '' said Bill Kay , general manager of Hewlett-Packard 's workstation group . DT NNP NNP `` VBZ DT NN IN : RB RB IN DT NN VBZ VBN : CD NN NN , '' VBD NNP NNP , JJ NN IN NNP POS NN NN .
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Price wars between the fast-food giants are starting to clobber the fast-food little guys : the franchisees . NN NNS IN DT NN NNS VBP VBG TO VB DT NN JJ NNS : DT NNS .
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`` When elephants start fighting , ants get killed , '' says Murray Riese , co-owner of National Restaurants , a New York franchisee for Pizza Hut , Roy Rogers and other chains . `` WRB NNS VBP VBG , NNS VBP VBN , '' VBZ NNP NNP , NN IN NNP NNP , DT NNP NNP NN IN NNP NNP , NNP NNP CC JJ NNS .
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As hamburger and pizza outlets saturate one area after another , franchisers are struggling desperately for market share , slashing prices and stepping up costly promotions . IN NN CC NN NNS VB CD NN IN DT , NNS VBP VBG RB IN NN NN , VBG NNS CC VBG IN JJ NNS .
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The fight is putting a tight squeeze on profits of many , threatening to drive the smallest ones out of business and straining relations between the national fast-food chains and their franchisees . DT NN VBZ VBG DT JJ NN IN NNS IN JJ , VBG TO VB DT JJS NNS IN IN NN CC VBG NNS IN DT JJ NN NNS CC PRP$ NNS .
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The chains `` used to offer discounts during winter when business was slow , but in the last year or so , discounting has become a 12-month thing , '' says Donald Harty , president of Charisma Group Inc. , a New York franchisee of Grand Metropolitan PLC 's Burger King chain . DT NNS `` VBN TO VB NNS IN NN WRB NN VBD JJ , CC IN DT JJ NN CC RB , NN VBZ VBN DT JJ NN , '' VBZ NNP NNP , NN IN NNP NNP NNP , DT NNP NNP NN IN NNP NNP NNP POS NNP NNP NN .
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Though Charisma 's sales are up slightly this year , Mr. Harty says profits will be flat or lower . IN NNP POS NNS VBP IN RB DT NN , NNP NNP VBZ NNS MD VB JJ CC JJR .
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And Bill Konopnicki , a Safford , Ariz. , licensee of McDonald 's Corp. who is chairman of the company 's National Operators Advisory Board , says some fast-food outlets `` could be in serious trouble , based on the amount of discounting that seems to be going on . '' CC NNP NNP , DT NNP , NNP , NN IN NNP POS NNP WP VBZ NN IN DT NN POS NNP NNP NNP NNP , VBZ DT NN NNS `` MD VB IN JJ NN , VBN IN DT NN IN NN WDT VBZ TO VB VBG IN . ''
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Until recently , the huge fast-food industry , with sales of about $ 60.1 billion last year , kept price-skirmishing to a minimum . IN RB , DT JJ NN NN , IN NNS IN RB $ CD CD JJ NN , VBD JJ TO DT NN .
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But early this year , PepsiCo Inc. 's Taco Bell unit and Wendy 's International Inc. slashed prices and stepped up promotions , says John Rohs , an analyst for Wertheim Schroder & Co . CC JJ DT NN , NNP NNP POS NNP NNP NN CC NNP POS NNP NNP VBD NNS CC VBD IN NNS , VBZ NNP NNP , DT NN IN NNP NNP CC NNP .
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That brought a chain reaction in the industry . DT VBN DT NN NN IN DT NN .
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The situation was further aggravated early this month , when McDonald 's set plans to heat up the discounting by offering coupons . DT NN VBD RB VBN JJ DT NN , WRB NNP POS VBN NNS TO VB IN DT NN IN NN NNS .
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It also decided to go national with pizza , which it has been test-marketing . PRP RB VBD TO VB JJ IN NN , WDT PRP VBZ VBN VBG .
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Now , two-for-one deals on pizza are common ; so are 99-cent specials on sandwiches normally priced twice as high . RB , JJ NNS IN NN VBP JJ : RB VBP JJ NNS IN NNS RB VBN RB IN NN .
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The discounting , say fast-food operators , occurs on a scale and with a frequency they have n't seen before . DT NN , VBP NN NNS , VBZ IN DT NN CC IN DT NN PRP VBP RB VBN RB .
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The result is that some franchisees are running hard just to stay even , laying off middle managers and working harder to make less . DT NN VBZ IN DT NNS VBP VBG JJ RB TO VB RB , VBG IN NN NNS CC VBG JJR TO VB JJR .
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Joe Mack , a district manager for Cormack Enterprises Inc. , a Burger King operator in Omaha , Neb. , says discounting is so prevalent that `` we have to serve 15 % to 20 % more customers '' to keep sales level . NNP NNP , DT NN NN IN NNP NNPS NNP , DT NNP NNP NN IN NNP , NNP , VBZ NN VBZ RB JJ IN `` PRP VBP TO VB CD NN TO CD NN JJR NNS '' TO VB NNS VB .
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`` It 's almost as if you 're doing extra work to give away the food , '' he says . `` PRP VBZ RB IN IN PRP VBP VBG JJ NN TO VB RB DT NN , '' PRP VBZ .
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Alan D'Agosto , president of Panda 's Inc. , an operator of Arby 's restaurants in Omaha , says : `` All we 're doing is keeping the customers coming , but we are n't increasing sales . '' NNP NNP , NN IN NNP POS NNP , DT NN IN NNP POS NNS IN NNP , VBZ : `` DT PRP VBP VBG VBZ VBG DT NNS VBG , CC PRP VBP RB VBG NNS . ''
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With fast-food outlets on every corner , he , like many , does n't think he has a choice in the price war : `` Our customers say that they wo n't go into a fast-food store unless they get a coupon . '' IN NN NNS IN DT NN , PRP , IN JJ , VBZ RB VB PRP VBZ DT NN IN DT NN NN : `` PRP$ NNS VBP IN PRP MD RB VB IN DT NN NN IN PRP VBP DT NN . ''
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If the battle continues much longer , many fast-food businesses will close or merge , predicts Vincent Morrissey , who owns a string of Kentucky Fried Chicken stores in the Midwest . IN DT NN VBZ JJ RB , JJ NN NNS MD VB CC VB , VBZ NNP NNP , WP VBZ DT NN IN NNP NNP NNP NNS IN DT NNP .
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`` The industry is overbuilt , '' he says . `` DT NN VBZ JJ , '' PRP VBZ .
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`` Fast-food franchisers have managed to squeeze in stores into every corner available . '' `` NN NNS VBP VBN TO VB IN NNS IN DT NN JJ . ''
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The National Restaurant Association says quick-service restaurant units in the U.S. rose 14 % to 131,146 between 1983 and 1987 , the last year for which figures are available . DT NNP NNP NNP VBZ JJ NN NNS IN DT NNP VBD CD NN TO CD IN CD CC CD , DT JJ NN IN WDT NNS VBP JJ .
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With the market so crowded , says a spokesman for Wendy 's in Columbus , Ohio , `` If you 're doing well , you 're doing well at someone else 's expense . '' IN DT NN RB VBD , VBZ DT NN IN NNP POS IN NNP , NNP , `` IN PRP VBP VBG RB , PRP VBP VBG RB IN NN RB POS NN . ''
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Simply put , there is n't enough business for every store to grow . RB VB , EX VBZ RB JJ NN IN DT NN TO VB .
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According to Mr. Rohs , inflation-adjusted , same-store sales at company-owned Wendy 's units in the U.S. have trailed year-earlier levels throughout 1989 , except for August . VBG TO NNP NNP , JJ , JJ NNS IN JJ NNP POS NNS IN DT NNP VBP VBN JJ NNS IN CD , IN IN NNP .
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`` McDonald 's has also been running negative all year , '' the analyst says . `` NNP POS VBZ RB VBN VBG JJ DT NN , '' DT NN NNS .
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Spokesmen for Wendy 's and McDonald 's criticized Mr. Rohs 's calculations . NNS IN NNP POS CC NNP POS VBN NNP NNP POS NNS .
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Jack Greenberg , executive vice president and chief financial officer of McDonald 's , says the company does n't compute , much less disclose , inflation-adjusted , same-store sales . NNP NNP , JJ NN NN CC JJ JJ NN IN NNP POS , VBZ DT NN VBZ RB VB , RB JJR VB , JJ , JJ NNS .
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He adds that short-term comparisons `` can be very misleading because of differences in timing of marketing programs from year to year . '' PRP VBZ IN JJ NNS `` MD VB RB JJ IN IN NNS IN NN IN NN NNS IN NN TO NN . ''
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Profit margins at company-owned McDonald 's outlets in the U.S. `` are holding up quite nicely , '' says Mr. Greenberg . NN NNS IN JJ NNP POS NNS IN DT NNP `` VBP VBG IN RB RB , '' VBZ NNP NNP .
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Profits of franchisees have n't been higher since the mid-1970s , he adds . NNS IN NNS VBP RB VBN JJR IN DT NNS , PRP VBZ .
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But Mr. Greenberg 's sanguine outlook is n't matched by many fast-food industry observers . CC NNP NNP POS JJ NN VBZ RB VBN IN JJ NN NN NNS .
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Smaller chains and single-store operators will be the first to fail , many in the industry predict . JJR NNS CC JJ NNS MD VB DT JJ TO VB , JJ IN DT NN VBP .
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Big franchise groups `` can ride out the storm a lot longer , '' says Mr. Harty , the Burger King operator in New York . JJ NN NNS `` MD VB RP IN NN DT NN RB , '' VBZ NNP NNP , DT NNP NNP NN IN NNP NNP .
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The prolonged price pressures are driving a wedge between some franchisers and their franchisees . DT VBN NN NNS VBP VBG DT NN IN DT NNS CC PRP$ NNS .
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Mr. Morrissey , the Kentucky Fried Chicken franchisee , notes that most franchise owners must absorb increases in expenses without any cut in the royalties , or portion of sales , that they must pay franchisers . NNP NNP , DT NNP NNP NNP NN , VBZ IN RBS NN NNS MD VB NNS IN NNS IN DT NN IN DT NNS , CC NN IN NNS , IN PRP MD VB NNS .
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Franchisees ca n't be forced to go along with a franchiser 's discounting . NNS MD RB VB VBN TO VB IN IN DT NN POS NN .
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But once a franchisee agrees to a promotional program , the franchiser can demand full participation to the very end , says Lew Rudnick , a principal of Rudnick & Wolfe , a Chicago law firm with franchise industry clients . CC RB DT NN VBZ TO DT JJ NN , DT NN MD VB JJ NN TO DT JJ NN , VBZ NNP NNP , DT NN IN NNP CC NNP , DT NNP NN NN IN NN NN NNS .
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He says courts have held that antitrust considerations are outweighed in such cases by the need to protect consumers from deceptive marketing . PRP VBZ NNS VBP VBN IN JJ NNS VBP VBN IN JJ NNS IN DT NN TO VB NNS IN JJ NN .
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In any case , many franchisees , in order to stay on good terms with franchisers , routinely go along with promotions . IN DT NN , JJ NNS , IN NN TO VB IN JJ NNS IN NNS , RB VB IN IN NNS .
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Says Mr. Riese of National Restaurants : `` If you resisted on prices , maybe you would never get that telephone call about a new franchise . VBZ NNP NNP IN NNP NNP : `` IN PRP VBD IN NNS , RB PRP MD RB VB WDT NN NN IN DT JJ NN .
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Companies listed below reported quarterly profit substantially different from the average of analysts ' estimates . NNS VBN IN VBN JJ NN RB JJ IN DT NN IN NNS POS NNS .
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The companies are followed by at least three analysts , and had a minimum five-cent change in actual earnings per share . DT NNS VBP VBN IN IN JJS CD NNS , CC VBD DT JJ JJ NN IN JJ NNS IN NN .
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Estimated and actual results involving losses are omitted . VBN CC JJ NNS VBG NNS VBP VBN .
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The percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past 30 days . DT NN NN VBZ JJ NN IN DT JJ NN WRB IN JJS CD NNS VBP NNS NNS IN DT JJ CD NNS .
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Otherwise , actual profit is compared with the 300-day estimate . RB , JJ NN VBZ VBN IN DT JJ NN .
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Companies listed below reported quarterly profit substantially different from the average of analysts ' estimates . NNS VBN IN VBN JJ NN RB JJ IN DT NN IN NNS POS NNS .
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The companies are followed by at least three analysts , and had a minimum five-cent change in actual earnings per share . DT NNS VBP VBN IN IN JJS CD NNS , CC VBD DT JJ JJ NN IN JJ NNS IN NN .
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Estimated and actual results involving losses are omitted . VBN CC JJ NNS VBG NNS VBP VBN .
|
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The percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past 30 days . DT NN NN VBZ JJ NN IN DT JJ NN WRB IN JJS CD NNS VBP NNS NNS IN DT JJ CD NNS .
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Otherwise , actual profit is compared with the 300-day estimate . RB , JJ NN VBZ VBN IN DT JJ NN .
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CalMat Co. said it completed a $ 32.8 million sale of assets from its Los Angeles area real estate portfolio for net income of $ 12 million . NNP NNP VBD PRP VBD DT $ CD CD NN IN NNS IN PRP$ NNP NNP NN JJ NN NN IN JJ NN IN $ CD CD .
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CalMat said the sale is part of its previously announced plan to sell much of its real estate holdings to focus on its core business of mining and producing asphalt , concrete , rock and sand . NNP VBD DT NN VBZ NN IN PRP$ RB VBD NN TO VB NN IN PRP$ JJ NN NNS TO VB IN PRP$ NN NN IN NN CC VBG NN , JJ , NN CC NN .
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And you thought the only reason to save your canceled checks was to prepare for an IRS audit . CC PRP VBD DT JJ NN TO VB PRP$ VBN NNS VBD TO VB IN DT NNP NN .
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Reggie Jackson , the retired baseball star , has found another use for them . NNP NNP , DT VBN NN NN , VBZ VBN DT NN IN PRP .
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Mr. Jackson , who won the nickname `` Mr. October '' for his World Series exploits , is selling some of his canceled checks to autograph collectors through a dealer for as much as $ 500 each . NNP NNP , WP VBD DT NN `` NNP NNP '' IN PRP$ NNP NNP NNS , VBZ VBG DT IN PRP$ VBN NNS TO VB NNS IN DT NN IN RB JJ IN $ CD DT .
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Dealers say the budding trade in Mr. Jackson 's canceled checks is unusual . NNS VBP DT VBG NN IN NNP NNP POS VBN NNS VBZ JJ .
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`` I do n't know of any living ballplayer that 's ever done it , '' says Jack Smalling , a dealer in Ames , Iowa , and a recognized expert in the field of baseball autographs . `` PRP VBP RB VB IN DT VBG NN WDT VBZ RB VBN PRP , '' VBZ NNP NNP , DT NN IN NNP , NNP , CC DT VBN NN IN DT NN IN NN NNS .
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An initial batch of Mr. Jackson 's checks was on sale at a baseball-card show held in San Francisco over Labor Day weekend . DT JJ NN IN NNP NNP POS NNS VBD IN NN IN DT JJ NN VBN IN NNP NNP IN NNP NNP NN .
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Mr. Jackson showed up at the affair to sign autographs for a fee as well . NNP NNP VBD IN IN DT NN TO VB NNS IN DT NN IN RB .
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`` For someone who has everything else -- Reggie 's jersey , cap and cards -- his checks might be a nice addition , '' says William Vizas , owner of Bill 's Sports Collectibles in Denver , who examined the checks at the San Francisco card show . `` IN NN WP VBZ NN RB : NNP POS NN , NN CC NNS : PRP$ NNS MD VB DT JJ NN , '' VBZ NNP NNP , NN IN NNP POS NNPS NNS IN NNP , WP VBD DT NNS IN DT NNP NNP NN NN .
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For years , the canceled checks of a small number of well-known baseball players have been bought and sold . IN NNS , DT VBN NNS IN DT JJ NN IN JJ NN NNS VBP VBN VBN CC VBN .
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But these players were dead . CC DT NNS VBD JJ .
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`` Maybe three years ago , there were a lot of -LCB- Ty -RCB- Cobbs in the hobby , and awhile back there were Babe Ruth checks , '' says Mr. Smalling . `` RB CD NNS RB , EX VBD DT NN IN ( NNP ) NNS IN DT NN , CC RB RB EX VBD NNP NNP NNS , '' VBZ NNP NNP .
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However , the thought of a living player selling his checks rubs some people the wrong way . RB , DT NN IN DT VBG NN VBG PRP$ NNS VBZ DT NNS DT JJ NN .
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`` Maybe I 'm a little stuffy , but I would n't sell them , '' sniffs Bob Machon , owner of Papa 's Sports Cards in Menlo Park , Calif . `` RB PRP VBP DT JJ JJ , CC PRP MD RB VB PRP , '' VBZ NNP NNP , NN IN NNP POS NNP NNP IN NNP NNP , NNP .
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`` Who knows how much they 'll be worth 100 years from now ? '' `` WP VBZ WRB JJ PRP MD VB JJ CD NNS IN RB . ''
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And Mr. Smalling does n't believe they 're worth all that much now . CC NNP NNP VBZ RB VB PRP VBP JJ DT NN JJ RB .
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`` I do n't think the checks are worth $ 15 apiece , '' he says . `` PRP VBP RB VB DT NNS VBP JJ $ CD RB , '' PRP VBZ .
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Why Mr. Jackson , who could n't be reached for comment , has made some of his checks available for sale is n't clear . WRB NNP NNP , WP MD RB VB VBN IN NN , VBZ VBN DT IN PRP$ NNS JJ IN NN VBZ RB JJ .
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He probably has n't done it for the cash . PRP RB VBZ RB VBN PRP IN DT NN .
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`` I would say he 's definitely not in need of money , '' says Matt Merola , an agent of Mr. Jackson 's based in New York . `` PRP MD VB PRP VBZ RB RB IN NN IN NN , '' VBZ NNP NNP , DT NN IN NNP NNP POS VBN IN NNP NNP .
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`` He has good investments . '' `` PRP VBZ JJ NNS . ''
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And Mr. Jackson probably has opened new checking accounts , too . CC NNP NNP RB VBZ VBN JJ NN NNS , RB .
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Or at least he should . CC IN JJS PRP MD .
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`` I assume those accounts are closed , '' says Mr. Smalling , referring to the accounts of the canceled checks . `` PRP VBP DT NNS VBP VBN , '' VBZ NNP NNP , VBG TO DT NNS IN DT VBN NNS .
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`` I do n't think he 'd want to give out his current account numbers . `` PRP VBP RB VB PRP MD VB TO VB IN PRP$ JJ NN NNS .
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USX Corp. and its Japanese partner , Kobe Steel Ltd. , agreed to form a joint venture to build a new plant to produce hot-dipped galvanized sheet products , mainly for the automotive market . NNP NNP CC PRP$ JJ NN , NNP NNP NNP , VBD TO VB DT JJ NN TO VB DT JJ NN TO VB JJ JJ NN NNS , RB IN DT JJ NN .
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Terms were n't disclosed for the plant , which will have annual capacity of 600,000 tons . NNS VBD RB VBN IN DT NN , WDT MD VB JJ NN IN CD NNS .
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The move by the nation 's largest steelmaker follows a string of earlier announcements by other major steel companies . DT NN IN DT NN POS JJS NN VBZ DT NN IN JJR NNS IN JJ JJ NN NNS .
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Bethlehem Steel Corp. , LTV Corp. and Armco Inc. all have plans to build additional lines for such coated corrosion-resistant steel . NNP NNP NNP , NNP NNP CC NNP NNP DT NN NNS TO VB JJ NNS IN JJ VBN JJ NN .
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The surge in production , analysts say , raises questions about capacity outpacing demand . DT NN IN NN , NNS VBP , VBZ NNS IN NN VBG NN .
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They note that most of the new plants will come on line in 1992 , when the current import trade restraint program ends , which could result in more imports . PRP VBP IN RBS IN DT JJ NNS MD VB IN NN IN CD , WRB DT JJ NN NN NN NN NNS , WDT MD VB IN JJR NNS .
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`` There 's too much capacity , '' contended Charles Bradford , an analyst with Merrill Lynch Capital Markets . `` EX VBZ RB JJ NN , '' VBD NNP NNP , DT NN IN NNP NNP NNP NNPS .
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`` I do n't think there 's anyone not building one . '' `` PRP VBP RB VB EX VBZ NN RB VBG CD . ''
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He does add , however , that transplanted Japanese car makers are boosting the levels of U.S.-made steel in their autos , instead of relying heavily on imported steel . PRP VBZ VB , RB , IN VBN JJ NN NNS VBP VBG DT NNS IN JJ NN IN PRP$ NNS , RB IN VBG RB IN VBN NN .
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That trend could increase demand for hot-dipped galvanized sheet . DT NN MD VB NN IN JJ JJ NN .
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The hot-dipped galvanized segment is one of the fastest-growing and most profitable segments of the steel market , coveted by all major integrated steelmakers wanting to maintain an edge over smaller minimills and reconstructed mills -- those spun off to employees . DT JJ JJ NN VBZ CD IN DT JJ CC RBS JJ NNS IN DT NN NN , VBN IN DT JJ VBN NNS VBG TO VB DT NN IN JJR NNS CC JJ NNS : DT VBN IN TO NNS .
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Indeed , USX said it expects the market for coated sheet steel to reach 12 million tons annually by 1992 , compared with 10.2 million tons shipped in 1988 . RB , NNP VBD PRP VBZ DT NN IN VBN NN NN TO VB CD CD NNS RB IN CD , VBN IN CD CD NNS VBN IN CD .
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For the first eight months of 1989 , analysts say shipments of hot-dipped galvanized steel increased about 8 % from a year earlier , while overall steel shipments were up only 2.4 % . IN DT JJ CD NNS IN CD , NNS VBP NNS IN JJ JJ NN VBN IN CD NN IN DT NN RBR , IN JJ NN NNS VBD IN RB CD NN .
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USX and Kobe Steel hope to reach a definitive agreement establishing the 50-50 partnership by the end of the year , with construction tentatively slated for the spring of 1990 and production by 1992 . NNP CC NNP NNP NN TO VB DT JJ NN VBG DT JJ NN IN DT NN IN DT NN , IN NN RB VBD IN DT NN IN CD CC NN IN CD .
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USX already has six lines in existing plants producing hot-dipped galvanized steel , but this marks the first so-called greenfield plant for such production . NNP RB VBZ CD NNS IN VBG NNS VBG JJ JJ NN , CC DT VBZ DT JJ JJ NN NN IN JJ NN .
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Moreover , it will boost by 50 % USX 's current hot-dipped capacity of 1,275,000 tons . RB , PRP MD VB IN CD NN NNP POS JJ JJ NN IN CD NNS .
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The company said it does n't expect the new line 's capacity to adversely affect the company 's existing hot-dipped galvanizing lines . DT NN VBD PRP VBZ RB VB DT JJ NN POS NN TO RB VB DT NN POS VBG JJ NN NNS .
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Steelmakers have also been adding capacity of so-called electrogalvanized steel , which is another way to make coated corrosion-resistant steel . NNS VBP RB VBN VBG NN IN JJ JJ NN , WDT VBZ DT NN TO VB VBN JJ NN .
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One of the advantages of the hot-dipped process is that it allows the steel to be covered with a thicker coat of zinc more quickly . CD IN DT NNS IN DT JJ NN VBZ IN PRP VBZ DT NN TO VB VBN IN DT JJR NN IN NN RBR RB .
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ONCE YOU MAKE UP your mind about an investment , the rest is easy , right ? RB PRP VB IN PRP$ NN IN DT NN , DT NN VBZ JJ , NN .
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You just call your broker and say `` buy '' or `` sell . '' PRP RB VBP PRP$ NN CC VBP `` VB '' CC `` VB . ''
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Dream on . NNP NNP .
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There are all sorts of ways to give buy and sell instructions to a broker -- and just as many ways to get burned if you do n't know what you 're doing . EX VBP DT NNS IN NNS TO VB NN CC VB NNS TO DT NN : CC RB IN JJ NNS TO VB VBN IN PRP VBP RB VB WP PRP VBP VBG .
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So here 's a rundown of the most common types of market orders permitted by the stock and commodity exchanges . RB RB VBZ DT NN IN DT RBS JJ NNS IN NN NNS VBN IN DT NN CC NN NNS .
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Two things to keep in mind : Not all exchanges accept every type of order . CD NNS TO VB IN NN : RB DT NNS VBP DT NN IN NN .
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And even when a specific order is acceptable to an exchange , a brokerage firm can refuse to enter it for a customer . CC RB WRB DT JJ NN VBZ JJ TO DT NN , DT NN NN MD VB TO VB PRP IN DT NN .
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Market Order : This is probably the most widely used order -- and the one most open to abuse by unscrupulous floor brokers , since it imposes no price restrictions . NNP NNP : DT VBZ RB DT RBS RB VBN NN : CC DT CD RBS JJ TO VB IN JJ NN NNS , IN PRP VBZ DT NN NNS .
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With a market order , an investor tells a broker to buy or sell `` at the market . '' IN DT NN NN , DT NN VBZ DT NN TO VB CC VB `` IN DT NN . ''
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It 's like saying , `` get me in now '' or `` get me out now . '' PRP VBZ IN VBG , `` VB PRP IN RB '' CC `` VB PRP IN RB . ''
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For example , if wheat is being offered at $ 4.065 and bid at $ 4.060 , a market order to buy would be filled at the higher price and a market order to sell at the lower price . IN NN , IN NN VBZ VBG VBN IN $ CD CC NN IN $ CD , DT NN NN TO VB MD VB VBN IN DT JJR NN CC DT NN NN TO VB IN DT JJR NN .
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A recent indictment alleges that some floor brokers at the two largest Chicago commodity exchanges used market orders to fill customers ' orders at unfavorable prices by arranging trades with fellow brokers . DT JJ NN VBZ IN DT NN NNS IN DT CD JJS NNP NN NNS VBD NN NNS TO VB NNS POS NNS IN JJ NNS IN VBG NNS IN NN NNS .
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Profits realized from these trades would then be shared by the conspiring brokers . NNS VBD IN DT NNS MD RB VB VBN IN DT VBG NNS .
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Limit Order : Limit orders are used when investors want to restrict the amount they will receive or pay for an investment . VB NNP : VB NNS VBP VBN WRB NNS VBP TO VB DT NN PRP MD VB CC VB IN DT NN .
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Investors do this by specifying a minimum price at which the investment may be sold or the maximum price that may be paid for it . NNS VBP DT IN VBG DT JJ NN IN WDT DT NN MD VB VBN CC DT JJ NN WDT MD VB VBN IN PRP .
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Suppose an investor wants to sell a stock , but not for less than $ 55 . VB DT NN VBZ TO VB DT NN , CC RB IN JJR IN $ NN .
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A limit order to sell could be entered at that price . DT NN NN TO VB MD VB VBN IN DT NN .
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One risk : Investors may regret the restriction if the stock reaches 54 and then falls . CD NN : NNS MD VB DT NN IN DT NN VBZ CD CC RB VBZ .
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Unless the market goes at least one tick -LRB- the smallest price increment permitted -RRB- beyond the limit price , investors are n't assured of having their orders filled because there may not be sufficient trading volume to permit filling it at the specified price . IN DT NN VBZ IN JJS CD VB ( DT JJS NN NN VBN ) IN DT NN NN , NNS VBP RB VBN IN VBG PRP$ NNS VBN IN EX MD RB VB JJ NN NN TO VB VBG PRP IN DT VBN NN .
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Stop Order : Stop orders tell a floor broker to buy or sell an investment once the price reaches a certain level . VB NNP : VB NNS VB DT NN NN TO VB CC VB DT NN RB DT NN VBZ DT JJ NN .
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Once the price reaches that level , a stop order turns into a market order , and the order is filled at whatever price the broker can get . RB DT NN VBZ DT NN , DT NN NN VBZ IN DT NN NN , CC DT NN VBZ VBN IN WDT VBP DT NN MD VB .
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Stop orders are sometimes called `` stop-loss '' orders because they are frequently used to protect profits or limit losses . VB NNS VBP RB VBN `` NN '' NNS IN PRP VBP RB VBN TO VB NNS CC NN NNS .
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While stop orders sound similar to limit orders , there is a difference : Sell stops must be entered at a price below the current market price and buy stops above . IN NN NNS VBP JJ TO VB NNS , EX VBZ DT NN : VB VBZ MD VB VBN IN DT NN IN DT JJ NN NN CC VB VBZ RB .
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In contrast , sell limit orders must be placed above the market price and buy limit orders are placed below . IN NN , VB NN NNS MD VB VBN IN DT NN NN CC VB NN NNS VBP VBN RB .
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The crash in October 1987 and last Friday 's sell-off painfully taught some investors exactly what stop orders will and wo n't do . DT NN IN NNP CD CC JJ NNP POS NN RB VBD DT NNS RB WP VBP NNS MD CC MD RB VB .
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An investor who may have placed a stop-loss order at $ 90 under a stock that was trading at $ 100 a share on the Friday before the crash was stunned to discover that the order was filled at $ 75 when the stock opened at that price on Monday . DT NN WP MD VB VBN DT NN NN IN $ CD IN DT NN WDT VBD VBG IN $ CD DT NN IN DT NNP IN DT NN VBD VBN TO VB IN DT NN VBD VBN IN $ CD WRB DT NN VBD IN DT NN IN NNP .
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Stop-Limit Order : Stop-limit orders turn into limit orders when an investment trades at the price specified in the order . NNP NNP : JJ NNS VBP IN NN NNS WRB DT NN NNS IN DT NN VBN IN DT NN .
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Unlike stop orders -- which are filled at the market price when the stop price is hit -- stop-limit orders demand that the trades be made only at the specified price . IN NN NNS : WDT VBP VBN IN DT NN NN WRB DT NN NN VBZ VBN : JJ NNS VBP IN DT NNS VBP VBN RB IN DT VBN NN .
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If it ca n't be made at that price , it does n't get filled . IN PRP MD RB VB VBN IN DT NN , PRP VBZ RB VB VBN .
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Investors who wish to be out of a position , without the risk of receiving a worse-than-expected price from a market order , may use this type of order to specify the price at which the order must be filled . NNS WP VBP TO VB IN IN DT NN , IN DT NN IN VBG DT JJ NN IN DT NN NN , MD VB DT NN IN NN TO VB DT NN IN WDT DT NN MD VB VBN .
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But if the market moves quickly enough , it may be impossible for the broker to carry out the order because the investment has passed the specified price . CC IN DT NN NNS RB RB , PRP MD VB JJ IN DT NN TO VB RP IN NN IN DT NN VBZ VBN DT VBN NN .
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Market-If-Touched Order : Market-if-touched orders are like stop orders in that they become market orders if a specified price is reached . NNP NNP : JJ NNS VBP IN NN NNS IN DT PRP VBP NN NNS IN DT VBN NN VBZ VBN .
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However , unlike a buy-stop order , a buy market-if-touched order is entered at a price below the current price , while a sell market-if-touched order is entered at a price above it . RB , IN DT JJ NN , DT NN NN NN VBZ VBN IN DT NN IN DT JJ NN , IN DT NN NN NN VBZ VBN IN DT NN IN PRP .
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As soon as the market trades at the specified price the floor broker will fill it at the best possible price . RB RB IN DT NN NNS IN DT VBN NN DT NN NN MD VB PRP IN DT JJS JJ NN .
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Fill-Or-Kill Order : The fill-or-kill order is one of several associated with the timing of trades . NNP NNP : DT JJ NN VBZ CD IN RB VBN IN DT NN IN NNS .
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It instructs a broker to buy or sell an investment at the specified price or better . PRP VBZ DT NN TO VB CC VB DT NN IN DT VBN NN CC JJR .
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But if the investment ca n't be bought or sold immediately , the order is automatically canceled . CC IN DT NN MD RB VB VBN CC VBN RB , DT NN VBZ RB VBN .
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Gregory Bessemer , who came in second in the stock division of the recently completed U.S. Trading Championship , says he uses fill-or-kill orders almost exclusively when trading options . NNP NNP , WP VBD IN JJ IN DT NN NN IN DT RB VBN NNP NNP NNP , VBZ PRP VBZ JJ NNS RB RB WRB NN NNS .
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`` I like to use them to feel out the market , '' he says . `` PRP VB TO VB PRP TO VB RP IN NN , '' PRP VBZ .
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`` If they do n't fill it immediately , then I can start over at a new price or try again with the same price . '' `` IN PRP VBP RB VB PRP RB , RB PRP MD VB IN IN DT JJ NN CC VB RB IN DT JJ NN . ''
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Not-Held Order : This is another timing order . NNP NNP : DT VBZ DT NN NN .
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It is a market order that allows floor brokers to take more time to buy or sell an investment , if they think they can get a better price by waiting . PRP VBZ DT NN NN WDT VBZ NN NNS TO VB JJR NN TO VB CC VB DT NN , IN PRP VBP PRP MD VB DT JJR NN IN VBG .
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Not-held orders , which are also known as `` disregard the tape '' orders , are always done at the customer 's risk . JJ NNS , WDT VBP RB VBN IN `` NN DT NN '' NNS , VBP RB VBN IN DT NN POS NN .
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One-Cancels-The-Other Order : This is really two orders in one , generally for the same security or commodity , instructing floor brokers to fill whichever order they can first and then cancel the other order . NNP NNP : DT VBZ RB CD NNS IN CD , RB IN DT JJ NN CC NN , VBG NN NNS TO VB WDT VBP PRP MD RB CC RB VB DT JJ NN .
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In a fast-moving market , it prevents an investor from getting stuck with having made two trades on the same security . IN DT JJ NN , PRP VBZ DT NN IN VBG VBN IN VBG VBN CD NNS IN DT JJ NN .
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Specific-Time Order : This type of order couples many of the orders described above with instructions that the order must be carried out at or by a certain time . NNP NNP : DT NN IN NN NNS NN IN DT NNS VBN IN IN NNS IN DT NN MD VB VBN IN IN CC IN DT JJ NN .
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`` On the close '' can be added to many types of orders . `` IN DT NN '' MD VB VBN TO VB NNS IN NNS .
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For example , `` market-on-close orders '' must be filled during the last few minutes of trading for the day at a price that is within the official closing range of prices as determined by the exchange . IN NN , `` JJ NNS '' MD VB VBN IN DT JJ JJ NNS IN NN IN DT NN IN DT NN WDT VBZ IN DT NN VBG NN IN NNS IN VBN IN DT NN .
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`` Stop-close-only orders '' are stop orders that only become active during the closing minutes of trading . `` JJ NNS '' VBP VB NNS WDT RB VB JJ IN DT VBG NNS IN NN .
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`` Day orders '' expire at the end of the day on which they are entered , `` good-till-canceled orders '' have no expiration date . `` NNP NNS '' VB IN DT NN IN DT NN IN WDT PRP VBP VBN , `` JJ NNS '' VBP DT NN NN .
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Most brokers assume that all orders are day orders unless specified otherwise . JJS NNS VBP IN DT NNS VBP NN NNS IN VBN RB .
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On Oct. 19 , 1987 , some investors learned the consequences of entering `` good-til-canceled limit orders '' and then forgetting about them . IN NNP CD , CD , DT NNS VBD DT NNS IN VBG `` JJ NN NNS '' CC RB VBG IN PRP .
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They found they had bought stock from limit orders that they might have entered weeks or months earlier and had forgotten to cancel . PRP VBD PRP VBD VBN NN IN NN NNS IN PRP MD VB VBN NNS CC NNS RBR CC VBD VBN TO VB .
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It is always the responsibility of investors to keep track of the orders they have placed . PRP VBZ RB DT NN IN NNS TO VB NN IN DT NNS PRP VBP VBN .
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Investors who change their mind about buying or selling after an order has been filled are , usually , stuck with the consequences . NNS WP VBP PRP$ NN IN VBG CC VBG IN DT NN VBZ VBN VBN VBP , RB , VBN IN DT NNS .
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Mr. Angrist writes on the options and commodities markets for The Wall Street Journal . NNP NNP VBZ IN DT NNS CC NNS NNS IN DT NNP NNP NNP .
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IN SIZING UP the risks of stock-market investments , there 's probably no starting place better than `` beta . '' IN NNP IN DT NNS IN NN NNS , EX VBZ RB DT VBG NN JJR IN `` NN . ''
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But investors better not ignore its limitations , either . CC NNS RBR RB VB PRP$ NNS , RB .
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Beta is a handy gauge that measures the volatility of a stock or stock mutual fund . NNP VBZ DT JJ NN IN VBZ DT NN IN DT NN CC NN JJ NN .
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For any given move in the overall market , it suggests how steeply that particular issue might rise or fall . IN DT VBN NN IN DT JJ NN , PRP VBZ WRB RB IN JJ NN MD VB CC NN .
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Beta figures are widely available and easy to interpret . JJ NNS VBP RB JJ CC JJ TO VB .
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The beta of the broad market , typically defined as the Standard & Poor 's 500-stock index , is always 1.0 . DT NN IN DT JJ NN , RB VBN IN DT NNP CC NNP POS JJ NN , VBZ RB CD .
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So a stock with a beta of 0.5 is half as volatile , one at 1.5 is 50 % more volatile , and so on . RB DT NN IN DT NN IN CD VBZ NN IN JJ , CD IN CD VBZ CD NN RBR JJ , CC RB RB .
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Cautious investors should generally go with stocks that have low betas . JJ NNS MD RB VB IN NNS WDT VBP JJ NNS .
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Go with high-beta stocks to get the biggest payoff from a bet on a bull market . VB IN JJ NNS TO VB DT JJS NN IN DT NN IN DT NN NN .
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Remember , though , that beta also has important limitations . VB , RB , DT NN RB VBZ JJ NNS .
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`` Beta is only part of the risk in a stock , '' says William F. Sharpe , the Stanford University emeritus professor who developed the measure . `` NNP VBZ JJ NN IN DT NN IN DT NN , '' VBZ NNP NNP NNP , DT NNP NNP NN NN WP VBD DT NN .
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`` There is risk that is not associated with market moves , and the beta does n't tell you the magnitude of that . '' `` EX VBZ NN WDT VBZ RB VBN IN NN NNS , CC DT NN VBZ RB VB PRP DT NN IN DT . ''
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In particular , beta does n't measure the company - and industry-specific risk associated with an individual stock . IN JJ , NN VBZ RB VB DT NN : CC JJ NN VBN IN DT JJ NN .
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That `` business '' risk is very significant for an investor with only a few stocks , but it virtually disappears in a large and well-diversified portfolio . DT `` NN '' NN VBZ RB JJ IN DT NN IN RB DT JJ NNS , CC PRP RB VBZ IN DT JJ CC JJ NN .
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Beta is also a poor indicator of the risk in stock groups that march to their own drummer . NNP VBZ RB DT JJ NN IN DT NN IN NN NNS WDT VBP TO PRP$ JJ NN .
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In particular , the prices of gold and other precious-metals stocks shoot up and down , but the stocks tend to have low betas because their moves are not market-inspired . IN JJ , DT NNS IN NN CC JJ NNS NNS VBP IN CC RB , CC DT NNS VBP TO VB JJ NNS IN PRP$ NNS VBP RB JJ .
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Concern that investors could misinterpret such readings led the American Association of Individual Investors to eliminate beta figures for precious-metals funds in the 1989 edition of its mutual-fund guide . NN IN NNS MD VB JJ NNS VBD DT NNP NNP IN JJ NNS TO VB NN NNS IN NNS NNS IN DT CD NN IN PRP$ JJ NN .
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`` Our fear was people would look just at the beta -LCB- of a gold fund -RCB- and say here is an investment with very low risk , '' says John Markese , director of research for the Chicago-based group . `` PRP$ NN VBD NNS MD VB RB IN DT NN ( IN DT NN NN ) CC VBP RB VBZ DT NN IN RB JJ NN , '' VBZ NNP NNP , NN IN NN IN DT JJ NN .
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`` In reality it 's very volatile , but the movements are not because of market movements . `` IN NN PRP VBZ RB JJ , CC DT NNS VBP RB IN IN NN NNS .
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READY TO REVIEW the riskiness of your investment portfolio ? NNP TO NNP DT NN IN PRP$ NN NN .
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First , a pop quiz . RB , DT NN NN .
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When you think of the words `` risk '' and `` investment , '' what 's the specific peril that comes to mind ? WRB PRP VBP IN DT NNS `` NN '' CC `` NN , '' WP VBZ DT JJ NN WDT VBZ TO VB .
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Pencils down . NNS RB .
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If you 're like most people , you said it 's a holding that goes completely sour -- maybe a bond that defaults or a stock whose value disappears in a bankruptcy proceeding . IN PRP VBP IN RBS NNS , PRP VBD PRP VBZ DT VBG WDT VBZ RB JJ : RB DT NN IN NNS CC DT NN WP$ NN VBZ IN DT NN NN .
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`` People tend to see risk primarily on that one dimension , '' says Timothy Kochis , national director of personal financial planning for accountants Deloitte , Haskins & Sells . `` NNS VBP TO VB NN RB IN DT CD NN , '' VBZ NNP NNP , JJ NN IN JJ JJ NN IN NNS NNP , NNP CC NNP .
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But therein lies another aspect of investment risk : the hazard of shaping your portfolio to avoid one or more types of risk and being blind-sided by others . CC RB VBZ DT NN IN NN NN : DT NN IN VBG PRP$ NN TO VB CD CC JJR NNS IN NN CC VBG JJ IN NNS .
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This is clearly not good news to all you people who sleep like babies every night , lulled by visions of your money sitting risk-free in six-month CDs . DT VBZ RB RB JJ NN TO DT PRP NNS WP VBP IN NNS DT NN , VBN IN NNS IN PRP$ NN VBG JJ IN JJ NNS .
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Risk wears many disguises , and investments that are low in one type of obvious risk can be distressingly high in other , less obvious kinds . NN VBZ JJ NNS , CC NNS WDT VBP JJ IN CD NN IN JJ NN MD VB RB JJ IN JJ , RBR JJ NNS .
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U.S. Treasury bonds , for example , are supersafe when it comes to returning money at maturity . NNP NNP NNS , IN NN , VBP NN WRB PRP VBZ TO VBG NN IN NN .
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But their value as investments can be decimated by inflation , which erodes the purchasing power of bonds ' fixed-dollar interest payments . CC PRP$ NN IN NNS MD VB VBN IN NN , WDT VBZ DT VBG NN IN NNS POS JJ NN NNS .
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Risk is also a function of time . NN VBZ RB DT NN IN NN .
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When financial professionals measure risk mathematically , they usually focus on the volatility of short-term returns . WRB JJ NNS VBP NN RB , PRP RB VBP IN DT NN IN JJ NNS .
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Stocks are much riskier than Treasury bills , for example , because the range in performance from the best years to the worst is much wider . NNS VBP RB JJR IN NNP NNS , IN NN , IN DT NN IN NN IN DT JJS NNS TO DT JJS VBZ RB JJR .
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That is usually measured by the standard deviation , or divergence , of annual results from the average return over time . DT VBZ RB VBN IN DT JJ NN , CC NN , IN JJ NNS IN DT JJ NN IN NN .
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But investors who are preoccupied with short-term fluctuations may be paying too little attention to another big risk -- not generating enough money to meet long-term financial and life-style goals . CC NNS WP VBP VBN IN JJ NNS MD VB VBG RB JJ NN TO DT JJ NN : RB VBG JJ NN TO VB JJ JJ CC NN NNS .
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For instance , some investors have sworn off stocks since the 1987 market crash ; last Friday 's debacle only reinforced those feelings . IN NN , DT NNS VBP VBN IN NNS IN DT CD NN NN : JJ NNP POS NN RB VBD DT NNS .
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But the stock market , despite some stomach-churning declines , has far outperformed other securities over extended periods . CC DT NN NN , IN DT JJ NNS , VBZ RB VBN JJ NNS IN VBN NNS .
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By retreating to the apparent security of , say , money-market funds , investors may not be earning enough investment return to pay for a comfortable retirement . IN VBG TO DT JJ NN IN , VBP , JJ NNS , NNS MD RB VB VBG JJ NN NN TO VB IN DT JJ NN .
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`` That 's the biggest risk of all -- the risk of not meeting your objectives , '' says Steven B. Enright , a New York financial planner with Seidman Financial Services . `` DT VBZ DT JJS NN IN DT : DT NN IN RB VBG PRP$ NNS , '' VBZ NNP NNP NNP , DT NNP NNP JJ NN IN NNP NNP NNPS .
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As a result , financial advisers say they take several steps when evaluating the riskiness of clients ' portfolios . IN DT NN , JJ NNS VBP PRP VBP JJ NNS WRB VBG DT NN IN NNS POS NNS .
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They estimate the return a person 's current portfolio is likely to generate over time , along with a standard deviation that suggests how much the return will vary year by year . PRP VBP DT NN DT NN POS JJ NN VBZ JJ TO VB IN NN , IN IN DT JJ NN WDT VBZ WRB JJ DT NN MD VB NN IN NN .
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They try to figure out the long-term results the person needs to meet major goals . PRP VBP TO VB RP IN JJ NNS DT NN VBZ TO VB JJ NNS .
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And they eyeball types of risk that are not easily quantified . CC PRP NN NNS IN NN WDT VBP RB RB VBN .
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The portfolios of two hypothetical families , one a couple at retirement age and another a two-income couple at age 45 , illustrate several types of risk that investors need to consider . DT NNS IN CD JJ NNS , CD DT NN IN NN NN CC DT DT JJ NN IN NN CD , VB JJ NNS IN NN IN NNS VBP TO VB .
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For instance , the insured municipal bonds that dominate the older couple 's portfolio were probably selected in large part for their low repayment risk . IN NN , DT VBN JJ NNS WDT VBP DT JJR NN POS NN VBD RB VBN IN JJ NN IN PRP$ JJ NN NN .
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But they expose the holders to a lot of inflation risk and interest-rate risk . CC PRP VBP DT NNS TO DT NN IN NN NN CC NN NN .
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The younger couple 's stockholdings involve more risk than a diversified stock portfolio because the bulk of the money is in a single issue . DT JJR NN POS NNS VBP JJR NN IN DT JJ NN NN IN DT NN IN DT NN VBZ IN DT JJ NN .
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Note that the younger couple 's portfolio has a higher expected annual return , 10.1 % vs. 8.8 % , as calculated by Seidman Financial Services , which is the financial-planning affiliate of BDO Seidman . VB IN DT JJR NN POS NN VBZ DT JJR VBN JJ NN , CD NN IN CD NN , IN VBN IN NNP NNP NNPS , WDT VBZ DT JJ NN IN NNP NNP .
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That largely reflects the heavy stockholdings . DT RB VBZ DT JJ NNS .
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But one price paid for the higher expected return is greater short-term volatility , as reflected in the higher standard deviation that Seidman estimates for the younger couple 's portfolio . CC CD NN VBN IN DT JJR VBN NN VBZ RBR JJ NN , IN VBN IN DT JJR JJ NN IN NNP NNS IN DT JJR NN POS NN .
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-LRB- Here 's how to interpret a standard deviation figure : Take the expected return and add one standard deviation to it . ( RB POS WRB TO VB DT JJ NN NN : VB DT VBN NN CC VB CD JJ NN TO PRP .
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Then take the expected return and subtract one standard deviation . RB VB DT VBN NN CC VB CD JJ NN .
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In two of three years , the actual result should fall within that range if all the assumptions were accurate . IN CD IN CD NNS , DT JJ NN MD VB IN DT NN IN PDT DT NNS VBD JJ .
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Then add and subtract two standard deviations to get a wider range . RB VB CC VB CD JJ NNS TO VB DT JJR NN .
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There 's a 95 % probability any year 's result will fall in the range . -RRB- EX VBZ DT CD NN NN DT NN POS NN MD VB IN DT NN . )
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Of course , the greater volatility of the younger couple 's portfolio does n't necessarily mean those investments are riskier in terms of meeting the holders ' long-term goals . IN NN , DT JJR NN IN DT JJR NN POS NN VBZ RB RB VB DT NNS VBP JJR IN NNS IN VBG DT NNS POS JJ NNS .
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Indeed , the older couple 's portfolio could actually be riskier in that sense if the expected return wo n't generate enough dollars to meet their spending plans . RB , DT JJR NN POS NN MD RB VB JJR IN DT NN IN DT VBN NN MD RB VB JJ NNS TO VB PRP$ NN NNS .
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`` They may feel emotionally secure now because they are not heavily in the stock market , '' says John H. Cammack , a financial planner with Alexandra Armstrong Advisors Inc. in Washington . `` PRP MD VB RB VB RB IN PRP VBP RB RB IN DT NN NN , '' VBZ NNP NNP NNP , DT JJ NN IN NNP NNP NNP NNP IN NNP .
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`` But they may pay a price 10 or 20 years in the future . '' `` CC PRP MD VB DT NN CD CC CD NNS IN DT NN . ''
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Ms. Slater reports on personal finance from The Wall Street Journal 's New York bureau . NNP NNP NNS IN JJ NN IN DT NNP NNP NNP POS NNP NNP NN .
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When it comes to investing , trying to weigh risk and reward can seem like throwing darts blindfolded : Investors do n't know the actual returns that securities will deliver , or the ups and downs that will occur along the way . WRB PRP VBZ TO VBG , VBG TO VB NN CC NN MD VB IN VBG NN VBN : NNS VBP RB VB DT JJ NNS IN NNS MD VB , CC DT NNS CC NNS WDT MD VB IN DT NN .
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Looking to the past can provide some clues . VBG TO DT NN MD VB DT NNS .
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Over several decades , for instance , investors who put up with the stock market 's gyrations earned returns far in excess of those on bonds and `` cash '' investments like Treasury bills . IN JJ NNS , IN NN , NNS WP VBP IN IN DT NN NN POS NNS VBD NNS RB IN NN IN DT IN NNS CC `` NN '' NNS IN NNP NNS .
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But while history can suggest what is reasonable to expect there 's no guarantee that the past will repeat itself . CC IN NN MD VB WP VBZ JJ TO VB EX VBZ DT NN IN DT NN MD VB PRP .
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For instance , some analysts believe bond returns and volatility have moved permanently closer to those of the stock market . IN NN , DT NNS VBP NN NNS CC NN VBP VBN RB JJR TO DT IN DT NN NN .
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And returns on cash investments may continue to exceed inflation by a wider margin than they did over the long-term past . CC NNS IN NN NNS MD VB TO VB NN IN DT JJR NN IN PRP VBD IN DT JJ NN .
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Portfolio A : Retired couple , age 65 ; $ 400,000 portfolio . NNP DT : NNP NN , NN CD : $ CD NN .
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Portfolio B : Two-income couple , age 45 ; $ 150,000 portfolio . NNP NNP : NN NN , NN CD : $ CD NN .
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A letter from Senator John Kerry chides us today for implying that he had `` flip-flopped '' on Manuel Noriega . DT NN IN NNP NNP NNP VBZ PRP NN IN VBG IN PRP VBD `` JJ '' IN NNP NNP .
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He correctly says he has been down on Noriega for some time , hence his criticism of administration mishandling of the attempted coup . PRP RB VBZ PRP VBZ VBN RB IN NNP IN DT NN , RB PRP$ NN IN NN VBG IN DT VBN NN .
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Our October 12 editorial should have been more precise . PRP$ NNP CD NN MD VB VBN RBR JJ .
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It meant to convey our hope that the Senator and other members of the congressional left are broadening their dislike of Noriega to include other notorious Central American drug runners . PRP VBD TO VB PRP$ NN IN DT NNP CC JJ NNS IN DT JJ VBN VBP VBG PRP$ NN IN NNP TO VB JJ JJ NNP JJ NN NNS .
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The Sandinistas of Nicaragua , for example , also are part of the Castro-Medellin cartel nexus . DT NNPS IN NNP , IN NN , RB VBP NN IN DT NNP NN NN .
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In his letter and on the basis of his losing vote Tuesday against U.S. aid for the Nicaraguan opposition , Senator Kerry makes clear he has not made that intellectual leap . IN PRP$ NN CC IN DT NN IN PRP$ NN NN NNP IN NNP NN IN DT JJ NN , NNP NNP VBZ JJ PRP VBZ RB VBN IN JJ NN .
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We were wrong . PRP VBD JJ .
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THROUGHOUT THE 1980s , investors have been looking for creative alternatives to traditional modes of financial planning . IN DT CD , NNS VBP VBN VBG IN JJ NNS TO JJ NNS IN JJ NN .
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Capital has been democratized , and people want in . NNP VBZ VBN VBN , CC NNS VBP RB .
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Too often , however , small investors are left with the same stale solutions that appealed to previous generations of fiduciary strategists . RB RB , RB , JJ NNS VBP VBN IN DT JJ JJ NNS WDT VBD TO JJ NNS IN JJ NNS .
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Now a startling new approach is available to building your financial portfolio without undue risk , without extensive planning and without hurting your life style one bit ! RB DT JJ JJ NN VBZ JJ TO VBG PRP$ JJ NN IN JJ NN , IN JJ NN CC IN VBG PRP$ NN NN CD NN .
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This is particularly good news for those who hate risk , who are incapable of doing extensive amounts of planning and who refuse to see their life styles hurt in any way . DT VBZ RB JJ NN IN DT WP VBP NN , WP VBP NN IN VBG JJ NNS IN NN CC WP VBP TO VB PRP$ NN NNS VBN IN DT NN .
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You know who you are . PRP VBP WP PRP VBP .
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My revolutionary system is also useful for those who have tried customary forms of growing their currency cushion . PRP$ JJ NN VBZ RB JJ IN DT WP VBP VBN JJ NNS IN VBG PRP$ NN NN .
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Like all Americans seeking chronic prosperity , I do find it necessary to plunge certain funds into conservative monetary tools , if only to assuage my father-in-law , who believes in such things . IN DT NNPS VBG JJ NN , PRP VBP VB PRP JJ TO VB JJ NNS IN JJ JJ NNS , IN RB TO VB PRP$ NN , WP VBZ IN JJ NNS .
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So throughout the decade I have maintained my share of individual retirement accounts and CDs , and tinkered with stocks , bonds and mutual funds , as well as preserving my necessary position in the residential real-estate market . RB IN DT NN PRP VBP VBN PRP$ NN IN JJ NN NNS CC NNS , CC VBN IN NNS , NNS CC JJ NNS , RB RB IN VBG PRP$ JJ NN IN DT JJ NN NN .
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Return on this fine portfolio has been modest when it has not been negative . NN IN DT JJ NN VBZ VBN JJ WRB PRP VBZ RB VBN JJ .
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Figure 1 demonstrates the performance of those businesses I 've invested in during this prosperous decade -LRB- see accompanying illustration -- WSJ Oct. 20 , 1989 -RRB- . NN CD VBZ DT NN IN DT NNS PRP VBP VBN IN IN DT JJ NN ( VB VBG NN : NNP NNP CD , CD ) .
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Oil-related properties suffered a huge decline until I divested myself of all such stocks in 1985 , at which point the industry , while not lighting up any Christmas trees , began a slow recovery . JJ NNS VBD DT JJ NN IN PRP VBD PRP IN DT JJ NNS IN CD , IN WDT VBP DT NN , IN RB VBG IN DT NNP NNS , VBD DT JJ NN .
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Likewise , mutual funds remained relatively flat until I made what was , for me , a serious investment . RB , JJ NNS VBD RB JJ IN PRP VBD WP VBD , IN PRP , DT JJ NN .
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By 1987 , these properties were in a tailspin , causing my broker at Pru-Bache to remark that she 'd `` never seen anything like it . '' IN CD , DT NNS VBD IN DT NN , VBG PRP$ NN IN NNP TO VB IN PRP MD `` RB VBN NN IN PRP . ''
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Concerned for her state of mind , I dropped them -- and the market instantly began its steady climb back to health . NNP IN PRP$ NN IN NN , PRP VBD PRP : CC DT NN RB VBD PRP$ JJ NN RB TO NN .
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Perhaps most dramatic was the performance of the metropolitan New York real-estate market , which was booming until I entered it in late 1988 , at which time it posted the first negative compound annual growth rate in years . RB RBS JJ VBD DT NN IN DT JJ NNP NNP NN NN , WDT VBD JJ IN PRP VBD PRP IN JJ CD , IN WDT NN PRP VBD DT JJ JJ NN JJ NN NN IN NNS .
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Disgusted , I cast around for a different way to plan my asset distribution , and with hardly any heavy breathing the answer struck me : I was doing it already ! VBN , PRP VBP IN IN DT JJ NN TO VB PRP$ NN NN , CC IN RB DT JJ VBG DT NN VBD PRP : PRP VBD VBG PRP RB .
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We 've all got money to spend , some of it clearly disposable since we keep disposing of it . PRP VBP DT VBN NN TO VB , DT IN PRP RB JJ IN PRP VBP VBG IN PRP .
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Bank it ? NNP PRP .
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Not really ! RB RB .
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Sock it away in long-term instruments ? VB PRP RB IN JJ NNS .
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Nonsense ! NN .
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Daily living is the best possible investment ! NNP VBG VBZ DT JJS JJ NN .
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Your priorities may be different , but here in Figure 2 is where I 've chosen to build for the future : personal space ; automotive pursuits ; children 's toys ; gardening equipment , bulbs and shrubs ; and finally , entertainment , perhaps the best investment of all . PRP$ NNS MD VB JJ , CC RB IN NN CD VBZ WRB PRP VBP VBN TO VB IN DT NN : JJ NN : JJ NNS : NNS POS NNS : NN NN , NNS CC NNS : CC RB , NN , RB DT JJS NN IN DT .
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All have paid off for me in double-digit annual growth and continue to provide significant potential . DT NN VBN IN IN PRP IN JJ JJ NN CC VB TO VB JJ NN .
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At least , according to my calculations . IN JJS , VBG TO PRP$ NNS .
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Personal space -LRB- Figure 3 -RRB- has grown 35 % annually over the course of the decade , a performance that would compare positively with an investment in , say , synthetic-leather products for the interiors of cold-weather vehicles , which my cousin got into and sort of regrets to this day . JJ NN ( NN CD ) VBZ VBN CD NN RB IN DT NN IN DT NN , DT NN WDT MD VB RB IN DT NN IN , VBP , JJ NNS IN DT NNS IN JJ NNS , WDT PRP$ NN VBD IN CC NN IN VBZ TO DT NN .
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The assortment of expensive children 's toys that I have purchased wisely at a host of discount-toy brokerage firms -LRB- Figure 4 -RRB- has increased handsomely in total asset value far beyond any personal investment except , perhaps , for my record collection , whose worth , I think it 's safe to say , is incalculable . DT NN IN JJ NNS POS NNS IN PRP VBP VBN RB IN DT NN IN JJ NN NNS ( NN CD ) VBZ VBN RB IN JJ NN NN RB IN DT JJ NN IN , RB , IN PRP$ NN NN , WP$ JJ , PRP VBP PRP VBZ JJ TO VB , VBZ JJ .
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Continued investment in my 1984 subcompact has been part of my strategy -LRB- Figure 5 -RRB- , with present annual contributions now equaling more than 60 % of the car 's original value . VBN NN IN PRP$ CD NN VBZ VBN NN IN PRP$ NN ( NN NN ) , IN JJ JJ NNS RB VBG JJR IN CD NN IN DT NN POS JJ NN .
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According to my calculations , these outlays should have brought the value of my sedan to more than $ 22,000 on the open market -LRB- Figure 6 -RRB- , where I plan to offer it shortly . VBG TO PRP$ NNS , DT NNS MD VB VBN DT NN IN PRP$ NN TO JJR IN $ CD IN DT JJ NN ( NN CD ) , WRB PRP VBP TO VB PRP RB .
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Expansion of my living space has produced an obvious need for maintenance and construction of suitable lawns , shrubs and bushes fitting to its suburban locale . NN IN PRP$ NN NN VBZ VBN DT JJ NN IN NN CC NN IN JJ NNS , NNS CC NNS JJ TO PRP$ JJ NN .
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I have thus committed sufficient personal outlay to ensure that my grounds and lodgings will never be short of greens and flowers . PRP VBP RB VBN JJ JJ NN TO VB IN PRP$ NNS CC NNS MD RB VB NN IN NNS CC NNS .
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My initial stake in this blooming enterprise has grown tenfold , according to my conservative calculations . PRP$ JJ NN IN DT VBG NN VBZ VBN RB , VBG TO PRP$ JJ NNS .
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At the same time , my share in a wide variety of entertainment pursuits has given perhaps the most dramatic demonstration of the benefits of creative personal financial planning . IN DT JJ NN , PRP$ NN IN DT JJ NN IN NN NNS VBZ VBN RB DT RBS JJ NN IN DT NNS IN JJ JJ JJ NN .
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Over the course of the decade , for instance , my return on investment in the area of poker alone -LRB- Figures 7A and 7B -RRB- has been most impressive , showing bodacious annual expansion with -- given the way my associates play -- no sign of abatement into the 1990s and beyond . IN DT NN IN DT NN , IN NN , PRP$ NN IN NN IN DT NN IN NN RB ( NNS CD CC CD ) VBZ VBN RBS JJ , VBG JJ JJ NN IN : VBN DT NN PRP$ NNS VBP : DT NN IN NN IN DT CD CC RB .
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With this personal strategy firmly in place , I look forward to years of fine life-style investments and increasing widespread leverage . IN DT JJ NN RB IN NN , PRP VBP RB TO NNS IN JJ NN NNS CC VBG JJ NN .
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My kids ' college education looms as perhaps the greatest future opportunity for spending , although I 'll probably have to cash in their toy portfolio to take advantage of it . PRP$ NNS POS NN NN VBZ IN RB DT JJS NN NN IN NN , IN PRP MD RB VB TO VB IN PRP$ NN NN TO VB NN IN PRP .
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But with every step I take , I 'm building wealth . CC IN DT NN PRP VBP , PRP VBP VBG NN .
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You can , too , if you , like me , refuse to bite the bullet . PRP MD , RB , IN PRP , IN PRP , VB TO VB DT NN .
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So go out there and eat that debt . RB VB IN EX CC VB DT NN .
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You 're right there in the mainstream of American business , building value on the back of insupportable expenditures . PRP VBP NN RB IN DT NN IN JJ NN , NN NN IN DT RB IN JJ NNS .
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Henry Kravis , watch out ! NNP NNP , VB RB .
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Mr. Schwartz is a business executive and writer in New York . NNP NNP VBZ DT NN NN CC NN IN NNP NNP .
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WHEN JAMES SCHWARTZ was just a lad his father gave him a piece of career advice . WRB NNP NNP VBD RB DT NN PRP$ NN VBD PRP DT NN IN NN NN .
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`` He told me to choose an area where just by being mediocre I could be great , '' recalls Mr. Schwartz , now 40 . `` PRP VBD PRP TO VB DT NN WRB RB IN VBG JJ PRP MD VB JJ , '' VBZ NNP NNP , RB CD .
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He tried management consulting , traded in turquoise for a while , and even managed professional wrestlers . PRP VBD NN NN , VBN IN JJ IN DT NN , CC RB VBD JJ NNS .
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Now he has settled into a career that fits the bill -- financial planning . RB PRP VBZ VBN IN DT NN WDT VBZ DT NN : JJ NN .
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It should be noted that Mr. Schwartz , who operates out of Englewood , Colo. , is a puckish sort who likes to give his colleagues the needle . PRP MD VB VBN IN NNP NNP , WP VBZ IN IN NNP , NNP , VBZ DT JJ NN WP VBZ TO VB PRP$ NNS DT NN .
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But in this case the needle has a very sharp point . CC IN DT NN DT NN VBZ DT RB JJ NN .
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Though it 's probably safe to assume that the majority of financial planners are honest and even reasonably competent , the fact remains that , as one wag puts it , `` anybody who can fog a mirror '' can call himself a financial planner . IN PRP VBZ RB JJ TO VB IN DT NN IN JJ NNS VBP JJ CC RB RB JJ , DT NN VBZ IN , IN CD NN VBZ PRP , `` NN WP MD VB DT NN '' MD VB PRP DT JJ NN .
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Planners now influence the investment of several hundred billion dollars , but in effect they operate in the dark . NNS JJ NN DT NN IN JJ CD CD NNS , CC IN NN PRP VBP IN DT NN .
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There is no effective regulation of planners , no accepted standard for admission into their ranks -- a dog got into one trade group -- no way to assess their performance , no way even to know how many of them there are -LRB- estimates range from 60,000 to 450,000 -RRB- . EX VBZ DT JJ NN IN NNS , DT VBN JJ IN NN IN PRP$ NNS : DT NN VBD IN CD NN NN : DT NN TO VB PRP$ NN , DT NN RB TO VB WRB NN IN PRP EX VBP ( NNS VBP IN CD TO CD ) .
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All anyone need do is hang up a shingle and start planning . DT NN NN VBP VBZ VB IN DT NN CC VB NN .
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So it should come as no shock that the profession , if that 's what it is , has attracted a lot of people whose principal talents seem to be frittering away or flat-out stealing their clients ' money . RB PRP MD VB IN DT NN IN DT NN , IN DT VBZ WP PRP VBZ , VBZ VBN DT NN IN NNS WP$ JJ NNS VBP TO VB VBG RB CC JJ VBG PRP$ NNS POS NN .
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Alarmed , state and federal authorities are trying to devise ways to certify and regulate planners . JJ , NN CC JJ NNS VBP VBG TO VB NNS TO VB CC VB NNS .
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Industry groups and reputable planners who are members of them want comprehensive standards , too ; they 're tired of seeing practitioners depicted collectively in the business press as dumber than chimpanzees and greedier than a herd of swine . NN NNS CC JJ NNS WP VBP NNS IN PRP VBP JJ NNS , RB : PRP VBP VBN IN VBG NNS VBN RB IN DT NN NN IN JJR IN NNS CC JJR IN DT NN IN NNS .
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But reform has n't taken hold yet . CC NN VBZ RB VBN VB RB .
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`` The industry is still pretty much in its Wild West days , '' says Scott Stapf , director of investor education for the North American Securities Administrators Association . `` DT NN VBZ RB RB JJ IN PRP$ NNP NNP NNS , '' VBZ NNP NNP , NN IN NN NN IN DT NNP NNP NNPS NNP NNP .
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An admittedly limited survey by NASAA , whose members are state securities-law regulators , found that between 1986 and 1988 `` fraud and abuse '' by financial planners cost 22,000 investors $ 400 million . DT RB JJ NN IN NNP , WP$ NNS VBP NN NN NNS , VBD IN IN CD CC CD `` NN CC NN '' IN JJ NNS VBP CD NNS $ CD CD .
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The rogues ' gallery of planners involved includes some convicted felons , a compulsive gambler or two , various businessmen who had planned their own previous ventures right into bankruptcy , and one man who scammed his wife 's grandmother . DT NNS POS NN IN NNS VBN VBZ DT VBN NNS , DT JJ NN CC CD , JJ NNS WP VBD VBN PRP$ JJ JJ NNS NN IN NN , CC CD NN WP VBD PRP$ NN POS NN .
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What 's more , the losses they and the others caused `` are just what we are stumbling over , '' says Mr. Stapf , adding that the majority of misdeeds probably go undetected . WP VBZ JJR , DT NNS PRP CC DT NNS VBN `` VBP RB WP PRP VBP VBG IN , '' VBZ NNP NNP , VBG IN DT NN IN NNS RB VBP JJ .
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So do just about all the losses that could be attributed to the sheer incompetence of unqualified planners . RB VBP RB IN PDT DT NNS WDT MD VB VBN TO DT JJ NN IN JJ NNS .
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Nobody can estimate the toll , but John Gargan , a Tampa , Fla. , planner and head of one trade group , the International Association of Registered Financial Planners , thinks the danger to investors from incompetence is `` humongous , '' far greater than that from crookery . NN MD VB DT NN , CC NNP NNP , DT NNP , NNP , NN CC NN IN CD NN NN , DT NNP NNP IN VBN NNP NNS , VBZ DT NN TO NNS IN NN VBZ `` JJ , '' RB JJR IN DT IN NN .
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His group , like others , wants minimum standards applied to all who call themselves financial planners . PRP$ NN , IN NNS , VBZ JJ NNS VBN TO DT WP VBP PRP JJ NNS .
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Surveying all this , some people now think the best planner might be no planner at all . VBG PDT DT , DT NNS RB VBP DT JJS NN MD VB DT NN IN DT .
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For most investors `` the benefits just are n't worth the risks , '' says Barbara Roper , who follows financial-planning issues for the Consumer Federation of America , a consumer-advocacy organization based in Washington . IN RBS NNS `` DT NNS RB VBP RB JJ DT NNS , '' VBZ NNP NNP , WP VBZ JJ NNS IN DT NNP NNP IN NNP , DT JJ NN VBN IN NNP .
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She concedes that such a position is `` unfair '' to the thousands of conscientious and qualified people plying the trade , but as a consumer advocate she feels impelled to take it . PRP VBZ IN JJ DT NN VBZ `` JJ '' TO DT NNS IN JJ CC VBN NNS VBG DT NN , CC IN DT NN NN PRP VBZ VBN TO VB PRP .
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She says her group used to give tips on selecting planners -- check educational and experience credentials , consult regulators and Better Business Bureaus -- but found that even some people who took these steps `` were still getting ripped off . '' PRP VBZ PRP$ NN VBN TO VB NNS IN VBG NNS : NN JJ CC NN NNS , VB NNS CC NNP NNP NNP : CC VBD IN RB DT NNS WP VBD DT NNS `` VBD RB VBG VBN IN . ''
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The bad news , however , has n't been bad enough to kill the growing demand for financial planning . DT JJ NN , RB , VBZ RB VBN JJ RB TO VB DT VBG NN IN JJ NN .
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The Tax Reform Act of 1986 , which eliminated many tax shelters peddled by planners , and the stock market crash the next year did cause a sharp slump in such demand , and many planners had to make an unplanned exit from the business . DT NNP NNP NNP IN CD , WDT VBD JJ NN NNS VBN IN NNS , CC DT NN NN NN DT JJ NN VBD VBG DT JJ NN IN JJ NN , CC JJ NNS VBD TO VB DT JJ NN IN DT NN .
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But membership in the International Association of Financial Planners -LRB- IAFP -RRB- , the industry 's biggest trade group , is still nearly triple what it was in 1980 , and it 's believed that the ranks of planners who do n't belong to any group have soared as well . CC NN IN DT NNP NNP IN NNP NNS ( NNP ) , DT NN POS JJS NN NN , VBZ RB RB JJ WP PRP VBD IN CD , CC PRP VBZ VBD IN DT NNS IN NNS WP VBP RB VB TO DT NN VBP VBN IN RB .
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An estimated 10 million Americans are now using financial planners , and the pool of capital they influence is enormous . DT VBN CD CD NNPS VBP RB VBG JJ NNS , CC DT NN IN NN PRP VBP VBZ JJ .
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A survey of 54,000 of them conducted by the IAFP in April showed that these practitioners alone had controlled or guided the investment of $ 154 billion of their clients ' money in the previous 12 months . DT NN IN CD IN PRP VBN IN DT NNP IN NNP VBD IN DT NNS RB VBD VBN CC VBD DT NN IN $ CD CD IN PRP$ NNS POS NN IN DT JJ CD NNS .
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The sheer number of planners makes the business extremely difficult , if not impossible , to regulate . DT JJ NN IN NNS VBZ DT NN RB JJ , IN RB JJ , TO VB .
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Even the minority of them who must register with the Securities and Exchange Commission as `` investment advisers '' -- people who are in the business of counseling others on the buying and selling of securities specifically -- have been enough to swamp the agency 's capacity . RB DT NN IN PRP WP MD VB IN DT NNP CC NNP NNP IN `` NN NNS '' : NNS WP VBP IN DT NN IN NN NNS IN DT VBG CC VBG IN NNS RB : VBP VBN RB TO VB DT NN POS NN .
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The SEC has only about 200 staffers assigned to keep tabs on investment advisers -- about the same as in 1980 -- even though the number of advisers has tripled to about 15,000 over the past decade . DT NNP VBZ RB IN CD NNS VBN TO VB NNS IN NN NNS : IN DT JJ IN IN CD : RB IN DT NN IN NNS VBZ VBN TO IN CD IN DT JJ NN .
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Currently , a registered investment adviser can expect an SEC audit only once every 12 years . RB , DT VBN NN NN MD VB DT NNP NN RB RB DT CD NNS .
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A lot of bad things can happen in 12 years . DT NN IN JJ NNS MD VB IN CD NNS .
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`` It does n't take a rocket scientist to figure out our problem , '' says Kathryn McGrath , director of the SEC 's division of investment management . `` PRP VBZ RB VB DT NN NN TO VB IN PRP$ NN , '' VBZ NNP NNP , NN IN DT NNP POS NN IN NN NN .
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So the SEC has proposed to Congress that much of the job of oversight be turned over to an industry-funded , self-regulatory organization patterned on the National Association of Securities Dealers , which operates in the brokerage business . RB DT NNP VBZ VBN TO NNP IN NN IN DT NN IN NN VB VBN IN TO DT JJ , JJ NN VBN IN DT NNP NNP IN NNPS NNS , WDT VBZ IN DT NN NN .
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Such an organization could , among other things , set minimum standards for competence , ethics and finances and punish those investment advisers who broke the rules . JJ DT NN MD , IN JJ NNS , VBN JJ NNS IN NN , NNS CC NNS CC VB DT NN NNS WP VBD DT NNS .
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The proposal has set off a lively debate within an industry that was far from united to begin with . DT NN VBZ VBN IN DT JJ NN IN DT NN WDT VBD RB IN VBN TO VB RB .
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Mr. Schwartz , the puckish planner from Englewood , Colo. , says that allowing the business to police itself would be `` like putting Dracula in charge of the blood bank . '' NNP NNP , DT JJ NN IN NNP , NNP , VBZ IN VBG DT NN TO VB PRP MD VB `` IN VBG NNP IN NN IN DT NN NN . ''
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Mr. Gargan , the Tampa planner who heads one trade group , favors simply assessing the industry and giving the money to the SEC to hire more staff . NNP NNP , DT NNP NN WP VBZ CD NN NN , VBZ RB VBG DT NN CC VBG DT NN TO DT NNP TO VB JJR NN .
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-LRB- Mr. Gargan 's views are not greeted with wild enthusiasm over at the IAFP , the major industry organization . ( NNP NNP POS NNS VBP RB VBN IN JJ NN IN IN DT NNP , DT JJ NN NN .
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When the IAFP recently assembled other industry groups to discuss common standards that might be applied to planners , Mr. Gargan 's group was excluded . WRB DT NNP RB VBD JJ NN NNS TO VB JJ NNS WDT MD VB VBN TO NNS , NNP NNP POS NN VBD VBN .
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That may be because Mr. Gargan , smarting at what he considered slurs on his membership standards made by the rival group , enrolled his dog , Beauregard , as a member of the IAFP . DT MD VB IN NNP NNP , VBG IN WP PRP VBD NNS IN PRP$ NN NNS VBN IN DT JJ NN , VBD PRP$ NN , NNP , IN DT NN IN DT NNP .
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Then he sent the pooch 's picture with the certificate of membership -- it was made out to `` Boris ` Bo ' Regaard '' -- to every newspaper he could think of . -RRB- RB PRP VBD DT NN POS NN IN DT NN IN NN : PRP VBD VBN IN TO `` NNP `` NNP '' NNP '' : TO DT NN PRP MD VB IN . )
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The states have their own ideas about regulation and certification . DT NNS VBP PRP$ JJ NNS IN NN CC NN .
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NASAA , the organization of state securities regulators , is pushing for a model regulatory statute already adopted in eight states . NNP , DT NN IN NN NNS NNS , VBZ VBG IN DT NN JJ NN RB VBD IN CD NNS .
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It requires financial planners to register with states , pass competency tests and reveal to customers any conflicts of interest . PRP VBZ JJ NNS TO VB IN NNS , VB NN NNS CC VB TO NNS DT NNS IN NN .
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The most common conflict involves compensation . DT RBS JJ NN VBZ NN .
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NASAA estimates that nearly 90 % of planners receive some or all of their income from sales commissions on securities , insurance and other financial products they recommend . NNP NNS IN RB CD NN IN NNS VBP DT CC DT IN PRP$ NN IN NNS NNS IN NNS , NN CC JJ JJ NNS PRP VBP .
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The issue : Is the planner putting his clients into the best investments , or the ones that garner the biggest commissions ? DT NN : VBZ DT NN VBG PRP$ NNS IN DT JJS NNS , CC DT NNS WDT VBP DT JJS NNS .
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In 1986 the New York attorney general 's office got an order from a state court in Albany shutting down First Meridian Corp. , an Albany financial-planning firm that had invested $ 55 million on behalf of nearly 1,000 investors . IN CD DT NNP NNP NN NN POS NN VBD DT NN IN DT NN NN IN NNP VBG RB NNP NNP NNP , DT NNP JJ NN WDT VBD VBN $ NN CD IN NN IN RB CD NNS .
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In its notice of action , the attorney general said the company had promised to put clients into `` balanced '' investment portfolios ; instead , the attorney general alleged , the company consistently shoved unwary customers into high-risk investments in paintings , coins and Florida condos . IN PRP$ NN IN NN , DT NN NN VBD DT NN VBD VBN TO VB NNS IN `` JJ '' NN NNS : RB , DT NN JJ VBN , DT NN RB VBD JJ NNS IN JJ NNS IN NNS , NNS CC NNP NNS .
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Those investments paid big commissions to First Meridian , payments investors were never told about , the attorney general alleged . DT NNS VBD JJ NNS TO NNP NNP , NNS NNS VBD RB VBN IN , DT NN JJ VBN .
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Investors were further assured that only those with a minimun net worth would be accepted . NNS VBD RB VBN IN RB DT IN DT NN JJ NN MD VB VBN .
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In practice , the attorney general alleged in an affidavit , if an investor had access to cash `` the chances of being turned down by First Meridian were about as probable as being rejected by the Book-of-the-Month Club . '' IN NN , DT NN JJ VBN IN DT NN , IN DT NN VBD NN TO VB `` DT NNS IN VBG VBN RB IN NNP NNP VBD IN RB JJ IN VBG VBN IN DT NNP NNP . ''
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And , the attorney general added , First Meridian 's president , Roger V. Sala , portrayed himself as a `` financial expert '' when his qualifications largely consisted of a high-school diploma , work as a real-estate and insurance salesman , and a stint as supervisor at a highway toll booth . CC , DT NN NN VBD , NNP NNP POS NN , NNP NNP NNP , VBD PRP IN DT `` JJ NN '' WRB PRP$ NNS RB VBD IN DT NN NN , NN IN DT NN CC NN NN , CC DT NN IN NN IN DT NN NN NN .
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First Meridian and its officials are currently under investigation for possible criminal wrongdoing , according to a spokeswoman for the attorney general . NNP NNP CC PRP$ NNS VBP RB IN NN IN JJ JJ NN , VBG TO DT NN IN DT NN JJ .
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Harry Manion , Mr. Sala 's attorney , says his client denies any wrongdoing and adds that the attorney general 's contentions about First Meridian 's business practices are incorrect . NNP NNP , NNP NNP POS NN , VBZ PRP$ NN VBZ DT NN CC VBZ IN DT NN NN POS NNS IN NNP NNP POS NN NNS VBP JJ .
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As for Mr. Sala 's qualifications , `` the snooty attorneys for the state of New York decided Mr. Sala was n't qualified because he did n't have a Harvard degree , '' says Mr. Manion . IN IN NNP NNP POS NNS , `` DT JJ NNS IN DT NN IN NNP NNP VBD NNP NNP VBD RB VBN IN PRP VBD RB VB DT NNP NN , '' VBZ NNP NNP .
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Civil suits against planners by clients seeking recovery of funds are increasingly common . JJ NNS IN NNS IN NNS VBG NN IN NNS VBP RB JJ .
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Two such actions , both filed earlier this year in Georgia state court in Atlanta , could be particularly embarrassing to the industry : both name J. Chandler Peterson , an Atlanta financial planner who is a founder and past chairman of the IAFP , as defendant . CD JJ NNS , DT VBN RBR DT NN IN NNP NN NN IN NNP , MD VB RB JJ TO DT NN : DT NN NNP NNP NNP , DT NNP JJ NN WP VBZ DT NN CC JJ NN IN DT NNP , IN NN .
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One suit , filed by more than three dozen investors , charges that Mr. Peterson misused much of the $ 9.7 million put into a limited partnership that he operated and promoted , spending some of it to pay his own legal bills and to invest in other companies in which he had an interest . CD NN , VBN IN JJR IN CD NN NNS , VBZ IN NNP NNP VBD NN IN DT $ CD CD VB IN DT JJ NN IN PRP VBD CC VBN , VBG DT IN PRP TO VB PRP$ JJ JJ NNS CC TO VB IN JJ NNS IN WDT PRP VBD DT NN .
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Those companies , in turn , paid Mr. Peterson commissions and fees , the suit alleges . DT NNS , IN NN , VBN NNP NNP VBZ CC NNS , DT NN NNS .
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The other suit was filed by two men in a dispute over $ 100,000 investments each says he made with Mr. Peterson as part of an effort to purchase the Bank of Scottsdale in Scottsdale , Ariz . DT JJ NN VBD VBN IN CD NNS IN DT NN IN $ CD NNS DT VBZ PRP VBD IN NNP NNP IN NN IN DT NN TO VB DT NNP IN NNP IN NNP , NNP .
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One plaintiff , a doctor , testified in an affidavit that he also gave Mr. Peterson $ 50,000 to join a sort of investment club which essentially gave the physician `` the privilege of making additional investments '' with Mr. Peterson . CD NN , DT NN , VBD IN DT NN IN PRP RB VBD NNP NNP $ CD TO VB DT NN IN NN NN WDT RB VBD DT NN `` DT NN IN VBG JJ NNS '' IN NNP NNP .
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In affidavits , each plaintiff claims Mr. Peterson promised the bank purchase would be completed by the end of 1988 or the money returned . IN NNS , DT NN NNS NNP NNP VBD DT NN NN MD VB VBN IN DT NN IN CD CC DT NN VBD .
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Mr. Peterson took the plaintiffs ' and other investors ' money to a meeting of the bank 's directors . NNP NNP VBD DT NNS POS CC JJ NNS POS NN TO DT NN IN DT NN POS NNS .
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Wearing a business suit and western-style hat and boots , he opened up his briefcase and dumped $ 1 million in cash on a table in front of the directors , says Myron Diebel , the bank 's president . VBG DT NN NN CC JJ NN CC NNS , PRP VBD IN PRP$ NN CC VBD $ CD CD IN NN IN DT NN IN NN IN DT NNS , VBZ NNP NNP , DT NN POS NN .
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`` He said he wanted to show the color of his money , '' recalls Mr. Diebel . `` PRP VBD PRP VBD TO VB DT NN IN PRP$ NN , '' VBZ NNP NNP .
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Bank officials , however , showed him the door , and the sale never came off . NN NNS , RB , VBD PRP DT NN , CC DT NN RB VBD RB .
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According to the suit , Mr. Peterson has yet to return the plaintiffs ' investment . VBG TO DT NN , NNP NNP VBZ RB TO VB DT NNS POS NN .
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They want it back . PRP VBP PRP RB .
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Mr. Peterson declines to comment on specific allegations in the two suits , saying he prefers to save such responses for court . NNP NNP VBZ TO VB IN JJ NNS IN DT CD NNS , VBG PRP VBZ TO VB JJ NNS IN NN .
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But he does say that all of his activities have been `` entirely proper . '' CC PRP VBZ VBP IN DT IN PRP$ NNS VBP VBN `` RB JJ . ''
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On the suit by the limited partners , he says he is considering a defamation suit against the plaintiffs . IN DT NN IN DT JJ NNS , PRP VBZ PRP VBZ VBG DT NN NN IN DT NNS .
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The suit , he adds , `` is almost in the nature of a vendetta by a handful of disgruntled people . '' DT NN , PRP VBZ , `` VBZ RB IN DT NN IN DT NN IN DT NN IN JJ NNS . ''
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Rearding the suit over the bank bid , Mr. Peterson says it is filled with `` inflammatory language and half truths . '' VBG DT NN IN DT NN NN , NNP NNP VBZ PRP VBZ VBN IN `` JJ NN CC NN NNS . ''
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He declines to go into specifics . PRP VBZ TO VB IN NNS .
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Mr. Peterson says the suits against him are less a measure of his work than they are a `` sign of the times '' in which people generally are more prone to sue . NNP NNP VBZ DT NNS IN PRP VBP JJR DT NN IN PRP$ NN IN PRP VBP DT `` NN IN DT NNS '' IN WDT NNS RB VBP RBR JJ TO VB .
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`` I do n't know anybody in the industry who has n't experienced litigation , '' he says . `` PRP VBP RB VB NN IN DT NN WP VBZ RB VBN NN , '' PRP VBZ .
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Mr. Peterson also says he does n't consider himself a financial planner anymore . NNP NNP RB VBZ PRP VBZ RB VB PRP DT JJ NN RB .
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He now calls himself an `` investment banker . '' PRP RB VBZ PRP DT `` NN NN . ''
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In many scams or alleged scams involving planners , it 's plain that only a modicum of common sense on the part of the investors would have kept them out of harm 's way . IN JJ NNS CC VBN NNS VBG NNS , PRP VBZ JJ IN RB DT NN IN JJ NN IN DT NN IN DT NNS MD VB VBN PRP IN IN NN POS NN .
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Using it , would n't a proessional hesitate to pay tens of thousands of dollars just for a chance to invest witha planner ? VBG PRP , MD RB DT NN VB TO VB NNS IN NNS IN NNS RB IN DT NN TO VB NN NN .
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Other cases go to show that an old saw still applies : If it sounds too good to be true , it probably is . JJ NNS VBP TO VB IN DT JJ VBD RB VBZ : IN PRP VBZ RB JJ TO VB JJ , PRP RB VBZ .
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Certificates of deposit do n't pay 23 % a year , for example , but that did n't give pause to clients of one Alabama planner . NNS IN NN VBP RB VB CD NN DT NN , IN NN , CC DT VBD RB VB NN TO NNS IN CD NNP NN .
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Now they 're losers and he 's in jail in Mobile County . RB PRP VBP NNS CC PRP VBZ IN NN IN NNP NNP .
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CDs yielding 40 % are even more implausible -- especially when the issuing `` bank '' in the Marshall Islands is merely a mail drop watched over by a local gas-station operator -- but investors fell for that one too . NNS VBG CD NN VBP RB RBR JJ : RB WRB DT VBG `` NN '' IN DT NNP NNPS VBZ RB DT NN NN VBD IN IN DT JJ JJ NN : CC NNS VBD IN DT CD RB .
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And the Colorado planner who promised to make some of his clients millionaires on investments of as litle as $ 100 ? CC DT NNP NN WP VBD TO VB DT IN PRP$ NNS NNS IN NNS IN RB JJ IN $ CD .
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Never mind . RB NN .
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You already know the answer . PRP RB VBP DT NN .
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Mr. Emshwiller is a staff reporter in The Wall Street Journal 's Los Angeles bureau . NNP NNP VBZ DT NN NN IN DT NNP NNP NNP POS NNP NNP NN .
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At the ritzy Fashion Island Shopping Center , the tanned and elegant ladies of this wealthy Southern California beach community disembark from their Mercedes-Benzes and BMWs for another day of exercising their credit cards . IN DT JJ NNP NNP NNP NNP , DT JJ CC JJ NNS IN DT JJ NNP NNP NN NN VBP IN PRP$ NNPS CC NNS IN DT NN IN VBG PRP$ NN NNS .
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They root among the designer offerings at Neiman-Marcus and Bullocks Wilshire . PRP VBP IN DT NN NNS IN NNP CC NNP NNP .
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They stroll through the marble-encased corridors of the Atrium Court . PRP VBP IN DT JJ NNS IN DT NNP NNP .
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They graze at the Farmers Market , a combination gourmet food court and grocery store , while a pianist accompanies the noon fashion show with a selection of dreamy melodies . PRP VBP IN DT NNP NNP , DT NN NN NN NN CC NN NN , IN DT NN VBZ DT NN NN NN IN DT NN IN JJ NNS .
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`` The beautiful look of wool , '' croons the show 's narrator , `` slightly Victorian in its influence ... . '' `` DT JJ NN IN NN , '' VBZ DT NN POS NN , `` RB JJ IN PRP$ NN : . ''
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Meanwhile , in the squat office buildings that ring Fashion Island , the odds are good that someone is getting fleeced . RB , IN DT JJ NN NNS WDT VBP NNP NNP , DT NNS VBP JJ DT NN VBZ VBG VBN .
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Law-enforcement authorities say that at any given time , a host of fraudulent telemarketing operations mingle with the many legitimate businesses here . JJ NNS VBP IN IN DT VBN NN , DT NN IN JJ NN NNS VBP IN DT JJ JJ NNS RB .
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`` They seem to like these industrial parks , '' says Kacy McClelland , a postal inspector who specializes in mail fraud . `` PRP VBP TO IN DT JJ NNS , '' VBZ NNP NNP , DT JJ NN WP VBZ IN NN NN .
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`` We call them fraud farms . '' `` PRP VBP PRP NN NNS . ''
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Welcome to that welter of contradictions known as Newport Beach . NNP TO DT NN IN NNS VBN IN NNP NNP .
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This city of more than 70,000 is known for sunshine , yachts and rich residents . DT NN IN JJR IN CD VBZ VBN IN NN , NNS CC JJ NNS .
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It is also known as the fraud capital of the U.S. , dubbed by investigators and the media as the `` Cote de Fraud '' . PRP VBZ RB VBN IN DT NN NN IN DT NNP , VBN IN NNS CC DT NNS IN DT `` NNP FW NNP '' .
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How does a community famous for its high living end up as a haven for low-lifes ? WRB VBZ DT NN JJ IN PRP$ JJ VBG NN IN IN DT NN IN NNS .
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Clearly , the existence of the former lures the latter . RB , DT NN IN DT JJ NNS DT NN .
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The places renowned for breeding bunco , like the Miami neighborhood known as the `` Maggot Mile '' and Las Vegas 's flashy strip of casinos , invariably offer fast cars , high rollers , glamorous women and lots of sunshine . DT NNS JJ IN VBG NN , IN DT NNP NN VBN IN DT `` NNP NNP '' CC NNP NNP POS JJ NN IN NNS , RB VBP JJ NNS , JJ NNS , JJ NNS CC NNS IN NN .
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You do n't hear much about unusual concentrations of fraud in Green Bay or Buffalo . PRP VBP RB VB JJ IN JJ NNS IN NN IN NNP NNP CC NNP .
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Con men hate snow . JJ NNS VBP NN .
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Newport Beach fits the scam artists ' specifications perfectly . NNP NNP VBZ DT NN NNS POS NNS RB .
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What more could a con man in search of the easy life ask for ? WP JJR MD DT JJ NN IN NN IN DT JJ NN VB RB .
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Nothing seems hard here . NN VBZ JJ RB .
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The breezes are soft , the waves lap gently and the palm trees sway lazily . DT NNS VBP JJ , DT NNS VBP RB CC DT NN NNS VBP RB .
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Nightlife is plentiful . NN VBZ JJ .
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Moreover , ostentation is appreciated . RB , NN VBZ VBN .
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The median price of homes is $ 547,000 ; more than 9,000 vessels fill what the chamber of commerce calls the nation 's largest pleasure-boat harbor . DT JJ NN IN NNS VBZ $ CD : JJR IN CD NNS VBP WP DT NN IN NN VBZ DT NN POS JJS NN NN .
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`` Blondes , cocaine and Corvettes , '' mutters Mr. McClelland . `` NNP , NN CC NNS , '' NNS NNP NNP .
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`` That 's what they 're after . '' `` DT VBZ WP PRP VBP IN . ''
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The rich image of Newport Beach also helps lend the con artists ' operation an air of respectability . DT JJ NN IN NNP NNP RB VBZ VB DT JJ NNS POS NN DT NN IN NN .
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`` One reason they use Newport Beach is that it sounds swankier than most addresses , '' says David Katz , a U.S. attorney who , until recently , headed a multi-agency Southern California fraud task force . `` CD NN PRP VBP NNP NNP VBZ IN PRP VBZ JJR IN RBS NNS , '' VBZ NNP NNP , DT NNP NN WP , IN RB , VBD DT JJ NNP NNP NN NN NN .
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`` Newport Beach is known in Rhode Island for having a lot of rich people . '' `` NNP NNP VBZ VBN IN NNP NNP IN VBG DT NN IN JJ NNS . ''
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No wonder all kinds of big-time scams have flourished here , from phony tax-sheltered Bible sales to crooked car dealers to bogus penny-stock traders . DT NN DT NNS IN JJ NNS VBP VBN RB , IN JJ JJ NNP NNS TO JJ NN NNS TO JJ JJ NNS .
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But above all , this is the national headquarters for boiler-room operators , those slick-talking snake-oil salesmen who use the telephone to extract money from the gullible and the greedy and then vanish . CC IN DT , DT VBZ DT JJ NN IN NN NNS , DT JJ JJ NNS WP VBP DT NN TO VB NN IN DT JJ CC DT JJ CC RB VBP .
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Because only a fraction of them are ever prosecuted , nobody really knows how much money bogus telemarketing operators really harvest . IN RB DT NN IN PRP VBP RB VBN , NN RB VBZ WRB JJ NN JJ NN NNS RB VBP .
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`` I 've heard that there is $ 40 billion taken in nationwide by boiler rooms every year , '' Mr. McClelland says . `` PRP VBP VBN IN EX VBZ $ CD CD VBN IN JJ IN NN NNS DT NN , '' NNP NNP VBZ .
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`` If that 's true , Orange County has to be at least 10 % of that . '' `` IN DT VBZ JJ , NNP NNP VBZ TO VB IN JJS CD NN IN DT . ''
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And most of the truly big scams in Orange County seem to originate in Newport Beach or one of the other well-heeled communities that surround this sliver-like city that hooks around a point of land on the California coast south of Los Angeles . CC RBS IN DT RB JJ NNS IN NNP NNP VB TO VB IN NNP NNP CC CD IN DT JJ JJ NNS WDT VBP DT JJ NN IN NNS IN DT NN IN NN IN DT NNP NN RB IN NNP NNP .
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In fact , sophisticated big-bucks boiler-room scams are known generically among law-enforcement types as `` Newport Beach '' operations . IN NN , JJ JJ NN NNS VBP VBN RB IN NN NNS IN `` NNP NNP '' NNS .
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That contrasts with the penny-ante sales of things such as pen-and-pencil sets and office supplies that are known as `` Hollywood '' scams . DT NNS IN DT JJ NNS IN NNS JJ IN JJ NNS CC NN NNS WDT VBP VBN IN `` NNP '' NNS .
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Newport Beach telemarketers concentrate on precious metals and oil-leasing deals that typically cost thousands of dollars a shot . NNP NNP NNS VBP IN JJ NNS CC NN NNS IN RB VBP NNS IN NNS DT NN .
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The investors range from elderly widows to affluent professionals . DT NNS VBP IN JJ NNS TO JJ NNS .
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In one ingenious recent example of a Newport Beach boiler room , prospective investors in Capital Trust Inc. were allegedly told that their investment in precious metals was insured against losses `` caused by employees due to dishonesty , destruction or disappearance , '' according to an indictment handed up by a federal grand jury in Los Angeles last month . IN CD JJ JJ NN IN DT NNP NNP NN NN , JJ NNS IN NNP NNP NNP VBD RB VBN IN PRP$ NN IN JJ NNS VBD VBN IN NNS `` VBN IN NNS JJ TO NN , NN CC NN , '' VBG TO DT NN VBD IN IN DT JJ JJ NN IN NNP NNP JJ NN .
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Thus falsely reassured , investors sent $ 11.4 million to the Newport Beach company , most of which was diverted to unauthorized uses , the indictment charges . RB RB VBN , NNS VBD $ CD CD TO DT NNP NNP NN , RBS IN WDT VBD VBN TO JJ NNS , DT NN NNS .
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Douglas Jones , an attorney representing Richard O. Kelly Sr. , the chairman and president of Capital Trust , says his client denies that there was any attempt to defraud investors . NNP NNP , DT NN VBG NNP NNP NNP NNP , DT NN CC NN IN NNP NNP , VBZ PRP$ NN VBZ IN EX VBD DT NN TO VB NNS .
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`` There were some business deals that went bad , '' Mr. Jones says , `` but no intent to defraud . '' `` EX VBD DT NN NNS WDT VBD JJ , '' NNP NNP VBZ , `` CC DT NN TO VB . ''
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Newport Beach operations differ from the Hollywood boiler rooms in style as well as in dollars . NNP NNP NNS VBP IN DT NNP NN NNS IN NN RB RB IN IN NNS .
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Traditionally , boiler rooms operate on the cheap , since few , if any , customers ever visit their offices . RB , NN NNS VBP IN DT NN , IN JJ , IN DT , NNS RB VBP PRP$ NNS .
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Indeed , the name derives from the tendency among telemarketing scammers to rent cheap basement space , near the boiler room . RB , DT NN VBZ IN DT NN IN NN NNS TO VB JJ NN NN , IN DT NN NN .
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But , says Mr. Katz , the U.S. attorney , `` the interesting thing about Newport Beach operations is that they give themselves the indulgence of beautiful offices , with plush furnishings . CC , VBZ NNP NNP , DT NNP NN , `` DT JJ NN IN NNP NNP NNS VBZ IN PRP VBP PRP DT NN IN JJ NNS , IN JJ NNS .
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When we go there , it 's quite different from these Hollywood places where the sandwiches are spread out on the table and the people are picking their noses . '' WRB PRP VBP EX , PRP VBZ RB JJ IN DT NNP NNS WRB DT NNS VBP NN IN IN DT NN CC DT NNS VBP VBG PRP$ NNS . ''
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The Newport Beach operators also tend to indulge themselves privately . DT NNP NNP NNS RB VBP TO VB PRP RB .
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Investigators cite the case of Matthew Valentine , who is currently serving a six-year sentence at Lompoc Federal Prison for his role in Intech Investment Corp. , which promised investors returns of as much as 625 % on precious metals . NNS VBP DT NN IN NNP NNP , WP VBZ RB VBG DT JJ NN IN NNP NNP NNP IN PRP$ NN IN NNP NNP NNP , WDT VBD NNS NNS IN RB JJ IN CD NN IN JJ NNS .
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Mr. Valentine , who pleaded guilty to five counts of fraud in federal court in Los Angeles , drove a leased Mercedes and lived in an expensive home on Lido Isle , an island in Newport 's harbor , according to investigators . NNP NNP , WP VBD JJ TO CD NNS IN NN IN JJ NN IN NNP NNP , VBD DT VBN NNP CC VBD IN DT JJ NN IN NNP NNP , DT NN IN NNP POS NN , VBG TO NNS .
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With the $ 3 million received from investors , he took frequent junkets with friends to exotic locales and leased an expensive BMW for his girlfriend , whom he met at the shop where he got his custom-tailored suits . IN DT $ CD CD VBD IN NNS , PRP VBD JJ NNS IN NNS TO JJ NNS CC VBD DT JJ NNP IN PRP$ NN , WP PRP VBD IN DT NN WRB PRP VBD PRP$ JJ NNS .
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`` It 's amazing the amount of money that goes up their nose , out to the dog track or to the tables in Las Vegas , '' Mr. Katz says . `` PRP VBZ JJ DT NN IN NN WDT VBZ IN PRP$ NN , IN TO DT NN NN CC TO DT NNS IN NNP NNP , '' NNP NNP VBZ .
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All this talk of boiler rooms and fraud is unnerving to the city 's legitimate business element . DT DT NN IN NN NNS CC NN VBZ VBG TO DT NN POS JJ NN NN .
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Vincent M Ciavarella , regional manager of Property Management Systems , insists he does n't know of any bogus telemarketers operating in the 1.6 million square feet of office space around Fashion Island that his company leases for Irvine Co. , the owner and developer of the project . NNP NNP NNP , JJ NN IN NNP NNP NNPS , VBZ PRP VBZ RB VB IN DT JJ NNS VBG IN DT CD CD NN NNS IN NN NN IN NNP NNP IN PRP$ NN NNS IN NNP NNP , DT NN CC NN IN DT NN .
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Mr. Ciavarella has rejected a few prospective tenants who provided `` incomplete '' financial information and acknowledges that illegitimate operators `` are not easily detectable . NNP NNP VBZ VBN DT JJ JJ NNS WP VBD `` JJ '' JJ NN CC VBZ IN JJ NNS `` VBP RB RB JJ .
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'' -LRB- Investigators stress that building owners are victims , too , since boiler rooms often leave without paying rent . -RRB- '' ( NNS VBP IN NN NNS VBP NNS , RB , IN NN NNS RB VBP IN VBG NN . )
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Richard Luehrs , president of the Newport Harbor Area Chamber of Commerce , calls boiler rooms a `` negative we wish we could get rid of . '' NNP NNP , NN IN DT NNP NNP NNP NNP IN NNP , VBZ NN NNS DT `` JJ PRP VBP PRP MD VB JJ IN . ''
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Actually , `` we do n't get much negative publicity about this , '' he insists , `` except for the press who write about it . '' RB , `` PRP VBP RB VB JJ JJ NN IN DT , '' PRP VBZ , `` IN IN DT NN WP VBP IN PRP . ''
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Mr. Lancaster is deputy chief of The Wall Street Journal 's Dallas bureau . NNP NNP VBZ NN NN IN DT NNP NNP NNP POS NNP NN .
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YOU WENT to college and thought you got an education . PRP VBD TO NN CC VBD PRP VBD DT NN .
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Now you discover that you never learned the most important lesson : How to send your kids to college . RB PRP VBP IN PRP RB VBD DT RBS JJ NN : WRB TO VB PRP$ NNS TO NN .
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True , when you went to college , there was n't that much to learn . JJ , WRB PRP VBD TO NN , EX VBD RB IN JJ TO VB .
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Stick some money in an interest-bearing account and watch it grow . NNP DT NN IN DT JJ NN CC VB PRP VB .
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Now , investment salesmen say it 's time to take some risks if you want the kind of returns that will buy your toddler a ticket to Prestige U. in 18 years . RB , NN NNS VBP PRP VBZ NN TO VB DT NNS IN PRP VBP DT NN IN NNS WDT MD VB PRP$ NN DT NN TO NNP NNP IN CD NNS .
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In short , throw away the passbook and go for the glory . IN JJ , VB RB DT NN CC VB IN DT NN .
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The reason is cost . DT NN VBZ NN .
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Nothing in the annals of tuition readied parents for the 1980s . NN IN DT NNS IN NN VBD NNS IN DT CD .
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Tuitions at private colleges rose 154 % in the 10 years ended in June of this year ; that 's twice the 77 % increase in consumer prices for the same period . NNS IN JJ NNS VBD CD NN IN DT CD NNS VBD IN NNP IN DT NN : DT VBZ RB DT CD NN NN IN NN NNS IN DT JJ NN .
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A year at Harvard now goes for $ 19,395 . DT NN IN NNP RB VBZ IN $ CD .
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By 2007 , when this year 's newborns hit campus , a four-year Ivy League sheepskin will cost $ 300,000 , give or take a few pizzas-with-everything at exam time . IN CD , WRB DT NN POS NNS VBD NN , DT JJ NNP NNP NN MD VB $ CD , VB CC VB DT JJ NNS IN NN NN .
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Stanford , MIT and other utmosts will cost no less . NNP , NNP CC JJ NNS MD VB DT JJR .
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So what 's a parent to do ? RB WP VBZ DT NN TO VB .
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Some investment advisers are suggesting , in effect , a bet on a start-up investment pool -- maybe even on margin . DT NN NNS VBP VBG , IN NN , DT NN IN DT JJ NN NN : RB RB IN NN .
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Others prefer deep-discount zero-coupon bonds . NNS VBP JJ JJ NNS .
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Still others say , Why not take a chance on a high-octane growth fund ? JJ NNS VBP , WRB RB VB DT NN IN DT JJ NN NN .
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`` You 're not going to make it in a 5 % bank account , '' says James Riepe , director of mutual funds at T. Rowe Price . `` PRP VBP RB VBG TO VB PRP IN DT NN NN NN NN , '' VBZ NNP NNP , NN IN JJ NNS IN NNP NNP NNP .
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To get the necessary growth , adds Murray Ruffel , a marketing official at the Financial Programs mutual-fund group , `` you need to go to the stock market . '' TO VB DT JJ NN , VBZ NNP NNP , DT NN NN IN DT NNP NNS JJ NN , `` PRP VBP TO VB TO DT NN NN . ''
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In other words , a little volatility never hurt . IN JJ NNS , DT JJ NN RB VBD .
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It never hurt anyone , that is , unless the growth funds do n't grow when you need them to . PRP RB VBD NN , DT VBZ , IN DT NN NNS VBP RB VB WRB PRP VBP PRP TO .
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Or the zero-coupon bonds turn out not to have been discounted deeply enough to pay your kid 's tuition . CC DT JJ NNS VBP IN RB TO VB VBN VBN RB RB TO VB PRP$ NN POS NN .
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That 's the dilemma for today 's parent . DT VBZ DT NN IN NN POS NN .
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Although many experts are advising risk , no one has a good answer for you if the risk does n't pay off . IN JJ NNS VBP VBG NN , DT CD VBZ DT JJ NN IN PRP IN DT NN VBZ RB VB RB .
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Help may be on the way . VB MD VB IN DT NN .
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The antitrust division of the Justice Department is investigating the oddly similar tuition charges and increases among the top schools . DT JJ NN IN DT NNP NNP VBZ VBG DT RB JJ NN NNS CC NNS IN DT JJ NNS .
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Fear of the price police could help cool things off in the 1990s . NN IN DT NN NN MD VB JJ NNS IN IN DT CD .
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And then there 's always State U . CC RB EX VBZ RB NNP NNP .
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But parents ' craving for a top-rated education for their children is growing like their taste for fancy wheels and vintage wine . CC NNS POS NN IN DT JJ NN IN PRP$ NNS VBZ VBG IN PRP$ NN IN JJ NNS CC JJ NN .
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Belatedly aware of public concern , lawmakers and financial middlemen are working overtime to create and sell college savings and investment schemes . RB JJ IN JJ NN , NNS CC JJ NNS VBP VBG NN TO VB CC VB NN NNS CC NN NNS .
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Their message , explicit or implicit , is that a good college will cost so much by whenever you want it that the tried and true wo n't do anymore . PRP$ NN , JJ CC JJ , VBZ IN DT JJ NN MD VB RB JJ IN WRB PRP VBP PRP IN DT VBN CC JJ MD RB VB RB .
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Forget about Treasury bills or a money-market fund . VB IN NNP NNS CC DT JJ NN .
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The latest wave of marketing is instructive . DT JJS NN IN NN VBZ JJ .
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Several outfits -- including the Financial Programs , Franklin , and T. Rowe Price mutual-fund groups and the Edward D. Jones brokerage house -- are advertising `` college planner '' tables and charts that tell you how much you need to put aside regularly . JJ NN : VBG DT NNP NNS , NNP , CC NNP NNP NNP JJ NNS CC DT NNP NNP NNP NN NN : VBP VBG `` NN NN '' NNS CC NNS WDT VBP PRP WRB JJ PRP VBP TO VB RB RB .
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The calculations generally rely on an after-tax rate of return of 8 % annually -- a rate historically obtainable by the individual in only one place , the stock market . DT NNS RB VBP IN DT JJ NN IN NN IN CD NN RB : DT NN RB JJ IN DT NN IN RB CD NN , DT NN NN .
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Most of the mailers are free , but Denver-based Financial Programs sells , for $ 15 , a version customized to the age of the child and the college of choice . JJS IN DT NNS VBP JJ , CC NNP NNP NNS VBZ , IN $ CD , DT NN VBN TO DT NN IN DT NN CC DT NN IN NN .
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The figures are shocking . DT NNS VBP JJ .
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To build a nest egg that would pay for Stanford when a current first-grader reaches college age , parents would need to set aside $ 773.94 a month -- for 12 years . TO VB DT NN NN WDT MD VB IN NNP WRB DT JJ NN VBZ NN NN , NNS MD VB TO VB RB $ CD DT NN : IN CD NNS .
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They can cut this to $ 691.09 a month if the investing keeps up through college . PRP MD VB DT TO $ CD DT NN IN DT VBG VBZ IN IN NN .
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And they can further reduce the monthly amount if they start saving earlier -- when mother and child come home from the hospital . CC PRP MD VB VB DT JJ NN IN PRP VBP VBG RBR : WRB NN CC NN VB NN IN DT NN .
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Plugging a cheaper college into the formulas still does n't generate an installment most people can live with . VBG DT JJR NN IN DT NNS RB VBZ RB VB DT NN RBS NNS MD VB RB .
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Using a recent average private-school cost of about $ 12,500 a year , T. Rowe Price 's planner prescribes $ 450 monthly if the plan begins when the child is six . VBG DT JJ JJ JJ NN IN RB $ CD DT NN , NNP NNP NNP POS NN VBZ $ CD JJ IN DT NN VBZ WRB DT NN VBZ CD .
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Since the formula assumes an 8 % before-tax return in a mutual fund , there would also be $ 16,500 in taxes to pay over the 12 years . IN DT NN VBZ DT CD NN JJ NN IN DT JJ NN , EX MD RB VB $ CD IN NNS TO VB IN DT CD NNS .
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Not everyone is so pessimistic . RB NN VBZ RB JJ .
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`` People are basically peddling a lot of fear , '' says Arthur Hauptman , a consultant to the American Council on Education in Washington . `` NNS VBP RB VBG DT NN IN NN , '' VBZ NNP NNP , DT NN TO DT NNP NNP IN NNP IN NNP .
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He takes issue with projections that do n't factor in students ' own contribution , which reduces most parents ' burden substantially . PRP VBZ NN IN NNS WDT VBP RB VB IN NNS POS JJ NN , WDT VBZ RBS NNS POS NN RB .
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Still , he says , `` it 's no bad thing '' if all the marketing prods people into putting aside a little more . RB , PRP VBZ , `` PRP VBZ DT JJ NN '' IN PDT DT NN VBZ NNS IN VBG RB DT RB JJR .
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`` The situation you want to avoid is having somebody not save anything and hope they 'll be able to do it out of current income , '' he says . `` DT NN PRP VBP TO VB VBZ VBG NN RB VB NN CC NN PRP MD VB JJ TO VB PRP IN IN JJ NN , '' PRP VBZ .
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`` That 's crazy . '' `` DT VBZ JJ . ''
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His advice : Do n't panic . PRP$ NN : VBP RB VB .
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Parents , he says , should aim at whatever regular investment sum they can afford . NNS , PRP VBZ , MD VB IN WDT JJ NN NN PRP MD VB .
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Half the amount that the investment tables suggest might be a good goal , he adds . NN DT NN IN DT NN NNS VBP MD VB DT JJ NN , PRP VBZ .
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That way , parents will reduce borrowings and outlays from current income when the time comes to pay tuition . DT NN , NNS MD VB NNS CC NNS IN JJ NN WRB DT NN VBZ TO VB NN .
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Mr. Hauptman reckons that the best investment choice is mutual funds because they are managed and over time have nearly kept up with the broad stock averages . NNP NNP VBZ IN DT JJS NN NN VBZ JJ NNS IN PRP VBP VBN CC IN NN VBP RB VBN IN IN DT JJ NN NNS .
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He favors either an all-stock fund or a balanced fund that mixes both stocks and bonds . PRP VBZ DT DT JJ NN CC DT JJ NN IN VBZ DT NNS CC NNS .
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In their anxiety , however , parents and other student benefactors are flocking to new schemes . IN PRP$ NN , RB , NNS CC JJ NN NNS VBP VBG TO JJ NNS .
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They have laid out about $ 1 billion for so-called baccalaureate zero-coupon municipal bonds -- so far offered by Connecticut , Illinois , Virginia and eight other states . PRP VBP VBN IN RB $ CD CD IN JJ NN JJ JJ NNS : RB RB VBN IN NNP , NNP , NNP CC CD JJ NNS .
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And they have bought about $ 500 million in prepaid-tuition plans , offered in Michigan , Florida and Wyoming . CC PRP VBP VBN RB $ CD CD IN JJ NNS , VBN IN NNP , NNP CC NNP .
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The prepaid plans take payment today -- usually at current tuitions or at a slight discount -- for a promise that tuition will be covered tomorrow . DT JJ NNS VBP NN NN : RB IN JJ NNS CC IN DT JJ NN : IN DT NN DT NN MD VB VBN NN .
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The baccalaureate bonds -- tax-free , offered in small denominations and usually containing a provision that they wo n't be called before maturity -- seem to be tailor-made for college savers . DT NN NNS : JJ , VBN IN JJ NNS CC RB VBG DT NN IN PRP MD RB VB VBN IN NN : VB TO VB JJ IN NN NNS .
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Like other zeros , they pay all their interest at maturity , meaning that buyers can time things so that their bonds pay off just when Junior graduates from high school . IN JJ NNS , PRP VBP DT PRP$ NN IN NN , NN IN NNS MD VB NNS RB IN PRP$ NNS VBP IN RB WRB JJ NNS IN JJ NN .
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Their compounding effect is also alluring . PRP$ NN NN VBZ RB JJ .
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In June , Virginia sold bonds for $ 268.98 that will pay $ 1,000 in 2009 . IN NNP , NNP VBD NNS IN $ CD WDT MD VB $ CD IN CD .
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But Richard Anderson , head of the Forum for College Financing Alternatives , at Columbia University , a research group partly financed by the federal government , says zeros are particularly ill-suited . CC NNP NNP , NN IN DT NNP IN NNP NNP NNP , IN NNP NNP , DT NN NN RB VBD IN DT JJ NN , VBZ NNS VBP RB JJ .
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Their price falls further than that of other bonds when inflation and interest rates kick up . PRP$ NN VBZ JJ IN DT IN JJ NNS WRB NN CC NN NNS VBP RB .
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That wo n't matter if they are held to maturity , but if , for any reason , the parents need to sell them before then , there could be a severe loss of principal . DT MD RB VB IN PRP VBP VBN TO NN , CC IN , IN DT NN , DT NNS VBP TO VB PRP IN RB , EX MD VB DT JJ NN IN NN .
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Had zeros been available in 1972 and had parents bought a face amount equal to four years ' tuition at the time , aiming for their children 's 1988 enrollment , they would have been left with only enough to pay for two years , Mr. Anderson figures . VBD NNS VBN JJ IN CD CC VBD NNS VBD DT NN NN JJ TO CD NNS POS NN IN DT NN , VBG IN PRP$ NNS POS CD NN , PRP MD VB VBN VBN IN RB RB TO VB IN CD NNS , NNP NNP VBZ .
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Most other bonds , however , would probably not have fared much better . JJS JJ NNS , RB , MD RB RB VB VBN RB JJR .
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The prepaid plans may be a good bet , provided the guarantee of future tuition is secure . DT JJ NNS MD VB DT JJ NN , VBD DT NN IN NN NN VBZ VB .
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Issuing states generally limit the guarantees to in-state institutions , however , and buyers get refunds without much interest if the children do n't attend the specified schools . VBG NNS RB VBP DT NNS TO JJ NNS , RB , CC NNS VBP NNS IN JJ NN IN DT NNS VBP RB VB DT VBN NNS .
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Two private groups are seeking Securities and Exchange Commission approval for plans that could be more broadly transferable . CD JJ NNS VBP VBG NNPS CC NNP NNP NN IN NNS WDT MD VB RBR RB JJ .
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Mr. Anderson wants the prestige colleges to sponsor such a plan . NNP NNP VBZ DT NN NNS TO VB JJ DT NN .
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The issue here may be the soundness of the guarantee . DT NN RB MD VB DT NN IN DT NN .
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Prepayments , much like mutual-fund purchases , are pooled for investment . NNS , JJ IN JJ NNS , VBP VBN IN NN .
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Sponsors are naturally counting on their ability to keep ahead of tuition inflation with investment returns . NNS VBP RB VBG IN PRP$ NN TO VB RB IN NN NN IN NN NNS .
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But buyers are essentially betting on a start-up investment fund with no track record -- and some have been encouraged to borrow to do so . CC NNS VBP RB VBG IN DT JJ NN NN IN DT NN NN : CC DT NN VBN VBN TO VB TO VB RB .
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One problem is that the Internal Revenue Service has decided that the investment earnings and gains of the sponsors ' funds are taxable . CD NN VBZ IN DT NNP NNP NNP VBZ VBN IN DT NN NNS CC NNS IN DT NNS POS NNS VBP JJ .
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The colleges , as educational institutions , had hoped that would n't be the case . DT NNS , IN JJ NNS , VBD VBN WDT MD RB VB DT NN .
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Based on historical rates of return , Mr. Anderson reckons a 100 % stock portfolio , indexed to the market , would have kept up with tuition and taxes in the 20th century . VBN IN JJ NNS IN NN , NNP NNP VBZ DT CD NN NN NN , VBN TO DT NN , MD VB VBN IN IN NN CC NNS IN DT JJ NN .
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But sponsors might not pick the stocks that will match the market . CC NNS MD RB VB DT NNS WDT MD VB DT NN .
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And they 're leaning more toward fixed income , whose returns after tax have trailed tuition increases . CC PRP VBP VBG RBR IN VBN NN , WP$ NNS IN NN VBP VBN NN NNS .
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`` I 'm not sure they 're going to make it work , '' says Mr. Anderson . `` PRP VBP RB JJ PRP VBP VBG TO VB PRP VB , '' VBZ NNP NNP .
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What happens if the sponsors do n't have the cash to pay the tuitions ? WP VBZ IN DT NNS VBP RB VB DT NN TO VB DT NNS .
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Florida and Wyoming have backed up their guarantees with the full faith and credit of the state governments , meaning that taxpayers will pick up any slack . NNP CC NNP VBP VBN IN PRP$ NNS IN DT JJ NN CC NN IN DT NN NNS , NN IN NNS MD VB IN DT NN .
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Not so Michigan . RB RB NNP .
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Its plan is set up as an independent agency . PRP$ NN VBZ VBN IN IN DT JJ NN .
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The state says there 's no worry -- investment returns , combined with fees and the gains from unused plans , will provide all the cash it needs . DT NN VBZ EX VBZ DT NN : NN NNS , VBN IN NNS CC DT NNS IN JJ NNS , MD VB PDT DT NN PRP VBZ .
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Mr. Putka covers education from The Wall Street Journal 's Boston bureau . NNP NNP VBZ NN IN DT NNP NNP NNP POS NNP NN .
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If you start saving for your child 's eduction on Jan. 1 , 1990 , here 's the monthly sum you will need to invest to pay for four years at Yale , Notre Dame and University of Minnesota . IN PRP VBP VBG IN PRP$ NN POS NN IN NNP CD , CD , RB VBZ DT JJ NN PRP MD VB TO VB TO VB IN CD NNS IN NNP , NNP NNP CC NNP IN NNP .
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Figures assume a 7 % annual rise in tuition , fees , room and board and an 8 % annual investment return . NNS VBP DT CD NN JJ NN IN NN , NNS , NN CC NN CC DT CD NN JJ NN NN .
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Note : These figures are only for mandatory charges and do n't include books , transportation etc . VB : DT NNS VBP RB IN JJ NNS CC VBP RB VB NNS , NN FW .
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\* For in-state students SYM IN JJ NNS
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Source : PaineWebber Inc . NN : NNP NNP .
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AMONG THE CATFISH farmers in the watery delta land of Humphreys County , Miss. , Allen D. Tharp of Isola was one of the best known and most enterprising . IN DT NNS NNS IN DT JJ NN NN IN NNP NNP , NNP , NNP NNP NNP IN NNP VBD CD IN DT RBS VBN CC RBS JJ .
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He sold quarter-inch fingerlings to stock other farmers ' ponds , and he bought back one-pound-or-so food-fish that he `` live-hauled '' to market along with his own whiskery crop . PRP VBD JJ NNS TO VB JJ NNS POS NNS , CC PRP VBD RB JJ NNS IN PRP `` VBD '' TO VB IN IN PRP$ JJ JJ NN .
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And he nearly always bought and sold for cash . CC PRP RB RB VBD CC VBN IN NN .
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Along the way , Mr. Tharp omitted a total of $ 1.5 million from his receipts reported on federal tax returns for three years . IN DT NN , NNP NNP VBD DT NN IN $ CD CD IN PRP$ NNS VBD IN JJ NN NNS IN CD NNS .
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The returns landed in the hands of an Internal Revenue Service criminal investigator , Samuel James Baker . DT NNS VBD IN DT NNS IN DT NNP NNP NNP JJ NN , NNP NNP NNP .
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Mr. Baker interviewed or wrote to hundreds of catfish farmers , live-haulers and processors throughout the South before coming up with detailed estimates of purchases and sales , in pounds and dollars , by Mr. Tharp and others . NNP NNP VBD CC VBD TO NNS IN NN NNS , NNS CC NNS IN DT NNP IN VBG IN IN VBN NNS IN NNS CC NNS , IN NNS CC NNS , IN NNP NNP CC NNS .
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Unknown to Mr. Tharp , he had fouled his net on a special IRS project to catch catfish farmers and haulers inclined to cheat on their taxes . JJ TO NNP NNP , PRP VBD VBN PRP$ JJ IN DT JJ NNP NN TO VB NN NNS CC NNS VBN TO VB IN PRP$ NNS .
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Confronted with the evidence , Mr. Tharp pleaded guilty to one charge of filing a false return and was fined $ 5,000 and sentenced to 18 months in prison . VBN IN DT NN , NNP NNP VBD JJ TO CD NN IN VBG DT JJ NN CC VBD VBN $ CD CC VBN TO CD NNS IN NN .
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He also owes a lot of back taxes , interest and civil fraud penalties . PRP RB VBZ DT NN IN RB VBZ , NN CC JJ NN NNS .
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A lot of taxpayers out there are n't as paranoid as one might think . DT NN IN NNS IN EX VBP RB RB JJ IN PRP MD VB .
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Federal and state tax enforcers develop many group targets for investigation , on the basis of occupation , high income , type of income , or some other characteristic that may signal an opportunity or tendency to hide income or exaggerate deductions . NNP CC NN NN NNS VBP JJ NN NNS IN NN , IN DT NN IN NN , JJ NN , NN IN NN , CC DT JJ JJ WDT MD VB DT NN CC NN TO VB NN CC VB NNS .
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Many professions long have seemed to be targets because of the exotic or ludicrous efforts of some members to offset high income with fake losses from phony tax shelters : dentists who invested in dubiously dubbed foreign films or airline pilots who raised racehorses on their days off . JJ NNS JJ NN VBN TO VB NNS IN IN DT JJ CC JJ NNS IN DT NNS TO VB JJ NN IN JJ NNS IN JJ NN NNS : NNS WP VBD IN RB VBN JJ NNS CC NN NNS WP VBD NNS IN PRP$ NNS RB .
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Mail-order ministers have been squelched . NN NNS VBP VBN VBN .
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Now , television and radio evangelists are under scrutiny . RB , NN CC NN NNS VBP IN NN .
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The IRS recently won part of its long-running battle with the Church of Scientology over exemptions when the U.S. Supreme Court held that members ' payments to the church were n't deductible because the members received services in return . DT NNP RB VBD NN IN PRP$ JJ NN IN DT NNP IN NNP IN NNS WRB DT NNP NNP NNP VBD IN NNS POS NNS TO DT NN VBD RB JJ IN DT NNS VBD NNS IN NN .
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IRS statistics show that the more persistent hiders of income among sole proprietors of businesses include used-car dealers , entertainment producers , masons , roofers , and taxi owners . NNP NNS VBP IN DT RBR JJ NNS IN NN IN JJ NNS IN NNS VBP NN NNS , NN NNS , NNS , NNS , CC NN NNS .
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Small businesses in general account for almost 40 % of unreported personal income , the IRS has said . JJ NNS IN JJ NN IN RB CD NN IN JJ JJ NN , DT NNP VBZ VBD .
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Once such abuses become so pervasive , the IRS builds another factor into its secret computer formula for selecting returns for audit and does n't need special projects for them . RB JJ NNS VBP RB JJ , DT NNP VBZ DT NN IN PRP$ JJ NN NN IN VBG NNS IN NN CC VBZ RB VB JJ NNS IN PRP .
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San Franciscans have a much higher incidence of audits than average because more of them score high under that formula , not because IRS agents envy their life styles . NNP NNP VBP DT RB JJR NN IN NN IN JJ IN JJR IN PRP VBP JJ IN DT NN , RB IN NNP NNS VBP PRP$ NN NNS .
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Many openings for mass cheating , such as questionable tax shelters and home offices , have gaped so broadly that Congress has passed stringent laws to close them . JJ NNS IN NN NN , JJ IN JJ NN NNS CC NN NNS , VBP VBN RB RB IN NNP VBZ VBN JJ NNS TO VB PRP .
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Deductions of charitable gifts of highly valued art now must be accompanied by appraisals . NNS IN JJ NNS IN RB VBN NN RB MD VB VBN IN NNS .
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And laws requiring the reporting of more varieties of transactions have enabled the IRS to rely on computers to ferret out discrepancies with returns and to generate form-letter inquiries to taxpayers . CC NNS VBG DT NN IN JJR NNS IN NNS VBP VBN DT NNP TO VB IN NNS TO VB RP NNS IN NNS CC TO VB JJ NNS TO NNS .
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Unreported alimony income can be spotted by computer because a payer of alimony -LRB- who gets a deduction -RRB- must report the former spouse 's Social Security number . JJ NN NN MD VB VBN IN NN IN DT NN IN NN ( WP VBZ DT NN ) MD VB DT JJ NN POS NNP NNP NN .
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Passport applicants now must give Social Security numbers , enabling the IRS to see whether Americans living abroad are filing required U.S. returns . NN NNS RB MD VB NNP NNP NNS , VBG DT NNP TO VB IN NNPS VBG RB VBP VBG VBN NNP NNS .
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But while IRS computers focus routinely on target groups like these , the agency has assigned many agents to special projects that need more personal attention . CC IN NNP NNS VBP RB IN NN NNS IN DT , DT NN VBZ VBN JJ NNS TO JJ NNS WDT VBP RBR JJ NN .
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In most cases , the IRS says , these projects are local or regional , rather than national , and arise because auditors in an area detect some pattern of abuse among , say , factory workers claiming that having a multitude of dependents frees them from tax withholding or yacht owners deducting losses from sideline charter businesses . IN RBS NNS , DT NNP VBZ , DT NNS VBP JJ CC JJ , RB IN JJ , CC VB IN NNS IN DT NN VB DT NN IN NN IN , VBP , NN NNS VBG IN VBG DT NN IN NNS VBZ PRP IN NN NN CC NN NNS VBG NNS IN NN NN NNS .
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The national office currently has 21 noncriminal audit projects , according to Marshall V. Washburn , deputy assistant commissioner for examination . DT JJ NN RB VBZ CD JJ NN NNS , VBG TO NNP NNP NNP , NN NN NN IN NN .
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Auditors involved in noncriminal projects ca n't send anyone to jail , but they can make life miserable in other ways -- for one , by imposing some of the 150 different civil penalties for negligence , failure to file a return , and the like . NNS VBN IN JJ NNS MD RB VB NN TO VB , CC PRP MD VB NN JJ IN JJ NNS : IN CD , IN VBG DT IN DT CD JJ JJ NNS IN NN , NN TO VB DT NN , CC DT NN .
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The targeted audit groups include direct sellers -- people who sell cosmetics , housewares and other items door to door or at home parties -- and employers who label workers as independent contractors instead of employees , to avoid the employer share of payroll taxes . DT VBN NN NNS VBP JJ NNS : NNS WP VBP NNS , NNS CC JJ NNS NN TO NN CC IN NN NNS : CC NNS WP VBP NNS IN JJ NNS RB IN NNS , TO VB DT NN NN IN NN NNS .
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Other projects look for offenders among waiters who get cash tips , people who engage in large cash transactions , and people whose returns show they sold a home for a profit without reinvesting the capital gain in another home by the end of the same year ; the gain must be rolled over within two years to defer tax . JJ NNS VBP IN NNS IN NNS WP VBP NN NNS , NNS WP VBP IN JJ NN NNS , CC NNS WP$ NNS VBP PRP VBD DT NN IN DT NN IN VBG DT NN NN IN DT NN IN DT NN IN DT JJ NN : DT NN MD VB VBN IN IN CD NNS TO VB NN .
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And now that returns must show dependents ' Social Security numbers , the IRS wants to see which dependents show up on more than one return -- and which dependents turn out to be deceased . CC RB IN NNS MD VB NNS POS NNP NNP NNS , DT NNP VBZ TO VB WDT NNS VBP IN IN JJR IN CD NN : CC WDT NNS VBP IN TO VB JJ .
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Impetus for the direct-seller project came from a congressional hearing some years back . NN IN DT NN NN VBD IN DT JJ VBG DT NNS RB .
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It prompted an IRS study that found many sellers were concealing income and treating large amounts of nondeductible travel and other personal expenses as business costs , Mr. Washburn says . PRP VBD DT NNP NN WDT VBD JJ NNS VBD VBG NN CC VBG JJ NNS IN JJ NN CC JJ JJ NNS IN NN NNS , NNP NNP VBZ .
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The study provided criteria for singling out returns of `` potentially noncompliant '' taxpayers who report low income and large expenses from a part-time business . DT NN VBD NNS IN VBG RP NNS IN `` RB JJ '' NNS WP VBP JJ NN CC JJ NNS IN DT JJ NN .
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The Tax Court recently denied business deductions by Mr. and Mrs. Peter S. Rubin of Cherry Hill , N.J. , who both were part-time distributors of Amway products in addition to their regular jobs as sales people in other fields . DT NNP NNP RB VBD NN NNS IN NNP CC NNP NNP NNP NNP IN NNP NNP , NNP , WP DT VBD JJ NNS IN NNP NNS IN NN TO PRP$ JJ NNS IN NNS NNS IN JJ NNS .
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For 1984 , they reported gross income of $ 1,647 from Amway sales , offset by expenses totaling $ 16,746 -- including car costs of $ 6,805 and travel and entertainment costs of $ 5,088 . IN CD , PRP VBD JJ NN IN $ CD IN NNP NNS , VB IN NNS VBG $ CD : VBG NN NNS IN $ CD CC NN CC NN NNS IN $ CD .
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The Tax Court did n't believe that the Rubins , who earned $ 65,619 in their regular jobs , treated the sideline as a real business and derived `` merely incidental elements of recreation and other personal pleasure and benefits '' from it . DT NNP NNP VBD RB VB IN DT NNS , WP VBD $ CD IN PRP$ JJ NNS , VBD DT NN IN DT JJ NN CC VBN `` RB JJ NNS IN NN CC JJ JJ NN CC NNS '' IN PRP .
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The Direct Selling Association , a trade group , points out that its members , which include Amway Corp. , cooperate with the IRS to distribute tax-compliance material to sales people and are helping to prepare a public-service television program on the subject . DT JJ NNP NNP , DT NN NN , VBZ IN IN PRP$ NNS , WDT VBP NNP NNP , VB IN DT NNP TO VB NN NN TO NNS NNS CC VBP VBG TO VB DT JJ NN NN IN DT NN .
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The independent-contractor project , which began in 1988 , involves about 350 IRS agents . DT JJ NN , WDT VBD IN CD , VBZ IN CD NNP NNS .
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In the fiscal nine months ended June 30 , reports Raymond P. Keenan , assistant commissioner for collection , they examined about 13,000 employers , assessed more than $ 67 million in delinquent employment taxes , and reclassified about 56,000 workers as employees instead of self-employed contractors . IN DT JJ CD NNS VBD NNP CD , NNS NNP NNP NNP , NN NN IN NN , PRP VBD IN CD NNS , VBN JJR IN $ CD CD IN JJ NN NNS , CC VBD IN CD NNS IN NNS RB IN JJ NNS .
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The number of misclassified workers may be in the millions , mostly paid by small firms . DT NN IN VBN NNS MD VB IN DT NNS , RB VBN IN JJ NNS .
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Many workers , especially professionals , want to remain independent to avoid tax withholding and to continue to deduct many expenses that employees ca n't . JJ NNS , RB NNS , VBP TO VB JJ TO VB NN NN CC TO VB TO VB JJ NNS IN NNS MD RB .
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But many others , who want to qualify for employee benefits and unemployment compensation , become tipsters for the IRS , says Jerry Lackey , who manages the IRS project 's force of nine agents in north and central Florida from Orlando . CC JJ NNS , WP VBP TO VB IN NN NNS CC NN NN , VB NNS IN DT NNP , VBZ NNP NNP , WP VBZ DT NNP NN POS NN IN CD NNS IN RB CC JJ NNP IN NNP .
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Firms that are paying employment taxes also provide leads to competitors that are n't , he says . NNS WDT VBP VBG NN NNS RB VBP VBZ TO NNS WDT VBP RB , PRP VBZ .
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In his area , Mr. Lackey continues , the miscreant employers most commonly are in construction -- doing framing , drywall , masonry and similar work . IN PRP$ NN , NNP NNP VBZ , DT JJ NNS RBS RB VBP IN NN : VBG NN , NN , NN CC JJ NN .
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But a medical clinic with about 20 employees wrongly listed all of them -- including physicians and receptionists -- as independent contractors . CC DT JJ NN IN IN CD NNS RB VBN DT IN PRP : VBG NNS CC NNS : IN JJ NNS .
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The IRS assessed the clinic $ 350,000 in back payroll taxes . DT NNP VBD DT NN $ CD IN JJ NN NNS .
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It assessed nearly $ 500,000 against a cruise-ship company that carried about 100 deckhands , cooks , bartenders , entertainers and other employees as self-employed independents . PRP VBD RB $ CD IN DT NN NN WDT VBD IN CD NNS , NNS , NNS , NNS CC JJ NNS IN JJ NNS .
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Revenue-short states also are becoming more aggressive pursuers of tax delinquents , and perhaps none tracks them down with more relish than does New York since it acquired an $ 80 million computer system in 1985 . JJ NNS RB VBP VBG RBR JJ NNS IN NN NNS , CC RB NN VBZ PRP RB IN JJR NN IN VBZ NNP NNP IN PRP VBD DT $ CD CD NN NN IN CD .
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The state 's tax enforcers have amassed data bases from other New York agencies that license or register professionals and businesses ; from exchange agreements with the IRS , 24 other states , and two Canadian provinces , and even from phonebook Yellow Pages . DT NN POS NN NNS VBP VBN NNS NNS IN JJ NNP NNP NNS WDT VBP CC VB NNS CC NNS : IN NN NNS IN DT NNP , CD JJ NNS , CC CD JJ NNS , CC RB IN NN NNP NNPS .
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Thus armed for massive matching of documents by computer , they single out high-income groups , looking primarily for people who have n't filed New York income-tax returns . RB VBN IN JJ NN IN NNS IN NN , PRP JJ RP JJ NNS , VBG RB IN NNS WP VBP RB VBN NNP NNP NN NNS .
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The state has combed through records relating to architects , stockbrokers , lawyers in the New York City area , construction workers from out of the state , and homeowners who claim to be residents of other states -- especially Florida , which has no personal income tax . DT NN VBZ VBN IN NNS VBG TO NNS , NNS , NNS IN DT NNP NNP NNP NN , NN NNS IN IN IN DT NN , CC NNS WP VBP TO VB NNS IN JJ NNS : RB NNP , WDT VBZ DT JJ NN NN .
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Soon to feel the glare of attention are lawyers elsewhere in the state , doctors , dentists , and accountants , says Frederick G. Hicks , director of the tax-department division that develops the computer-matching programs . RB TO VB DT NN IN NN VBP NNS RB IN DT NN , NNS , NNS , CC NNS , VBZ NNP NNP NNP , NN IN DT JJ NN WDT VBZ DT JJ NNS .
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The department has collected over $ 6.5 million from brokers so far and recommended more than 30 of them for criminal prosecution . DT NN VBZ VBN IN $ CD CD IN NNS RB RB CC VBD JJR IN CD IN PRP IN JJ NN .
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In the early stage of checking people with incomes exceeding $ 500,000 who were filing nonresident returns , it squeezed $ 7.5 million out of a man who was posing as a Florida resident . IN DT JJ NN IN VBG NNS IN NNS VBG $ CD WP VBD VBG JJ NNS , PRP VBD $ CD CD IN IN DT NN WP VBD VBG IN DT NNP NN .
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`` We think we can reclaim hundreds of millions of dollars just through the nonresident project , '' Mr. Hicks declares . `` PRP VBP PRP MD VB NNS IN NNS IN NNS RB IN DT JJ NN , '' NNP NNP VBZ .
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Mr. Schmedel is editor of The Wall Street Journal 's Tax Report column . NNP NNP VBZ NN IN DT NNP NNP NNP POS NNP NNP NN .
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In finding `` good news '' in Berkeley 's new freshman admissions plan -LRB- `` The Privileged Class , '' editorial , Sept. 20 -RRB- , you 're reading the headline but not the story . IN VBG `` JJ NN '' IN NNP POS JJ NN NNS VBP ( `` DT NNP NNP , '' NN , NNP CD ) , PRP VBP VBG DT NN CC RB DT NN .
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The plan indeed raises from 40 % to 50 % the number of freshmen applicants admitted strictly by academic criteria . DT NN RB VBZ IN CD NN TO CD NN DT NN IN NNS NNS VBD RB IN JJ NNS .
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But that does n't mean `` half of the students attending Berkeley '' will be admitted this way . CC DT VBZ RB VB `` NN IN DT NNS VBG NNP '' MD VB VBN DT NN .
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The plan is talking about applicants admitted , not students who enroll . DT NN VBZ VBG IN NNS VBD , RB NNS WP VBP .
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Since the `` yield '' from this top slice of applicants is relatively low , boosting admits from 40 % to 50 % will boost registrants from about 31 % to 38 % of the class . IN DT `` NN '' IN DT JJ NN IN NNS VBZ RB JJ , VBG VBZ IN CD NN TO CD NN MD VB NNS IN IN CD NN TO CD NN IN DT NN .
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In addition , perhaps 5 % of registrants will come from a new category consisting of applicants whose academic credentials `` narrowly missed '' gaining them admission in the first category . IN NN , RB VBP NN IN NNS MD VB IN DT JJ NN VBG IN NNS WP$ JJ NNS `` RB VBD '' VBG PRP NN IN DT JJ NN .
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But against that combined increase of 12 % in students chosen by academic criteria , the plan eliminates a large category in which admissions now are based on grades , test scores and `` supplemental points '' for factors such as high-school curriculum , English-language proficiency and an essay . CC IN DT VBD NN IN CD NN IN NNS VBN IN JJ NNS , DT NN VBZ DT JJ NN IN WDT NNS RB VBP VBN IN NNS , NN NNS CC `` JJ NNS '' IN NNS JJ IN NN NN , JJ NN CC DT NN .
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This category now accounts for about 19 % of admits and 22 % of registrants . DT NN RB VBZ IN IN CD NN IN VBZ CC CD NN IN NNS .
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The plan thus will decrease by 22 % , for a net loss of 10 % , the number of students admitted primarily by academic criteria . DT NN RB MD VB IN CD NN , IN DT JJ NN IN CD NN , DT NN IN NNS VBD RB IN JJ NNS .
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Who will take over these places ? WP MD VB IN DT NNS .
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The plan creates a new category of students from `` socioeconomically disadvantaged backgrounds , '' a concept not yet defined , and gives them about 10 % of the class . DT NN VBZ DT JJ NN IN NNS IN `` RB JJ NNS , '' DT NN RB RB VBN , CC VBZ PRP IN CD NN IN DT NN .
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One of the plan 's authors has defended the `` socioeconomic disadvantage '' category as perhaps making more sense than the current affirmative-action preferences based on race . CD IN DT NN POS NNS VBZ VBN DT `` JJ NN '' NN IN RB VBG JJR NN IN DT JJ NN NNS VBN IN NN .
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Perhaps it does . RB PRP VBZ .
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But the new category does not replace or reduce Berkeley 's broad racial preferences . CC DT JJ NN VBZ RB VB CC VB NNP POS JJ JJ NNS .
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Nor will students from racial-minority groups who are admitted through the new category be counted against the affirmative-action `` target '' for their group . CC MD NNS IN JJ NNS WP VBP VBN IN DT JJ NN VB VBN IN DT NN `` NN '' IN PRP$ NN .
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The plan thus places a large new affirmative-action program , based on `` socioeconomic disadvantage , '' on top of the existing program based on race . DT NN RB VBZ DT JJ JJ NN NN , VBN IN `` JJ NN , '' IN NN IN DT VBG NN VBN IN NN .
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The role of academic criteria in choosing Berkeley 's freshmen can only decline as a result . DT NN IN JJ NNS IN VBG NNP POS NNS MD RB VB IN DT NN .
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Stephen R. Barnett Professor of Law University of California Berkeley , Calif . NNP NNP NNP NNP IN NNP NNP IN NNP NNP , NNP .
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FOR THOSE WHO DELIGHT in the misfortune of others , read on . IN DT WP VBP IN DT NN IN NNS , VB RB .
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This is a story about suckers . DT VBZ DT NN IN NNS .
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Most of us know a sucker . JJS IN PRP VBP DT NN .
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Many of us are suckers . JJ IN PRP VBP NNS .
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But what we may not know is just what makes somebody a sucker . CC WP PRP MD RB VB VBZ RB WP VBZ NN DT NN .
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What makes people blurt out their credit-card numbers to a caller they 've never heard of ? WP VBZ NNS VBP IN PRP$ NN NNS TO DT NN PRP VBP RB VBN RB .
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Do they really believe that the number is just for verification and is simply a formality on the road to being a grand-prize winner ? VBP PRP RB VBP IN DT NN VBZ RB IN NN CC VBZ RB DT NN IN DT NN TO VBG DT NN NN .
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What makes a person buy an oil well from some stranger knocking on the screen door ? WP VBZ DT NN NN DT NN RB IN DT NN VBG IN DT NN NN .
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Or an interest in a retirement community in Nevada that will knock your socks off , once it is built ? CC DT NN IN DT NN NN IN NNP WDT MD VB PRP$ NNS IN , RB PRP VBZ VBN .
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Because in the end , these people always wind up asking themselves the same question : `` How could I be so stupid ? '' IN IN DT NN , DT NNS RB VBP IN VBG PRP DT JJ NN : `` WRB MD PRP VB RB JJ . ''
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There are , unfortunately , plenty of answers to that question -- and scam artists know all of them . EX VBP , RB , NN IN NNS TO DT NN : CC NN NNS VBP DT IN PRP .
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`` These people are very skilled at finding out what makes a person tick , '' says Kent Neal , chief of the economic-crime unit of the Broward County State Attorney 's Office in Fort Lauderdale , Fla. , a major haven for boiler rooms . `` DT NNS VBP RB JJ IN VBG IN WP VBZ DT NN NN , '' VBZ NNP NNP , NN IN DT JJ NN IN DT NNP NNP NNP NNP POS NNP IN NNP NNP , NNP , DT JJ NN IN NN NNS .
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`` Once they size them up , then they know what buttons to push . '' `` RB PRP VBP PRP IN , RB PRP VBP WP NNS TO VB . ''
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John Blodgett agrees -- and he ought to know . NNP NNP VBZ : CC PRP MD TO VB .
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He used to be a boiler-room salesman , peddling investments in oil and gas wells and rare coins . PRP VBD TO VB DT NN NN , VBG NNS IN NN CC NN NNS CC JJ NNS .
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`` There 's a definite psychology of the sale and different personalities you pitch different ways , '' he says . `` EX VBZ DT JJ NN IN DT NN CC JJ NNS PRP VBP JJ NNS , '' PRP VBZ .
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The most obvious pitch , of course , is the lure of big returns . DT RBS JJ NN , IN NN , VBZ DT NN IN JJ NNS .
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`` We 're all a little greedy . `` PRP VBP PDT DT JJ JJ .
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Everyone is vulnerable , '' says Charles Harper , associate regional administrator for the Securities and Exchange Commission in Miami . NN VBZ JJ , '' VBZ NNP NNP , JJ JJ NN IN DT NNP CC NNP NNP IN NNP .
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`` These guys prey on human frailties . '' `` DT NNS VBP IN JJ NNS . ''
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While the promises of big profits ought to set off warning bells , they often do n't , in part because get-rich-quick tales have become embedded in American folklore . IN DT NNS IN JJ NNS MD TO VB IN NN NNS , PRP RB VBP RB , IN NN IN JJ NNS VBP VBN VBN IN JJ NN .
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`` The overnight success story is part of our culture , and our society puts an emphasis on it with lotteries and Ed McMahon making millionaires out of people , '' says Michael Cunningham , an associate professor of psychology at the University of Kentucky in Louisville . `` DT JJ NN NN VBZ NN IN PRP$ NN , CC PRP$ NN VBZ DT NN IN PRP IN NNS CC NNP NNP VBG NNS IN IN NNS , '' VBZ NNP NNP , DT JJ NN IN NN IN DT NNP IN NNP IN NNP .
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`` Other people are making it overnight , and the rest who toil daily do n't want to miss that opportunity when it seems to come along . '' `` JJ NNS VBP VBG PRP JJ , CC DT NN WP VBP JJ NN RB VB TO VB DT NN WRB PRP VBZ TO VB IN . ''
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Adds Spencer Barasch , branch chief for enforcement at the SEC in Fort Worth , Texas : `` Why do people play the lottery when the odds are great against them ? VBZ NNP NNP , NN NN IN NN IN DT NNP IN NNP NNP , NNP : `` WRB VBP NNS VB DT NN WRB DT NNS VBP JJ IN PRP .
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People are shooting for a dream . '' NNS VBP VBG IN DT NN . ''
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Clearly , though , scam artists have to be a bit more subtle than simply promising millions ; the psychology of suckers is n't simply the psychology of the greedy . RB , RB , NN NNS VBP TO VB DT NN RBR JJ IN RB JJ NNS : DT NN IN NNS VBZ RB RB DT NN IN DT JJ .
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There 's also , for instance , the need to be part of the in-crowd . EX VBZ RB , IN NN , DT NN TO VB NN IN DT NN .
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So one popular ploy is to make a prospective investor feel like an insider , joining an exclusive group that is about to make a killing . RB CD JJ NN VBZ TO VB DT JJ NN NN IN DT NN , VBG DT JJ NN WDT VBZ IN TO VB DT NN .
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Between 1978 and 1987 , for instance , SH Oil in Winter Haven , Fla. , sold interests in oil wells to a very select group of local residents , while turning away numerous other eager investors . IN CD CC CD , IN NN , NNP NNP IN NNP NNP , NNP , VBN NNS IN NN NNS TO DT RB VB NN IN JJ NNS , IN VBG RB JJ JJ JJ NNS .
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The owner of the company , Stephen Smith , who has since pleaded guilty to state and federal fraud charges , confided to investors that he had a secret agreement with Amoco Oil Co. and said the location of his wells was confidential , according to a civil suit filed in a Florida state court by the Florida comptroller 's office . DT NN IN DT NN , NNP NNP , WP VBZ IN VBN JJ TO VB CC JJ NN NNS , VBD TO NNS IN PRP VBD DT JJ NN IN NNP NNP NNP CC VBD DT NN IN PRP$ NNS VBD JJ , VBG TO DT JJ NN VBN IN DT NNP NN NN IN DT NNP NN POS NN .
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Neither the Amoco agreement nor the wells existed , the suit alleged . CC DT NNP NN CC DT NNS VBD , DT NN VBN .
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Such schemes , says Tony Adamski , chief of the financial-crimes unit of the Federal Bureau of Investigation in Washington , D.C. , appeal to investors ' `` desire to believe this is really true and that they are part of a chosen group being given this opportunity . '' JJ NNS , VBZ NNP NNP , NN IN DT NNS NN IN DT NNP NNP IN NNP IN NNP , NNP , NN TO NNS POS `` NN TO VB DT VBZ RB JJ CC IN PRP VBP NN IN DT VBN NN VBG VBN DT NN . ''
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At times , salesmen may embellish the inside information with `` the notion that this is some slightly shady , slightly illegal investment the person is being included in , '' says Mr. Cunningham . IN NNS , NNS MD VB DT JJ NN IN `` DT NN IN DT VBZ DT RB JJ , RB JJ NN DT NN VBZ VBG VBN IN , '' VBZ NNP NNP .
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In appealing to those with a bit of larceny in their hearts , the fraud artist can insist that a person keep an investment secret -- insulating himself from being discovered and keeping his victim from consulting with others . IN JJ TO DT IN DT NN IN NN IN PRP$ NNS , DT NN NN MD VB IN DT NN NN DT NN JJ : VBG PRP IN VBG VBN CC VBG PRP$ NN IN NN IN NNS .
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It also adds to the mystery of the venture . PRP RB VBZ TO DT NN IN DT NN .
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Mr. Blodgett , the boiler-room veteran , believes that for many investors , the get-rich-quick scams carry a longed-for element of excitement . NNP NNP , DT NN NN , VBZ IN IN JJ NNS , DT JJ NNS VBP DT JJ NN IN NN .
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`` Once people got into it , I was allowing them to live a dream , '' he says . `` RB NNS VBD IN PRP , PRP VBD VBG PRP TO VB DT NN , '' PRP VBZ .
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He phoned them with updates on the investment , such as `` funny things that happened at the well that week , '' he says . PRP VBD PRP IN NNS IN DT NN , JJ IN `` JJ NNS WDT VBD IN DT RB DT NN , '' PRP VBZ .
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`` You gave them some excitement that they did n't have in their lives . '' `` PRP VBD PRP DT NN IN PRP VBD RB VB IN PRP$ NNS . ''
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-LRB- Mr. Blodgett , who was convicted in Florida state court of selling unregistered securities and in California state court of unlawful use of the telephone to defraud and deceive , is now on probation . ( NNP NNP , WP VBD VBN IN NNP NN NN IN VBG JJ NNS CC IN NNP NN NN IN JJ NN IN DT NN TO VB CC VB , VBZ RB IN NN .
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He says he has quit the business and is back in school , majoring in psychology with aspirations to go into industrial psychology . -RRB- PRP VBZ PRP VBZ VBN DT NN CC VBZ RB IN NN , VBG IN NN IN NNS TO VB IN JJ NN . )
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For some investors , it 's the appearances that leave them deceived . IN DT NNS , PRP VBZ DT NNS WDT VBP PRP VBD .
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`` The trappings of success go a long way -- wearing the right clothes , doing the right things , '' says Paul Andreassen , an associate professor of psychology at Harvard . `` DT NNS IN NN NN DT JJ NN : VBG DT NN NNS , VBG DT NN NNS , '' VBZ NNP NNP , DT JJ NN IN NN IN NNP .
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Conservative appearances make people think it 's a conservative investment . JJ NNS VBP NNS VBP PRP VBZ DT JJ NN .
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`` People honestly lose money on risky investments that they did n't realize were a crapshoot , '' he says . `` NNS RB VBP NN IN JJ NNS IN PRP VBD RB VB VBD DT NN , '' PRP VBZ .
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Paul Wenz , a Phoenix , Ariz. , attorney , says a promise of unrealistic returns would have made him leery . NNP NNP , DT NNP , NNP , NN , VBZ DT NN IN JJ NNS MD VB VBN PRP JJ .
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But Mr. Wenz , who says he lost $ 43,000 in one precious-metals deal and $ 39,000 in another , says a salesman `` used a business-venture approach '' with him , sending investment literature , a contract limiting the firm 's liability , and an insurance policy . CC NNP NNP , WP VBZ PRP VBD $ CD IN CD NNS VBP CC $ CD IN DT , VBZ DT NN `` VBN DT JJ NN '' IN PRP , VBG NN NN , DT NN VBG DT NN POS NN , CC DT NN NN .
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When he visited the company 's office , he says , it had `` all the trappings of legitimacy . '' WRB PRP VBD DT NN POS NN , PRP VBZ , PRP VBD `` PDT DT NNS IN NN . ''
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Still others are stung by a desire to do both well and good , says Douglas Watson , commanding officer of the Los Angeles Police Department 's bunko-forgery division . JJ NNS VBP VBN IN DT NN TO VB DT RB CC JJ , VBZ NNP NNP , VBG NN IN DT NNP NNP NNP NNP POS NN NN .
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Born-again Christians are the most visible targets of unscrupulous do-gooder investment pitches . JJ NNPS VBP DT RBS JJ NNS IN JJ JJ NN NNS .
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But hardly the only ones : The scams promise -- among other things -- to help save the environment , feed starving families and prevent the disappearance of children . CC RB DT JJ NNS : DT NNS VBP : IN JJ NNS : TO VB VB DT NN , NN VBG NNS CC VB DT NN IN NNS .
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Psychologists say isolated people who do n't discuss their investments with others are particularly at risk for fraud . NNS VBP VBN NNS WP VBP RB VB PRP$ NNS IN NNS VBP RB IN NN IN NN .
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Scam artists seek out such people -- or try to make sure that their victims isolate themselves . NN NNS VBP RP JJ NNS : CC VB TO VB JJ IN PRP$ NNS VBP PRP .
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For instance , salesmen may counter a man 's objection that he wants to discuss an investment with his wife by asking , `` Who wears the pants in your family ? '' IN NN , NNS MD VB DT NN POS NN IN PRP VBZ TO VB DT NN IN PRP$ NN IN VBG , `` WP VBZ DT NNS IN PRP$ NN . ''
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Or an investor who wants his accountant 's advice may be told , `` You seem like a guy who can make up his own mind . '' CC DT NN WP VBZ PRP$ NN POS NN MD VB VBN , `` PRP VBP IN DT NN WP MD VB IN PRP$ JJ NN . ''
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Often con artists will try to disarm their victims by emphasizing similarities between them . RB JJ NNS MD VB TO VB PRP$ NNS IN VBG NNS IN PRP .
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William Lynes , a retired engineer from Lockheed Corp. , says he and his wife , Lily , warmed to the investment pitches of a penny-stock peddler from Stuart-James Co. in Atlanta after the broker told them he , too , had once worked with Lockheed . NNP NNP , DT VBN NN IN NNP NNP , VBZ PRP CC PRP$ NN , NNP , VBD TO DT NN NNS IN DT JJ NN IN NNP NNP IN NNP IN DT NN VBD PRP PRP , RB , VBD RB VBN IN NNP .
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The Lyneses , of Powder Springs , Ga. , have filed suit in Georgia state court against Stuart James , alleging fraud . DT NNP , IN NNP NNP , NNP , VBP VBN NN IN NNP NN NN IN NNP NNP , VBG NN .
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They are awaiting an arbitration proceeding . PRP VBP VBG DT NN NN .
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They say the broker took them out for lunch frequently . PRP VBP DT NN VBD PRP IN IN NN RB .
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He urged them to refer their friends , who also lost money . PRP VBD PRP TO VB PRP$ NNS , WP RB VBD NN .
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-LRB- Donald Trinen , an attorney for the penny-brokerage firm , denies the fraud allegations and says the Lyneses were fully apprised that they were pursuing a high-risk investment . -RRB- ( NNP NNP , DT NN IN DT JJ NN , VBZ DT NN NNS CC VBZ DT NNP VBD RB VBN IN PRP VBD VBG DT JJ NN . )
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`` It 's not uncommon for these guys to send pictures of themselves or their families to ingratiate themselves to their clients , '' says Terree Bowers , chief of the major-frauds section of the U.S. attorney 's office in Los Angeles . `` PRP VBZ RB JJ IN DT NNS TO VB NNS IN PRP CC PRP$ NNS TO VB PRP TO PRP$ NNS , '' VBZ NNP NNP , NN IN DT JJ NN IN DT NNP NN POS NN IN NNP NNP .
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`` We 've seen cases where salesmen will affect the accent of the region of the country they are calling . `` PRP VBP VBN NNS WRB NNS MD VB DT NN IN DT NN IN DT NN PRP VBP VBG .
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Anything to make a sale . '' NN TO VB DT NN . ''
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Experts say that whatever a person 's particular weak point , timing is crucial . NNS VBP IN WDT DT NN POS JJ JJ NN , NN VBZ JJ .
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People may be particularly vulnerable to flim-flam pitches when they are in the midst of a major upheaval in their lives . NNS MD VB RB JJ TO NN NNS WRB PRP VBP IN DT NN IN DT JJ NN IN PRP$ NNS .
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`` Sometimes when people are making big changes , retiring from their jobs , moving to a new area , they lose their bearings , '' says Maury Elvekrog , a licensed psychologist who is now an investment adviser and principal in Seger-Elvekrog Inc. , a Birmingham , Mich. , investment-counseling firm . `` RB WRB NNS VBP VBG JJ NNS , VBG IN PRP$ NNS , VBG TO DT JJ NN , PRP VBP PRP$ NNS , '' VBZ NNP NNP , DT VBN NN WP VBZ RB DT NN NN CC JJ IN NNP NNP , DT NNP , NNP , JJ NN .
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`` They may be susceptible to some song and dance if it hits them at the right time . '' `` PRP MD VB JJ TO DT NN CC NN IN PRP VBZ PRP IN DT JJ NN . ''
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They are obviously also more susceptible when they need money - retirees , for instance , trying to bolster their fixed income or parents fretting over how to pay for a child 's college expenses . PRP VBP RB RB RBR JJ WRB PRP VBP NN : NNS , IN NN , VBG TO VB PRP$ VBN NN CC NNS VBG IN WRB TO VB IN DT NN POS NN NNS .
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`` These people are n't necessarily stupid or naive . `` DT NNS VBP RB RB JJ CC JJ .
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Almost all of us in comparable circumstances might be victimized in some way , '' says Jerald Jellison , a psychology professor at the University of Southern California in Los Angeles . RB DT IN PRP IN JJ NNS MD VB VBN IN DT NN , '' VBZ NNP NNP , DT NN NN IN DT NNP IN NNP NNP IN NNP NNP .
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Nick Cortese thinks that 's what happened to him . NNP NNP VBZ DT VBZ WP VBD TO PRP .
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Mr. Cortese , a 33-year-old Delta Air Lines engineer , invested some $ 2,000 in penny stocks through a broker who promised quick returns . NNP NNP , DT NNP NNP NNP NNPS NN , VBD DT $ CD IN NN NNS IN DT NN WP VBD JJ NNS .
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`` We were saving up to buy a house , and my wife was pregnant , '' says Mr. Cortese . `` PRP VBD VBG VB TO VB DT NN , CC PRP$ NN VBD JJ , '' VBZ NNP NNP .
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`` It was just before the Christmas holidays , and I figured we could use some extra cash . '' `` PRP VBD RB IN DT NNP NNS , CC PRP VBD PRP MD VB DT JJ NN . ''
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The investment is worth about $ 130 today . DT NN VBZ JJ RB $ CD NN .
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`` Maybe it was just a vulnerable time , '' says Mr. Cortese . `` RB PRP VBD RB DT JJ NN , '' VBZ NNP NNP .
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`` Maybe the next day or even an hour later , I would n't have done it . '' `` RB DT JJ NN CC RB DT NN RB , PRP MD RB VB VBN PRP . ''
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Ms. Brannigan is a staff reporter in The Wall Street Journal 's Atlanta bureau . NNP NNP VBZ DT NN NN IN DT NNP NNP NNP POS NNP NN .
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Prices for seats on the New York Stock Exchange are recovering a bit after hitting a four-year low earlier this month . NNS IN NNS IN DT NNP NNP NNP NNP VBP VBG DT NN IN VBG DT JJ RB RBR DT NN .
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Two seats on the Big Board were sold yesterday for $ 455,000 , and then $ 500,000 . CD NNS IN DT NNP NNP VBD VBN NN IN $ CD , CC RB $ CD .
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The previous sale was $ 436,000 on Oct. 17 ; the last time prices were that low was November 1985 , when a seat sold for $ 425,000 . DT JJ NN VBD $ CD IN NNP CD : DT JJ NN NNS VBD IN NN VBD NNP CD , WRB DT NN VBN IN $ CD .
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Prices peaked at $ 1,150,000 in September 1987 . NNS VBD IN $ CD IN NNP CD .
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Seats are currently quoted at $ 430,000 bid and $ 525,000 asked . NNS VBP RB VBN IN $ CD NN CC $ CD VBD .
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FOX HUNTING HAS been defined as the unspeakable in pursuit of the inedible , but at least it 's exercise . NN NN VBZ VBN VBN IN DT JJ IN NN IN DT JJ , CC IN JJS PRP VBZ NN .
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At least it has a little dash . IN JJS PRP VBZ DT JJ NN .
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Most of us have to spend our time on pursuits that afford neither , drab duties rather than pleasures . JJS IN PRP VBP TO VB PRP$ NN IN NNS WDT VBP DT , JJ NNS RB IN NNS .
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Like trying to buy life insurance , for instance , an endeavor notably lacking in dash . IN VBG TO VB NN NN , IN NN , DT NN RB VBG IN NN .
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Call it the uninformed trudging after the incomprehensible . VB PRP DT JJ VBG IN DT NN .
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But sooner or later , most of us have to think about life insurance , just as we often have to think about having root-canal work . CC RBR CC RB , RBS IN PRP VBP TO VB IN NN NN , RB IN PRP RB VBP TO VB IN VBG NN NN .
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And my time has come . CC PRP$ NN VBZ VBN .
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I 'm 33 , married , no children , and employed in writing stories like this one . PRP VBP CD , VBN , DT NNS , CC VBD IN VBG NNS IN DT CD .
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In times past , life-insurance salesmen targeted heads of household , meaning men , but ours is a two-income family and accustomed to it . IN NNS JJ , NN NNS VBD NNS IN NN , NN NNS , CC PRP VBZ DT JJ NN CC VBN TO PRP .
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So if anything happened to me , I 'd want to leave behind enough so that my 33-year-old husband would be able to pay off the mortgage and some other debts -LRB- though not , I admit , enough to put any potential second wife in the lap of luxury -RRB- . RB IN NN VBD TO PRP , PRP MD VB TO VB IN RB RB IN PRP$ JJ NN MD VB JJ TO VB IN DT NN CC DT JJ NNS ( IN RB , PRP VBP , RB TO VB DT JJ JJ NN IN DT NN IN NN ) .
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Figuring that maybe $ 100,000 to $ 150,000 would do but having no idea of what kind of policy I wanted , I looked at the myriad products of a dozen companies -- and plunged into a jungle of gibberish . VBG IN RB $ CD TO $ CD MD VB CC VBG DT NN IN WP NN IN NN PRP VBD , PRP VBD IN DT JJ NNS IN DT NN NNS : CC VBD IN DT NN IN NN .
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Over the past decade or two , while I was thinking about fox hunting , the insurance industry has spawned an incredible number of products , variations on products , and variations on the variations . IN DT JJ NN CC CD , IN PRP VBD VBG IN NN NN , DT NN NN VBZ VBN DT JJ NN IN NNS , NNS IN NNS , CC NNS IN DT NNS .
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Besides term life and whole life -LRB- the old standbys -RRB- , we now have universal life , universal variable life , flexible adjustable universal life , policies with persistency bonuses , policies festooned with exotic riders , living benefit policies , and on and on . IN NN NN CC JJ NN ( DT JJ NNS ) , PRP RB VBP JJ NN , JJ JJ NN , JJ JJ JJ NN , NNS IN NN NNS , NNS VBN IN JJ NNS , VBG NN NNS , CC IN CC RB .
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What to do ? WP TO VB .
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First , generalize . RB , VB .
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Shorn of all their riders , special provisions , and other bells and whistles , insurance policies can still be grouped under two broad categories : so-called pure insurance , which amasses no cash value in the policy and pays off only upon death , and permanent insurance , which provides not only a death benefit but also a cash value in the policy that can be used in various ways while the insured is still alive . VBN IN DT PRP$ NNS , JJ NNS , CC JJ NNS CC NNS , NN NNS MD RB VB VBN IN CD JJ NNS : JJ JJ NN , WDT VBZ DT NN NN IN DT NN CC VBZ IN RB IN NN , CC JJ NN , WDT VBZ RB RB DT NN NN CC RB DT NN NN IN DT NN WDT MD VB VBN IN JJ NNS IN DT VBN VBZ RB JJ .
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If all you want is death-benefit coverage , pure insurance -- a term policy -- gives you maximum bang for your buck , within limits . IN DT PRP VBP VBZ JJ NN , JJ NN : DT NN NN : VBZ PRP JJ NN IN PRP$ NN , IN NNS .
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It 's much cheaper than permanent insurance bought at the same age . PRP VBZ RB JJR IN JJ NN VBD IN DT JJ NN .
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But `` term '' means just that ; the policy is written for a specific time period only and must be renewed when it expires . CC `` NN '' VBZ RB IN : DT NN VBZ VBN IN DT JJ NN NN RB CC MD VB VBN WRB PRP VBZ .
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It may also stipulate that the insured must pass another medical exam before renewal ; if you flunk -- which means you need insurance more than ever -- you may not be able to buy it . PRP MD RB VB IN DT VBN MD VB DT JJ NN IN NN : IN PRP VBP : WDT VBZ PRP VBP NN JJR IN RB : PRP MD RB VB JJ TO VB PRP .
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Even if you 're healthy and can renew , your premium will go up sharply because you 're that much older . RB IN PRP VBP JJ CC MD VB , PRP$ NN MD VB IN RB IN PRP VBP IN RB JJR .
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So term insurance may not be as cheap as it looks . RB VBP NN MD RB VB RB JJ IN PRP VBZ .
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There are all sorts of variations on term insurance : policies structured to pay off your mortgage debt , term riders tacked on to permanent insurance , and many others . EX VBP DT NNS IN NNS IN NN NN : NNS VBN TO VB IN PRP$ NN NN , NN NNS VBD IN TO JJ NN , CC JJ NNS .
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One variation that appealed to me at first was the `` Money Smart Term Life '' policy offered by Amex Life Insurance Co. , the American Express unit , to the parent company 's credit-card holders . CD NN WDT VBD TO PRP IN JJ VBD DT `` NNP NNP NNP NNP '' NN VBN IN NNP NNP NNP NNP , DT NNP NNP NN , TO DT NN NN POS NN NNS .
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Upon examination , however , I wondered whether the plan made a lot of sense . IN NN , RB , PRP VBD IN DT NN VBD DT NN IN NN .
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Amex said it would charge me $ 576 a year for $ 100,000 of coverage -- and would pay me back all the premiums I put in if I canceled the policy after 10 years . NNP VBD PRP MD VB PRP $ CD DT NN IN $ CD IN NN : CC MD VB PRP RB PDT DT NNS PRP VBP IN IN PRP VBD DT NN IN CD NNS .
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Sounds great -- or does it ? VBZ JJ : CC VBZ PRP .
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First , if I canceled , I 'd have no more insurance , a not insignificant consideration . RB , IN PRP VBD , PRP MD VB DT JJR NN , DT RB JJ NN .
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Second , the $ 5,760 I 'd get back would be much diminished in purchasing power by 10 years of inflation ; Amex , not I , would get the benefit of the investment income on my money , income that would have exceeded the inflation rate and thus given the company a real profit . JJ , DT $ CD PRP MD VB RB MD VB RB VBN IN VBG NN IN CD NNS IN NN : NNP , RB PRP , MD VB DT NN IN DT NN NN IN PRP$ NN , NN WDT MD VB VBN DT NN NN CC RB VBN DT NN DT JJ NN .
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Third and most important , Amex would charge me a far higher premium than other reputable companies would on a straight term policy for the same amount ; I 'd be paying so heavily just to have the option of getting my premiums back that I 'd almost have to cancel to make the whole thing worthwhile . NNP CC RBS JJ , NNP MD VB PRP DT RB JJR NN IN JJ JJ NNS MD IN DT JJ NN NN IN DT JJ NN : PRP MD VB VBG RB RB RB TO VB DT NN IN VBG PRP$ NNS RB IN PRP MD RB VB TO VB TO VB DT JJ NN JJ .
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That would be all right with Amex , which could then lock in its investment profit , but it does n't add up to a `` smart money '' move for me . DT MD VB DT NN IN NNP , WDT MD RB VB IN PRP$ NN NN , CC PRP VBZ RB VB IN TO DT `` JJ NN '' NN IN PRP .
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Which goes to show that the First Law applies in insurance as in anything else : There is no free lunch , there is only marketing . WDT VBZ TO VB IN DT NNP NNP VBZ IN NN IN IN NN RB : EX VBZ DT JJ NN , EX VBZ JJ NN .
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And the Second Law , unique to insurance ? CC DT NNP NNP , JJ TO NN .
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If I die early , I win -- a hollow victory , since I ca n't enjoy it -- and if I live long , the insurer wins . IN PRP VBP JJ , PRP VBP : DT JJ NN , IN PRP MD RB VB PRP : CC IN PRP VBP JJ , DT NN NNS .
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Always . RB .
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This is worth remembering when insurers and their salesmen try to sell you permanent insurance , the kind that amasses cash value . DT VBZ JJ NN WRB NNS CC PRP$ NNS VBP TO VB PRP JJ NN , DT NN WDT VBZ NN NN .
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The word `` death '' can not be escaped entirely by the industry , but salesmen dodge it wherever possible or cloak it in euphemisms , preferring to talk about `` savings '' and `` investment '' instead . DT NN `` NN '' MD RB VB VBN RB IN DT NN , CC NNS VBP PRP WRB JJ CC NN PRP IN NNS , VBG TO VB IN `` NNS '' CC `` NN '' RB .
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The implication is that your permanent-insurance policy is really some kind of CD or mutual-fund account with an added feature . DT NN VBZ IN PRP$ JJ NN VBZ RB DT NN IN NNP CC JJ NN IN DT VBN NN .
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That is gilding the lily . DT VBZ NN DT NN .
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The fact is that as a savings or investment vehicle , insurance generally runs a poor second to any direct investment you might make in the same things the insurance company is putting your money into . DT NN VBZ IN IN DT NNS CC NN NN , NN RB VBZ DT JJ JJ TO DT JJ NN PRP MD VB IN DT JJ NNS DT NN NN VBZ VBG PRP$ NN IN .
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That 's because you have to pay for the insurance portion of the policy and the effort required to sell and service the whole package . DT VBZ IN PRP VBP TO VB IN DT NN NN IN DT NN CC DT NN VBN TO VB CC VB DT JJ NN .
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Again , no free lunch . RB , DT JJ NN .
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This is reflected in a built-in mortality cost -- in effect , your share of the company 's estimated liability in paying off beneficiaries of people who had the effrontery to die while under its protection . DT VBZ VBN IN DT JJ NN NN : IN NN , PRP$ NN IN DT NN POS VBN NN IN VBG IN NNS IN NNS WP VBD DT NN TO VB IN IN PRP$ NN .
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And in most cases , a huge hunk of your premium in the initial year or two of the the policy is , in effect , paying the salesman 's commission as well ; investment returns on most policies are actually negative for several years , largely because of this . CC IN RBS NNS , DT JJ NN IN PRP$ NN IN DT JJ NN CC CD IN DT DT NN VBZ , IN NN , VBG DT NN POS NN IN RB : NN NNS IN RBS NNS VBP RB JJ IN JJ NNS , RB IN IN DT .
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So view permanent insurance for what it is -- a compromise between pure insurance and direct investment . RB VBP JJ NN IN WP PRP VBZ : DT NN IN JJ NN CC JJ NN .
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The simplest , most traditional form of permanent insurance is the straight whole life policy . DT JJS , RBS JJ NN IN JJ NN VBZ DT JJ JJ NN NN .
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You pay a set premium for a set amount of coverage , the company invests that premium in a portfolio of its choosing , and your cash value and dividends grow over the years . PRP VBP DT VBN NN IN DT VBN NN IN NN , DT NN VBZ DT NN IN DT NN IN PRP$ NN , CC PRP$ NN NN CC NNS VBP IN DT NNS .
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One newer wrinkle , so called single-premium life -LRB- you pay for the whole policy at once -RRB- , has been immensely popular in recent years for tax reasons ; the insured could extract cash value in the form of policy `` loans , '' and none of the proceeds were taxable even though they included gains on investment . CD JJR NN , RB VBN JJ NN ( PRP VBP IN DT JJ NN IN RB ) , VBZ VBN RB JJ IN JJ NNS IN NN NNS : DT VBN MD VB NN NN IN DT NN IN NN `` NNS , '' CC NN IN DT NNS VBD JJ RB IN PRP VBD NNS IN NN .
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Congress closed this loophole last year , or thought it did . NNP VBD DT NN JJ NN , CC VBD PRP VBD .
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However , Monarch Capital Corp. of Springfield , Mass. , has developed a `` combination plan '' of annuity and insurance coverage that it says does not violate the new regulations and that allows policy loans without tax consequences . RB , NNP NNP NNP IN NNP , NNP , VBZ VBN DT `` NN NN '' IN NN CC NN NN IN PRP VBZ VBZ RB VB DT JJ NNS CC DT VBZ NN NNS IN NN NNS .
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But the percentage of your cash reserve that you can borrow tax-free is very small . CC DT NN IN PRP$ NN NN IN PRP MD VB JJ VBZ RB JJ .
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I 'm not prepared in any case to put that much money into a policy immediately , so I look into the broad category called universal life . PRP VBP RB VBN IN DT NN TO VB IN JJ NN IN DT NN RB , IN PRP VBP IN DT JJ NN VBD JJ NN .
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Hugely popular , it is far more flexible than straight whole life . RB JJ , PRP VBZ RB RBR JJ IN JJ JJ NN .
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I can adjust the amount of insurance I want against the amount going into investment ; I can pay more or less than the so-called target premium in a given year ; and I can even skip payments if my cash reserves are enough to cover the insurance portion of the policy . PRP MD VB DT NN IN NN PRP VBP IN DT NN VBG IN NN : PRP MD VB JJR CC JJR IN DT JJ NN NN IN DT VBN NN : CC PRP MD RB VB NNS IN PRP$ NN NNS VBP RB TO VB DT NN NN IN DT NN .
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In looking at these and other policies , I learn to ask pointed questions about some of the assumptions built into `` policy illustrations '' -- the rows of numbers that show me the buildup of my cash values over the years . IN VBG IN DT CC JJ NNS , PRP VBP TO VB VBD NNS IN DT IN DT NNS VBN IN `` NN NNS '' : DT NNS IN VBZ DT NN PRP DT NN IN PRP$ NN NNS IN DT NNS .
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They commonly give two scenarios : One is based on interest rates that the company guarantees -LRB- usually 4 % to 4.5 % -RRB- and the other on the rate it is currently getting on investment , often 8.5 % or more . PRP RB VBP CD NNS : CD VBZ VBN IN NN NNS IN DT NN NNS ( RB CD NN TO CD NN ) CC DT NN IN DT NN PRP VBZ RB VBG IN NN , RB CD NN CC JJR .
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Projecting the latter over several decades , I find my cash buildup is impressive -- but can any high interest rate prevail for that long ? VBG DT NN IN JJ NNS , PRP VBP PRP$ NN NN VBZ JJ : CC MD DT JJ NN NN VB IN DT JJ .
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Not likely , I think . RB JJ , PRP VBP .
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Also , some policy illustrations assume that mortality costs will decline or that I will get some sort of dividend bonus after the 10th year . RB , DT NN NNS VBP IN NN NNS MD VB CC IN PRP MD VB DT NN IN NN NN IN DT JJ NN .
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These are not certain , either . DT VBP RB JJ , RB .
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Companies `` are n't comfortable playing these games , but they realize they 're under pressure to make their policies look good , '' says Timothy Pfiefer , an actuarial consultant at Tillinghast , a unit of Towers Perrin Co. , the big New York consulting firm . NNS `` VBP RB JJ VBG DT NNS , CC PRP VBP PRP VBP IN NN TO VB PRP$ NNS VBP JJ , '' VBZ NNP NNP , DT JJ NN IN NNP , DT NN IN NNP NNP NNP , DT JJ NNP NNP NN NN .
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Another factor to consider : Some of the companies currently earning very high yields are doing so through substantial investment in junk bonds , and you know how nervous the market has been about those lately . DT NN TO VB : DT IN DT NNS RB VBG RB JJ NNS VBP VBG RB IN JJ NN IN NN NNS , CC PRP VBP WRB JJ DT NN VBZ VBN IN DT RB .
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There are seemingly endless twists to universal life , and it pays to ask questions about all of them . EX VBP RB JJ NNS TO JJ NN , CC PRP VBZ TO VB NNS IN DT IN PRP .
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At a back-yard barbecue , for example , a friend boasts that she 'll only have to pay premiums on her John Hancock policy for seven years and that her death benefits will then be `` guaranteed . '' IN DT JJ NN , IN NN , DT NN VBZ IN PRP MD RB VB TO VB NNS IN PRP$ NNP NNP NN IN CD NNS CC IN PRP$ NN NNS MD RB VB `` VBN . ''
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I call her agent , David Dominici . PRP VBP PRP$ NN , NNP NNP .
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Yes , he says , premiums on such variable-rate coverage can be structured to `` vanish '' after a certain period -- but usually only if interest rates stay high enough to generate sufficient cash to cover the annual cost of insurance protection . UH , PRP VBZ , NNS IN JJ JJ NN MD VB VBN TO `` VBP '' IN DT JJ NN : CC RB RB IN NN NNS VBP JJ RB TO VB JJ NN TO VB DT JJ NN IN NN NN .
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If interest rates plunge , the insurer may be knocking on my door , asking for steeper premium payments to maintain the same amount of protection . IN NN NNS VBP , DT NN MD VB VBG IN PRP$ NN , VBG IN JJR NN NNS TO VB DT JJ NN IN NN .
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I do n't like the sound of that . PRP VBP RB IN DT NN IN DT .
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Some insurers have also started offering `` persistency bonuses , '' such as extra dividends or a marginally higher interest yield , if the policy is maintained for 10 years . DT NNS VBP RB VBN NN `` NN NNS , '' JJ IN JJ NNS CC DT RB JJR NN NN , IN DT NN VBZ VBN IN CD NNS .
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But Glenn Daily , a New York-based financial consultant , warns that many of these bonuses are `` just fantasies , '' because most are n't guaranteed by the companies . CC NNP NNP , DT NNP JJ JJ NN , VBZ IN NN IN DT NNS VBP `` RB NNS , '' IN RBS VBP RB VBN IN DT NNS .
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And the feature is so new , he adds , that no insurer has yet established a track record for actually making such payments . CC DT NN VBZ RB JJ , PRP VBZ , IN DT NN VBZ RB VBN DT NN NN IN RB VBG JJ NNS .
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So-called living-benefits provisions also merit a close inspection . JJ JJ NNS RB VBP DT NN NN .
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Offered by insurers that include Security-Connecticut Life Insurance Co. , Jackson National Life Insurance Co. , and National Travelers Life Insurance Co. , these policy riders let me tap a portion of my death benefits while I 'm still alive . NNP IN NNS WDT VBP NNP NNP NNP NNP , NNP NNP NNP NNP NNP , CC NNP NNP NNP NNP NNP , DT NN NNS VBP PRP VBP DT NN IN PRP$ NN NNS IN PRP VBP RB JJ .
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Some provisions would let me collect a percentage of the policy 's face value to pay for long-term care such as nursing-home stays ; others would allow payments for catastrophic illnesses and conditions such as cancer , heart attarcks , renal failure and kidney transplants . DT NNS MD VB PRP VB DT NN IN DT NN POS NN NN TO VB IN JJ NN JJ IN NN VBZ : NNS MD VB NNS IN JJ NNS CC NNS JJ IN NN , NN NNS , JJ NN CC NN NNS .
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But the catastrophic events for which the policyholder can collect are narrowly defined , vary from policy to policy , and generally permit use of only a small fraction of the face amount of insurance . CC DT JJ NNS IN WDT DT NN MD VB VBP RB VBN , VBP IN NN TO NN , CC RB VB NN IN RB DT JJ NN IN DT NN NN IN NN .
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Also , financial planners advising on insurance say that to their knowledge there has not yet been a tax ruling exempting these advance payments from taxes . RB , JJ NNS VBG IN NN VBP IN TO PRP$ NN EX VBZ RB RB VBN DT NN NN VBG DT NN NNS IN NNS .
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And considering the extra cost of such provisions , some figure that people interested in , say , paying for extended nursing-home care would be better off just buying a separate policy that provides it . CC VBG DT JJ NN IN JJ NNS , DT NN IN NNS JJ IN , VBP , VBG IN VBN NN NN MD VB JJR IN RB VBG DT JJ NN WDT VBZ PRP .
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I 'm more favorably impressed by `` no-load life , '' even though it turns out to be low-load life . PRP VBP RBR RB VBN IN `` JJ NN , '' RB IN PRP VBZ IN TO VB JJ NN .
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Insureres selling these policies market them directly to the public or otherwise do n't use commissioned salesmen ; there is still a load -- annual administrative fees and initial `` setup '' charges -- but I figure that the lack of commission and of `` surrender fees '' for dropping the policy early still saves me a lot . NNS VBG DT NNS NN PRP RB TO DT JJ CC RB VBP RB VB VBN NNS : EX VBZ RB DT NN : JJ JJ NNS CC JJ `` NN '' NNS : CC PRP VBP IN DT NN IN NN CC IN `` NN NNS '' IN VBG DT NN JJ RB VBZ PRP DT NN .
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I compared one universal policy for $ 130,000 face amount from such an insurer , American Life Insurance Corp. of Lincoln , Neb. , with a similar offering from Equitable Life Assurance Society of the U.S. , which operates through 11,000 commissioned salesmen . PRP VBD CD JJ NN IN $ CD NN NN IN JJ DT NN , NNP NNP NNP NNP IN NNP , NNP , IN DT JJ NN IN NNP NNP NNP NNP IN DT NNP , WDT VBZ IN CD VBN NNS .
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After one year I could walk away from the Ameritas policy with $ 792 , but Id get only $ 14 from the Equitable . IN CD NN PRP MD VB RB IN DT NNP NN IN $ CD , CC NN VB RB $ CD IN DT NNP .
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The difference is magnified by time , too . DT NN VBZ VBN IN NN , RB .
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At age 65 , when I 'd stop paying premiums , the Ameritas offering would have a projected cash value $ 14,000 higher than the other , even though the Equitable 's policy illustration assumed a fractionally higher interest rate . IN NN CD , WRB PRP MD VB VBG NNS , DT NNP NN MD VB DT VBN NN NN $ CD JJR IN DT NN , RB IN DT NNP POS NN NN VBD DT RB JJR NN NN .
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Did I buy it ? VBD PRP VBP PRP .
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Well , not yet . UH , RB RB .
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I 'm thinking about using the $ 871 annual premium to finance a trip to Paris first . PRP VBP VBG IN VBG DT $ CD JJ NN TO VB DT NN TO NNP JJ .
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A person can do some heavy thinking about insurance there -- and shop for something more exciting while she 's doing it . DT NN MD VB DT JJ NN IN NN EX : CC NN IN NN RBR JJ IN PRP VBZ VBG PRP .
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Rorer Group Inc. will report that third-quarter profit rose more than 15 % from a year earlier , though the gain is wholly due to asset sales , Robert Cawthorn , chairman , president and chief executive officer , said . NNP NNP NNP MD VB IN JJ NN VBD JJR IN CD NN IN DT NN RBR , IN DT NN VBZ RB JJ TO NN NNS , NNP NNP , NN , NN CC JJ JJ NN , VBD .
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His projection indicates profit in the latest quarter of more than $ 17.4 million , or 55 cents a share , compared with $ 15.2 million , or 48 cents a share , a year ago . PRP$ NN VBZ NN IN DT JJS NN IN JJR IN $ CD CD , CC NN NNS DT NN , VBN IN $ CD CD , CC CD NNS DT NN , DT NN RB .
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Mr. Cawthorn said in an interview that sales will show an increase from a year ago of `` somewhat less than 10 % . '' NNP NNP VBD IN DT NN IN NNS MD VB DT NN IN DT NN RB IN `` RB JJR IN CD NN . ''
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Through the first six months of 1989 , sales had grown about 12 % from the year-earlier period . IN DT JJ CD NNS IN CD , NNS VBD VBN IN CD NN IN DT JJ NN .
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Growth of 10 % would make sales for the latest quarter $ 269 million , compared with $ 244.6 million a year ago . NN IN CD NN MD VB NNS IN DT JJS NN $ CD CD , VBN IN $ CD CD DT NN RB .
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Mr. Cawthorn said the profit growth in the latest quarter was due to the sale of two Rorer drugs . NNP NNP VBD DT NN NN IN DT JJS NN VBD JJ TO DT NN IN CD NNP NNS .
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Asilone , an antacid , was sold to Boots PLC , London . NNP , DT NN , VBD VBN TO NNP NNP , NNP .
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Thrombinar , a drug used to stanch bleeding , was sold to Jones Medical Industries Inc. , St. Louis . NNP , DT NN VBN TO VB VBG , VBD VBN TO NNP NNP NNP NNP , NNP NNP .
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He said Rorer sold the drugs for `` nice prices '' and will record a combined , pretax gain on the sales of $ 20 million . PRP VBD NNP VBD DT NNS IN `` JJ NNS '' CC MD VB DT VBN , JJ NN IN DT NNS IN $ CD CD .
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As the gain from the sales indicates , operating profit was `` significantly '' below the year-earlier level , Mr. Cawthorn said . IN DT NN IN DT NNS VBZ , VBG NN VBD `` RB '' IN DT JJ NN , NNP NNP VBD .
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Rorer in July had projected lower third-quarter operating profit but higher profit for all of 1989 . NNP IN NNP VBD VBN JJR JJ NN NN CC JJR NN IN DT IN CD .
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He said the company is still looking for `` a strong fourth quarter in all areas -- sales , operating income and net income . '' PRP VBD DT NN VBZ RB VBG IN `` DT JJ JJ NN IN DT NNS : NNS , VBG NN CC JJ NN . ''
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Mr. Cawthorn attributed the decline in third-quarter operating profit to the stronger dollar , which reduces the value of overseas profit when it is translated into dollars ; to accelerated buying of Rorer products in the second quarter because of a then-pending July 1 price increase , and to higher marketing expenses for Rorer 's Maalox antacid , whose sales and market share in the U.S. had slipped in the first half of 1989 . NNP NNP VBD DT NN IN JJ NN NN TO DT JJR NN , WDT VBZ DT NN IN JJ NN WRB PRP VBZ VBN IN NNS : TO VBN VBG IN NNP NNS IN DT JJ NN IN IN DT JJ NNP CD NN NN , CC TO JJR NN NNS IN NNP POS NNP NN , WP$ NNS CC NN NN IN DT NNP VBD VBN IN DT JJ NN IN CD .
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He said Rorer opted to sell Asilone and Thrombinar to raise revenue that would `` kick start '' its increased marketing efforts behind Maalox , still its top-selling product with about $ 215 million in world-wide sales in 1988 . PRP VBD NNP VBD TO VB NNP CC NNP TO VB NN WDT MD `` VB NN '' PRP$ VBN NN NNS IN NNP , RB PRP$ JJ NN IN RB $ CD CD IN JJ NNS IN CD .
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`` We had underfunded Maalox for a year , '' he said , because the company was concentrating on research and development and promoting other drugs . `` PRP VBD VBN NNP IN DT NN , '' PRP VBD , IN DT NN VBD VBG IN NN CC NN CC VBG JJ NNS .
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He said Rorer will spend $ 15 million to $ 20 million more on Maalox advertising and promotion in the second half of 1989 than in the year-earlier period . PRP VBD NNP MD VB $ CD CD TO $ CD CD JJR IN NNP NN CC NN IN DT JJ NN IN CD IN IN DT JJ NN .
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A `` big chunk '' of that additional spending came in the third quarter , he said . DT `` JJ NN '' IN DT JJ NN VBD IN DT JJ NN , PRP VBD .
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Hoechst AG said it will stop producing fertilizer in 1990 because of continued losses and a bleak outlook . NNP NNP VBD PRP MD VB VBG NN IN CD IN IN VBN NNS CC DT JJ NN .
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The West German chemical concern said it will close the last remaining fertilizer plant in Oberhausen in the fall of next year . DT JJ JJ NN NN VBD PRP MD VB DT JJ VBG NN NN IN NNP IN DT NN IN JJ NN .
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Hoechst said the fertilizer market faces overcapacity in Western Europe , rising imports from East bloc countries and overseas , and declining demand . NNP VBD DT NN NN VBZ NN IN NNP NNP , VBG NNS IN NNP NN NNS CC JJ , CC VBG NN .
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HomeFed Corp. said its main subsidiary , Home Federal Savings & Loan , converted from a federal savings and loan to a federal savings bank and changed its name to HomeFed Bank . NNP NNP VBD PRP$ JJ NN , NNP NNP NNP CC NNP , VBN IN DT JJ NNS CC NN TO DT JJ NNS VBP CC VBN PRP$ NN TO NNP NNP .
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The federal Office of Thrift Supervision approved the conversion last Friday , HomeFed said . DT JJ NNP IN NNP NNP VBD DT NN JJ NNP , NNP VBD .
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The change in charter does n't alter the federal insurance of deposits , federal regulatory powers or company operations , a spokesman said . DT NN IN NN VBZ RB VB DT JJ NN IN NNS , JJ JJ NNS CC NN NNS , DT NN VBD .
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It was the second anniversary of the 1987 crash , but this time it was different . PRP VBD DT JJ NN IN DT CD NN , CC DT NN PRP VBD JJ .
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Stocks rallied on good earnings reports and on data that showed less inflation than expected . NNS VBD IN JJ NNS NNS CC IN NNS WDT VBD JJR NN IN VBN .
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Blue chips led the march up in heavy trading . JJ NNS VBD DT NN IN IN JJ NN .
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The Dow Jones Industrial Average rose 39.55 points to 2683.20 . DT NNP NNP NNP NNP VBD CD NNS TO CD .
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The 30 industrials led the market higher from the opening bell as foreign buyers stepped in . DT CD NNS VBD DT NN JJR IN DT NN NN IN JJ NNS VBD RB .
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By afternoon , the broader market joined the advance in full strength . IN NN , DT JJR NN VBD DT NN IN JJ NN .
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Standard & Poor 's 500-stock Index rose 5.37 to 347.13 and the Nasdaq composite index jumped 7.52 to 470.80 . NNP CC NNP POS NNP NNP VBD CD TO CD CC DT NNP JJ NN VBD CD TO CD .
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New York Stock Exchange volume swelled to 198,120,000 shares . NNP NNP NNP NNP NN VBD TO CD NNS .
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The industrials were up about 60 points in the afternoon , but cautious investors took profits before the close . DT NNS VBD IN IN CD NNS IN DT NN , CC JJ NNS VBD NNS IN DT NN .
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Traders said a variety of factors triggered the rally . NNS VBD DT NN IN NNS VBD DT NN .
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The consumer price index rose 0.2 % in September , while many economists were looking for a 0.4 % increase . DT NN NN NN VBD CD NN IN NNP , IN JJ NNS VBD VBG IN DT CD NN NN .
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Stock-index arbitrage buy programs -- in which traders buy stock against offsetting positions in futures to lock in price differences -- helped the rally 's momentum . NN NN NN NNS : IN WDT NNS VBP NN IN VBG NNS IN NNS TO VB IN NN NNS : VBD DT NN POS NN .
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The euphoria was such that investors responded to good earnings reports of companies such as American Express , while ignoring the disappointing profits of companies such as Caterpillar , analysts said . DT NN VBD JJ IN NNS VBD TO JJ NNS NNS IN NNS JJ IN NNP NNP , IN VBG DT JJ NNS IN NNS JJ IN NNP , NNS VBD .
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Stock-index arbitrage trading was a minor influence in yesterday 's rally , traders said . NN NN NN VBD DT JJ NN IN NN POS NN , NNS VBD .
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Institutional buyers were the main force pushing blue chips higher . JJ NNS VBD DT JJ NN VBG JJ NNS JJR .
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To the amazement of some traders , takeover stocks were climbing again . TO DT NN IN DT NNS , NN NNS VBD VBG RB .
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Hilton rose 2 7\/8 to 100 , for example . NNP VBD CD CD TO CD , IN NN .
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Last Friday , takeover traders spilled out of Hilton , knocking the stock down 21 1\/2 to 85 . NNP NNP , NN NNS VBD IN IN NNP , VBG DT NN RB CD CD TO CD .
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Among other stocks involved in restructurings or rumored to be so : Holiday Corp. gained 1 7\/8 to 73 and Honeywell rose 2 7\/8 to 81 1\/2 . IN JJ NNS VBN IN NNS CC VBN TO VB RB : NNP NNP VBD CD CD TO CD CC NNP VBD CD CD TO CD CD .
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One floor trader noted in astonishment that nobody seemed to mind the news that British Airways is n't making a special effort to revive the UAL buy-out . CD NN NN VBD IN NN DT NN VBD TO VB DT NN IN JJ NNPS VBZ RB VBG DT JJ NN TO VB DT NNP NN .
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The announcement of the buy-out 's troubles triggered the market 's nose dive a week ago . DT NN IN DT NN POS NNS VBD DT NN POS NN NN DT NN RB .
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Takeover enthusiasm may have been renewed when an investor group disclosed yesterday that it had obtained all the financing required to complete its $ 1.6 billion leveraged buy-out of American Medical International . NN NN MD VB VBN VBN WRB DT NN NN VBD NN IN PRP VBD VBN PDT DT NN VBN TO VB PRP$ $ CD CD JJ NN IN NNP NNP NNP .
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`` That 's put some oomph back into this market , '' said Peter VandenBerg , a vice president of equity trading at Shearson Lehman Hutton . `` DT VBZ NN DT NN RB IN DT NN , '' VBD NNP NNP , DT NN NN IN NN NN IN NNP NNP NNP .
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But some traders thought there was less to the rally than met the eye . CC DT NNS VBD EX VBD JJR TO DT NN IN VBN DT NN .
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`` There is no strength behind this rally , '' asserted Chung Lew , head trader at Kleinwort Benson North America . `` EX VBZ DT NN IN DT NN , '' VBD NNP NNP , NN NN IN NNP NNP NNP NNP .
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`` It 's traders squaring positions . `` PRP VBZ NNS VBG NNS .
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It 's not good ; the market is setting up for another fall . '' PRP VBZ RB JJ : DT NN VBZ VBG IN IN DT NN . ''
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Indeed , many traders said that uncertainty about today 's monthly expiration of stocks-index futures and options , and options on individual stocks , prompted a lot of buying by speculative traders who were unwinding positions that were bets on declining stock prices . RB , JJ NNS VBD DT NN IN NN POS JJ NN IN JJ NNS CC NNS , CC NNS IN JJ NNS , VBD DT NN IN VBG IN JJ NNS WP VBD NN NNS WDT VBD NNS IN VBG NN NNS .
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The number of outstanding contracts in the October Major Market Index jumped from 5,273 on Friday to 9,023 on Monday . DT NN IN JJ NNS IN DT NNP NNP NNP NNP VBD IN CD IN NNP TO CD IN NNP .
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The MMI is a 20-stock index that mimics the Dow Jones Industrial Average . DT NNP VBZ DT JJ NN IN VBZ DT NNP NNP NNP NNP .
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Outstanding contracts are those that remain to be liquidated . JJ NNS VBP DT WDT VBP TO VB VBN .
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By Wednesday , the outstanding October contracts amounted to 8,524 , representing about $ 1.13 billion in stock , noted Donald Selkin , head of stock-index futures research at Prudential-Bache Securities , who expects a volatile expiration today . IN NNP , DT JJ NNP NNS VBD TO CD , VBG RB $ CD CD IN NN , VBD NNP NNP , NN IN NN NNS VBP IN NNP NNP , WP VBZ DT JJ NN NN .
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`` There has been a tremendous increase '' in MMI positions , Mr. Selkin said . `` EX VBZ VBN DT JJ NN '' IN NNP NNS , NNP NNP VBD .
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Consumer stocks once again set the pace for blue-chip issues . NN NNS RB RB VBN DT NN IN JJ NNS .
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Philip Morris added 1 1\/8 to 44 1\/2 in Big Board composite trading of 3.7 million shares , Coca-Cola Co. gained 2 3\/8 to 70 3\/8 , Merck gained 1 3\/8 to 77 3\/8 and American Telephone & Telegraph advanced 7\/8 to 43 3\/8 on 2.5 million shares . NNP NNP VBD CD CD TO CD CD IN NNP NNP JJ NN IN CD CD NNS , NNP NNP VBD CD CD TO CD CD , NNP VBD CD CD TO CD CD CC NNP NNP CC NNP VBD CD TO CD CD IN CD CD NNS .
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American Medical jumped 1 7\/8 to 23 5\/8 . NNP NNP VBD CD CD TO CD CD .
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IMA Acquisition , an investor group that includes First Boston and the Pritzker family of Chicago , said Chemical Bank had made arrangements for 23 other banks to provide $ 509 million in bank financing for the buy-out offer . NNP NNP , DT NN NN WDT VBZ NNP NNP CC DT NNP NN IN NNP , VBD NNP NNP VBD VBN NNS IN CD JJ NNS TO VB $ CD CD IN NN NN IN DT NN NN .
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Chemical and six other banks , along with First Boston , are providing the rest of the $ 1.6 billion . NNP CC CD JJ NNS , IN IN NNP NNP , VBP VBG DT NN IN DT $ CD CD .
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Elsewhere on the takeover front , Time Warner advanced 2 5\/8 to 136 5\/8 and Warner Communications tacked on 7\/8 to 63 7\/8 . RB IN DT NN NN , NNP NNP VBD CD CD TO CD CD CC NNP NNP VBD IN CD TO CD CD .
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The Delaware Supreme Court affirmed a ruling that barred Chris-Craft Industries from voting its Warner preferred stock as a separate class in deciding on the companies ' proposed merger . DT NNP NNP NNP VBD DT NN WDT VBD NNP NNPS IN VBG PRP$ NNP JJ NN IN DT JJ NN IN VBG IN DT NNS POS VBN NN .
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Paramount Communications climbed 1 1\/4 to 58 1\/2 and MCA rose 1 1\/2 to 64 ; both media companies have long been mentioned as potential acquisition candidates . NNP NNPS VBD CD CD TO CD CD CC NNP VBD CD CD TO CD : DT NNS NNS VBP RB VBN VBN IN JJ NN NNS .
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Among other actual and rumored targets , Woolworth rose 1 1\/4 to 60 1\/2 , Upjohn went up 1 1\/8 to 39 3\/4 , Armstrong World Industries gained 1 to 40 1\/8 and Kollmorgen rose 3\/4 to 13 7\/8 . IN JJ JJ CC VBN NNS , NNP VBD CD CD TO CD CD , NNP VBD IN CD CD TO CD CD , NNP NNP NNPS VBD CD TO CD CD CC NNP VBD CD TO CD CD .
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In addition : -- Soo Line jumped 2 3\/4 to 20 1\/4 , above the $ 19.50 a share that Canadian Pacific offered for the company in a takeover proposal . IN NN : : NNP NNP VBD CD CD TO CD CD , IN DT $ CD DT NN IN NNP NNP VBD IN DT NN IN DT NN NN .
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-- Xtra gained 1 1\/8 to 27 1\/8 . : NNP VBD CD CD TO CD CD .
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Investor Robert M. Gintel , who owns a 4.7 % stake in the company , said he plans a proxy fight for control of its board . NNP NNP NNP NNP , WP VBZ DT CD NN NN IN DT NN , VBD PRP VBZ DT NN NN IN NN IN PRP$ NN .
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-- Golden Nugget rose 2 to 28 1\/4 . : NNP NNP VBD CD TO CD CD .
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Its board approved the repurchase of as many as three million common shares , or about 17 % of its shares outstanding . PRP$ NN VBD DT NN IN RB JJ IN CD CD JJ NNS , CC IN CD NN IN PRP$ NNS JJ .
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Buying interest also resurfaced in the technology sector , including International Business Machines , whose board approved a $ 1 billion increase in its stock buy-back program . VBG NN RB VBD IN DT NN NN , VBG NNP NNP NNPS , WP$ NN VBD DT $ CD CD NN IN PRP$ NN NN NN .
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IBM rose 2 3\/8 to 104 1\/8 as 2.2 million shares changed hands . NNP VBD CD CD TO CD CD IN CD CD NNS VBD NNS .
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Compaq Computer soared 4 5\/8 to 111 1\/8 on 1.8 million shares in response to the company 's announcement of plans to introduce several products next month . NNP NNP VBD CD CD TO CD CD IN CD CD NNS IN NN TO DT NN POS NN IN NNS TO VB JJ NNS JJ NN .
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Digital Equipment gained 1 3\/8 to 89 3\/4 despite reporting earnings for the September quarter that were on the low end of expectations . NNP NNP VBD CD CD TO CD CD IN VBG NNS IN DT NNP NN WDT VBD IN DT JJ NN IN NNS .
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Among other technology issues , Cray Research rose 1 5\/8 to 37 , Hewlett-Packard added 1 1\/4 to 50 1\/4 , Tandem Computers rallied 1 1\/8 to 25 3\/4 , Data General rose 3\/4 to 14 1\/2 and Motorola gained 2 3\/8 to 59 1\/4 . IN JJ NN NNS , NNP NNP VBD CD CD TO CD , NNP VBD CD CD TO CD CD , NNP NNPS VBD CD CD TO CD CD , NNP NNP VBD CD TO CD CD CC NNP VBD CD CD TO CD CD .
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On the other hand , Symbol Technologies dropped 1 1\/4 to 18 1\/2 after Shearson Lehman Hutton lowered its short-term investment rating on the stock and its 1989 earnings estimate , and Commodore International fell 7\/8 to 8 after the company said it expects to post a loss for the September quarter . IN DT JJ NN , NNP NNP VBD CD CD TO CD CD IN NNP NNP NNP VBD PRP$ JJ NN NN IN DT NN CC PRP$ CD NNS NN , CC NNP NNP VBD CD TO CD IN DT NN VBD PRP VBZ TO VB DT NN IN DT NNP NN .
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Insurance stocks continued to climb on expectations that premium rates will rise in the aftermath of the earthquake in the San Francisco area . NN NNS VBD TO VB IN NNS IN NN NNS MD VB IN DT NN IN DT NN IN DT NNP NNP NN .
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American International Group climbed 4 to 106 5\/8 , General Re rose 3 1\/8 to 89 5\/8 , Kemper added 2 1\/2 to 48 , AON went up 1 3\/8 to 36 and Chubb rose 1 1\/4 to 82 1\/4 . NNP NNP NNP VBD CD TO CD CD , NNP NNP VBD CD CD TO CD CD , NNP VBD CD CD TO CD , NNP VBD IN CD CD TO CD CC NNP VBD CD CD TO CD CD .
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Stocks of major toy makers rallied in the wake of strong third-quarter earnings reports . NNS IN JJ NN NNS VBD IN DT NN IN JJ JJ NNS NNS .
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Mattel added 1 1\/4 to 19 5\/8 , Tonka firmed 1 to 18 1\/2 and Lewis Galoob Toys rose 7\/8 to 13 5\/8 on the Big Board , while Hasbro gained 1 to 21 7\/8 on the American Stock Exchange . NNP VBD CD CD TO CD CD , NNP VBD CD TO CD CD CC NNP NNP NNPS VBD CD TO CD CD IN DT NNP NNP , IN NNP VBD CD TO CD CD IN DT NNP NNP NNP .
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Capital Cities-ABC surged 42 5\/8 to 560 . NNP NNP VBD CD CD TO CD .
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Kidder Peabody raised its investment rating on the stock and its earnings estimates for 1989 and 1990 , based on optimism that the company 's ABC television network will continue to fare well in the ratings . NNP NNP VBD PRP$ NN NN IN DT NN CC PRP$ NNS NNS IN CD CC CD , VBN IN NN IN DT NN POS NNP NN NN MD VB TO VB RB IN DT NNS .
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Dun & Bradstreet lost 1 7\/8 to 51 7\/8 on 1.8 million shares . NNP CC NNP VBD CD CD TO CD CD IN CD CD NNS .
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Merrill Lynch lowered its short-term rating on the stock and its estimate of 1990 earnings , citing a sales slowdown in the company 's credit-rating business . NNP NNP VBD PRP$ JJ NN IN DT NN CC PRP$ NN IN CD NNS , VBG DT NNS NN IN DT NN POS JJ NN .
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Pinnacle West Capital , which suspended its common-stock dividend indefinitely and reported a 91 % decline in third-quarter earnings , fell 5\/8 to 11 3\/8 . NNP NNP NNP , WDT VBD PRP$ JJ NN RB CC VBD DT CD NN NN IN JJ NNS , VBD CD TO CD CD .
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The Amex Market Value Index recorded its sharpest gain of the year by climbing 4.74 to 382.81 . DT NNP NNP NNP NNP VBD PRP$ JJS NN IN DT NN IN VBG CD TO CD .
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Volume totaled 14,580,000 shares . NN VBD CD NNS .
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B.A.T Industries , the most active Amex issue , rose 3\/8 to 12 3\/8 . NNP NNPS , DT RBS JJ NNP NN , VBD CD TO CD CD .
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The company received shareholder approval for its restructuring plan , designed to fend off a hostile takeover bid from a group headed by financier Sir James Goldsmith . DT NN VBD NN NN IN PRP$ NN NN , VBN TO VB IN DT JJ NN NN IN DT NN VBN IN NN NNP NNP NNP .
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Chambers Development Class A jumped 3 1\/8 to 37 1\/8 and Class B rose 2 5\/8 to 37 1\/4 . NNP NNP NNP DT VBD CD CD TO CD CD CC NNP NNP VBD CD CD TO CD CD .
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The company said six officers are buying a total of $ 1.5 million of its stock . DT NN VBD CD NNS VBP VBG DT NN IN $ CD CD IN PRP$ NN .
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TRC Cos. , the target of an investigation by the U.S. inspector general , dropped 2 to 10 3\/4 . NNP NNP , DT NN IN DT NN IN DT NNP NN JJ , VBD CD TO CD CD .
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The probe involves testing procedures used on certain government contracts by the company 's Metatrace unit . DT NN VBZ NN NNS VBN IN JJ NN NNS IN DT NN POS NNP NN .
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Avondale Industries Inc. , New Orleans , received a $ 23 million contract from the Navy to enlarge by 50 % the capacity of an auxiliary oiler . NNP NNP NNP , NNP NNP , VBD DT $ CD CD NN IN DT NNP TO VB IN CD NN DT NN IN DT JJ NN .
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The award results from the Navy 's exercising of an option in an earlier contract it awarded Avondale . DT NN NNS IN DT NNP POS VBG IN DT NN IN DT JJR NN PRP VBD NNP .
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Richard J. Pinola was elected to the board of this personnel consulting concern , increasing its size to nine members . NNP NNP NNP VBD VBN TO DT NN IN DT NNS NN NN , VBG PRP$ NN TO CD NNS .
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Mr. Pinola is president and chief operating officer of Penn Mutual Life Insurance Co . NNP NNP VBZ NN CC JJ VBG NN IN NNP NNP NNP NNP NNP .
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The Senate rejected a constitutional amendment that President Bush sought to protect the U.S. flag from desecration . DT NNP VBD DT JJ NN IN NNP NNP VBD TO VB DT NNP NN IN NN .
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The 51-48 roll call fell well short of the two-thirds majority needed to approve changes to the Constitution . DT JJ NN NN VBD JJ NN IN DT NNS NN VBN TO VB NNS TO DT NNP .
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The vote , in which 11 GOP lawmakers voted against Mr. Bush 's position , was a victory for Democratic leaders , who opposed the amendment as an intrusion on the Bill of Rights . DT NN , IN WDT CD NNP NNS VBD IN NNP NNP POS NN , VBD DT NN IN JJ NNS , WP VBD DT NN IN DT NN IN DT NNP IN NNP .
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`` We can support the American flag without changing the American Constitution , '' said Senate Majority Leader George Mitchell of Maine . `` PRP MD VB DT JJ NN IN VBG DT NNP NNP , '' VBD NNP NNP NNP NNP NNP IN NNP .
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In order to defuse pressure for an amendment , Mr. Mitchell and House Speaker Thomas Foley -LRB- D. , Wash . -RRB- had arranged for lawmakers to pass a statute barring flag desecration before voting on the constitutional change . IN NN TO VB NN IN DT NN , NNP NNP CC NNP NNP NNP NNP ( NNP , NNP . ) VBD VBN IN NNS TO VB DT NN VBG NN NN IN NN IN DT JJ NN .
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Mr. Bush said he would allow the bill to become law without his signature , because he said only a constitutional amendment can protect the flag adequately . NNP NNP VBD PRP MD VB DT NN TO VB NN IN PRP$ NN , IN PRP VBD RB DT JJ NN MD VB DT NN RB .
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In June , the Supreme Court threw out the conviction of a Texas man who set a flag afire during a 1984 demonstration , saying he was `` engaging in political expression '' that is protected by the First Amendment . IN NNP , DT NNP NNP VBD RP IN NN IN DT NNP NN WP VBD DT NN RB IN DT CD NN , VBG PRP VBD `` VBG IN JJ NN '' WDT VBZ VBN IN DT NNP NNP .
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If you think you have stress-related problems on the job , there 's good news and bad news . IN PRP VBP PRP VBP JJ NNS IN DT NN , EX VBZ JJ NN CC JJ NN .
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You 're probably right , and you are n't alone . PRP VBP RB NN , CC PRP VBP RB RB .
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A new Gallup Poll study commissioned by the New York Business Group on Health , found that a full 25 % of the work force at companies may suffer from anxiety disorders or a stress-related illness , with about 13 % suffering from depression . DT JJ NNP NNP NN VBN IN DT NNP NNP NNP NNP IN NNP , VBD IN DT JJ CD NN IN DT NN NN IN NNS MD VB IN NN NNS CC DT JJ NN , IN IN CD NN VBG IN NN .
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The study surveyed a national group of medical directors , personnel managers and employee assistance program directors about their perceptions of these problems in their companies . DT NN VBD DT JJ NN IN JJ NNS , NNS NNS CC NN NN NN NNS IN PRP$ NNS IN DT NNS IN PRP$ NNS .
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It is one of a series of studies on health commissioned by the New York Business Group , a non-profit organization with about 300 members . PRP VBZ CD IN DT NN IN NNS IN NN VBN IN DT NNP NNP NNP NNP , DT JJ NN IN IN CD NNS .
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The stress study was undertaken because problems related to stress `` are much more prevalent than they seem , '' said Leon J. Warshaw , executive director of the business group . DT NN NN VBD VBN IN NNS VBN TO VB `` VBP RB RBR JJ IN PRP VBP , '' VBD NNP NNP NNP , JJ NN IN DT NN NN .
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In presenting the study late last week , Dr. Warshaw estimated the cost of these types of disorders to business is substantial . IN VBG DT NN JJ JJ NN , NNP NNP VBD DT NN IN DT NNS IN NNS TO NN VBZ JJ .
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Occupational disability related to anxiety , depression and stress costs about $ 8,000 a case in terms of worker 's compensation . JJ NN VBN TO NN , NN CC NN NNS RB $ CD DT NN IN NNS IN NN POS NN .
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In terms of days lost on the job , the study estimated that each affected employee loses about 16 work days a year because of stress , anxiety or depression . IN NNS IN NNS VBD IN DT NN , DT NN VBN IN DT VBN NN VBZ IN CD NN NNS DT NN IN IN NN , NN CC NN .
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He added that the cost for stress-related compensation claims is about twice the average for all injury claims . PRP VBD IN DT NN IN JJ NN NNS VBZ IN RB DT NN IN DT NN NNS .
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`` We hope to sensitize employers '' to recognize the problems so they can do something about them , Dr. Warshaw said . `` PRP VBP TO VB NNS '' TO VB DT NNS IN PRP MD VB NN IN PRP , NNP NNP VBD .
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Early intervention into these types of problems can apparently save businesses long-term expense associated with hospitalization , which sometimes results when these problems go untreated for too long . JJ NN IN DT NNS IN NNS MD RB VB NNS JJ NN VBN IN NN , WDT RB VBZ WRB DT NNS VBP JJ IN RB JJ .
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Even the courts are beginning to recognize the link between jobs and stress-related disorders in compensation cases , according to a survey by the National Council on Compensation Insurance . RB DT NNS VBP VBG TO VB DT NN IN NNS CC JJ NNS IN NN NNS , VBG TO DT NN IN DT NNP NNP IN NNP NNP .
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But although 56 % of the respondents in the study indicated that mental-health problems were fairly pervasive in the workplace , there is still a social stigma associated with people seeking help . CC IN CD NN IN DT NNS IN DT NN VBD IN JJ NNS VBD RB JJ IN DT NN , EX VBZ RB DT JJ NN VBN IN NNS VBG VB .
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The disorders , which 20 years ago struck middle-age and older people , `` now strike people at the height of productivity , '' says Robert M.A. Hirschfeld , of the National Institute of Mental Health , who spoke at the presentation of the study 's findings . DT NNS , WDT CD NNS RB VBD JJ CC JJR NNS , `` JJ NN NNS IN DT NN IN NN , '' VBZ NNP NNP NNP , IN DT NNP NNP IN NNP NNP , WP VBD IN DT NN IN DT NN POS NNS .
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The poll showed that company size had a bearing on a manager 's view of the problem , with 65 % of those in companies of more than 15,000 employees saying stress-related problems were `` fairly pervasive '' and 55 % of those in companies with fewer than 4,000 employees agreeing . DT NN VBD DT NN NN VBD DT NN IN DT NN POS NN IN DT NN , IN CD NN IN DT NN NNS IN JJR IN CD NNS VBG JJ NNS VBD `` RB JJ '' CC NN NN IN DT NN NNS IN JJR IN CD NNS VBG .
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The poll also noted fear of a takeover as a stress-producing event in larger companies . DT NN RB VBD NN IN DT NN IN DT JJ NN IN JJR NNS .
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More than eight in 10 respondents reported such a stress-provoking situation in their company . RBR IN CD IN CD NNS VBD JJ DT JJ NN IN PRP$ NN .
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Mid-sized companies were most affected by talk of layoffs or plant closings . JJ NNS VBD RBS VBN IN NN IN NNS CC NN NNS .
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The study , which received funding from Upjohn Co. , which makes several drugs to treat stress-related illnesses , also found 47 % of the managers said stress , anxiety and depression contribute to decreased production . DT NN , WDT VBD NN IN NNP NNP , WDT VBZ JJ NNS TO VB JJ NNS , RB VBD CD NN IN DT NNS VBD NN , NN CC NN VB TO VBD NN .
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Alcohol and substance abuse as a result of stress-related problems was cited by 30 % of those polled . NN CC NN NN IN DT NN IN JJ NNS VBD VBN IN CD NN IN DT VBN .
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Although Dr. Warshaw points out that stress and anxiety have their positive uses , `` stress perceived to be threatening implies a component of fear and anxiety that may contribute to burnout . '' IN NNP NNP NNS IN IN NN CC NN VBP PRP$ JJ NNS , `` NN VBN TO VB VBG VBZ DT NN IN NN CC NN WDT MD VB TO NN . ''
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He also noted that various work environments , such as night work , have their own `` stressors . '' PRP RB VBD IN JJ NN NNS , JJ IN NN NN , VBP PRP$ JJ `` NNS . ''
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`` We all like stress , but there 's a limit , '' says Paul D'Arcy , of Rohrer , Hibler & Replogle , a corporate psychology and management consulting firm . `` PRP DT JJ NN , CC EX VBZ DT NN , '' VBZ NNP NNP , IN NNP , NNP CC NNP , DT JJ NN CC NN NN NN .
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The problem , says Mr. D'Arcy , a psychologist , is that `` it 's very hard to get any hard measures on how stress affects job performance . DT NN , VBZ NNP NNP , DT NN , VBZ IN `` PRP VBZ RB JJ TO VB DT JJ NNS IN WRB NN VBZ NN NN .
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For Cheap Air Fares , Spend Christmas Aloft IN JJ NNP NNS , VB NNP JJ
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IT IS N'T TRUE that a 90-year old clergyman on a mission of mercy to a disaster area on Christmas Day can fly free . PRP VBZ NNP JJ IN DT CD JJ NN IN DT NN IN NN TO DT NN NN IN NNP NNP MD VB JJ .
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But his circumstances are among the few that can qualify for the handful of really cheap airline tickets remaining in America . CC PRP$ NNS VBP IN DT JJ WDT MD VB IN DT NN IN RB JJ NN NNS VBG IN NNP .
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In recent years , carriers have become much more picky about who can fly on the cheap . IN JJ NNS , NNS VBP VBN RB RBR JJ IN WP MD VB IN DT NN .
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But there still are a few ways today 's traveler can qualify under the airline 's many restrictions . CC EX RB VBP DT JJ NNS NN POS NN MD VB IN DT NN POS JJ NNS .
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One of the best deals , though , may mean skipping Christmas dinner with the relatives . CD IN DT JJS NNS , RB , MD VB VBG NNP NN IN DT NNS .
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This week , many carriers are announcing cut-rate fares designed to get people to fly on some of the most hallowed -- and slowest -- days of the year , including Christmas . DT NN , JJ NNS VBP VBG JJ NNS VBN TO VB NNS TO VB IN DT IN DT RBS JJ : CC JJS : NNS IN DT NN , VBG NNP .
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In recent years , the airlines had waited until the last moment to court Christmas season vacationers with bargain fares . IN JJ NNS , DT NNS VBD VBN IN DT JJ NN TO VB NNP NN NNS IN NN NNS .
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That approach flopped : Last Christmas Day , a USAir Group Inc. DC-9 jetliner flew about seven passengers from Chicago to Pittsburgh . DT NN VBD : NNP NNP NNP , DT NNP NNP NNP JJ NN VBD IN CD NNS IN NNP TO NNP .
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So this year , the airlines are getting a jump on holiday discounts . RB DT NN , DT NNS VBP VBG DT NN IN NN NNS .
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They are cutting ticket prices by as much as 70 % from normal levels for travel to most U.S. locations on Dec. 24 , 25 , 29 , 30 and 31 , and Jan. 4 , 5 and 6 . PRP VBP VBG NN NNS IN RB JJ IN CD NN IN JJ NNS IN NN TO RBS NNP NNS IN NNP CD , CD , CD , CD CC CD , CC NNP CD , NN CC CD .
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The promotions -- dubbed everything from 'T- is the Season to be Jolly to Kringle fares -- put round-trip fares at $ 98 , $ 148 and $ 198 . DT NNS : VBN NN IN PRP VBZ DT NN TO VB JJ TO NNP NNS : VB JJ NNS IN $ CD , $ CD CC $ CD .
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`` They 're trying to keep planes flying on days they 'd normally park them , '' says Roger Bard , president of Mr. Mitchell Travel Service in Burnsville , N.C . `` PRP VBP VBG TO VB NNS VBG IN NNS PRP MD RB VB PRP , '' VBZ NNP NNP , NN IN NNP NNP NNP NNP IN NNP , NNP .
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Expect , of course , sky-high prices on other dates near the holidays when the airlines know vacationers are eager to travel . VB , IN NN , JJ NNS IN JJ NNS IN DT NNS WRB DT NNS VBP NNS VBP JJ TO VB .
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Consider Adopting Your Spouse 's Name VB VBG PRP$ NN POS NN
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IF CONTINENTAL Airlines has its way , couples like Marlo Thomas and Phil Donahue may find it a hassle to qualify for some new discounts . IN NNP NNPS VBZ PRP$ NN , NNS IN NNP NNP CC NNP NNP MD VB PRP DT NN TO VB IN DT JJ NNS .
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Continental , a Texas Air Corp. unit , recently unveiled a marketing program offering free companion tickets to business-class and first-class passengers on international flights . NNP , DT NNP NNP NNP NN , RB VBD DT NN NN NN JJ NN NNS TO JJ CC JJ NNS IN JJ NNS .
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The Continental catch : Only immediate family members are allowed , and they must have the same last name as the buyer of the ticket or legal proof they 're related . DT NNP NN : RB JJ NN NNS VBP VBN , CC PRP MD VB DT JJ JJ NN IN DT NN IN DT NN CC JJ NN PRP VBP VBN .
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That irritates many women who have n't taken their husbands ' last name . DT VBZ JJ NNS WP VBP RB VBN PRP$ NNS POS JJ NN .
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`` What a bunch of nonsense , '' says Jessica Crosby , president of the New York chapter of the National Association of Women Business Owners . `` WP DT NN IN NN , '' VBZ NNP NNP , NN IN DT NNP NNP NN IN DT NNP NNP IN NNP NNP NNS .
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`` This sets things way back . '' `` DT NNS NNS NN RB . ''
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Continental 's logic : It does n't want business companions abusing the promotion by falsely claiming to be related . NNP POS NN : PRP VBZ RB VB NN NNS VBG DT NN IN RB VBG TO VB VBN .
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`` We accommodate their choice of names by allowing them to demonstrate '' family affiliation with legal documents , says Jim O'Donnell , a senior vice president . `` PRP VBP PRP$ NN IN NNS IN VBG PRP TO VB '' NN NN IN JJ NNS , VBZ NNP NNP , DT JJ NN NN .
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But gay rights advocates are angry , too . CC JJ NNS NNS VBP JJ , RB .
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The Lambda Legal Defense and Education Fund of New York City has received complaints from homosexual couples whom the airline does n't recognize as family . DT NNP NNP NNP CC NNP NNP IN NNP NNP NNP VBZ VBN NNS IN JJ NNS WP DT NN VBZ RB VB IN NN .
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`` It 's certainly discrimination , '' says attorney Evan Wolfson , whose group forced Trans World Airlines this year to change a rule that allowed travelers to transfer frequent flier awards only to family members . `` PRP VBZ RB NN , '' VBZ NN NNP NNP , WP$ NN VBN NNP NNP NNPS DT NN TO VB DT NN WDT VBD NNS TO VB JJ NN NNS RB TO NN NNS .
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Take Your Vacation In a Hurricane Area VB PRP$ NN IN DT NNP NNP
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WHEN HURRICANE Hugo careened through the Caribbean and the Atlantic coast states , it downed electric and telephone lines , shot coconuts through cottage rooftops , shattered windows and uprooted thousands of lives . WRB NNP NNP VBD IN DT NNP CC DT NNP NN NNS , PRP VBD NN CC NN NNS , NN NNS IN NN NNS , VBN NNS CC VBN NNS IN NNS .
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It also lowered some air fares . PRP RB VBD DT NN NNS .
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Since the hurricane , Midway Airlines Inc. and American Airlines , a unit of AMR Corp. , trimmed their one-way fares to the Virgin Islands to $ 109 from prices that were at times double that before the storm . IN DT NN , NNP NNP NNP CC NNP NNP , DT NN IN NNP NNP , VBD PRP$ JJ NNS TO DT NNP NNPS TO $ CD IN NNS WDT VBD IN NNS JJ IN IN DT NN .
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The fares are code-named Hugo , Compassion and Virgin Islands Aid . DT NNS VBP VBN NNP , NNP CC NNP NNP NNP .
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-LRB- Airlines are n't lowering fares to Northern California following this week 's earthquake , but reservation agents can waive advance-purchase restrictions on discount fares for emergency trips . -RRB- ( NNPS VBP RB VBG NNS TO NNP NNP VBG DT NN POS NN , CC NN NNS MD VB JJ NNS IN NN NNS IN NN NNS . )
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Some hotels in the hurricane-stricken Caribbean promise money-back guarantees . DT NNS IN DT JJ NNP NN JJ NNS .
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In Myrtle Beach , S.C. , the damaged Yachtsman Resort offers daily rates as low as $ 35 , or as much as 22 % below regular prices . IN NNP NNP , NNP , DT VBN NNP NNP VBZ JJ NNS RB JJ IN $ CD , CC RB JJ IN CD NN IN JJ NNS .
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Says Michele Hoffman , a clerk in the resort 's front office : `` We do n't have the outdoor pool , the pool table , ping pong table , snack bar or VCR , but we still have the indoor pool and Jacuzzi . '' VBZ NNP NNP , DT NN IN DT NN POS NN NN : `` PRP VBP RB VB DT JJ NN , DT NN NN , NN NN NN , NN NN CC NNP , CC PRP RB VBP DT JJ NN CC NNP . ''
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Just Wait Until You 're a Bit Older RB VB IN PRP VBP DT NN JJR
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SENIOR CITIZENS have long received cheap air fares . JJ NNS VBP RB VBN JJ NN NNS .
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This year , the older someone is the bigger the discount . DT NN , DT JJR NN VBZ DT JJR DT NN .
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A senior citizen between 62 and 70 saves 70 % off regular coach fare . DT JJ NN IN CD CC CD VBZ CD NN IN JJ NN NN .
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Travelers up to age 99 get a percentage discount matching their age . NNS IN TO NN CD VB DT NN NN VBG PRP$ NN .
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And centenarians fly free in first class . CC NNS VBP JJ IN JJ NN .
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Next month , Northwest Airlines says , a 108-year-old Lansing , Mich. , woman is taking it up on the offer to fly with her 72-year-old son to Tampa , Fla . JJ NN , NNP NNPS VBZ , DT NNP NNP , NNP , NN VBZ VBG PRP IN IN DT NN TO VB IN PRP$ JJ NN TO NNP , NNP .
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Last year when Northwest first offered the promotion , only six centenarians flew free . JJ NN WRB NNP RB VBN DT NN , RB CD NNS VBD JJ .
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If All Else Fails ... . IN DT RB VBZ : .
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THE NATION'S carriers also provide discounts to Red Cross workers , retired military personnel and medical students . DT NN NNS RB VBP NNS TO NNP NNP NNS , VBN JJ NNS CC JJ NNS .
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There 's even a special fare for clergy that does n't require the usual stay over Saturday night . EX VBZ RB DT JJ NN IN NN WDT VBZ RB VB DT JJ NN IN NNP NN .
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That way , they can be home in time for work Sunday . DT NN , PRP MD VB NN IN NN IN NN NNP .
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The British Petroleum Co. PLC said its BP Exploration unit has produced the first oil from its Don oilfield in the North Sea . DT NNP NNP NNP NNP VBD PRP$ NNP NNP NN VBZ VBN DT JJ NN IN PRP$ NNP NN IN DT NNP NNP .
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In an official release , BP said initial production from the field was 11,000 barrels a day , and that it expects peak output from the field of 15,000 barrels a day to be reached in 1990 . IN DT JJ NN , NNP VBD JJ NN IN DT NN VBD CD NNS DT NN , CC IN PRP VBZ NN NN IN DT NN IN CD NNS DT NN TO VB VBN IN CD .
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As the sponsor of the `` Older Americans Freedom to Work Act , '' which would repeal the Social Security earnings limit for people aged 65 and older , I applaud your strong endorsement to repeal this Depression-era fossil . IN DT NN IN DT `` JJR NNP NNP TO VB NNP , '' WDT MD VB DT NNP NNP NNS NN IN NNS VBN CD CC JJR , PRP VBP PRP$ JJ NN TO VB DT JJ NN .
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For every dollar earned over $ 8,880 , Social Security recipients lose 50 cents of their Social Security benefits ; it 's like a 50 % marginal tax . IN DT NN VBD IN $ CD , NNP NNP NNS VBP CD NNS IN PRP$ NNP NNP NNS : PRP VBZ IN DT CD NN JJ NN .
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But the compounded effects of `` seniors only '' taxes result in truly catastrophic marginal tax rates . CC DT VBN NNS IN `` NNS RB '' NNS VBP IN RB JJ JJ NN NNS .
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Imagine a widow who wants to maintain her standard of living at the same level she had before she had to pay the catastrophic surtax . VB DT NN WP VBZ TO VB PRP$ NN IN VBG IN DT JJ NN PRP VBD IN PRP VBD TO VB DT JJ NN .
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Although this widow earns only twice the minimum wage , largely due to the earnings limit , she would have to earn an additional $ 4,930 to offset her catastrophic surtax of $ 496 . IN DT NN VBZ RB RB DT JJ NN , RB JJ TO DT NNS NN , PRP MD VB TO VB DT JJ $ CD TO VB PRP$ JJ NN IN $ CD .
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Eliminating the earnings limit would greatly help seniors and reduce the deficit . VBG DT NNS NN MD RB VB NNS CC VB DT NN .
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Repeal would generate more in new taxes than the government would lose in increased Social Security benefit payments . NN MD VB JJR IN JJ NNS IN DT NN MD VB IN VBN NNP NNP NN NNS .
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We now need support from the Democrats on the Rules Committee in order to include earnings-limit reform in the Reconciliation Bill . PRP JJ NN NN IN DT NNPS IN DT NNP NNP IN NN TO VB JJ NN IN DT NNP NNP .
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Since all four Republicans on the committee are co-sponsors of my bill , it is the Democrats who will be held fully accountable if an earnings test amendment is not allowed from the floor . IN DT CD NNPS IN DT NN VBP NNS IN PRP$ NN , PRP VBZ DT NNPS WP MD VB VBN RB JJ IN DT NNS NN NN VBZ RB VBN IN DT NN .
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The time is now to lift the burdensome Social Security earnings limit from the backs of our nation 's seniors . DT NN VBZ RB TO VB DT JJ NNP NNP NNS NN IN DT NNS IN PRP$ NN POS NNS .
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Rep. J. Dennis Hastert -LRB- R. , Ill . -RRB- NNP NNP NNP NNP ( NNP , NNP . )
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When his Seventh Avenue fur business here was flying high 20 years ago , Jack Purnick had 25 workers and a large factory . WRB PRP$ NNP NNP NN NN RB VBD VBG JJ CD NNS RB , NNP NNP VBD CD NNS CC DT JJ NN .
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Now his half-dozen employees work in an eighth-floor shop that he says is smaller than his old storage room . RB PRP$ NN NNS VBP IN DT JJ NN IN PRP VBZ VBZ JJR IN PRP$ JJ NN NN .
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He also says he is losing money now . PRP RB VBZ PRP VBZ VBG NN RB .
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He blames imports . PRP VBZ NNS .
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But just down Seventh Avenue , where about 75 % of U.S. fur garments are made , Larry Rosen has acquired two retail outlets , broadened his fur-making line and expanded into leather . CC RB RB NNP NNP , WRB IN CD NN IN NNP NN NNS VBP VBN , NNP NNP VBZ VBN CD JJ NNS , VBD PRP$ JJ NN CC VBN IN NN .
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He credits imports . PRP VBZ NNS .
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The difference lies in how the two entrepreneurial furriers reacted to the foreign competition and transformation of their industry over the past 10 years . DT NN VBZ IN WRB DT CD JJ NNS VBD TO DT JJ NN CC NN IN PRP$ NN IN DT JJ CD NNS .
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One stuck to old-line business traditions , while the other embraced the change . CD VBN TO JJ NN NNS , IN DT JJ VBN DT NN .
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`` The small , good fur salon is not what it used to be , '' says Mr. Purnick , 75 years old . `` DT JJ , JJ NN NN VBZ RB WP PRP VBD TO VB , '' VBZ NNP NNP , CD NNS JJ .
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`` We make the finest product in the world , and the Americans are being kicked around . '' `` PRP VBP DT JJS NN IN DT NN , CC DT NNPS VBP VBG VBN IN . ''
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Mr. Rosen , though , believes imports have reinvigorated the industry in which he has worked for most of his 57 years . NNP NNP , RB , VBZ NNS VBP VBN DT NN IN WDT PRP VBZ VBN IN RBS IN PRP$ CD NNS .
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`` You 've got some minds here that wo n't think progressively , '' he says . `` PRP VBP VBD DT NNS RB WDT MD RB VB RB , '' PRP VBZ .
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Import competition for U.S. furs has risen sharply since furriers started aggressively marketing `` working-girl mink '' and similar lower-priced imported furs in recent years . NN NN IN NNP NNS VBZ VBN RB IN NNS VBD RB VBG `` NN NN '' CC JJ JJ VBN NNS IN JJ NNS .
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Merchants discovered a consumer largely ignored by higher-priced furriers : the younger woman -- even in her late 20s -- who never thought she could buy a mink . NNP VBD DT NN RB VBD IN JJ NNS : DT JJR NN : RB IN PRP$ JJ CD : WP RB VBD PRP MD VB DT NN .
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The new market helped boost U.S. fur sales to about $ 1.8 billion a year now , triple the level in the late 1970s . DT JJ NN VBD VB NNP NN NNS TO RB $ CD CD DT NN RB , VB DT NN IN DT JJ NNS .
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It also opened the door to furs made in South Korea , China , Hong Kong and other countries . PRP RB VBD DT NN TO NNS VBN IN NNP NNP , NNP , NNP NNP CC JJ NNS .
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Jindo Furs , a large South Korean maker , says it operates 35 retail outlets in the U.S. and plans to open 15 more by the end of next year . NNP NNP , DT JJ JJ JJ NN , VBZ PRP VBZ CD JJ NNS IN DT NNP CC NNS TO VB CD JJR IN DT NN IN JJ NN .
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Mr. Purnick and other old-line furriers call many of the the imports unstylish and poorly made . NNP NNP CC JJ JJ NNS VBP NN IN DT DT NNS JJ CC RB VBN .
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High-end U.S. furriers say these imports have n't squeezed them . JJ NNP NNS VBP DT NNS VBP RB VBN PRP .
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But low-priced and middle-priced furriers like Mr. Purnick , who once saturated the five-block Seventh Avenue fur district , say imports have cut their sales . CC JJ CC JJ NNS IN NNP NNP , WP RB VBN DT JJ NNP NNP NN NN , VBP NNS VBP VBN PRP$ NNS .
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A woman who once would have saved for two or three seasons to buy a U.S.-made mink can now get an imported mink right away for less than $ 2,000 . DT NN WP RB MD VB VBN IN CD CC CD NNS TO VB DT JJ NN MD RB VB DT VBN NN RB RB IN JJR IN $ CD .
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Yet Mr. Rosen has turned the import phenomenon to his advantage . RB NNP NNP VBZ VBN DT NN NN TO PRP$ NN .
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Early in the decade he saw that fur workers in many foreign countries were willing to work longer hours at lower wages than their American counterparts and were more open to innovation . RB IN DT NN PRP VBD IN NN NNS IN JJ JJ NNS VBD JJ TO VB RB VBZ IN JJR NNS IN PRP$ JJ NNS CC VBD RBR JJ TO NN .
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In 1982 , he started a factory in Greece . IN CD , PRP VBD DT NN IN NNP .
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Two years later , he opened one in West Germany . CD NNS RB , PRP VBD CD IN NNP NNP .
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He also noticed that foreign makers were introducing many variations on the traditional fur , and he decided to follow suit . PRP RB VBD IN JJ NNS VBD VBG JJ NNS IN DT JJ NN , CC PRP VBD TO VB NN .
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By combining his strengths in innovation and quality control with the lower costs of production abroad , he says he has been able to produce high-quality goods at low cost . IN VBG PRP$ NNS IN NN CC NN NN IN DT JJR NNS IN NN RB , PRP VBZ PRP VBZ VBN JJ TO VB JJ NNS IN JJ NN .
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To maintain control over production and avoid overdependence on foreign sources , he says he still makes most of his furs in the U.S. . TO VB NN IN NN CC VB NN IN JJ NNS , PRP VBZ PRP RB VBZ RBS IN PRP$ NNS IN DT NNP .
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But six years ago he also began importing from the Far East . CC CD NNS RB PRP RB VBD VBG IN DT NNP NNP .
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Inspired by imports , Mr. Rosen now makes fur muffs , hats and flings . VBN IN NNS , NNP NNP RB VBZ NN NNS , NNS CC NNS .
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This year he produced a men 's line and offers dyed furs in red , cherry red , violet , royal blue and forest green . DT NN PRP VBD DT NNS POS NN CC VBZ VBN NNS IN JJ , JJ NN , NN , JJ NN CC NN JJ .
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He has leather jackets from Turkey that are lined with eel skin and topped off with raccoon-skin collars . PRP VBZ NN NNS IN NNP WDT VBP VBN IN NN NN CC VBD IN IN JJ NNS .
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From Asia , he has mink jackets with floral patterns made by using different colored furs . IN NNP , PRP VBZ NN NNS IN JJ NNS VBN IN VBG JJ JJ NNS .
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Next he will be testing pictured embroidery -LRB- called kalega -RRB- made in the Far East . JJ PRP MD VB NN VBD NN ( VBN NN ) VBN IN DT NNP NNP .
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He plans to attach the embroidery to the backs of mink coats and jackets . PRP VBZ TO VB DT NN TO DT NNS IN NN NNS CC NNS .
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Besides adding to sales , leathers also attract retailers who may buy furs later , he adds . IN VBG TO NNS , NNS RB VBP NNS WP MD VB NNS RB , PRP VBZ .
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Other furriers have also benefited from leathers . JJ NNS VBP RB VBN IN NNS .
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Seymour Schreibman , the 65-year-old owner of Schreibman Raphael Furs Inc. , treats the reverse side of a Persian lambskin to produce a reversible fur-and-leather garment . NNP NNP , DT JJ NN IN NNP NNP NNP NNP , VBZ DT NN NN IN DT NNP NN TO VB DT JJ JJ NN .
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He says it accounts for 25 % of total sales . PRP VBZ PRP VBZ IN CD NN IN JJ NNS .
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Mr. Rosen is also pushing retail sales . NNP NNP VBZ RB VBG JJ NNS .
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This year he bought two stores , one in Brooklyn and one in Queens . DT NN PRP VBD CD NNS , CD IN NNP CC CD IN NNP .
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Other furriers have also placed more weight on retailing . JJ NNS VBP RB VBN JJR NN IN NN .
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Golden Feldman Furs Inc. began retailing aggressively eight years ago , and now retail sales account for about 20 % of gross income . NNP NNP NNP NNP VBD NN RB CD NNS RB , CC RB JJ NNS NN IN IN CD NN IN JJ NN .
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In other moves , Mr. Rosen says he bought a truck three years ago to reach more retailers . IN JJ NNS , NNP NNP VBZ PRP VBD DT NN CD NNS RB TO VB JJR NNS .
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Since then he has expanded his fleet and can now bring his furs to the front door of retailers as far away as the Midwest . IN RB PRP VBZ VBN PRP$ NN CC MD RB VB PRP$ NNS TO DT NN NN IN NNS IN RB RB IN DT NNP .
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Small retailers who ca n't afford to travel to his New York showroom have become fair game . JJ NNS WP MD RB VB TO VB TO PRP$ NNP NNP NN VBP VBN JJ NN .
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Such moves have helped Mr. Rosen weather the industry slump of recent years . JJ NNS VBP VBN NNP NNP NN DT NN NN IN JJ NNS .
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The industry enjoyed six prosperous years beginning in 1980 , but since 1986 sales have languished at their $ 1.8 billion peak . DT NN VBD CD JJ NNS VBG IN CD , CC IN CD NNS NN VBN IN PRP$ $ CD CD NN .
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Large furriers such as Antonovich Inc. , Fur Vault Inc. and Evans Inc. all reported losses in their latest fiscal years . JJ NNS JJ IN NNP NNP , NNP NNP NNP CC NNP NNP DT VBD NNS IN PRP$ JJS JJ NNS .
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Aftereffects of the 1987 stock market crash head the list of reasons . NNS IN DT CD NN NN NN NN DT NN IN NNS .
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In addition , competition has glutted the market with both skins and coats , driving prices down . IN NN , NN VBZ VBN DT NN IN DT NNS CC NNS , VBG NNS RB .
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The animal-rights movement has n't helped sales . DT NNS NN VBZ RB VBN NNS .
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Warm winters over the past two years have trimmed demand , too , furriers complain . JJ NNS IN DT JJ CD NNS VBP VBN NN , RB , NNS VBP .
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And those who did n't move some production overseas suffer labor shortages . CC DT WP VBD RB VB DT NN JJ VB NN NNS .
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`` The intensive labor needed to manufacture furs -LCB- in the U.S. . -RCB- is not as available as it was , '' says Mr. Schreibman , who is starting overseas production . `` DT JJ NN VBN TO VB NNS ( IN DT NNP . ) VBZ RB RB JJ IN PRP VBD , '' VBZ NNP NNP , WP VBZ VBG JJ NN .
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But even those who have found a way to cope with the imports and the slump , fear that furs are losing part of their allure . CC RB DT WP VBP VBN DT NN TO VB IN DT NNS CC DT NN , NN IN NNS VBP VBG NN IN PRP$ NN .
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`` People are promoting furs in various ways and taking the glamour out of the fur business , '' says Stephen Sanders , divisional merchandise manager for Marshall Field 's department store in Chicago . `` NNS VBP VBG NNS IN JJ NNS CC VBG DT NN IN IN DT NN NN , '' VBZ NNP NNP , JJ NN NN IN NNP NNP POS NN NN IN NNP .
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`` You ca n't make a commodity out of a luxury , '' insists Mr. Purnick , the New York furrier . `` PRP MD RB VB DT NN IN IN DT NN , '' VBZ NNP NNP , DT NNP NNP NN .
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He contends that chasing consumers with low-priced imports will harm the industry in the long run by reducing the prestige of furs . PRP VBZ IN VBG NNS IN JJ NNS MD VB DT NN IN DT JJ NN IN VBG DT NN IN NNS .
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But Mr. Rosen responds : `` Whatever people want to buy , I 'll sell . CC NNP NNP VBZ : `` WDT NNS VBP TO VB , PRP MD VB .
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The name of the game is to move goods . DT NN IN DT NN VBZ TO VB NNS .
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Four workers at GTE Corp. 's headquarters have been diagnosed as having hepatitis , and city health officials are investigating whether a cafeteria worker may have exposed hundreds of other GTE employees to the viral infection , company and city officials said . CD NNS IN NNP NNP POS NN VBP VBN VBN IN VBG NN , CC NN NN NNS VBP VBG IN DT NN NN MD VB VBN NNS IN JJ NNP NNS TO DT JJ NN , NN CC NN NNS VBD .
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The four cases were all reported to GTE 's medical director and state and local health authorities . DT CD NNS VBD DT VBD TO NNP POS JJ NN CC NN CC JJ NN NNS .
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GTE shut down its cafeteria Tuesday afternoon after testing determined that at least one cafeteria worker employed by GTE 's private food vending contractor , ARA Services Inc. , was suffering from a strain of the virus , officials said . NNP VBD RB PRP$ NN NNP NN IN NN VBN IN IN JJS CD NN NN VBN IN NNP POS JJ NN NN NN , NNP NNP NNP , VBD VBG IN DT NN IN DT NN , NNS VBD .
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More than 700 people work in the GTE building . RBR IN CD NNS VBP IN DT NNP NN .
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The cafeteria remains closed . DT NN VBZ VBN .
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Dr. Andrew McBride , city health director , said his staff suspects the hepatitis , which can be highly contagious , was spread by the cafeteria worker with the virus . NNP NNP NNP , NN NN NN , VBD PRP$ NN VBZ DT NN , WDT MD VB RB JJ , VBD NN IN DT NN NN IN DT NN .
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The exact strain of hepatitis that the cafeteria worker contracted has n't been determined but should be known by the end of the week , Dr. McBride said . DT JJ NN IN NN IN DT NN NN VBD VBZ RB VBN VBN CC MD VB VBN IN DT NN IN DT NN , NNP NNP VBD .
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Hepatitis A , considered the least dangerous strain of the virus , has been confirmed in at least one GTE employee , company and city officials said . NNP DT , VBD DT JJS JJ NN IN DT NN , VBZ VBN VBN IN IN JJS CD NNP NN , NN CC NN NNS VBD .
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`` From a public health point of view we 're relieved because hepatitis A is rarely life-threatening , '' said Dr. Frank Provato , GTE 's medical director . `` IN DT JJ NN NN IN NN PRP VBP VBN IN NN NNP VBZ RB JJ , '' VBD NNP NNP NNP , NNP POS JJ NN .
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`` It 's a double-edged sword though , because it is also the most contagious kind of hepatitis . '' `` PRP VBZ DT JJ NN RB , IN PRP VBZ RB DT RBS JJ NN IN NN . ''
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GTE officials began posting warning notices about the potential threat to exposure Wednesday morning at various places at the company , said GTE spokesman Thomas Mattausch . NNP NNS VBD VBG NN NNS IN DT JJ NN TO NN NNP NN IN JJ NNS IN DT NN , VBD NNP NN NNP NNP .
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The company has begun offering shots of gamma globulin , which will diminish the flu-like symptoms of hepatitis A , in anyone who has contracted the disease , Mr. Mattausch said . DT NN VBZ VBN NN NNS IN NN NN , WDT MD VB DT JJ NNS IN NN DT , IN NN WP VBZ VBN DT NN , NNP NNP VBD .
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`` We 're strongly recommending that anyone who has eaten in the cafeteria this month have the shot , '' Mr. Mattausch added , `` and that means virtually everyone who works here . `` PRP VBP RB VBG DT NN WP VBZ VBN IN DT NN DT NN VBP DT NN , '' NNP NNP VBD , `` CC DT VBZ JJ NN WP VBZ RB .
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I was appalled to read the misstatements of facts in your Oct. 13 editorial `` Colombia 's Brave Publisher . '' PRP VBD VBN TO VB DT NNS IN NNS IN PRP$ NNP CD NN `` NNP POS NNP NNP . ''
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It is the right-wing guerrillas who are aligned with the drug traffickers , not the left wing . PRP VBZ DT JJ NNS WP VBP VBN IN DT NN NNS , RB DT VBN NN .
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This information was gleaned from your own news stories on the region . DT NN VBD VBN IN PRP$ JJ NN NNS IN DT NN .
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Past Colombian government tolerance of the `` narcotraficantes '' was due to the drug lords ' history of wiping out leftists in the hinterlands . JJ JJ NN NN IN DT `` FW '' VBD JJ TO DT NN NNS POS NN IN VBG RP NNS IN DT NNS .
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Mary Poulin Palo Alto , Calif. NNP NNP NNP NNP , NNP
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I suggest that The Wall Street Journal -LRB- as well as other U.S. news publications of like mind -RRB- should put its money where its mouth is : Lend computer equipment to replace that damaged at El Espectador , buy ad space , publish stories under the bylines of El Espectador journalists . PRP VBP IN DT NNP NNP NNP ( RB RB IN JJ NNP NN NNS IN IN NN ) MD VB PRP$ NN WRB PRP$ NN VBZ : VB NN NN TO VB WDT VBD IN NNP NNP , VB NN NN , VB NNS IN DT NNS IN NNP NNP NNS .
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Perhaps an arrangement could be worked out to `` sponsor '' El Espectador journalists and staff by paying for added security in exchange for exclusive stories . RB DT NN MD VB VBN IN TO `` NN '' NNP NNP NNS CC NN IN VBG IN VBN NN IN NN IN JJ NNS .
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Reward El Espectador 's courage with real support . VB NNP NNP POS NN IN JJ NN .
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Douglas B. Evans NNP NNP NNP
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COCA-COLA Co . -LRB- Atlanta -RRB- -- NNP NNP . ( NNP ) :
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Anton Amon and George Gourlay were elected vice presidents of this soft-drink company . NNP NNP CC NNP NNP VBD VBN NN NNS IN DT NN NN .
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Mr. Amon , 46 years old , is the company 's director of quality assurance ; most recently , he served as vice president , operations , for Coca-Cola Enterprises . NNP NNP , CD NNS JJ , VBZ DT NN POS NN IN NN NN : RBS RB , PRP VBD IN NN NN , NNS , IN NNP NNPS .
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Mr. Gourlay , 48 , is manager for corporate manufacturing operations ; he was assistant vice president at the company . NNP NNP , CD , VBZ NN IN JJ NN NNS : PRP VBD NN NN NN IN DT NN .
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In the wake of a slide in sterling , a tailspin in the stock market , and a string of problematic economic indicators , British Chancellor of the Exchequer Nigel Lawson promised gradual improvement in the U.K. economy . IN DT NN IN DT NN IN NN , DT NN IN DT NN NN , CC DT NN IN JJ JJ NNS , NNP NNP IN DT NNP NNP NNP VBD JJ NN IN DT NNP NN .
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In a speech prepared for delivery to London 's financial community , Mr. Lawson summed up current economic policy as a battle to wring inflation out of the British economy , using high interest rates as `` the essential instrument '' to carry out the campaign . IN DT NN VBN IN NN TO NNP POS JJ NN , NNP NNP VBD IN JJ JJ NN IN DT NN TO VB NN IN IN DT JJ NN , VBG JJ NN NNS IN `` DT JJ NN '' TO VB RP DT NN .
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Two weeks after boosting base rates to 15 % , he pledged that `` rates will have to remain high for some time to come . '' CD NNS IN VBG NN NNS TO CD NN , PRP VBD IN `` NNS MD VB TO VB JJ IN DT NN TO VB . ''
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Mr. Lawson also made it clear that he would be watching exchange rates carefully . NNP NNP RB VBD PRP JJ IN PRP MD VB VBG NN NNS RB .
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A sinking pound makes imports more expensive and increases businesses ' expectations of future inflation , he argued . DT VBG NN VBZ NNS RBR JJ CC NNS NNS POS NNS IN NN NN , PRP VBD .
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In an apparent warning to currency traders who have lately been selling the British currency , he stated that the exchange rates will have a `` major role in the assessment of monetary conditions . '' IN DT JJ NN TO NN NNS WP VBP RB VBN VBG DT JJ NN , PRP VBD IN DT NN NNS MD VB DT `` JJ NN IN DT NN IN JJ NNS . ''
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In reaffirming the current monetary policy of using high interest rates to fight inflation and shore up the pound , Mr. Lawson dismissed other approaches to managing the economy . IN VBG DT JJ JJ NN IN VBG JJ NN NNS TO VB NN CC NN IN DT NN , NNP NNP VBD JJ NNS TO VBG DT NN .
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He said he monitors the money-supply figures , but does n't give them paramount importance , as some private and government economists have suggested . PRP VBD PRP VBZ DT JJ NNS , CC VBZ RB VB PRP JJ NN , IN DT NN CC NN NNS VBP VBN .
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Mr. Lawson also dismissed the possibility of imposing direct credit controls on Britain 's financial system . NNP NNP RB VBD DT NN IN VBG JJ NN NNS IN NNP POS JJ NN .
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Mr. Lawson 's speech , delivered at the Lord Mayor of London 's annual dinner at Mansion House , came on the heels of a grueling period for the U.K. economy . NNP NNP POS NN , VBN IN DT NNP NNP IN NNP POS JJ NN IN NNP NNP , VBD IN DT NNS IN DT JJ NN IN DT NNP NN .
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Two weeks ago , in a campaign to blunt inflation at home and arrest a world-wide plunge in the pound , he raised base rates a full percentage point to 15 % . CD NNS RB , IN DT NN TO VB NN IN NN CC VB DT JJ NN IN DT NN , PRP VBD NN VBZ DT JJ NN NN TO CD NN .
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Despite the increase , the British currency slid below a perceived threshold of three marks early last week . IN DT NN , DT JJ NN VBD IN DT VBN NN IN CD NNS JJ JJ NN .
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It was quoted at 2.9428 marks in late New York trading Wednesday . PRP VBD VBN IN CD NNS IN JJ NNP NNP NN NNP .
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Leading up to the speech was a drumroll of economic statistics suggesting that the British war on inflation will be more bruising than previously assumed . VBG IN TO DT NN VBD DT NN IN JJ NNS VBG IN DT JJ NN IN NN MD VB RBR JJ IN RB VBN .
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Unemployment in September dropped to 1,695,000 , the lowest level since 1980 . NN IN NNP VBD TO CD , DT JJS NN IN CD .
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While lower joblessness is generally good news , the hefty drop last month indicates that the economy is n't slowing down as much as hoped -- despite a doubling of interest rates over the last 16 months . IN JJR NN VBZ RB JJ NN , DT JJ NN JJ NN VBZ IN DT NN VBZ RB VBG RB RB JJ IN VBN : IN DT NN IN NN NNS IN DT JJ CD NNS .
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Meanwhile , average earnings in Britain were up 8.75 % in August over the previous year . RB , JJ NNS IN NNP VBD IN CD NN IN NNP IN DT JJ NN .
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Another inflationary sign came in a surge in building-society lending to a record # 10.2 billion -LRB- $ 16.22 billion -RRB- last month , a much higher level than economists had predicted . DT JJ NN VBD IN DT NN IN JJ NN TO DT NN # CD CD ( $ CD CD ) JJ NN , DT RB JJR NN IN NNS VBD VBN .
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In a separate speech prepared for delivery at the dinner , Robin Leigh-Pemberton , Bank of England governor , conceded that `` demand pressures were even more buoyant than had been appreciated '' when the British economy was heating up last year . IN DT JJ NN VBN IN NN IN DT NN , NNP NNP , NNP IN NNP NN , VBD IN `` NN NNS VBD RB RBR JJ IN VBN VBN VBN '' WRB DT JJ NN VBD VBG IN JJ NN .
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He added that `` there 's no quick-fix solution '' to the economic woes , and said `` tight monetary policy is the right approach . '' PRP VBD IN `` EX VBZ DT JJ NN '' TO DT JJ NNS , CC VBD `` JJ JJ NN VBZ DT JJ NN . ''
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Discussing the recent slide in stock prices , the central bank governor stated that `` the markets now appear to have steadied '' after the `` nasty jolt '' of the 190.58-point plunge in the Dow Jones Industrial Average a week ago . VBG DT JJ NN IN NN NNS , DT JJ NN NN VBN IN `` DT NNS RB VBP TO VB VBN '' IN DT `` JJ NN '' IN DT JJ NN IN DT NNP NNP NNP NNP DT NN RB .
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Although the New York market plunge prompted a 70.5-point drop in the London Financial Times-Stock Exchange 100 Share Index , Mr. Leigh-Pemberton declared `` that the experience owed nothing to the particular problems of the British economy . '' IN DT NNP NNP NN NN VBD DT JJ NN IN DT NNP NNP NNP NNP CD NNP NNP , NNP NNP VBD `` IN DT NN VBD NN TO DT JJ NNS IN DT JJ NN . ''
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Specifically , he pointed out that compared with the U.S. market , the U.K. has far fewer highly leveraged junk-bond financings . RB , PRP VBD IN DT VBD IN DT NNP NN , DT NNP VBZ RB RBR RB JJ NN NNS .
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Discussing future monetary arrangements , Mr. Lawson repeated the Thatcher government 's commitment to join the exchange rate mechanism of the European Monetary System , but he did n't indicate when . VBG NN JJ NNS , NNP NNP VBD DT NNP NN POS NN TO VB DT NN NN NN IN DT NNP NNP NNP , CC PRP VBD RB VB WRB .
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Ing . NNP .
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C. Olivetti & Co. , claiming it has won the race in Europe to introduce computers based on a powerful new microprocessor chip , unveiled its CP486 computer yesterday . NNP NNP CC NNP , VBG PRP VBZ VBN DT NN IN NNP TO VB NNS VBN IN DT JJ JJ NN NN , VBD PRP$ NNP NN NN .
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The product is the first from a European company based on Intel Corp. 's new 32-bit 486tm microprocessor , which works several times faster than previously available chips . DT NN VBZ DT JJ IN DT JJ NN VBN IN NNP NNP POS JJ JJ JJ NN , WDT VBZ JJ NNS RBR IN RB JJ NNS .
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Hewlett-Packard Co. became the first company world-wide to announce a product based on the chip earlier this month , but it wo n't start shipping the computers until early next year . NNP NNP VBD DT JJ NN JJ TO VB DT NN VBN IN DT NN RBR DT NN , CC PRP MD RB VB VBG DT NNS IN JJ JJ NN .
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An Olivetti spokesman said the company 's factories are already beginning to produce the machine , and that it should be available in Europe by December . DT NNP NN VBD DT NN POS NNS VBP RB VBG TO VB DT NN , CC IN PRP MD VB JJ IN NNP IN NNP .
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`` What this means is that Europeans will have these machines in their offices before Americans do , '' the spokesman said . `` WP DT VBZ VBZ IN NNPS MD VB DT NNS IN PRP$ NNS IN NNPS VBP , '' DT NN VBD .
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The new chip `` is a very big step in computing , and it is important that Olivetti be one of the first out on the market with this product , '' said Patricia Meagher Davis , an analyst at James Capel & Co. in London . DT JJ NN `` VBZ DT RB JJ NN IN VBG , CC PRP VBZ JJ WDT NNP VB CD IN DT JJ IN IN DT NN IN DT NN , '' VBD NNP NNP NNP , DT NN IN NNP NNP CC NNP IN NNP .
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Executives at Olivetti , whose earnings have been steadily sliding over the past couple of years , have acknowledged that in the past they have lagged at getting new technology to market . NNS IN NNP , WP$ NNS NN VBN RB VBG IN DT JJ NN IN NNS , VBP VBN IN IN DT JJ PRP VBP VBN IN VBG JJ NN TO VB .
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Ms. Davis said the new machines could steal some sales away from Olivetti 's own minicomputers , but would bring new sales among professionals such as engineers , stockbrokers and medical doctors . NNP NNP VBD DT JJ NNS MD VB DT NNS RB IN NNP POS JJ NNS , CC MD VB JJ NNS IN NNS JJ IN NNS , NNS CC JJ NNS .
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Although Olivetti 's profits tumbled 40 % in the first half of this year , she believes Olivetti 's restructuring last fall and its introduction of new products will begin to bear fruit with an earnings rebound next year , especially if it can fulfill its promise to deliver the new machines by December . IN NNP POS NNS VBD CD NN IN DT JJ NN IN DT NN , PRP VBZ NNP POS NN JJ NN CC PRP$ NN IN JJ NNS MD VB TO VB NN IN DT NNS NN JJ NN , RB IN PRP MD VB PRP$ NN TO VB DT JJ NNS IN NNP .
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`` We think the worst is over '' in the European information-technology market , she said . `` PRP VBP DT JJS VBZ IN '' IN DT JJ JJ NN , PRP VBD .
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Depending on the type of software and peripherals used , the machines can serve either as the main computer in a network of many terminals -LRB- a role usually filled by a minicomputer -RRB- , as a technical workstation or as a very fast personal computer . VBG IN DT NN IN NN CC NNS VBN , DT NNS MD VB DT IN DT JJ NN IN DT NN IN JJ NNS ( DT NN RB VBD IN DT NN ) , IN DT JJ NN CC IN DT RB RB JJ NN .
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`` It 's the missing link '' in Olivetti 's product line between small personal computers and higher-priced minicomputers , the Olivetti spokesman said . `` PRP VBZ DT VBG NN '' IN NNP POS NN NN IN JJ JJ NNS CC JJ NNS , DT NNP NN VBD .
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He added that Olivetti will continue making its LSX minicomputer line . PRP VBD IN NNP MD VB VBG PRP$ NNP NN NN .
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The machines will cost around $ 16,250 on average in Europe . DT NNS MD VB IN $ CD IN JJ IN NNP .
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The Intel 486 chip can process 15 million instructions per second , or MIPS , while Intel 's previous 386 chip could handle only 3 to 6 MIPS . DT NNP CD NN MD VB CD CD NNS IN JJ , CC NNP , IN NNP POS JJ CD NN MD VB RB CD TO CD NNP .
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Olivetti also plans to sell the CP486 computer in the U.S. starting next year through Olivetti USA and through its ISC\/Bunker Ramo unit , which specializes in automating bank-branch networks . NNP RB VBZ TO VB DT NNP NN IN DT NNP VBG JJ NN IN NNP NNP CC IN PRP$ NNP NNP NN , WDT VBZ IN VBG JJ NNS .
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Viatech Inc. said it received approval from the French government for its proposed $ 44.7 million acquisition of Ferembal S.A . NNP NNP VBD PRP VBD NN IN DT JJ NN IN PRP$ VBN $ CD CD NN IN NNP NNP .
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The approval satisfies the remaining conditions of the purchase , which is expected to close within two weeks . DT NN VBZ DT VBG NNS IN DT NN , WDT VBZ VBN TO VB IN CD NNS .
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erembal , the second-largest maker of food cans in France , had 1988 sales of $ 150 million . NNP , DT JJ NN IN NN NNS IN NNP , VBD CD NNS IN $ CD CD .
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Ferembal has 930 workers at four canning manufacturing plants and one plastic container facility . NNP VBZ CD NNS IN CD NN NN NNS CC CD NN NN NN .
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Viatech makes flexible packaging films and machinery , and materials for the food and pharmaceutical industries . NNP VBZ JJ NN NNS CC NN , CC NNS IN DT NN CC JJ NNS .
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Social Security benefits will rise 4.7 % next year to keep pace with inflation , boosting the average monthly benefit to $ 566 from $ 541 , the Department of Health and Human Services announced . NNP NNP NNS MD VB CD NN JJ NN TO VB NN IN NN , VBG DT JJ JJ NN TO $ CD IN $ CD , DT NNP IN NNP CC NNP NNP VBD .
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The higher payments will start with Social Security checks received on Jan. 3 , 1990 . DT JJR NNS MD VB IN NNP NNP NNS VBD IN NNP CD , CD .
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Supplemental Security Income payments to the disabled also will rise 4.7 % , starting with checks received on Dec. 29 , 1988 , increasing the maximum SSI payment to $ 386 from $ 368 a month . NNP NNP NNP NNS TO DT JJ RB MD VB CD NN , VBG IN NNS VBD IN NNP CD , CD , VBG DT JJ NNP NN TO $ CD IN $ CD DT NN .
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The inflation adjustment also means that the maximum annual level of earnings subject to the wage tax that generates revenue for the Social Security trust fund will rise to $ 50,400 in 1990 from $ 48,000 this year . DT NN NN RB VBZ IN DT JJ JJ NN IN NNS NN TO DT NN NN WDT VBZ NN IN DT NNP NNP NN NN MD VB TO $ CD IN CD IN $ CD DT NN .
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As mandated by law , the tax rate will rise to 7.65 % in 1990 from 7.51 % and wo n't rise any further in the future . IN VBN IN NN , DT NN NN MD VB TO CD NN IN CD IN CD NN CC MD RB VB DT JJ IN DT NN .
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This means that the maximum yearly Social Security tax paid by workers and employers each will rise $ 250.80 next year to $ 3,855.60 . DT VBZ IN DT JJ JJ NNP NNP NN VBN IN NNS CC NNS DT MD VB $ CD JJ NN TO $ CD .
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Beneficiaries aged 65 through 69 will be able to earn $ 9,360 without losing any Social Security benefits in 1990 , up from $ 8,880 this year . NNS VBN CD IN CD MD VB JJ TO VB $ CD IN VBG DT NNP NNP NNS IN CD , IN IN $ CD DT NN .
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The exempt amount for beneficiaries under 65 will rise to $ 6,840 from $ 6,480 . DT JJ NN IN NNS IN CD MD VB TO $ CD IN $ CD .
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The adjustments reflect the increase in the consumer price index for urban wage earners and clerical workers from the third quarter of last year to the third quarter of this year . DT NNS VBP DT NN IN DT NN NN NN IN JJ NN NNS CC JJ NNS IN DT JJ NN IN JJ NN TO DT JJ NN IN DT NN .
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Health-care companies should get healthier in the third quarter . JJ NNS MD VB JJR IN DT JJ NN .
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Medical-supply houses are expected to report earnings increases of about 15 % on average for the third quarter , despite sales increases of less than 10 % , analysts say . JJ NNS VBP VBN TO VB NNS NNS IN IN CD NN IN JJ IN DT JJ NN , IN NNS NNS IN JJR IN CD NN , NNS VBP .
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To offset sluggish sales growth , companies have been cutting staff , mostly through attrition , and slowing the growth in research and development spending . TO VB JJ NNS NN , NNS VBP VBN VBG NN , RB IN NN , CC VBG DT NN IN NN CC NN NN .
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Sales growth in the quarter was slowed by mounting pressure from groups of buyers , such as hospitals , to hold down prices . NNS NN IN DT NN VBD VBN IN VBG NN IN NNS IN NNS , JJ IN NNS , TO VB RB VBZ .
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Suppliers were also hurt by the stronger U.S. dollar , which makes sales abroad more difficult . NNS VBD RB VBN IN DT JJR NNP NN , WDT VBZ NNS RB RBR JJ .
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In some cases , competition has squeezed margins . IN DT NNS , NN VBZ VBN NNS .
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Becton , Dickinson & Co. , for example , faces stiff competition from a Japanese supplier in the important syringe market . NNP , NNP CC NNP , IN NN , VBZ JJ NN IN DT JJ NN IN DT JJ NN NN .
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The Franklin Lakes , N.J. , company is expected to report sales growth of only 5 % to 6 % , but should still maintain earnings growth of 10 % , says Jerry E. Fuller , an analyst with Duff & Phelps Inc . DT NNP NNPS , NNP , NN VBZ VBN TO VB NNS NN IN JJ NN NN TO CD NN , CC MD RB VB NNS NN IN CD NN , VBZ NNP NNP NNP , DT NN IN NNP CC NNP NNP .
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Among the first of the group to post results , Abbott Laboratories said third-quarter net income jumped 14 % to $ 196 million , or 88 cents a share , from $ 172 million , or 76 cents a share , a year earlier . IN DT JJ IN DT NN TO VB NNS , NNP NNPS VBD JJ JJ NN VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Sales for the company , based in Abbott Park , Ill. , rose 8.3 % to $ 1.31 billion from $ 1.21 billion . NNS IN DT NN , VBN IN NNP NNP , NNP , VBD CD NN TO $ CD CD IN $ CD CD .
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Baxter International Inc. yesterday reported net climbed 20 % in the third period to $ 102 million , or 34 cents a share , from $ 85 million , or 28 cents a share , a year earlier . NNP NNP NNP NN VBD NN VBD CD NN IN DT JJ NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Sales for the Deerfield , Ill. , company rose 5.8 % to $ 1.81 billion from $ 1.71 billion . NNS IN DT NNP , NNP , NN VBD CD NN TO $ CD CD IN $ CD CD .
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But not every company expects to report increased earnings . CC RB DT NN VBZ TO VB VBN NNS .
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C.R. Bard Inc. yesterday said third-quarter net plunged 51 % to $ 9.9 million , or 18 cents a share , from $ 20 million , or 35 cents a share , a year earlier . NNP NNP NNP NN VBD JJ NN VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Sales fell 1.2 % to $ 190.1 million from $ 192.5 million . NNS VBD CD NN TO $ CD CD IN $ CD CD .
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The Murray Hill , N.J. , company said full-year earnings may be off 33 cents a share because the company removed a catheter from the market . DT NNP NNP , NNP , NN VBD JJ NNS MD VB IN CD NNS DT NN IN DT NN VBD DT NN IN DT NN .
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In 1988 , the company earned $ 1.38 a share . IN CD , DT NN VBD $ CD DT NN .
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The Food and Drug Administration had raised questions about the device 's design . DT NNP CC NNP NNP VBD VBN NNS IN DT NN POS NN .
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Some analysts add that third-party pressures to reduce health costs will continue to bedevil companies ' bottom lines . DT NNS VBP IN JJ NNS TO VB NN NNS MD VB TO VB NNS POS NN NNS .
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Takeover speculation , which has been buoying stocks of supply houses , may also ease , says Peter Sidoti , an analyst with Drexel Burnham Lambert Inc . NN NN , WDT VBZ VBN VBG NNS IN NN NNS , MD RB VB , VBZ NNP NNP , DT NN IN NNP NNP NNP NNP .
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`` As that wanes , you 're going to see the stocks probably wane as well , '' he says . `` IN DT VBZ , PRP VBP VBG TO VB DT NNS RB VBP IN RB , '' PRP VBZ .
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Hospitals companies , meanwhile , are reporting improved earnings . NNS NNS , RB , VBP VBG VBN NNS .
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Bolstered by strong performances by its psychiatric hospitals , National Medical Enterprises Inc. , Los Angeles , reported net income of $ 50 million , or 65 cents a share , for the first quarter ended Aug. 31 , up from $ 41 million , or 56 cents a share , a year earlier . VBN IN JJ NNS IN PRP$ JJ NNS , NNP NNP NNPS NNP , NNP NNP , VBD JJ NN IN $ CD CD , CC CD NNS DT NN , IN DT JJ NN VBN NNP CD , IN IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Humana Inc. , Louisville , Ky. , also reported favorable results , with net income of $ 66.7 million , or 66 cents , in the fourth quarter ended Aug. 31 , up from $ 58.2 million , or 59 cents , a year earlier . NNP NNP , NNP , NNP , RB VBD JJ NNS , IN JJ NN IN $ CD CD , CC CD NNS , IN DT JJ NN VBN NNP CD , IN IN $ CD CD , CC CD NNS , DT NN RBR .
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Analysts say the handful of hospital companies that are still publicly traded are benefiting from several trends . NNS VBP DT NN IN NN NNS WDT VBP RB RB VBN VBP VBG IN JJ NNS .
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Most important , hospital admission rates are stabilizing after several years of decline . JJS JJ , NN NN NNS VBP VBG IN JJ NNS IN NN .
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Moreover , companies have sold off many of their smaller , less-profitable hospitals and have completed painful restructurings . RB , NNS VBP VBN IN NN IN PRP$ JJR , JJ NNS CC VBP VBN JJ NNS .
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Humana 's revenues , for example , are being boosted by large increases in enrollments in the company 's health maintenance organizations . NNP POS NNS , IN NN , VBP VBG VBN IN JJ NNS IN NNS IN DT NN POS NN NN NNS .
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Says Todd Richter , an analyst with Dean Witter Reynolds : `` The shakeout in the publicly traded companies is over . VBZ NNP NNP , DT NN IN NNP NNP NNP : `` DT NN IN DT RB VBN NNS VBZ RB .
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Initial claims for regular state unemployment benefits rose to a seasonally adjusted 396,000 during the week ended Oct. 7 from 334,000 the previous week , the Labor Department said . JJ NNS IN JJ NN NN NNS VBD TO DT RB VBN CD IN DT NN VBN NNP CD IN CD DT JJ NN , DT NNP NNP VBD .
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The number of people receiving regular state benefits in the week ended Sept. 30 decreased to a seasonally adjusted 2,202,000 , or 2.2 % of those covered by unemployment insurance , from 2,205,000 the previous week , when the insured unemployment rate also was 2.2 % . DT NN IN NNS VBG JJ NN NNS IN DT NN VBN NNP CD VBD TO DT RB VBN CD , CC CD NN IN DT VBN IN NN NN , IN CD DT JJ NN , WRB DT VBN NN NN RB VBD CD NN .
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Counting all state and federal benefit programs , the number of people receiving unemployment benefits in the week ended Sept. 30 fell to 1,809,300 from 1,838,200 a week earlier . VBG DT NN CC JJ NN NNS , DT NN IN NNS VBG NN NNS IN DT NN VBN NNP CD VBD TO CD IN CD DT NN RBR .
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These figures are n't seasonally adjusted . DT NNS VBP RB RB VBN .
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A Labor Department spokesman said the unusually high number of initial claims for state unemployment benefits reflects the impact of Hurricane Hugo on southern states , particularly North Carolina and South Carolina . DT NNP NNP NN VBD DT RB JJ NN IN JJ NNS IN NN NN NNS VBZ DT NN IN NNP NNP IN JJ NNS , RB NNP NNP CC NNP NNP .
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The figure also may reflect initial claims filed by striking Nynex Corp. workers who have become eligible for unemployment benefits , the official said . DT NN RB MD VB JJ NNS VBN IN JJ NNP NNP NNS WP VBP VBN JJ IN NN NNS , DT NN VBD .
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Digital Equipment Corp. reported a 32 % decline in net income on a modest revenue gain in its fiscal first quarter , causing some analysts to predict weaker results ahead than they had expected . NNP NNP NNP VBD DT CD NN NN IN JJ NN IN DT JJ NN NN IN PRP$ JJ JJ NN , VBG DT NNS TO VB JJR NNS RB IN PRP VBD VBN .
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Although the second-largest computer maker had prepared Wall Street for a poor quarter , analysts said they were troubled by signs of flat U.S. orders and a slowdown in the rate of gain in foreign orders . IN DT JJ NN NN VBD VBN NNP NNP IN DT JJ NN , NNS VBD PRP VBD JJ IN NNS IN JJ NNP NNS CC DT NN IN DT NN IN NN IN JJ NNS .
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The Maynard , Mass. , company is in a transition in which it is trying to reduce its reliance on mid-range machines and establish a presence in workstations and mainframes . DT NNP , NNP , NN VBZ IN DT NN IN WDT PRP VBZ VBG TO VB PRP$ NN IN JJ NNS CC VB DT NN IN NNS CC NNS .
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Net for the quarter ended Sept. 30 fell to $ 150.8 million , or $ 1.20 a share , from $ 223 million , or $ 1.71 a share , a year ago . JJ IN DT NN VBN NNP CD VBD TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RB .
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Revenue rose 6.4 % to $ 3.13 billion from $ 2.94 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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Digital said a shift in its product mix toward low-end products and strong growth in workstation sales yielded lower gross margins . NNP VBD DT NN IN PRP$ NN NN IN JJ NNS CC JJ NN IN NN NNS VBD JJR JJ NNS .
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A spokesman also said margins for the company 's service business narrowed somewhat because of heavy investments made in that sector . DT NN RB VBD NNS IN DT NN POS NN NN VBD RB IN IN JJ NNS VBN IN DT NN .
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The lack of a strong product at the high end of Digital 's line was a significant drag on sales . DT NN IN DT JJ NN IN DT JJ NN IN NNP POS NN VBD DT JJ NN IN NNS .
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Digital hopes to address that with the debut of its first mainframe-class computers next Tuesday . NNP VBZ TO VB IN IN DT NN IN PRP$ JJ JJ NNS JJ NNP .
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The new line is aimed directly at International Business Machines Corp . DT JJ NN VBZ VBN RB IN NNP NNP NNP NNP .
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`` Until the new mainframe products kick in , there wo n't be a lot of revenue contribution at the high end , and that 's hurt us , '' said Mark Steinkrauss , Digital 's director of investor relations . `` IN DT JJ NN NNS VBP IN , EX MD RB VB DT NN IN NN NN IN DT JJ NN , CC DT VBZ VBN PRP , '' VBD NNP NNP , NNP POS NN IN NN NNS .
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He said unfavorable currency translations were also a factor in the quarter . PRP VBD JJ NN NNS VBD RB DT NN IN DT NN .
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DEC shares rose $ 1.375 to $ 89.75 apiece in consolidated New York Stock Exchange trading yesterday . NNP NNS VBD $ CD TO $ CD RB IN JJ NNP NNP NNP NNP NN NN .
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But analysts said that against the backdrop of a nearly 40-point rise in the Dow Jones Industrial Average , that should n't necessarily be taken as a sign of great strength . CC NNS VBD IN IN DT NN IN DT RB JJ NN IN DT NNP NNP NNP NNP , WDT MD RB RB VB VBN IN DT NN IN JJ NN .
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Some cut their earnings estimates for the stock this year and predicted more efforts to control costs ahead . DT VB PRP$ NNS NNS IN DT NN DT NN CC VBD JJR NNS TO VB NNS RB .
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`` I think the next few quarters will be difficult , '' said Steven Milunovich of First Boston . `` PRP VBP DT JJ JJ NNS MD VB JJ , '' VBD NNP NNP IN NNP NNP .
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`` Margins will remain under pressure , and when the new mainframe does ship , I 'm not sure it will be a big winner . `` NNS MD VB IN NN , CC WRB DT JJ NN VBZ NN , PRP VBP RB JJ PRP MD VB DT JJ NN .
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'' Mr. Milunovich said he was revising his estimate for DEC 's current year from $ 8.20 a share to `` well below $ 8 , '' although he has n't settled on a final number . '' NNP NNP VBD PRP VBD VBG PRP$ NN IN NNP POS JJ NN IN $ CD DT NN TO `` RB IN $ CD , '' IN PRP VBZ RB VBN IN DT JJ NN .
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One troubling aspect of DEC 's results , analysts said , was its performance in Europe . CD JJ NN IN NNP POS NNS , NNS VBD , VBD PRP$ NN IN NNP .
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DEC said its overseas business , which now accounts for more than half of sales , improved in the quarter . NNP VBD PRP$ JJ NN , WDT RB VBZ IN JJR IN NN IN NNS , VBN IN DT NN .
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It even took the unusually frank step of telling analysts in a morning conference call that orders in Europe were up in `` double digits '' in foreign-currency terms . PRP RB VBD DT RB JJ NN IN VBG NNS IN DT NN NN NN IN NNS IN NNP VBD IN IN `` JJ NNS '' IN NN NNS .
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That gain probably translated into about 5 % to 7 % in dollar terms , well below recent quarters ' gains of above 20 % , reckons Jay Stevens of Dean Witter Reynolds . DT NN RB VBD IN IN NN NN TO CD NN IN NN NNS , RB IN JJ NNS POS NNS IN IN CD NN , VBZ NNP NNP IN NNP NNP NNP .
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`` That was a disappointment '' and a sign of overall computer-market softness in Europe , Mr. Stevens said . `` DT VBD DT NN '' CC DT NN IN JJ JJ NN IN NNP , NNP NNP VBD .
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Marc Schulman , with UBS Securities in New York , dropped his estimate of DEC 's full-year net to $ 6.80 a share from $ 8 . NNP NNP , IN NNP NNP IN NNP NNP , VBD PRP$ NN IN NNP POS JJ JJ TO $ CD DT NN IN $ CD .
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Although overall revenues were stronger , Mr. Schulman said , DEC `` drew down its European backlog '' and had flat world-wide orders overall . IN JJ NNS VBD JJR , NNP NNP VBD , NNP `` VBD RB PRP$ JJ NN '' CC VBD JJ JJ NNS JJ .
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`` The bottom line is that it 's more hand to mouth than it has been before , '' he said . `` DT NN NN VBZ IN PRP VBZ JJR NN TO NN IN PRP VBZ VBN RB , '' PRP VBD .
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Mr. Schulman said he believes that the roll-out of DEC 's new mainframe will `` occur somewhat more leisurely '' than many of his investment colleagues expect . NNP NNP VBD PRP VBZ IN DT NN IN NNP POS JJ NN MD `` VB RB RBR JJ '' IN NN IN PRP$ NN NNS VBP .
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He said current expectations are for an entry level machine to be shipped in December , with all of the more sophisticated versions out by June . PRP VBD JJ NNS VBP IN DT NN NN NN TO VB VBN IN NNP , IN DT IN DT RBR JJ NNS IN IN NNP .
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For reasons he would n't elaborate on , he said he 's sure that schedule wo n't be met , meaning less profit impact from the product for DEC in the next few quarters . IN NNS PRP MD RB VB IN , PRP VBD PRP VBZ JJ DT NN MD RB VB VBN , NN JJR NN NN IN DT NN IN NNP IN DT JJ JJ NNS .
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John R. Wilke contributed to this article . NNP NNP NNP VBD TO DT NN .
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Colgate Palmolive Co. reported third-quarter net income rose 27 % , bolstered by strong sales in its Latin American business and surprisingly healthy profits from U.S. operations . NNP NNP NNP VBD JJ JJ NN VBD CD NN , VBN IN JJ NNS IN PRP$ NNP JJ NN CC RB JJ NNS IN NNP NNS .
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Colgate said net income for the quarter rose to $ 76.7 million , or $ 1.06 a share , on sales that increased 6 % to $ 1.3 billion . NNP VBD JJ NN IN DT NN VBD TO $ CD CD , CC $ CD DT NN , IN NNS WDT VBD CD NN TO $ CD CD .
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In the year-earlier period , Colgate posted net income of $ 60.2 million , or 88 cents a share . IN DT JJ NN , NNP VBD JJ NN IN $ CD CD , CC CD NNS DT NN .
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Last year 's results included earnings from discontinued operations of $ 13.1 million , or 19 cents a share . JJ NN POS NNS VBD NNS IN VBN NNS IN $ CD CD , CC CD NNS DT NN .
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Reuben Mark , chairman and chief executive officer of Colgate , said earnings growth was fueled by strong sales in Latin America , the Far East and Europe . NNP NNP , NN CC JJ JJ NN IN NNP , VBD NNS NN VBD VBN IN JJ NNS IN NNP NNP , DT NNP NNP CC NNP .
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Results were also bolstered by `` a very meaningful increase in operating profit at Colgate 's U.S. business , '' he said . NNS VBD RB VBN IN `` DT RB JJ NN IN VBG NN IN NNP POS NNP NN , '' PRP VBD .
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Operating profit at Colgate 's U.S. household products and personal care businesses , which include such well-known brands as Colgate toothpaste and Fab laundry detergent , jumped more than 40 % , the company said . NN NN IN NNP POS NNP NN NNS CC JJ NN NNS , WDT VBP JJ JJ NNS IN NNP NN CC NNP NN NN , VBD JJR IN CD NN , DT NN VBD .
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Mr. Mark attributed the improvement to cost savings achieved by consolidating manufacturing operations , blending together two sales organizations and more carefully focusing the company 's promotional activities . NNP NNP VBD DT NN TO VB NNS VBN IN VBG NN NNS , VBG RB CD NNS NNS CC RBR RB VBG DT NN POS JJ NNS .
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`` We 've done a lot to improve -LRB- U.S. . -RRB- results and a lot more will be done , '' Mr. Mark said . `` PRP VBP VBN DT NN TO VB ( NNP . ) NNS CC DT NN JJR MD VB VBN , '' NNP NNP VBD .
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`` Improving profitability of U.S. operations is an extremely high priority in the company . '' `` VBG NN IN NNP NNS VBZ DT RB JJ NN IN DT NN . ''
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Colgate 's results were at the high end of the range of analysts ' forecasts . NNP POS NNS VBD IN DT JJ NN IN DT NN IN NNS POS NNS .
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The scope of the improvement in the U.S. business caught some analysts by surprise . DT NN IN DT NN IN DT NNP NN VBD DT NNS IN NN .
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The company 's domestic business , especially its household products division , has performed poorly for years . DT NN POS JJ NN , RB PRP$ NN NNS NN , VBZ VBN RB IN NNS .
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Analysts say the earnings improvement came from cutting costs rather than increasing sales . NNS VBP DT NNS NN VBD IN VBG NNS RB IN VBG NNS .
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For the nine months , net increased 14 % to $ 217.5 million , or $ 3.09 a share . IN DT CD NNS , JJ VBN CD NN TO $ CD CD , CC $ CD DT NN .
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Sales rose 7 % to $ 3.8 billion . NNS VBD CD NN TO $ CD CD .
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The company earned $ 191.1 million , or $ 2.79 a share , in the year-earlier period . DT NN VBD $ CD CD , CC $ CD DT NN , IN DT JJ NN .
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Colgate 's 1988 net income included $ 40.1 million , or 59 cents a share , from discontinued operations . NNP POS CD JJ NN VBD $ CD CD , CC CD NNS DT NN , IN VBN NNS .
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Colgate sold its hospital supply and home health care business last year . NNP VBD PRP$ NN NN CC NN NN NN NN JJ NN .
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Separately , Colgate Wednesday finalized an agreement with MacroChem Corp. , a tiny dental products and pharmaceutical concern based in Billerica , Mass. , to market in the U.S. four of MacroChem 's FDA-approved dental products . RB , NNP NNP VBD DT NN IN NNP NNP , DT JJ JJ NNS CC JJ NN VBN IN NNP , NNP , TO VB IN DT NNP CD IN NNP POS JJ JJ NNS .
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The products -- sealants and bonding materials used by dentists -- all contain fluoride that is released over time . DT NNS : NNS CC VBG NNS VBN IN NNS : DT VB NN WDT VBZ VBN IN NN .
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The move is part of a drive to increase Colgate 's business with dentists , a company spokeswoman said . DT NN VBZ NN IN DT NN TO VB NNP POS NN IN NNS , DT NN NN VBD .
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Terms of the agreement were n't given . NNS IN DT NN VBD RB VBN .
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USACafes Limited Partnership said it completed the sale of its Bonanza restaurant franchise system to a subsidiary of Metromedia Co. for $ 71 million in cash . NNP NNP NNP VBD PRP VBD DT NN IN PRP$ NNP NN NN NN TO DT NN IN NNP NNP IN $ CD CD IN NN .
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USACafes , which is nearly half-owned by Sam and Charles Wyly of Dallas , said it will distribute proceeds from the sale to unit holders as a liquidating dividend as soon as possible . NNP , WDT VBZ RB JJ IN NNP CC NNP NNP IN NNP , VBD PRP MD VB NNS IN DT NN TO NN NNS IN DT VBG NN RB RB IN JJ .
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The Bonanza franchise system , which generates about $ 600 million in sales annually , represented substantially all of the partnership 's assets . DT NNP NN NN , WDT VBZ RB $ CD CD IN NNS RB , VBD RB DT IN DT NN POS NNS .
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The sale of the system has been challenged in a class-action suit on behalf of unit holders filed last week in a Delaware court , USACafes said . DT NN IN DT NN VBZ VBN VBN IN DT JJ NN IN NN IN NN NNS VBD JJ NN IN DT NNP NN , NNP VBD .
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The company said it believes the suit is without merit . DT NN VBD PRP VBZ DT NN VBZ IN NN .
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American Telephone & Telegraph Co. unveiled a sweetened pension and early-retirement program for management that it hopes will enable it to save $ 450 million in the next year . NNP NNP CC NNP NNP VBD DT VBN NN CC NN NN IN NN IN PRP VBZ MD VB PRP TO VB $ CD CD IN DT JJ NN .
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AT&T also said net income rose 19 % in the third quarter . NNP RB VBD JJ NN VBD CD NN IN DT JJ NN .
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AT&T said its amended pension program will nearly double to 34,000 the number of managers eligible to retire with immediate pension payments . NNP VBD PRP$ VBN NN NN MD RB JJ TO CD DT NN IN NNS JJ TO VB IN JJ NN NNS .
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AT&T said that based on studies of other companies that have offered retirement plans , it expects about one-third of its eligible managers to retire under the new program . NNP VBD WDT VBD IN NNS IN JJ NNS WDT VBP VBN NN NNS , PRP VBZ IN NN IN PRP$ JJ NNS TO VB IN DT JJ NN .
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AT&T said third-quarter net income grew , despite stiff competition in all of the company 's markets . NNP VBD JJ JJ NN VBD , IN JJ NN IN DT IN DT NN POS NNS .
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Net income rose to $ 699 million , or 65 cents a share , from the year-earlier $ 587 million , or 55 cents a share . JJ NN VBD TO $ CD CD , CC CD NNS DT NN , IN DT JJ $ CD CD , CC NN NNS DT NN .
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Revenue edged up to $ 8.9 billion from $ 8.81 billion . NN VBD IN TO $ CD CD IN $ CD CD .
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The latest period 's net was reduced $ 102 million , or nine cents a share , for a change in depreciation method and concurrent changes in estimates of depreciable lives and net salvage for certain telecommunications equipment . DT JJS NN POS NN VBD VBN $ CD CD , CC CD NNS DT NN , IN DT NN IN NN NN CC JJ NNS IN NNS IN JJ NNS CC JJ NN IN JJ NNS NN .
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The results roughly matched estimates of securities analysts , who were encouraged by AT&T increasing its operating margin to 13 % from 11 % a year ago , because of continued cost-cutting efforts . DT NNS RB VBN NNS IN NNS NNS , WP VBD VBN IN NNP VBG PRP$ NN NN TO CD NN IN CD NN DT NN RB , IN IN VBN JJ NNS .
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Sales of long-distance services , an extremely competitive market , rose 6.4 % . NNS IN JJ NNS , DT RB JJ NN , VBD CD NN .
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But the growth was partly offset by lower equipment sales and rentals and price cuts on some products . CC DT NN VBD RB VB IN JJR NN NNS CC NNS CC NN NNS IN DT NNS .
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Under the amended pension program , AT&T managers who have at least five years of service will have five years added to their age and length of service for pension purposes . IN DT VBN NN NN , NNP NNS WP VBP IN JJS CD NNS IN NN MD VB CD NNS VBD TO PRP$ NN CC NN IN NN IN NN NNS .
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Managers who retire Dec. 30 will have an additional 15 % added to their monthly pension for as long as five years or age 65 , whichever comes earlier . NNS WP VBP NNP CD MD VB DT JJ CD NN VBD TO PRP$ JJ NN IN RB RB IN CD NNS CC NN CD , WDT VBZ RBR .
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An AT&T spokeswoman said the company would likely replace about one-third of its managers who choose to retire with new employees . DT NNP NN VBD DT NN MD RB VB IN NN IN PRP$ NNS WP VBP TO VB IN JJ NNS .
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Analysts hailed the sweetened pension package , which they said had been the subject of rumors for several months . NNS VBD DT VBN NN NN , WDT PRP VBD VBN VBN DT NN IN NNS IN JJ NNS .
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`` This tells you AT&T is serious about continuing to manage their cost structure and is committed to 20%-a-year earnings growth , '' said Jack Grubman , an analyst with PaineWebber Inc . `` DT VBZ PRP NNP VBZ JJ IN VBG TO VB PRP$ NN NN CC VBZ VBN TO VB NNS NN , '' VBD NNP NNP , DT NN IN NNP NNP .
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But other analysts expressed disappointment that the cost-cutting move wo n't result in even greater earnings growth . CC JJ NNS VBD NN IN DT JJ NN MD RB VB IN RB JJR NNS NN .
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`` This is a good move , but it only gets you to where people 's expectations already are , '' in terms of earnings growth , said Joel D. Gross , an analyst with Donaldson , Lufkin & Jenrette . `` DT VBZ DT JJ NN , CC PRP RB VBZ PRP TO WRB NNS POS NNS RB VBP , '' IN NNS IN NNS NN , VBD NNP NNP NNP , DT NN IN NNP , NNP CC NNP .
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Mr. Gross said he had hoped that a cost savings of $ 450 million would result in even greater growth than the 20 % annual earnings increase AT&T has told analysts it expects in the future . NNP NNP VBD PRP VBD VBN IN DT NN NNS IN $ CD CD MD VB IN RB JJR NN IN DT CD NN JJ NNS NN NNP VBZ VBN NNS PRP VBZ IN DT NN .
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AT&T said the special retirement option will increase fourth-quarter expenses . NNP VBD DT JJ NN NN MD VB JJ NNS .
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But the company said the amount ca n't be determined until it knows how many managers opt to retire . CC DT NN VBD DT NN MD RB VB VBN IN PRP VBZ WRB JJ NNS VBP TO VB .
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AT&T said the expense increase will be largely offset by a gain from its previously announced plan to swap its holdings in Ing . C. Olivetti & Co. for shares in Cie . Industriali Riunite , an Italian holding company . NNP VBD DT NN NN MD VB RB VB IN DT NN IN PRP$ RB VBD NN TO VB PRP$ NNS IN NNP . NNP NNP CC NNP IN NNS IN NNP . NNP NNP , DT JJ NN NN .
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For the nine months , AT&T said net income was $ 1.99 billion , or $ 1.85 a share , up 19 % from $ 1.67 billion , or $ 1.56 a share . IN DT CD NNS , NNP VBD JJ NN VBD $ CD CD , CC $ CD DT NN , IN CD NN IN $ CD CD , CC $ CD DT NN .
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Revenue gained 3.1 % to $ 26.81 billion from $ 26 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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In composite trading yesterday on the New York Stock Exchange , AT&T shares closed at $ 43.375 , up 87.5 cents . IN JJ NN NN IN DT NNP NNP NNP NNP , NNP NNS VBD IN $ CD , IN CD NNS .
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When it comes to buying and selling shares , Westridge Capital Management Inc. takes a back seat to no one . WRB PRP VBZ TO VBG CC VBG NNS , NNP NNP NNP NNP VBZ DT JJ NN TO DT CD .
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Every dollar 's worth of stock in the Los Angeles money manager 's portfolio is traded seven or eight times a year , the firm estimates . DT NN POS NN IN NN IN DT NNP NNP NN NN POS NN VBZ VBN CD CC CD VBZ DT NN , DT NN NNS .
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That makes it the most active trader among all the nation 's investment advisers , according to Securities and Exchange Commission filings . DT VBZ PRP DT RBS JJ NN IN PDT DT NN POS NN NNS , VBG TO NNPS CC NNP NNP NNS .
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But wait a second . CC VB DT NN .
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Westridge Capital is an index fund -- the type of stolid long-term investor whose goal is to be nothing more than average . NNP NNP VBZ DT NN NN : DT NN IN JJ JJ NN WP$ NN VBZ TO VB NN JJR IN NN .
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Westridge Capital 's frenetic trading reflects the changes sweeping through the previously sleepy world of indexing . NNP NNP POS JJ NN VBZ DT NNS VBG IN DT RB JJ NN IN NN .
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Indexing for the most part has involved simply buying and then holding stocks in the correct mix to mirror a stock market barometer , such as Standard & Poor 's 500-stock index , and match its performance . NN IN DT RBS NN VBZ VBN RB VBG CC RB VBG NNS IN DT JJ NN TO VB DT NN NN NN , JJ IN NNP CC NNP POS JJ NN , CC VB PRP$ NN .
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Institutional investors have poured $ 210 billion into stock and bond indexing as a cheap and easy form of investment management that promises to post average market returns . JJ NNS VBP VBN $ CD CD IN NN CC NN NN IN DT JJ CC JJ NN IN NN NN WDT VBZ TO VB JJ NN NNS .
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These big investors have flocked to indexing because relatively few `` active '' stock pickers have been able to consistently match the returns of the S&P 500 or other bellwethers , much less beat it . DT JJ NNS VBP VBN TO NN IN RB JJ `` JJ '' NN NNS VBP VBN JJ TO RB VB DT NNS IN DT NNP CD CC JJ NNS , RB JJR VB PRP .
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And the fees investors pay for indexing run a few pennies for each $ 100 of assets -- a fraction of the cost of active managers . CC DT NNS NNS VBP IN NN NN DT JJ NNS IN DT $ CD IN NNS : DT NN IN DT NN IN JJ NNS .
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That 's because computers do most of the work , and low trading activity keeps a lid on commission costs . DT VBZ IN NNS VBP RBS IN DT NN , CC JJ NN NN VBZ DT NN IN NN NNS .
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But today , indexing is moving from a passive investment strategy to an increasingly active one . CC NN , NN VBZ VBG IN DT JJ NN NN TO DT RB JJ CD .
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Because index-fund managers are no longer satisfied with merely being average , they have developed `` enhanced '' indexing strategies that are intended to outperform the market as much as three percentage points . IN JJ NNS VBP RB RB VBN IN RB VBG JJ , PRP VBP VBN `` VBN '' NN NNS WDT VBP VBN TO VB DT NN RB JJ IN CD NN NNS .
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`` Indexing has been the most single successful investment concept in the last decade , but the index money has been just sort of sitting there , '' says Seth M. Lynn , president of Axe Core Investors Inc. , an indexer based in Tarrytown , N.Y . `` NN VBZ VBN DT RBS JJ JJ NN NN IN DT JJ NN , CC DT NN NN VBZ VBN RB NN IN VBG EX , '' VBZ NNP NNP NNP , NN IN NNP NNP NNP NNP , DT NN VBN IN NNP , NNP .
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`` Now the interest is in what else can I do with that money . '' `` RB DT NN VBZ IN WP RB MD PRP VB IN DT NN . ''
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Among the souped-up indexing strategies : Indexed portfolios can be built around thousands of stocks , or just a few dozen , rather than being restricted to the S&P 500 companies . IN DT JJ NN NNS : JJ NNS MD VB VBN IN NNS IN NNS , CC RB DT JJ NN , RB IN VBG VBN TO DT NNP CD NNS .
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They can ignore the S&P 500 stocks altogether and focus on particular types of stocks , such as smaller companies , those paying high dividends or companies in a particular industry , state or country . PRP MD VB DT NNP CD NNS RB CC NN IN JJ NNS IN NNS , JJ IN JJR NNS , DT VBG JJ NNS CC NNS IN DT JJ NN , NN CC NN .
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With today 's computer-driven program trading techniques , index funds can trade back and forth between stock-index futures and the actual stocks making up indexes such as the S&P 500 . IN NN POS JJ NN NN NNS , NN NNS MD VB RB CC RB IN NN NNS CC DT JJ NNS VBG IN NNS JJ IN DT NNP CD .
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Futures and options also make it possible to build `` synthetic '' index funds that do n't actually own a single share of stock , but can produce returns that match or exceed the broad stock market . NNS CC NNS RB VBP PRP JJ TO VB `` JJ '' NN NNS WDT VBP RB RB VB DT JJ NN IN NN , CC MD VB NNS WDT VBP CC VB DT JJ NN NN .
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One reason for these hybrids is that indexing 's rapid growth is slowing , particularly for those `` plain vanilla '' funds that mirror the S&P 500 . CD NN IN DT NNS VBZ DT NN POS JJ NN VBZ VBG , RB IN DT `` JJ NN '' VBZ DT NN DT NNP CD .
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`` There is n't a boatload -LCB- of big investors -RCB- out there still waiting to get into indexing , '' says P. James Kartalia , vice president of ANB Investment Management Co. , Chicago , which offers both indexing and active management services . `` EX VBZ RB DT NN ( IN JJ NNS ) IN EX RB VBG TO VB IN NN , '' VBZ NNP NNP NNP , NN NN IN NNP NNP NNP NNP , NNP , WDT VBZ DT NN CC JJ NN NNS .
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-LRB- After tripling in size in the past five years , index funds now hold about 20 % of the stock owned by pension funds . -RRB- ( IN VBG IN NN IN DT JJ CD NNS , NN NNS RB VBP IN CD NN IN DT NN VBN IN NN NNS . )
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A further problem is razor-thin profits . DT JJ NN VBZ JJ NNS .
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Plain-vanilla funds have become so commonplace that fees they can charge have plunged to almost nothing , and in some cases are just that . JJ NNS VBP VBN RB JJ IN NNS PRP MD VB NN VBN TO JJ NN , CC IN DT NNS VBP RB DT .
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To land customers for their well-paying stock custodial business , big banks sometimes will throw in basic indexing services for free . TO VB NNS IN PRP$ JJ NN JJ NN , JJ NNS RB MD VB IN JJ NN NNS IN JJ .
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`` It 's like getting a free toaster when you open an account , '' says Axe Core 's Mr. Lynn . `` PRP VBZ IN VBG DT JJ NN WRB PRP VB DT NN , '' VBZ NNP NNP POS NNP NNP .
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As a result , indexers have been looking for ways to give investors something more than the average for their money . IN DT NN , NNS VBP VBN VBG IN NNS TO VB NNS NN JJR IN DT NN IN PRP$ NN .
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And many have been successful , as in the case of the index fund operated by hyper-trader Westridge Capital . CC JJ NN VBN JJ , IN IN DT NN IN DT NN NN VBN IN NN NNP NNP .
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Westridge Capital has used enhanced indexing techniques to beat the S&P 500 's returns by 2.5 to 3 percentage points over the past four years , with the same risk level as holding the S&P 500 stocks , according to James Carder , the firm 's president . NNP NNP VBZ VBN VBN NN NNS TO VB DT NNP CD POS NNS IN CD TO CD NN NNS IN DT JJ CD NNS , IN DT JJ NN NN IN VBG DT NNP CD NNS , VBG TO NNP NNP , DT NN POS NN .
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Strategies vary for Westridge Capital , which has $ 300 million under management . NNS VBP IN NNP NNP , WDT VBZ $ CD CD IN NN .
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The firm sometimes buys S&P 500 futures when they are selling at a discount to the actual stocks , and will switch back and forth between stocks and stock-index futures to take advantages of any momentary price discrepencies . DT NN RB VBZ NNP CD NNS WRB PRP VBP VBG IN DT NN TO DT JJ NNS , CC MD VB RB CC RB IN NNS CC NN NNS TO VB NNS IN DT JJ NN NNS .
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Mr. Carder also goes through periods when he buys stocks in conjunction with options to boost returns and protect against declines . NNP NNP RB VBZ IN NNS WRB PRP VBZ NNS IN NN IN NNS TO VB NNS CC VB IN NNS .
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And in some months , he buys stock-index futures and not stocks at all . CC IN DT NNS , PRP VBZ NN NNS CC RB VBZ IN DT .
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`` By their nature , our trades are very short-term and are going to create high turnover , '' Mr. Carder adds . `` IN PRP$ NN , PRP$ NNS VBP RB JJ CC VBP VBG TO VB JJ NN , '' NNP NNP VBZ .
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`` The more turnover , the better for our clients . '' `` DT JJR NN , DT JJR IN PRP$ NNS . ''
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Big indexer Bankers Trust Co. also uses futures in a strategy that on average has added one percentage point to its enhanced fund 's returns . JJ NN NNP NNP NNP RB VBZ NNS IN DT NN IN IN NN VBZ VBN CD NN NN TO PRP$ VBN NN POS NNS .
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J. Thomas Allen , president of Pittsburgh-based Advanced Investment Management Inc. , agrees it 's a good idea to jump between the S&P 500 stocks and futures . NNP NNP NNP , NN IN JJ NNP NNP NNP NNP , VBZ PRP VBZ DT JJ NN TO VB IN DT NNP CD NNS CC NNS .
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`` You 're buying the S&P , and you always want to hold the cheapest form of it , '' he says . `` PRP VBP VBG DT NNP , CC PRP RB VBP TO VB DT JJS NN IN PRP , '' PRP VBZ .
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But some indexers make little or no use of futures , saying that these instruments present added risks for investors . CC DT NNS VBP JJ CC DT NN IN NNS , VBG IN DT NNS NN VBD NNS IN NNS .
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`` If the futures markets have a problem , then those products could have a problem , '' says John Zumbrunn , managing director of Prudential Insurance Co. of America 's Investment Index Technologies Inc. unit . `` IN DT NNS NNS VBP DT NN , RB DT NNS MD VB DT NN , '' VBZ NNP NNP , VBG NN IN NNP NNP NNP IN NNP POS NNP NNP NNP NNP NN .
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Prudential currently is seeking approval to offer a new fund offering a return equal to the S&P 500 index plus 5\/100 of a percentage point . NNP RB VBZ VBG NN TO VB DT JJ NN VBG DT NN JJ TO DT NNP CD NN CC CD IN DT NN NN .
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An added feature is that the slighty improved return would be guaranteed by Prudential . DT VBN NN VBZ IN DT NN VBD NN MD VB VBN IN NNP .
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There are many other strategies to bolster the returns of index funds . EX VBP JJ JJ NNS TO VB DT NNS IN NN NNS .
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They include : PRP VBP :
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LIMITED RISK FUNDS : JJ NN NNS :
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These guarantee protection against stock market declines while still passing along most gains . DT NN NN IN NN NN NNS IN RB VBG IN RBS NNS .
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Here a fund may promise to pay back , say , $ 95 of every $ 100 invested for a year , even if the market goes much lower . RB DT NN MD VB TO VB RB , VBP , $ CD IN DT $ CD VBN IN DT NN , RB IN DT NN VBZ RB JJR .
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The fund could invest $ 87 for one year in Treasury bills yielding 8 % to return the guaranteed $ 95 . DT NN MD VB $ CD IN CD NN IN NNP NNS VBG CD NN TO VB DT VBN $ CD .
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That leaves $ 13 , which could be used to buy S&P 500 options that will nearly match any gain in the S&P index . DT VBZ $ CD , WDT MD VB VBN TO VB NNP CD NNS WDT MD RB VB DT NN IN DT NNP NN .
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MANAGER REPLICATION FUNDS : NN NN NNS :
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Say a big investor is interested in growth stocks . VB DT JJ NN VBZ JJ IN NN NNS .
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Instead of hiring one of the many active managers specializing in growth stocks , indexers can design a portfolio around the same stocks ; the portfolio will be maintained by computer , reducing both fees and , in theory , risk -LRB- because of the large number of stocks -RRB- . RB IN VBG CD IN DT JJ JJ NNS VBG IN NN NNS , NNS MD VB DT NN IN DT JJ NNS : DT NN MD VB VBN IN NN , VBG DT NNS CC , IN NN , NN ( IN IN DT JJ NN IN NNS ) .
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`` We see a lot of interest in those kind of things , '' says Frank Salerno , a vice president of Bankers Trust . `` PRP VBP DT NN IN NN IN DT NN IN NNS , '' VBZ NNP NNP , DT NN NN IN NNP NNP .
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`` People comfortable with the passive approach are using them for other strategies . '' `` NNS JJ IN DT JJ NN VBP VBG PRP IN JJ NNS . ''
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TILT FUNDS : NN NNS :
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This is an index fund with a bet . DT VBZ DT NN NN IN DT NN .
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Instead of replicating the S&P 500 or some other index exactly , some stocks are overweighted or underweighted in the portfolio . RB IN VBG DT NNP CD CC DT JJ NN RB , DT NNS VBP VBN CC VBN IN DT NN .
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One simple approach is to exclude S&P 500 companies considered bankruptcy candidates ; this can avoid weak sisters , but also can hurt when a company like Chrysler Corp. rebounds . CD JJ NN VBZ TO VB NNP CD NNS VBD NN NNS : DT MD VB JJ NNS , CC RB MD VB WRB DT NN IN NNP NNP VBZ .
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Another approach : An investor with $ 100 million might use $ 75 million to buy the S&P 500 index and spend the other $ 25 million on a favorite group of stocks . DT NN : DT NN IN $ CD CD MD VB $ CD CD TO VB DT NNP CD NN CC VB DT JJ $ CD CD IN DT JJ NN IN NNS .
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SPECIALIZED FUNDS : JJ NNS :
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Indexes can be constructed to serve social goals , such as eliminating the stocks of companies doing business in South Africa . NNS MD VB VBN TO VB JJ NNS , JJ IN VBG DT NNS IN NNS VBG NN IN NNP NNP .
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Other funds have been designed to concentrate on stocks in a geographic area in order to encourage local investment . JJ NNS VBP VBN VBN TO VB IN NNS IN DT JJ NN IN NN TO VB JJ NN .
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Pennsylvania State Employees Retirement System , for example , has about $ 130 million invested in a fund of 244 companies that are either Pennsylvania-based or have 25 % of their work forces in the state . NNP NNP NNP NNP NNP , IN NN , VBZ RB $ CD CD VBN IN DT NN IN CD NNS WDT VBP DT JJ CC VBP CD NN IN PRP$ NN NNS IN DT NN .
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Short interest on the New York Stock Exchange declined for the second consecutive month , this time 4.2 % , while the American Stock Exchange reported its third consecutive record month of short interest . JJ NN IN DT NNP NNP NNP NNP VBD IN DT JJ JJ NN , DT NN CD NN , IN DT NNP NNP NNP VBD PRP$ JJ JJ NN NN IN JJ NN .
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The Big Board reported that short interest dropped to 523,920,214 shares as of Oct. 13 from 547,347,585 shares in mid-September . DT NNP NNP VBD IN JJ NN VBD TO CD NNS IN IN NNP CD IN CD NNS IN NNP .
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Amex short interest climbed 3 % to 53,496,665 shares from 51,911,566 shares . NNP JJ NN VBD CD NN TO CD NNS IN CD NNS .
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For the year-earlier month , the Big Board reported 461,539,056 shares , indicating a 13.5 % year-to-year rise , while the Amex reported 36,015,194 shares , a 48 % leap . IN DT JJ NN , DT NNP NNP VBD CD NNS , VBG DT CD NN JJ NN , IN DT NNP VBD CD NNS , DT CD NN NN .
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Amex short interest has been heading upward since mid-December , with increases in each month since then except at mid-July . NNP JJ NN VBZ VBN VBG RB IN NNP , IN NNS IN DT NN IN RB IN IN NN .
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Traders who sell short borrow stock and sell it , betting that the stock 's price will decline and that they can buy the shares back later at a lower price for return to the lender . NNS WP VBP JJ VB NN CC VB PRP , VBG IN DT NN POS NN MD VB CC IN PRP MD VB DT NNS RB RB IN DT JJR NN IN NN TO DT NN .
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Short interest is the number of shares that have n't yet been purchased for return to lenders . JJ NN VBZ DT NN IN NNS WDT VBP RB RB VBN VBN IN NN TO NNS .
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Although a substantial short position reflects heavy speculation that a stock 's price will decline , some investors consider an increase in short interest bullish because the borrowed shares eventually must be bought back . IN DT JJ JJ NN VBZ JJ NN IN DT NN POS NN MD VB , DT NNS VBP DT NN IN JJ NN JJ IN DT VBN NNS RB MD VB VBN RB .
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Fluctuation in short interest of certain stocks also may be caused partly by arbitraging . NN IN JJ NN IN JJ NNS RB MD VB VBN RB IN VBG .
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The figures occasionally include incomplete transactions in restricted stock . DT NNS RB VBP JJ NNS IN VBN NN .
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The level of negative sentiment measured by the Big Board short interest ratio slipped to 3.36 from last month 's 3.38 . DT NN IN JJ NN VBN IN DT NNP NNP JJ NN NN VBD TO CD IN JJ NN POS CD .
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The ratio is the number of trading days , at the exchange 's average trading volume , that would be required to convert the total short interest position . DT NN VBZ DT NN IN NN NNS , IN DT NN POS JJ NN NN , WDT MD VB VBN TO VB DT JJ JJ NN NN .
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Some analysts suggest , however , that the ratio has weakened in value as an indicator because options and other products can be used to hedge short positions . DT NNS VBP , RB , IN DT NN VBZ VBN IN NN IN DT NN IN NNS CC JJ NNS MD VB VBN TO VB JJ NNS .
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Varity Corp. led the Big Board list of largest short volumes with 12,822,563 shares . NNP NNP VBD DT NNP NNP NN IN JJS JJ NNS IN CD NNS .
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Varity has proposed to acquire K-H Corp. , consisting of the auto parts division and some debt of Fruehauf Corp. , for $ 577.3 million of cash and securities . NNP VBZ VBN TO VB NNP NNP , VBG IN DT NN NNS NN CC DT NN IN NNP NNP , IN $ CD CD IN NN CC NNS .
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Chemical Waste Management posted the biggest increase in short volume on the New York exchange , up 3,383,477 shares to 5,267,238 . NNP NNP NNP VBD DT JJS NN IN JJ NN IN DT NNP NNP NN , IN CD NNS TO CD .
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Bristol-Myers Squibb Co. , the entity formed from the recent acquisition of Squibb Corp. by Bristol-Myers Co. , logged the largest volume decline , 7,592,988 shares , to 12,017,724 . NNP NNP NNP , DT NN VBN IN DT JJ NN IN NNP NNP IN NNP NNP , VBD DT JJS NN NN , CD NNS , TO CD .
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Short interest in International Business Machines Corp. plunged to 1,425,035 shares from 2,387,226 shares a month earlier . JJ NN IN NNP NNP NNP NNP VBD TO CD NNS IN CD VBZ DT NN RBR .
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Also closely watched is Exxon Corp. , where short interest slid to 4,469,167 shares from 5,088,774 . RB RB VBD VBZ NNP NNP , WRB JJ NN VBD TO CD NNS IN CD .
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On a percentage basis , Germany Fund Inc. led the gainers , leaping to 67,972 shares from three shares . IN DT NN NN , NNP NNP NNP VBD DT NNS , VBG TO CD NNS IN CD NNS .
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TransCanada PipeLines Ltd. led the percentage decliners , dropping to 59 shares from 183,467 . NNP NNP NNP VBD DT NN NNS , VBG TO CD NNS IN CD .
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The Amex short interest volume leader again was Texas Air Corp. , rising to 3,820,634 shares from 3,363,949 . DT NNP JJ NN NN NN RB VBD NNP NNP NNP , VBG TO CD NNS IN CD .
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Bolar Pharmaceutical Co. posted the largest volume increase , 552,302 shares , to 2,157,656 . NNP NNP NNP VBD DT JJS NN NN , CD NNS , TO CD .
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The company is under an investigation concerning procedures to gain Food and Drug Administration approval of generic drugs . DT NN VBZ IN DT NN VBG NNS TO VB NNP CC NNP NNP NN IN JJ NNS .
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Bolar has denied any wrongdoing . NNP VBZ VBN DT NN .
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The largest volume drop -- down 445,645 shares to 141,903 -- came in shares represented by B.A.T Industries PLC 's American depositary receipts . DT JJS NN NN : RB CD NNS TO CD : VBD IN NNS VBN IN NNP NNP NNP POS JJ NN NNS .
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The company is facing a takeover proposal from the financier Sir James Goldsmith . DT NN VBZ VBG DT NN NN IN DT NN NNP NNP NNP .
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First Iberian Fund led the percentage increases , rising to 73,100 shares from 184 . NNP NNP NNP VBD DT NN NNS , VBG TO CD NNS IN CD .
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Nelson Holdings International Ltd. dropped the most on a percentage basis , to 1,000 shares from 255,923 . NNP NNP NNP NNP VBD DT RBS IN DT NN NN , TO CD NNS IN CD .
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The adjacent tables show the Big Board and Amex issues in which a short interest position of at least 100,000 shares existed as of mid-October or in which there was a short position change of at least 50,000 shares since mid-September . DT JJ NNS VBP DT NNP NNP CC NNP NNS IN WDT DT JJ NN NN IN IN JJS CD NNS VBD IN IN NNP CC IN WDT EX VBD DT JJ NN NN IN IN JJS CD NNS IN NNP .
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Your Oct. 12 editorial `` Pitiful , Helpless Presidency ? '' correctly states that I was critical of the Bush administration 's failure to have any plan in place to respond in a timely fashion to the opportunities to oust Manuel Noriega presented by the attempted military coup on Oct. 3 . PRP$ NNP CD NN `` NNP , NNP NNP . '' RB VBZ IN PRP VBD JJ IN DT NNP NN POS NN TO VB DT NN IN NN TO VB IN DT JJ NN TO DT NNS TO VB NNP NNP VBN IN DT VBN JJ NN IN NNP CD .
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You are absolutely wrong , however , in opining that this position is some kind of `` flip-flop , '' something newly arrived at as a result of reading the opinion polls . PRP VBP RB JJ , RB , IN VBG IN DT NN VBZ DT NN IN `` NN , '' NN RB VBD IN IN DT NN IN VBG DT NN NNS .
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My position is one founded on both the facts and the law . PRP$ NN VBZ CD VBN IN DT DT NNS CC DT NN .
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Although you may have forgotten , public opinion about Gen. Noriega is where it is in large measure because of my investigation of his years of involvement in narcotics smuggling -LRB- and simultaneous work as a U.S. operative -RRB- . IN PRP MD VB VBN , JJ NN IN NNP NNP VBZ WRB PRP VBZ IN JJ NN IN IN PRP$ NN IN PRP$ NNS IN NN IN NNS VBG ( CC JJ NN IN DT NNP JJ ) .
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The public made up its mind about Gen. Noriega largely as a result of the hearings I chaired in the Subcommittee on Terrorism and Narcotics of the Foreign Relations Committee on Feb. 8 , 9 , 10 and 11 , 1988 , and again on April 4 , 1988 . DT RB VBN IN PRP$ NN IN NNP NNP RB IN DT NN IN DT NNS PRP VBD IN DT NNP IN NNP CC NNPS IN DT NNP NNP NNP IN NNP CD , CD , CD CC CD , CD , CC RB IN NNP CD , CD .
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It was during those hearings that the nation first learned the breadth and depth of Gen. Noriega 's criminality , and of his enduring relationships with a variety of U.S. government agencies . PRP VBD IN DT NNS IN DT NN JJ VBD DT NN CC NN IN NNP NNP POS NN , CC IN PRP$ VBG NNS IN DT NN IN NNP NN NNS .
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Those hearings also highlighted how Gen. Noriega was able to use his relationships with these agencies to delay U.S. action against him , and to exploit the administration 's obsession with overthrowing the Sandinistas to protect his own drug-dealing . DT NNS RB VBN WRB NNP NNP VBD JJ TO VB PRP$ NNS IN DT NNS TO VB NNP NN IN PRP , CC TO VB DT NN POS NN IN VBG DT NNPS TO VB PRP$ JJ NN .
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As former Ambassador to Costa Rica Francis J. McNeil testified before the subcommittee , the Reagan administration knew that Gen. Noriega was involved with narcotics , but made a decision in the summer of 1986 `` to put Gen. Noriega on the shelf until Nicaragua was settled . '' IN JJ NNP TO NNP NNP NNP NNP NNP VBD IN DT NN , DT NNP NN VBD IN NNP NNP VBD VBN IN NNS , CC VBD DT NN IN DT NN IN CD `` TO VB NNP NNP IN DT NN IN NNP VBD VBN . ''
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As the report issued by the subcommittee concluded , `` Our government did nothing regarding Gen. Noriega 's drug business and substantial criminal involvement because the first priority was the Contra war . IN DT NN VBN IN DT NN VBD , `` PRP$ NN VBD NN VBG NNP NNP POS NN NN CC JJ JJ NN IN DT JJ NN VBD DT NNP NN .
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This decision resulted in at least some drugs entering the United States as a hidden cost of the war . '' DT NN VBD IN IN JJS DT NNS VBG DT NNP NNPS IN DT VBN NN IN DT NN . ''
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Unfortunately , this problem continued even after Gen. Noriega 's indictment . RB , DT NN VBD RB IN NNP NNP POS NN .
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Throughout 1988 and this year , I and others in Congress have pressed the U.S. to develop a plan for pushing this `` narcokleptocrat '' out of Panama . IN CD CC DT NN , PRP CC NNS IN NNP VBP VBN DT NNP TO VB DT NN IN VBG DT `` NN '' IN IN NNP .
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Regrettably , two administrations in a row have been unwilling and unable to develop any plan , military or economic , for supporting the Panamanian people in their attempts to restore democracy . RB , CD NNS IN DT NN VBP VBN JJ CC JJ TO VB DT NN , JJ CC JJ , IN VBG DT JJ NNS IN PRP$ NNS TO VB NN .
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Sen. John Kerry -LRB- D. , Mass . -RRB- NNP NNP NNP ( NNP , NNP . )
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For Vietnamese , these are tricky , often treacherous , times . IN JJ , DT VBP JJ , RB JJ , NNS .
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After years of hesitation , economic and political reform was embraced at the end of 1986 , but ringing declarations have yet to be translated into much action . IN NNS IN NN , JJ CC JJ NN VBD VBN IN DT NN IN CD , CC VBG NNS VBP RB TO VB VBN IN JJ NN .
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Vietnam is finding that turning a stagnant socialist order into a dynamic free market does n't come easy . NNP VBZ VBG IN VBG DT JJ JJ NN IN DT JJ JJ NN VBZ RB VB JJ .
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Here is how three Vietnamese are coping with change : RB VBZ WRB CD JJ VBP VBG IN NN :
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The Tire King DT NNP NNP
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Nguyen Van Chan is living proof that old ways die hard . NNP NNP NNP VBZ VBG NN IN JJ NNS VBP JJ .
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Mr. Chan used to be an oddity in Hanoi : a private entrepreneur . NNP NNP VBD TO VB DT NN IN NNP : DT JJ NN .
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His business success made him an official target in pre-reform days . PRP$ NN NN VBD PRP DT JJ NN IN JJ NNS .
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Mr. Chan , now 64 years old , invented a fountain pen he and his family produced from plastic waste . NNP NNP , RB CD NNS JJ , VBD DT NN NN PRP CC PRP$ NN VBN IN NN NN .
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Later , he marketed glue . RB , PRP VBD NN .
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Both products were immensely popular . DT NNS VBD RB JJ .
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For his troubles , Mr. Chan was jailed three times between 1960 and 1974 . IN PRP$ NNS , NNP NNP VBD VBN CD NNS IN CD CC CD .
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Though his operation was registered and used only scrap , he was accused of conducting illegal business and possessing illegal materials . IN PRP$ NN VBD VBN CC VBN JJ NN , PRP VBD VBN IN VBG JJ NN CC VBG JJ NNS .
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Once he was held for three months without being charged . RB PRP VBD VBN IN CD NNS IN VBG VBN .
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Things were supposed to change when Vietnam 's economic reforms gathered pace , and for awhile they did . NNS VBD VBN TO VB WRB NNP POS JJ NNS VBD NN , CC IN RB PRP VBD .
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After years of experimenting , Mr. Chan produced a heavy-duty bicycle tire that outlasted its state-produced rival . IN NNS IN VBG , NNP NNP VBD DT JJ NN NN WDT VBD PRP$ JJ NN .
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By 1982 , he was selling thousands of tires . IN CD , PRP VBD VBG NNS IN NNS .
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Newspapers published articles about him , and he was hailed as `` the tire king . '' NNS VBD NNS IN PRP , CC PRP VBD VBN IN `` DT NN NN . ''
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His efforts earned a gold medal at a national exhibition -- and attracted renewed attention from local authorities . PRP$ NNS VBD DT NN NN IN DT JJ NN : CC VBN VBN NN IN JJ NNS .
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District police in 1983 descended on his suburban home , which he and his large family used as both residence and factory , and demanded proof the house and equipment were his . NN NN IN CD VBD IN PRP$ JJ NN , WDT PRP CC PRP$ JJ NN VBN IN DT NN CC NN , CC VBD NN DT NN CC NN VBD PRP$ .
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He produced it . PRP VBD PRP .
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`` That was the first time they lost and I won , '' he says . `` DT VBD DT JJ NN PRP VBD CC PRP VBD , '' PRP VBZ .
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He was further questioned to determine if he was `` a real working man or an exploiter . '' PRP VBD JJ VBD TO VB IN PRP VBD `` DT JJ NN NN CC DT NN . ''
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Says Mr. Chan : `` When I showed it was from my own brain , they lost for the second time . '' VBZ NNP NNP : `` WRB PRP VBD PRP VBD IN PRP$ JJ NN , PRP VBD IN DT JJ NN . ''
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But a few days later the police accused him of stealing electricity , acquiring rubber without permission and buying stolen property . CC DT JJ NNS RB DT NN VBD PRP IN VBG NN , VBG NN IN NN CC VBG VBN NN .
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Warned he was to be jailed again , he fled to the countryside . VBD PRP VBD TO VB VBN RB , PRP VBD TO DT NN .
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His family was given three hours to leave before the house and contents were confiscated . PRP$ NN VBD VBN CD NNS TO VB IN DT NN CC NNS VBD VBN .
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With only the clothes they were wearing , family members moved to a home owned by one of Mr. Chan 's sons . IN RB DT NNS PRP VBD VBG , NN NNS VBD TO DT NN VBN IN CD IN NNP NNP POS NNS .
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After six months on the run , Mr. Chan learned the order for his arrest had been canceled . IN CD NNS IN DT NN , NNP NNP VBD DT NN IN PRP$ NN VBD VBN VBN .
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He rejoined his family in January 1984 and began the long struggle for justice , pressing everyone from Hanoi municipal officials to National Assembly deputies for restoration of his rights . PRP VBD PRP$ NN IN NNP CD CC VBD DT JJ NN IN NN , VBG NN IN NNP JJ NNS TO NNP NNP NNS IN NN IN PRP$ NNS .
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He and his family kept afloat by repairing bicycles , selling fruit and doing odd jobs . PRP CC PRP$ NN VBD RB IN VBG NNS , VBG NN CC VBG JJ NNS .
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Mr. Chan achieved a breakthrough in 1987 -- and became a minor celebrity again -- when his story was published in a weekly newspaper . NNP NNP VBD DT NN IN CD : CC VBD DT JJ NN RB : WRB PRP$ NN VBD VBN IN DT JJ NN .
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In 1988 , 18 months after the sixth congress formally endorsed family-run private enterprise , district authorities allowed Mr. Chan to resume work . IN CD , CD NNS IN DT JJ NN RB VBD JJ JJ NN , NN NNS VBD NNP NNP TO VB NN .
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By late last year he was invited back as `` the tire king '' to display his products at a national exhibition . IN JJ JJ NN PRP VBD VBN RB IN `` DT NN NN '' TO VB PRP$ NNS IN DT JJ NN .
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National leaders stopped by his stand to commend his achievements . JJ NNS VBN IN PRP$ NN TO VB PRP$ NNS .
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Mr. Chan now produces 1,000 bicycle and motorbike tires a month and 1,000 tins of tire-patching glue in the son 's small house . NNP NNP RB VBZ CD NN CC NN VBZ DT NN CC CD NNS IN JJ NN IN DT NN POS JJ NN .
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Eighteen people pack the house 's two rooms -- the Chans , four of their 10 children with spouses , and eight of 22 grandchildren . CD NNS VBP DT NN POS CD NNS : DT NNS , CD IN PRP$ CD NNS IN NNS , CC CD IN CD NNS .
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Most sleep on the floor . JJS VB IN DT NN .
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Come daybreak , eight family members and two other workers unroll a sheet of raw rubber that covers the floor of the house and spills out onto the street . VB NN , CD NN NNS CC CD JJ NNS VBP DT NN IN JJ NN WDT VBZ DT NN IN DT NN CC NNS IN IN DT NN .
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The primitive operations also burst out the back door into a small courtyard , where an ancient press squeezes rubber solution into a flat strip and newly made tires are cooled in a bathtub filled with water . DT JJ NNS RB VBP RP IN JJ NN IN DT JJ NN , WRB DT JJ NN VBZ NN NN IN DT JJ NN CC RB VBN NNS VBP VBN IN DT NN VBN IN NN .
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Mr. Chan talks optimistically of expanding , maybe even moving into the import-export field . NNP NNP VBZ RB IN VBG , RB RB VBG IN DT JJ NN .
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First , however , he has unfinished business . RB , RB , PRP VBZ JJ NN .
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When district authorities allowed him to resume manufacturing , they released only one of his machines . WRB NN NNS VBN PRP TO VB NN , PRP VBD RB CD IN PRP$ NNS .
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They did n't return the rubber stocks that represent his capital . PRP VBD RB VB DT NN NNS WDT VBP PRP$ NN .
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Nor did they return his house and contents , which he values at about $ 44,000 . CC VBD PRP VBP PRP$ NN CC NNS , WDT PRP VBZ IN RB $ CD .
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He wants to recover more than just his property , though . PRP VBZ TO VB JJR IN RB PRP$ NN , RB .
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`` I want my dignity back , '' he says . `` PRP VBP PRP$ NN RB , '' PRP VBZ .
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The Editor DT NNP
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Nguyen Ngoc seemed an obvious choice when the Vietnamese Writers Association was looking for a new editor to reform its weekly newspaper , Van Nghe . NNP NNP VBD DT JJ NN WRB DT NNP NNP NNP VBD VBG IN DT JJ NN TO VB PRP$ JJ NN , NNP NNP .
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After the sixth congress , journalists seized the opportunity provided by the liberalization to probe previously taboo subjects . IN DT JJ NN , NNS VBD DT NN VBN IN DT NN TO VB RB JJ NNS .
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Mr. Ngoc , 57 years old , had solid reformist credentials : He had lost his official position in the association in he early 1980s because he questioned the intrusion of politics into literature . NNP NNP , CD NNS JJ , VBD JJ NN NNS : PRP VBD VBN PRP$ JJ NN IN DT NN IN PRP JJ CD IN PRP VBD DT NN IN NNS IN NN .
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Appointed editor in chief in July 1987 , Mr. Ngoc rapidly turned the staid Van Nghe into Vietnam 's hottest paper . VBN NN IN JJ IN NNP CD , NNP NNP RB VBD DT JJ NNP NNP IN NNP POS JJS NN .
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Circulation soared as the weekly went way beyond standard literary themes to cover Vietnamese society and its ills . NN VBD IN DT NN VBD NN IN JJ JJ NNS TO VB JJ NN CC PRP$ NNS .
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Readers were electrified by the paper 's audacity and appalled by the dark side of life it uncovered . NNS VBD VBN IN DT NN POS NN CC VBN IN DT JJ NN IN NN PRP VBD .
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One article recounted a decade-long struggle by a wounded soldier to prove , officially , he was alive . CD NN VBD DT JJ NN IN DT VBN NN TO VB , RB , PRP VBD JJ .
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Another described how tax-collection officials in Thanh Hoa province one night stormed through homes and confiscated rice from starving villagers . DT VBN WRB JJ NNS IN NNP NNP NN CD NN VBD IN NNS CC VBN NN IN VBG NNS .
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The newspaper also ran a series of controversial short stories by Nguyen Huy Thiep , a former history teacher , who stirred debate over his interpretation of Vietnamese culture and took a thinly veiled swipe at writers who had blocked his entry into their official association . DT NN RB VBD DT NN IN JJ JJ NNS IN NNP NNP NNP , DT JJ NN NN , WP VBD NN IN PRP$ NN IN JJ NN CC VBD DT RB VBN NN IN NNS WP VBD VBN PRP$ NN IN PRP$ JJ NN .
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Van Nghe quickly made influential enemies . NNP NNP RB VBD JJ NNS .
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`` Those who manage ideology and a large number of writers reacted badly '' to the restyled paper , says Lai Nguyen An , a literary critic . `` DT WP VBP NN CC DT JJ NN IN NNS VBD RB '' TO DT VBN NN , VBZ NNP NNP DT , DT JJ NN .
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After months of internal rumblings , Mr. Ngoc was fired last December . IN NNS IN JJ NNS , NNP NNP VBD VBN JJ NNP .
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His dismissal triggered a furor among intellectuals that continues today . PRP$ NN VBD DT NN IN NNS WDT VBZ NN .
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`` Under Mr. Ngoc , Van Nghe protected the people instead of the government , '' says Nguyen Duy , a poet who is the paper 's bureau chief for southern Vietnam . `` IN NNP NNP , NNP NNP VBD DT NNS RB IN DT NN , '' VBZ NNP NNP , DT NN WP VBZ DT NN POS NN NN IN JJ NNP .
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`` The paper reflected the truth . `` DT NN VBD DT NN .
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For the leadership , that was too painful to bear . '' IN DT NN , WDT VBD RB JJ TO VB . ''
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The ` Billionaire ' DT `` NN ''
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Nguyen Thi Thi is Vietnam 's entrepreneur of the 1980s . NNP NNP NNP VBZ NNP POS NN IN DT CD .
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Her challenge is to keep her fledgling empire on top in the 1990s . PRP$ NN VBZ TO VB PRP$ NN NN IN JJ IN DT CD .
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Mrs. Thi did n't wait for the reforms to get her start . NNP NNP VBD RB VB IN DT NNS TO VB PRP$ NN .
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She charged ahead of the government and the law to establish Hochiminh City Food Co. as the biggest rice dealer in the country . PRP VBD RB IN DT NN CC DT NN TO VB NNP NNP NNP NNP IN DT JJS NN NN IN DT NN .
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Her success , which included alleviating an urban food shortage in the early 1980s , helped persuade Hanoi to take the reform path . PRP$ NN , WDT VBD VBG DT JJ NN NN IN DT JJ CD , VBD VB NNP TO VB DT NN NN .
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Her story is becoming part of local folklore . PRP$ NN VBZ VBG NN IN JJ NN .
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A lifelong revolutionary with little education who fought both the French and the U.S.-backed Saigon regime , she switched effortlessly to commerce after the war . DT JJ NN IN JJ NN WP VBD DT DT JJ CC DT JJ NNP NN , PRP VBD RB TO NN IN DT NN .
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Her instincts were capitalistic , despite her background . PRP$ NNS VBD JJ , IN PRP$ NN .
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As she rode over regulations , only her friendship with party leaders , including Nguyen Van Linh , then Ho Chi Minh City party secretary , kept her out of jail . IN PRP VBD IN NNS , RB PRP$ NN IN NN NNS , VBG NNP NNP NNP , RB NNP NNP NNP NNP NN NN , VBD PRP IN IN NN .
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Following Mr. Linh 's appointment as secretary-general of the party at the sixth congress , Mrs. Thi has become the darling of `` doi moi '' , the Vietnamese version of perestroika . VBG NNP NNP POS NN IN NN IN DT NN IN DT JJ NN , NNP NNP VBZ VBN DT NN IN `` FW FW '' , DT JJ NN IN FW .
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The authorities have steered foreign reporters to her office to see an example of `` the new way of thinking . '' DT NNS VBP VBN JJ NNS TO PRP$ NN TO VB DT NN IN `` DT JJ NN IN VBG . ''
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Foreign publications have responded with articles declaring her Vietnam 's richest woman . JJ NNS VBP VBN IN NNS VBG PRP$ NNP POS JJS NN .
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`` Some people call me the communist billionaire , '' she has told visitors . `` DT NNS VBP PRP DT JJ NN , '' PRP VBZ VBN NNS .
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Actually , 67-year-old Mrs. Thi is about as poor as almost everyone else in this impoverished land . RB , NNP NNP NNP VBZ IN RB JJ IN JJ NN RB IN DT JJ NN .
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She has indeed turned Hochiminh City Food into a budding conglomerate , but the company itself remains state-owned . PRP VBZ RB VBN NNP NNP NNP IN DT VBG NN , CC DT NN PRP VBZ JJ .
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She manages it with the title of general-director . PRP VBZ PRP IN DT NN IN NN .
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The heart of the business is the purchase of rice and other commodities , such as corn and coffee , from farmers in the south , paying with fertilizer , farm tools and other items . DT NN IN DT NN VBZ DT NN IN NN CC JJ NNS , JJ IN NN CC NN , IN NNS IN DT RB , VBG IN NN , NN NNS CC JJ NNS .
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Last year , Hochiminh City Food says it bought two million metric tons of unhusked rice , more than 10 % of the country 's output . JJ NN , NNP NNP NNP VBZ PRP VBD CD CD JJ NNS IN VBN NN , JJR IN CD NN IN DT NN POS NN .
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The company operates a fleet of trucks and boats to transport the commodities to its warehouses . DT NN VBZ DT NN IN NNS CC NNS TO VB DT NNS TO PRP$ NNS .
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A subsidiary company processes commodities into foods such as instant noodles that are sold with the rice through a vast retail network . DT NN NN NNS NNS IN NNS JJ IN NN NNS WDT VBP VBN IN DT NN IN DT JJ JJ NN .
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In recent years , Mrs. Thi has started to diversify the company , taking a 20 % stake in newly established , partly private Industrial and Commercial Bank , and setting up Saigon Petro , which owns and operates Vietnam 's first oil refinery . IN JJ NNS , NNP NNP VBZ VBN TO VB DT NN , VBG DT CD NN NN IN RB VBN , RB JJ NNP CC NNP NNP , CC VBG IN NNP NNP , WDT VBZ CC VBZ NNP POS JJ NN NN .
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Mrs. Thi says Hochiminh City Food last year increased pretax profit 60 % to the equivalent of about $ 2.7 million on sales of $ 150 million . NNP NNP VBZ NNP NNP NNP JJ NN VBD JJ NN CD NN TO DT NN IN RB $ CD CD IN NNS IN $ CD CD .
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She expects both revenue and profit to gain this year . PRP VBZ DT NN CC NN TO VB DT NN .
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She is almost cavalier about the possibility Vietnam 's reforms will create rivals on her home turf . PRP VBZ RB JJ IN DT NN NNP POS NNS MD VB NNS IN PRP$ NN NN .
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`` I do n't mind the competition inside the country , '' she says . `` PRP VBP RB VB DT NN IN DT NN , '' PRP VBZ .
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`` I am only afraid that with Vietnam 's poor-quality products we ca n't compete with neighboring countries . `` PRP VBP RB JJ IN IN NNP POS JJ NNS PRP MD RB VB IN VBG NNS .
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The earthquake that hit the San Francisco Bay area is n't likely to result in wholesale downgrading of bond ratings , officials at the two major rating agencies said . DT NN WDT VBD DT NNP NNP NNP NN VBZ RB JJ TO VB IN JJ NN IN NN NNS , NNS IN DT CD JJ NN NNS VBD .
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Standard & Poor 's Corp. is reviewing debt issued by 12 California counties , and `` there are potential isolated problems , '' said Hyman Grossman , a managing director . NNP CC NNP POS NNP VBZ VBG NN VBN IN CD NNP NNS , CC `` EX VBP JJ VBN NNS , '' VBD NNP NNP , DT VBG NN .
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The agency is preparing a report , to be issued today , on the earthquake 's impact on the property- and casualty-insurance industry . DT NN VBZ VBG DT NN , TO VB VBN NN , IN DT NN POS NN IN DT NN CC NN NN .
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The only securities so far to be singled out are those issued by Bay View Federal Savings & Loan . DT JJ NNS RB RB TO VB VBN IN VBP DT VBN IN NNP NNP NNP NNP CC NNP .
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Moody 's Investors Service Inc. said it is reviewing , with an eye toward a possible downgrade , the ratings on Bay View Federal bonds , long-term deposits and the preferred-stock rating of its parent company , Bay View Capital Corp . NNP POS NNP NNP NNP VBD PRP VBZ VBG , IN DT NN IN DT JJ NN , DT NNS IN NNP NNP NNP NNS , JJ NNS CC DT JJ NN IN PRP$ NN NN , NNP NNP NNP NNP .
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As for property and casualty insurers , Moody 's said `` preliminary estimates suggest that losses should not have a significant impact on most insurers ' financial condition , '' but it `` raises concerns about potentially substantial risks '' longer-term . IN IN NN CC NN NNS , NNP POS VBD `` JJ NNS VBP IN NNS MD RB VB DT JJ NN IN RBS NNS POS JJ NN , '' CC PRP `` VBZ NNS IN RB JJ NNS '' JJ .
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`` Losses from the earthquake are expected to be of similar magnitude to those of Hurricane Hugo , '' according to Moody 's . `` NNS IN DT NN VBP VBN TO VB IN JJ NN TO DT IN NNP NNP , '' VBG TO NNP POS .
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Your Oct. 5 editorial `` A Democratic Tax Cut '' contained an error . PRP$ NNP NN NN `` DT NNP NNP VB '' VBD DT NN .
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In the third paragraph it referred to the senators seeking loophole suggestions from lobbyists for various sectors of the economy . IN DT JJ NN PRP VBD TO DT NNS VBG NN NNS IN NNS IN JJ NNS IN DT NN .
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Among them , `` banana farmers . '' IN PRP , `` NN NNS . ''
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The only significant commercial banana farmers in the U.S. are in Hawaii . DT RB JJ JJ NN NNS IN DT NNP VBP IN NNP .
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The Hawaii Banana Industry Association , to which nearly all of them belong , has no lobbyist . DT NNP NNP NNP NNP , TO WDT RB DT IN PRP VBP , VBZ DT NN .
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Thomas V. Reese Sr . Maui Banana Co . NNP NNP NNP NNP . NNP NNP NNP .
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Western Digital Corp. reported a net loss of $ 2.7 million , or nine cents a share , for its first quarter ended Sept. 30 , citing factors as varied as hurricane damage , an advance in graphics technology and the strengthening dollar . NNP NNP NNP VBD DT JJ NN IN $ CD CD , CC CD NNS DT NN , IN PRP$ JJ NN VBN NNP CD , VBG NNS RB VBN IN NN NN , DT NN IN NNS NN CC DT VBG NN .
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In the year-ago period , the company earned $ 12.9 million , or 45 cents a share , on sales of $ 247 million . IN DT JJ NN , DT NN VBD $ CD CD , CC CD NNS DT NN , IN NNS IN $ CD CD .
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Sales for the just-ended period fell to about $ 225 million , the maker of computer parts said . NNS IN DT JJ NN VBD TO RB $ CD CD , DT NN IN NN NNS VBD .
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Nonetheless , Chairman Roger W. Johnson said he expects the company to be profitable in the current quarter . RB , NNP NNP NNP NNP VBD PRP VBZ DT NN TO VB JJ IN DT JJ NN .
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`` We are positioned to come through , '' he said , noting that the company 's backlog was up from the previous quarter . `` PRP VBP VBN TO VB IN , '' PRP VBD , VBG IN DT NN POS NN VBD IN IN DT JJ NN .
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In its second quarter last year , Western Digital earned $ 12.7 million , or 44 cents a share , on sales of $ 258.4 million . IN PRP$ JJ NN JJ NN , NNP NNP VBD $ CD CD , CC CD NNS DT NN , IN NNS IN $ CD CD .
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Mr. Johnson said Western Digital 's plant in Puerto Rico was affected by Hurricane Hugo , losing three days ' production because of the storm , which wrecked much of the Caribbean island 's infrastructure . NNP NNP VBD NNP NNP POS NN IN NNP NNP VBD VBN IN NNP NNP , VBG CD NNS POS NN IN IN DT NN , WDT VBD NN IN DT NNP NN POS NN .
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Although the plant itself was n't damaged , Mr. Johnson said millions of dollars in first-quarter revenue were lost . IN DT NN PRP VBD RB VBN , NNP NNP VBD NNS IN NNS IN JJ NN VBD VBN .
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The revenue will be regained in the current period , he added . DT NN MD VB VBN IN DT JJ NN , PRP VBD .
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There are no plans to initiate a common stock dividend , Mr. Johnson said , explaining that the board continues to believe shareholders are best served by reinvesting excess cash . EX VBP DT NNS TO VB DT JJ NN NN , NNP NNP VBD , VBG IN DT NN VBZ TO VB NNS VBP RBS VBN IN VBG JJ NN .
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Mr. Johnson said the first-quarter loss also heavily reflected a rapid change in graphics technology that left reseller channels with too many of the old computer graphics boards and too few new monitors compatible with the new graphics boards . NNP NNP VBD DT JJ NN RB RB VBD DT JJ NN IN NNS NN WDT VBD JJR NNS IN RB NN IN DT JJ NN NNS NNS CC RB JJ JJ NNS JJ IN DT JJ NNS NNS .
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Western Digital does n't make the monitors . NNP NNP VBZ RB VB DT NNS .
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An accelerating move by personal computer manufacturers ' to include advanced graphics capabilities as standard equipment further dampened reseller purchases of Western Digital 's equipment . DT VBG NN IN JJ NN NNS POS TO VB VBD NNS NNS IN JJ NN JJ VBD JJR NNS IN NNP NNP POS NN .
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`` The other areas of the business -- storage and microcomputers -- were very good , '' Mr. Johnson said . `` DT JJ NNS IN DT NN : NN CC NNS : VBD RB JJ , '' NNP NNP VBD .
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He said Western Digital has reacted swiftly to the movement to video graphics array , VGA , graphics technology from the old enhanced graphics adapter , EGA , which has a lower resolution standard , technology and now is one of the leading producers of these newer units . PRP VBD NNP NNP VBZ VBN RB TO DT NN TO NN NNS NN , NNP , NNS NN IN DT JJ VBN NNS NN , NNP , WDT VBZ DT JJR NN JJ , NN CC RB VBZ CD IN DT VBG NNS IN DT JJR NNS .
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Other makers of video controller equipment also were caught in the EGA-VGA shift , he said , `` but we were able to respond much more quickly . '' JJ NNS IN NN NN NN RB VBD VBN IN DT JJ NN , PRP VBD , `` CC PRP VBD JJ TO VB RB RBR RB . ''
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Still , Mr. Johnson said , `` our stock is grossly undervalued . '' RB , NNP NNP VBD , `` PRP$ NN VBZ RB VBN . ''
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He said the company has cut operating expenses by about 10 % over the last few quarters , while maintaining research and development at about 8 % to 9 % of sales . PRP VBD DT NN VBZ VBN VBG NNS IN IN CD NN IN DT JJ JJ NNS , IN VBG NN CC NN IN IN CD NN TO CD NN IN NNS .
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As part of its reorganization this week , Western Digital has divided its business into two segments -- storage products , including controllers and disk drives ; and microcomputer products , which include graphics , communications and peripheral control chips . IN NN IN PRP$ NN DT NN , NNP NNP VBZ VBN PRP$ NN IN CD NNS : NN NNS , VBG NNS CC NN NNS : CC NN NNS , WDT VBP NNS , NNS CC JJ NN NNS .
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Graphics , communications and peripheral control chips were combined because , increasingly , multiple functions are being governed by a single chip . NNP , NNS CC JJ NN NNS VBD VBN IN , RB , JJ NNS VBP VBG VBN IN DT JJ NN .
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Storage , which includes computer controllers and 3.5-inch disk drives , represents nearly two-thirds of the company 's business . NNP , WDT VBZ NN NNS CC CD NN NNS , VBZ RB NNS IN DT NN POS NN .
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Disk drives , which allow a computer to access its memory , generated 38 % more revenue in the most recent period compared with the fiscal first quarter a year earlier . NN NNS , WDT VBP DT NN TO VB PRP$ NN , VBN CD NN JJR NN IN DT RBS JJ NN VBN IN DT JJ JJ NN DT NN RBR .
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Computer parts are getting ever smaller , Mr. Johnson said , a shrinking that has propelled laptops into position as the fastest-growing segment of the computer business . NN NNS VBP VBG RB JJR , NNP NNP VBD , DT VBG WDT VBZ VBN NNS IN NN IN DT JJ NN IN DT NN NN .
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As smaller and more powerful computers continue to be the focus of the industry , he said , Western Digital is strengthening development of laptop parts . IN JJR CC RBR JJ NNS VBP TO VB DT NN IN DT NN , PRP VBD , NNP NNP VBZ VBG NN IN NN NNS .
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Next year Western Digital plans to consolidate its operations from 11 buildings in Irvine into two buildings in the same city a new headquarters and , a block away , a modern $ 100 million silicon wafer fabrication plant . JJ NN NNP NNP VBZ TO VB PRP$ NNS IN CD NNS IN NNP IN CD NNS IN DT JJ NN DT JJ NN CC , DT NN RB , DT JJ $ CD CD NN NN NN NN .
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The plan will help the company in its existing joint manufacturing agreement with AT&T . DT NN MD VB DT NN IN PRP$ VBG JJ NN NN IN NNP .
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About half of Western Digital 's business is overseas , and Mr. Johnson expects that proportion to continue . IN NN IN NNP NNP POS NN VBZ JJ , CC NNP NNP VBZ DT NN TO VB .
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Plans to dissolve many of the trade barriers within Europe in 1992 creates significant opportunities for the company , he said , particularly since Western Digital already manufactures there . NNS TO VB NN IN DT NN NNS IN NNP IN CD VBZ JJ NNS IN DT NN , PRP VBD , RB IN NNP NNP RB VBZ RB .
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Capitalizing on that presence , Western Digital is launching a major effort to develop the embryonic reseller market in Europe . VBG IN DT NN , NNP NNP VBZ VBG DT JJ NN TO VB DT JJ JJR NN IN NNP .
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Directors of state-owned Banca Nazionale del Lavoro approved a two-step capital-boosting transaction and a change in the bank 's rules that will help it operate more like a private-sector institution . NNS IN JJ NNP NNP NNP NNP VBD DT JJ JJ NN CC DT NN IN DT NN POS NNS WDT MD VB PRP VB JJR IN DT JJ NN .
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Until now , BNL 's top managers and its directors have been appointed by a Treasury decree . IN RB , NNP POS JJ NNS CC PRP$ NNS VBP VBN VBN IN DT NNP NN .
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But under the bank 's proposed statutes , an assembly of shareholders must approve board members . CC IN DT NN POS VBN NNS , DT NN IN NNS MD VB NN NNS .
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The bank 's chairman and director general , who also sit on the board , still would be appointed by the Treasury . DT NN POS NN CC NN JJ , WP RB VB IN DT NN , RB MD VB VBN IN DT NNP .
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BNL , which is controlled by the Italian Treasury , was rocked by the disclosure last month that its Atlanta branch extended more than $ 3 billion in unauthorized credits to Iraq . NNP , WDT VBZ VBN IN DT NNP NNP , VBD VBN IN DT NN JJ NN IN PRP$ NNP NN VBN JJR IN $ CD CD IN JJ NNS TO NNP .
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The ensuing scandal , in which the bank 's management resigned , has helped renew calls for privatization , or at least an overhaul , of Italy 's banking system , which is about 80 % state-controlled . DT VBG NN , IN WDT DT NN POS NN VBD , VBZ VBN VB VBZ IN NN , CC IN JJS DT NN , IN NNP POS NN NN , WDT VBZ IN CD NN JJ .
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In a related move , the bank also proposed that board representation be linked more closely to the bank 's new shareholding structure . IN DT VBN NN , DT NN RB VBD DT NN NN VB VBN RBR RB TO DT NN POS JJ NN NN .
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BNL called a shareholders ' assembly meeting in December to vote on the proposals . NNP VBD DT NNS POS NN NN IN NNP TO VB IN DT NNS .
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BNL has about 75,000 nonvoting shares that are listed on the Milan Stock Exchange . NNP VBZ IN CD JJ NNS WDT VBP VBN IN DT NNP NNP NNP .
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The shares were suspended from trading following disclosure of the Atlanta scandal ; Consob , the stock exchange regulatory body , reportedly will decide soon whether to end the trading suspension . DT NNS VBD VBN IN NN VBG NN IN DT NNP NN : NNP , DT NN NN JJ NN , RB MD VB RB IN TO VB DT NN NN .
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Switzerland 's wholesale price index increased 0.3 % in September from August , and was up 3.9 % from a year ago , marking the first time this year that the index has fallen below 4 % on a year-to-year basis , the government reported . NNP POS JJ NN NN VBN CD NN IN NNP IN NNP , CC VBD IN CD NN IN DT NN RB , VBG DT JJ NN DT NN IN DT NN VBZ VBN IN CD NN IN DT JJ NN , DT NN VBD .
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The government attributed the 0.3 % month-to-month rise in the index largely to higher energy prices . DT NN VBD DT CD NN JJ NN IN DT NN RB TO JJR NN NNS .
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In August , the index was up 0.2 % from the previous month , and was up 4.5 % on a year-to-year basis . IN NNP , DT NN VBD IN CD NN IN DT JJ NN , CC VBD IN CD NN IN DT JJ NN .
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The wholesale price index , based on 1963 as 100 , was 180.9 in September . DT JJ NN NN , VBN IN CD IN CD , VBD CD IN NNP .
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American Express Co. posted a 21 % increase in third quarter net income despite a sharp rise in reserves for Third World loans at its banking unit . NNP NNP NNP VBD DT CD NN NN IN JJ NN JJ NN IN DT JJ NN IN NNS IN NNP NNP NNS IN PRP$ NN NN .
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Aided by a sharp gain in its travel business , American Express said net rose to $ 331.8 million , or 77 cents a share , from $ 273.9 million , or 64 cents a share . VBN IN DT JJ NN IN PRP$ NN NN , NNP NNP VBD NN VBD TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN .
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The year-earlier figures included $ 9.9 million , or three cents a share , in income from discontinued operations . DT JJ NNS VBD $ CD CD , CC CD NNS DT NN , IN NN IN VBN NNS .
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Income from continuing operations was up 26 % . NNP IN VBG NNS VBD IN CD NN .
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Revenue rose 24 % to $ 6.5 billion from $ 5.23 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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The travel , investment services , insurance and banking concern added $ 110 million to reserves for credit losses at its American Express Bank unit , boosting the reserve to $ 507 million as of Sept. 30 . DT NN , NN NNS , NN CC NN NN VBD $ CD CD TO NNS IN NN NNS IN PRP$ NNP NNP NNP NN , VBG DT NN TO $ CD CD IN IN NNP CD .
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The bank 's Third World debt portfolio totals $ 560 million , down from $ 2.2 billion at the end of 1986 . DT NN POS NNP NNP NN NN VBZ $ CD CD , RB IN $ CD CD IN DT NN IN CD .
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The bank charged off $ 53 million in loans during the quarter . DT NN VBN IN $ CD CD IN NNS IN DT NN .
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At the American Express Travel Related Services Co. unit , net rose 17 % to a record $ 240.8 million on a 19 % revenue increase . IN DT NNP NNP NNP NNP NNP NNP NN , NN VBD CD NN TO DT NN $ CD CD IN DT CD NN NN NN .
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The figures exclude businesses now organized as American Express Information Services Co . DT NNS VBP NNS RB VBN IN NNP NNP NNP NNP NNP .
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American Express card charge volume rose 12 % . NNP NNP NN NN NN VBD CD NN .
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Travel sales rose 11 % , led by gains in the U.S. . NN NNS VBD CD NN , VBN IN NNS IN DT NNP .
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At IDS Financial Services , the financial planning and mutual fund unit , net rose 19 % to a record $ 47.6 million on a 33 % revenue gain . IN NNP NNP NNPS , DT JJ NN CC JJ NN NN , NN VBD CD NN TO DT NN $ CD CD IN DT CD NN NN NN .
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Assets owned or managed rose 20 % to $ 45 billion , and mutual fund sales rose 45 % in the quarter to $ 923 million . NNS VBN CC VBD VBD CD NN TO $ CD CD , CC JJ NN NNS VBD CD NN IN DT NN TO $ CD CD .
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American Express Bank earnings fell 50 % to $ 21.3 million from $ 42.5 million despite a 29 % revenue gain . NNP NNP NNP NNS VBD CD NN TO $ CD CD IN $ CD CD IN DT CD NN NN NN .
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The results include $ 106 million of tax benefits associated with previous years ' Third World loan activity , compared with $ 15 million a year earlier . DT NNS VBP $ CD CD IN NN NNS VBN IN JJ NNS POS NNP NNP NN NN , VBN IN $ CD CD DT NN RBR .
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Profit rose 38 % at American Express Information Services to $ 21.6 million . NN VBD CD NN IN NNP NNP NNP NNPS TO $ CD CD .
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Shearson Lehman Hutton Holdings Inc. , as previously reported , had net of $ 65.9 million , reversing a $ 3.5 million loss a year earlier ; its latest results include a $ 37 million gain from the sale of an institutional money management business . NNP NNP NNP NNP NNP , IN RB VBD , VBD NN IN $ CD CD , VBG DT $ CD CD NN DT NN RBR : PRP$ JJS NNS VBP DT $ CD CD NN IN DT NN IN DT JJ NN NN NN .
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American Express 's share of Shearson 's earnings was $ 41 million , after preferred stock dividends ; it owns about 68 % of Shearson 's common . NNP NNP POS NN IN NNP POS NNS VBD $ CD CD , IN JJ NN NNS : PRP VBZ IN CD NN IN NNP POS JJ .
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For the nine months , American Express said net rose 11 % to $ 899.8 million , or $ 2.09 a share , from $ 807.5 million , or $ 1.89 a share . IN DT CD NNS , NNP NNP VBD NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN .
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Revenue rose 24 % to $ 18.73 billion from $ 15.09 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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Textron Inc. , hampered by a slowdown in its defense sales , reported an 8 % decline in per-share earnings on nearly flat revenue for its third quarter . NNP NNP , VBN IN DT NN IN PRP$ NN NNS , VBD DT CD NN NN IN JJ NNS IN RB JJ NN IN PRP$ JJ NN .
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The aerospace and financial services concern said net income fell 5 % to $ 59.5 million from $ 62.8 million . DT NN CC JJ NNS VBP VBD JJ NN VBD NN NN TO $ CD CD IN $ CD CD .
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Revenue of $ 1.73 billion was almost unchanged from last year 's $ 1.72 billion . NN IN $ CD CD VBD RB JJ IN JJ NN POS $ CD CD .
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Per-share net of 66 cents , down from 72 cents , fell by more than overall net because of more shares outstanding . JJ NN IN CD NNS , RB IN CD NNS , VBN IN JJR IN JJ NN IN IN JJR NNS JJ .
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The company said that improved results in its financial-services sector were negated by increased costs in its government contract business , lower operating earnings in its commercial-products sector and soft automotive markets . DT NN VBD WDT VBD NNS IN PRP$ NNS NN VBD VBN IN JJ NNS IN PRP$ NN NN NN , JJR VBG NNS IN PRP$ JJ NN CC JJ JJ NNS .
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Net was aided by a lower income tax rate . NN VBD VBN IN DT JJR NN NN NN .
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Profit before taxes fell 17 % to $ 84.4 million from $ 101.4 million . NN IN NNS VBD CD NN TO $ CD CD IN $ CD CD .
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For the nine months , Textron reported net of $ 182.1 million , or $ 2.06 a share , on revenue of $ 5.41 billion . IN DT CD NNS , NNP VBD NN IN $ CD CD , CC $ CD DT NN , IN NN IN $ CD CD .
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A year ago , net was $ 170.4 million , or $ 1.93 a share , on revenue of $ 5.3 billion . DT NN RB , NN VBD $ CD CD , CC $ CD DT NN , IN NN IN $ CD CD .
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The nine-month results included a $ 9.5 million special charge in 1989 for an arbitration settlement related to past export sales , and $ 29.7 million in extraordinary charges in 1988 related to a former line of business and early redemption of debt . DT JJ NNS VBD DT $ CD CD JJ NN IN CD IN DT NN NN VBN TO JJ NN NNS , CC $ CD CD IN JJ NNS IN CD VBN TO DT JJ NN IN NN CC JJ NN IN NN .
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Textron said that nine-months ' results do n't include earnings of Avdel PLC , a British maker of industrial fasteners , but do include interest costs of $ 16.4 million on borrowings related to the proposed purchase of Avdel . NNP VBD IN NNS POS NNS VBP RB VB NNS IN NNP NNP , DT JJ NN IN JJ NNS , CC VBP VB NN NNS IN $ CD CD IN NNS VBN TO DT VBN NN IN NNP .
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A federal judge has issued a preliminary injunction against the purchase because of Federal Trade Commission concerns that the transaction would reduce competition in the production of two kinds of rivets . DT JJ NN VBZ VBN DT JJ NN IN DT NN IN IN NNP NNP NNP NNS IN DT NN MD VB NN IN DT NN IN CD NNS IN VBZ .
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For the quarter , Textron said aerospace revenue , including Bell helicopter and jet-engine manufacture , declined 9.8 % to $ 755.9 million from $ 838.3 million , an indication of slowing government defense work . IN DT NN , NNP VBD NN NN , VBG NNP NN CC NN NN , VBD CD NN TO $ CD CD IN $ CD CD , DT NN IN VBG NN NN NN .
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As the Hunt brothers ' personal bankruptcy cases sputter into their second year , Minpeco S.A. has proposed a deal to settle its huge claim against the troubled Texas oil men . IN DT NNP NNS POS JJ NN NNS VBP IN PRP$ JJ NN , NNP NNP VBZ VBN DT NN TO VB PRP$ JJ NN IN DT JJ NNP NN NNS .
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But the plan only threatens to heighten the tension and confusion already surrounding the cases that were filed in September 1988 . CC DT NN RB VBZ TO VB DT NN CC NN RB VBG DT NNS WDT VBD VBN IN NNP CD .
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The Peruvian mineral concern 's $ 251 million claim stems from 1988 jury award in a case stemming from the brothers ' alleged attempts to corner the 1979-80 silver market . DT JJ NN NN POS $ CD CD NN VBZ IN CD NN NN IN DT NN VBG IN DT NNS POS VBN NNS TO VB DT CD NN NN .
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Minpeco now says it is willing to settle for up to $ 65.7 million from each brother , although the actual amount would probably be much less . NNP RB VBZ PRP VBZ JJ TO VB IN IN TO $ CD CD IN DT NN , IN DT JJ NN MD RB VB RB JJR .
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Although the proposal must be approved by federal Judge Harold C. Abramson , W. Herbert Hunt has agreed to the Peruvian mineral concern 's proposal . IN DT NN MD VB VBN IN JJ NNP NNP NNP NNP , NNP NNP NNP VBZ VBN TO DT JJ NN NN POS NN .
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Nelson Bunker Hunt is considering it , although his attorney says he wo n't do it if the proposal jeopardizes a tentative settlement he has reached with the Internal Revenue Service , which claims the brothers owe $ 1 billion in back taxes and is by far the biggest creditor in both cases . NNP NNP NNP VBZ VBG PRP , IN PRP$ NN VBZ PRP MD RB VB PRP IN DT NN VBZ DT JJ NN PRP VBZ VBN IN DT NNP NNP NNP , WDT VBZ DT NNS VBP $ CD CD IN RB VBZ CC VBZ IN RB DT JJS NN IN DT NNS .
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The tentative agreement between the IRS and Nelson Bunker Hunt is awaiting U.S. Justice Department approval . DT JJ NN IN DT NNP CC NNP NNP NNP VBZ VBG NNP NNP NNP NN .
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Under it , the former billionaire 's assets would be liquidated with the IRS getting 80 % of the proceeds and the rest being divided among other creditors , including Minpeco and Manufacturers Hanover Trust Co. , which is seeking repayment of a $ 36 million loan . IN PRP , DT JJ NN POS NNS MD VB VBN IN DT NNP VBG CD NN IN DT NNS CC DT NN VBG VBN IN JJ NNS , VBG NNP CC NNP NNP NNP NNP , WDT VBZ VBG NN IN DT $ CD CD NN .
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A similiar proposal has been made in the W. Herbert Hunt case although he and the IRS are at odds over the size of the non-dischargable debt he would have to pay to the government from future earnings . DT JJ NN VBZ VBN VBN IN DT NNP NNP NNP NN IN PRP CC DT NNP VBP IN NNS IN DT NN IN DT JJ NN PRP MD VB TO VB TO DT NN IN NN NNS .
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In both cases , Minpeco and Manufacturers Hanover have been fighting ferociously over their shares of the pie . IN DT NNS , NNP CC NNP NNP VBP VBN VBG RB IN PRP$ NNS IN DT NN .
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With support from the IRS , Manufacturers Hanover has filed suit asking Judge Abramson to subordinate Minpeco 's claim to those of Manufacturer Hanover and the IRS . IN NN IN DT NNP , NNP NNP VBZ VBN NN VBG NNP NNP TO VB NNP POS NN TO DT IN NNP NNP CC DT NNP .
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Minpeco has threatened a `` volcano '' of litigation if the Manufacturers Hanover Corp. unit attempts to force such a plan through the court . NNP VBZ VBN DT `` NN '' IN NN IN DT NNP NNP NNP NN NNS TO VB JJ DT NN IN DT NN .
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Minpeco said it would n't pursue such litigation if its settlement plan in the W. Herbert Hunt case is approved by Judge Abramson , who will consider the proposal at a hearing next week . NNP VBD PRP MD RB VB JJ NN IN PRP$ NN NN IN DT NNP NNP NNP NN VBZ VBN IN NNP NNP , WP MD VB DT NN IN DT NN JJ NN .
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Minpeco attorney Thomas Gorman decribed the plan as one step toward an overall settlement of the W. Herbert Hunt case but Hugh Ray , attorney for Manufacturers Hanover , called it `` silly '' and said he would fight it in court . NNP NN NNP NNP VBD DT NN IN CD NN IN DT JJ NN IN DT NNP NNP NNP NN CC NNP NNP , NN IN NNP NNP , VBD PRP `` JJ '' CC VBD PRP MD VB PRP IN NN .
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`` The thing is so fluid right now that there 's really no way to say what will happen , '' says Justice Department attorney Grover Hartt III , who represents the IRS in the case . `` DT NN VBZ RB NN RB RB IN EX VBZ RB DT NN TO VB WP MD VB , '' VBZ NNP NNP NN NNP NNP NNP , WP VBZ DT NNP IN DT NN .
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`` Developments like this are hard to predict . `` NNPS IN DT VBP JJ TO VB .
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Banc One Corp. said it agreed in principle to buy five branch offices from Trustcorp Inc. , Toledo , Ohio , following the planned merger of Trustcorp into Society Corp. , Cleveland . NNP CD NNP VBD PRP VBD IN NN TO VB CD NN NNS IN NNP NNP , NNP , NNP , VBG DT VBN NN IN NNP IN NNP NNP , NNP .
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The five offices in Erie and Ottawa counties in northern Ohio have total assets of about $ 88 million , Banc One said . DT CD NNS IN NNP CC NNP NNS IN JJ NNP VBP JJ NNS IN RB $ CD CD , NNP CD VBD .
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The purchase price will be established after Banc One has an opportunity to study the quality of the assets , Banc One said . DT NN NN MD VB VBN IN NNP CD VBZ DT NN TO VB DT NN IN DT NNS , NNP CD VBD .
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Society Corp. already has branches in the area , and selling the Trustcorp offices could avoid a problem with regulators over excessive concentration of banking in the two counties after the merger of Trustcorp into Society , according to industry sources . NNP NNP RB VBZ NNS IN DT NN , CC VBG DT NNP NNS MD VB DT NN IN NNS IN JJ NN IN NN IN DT CD NNS IN DT NN IN NNP IN NNP , VBG TO NN NNS .
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The merger is scheduled to take place in the 1990 first quarter . DT NN VBZ VBN TO VB NN IN DT CD JJ NN .
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Stock-market fears and relatively more attractive interest rates pushed money-market mutual fund assets up $ 6.07 billion in the latest week , the sharpest increase in almost two years . NN NNS CC RB RBR JJ NN NNS VBD JJ JJ NN NNS IN $ CD CD IN DT JJS NN , DT JJS NN IN RB CD NNS .
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The 473 funds tracked by the Investment Company Institute , a Washington-based trade group , rose to $ 356.1 billion , a record . DT CD NNS VBN IN DT NNP NNP NNP , DT JJ NN NN , VBD TO $ CD CD , DT NN .
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The $ 6.07 billion increase was the strongest weekly inflow since January 1988 . DT $ CD CD NN VBD DT JJS JJ NN IN NNP CD .
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The increase was spread fairly evenly among all three types of funds . DT NN VBD NN RB RB IN DT CD NNS IN NNS .
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Individual investors , represented in the general-purpose and broker-dealer fund categories , pulled money from the stock market after its big drop last Friday and put the money into funds , said Jacob Dreyer , vice president and chief economist of the Institute . JJ NNS , VBN IN DT JJ CC NN NN NNS , VBD NN IN DT NN NN IN PRP$ JJ NN JJ NNP CC VB DT NN IN NNS , VBD NNP NNP , NN NN CC JJ NN IN DT NNP .
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`` Insitutional investors , on the other hand , reacted to the steep decline in yields on direct money-market instruments following the stock-market decline last Friday , '' Mr. Dreyer said . `` JJ NNS , IN DT JJ NN , VBD TO DT JJ NN IN NNS IN JJ JJ NNS VBG DT NN NN JJ NNP , '' NNP NNP VBD .
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Yields on money funds dropped in the week ended Tuesday , according to Donoghue 's Money Fund Report , a Holliston , Mass. , newsletter . NNS IN NN NNS VBD IN DT NN VBN NNP , VBG TO NNP POS NNP NNP NNP , DT NNP , NNP , NN .
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The average seven-day compounded yield fell to 8.55 % from 8.60 % the week earlier , Donoghue 's said . DT JJ JJ VBN VB VBD TO CD NN IN CD NN DT NN RBR , NNP POS VBD .
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At the auction of six-month U.S. Treasury bills on Monday , the average yield fell to 7.61 % from 7.82 % . IN DT NN IN JJ NNP NNP NNS IN NNP , DT JJ NN VBD TO CD NN IN CD NN .
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Likewise , certificates of deposit on average posted lower yields in the week ended Tuesday . RB , NNS IN NN IN NN VBD JJR NNS IN DT NN VBN NNP .
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The 142 institutional-type money funds rose $ 2.23 billion to $ 85.49 billion . DT CD JJ NN NNS VBD $ CD CD TO $ CD CD .
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The 235 general-purpose funds increased $ 2.53 billion to $ 116.56 billion , while 96 broker-dealer funds increased $ 1.3 billion to $ 154.05 billion . DT CD JJ NNS VBN $ CD CD TO $ CD CD , IN CD NN NNS VBN $ CD CD TO $ CD CD .
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Domestic lending for real estate and property development was the source of Bank Bumiputra Malaysia Bhd. 's most recent spate of financial troubles , the institution 's executive chairman , Mohamed Basir Ismail , said . JJ NN IN JJ NN CC NN NN VBD DT NN IN NNP NNP NNP NNP POS RBS JJ NN IN JJ NNS , DT NN POS JJ NN , NNP NNP NNP , VBD .
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Speaking to reporters this week after Bank Bumiputra 's shareholders approved a rescue plan , Tan Sri Basir said heavy lending to the property sector rocked the bank when property prices in Malaysia plummeted in 1984-85 . VBG TO NNS DT NN IN NNP NNP POS NNS VBD DT NN NN , NNP NNP NNP VBD JJ NN TO DT NN NN VBD DT NN WRB NN NNS IN NNP VBD IN CD .
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He said the bank could n't wait any longer for prices to recover and for borrowers to service their loans . PRP VBD DT NN MD RB VB RB RB IN NNS TO VB CC IN NNS TO VB PRP$ NNS .
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So the bank 's board decided to make 1.23 billion Malaysian dollars -LRB- US$ 457 million -RRB- in provisions for interest payments from loans previously recorded as revenue but never actually received by the bank , and to submit a bailout package to replenish the bank 's paid-up capital . RB DT NN POS NN VBD TO VB CD CD JJ NNS ( $ CD CD ) IN NNS IN NN NNS IN NNS RB VBN IN NN CC RB RB VBN IN DT NN , CC TO VB DT NN NN TO VB DT NN POS JJ NN .
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The predicament , he added , was similar to the Hong Kong 1982-83 property-price collapse , which exposed the involvement of Bank Bumiputra 's former subsidiary in the colony in the largest banking scandal in Malaysia 's history . DT NN , PRP VBD , VBD JJ TO DT NNP NNP CD JJ NN , WDT VBD DT NN IN NNP NNP POS JJ NN IN DT NN IN DT JJS NN NN IN NNP POS NN .
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The subsidiary , Bumiputra Malaysia Finance Ltd. , was left with M$ 2.26 billion in bad loans made to Hong Kong property speculators . DT NN , NNP NNP NNP NNP , VBD VBN IN $ CD CD IN JJ NNS VBN TO NNP NNP NN NNS .
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Both episodes wiped out Bank Bumiputra 's shareholders ' funds . DT NNS VBD IN NNP NNP POS NNS POS NNS .
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Each time , the bank 's 90 % shareholder -- Petroliam Nasional Bhd. , or Petronas , the national oil company -- has been called upon to rescue the institution . DT NN , DT NN POS CD NN NN : NNP NNP NNP , CC NNP , DT JJ NN NN : VBZ VBN VBN IN TO VB DT NN .
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In five years , Petronas , which became the dominant shareholder in a 1984 rescue exercise , has spent about M$ 3.5 billion to prop up the troubled bank . IN CD NNS , NNP , WDT VBD DT JJ NN IN DT CD NN NN , VBZ VBN IN $ CD CD TO VB IN DT JJ NN .
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Tan Sri Basir said the capital restructuring plan has been approved by Malaysia 's Capital Issues Committee and central bank . NNP NNP NNP VBD DT NN NN NN VBZ VBN VBN IN NNP POS NNP NNP NNP CC JJ NN .
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Malaysia 's High Court is expected to approve the plan . NNP POS NNP NNP VBZ VBN TO VB DT NN .
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Once the plan is approved , Tan Sri Basir said , most of Bank Bumiputra 's nonperforming loans will have been fully provided for and the bank will be on track to report a pretax profit of between M$ 160 million and M$ 170 million for the fiscal year ending March 31 . RB DT NN VBZ VBN , NNP NNP NNP VBD , RBS IN NNP NNP POS JJ NNS MD VB VBN RB VBN IN CC DT NN MD VB IN NN TO VB DT JJ NN IN IN $ CD CD CC $ CD CD IN DT JJ NN VBG NNP CD .
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For the previous financial year , the bank would have reported a pretax profit of M$ 168 million if it had n't made provisions for the nonperforming loans , he said . IN DT JJ JJ NN , DT NN MD VB VBN DT JJ NN IN $ CD CD IN PRP VBD RB VBN NNS IN DT JJ NNS , PRP VBD .
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Malaysia 's Banking Secrecy Act prohibited the bank from identifying delinquent borrowers , said Tan Sri Basir . NNP POS NNP NNP NNP VBD DT NN IN VBG JJ NNS , VBD NNP NNP NNP .
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But public documents indicate 10 % or more of the bank 's provisions were made for foregone interest on a M$ 200 million loan to Malaysia 's dominant political party , the United Malays National Organization , to build its convention and headquarters complex in Kuala Lumpur . CC JJ NNS VBP CD NN CC JJR IN DT NN POS NNS VBD VBN IN JJ NN IN DT $ CD CD NN TO NNP POS JJ JJ NN , DT NNP NNP NNP NNP , TO VB PRP$ NN CC NN JJ IN NNP NNP .
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The loan to UMNO was made in September 1983 . DT NN TO NNP VBD VBN IN NNP CD .
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`` We lent a lot of money all over the place , '' said Tan Sri Basir , who refused to discuss the bank 's outstanding loans to `` PRP VBD DT NN IN NN DT IN DT NN , '' VBD NNP NNP NNP , WP VBD TO VB DT NN POS JJ NNS TO
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As well as the M$ 1.23 billion in provisions announced on Oct. 6 , the restructuring package covers an additional M$ 450 million in provisions made in earlier years but never reflected in a reduction of the bank 's paid-up capital . RB RB IN DT $ CD CD IN NNS VBD IN NNP CD , DT NN NN VBZ DT JJ $ CD CD IN NNS VBN IN JJR NNS CC RB VBD IN DT NN IN DT NN POS JJ NN .
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At the end of the exercise , the cash injection from Petronas will increase the bank 's paid-up capital to M$ 1.15 billion after virtually being wiped out by the new provisions . IN DT NN IN DT NN , DT NN NN IN NNP MD VB DT NN POS JJ NN TO $ CD CD IN RB VBG VBN IN IN DT JJ NNS .
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Heidi Ehman might have stepped from a recruiting poster for young Republicans . NNP NNP MD VB VBN IN DT VBG NN IN JJ NNPS .
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White , 24 years old , a singer in her church choir , she symbolizes a generation that gave its heart and its vote to Ronald Reagan . NNP , CD NNS JJ , DT NN IN PRP$ NN NN , PRP VBZ DT NN WDT VBD PRP$ NN CC PRP$ NN TO NNP NNP .
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`` I felt kind of safe , '' she says . `` PRP VBD NN IN JJ , '' PRP VBZ .
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No longer . RB RB .
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When the Supreme Court opened the door this year to new restrictions on abortion , Ms. Ehman opened her mind to Democratic politics . WRB DT NNP NNP VBD DT NN DT NN TO JJ NNS IN NN , NNP NNP VBD PRP$ NN TO JJ NNS .
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Then a political novice , she stepped into a whirl of `` pro-choice '' marches , house parties and fund-raisers . RB DT JJ NN , PRP VBD IN DT NN IN `` JJ '' NNS , NN NNS CC NNS .
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Now she leads a grassroots abortion-rights campaign in Passaic County for pro-choice Democratic gubernatorial candidate James Florio . RB PRP VBZ DT NNS NNS NN IN NNP NNP IN JJ JJ JJ NN NNP NNP .
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`` This is one where I cross party lines , '' she says , rejecting the anti-abortion stance of Rep. Florio 's opponent , Reagan-Republican Rep. James Courter . `` DT VBZ CD WRB PRP VBP NN NNS , '' PRP VBZ , VBG DT JJ NN IN NNP NNP POS NN , JJ NNP NNP NNP .
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`` People my age thought it was n't going to be an issue . `` NNS PRP$ NN VBD PRP VBD RB VBG TO VB DT NN .
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Now it has -- especially for people my age . '' RB PRP VBZ : RB IN NNS PRP$ NN . ''
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Polls bear out this warning , but after a decade of increased Republican influence here , the new politics of abortion have contributed to a world turned upside down for Mr. Courter . NNS VBP RP DT NN , CC IN DT NN IN VBN NNP NN RB , DT JJ NNS IN NN VBP VBN TO DT NN VBD RB RB IN NNP NNP .
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Unless he closes the gap , Republicans risk losing not only the governorship but also the assembly next month . IN PRP VBZ DT NN , NNPS NN VBG RB RB DT NN CC RB DT NN JJ NN .
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Going into the 1990s , the GOP is paying a price for the same conservative social agenda that it used to torment Democrats in the past . VBG IN DT CD , DT NNP VBZ VBG DT NN IN DT JJ JJ JJ NN IN PRP VBD TO VB NNPS IN DT NN .
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This change comes less from a shift in public opinion , which has n't changed much on abortion over the past decade , than in the boundaries of the debate . DT NN VBZ JJR IN DT NN IN JJ NN , WDT VBZ RB VBN JJ IN NN IN DT JJ NN , IN IN DT NNS IN DT NN .
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New Jersey 's own highest court remains a liberal bulwark against major restrictions on abortion , but the U.S. Supreme Court ruling , Webster vs. Missouri , has engaged voters across the nation who had been insulated from the issue . NNP NNP POS JJ JJS NN VBZ DT JJ NN IN JJ NNS IN NN , CC DT NNP NNP NNP NN , NNP IN NNP , VBZ VBN NNS IN DT NN WP VBD VBN VBN IN DT NN .
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Before July , pro-choice voters could safely make political decisions without focusing narrowly on abortion . IN NNP , JJ NNS MD RB VB JJ NNS IN VBG RB IN NN .
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Now , the threat of further restrictions adds a new dimension , bringing an upsurge in political activity by abortion-rights forces . RB , DT NN IN JJ NNS VBZ DT JJ NN , VBG DT NN IN JJ NN IN NNS NNS .
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A recent pro-choice rally in Trenton drew thousands , and in a major reversal , Congress is defying a presidential veto and demanding that Medicaid abortions be permitted in cases of rape and incest . DT JJ JJ NN IN NNP VBD NNS , CC IN DT JJ NN , NNP VBZ VBG DT JJ NN CC VBG IN NNP NNS VBP VBN IN NNS IN NN CC NN .
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`` If Webster had n't happened , you would n't be here , '' Linda Bowker tells a reporter in the Trenton office of the National Organization for Women . `` IN NNP VBD RB VBN , PRP MD RB VB RB , '' NNP NNP VBZ DT NN IN DT NNP NN IN DT NNP NNP IN NNP .
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`` We could have shouted from the rooftops about Courter ... and no one would have heard us . '' `` PRP MD VB VBN IN DT NNS IN NNP : CC DT PRP MD VB VBN PRP . ''
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New Jersey is a proving ground for this aggressive women's-rights movement this year . NNP NNP VBZ DT VBG NN IN DT JJ JJ NN DT NN .
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The infusion of activists can bring a clash of cultures . DT NN IN NNS MD VB DT NN IN NNS .
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In Cherry Hill , the National Abortion Rights Action League , whose goal is to sign up 50,000 pro-choice voters , targets a union breakfast to build labor support for its cause . IN NNP NNP , DT NNP NNP NNP NNP NNP , WP$ NN VBZ TO VB IN CD JJ NNS , VBZ DT NN NN TO VB NN NN IN PRP$ NN .
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The league organizers seem more a fit with a convention next door of young aerobics instructors in leotards than the beefy union leaders ; `` I wish I could go work out , '' says a slim activist . DT NN NNS VBP JJR DT NN IN DT NN JJ NN IN JJ NN NNS IN NNS IN DT JJ NN NNS : `` PRP VBP PRP MD VB NN IN , '' VBZ DT JJ NN .
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A labor chief speaks sardonically of having to `` man and woman '' Election Day phones . DT NN NN VBZ RB IN VBG TO `` NN CC NN '' NNP NNP NNS .
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No age group is more sensitive than younger voters , like Ms. Ehman . DT NN NN VBZ RBR JJ IN JJR NNS , IN NNP NNP .
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A year ago this fall , New Jersey voters under 30 favored George Bush by 56 % to 39 % over Michael Dukakis , according to a survey then by Rutgers University 's Eagleton Institute . DT NN RB DT NN , NNP NNP NNS IN CD VBN NNP NNP IN CD NN TO CD NN IN NNP NNP , VBG TO DT NN RB IN NNP NNP POS NNP NNP .
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A matching Eagleton-Newark Star Ledger poll last month showed a complete reversal . DT VBG NNP NNP NNP NN JJ NN VBD DT JJ NN .
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Voters in the same age group backed Democrat Florio 55 % to 29 % over Republican Courter . NNS IN DT JJ NN NN VBN NNP NNP NN NN TO CD NN IN NNP NNP .
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Abortion alone ca n't explain this shift , but New Jersey is a model of how so personal an issue can become a baseline of sorts in judging a candidate . NNP RB MD RB VB DT NN , CC NNP NNP VBZ DT NN IN WRB RB JJ DT NN MD VB DT NN IN NNS IN VBG DT NN .
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By a 2-to-1 ratio , voters appear more at ease with Mr. Florio 's stance on abortion , and polls indicate his lead widens when the candidates are specifically linked to the issue . IN DT JJ NN , NNS VBP JJR IN NN IN NNP NNP POS NN IN NN , CC NNS VBP PRP$ NN VBZ WRB DT NNS VBP RB VBN TO DT NN .
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`` The times are my times , '' says Mr. Florio . `` DT NNS VBP PRP$ NNS , '' VBZ NNP NNP .
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The Camden County congressman still carries himself with a trademark `` I'm-coming-down-your-throat '' intensity , but at a pause in Newark 's Columbus Day parade recently , he was dancing with his wife in the middle of the avenue in the city 's old Italian-American ward . DT NNP NNP NN RB VBZ PRP IN DT NN `` JJ '' NN , CC IN DT NN IN NNP POS NNP NNP NN RB , PRP VBD VBG IN PRP$ NN IN DT NN IN DT NN IN DT NN POS JJ JJ NN .
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After losing by fewer than 1,800 votes in the 1981 governor 's race , he has prepared himself methodically for this moment , including deciding in recent years he could no longer support curbs on federal funding for Medicaid abortions . IN VBG IN JJR IN CD NNS IN DT CD NN POS NN , PRP VBZ VBN PRP RB IN DT NN , VBG VBG IN JJ NNS PRP MD RB RB VB NNS IN JJ NN IN NNP NNS .
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`` If you 're going to be consistent and say it is a constitutionally protected right , '' he asks , `` how are you going to say an upscale woman who can drive to the hospital or clinic in a nice car has a constitutional right and someone who is not in great shape financially does not ? '' `` IN PRP VBP VBG TO VB JJ CC VBP PRP VBZ DT RB VBN NN , '' PRP VBZ , `` WRB VBP PRP VBG TO VB DT JJ NN WP MD VB TO DT NN CC NN IN DT JJ NN VBZ DT JJ NN CC NN WP VBZ RB IN JJ NN RB VBZ RB . ''
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Mr. Courter , by comparison , seems a shadow of the confident hawk who defended Oliver North before national cameras at Iran-Contra hearings two years ago . NNP NNP , IN NN , VBZ DT NN IN DT JJ NN WP VBD NNP NNP IN JJ NNS IN NNP NNS CD NNS RB .
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Looking back , he says he erred by stating his `` personal '' opposition to abortion instead of assuring voters that he would n't impose his views on `` policy '' as governor . VBG RB , PRP VBZ PRP VBN IN VBG PRP$ `` JJ '' NN TO NN RB IN VBG NNS IN PRP MD RB VB PRP$ NNS IN `` NN '' IN NN .
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It is a distinction that satisfies neither side in the debate . PRP VBZ DT NN WDT VBZ DT NN IN DT NN .
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`` He does n't know himself , '' Kathy Stanwick of the Abortion Rights League says of Mr. Courter 's position . `` PRP VBZ RB VB PRP , '' NNP NNP IN DT NNP NNP NNP NNS IN NNP NNP POS NN .
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Even abortion opponents , however angry with Mr. Florio , ca n't hide their frustration with the Republican 's ambivalence . JJ NN NNS , RB JJ IN NNP NNP , MD RB VB PRP$ NN IN DT NNP POS NN .
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`` He does n't want to lead the people , '' says Richard Traynor , president of New Jersey Right to Life . `` PRP VBZ RB VB TO VB DT NNS , '' VBZ NNP NNP , NN IN NNP NNP NNP TO NNP .
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Moreover , by stepping outside the state 's pro-choice tradition , Mr. Courter aggravates fears that he is too conservative as well on more pressing concerns such as auto insurance rates and the environment . RB , IN VBG IN DT NN POS JJ NN , NNP NNP VBZ NNS IN PRP VBZ RB JJ IN RB IN JJR VBG NNS JJ IN NN NN NNS CC DT NN .
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He hurt himself further this summer by bringing homosexual issues into the debate ; and by wavering on this issue and abortion , he has weakened his credibility in what is already a mean-spirited campaign on both sides . PRP VBD PRP VB DT NN IN VBG JJ NNS IN DT NN : CC IN VBG IN DT NN CC NN , PRP VBZ VBN PRP$ NN IN WP VBZ RB DT JJ NN IN DT NNS .
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Elected to Congress in 1978 , the 48-year-old Mr. Courter is part of a generation of young conservatives who were once very much in the lead of the rightward shift under Mr. Reagan . VBN TO NNP IN CD , DT NNP NNP NNP VBZ NN IN DT NN IN JJ NNS WP VBD RB RB RB IN DT NN IN DT JJ NN IN NNP NNP .
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Like many of his colleagues , he did n't serve in Vietnam in the 1960s yet embraced a hawkish defense and foreign policy -- even voting against a 1984 resolution critical of the U.S. mining of Nicaraguan harbors . IN NN IN PRP$ NNS , PRP VBD RB VB IN NNP IN DT CD RB VBN DT JJ NN CC JJ NN : JJ NN IN DT CD NN JJ IN DT NNP NN IN JJ NNS .
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Jack Kemp and the writers Irving Kristol and George Gilder were influences , and Mr. Courter 's own conservative credentials proved useful to the current New Jersey GOP governor , Thomas Kean , in the 1981 Republican primary here . NNP NNP CC DT NNS NNP NNP CC NNP NNP VBD NNS , CC NNP NNP POS JJ JJ NNS VBD JJ TO DT JJ NNP NNP NNP NN , NNP NNP , IN DT CD NNP JJ RB .
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The same partnership is now crucial to Mr. Courter 's fortunes , but the abortion issue is only a reminder of the gap between his record and that of the more moderate , pro-choice Gov. Kean . DT JJ NN VBZ RB JJ TO NNP NNP POS NNS , CC DT NN NN VBZ RB DT NN IN DT NN IN PRP$ NN CC IN IN DT RBR JJ , JJ NNP NNP .
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While the Warren County congressman pursued an anti-government , anti-tax agenda in Washington , Gov. Kean was approving increased income and sales taxes at home and overseeing a near doubling in the size of New Jersey 's budget in his eight years in office . IN DT NNP NNP NN VBD DT NN , JJ NN IN NNP , NNP NNP VBD VBG VBN NN CC NNS NNS IN NN CC VBG DT IN VBG IN DT NN IN NNP NNP POS NN IN PRP$ CD NNS IN NN .
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Kean forces play down any differences with Mr. Courter , but this history makes it harder for the conservative to run against government . NNP NNS VBP RP DT NNS IN NNP NNP , CC DT NN VBZ PRP JJR IN DT JJ TO VB IN NN .
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Mr. Courter 's free-market plan to bring down auto insurance rates met criticism from Gov. Kean 's own insurance commissioner . NNP NNP POS JJ NN TO VB JJ NN NN NNS VBD NN IN NNP NNP POS JJ NN NN .
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Mr. Courter is further hobbled by a record of votes opposed to government regulation on behalf of consumers . NNP NNP VBZ RB VBN IN DT NN IN NNS VBN TO NN NN IN NN IN NNS .
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Fluent in Spanish from his days in the Peace Corps , Mr. Courter actively courts minority voters but seems oddly over his head . JJ IN JJ IN PRP$ NNS IN DT NNP NNP , NNP NNP RB VBZ NN NNS CC VBZ RB IN PRP$ NN .
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He is warm and polished before a Puerto Rican Congress in Asbury Park . PRP VBZ JJ CC VBN IN DT NNP NNP NNP IN NNP NNP .
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Yet minutes after promising to appoint Hispanics to high posts in state government , he is unable to say whether he has ever employed any in his congressional office . RB NNS IN JJ TO VB NNPS TO JJ NNS IN NN NN , PRP VBZ JJ TO VB IN PRP VBZ RB VBN DT NN PRP$ JJ NN .
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`` I do n't think we do now , '' he says . `` PRP VBP RB VB PRP VB RB , '' PRP VBZ .
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`` I think we did . '' `` PRP VBP PRP VBD . ''
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Asked the same question after his appearance , Democrat Florio identifies a staff member by name and explains her whereabouts today . VBN DT JJ NN IN PRP$ NN , NNP NNP VBZ DT NN NN IN NN CC VBZ PRP$ NN NN .
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When he is presented with a poster celebrating the organization 's 20th anniversary , he recognizes a photograph of one of the founders and recalls time spent together in Camden . WRB PRP VBZ VBN IN DT NN VBG DT NN POS JJ NN , PRP VBZ DT NN IN CD IN DT NNS CC VBZ NN VBN RB IN NNP .
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Details and Camden are essential Florio . NNS CC NNP VBP JJ NNP .
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Elected to Congress as a `` Watergate baby '' in 1974 , he ran for governor three years later . VBN TO NNP IN DT `` NNP NN '' IN CD , PRP VBD IN NN CD NNS RB .
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In the opinion of many , he has n't stopped running since , even though he declined a rematch with Gov. Kean in 1985 . IN DT NN IN JJ , PRP VBZ RB VBN VBG IN , RB IN PRP VBD DT NN IN NNP NNP IN CD .
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His base in South Jersey and on the House Energy and Commerce Committee helped him sustain a network of political-action committees to preserve his edge . PRP$ NN IN NNP NNP CC IN DT NNP NNP CC NNP NNP VBD PRP VBP DT NN IN JJ NNS TO VB PRP$ NN .
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With limited budgets for television in a high-priced market , Mr. Florio 's higher recognition than his rival is a major advantage . IN JJ NNS IN NN IN DT JJ NN , NNP NNP POS JJR NN IN PRP$ NN VBZ DT JJ NN .
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More than ever , his pro-consumer and pro-environment record is in sync with the state . RBR IN RB , PRP$ NN CC NN NN VBZ IN NN IN DT NN .
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Auto insurance rates are soaring . NN NN NNS VBP VBG .
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A toxic-waste-dump fire destroyed part of an interstate highway this summer . DT JJ NN VBD NN IN DT JJ NN DT NN .
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In Monmouth , an important swing area , Republican freeholders now run on a slogan promising to keep the county `` clean and green . '' IN NNP , DT JJ NN NN , NNP NNS RB VBP IN DT NN JJ TO VB DT NN `` JJ CC JJ . ''
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Mr. Florio savors this vindication , but at age 52 , the congressman is also a product of his times and losses . NNP NNP NNS DT NN , CC IN NN CD , DT NN VBZ RB DT NN IN PRP$ NNS CC NNS .
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He speaks for the death penalty as if reading from Exodus 21 ; to increase state revenue he focuses not on `` taxes '' but on `` audits '' to cut waste . PRP VBZ IN DT NN NN IN IN NN IN NNP CD : TO VB NN NN PRP VBZ RB IN `` NNS '' CC IN `` NN '' TO VB NN .
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Hard-hitting consultants match ads with Mr. Courter 's team , and Mr. Florio retools himself as the lean , mean Democratic fighting machine of the 1990s . JJ NNS VBP NNS IN NNP NNP POS NN , CC NNP NNP VBZ PRP IN DT JJ , VB JJ NN NN IN DT CD .
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Appealing to a young audience , he scraps an old reference to Ozzie and Harriet and instead quotes the Grateful Dead . VBG TO DT JJ NN , PRP VBZ DT JJ NN TO NNP CC NNP CC RB VBZ DT NNP NNP .
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The lyric chosen -- `` long strange night '' -- may be an apt footnote to television spots by both candidates intended to portray each other as a liar . DT JJ VBN : `` JJ JJ NN '' : MD VB DT JJ NN TO NN NNS IN DT NNS VBN TO VB DT NN IN DT NN .
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The Democratic lawmaker fits a pattern of younger reformers arising out of old machines , but his ties to Camden remain a sore point because of the county 's past corruption . DT JJ NN VBZ DT NN IN JJR NNS VBG IN IN JJ NNS , CC PRP$ NNS TO NNP VB DT JJ NN IN IN DT NN POS JJ NN .
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His campaign hierarchy is chosen from elsewhere in the state , and faced with criticism of a sweetheart bank investment , he has so far blunted the issue by donating the bulk of his profits to his alma mater , Trenton State College . PRP$ NN NN VBZ VBN IN RB IN DT NN , CC VBD IN NN IN DT NN NN NN , PRP VBZ RB RB VBN DT NN IN VBG DT NN IN PRP$ NNS TO PRP$ JJ NN , NNP NNP NNP .
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Mr. Florio 's forcefulness on the abortion issue after the Webster ruling divides some of his old constituency . NNP NNP POS NN IN DT NN NN IN DT NNP NN VBZ DT IN PRP$ JJ NN .
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Pasquale Pignatelli , an unlikely but enthusiastic pipe major in an Essex County Irish bagpipe band , speaks sadly of Mr. Florio . NNP NNP , DT JJ CC JJ NN JJ IN DT NNP NNP JJ NN NN , VBZ RB IN NNP NNP .
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`` I am a devout Catholic , '' says Mr. Pignatelli , a 40-year-old health officer . `` PRP VBP DT JJ NNP , '' VBZ NNP NNP , DT JJ NN NN .
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`` I ca n't support him because of abortion . '' `` PRP MD RB VB PRP IN IN NN . ''
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Bill Wames Sr. , 72 , is Catholic too , but unfazed by Mr. Florio 's stand on abortion . NNP NNP NNP , CD , VBZ NNP RB , CC VBN IN NNP NNP POS NN IN NN .
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A security guard at a cargo terminal , he wears a Sons of Italy jacket and cap celebrating `` The US 1 Band . '' DT NN NN IN DT NN NN , PRP VBZ DT NNP IN NNP NN CC NN VBG `` DT PRP CD NNP . ''
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`` I still think the woman has the right to do with her body as she pleases , '' he says . `` PRP RB VBP DT NN VBZ DT NN TO VB IN PRP$ NN IN PRP VBZ , '' PRP VBZ .
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`` If you want more opinions ask my wife . `` IN PRP VBP JJR NNS VBP PRP$ NN .
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She has lots of opinions . PRP VBZ NNS IN NNS .
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Consumer prices rose a surprisingly moderate 0.2 % in September , pushed up mostly by a jump in clothing costs , the Labor Department reported . NN NNS VBD DT RB JJ CD NN IN NNP , VBD IN RB IN DT NN IN NN NNS , DT NNP NNP VBD .
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Energy costs , which drove wholesale prices up sharply during the month , continued to decline at the retail level , pulling down transportation and helping to ease housing costs . NN NNS , WDT VBD JJ NNS IN RB IN DT NN , VBD TO VB IN DT JJ NN , VBG JJ NN CC VBG TO VB NN NNS .
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The report was the brightest news the financial markets had seen since before the stock market plunged more than 190 points last Friday . DT NN VBD DT JJS NN DT JJ NNS VBD VBN IN IN DT NN NN VBD JJR IN CD NNS JJ NNP .
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The Dow Jones Industrial Average rallied on the news , closing 39.55 points higher at 2683.20 . DT NNP NNP NNP NNP VBD IN DT NN , VBG CD NNS JJR IN CD .
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Bond prices also jumped as traders appeared to read the data as a sign that interest rates may fall . NN NNS RB VBD IN NNS VBD TO VB DT NNS IN DT NN IN NN NNS MD VB .
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But many economists were not nearly as jubilant . CC JJ NNS VBD RB RB IN JJ .
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The climb in wholesale energy prices is certain to push up retail energy prices in the next few months , they warned . DT NN IN JJ NN NNS VBZ JJ TO VB IN JJ NN NNS IN DT JJ JJ NNS , PRP VBD .
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They also said the dollar is leveling off after a rise this summer that helped to reduce the prices of imported goods . PRP RB VBD DT NN VBZ VBG IN IN DT NN DT NN WDT VBD TO VB DT NNS IN VBN NNS .
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`` I think inflation is going to pick up through the fall , '' said Joel Popkin , a specialist on inflation who runs an economic consulting firm here . `` PRP VBP NN VBZ VBG TO VB IN IN DT NN , '' VBD NNP NNP , DT NN IN NN WP VBZ DT JJ NN NN RB .
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`` It has been in what I would describe as a lull for the past several months . '' `` PRP VBZ VBN IN WP PRP MD VB IN DT NN IN DT JJ JJ NNS . ''
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`` We 've had whopping declines in consumer energy prices in each of the past three months , and at the wholesale level those are fully behind us now , '' said Jay Woodworth , chief domestic economist at Bankers Trust Co. in New York . `` PRP VBP VBD JJ NNS IN NN NN NNS IN DT IN DT JJ CD NNS , CC IN DT JJ NN DT VBP RB IN PRP RB , '' VBD NNP NNP , JJ JJ NN IN NNP NNP NNP IN NNP NNP .
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Because wholesale energy prices shot up by a steep 6.5 % last month , many analysts expected energy prices to rise at the consumer level too . IN JJ NN NNS NN IN IN DT JJ CD NN JJ NN , JJ NNS VBD NN NNS TO VB IN DT NN NN RB .
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As a result , many economists were expecting the consumer price index to increase significantly more than it did . IN DT NN , JJ NNS VBD VBG DT NN NN NN TO VB RB JJR IN PRP VBD .
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But retail energy prices declined 0.9 % in September . CC JJ NN NNS VBD CD NN IN NNP .
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Though analysts say competition will probably hold down increases in retail energy prices , many expect some of the wholesale rise to be passed along to the consumer before the end of the year . IN NNS VBP NN MD RB VB RB VBZ IN JJ NN NNS , JJ VBP DT IN DT JJ NN TO VB VBN IN TO DT NN IN DT NN IN DT NN .
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Still , some analysts insisted that the worst of the inflation is behind . RB , DT NNS VBD IN DT JJS IN DT NN VBZ RB .
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`` It increasingly appears that 1987-88 was a temporary inflation blip and not the beginning of a cyclical inflation problem , '' argued Edward Yardeni , chief economist at Prudential-Bache Securities Inc. in New York . `` PRP RB VBZ IN CD VBD DT JJ NN NN CC RB DT NN IN DT JJ NN NN , '' VBD NNP NNP , JJ NN IN NNP NNP NNP IN NNP NNP .
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In both 1987 and 1988 , consumer prices rose 4.4 % . IN DT CD CC CD , NN NNS VBD CD NN .
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A run-up in world oil prices last winter sent consumer prices soaring at a 6.7 % annual rate in the first five months of this year , but the subsequent decline in energy prices has pulled the annual rate back down to 4.4 % . DT NN IN NN NN NNS JJ NN VBD NN NNS VBG IN DT CD NN JJ NN IN DT JJ CD NNS IN DT NN , CC DT JJ NN IN NN NNS VBZ VBN DT JJ NN RB RB TO CD NN .
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Mr. Yardeni predicted that world business competition will continue to restrain prices . NNP NNP VBD DT NN NN NN MD VB TO VB NNS .
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`` The bottom line is , it seems to me that the economic environment has become very , very competitve for a lot of businesses , '' he said . `` DT NN NN VBZ , PRP VBZ TO PRP IN DT JJ NN VBZ VBN RB , RB JJ IN DT NN IN NNS , '' PRP VBD .
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`` Back in 1987-88 , business was operating at fairly tight capacity , so businesses felt they could raise prices . '' `` RB IN CD , NN VBD VBG IN RB JJ NN , RB NNS VBD PRP MD VB NNS . ''
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Now , he said , a slowdown in economic activity has slackened demand . RB , PRP VBD , DT NN IN JJ NN VBZ VBN NN .
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The mild inflation figures renewed investors ' hopes that the Federal Reserve will ease its interest-rate stance . DT JJ NN NNS VBD NNS POS VBZ IN DT NNP NNP MD VB PRP$ NN NN .
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The steep climb in producer prices reported last Friday fostered pessimism about lower interest rates and contributed to the stock market 's 6.9 % plunge that day . DT JJ NN IN NN NNS VBD JJ NNP VBD NN IN JJR NN NNS CC VBD TO DT NN NN POS CD NN NN DT NN .
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In the past several days , however , the U.S. 's central bank has allowed a key interest rate to fall slightly to try to stabilize the markets . IN DT JJ JJ NNS , RB , DT NNP POS JJ NN VBZ VBN DT JJ NN NN TO VB RB TO VB TO VB DT NNS .
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Analysts say Fed policy makers have been wary of relaxing credit too much because they were still uncertain about the level of inflation in the economy . NNS VBP NNP NN NNS VBP VBN JJ IN VBG NN RB JJ IN PRP VBD RB JJ IN DT NN IN NN IN DT NN .
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Excluding the volatile categories of energy and food -- leaving what some economists call the core inflation rate -- consumer prices still rose only 0.2 % in September . VBG DT JJ NNS IN NN CC NN : VBG WP DT NNS VBP DT NN NN NN : NN NNS RB VBD RB CD NN IN NNP .
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Transportation costs actually fell 0.5 % , and housing costs gained only 0.1 % . NN NNS RB VBD CD NN , CC NN NNS VBD RB CD NN .
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Apparel prices rocketed up 1.7 % , but that was after three months of declines . NN NNS VBD IN CD NN , CC DT VBD IN CD NNS IN NNS .
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Medical costs continued their steep ascent , rising 0.8 % after four consecutive months of 0.7 % increases . JJ NNS VBD PRP$ JJ NN , VBG CD NN IN CD JJ NNS IN CD NN NNS .
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Car prices , another area that contributed to the steep rise in the wholesale index last month , still showed declines at the consumer level . NN NNS , DT NN WDT VBD TO DT JJ NN IN DT JJ NN JJ NN , RB VBD NNS IN DT NN NN .
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They dropped 0.4 % as dealers continued to offer rebates to attract customers . PRP VBD CD NN IN NNS VBD TO VB NNS TO VB NNS .
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Food prices rose 0.2 % for the second month in a row , far slower than the monthly rises earlier in the year . NN NNS VBD CD NN IN DT JJ NN IN DT NN , RB JJR IN DT JJ NNS RBR IN DT NN .
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Separately , the Labor Department reported that average weekly earnings rose 0.3 % in September , after adjusting for inflation , following a 0.7 % decline in August . RB , DT NNP NNP VBD IN JJ JJ NNS VBD CD NN IN NNP , IN VBG IN NN , VBG DT CD NN NN IN NNP .
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All the numbers are adjusted for seasonal fluctuations . DT DT NNS VBP VBN IN JJ NNS .
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Here are the seasonally adjusted changes in the components of the Labor Department 's consumer price index for September . RB VBP DT RB VBN NNS IN DT NNS IN DT NNP NNP POS NN NN NN IN NNP .
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After watching interest in the sport plummet for years , the ski industry is trying to give itself a lift . IN VBG NN IN DT NN NN IN NNS , DT NN NN VBZ VBG TO VB PRP DT NN .
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Across the country , resorts are using everything from fireworks to classical-music concerts to attract new customers . IN DT NN , NNS VBP VBG NN IN NNS TO JJ NNS TO VB JJ NNS .
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Some have built health spas , business centers and shopping villages so visitors have more to do than ski . DT NN VBD NN NNS , NN NNS CC NN NNS RB NNS VBP JJR TO VB IN NN .
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And this week , the industry 's efforts will go national for the first time when it unveils a $ 7 million advertising campaign . CC DT NN , DT NN POS NNS MD VB JJ IN DT JJ NN WRB PRP VBZ DT $ CD CD NN NN .
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Such efforts -- unheard of only a few years ago -- are the latest attempts to revive the sagging $ 1.76 billion U.S. ski industry . JJ NNS : JJ IN RB DT JJ NNS RB : VBP DT JJS NNS TO VB DT VBG $ CD CD NNP NN NN .
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Since the start of the decade , lift-ticket sales have grown only 3 % a year on average , compared with 16 % annual growth rates in the '60s and '70s . IN DT NN IN DT NN , JJ NNS NN VBN RB CD NN DT NN IN JJ , VBN IN CD NN JJ NN NNS IN DT NNS CC NNS .
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Last season , lift-ticket sales fell for the first time in seven years . JJ NN , JJ NNS VBD IN DT JJ NN IN CD NNS .
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By some estimates , nearly a fourth of all U.S. ski areas have been forced to shut down since the early '80s . IN DT NNS , RB DT JJ IN DT NNP NN NNS VBP VBN VBN TO VB RB IN DT JJ NNS .
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Competition and mounting insurance and equipment costs have been the undoing of many resorts . NN CC VBG NN CC NN NNS VBP VBN DT NN IN JJ NNS .
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But another big problem has been the aging of baby boomers . CC DT JJ NN VBZ VBN DT NN IN NN NNS .
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Skiing , after all , has mainly been for the young and daring and many baby boomers have outgrown skiing or have too many family responsibilities to stick with the sport . NN , IN DT , VBZ RB VBN IN DT JJ CC JJ CC JJ NN NNS VBP VBN NN CC VBP RB JJ NN NNS TO VB IN DT NN .
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In its new ad campaign , created by D'Arcy Masius Benton & Bowles Inc. , Chicago , the ski industry is trying to change its image as a sport primarily for young white people . IN PRP$ JJ NN NN , VBN IN NNP NNP NNP CC NNP NNP , NNP , DT NN NN VBZ VBG TO VB PRP$ NN IN DT NN RB IN JJ JJ NNS .
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One 60-second TV spot features a diverse group of skiers gracefully gliding down sun-drenched slopes : senior citizens , minorities , families with children -- even a blind skier . CD JJ NN NN VBZ DT JJ NN IN NNS RB VBG RB JJ NNS : JJ NNS , NNS , NNS IN NNS : RB DT JJ NN .
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`` Ski school is great , '' cries out a tot , bundled in a snowsuit as he plows down a bunny slope . `` NNP NN VBZ JJ , '' NNS IN DT NN , VBN IN DT NN IN PRP VBZ RP DT NN NN .
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`` You 'll never know 'til you try , '' says a black skier . `` PRP MD RB VB NN PRP VBP , '' VBZ DT JJ NN .
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`` We used to show some hot-dog skier in his twenties or thirties going over the edge of a cliff , '' says Kathe Dillmann , a spokeswoman for the United Ski Industries Association , the trade group sponsoring the campaign . `` PRP VBD TO VB DT JJ NN IN PRP$ NNS CC NNS VBG IN DT NN IN DT NN , '' VBZ NNP NNP , DT NN IN DT NNP NNP NNP NNP , DT NN NN VBG DT NN .
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Ski promotions have traditionally avoided the touchy issue of safety . NN NNS VBP RB VBN DT JJ NN IN NN .
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But the new commercials deal with it indirectly by showing a woman smiling as she tries to get up from a fall . CC DT JJ NNS VBP IN PRP RB IN VBG DT NN VBG IN PRP VBZ TO VB IN IN DT NN .
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`` We wanted to show it 's okay if you fall , '' says Ms. Dillmann . `` PRP VBD TO VB PRP VBZ JJ IN PRP VBP , '' VBZ NNP NNP .
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`` Most people think if you slip , you 'll wind up in a body cast . '' `` JJS NNS VBP IN PRP VBP , PRP MD VB IN IN DT NN NN . ''
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The ad campaign represents an unusual spirit of cooperation among resorts and ski equipment makers ; normally , they only run ads hyping their own products and facilities . DT NN NN VBZ DT JJ NN IN NN IN NNS CC NN NN NNS : RB , PRP RB VBP NNS VBG PRP$ JJ NNS CC NNS .
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But in these crunch times for the ski industry , some resorts , such as the Angel Fire , Red River and Taos ski areas in New Mexico , have even started shuttle-busing skiers to each other 's slopes and next year plan to sell tickets good for all local lifts . CC IN DT NN NNS IN DT NN NN , DT NNS , JJ IN DT NNP NNP , NNP NNP CC NNP NN NNS IN NNP NNP , VBP RB VBN NN NNS TO DT NN POS NNS CC JJ NN NN TO VB NNS JJ IN DT JJ NNS .
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Many resorts also are focusing more on the service side of their business . JJ NNS RB VBP VBG JJR IN DT NN NN IN PRP$ NN .
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Since 40 % of skiers are parents , many slopes are building nurseries , expanding ski schools and adding entertainment for kids . IN CD NN IN NNS VBP NNS , JJ NNS VBP VBG NNS , VBG NN NNS CC VBG NN IN NNS .
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Vail , Colo. , now has a playland that looks like an old mining town ; kids can ski through and pan for fool 's gold . NNP , NNP , RB VBZ DT NN WDT VBZ IN DT JJ NN NN : NNS MD VB IN CC NN IN NN POS NN .
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For $ 15 , they can enjoy their own nightly entertainment , with dinner , without mom and dad . IN $ CD , PRP MD VB PRP$ JJ JJ NN , IN NN , IN NN CC NN .
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A few years ago , parents usually had to hire a sitter or take turns skiing while one spouse stayed with the children . DT JJ NNS RB , NNS RB VBD TO VB DT NN CC VB VBZ NN IN CD NN VBD IN DT NNS .
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`` Most parents who had to go through that never came back , '' says Michael Shannon , president of Vail Associates Inc. , which owns and operates the Vail and nearby Beaver Creek resorts . `` JJS NNS WP VBD TO VB IN DT RB VBD RB , '' VBZ NNP NNP , NN IN NNP NNP NNP , WDT VBZ CC VBZ DT NNP CC JJ NNP NNP NNS .
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To make skiing more convenient for time-strapped visitors , several resorts are buying or starting their own travel agencies . TO VB NN RBR JJ IN JJ NNS , JJ NNS VBP VBG CC VBG PRP$ JJ NN NNS .
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In one phone call , ski buffs can make hotel and restaurant reservations , buy lift tickets , rent ski equipment and sign up for lessons . IN CD NN NN , NN NNS MD VB NN CC NN NNS , VB NN NNS , NN NN NN CC NN IN IN NNS .
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And resorts are adding other amenities , such as pricey restaurants , health spas and vacation packages with a twist . CC NNS VBP VBG JJ NNS , JJ IN JJ NNS , NN NNS CC NN NNS IN DT NN .
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During Winter Carnival week , for example , visitors at Sunday River in Maine can take a hot-air balloon ride . IN NNP NNP NN , IN NN , NNS IN NNP NNP IN NNP MD VB DT JJ NN NN .
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`` People these days want something else to do besides ski and sit in the bar , '' says Don Borgeson , executive director of Angel Fire , N.M. 's Chamber of Commerce . `` NNS DT NNS VBP NN RB TO VB IN NN CC VB IN DT NN , '' VBZ NNP NNP , JJ NN IN NNP NNP , NNP POS NNP IN NNP .
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The ski industry hopes to increase the number of skiers by 3.5 million to about 21.7 million in the next five years with its latest ads and promotions . DT NN NN VBZ TO VB DT NN IN NNS IN CD CD TO IN CD CD IN DT JJ CD NNS IN PRP$ JJS NNS CC NNS .
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But some think that 's being overly optimistic . CC DT NN WDT VBZ VBG RB JJ .
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For one thing , it may be tough to attract people because skiing is still expensive : a lift ticket can cost up to $ 35 a day and equipment prices are rising . IN CD NN , PRP MD VB JJ TO VB NNS IN NN VBZ RB JJ : DT NN NN MD VB IN TO $ CD DT NN CC NN NNS VBP VBG .
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And most vacationers still prefer a warm climate for their winter excursions . CC RBS NNS RB VBP DT JJ NN IN PRP$ NN NNS .
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An American Express Co. survey of its travel agents revealed that only 34 % believe their clients will pick a trip this winter based on the availability of winter sports , as opposed to 69 % who think that warm-weather sports will be the deciding factor . DT NNP NNP NNP NN IN PRP$ NN NNS VBD IN RB CD NN VBP PRP$ NNS MD VB DT NN DT NN VBN IN DT NN IN NN NNS , IN VBN TO CD NN WP VBP IN JJ NNS MD VB DT VBG NN .
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`` Even if they could bring in that many new skiers , I do n't know if -LCB- the industry -RCB- could handle that kind of an increase , '' says I. William Berry , editor and publisher of the Ski Industry Letter in Katonah , N.Y . `` RB IN PRP MD VB IN DT JJ JJ NNS , PRP VBP RB VB IN ( DT NN ) MD VB DT NN IN DT NN , '' VBZ NNP NNP NNP , NN CC NN IN DT NNP NNP NNP IN NNP , NNP .
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`` Most people will come on the weekend , the slopes will be overcrowded and then these -LCB- new skiers -RCB- wo n't come back . `` JJS NNS MD VB IN DT NN , DT NNS MD VB JJ CC RB DT ( JJ NNS ) MD RB VB RB .
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They did n't play the third game of the World Series on Tuesday night as scheduled , and they did n't play it on Wednesday or Thursday either . PRP VBD RB VB DT JJ NN IN DT NNP NNP IN NNP NN IN VBN , CC PRP VBD RB VB PRP IN NNP CC NNP RB .
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But you knew that , did n't you ? CC PRP VBD IN , VBD RB PRP .
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They are supposed to play the game next Tuesday , in Candlestick Park here . PRP VBP VBN TO VB DT NN JJ NNP , IN NNP NNP RB .
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The theory is that the stadium , damaged by Tuesday 's earthquake , will be repaired by then , and that people will be able to get there . DT NN VBZ IN DT NN , VBN IN NNP POS NN , MD VB VBN IN RB , CC IN NNS MD VB JJ TO VB RB .
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Like just about everything else , that remains to be seen . IN RB IN NN RB , WDT VBZ TO VB VBN .
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Aftershocks could intervene . NNS MD VB .
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But , at least , the law of averages should have swung to the favorable side . CC , IN JJS , DT NN IN NNS MD VB VBN TO DT JJ NN .
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It may seem trivial to worry about the World Series amid the destruction to the Bay Area wrought by Tuesday 's quake , but the name of this column is `` On Sports , '' so I feel obliged to do so . PRP MD VB JJ TO VB IN DT NNP NNP IN DT NN TO DT NNP NNP VBN IN NNP POS NN , CC DT NN IN DT NN VBZ `` IN NNPS , '' IN PRP VBP VBN TO VB RB .
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You might be interested to know that baseball , not survival , appeared to be the first thought of most of the crowd of 60,000-odd that had gathered at Candlestick at 5:04 p.m. Tuesday , a half-hour before game time , when the quake struck . PRP MD VB JJ TO VB DT NN , RB NN , VBD TO VB DT JJ VBD IN RBS IN DT NN IN JJ WDT VBD VBN IN NNP IN CD NN NNP , DT NN IN NN NN , WRB DT NN VBD .
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As soon as the tremor passed , many people spontaneously arose and cheered , as though it had been a novel kind of pre-game show . RB RB IN DT NN VBN , JJ NNS RB VBD CC VBD , IN IN PRP VBD VBN DT NN NN IN JJ NN .
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One fan , seated several rows in front of the open , upper-deck auxiliary press section where I was stationed , faced the assembled newsies and laughingly shouted , `` We arranged that just for you guys ! '' CD NN , VBN JJ NNS IN NN IN DT NN , JJ JJ NN NN WRB PRP VBD VBN , VBD DT VBN NNS CC RB VBD , `` PRP VBD IN RB IN PRP NNS . ''
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I thought and , I 'm sure , others did : `` You should n't have bothered . '' PRP VBD CC , PRP VBP JJ , NNS VBD : `` PRP MD RB VB VBN . ''
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I 'd slept through my only previous brush with natural disaster , a tornado 15 or so summers ago near Traverse City , Mich. , so I was unprepared for one reaction to such things : the urge to talk about them . PRP MD VBD IN PRP$ RB JJ NN IN JJ NN , DT NN CD CC RB NNS RB IN NNP NNP , NNP , IN PRP VBD JJ IN CD NN TO JJ NNS : DT NN TO VB IN PRP .
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Perhaps primed by the daily diet of radio and TV reporters thrusting microphones into people 's faces and asking how they `` feel '' about one calamity or another , fellow reporters and civilians who spied my press credential were eager to chat . RB VBN IN DT JJ NN IN NN CC NN NNS VBG NNS IN NNS POS VBZ CC VBG WRB PRP `` VB '' IN CD NN CC DT , NN NNS CC NNS WP VBD PRP$ NN NN VBD JJ TO VB .
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`` It felt like I was on a station platform and a train went by , '' said one man , describing my own reaction . `` PRP VBD IN PRP VBD IN DT NN NN CC DT NN VBN IN , '' VBD CD NN , VBG PRP$ JJ NN .
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A women said she saw the park 's light standards sway . DT NNS VBD PRP VBD DT NN POS NN NNS VBP .
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A man said he saw the upper rim undulate . DT NN VBD PRP VBD DT JJ NN VB .
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I saw neither . PRP VBD DT .
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Dictates of good sense to the contrary not withstanding , the general inclination was to believe that the disturbance would be brief and that ball would be played . NNS IN JJ NN TO DT JJ RB VBG , DT JJ NN VBD TO VB IN DT NN MD VB JJ CC DT NN MD VB VBN .
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`` I was near the top of the stadium , and saw a steel girder bow six feet from where I sat , but I stayed put for 10 or 15 minutes , '' confessed a friend . `` PRP VBD IN DT NN IN DT NN , CC VBD DT NN NN NN CD NNS IN WRB PRP VBD , CC PRP VBD VBN IN CD CC CD NNS , '' VBD DT NN .
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`` I guess I thought , ` This is the World Series and I 'm not gon na wimp out ! ' '' `` PRP VBP PRP VBD , `` DT VBZ DT NNP NNP CC PRP VBP RB VBG TO VB IN . '' ''
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Here in the Global Village , though , folks do not stay uninformed for long . RB IN DT NNP NNP , RB , NNS VBP RB VB JJ IN JJ .
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Electrical power was out in still-daylighted Candlestick Park , but battery-operated radios and television sets were plentiful . JJ NN VBD IN IN JJ NNP NNP , CC JJ NNS CC NN NNS VBD JJ .
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Within a few minutes , the true extent of the catastrophe was becoming clear . IN DT JJ NNS , DT JJ NN IN DT NN VBD VBG JJ .
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Its Richter Scale measurement was reported as 6.5 , then 6.9 , then 7.0 . PRP$ NNP NNP NN VBD VBN IN CD , RB CD , RB CD .
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A section of the Bay Bridge had collapsed , as had a part of Interstate Highway 880 in Oakland . DT NN IN DT NNP NNP VBD VBN , IN VBN DT NN IN NNP NNP CD IN NNP .
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People had died . NNS VBD VBN .
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At 5:40 p.m. , scheduled game time having passed , some fans chanted `` Let 's Play Ball . '' IN CD NN , VBN NN NN VBG VBN , DT NNS VBD `` VB POS NNP NNP . ''
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No longer innocent , they qualified as fools . RB RB JJ , PRP VBD IN NNS .
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The stadium was ordered evacuated soon afterward ; the announcement , made over police bullhorns , cited the power outage , but it later was revealed that there also had been damage of the sort reported by my friend . DT NN VBD VBN VBN RB RB : DT NN , VBN IN NN NNS , VBD DT NN NN , CC PRP RB VBD VBN IN EX RB VBD VBN NN IN DT NN VBN IN PRP$ NN .
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Outside , I spotted two young men lugging blocks of concrete . IN , PRP VBD CD JJ NNS VBG NNS IN NN .
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`` Pieces of Candlestick , '' they said . `` NNP IN NNP , '' PRP VBD .
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The crowd remained good natured , even bemused . DT NN VBD JJ JJ , RB JJ .
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TV reporters interviewed fans in the parking lots while , a few feet away , others watched the interviews on their portable TVs . NN NNS VBD NNS IN DT NN NNS IN , DT JJ NNS RB , NNS VBD DT NNS IN PRP$ JJ NNS .
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The only frenzy I saw was commercial : Booths selling World Series commemorative stamps and dated postmarks were besieged by fledgling speculators who saw future profit in the items . DT JJ NN PRP VBD VBD JJ : NNS VBG NNP NNP JJ NNS CC VBN NNS VBD VBN IN NN NNS WP VBD NN NN IN DT NNS .
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The traffic jam out of the park was monumental . DT NN NN IN IN DT NN VBD JJ .
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It took me a half-hour to move 10 feet from my parking spot in an outer lot to an aisle , and an additional hour to reach an inner roadway a half-block away . PRP VBD PRP DT NN TO VB CD NNS IN PRP$ NN NN IN DT JJ NN TO DT NN , CC DT JJ NN TO VB DT JJ NN DT NN RB .
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The six-mile trip to my airport hotel that had taken 20 minutes earlier in the day took more than three hours . DT JJ NN TO PRP$ NN NN WDT VBD VBN CD NNS RBR IN DT NN VBD JJR IN CD NNS .
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At my hotel , the Westin , power was out , some interior plaster had broken loose and there had been water damage , but little else . IN PRP$ NN , DT NNP , NN VBD IN , DT JJ NN VBD VBN JJ CC EX VBD VBN NN NN , CC JJ RB .
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With Garpian randomness , a hotel across the street , the Amfac , had been hit harder : A large sheet of its concrete facade and several window balconies were torn away . IN JJ NN , DT NN IN DT NN , DT NNP , VBD VBN VBN JJR : DT JJ NN IN PRP$ JJ NN CC JJ NN NNS VBD VBN RB .
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The Westin staff had , kindly , set out lighted candles in the ballroom , prepared a cold-cuts buffet and passed around pillows and blankets . DT NNP NN VBD , RB , VBN RP VBN NNS IN DT NN , VBD DT NNS VBP CC VBN IN NNS CC NNS .
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I fell asleep on the lobby floor , next to a man wearing a Chicago Cubs jacket . PRP VBD RB IN DT NN NN , JJ TO DT NN VBG DT NNP NNPS NN .
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I expected him to say , `` I told you so , '' but he already was snoring . PRP VBD PRP TO VB , `` PRP VBD PRP RB , '' CC PRP RB VBD VBG .
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The journalistic consensus was that the earthquake made the World Series seem unimportant . DT JJ NN VBD IN DT NN VBD DT NNP NNP VB JJ .
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My response was that sports rarely are important , only diverting , and the quake merely highlighted that fact . PRP$ NN VBD IN NNS RB VBP JJ , RB VBG , CC DT NN RB VBD DT NN .
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Should the rest of the Series be played at all ? MD DT NN IN DT NNP VB VBN IN DT .
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Sure . RB .
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The quake and baseball were n't related , unlike the massacre of athletes that attended the 1972 Olympics . DT NN CC NN VBD RB VBN , IN DT NN IN NNS WDT VBD DT CD NNPS .
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That heavily politicized event learned nothing from the horrifying experience , and seems doomed to repeat it . DT RB VBN NN VBD NN IN DT JJ NN , CC VBZ VBN TO VB PRP .
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Two ironies intrude . CD NNS VBP .
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This has been widely dubbed the BART Series , after the local subway line , and the Bay Bridge Series . DT VBZ VBN RB VBN DT NNP NNP , IN DT JJ NN NN , CC DT NNP NNP NNP .
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Flags fly at half-staff for the death of Bart Giamatti , the late baseball commissioner , and now the Bay Bridge lies in ruins . NNS VBP IN JJ IN DT NN IN NNP NNP , DT JJ NN NN , CC RB DT NNP NNP VBZ IN NNS .
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A Series that was shaping up as the dullest since the one-sided Detroit-over-San Diego go of 1984 has become memorable in the least fortunate way . DT NNP WDT VBD VBG IN IN DT JJS IN DT JJ JJ NNP VB IN CD VBZ VBN JJ IN DT JJS JJ NN .
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Still , its edge is lost . RB , PRP$ NN VBZ VBN .
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It now will be played mostly for the record , and should be wrapped up as quickly as possible , without `` off '' days . PRP RB MD VB VBN RB IN DT NN , CC MD VB VBN IN RB RB IN JJ , IN `` IN '' NNS .
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And I will never again complain about a rainout . CC PRP MD RB RB VB IN DT NN .
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The disarray in the junk-bond market that began last month with a credit crunch at Campeau Corp. has offered commercial banks a golden opportunity to play a greater role in financing billion-dollar takeovers . DT NN IN DT NN NN WDT VBD JJ NN IN DT NN NN IN NNP NNP VBZ VBN JJ NNS DT JJ NN TO VB DT JJR NN IN VBG JJ NNS .
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But two big New York banks seem to have kicked those chances away , for the moment , with the embarrassing failure of Citicorp and Chase Manhattan Corp. to deliver $ 7.2 billion in bank financing for a leveraged buy-out of United Airlines parent UAL Corp . CC CD JJ NNP NNP NNS VBP TO VB VBN DT NNS RB , IN DT NN , IN DT JJ NN IN NNP CC NNP NNP NNP TO VB $ CD CD IN NN NN IN DT JJ NN IN NNP NNPS NN NNP NNP .
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For more than a decade , banks have been pressing Congress and banking regulators for expanded powers to act like securities firms in playing Wall Street 's lucrative takeover game , from giving mergers advice all the way to selling and trading high-yield junk bonds . IN JJR IN DT NN , NNS VBP VBN VBG NNP CC NN NNS IN VBN NNS TO VB IN NNS NNS IN VBG NNP NNP POS JJ NN NN , IN VBG NNS NN PDT DT NN TO VBG CC NN JJ NN NNS .
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Those expanded powers reached their zenith in July when Bankers Trust New York Corp. provided mergers advice , an equity investment and bank loans for the $ 3.65 billion leveraged buy-out of Northwest Airlines parent NWA Inc . DT VBN NNS VBD PRP$ NN IN NNP WRB NNP NNP NNP NNP NNP VBD NNS NN , DT NN NN CC NN NNS IN DT $ CD CD JJ NN IN NNP NNPS NN NNP NNP .
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One of the major selling points used by Los Angeles financier Alfred Checchi in getting the takeover approved was that the deal did n't include any junk bonds . CD IN DT JJ NN NNS VBN IN NNP NNP NN NNP NNP IN VBG DT NN VBD VBD IN DT NN VBD RB VB DT NN NNS .
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That was seen as an advantage in lobbying airline employees and Washington regulators for approval of the contested takeover . DT VBD VBN IN DT NN IN VBG NN NNS CC NNP NNS IN NN IN DT VBN NN .
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All $ 3.35 billion in debt for the deal was supplied by banks . DT $ CD CD IN NN IN DT NN VBD VBN IN NNS .
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Charles Nathan , co-head of mergers and acquisitions at Salomon Brothers Inc. , says it is natural for banks to try to expand beyond their bread-and-butter business of providing senior debt for buy-outs . NNP NNP , NN IN NNS CC NNS IN NNP NNP NNP , VBZ PRP VBZ JJ IN NNS TO VB TO VB IN PRP$ JJ NN IN VBG JJ NN IN NNS .
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But the UAL collapse , he says , `` may tell you it 's not going to work that easily . '' CC DT NNP NN , PRP VBZ , `` MD VB PRP PRP VBZ RB VBG TO VB IN RB . ''
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David Batchelder , a mergers adviser in La Jolla , Calif. , who aided Los Angeles investor Marvin Davis on the bids which put both UAL and NWA in play as takeover candidates this year , says that banks have been `` preparing to play a larger and larger role in acquisition financing . '' NNP NNP , DT NNS NN IN NNP NNP , NNP , WP VBD NNP NNP NN NNP NNP IN DT NNS WDT VBP DT NNP CC NNP IN NN IN NN NNS DT NN , VBZ IN NNS VBP VBN `` VBG TO VB DT JJR CC JJR NN IN NN NN . ''
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Mr. Batchelder says that in the past , banks would normally have loaned 65 % of a total buy-out price , with the loans secured by the target company 's assets . NNP NNP VBZ IN IN DT NN , NNS MD RB VB VBN CD NN IN DT JJ NN NN , IN DT NNS VBN IN DT NN NN POS NNS .
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Another 20 % of the borrowed funds would come from the sale to investors of junk bonds , which offer less security and typically carry higher yields than bank loans . DT CD NN IN DT VBN NNS MD VB IN DT NN TO NNS IN NN NNS , WDT VBP JJR NN CC RB VB JJR NNS IN NN NNS .
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Mr. Checchi 's purchase of NWA , Mr. Batchelder notes , `` was probably the most aggressive to date , '' with bank debt at 85 % of the purchase price . NNP NNP POS NN IN NNP , NNP NNP VBZ , `` VBD RB DT RBS JJ TO VB , '' IN NN NN IN CD NN IN DT NN NN .
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But Mr. Batchelder says that Citicorp 's `` failure to deliver '' on its promise to raise the UAL bank debt for a labor-management buy-out group `` is very distressing to potential users of a ` highly-confident ' letter from commercial banks . '' CC NNP NNP VBZ IN NNP POS `` NN TO VB '' IN PRP$ NN TO VB DT NNP NN NN IN DT JJ NN NN `` VBZ RB JJ TO JJ NNS IN DT `` JJ '' NN IN JJ NNS . ''
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His client , Mr. Davis , used just such a letter from Citicorp in pursuing UAL ; Citicorp later agreed to work with a competing UAL buy-out group . PRP$ NN , NNP NNP , VBD RB JJ DT NN IN NNP IN VBG NNP : NNP RB VBD TO VB IN DT VBG NNP NN NN .
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Executives of Citicorp and Chase Manhattan declined to comment on either the UAL situation , or on the changing nature of banks ' role in financing takeovers . NNS IN NNP CC NNP NNP VBD TO VB IN DT DT NNP NN , CC IN DT VBG NN IN NNS POS NN IN NN NNS .
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In the wake of Campeau 's problems , prices of junk bonds tumbled , throwing into doubt the ability of corporate acquirers to finance large takeovers with the help of junk bond sales . IN DT NN IN NNP POS NNS , VBZ IN NN NNS VBD , VBG IN NN DT NN IN JJ NNS TO VB JJ NNS IN DT NN IN NN NN NNS .
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Mark Solow , senior managing director at Manufacturers Hanover Trust Co. , says the falloff in junk bonds may yet open new business opportunities to banks in structuring takeovers . NNP NNP , JJ NN NN IN NNP NNP NNP NNP , VBZ DT NN IN NN NNS MD RB JJ JJ NN NNS TO NNS IN VBG NNS .
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But he warns that banks will have `` to have enough discipline '' not to make loans that are too risky . CC PRP VBZ IN NNS MD VB `` TO VB JJ NN '' RB TO VB NNS WDT VBP RB JJ .
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In fact , Manufacturers Hanover said in its third-quarter earnings report that fees from syndicating loans to other banks dropped 48 % , to $ 21 million . IN NN , NNP NNP VBD IN PRP$ JJ NNS NN IN NNS IN VBG NNS TO JJ NNS VBD CD NN , TO $ CD CD .
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`` We did n't take part in a lot of deals because their credit quality was poor , '' says a bank spokesman . `` PRP VBD RB VB NN IN DT NN IN NNS IN PRP$ NN NN VBD JJ , '' VBZ DT NN NN .
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James B. Lee , head of syndications and private placements at Chemical Banking Corp. , said he believes banks can still make a credible offer of one-stop shopping for takeover finance . NNP NNP NNP , NN IN NNS CC JJ NNS IN NNP NNP NNP , VBD PRP VBZ NNS MD RB VB DT JJ NN IN JJ NN IN NN NN .
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As evidence , he cites yesterday 's arrangement for the final financing of a $ 3 billion bid for American Medical International Inc. in which Chemical served as both the lead bank and an equity investor . IN NN , PRP VBZ NN POS NN IN DT JJ NN IN DT $ CD CD NN IN NNP NNP NNP NNP IN WDT NNP VBD IN DT DT NN NN CC DT NN NN .
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Beyond the current weakness in the junk bond market , banks have another advantage over investment banks in financing contested takeovers . IN DT JJ NN IN DT NN NN NN , NNS VBP DT NN IN NN NNS IN NN VBD NNS .
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Arthur Fleischer Jr. , a takeover lawyer at Fried Frank Harris Shriver & Jacobson , notes that `` a political and emotional bias '' has developed against junk bonds . NNP NNP NNP , DT NN NN IN NNP NNP NNP NNP CC NNP , VBZ IN `` DT JJ CC JJ NN '' VBZ VBN IN NN NNS .
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One hostile bidder who deliberately avoided using junk bonds was Paramount Communications Inc. in its initial offer to acquire Time Inc. for $ 10.7 billion , or $ 175 a share . CD JJ NN WP RB VBN VBG NN NNS VBD NNP NNP NNP IN PRP$ JJ NN TO VB NNP NNP IN $ CD CD , CC $ CD DT NN .
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A Paramount spokesman says that decision was based on the financial , not political , drawbacks of junk bonds . DT NNP NN VBZ DT NN VBD VBN IN DT JJ , RB JJ , NNS IN NN NNS .
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But some observers believe Paramount Chairman Martin Davis wanted to avoid the possible taint of being perceived as a corporate raider in his controversial bid for Time . CC DT NNS VBP NNP NNP NNP NNP VBD TO VB DT JJ NN IN VBG VBN IN DT JJ NN IN PRP$ JJ NN IN NNP .
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In the end , Mr. Davis used junk bonds so that he could raise Paramount 's bid to $ 200 a share . IN DT NN , NNP NNP VBD NN NNS RB IN PRP MD VB NNP POS NN TO $ CD DT NN .
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Some Monday-morning quarterbacks said the initial lower bid , without junk bonds , was a factor in his losing the company . DT JJ NNS VBD DT JJ JJR NN , IN NN NNS , VBD DT NN IN PRP$ NN DT NN .
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Time eluded Paramount by acquiring Warner Communications Inc . NNP VBD NNP IN VBG NNP NNP NNP .
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The success of the NWA financing , and the failure of the UAL deal , also seem to highlight the important new role in takeover financing being played by Japanese banks . DT NN IN DT NNP NN , CC DT NN IN DT NNP NN , RB VB TO VB DT JJ JJ NN IN NN NN VBG VBN IN JJ NNS .
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Japanese banks accounted for 50 % of the NWA bank debt , according to a report by Transportation Secretary Samuel Skinner . JJ NNS VBD IN CD NN IN DT NNP NN NN , VBG TO DT NN IN NNP NNP NNP NNP .
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But it was broad-scale rejection by Japanese banks that helped seal the fate of the attempt to buy UAL . CC PRP VBD JJ NN IN JJ NNS WDT VBD NN DT NN IN DT NN TO VB NNP .
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Citicorp and Chase are attempting to put together a new , lower bid . NNP CC NNP VBP VBG TO VB RB DT JJ , JJR NN .
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Takanori Mizuno , chief economist of the Institute for Financial Affairs Inc. , a Tokyo research center on finance and economics , says , `` The junk bond market became very jittery , and there 's a fear of a coming recession and the possible bankruptcy of LBO companies . NNP NNP , JJ NN IN DT NNP IN NNP NNP NNP , DT NNP NN NN IN NN CC NNS , VBZ , `` DT NN NN NN VBD RB JJ , CC EX VBZ DT NN IN DT VBG NN CC DT JJ NN IN NNP NNS .
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Harley-Davidson Inc. filed suit in federal court here , alleging that a group that holds 6.2 % of its stock made `` false , deceptive and misleading '' statements in recent regulatory filings and public announcements . NNP NNP VBD NN IN JJ NN RB , VBG IN DT NN WDT VBZ CD NN IN PRP$ NN VBN `` JJ , JJ CC JJ '' NNS IN JJ JJ NNS CC JJ NNS .
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Harley-Davidson 's complaint claims that the group , led by investor Malcolm I. Glazer , violated securities laws by failing to disclose plans to purchase 15 % of the company 's shares outstanding and that when the required Hart-Scott-Rodino filing eventually was made , it did n't disclose the group 's alleged earlier violation of the so-called prior-notice requirements of the law . NNP POS NN NNS IN DT NN , VBN IN NN NNP NNP NNP , VBD NNS NNS IN VBG TO VB NNS TO VB CD NN IN DT NN POS NNS JJ CC IN WRB DT VBN NNP NN RB VBD VBN , PRP VBD RB VB DT NN POS VBN JJR NN IN DT JJ JJ NNS IN DT NN .
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Mr. Glazer could n't immediately be reached to comment . NNP NNP MD RB RB VB VBN TO VB .
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But when Harley last week publicly questioned the legality of the group 's filing procedures , the Rochester , N.Y. , investor said `` we complied with every law , '' and he denied any wrongdoing . CC WRB NNP JJ NN RB VBD DT NN IN DT NN POS NN NNS , DT NNP , NNP , NN VBD `` PRP VBD IN DT NN , '' CC PRP VBD DT NN .
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The Glazer group said in a Securities and Exchange Commission filing in early October that it may seek a controlling interest in Harley-Davidson , or seek representation on the company 's board . DT NNP NN VBD IN DT NNP CC NNP NNP NN IN JJ NNP IN PRP MD VB DT VBG NN IN NNP , CC VB NN IN DT NN POS NN .
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Harley has said it does n't intend to be acquired by the Glazer group or any other party . NNP VBZ VBD PRP VBZ RB VB TO VB VBN IN DT NNP NN CC DT JJ NN .
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Inland Steel Industries Inc. , battered by lower volume and higher costs , posted a 75 % drop in third-quarter earnings . NNP NNP NNP NNP , VBN IN JJR NN CC JJR NNS , VBD DT CD NN NN IN JJ NNS .
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The nation 's fourth-largest steelmaker earned $ 18.3 million , or 43 cents a share , compared with $ 61 million , or $ 1.70 a share , a year earlier , when the industry was enjoying peak demand and strong pricing . DT NN POS JJ NN VBD $ CD CD , CC CD NNS DT NN , VBN IN $ CD CD , CC $ CD DT NN , DT NN RBR , WRB DT NN VBD VBG NN NN CC JJ NN .
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Sales fell to $ 981.2 million from $ 1.02 billion . NNS VBD TO $ CD CD IN $ CD CD .
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The earnings also mark a significant drop from the second quarter 's $ 45.3 million or $ 1.25 a share . DT NNS RB VBP DT JJ NN IN DT JJ NN POS $ CD CD CC $ CD DT NN .
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Moreover , the earnings were well below analysts ' expectations of about $ 1.16 a share . RB , DT NNS VBD RB IN NNS POS NNS IN RB $ CD DT NN .
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In composite trading on the New York Stock Exchange , Inland closed yesterday at $ 35.875 a share , down $ 1 . IN JJ NN IN DT NNP NNP NNP NNP , NNP VBD NN IN $ CD DT NN , RB $ CD .
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The company attributed the earnings drop to lower volume related to seasonal demand and the soft consumer durable market , especially in the automotive sector . DT NN VBD DT NNS NN TO JJR NN VBN TO JJ NN CC DT JJ NN JJ NN , RB IN DT JJ NN .
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However , the company also lost orders because of prolonged labor talks in the second quarter . RB , DT NN RB VBD NNS IN IN VBN NN NNS IN DT JJ NN .
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Third-quarter shipments slipped 7 % from the year-ago period , and 17 % from this year 's second quarter . JJ NNS VBD CD NN IN DT JJ NN , CC CD NN IN DT NN POS JJ NN .
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Profit of steel shipped for the company 's steel segment slid to $ 26 a ton , from $ 66 a ton a year earlier and $ 57 a ton a quarter earlier . NN IN NN VBN IN DT NN POS NN NN VBD TO $ CD DT NN , IN $ CD DT NN DT NN RBR CC $ CD DT NN DT NN RBR .
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Analysts noted that the disappointing results do n't reflect lower prices for steel products . NNS VBD IN DT JJ NNS VBP RB VB JJR NNS IN NN NNS .
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Charles Bradford , an analyst with Merrill Lynch Capital Markets , said higher prices for galvanized and cold-rolled products offset lower prices for bar , hot-rolled and structural steel . NNP NNP , DT NN IN NNP NNP NNP NNPS , VBD JJR NNS IN JJ CC JJ NNS VBP JJR NNS IN NN , JJ CC JJ NN .
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Structural steel , which primarily serves the construction market , was especially hurt by a 15 % price drop , Mr. Bradford said . JJ NN , WDT RB VBZ DT NN NN , VBD RB VBN IN DT CD NN NN NN , NNP NNP VBD .
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The company said its integrated steel sector was also hurt by higher raw material , repair and maintenance , and labor costs . DT NN VBD PRP$ VBN NN NN VBD RB VBN IN JJR JJ NN , NN CC NN , CC NN NNS .
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The increased labor costs became effective Aug. 1 under terms of the four-year labor agreement with the United Steelworkers union . DT VBN NN NNS VBD JJ NNP CD IN NNS IN DT JJ NN NN IN DT NNP NNPS NN .
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Meanwhile , the company 's service center segment , which saw operating profit drop to $ 11.5 million from $ 30.7 million a year ago , experienced much of the same demand and cost problems , as well as start-up costs associated with a coil processing facility in Chicago and an upgraded computer information system . RB , DT NN POS NN NN NN , WDT VBD VBG NN NN TO $ CD CD IN $ CD CD DT NN RB , VBN NN IN DT JJ NN CC NN NNS , RB RB IN JJ NNS VBN IN DT NN NN NN IN NNP CC DT VBN NN NN NN .
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Inland Chairman Frank W. Luerssen said the company 's short-term outlook is `` clouded by uncertainties in the economy and financial markets . '' NNP NNP NNP NNP NNP VBD DT NN POS JJ NN VBZ `` VBN IN NNS IN DT NN CC JJ NNS . ''
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However , he noted that steel mill bookings are up from early summer levels , and that he expects the company to improve its cost performance in the fourth quarter . RB , PRP VBD DT NN NN NNS VBP IN IN JJ NN NNS , CC IN PRP VBZ DT NN TO VB PRP$ NN NN IN DT JJ NN .
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In the first nine months , profit was $ 113 million , or $ 3.04 a share , on sales of $ 3.19 billion , compared with $ 204.5 million , or $ 5.76 a share , on sales of $ 3.03 billion , a year earlier . IN DT JJ CD NNS , NN VBD $ CD CD , CC $ CD DT NN , IN NNS IN $ CD CD , VBN IN $ CD CD , CC $ CD DT NN , IN NNS IN $ CD CD , DT NN RBR .
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The `` seismic '' activity of a financial market bears a resemblance to the seismic activity of the earth . DT `` JJ '' NN IN DT JJ NN VBZ DT NN TO DT JJ NN IN DT NN .
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When things are quiet -LRB- low volatility -RRB- , the structures on which markets stand can be relatively inefficient and still perform their functions adequately . WRB NNS VBP JJ ( JJ NN ) , DT NNS IN WDT NNS VBP MD VB RB JJ CC RB VB PRP$ NNS RB .
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However , when powerful forces start shaking the market 's structure , the more `` earthquake-resistant '' it is , the better its chance for survival . RB , WRB JJ NNS VBP VBG DT NN POS NN , DT JJR `` JJ '' PRP VBZ , DT JJR PRP$ NN IN NN .
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America 's financial markets do not yet have all the required modern features required to make them fully `` aftershock-resistant . '' NNP POS JJ NNS VBP RB RB VB PDT DT VBN JJ NNS VBN TO VB PRP RB `` JJ . ''
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Investors lack equal access to the markets ' trading arena and its information . NNS VBP JJ NN TO DT NNS POS NN NN CC PRP$ NN .
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That structural lack is crucial because investors are the only source of market liquidity . DT JJ NN VBZ JJ IN NNS VBP DT JJ NN IN NN NN .
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And liquidity is what markets need to damp quakes and aftershocks . CC NN VBZ WP VBZ VBP TO VB NNS CC NNS .
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In today 's markets , specialists -LRB- on the New York Stock Exchange -RRB- and `` upstairs '' market makers -LRB- in the over-the-counter market -RRB- are the only market participants allowed to play a direct role in the price-determination process . IN NN POS NNS , NNS ( IN DT NNP NNP NNP NNP ) CC `` NN '' NN NNS ( IN DT JJ NN ) VBP DT JJ NN NNS VBN TO VB DT JJ NN IN DT JJ NN .
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When they halt trading , all market liquidity is gone . WRB PRP VBP VBG , DT NN NN VBZ VBN .
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And when any component of the market -- cash , futures or options -- loses liquidity , the price discovery system -LRB- the way prices are determined -RRB- becomes flawed or is lost entirely for a time . CC WRB DT NN IN DT NN : NN , NNS CC NNS : VBZ NN , DT NN NN NN ( DT NN NNS VBP VBN ) VBZ JJ CC VBZ VBN RB IN DT NN .
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Last Friday the 13th -LRB- as well as two years ago this week -RRB- the markets became unlinked . NNP NNP DT JJ ( RB RB IN CD NNS RB DT NN ) DT NNS VBD JJ .
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When that happened , `` seismic '' tremors of fear -- much like the shock waves created by an earthquake -- coursed through the market and increased the market 's volatility . WRB WDT VBD , `` JJ '' NNS IN NN : JJ IN DT NN NNS VBN IN DT NN : VBN IN DT NN CC VBD DT NN POS NN .
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Lack of important , needed information can cause fear . NN IN JJ , VBN NN MD VB NN .
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Fear is the father of panic . NN VBZ DT NN IN NN .
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Panic frequently results in irrational behavior . NN RB VBZ IN JJ NN .
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And in financial markets , irrational behavior is sometimes translated into catastrophe . CC IN JJ NNS , JJ NN VBZ RB VBN IN NN .
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When market tremors start , it is crucial that as much information about transaction prices and the supply-demand curve -LRB- buy and sell orders at various prices -RRB- be made available to all , not just to market makers . WRB NN NNS VBP , PRP VBZ JJ IN IN JJ NN IN NN NNS CC DT JJ NN ( VB CC VB NNS IN JJ NNS ) VB VBN JJ TO DT , RB RB TO VB NNS .
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Because of a lack of information and access , many investors -- including the very ones whose buying power could restore stability and damp volatility -- are forced to stand on the sidelines when they are most needed , because of their ignorance of important market information . IN IN DT NN IN NN CC NN , JJ NNS : VBG DT JJ NNS WP$ VBG NN MD VB NN CC VB NN : VBP VBN TO VB IN DT NNS WRB PRP VBP RBS VBN , IN IN PRP$ NN IN JJ NN NN .
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To add aftershock-damping power to America 's markets , a modern , electronic trading system should be implemented that permits equal access to the trading arena -LRB- and the information that would automatically accompany such access -RRB- by investors -- particularly institutional investors . TO VB JJ NN TO NNP POS NNS , DT NN , JJ NN NN MD VB VBN WDT VBZ JJ NN TO DT NN NN ( CC DT NN WDT MD RB VB JJ NN ) IN NNS : RB JJ NNS .
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Contrary to some opinions , the trading activities of specialists and other market makers do not provide liquidity to the market as a whole . JJ TO DT NNS , DT NN NNS IN NNS CC JJ NN NNS VBP RB VB NN TO DT NN IN DT NN .
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What market makers provide is immediacy , a very valuable service . WP NN NNS VBP VBZ NN , DT RB JJ NN .
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Liquidity is not a service . NN VBZ RB DT NN .
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It is a market attribute -- the ability to absorb selling orders without causing significant price changes in the absence of news . PRP VBZ DT NN VBP : DT NN TO VB VBG NNS IN VBG JJ NN NNS IN DT NN IN NN .
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Market makers buy what investors wish to sell ; their business is reselling these unwanted positions as quickly as possible to other investors , and at a profit . NN NNS VBP WP NNS VBP TO VB : PRP$ NN VBZ VBG DT JJ NNS RB RB IN JJ TO JJ NNS , CC IN DT NN .
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As a result , while any one customer may purchase immediacy by selling to a market maker -LRB- which is micro-liquidity for the investor -RRB- , the market as a whole remains in the same circumstances it was before the transaction : The unwanted position is still an unwanted position ; only the identity of the seller has changed . IN DT NN , IN DT CD NN MD VB NN IN VBG TO DT NN NN ( WDT VBZ NN IN DT NN ) , DT NN IN DT JJ NNS IN DT JJ NNS PRP VBD IN DT NN : DT JJ NN VBZ RB DT JJ NN : RB DT NN IN DT NN VBZ VBN .
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In fact it can be argued that increasing capital commitments by market makers -LRB- a result of some post-1987 crash studies -RRB- also increases market volatility , since the more securities are held by market makers at any given time , the more selling pressure is overhanging the market . IN NN PRP MD VB VBN IN VBG NN NNS IN NN NNS ( DT NN IN DT JJ NN NNS ) RB NNS NN NN , IN DT JJR NNS VBP VBN IN NN NNS IN DT VBN NN , DT JJR VBG NN VBZ VBG DT NN .
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In an open electronic system , any investor wishing to pay for real-time access to the trading arena through a registered broker-dealer would be able to see the entire supply-demand curve -LRB- buy and sell orders at each price -RRB- entered by dealers and investors alike , and to enter and execute orders . IN DT JJ JJ NN , DT NN VBG TO VB IN JJ NN TO DT NN NN IN DT VBN NN MD VB JJ TO VB DT JJ JJ NN ( VB CC VB NNS IN DT NN ) VBN IN NNS CC NNS RB , CC TO VB CC VB NNS .
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Current quotations would reflect the combined financial judgment of all market participants -- not just those of intermediaries who become extremely risk-averse during times of crisis . JJ NNS MD VB DT VBN JJ NN IN DT NN NNS : RB RB DT IN NNS WP VBP RB JJ IN NNS IN NN .
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Investors and professionals alike would compete on the level playing field Congress sought and called a `` national market system '' -LRB- not yet achieved -RRB- almost 15 years ago when it passed the Securities Reform Act of 1975 . NNS CC NNS RB MD VB IN DT NN VBG NN NNP VBD CC VBD DT `` JJ NN NN '' ( RB RB VBN ) RB CD NNS RB WRB PRP VBD DT NNP NNP NNP IN CD .
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Last Friday 's market gyrations did not result in severe `` aftershocks . '' NNP NNP POS NN NNS VBD RB VB IN JJ `` NNS . ''
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Were we smart or just lucky ? VBD PRP JJ CC RB JJ .
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I 'm not certain . PRP VBP RB JJ .
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But I am sure we need to maximize our `` earthquake '' protection by making certain that our market structures let investors add their mighty shock-damping power to our nation 's markets . CC PRP VBP JJ PRP VBP TO VB PRP$ `` NN '' NN IN VBG JJ IN PRP$ NN NNS VBP NNS VBP PRP$ JJ JJ NN TO PRP$ NN POS NNS .
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Mr. Peake is chairman of his own consulting company in Englewood , N.J . NNP NNP VBZ NN IN PRP$ JJ NN NN IN NNP , NNP .
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NOW YOU SEE IT , now you do n't . RB PRP VBP PRP , RB PRP VBP RB .
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The recession , that is . DT NN , WDT VBZ .
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The economy 's stutter steps leave investors wondering whether things are slowing down or speeding up . DT NN POS NN NNS VBP NNS VBG IN NNS VBP VBG RB CC VBG RB .
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So often are government statistics revised that they seem to resemble a spinning weather vane . RB RB VBP NN NNS VBN IN PRP VBP TO VB DT VBG NN NN .
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For the past seven years , investors have had the wind at their backs , in the form of a generally growing economy . IN DT JJ CD NNS , NNS VBP VBN DT NN IN PRP$ NNS , IN DT NN IN DT RB VBG NN .
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Some may have forgotten -- and some younger ones may never have experienced -- what it 's like to invest during a recession . DT MD VB VBN : CC DT JJR NNS MD RB VB VBN : WP PRP VBZ VB TO VB IN DT NN .
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Different tactics are called for , as losing money becomes easier and making money becomes tougher . JJ NNS VBP VBN IN , IN VBG NN VBZ JJR CC VBG NN VBZ JJR .
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For those investors who believe -- or fear -- that 1990 will be a recession year , many economists and money managers agree on steps that can be taken to lower the risks in a portfolio . IN DT NNS WP VBP : CC NN : IN CD MD VB DT NN NN , JJ NNS CC NN NNS VBP IN NNS WDT MD VB VBN TO JJR DT NNS IN DT NN .
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In a nutshell , pros advise investors who expect a slowdown to hold fewer stocks than usual and to favor shares of big companies in `` defensive '' industries . IN DT NN , NNS VBP NNS WP VBP DT NN TO VB JJR NNS IN JJ CC TO VB NNS IN JJ NNS IN `` JJ '' NNS .
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A heavy dose of cash is prescribed , along with a heavier-than-usual allotment to bonds -- preferably government bonds . DT JJ NN IN NN VBZ VBN , IN IN DT JJ NN TO NNS : RB NN NNS .
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It 's tempting to think these defensive steps can be delayed until a recession is clearly at hand . PRP VBZ JJ TO VB DT JJ NNS MD VB VBN IN DT NN VBZ RB IN NN .
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But that may not be possible , because recessions often take investors by surprise . CC DT MD RB VB JJ , IN NNS RB VBP NNS IN NN .
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`` They always seem to come a bit later than you expect . `` PRP RB VBP TO VB DT NN RB IN PRP VBP .
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When they do hit , they hit fast , '' says David A. Wyss , chief financial economist at the Data Resources division of McGraw-Hill Inc . WRB PRP VBP VBD , PRP VBD RB , '' VBZ NNP NNP NNP , JJ JJ NN IN DT NNP NNPS NN IN NNP NNP .
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Though he himself does n't expect a recession soon , Mr. Wyss advises people who do that `` the best thing to be in is long that is , 20-year to 30-year Treasury bonds . '' IN PRP PRP VBZ RB VB DT NN RB , NNP NNP VBZ NNS WP VBP IN `` DT JJS NN TO VB IN VBZ JJ DT VBZ , JJ TO NNP NNP NNS . ''
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The reason is simple , Mr. Wyss says : `` Interest rates almost always decline during recession . '' DT NN VBZ JJ , NNP NNP VBZ : `` NN NNS RB RB VBP IN NN . ''
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As surely as a seesaw tilts , falling interest rates force up the price of previously issued bonds . RB RB IN DT NN VBZ , VBG NN NNS VBP IN DT NN IN RB VBN NNS .
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They are worth more because they pay higher interest than newly issued bonds do . PRP VBP RB JJR IN PRP VBP JJR NN IN RB VBN NNS VBP .
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That effect holds true for both short-term and long-term bonds . DT NN VBZ JJ IN DT JJ CC JJ NNS .
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But short-term bonds ca n't rise too much , because everyone knows they will be redeemed at a preset price fairly soon . CC JJ NNS MD RB VB RB JJ , IN NN VBZ PRP MD VB VBN IN DT JJ NN RB RB .
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Long-term bonds , with many years left before maturity , swing more widely in price . JJ NNS , IN JJ NNS VBN IN NN , NN RBR RB IN NN .
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But not just any bonds will do . CC RB RB DT NNS MD VB .
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Corporate bonds `` are usually not a good bet in a recession , '' Mr. Wyss says . JJ NNS `` VBP RB RB DT JJ NN IN DT NN , '' NNP NNP VBZ .
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As times get tougher , investors fret about whether companies will have enough money to pay their debts . IN NNS VBP JJR , NNS VBP IN IN NNS MD VB JJ NN TO VB PRP$ NNS .
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This hurts the price of corporate bonds . DT VBZ DT NN IN JJ NNS .
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Also , he notes , `` most corporate bonds are callable . '' RB , PRP VBZ , `` RBS JJ NNS VBP JJ . ''
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That means that a corporation , after a specified amount of time has passed , can buy back its bonds by paying investors the face value -LRB- plus , in some cases , a sweetener -RRB- . DT VBZ IN DT NN , IN DT VBN NN IN NN VBZ VBN , MD VB RB PRP$ NNS IN VBG NNS DT NN NN ( CC , IN DT NNS , DT NN ) .
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When interest rates have dropped , it makes sense for corporations to do just that ; they then save on interest costs . WRB NN NNS VBP VBN , PRP VBZ NN IN NNS TO VB RB IN : PRP RB VBP IN NN NNS .
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But the investors are left stranded with money to reinvest at a time when interest rates are puny . CC DT NNS VBP VBN VBN IN NN TO VB IN DT NN WRB NN NNS VBP JJ .
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If corporate bonds are bad in recessions , junk bonds are likely to be the worst of all . IN JJ NNS VBP JJ IN NNS , NN NNS VBP JJ TO VB DT JJS IN DT .
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It 's an `` absolute necessity '' to get out of junk bonds when a recession is in the offing , says Avner Arbel , professor of finance at Cornell University . PRP VBZ DT `` JJ NN '' TO VB IN IN NN NNS WRB DT NN VBZ IN DT NN , VBZ NNP NNP , NN IN NN IN NNP NNP .
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`` Such bonds are very sensitive to the downside , and this could be a disaster . '' `` JJ NNS VBP RB JJ TO DT NN , CC DT MD VB DT NN . ''
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Municipal bonds are generally a bit safer than corporate bonds in a recession , but not as safe as bonds issued by the federal government . JJ NNS VBP RB DT NN JJR IN JJ NNS IN DT NN , CC RB RB JJ IN NNS VBN IN DT JJ NN .
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During an economic slump , local tax revenues often go down , raising the risks associated with at least some municipals . IN DT JJ NN , JJ NN NNS RB VBP RB , VBG DT NNS VBN IN IN JJS DT NNS .
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And , like corporates , many municipal bonds are callable . CC , IN NNS , JJ JJ NNS VBP JJ .
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But a few experts , going against the consensus , do n't think bonds would help investors even if a recession is in the offing . CC DT JJ NNS , VBG IN DT NN , VBP RB VB NNS MD VB NNS RB IN DT NN VBZ IN DT NN .
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One of these is Jeffrey L. Beach , director of research for Underwood Neuhaus & Co. , a brokerage house in Houston , who thinks that `` we 're either in a recession or about to go into one . '' CD IN DT VBZ NNP NNP NNP , NN IN NN IN NNP NNP CC NNP , DT NN NN IN NNP , WP VBZ IN `` PRP VBP DT NN DT NN CC IN TO VB IN CD . ''
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What 's more , he thinks this could be a nastier recession than usual : `` Once the downturn comes , it 's going to be very hard to reverse . '' WP VBZ JJR , PRP VBZ DT MD VB DT JJR NN IN JJ : `` RB DT NN VBZ , PRP VBZ VBG TO VB RB JJ TO VB . ''
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Investors , he advises , `` should be cautious , '' holding fewer stocks than usual and also shunning bonds . NNS , PRP VBZ , `` MD VB JJ , '' VBG JJR NNS IN JJ CC RB VBG NNS .
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Because he sees a `` 5 % to 6 % base rate of inflation in the economy , '' he doubts that interest rates will fall much any time soon . IN PRP VBZ DT `` NN NN TO CD NN NN NN IN NN IN DT NN , '' PRP VBZ IN NN NNS MD VB JJ DT NN RB .
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Instead , Mr. Beach says , investors `` probably should be carrying a very high level of cash , '' by which he means such so-called cash equivalents as money-market funds and Treasury bills . RB , NNP NNP VBZ , NNS `` RB MD VB VBG DT RB JJ NN IN NN , '' IN WDT PRP VBZ JJ JJ NN NNS IN JJ NNS CC NNP NNS .
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Greg Confair , president of Sigma Financial Inc. in Allentown , Pa. , also recommends that investors go heavily for cash . NNP NNP , NN IN NNP NNP NNP IN NNP , NNP , RB VBZ IN NNS VBP RB IN NN .
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He is n't sure a recession is coming , but says the other likely alternative -- reignited inflation -- is just as bad . PRP VBZ RB JJ DT NN VBZ VBG , CC VBZ DT JJ JJ NN : VBD NN : VBZ RB IN NN .
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`` This late in an expansion , '' the economy tends to veer off either into damaging inflation or into a recession , Mr. Confair says . `` DT RB IN DT NN , '' DT NN VBZ TO VB IN DT IN JJ NN CC IN DT NN , NNP NNP VBZ .
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The Federal Reserve Board 's plan for a `` soft landing , '' he says , requires the Fed to navigate `` an ever-narrowing corridor . '' DT NNP NNP NNP POS NN IN DT `` JJ NN , '' PRP VBZ , VBZ DT NNP TO VB `` DT JJ NN . ''
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A soft landing is n't something that can be achieved once and for all , Mr. Confair adds . DT JJ NN VBZ RB NN WDT MD VB VBN RB CC IN DT , NNP NNP VBZ .
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It has to be engineered over and over again , month after month . PRP VBZ TO VB VBN IN CC IN RB , NN IN NN .
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He believes that the task facing Fed Chairman Alan Greenspan is so difficult that it resembles `` juggling a double-bladed ax and a buzz saw . '' PRP VBZ IN DT NN VBG NNP NNP NNP NNP VBZ RB JJ IN PRP VBZ `` VBG DT JJ NN CC DT NN VBD . ''
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And , in a sense , that 's the kind of task individuals face in deciding what to do about stocks -- the mainstay of most serious investors ' portfolios . CC , IN DT NN , DT VBZ DT NN IN NN NNS VBP IN VBG WP TO VB IN NNS : DT NN IN RBS JJ NNS POS NNS .
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It comes down to a question of whether to try to `` time '' the market . PRP VBZ RB TO DT NN IN IN TO VB TO `` NN '' DT NN .
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For people who can ride out market waves through good times and bad , stocks have been rewarding long-term investments . IN NNS WP MD VB RP NN NNS IN JJ NNS CC JJ , NNS VBP VBN JJ JJ NNS .
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Most studies show that buy-and-hold investors historically have earned an annual return from stocks of 9 % to 10 % , including both dividends and price appreciation . JJS NNS VBP IN JJ NNS RB VBP VBN DT JJ NN IN NNS IN CD NN TO CD NN , VBG DT NNS CC NN NN .
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That 's well above what bonds or bank certificates have paid . DT VBZ RB IN WP NNS CC NN NNS VBP VBN .
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Moreover , because no one knows for sure just when a recession is coming , some analysts think investors should n't even worry too much about timing . RB , IN DT CD VBZ IN JJ RB WRB DT NN VBZ VBG , DT NNS VBP NNS MD RB RB VB RB JJ IN NN .
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`` Trying to time the economy is a mistake , '' says David Katz , chief investment officer of Value Matrix Management Inc. in New York . `` VBG TO VB DT NN VBZ DT NN , '' VBZ NNP NNP , JJ NN NN IN NNP NNP NNP NNP IN NNP NNP .
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Mr. Katz notes that some economists have been predicting a recession for at least two years . NNP NNP VBZ IN DT NNS VBP VBN VBG DT NN IN IN JJS CD NNS .
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Investors who listened , and lightened up on stocks , `` have just hurt themselves , '' he says . NNS WP VBD , CC VBD IN IN NNS , `` VBP RB VBN PRP , '' PRP VBZ .
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Mr. Katz adds that people who jump in and out of the stock market need to be right about 70 % of the time to beat a buy-and-hold strategy . NNP NNP VBZ IN NNS WP VBP IN CC IN IN DT NN NN NN TO VB NN IN CD NN IN DT NN TO VB DT JJ NN .
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Frequent trading runs up high commission costs . JJ NN VBZ IN JJ NN NNS .
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And the in-and-outer might miss the sudden spurts that account for much of the stock market 's gains over time . CC DT NN MD VB DT JJ NNS WDT VBP IN NN IN DT NN NN POS NNS IN NN .
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Still , few investors are able to sit tight when they are convinced a recession is coming . RB , JJ NNS VBP JJ TO VB JJ WRB PRP VBP VBN DT NN VBZ VBG .
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After all , in all five recessions since 1960 , stocks declined . IN DT , IN DT CD NNS IN CD , NNS VBD .
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According to Ned Davis , president of Ned Davis Research Inc. in Nokomis , Fla. , the average drop in the Dow Jones Industrial Average was about 21 % , and the decrease began an average of six months before a recession officially started . VBG TO NNP NNP , NN IN NNP NNP NNP NNP IN NNP , NNP , DT JJ NN IN DT NNP NNP NNP NNP VBD IN CD NN , CC DT NN VBD DT NN IN CD NNS IN DT NN RB VBD .
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By the time a recession is `` official '' -LRB- two consecutive quarters of declining gross national product -RRB- , much of the damage to stocks has already been done - and , in the typical case , the recession is already half over . IN DT NN DT NN VBZ `` NN '' ( CD JJ NNS IN VBG JJ JJ NN ) , NN IN DT NN TO NNS VBZ RB VBN VBN : CC , IN DT JJ NN , DT NN VBZ RB NN RB .
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About six months before a recession ends , stocks typically begin to rise again , as investors anticipate a recovery . IN CD NNS IN DT NN NNS , NNS RB VBP TO VB RB , IN NNS VBP DT NN .
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The average recession lasts about a year . DT JJ NN VBZ IN DT NN .
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Unfortunately , though , recessions vary enough in length so that the average ca n't reliably be used to guide investors in timing stock sales or purchases . RB , RB , NNS VBP RB IN NN RB IN DT JJ MD RB RB VB VBN TO VB NNS IN NN NN NNS CC NNS .
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But whatever their advice about timing , none of these experts recommend jettisoning stocks entirely during a recession . CC WDT PRP$ NN IN NN , NN IN DT NNS VBP VBG NNS RB IN DT NN .
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For the portion of an investor 's portfolio that stays in stocks , professionals have a number of suggestions . IN DT NN IN DT NN POS NN WDT VBZ IN NNS , NNS VBP DT NN IN NNS .
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Mr. Katz advocates issues with low price-earnings ratios -- that is , low prices in relation to the company 's earnings per share . NNP NNP VBZ NNS IN JJ JJ NNS : DT VBZ , JJ NNS IN NN TO DT NN POS NNS IN NN .
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`` Low P-E '' stocks , he says , vastly outperform others `` during a recession or bear market . '' `` NNP NNP '' NNS , PRP VBZ , RB VB NNS `` IN DT NN CC VB NN . ''
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In good times , he says , they lag a bit , but overall they provide superior performance . IN JJ NNS , PRP VBZ , PRP VBP DT NN , CC JJ PRP VBP JJ NN .
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Prof. Arbel urges investors to discard stocks in small companies . NNP NNP VBZ NNS TO VB NNS IN JJ NNS .
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Small-company shares typically fall more than big-company stocks in a recession , he says . JJ NNS RB VBP JJR IN JJ NNS IN DT NN , PRP VBZ .
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And in any case , he argues , stocks of small companies are `` almost as overpriced as they were Sept. 30 , 1987 , just before the crash . '' CC IN DT NN , PRP VBZ , VBZ IN JJ NNS VBP `` RB RB VBN IN PRP VBD NNP CD , CD , RB IN DT NN . ''
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For example , Mr. Arbel says , stocks of small companies are selling for about 19 times cash flow . IN NN , NNP NNP VBZ , VBZ IN JJ NNS VBP VBG IN IN CD NNS NN NN .
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-LRB- Cash flow , basically earnings plus depreciation , is one common gauge of a company 's financial health . -RRB- ( NNP NN , RB NNS CC NN , VBZ CD JJ NN IN DT NN POS JJ NN . )
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That ratio is dangerously close to the ratio of 19.7 that prevailed before the 1987 stock-market crash , Mr. Arbel says . DT NN VBZ RB RB TO DT NN IN CD WDT VBD IN DT CD NN NN , NNP NNP VBZ .
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And it 's way above the ratio -LRB- 7.5 times cash flow -RRB- that bigger companies are selling for . CC PRP VBZ NN IN DT NN ( CD NNS NN NN ) IN JJR NNS VBP VBG RB .
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Another major trick in making a portfolio recession-resistant is choosing stocks in `` defensive '' industries . DT JJ NN IN VBG DT NN JJ VBZ VBG NNS IN `` JJ '' NNS .
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Food , tobacco , drugs and utilities are the classic examples . NNP , NN , NNS CC NNS VBP DT JJ NNS .
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Recession or not , people still eat , smoke , and take medicine when they 're sick . NN CC RB , NNS RB VBP , NN , CC VB NN WRB PRP VBP JJ .
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George Putnam III , editor of Turnaround Letter in Boston , offers one final tip for recession-wary investors . NNP NNP NNP , NN IN NNP NNP IN NNP , VBZ CD JJ NN IN JJ NNS .
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`` Keep some money available for opportunities , '' he says . `` VB DT NN JJ IN NNS , '' PRP VBZ .
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`` If the recession does hit , there will be some great investment opportunities just when things seem the blackest . '' `` IN DT NN VBZ VBN , EX MD VB DT JJ NN NNS RB WRB NNS VBP DT JJS . ''
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Mr. Dorfman covers investing issues from The Wall Street Journal 's New York bureau . NNP NNP VBZ VBG NNS IN DT NNP NNP NNP POS NNP NNP NN .
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Some industry groups consistently weather the storm better than others . DT NN NNS RB VBP DT NN JJR IN NNS .
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The following shows the number of times these industries outperformed the Standard & Poor 's 500-Stock Index during the first six months of the past seven recessions . DT VBG VBZ DT NN IN VBZ DT NNS VBD DT NNP CC NNP POS NNP NNP IN DT JJ CD NNS IN DT JJ CD NNS .
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Bond prices posted strong gains as investors went on a bargain hunt . NN NNS VBD JJ NNS IN NNS VBD IN DT NN NN .
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But while the overall market improved , the new-issue junk-bond market continued to count casualties , even as junk-bond prices rose . CC IN DT JJ NN VBN , DT JJ NN NN VBD TO VB NNS , RB IN NN NNS VBD .
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Yesterday , Prudential-Bache Securities Inc. said it postponed a $ 220 million senior subordinated debenture offering by York International Corp . NN , NNP NNP NNP VBD PRP VBD DT $ CD CD JJ VBN NN NN IN NNP NNP NNP .
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And Donaldson , Lufkin & Jenrette Securities Corp. scrambled to restructure and improve the potential returns on a $ 475 million debenture offering by Chicago & North Western Acquisition Corp. that was still being negotiated late last night . CC NNP , NNP CC NNP NNP NNP VBD TO VB CC VB DT JJ NNS IN DT $ CD CD NN NN IN NNP CC NNP NNP NNP NNP WDT VBD RB VBG VBN JJ JJ NN .
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The issue by Chicago & North Western is one of the so-called good junk-bond offerings on the new-issue calendar . DT NN IN NNP CC NNP NN VBZ CD IN DT JJ JJ NN NNS IN DT JJ NN .
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Some analysts said the restructuring of the railroad concern 's issue shows how tough it is for underwriters to sell even the junk bonds of a company considered to be a relatively good credit risk . DT NNS VBD DT NN IN DT NN NN POS NN VBZ WRB JJ PRP VBZ IN NNS TO VB RB DT NN NNS IN DT NN VBN TO VB DT RB JJ NN NN .
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Since last week 's junk-bond market debacle , many new issues of high-yield , high-risk corporate bonds have either been scaled back , delayed or dropped . IN JJ NN POS NN NN NN , JJ JJ NNS IN JJ , JJ JJ NNS VBP DT VBN VBN RB , VBN CC VBD .
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On Wednesday , Drexel Burnham Lambert Inc. had to slash the size of Continental Airlines ' junk-bond offering to $ 71 million from $ 150 million . IN NNP , NNP NNP NNP NNP VBD TO VB DT NN IN NNP NNPS POS NN NN TO $ CD CD IN $ CD CD .
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Salomon Brothers Inc. has delayed Grand Union Co. 's $ 1.16 billion junk-bond offering while it restructures the transaction . NNP NNP NNP VBZ VBN NNP NNP NNP POS $ CD CD NN NN IN PRP VBZ DT NN .
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Last week , the Grand Union offering was sweetened to include warrants that allow bondholders to acquire common stock . JJ NN , DT NNP NNP NN VBD VBN TO VB NNS WDT VBP NNS TO VB JJ NN .
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Prudential-Bache said the York issue was delayed because of market conditions . NNP VBD DT NNP NN VBD VBN IN IN NN NNS .
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`` Everything is going through firehoops right now , and -LCB- Chicago & North Western -RCB- is no exception , '' said Mariel Clemensen , vice president , high-yield research , at Citicorp . `` NN VBZ VBG IN NNS RB RB , CC ( NNP CC NNP JJ ) VBZ DT NN , '' VBD NNP NNP , NN NN , JJ NN , IN NNP .
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Portfolio managers say sweeteners like equity kickers and stricter protective covenants may increasingly be required to sell junk-bond deals . NN NNS VBP NNS IN NN NNS CC JJR JJ NNS MD RB VB VBN TO VB NN NNS .
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Dan Baldwin , managing director of high-yield investments at Chancellor Capital Management , said the Chicago & North Western offering was restructured in part because `` several large insurance buyers right now are demanding equity as part of the package . NNP NNP , VBG NN IN JJ NNS IN NNP NNP NNP , VBD DT NNP CC NNP JJ NN VBD VBN IN NN IN `` JJ JJ NN NNS RB RB VBP VBG NN IN NN IN DT NN .
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If you 're going to take the risk in this market , you want something extra . '' IN PRP VBP VBG TO VB DT NN IN DT NN , PRP VBP NN JJ . ''
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Mr. Baldwin likes the offering . NNP NNP VBZ DT NN .
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But several mutual-fund managers , nervous about the deteriorating quality of their junk-bond portfolios and shy about buying new issues , said they 're staying away from any junk security that is n't considered first rate for its class . CC JJ JJ NNS , JJ IN DT VBG NN IN PRP$ NN NNS CC JJ IN VBG JJ NNS , VBD PRP VBP VBG RB IN DT NN NN WDT VBZ RB VBN JJ NN IN PRP$ NN .
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While they consider the Chicago & North Western issue to be good , they do n't view it as the best . IN PRP VBP DT NNP CC NNP JJ NN TO VB JJ , PRP VBP RB VB PRP IN DT JJS .
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To lure buyers to the Chicago & North Western bonds , portfolio managers said Donaldson Lufkin sweetened the transaction by offering the bonds with a resettable interest rate and a 10 % equity kicker . TO VB NNS TO DT NNP CC NNP JJ NNS , NN NNS VBD NNP NNP VBD DT NN IN VBG DT NNS IN DT JJ NN NN CC DT CD NN NN NN .
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The bonds are expected to have a 14 1\/2 % coupon rate . DT NNS VBP VBN TO VB DT CD CD NN NN NN .
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The equity arrangement apparently would allow bondholders to buy a total of 10 % of the stock of CNW Corp. , Chicago & North Western 's parent company . DT NN NN RB MD VB NNS TO VB DT NN IN CD NN IN DT NN IN NNP NNP , NNP CC NNP NN POS NN NN .
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Donaldson Lufkin declined to comment on the restructuring . NNP NNP VBD TO VB IN DT NN .
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According to some analysts familiar with the negotiations , the 10 % of equity would come directly from Donaldson Lufkin and a fund affiliated with the investment bank Blackstone Group , which would reduce their CNW equity holdings by 5 % each . VBG TO DT NNS JJ IN DT NNS , DT CD NN IN NN MD VB RB IN NNP NNP CC DT NN VBN IN DT NN NN NNP NNP , WDT MD VB PRP$ NNP NN NNS IN NN NN DT .
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That would leave the Blackstone fund with a 60 % stake and Donaldson Lufkin with 15 % . DT MD VB DT NNP NN IN DT CD NN NN CC NNP NNP IN CD NN .
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Despite the problems with new issues , high-yield bonds showed gains in the secondary , or resell , market . IN DT NNS IN JJ NNS , JJ NNS VBD NNS IN DT JJ , CC VB , NN .
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Junk bonds ended about one-half point higher with so-called high-quality issues from RJR Capital Holdings Corp. and Petrolane Gas Service Limited Partnership rising one point . NN NNS VBD IN NN NN JJR IN JJ JJ NNS IN NNP NNP NNP NNP CC NNP NNP NNP NNP NNP VBG CD NN .
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In the Treasury market , the benchmark 30-year bond rose seven-eighths point , or $ 8.75 for each $ 1,000 face amount . IN DT NNP NN , DT NN JJ NN VBD NNS VBP , CC $ CD IN DT $ CD NN NN .
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The gain reflects fresh economic evidence that inflation is moderating while the economy slows . DT NN VBZ JJ JJ NN DT NN VBZ VBG IN DT NN NNS .
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That raised hopes that interest rates will continue to move lower . DT VBN VBZ IN NN NNS MD VB TO VB JJR .
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The Labor Department reported that consumer prices rose just 0.2 % last month , slightly lower than some economists had expected . DT NNP NNP VBD IN NN NNS VBD RB CD NN JJ NN , RB JJR IN DT NNS VBD VBN .
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But there were also rumors yesterday that several Japanese institutional investors were shifting their portfolios and buying long-term bonds while selling shorter-term Treasurys . CC EX VBD RB VBZ NN IN JJ JJ JJ NNS VBD VBG PRP$ NNS CC VBG JJ NNS IN VBG JJ NNPS .
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Short-term Treasury securities ended narrowly mixed , with two-year notes posting slight declines while three-year notes were slightly higher . NNP NNP NNS VBD RB VBN , IN JJ NNS VBG JJ NNS IN JJ NNS VBD RB JJR .
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Yesterday , the Fed executed four-day matched sales , a technical trading operation designed to drain reserves from the banking system . NN , DT NNP VBD JJ VBN NNS , DT JJ NN NN VBN TO VB NNS IN DT NN NN .
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The move was interpreted by some economists as a sign that the Fed does n't want the federal funds rate to move any lower than the 8 3\/4 % at which it has been hovering around during the past week . DT NN VBD VBN IN DT NNS IN DT NN IN DT NNP VBZ RB VB DT JJ NNS NN TO VB DT JJR IN DT CD CD NN IN WDT PRP VBZ VBN VBG IN IN DT JJ NN .
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The closely watched funds rate is what banks charge each other on overnight loans . DT RB VBN NNS NN VBZ WP VBZ VBP DT NN IN JJ NNS .
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It is considered an early signal of Fed credit policy changes . PRP VBZ VBN DT JJ NN IN NNP NN NN NNS .
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`` The fact that they did four-day matched sales means they are not in a mood to ease aggressively . `` DT NN IN PRP VBD JJ VBN NNS VBZ PRP VBP RB IN DT NN TO VB RB .
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They are telling us that -LCB- 8 3\/4 % -RCB- is as low as they want to see the fed funds rate , '' said Robert Chandross at Lloyds Bank PLC . PRP VBP VBG PRP IN ( CD CD NN ) VBZ RB JJ IN PRP VBP TO VB DT VBN NNS NN , '' VBD NNP NNP IN NNP NNP NNP .
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Treasury Securities NNP NNPS
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The benchmark 30-year bond was quoted late at a price of 101 25\/32 to yield 7.955 % , compared with 100 29\/32 to yield 8.032 % Wednesday . DT NN JJ NN VBD VBN RB IN DT NN IN CD CD TO VB CD NN , VBN IN CD CD TO VB CD NN NNP .
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The latest 10-year notes were quoted late at 100 9\/32 to yield 7.937 % , compared with 99 26\/32 to yield 8.007 % . DT JJS JJ NNS VBD VBN RB IN CD CD TO VB CD NN , VBN IN CD CD TO VB CD NN .
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Short-term rates rose yesterday . JJ NNS VBD NN .
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The discount rate on three-month Treasury bills rose to 7.56 % from 7.51 % Wednesday , while the rate on six-month bills rose to 7.57 % from 7.53 % . DT NN NN IN JJ NNP NNS VBD TO CD NN IN CD NN NNP , IN DT NN IN JJ NNS VBD TO CD NN IN CD NN .
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Meanwhile , the Treasury sold $ 9.75 billion of 52-week bills yesterday . RB , DT NNP VBD $ CD CD IN JJ NNS NN .
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The average yield on the bills was 7.35 % , down from 7.61 % at the previous 52-week bill auction Sept. 21 . DT JJ NN IN DT NNS VBD CD NN , RB IN CD NN IN DT JJ JJ NN NN NNP CD .
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Yesterday 's yield was the lowest since 7.22 % on July 27 . NN POS NN VBD DT JJS IN CD NN IN NNP CD .
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Here are details of the auction : RB VBP NNS IN DT NN :
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Rates are determined by the difference between the purchase price and face value . NNS VBP VBN IN DT NN IN DT NN NN CC NN NN .
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Thus , higher bidding narrows the investor 's return while lower bidding widens it . RB , JJR NN VBZ DT NN POS NN IN JJR NN VBZ PRP .
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The percentage rates are calculated on a 360-day year , while the coupon-equivalent yield is based on a 365-day year . DT NN NNS VBP VBN IN DT JJ NN , IN DT JJ NN VBZ VBN IN DT JJ NN .
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Corporate Issues JJ NNS
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Junk bond price climbed yesterday despite skittishness in the new-issue market for high-yield securities . NN NN NN VBD NN IN NN IN DT JJ NN IN JJ NNS .
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Dealers said junk bond issues on average were up by 1\/4 to 1\/2 point with so-called quality issues from RJR Capital Holdings Corp. and Petrolane Gas Service Limited Partnership posting one-point gains . NNS VBD NN NN NNS IN NN VBD IN IN CD TO CD NN IN JJ NN NNS IN NNP NNP NNP NNP CC NNP NNP NNP NNP NNP VBG JJ NNS .
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Petrolane Gas Service 's 13 1\/4 % debentures traded at 102 , after trading around par earlier this week , and RJR 's 13 1\/2 % subordinated debentures of 2001 were at 101 5\/8 after trading at below par earlier this week . NNP NNP NNP POS CD CD NN NNS VBN IN CD , IN NN IN NN RBR DT NN , CC NNP POS CD CD NN VBD NNS IN CD VBD IN CD CD IN NN IN IN NN RBR DT NN .
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Investment-grade bonds were unchanged . JJ NNS VBD JJ .
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Municipals NNS
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Activity was brisk in the high-grade general obligation market , as a series of sell lists hit the Street and capped upward price movement in the sector . NN VBD JJ IN DT JJ JJ NN NN , IN DT NN IN NN NNS VBD DT NNP CC VBD JJ NN NN IN DT NN .
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Traders estimated that more than $ 140 million of high-grade bonds was put up for sale via bid-wanted lists circulated by a handful of major brokers . NNS VBN IN JJR IN $ CD CD IN JJ NNS VBD VBN IN IN NN IN JJ NNS VBN IN DT NN IN JJ NNS .
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There was speculation that the supply was coming from a commercial bank 's portfolios . EX VBD NN IN DT NN VBD VBG IN DT JJ NN POS NNS .
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According to market participants , the bonds were met with decent bids , but the volume of paper left high grades in the 10-year and under maturity range unchanged to 0.05 percentage point higher in yield . VBG TO VB NNS , DT NNS VBD VBN IN JJ NNS , CC DT NN IN NN VBD JJ NNS IN DT JJ CC IN NN NN JJ TO CD NN NN JJR IN NN .
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Away from the general obligation sector , activity was modest . RB IN DT JJ NN NN , NN VBD JJ .
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Long dollar bonds were flat to up 3\/8 point . JJ NN NNS VBD JJ TO IN CD NN .
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New Jersey Turnpike Authority 's 7.20 % issue of 2018 was up 3\/8 at 98 3\/8 bid to yield about 7.32 % , down 0.03 percentage point . NNP NNP NNP NNP POS CD NN NN IN CD VBD IN CD IN CD CD NN TO VB IN CD NN , RB CD NN NN .
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The debt of some California issuers pulled off lows reached after Tuesday 's massive earthquake , although traders said market participants remained cautious . DT NN IN DT NNP NNS VBD IN NNS VBN IN NNP POS JJ NN , IN NNS VBD NN NNS VBD JJ .
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California expects to rely on federal emergency funds and its $ 1.06 billion in general fund reserves to meet the estimated $ 500 million to $ 1 billion in damages resulting from the quake , according to a state official . NNP VBZ TO VB IN JJ NN NNS CC PRP$ $ CD CD IN JJ NN NNS TO VB DT VBN $ CD CD TO $ CD CD IN NNS VBG IN DT NN , VBG TO DT NN NN .
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It 's also unclear precisely how the state will rebuild its reserve , said Cindy Katz , assistant director of California 's department of finance , although she noted that a bond offering for that purpose is n't anticipated . PRP VBZ RB JJ RB WRB DT NN MD VB PRP$ NN , VBD NNP NNP , NN NN IN NNP POS NN IN NN , IN PRP VBD IN DT NN NN IN DT NN VBZ RB VBN .
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Meanwhile , new issuance was slow . RB , JJ NN VBD JJ .
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The largest sale in the competitive arena was a $ 55.7 million issue of school financing bonds from the Virginia Public School Authority . DT JJS NN IN DT JJ NN VBD DT $ CD CD NN IN NN NN NNS IN DT NNP NNP NNP NNP .
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A balance of $ 25.8 million remained in late order-taking , according to the lead manager . DT NN IN $ CD CD VBD IN JJ NN , VBG TO DT NN NN .
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Mortgage-Backed Securities JJ NNPS
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Mortgage securities generally ended 6\/32 to 9\/32 point higher , but lagged gains in the Treasury market because of a shift in the shape of the Treasury yield curve and rumored mortgage sales by thrifts . NN NNS RB VBD CD TO CD NN JJR , CC VBD NNS IN DT NNP NN IN IN DT NN IN DT NN IN DT NNP NN NN CC VBN NN NNS IN NNS .
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Premium Government National Mortgage Association securities with coupon rates of 13 % and higher actually declined amid concerns about increased prepayments because of a plan being considered by Congress to speed the refinancing of government-subsidized mortgages . NNP NNP NNP NNP NNP NNS IN NN NNS IN CD NN CC JJR RB VBD IN NNS IN VBN NNS IN IN DT NN VBG VBN IN NNP TO VB DT NN IN JJ NNS .
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Ginnie Mae 13 % securities were down about 1\/4 at 109 30\/32 . NNP NNP CD NN NNS VBD RB IN CD IN CD CD .
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If the refinancing plan clears Congress , there could be fairly heavy prepayments on the premium securities , hurting any investor paying much above par for them . IN DT NN NN VBZ NNP , EX MD VB RB JJ NNS IN DT NN NNS , VBG DT NN VBG JJ IN NN IN PRP .
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In the current-coupon sector , a shift in the Treasury yield curve resulting from the better performance of long-dated issues over short-dated securities hurt major coupons because it will become more difficult to structure new derivative securities offerings . IN DT JJ NN , DT NN IN DT NNP NN NN VBG IN DT JJR NN IN JJ NNS IN JJ NNS VBD JJ NNS IN PRP MD VB RBR JJ TO VB JJ JJ NNS NNS .
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Ginnie Mae 9 % securities ended at 98 6\/32 , up 9\/32 , and Federal Home Loan Mortgage Corp. 9 % securities were at 97 10\/32 , up 6\/32 . NNP NNP CD NN NNS VBD IN CD CD , IN CD , CC NNP NNP NNP NNP NNP CD NN NNS VBD IN CD CD , IN CD .
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The Ginnie Mae 9 % issue was yielding 9.42 % to a 12-year average life assumption , as the spread above the Treasury 10-year note widened 0.03 percentage point to 1.48 . DT NNP NNP CD NN NN VBD VBG CD NN TO DT JJ JJ NN NN , IN DT NN IN DT NNP JJ NN VBD CD NN NN TO CD .
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While Remic issuance may slow in the coming days because of the shift in the Treasury yield curve , underwriters continued to crank out new real estate mortgage investment conduits structured when the yield curve was more favorable . IN NNP NN MD VB IN DT VBG NNS IN IN DT NN IN DT NNP NN NN , NNS VBD TO VB IN JJ JJ NN NN NN NNS VBN WRB DT NN NN VBD RBR JJ .
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Two new Remics totaling $ 900 million were announced by Freddie Mac yesterday . CD JJ NNS VBG $ CD CD VBD VBN IN NNP NNP NN .
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Foreign Bonds JJ NNS
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British government bonds ended little changed as investors awaited an economic policy address last night by Chancellor of the Exchequer Nigel Lawson . JJ NN NNS VBD RB VBN IN NNS VBD DT JJ NN NN JJ NN IN NNP IN DT NNP NNP NNP .
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The Treasury 11 3\/4 % bond due 2003\/2007 was down 2\/32 at 111 29\/32 to yield 10.09 % , while the 11 3\/4 % notes due 1991 were unchanged at 98 19\/32 to yield 12.94 % . DT NNP CD CD NN NN JJ CD VBD RB CD IN CD CD TO VB CD NN , IN DT CD CD NN NNS JJ CD VBD JJ IN CD CD TO VB CD NN .
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In Japan , the bellwether No. 111 4.6 % bond of 1998 ended off 0.03 at 95.72 , to yield 5.32 % , and in West Germany , the 7 % benchmark issue due October 1999 ended 0.05 point lower at 99.85 to yield 7.02 % . IN NNP , DT NN NN CD CD NN NN IN CD VBD IN CD IN CD , TO VB CD NN , CC IN NNP NNP , DT CD NN NN NN JJ NNP CD VBD CD NN JJR IN CD TO VB CD NN .
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THE PANHANDLER approaches , makes his pitch . DT NN NNS , VBZ PRP$ NN .
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It may be straightforward -- he wants money for food -- or incredibly convoluted ; his sister is at this very moment near death in Hoboken , he has lost his wallet and has only $ 1.22 in change to put toward a bus ticket costing $ 3.83 , and wo n't you give him the difference ? PRP MD VB JJ : PRP VBZ NN IN NN : CC RB JJ : PRP$ NN VBZ IN DT JJ NN IN NN IN NNP , PRP VBZ VBN PRP$ NN CC VBZ RB $ CD IN NN TO VB IN DT NN NN VBG $ CD , CC MD RB PRP VB PRP DT NN .
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No ? DT .
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Well , how about a loan , he 'll take your name and address ... UH , WRB IN DT NN , PRP MD VB PRP$ NN CC NN :
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Figuring that their money would more likely go toward a bottle of Night Train Express , most people have little trouble saying no to propositions like this . VBG IN PRP$ NN MD RBR JJ NN IN DT NN IN NNP NNP NNP , RBS NNS VBP JJ NN VBG DT TO NNS IN DT .
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But healthy skepticism vanishes when they are solicited by an organized charity to help fight cancer , famine , child abuse , or what have you . CC JJ NN VBZ WRB PRP VBP VBN IN DT VBN NN TO VB VB NN , NN , NN NN , CC WP VBP PRP .
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Most see little reason to doubt that their cash will go toward these noble goals . JJS VB JJ NN TO VB IN PRP$ NN MD VB IN DT JJ NNS .
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But will it ? CC MD PRP .
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In a distressing number of cases , no . IN DT JJ NN IN NNS , DT .
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In fact , the donors sometimes might be better off giving the money to the panhandler : at least he has no overhead , and he might even be telling the truth . IN NN , DT NNS RB MD VB JJR IN VBG DT NN TO DT NN : IN JJS PRP VBZ DT NN , CC PRP MD RB VB VBG DT NN .
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Last year , more than $ 100 billion was donated to the nation 's 400,000 charities . JJ NN , JJR IN $ CD CD VBD VBN TO DT NN POS CD NNS .
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While the vast bulk of it was indeed spent by reputable organizations on the good works it was raised for , it 's equally true that a sizable hunk was consumed in `` expenses '' claimed by other operators , including fraudulent expenses . IN DT JJ NN IN PRP VBD RB VBN IN JJ NNS IN DT JJ NNS PRP VBD VBN IN , PRP VBZ RB JJ IN DT JJ NN VBD VBN IN `` NNS '' VBN IN JJ NNS , VBG JJ NNS .
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In many cases the costs claimed were so high that only a dribble of cash was left for the purported beneficiaries . IN JJ NNS DT NNS VBD VBD RB JJ IN RB DT NN IN NN VBD VBN IN DT JJ NNS .
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It 's impossible to say exactly how much of the total charity intake is devoured by stratospheric fund-raising costs , high-living operators , and downright fraud . PRP VBZ JJ TO VB RB WRB NN IN DT JJ NN NN VBZ VBN IN JJ NN NNS , JJ NNS , CC JJ NN .
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But the problem clearly is widespread and persistent . CC DT NN RB VBZ JJ CC JJ .
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State law enforcers can barely keep up with charity scams , and reports from watchdog groups such as the Council of Better Business Bureaus are not encouraging . NN NN NNS MD RB VB IN IN NN NNS , CC NNS IN NN NNS JJ IN DT NNP IN NNP NNP NNP VBP RB VBG .
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The Philanthropic Advisory Service of the BBB reviews hundreds of new charities every year , measuring them against minimum standards for accountability ; for accuracy and honesty in solicitation ; and for percentage of funds actually going to work for which the charity was supposedly established . DT NNP NNP NNP IN DT NNP NNS NNS IN JJ NNS DT NN , VBG PRP IN JJ NNS IN NN : IN NN CC NN IN NN : CC IN NN IN NNS RB VBG TO VB IN WDT DT NN VBD RB VBN .
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The Service figures at least half of the money taken in should be spent on program . DT NNP NNS IN JJS NN IN DT NN VBN IN MD VB VBN IN NN .
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Roughly a third of the charities reviewed flunk the test . RB DT JJ IN DT NNS VBN VBP DT NN .
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Which , it should be added , does n't prevent the charities from raking in a lot of money anyway . WDT , PRP MD VB VBN , VBZ RB VB DT NNS IN VBG IN DT NN IN NN RB .
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Without a microscope and a subpoena , it 's often hard to sort out worthwhile causes from ripoffs if all you 've got to go on is the solicitation itself . IN DT NN CC DT NN , PRP VBZ RB JJ TO VB RP JJ NNS IN NNS IN DT PRP VBP VBD TO VB IN VBZ DT NN PRP .
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On this basis , `` there 's no way the average person can know a good charity from a bad one , '' says David Ormstedt , an assistant attorney general in Connecticut . IN DT NN , `` EX VBZ DT NN DT JJ NN MD VB DT JJ NN IN DT JJ CD , '' VBZ NNP NNP , DT NN NN JJ IN NNP .
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`` A lot of donors just get taken . '' `` DT NN IN NNS RB VBP VBN . ''
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Including those , he contends , who put about $ 1 million into the kitty for the Connecticut Association of Concerned Veterans and the Vietnam Veterans Service Center . VBG DT , PRP VBZ , WP VBP RB $ CD CD IN DT NN IN DT NNP NNP IN NNP NNP CC DT NNP NNP NNP NNP .
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The state has sued these charities in state court , complaining that much of the money was grossly misspent ; 82 % , says Mr. Ormstedt , went to fund raisers and most of the rest to the people who ran the charities and to their relatives -- for fur coats , trips to Florida , Lucullan restaurant tabs . DT NN VBZ VBN DT NNS IN NN NN , VBG IN NN IN DT NN VBD RB VBN : CD NN , VBZ NNP NNP , VBD TO VB NNS CC RBS IN DT NN TO DT NNS WP VBD DT NNS CC TO PRP$ NNS : IN NN NNS , NNS TO NNP , JJ NN NNS .
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The telephone number for the charity in Shelton , Conn. , has been disconnected , and the former officials could n't be located . DT NN NN IN DT NN IN NNP , NNP , VBZ VBN VBN , CC DT JJ NNS MD RB VB VBN .
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Running a charity does cost money , but reputable organizations manage to get the lion 's share of donations out to where they are really needed . VBG DT NN VBZ NN NN , CC JJ NNS VBP TO VB DT NN POS NN IN NNS IN TO WRB PRP VBP RB VBN .
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The Arthritis Foundation , the American Cancer Society and the United Way of America all say that they spend roughly 90 % of their income on programs , not overhead . DT NNP NNP , DT NNP NNP NNP CC DT NNP NN IN NNP DT NN IN PRP VBP RB CD NN IN PRP$ NN IN NNS , RB JJ .
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With some other charities , however , it s the other way around . IN DT JJ NNS , RB , PRP PRP DT JJ NN RB .
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The fledgling National Children 's Cancer Society , for example , took in $ 2.5 million last year to finance bone-marrow transplants for children . DT NN NNP NNS POS NNP NNP , IN NN , VBD IN $ CD CD JJ NN TO VB NN NNS IN NNS .
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By the time it paid its expenses it only had $ 120,000 left -- not enough to treat even one child . IN DT NN PRP VBD PRP$ NNS PRP RB VBD $ CD VBN : RB RB TO VB RB CD NN .
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The state of Illinois is suing the charity for fraud in Chicago , along with Telesystems Marketing Inc. , its Houston-based fund raiser . DT NN IN NNP VBZ VBG DT NN IN NN IN NNP , IN IN NNP NNP NNP , PRP$ JJ NN NN .
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Both deny wrongdoing . DT VB NN .
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The charity admits spending a lot on fund raising , but says that was necessary to establish a donor base it can tap at much lower cost in years to come . DT NN VBZ VBG DT NN IN NN VBG , CC VBZ WDT VBD JJ TO VB DT NN NN PRP MD VB IN RB JJR NN IN NNS TO VB .
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Michael Burns , president of Telesystems , says his concern has only benefited from the publicity surrounding the case , noting that three other charities have signed on as clients because they were impressed with the amount he raised for National Children 's . NNP NNP , NN IN NNP , VBZ PRP$ NN VBZ RB VBN IN DT NN VBG DT NN , VBG IN CD JJ NNS VBP VBN IN IN NNS IN PRP VBD VBN IN DT NN PRP VBD IN NNP NNS POS .
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Meanwhile , a state court judge has allowed the charity to go on soliciting funds . RB , DT NN NN NN VBZ VBN DT NN TO VB IN VBG NNS .
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Enforcers ca n't put charities out of business simply because they spend the lion 's share of their income on fund raising . NNS MD RB VB NNS IN IN NN RB IN PRP VBP DT NN POS NN IN PRP$ NN IN NN VBG .
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State laws previously used as a yardstick minimum percentages of income -- usually half -- that had to be spent on the program rather than overhead , but these have been overturned by the U.S. Supreme Court . NN NNS RB VBN IN DT NN JJ NNS IN NN : RB NN : WDT VBD TO VB VBN IN DT NN RB IN JJ , CC DT NN VBN VBN IN DT NNP NNP NNP .
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It has ruled that such laws might work to stifle fund raising , which would amount to limiting the charities ' first-amendment right to freedom of expression . PRP VBZ VBN IN JJ NNS MD VB TO VB NN VBG , WDT MD VB TO VBG DT NNS POS JJ NN TO NN IN NN .
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This puts upon enforcers the burden of proving outright fraud or misrepresentation , and such actions have been brought against hundreds of charities recently . DT VBZ IN NNS DT NN IN VBG JJ NN CC NN , CC JJ NNS VBP VBN VBN IN NNS IN NNS RB .
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The attorney general 's office in Connecticut alone has put seven of them out of business over the past couple of years , and the enforcement drive is continuing there and elsewhere . DT NN NN POS NN IN NNP RB VBZ VBN CD IN PRP IN IN NN IN DT JJ NN IN NNS , CC DT NN NN VBZ VBG EX CC RB .
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In making cases , the authorities frequently zero in on alleged misrepresentations made by the charities ' fund raisers . IN VBG NNS , DT NNS RB CD IN IN VBN NNS VBN IN DT NNS POS NN NNS .
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Illinois , for instance , currently has under investigation 10 of the 30 companies drumming up funds for charities soliciting there . NNP , IN NN , RB VBZ IN NN CD IN DT CD NNS VBG IN NNS IN NNS VBG RB .
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Enforcers pay special attention to operators using sweepstakes prizes as an additional inducement to give . NNS VBP JJ NN TO NNS VBG NN NNS IN DT JJ NN TO VB .
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Attorneys general in several states , including Illinois , are already suing Watson & Hughey Co. , an Alexandria , Va.-based outfit that they say has used deceptive sweepstakes ads to solicit donations for the American Heart Disease Foundation and the Cancer Fund of America . NNS JJ IN JJ NNS , VBG NNP , VBP RB VBG NNP CC NNP NNP , DT NNP , JJ NN IN PRP VBP VBZ VBN JJ NN NNS TO VB NNS IN DT NNP NNP NNP NNP CC DT NNP NNP IN NNP .
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According to the Illinois attorney general 's suit , Watson & Hughey sent mailings indicating that recipients were guaranteed cash prizes , and could win up to an additional $ 1,000 on top of them , if they contributed as little as $ 7 . VBG TO DT NNP NN NN POS NN , NNP CC NNP VBD NNS VBG IN NNS VBD VBN NN NNS , CC MD VB IN TO DT JJ $ CD IN NN IN PRP , IN PRP VBD RB JJ IN $ CD .
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But the total value of the prizes was only $ 5,000 and most `` winners '' will receive just 10 cents , according to the attorney general 's office . CC DT JJ NN IN DT NNS VBD RB $ CD CC RBS `` NNS '' MD VB RB CD NNS , VBG TO DT NN NN POS NN .
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The suit is still pending in Illinois state court . DT NN VBZ RB VBG IN NNP NN NN .
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Watson & Hughey has denied the allegations in court ; officials decline to comment further . NNP CC NNP VBZ VBN DT NNS IN NN : NNS VBP TO VB JJ .
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While they can target some of the most obvious miscreants , enforcers concede that they are only scratching the surface . IN PRP MD VB DT IN DT RBS JJ NNS , NNS VBP IN PRP VBP RB VBG DT NN .
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There are so many cunning ploys used by so many dubious operators , they say , that it is probably impossible to stop them all . EX VBP RB JJ JJ NNS VBN IN RB JJ JJ NNS , PRP VBP , IN PRP VBZ RB JJ TO VB PRP DT .
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One maneuver : the `` public education '' gambit . CD NN : DT `` JJ NN '' NN .
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The solicitation material indicates that donations will go toward a campaign alerting and informing the public about some health or other issue . DT NN NN VBZ IN NNS MD VB IN DT NN VBG CC VBG DT NN IN DT NN CC JJ NN .
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What it does n't say is that the entire `` campaign '' may be the fund-raising letter itself . WP PRP VBZ RB VB VBZ IN DT JJ `` NN '' MD VB DT NN NN PRP .
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`` All too often this will merely be a statement on the solicitation such as , ` Do n't smoke ! ' or ` Wear suntan lotion , ' `` says William Webster , attorney general of Missouri . `` DT RB RB DT MD RB VB DT NN IN DT NN JJ IN , `` VBP RB VB . '' CC `` VB NN NN , POS `` VBZ NNP NNP , NN NN IN NNP .
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`` By putting these pithy statements on the solicitations , hundreds of thousands of dollars are claimed to have been spent on education to consumers when in fact this represents the costs of sending the newsletters . '' `` IN VBG DT JJ NNS IN DT NNS , NNS IN NNS IN NNS VBP VBN TO VB VBN VBN IN NN TO NNS WRB IN NN DT VBZ DT NNS IN VBG DT NNS . ''
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Mr. Webster cites a four-page mailing from the United Cancer Council that offers a chance to win $ 5,000 in gold bullion to those giving as little as $ 5 to cancer education . NNP NNP VBZ DT JJ NN IN DT NNP NNP NNP WDT VBZ DT NN TO VB $ CD IN NN NN TO DT VBG RB JJ IN $ NN TO NN NN .
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`` A few boilerplate warnings about cancer appear but that 's only two inches in all four pages . `` DT JJ NN NNS IN NN VB CC DT VBZ RB CD NNS IN DT CD NNS .
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I think some people may believe they 're helping fund a massive TV and print campaign , but we could n't find that the charity does anything except write these letters , '' he says . PRP VBP DT NNS MD VB PRP VBP VBG NN DT JJ NN CC NN NN , CC PRP MD RB VB IN DT NN VBZ NN IN VB DT NNS , '' PRP VBZ .
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Officials at the Washington D.C.-based charity did n't return repeated phone calls . NNS IN DT NNP JJ NN VBD RB VB VBN NN NNS .
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Many fly-by-night charities ride the coattails of the biggest , best-known and most reputable ones by adopting names similar to theirs . JJ JJ NNS VBP DT NNS IN DT JJS , JJ CC RBS JJ NNS IN VBG NNS JJ TO PRP .
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The established charities are bothered by this but say they can do little about it . DT VBN NNS VBP VBN IN DT CC VBP PRP MD VB JJ IN PRP .
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`` We ca n't police the many organizations that have sprung up in the last few years using part of our name . `` PRP MD RB VB DT JJ NNS WDT VBP VBN IN IN DT JJ JJ NNS VBG NN IN PRP$ NN .
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Most of them do n't last for long , but in the meantime all we can do is tell people they are n't connected with us , '' says a spokeswoman for the American Heart Association . JJS IN PRP VBP RB JJ IN JJ , CC IN DT NN DT PRP MD VB VBZ VB NNS PRP VBP RB VBN IN PRP , '' VBZ DT NN IN DT NNP NNP NNP .
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And sometimes a reputable charity with a household name gets used and does n't even know it . CC RB DT JJ NN IN DT NN NN VBZ VBN CC VBZ RB RB VB PRP .
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A couple in Rockford , Ill. , raised $ 12,591 earlier this year using the name and logo of Mothers Against Drunk Driving , without permission from the group . DT NN IN NNP , NNP , VBD $ CD RBR DT NN VBG DT NN CC NN IN NNPS IN JJ VBG , IN NN IN DT NN .
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MADD did n't learn of the fund raising until the couple sent it a check for $ 613 , along with a letter saying that was the charity 's `` share . '' NNP VBD RB VB IN DT NN VBG IN DT NN VBD PRP DT NN IN $ CD , IN IN DT NN VBG WDT VBD DT NN POS `` NN . ''
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The Illinois Attorney General won a court order to prevent the couple from raising further funds without MADD 's permission . DT NNP NNP NNP VBD DT NN NN TO VB DT NN IN VBG JJ NNS IN NNP POS NN .
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The couple could n't be reached for comment and apparently have left Rockford , law enforcement officials report . DT NN MD RB VB VBN IN NN CC RB VBP VBN NNP , NN NN NNS VBP .
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Denise McDonald , a spokeswoman for MADD , says , `` It 's scary , because anybody could do this . '' NNP NNP , DT NN IN NNP , VBZ , `` PRP VBZ JJ , IN NN MD VB DT . ''
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Mr. Johnson is a staff reporter in The Wall Street Journal 's Chicago bureau . NNP NNP VBZ DT NN NN IN DT NNP NNP NNP POS NNP NN .
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Overhead costs at some of the largest charities , in millions of dollars NN NNS IN DT IN DT JJS NNS , IN NNS IN NNS
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British Airways PLC , a crucial participant in the proposed buy-out of UAL Corp. , washed its hands of the current efforts to revive a bid for the parent of United Airlines . JJ NNP NNP , DT JJ NN IN DT VBN NN IN NNP NNP , VBD PRP$ NNS IN DT JJ NNS TO VB DT NN IN DT NN IN NNP NNPS .
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Specifically , the British carrier said it currently has no plans to participate in any new offer for UAL . RB , DT JJ NN VBD PRP RB VBZ DT NNS TO VB IN DT JJ NN IN NNP .
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In addition , British Air officially withdrew its support for the previous $ 300-a-share bid in a terse statement that said `` the original deal is closed . '' IN NN , NNP NNP RB VBD PRP$ NN IN DT JJ $ JJ NN IN DT JJ NN WDT VBD `` DT JJ NN VBZ VBN . ''
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Company officials said later that British Airways believes its involvement in the UAL buy-out ended last Friday when the buy-out group , which also includes UAL 's management and pilot union , failed to obtain financing for the $ 6.79 billion transaction . NN NNS VBD RB IN JJ NNPS VBZ PRP$ NN IN DT NNP NN VBD JJ NNP WRB DT NN NN , WDT RB VBZ NNP POS NN CC NN NN , VBD TO VB NN IN DT $ CD CD NN .
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The carrier stopped short of saying it would n't at some point reconsider participating in any new bid for UAL . DT NN VBD NN IN VBG PRP MD RB IN DT NN VB VBG IN DT JJ NN IN NNP .
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However , company officials said they plan to take `` no initiatives '' to resurrect the transaction , and `` are n't aware '' of any restructured bid in the making . RB , NN NNS VBD PRP VBP TO VB `` DT NNS '' TO VB DT NN , CC `` VBP RB JJ '' IN DT VBN NN IN DT NN .
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Collectively , the statements raised questions about whether a new bid for UAL will ever get off the ground . RB , DT NNS VBD NNS IN IN DT JJ NN IN NNP MD RB VB IN DT NN .
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The transaction has had a series of setbacks since the financing problems became known last Friday , with no signs or statements from the buy-out group to indicate that any progress has taken place . DT NN VBZ VBN DT NN IN NNS IN DT NN NNS VBD VBN JJ NNP , IN DT NNS CC NNS IN DT NN NN TO VB IN DT NN VBZ VBN NN .
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However , in response to the British Air decision , United 's pilot union vowed to continue efforts to revive the buy-out . RB , IN NN TO DT NNP NNP NN , NNP POS NN NN VBD TO VB NNS TO VB DT NN .
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Pilot union Chairman Frederick C. Dubinsky said advisers to UAL management and the union will begin meeting in New York today and will work through the weekend to devise a new proposal to present to UAL 's board `` at the earliest time possible . '' NN NN NNP NNP NNP NNP VBD NNS TO NNP NN CC DT NN MD VB NN IN NNP NNP NN CC MD VB IN DT NN TO VB DT JJ NN TO VB TO NNP POS NN `` IN DT JJS NN JJ . ''
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Pilot union advisers appeared confident that a new bid could go forward even without British Air 's participation . NN NN NNS VBD JJ IN DT JJ NN MD VB RB RB IN NNP NNP POS NN .
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UAL declined to comment on British Air 's statement . NNP VBD TO VB IN NNP NNP POS NN .
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UAL Chairman Stephen M. Wolf , who is leading the management end of the buy-out , has n't provided investors with any assurances about the prospect of a new deal . NNP NNP NNP NNP NNP , WP VBZ VBG DT NN NN IN DT NN , VBZ RB VBN NNS IN DT NNS IN DT NN IN DT JJ NN .
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In another setback yesterday , United 's machinist union asked the Treasury Department to investigate whether certain aspects of the original buy-out proposal violated tax laws . IN DT NN NN , NNP POS NN NN VBD DT NNP NNP TO VB IN JJ NNS IN DT JJ NN NN VBD NN NNS .
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In an effort to derail the buy-out , the union has already called for investigations by the Securities and Exchange Commission , Transportation Department and Labor Department . IN DT NN TO VB DT NN , DT NN VBZ RB VBN IN NNS IN DT NNP CC NNP NNP , NNP NNP CC NNP NNP .
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But there was one bright spot yesterday . CC EX VBD CD JJ NN NN .
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The United flight-attendants union agreed to negotiations that could lead to the flight attendants contributing concessions to a revived bid in exchange for an ownership stake . DT NNP NNS NN VBD TO NNS WDT MD VB TO DT NN NNS VBG NNS TO DT VBN NN IN NN IN DT NN NN .
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The pilot union , the only one to support the buy-out thus far , said the flight attendants ' decision `` enforces our belief that an all-employee owned airline is practical and achievable . '' DT NN NN , DT RB CD TO VB DT NN RB RB , VBD DT NN NNS POS NN `` VBZ PRP$ NN IN DT JJ VBN NN VBZ JJ CC JJ . ''
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Still , without the assurance of British Airways ' financial backing , it will be tougher for the buy-out group to convince already-reluctant banks to make loan commitments for a revised bid , especially since British Air 's original investment represented 78 % of the cash equity contribution for the bid . RB , IN DT NN IN JJ NNPS POS JJ NN , PRP MD VB JJR IN DT NN NN TO VB JJ NNS TO VB NN NNS IN DT VBN NN , RB IN NNP NNP POS JJ NN VBN CD NN IN DT NN NN NN IN DT NN .
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Under the previous plan , British Air would have received a 15 % stake in UAL in exchange for a $ 750 million equity investment , with a 75 % stake going to UAL employees and 10 % to UAL management . IN DT JJ NN , NNP NNP MD VB VBN DT CD NN NN IN NNP IN NN IN DT $ CD CD NN NN , IN DT CD NN NN VBG TO NNP NNS CC CD NN TO NNP NN .
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British Air officials said the airline 's chairman , Lord King , was concerned about news reports indicating that British Air might be willing to participate in a bid that included a lower purchase price and better investment terms for the British carrier . NNP NNP NNS VBD DT NN POS NN , NNP NNP , VBD VBN IN NN NNS VBG IN NNP NNP MD VB JJ TO VB IN DT NN WDT VBD DT JJR NN NN CC JJR NN NNS IN DT JJ NN .
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The previous reports were based on remarks by British Air 's chief financial officer , Derek Stevens , who said any revised bid would have to include a lower purchase price to reflect the sharp drop in UAL 's stock in the past week . DT JJ NNS VBD VBN IN NNS IN NNP NNP POS JJ JJ NN , NNP NNP , WP VBD DT VBN NN MD VB TO VB DT JJR NN NN TO VB DT JJ NN IN NNP POS NN IN DT JJ NN .
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UAL stock dropped $ 1.625 yesterday to $ 190.125 on volume of 923,500 shares in composite trading on the New York Stock Exchange . NNP NN VBD $ CD NN TO $ CD IN NN IN CD NNS IN JJ NN IN DT NNP NNP NNP NNP .
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UAL declined to comment on British Air 's statement . NNP VBD TO VB IN NNP NNP POS NN .
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In an interview Wednesday with Dow Jones Professional Investor Report , Mr. Stevens said , `` We 're in no way committed to a deal going through at all . IN DT NN NNP IN NNP NNP NNP NNP NNP , NNP NNP VBD , `` PRP VBP IN DT NN VBN TO DT NN VBG IN IN DT .
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We 're not rushing into anything . PRP VBP RB VBG IN NN .
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We do n't want to be party to a second rejection . '' PRP VBP RB VB TO VB NN TO DT JJ NN . ''
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Indeed , British Air seemed to be distancing itself from the troubled transaction early in an effort to avoid any further embarrassment . RB , NNP NNP VBD TO VB VBG PRP IN DT JJ NN RB IN DT NN TO VB DT JJ NN .
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The original transaction fell through on the same day British Air shareholders approved the plan at a special meeting after the British succeeded in arranging the financing for its equity contribution . DT JJ NN VBD IN IN DT JJ NN NNP NNP NNS VBD DT NN IN DT JJ NN IN DT JJ VBN IN VBG DT NN IN PRP$ NN NN .
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The carrier also seemed eager to place blame on its American counterparts . DT NN RB VBD JJ TO VB NN IN PRP$ JJ NNS .
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`` The -LCB- buy-out -RCB- consortium ceased to exist because our American partners were not capable of organizing the financing , '' a British Air spokesman said . `` DT ( NN ) NN VBD TO VB IN PRP$ JJ NNS VBD RB JJ IN VBG DT NN , '' DT NNP NNP NN VBD .
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British Airways may have begun to have second thoughts about the transaction after the Transportation Department forced Northwest 's Airlines ' new owners to restructure the equity contribution of KLM Royal Dutch Airlines in that carrier . JJ NNPS MD VB VBN TO VB JJ NNS IN DT NN IN DT NNP NNP VBD NNP POS NNPS POS JJ NNS TO VB DT NN NN IN NNP NNP JJ NNPS IN DT NN .
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Most of the department 's statements since the Northwest transaction indicated it planned to curtail foreign ownership stakes in U.S. carriers . JJS IN DT NN POS NNS IN DT NNP NN VBD PRP VBD TO VB JJ NN NNS IN NNP NNS .
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Even before British Air 's announcement , pilot union leaders had been meeting in Chicago yesterday to consider their options . RB IN NNP NNP POS NN , NN NN NNS VBD VBN NN IN NNP NN TO VB PRP$ NNS .
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The leaders expressed support for trying to revive the bid following a briefing Wednesday by the union 's advisers , Lazard Freres & Co. and Paul , Weiss , Rifkind Wharton & Garrison . DT NNS VBD NN IN VBG TO VB DT NN VBG DT NN NNP IN DT NN POS NNS , NNP NNP CC NNP CC NNP , NNP , NNP NNP CC NNP .
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They also unanimously re-elected Mr. Dubinsky , the union chairman who has led the pilots ' 2 1\/2-year fight to take control of the airline . PRP RB RB VBN NNP NNP , DT NN NN WP VBZ VBN DT NNS POS CD JJ NN TO VB NN IN DT NN .
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UAL 's advisers have indicated previously that it may take a while to come forward with a revised plan since they want to have firm bank commitments before launching a new bid . NNP POS NNS VBP VBN RB IN PRP MD VB DT JJ TO VB RB IN DT VBN NN IN PRP VBP TO VB NN NN NNS IN VBG DT JJ NN .
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They have maintained that banks remain interested in financing the transaction . PRP VBP VBN IN NNS VBP JJ IN VBG DT NN .
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The buy-out fell through after Citicorp and Chase Manhattan Corp. , the lead banks in the transaction , failed to obtain $ 7.2 billion in financing needed for the plan . DT NN VBD IN IN NNP CC NNP NNP NNP , DT NN NNS IN DT NN , VBD TO VB $ CD CD IN NN VBN IN DT NN .
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Italy 's industrial wholesale sales index rose 13.2 % in June from a year earlier , the state statistical institute Istat said . NNP POS JJ JJ NNS NN VBD CD NN IN NNP IN DT NN RBR , DT NN JJ NN NNP VBD .
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The June increase compared with a rise of 10.5 % in May from a year earlier . DT NNP NN VBN IN DT NN IN CD NN IN NNP IN DT NN RBR .
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Domestic wholesale sales rose 11.9 % from a year earlier , while foreign sales jumped 17.3 % , Istat said . JJ JJ NNS VBD CD NN IN DT NN RBR , IN JJ NNS VBD CD NN , NNP VBD .
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For the first six months , wholesale sales rose 12.3 % from the year before , reflecting to a 11.5 % jump in domestic sales and a 14.6 % boost in foreign sales . IN DT JJ CD NNS , JJ NNS VBD CD NN IN DT NN RB , VBG TO DT CD NN NN IN JJ NNS CC DT CD NN NN IN JJ NNS .
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Sales of capital goods to foreign and domestic destinations increased 16.6 % in the January-June period from a year earlier . NNS IN NN NNS TO JJ CC JJ NNS VBN CD NN IN DT JJ NN IN DT NN RBR .
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Sales of consumer goods rose 6.9 % in the same period , while sales of intermediate goods were up 13.8 % from a year ago . NNS IN NN NNS VBD CD NN IN DT JJ NN , IN NNS IN JJ NNS VBD IN CD NN IN DT NN RB .
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Senate Democrats favoring a cut in the capital-gains tax have decided , under pressure from their leaders , not to offer their own proposal , placing another obstacle in the path of President Bush 's legislative priority . NNP NNPS VBG DT NN IN DT NNS VBP VBP VBN , IN NN IN PRP$ NNS , RB TO VB PRP$ JJ NN , VBG DT NN IN DT NN IN NNP NNP POS JJ NN .
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A core group of six or so Democratic senators has been working behind the scenes to develop a proposal to reduce the tax on the gain from the sale of assets . DT NN NN IN CD CC RB JJ NNS VBZ VBN VBG IN DT NNS TO VB DT NN TO VB DT NN IN DT NN IN DT NN IN NNS .
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The plan was complete except for finishing touches , and there was talk that it would be unveiled as early as yesterday . DT NN VBD JJ IN IN VBG NNS , CC EX VBD VB IN PRP MD VB VBN RB RB IN NN .
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But Senate Majority Leader George Mitchell -LRB- D. , Maine -RRB- , a vigorous opponent of the capital-gains tax cut , called the group to meet with him Wednesday night and again yesterday . CC NNP NNP NNP NNP NNP ( NNP , NNP ) , DT JJ NN IN DT NNS VBP VB , VBD DT NN TO VB IN PRP NNP NN CC RB NN .
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Sen. Mitchell urged them to desist . NNP NNP VBD PRP TO VB .
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Afterward , leaders of the dissident Democrats relented , and said they would n't offer their own proposal as they had planned . RB , NNS IN DT JJ NNPS VBD , CC VBD PRP MD RB VB PRP$ JJ NN IN PRP VBD VBN .
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The decision is a setback for President Bush , who needs the support of Democrats to pass the tax cut through the Democratic-controlled Senate . DT NN VBZ DT NN IN NNP NNP , WP VBZ DT NN IN NNPS TO VB DT NN NN IN DT JJ NNP .
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Having a proposal sponsored by Democrats would have given the president an advantage . VBG DT NN VBN IN NNPS MD VB VBN DT NN DT NN .
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Having only a Republican measure makes the task harder . VBG RB DT NNP NN VBZ DT NN JJR .
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Still , Sen. Bob Packwood -LRB- R. , Ore. -RRB- , the lead sponsor of the Republican capital-gains amendment , predicted that the tax cut would be enacted this year . RB , NNP NNP NNP ( NNP , NNP ) , DT NN NN IN DT NNP NNS NN , VBD IN DT NN NN MD VB VBN DT NN .
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He said a clear majority of senators back the tax reduction and that ultimately there would be enough senators to overcome any procedural hurdle the Democratic leadership might erect . PRP VBD DT JJ NN IN NNS RB DT NN NN CC IN RB EX MD VB JJ NNS TO VB DT JJ NN DT JJ NN MD VB .
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But Sen. Mitchell , buoyed by his victory among fellow Democrats , strongly disagreed . CC NNP NNP , VBN IN PRP$ NN IN NN NNPS , RB VBD .
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Mr. Mitchell has been predicting that the president 's initiative would fail this year . NNP NNP VBZ VBN VBG IN DT NN POS NN MD VB DT NN .
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Yesterday , in an interview , he added that the Democrats ' decision `` increases the likelihood that a capital-gains tax cut will not pass this year . '' NN , IN DT NN , PRP VBD IN DT NNPS POS NN `` VBZ DT NN IN DT NNS VBP VB MD RB VB DT NN . ''
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Mr. Mitchell 's first victory came last week , when the Senate passed a deficit-reduction bill that did n't contain a capital-gains provision . NNP NNP POS JJ NN VBD JJ NN , WRB DT NNP VBD DT NN NN WDT VBD RB VB DT NNS NN .
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That vote made it unlikely that a capital-gains tax cut would be included in the final bill , now being drafted by House and Senate negotiators . DT NN VBD PRP JJ IN DT NNS VBP VB MD VB VBN IN DT JJ NN , RB VBG VBN IN NNP CC NNP NNS .
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The House version of the bill does include the tax cut . DT NNP NN IN DT NN VBZ VBP DT NN NN .
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Now Republican leaders are concentrating on attaching a capital-gains amendment to some other bill , perhaps a measure raising the federal borrowing limit or a second tax bill that would follow on the heels of the deficit-reduction legislation . RB NNP NNS VBP VBG IN VBG DT NNS NN TO DT JJ NN , RB DT NN VBG DT JJ NN NN CC DT JJ NN NN WDT MD VB IN DT NNS IN DT NN NN .
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To help lay the groundwork for that fight , President Bush plans early next week to meet at the White House with some 20 Democratic senators who favor cutting the capital-gains tax or are undecided on the issue . TO VB VBD DT NN IN DT NN , NNP NNP VBZ JJ JJ NN TO VB IN DT NNP NNP IN DT CD JJ NNS WP VBP VBG DT NNS VBP CC VBP JJ IN DT NN .
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The president apparently will have only one bill to push , Sen. Packwood 's , and at least some of the dissident Democrats plan to support it . DT NN RB MD VB RB CD NN TO VB , NNP NNP POS , CC IN JJS DT IN DT JJ NNPS NN TO VB PRP .
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`` I may want to offer additional amendments to improve it when the bill comes to the floor , '' said Sen. David Boren -LRB- D. , Okla. -RRB- , a leader of those Democrats . `` PRP MD VB TO VB JJ NNS TO VB PRP WRB DT NN VBZ TO DT NN , '' VBD NNP NNP NNP ( NNP , NNP ) , DT NN IN DT NNPS .
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The Packwood plan , as expected , would allow individuals to exclude from income 5 % of the gain from the sale of a capital asset held for more than one year . DT NNP NN , IN VBN , MD VB NNS TO VB IN NN NN NN IN DT NN IN DT NN IN DT NN NN VBN IN JJR IN CD NN .
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The exclusion would rise five percentage points for each year the asset was held , until it reached a maximum of 35 % after seven years . DT NN MD VB CD NN NNS IN DT NN DT NN VBD VBN , IN PRP VBD DT NN IN CD NN IN CD NNS .
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The exclusion would apply to assets sold after Oct. 1 . DT NN MD VB TO NNS VBN IN NNP CD .
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As an alternative , taxpayers could chose to reduce their gains by an inflation index . IN DT NN , NNS MD VBD TO VB PRP$ NNS IN DT NN NN .
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For corporations , the top tax rate on the sale of assets held for more than three years would be cut to 33 % from the current top rate of 34 % . IN NNS , DT JJ NN NN IN DT NN IN NNS VBN IN JJR IN CD NNS MD VB VBN TO CD NN IN DT JJ JJ NN IN CD NN .
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That rate would gradually decline to as little as 29 % for corporate assets held for 15 years . DT NN MD RB VB TO RB JJ IN CD NN IN JJ NNS VBN IN CD NNS .
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The Packwood plan also would include a proposal , designed by Sen. William Roth -LRB- R. , Del. -RRB- , that would create new tax benefits for individual retirement accounts . DT NNP NN RB MD VB DT NN , VBN IN NNP NNP NNP ( NNP , NNP ) , WDT MD VB JJ NN NNS IN JJ NN NNS .
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The Roth plan would create a new , non-deductible IRA from which money could be withdrawn tax-free not only for retirement , but also for the purchase of a first home , education expenses and medical expenses . DT NNP NN MD VB DT JJ , JJ NNP IN WDT NN MD VB VBN JJ RB RB IN NN , CC RB IN DT NN IN DT JJ NN , NN NNS CC JJ NNS .
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Current IRAs could be rolled over into the new IRAs , but would be subject to tax though no penalty . JJ NNS MD VB VBN IN IN DT JJ NNS , CC MD VB NN TO VB IN DT NN .
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Westmoreland Coal Co. , realizing benefits of a sustained effort to cut costs and boost productivity , reported sharply improved third-quarter results . NNP NNP NNP , VBG NNS IN DT VBN NN TO VB NNS CC VB NN , VBD RB VBN JJ NNS .
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The producer and marketer of low-sulfur coal said net income for the quarter was $ 5.9 million , or 71 cents a share , on revenue of $ 145.4 million . DT NN CC NN IN JJ NN VBD JJ NN IN DT NN VBD $ CD CD , CC CD NNS DT NN , IN NN IN $ CD CD .
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For the year-earlier period , the company reported a loss of $ 520,000 or six cents a share . IN DT JJ NN , DT NN VBD DT NN IN $ CD CC CD NNS DT NN .
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In the latest nine months , the company earned $ 8.5 million , or $ 1.03 a share . IN DT JJS CD NNS , DT NN VBD $ CD CD , CC $ CD DT NN .
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Last year 's net loss of $ 3,524,000 included a benefit of $ 1,640,000 from an accounting change . JJ NN POS JJ NN IN $ CD VBD DT NN IN $ CD IN DT NN NN .
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Revenue for the nine months rose to $ 449 million from $ 441.1 million . NN IN DT CD NNS VBD TO $ CD CD IN $ CD CD .
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In an interview , Pemberton Hutchinson , president and chief executive , cited several reasons for the improvement : higher employee productivity and `` good natural conditions '' in the mines , as well as lower costs for materials , administrative overhead and debt interest . IN DT NN , NNP NNP , NN CC JJ NN , VBD JJ NNS IN DT NN : JJR NN NN CC `` JJ JJ NNS '' IN DT NNS , RB RB IN JJR NNS IN NNS , JJ NN CC NN NN .
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In the latest nine months , Mr. Hutchinson said , total coal sales rose to about 14.6 million tons from about 14.3 million tons a year earlier . IN DT JJS CD NNS , NNP NNP VBD , JJ NN NNS VBD TO IN CD CD NNS IN IN CD CD NNS DT NN RBR .
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In addition , long-term debt has been trimmed to about $ 72 million from $ 96 million since Jan. 1 . IN NN , JJ NN VBZ VBN VBN TO RB $ CD CD IN $ CD CD IN NNP CD .
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He predicted the debt ratio will improve further in coming quarters . PRP VBD DT NN NN MD VB JJ IN VBG NNS .
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Westmoreland 's strategy is to retain and expand its core business of mining and selling low-sulphur coal in the Appalachia region . NNP POS NN VBZ TO VB CC VB PRP$ NN NN IN NN CC VBG JJ NN IN DT NNP NN .
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The operating territory includes coal terminals on the Ohio River and in Newport News , Va . DT VBG NN VBZ NN NNS IN DT NNP NNP CC IN NNP NNP , NNP .
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Westmoreland exports about a fourth of its coal tonnage , including a significant amount of metallurgical coal produced by others that is used by steelmakers overseas . NNP NNS IN DT JJ IN PRP$ NN NN , VBG DT JJ NN IN JJ NN VBN IN NNS WDT VBZ VBN IN NNS JJ .
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For the past couple of years , Westmoreland has undertaken an aggressive streamlining of all aspects of its business . IN DT JJ NN IN NNS , NNP VBZ VBN DT JJ NN IN DT NNS IN PRP$ NN .
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Marginal operations and assets have been sold . JJ NNS CC NNS VBP VBN VBN .
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The size of the company 's board has been reduced to eight directors from 13 . DT NN IN DT NN POS NN VBZ VBN VBN TO CD NNS IN CD .
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About 140 salaried management jobs and hundreds of hourly wage positions have been eliminated . IN CD JJ NN NNS CC NNS IN JJ NN NNS VBP VBN VBN .
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Even perks have been reduced . JJ NNS VBP VBN VBN .
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For example , the chief executive himself now pays 20 % of the cost of his health benefits ; the company used to pay 100 % . IN NN , DT JJ NN PRP RB VBZ CD NN IN DT NN IN PRP$ NN NNS : DT NN VBN TO VB CD NN .
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`` I think the ship is now righted , the bilges are pumped and we are on course , '' Mr. Hutchinson said of the restructuring program . `` PRP VBP DT NN VBZ RB VBN , DT NNS VBP VBN CC PRP VBP IN NN , '' NNP NNP VBD IN DT NN NN .
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`` Much of what we set out to do is completed . '' `` RB IN WP PRP VBD IN TO VB VBZ VBN . ''
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But he cautioned that Westmoreland 's third quarter is typically better than the fourth , so investors `` should n't just multiply the third quarter by four '' and assume the same rate of improvement can be sustained . CC PRP VBD IN NNP POS JJ NN VBZ RB JJR IN DT JJ , RB NNS `` MD RB RB VB DT JJ NN IN CD '' CC VB DT JJ NN IN NN MD VB VBN .
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One difference , he said , is that the fourth quarter has significantly fewer workdays because of holidays and the hunting season . CD NN , PRP VBD , VBZ IN DT JJ NN VBZ RB JJR NNS IN IN NNS CC DT NN NN .
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`` I do n't want to give the impression that everybody can relax now , '' he said . `` PRP VBP RB VB TO VB DT NN DT NN MD VB RB , '' PRP VBD .
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`` We have to keep working at improving our core business to stay efficient . `` PRP VBP TO VB VBG IN VBG PRP$ NN NN TO VB JJ .
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It 's a process that never really ends . '' PRP VBZ DT NN IN RB RB VBZ . ''
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Nevertheless , Mr. Hutchinson predicted that 1989 would be `` solidly profitable '' for Westmoreland and that 1990 would bring `` more of the same . '' RB , NNP NNP VBD IN CD MD VB `` RB JJ '' IN NNP CC IN CD MD VB `` JJR IN DT JJ . ''
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For all of 1988 , the company reported an after-tax operating loss of $ 134,000 on revenue of $ 593.5 million . IN DT IN CD , DT NN VBD DT JJ NN NN IN $ CD IN NN IN $ CD CD .
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An accounting adjustment made net income $ 1.5 million , or 18 cents a share . DT NN NN VBD JJ NN $ CD CD , CC CD NNS DT NN .
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In a move that complements the company 's basic strategy , its Westmoreland Energy Inc. unit is developing four coal-fired cogeneration plants with a partner in Virginia . IN DT NN WDT VBZ DT NN POS JJ NN , PRP$ NNP NNP NNP NN VBZ VBG CD JJ NN NNS IN DT NN IN NNP .
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Some of the coal the plants buy will come from Westmoreland mines . DT IN DT NN DT NNS VBP MD VB IN NNP NNS .
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Mr. Hutchinson predicted that the unit 's contribution to company results in the 1990s `` will be exciting . '' NNP NNP VBD IN DT NN POS NN TO NN NNS IN DT CD `` MD VB JJ . ''
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He said Westmoreland is looking at investment stakes in other cogeneration plants east of the Mississippi River . PRP VBD NNP VBZ VBG IN NN NNS IN JJ NN NNS NN IN DT NNP NNP .
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Westmoreland expects energy demand to grow annually in the 2.5 % range in the early 1990s . NNP VBZ NN NN TO VB RB IN DT CD NN NN IN DT JJ CD .
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`` We see coal 's piece of the action growing , '' Mr. Hutchinson said . `` PRP VBP NN POS NN IN DT NN VBG , '' NNP NNP VBD .
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`` Coal prices , while not skyrocketing , will grow modestly in real terms , we think . `` NNP NNS , IN RB VBG , MD VB RB IN JJ NNS , PRP VBP .
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Chase Manhattan Corp. , after trying unsuccessfully to sell its interest in its lower Manhattan operations building , has exercised its option to purchase the 50-story office tower . NNP NNP NNP , IN VBG RB TO VB PRP$ NN IN PRP$ JJR NNP NNS NN , VBZ VBN PRP$ NN TO VB DT JJ NN NN .
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Chase had purchased an option to buy the building at One New York Plaza for an undisclosed sum from the late Sol Atlas as part of its original lease in 1970 . NNP VBD VBN DT NN TO VB DT NN IN CD NNP NNP NNP IN DT JJ NN IN DT JJ NNP NNP IN NN IN PRP$ JJ NN IN CD .
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The current transaction cost the bank approximately $ 140 million . DT JJ NN NN DT NN RB $ CD CD .
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Of that amount , $ 20 million was payment for the land underneath the building and the rest was for the building itself . IN DT NN , $ CD CD VBD NN IN DT NN IN DT NN CC DT NN VBD IN DT NN PRP .
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The building houses about 4,500 Chase workers , most of whom will be moved to downtown Brooklyn after the bank 's new back office center is completed in 1993 . DT NN NNS IN CD NNP NNS , RBS IN WP MD VB VBN TO NN NNP IN DT NN POS JJ JJ NN NN VBZ VBN IN CD .
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The move is part of Chase 's strategy to consolidate its back offices under one roof . DT NN VBZ NN IN NNP POS NN TO VB PRP$ JJ NNS IN CD NN .
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The headquarters is located a few blocks away at 1 Chase Manhattan Plaza . DT NN VBZ VBN DT JJ NNS RB IN CD NNP NNP NNP .
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As part of its decision to leave the building , Chase tried to sell its interest , along with the Atlas estate 's interest , shortly after the October 1987 stock market crash . IN NN IN PRP$ NN TO VB DT NN , NNP VBD TO VB PRP$ NN , IN IN DT NNP NN POS NN , RB IN DT NNP CD NN NN NN .
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Chase Senior Vice President George Scandalios said the bank decided to exercise its option after bids fell short of expectations . NNP NNP NNP NNP NNP NNP VBD DT NN VBD TO VB PRP$ NN IN NNS VBD NN IN NNS .
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He said Chase and the Atlas estate were looking to sell the entire building for $ 400 million to $ 475 million , but did n't get an offer for more than $ 375 million . PRP VBD NNP CC DT NNP NN VBD VBG TO VB DT JJ NN IN $ CD CD TO $ CD CD , CC VBD RB VB DT NN IN JJR IN $ CD CD .
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As the building 's new owner , Chase will have its work cut out for it . IN DT NN POS JJ NN , NNP MD VB PRP$ NN NN IN IN PRP .
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Chase is vacating 1.1 million square feet of space , and Salomon Brothers Inc. , whose headquarters is in the building , also plans to move shortly . NNP VBZ VBG CD CD NN NNS IN NN , CC NNP NNP NNP , WP$ NN VBZ IN DT NN , RB VBZ TO VB RB .
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In addition , another major building tenant , Thomson McKinnon Inc. 's Thomson McKinnon Securities , likely will vacate the premises as part of its liquidation . IN NN , DT JJ NN NN , NNP NNP NNP POS NNP NNP NNPS , JJ MD VB DT NNS IN NN IN PRP$ NN .
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New York real estate brokerage Edward S. Gordon Co. will have the difficult task of finding new tenants . NNP NNP JJ NN NN NNP NNP NNP NNP MD VB DT JJ NN IN VBG JJ NNS .
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Even with its striking views of the New York harbor , the building is considered antiquated by modern office standards . RB IN PRP$ JJ NNS IN DT NNP NNP NN , DT NN VBZ VBN JJ IN JJ NN NNS .
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And Chase will have to spend approximately $ 50 million to remove asbestos from the premises . CC NNP MD VB TO VB RB $ CD CD TO VB NN IN DT NNS .
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WALL STREET , SHAKE hands with George Orwell . NNP NNP , VB NNS IN NNP NNP .
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The author of the futuristic novel `` 1984 '' invented a language called Newspeak that made it impossible to fully develop a heretical thought -- that is , anything negative about the policies and practices of the state . DT NN IN DT JJ NN `` CD '' VBN DT NN VBN NNP WDT VBD PRP JJ TO RB VB DT JJ VBD : DT VBZ , NN JJ IN DT NNS CC NNS IN DT NN .
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Wall Street has n't gotten that far yet , but it has made a promising start . NNP NNP VBZ RB VBN IN RB RB , CC PRP VBZ VBN DT JJ NN .
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Its language -- call it Streetspeak -- is increasingly mellifluous , reassuring , and designed to make financial products and maneuvers appear better , safer or cheaper than they really are . PRP$ NN : VB PRP NNP : VBZ RB JJ , VBG , CC VBD TO VB JJ NNS CC NNS VBP JJR , JJR CC JJR IN PRP RB VBP .
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When something undeniably nasty happens , a few euphemisms are deployed to simply make it disappear , much as a fresh grave may be covered by a blanket of flowers . WRB NN RB JJ VBZ , DT JJ NNS VBP VBN TO RB VB PRP VB , JJ IN DT JJ NN MD VB VBN IN DT NN IN NNS .
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For example , we 'll bet you thought that the stock market crashed two years ago . IN NN , PRP MD VB PRP VBD IN DT NN NN VBD CD NNS RB .
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Wrong . JJ .
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According to some of the grand panjandrums of the market , it never happened . VBG TO DT IN DT JJ NNS IN DT NN , PRP RB VBD .
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In their lexicon the 508-point collapse in the Dow Jones Industrial Average on Oct. 19 , 1987 , was just a big blip . IN PRP$ NN DT JJ NN IN DT NNP NNP NNP NNP IN NNP CD , CD , VBD RB DT JJ NN .
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Trotting out a much-beloved Streetspeak term , New York Stock Exchange Chairman John Phelan recently declared that history would record the event as only `` a major technical correction . '' VBG RP DT JJ NNP NN , NNP NNP NNP NNP NNP NNP NNP RB VBD DT NN MD VB DT NN IN RB `` DT JJ JJ NN . ''
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-LRB- Another much-beloved saying , however , this one in plain English , holds that if something walks like a duck and quacks like a duck , it is a duck . ( DT JJ NN , RB , DT CD IN JJ NNP , VBZ IN IN NN VBZ IN DT NN CC NNS IN DT NN , PRP VBZ DT NN .
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On Oct. 29 , 1929 -- a date historians stubbornly insist on associating with the dreaded C-word -- the DJ industrials fell 12.8 % . IN NNP CD , CD : DT NN NNS RB VBP IN VBG IN DT VBN NN : DT NNP NNS VBD CD NN .
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In the `` technical correction '' of two years ago , they lost a whopping 22.6 % . -RRB- IN DT `` JJ NN '' IN CD NNS RB , PRP VBD DT JJ CD NN . )
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Customers hear a lot of this stuff from people who try to sell them stock . NNS VBP DT NN IN DT NN IN NNS WP VBP TO VB PRP VB .
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These people used to be called brokers , but apparently this word either is not grandiose enough or carries too many negative connotations from the aforementioned technical correction , when terrified customers could n't raise brokers on the phone . DT NNS VBN TO VB VBN NNS , CC RB DT NN DT VBZ RB JJ RB CC VBZ RB JJ JJ NNS IN DT JJ JJ NN , WRB VBN NNS MD RB VB NNS IN DT NN .
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Either way , the word `` broker '' is clearly out of favor . CC NN , DT NN `` NN '' VBZ RB IN IN NN .
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Of the major New York-based securities firms , only Morgan Stanley & Co. still calls its salespeople brokers . IN DT JJ NNP JJ NNS NNS , RB NNP NNP CC NNP RB VBZ PRP$ NN NNS .
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At Merrill Lynch & Co. and Shearson Lehman Hutton Inc. , they are `` financial consultants . '' IN NNP NNP CC NNP CC NNP NNP NNP NNP , PRP VBP `` JJ NNS . ''
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At Drexel Burnham Lambert Inc. , Prudential Bache Securities , and Dean Witter Reynolds Inc. , they are `` account executives . '' IN NNP NNP NNP NNP , NNP NNP NNPS , CC NNP NNP NNP NNP , PRP VBP `` NN NNS . ''
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At PaineWebber Inc. , they are `` investment executives . '' IN NNP NNP , PRP VBP `` NN NNS . ''
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Such titles are designed to convey a sense of dignified , broad-scale competence and expertise in selling today 's myriad financial products . JJ NNS VBP VBN TO VB DT NN IN VBN , JJ NN CC NN IN VBG NN POS JJ JJ NNS .
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It is a competence and expertise that some brokers themselves , overwhelmed by all the new things being dreamed up for them to peddle , do n't feel . PRP VBZ DT NN CC NN IN DT NNS PRP , VBN IN PDT DT JJ NNS VBG VBN IN IN PRP TO VB , VB RB VB .
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`` It s almost product de jour , '' grouses one account executive at Dean Witter . `` PRP PRP JJ NN FW FW , '' VBZ CD NN NN IN NNP NNP .
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The transmogrified brokers never let the C-word cross their lips , instead stressing such terms as `` safe , '' `` insured '' and `` guaranteed '' -- even though these terms may be severely limited in their application to a particular new financial product . DT VBD NNS RB VBP DT NN VB PRP$ NNS , RB VBG JJ NNS IN `` JJ , '' `` VBN '' CC `` VBN '' : RB IN DT NNS MD VB RB JJ IN PRP$ NN TO DT JJ JJ JJ NN .
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The names of some of these products do n't suggest the risk involved in buying them , either . DT NNS IN DT IN DT NNS VBP RB VB DT NN VBN IN VBG PRP , RB .
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A case in point : `` government-plus '' bond funds . DT NN IN NN : `` JJ '' NN NNS .
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What could imply more safety than investing in government bonds ? WP MD VB JJR NN IN VBG IN NN NNS .
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What could be better than getting a tad more income from them -LRB- the plus -RRB- than other people ? WP MD VB JJR IN VBG DT NN JJR NN IN PRP ( DT CC ) IN JJ NNS .
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Indeed , conservative investors , many of them elderly , have poured more than $ 50 billion into such funds , which promise fatter yields than ordinary Treasury bonds -- only to learn later that these funds use part of their money to dabble in high-risk bond options , a gambler 's game . RB , JJ NNS , NN IN PRP JJ , VBP VBN JJR IN $ CD CD IN JJ NNS , WDT VBP JJR NNS IN JJ NNP NNS : RB TO VB RB IN DT NNS VBP NN IN PRP$ NN TO VB IN JJ NN NNS , DT NN POS NN .
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When a certain class of investment performs so poorly that its reputation is tarnished , look for Wall Street to give it a new moniker . WRB DT JJ NN IN NN VBZ RB RB IN PRP$ NN VBZ VBN , VB IN NNP NNP TO VB PRP DT JJ NN .
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This seems to be happening now to limited partnerships , many of which either have gone into the tank in recent years or have otherwise been grievous disappointments . DT VBZ TO VB VBG RB TO JJ NNS , NN IN WDT DT NN VBN IN DT NN IN JJ NNS CC VBP RB VBN JJ NNS .
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They are still being sold , but more and more often as `` direct investments '' -- with all the same risks they had under the old label . PRP VBP RB VBG VBN , CC JJR CC RBR RB IN `` JJ NNS '' : IN PDT DT JJ NNS PRP VBD IN DT JJ NN .
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In such cases , the game has n't changed , only the name . IN JJ NNS , DT NN VBZ RB VBN , RB DT NN .
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In others a familiar old name still prevails , but the underlying game has changed . IN NNS DT JJ JJ NN RB VBZ , CC DT VBG NN VBZ VBN .
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For example , `` no load '' mutual funds remain a favorite with investors because they do n't carry a frontend sales commission . IN NN , `` DT NN '' JJ NNS VBP DT NN IN NNS IN PRP VBP RB VB DT NN NNS NN .
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Getting out of them , however , may be a different story now . VBG IN IN PRP , RB , MD VB DT JJ NN RB .
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Traditional no-loads made their money by charging an annual management fee , usually a modest one ; they imposed no other fees , and many still do n't . JJ NNS VBD PRP$ NN IN VBG DT JJ NN NN , RB DT JJ CD : PRP VBD DT JJ NNS , CC JJ RB VBP RB .
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In recent years , though , a passel of others flying the no-load flag have been imposing hefty charges -- all the way up to 6 % -- when an investor sells his shares . IN JJ NNS , RB , DT NN IN NNS VBG DT JJ NN VBP VBN VBG JJ NNS : PDT DT NN IN TO CD NN : WRB DT NN VBZ PRP$ NNS .
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Should n't they properly be called exit-load funds ? MD RB PRP RB VBP VBN JJ NNS .
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The mutual-fund industry is debating the question , but do n't expect a new name while the old one is working so well . DT JJ NN VBZ VBG DT NN , CC VBP RB VB DT JJ NN IN DT JJ CD VBZ VBG RB RB .
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And do n't expect anyone to change the term `` blue chip , '' either , even though some of the companies that still enjoy the title may be riskier investments than they were . CC VBP RB VB NN TO VB DT NN `` JJ NN , '' DT , RB IN DT IN DT NNS WDT RB VB DT NN MD VB JJR NNS IN PRP VBD .
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American Telephone & Telegraph Co. , for one , is still a favorite of widows , orphans and trust departments -- but shorn of its regional telephone units and exposed to competition on every side , it is a far different investment prospect than it was before divestiture . NNP NNP CC NNP NNP , IN CD , VBZ RB DT NN IN NNS , NNS CC NN NNS : CC VB IN PRP$ JJ NN NNS CC VBN TO NN IN DT NN , PRP VBZ DT RB JJ NN NN IN PRP VBD IN NN .
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Also , blue chips in general have suffered much more short-term price volatility in recent years . RB , JJ NNS IN JJ NN VBN RB RBR JJ NN NN IN JJ NNS .
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Larry Biehl , a money manager in San Mateo , Calif. , blames that on the advent of program trading , in which computers used by big institutional investors are programmed to buy and sell big blocks when certain market conditions prevail . NNP NNP , DT NN NN IN NNP NNP , NNP , VBZ IN IN DT NN IN NN NN , IN WDT NNS VBN IN JJ JJ NNS VBP VBN TO VB CC VB JJ NNS WRB JJ NN NNS VBP .
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Blue chips , he says , `` are now being referred to as poker chips . '' JJ NNS , PRP VBZ , `` VBP RB VBG VBN TO IN NN NNS . ''
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Finally , even the time-honored strategy called `` value investing '' no longer means what it once did . RB , RB DT JJ NN VBN `` NN VBG '' RB RB VBZ WP PRP RB VBD .
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Before the takeover mania of the '80s , it referred to rooting out through analysis undervalued stocks , especially those with shrewd management , sound fundamentals and decent prospects . IN DT NN NN IN DT NNS , PRP VBD TO VBG IN IN NN VBD NNS , RB DT IN JJ NN , NN NNS CC JJ NNS .
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Now , says Mr. Biehl , value investing often means `` looking for downtrodden companies with terrible management that are in real trouble . '' RB , VBZ NNP NNP , NN VBG RB VBZ `` VBG IN JJ NNS IN JJ NN WDT VBP IN JJ NN . ''
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To institutional investors or brokers , he adds , a company with value is a company at risk of being swallowed up . TO JJ NNS CC NNS , PRP VBZ , DT NN IN NN VBZ DT NN IN NN IN VBG VBN RB .
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Ms. Bettner covers personal finance from The Wall Street Journal 's Los Angeles bureau . NNP NNP VBZ JJ NN IN DT NNP NNP NNP POS NNP NNP NN .
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I was amused to read your recent news stories on the banking industry 's reserve additions and concomitant threats to cease making new loans to less-developed countries . PRP VBD VBN TO VB PRP$ JJ NN NNS IN DT NN NN POS NN NNS CC JJ NNS TO VB VBG JJ NNS TO JJ NNS .
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If the whole story were told , it would read something like this : IN DT JJ NN VBD VBN , PRP MD VB NN IN DT :
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-- During the 1970s the commercial banks lured the country loan business away from the bond markets where the discipline of a prospectus and `` Use of Proceeds '' confirmation allowed lenders to audit expenditures of old loans before new loans were made . : IN DT NNS DT JJ NNS VBD DT NN NN NN RB IN DT NN NNS WRB DT NN IN DT NN CC `` VB IN NNS '' NN VBD NNS TO VB NNS IN JJ NNS IN JJ NNS VBD VBN .
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-- The reward for that reckless lending was high reported earnings -LRB- and management bonuses -RRB- ; the price , a sea of bad loans . : DT NN IN DT JJ NN VBD NN VBD NNS ( CC NN NNS ) : DT NN , DT NN IN JJ NNS .
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-- For the past several years , the banks , lacking a private navy to enforce their interests , have been pressuring the U.S. Treasury to underwrite their bad LDC credits . : IN DT JJ JJ NNS , DT NNS , VBG DT JJ NN TO VB PRP$ NNS , VBP VBN VBG DT NNP NNP TO VB PRP$ JJ NNP NNS .
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-- The Treasury wisely has refused , but has concluded that indirect credit support through various multinational agencies should be made available for a price : either debt reduction or debt-service reduction or new loans -LRB- the Brady Plan -RRB- . : DT NNP RB VBZ VBN , CC VBZ VBN IN JJ NN NN IN JJ JJ NNS MD VB VBN JJ IN DT NN : DT NN NN CC JJ NN CC JJ NNS ( DT NNP NNP ) .
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-- The banks will threaten not to make further loans , but in truth , lacking the capital to write off their mistakes or to build a navy , they have no alternative but to go along . : DT NNS MD VB RB TO VB JJ NNS , CC IN NN , VBG DT NN TO VB IN PRP$ NNS CC TO VB DT NN , PRP VBP DT NN CC TO VB RB .
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George A. Wiegers NNP NNP NNP
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Gillette Co. elected Warren E. Buffett , chairman of Berkshire Hathaway Inc. , to its board , increasing the number of directors to 12 from 11 . NNP NNP VBD NNP NNP NNP , NN IN NNP NNP NNP , TO PRP$ NN , VBG DT NN IN NNS TO CD IN CD .
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Berkshire Hathaway earlier this year bought $ 600 million of preferred stock in Gillette that is convertible into an 11 % stake , and Gillette said at the time that Mr. Buffett would be added to the board . NNP NNP RBR DT NN VBD $ CD CD IN JJ NN IN NNP WDT VBZ JJ IN DT CD NN NN , CC NNP VBD IN DT NN IN NNP NNP MD VB VBN TO DT NN .
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Separately , Gillette said its third-quarter earnings rose 2 % to $ 65.2 million , or 57 cents a share , from $ 63.9 million , or 57 cents a share , in the year-earlier period ; per-share earnings remained flat despite an increase in net income in part because the company paid a $ 10.4 million dividend on the new preferred stock in the period . RB , NNP VBD PRP$ JJ NNS VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , IN DT JJ NN : JJ NNS VBD JJ IN DT NN IN JJ NN IN NN IN DT NN VBD DT $ CD CD NN IN DT JJ JJ NN IN DT NN .
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Sales rose 9 % to $ 921.6 million from $ 845.7 million , with sales of the company 's international\/diversified operations `` well above '' the year earlier-period . NNS VBD CD NN TO $ CD CD IN $ CD CD , IN NNS IN DT NN POS VBN NNS `` RB IN '' DT NN NN .
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For the nine months , Gillette 's net income declined 1 % to $ 205.3 million , or $ 2.02 a share , from $ 207 million , or $ 1.82 a share , in the 1988 period . IN DT CD NNS , NNP POS JJ NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , IN DT CD NN .
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Sales rose 6 % to $ 2.77 billion from $ 2.61 billion . NNS VBD CD NN TO $ CD CD IN $ CD CD .
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In composite trading on the New York Stock Exchange , the company closed yesterday at $ 45.50 a share , up 25 cents . IN JJ NN IN DT NNP NNP NNP NNP , DT NN VBD NN IN $ CD DT NN , IN CD NNS .
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When Walter Yetnikoff , the president of Sony Corp. 's CBS Records , last month told producer Peter Guber that Sony was about to make a $ 3.4 billion bid for Columbia Pictures and needed someone to run the studio , Mr. Guber jumped at the chance . WRB NNP NNP , DT NN IN NNP NNP POS NNP NNPS , JJ NN VBD NN NNP NNP IN NNP VBD IN TO VB DT $ CD CD NN IN NNP NNPS CC VBN NN TO VB DT NN , NNP NNP VBD IN DT NN .
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Within two days , he was on his way to New York and Tokyo to meet with top brass at Sony . IN CD NNS , PRP VBD IN PRP$ NN TO NNP NNP CC NNP TO VB IN JJ NN IN NNP .
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And before the week was out , Sony had offered Mr. Guber and his partner , Jon Peters , the most lucrative employment contracts in the history of the movie business . CC IN DT NN VBD IN , NNP VBD VBN NNP NNP CC PRP$ NN , NNP NNP , DT RBS JJ NN NNS IN DT NN IN DT NN NN .
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Not only that , Sony also agreed to give them a stake in Columbia 's future profits and buy their company , Guber Peters Entertainment Co. , for $ 200 million , almost 40 % more than the market value of the company . RB RB IN , NNP RB VBD TO VB PRP DT NN IN NNP POS NN NNS CC VB PRP$ NN , NNP NNP NNP NNP , IN $ CD CD , RB CD NN JJR IN DT NN NN IN DT NN .
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There was just one sticking point : The two had a prior commitment . EX VBD RB CD VBG NN : DT CD VBD DT JJ NN .
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Just seven months earlier , they had signed a five-year exclusive contract to make movies for Warner Bros. for which they had just produced the smash hit `` Batman . '' RB CD NNS RBR , PRP VBD VBN DT JJ JJ NN TO VB NNS IN NNP NNP IN WDT PRP VBD RB VBN DT NN VBD `` NNP . ''
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But Mr. Guber figured that Warner Communications Inc. chairman Steven Ross , would empathize and let the producers go , knowing the Sony offer was `` the culmination of a life 's work . '' CC NNP NNP VBD IN NNP NNP NNP NN NNP NNP , MD VB CC VB DT NNS VBP , VBG DT NNP NN VBD `` DT NN IN DT NN POS NN . ''
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He figured wrong . PRP VBD JJ .
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Last week , following fruitless settlement talks , Warner , now merging with Time Inc. , filed a $ 1 billion breach of contract suit in Los Angeles Superior Court against both Sony and Guber Peters . JJ NN , VBG JJ NN NNS , NNP , RB VBG IN NNP NNP , VBD DT $ CD CD NN IN NN NN IN NNP NNP NNP NNP IN DT NNP CC NNP NNP .
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Sony promptly countersued , charging Warner with trying to sabotage its acquisitions and hurt its efforts to enter the U.S. movie business . NNP RB VBD , VBG NNP IN VBG TO VB PRP$ NNS CC VBN PRP$ NNS TO VB DT NNP NN NN .
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The accusations of lying and duplicity are flying thick and fast on both sides : As one Sony executive puts it , `` It 's World War III . '' DT NNS IN VBG CC NN VBP VBG JJ CC RB IN DT NNS : IN CD NNP NN VBZ PRP , `` PRP VBZ NNP NNP NNP . ''
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That two successful producers who are n't all that well known outside Hollywood could occasion such a clash of corporate titans suggests how desperate the quest for proven talent is in the movie business . DT CD JJ NNS WP VBP RB DT NN RB VBN IN NNP MD VB JJ DT NN IN JJ NNS VBZ WRB JJ DT NN IN VBN NN VBZ IN DT NN NN .
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And they are a very odd team in any case . CC PRP VBP DT RB JJ NN IN DT NN .
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Mr. Guber was raised in Boston and educated in New York . NNP NNP VBD VBN IN NNP CC VBN IN NNP NNP .
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He is a lawyer with a string of academic degrees . PRP VBZ DT NN IN DT NN IN JJ NNS .
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Mr. Peters is a high-school dropout who came to fame as Barbra Streisand 's hairdresser . NNP NNP VBZ DT NN NN WP VBD TO VB IN NNP NNP POS NN .
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Yet , they are far and away the most prolific producers in Hollywood . RB , PRP VBP RB CC RB DT RBS JJ NNS IN NNP .
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And despite their share of duds , they make movies that make money . CC IN PRP$ NN IN NNS , PRP VBP NNS WDT VBP NN .
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That is a skill Sony badly needs -- and Warner is loath to lose . DT VBZ DT NN NNP RB VBZ : CC NNP VBZ JJ TO VB .
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Although Columbia had a good summer with `` Ghostbusters II '' and `` When Harry Met Sally , '' rivals such as Warner , Paramount Pictures , Walt Disney Co. and Universal Studios have been thrashing Columbia at the box office . IN NNP VBD DT JJ NN IN `` NNP NNP '' CC `` WRB NNP NNP NNP , '' NNS JJ IN NNP , NNP NNPS , NNP NNP NNP CC NNP NNP VBP VBN NN NNP IN DT NN NN .
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After five years of management turmoil , with four different studio heads , Columbia sorely needs a stable , savvy team to restore its credibility and get it back in the business of making hits . IN CD NNS IN NN NN , IN CD JJ NN NNS , NNP RB VBZ DT NN , JJ NN TO VB PRP$ NN CC VB PRP RB IN DT NN IN VBG NNS .
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Mr. Guber and Mr. Peters are n't universally loved in Hollywood but they are well connected . NNP NNP CC NNP NNP VBP RB RB VBD IN NNP CC PRP VBP RB VBN .
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Their stock in trade as `` executive producers '' is sniffing out hot properties , locking them up and then getting big studios to bankroll and distribute them . PRP$ NN IN NN IN `` NN NNS '' VBZ VBG RP JJ NNS , JJ PRP IN CC RB VBG JJ NNS TO VB CC VB PRP .
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Sometimes Mr. Guber and Mr. Peters do little more than grab the first draft of a screenplay for a `` Flashdance , '' or buy rights to a best seller such as `` The Color Purple . '' RB NNP NNP CC NNP NNP VBP RB JJR IN NN DT JJ NN IN DT NN IN DT `` NNP , '' CC VB NNS TO DT JJS NN JJ IN `` DT NNP NNP . ''
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It falls to others to do the writing , directing and producing . PRP VBZ TO NNS TO VB DT NN , VBG CC VBG .
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With MGM\/UA 's `` Rainman , '' for instance , Messrs. Guber and Peters had virtually nothing to do with day-to-day production , but their names still appear in big letters on the credits , and they are inevitably associated with its success . IN NNP POS `` NNP , '' IN NN , NNP NNP CC NNP VBD JJ NN TO VB IN JJ NN , CC PRP$ NNS RB VBP IN JJ NNS IN DT NNS , CC PRP VBP RB VBN IN PRP$ NN .
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Sometimes , as with `` Batman , '' the pair really do make the film . RB , IN IN `` NNP , '' DT NN RB VBP VB DT NN .
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In that case , Guber Peters acquired the rights in 1979 , nursed the movie through a dozen scripts , and were on the set in London for 11 months hovering over the most minute changes in casting and production . IN DT NN , NNP NNP VBD DT NNS IN CD , VBD DT NN IN DT NN NNS , CC VBD IN DT NN IN NNP IN CD NNS VBG IN DT RBS NN NNS IN VBG CC NN .
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`` They 're the best production talent around , '' says Brian De Palma , beholden to Guber Peters for hiring him to direct the Warner movie of Tom Wolfe 's novel `` Bonfire of the Vanities . '' `` PRP VBP DT JJS NN NN IN , '' VBZ NNP NNP NNP , JJ TO NNP NNP IN VBG PRP TO VB DT NNP NN IN NNP NNP POS NN `` NN IN DT NNS . ''
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On that film , which is to start shooting in a few months , `` they 've been very much involved , hiring talent and discussing the development of the script . IN DT NN , WDT VBZ TO VB NN IN DT JJ NNS , `` PRP VBP VBN RB RB VBN , VBG NN CC VBG DT NN IN DT NN .
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And when you 're making a movie this big , you need all the help you can get , '' Mr. De Palma adds . CC WRB PRP VBP VBG DT NN DT JJ , PRP VBP PDT DT NN PRP MD VB , '' NNP NNP NNP VBZ .
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`` I wish they were around 24 hours a day . '' `` PRP VBP PRP VBD IN CD VBZ DT NN . ''
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And some movies seem to have been hurt by their inattention . CC DT NNS VBP TO VB VBN VBN IN PRP$ NN .
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Warner executives blame Mr. Guber 's and Mr. Peters 's lack of involvement in `` Caddyshack II '' for casting and production problems and the film 's ultimate dismal failure . NNP NNS VBP NNP NNP POS CC NNP NNP POS NN IN NN IN `` NNP NNP '' IN VBG CC NN NNS CC DT NN POS JJ JJ NN .
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`` We 've had a few bombs , '' admits Mr. Peters . `` PRP VBP VBD DT JJ NNS , '' VBZ NNP NNP .
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`` But by and large this company has only been profitable . '' `` CC IN CC JJ DT NN VBZ RB VBN JJ . ''
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He says his company 's prowess at packaging and marketing `` is why we 'll be good at Columbia . PRP VBZ PRP$ NN POS NN IN NN CC NN `` VBZ WRB PRP MD VB JJ IN NNP .
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We practically ran our own studio . '' PRP RB VBD PRP$ JJ NN . ''
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Longtime Hollywood associates describe Mr. Guber as the intellectual powerhouse of the two , a man with a flair for deal-making and marketing . JJ NNP NNS VBP NNP NNP IN DT JJ NN IN DT CD , DT NN IN DT NN IN NN CC NN .
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`` Peter is a major piece of Hollywood manpower who has really earned his success , '' says Robert Bookman , an agent at Creative Artists Agency . `` NNP VBZ DT JJ NN IN NNP NN WP VBZ RB VBN PRP$ NN , '' VBZ NNP NNP , DT NN IN NNP NNP NNP .
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Mark Johnson , the producer of `` Rainman , '' chimes in : `` He has a great ability to hire terrific people and delegate authority ... . NNP NNP , DT NN IN `` NNP , '' VBZ IN : `` PRP VBZ DT JJ NN TO VB JJ NNS CC NN NN : .
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It 's no accident that they 've been able to develop such successful material . '' PRP VBZ DT NN IN PRP VBP VBN JJ TO VB JJ JJ NN . ''
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Mr. Peters , on the other hand , has fewer fans in Hollywood , and his detractors like to characterize him as something of a hot-tempered bully . NNP NNP , IN DT JJ NN , VBZ JJR NNS IN NNP , CC PRP$ NNS NN TO VB PRP IN NN IN DT JJ NN .
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He gets better reviews as a creative whiz , an enthusiast , an idea man . PRP VBZ JJR NNS IN DT JJ NN , DT NN , DT NN NN .
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He also had to fight harder for credibility than his partner did . PRP RB VBD TO VB JJR IN NN IN PRP$ NN VBD .
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Barbra Streisand made him famous . NNP NNP VBD PRP JJ .
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He cut her hair . PRP VBP PRP$ NN .
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He lived with her . PRP VBD IN PRP$ .
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He came to produce her records and her movies -- `` A Star Is Born '' and `` The Main Event . '' PRP VBD TO VB PRP$ NNS CC PRP$ NNS : `` DT NNP VBZ VBN '' CC `` DT NNP NN . ''
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Thrice married but now single , Mr. Peters got plenty of ink last summer for an on-set romance with actress Kim Basinger during the making of `` Batman . '' RB VBN CC RB JJ , NNP NNP VBD NN IN NN JJ NN IN DT JJ NN IN NN NNP NNP IN DT NN IN `` NNP . ''
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Mr. Guber , by contrast , has been married to one woman for more than 20 years . NNP NNP , IN NN , VBZ VBN VBN TO CD NN IN JJR IN CD NNS .
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But for all their intellectual and stylistic differences , they make the perfect `` good cop , bad cop '' team , Hollywood associates say . CC IN DT PRP$ JJ CC JJ NNS , PRP VBP DT JJ `` JJ NN , JJ NN '' NN , NNP NNS VBP .
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`` Peter is the bright , sympathetic guy when you 're doing a deal , '' says one agent . `` NNP VBZ DT JJ , JJ NN WRB PRP VBP VBG DT NN , '' VBZ CD NN .
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`` If there 's a problem , Peter disappears , and all of a sudden Jon shows up . '' `` IN EX VBZ DT NN , NNP VBZ , CC DT IN DT JJ NNP VBZ IN . ''
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Mr. Guber and Mr. Peters rub many people in Hollywood the wrong way . NNP NNP CC NNP NNP NN JJ NNS IN NNP DT JJ NN .
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Producers Don Simpson and Jerry Bruckheimer , who shepherded `` Flashdance '' through several scripts and ultimately produced the movie , bristle when Messrs. Guber and Peters take credit for the film . NNP NNP NNP CC NNP NNP , WP VBD `` NNP '' IN JJ NNS CC RB VBN DT NN , VBP WRB NNP NNP CC NNP VB NN IN DT NN .
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Says Mr. Simpson : `` The script was unreadable . VBZ NNP NNP : `` DT NN VBD JJ .
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We reinvented it . PRP VBD PRP .
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We are the producers of that movie . PRP VBP DT NNS IN DT NN .
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They got a small piece of the net profits and a screen credit '' as executive producers . PRP VBD DT JJ NN IN DT JJ NNS CC DT NN NN '' IN NN NNS .
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When Roger Birnbaum , an executive who worked for Guber Peters in the early 1980s , left to take a job as head of production at the United Artists studio , they made him forfeit all credits and financial interest in the films he had helped develop , including `` Rainman '' and `` Batman . '' WRB NNP NNP , DT NN WP VBD IN NNP NNP IN DT JJ CD , VBN TO VB DT NN IN NN IN NN IN DT NNP NNPS NN , PRP VBD PRP VB DT NNS CC JJ NN IN DT NNS PRP VBD VBN VB , VBG `` NNP '' CC `` NNP . ''
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Mr. Peters acknowledges that and says it 's not unlike the situation he and Mr. Guber are in with Warner . NNP NNP VBZ IN CC VBZ PRP VBZ RB IN DT NN PRP CC NNP NNP VBP IN IN NNP .
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`` I was upset with Roger , I fumpered and schmumpered , '' says Mr. Peters . `` PRP VBD VBN IN NNP , PRP VBD CC VBD , '' VBZ NNP NNP .
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`` But he wanted to pursue his own dream , and he went . '' `` CC PRP VBD TO VB PRP$ JJ NN , CC PRP VBD . ''
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Still , Mr. Birnbaum says his relationship with Guber Peters was `` one of the most successful I 've had in Hollywood . '' RB , NNP NNP VBZ PRP$ NN IN NNP NNP VBD `` CD IN DT RBS JJ PRP VBP VBD IN NNP . ''
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The two `` have a wonderful chemistry -- Jon is very impulsive , and Peter is very compulsive , '' adds Mr. Birnbaum , who is now head of production at News Corp. 's 20th Century Fox Film Co . DT CD `` VBP DT JJ NN : NNP VBZ RB JJ , CC NNP VBZ RB JJ , '' VBZ NNP NNP , WP VBZ JJ NN IN NN IN NNP NNP POS NNP NNP NNP NNP NNP .
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`` Jon Peters will come barreling into a room , say he 's got a great idea , and be gone . `` NNP NNP MD VB VBG IN DT NN , VBP PRP VBZ VBD DT JJ NN , CC VB VBN .
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Peter will take the kernel of that idea and make it grow into something specific ... . '' NNP MD VB DT NN IN DT NN CC VB PRP VB IN NN JJ : . ''
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Mr. Birnbaum recalls that Mr. Guber and Mr. Peters shifted into high gear a few years back upon learning that they had competition for the story of the murdered naturalist Dian Fossey , which became `` Gorillas in the Mist . '' NNP NNP VBZ IN NNP NNP CC NNP NNP VBD IN JJ NN DT JJ NNS RB IN VBG IN PRP VBD NN IN DT NN IN DT VBN NN NNP NNP , WDT VBD `` NNP IN DT NNP . ''
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He says , `` Within a few weeks , we made deals with the government of Rwanda and everyone who had ever met or talked to Dian Fossey . PRP VBZ , `` IN DT JJ NNS , PRP VBD NNS IN DT NN IN NNP CC NN WP VBD RB VBN CC VBD TO NNP NNP .
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I think Peter even made some deals with the gorillas . '' PRP VBP NNP RB VBD DT NNS IN DT NNS . ''
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Universal Studios was working on a competing film , but the studio and its producers ultimately agreed to co-produce the film with Guber Peters and Warner . NNP NNP VBD VBG IN DT VBG NN , CC DT NN CC PRP$ NNS RB VBD TO VB DT NN IN NNP NNP CC NNP .
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More recently , Guber Peters beat out a dozen other producers , reportedly including Robert Redford and Ted Turner , for rights to the life story of Chico Mendes , the murdered Brazilian union leader who fought developers in the Amazon rain forest . RBR RB , NNP NNP VB RP DT NN JJ NNS , RB VBG NNP NNP CC NNP NNP , IN NNS TO DT NN NN IN NNP NNP , DT VBN JJ NN NN WP VBD NNS IN DT NNP NN NN .
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Messrs. Guber and Peters assiduously courted the man 's widow for months , showing her a tape of `` Gorillas in the Mist '' to impress her with the quality of their work . NNP NNP CC NNP RB VBD DT NN POS NN IN NNS , VBG PRP$ DT NN IN `` NNP IN DT NNP '' TO VB PRP IN DT NN IN PRP$ NN .
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Money helped , too . NNP VBD , RB .
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Ultimately , they paid more than $ 1 million for the rights . RB , PRP VBD JJR IN $ CD CD IN DT NNS .
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-LRB- The sale caused a rift between the widow and some of her husband 's followers . ( DT NN VBD DT NN IN DT NN CC DT IN PRP$ NN POS NNS .
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Some of the money will go to the Chico Mendes Foundation , but it is n't earmarked for groups trying to save the rain forest . -RRB- DT IN DT NN MD VB TO DT NNP NNP NNP , CC PRP VBZ RB VBN IN NNS VBG TO VB DT NN NN . )
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It 's hardly astonishing -LRB- given the men 's track record -RRB- that Sony wants Mr. Guber and Mr. Peters . PRP VBZ RB JJ ( VBN DT NNS POS NN NN ) IN NNP VBZ NNP NNP CC NNP NNP .
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But it is puzzling to some Hollywood executives that Sony rushed to hire them without clearing up the Warner situation first . CC PRP VBZ JJ TO DT NNP NNS IN NNP VBD TO VB PRP IN VBG IN DT NNP NN JJ .
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Some note that Sony might have saved itself some trouble by just hiring Mr. Guber and letting Mr. Peters stay on to fulfill the Warner contract . DT NN IN NNP MD VB VBN PRP DT NN IN RB VBG NNP NNP CC VBG NNP NNP VB IN TO VB DT NNP NN .
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But though `` people in town may ask why Guber needs Peters , it 's good to have a partner , and obviously the chemistry works , '' says Steven Tisch , a producer who once worked for Mr. Guber . CC IN `` NNS IN NN MD VB WRB NNP VBZ NNP , PRP VBZ JJ TO VB DT NN , CC RB DT NN NNS , '' VBZ NNP NNP , DT NN WP RB VBD IN NNP NNP .
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`` This business is n't about personalities at the end of the day -- it s about whether the ink is red or black . `` DT NN VBZ RB IN NNS IN DT NN IN DT NN : PRP PRP IN IN DT NN VBZ JJ CC JJ .
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In the case of Peter and Jon , the ink has been very , very black . '' IN DT NN IN NNP CC NNP , DT NN VBZ VBN RB , RB JJ . ''
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Mr. Guber got his start in the movie business at Columbia two decades ago . NNP NNP VBD PRP$ NN IN DT NN NN IN NNP CD NNS RB .
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Recruited from New York University 's MBA program , he rose within two years to head of production , overseeing such films as `` The Way We Were , '' `` Taxi Driver , '' `` Tommy '' and `` Shampoo . '' VBN IN NNP NNP NNP POS NN NN , PRP VBD IN CD NNS TO VB IN NN , VBG JJ NNS IN `` DT NN PRP VBD , '' `` NN NNP , '' `` NNP '' CC `` NNP . ''
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In 1976 , he teamed up with record producer Neil Bogart in Casablanca Records and Filmworks -- later called Polygram Pictures -- where they produced such hits as as `` The Deep , '' and `` Midnight Express . '' IN CD , PRP VBD IN IN NN NN NNP NNP IN NNP NNPS CC NNP : RB VBN NNP NNPS : WRB PRP VBD JJ NNS IN IN `` DT NNP , '' CC `` NNP NNP . ''
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In 1980 , Mr. Guber got together with Mr. Peters , by then a successful producer in his own right , after the death of Mr. Bogart . IN CD , NNP NNP VBD RB IN NNP NNP , IN RB DT JJ NN IN PRP$ JJ NN , IN DT NN IN NNP NNP .
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While Guber Peters produced a number of hits for Warner and others , their record was n't always so impressive . IN NNP NNP VBD DT NN IN NNS IN NNP CC NNS , PRP$ NN VBD RB RB RB JJ .
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Among their clinkers were `` The Legend of Billie Jean , '' `` VisionQuest , '' `` Clue '' and `` Clan of the Cave Bear . '' IN PRP$ NNS VBD `` DT NNP IN NNP NNP , '' `` NNP , '' `` NNP '' CC `` NNP IN DT NNP NNP . ''
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And the failures make it possible for Warner in its current lawsuit to paint the producers as ingrates . CC DT NNS VBP PRP JJ IN NNP IN PRP$ JJ NN TO VB DT NNS IN NNS .
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The studio says it stuck with them `` even in the early years when the creative partnership was not particularly profitable for Warner . '' DT NN VBZ PRP VBD IN PRP `` RB IN DT JJ NNS WRB DT JJ NN VBD RB RB JJ IN NNP . ''
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Mr. Guber replies that `` this is a Goliath , this Time Warner , trying to chew up two fellows who have done only well for them for a long period of time . '' NNP NNP VBZ IN `` DT VBZ DT NNP , DT NNP NNP , VBG TO VB IN CD NNS WP VBP VBN RB RB IN PRP IN DT JJ NN IN NN . ''
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Mr. Guber and Mr. Peters maintain that executives at Warner have always known of their ambitions to run a major entertainment powerhouse , but that Warner never felt threatened until they linked up with Sony . NNP NNP CC NNP NNP VB IN NNS IN NNP VBP RB VBN IN PRP$ NNS TO VB DT JJ NN NN , CC IN NNP RB VBD VBN IN PRP VBD IN IN NNP .
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`` From the beginning , -LCB- they -RCB- knew we had a goal and a dream , '' says Mr. Guber . `` IN DT NN , ( PRP ) VBD PRP VBD DT NN CC DT NN , '' VBZ NNP NNP .
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On a number of occasions , he adds , he tried to get Warner to buy Guber Peters outright . IN DT NN IN NNS , PRP VBZ , PRP VBD TO VB NNP TO VB NNP NNP JJ .
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`` They always listened , but they never acted , '' Mr. Guber says . `` PRP RB VBD , CC PRP RB VBD , '' NNP NNP VBZ .
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In 1987 , Mr. Guber and Mr. Peters contributed their company 's assets in exchange for a 28 % stake in Barris Entertainment , a small-fry TV production company controlled by Giant Industries Inc. Chairman Burt Sugarman . IN CD , NNP NNP CC NNP NNP VBD PRP$ NN POS NNS IN NN IN DT CD NN NN IN NNP NNP , DT JJ NN NN NN VBN IN NNP NNP NNP NNP NNP NNP .
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In July a year later , Warner agreed to release the producers from their old contract when Messrs. Guber , Peters and Sugarman made a $ 100 million offer to buy 25 % of MGM\/UA . IN NNP DT NN RB , NNP VBD TO VB DT NNS IN PRP$ JJ NN WRB NNP NNP , NNP CC NNP VBD DT $ CD CD NN TO VB CD NN IN NNP .
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Mr. Guber and Mr. Peters planned to run the nearly dormant MGM studio , and the two even tried to interest Warner Bros . ' President Terry Semel in becoming a partner after he advised them on the deal . NNP NNP CC NNP NNP VBD TO VB DT RB JJ NNP NN , CC DT CD RB VBD TO VB NNP NNP . '' NNP NNP NNP IN VBG DT NN IN PRP VBD PRP IN DT NN .
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But the MGM plan collapsed just two weeks later . CC DT NNP NN VBD RB CD NNS RB .
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Mr. Guber and Mr. Peters say they got a look at the books and balked at the price . NNP NNP CC NNP NNP VBP PRP VBD DT NN IN DT NNS CC VBD IN DT NN .
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Their relationship with Mr. Sugarman soured shortly thereafter . PRP$ NN IN NNP NNP VBD RB RB .
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Last May , he sold his 24 % stake in Barris to a passive Australian investor and Barris was renamed Guber Peters Entertainment Co . NNP NNP , PRP VBD PRP$ CD NN NN IN NNP TO DT JJ JJ NN CC NNP VBD VBN NNP NNP NNP NNP .
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Meanwhile , Mr. Guber and Mr. Peters had agreed to extend their Warner agreement with the new five-year exclusive contract . RB , NNP NNP CC NNP NNP VBD VBN TO VB PRP$ NNP NN IN DT JJ JJ JJ NN .
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The new deal was considered the most generous of its kind , both financially and in terms of creative freedom . DT JJ NN VBD VBN DT RBS JJ IN PRP$ NN , DT RB CC IN NNS IN JJ NN .
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But it paled by comparison to what Sony was to offer last month : the chance , at last , to run a major studio , about $ 50 million in deferred compensation , up to 10 % of Columbia 's future cash flow , 8 % of the future appreciation of Columbia 's market value , and annual salaries of $ 2.7 million for each . CC PRP VBN IN NN TO WP NNP VBD TO VB JJ NN : DT NN , IN JJ , TO VB DT JJ NN , RB $ CD CD IN VBN NN , IN TO CD NN IN NNP POS NN NN NN , CD NN IN DT NN NN IN NNP POS NN NN , CC JJ NNS IN $ CD CD IN DT .
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The producers ' 28 % share of publicly held Guber Peters would net them an additional $ 50 million . DT NNS POS CD NN NN IN RB VBN NNP NNP MD VB PRP DT JJ $ CD CD .
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Sony also agreed to indemnify the producers against any liability to Warner . NNP RB VBD TO VB DT NNS IN DT NN TO NNP .
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Sony is paying a hefty price for a company that had revenue of only $ 42 million last year . NNP VBZ VBG DT JJ NN IN DT NN WDT VBD NN IN RB $ CD CD JJ NN .
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And earnings have been erratic . CC NNS NN VBN JJ .
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In the the latest quarter , thanks in part to `` Batman , '' Guber Peters earned $ 5.8 million , or 50 cents a share , compared to a loss of $ 6.8 million , or 62 cents a share , in last year 's quarter . IN DT DT JJS NN , VBZ IN NN TO `` NNP , '' NNP NNP VBD $ CD CD , CC CD NNS DT NN , VBN TO DT NN IN $ CD CD , CC CD NNS DT NN , IN JJ NN POS NN .
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Guber Peters stock , which traded as low as $ 6 a share last year , closed yesterday at $ 16.625 . NNP NNP NN , WDT VBD RB JJ IN $ CD DT NN JJ NN , VBD NN IN $ CD .
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The two sides now are accusing each other of lying . DT CD NNS RB VBP VBG DT NN IN VBG .
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Mr. Guber and Mr. Peters claim they have an oral agreement with Warner executives that allows them to terminate their contract should the opportunity to run a major studio arise . NNP NNP CC NNP NNP NN PRP VBP DT JJ NN IN NNP NNS WDT VBZ PRP TO VB PRP$ NN MD DT NN TO VB DT JJ NN VB .
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But in affidavits filed yesterday in the Los Angeles court , Mr. Ross , Warner Bros. Chairman Robert Daly and President Semel deny that such an oral agreement was ever made . CC IN NNS VBD NN IN DT NNP NNP NN , NNP NNP , NNP NNP NNP NNP NNP CC NNP NNP VB IN JJ DT JJ NN VBD RB VBN .
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Warner , in its court filings , calls it `` a piece of fiction created for this litigation . '' NNP , IN PRP$ NN NNS , VBZ PRP `` DT NN IN NN VBN IN DT NN . ''
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Mr. Daly in his affidavit acknowledges that Warner agreed to release the producers last year to take over MGM but says that situation was altogether different . NNP NNP IN PRP$ NN VBZ IN NNP VBD TO VB DT NNS JJ NN TO VB IN NNP CC VBZ DT NN VBD RB JJ .
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For one thing , according to Mr. Daly , the producers requested a release in advance . IN CD NN , VBG TO NNP NNP , DT NNS VBD DT NN IN NN .
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Moreover , the old contract was about to expire , and the lineup of Guber Peters pictures for Warner was n't as strong as it is now . RB , DT JJ NN VBD IN TO VB , CC DT NN IN NNP NNP NNS IN NNP VBD RB RB JJ IN PRP VBZ RB .
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Warner itself was in negotiations with MGM over certain movie and other rights , and it was `` in Warner 's interest to accommodate MGM\/UA , Guber and Peters by permitting them to become MGM executives , '' Mr. Daly said in his affidavit . NNP PRP VBD IN NNS IN NNP IN JJ NN CC JJ NNS , CC PRP VBD `` IN NNP POS NN TO VB NNP , NNP CC NNP IN VBG PRP TO VB NNP NNS , '' NNP NNP VBD IN PRP$ NN .
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Warner obviously does n't think that it is in its own interests to let Mr. Guber and Mr. Peters go off to Columbia . NNP RB VBZ RB VB IN PRP VBZ IN PRP$ JJ NNS TO VB NNP NNP CC NNP NNP VB IN TO NNP .
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At the very least , Mr. Ross clearly sees an opportunity to use the two men to get a pound of flesh from Sony . IN DT RB JJS , NNP NNP RB VBZ DT NN TO VB DT CD NNS TO VB DT NN IN NN IN NNP .
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During settlement talks , for example , Warner demanded such things as cable TV rights to Columbia movies and Columbia 's interest in the studio it jointly owns with Warner , according to executives involved in the talks . IN NN NNS , IN NN , NNP VBD JJ NNS IN NN NN NNS TO NNP NNS CC NNP POS NN IN DT NN PRP RB VBZ IN NNP , VBG TO NNS VBN IN DT NNS .
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In any settlement , Warner is almost certain to demand rights to most of the 50 or so projects Mr. Guber and Mr. Peters have locked up for the next few years , notably sequels to `` Batman . '' IN DT NN , NNP VBZ RB JJ TO VB NNS TO RBS IN DT CD CC RB VBZ NNP NNP CC NNP NNP VBP VBN IN IN DT JJ JJ NNS , RB NNS TO `` NNP . ''
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Mr. Guber and Mr. Peters refuse to concede that they may have made a tactical error in accepting the Sony offer before taking it up with Warner . NNP NNP CC NNP NNP VB TO VB IN PRP MD VB VBN DT JJ NN IN VBG DT NNP NN IN VBG PRP IN IN NNP .
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And they say there are plenty of precedents in Hollywood for letting people out of contracts . CC PRP VBP EX VBP NN IN NNS IN NNP IN VBG NNS IN IN NNS .
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The last time Columbia Pictures was looking for a studio chief , they note , Warner released producer David Puttnam from his contract , then took him back after he was subsequently fired by his bosses at Columbia . DT JJ NN NNP NNPS VBD VBG IN DT NN NN , PRP VBP , NNP VBD NN NNP NNP IN PRP$ NN , RB VBD PRP RB IN PRP VBD RB VBN IN PRP$ NNS IN NNP .
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In his affidavit filed yesterday , Warner 's Mr. Ross indicated he is n't buying any such argument : `` If Sony succeeds here , no written contract in Hollywood will be worth the paper it 's written on . IN PRP$ NN VBD NN , NNP POS NNP NNP VBD PRP VBZ RB VBG DT JJ NN : `` IN NNP VBZ RB , DT VBN NN IN NNP MD VB JJ DT NN PRP VBZ VBN RB .
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THE SALES PITCH could n't sound better . DT NNP NNP MD RB VB JJR .
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First , there 's the name : `` asset-backed securities . '' RB , EX VBZ DT NN : `` JJ NNS . ''
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Better than all those offers you get to buy securities backed by nothing . NNP IN PDT DT VBZ PRP VBP TO VB NNS VBN IN NN .
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And there 's more . CC EX VBZ JJR .
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The assets backing the securities come from some of the country 's biggest -- and most secure -- institutions . DT NNS VBG DT NNS VBP IN DT IN DT NN POS JJS : CC RBS VB : NNS .
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Most earn high ratings from credit agencies . JJS VB JJ NNS IN NN NNS .
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Their yields are higher than those of U.S. Treasury issues . PRP$ NNS VBP JJR IN DT IN NNP NNP NNS .
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And the booming market has already attracted many of the nation 's biggest institutional investors . CC DT JJ NN VBZ RB VBN NN IN DT NN POS JJS JJ NNS .
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Ready to jump ? JJ TO VB .
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Well , think twice . UH , VBP RB .
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The concept may be simple : Take a bunch of loans , tie them up in one neat package , and sell pieces of the package to investors . DT NN MD VB JJ : VB DT NN IN NNS , NN PRP IN IN CD JJ NN , CC VB NNS IN DT NN TO NNS .
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But the simplicity may be misleading . CC DT NN MD VB JJ .
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Skeptics say the slightly higher returns are n't enough to compensate for the extra risk . NNS VBP DT RB JJR NNS VBP RB RB TO VB IN DT JJ NN .
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They warn that asset-backed securities are only as good as the assets and credit backing that support them -- and those are hard to evaluate . PRP VBP IN JJ NNS VBP RB RB JJ IN DT NNS CC NN VBG DT NN PRP : CC DT VBP JJ TO VB .
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Moreover , the securities were introduced only about 4 1\/2 years ago ; the biggest unknown is how they will fare in a recession . RB , DT NNS VBD VBN RB IN CD CD NNS RB : DT JJS NN VBZ WRB PRP MD VB IN DT NN .
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`` A lot of this stuff really is in untested waters , '' says Owen Carney , director of the investment securities division of the U.S. comptroller of the currency . `` DT NN IN DT NN RB VBZ IN JJ NNS , '' VBZ NNP NNP , NN IN DT NN NNS NN IN DT NNP NN IN DT NN .
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`` We do n't know how this whole market will work in a serious economic downturn . '' `` PRP VBP RB VB WRB DT JJ NN MD VB IN DT JJ JJ NN . ''
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Such concerns , however , have n't stopped asset-backed securities from becoming one of Wall Street 's hottest new products . JJ NNS , RB , VBP RB VBN JJ NNS IN VBG CD IN NNP NNP POS JJS JJ NNS .
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Since the spring of 1985 , financial alchemists have transformed a wide variety of debt into these new securities . IN DT NN IN CD , JJ NNS VBP VBN DT JJ NN IN NN IN DT JJ NNS .
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They have sold issues backed by car loans , boat loans and recreational-vehicle loans . PRP VBP VBN NNS VBN IN NN NNS , NN NNS CC NN NNS .
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They have offered bundles of homeequity loans , as well as packages of loans used to buy vacation time-shares . PRP VBP VBN NNS IN NN NNS , RB RB IN NNS IN NNS VBN TO VB NN NNS .
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Last year , there was an issue of `` death-backed bonds '' -- securities backed by loans to life-insurance policyholders . JJ NN , EX VBD DT NN IN `` JJ NNS '' : NNS VBN IN NNS TO NN NNS .
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Some predict there will be `` Third World bonds , '' backed by loans to Brazil , Argentina and other debt-ridden nations . DT VBP EX MD VB `` NNP NNP NNS , '' VBN IN NNS TO NNP , NNP CC JJ JJ NNS .
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And the biggest volume this year has been on securities backed by credit-card receivables , sometimes known as `` plastic bonds . '' CC DT JJS NN DT NN VBZ VBN IN NNS VBN IN NN NN , RB VBN IN `` NN NNS . ''
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`` This is the heyday of debt , '' says James Grant , editor of Grant 's Interest Rate Observer , a newsletter . `` DT VBZ DT NN IN NN , '' VBZ NNP NNP , NN IN NNP POS NNP NNP NNP , DT NN .
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`` Before the sun sets on the '80s , it seems nothing will be left unhocked . '' `` IN DT NN NNS IN DT NNS , PRP VBZ NN MD VB VBN VBN . ''
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The result is a $ 45 billion market , according to Securities Data Co . DT NN VBZ DT $ CD CD NN , VBG TO NNP NNP NNP .
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That includes more than $ 9.5 billion issued through August of this year , up sharply from $ 6.5 billion in the comparable 1988 period -- and more than in all of 1987 . DT VBZ JJR IN $ CD CD VBN IN NNP IN DT NN , IN RB IN $ CD CD IN DT JJ CD NN : CC JJR IN IN DT IN CD .
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Most issues have been sold to professional money managers , pension funds , bank trust departments and other institutions . JJS NNS VBP VBN VBN TO JJ NN NNS , NN NNS , NN NN NNS CC JJ NNS .
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But wealthy individuals also have been jumping in , and lately brokers have been pushing smaller investors into the asset-backed market . CC JJ NNS RB VBP VBN VBG IN , CC RB NNS VBP VBN VBG JJR NNS IN DT JJ NN .
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The entry fee is affordable : Issues typically are sold in minimum denominations of $ 1,000 . DT NN NN VBZ JJ : NNS RB VBP VBN IN JJ NNS IN $ CD .
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`` We expect additional offerings '' of asset-backed securities targeted toward individual investors , says Bill Addiss , a senior vice president at Shearson Lehman Hutton Inc . `` PRP VBP JJ NNS '' IN JJ NNS VBN IN JJ NNS , VBZ NNP NNP , DT JJ NN NN IN NNP NNP NNP NNP .
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The process typically begins when an institution , such as Citibank or Sears , Roebuck & Co. , takes a pool of credit-card or other receivables and sells them to a specially created trust . DT NN RB VBZ WRB DT NN , JJ IN NNP CC NNP , NNP CC NNP , VBZ DT NN IN NN CC JJ NN CC VBZ PRP TO DT RB VBN NN .
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The trust then issues securities -- generally due in five years or less -- that are underwritten by Wall Street brokerage firms and offered to investors . DT NN RB VBZ NNS : RB JJ IN CD NNS CC JJR : WDT VBP VBN IN NNP NNP NN NNS CC VBN TO NNS .
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Issues typically come with `` credit enhancements , '' such as a bank letter of credit , and thus have received high credit ratings . NNS RB VBP IN `` NN NNS , '' JJ IN DT NN NN IN NN , CC RB VBP VBN JJ NN NNS .
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Enthusiasts say the booming market has opened up a valuable new source of funds to issuers , while providing a valuable new investment for individuals and institutions . NNS VBP DT JJ NN VBZ VBN IN DT JJ JJ NN IN NNS TO NNS , IN VBG DT JJ JJ NN IN NNS CC NNS .
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Asset-backed securities `` are an attractive investment compared to bank certificates of deposit or other corporate bonds , '' says Craig J. Goldberg , managing director and head of the asset-backed securities group at Merrill Lynch Capital Markets . JJ NNS `` VBP DT JJ NN VBN TO VB NNS IN NN CC JJ JJ NNS , '' VBZ NNP NNP NNP , VBG NN CC NN IN DT JJ NNS VBP IN NNP NNP NNP NNPS .
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But skeptics question whether asset-backed bonds offer sufficient rewards to compensate for the extra risks . CC NNS VBP IN JJ NNS VBP JJ NNS TO VB IN DT JJ NNS .
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Consider a $ 500 million offering of 9 % securities issued last spring and backed by Citibank credit-card receivables . VB DT $ CD CD NN IN CD NN NNS VBD JJ NN CC VBN IN NNP NN NN .
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The triple-A-rated issue offered a yield of only about 0.5 percentage point above four-year Treasury issues . DT JJ NN VBD DT NN IN RB IN CD NN NN IN JJ NNP NNS .
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On a $ 10,000 investment , that 's a difference of only $ 50 a year . IN DT $ CD NN , DT VBZ DT NN IN RB $ CD DT NN .
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That kind of spread can be critical for money managers who buy bonds in large quantities and whose livelihood depends on outperforming the money manager across the street . DT NN IN NN MD VB JJ IN NN NNS WP VBP NNS IN JJ NNS CC WP$ NN VBZ IN VBG DT NN NN IN DT NN .
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But for individuals who buy much smaller amounts and care less about relative performance than in preserving what they have , that margin is meaningless . CC IN NNS WP VBP RB JJR NNS CC NN JJR IN JJ NN IN IN VBG WP PRP VBP , DT NN VBZ JJ .
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`` If you 're in the bond business playing the relative-performance derby , then even an extra 25 basis points -LRB- 0.25 percentage point -RRB- becomes an important consideration on a career basis , '' says Mr. Grant . `` IN PRP VBP IN DT NN NN VBG DT JJ NN , RB RB DT JJ CD NN NNS ( CD NN NN ) VBZ DT JJ NN IN DT NN NN , '' VBZ NNP NNP .
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`` But if you 're an individual investing money and trying to get it back again , then that is n't of overwhelming importance . '' `` CC IN PRP VBP DT JJ NN NN CC VBG TO VB PRP RB RB , RB WDT VBZ RB IN JJ NN . ''
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Moreover , the interest on asset-backed securities is fully taxable , while interest on Treasury issues is tax-free at the state and local level . RB , DT NN IN JJ NNS VBZ RB JJ , IN NN IN NNP NNS VBZ JJ IN DT NN CC JJ NN .
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That 's why some investment managers , such as Alex Powers , a vice president of Chase Manhattan Bank 's private banking division , do n't recommend most asset-backed issues for individuals in high-tax states , such as New York or California . DT VBZ WRB DT NN NNS , JJ IN NNP NNP , DT NN NN IN NNP NNP NNP POS JJ NN NN , VBP RB VB RBS JJ NNS IN NNS IN JJ NNS , JJ IN NNP NNP CC NNP .
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But Mr. Powers has purchased asset-backed issues for individuals with tax-deferred accounts , such as retirement plans . CC NNP NNP VBZ VBN JJ NNS IN NNS IN JJ NNS , JJ IN NN NNS .
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He points out that institutions buying asset-backed issues in large quantities can earn higher spreads over Treasurys than individuals buying smaller amounts . PRP VBZ RP IN NNS VBG JJ NNS IN JJ NNS MD VB JJR VBZ IN NNPS IN NNS VBG JJR NNS .
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Another concern is liquidity , or how easily a security can be converted into cash . DT NN VBZ NN , CC WRB RB DT NN MD VB VBN IN NN .
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The secondary , or resale , market for asset-backed securities is relatively new and much less active than for Treasury issues . DT JJ , CC NN , NN IN JJ NNS VBZ RB JJ CC RB RBR JJ IN IN NNP NNS .
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That could make it tricky for investors who need to sell their holdings quickly before the securities mature . DT MD VB PRP JJ IN NNS WP VBP TO VB PRP$ NNS RB IN DT NNS JJ .
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That 's particularly true , analysts say , for certain of the securities , such as those backed by time-share loans . DT VBZ RB JJ , NNS VBP , IN JJ IN DT NNS , JJ IN DT VBN IN JJ NNS .
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`` You could see massive gyrations here because it 's such a thinly traded market , '' says Jonathan S. Paris , a vice president of European Investors Inc. , a New York investment-management firm . `` PRP MD VB JJ NNS RB IN PRP VBZ JJ DT RB VBN NN , '' VBZ NNP NNP NNP , DT NN NN IN JJ NNP NNP , DT NNP NNP NN NN .
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In addition , an investor who wants to know the daily value of Treasury bonds , or corporate bonds traded on the New York Stock Exchange , can simply check newspaper listings . IN NN , DT NN WP VBZ TO VB DT JJ NN IN NNP NNS , CC JJ NNS VBN IN DT NNP NNP NNP NNP , MD RB VB NN NNS .
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There are n't any such listings for asset-backed securities . EX VBP RB DT JJ NNS IN JJ NNS .
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Evaluating asset-backed securities poses another problem . VBG JJ NNS VBZ DT NN .
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Investors , for instance , may mistakenly assume that the bank or company that originally held the assets is guaranteeing the securities . NNS , IN NN , MD RB VB IN DT NN CC NN IN RB VBN DT NNS VBZ VBG DT NNS .
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It is n't . PRP VBZ RB .
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The front cover of the prospectus for the Citibank credit-card receivables offering points out in bold capital letters that the certificates represent an interest only in the specially created trust and `` do not represent interests in or obligations of the banks , Citibank N.A. , Citicorp or any affiliate thereof . '' DT NN NN IN DT NN IN DT NNP NN NN NN NNS IN IN JJ NN NNS IN DT NNS VBP DT NN RB IN DT RB VBN NN CC `` VBP RB VB NNS IN CC NNS IN DT NNS , NNP NNP , NNP CC DT NN RB . ''
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In other words , if there 's a problem , do n't expect Citibank to come to the rescue . IN JJ NNS , IN EX VBZ DT NN , VBP RB VB NNP TO VB TO DT NN .
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The prospectus also notes that the securities are not guaranteed by any government agency . DT NN RB VBZ IN DT NNS VBP RB VBN IN DT NN NN .
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That means investors have to focus on the quality of the debt that lies beneath the securities , as well as on the credit enhancement for the issue and the credit ratings the issue has received . DT VBZ NNS VBP TO VB IN DT NN IN DT NN WDT VBZ IN DT NNS , RB RB IN IN DT NN NN IN DT NN CC DT NN NNS DT NN VBZ VBN .
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That also is n't easy . DT RB VBZ RB JJ .
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Take the `` credit enhancements , '' which typically include a bank letter of credit or insurance from a bond-insurance company . VB DT `` NN NNS , '' WDT RB VBP DT NN NN IN NN CC NN IN DT JJ NN .
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The letter of credit typically is not offered by the bank selling the assets to back the securities . DT NN IN NN RB VBZ RB VBN IN DT NN VBG DT NNS TO RB DT NNS .
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Nor does it cover the entire portfolio . CC VBZ PRP VBP DT JJ NN .
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Details of credit enhancements vary widely from issue to issue . NNS IN NN NNS VBP RB IN NN TO VB .
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Still , they play a crucial role in winning top ratings for most asset-backed issues -- which in turn is why the yield above Treasurys is so slim . RB , PRP VBP DT JJ NN IN VBG JJ NNS IN RBS JJ NNS : WDT IN NN VBZ WRB DT NN IN NNPS VBZ RB JJ .
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But skeptics ask why you should bother buying this stuff when you can get only slightly lower yields on government-guaranteed paper . CC NNS VBP WRB PRP MD VB VBG DT NN WRB PRP MD VB RB RB JJR NNS IN JJ NN .
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When you buy an asset-backed issue , you take the risk that a bank or an insurer could run into unexpected difficulties . WRB PRP VBP DT JJ NN , PRP VBP DT NN IN DT NN CC DT NN MD VB IN JJ NNS .
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If a bank 's credit rating was lowered because of , say , its loans to Third World nations , that could also affect the ratings , liquidity and prices of the asset-backed issues that the bank supports . IN DT NN POS NN NN VBD VBN IN IN , VBP , PRP$ NNS TO NNP NNP NNS , WDT MD RB VB DT NNS , NN CC NNS IN DT JJ NNS IN DT NN NNS .
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Underwriters insist these issues are constructed to withstand extremely tough economic conditions . NNS VBP DT NNS VBP VBN TO VB RB JJ JJ NNS .
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But despite the credit enhancements , despite the high ratings , some money managers still worry that a recession could wreak havoc on the underlying assets . CC IN DT NN NNS , IN DT JJ NNS , DT NN NNS RB VBP IN DT NN MD VB NN IN DT VBG NNS .
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At a time when Americans are leveraged to their eyeballs , asset-backed investors may be taking a heady gamble that consumers will be able to repay loans in hard times . IN DT NN WRB NNPS VBP JJ TO PRP$ NNS , JJ NNS MD VB VBG DT JJ NN IN NNS MD VB JJ TO VB NNS IN JJ NNS .
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At the very least , a recession would prompt investors to buy the highest-quality bonds they can find -- that is , Treasurys . IN DT RB JJS , DT NN MD VB NNS TO VB DT JJ NNS PRP MD VB : DT VBZ , NNPS .
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That could widen the yield spread between Treasurys and asset-backed securities , as well as make it tougher to unload the latter . DT MD VB DT NN NN IN NNPS CC JJ NNS , RB RB IN NN PRP JJR TO VB DT NN .
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But it could be much worse . CC PRP MD VB RB JJR .
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Some analysts are especially wary of credit-card issues . DT NNS VBP RB JJ IN NN NNS .
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For one thing , credit-card loans are unsecured . IN CD NN , NN NNS VBP JJ .
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In addition , they fear that banks have been overeager to issue cards to the public -- giving cards to too many big spenders who will default during a recession . IN NN , PRP VBP IN NNS VBP VBN JJ TO VB NNS TO DT JJ : VBG NNS TO RB JJ JJ NNS WP MD VB IN DT NN .
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`` A day of reckoning is coming where we think the market will place a high premium on the highest-quality debt issues , and therefore we think the best debt investment is U.S. government bonds , '' says Craig Corcoran of Davis\/Zweig Futures Inc. , an investment advisory firm . `` DT NN IN NN VBZ VBG WRB PRP VBP DT NN MD VB DT JJ NN IN DT JJ NN NNS , CC RB PRP VBP DT JJS NN NN VBZ NNP NN NNS , '' VBZ NNP NNP IN NNP NNP NNP , DT NN JJ NN .
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What about triple-A-rated asset-backed issues ? WP IN JJ JJ NNS .
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`` Nope , we still say to stick with Treasurys , '' Mr. Corcoran replies . `` UH , PRP RB VBP TO VB IN NNPS , '' NNP NNP VBZ .
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Ratings , he notes , `` are subject to change . '' NNS , PRP VBZ , `` VBP NN TO VB . ''
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All this makes asset-backed securities seem too risky for many people . DT DT VBZ JJ NNS VBP RB JJ IN JJ NNS .
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And it reminds Raymond F. DeVoe Jr. , a market strategist at Legg Mason Wood Walker Inc. , of what he calls `` DeVoe 's Unprovable but Highly Probable Theory No. 1 : CC PRP VBZ NNP NNP NNP NNP , DT NN NN IN NNP NNP NNP NNP NNP , IN WP PRP VBZ `` NNP POS JJ CC RB NNP NNP NN CD :
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`` More money has been lost reaching for yield than in all the stock speculations , scams and frauds of all time . '' `` JJR NN VBZ VBN VBN VBG IN NN IN IN PDT DT NN NNS , NNS CC NNS IN DT NN . ''
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Mr. Herman is a staff reporter in The Wall Street Journal 's New York bureau . NNP NNP VBZ DT NN NN IN DT NNP NNP NNP POS NNP NNP NN .
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Volume of asset-backed securities issued annually NN IN JJ NNS VBN RB
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\* Principal amount SYM NNP NN
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\*\* As of August 30 SYM IN IN NNP CD
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\* Principal amount SYM NNP NN
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Source : Securities Data Co . NN : NNP NNP NNP .
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IF YOU FORCE financial planners to sum up their most important advice in a single sentence , it would probably be a one-word sentence : Diversify . IN PRP VBP JJ NNS TO VB IN PRP$ RBS JJ NN IN DT JJ NN , PRP MD RB VB DT JJ NN : VB .
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Judging by a poll of Wall Street Journal readers conducted this summer by Erdos & Morgan Inc. , serious investors have taken that advice to heart . VBG IN DT NN IN NNP NNP NNP NNS VBD DT NN IN NNP CC NNP NNP , JJ NNS VBP VBN DT NN TO VB .
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Nearly 1,000 investors responded to the Journal 's poll , providing an in-depth look at their portfolios . RB CD NNS VBD TO DT NNP POS NN , VBG DT JJ NN IN PRP$ NNS .
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Those portfolios are remarkably diversified . DT NNS VBP RB JJ .
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By spreading their wealth among several investment alternatives , the respondents have protected themselves against squalls in any one area , be it stocks , bonds or real estate . IN VBG PRP$ NN IN JJ NN NNS , DT NNS VBP VBN PRP IN NNS IN DT CD NN , VB PRP VBZ , NNS CC JJ NN .
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For example , about 88 % of Journal readers owned stock -LRB- down slightly from 91 % in a similar poll last year -RRB- . IN NN , IN CD NN IN NNP NNS VBD NN ( RB RB IN CD NN IN DT JJ NN JJ NN ) .
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But only 17.5 % said they had more than half their money in the stock market . CC RB CD NN VBD PRP VBD JJR IN VB PRP$ NN IN DT NN NN .
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Similarly , 57 % of respondents own shares in a money-market mutual fund , and 33 % own municipal bonds . RB , CD NN IN NNS JJ NNS IN DT JJ JJ NN , CC CD NN JJ JJ NNS .
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But only 6 % to 7 % of the investors were committing more than half their funds to either of those alternatives . CC RB CD NN TO CD NN IN DT NNS VBD VBG JJR IN VB PRP$ NNS TO DT IN DT NNS .
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The poll , conducted Aug. 7-28 , also provides a glimpse into the thinking of serious investors on a variety of other topics . DT NN , VBN NNP JJ , RB VBZ DT NN IN DT NN IN JJ NNS IN DT NN IN JJ NNS .
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It found them in a cautious , but not downbeat , mood . PRP VBD PRP IN DT JJ , CC RB JJ , NN .
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Of 1,500 people sent a questionnaire , 951 replied . IN CD NNS VBD DT NN , CD VBD .
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The response rate , more than 63 % , allows the results to be interpreted with a high degree of confidence . DT NN NN , JJR IN CD NN , VBZ DT NNS TO VB VBN IN DT JJ NN IN NN .
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The results ca n't be extrapolated to all investors , though . DT NNS MD RB VB VBN TO DT NNS , RB .
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Journal readers are relatively affluent , with a median household income of between $ 75,000 and $ 99,000 . NN NNS VBP RB JJ , IN DT JJ NN NN IN IN $ CD CC $ CD .
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Nearly half of the respondents -LRB- 47 % -RRB- said their investment portfolio was worth $ 250,000 or more , and 17 % said it was worth $ 1 million or more . RB NN IN DT NNS ( CD NN ) VBD PRP$ NN NN VBD JJ $ CD CC JJR , CC CD NN VBD PRP VBD JJ $ CD CD CC JJR .
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The respondents were mildly optimistic about the economy and investment markets , but their collective judgments were a notch more sober than they were a year ago . DT NNS VBD RB JJ IN DT NN CC NN NNS , CC PRP$ JJ NNS VBD DT NN RBR JJ IN PRP VBD DT NN RB .
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For example , 12 % of this year 's respondents said they expect a recession within 12 months . IN NN , CD NN IN DT NN POS NNS VBD PRP VBP DT NN IN CD NNS .
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Last year , only 8 % were expecting a recession . JJ NN , RB CD NN VBD VBG DT NN .
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An additional 56 % of this year 's respondents expect the economy to slow down during the next 12 months . DT JJ CD NN IN DT NN POS NNS VBP DT NN TO VB RB IN DT JJ CD NNS .
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Only 42 % of last year 's respondents anticipated slowing growth . RB CD NN IN JJ NN POS NNS VBN VBG NN .
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Apparently , the respondents do n't think that an economic slowdown would harm the major investment markets very much . RB , DT NNS VBP RB VB IN DT JJ NN MD VB DT JJ NN NNS RB RB .
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A slim majority -LRB- 51 % -RRB- think stock prices will be higher in August 1990 than they were in August 1989 . DT JJ NN ( CD NN ) VBP NN NNS MD VB JJR IN NNP CD IN PRP VBD IN NNP CD .
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Their verdict on real estate is almost the same . PRP$ NN IN JJ NN VBZ RB DT JJ .
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Some 50 % expect real estate in their local area to increase in value over the next 12 months . DT CD NN VBP JJ NN IN PRP$ JJ NN TO VB IN NN IN DT JJ CD NNS .
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By contrast , only 32 % expect an increase in the price of gold . IN NN , RB CD NN VBP DT NN IN DT NN IN NN .
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Since gold tends to soar when inflation is high , that finding suggests that people believe inflation remains under control . IN NN VBZ TO VB WRB NN VBZ JJ , IN VBG VBZ IN NNS VBP NN VBZ IN NN .
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Even though only 12 % actually predicted a recession , many respondents were taking a better-safe-than sorry investment stance . RB IN RB CD NN RB VBD DT NN , JJ NNS VBD VBG DT JJ JJ NN NN .
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Nearly a third said they have made some portfolio changes to anticipate a possible recession . RB DT JJ VBD PRP VBP VBN DT NN NNS TO VB DT JJ NN .
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For the most part , the changes were `` slight . '' IN DT RBS NN , DT NNS VBD `` JJ . ''
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The two-thirds who have n't tried to make their portfolios more recession-resistant were split about evenly between investors who `` do n't believe in trying to predict the markets '' -LRB- about 31 % -RRB- and investors who `` do n't expect a recession '' -LRB- about 15 % -RRB- or are `` unsure if and when a recession might come '' -LRB- about 22 % -RRB- . DT NNS WP VBP RB VBN TO VB PRP$ NNS RBR JJ VBD NN IN RB IN NNS WP `` VBP RB VB IN VBG TO VB DT NNS '' ( IN CD NN ) CC NNS WP `` VBP RB VB DT NN '' ( IN CD NN ) CC VBP `` JJ IN CC WRB DT NN MD VB '' ( IN CD NN ) .
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A buy-and-hold approach to stocks continues to be the rule among respondents . DT JJ NN TO NNS VBZ TO VB DT NN IN NNS .
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Most own two to 10 stocks , and buy or sell no more than three times a year . JJS JJ CD TO CD NNS , CC VB CC VB DT JJR IN CD VBZ DT NN .
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Some 71 % had bought some stock in the past year ; only 57 % had sold any . DT CD NN VBD VBN DT NN IN DT JJ NN : RB CD NN VBD VBN DT .
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But the lurking shadow of 1987 's stock-market crash still seems dark . CC DT VBG NN IN CD POS NN NN RB VBZ JJ .
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About 33 % considered another crash `` likely , '' while about 63 % said one is `` unlikely . '' IN CD NN VBD DT NN `` JJ , '' IN IN CD NN VBD CD VBZ `` JJ . ''
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Those percentages hardly changed from the previous year 's poll . DT NNS RB VBN IN DT JJ NN POS NN .
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And the respondents ' commitment to the stock market remains somewhat lighter than usual . CC DT NNS POS NN TO DT NN NN VBZ RB JJR IN JJ .
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About 60 % of them said they would `` ordinarily '' have at least 25 % of their money in stocks . IN CD NN IN PRP VBD PRP MD `` RB '' VBP IN JJS CD NN IN PRP$ NN IN NNS .
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But as of August , only 50 % actually had stock-market investments of that size . CC IN IN NNP , RB CD NN RB VBD NN NNS IN DT NN .
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Most stock-market indexes were hitting all-time highs at around the time of the poll . JJS NN NNS VBD VBG JJ NNS IN IN DT NN IN DT NN .
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But it appears that many Journal readers were taking that news as a sign to be cautious , rather than a signal to jump on the bandwagon . CC PRP VBZ IN JJ NNP NNS VBD VBG DT NN IN DT NN TO VB JJ , RB IN DT NN TO VB IN DT NN .
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Mr. Dorfman covers investing issues from The Wall Street Journal 's New York bureau . NNP NNP VBZ VBG NNS IN DT NNP NNP NNP POS NNP NNP NN .
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Canadian steel ingot production totaled 276,334 metric tons in the week ended Oct. 14 , down 5.3 % from the preceding week 's total of 291,890 tons , Statistics Canada , a federal agency , said . JJ NN NN NN VBD CD JJ NNS IN DT NN VBN NNP CD , RB CD NN IN DT VBG NN POS NN IN CD NNS , NNP NNP , DT JJ NN , VBD .
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The week 's total was down 7.1 % from 297,446 tons a year earlier . DT NN POS NN VBD RB CD NN IN CD NNS DT NN RBR .
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A metric ton is equal to 2,204.62 pounds . DT JJ NN VBZ JJ TO CD NNS .
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The cumulative total in 1989 was 12,283,217 tons , up 7.5 % from 11,429,243 tons a year earlier . DT JJ NN IN CD VBD CD NNS , IN CD NN IN CD NNS DT NN RBR .
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Health Care Property Investors Inc. said it acquired three long-term care facilities and one assisted-living facility in a purchase-and-lease transaction valued at $ 15 million . NNP NNP NNP NNP NNP VBD PRP VBD CD JJ NN NNS CC CD JJ NN IN DT JJ NN VBN IN $ CD CD .
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The real estate investment trust said that it leased the three Florida facilities to National Health Care Affiliates Inc. of Buffalo , N.Y . DT JJ NN NN NN VBD IN PRP VBD DT CD NNP NNS TO NNP NNP NNP NNP NNP IN NNP , NNP .
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Health Care Property holds an interest in 139 facilities in 30 states . NNP NNP NNP VBZ DT NN IN CD NNS IN CD NNS .
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Moody 's Investors Service said it lowered its rating on about $ 75 million of this Chatsworth , Calif. , concern 's convertible subordinated debentures , due 2012 , to Caa from B2 . NNP POS NNP NNP VBD PRP VBD PRP$ NN IN RB $ CD CD IN DT NNP , NNP , NN POS JJ VBN NNS , JJ CD , TO NNP IN NN .
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It said the reduction reflects impaired business prospects and reduced financial flexibility caused by continuing losses at the maker of Winchester disk drives . PRP VBD DT NN VBZ VBN NN NNS CC VBN JJ NN VBN IN VBG NNS IN DT NN IN NNP NN NNS .
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VALLEY National Corp. -- NNP NNP NNP :
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Moody 's Investors Service Inc. said it lowered its rating on about $ 400 million of this bank holding company 's senior debt to B2 from Ba3 . NNP POS NNP NNP NNP VBD PRP VBD PRP$ NN IN RB $ CD CD IN DT NN VBG NN POS JJ NN TO NN IN NN .
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Moody 's said it expects Valley National , of Phoenix , Ariz. , to make substantial further provisions against its real-estate portfolio , and that it continues to suffer from the high cost of carrying nonperforming assets , and from high loan-loss provisions . NNP POS VBD PRP VBZ NNP NNP , IN NNP , NNP , TO VB JJ JJ NNS IN PRP$ NN NN , CC IN PRP VBZ TO VB IN DT JJ NN IN VBG JJ NNS , CC IN JJ NN NNS .
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Electronic theft by foreign and industrial spies and disgruntled employees is costing U.S. companies billions and eroding their international competitive advantage . JJ NN IN JJ CC JJ NNS CC JJ NNS VBZ VBG NNP NNS NNS CC VBG PRP$ JJ JJ NN .
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That was the message delivered by government and private security experts at an all-day conference on corporate electronic espionage . DT VBD DT NN VBN IN NN CC JJ NN NNS IN DT JJ NN IN JJ JJ NN .
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`` Hostile and even friendly nations routinely steal information from U.S. companies and share it with their own companies , '' said Noel D. Matchett , a former staffer at the federal National Security Agency and now president of Information Security Inc. , Silver Spring , Md . `` JJ CC RB JJ NNS RB VBP NN IN NNP NNS CC NN PRP IN PRP$ JJ NNS , '' VBD NNP NNP NNP , DT JJ NN IN DT JJ NNP NNP NNP CC JJ NN IN NNP NNP NNP , NNP NNP , NNP .
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It `` may well be '' that theft of business data is `` as serious a strategic threat to national security '' as it is a threat to the survival of victimized U.S. firms , said Michelle Van Cleave , the White House 's assistant director for National Security Affairs . PRP `` MD RB VB '' DT NN IN NN NNS VBZ `` IN JJ DT JJ NN TO JJ NN '' IN PRP VBZ DT NN TO DT NN IN VBN NNP NNS , VBD NNP NNP NNP , DT NNP NNP POS NN NN IN NNP NNP NNP .
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The conference was jointly sponsored by the New York Institute of Technology School of Management and the Armed Forces Communications and Electronics Association , a joint industry-government trade group . DT NN VBD RB VBN IN DT NNP NNP NNP IN NNP NNP IN NNP CC DT NNP NNPS NNPS CC NNP NNP , DT JJ JJ NN NN .
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Any secret can be pirated , the experts said , if it is transmitted over the air . DT NN MD VB VBN , DT NNS VBD , IN PRP VBZ VBN IN DT NN .
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Even rank amateurs can do it if they spend a few thousand dollars for a commercially available microwave receiver with amplifier and a VCR recorder . JJ NN NNS MD VB PRP IN PRP VBP DT JJ CD NNS IN DT RB JJ NN NN IN NN CC DT NNP NN .
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They need only position themselves near a company 's satellite dish and wait . PRP VBP JJ NN PRP IN DT NN POS NN NN CC VB .
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`` You can have a dozen competitors stealing your secrets at the same time , '' Mr. Matchett said , adding : `` It 's a pretty good bet they wo n't get caught . '' `` PRP MD VB DT NN NNS VBG PRP$ NNS IN DT JJ NN , '' NNP NNP VBD , VBG : `` PRP VBZ DT RB JJ NN PRP MD RB VB VBN . ''
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The only way to catch an electronic thief , he said , is to set him up with erroneous information . DT JJ NN TO VB DT JJ NN , PRP VBD , VBZ TO VB PRP IN IN JJ NN .
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Even though electronic espionage may cost U.S. firms billions of dollars a year , most are n't yet taking precautions , the experts said . RB IN JJ NN MD VB NNP NNS NNS IN NNS DT NN , RBS VBP RB RB VBG NNS , DT NNS VBD .
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By contrast , European firms will spend $ 150 million this year on electronic security , and are expected to spend $ 1 billion by 1992 . IN NN , JJ NNS MD VB $ CD CD DT NN IN JJ NN , CC VBP VBN TO VB $ CD CD IN CD .
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Already many foreign firms , especially banks , have their own cryptographers , conference speakers reported . RB JJ JJ NNS , RB VBZ , VBP PRP$ JJ NNS , NN NNS VBD .
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Still , encrypting corporate communications is only a partial remedy . RB , VBG JJ NNS VBZ RB DT JJ NN .
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One expert , whose job is so politically sensitive that he spoke on condition that he would n't be named or quoted , said the expected influx of East European refugees over the next few years will greatly increase the chances of computer-maintenance workers , for example , doubling as foreign spies . CD NN , WP$ NN VBZ RB RB JJ IN PRP VBD IN NN IN PRP MD RB VB VBN CC VBN , VBD DT VBN NN IN NNP JJ NNS IN DT JJ JJ NNS MD RB VB DT NNS IN NN NNS , IN NN , VBG IN JJ NNS .
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Moreover , he said , technology now exists for stealing corporate secrets after they 've been `` erased '' from a computer 's memory . RB , PRP VBD , NN RB VBZ IN VBG JJ NNS IN PRP VBP VBN `` VBN '' IN DT NN POS NN .
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He said that Oliver North of Iran-Contra notoriety thought he had erased his computer but that the information was later retrieved for congressional committees to read . PRP VBD IN NNP NNP IN NNP NN VBD PRP VBD VBN PRP$ NN CC IN DT NN VBD RB VBN IN JJ NNS TO VB .
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No personal computer , not even the one on a chief executive 's desk , is safe , this speaker noted . DT JJ NN , RB RB DT CD IN DT JJ NN POS NN , VBZ JJ , DT NN VBD .
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W. Mark Goode , president of Micronyx Inc. , a Richardson , Texas , firm that makes computer-security products , provided a new definition for Mikhail Gorbachev 's campaign for greater openness , known commonly as glasnost . NNP NNP NNP , NN IN NNP NNP , DT NNP , NNP , NN WDT VBZ JJ NNS , VBD DT JJ NN IN NNP NNP POS NN IN JJR NN , VBN RB IN FW .
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Under Mr. Gorbachev , Mr. Goode said , the Soviets are openly stealing Western corporate communications . IN NNP NNP , NNP NNP VBD , DT NNPS VBP RB VBG JJ JJ NNS .
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He cited the case of a Swiss oil trader who recently put out bids via telex for an oil tanker to pick up a cargo of crude in the Middle East . PRP VBD DT NN IN DT JJ NN NN WP RB VB RP NNS IN NN IN DT NN NN TO VB IN DT NN IN NN IN DT NNP NNP .
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Among the responses the Swiss trader got was one from the Soviet national shipping company , which had n't been invited to submit a bid . IN DT NNS DT JJ NN VBD VBD CD IN DT JJ JJ NN NN , WDT VBD RB VBN VBN TO VB DT NN .
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The Soviets ' eavesdropping paid off , however , because they got the contract . DT NNPS POS NN VBN IN , RB , IN PRP VBD DT NN .
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The University of Toronto stepped deeper into the contest for Connaught BioSciences Inc. by reaching an unusual agreement with Ciba-Geigy Ltd. and Chiron Corp . DT NNP IN NNP VBD JJR IN DT NN IN NNP NNP NNP IN VBG DT JJ NN IN NNP NNP CC NNP NNP .
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The University said the two companies agreed to spend 25 million Canadian dollars -LRB- $ 21.3 million -RRB- over 10 years on research at Canadian universities if they are successful in acquiring the vaccine maker . DT NNP VBD DT CD NNS VBD TO VB CD CD JJ NNS ( $ CD CD ) IN CD NNS IN NN IN JJ NNS IN PRP VBP JJ IN VBG DT NN NN .
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It said $ 10 million would go to the University of Toronto . PRP VBD $ CD CD MD VB TO DT NNP IN NNP .
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Ciba-Geigy and Chiron have made a joint bid of C$ 866 million for Connaught , and Institut Merieux S.A. of France has made a rival bid of C$ 942 million . NNP CC NNP VBP VBN DT JJ NN IN $ CD CD IN NNP , CC NNP NNP NNP IN NNP VBZ VBN DT JJ NN IN $ CD CD .
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The University is seeking an injunction against the Merieux bid , arguing that Connaught 's predecessor company agreed in 1972 that Connaught 's ownership would n't be transferred to foreigners . DT NNP VBZ VBG DT NN IN DT NNP NN , VBG IN NNP POS NN NN VBD IN CD IN NNP POS NN MD RB VB VBN TO NNS .
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The university implied that it would drop its opposition to foreign ownership if Ciba-Geigy and Chiron are successful with their lower bid . DT NN VBN IN PRP MD VB PRP$ NN TO JJ NN IN NNP CC NNP VBP JJ IN PRP$ JJR NN .
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It said the new agreement would `` replace '' the old one that forms the basis of its suit against the Merieux takeover . PRP VBD DT JJ NN MD `` VB '' DT JJ CD IN VBZ DT NN IN PRP$ NN IN DT NNP NN .
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`` Notwithstanding foreign ownership of Connaught , this accord would enhance research and development in Canada , '' said James Keffer , the university 's vice president of research . `` IN JJ NN IN NNP , DT NN MD VB NN CC NN IN NNP , '' VBD NNP NNP , DT NN POS NN NN IN NN .
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Ciba-Geigy is a Swiss pharmaceutical company and Chiron is based in Emeryville , Calif . NNP VBZ DT JJ JJ NN CC NNP VBZ VBN IN NNP , NNP .
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In a statement , Jacques-Francois Martin , director general of Merieux , said the French company is still determined to acquire Connaught . IN DT NN , NNP NNP , NN NN IN NNP , VBD DT JJ NN VBZ RB VBN TO VB NNP .
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While he did n't comment directly on the pact between Ciba-Geigy and the university , he said Merieux can transfer new products and technologies to Connaught more rapidly than other companies `` not currently producing and marketing vaccines -LCB- who -RCB- can only promise this for some ... years in the future . '' IN PRP VBD RB VB RB IN DT NN IN NNP CC DT NN , PRP VBD NNP MD VB JJ NNS CC NNS TO NNP RBR RB IN JJ NNS `` RB RB VBG CC NN NNS ( WP ) MD RB VB DT IN DT : NNS IN DT NN . ''
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In national over-the-counter trading yesterday , Connaught closed at $ 28.625 , up $ 1.25 . IN JJ JJ NN NN , NNP VBD IN $ CD , IN $ CD .
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Microsoft and other software stocks surged , leading the Nasdaq composite index of over-the-counter stocks to its biggest advance of the year on breathtaking volume . NNP CC JJ NN NNS VBD , VBG DT NNP JJ NN IN JJ NNS TO PRP$ JJS NN IN DT NN IN JJ NN .
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Leading the pack , Microsoft soared 3 3\/4 , or 4 % , to a record price of 84 1\/4 on 1.2 million shares . VBG DT NN , NNP VBD CD CD , CC CD NN , TO DT NN NN IN CD CD IN CD CD NNS .
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On the other hand , Valley National tumbled 24 % after reporting a sizable third-quarter loss . IN DT JJ NN , NNP NNP VBD CD NN IN VBG DT JJ JJ NN .
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The Nasdaq composite leaped 7.52 points , or 1.6 % , to 470.80 . DT NNP NN VBD CD NNS , CC CD NN , TO CD .
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Its largest previous rise this year came Aug. 7 , when it gained 4.31 . PRP$ JJS JJ NN DT NN VBD NNP CD , WRB PRP VBD CD .
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The OTC market 's largest stocks soared as well , as the Nasdaq 100 Index jumped 10.01 , or 2 % , to 463.06 . DT NNP NN POS JJS NNS VBD IN RB , IN DT NNP CD NNP VBD CD , CC CD NN , TO CD .
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The Nasdaq Financial Index rose 5.04 , or 1.1 % , to 460.33 . DT NNP NNP NNP VBD CD , CC CD NN , TO CD .
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By comparison , the Dow Jones Industrials and the New York Stock Exchange Composite each rose 1.5 % . IN NN , DT NNP NNP NNP CC DT NNP NNP NNP NNP NNP DT VBD CD NN .
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Volume totaled 173.5 million shares , 30 % above this year 's average daily turnover on Nasdaq . NN VBD CD CD NNS , CD NN IN DT NN POS JJ JJ NN IN NNP .
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Among broader Nasdaq industry groups , the utility index gained 18.11 to 761.38 . IN JJR NNP NN NNS , DT NN NN VBD CD TO CD .
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The transportation and insurance sectors each posted gains of 8.59 , with the transports finishing at 486.74 and the insurers at 537.91 . DT NN CC NN NNS DT VBD NNS IN CD , IN DT NNS VBG IN CD CC DT NNS IN CD .
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The Nasdaq industrial index climbed 8.17 to 458.52 , and the `` other finance '' index , made up of commercial banks and real estate and brokerage firms , rose 3.97 to 545.96 . DT NNP JJ NN VBD CD TO CD , CC DT `` JJ NN '' NN , VBN IN IN JJ NNS CC JJ NN CC NN NNS , VBD CD TO CD .
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The index of smaller banks improved 1.97 . DT NN IN JJR NNS VBN CD .
|
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Of the 4,346 issues that changed hands , 1,435 rose and 629 fell . IN DT CD NNS WDT VBD NNS , CD VBD CC CD VBD .
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Jeremiah Mullins , head of OTC trading at Dean Witter Reynolds , said both institutional and retail investors were buying . NNP NNP , NN IN NNP NN IN NNP NNP NNP , VBD DT JJ CC JJ NNS VBD VBG .
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But there was a dearth of sellers , traders said , so buyers had to bid prices up to entice them . CC EX VBD DT NN IN NNS , NNS VBD , RB NNS VBD TO VB NNS VB TO VB PRP .
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`` There 's no pressure on OTC stocks at this point , '' said Mr. Mullins , who said some buyers are beginning to shop among smaller OTC issues . `` EX VBZ DT NN IN NNP NNS IN DT NN , '' VBD NNP NNP , WP VBD DT NNS VBP VBG TO VB IN JJR NNP NNS .
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Microsoft 's surge followed a report this week of substantially improved earnings for its first quarter , ended Sept. 30 . NNP POS NN VBD DT NN DT NN IN RB VBN NNS IN PRP$ JJ NN , VBN NNP CD .
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The stock was trading at 69 just two weeks ago . DT NN VBD VBG IN CD RB CD NNS RB .
|
|
Rick Sherlund , a Goldman Sachs analyst , has raised his earnings estimates for the company twice in the past two weeks , citing improved margins . NNP NNP , DT NNP NNP NN , VBZ VBN PRP$ NNS NNS IN DT NN RB IN DT JJ CD NNS , VBG VBN NNS .
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After the earnings were announced , he raised his fiscal 1990 estimate to between $ 3.80 and $ 4 a share . IN DT NNS VBD VBN , PRP VBD PRP$ JJ CD NN TO IN $ CD CC $ CD DT NN .
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Microsoft earned $ 3.03 a share in fiscal 1989 . NNP VBD $ CD DT NN IN JJ CD .
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Among other software issues , Autodesk jumped 1 1\/4 to 42 , Lotus Development was unchanged at 32 1\/2 , Novell jumped 7\/8 to 30 3\/4 , Ashton-Tate gained 1\/4 to 10 5\/8 , and Oracle Systems rose 3\/4 to 25 3\/4 . IN JJ NN NNS , NNP VBD CD CD TO CD , NNP NNP VBD JJ IN CD CD , NNP VBD CD TO CD CD , NNP VBD CD TO CD CD , CC NNP NNP VBD CD TO CD CD .
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Caere , a new software issue , surged from its offering price of 12 to close at 16 1\/8 . NNP , DT JJ NN NN , VBD IN PRP$ NN NN IN CD TO VB IN CD CD .
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The company also makes optical character recognition equipment . DT NN RB VBZ JJ NN NN NN .
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Caere was underwritten by Alex . Brown & Sons . NNP VBD VBN IN NNP . NNP CC NNP .
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Another recently offered Alex . Brown issue , Rally 's , surged 3 1\/8 to 23 . DT RB VBN NNP . NNP NN , NNP POS , VBD CD CD TO CD .
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The operator of fast-food restaurants , whose shares began trading last Friday , climbed 3 1\/8 to 23 on 944,000 shares . DT NN IN NN NNS , WP$ NNS VBD NN JJ NNP , VBD CD CD TO CD IN CD NNS .
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Its 1.7 million-share offering was priced at 15 . PRP$ CD JJ NN VBD VBN IN CD .
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Valley National 's slide of 5 3\/4 points to 18 1\/2 on 4.2 million shares followed its report late Wednesday of a $ 72.2 million third-quarter loss . NNP NNP POS NN IN NN CD NNS TO CD CD IN CD CD NNS VBD PRP$ NN JJ NNP IN DT $ CD CD JJ NN .
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In the 1988 quarter , the Phoenix , Ariz. , commercial banking concern earned $ 18.7 million . IN DT CD NN , DT NNP , NNP , JJ NN NN VBD $ CD CD .
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Valley National said its $ 110 million provision for credit losses and $ 11 million provision for other real estate owned is related to weakness in the Arizona real estate market . NNP NNP VBD PRP$ $ CD CD NN IN NN NNS CC $ CD CD NN IN JJ JJ NN VBN VBZ VBN TO NN IN DT NNP JJ NN NN .
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Additionally , Moody 's Investors Service said it downgraded Valley National 's senior debt and confirmed the company 's commercial paper rating of `` not prime . '' RB , NNP POS NNP NNP VBD PRP VBD NNP NNP POS JJ NN CC VBD DT NN POS JJ NN NN IN `` RB JJ . ''
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A new issue , Exabyte , surged 2 1\/8 from its initial offering price to close at 12 1\/8 . DT JJ NN , NNP , VBD CD CD IN PRP$ JJ NN NN TO VB IN CD CD .
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The offering was for about 2.8 million shares of the data storage equipment maker ; more than 2.2 million shares changed hands after trading began . DT NN VBD IN IN CD CD NNS IN DT NNS NN NN NN : JJR IN CD CD NNS VBD NNS IN NN VBD .
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Dell Computer dropped 7\/8 to 6 . NNP NNP VBD CD TO CD .
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The company said earnings for the year ending Jan. 28 , 1990 , are expected to be 25 to 35 cents a share , compared with a previous estimate of 50 to 60 cents a share . DT NN VBD NNS IN DT NN VBG NNP CD , CD , VBP VBN TO VB CD TO CD NNS DT NN , VBN IN DT JJ NN IN CD TO CD NNS DT NN .
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Nutmeg Industries lost 1 3\/4 to 14 . NNP NNPS VBD CD CD TO CD .
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Raymond James & Associates in St. Petersburg , Fla. , lowered its third-quarter earnings estimate for the company , according to Dow Jones Professional Investor Report . NNP NNP CC NNPS IN NNP NNP , NNP , VBD PRP$ JJ NNS NN IN DT NN , VBG TO NNP NNP NNP NNP NNP .
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A.P. Green Industries advanced 1 5\/8 to 36 1\/8 . NNP NNP NNPS VBD CD CD TO CD CD .
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East Rock Partners , which has indicated it might make a bid for the company , said A.P. Green , a refractory products maker , told the partnership it is n't for sale . NNP NNP NNPS , WDT VBZ VBN PRP MD VB DT NN IN DT NN , VBD NNP NNP , DT JJ NNS NN , VBD DT NN PRP VBZ RB IN NN .
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Row 21 of Section 9 of the Upper Reserved at Candlestick Park is a lofty perch , only a few steps from the very top of the stands . NNP CD IN NN CD IN DT NNP NNP IN NNP NNP VBZ DT JJ NN , RB DT JJ NNS IN DT JJ NN IN DT NNS .
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From my orange seat , I looked over the first-base line and the new-mown ball field in the warm sun of the last few minutes before what was to have been the third game of the World Series . IN PRP$ JJ NN , PRP VBD IN DT JJ NN CC DT JJ NN NN IN DT JJ NN IN DT JJ JJ NNS IN WP VBD TO VB VBN DT JJ NN IN DT NNP NNP .
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It was five in the afternoon , but that was Pacific time . PRP VBD CD IN DT NN , CC DT VBD NNP NN .
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Back in New York the work day was already over , so I did n't have to feel guilty . RB IN NNP NNP DT NN NN VBD RB IN , IN PRP VBD RB VB TO VB JJ .
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Even still , I did feel self-indulgent , and I could n't help remembering my father 's contempt for a rich medical colleague who would go to watch the Tigers on summer afternoons . RB RB , PRP VBD VB JJ , CC PRP MD RB VB VBG PRP$ NN POS NN IN DT JJ JJ NN WP MD VB TO VB DT NNP IN NN NNS .
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This ballpark , the Stick , was not a classic baseball stadium -- too symmetrical , too much bald concrete . DT NN , DT NNP , VBD RB DT JJ NN NN : RB JJ , RB JJ JJ NN .
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And it did n't have the crowded wild intimacy of Yankee Stadium . CC PRP VBD RB VB DT VBN JJ NN IN NNP NNP .
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But I liked the easy friendliness of the people around me , liked it that they 'd brought their children , found it charming that , true citizens of the state of the future , they had brought so many TVs and radios to stay in touch with electroreality at a live event . CC PRP VBD DT JJ NN IN DT NNS IN PRP , VBD PRP IN PRP MD VBN PRP$ NNS , VBD PRP JJ IN , JJ NNS IN DT NN IN DT NN , PRP VBD VBN RB JJ NNS CC NNS TO VB IN NN IN NN IN DT JJ NN .
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Maybe it was their peculiar sense of history . RB PRP VBD PRP$ JJ NN IN NN .
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The broadcasters were , after all , documenting the game , ratifying its occurrence for millions outside the Stick . DT NNS VBD , IN DT , VBG DT NN , VBG PRP$ NN IN NNS IN DT NNP .
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Why not watch or hear your experience historicized while you were living it ? WRB RB VB CC VB PRP$ NN VBN IN PRP VBD VBG PRP .
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The day was saturated with the weight of its own impending history . DT NN VBD VBN IN DT NN IN PRP$ JJ JJ NN .
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Long lines of people waited to buy special souvenir World Series postcards with official postmarks . JJ NNS IN NNS VBD TO VB JJ NN NNP NNP NNS IN JJ NNS .
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Thousands of us had paid $ 5 for the official souvenir book with its historical essays on Series trivia , its historical photographs of great moments in Series past , and its instructions , in English and Spanish , for filling in the scorecard . NNS IN PRP VBD VBN $ NN IN DT JJ NN NN IN PRP$ JJ NNS IN NNP NNS , PRP$ JJ NNS IN JJ NNS IN NNP JJ , CC PRP$ NNS , IN NNP CC JJ , IN VBG IN DT NN .
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Pitcher = lanzador . NN SYM FW .
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Homerun = jonron . NN SYM FW .
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Players ran out on the field way below , and the stands began to reverberate . NNS VBD IN IN DT NN NN IN , CC DT NNS VBD TO VB .
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It must be a local custom , I thought , stamping feet to welcome the team . PRP MD VB DT JJ NN , PRP VBD , VBG NNS TO VB DT NN .
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But then the noise turned into a roar . CC RB DT NN VBD IN DT NN .
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And no one was shouting . CC DT CD VBD VBG .
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No one around me was saying anything . DT CD IN PRP VBD VBG NN .
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Because we all were busy riding a wave . IN PRP DT VBD JJ VBG DT NN .
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Sixty thousand surfers atop a concrete wall , waiting for the wipeout . CD CD NNS IN DT JJ NN , VBG IN DT NN .
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Only at the moment of maximum roll did I grasp what was going on . RB IN DT NN IN JJ NN VBD PRP VBP WP VBD VBG RB .
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Then I remembered the quake of '71 , which I experienced in Santa Barbara in a second-story motel room . RB PRP VBD DT NN IN CD , WDT PRP VBD IN NNP NNP IN DT JJ NN NN .
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When the swaying of the building woke me up , I reasoned that a -RRB- I was in Southern California ; b -RRB- the bed was moving ; c -RRB- it must be a Magic Fingers bed that had short-circuited . WRB DT NN IN DT NN VBD PRP IN , PRP VBD IN DT ) PRP VBD IN NNP NNP : NN ) DT NN VBD VBG : NN ) PRP MD VB DT NNP NNP NN WDT VBD VBN .
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Then I noticed the overhead light was swaying on its cord and realized what had happened . RB PRP VBD DT JJ NN VBD VBG IN PRP$ NN CC VBD WP VBD VBN .
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What should I do ? WP MD PRP VB .
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Get out of the possibly collapsing building to the parking lot . VB IN IN DT RB VBG NN TO DT NN NN .
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But the lot might split into crevasses , so I had better stand on my car , which probably was wider than the average crevasse . CC DT NN MD VB IN NNS , IN PRP VBD JJR VB IN PRP$ NN , WDT RB VBD JJR IN DT JJ NN .
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Fortunately , the quake was over before I managed to run out and stand naked on the hood . RB , DT NN VBD IN IN PRP VBD TO VB IN CC NN JJ IN DT NN .
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At the Stick , while the world shook , I thought of that morning and then it struck me that this time was different . IN DT NNP , IN DT NN VBD , PRP VBD IN DT NN CC RB PRP VBD PRP IN DT NN VBD JJ .
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If I survived , I would have achieved every journalist 's highest wish . IN PRP VBD , PRP MD VB VBN DT NN POS JJS VBP .
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I was an eyewitness of the most newsworthy event on the planet at that moment . PRP VBD DT NN IN DT RBS JJ NN IN DT NN IN DT NN .
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What was my angle ? WP VBD PRP$ NN .
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How would I file ? WRB MD PRP VB .
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All these thoughts raced through my head in the 15 seconds of the earthquake 's actual duration . DT DT NNS VBD IN PRP$ NN IN DT CD NNS IN DT NN POS JJ NN .
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The rest is , of course , history . DT NN VBZ , IN NN , NN .
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The Stick did n't fall . DT NNP VBD RB VB .
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The real tragedies occurred elsewhere , as we soon found out . DT JJ NNS VBD RB , IN PRP RB VBD RB .
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But for a few minutes there , relief abounded . CC IN DT JJ NNS EX , NN VBD .
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A young mother found her boy , who had been out buying a hotdog . DT JJ NN VBD PRP$ NN , WP VBD VBN IN VBG DT NN .
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The wall behind me was slightly deformed , but the center had held . DT NN IN PRP VBD RB JJ , CC DT NN VBD VBN .
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And most of us waited for a while for the game to start . CC RBS IN PRP VBD IN DT NN IN DT NN TO VB .
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Then we began to file out , to wait safely on terra firma for the opening pitch . RB PRP VBD TO VB IN , TO VB RB IN FW FW IN DT NN NN .
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It was during the quiet exodus down the pristine concrete ramps of the Stick that I really understood the point of all those Walkmen and Watchmen . PRP VBD IN DT JJ NN RP DT JJ JJ NNS IN DT NNP IN PRP RB VBD DT NN IN PDT DT NNP CC NNP .
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The crowd moved in clumps , clumps magnetized around an electronic nucleus . DT NN VBD IN NNS , NNS VBN IN DT JJ NN .
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In this way , while the Stick itself was blacked out , we kept up to date on events . IN DT NN , IN DT NNP PRP VBD VBN IN , PRP VBD VB TO VB IN NNS .
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Within 15 minutes of the quake itself , I was able to see pictures of the collapsed section of the Bay Bridge . IN CD NNS IN DT NN PRP , PRP VBD JJ TO VB NNS IN DT VBN NN IN DT NNP NNP .
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Increasingly accurate estimates of the severity of the quake became available before I got to my car . RB JJ NNS IN DT NN IN DT NN VBD JJ IN PRP VBD TO PRP$ NN .
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And by then , expensive automobile sound systems were keeping the gridlocked parking lot by the bay informed about the fire causing the big black plume of smoke we saw on the northern horizon . CC IN RB , JJ NN NN NNS VBD VBG DT VBN NN NN IN DT NN VBN IN DT NN VBG DT JJ JJ NN IN NN PRP VBD IN DT JJ NN .
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Darkness fell . NN VBD .
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But the broadcasts continued through the blacked-out night , with pictures of the sandwiched highway ganglion in Oakland and firefighting in the Marina district . CC DT NNS VBD IN DT JJ NN , IN NNS IN DT VBN NN NN IN NNP CC NN IN DT NNP NN .
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By then , our little sand village of cars had been linked with a global village of listeners and viewers . IN RB , PRP$ JJ NN NN IN NNS VBD VBN VBN IN DT JJ NN IN NNS CC NNS .
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Everyone at the Stick that day had started out as a spectator and ended up as a participant . NN IN DT NNP DT NN VBD VBN IN IN DT NN CC VBD IN IN DT NN .
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In fact , the entire population of the Bay Area had ended up with this dual role of actor and audience . IN NN , DT JJ NN IN DT NNP NNP VBD VBN IN IN DT JJ NN IN NN CC NN .
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The reporters were victims and some of the victims turned into unofficial reporters . DT NNS VBD NNS CC DT IN DT NNS VBD IN JJ NNS .
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The outstanding example of this was the motorist on the Bay Bridge who had the presence of mind to take out a video camera at the absolutely crucial moment and record the car in front as it fell into the gap in the roadway . DT JJ NN IN DT VBD DT NN IN DT NNP NNP WP VBD DT NN IN NN TO VB RP DT NN NN IN DT RB JJ NN CC VB DT NN IN NN IN PRP VBD IN DT NN IN DT NN .
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The tape was on tv before the night was out . DT NN VBD IN NN IN DT NN VBD RB .
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Marshall McLuhan , you should have been there at that hour . NNP NNP , PRP MD VB VBN RB IN DT NN .
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Investors who received Shearson Lehman Hutton Inc. 's latest stock commentary may be left with blank expressions . NNS WP VBD NNP NNP NNP NNP POS JJS NN NN MD VB VBN IN JJ NNS .
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The first 10 pages of the 76-page Weekly Portfolio Perspective are completely blank , except for the page numbers . DT JJ CD NNS IN DT NNP NNP NNP NNP VBP RB JJ , IN IN DT NN NNS .
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Rather than printing devils , Shearson puts all the blame on the unpredictable stock market . RB IN NN NNS , NNP VBZ PDT DT NN IN DT JJ NN NN .
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The plunge made Shearson 's market commentary instantly out of date . DT NN VBN NNP POS NN NN RB IN IN NN .
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In fact , last Friday 's 190.58-point tumble in the stock market caught many people and businesses by surprise , not the least of them brokerage firms such as Shearson that print their weekly market commentaries on Fridays for dissemination the following week . IN NN , JJ NNP POS JJ NN IN DT NN NN VBD JJ NNS CC NNS IN NN , RB DT JJS IN PRP NN NNS JJ IN NNP DT VB PRP$ JJ NN NNS IN NNPS IN NN DT VBG NN .
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Shearson , a 62%-owned unit of American Express Co. , did n't have enough time to update its market commentary so , `` We decided to kill our strategy pieces , '' says Jack Rivkin , the head of Shearson 's research department . NNP , DT JJ NN IN NNP NNP NNP , VBD RB VB JJ NN TO VB PRP$ NN NN RB , `` PRP VBD TO VB PRP$ NN NNS , '' VBZ NNP NNP , DT NN IN NNP POS NN NN .
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The first thought some investors had was that a red-faced Shearson must have been wildly bullish on stocks in its original commentary , and that 's why it purged its pages . DT JJ VBD DT NNS VBD VBD IN DT JJ NNP MD VB VBN RB JJ IN NNS IN PRP$ JJ NN , CC DT VBZ WRB PRP VBD PRP$ NNS .
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Investors recalled that Shearson last week had been advising that `` the market is still exhibiting all the signs of a further advance . '' NNS VBD IN NNP JJ NN VBD VBN VBG IN `` DT NN VBZ RB VBG PDT DT NNS IN DT JJ NN . ''
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Many other brokerage firms had similarly bullish views . JJ JJ NN NNS VBD RB JJ NNS .
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But Mr. Rivkin insists that the 10 pages were n't pulled because they were too bullish . CC NNP NNP VBZ IN DT CD NNS VBD RB VBN IN PRP VBD RB JJ .
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Instead , he says , `` they were cautious , and that was n't the message we wanted to deliver '' on Monday . RB , PRP VBZ , `` PRP VBD JJ , CC DT VBD RB DT NN PRP VBD TO VB '' IN NNP .
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As Mr. Rivkin explains it , `` We were raising some caution flags about rate rises in Europe and concerns about the LBO market . IN NNP NNP VBZ PRP , `` PRP VBD VBG DT NN NNS IN NN VBZ IN NNP CC NNS IN DT NNP NN .
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And by late Friday afternoon , actually after the close , we decided that was the wrong tone to take . CC IN JJ NNP NN , RB IN DT NN , PRP VBD WDT VBD DT JJ NN TO VB .
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With the market down , we wanted to tell people to put their orders in on the opening . '' IN DT NN RB , PRP VBD TO VB NNS TO VB PRP$ NNS IN IN DT NN . ''
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Both before and after the Friday plunge , Shearson has maintained a recommended portfolio weighting of 65 % stocks , 20 % bonds and 15 % cash . DT IN CC IN DT NNP NN , NNP VBZ VBN DT VBN NN NN IN CD NN NNS , CD NN NNS CC CD NN NN .
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Sheldon B. Lubar , chairman of Lubar & Co. , and John L. Murray , chairman of Universal Foods Corp. , were elected to the board of this engine maker . NNP NNP NNP , NN IN NNP CC NNP , CC NNP NNP NNP , NN IN NNP NNP NNP , VBD VBN TO DT NN IN DT NN NN .
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They succeed Robert W. Kasten and John R. Parker , who reached the mandatory retirement age . PRP VBP NNP NNP NNP CC NNP NNP NNP , WP VBD DT JJ NN NN .
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China 's slide toward recession is beginning to look like a free fall . NNP POS NN IN NN VBZ VBG TO VB IN DT JJ NN .
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In a report on China 's foundering economy , the official State Statistical Bureau disclosed that industrial output last month rose 0.9 % from a year earlier - the lowest growth rate in a decade for September . IN DT NN IN NNP POS VBG NN , DT NN NNP NNP NNP VBD IN JJ NN JJ NN VBD CD NN IN DT NN RBR : DT JJS NN NN IN DT NN IN NNP .
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Retail sales are plummeting , while consumer prices still are rising . JJ NNS VBP VBG , IN NN NNS RB VBP VBG .
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Chinese and foreign economists now predict prolonged stagflation : low growth and high inflation . JJ CC JJ NNS RB VBP VBN NN : JJ NN CC JJ NN .
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`` The economy is crashing hard , '' says an Asian economist in Beijing . `` DT NN VBZ VBG JJ , '' VBZ DT JJ NN IN NNP .
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`` The slowdown is taking hold a lot more quickly and devastatingly than anyone had expected . '' `` DT NN VBZ VBG VB DT NN RBR RB CC RB IN NN VBD VBN . ''
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A lengthy recession , if it materializes , would drain state coffers and create severe hardships for urban workers . DT JJ NN , IN PRP VBZ , MD VB NN NNS CC VB JJ NNS IN JJ NNS .
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Experts predict the coming year will be characterized by flat or negative industrial growth , rising unemployment and a widening budget deficit . NNS VBP DT VBG NN MD VB VBN IN JJ CC JJ JJ NN , VBG NN CC DT VBG NN NN .
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Unless the government suddenly reverses course , wages for most workers wo n't keep pace with inflation , creating a potential source of urban unrest . IN DT NN RB VBZ NN , NNS IN RBS NNS MD RB VB NN IN NN , VBG DT JJ NN IN JJ NN .
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The economy 's slowdown is due only partly to the austerity program launched in September 1988 to cool an overheated economy and tame inflation . DT NN POS NN VBZ JJ RB RB TO DT NN NN VBN IN NNP CD TO VB DT VBN NN CC JJ NN .
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-LRB- Industrial output surged 21 % in 1988 , while inflation peaked last February at nearly 30 % . -RRB- ( NNP NN VBD CD NN IN CD , IN NN VBD JJ NNP IN RB CD NN . )
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The slowdown also results from chronic energy and raw-materials shortages that force many factories to restrict operations to two or three days a week . DT NN RB VBZ IN JJ NN CC NNS NNS WDT VBP JJ NNS TO VB NNS TO CD CC CD NNS DT NN .
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In Western , market-driven countries , recessions often have a bright side : prodding the economy to greater efficiency . IN JJ , JJ NNS , NNS RB VBP DT JJ NN : VBG DT NN TO JJR NN .
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In China , however , there is n't likely to be any silver lining because the economy remains guided primarily by the state . IN NNP , RB , EX VBZ RB JJ TO VB DT NN VBG IN DT NN VBZ VBN RB IN DT NN .
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Instead , China is likely to shell out ever-greater subsidies to its coddled state-run enterprises , which ate up $ 18 billion in bailouts last year . RB , NNP VBZ JJ TO VB RP JJ NNS TO PRP$ VBN JJ NNS , WDT VBD IN $ CD CD IN NNS JJ NN .
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Nor are any of these inefficient monoliths likely to be allowed to go bankrupt . CC VBP DT IN DT JJ NNS JJ TO VB VBN TO VB JJ .
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Rather , the brunt of the slowdown will be felt in the fast-growing private and semi-private `` township '' enterprises , which have fallen into disfavor as China 's leaders re-emphasize an orthodox Marxist preference for public ownership . RB , DT NN IN DT NN MD VB VBN IN DT JJ JJ CC JJ `` NN '' NNS , WDT VBP VBN IN NN IN NNP POS NNS VBP DT JJ JJ NN IN JJ NN .
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`` When the going gets rough , China penalizes the efficient and rewards the incompetent , '' says a Western economist . `` WRB DT VBG VBZ JJ , NNP VBZ DT JJ CC VBZ DT JJ , '' VBZ DT JJ NN .
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Reports of an economy near recession come as officials prepare a major Communist Party plenum for sometime in the next few weeks . NNS IN DT NN VB NN VB IN NNS VBP DT JJ NNP NNP NN IN RB IN DT JJ JJ NNS .
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The meeting is expected to call for heightened austerity for two years . DT NN VBZ VBN TO VB IN VBN NN IN CD NNS .
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But with industrial growth stagnant and inflation showing signs of easing , some voices may call for measures to pump new life into the economy . CC IN JJ NN JJ CC NN VBG NNS IN VBG , DT NNS MD VB IN NNS TO VB JJ NN IN DT NN .
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Some analysts believe China soon will begin relaxing economic controls , particularly by loosening credit . DT NNS VBP NNP RB MD VB VBG JJ NNS , RB IN VBG NN .
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That would benefit Chinese enterprises as well as Sino-foreign joint ventures , both of which have been plagued by shortages of working capital . DT MD VB JJ NNS RB RB IN JJ JJ NNS , DT IN WDT VBP VBN VBN IN NNS IN VBG NN .
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A dangerous buildup this year of billions of dollars in inter-company debts threatens , if unchecked , to bring the economy to a collapse . DT JJ NN DT NN IN NNS IN NNS IN JJ NNS VBZ , IN JJ , TO VB DT NN TO DT NN .
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One sign of a possible easing of credit policy was the decision this week of People 's Bank of China , the central bank , to allocate $ 5.4 billion in short-term loans to pay farmers for the autumn harvest , the official China Daily reported . CD NN IN DT JJ NN IN NN NN VBD DT NN DT NN IN NNS POS NNP IN NNP , DT JJ NN , TO VB $ CD CD IN JJ NNS TO VB NNS IN DT NN NN , DT NN NNP NNP VBD .
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But while pumping more money into the economy would bring relief to many industries , it also runs the risk of triggering another period of runaway growth and steep inflation . CC IN VBG JJR NN IN DT NN MD VB NN TO VB NNS , PRP RB VBZ DT NN IN VBG DT NN IN JJ NN CC JJ NN .
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The cycle has been repeated several times since China began reforming its planned economy in 1979 . DT NN VBZ VBN VBN JJ NNS IN NNP VBD VBG PRP$ VBN NN IN CD .
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And , because China 's leaders have abandoned plans to drastically reform the economy , it is likely to continue , analysts say . CC , IN NNP POS NNS VBP VBN NNS TO RB NN DT NN , PRP VBZ JJ TO VB , NNS VBP .
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The statistical bureau 's report , cited in China Daily , notes that industrial output in September totaled $ 29.4 billion , a rise of just 0.9 % from a year earlier . DT JJ NN POS NN , VBD IN NNP NNP , VBZ IN JJ NN IN NNP VBD $ CD CD , DT NN IN RB CD NN IN DT NN RBR .
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Output declined in several provinces , including Jiangsu and Zhejiang , two key coastal areas , and Sichuan , the nation 's agricultural breadbasket . NN VBD IN JJ NNS , VBG NNP CC NNP , CD JJ JJ NNS , CC NNP , DT NN POS JJ NN .
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Production in Shanghai , China 's industrial powerhouse and the largest source of tax revenue for the central government , fell 1.8 % for the month . NN IN NNP , NNP POS JJ NN CC DT JJS NN IN NN NN IN DT JJ NN , VBD CD NN IN DT NN .
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Nationwide , output of light industrial products declined 1.8 % -- `` the first decline in 10 years , '' a bureau spokesman told China Daily . NNP , NN IN NN JJ NNS VBD CD NN : `` DT JJ NN IN CD NNS , '' DT NN NN VBD NNP NNP .
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In an unusually direct statement , the bureau spokesman recommended that state banks extend more credit to shopkeepers so that they can purchase manufacturers ' goods . IN DT RB JJ NN , DT NN NN VBD IN NN NNS VBP JJR NN TO NNS RB IN PRP MD VB NNS POS NNS .
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`` This will prevent a slide in industrial production , which will otherwise cause new panic buyings , '' the spokesman said . `` DT MD VB DT NN IN JJ NN , WDT MD RB VB JJ NN NNS , '' DT NN VBD .
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The 1986 tax overhaul , the biggest achievement of President Reagan 's second term , is beginning to fall apart , and interest groups are lining up for tax goodies all over Capitol Hill . DT CD NN NN , DT JJS NN IN NNP NNP POS JJ NN , VBZ VBG TO VB RB , CC NN NNS VBP VBG IN IN NN NNS DT IN NNP NNP .
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Real-estate executives are lobbying to ease anti-tax-shelter rules . NN NNS VBP VBG TO VB JJ NNS .
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Charitable groups are trying to reinstate the write-off for contributions made by individuals who do n't itemize their deductions . JJ NNS VBP VBG TO VB DT NN IN NNS VBN IN NNS WP VBP RB VB PRP$ NNS .
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|
Big auction houses want to make collectibles eligible for lower capital-gains taxes . JJ NN NNS VBP TO VB NNS JJ IN JJR NNS NNS .
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And heavy-industry lobbyists are quietly discussing the possibility of reinstating the investment tax credit . CC NN NNS VBP RB VBG DT NN IN VBG DT NN NN NN .
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`` Everything is up for grabs , '' says Theodore Groom , a lobbyist for mutual life-insurance companies . `` NN VBZ IN IN NNS , '' VBZ NNP NNP , DT NN IN JJ NN NNS .
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Adds Robert Juliano , the head lobbyist for a variety of interests that want to protect the tax deduction for travel and entertainment expenses : `` It appears as though the whole thing is wide open again . '' VBZ NNP NNP , DT NN NN IN DT NN IN NNS WDT VBP TO VB DT NN NN IN NN CC NN NNS : `` PRP VBZ IN IN DT JJ NN VBZ JJ JJ RB . ''
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The catalyst has been the congressional move to restore preferential tax treatment for capital gains , an effort that is likely to succeed in this Congress . DT NN VBZ VBN DT JJ NN TO VB JJ NN NN IN NN NNS , DT NN WDT VBZ JJ TO VB IN DT NNP .
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Other fundamental `` reforms '' of the 1986 act have been threatened as well . JJ JJ `` NNS '' IN DT CD NN VBP VBN VBN IN RB .
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The House seriously considered raising the top tax rate paid by individuals with the highest incomes . DT NNP RB VBD VBG DT JJ NN NN VBN IN NNS IN DT JJS NNS .
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The Senate Finance Committee voted to expand the deduction for individual retirement accounts , and also to bring back income averaging for farmers , a tax preference that allows income to be spread out over several years . DT NNP NNP NNP VBD TO VB DT NN IN JJ NN NNS , CC RB TO VB JJ NN VBG IN NNS , DT NN NN WDT VBZ NN TO VB VBN IN IN JJ NNS .
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As part of the same bill , the finance panel also voted in favor of billions of dollars in narrow tax breaks for individuals and corporations , in what committee member Sen. David Pryor -LRB- D. , Ark . -RRB- calls a `` feeding frenzy '' of special-interest legislating . IN NN IN DT JJ NN , DT NN NN RB VBD IN NN IN NNS IN NNS IN JJ NN NNS IN NNS CC NNS , IN WP NN NN NNP NNP NNP ( NNP , NNP . ) VBZ DT `` VBG NN '' IN JJ NN .
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The beneficiaries would range from pineapple growers to rich grandparents to tuxedo-rental shops . DT NNS MD VB IN NN NNS TO JJ NNS TO JJ NNS .
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To be sure , the full Senate , facing a fast-approaching budget deadline , last Friday stripped away all of the tax breaks that were contained in the Finance Committee bill . TO VB JJ , DT JJ NNP , VBG DT JJ NN NN , JJ NNP VBD RB DT IN DT NN NNS WDT VBD VBN IN DT NNP NNP NN .
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But lawmakers of both parties agree that the streamlining was temporary . CC NNS IN DT NNS VBP IN DT VBG VBD JJ .
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Other bills will be moving soon that are expected to carry many of the tax cuts , including both the capital-gains and IRA provisions . JJ NNS MD VB VBG RB WDT VBP VBN TO VB NN IN DT NN NNS , VBG DT DT NNS CC NNP NNS .
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`` There is n't any doubt that the thread of the '86 code has been given a mighty tug , '' says Rep. Thomas Downey -LRB- D. , N.Y . -RRB- . `` EX VBZ RB DT NN IN DT NN IN DT CD NN VBZ VBN VBN DT JJ NN , '' VBZ NNP NNP NNP ( NNP , NNP . ) .
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`` You 'll see the annual unraveling of it . '' `` PRP MD VB DT JJ NN IN PRP . ''
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`` It 's back to tax-give-away time for the select few , '' says Rep. William Gray of Pennsylvania , the third-ranking Democrat in the House . `` PRP VBZ RB TO JJ NN IN DT JJ NN , '' VBZ NNP NNP NNP IN NNP , DT JJ NNP IN DT NNP .
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Referring to the chairmen of the Senate and House tax-writing committees , he adds , `` Next year , every special-interest group is going to be there knocking on Lloyd Bentsen 's door , on Danny Rostenkowski 's door . '' VBG TO DT NNS IN DT NNP CC NNP JJ NNS , PRP VBZ , `` JJ NN , DT JJ NN VBZ VBG TO VB RB VBG IN NNP NNP POS NN , IN NNP NNP POS NN . ''
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Many groups are n't waiting that long . JJ NNS VBP RB VBG DT JJ .
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Just last week , a House Ways and Means subcommittee held a lengthy meeting to hear the pleas of individual cities , companies and interest groups who want to open their own special loopholes . RB JJ NN , DT NNP NNPS CC NNP NN VBD DT JJ NN TO VB DT NNS IN JJ NNS , NNS CC NN NNS WP VBP TO VB PRP$ JJ JJ NNS .
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`` It 's a Swiss-cheese factory and the cheese smells pretty good , '' commented one veteran lobbyist who was watching the proceedings . `` PRP VBZ DT NN NN CC DT NN VBZ RB JJ , '' VBD CD NN NN WP VBD VBG DT NNS .
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Even lobbyists for heavy industry , one of the interests hit hardest in the 1986 bill , are encouraged . JJ NNS IN JJ NN , CD IN DT NNS VBD JJS IN DT CD NN , VBP VBN .
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The return of pro-investment tax breaks such as those for capital gains and IRAs `` creates more of a mood or a mindset that is helpful for getting better depreciation -LRB- write-offs -RRB- or investment credits , '' says Paul Huard , a vice president for the National Association of Manufacturers . DT NN IN JJ NN NNS JJ IN DT JJ NN NNS CC NNS `` VBZ JJR IN DT NN CC DT NN WDT VBZ JJ IN VBG JJR NN ( NNS ) CC NN NNS , '' VBZ NNP NNP , DT NN NN IN DT NNP NNP IN NNPS .
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Corporate lobbyist Charls Walker is planning a spring conference to discuss what tax changes to make to improve `` competitiveness . '' JJ NN NNP NNP VBZ VBG DT NN NN TO VB WP NN NNS TO VB TO VB `` NN . ''
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In reaction to proposed capital-gains legislation , groups are lobbying to make sure they are n't left off the gravy train . IN NN TO VBN NNS NN , NNS VBP VBG TO VB JJ PRP VBP RB VBN IN DT NN NN .
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Real-estate interests , for example , are protesting an omission in President Bush 's capital-gains proposal : It does n't include real-estate gains . NN NNS , IN NN , VBP VBG DT NN IN NNP NNP POS NNS NN : PRP VBZ RB VB NN NNS .
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`` If there is going to be a tax scheme that contemplates lower treatment of capital gains , they certainly want to be part of it , '' says real-estate lobbyist Wayne Thevenot of Concord Associates . `` IN EX VBZ VBG TO VB DT NN NN WDT VBZ JJR NN IN NN NNS , PRP RB VBP TO VB NN IN PRP , '' VBZ NN NN NNP NNP IN NNP NNPS .
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In the House-passed tax bill , Mr. Thevenot got his wish ; real-estate assets are included in the capital-gains provision . IN DT JJ NN NN , NNP NNP VBD PRP$ VBP : NN NNS VBP VBN IN DT NNS NN .
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But Sotheby 's , Christie 's and the National Association of Antique Dealers are still trying to get theirs . CC NNP POS , NNP POS CC DT NNP NNP IN NNP NNS VBP RB VBG TO VB PRP .
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They have sent a letter to congressional tax-writers asking that gains from the sale of collectibles also be given preferential treatment . PRP VBP VBN DT NN TO JJ NNS VBG IN NNS IN DT NN IN NNS RB VBP VBN JJ NN .
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`` Collectibles should continue to be recognized as capital assets , '' the letter states . `` NNS MD VB TO VB VBN IN NN NNS , '' DT NN NNS .
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All of this talk is antithetical to the Tax Reform Act of 1986 . DT IN DT NN VBZ JJ TO DT NNP NNP NNP IN CD .
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In exchange for dramatically lower tax rates , the framers of that legislation sought to eliminate most of the exemptions , deductions and credits that gave some taxpayers an advantage over others . IN NN IN RB JJR NN NNS , DT NNS IN DT NN VBD TO VB RBS IN DT NNS , NNS CC NNS WDT VBD DT NNS DT NN IN NNS .
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The goal was to tax people with roughly equivalent incomes equally , and to eliminate the many shelters that allowed the wealthy to escape taxes . DT NN VBD TO VB NNS IN RB NN NNS RB , CC TO VB DT JJ NNS WDT VBD DT JJ TO VB NNS .
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Two of the major ways that tax-writers managed to attain these ends were to scrap the preferential treatment of capital gains and to curtail the use of paper losses , also known as passive losses , that made many tax shelters possible . CD IN DT JJ NNS IN NNS VBD TO VB DT NNS VBD TO VB DT JJ NN IN NN NNS CC TO VB DT NN IN NN NNS , RB VBN IN JJ NNS , WDT VBD JJ NN NNS JJ .
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Many other tax benefits also were swept away . JJ JJ NN NNS RB VBD VBN RB .
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This year Congress , with prodding from President Bush , has been busy trying to put many of these same tax preferences back into the code . DT NN NNP , IN VBG IN NNP NNP , VBZ VBN JJ NN TO VB NN IN DT JJ NN NNS RB IN DT NN .
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It appears likely that , this year or next , some form of capital-gains preference and passive-loss restoration will be enacted . PRP VBZ JJ IN , DT NN CC JJ , DT NN IN NNS NN CC JJ NN MD VB VBN .
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Other tax benefits probably will be restored and created . JJ NN NNS RB MD VB VBN CC VBN .
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The main obstacle is finding a way to pay for them . DT JJ NN VBZ VBG DT NN TO VB IN PRP .
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`` The '86 act was a fluke . `` DT CD NN VBD DT NN .
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They wanted reform and they got a revolution , '' says overhaul advocate Rep. Willis Gradison -LRB- R. , Ohio -RRB- . PRP VBD NN CC PRP VBD DT NN , '' VBZ NN NN NNP NNP NNP ( NNP , NNP ) .
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So , is the tax code now open game again ? RB , VBZ DT NN NN RB JJ NN RB .
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Mr. Juliano thinks so . NNP NNP VBZ RB .
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One recent Saturday morning he stayed inside the Capitol monitoring tax-and-budget talks instead of flying to San Francisco for a fund-raiser and then to his hometown of Chicago for the 30th reunion of St. Ignatius High School . CD JJ NNP NN PRP VBD IN DT NNP VBG JJ NNS RB IN VBG TO NNP NNP IN DT NN CC RB TO PRP$ NN IN NNP IN DT JJ NN IN NNP NNP NNP NNP .
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`` I 'm too old to waste a weekend , but that 's what I did , '' the 48-year-old Mr. Juliano moans . `` PRP VBP RB JJ TO VB DT NN , CC DT VBZ WP PRP VBD , '' DT NNP NNP NNP VBZ .
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`` These days , anything can happen . `` DT NNS , NN MD VB .
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Lufthansa AG said passenger volume climbed 5.2 % for the first nine months of 1989 to 15.3 million passengers from 14.5 million passengers in the year-earlier period . NNP NNP VBD NN NN VBD CD NN IN DT JJ CD NNS IN CD TO CD CD NNS IN CD CD NNS IN DT JJ NN .
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The West German national air carrier said cargo volume jumped 12 % to 638,000 metric tons from 569,000 tons a year ago . DT JJ JJ JJ NN NN VBD NN NN VBD CD NN TO CD JJ NNS IN CD NNS DT NN RB .
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Load factor , or percentage of seats filled , climbed to 67.1 % from 66.6 % , even though the number of flights rose 6.9 % to 215,845 in the first-three quarters . NN NN , CC NN IN NNS VBN , VBD TO CD NN IN CD NN , RB IN DT NN IN NNS VBD CD NN TO CD IN DT JJ NNS .
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From January through September , the distance flown by Lufthansa airplanes rose 5.6 % to 266.2 million kilometers from a year earlier , the company added . IN NNP IN NNP , DT NN VBN IN NNP NNS VBD CD NN TO CD CD NNS IN DT NN RBR , DT NN VBD .
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Raymond Chandler , in a 1950 letter defending a weak Hemingway book , likened a champion writer to a baseball pitcher . NNP NNP , IN DT CD NN VBG DT JJ NNP NN , VBD DT NN NN TO DT NN NN .
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When the champ has lost his stuff , the great mystery novelist wrote , `` when he can no longer throw the high hard one , he throws his heart instead . WRB DT NN VBZ VBN PRP$ NN , DT JJ NN NN VBD , `` WRB PRP MD RB RB VB DT JJ JJ CD , PRP VBZ PRP$ NN RB .
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He throws something . PRP VBZ NN .
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He does n't just walk off the mound and weep . '' PRP VBZ RB RB VB IN DT NN CC VB . ''
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Chandler might have been predicting the course of his own career . NNP MD VB VBN VBG DT NN IN PRP$ JJ NN .
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His last published novel featuring private detective Philip Marlowe , the inferior `` Playback '' -LRB- 1958 -RRB- , at times read almost like a parody of his previous work . PRP$ RB VBN NN VBG JJ NN NNP NNP , DT JJ `` NNP '' ( CD ) , IN NNS VBP RB IN DT NN IN PRP$ JJ NN .
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When he died in 1959 , Chandler left behind four chapters of yet another Marlowe book , `` The Poodle Springs Story , '' which seemed to go beyond parody into something like burlesque . WRB PRP VBD IN CD , NNP VBD IN CD NNS IN RB DT NNP NN , `` DT NNP NNP NNP , '' WDT VBD TO VB IN NN IN NN IN JJ .
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`` Champ '' Chandler 's last pitch , apparently , was a screwball . `` NNP '' NNP POS JJ NN , RB , VBD DT NN .
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Now Robert Parker , author of several best sellers featuring Spenser , a contemporary private eye in the Marlowe mold , has with the blessings of the Chandler estate been hired to complete `` The Poodle Springs Story . '' RB NNP NNP , NN IN JJ JJS NNS VBG NNP , DT JJ JJ NN IN DT NNP NN , VBZ IN DT NNS IN DT NNP NN VBN VBN TO VB `` DT NNP NNP NNP . ''
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The result , `` Poodle Springs '' -LRB- Putnam 's , 288 pages , $ 18.95 -RRB- is an entertaining , easy to read and fairly graceful extension of the Marlowe chronicle , full of hard-boiled wisecracks and California color . DT NN , `` NNP NNP '' ( NNP POS , CD NNS , $ CD ) VBZ DT NN , JJ TO VB CC RB JJ NN IN DT NNP NN , JJ IN JJ NNS CC NNP NN .
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If it does not quite have Chandler 's special magic -- well , at the end , neither did Chandler . IN PRP VBZ RB RB VB NNP POS JJ NN : RB , IN DT NN , DT VBD NNP .
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As the book begins , a newly wed Marlowe roars into the desert resort of Poodle -LRB- a.k.a . Palm -RRB- Springs at the wheel of a Cadillac Fleetwood . IN DT NN VBZ , DT RB VBN NNP VBZ IN DT NN NN IN NNP ( JJ . NNP ) NNP IN DT NN IN DT NNP NNP .
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His bride is the rich and beautiful Linda Loring , a character who also appeared in Chandler 's `` The Long Goodbye '' and `` Playback . '' PRP$ NN VBZ DT JJ CC JJ NNP NNP , DT NN WP RB VBD IN NNP POS `` DT NNP NNP '' CC `` NNP . ''
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Philip and Linda move into her mansion and ca n't keep their hands off each other , even in front of the Hawaiian\/Japanese houseman . NNP CC NNP NN IN PRP$ NN CC MD RB VB PRP$ NNS IN DT NN , RB IN NN IN DT JJ NN .
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But the lovebirds have a conflict . CC DT NNS VBP DT NN .
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He wants to continue being a low-paid private eye , and she wants him to live off the million dollars she 's settled on him . PRP VBZ TO VB VBG DT JJ JJ NN , CC PRP VBZ PRP TO VB IN DT CD NNS PRP VBZ VBD IN PRP .
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That 's Chandler 's setup . DT VBZ NNP POS NN .
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Mr. Parker spins it into a pretty satisfying tale involving Poodle Springs high life , Hollywood low life and various folk who hang their hats in both worlds . NNP NNP VBZ PRP IN DT RB JJ NN VBG NNP NNP JJ NN , NNP JJ NN CC JJ NN WP VBP PRP$ NNS IN DT NNS .
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The supporting lineup is solid , the patter is amusing and there 's even a cameo by Bernie Ohls , the `` good cop '' of previous Chandler books who still does n't hesitate to have Marlowe jailed when it suits his purposes . DT VBG NN VBZ JJ , DT NN VBZ JJ CC EX VBZ RB DT NN IN NNP NNP , DT `` JJ NN '' IN JJ NNP NNS WP RB VBZ RB VB TO VB NNP VBN WRB PRP VBZ PRP$ NNS .
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The style throughout bears a strong resemblance to Chandler 's prose at its most pared down . DT NN IN VBZ DT JJ NN TO NNP POS NN IN PRP$ RBS VBN RB .
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All told , Mr. Parker does a better job of making a novel out of this abandoned fragment than anyone might have had a right to expect . DT VBD , NNP NNP VBZ DT JJR NN IN VBG DT NN IN IN DT VBN NN IN NN MD VB VBN DT NN TO VB .
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But there are grounds for complaint . CC EX VBP NNS IN NN .
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At one point , the reader is two steps ahead of Marlowe in catching on to a double identity scam -- and Marlowe is supposed to be the pro . IN CD NN , DT NN VBZ CD NNS RB IN NNP IN VBG IN TO DT JJ NN NN : CC NNP VBZ VBN TO VB DT FW .
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More bothersome , there are several apparent anachronisms . RBR JJ , EX VBP JJ JJ NNS .
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Contact lenses , tank tops , prostitutes openly working the streets of Hollywood and the Tequila Sunrise cocktail all seem out of place in the 1950s . NN NNS , NN NNS , NNS RB VBG DT NNS IN NNP CC DT NNP NNP NN DT VB IN IN NN IN DT CD .
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A little more care in re-creating Marlowe 's universe would have made the book that much more enjoyable . DT RB JJR NN IN NN NNP POS NN MD VB VBN DT NN IN RB RBR JJ .
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Mr. Nolan is a contributing editor at Los Angeles Magazine . NNP NNP VBZ DT VBG NN IN NNP NNP NNP .
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Ko Shioya spent eight years as the editor in chief of the Japanese edition of Reader 's Digest . NNP NNP VBD CD NNS IN DT NN IN NN IN DT JJ NN IN NNP POS NNP .
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`` Japan has been a major importer of foreign information and news , '' says Mr. Shioya . `` NNP VBZ VBN DT JJ NN IN JJ NN CC NN , '' VBZ NNP NNP .
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`` But one gets fed up with importing information and news . '' `` CC CD VBZ VBN IN IN VBG NN CC NN . ''
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Mr. Shioya has turned the tables . NNP NNP VBZ VBN DT NNS .
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Today , he is publisher of Business Tokyo magazine , the first English-language business magazine devoted to coverage of Japanese business . NN , PRP VBZ NN IN NNP NNP NN , DT JJ JJ NN NN VBN TO NN IN JJ NN .
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After a slick redesign , the two-year-old magazine has been relaunched this month by its parent company , Keizaikai Corp. , the Tokyo-based company with interests that include financial services , book publishing and a tourist agency . IN DT JJ NN , DT JJ NN VBZ VBN VBN DT NN IN PRP$ NN NN , NNP NNP , DT JJ NN IN NNS WDT VBP JJ NNS , NN NN CC DT NN NN .
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Printed in the U.S. and carrying the line `` The Insider 's Japan , '' Business Tokyo 's October cover story was `` The World 's No. 1 Customer '' -- Japanese women . JJ IN DT NNP CC VBG DT NN `` DT NNP POS NNP , '' NNP NNP POS NNP NN NN VBD `` DT NNP POS NN CD NN '' : JJ NNS .
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Keizaikai is one of a small but growing band of Japanese companies taking their first steps into American publishing , after making major investments in entertainment , real estate and banking companies here . NNP VBZ CD IN DT JJ CC VBG NN IN JJ NNS VBG PRP$ JJ NNS IN JJ NN , IN VBG JJ NNS IN NN , JJ NN CC NN NNS RB .
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Japanese concerns have retained a number of publishing consultants and media brokers to study the U.S. market , including the New York-based investment banker Veronis , Suhler & Associates . JJ NNS VBP VBN DT NN IN NN NNS CC NNS NNS TO VB DT NNP NN , VBG DT NNP JJ NN NN NNP , NNP CC NNPS .
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And they are quietly linking up with U.S. publishing trade groups . CC PRP VBP RB VBG IN IN NNP NN NN NNS .
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`` Japanese publishers want to be introduced to the publishing and information industries , '' said John Veronis , chairman of Veronis Suhler . `` JJ NNS VBP TO VB VBN TO DT NN CC NN NNS , '' VBD NNP NNP , NN IN NNP NNP .
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While there are n't any major deals in the works currently on the scale of Sony Corp. 's recent $ 3.4 billion agreement to buy Columbia Pictures Entertainment Inc. , observers do n't rule out a transaction of that size . IN EX VBP RB DT JJ NNS IN DT NNS RB IN DT NN IN NNP NNP POS JJ $ CD CD NN TO VB NNP NNP NNP NNP , NNS VBP RB VB RP DT NN IN DT NN .
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`` The Japanese take the long view . '' said Mr. Veronis . `` DT JJ NN DT JJ NN . '' VBD NNP NNP .
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`` It may not be weeks or months , but they are also opportunistic and if they feel comfortable , they will move on a deal , '' he said . `` PRP MD RB VB NNS CC NNS , CC PRP VBP RB JJ CC IN PRP VBP JJ , PRP MD VB IN DT NN , '' PRP VBD .
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In recent months , three big Tokyo-based publishing concerns -- including Nikkei Business Publications , Nikkei Home -LRB- no relation -RRB- , and Magazine House -- applied for membership in Magazine Publishers of America , which represents almost all U.S. consumer magazines . IN JJ NNS , CD JJ JJ NN NNS : VBG NNP NNP NNPS , NNP NNP ( DT NN ) , CC NNP NNP : VBN IN NN IN NNP NNPS IN NNP , WDT VBZ RB DT NNP NN NNS .
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Japanese involvement in American publishing has been so small to date that magazines such as Business Tokyo are considered groundbreakers . JJ NN IN JJ NN VBZ VBN RB JJ TO VB IN NNS JJ IN NNP NNP VBP VBN NNS .
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When Keizaikai launched Business Tokyo in 1987 , it appealed to a more multinational audience . WRB NNP VBD NNP NNP IN CD , PRP VBD TO DT RBR JJ NN .
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The magazine was overhauled with the aid of American magazine design gurus Milton Glaser and Walter Bernard , and targets top-level U.S. executives with Japanese and American advertisers . DT NN VBD VBN IN DT NN IN JJ NN NN NNS NNP NNP CC NNP NNP , CC NNS JJ NNP NNS IN JJ CC JJ NNS .
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American publishers appear more than ready to do some selling . JJ NNS VBP JJR IN JJ TO VB DT NN .
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Susumu Ohara , president of Nihon Keizai Shinbun America Inc. , publisher of the Japan Economic Journal , said he receives telephone calls weekly from media bankers on whether his parent company is interested in buying a U.S. consumer or business magazine . NNP NNP , NN IN NNP NNP NNP NNP NNP , NN IN DT NNP NNP NNP , VBD PRP VBZ NN VBZ JJ IN NNS NNS IN IN PRP$ NN NN VBZ JJ IN VBG DT NNP NN CC NN NN .
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`` The Japanese are in the early stage right now , '' said Thomas Kenney , a onetime media adviser for First Boston Corp. who was recently appointed president of Reader 's Digest Association 's new Magazine Publishing Group . `` DT JJ VBP IN DT JJ NN RB RB , '' VBD NNP NNP , DT JJ NNS NN IN NNP NNP NNP WP VBD RB VBN NN IN NNP POS NNP NNP POS JJ NNP NNP NNP .
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`` Before , they were interested in hard assets and they saw magazines as soft . `` IN , PRP VBD JJ IN JJ NNS CC PRP VBD NNS IN JJ .
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Now they realize magazines are as much a franchise as Nabisco is a franchise . RB PRP VBP NNS VBP IN JJ DT NN IN NNP VBZ DT NN .
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Bell Atlantic Corp. and Southern New England Telecommunications posted strong profit gains for the third quarter , while Nynex Corp. , Pacific Telesis Group and U S West Inc. reported earnings declines for the period . NNP NNP NNP CC NNP NNP NNP NNPS VBD JJ NN NNS IN DT JJ NN , IN NNP NNP , NNP NNP NNP CC NNP NNP NNP NNP VBD NNS NNS IN DT NN .
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Rate settlements in Minnesota and Colorado depressed U S West 's third-quarter profit . NN NNS IN NNP CC NNP JJ NNP NNP NNP POS JJ NN .
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Denver-based U S West said net income dropped 8.9 % , noting that the year-ago quarter included the sale of a building by its BetaWest Properties unit . NNP NNP NNP NNP VBD JJ NN VBD CD NN , VBG IN DT JJ NN VBD DT NN IN DT NN IN PRP$ NNP NNP NN .
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Revenue dropped 4.3 % to $ 2.3 billion from $ 2.4 billion , reflecting declines in its consumer-telephone sector , long-distance carrier business and diversified division . NN VBD CD NN TO $ CD CD IN $ CD CD , VBG NNS IN PRP$ JJ NN , JJ NN NN CC JJ NN .
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Revenue from business-telephone operations grew 3.3 % to $ 618.9 million from $ 599.4 million a year ago . NN IN JJ NNS VBD CD NN TO $ CD CD IN $ CD CD DT NN RB .
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New telephone lines posted healthy growth . JJ NN NNS VBD JJ NN .
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Overall they increased 2.8 % to 12.1 million , putting U S West over the 12 million mark for the first time . RB PRP VBD CD NN TO CD CD , VBG NNP NNP NNP IN DT CD CD NN IN DT JJ NN .
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Business lines increased 3.7 % to 3.3 million . NN NNS VBN CD NN TO CD CD .
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`` On a truly comparable basis , we 've seen modest earnings growth this year from the operations of our company , '' said Jack MacAllister , chairman and chief executive officer . `` IN DT RB JJ NN , PRP VBP VBN JJ NNS NN DT NN IN DT NNS IN PRP$ NN , '' VBD NNP NNP , NN CC JJ JJ NN .
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`` The major negative factor was the cumulative impact of regulatory activity over the past two years . '' `` DT JJ JJ NN VBD DT JJ NN IN JJ NN IN DT JJ CD NNS . ''
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He said the company expects to be `` on target '' with analysts ' projections by year end but conceded that the fourth quarter represents `` a significant challenge . '' PRP VBD DT NN VBZ TO VB `` IN NN '' IN NNS POS NNS IN NN NN CC VBD IN DT JJ NN VBZ `` DT JJ NN . ''
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Expenses in the quarter dropped 11.2 % to $ 664.3 million from $ 747.7 million a year ago . NNS IN DT NN VBD CD NN TO $ CD CD IN $ CD CD DT NN RB .
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Yesterday , U S West shares rose 75 cents to close at $ 71.25 in New York Stock Exchange composite trading . NN , NNP NNP NNP NNS VBD CD NNS TO VB IN $ CD IN NNP NNP NNP NNP JJ NN .
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Philadelphia-based Bell Atlantic said net rose 6.5 % , aided by strong growth in the network-services business and an increase in the number of new telephone lines . JJ NNP NNP VBD NN VBD CD NN , VBN IN JJ NN IN DT JJ NN CC DT NN IN DT NN IN JJ NN NNS .
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Revenue jumped 5.6 % to $ 2.9 billion from $ 2.8 billion in the year-ago quarter . NN VBD CD NN TO $ CD CD IN $ CD CD IN DT JJ NN .
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Revenue from financial and real-estate services jumped 23 % to $ 177.4 million from $ 144.1 million a year ago . NN IN JJ CC NN NNS VBD CD NN TO $ CD CD IN $ CD CD DT NN RB .
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Network-access revenue from long-distance telephone companies increased 6.4 % to $ 618.6 million . JJ NN IN JJ NN NNS VBN CD NN TO $ CD CD .
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Bell Atlantic added 148,000 new telephone lines in the quarter for a total of 16.9 million . NNP NNP VBD CD JJ NN NNS IN DT NN IN DT NN IN CD CD .
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The company said per-share earnings were slightly reduced by the sale of 4.1 million shares of treasury stock to the company 's newly formed Employee Stock Ownership Plans . DT NN VBD JJ NNS VBD RB VBN IN DT NN IN CD CD NNS IN NN NN TO DT NN POS RB VBN NNP NNP NNP NNS .
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In composite trading on the Big Board , Bell Atlantic closed at $ 100.625 , up $ 1.50 a share . IN JJ NN IN DT NNP NNP , NNP NNP VBD IN $ CD , IN $ CD DT NN .
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At Nynex , net slumped 14.8 % , primarily because of a continuing strike by 60,000 employees , lower-than-expected profit at its New York Telephone unit and significantly higher taxes and costs . IN NNP , NN VBD CD NN , RB IN IN DT VBG NN IN CD NNS , JJ NN IN PRP$ NNP NNP NNP NN CC RB JJR NNS CC NNS .
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State and local taxes increased to $ 131.3 million from $ 99.1 million a year ago . NNP CC JJ NNS VBN TO $ CD CD IN $ CD CD DT NN RB .
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Nynex said expenses rose 4.5 % to $ 2.73 billion from $ 2.61 billion , a $ 119 million increase . NNP VBD NNS VBD CD NN TO $ CD CD IN $ CD CD , DT $ CD CD NN .
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Most of the higher costs were associated with acquisitions and growth in nonregulated business units , it added . JJS IN DT JJR NNS VBD VBN IN NNS CC NN IN JJ NN NNS , PRP VBD .
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`` Our net income is n't where we would want it to be at this point , '' said William C. Ferguson , chairman and chief executive officer . `` PRP$ JJ NN VBZ RB WRB PRP MD VB PRP TO VB IN DT NN , '' VBD NNP NNP NNP , NN CC JJ JJ NN .
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`` This deviation from our past growth patterns is caused largely by lower earnings at New York Telephone . '' `` DT NN IN PRP$ JJ NN NNS VBZ VBN RB IN JJR NNS IN NNP NNP NNP . ''
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Mr. Ferguson said a continued softness in New York City area 's economy and increased competition , particularly in the private-line market , took a heavy toll on earnings . NNP NNP VBD DT VBN NN IN NNP NNP NNP NN POS NN CC VBN NN , RB IN DT JJ NN , VBD DT JJ NN IN NNS .
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The three-month-old strike at Nynex seriously hurt the installation of new telephone lines in the quarter . DT JJ NN IN NNP RB VBD DT NN IN JJ NN NNS IN DT NN .
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Nynex said access lines in service at the end of the quarter were off 18,000 from the previous quarter , which reported an increase of 160,000 new access lines . NNP VBD NN NNS IN NN IN DT NN IN DT NN VBD IN CD IN DT JJ NN , WDT VBD DT NN IN CD JJ NN NNS .
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Revenue rose to $ 3.31 billion from $ 3.18 billion , mostly from acquisition of AGS Computers and robust non-regulated businesses . NN VBD TO $ CD CD IN $ CD CD , RB IN NN IN NNP NNPS CC JJ JJ NNS .
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In Big Board composite trading yesterday , Nynex common closed at $ 81.125 , up $ 1.625 . IN NNP NNP JJ NN NN , NNP NN VBD IN $ CD , IN $ CD .
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Southern New England Telecommunications , which bolstered its marketing efforts for telephone and non-telephone subsidiaries , reported that net increased 8.1 % . NNP NNP NNP NNPS , WDT VBD PRP$ NN NNS IN NN CC JJ NNS , VBD IN JJ VBN CD NN .
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Walter H. Monteith Jr. , SNET chairman and chief executive officer , said : `` Innovative marketing of our products and services contributed to increase revenue . '' NNP NNP NNP NNP , NNP NN CC JJ JJ NN , VBD : `` JJ NN IN PRP$ NNS CC NNS VBD TO VB NN . ''
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Revenue and sales increased 7.5 % to $ 423.9 million from $ 394.4 million a year earlier . NN CC NNS VBN CD NN TO $ CD CD IN $ CD CD DT NN RBR .
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Yellow pages advertising sales rose 11.8 % to $ 41.2 million . JJ NNS NN NNS VBD CD NN TO $ CD CD .
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Cost and expenses for the quarter , excluding interest , increased 6.1 % to $ 333.3 million from $ 314 million the year before . NN CC NNS IN DT NN , VBG NN , VBN CD NN TO $ CD CD IN $ CD CD DT NN RB .
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SNET common rose $ 1.25 to $ 85.50 a share yesterday in composite trading on the Big Board . NNP NN VBD $ CD TO $ CD DT NN NN IN JJ NN IN DT NNP NNP .
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San Francisco-based Pacific Telesis said net declined 12.6 % , primarily because of regulatory action . NNP JJ NNP NNP VBD NN VBD CD NN , RB IN IN JJ NN .
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Revenue was about flat at $ 2.4 billion . NN VBD IN JJ IN $ CD CD .
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Revenue was reduced $ 33 million by three extraordinary items : a California Public Utilities Commission refund for an American Telephone & Telegraph Co. billing adjustment ; a provision for productivity sharing to be paid to customers in 1990 and a one-time accrual for a toll settlement with long-distance telephone companies . NN VBD VBN $ CD CD IN CD JJ NNS : DT NNP NNP NNP NNP NN IN DT NNP NNP CC NNP NNP NN NN : DT NN IN NN VBG TO VB VBN TO NNS IN CD CC DT JJ NN IN DT NN NN IN JJ NN NNS .
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Excluding the one-time charges , the company would have posted earnings of $ 298 million , or 73 cents a share . VBG DT JJ NNS , DT NN MD VB VBN NNS IN $ CD CD , CC CD NNS DT NN .
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The company also was hurt by a $ 289 million rate reduction that went into effect in 1989 . DT NN RB VBD VBN IN DT $ CD CD NN NN WDT VBD IN NN IN CD .
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`` This is a good quarter for us in terms of our business fundamentals , '' said Sam Ginn , chairman and chief executive officer . `` DT VBZ DT JJ NN IN PRP IN NNS IN PRP$ NN NNS , '' VBD NNP NNP , NN CC JJ JJ NN .
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Pacific Telesis said new telephone lines increased 4.5 % for a total of about $ 13.5 million for the quarter ; toll calls increased 9.6 % to 807 million and minutes of telephone usage increased to 9.9 billion . NNP NNP VBD JJ NN NNS VBN CD NN IN DT NN IN RB $ CD CD IN DT NN : NN VBZ VBN CD NN TO CD CD CC NNS IN NN NN VBN TO CD CD .
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In Big Board composite trading yesterday , Pacific Telesis common closed at $ 45.50 , up 87.5 cents . IN NNP NNP JJ NN NN , NNP NNP NN VBD IN $ CD , IN CD NNS .
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a - Includes a one-time gain of $ 88.7 million from a commonstock sale by U S West 's U S West New Vector Group . DT : VBZ DT JJ NN IN $ CD CD IN DT NN NN IN NNP NNP NNP POS NNP NNP NNP NNP NNP NNP .
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b - Includes a $ 41.3 million gain on the sale of FiberCom . NN : VBZ DT $ CD CD NN IN DT NN IN NNP .
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Amoco Corp. said third-quarter net income plunged 39 % to $ 336 million , or 65 cents a share , as gasoline refining and marketing profits lagged substantially behind last year 's record level . NNP NNP VBD JJ JJ NN VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN NN NN CC NN NNS VBN RB IN JJ NN POS NN NN .
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A charge of $ 80 million related to projected environmental costs in its refining and marketing operations further depressed results . DT NN IN $ CD CD VBN TO VBN JJ NNS IN PRP$ NN CC NN NNS JJ JJ NNS .
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A spokesman said Amoco completed an environmental analysis last quarter but that no single clean-up project was responsible . DT NN VBD NNP VBD DT JJ NN JJ NN CC IN DT JJ JJ NN VBD JJ .
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In the 1988 third quarter , the Chicago-based oil company earned $ 552 million , or $ 1.07 a share . IN DT CD JJ NN , DT JJ NN NN VBD $ CD CD , CC $ CD DT NN .
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Revenue in the latest quarter rose 12 % to $ 6.6 billion from $ 5.91 billion . NN IN DT JJS NN VBD CD NN TO $ CD CD IN $ CD CD .
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Aside from the special charge , Amoco 's results were in line with Wall Street estimates . RB IN DT JJ NN , NNP POS NNS VBD IN NN IN NNP NNP NNS .
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The company 's stock ended at $ 48.375 , up 25 cents in New York Stock Exchange composite trading . DT NN POS NN VBD IN $ CD , IN CD NNS IN NNP NNP NNP NNP JJ NN .
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Amoco is the first major oil company to report third-quarter results . NNP VBZ DT JJ JJ NN NN TO VB JJ NNS .
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Analysts expect others to show a similar pattern . NNS VBP NNS TO VB DT JJ NN .
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Generally in the quarter , overproduction of gasoline and higher crude oil prices pressured profitability . RB IN DT NN , NN IN NN CC JJR JJ NN NNS VBD NN .
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The industry 's chemical profits also declined because excess capacity has depressed prices . DT NN POS NN NNS RB VBD IN JJ NN VBZ JJ NNS .
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Gasoline margins may rebound this quarter , some industry officials say , but they believe chemical margins could worsen . NN NNS MD VB DT NN , DT NN NNS VBP , CC PRP VBP NN NNS MD VB .
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American Petrofina Inc. , a Dallas-based integrated oil company , yesterday said its third-quarter earnings declined by more than half . NNP NNP NNP , DT JJ VBN NN NN , NN VBD PRP$ JJ NNS VBN IN JJR IN NN .
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Fina blamed lower chemical prices , reduced gasoline margins and refinery maintenance shutdowns . NNP VBD JJR NN NNS , VBN NN NNS CC NN NN NNS .
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It said net income dropped to $ 15.1 million , or 98 cents a share , from $ 35.2 million , or $ 2.66 a share . PRP VBD JJ NN VBD TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC $ CD DT NN .
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Sales rose 2.2 % to $ 711.9 million from $ 696.1 million . NNS VBD CD NN TO $ CD CD IN $ CD CD .
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Amoco 's refining and marketing profit in the quarter fell to $ 134 million from $ 319 million . NNP POS NN CC NN NN IN DT NN VBD TO $ CD CD IN $ CD CD .
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Chemical earnings declined by one-third to $ 120 million last year 's robust levels . JJ NNS VBN IN NN TO $ CD CD JJ NN POS JJ NNS .
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Amoco 's domestic oil and natural gas operations recorded a profit of $ 104 million in the quarter compared with a loss of $ 5 million , `` primarily on the strength of higher crude oil prices , '' said Chairman Richard M. Morrow . NNP POS JJ NN CC JJ NN NNS VBD DT NN IN $ CD CD IN DT NN VBN IN DT NN IN $ NN CD , `` RB IN DT NN IN JJR JJ NN NNS , '' VBD NNP NNP NNP NNP .
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Amoco also sharply boosted natural-gas output , part of it from properties acquired from Tenneco Inc. last year . NNP RB RB VBD NN NN , NN IN PRP IN NNS VBN IN NNP NNP JJ NN .
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But foreign exploration and production earnings fell sharply , to $ 12 million from $ 95 million . CC JJ NN CC NN NNS VBD RB , TO $ CD CD IN $ CD CD .
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Higher oil prices were n't enough to offset a roughly $ 20 million charge related to a 10 % reduction in Amoco 's Canadian work force as well as increased exploration expenses . JJR NN NNS VBD RB RB TO VB DT RB $ CD CD NN VBN TO DT CD NN NN IN NNP POS JJ NN NN RB RB IN VBN NN NNS .
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For the nine months , Amoco said that net income fell to $ 1.29 billion from $ 1.69 billion but if unusual items are excluded , operations produced essentially flat results . IN DT CD NNS , NNP VBD IN JJ NN VBD TO $ CD CD IN $ CD CD CC IN JJ NNS VBP VBN , NNS VBN RB JJ NNS .
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Revenue rose 12 % to $ 19.93 billion from $ 17.73 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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James F. Gero , former chairman and chief executive officer of Varo Inc. , and Richard J. Hatchett III , a Dallas investment banker , were elected directors of this medical-products concern , boosting the board to seven members . NNP NNP NNP , JJ NN CC JJ JJ NN IN NNP NNP , CC NNP NNP NNP NNP , DT NNP NN NN , VBD VBN NNS IN DT NNS VBP , VBG DT NN TO CD NNS .
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For retailers , Christmas , not Halloween , promises to be this year 's spookiest season . IN NNS , NNP , RB NNP , VBZ TO VB DT NN POS JJS NN .
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Many retailers fear a price war will erupt if cash-strapped companies such as Campeau Corp. slash tags to spur sales . JJ NNS VBP DT NN NN MD VB IN JJ NNS JJ IN NNP NNP VB NNS TO VB NNS .
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Concerns about the stock market , doubts about the economy in general and rising competition from catalog companies also haunt store operators . NNS IN DT NN NN , VBZ IN DT NN IN JJ CC VBG NN IN NN NNS RB VBP NN NNS .
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`` Profits at Christmas could be under attack for every retailer , '' asserts Norman Abramson , president and chief operating officer of Clothestime Inc. , an off-price chain . `` NNS IN NNP MD VB IN NN IN DT NN , '' VBZ NNP NNP , NN CC JJ VBG NN IN NNP NNP , DT JJ NN .
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Even if there is n't any widespread discounting , the outlook for industry profits is n't good . RB IN EX VBZ RB DT JJ NN , DT NN IN NN NNS VBZ RB JJ .
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Management Horizons forecasts a 1.4 % profit decline for non-auto retailers this year , after annual drops that averaged 4.5 % in 1988 and 1987 . NNP NNP VBZ DT CD NN NN NN IN JJ NNS DT NN , IN JJ NNS WDT VBD CD NN IN CD CC CD .
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`` For the last two and a half years , retailing has been in a mild recession , '' says Carl Steidtmann , chief economist at the Columbus , Ohio , consulting firm . `` IN DT JJ CD CC DT NN NNS , NN VBZ VBN IN DT JJ NN , '' VBZ NNP NNP , JJ NN IN DT NNP , NNP , NN NN .
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This year , many stores are entering the Christmas season in turmoil : Bonwit Teller and B. Altman parent L.J. Hooker Corp. is operating under Chapter 11 of the federal Bankruptcy Code ; B.A.T Industries PLC 's healthy Saks Fifth Avenue and Marshall Field 's chains are on the auction block ; Campeau 's Bloomingdale 's is also on the block . DT NN , JJ NNS VBP VBG DT NNP NN IN NN : NNP NNP CC NNP NNP NN NNP NNP NNP VBZ VBG IN NN CD IN DT JJ NNP NNP : NNP NNP NNP POS JJ NNP NNP NNP CC NNP NNP POS NNS VBP IN DT NN NN : NNP POS NNP POS VBZ RB IN DT NN .
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Industry observers expect a wide divergence in performance . NN NNS VBP DT JJ NN IN NN .
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Stores in a state of confusion are likely to fare poorly , and to lose customers to stable chains such as Limited Inc. , May Department Stores Co. and Dillard Department Stores Inc. , which should do well . NNS IN DT NN IN NN VBP JJ TO VB RB , CC TO VB NNS TO JJ NNS JJ IN NNP NNP , NNP NNP NNP NNP CC NNP NNP NNP NNP , WDT MD VB RB .
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`` There are going to be very clear winners and very clear losers , '' says Cynthia Turk , a Touche Ross & Co. retail consultant . `` EX VBP VBG TO VB RB JJ NNS CC RB JJ NNS , '' VBZ NNP NNP , DT NNP NNP CC NNP JJ NN .
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Says Mr. Steidtmann : `` I 'm looking for a bi-polar Christmas . '' VBZ NNP NNP : `` PRP VBP VBG IN DT JJ NNP . ''
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Economists expect general merchandise sales in the fourth quarter to rise 4.5 % to 6 % from year-ago figures . NNS VBP JJ NN NNS IN DT JJ NN TO VB CD NN TO CD NN IN JJ NNS .
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But Mr. Steidtmann predicts that healthy stores hawking mostly apparel could ring up gains of as much as 25 % to 30 % . CC NNP NNP VBZ IN JJ NNS VBG JJ NN MD VB IN NNS IN RB JJ IN CD NN TO CD NN .
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Troubled chains could see their sales drop as much as 8 % , he believes , as managers distracted by fears about the future allow their stores to get sloppy . JJ NNS MD VB PRP$ NNS NN RB JJ IN CD NN , PRP VBZ , IN NNS VBN IN NNS IN DT NN VB PRP$ NNS TO VB JJ .
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Thin merchandise selections at the most troubled chains are also expected to hurt sales . JJ NN NNS IN DT RBS JJ NNS VBP RB VBN TO VB NNS .
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Catalog companies are likely to pose a bigger threat to all stores this year , particularly in December . NN NNS VBP JJ TO VB DT JJR NN TO DT VBZ DT NN , RB IN NNP .
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More than 200 catalog outfits are promoting a low-cost Federal Express service that guarantees pre-Christmas delivery of orders made by a certain date . RBR IN CD NN NN VBP VBG DT JJ NNP NNP NN IN NNS JJ NN IN NNS VBN IN DT JJ NN .
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`` Traditionally , consumers were concerned about ordering after the first of December because they did n't believe they would get it by Christmas , '' says Adam Strum , chairman of the Wine Enthusiast Inc. , which sells wine cellars and accessories through the mail . `` RB , NNS VBD VBN IN VBG IN DT JJ IN NNP IN PRP VBD RB VB PRP MD VB PRP IN NNP , '' VBZ NNP NNP , NN IN DT NNP NNP NNP , WDT VBZ NN NNS CC NNS IN DT NN .
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Using Federal Express delivery last year , Mr. Strum says , `` December was our biggest month . '' VBG NNP NNP NN JJ NN , NNP NNP VBZ , `` NNP VBD PRP$ JJS NN . ''
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Even Sears , Roebuck & Co. is getting into the act , offering for the first time to have Federal Express deliver toys ordered by Dec. 20 from its Wish Book catalog . RB NNP , NNP CC NNP VBZ VBG IN DT NN , NN IN DT JJ NN TO VB NNP NNP VB NNS VBN IN NNP CD IN PRP$ VB NNP NN .
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K mart Corp. Chairman Joseph E. Antonini summed up his outlook for the Christmas season as `` not troublesome . '' NNP NNP NNP NNP NNP NNP NNP VBD IN PRP$ NN IN DT NNP NN IN `` RB JJ . ''
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He 's not predicting a blockbuster , but he is `` more optimistic than three months ago '' because employment remains strong and inflation low . PRP VBZ RB VBG DT NN , CC PRP VBZ `` RBR JJ IN CD NNS RB '' IN NN VBZ JJ CC NN JJ .
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Other retailers are also preparing for a ho-hum holiday . JJ NNS VBP RB VBG IN DT JJ NN .
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Philip M. Hawley , chairman of Carter Hawley Hale Stores Inc. , expects sales at department stores open at least a year to rise a modest 3 % to 5 % over last year 's totals , both for his company and the industry in general . NNP NNP NNP , NN IN NNP NNP NNP NNP NNP , VBZ NNS IN NN NNS JJ IN JJS DT NN TO VB DT JJ CD NN TO VB NN IN JJ NN POS VBZ , DT IN PRP$ NN CC DT NN IN NN .
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`` I 'm not looking for a runaway Christmas at all , '' he says . `` PRP VBP RB VBG IN DT JJ NNP IN DT , '' PRP VBZ .
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`` It is n't a real boom holiday season in our eyes , '' says Woolworth Corp. Chairman Harold E. Sells , `` but it is n't going to be a bust either . '' `` PRP VBZ RB DT JJ NN NN NN IN PRP$ NNS , '' VBZ NNP NNP NNP NNP NNP NNP , `` CC PRP VBZ RB VBG TO VB DT NN RB . ''
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Mr. Sells expects fourth-quarter sales at his company -- which besides Woolworth stores includes Kinney and Foot Locker shoe stores and other specialty chains -- to rise `` pretty much in line '' with its year-to-date increases of between 8 % and 9 % . NNP NNP VBZ JJ NNS IN PRP$ NN : WDT IN NNP NNS VBZ NNP CC NNP NNP NN NNS CC JJ NN NNS : TO VB `` RB JJ IN NN '' IN PRP$ JJ NNS IN IN CD NN CC CD NN .
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The estimate includes the results of new stores . DT NN VBZ DT NNS IN JJ NNS .
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A consumer poll conducted in early September by Leo J. Shapiro & Associates , a market researcher based in Chicago , also suggests a modest holiday . DT NN NN VBN IN JJ NNP IN NNP NNP NNP CC NNPS , DT NN NN VBN IN NNP , RB VBZ DT JJ NN .
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Of the 450 survey respondents , 35 % said they expect to spend less buying Christmas gifts this year than last year , while 28 % said they expect to spend more and 37 % said their gift budget would stay the same . IN DT CD NN NNS , CD NN VBD PRP VBP TO VB JJR VBG NNP NNS DT NN IN JJ NN , IN CD NN VBD PRP VBP TO VB JJR CC CD NN VBD PRP$ NN NN MD VB DT JJ .
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The results are almost identical to Shapiro 's September 1988 numbers . DT NNS VBP RB JJ TO NNP POS NNP CD NNS .
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Retailers could get a boost this year from the calendar . NNS MD VB DT NN DT NN IN DT NN .
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Christmas falls on a Monday , creating a big last-minute weekend opportunity for stores . NNP VBZ IN DT NNP , VBG DT JJ JJ NN NN IN NNS .
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Most will stay open late Saturday night and open their doors again Sunday . JJS MD VB JJ JJ NNP NN CC JJ PRP$ NNS RB NNP .
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But many consumers probably will use the extra time to put off some purchasing until the last minute . CC JJ NNS RB MD VB DT JJ NN TO VB IN DT NN IN DT JJ NN .
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`` What you 'll hear as we get into December is that sales are sluggish , '' predicts Woolworth 's Mr. Sells . `` WP PRP MD VB IN PRP VBP IN NNP VBZ IN NNS VBP JJ , '' VBZ NNP POS NNP NNP .
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`` The week ending the 24th is going to save the entire month for everyone . `` DT NN VBG DT NN VBZ VBG TO VB DT JJ NN IN NN .
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The Spanish author Camilo Jose Cela won the Nobel Prize for literature yesterday , a surprising choice , but given the Swedish Academy 's past perversities , hardly the most undeserved and ridiculous accolade handed out by the awarding committee . DT JJ NN NNP NNP NNP VBD DT NNP NNP IN NN NN , DT JJ NN , CC VBN DT NNP NNP POS JJ NNS , RB DT RBS JJ CC JJ NN VBD IN IN DT VBG NN .
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In Spain , anyway , the 73-year-old Mr. Cela enjoys some renown for the novels and travel books he wrote during the parched Franco years , the everyday poverty and stagnant atmosphere of which he described in brutally direct , vivid prose , beginning with `` The Family of Pascal Duarte '' -LRB- 1942 -RRB- . IN NNP , RB , DT NNP NNP NNP VBZ DT NN IN DT NNS CC NN NNS PRP VBD IN DT VBN NNP NNS , DT JJ NN CC JJ NN IN WDT PRP VBD IN RB JJ , JJ NN , VBG IN `` DT NNP IN NNP NNP '' ( CD ) .
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Unlike other writers who either battled the fascists during the Civil War , or left Spain when Franco triumphed , Mr. Cela fought briefly on the general 's side , no doubt earning with his war wound some forbearance when he went on to depict a country with a high population of vagabonds , murderers and rural idiots trudging aimlessly through a dried-out land . IN JJ NNS WP DT VBD DT NNS IN DT NNP NNP , CC VBD NNP WRB NNP VBD , NNP NNP VBD NN IN DT NN POS NN , DT NN VBG IN PRP$ NN NN DT NN WRB PRP VBD IN TO VB DT NN IN DT JJ NN IN NNS , NNS CC JJ NNS VBG RB IN DT JJ NN .
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Still , it was in Argentine editions that his countrymen first read his story of Pascal Duarte , a field worker who stabbed his mother to death and has no regrets as he awaits his end in a prison cell : `` Fate directs some men down the flower-bordered path , and others down the road bordered with thistles and prickly pears . RB , PRP VBD IN JJ NNS IN PRP$ NNS JJ VB PRP$ NN IN NNP NNP , DT NN NN WP VBD PRP$ NN TO NN CC VBZ DT VBZ IN PRP VBZ PRP$ NN IN DT NN NN : `` NNP VBZ DT NNS IN DT JJ NN , CC NNS IN DT NN VBN IN NNS CC JJ NNS .
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The lucky ones gaze out at life with serene eyes and smile with a face of innocence at their perfumed happiness . DT JJ NNS VBP IN IN NN IN JJ NNS CC NN IN DT NN IN NN IN PRP$ JJ NN .
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The others endure the hot sun of the plains and scowl like cornered wild beasts . '' DT NNS VBP DT JJ NN IN DT NNS CC VBP IN VBN JJ NNS . ''
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Mr. Cela himself was one of the lucky ones , his fortunes steadily increasing over the decades he spent putting out some 70 travelogues , novels , short story collections and poetry . NNP NNP PRP VBD CD IN DT JJ NNS , PRP$ NNS RB VBG IN DT NNS PRP VBD VBG RP DT CD NNS , NNS , JJ NN NNS CC NN .
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These days , he is as known for his flamboyant tastes and the youthful muse who shares his life as he is for his books . DT NNS , PRP VBZ IN VBN IN PRP$ JJ NNS CC DT JJ NN WP VBZ PRP$ NN IN PRP VBZ IN PRP$ NNS .
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The man who wore out his shoes wandering around Guadalajara in 1958 , describing in his travel book `` Viaje a la Alcarria '' how he scrounged for food and stayed in squalid inns , now tours Spain in a Rolls-Royce . DT NN WP VBD RP PRP$ NNS VBG IN NNP IN CD , VBG IN PRP$ NN NN `` NNP DT FW NNP '' WRB PRP VBD IN NN CC VBD IN JJ NNS , RB VBZ NNP IN DT NNP .
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Of his 10 novels , `` The Hive '' -LRB- 1951 -RRB- , full of sharp vignettes of Madrid life and centered on a cafe run by Dona Rosa , a foul-mouthed , broad-based woman with blackened little teeth encrusted in filth , used to be available in English , translated by J.M. Cohen and published by Ecco Press , which now no doubt regrets relinquishing its copyright . IN PRP$ CD NNS , `` DT NNP '' ( CD ) , JJ IN JJ NNS IN NNP NN CC VBN IN DT NN NN IN NNP NNP , DT JJ , JJ NN IN VBN JJ NNS VBN IN NN , VBN TO VB JJ IN NNP , VBN IN NNP NNP CC VBN IN NNP NNP , WDT RB DT NN VBZ VBG PRP$ NN .
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Here is an excerpt : RB VBZ DT NN :
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The lonely woman walks on in the direction of the Plaza de Alonso Martinez . DT JJ NN VBZ IN IN DT NN IN DT NNP FW NNP NNP .
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Two men have a conversation behind one of the windows of the cafe on the corner of the boulevard . CD NNS VBP DT NN IN CD IN DT NNS IN DT NN IN DT NN IN DT NN .
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Both are young , one twenty odd , the other thirty odd . DT VBP JJ , CD CD JJ , DT JJ CD JJ .
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The older one looks like a member of the jury for a literary award , the younger one looks like a novelist . DT JJR CD VBZ IN DT NN IN DT NN IN DT JJ NN , DT JJR CD VBZ IN DT NN .
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It is evident that their conversation runs more or less on the following lines : `` I 've submitted the manuscript of my novel under the title ` Teresa de Cepeda , ' and in it I 've treated a few neglected aspects of that eternal problem which ... '' PRP VBZ JJ IN PRP$ NN VBZ JJR CC JJR IN DT VBG NNS : `` PRP VBP VBN DT NN IN PRP$ NN IN DT NN `` NNP FW NNP , POS CC IN PRP PRP VBP VBN DT RB VBN NNS IN DT JJ NN WDT : ''
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`` Oh , yes . `` UH , UH .
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Will you pour me a drop of water , if you do n't mind ? '' MD PRP VB PRP DT NN IN NN , IN PRP VBP RB VB . ''
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`` With pleasure . `` IN NN .
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I 've revised it several times and I think I may say with pride that there is not a single discordant word in the whole text . '' PRP VBP VBN PRP JJ NNS CC PRP VBP PRP MD VB IN NN IN EX VBZ RB DT JJ JJ NN IN DT JJ NN . ''
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`` How interesting . '' `` WRB JJ . ''
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`` I think so . `` PRP VBP RB .
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I do n't know the quality of the works my colleagues have sent in , but in any case I feel confident that good sense and honest judgment ... '' PRP VBP RB VB DT NN IN DT NNS PRP$ NNS VBP VBN IN , CC IN DT NN PRP VBP JJ IN JJ NN CC JJ NN : ''
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`` Rest assured , we proceed with exemplary fairness . '' `` VB VBN , PRP VBP IN JJ NN . ''
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`` I do n't doubt it for a moment . `` PRP VBP RB VB PRP IN DT NN .
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It does not matter if one is defeated , provided the work that gets the award has unmistakable qualities . PRP VBZ RB VB IN CD VBZ VBN , VBD DT NN WDT VBZ DT NN VBZ JJ NNS .
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What 's so discouraging is ... '' WP VBZ RB VBG VBZ : ''
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In passing the window , Senorita Elvira gives them a smile -- simply out of habit . IN VBG DT NN , NNP NNP VBZ PRP DT NN : RB IN IN NN .
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Ashland Oil Inc. said it will take after-tax charges of $ 78 million , or $ 1.40 a share , in its fiscal fourth quarter , ended Sept. 30 . NNP NNP NNP VBD PRP MD VB JJ NNS IN $ CD CD , CC $ CD DT NN , IN PRP$ JJ JJ NN , VBN NNP CD .
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Because of the charge , Ashland expects to report a loss for the fourth quarter and `` significantly lower results '' for fiscal 1989 . IN IN DT NN , NNP VBZ TO VB DT NN IN DT JJ NN CC `` RB JJR NNS '' IN JJ CD .
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The oil refiner said it will report fiscal fourth quarter and 1989 results next week . DT NN NN VBD PRP MD VB JJ JJ NN CC CD NNS JJ NN .
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The company earned $ 66 million , or $ 1.19 a share , on revenue of $ 2.1 billion in the year-ago fourth quarter . DT NN VBD $ CD CD , CC $ CD DT NN , IN NN IN $ CD CD IN DT JJ JJ NN .
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For fiscal 1988 , Ashland had net of $ 224 million , or $ 4.01 a share , on revenue of $ 7.8 billion . IN JJ CD , NNP VBD NN IN $ CD CD , CC $ CD DT NN , IN NN IN $ CD CD .
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Both revenue figures exclude excise taxes . DT NN NNS VBP NN NNS .
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The charges consist of : a $ 25 million after-tax charge to cover cost overruns in Ashland 's Riley Consolidated subsidiary ; a previously announced $ 38 million after-tax charge resulting from a $ 325 million settlement with National Iranian Oil Co. and a $ 15 million after-tax charge from the previously announced sale of its Ashland Technology Corp. subsidiary . DT NNS VBP IN : DT $ CD CD JJ NN TO VB NN NNS IN NNP POS NNP NNP NN : DT RB VBN $ CD CD JJ NN VBG IN DT $ CD CD NN IN NNP NNP NNP NNP CC DT $ CD CD JJ NN IN DT RB VBN NN IN PRP$ NNP NNP NNP NN .
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Ashland expects that sale to be complete next year . NNP VBZ DT NN TO VB JJ JJ NN .
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The charge for the Riley subsidiary is for expected costs to correct problems with certain bed boilers built for utilities . DT NN IN DT NNP NN VBZ IN VBN NNS TO VB NNS IN JJ NN NNS VBN IN NNS .
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The charge will be added to $ 20 million in reserves established a year ago to cover the cost overruns . DT NN MD VB VBN TO $ CD CD IN NNS VBD DT NN RB TO VB DT NN NNS .
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When President Bush arrives here next week for a hemispheric summit organized to commemorate a century of Costa Rican democracy , will he be able to deliver a credible message in the wake of the Panamanian fiasco ? WRB NNP NNP VBZ RB JJ NN IN DT JJ NN VBN TO VB DT NN IN NNP JJ NN , MD PRP VB JJ TO VB DT JJ NN IN DT NN IN DT JJ NN .
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Undoubtedly Mr. Bush will be praised by some Latin leaders prone to pay lip service to nonintervention , while they privately encourage more assertive U.S. action to remove Gen. Manuel Noriega and safeguard their countries from a Sandinista onslaught . RB NNP NNP MD VB VBN IN DT NNP NNS JJ TO VB NN NN TO NN , IN PRP RB VBP RBR JJ NNP NN TO VB NNP NNP NNP CC VB PRP$ NNS IN DT NNP NN .
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The Panamanian affair is only the tip of a more alarming iceberg . DT JJ NN VBZ RB DT NN IN DT RBR JJ NN .
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It originates in a Bush administration decision not to antagonize the U.S. Congress and avoid , at all costs , being accused of meddling in the region . PRP VBZ IN DT NNP NN NN RB TO VB DT NNP NNP CC VB , IN DT NNS , VBG VBN IN VBG IN DT NN .
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The result has been a dangerous vacuum of U.S. leadership , which leaves Central America open to Soviet adventurism . DT NN VBZ VBN DT JJ NN IN NNP NN , WDT VBZ NNP NNP JJ TO JJ NN .
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`` The -LCB- influence of the -RCB- U.S. is not being felt in Central America ; Washington 's decisions do not respond to a policy , and are divorced from reality , '' says Fernando Volio , a Costa Rican congressman and former foreign minister . `` DT ( NN IN DT ) NNP VBZ RB VBG VBN IN NNP NNP : NNP POS NNS VBP RB VB TO DT NN , CC VBP VBN IN NN , '' VBZ NNP NNP , DT NNP JJ NN CC JJ JJ NN .
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The disarray of the Bush administration 's Latin diplomacy was evident in the failure of the Organization of American States to condemn categorically Gen. Noriega . DT NN IN DT NNP NN POS NNP NN VBD JJ IN DT NN IN DT NNP IN NNP NNPS TO VB RB NNP NNP .
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Faced with this embarrassment , U.S. diplomats expressed confidence that the influential Rio Group of South American nations , which gathered last week in Peru , would take a stronger posture toward the Panamanian dictator . VBN IN DT NN , NNP NNS VBD NN IN DT JJ NNP NNP IN JJ JJ NNS , WDT VBD JJ NN IN NNP , MD VB DT JJR NN IN DT JJ NN .
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But other than a few slaps on the wrist , Gen. Noriega went unpunished by that body , too ; he was not even singled out in the closing statement . CC JJ IN DT JJ NNS IN DT NN , NNP NNP VBD JJ IN DT NN , RB : PRP VBD RB RB VBD IN IN DT VBG NN .
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Now Mr. Bush will come to Costa Rica and encounter Nicaraguan strongman Daniel Ortega , eager for photo opportunities with the U.S. president . RB NNP NNP MD VB TO NNP NNP CC NN JJ NN NNP NNP , JJ IN NN NNS IN DT NNP NN .
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The host , Costa Rican President Oscar Arias , did not invite Chile , Cuba , Panama or Haiti to the summit , which was to be restricted to democracies . DT NN , NNP NNP NNP NNP NNP , VBD RB VB NNP , NNP , NNP CC NNP TO DT NN , WDT VBD TO VB VBN TO NNS .
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However , Mr. Ortega was included . RB , NNP NNP VBD VBN .
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Formally upgrading the Sandinistas to a democratic status was an initiative harshly criticized in the Costa Rican press . RB VBG DT NNPS TO DT JJ NN VBD DT NN RB VBD IN DT NNP JJ NN .
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Even Carlos Manuel Castillo -- the presidential candidate for Mr. Arias 's National Liberation Party -- made public his opposition to the presence of Nicaragua `` in a democratic festivity . '' RB NNP NNP NNP : DT JJ NN IN NNP NNP POS NNP NNP NNP : VBN JJ PRP$ NN TO DT NN IN NNP `` IN DT JJ NN . ''
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Nevertheless , the Bush administration agreed to the dubious arrangement in July , a few weeks before the Central American presidents met in Tela , Honduras , to discuss a timetable for disbanding the anti-Sandinista rebels . RB , DT NNP NN VBD TO DT JJ NN IN NNP , DT JJ NNS IN DT NNP JJ NNS VBD IN NNP , NNP , TO VB DT NN IN VBG DT JJ NNS .
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According to officials in Washington , the State Department hoped that by pleasing President Arias , it would gain his support to postpone any decision on the Contras until after Mr. Ortega 's promises of democratic elections were tested next February . VBG TO NNS IN NNP , DT NNP NNP VBD IN IN JJ NNP NNP , PRP MD VB PRP$ NN TO VB DT NN IN DT NNPS IN IN NNP NNP POS NNS IN JJ NNS VBD VBN JJ NNP .
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However , relying on an ardent critic of the Reagan administration and the Contra movement for help in delaying the disarming of the Contras was risky business . RB , VBG IN DT JJ NN IN DT NNP NN CC DT NNP NN IN NN IN VBG DT VBG IN DT NNPS VBD JJ NN .
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And even some last-minute phone calls that Mr. Bush made -LRB- at the behest of some conservative U.S. senators -RRB- to enlist backing for the U.S. position failed to stop the march of Mr. Arias 's agenda . CC RB DT JJ NN NNS IN NNP NNP VBD ( IN DT NN IN DT JJ NNP NNS ) TO VB VBG IN DT NNP NN VBD TO VB DT NN IN NNP NNP POS NN .
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Prior to this episode , Sen. Christopher Dodd -LRB- D. , Conn. -RRB- , sensing an open field , undertook a personal diplomatic mission through Central America to promote an early disbanding of the rebels . RB TO DT NN , NNP NNP NNP ( NNP , NNP ) , VBG DT JJ NN , VBD DT JJ JJ NN IN NNP NNP TO VB DT JJ NN IN DT NNS .
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Visiting Nicaragua , he praised the Sandinistas for their electoral system and chided the Bush administration for not rewarding the Sandinistas . VBG NNP , PRP VBD DT NNPS IN PRP$ JJ NN CC VBD DT NNP NN IN RB JJ DT NNPS .
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In Honduras , where the Contras are a hot political issue , he promised to help unblock some $ 70 million in assistance withheld due to the failure of local agencies to comply with conditions agreed upon with Washington . IN NNP , WRB DT NNPS VBP DT JJ JJ NN , PRP VBD TO VB VB DT $ CD CD IN NN VBD JJ TO DT NN IN JJ NNS TO VB IN NNS VBD IN IN NNP .
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Aid was also the gist of the talks Sen. Dodd had with Salvadoran President Alfredo Cristiani ; Mr. Cristiani 's government is very much at the mercy of U.S. largess and is forced to listen very carefully to Sen. Dodd 's likes and dislikes . NNP VBD RB DT NN IN DT NNS NNP NNP VBD IN NNP NNP NNP NNP : NNP NNP POS NN VBZ RB RB IN DT NN IN NNP NN CC VBZ VBN TO VB RB RB TO NNP NNP POS VBZ CC VBZ .
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It was therefore not surprising that close allies of the U.S. , virtually neglected by the Bush administration , ordered the Nicaraguan insurgents dismantled by December , long before the elections . PRP VBD RB RB JJ WDT VBP NNS IN DT NNP , RB VBN IN DT NNP NN , VBD DT JJ NNS VBN IN NNP , RB IN DT NNS .
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Fittingly , the Tela Accords were nicknamed by Hondurans `` the Dodd plan . '' RB , DT NNP NNPS VBD VBN IN NNS `` DT NNP NN . ''
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The individual foreign policy carried out by U.S. legislators adds to a confusing U.S. performance that has emboldened Soviet initiatives in Central America . DT JJ JJ NN VBD IN IN NNP NNS VBZ TO DT JJ NNP NN WDT VBZ VBN JJ NNS IN NNP NNP .
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On Oct. 3 , following conversations with Secretary of State James Baker , Soviet Foreign Minister Eduard Shevardnadze arrived in Managua to acclaim `` Nicaragua 's great peace efforts . '' IN NNP CD , VBG NNS IN NNP IN NNP NNP NNP , NNP NNP NNP NNP NNP VBD IN NNP TO VB `` NNP POS JJ NN NNS . ''
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There , Mr. Shevardnadze felt legitimized to unveil his own peace plan : The U.S.S.R. would prolong a suspension of arms shipments to Nicaragua after the February election if the U.S. did likewise with its allies in Central America . EX , NNP NNP VBD VBN TO VB PRP$ JJ NN NN : DT NNP MD VB DT NN IN NNS NNS TO NNP IN DT NNP NN IN DT NNP VBD RB IN PRP$ NNS IN NNP NNP .
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He also called on Nicaragua 's neighbors to accept a `` military equilibrium '' guaranteed by both superpowers . PRP RB VBD IN NNP POS NNS TO VB DT `` JJ NN '' VBN IN DT NNS .
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The Pentagon claims that in spite of Moscow 's words , East bloc weapons continue to flow into Nicaragua through Cuba at near-record levels . DT NNP NNS IN IN NN IN NNP POS NNS , NNP NN NNS VBP TO VB IN NNP IN NNP IN JJ NNS .
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Since Mr. Shevardnadze 's proposals followed discussions with Mr. Baker , speculations arose that the Bush administration was seeking an accommodation with the Soviets in Central America . IN NNP NNP POS NNS VBD NNS IN NNP NNP , NNS VBD IN DT NNP NN VBD VBG DT NN IN DT NNPS IN NNP NNP .
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This scheme would fit the Arias Plan , which declared a false symmetry between Soviet military aid to the Sandinista dictatorship and that provided by Washington to freely elected governments . DT NN MD VB DT NNP NNP , WDT VBD DT JJ NN IN JJ JJ NN TO DT NNP NN CC DT VBD IN NNP TO RB VBN NNS .
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Furthermore , it is also likely to encourage those on Capitol Hill asking for cuts in the assistance to El Salvador if President Cristiani does not bend to demands of the Marxist guerrillas . RB , PRP VBZ RB JJ TO VB DT IN NNP NNP VBG IN NNS IN DT NN TO NNP NNP IN NNP NNP VBZ RB VB TO NNS IN DT JJ NNS .
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The sad condition of U.S. policy in Central America is best depicted by the recent end to U.S. sponsorship of Radio Costa Rica . DT JJ NN IN NNP NN IN NNP NNP VBZ RBS VBN IN DT JJ NN TO NNP NN IN NNP NNP NNP .
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In 1984 , the Costa Rican government requested help to establish a radio station in the northern part of the country , flooded by airwaves of Sandinista propaganda . IN CD , DT NNP JJ NN VBD VB TO VB DT NN NN IN DT JJ NN IN DT NN , VBN IN NNS IN NNP NN .
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Recovering radiophonic sovereignty was the purpose of Radio Costa Rica , funded by the U.S. and affiliated with the Voice of America -LRB- VOA -RRB- . VBG JJ NN VBD DT NN IN NNP NNP NNP , VBN IN DT NNP CC VBN IN DT NNP IN NNP ( NNP ) .
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A few months ago , the Bush administration decided to stop this cooperation , leaving Radio Costa Rica operating on a shoestring . DT JJ NNS RB , DT NNP NN VBD TO VB DT NN , VBG NNP NNP NNP VBG IN DT NN .
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According to news reports , the abrupt termination was due to fears that VOA transmissions could interfere with the peace process . VBG TO NN NNS , DT JJ NN VBD JJ TO NNS IN NNP NNS MD VB IN DT NN NN .
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In the meantime , Russia gave Nicaragua another powerful radio transmitter , which has been installed in the city of Esteli . IN DT NN , NNP VBD NNP DT JJ NN NN , WDT VBZ VBN VBN IN DT NN IN NNP .
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It is capable of reaching the entire Caribbean area and deep into North America . PRP VBZ JJ IN VBG DT JJ NNP NN CC JJ IN NNP NNP .
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Perhaps its loud signal may generate some awareness of the Soviet condominium being created in the isthmus thanks to U.S. default . RB PRP$ JJ NN MD VB DT NN IN DT JJ NN VBG VBN IN DT NN NNS TO NNP NN .
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The Soviet entrenchment in Nicaragua is alarming for Costa Rica , a peaceful democracy without an army . DT JJ NN IN NNP VBZ JJ IN NNP NNP , DT JJ NN IN DT NN .
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Questioned in Washington about what would happen if his much-heralded peace plan would fail , President Arias voiced expectations of direct U.S. action . VBN IN NNP IN WP MD VB IN PRP$ JJ NN NN MD VB , NNP NNP VBD NNS IN JJ NNP NN .
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A poll conducted in July by a Gallup affiliate showed that 64 % of Costa Ricans believe that if their country is militarily attacked by either Nicaragua or Panama , the U.S. will come to its defense . DT NN VBN IN NNP IN DT NNP NN VBD IN CD NN IN NNP NNS VBP IN IN PRP$ NN VBZ RB VBN IN DT NNP CC NNP , DT NNP MD VB TO PRP$ NN .
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But in the light of events in Panama , where the U.S. has such clear strategic interests , waiting for the Delta Force may prove to be a dangerous gambit . CC IN DT NN IN NNS IN NNP , WRB DT NNP VBZ JJ JJ JJ NNS , VBG IN DT NNP NNP MD VB TO VB DT JJ NN .
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Mr. Daremblum is a lawyer and a columnist for La Nacion newspaper . NNP NNP VBZ DT NN CC DT NN IN NNP NNP NN .
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Holiday Corp. said net income jumped 89 % , partly on the strength of record operating income in its gaming division . NNP NNP VBD JJ NN VBD CD NN , RB IN DT NN IN NN VBG NN IN PRP$ NN NN .
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Separately , the hotel and gambling giant said it was proceeding with plans to make a tender offer and solicit consents with respect to approximately $ 1.4 billion of its publicly traded debt . RB , DT NN CC NN NN VBD PRP VBD VBG IN NNS TO VB DT NN NN CC VB NNS IN NN TO RB $ CD CD IN PRP$ RB VBN NN .
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That debt is part of the $ 2.1 billion of Holiday debt that Bass PLC of Britain said it would retire or assume when it agreed to buy the Holiday Inn business in August . DT NN VBZ NN IN DT $ CD CD IN NNP NN IN NNP NNP IN NNP VBD PRP MD VB CC VB WRB PRP VBD TO VB DT NNP NNP NN IN NNP .
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Holiday said third-quarter earnings rose to $ 39.8 million , or $ 1.53 a share , from $ 21 million , or 84 cents a share , a year earlier . NNP VBD JJ NNS VBD TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Results for the quarter included $ 19.2 million in pretax gains from property transactions , including the sale of one Embassy Suites hotel , and $ 3.5 million of nonrecurring costs associated with the acquisition of the Holiday Inn business by Bass . NNS IN DT NN VBD $ CD CD IN JJ NNS IN NN NNS , VBG DT NN IN CD NNP NNPS NN , CC $ CD CD IN VBG NNS VBN IN DT NN IN DT NNP NNP NN IN NNP .
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Holiday said operating income related to gaming increased 4.5 % to a record $ 61.4 million from $ 58.8 million a year earlier . NNP VBD VBG NN VBN TO NN VBN CD NN TO DT NN $ CD CD IN $ CD CD DT NN RBR .
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The jump reflected record results in Las Vegas , Nev. , and Atlantic City , N.J. , as well as a full quarter 's results from Harrah 's Del Rio in Laughlin , Nev . DT NN VBD NN NNS IN NNP NNP , NNP , CC NNP NNP , NNP , RB RB IN DT JJ NN POS NNS IN NNP POS NNP NNP IN NNP , NNP .
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Third-quarter revenue rose 2.7 % to $ 433.5 million from $ 422.1 million . JJ NN VBD CD NN TO $ CD CD IN $ CD CD .
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For the nine months , earnings fell 2.9 % to $ 99.1 million , or $ 3.86 a share , from $ 102.1 million , or $ 4.10 a share , a year earlier . IN DT CD NNS , NNS VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Revenue dropped 1.6 % to $ 1.21 billion from $ 1.23 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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The tender offer and consent solicitation will be made to debtholders in December . DT NN NN CC NN NN MD VB VBN TO NNS IN NNP .
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In effect , Holiday is asking holders for permission for Bass to buy their debt . IN NN , NNP VBZ VBG NNS IN NN IN NNP TO VB PRP$ NN .
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Holiday said Salomon Brothers Inc. has been retained to act as the dealer-manager and financial adviser in connection with the offer and solicitation . NNP VBD NNP NNP NNP VBZ VBN VBN TO VB IN DT NN CC JJ NN IN NN IN DT NN CC NN .
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The debt issues involved and the proposed consent fees and cash tender offer prices -LRB- expressed per $ 1,000 of principal amount -RRB- are as follows : 10 1\/2 % senior notes due 1994 at 101 % ; 11 % subordinated debt due 1999 at 102 % ; 9 3\/8 % notes due 1993 at 100 % ; and 8 3\/8 % notes due 1996 at 95.25 % . DT NN NNS VBN CC DT VBN NN NNS CC NN NN NN NNS ( VBN IN $ CD IN JJ NN ) VBP IN VBZ : CD CD NN JJ NNS JJ CD IN CD NN : CD NN VBD NN JJ CD IN CD NN : CD CD NN NNS JJ CD IN CD NN : CC CD CD NN NNS JJ CD IN CD NN .
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Holiday said its 15 % notes due 1992 also will be included in the tender offer and consent solicitation at a price to be determined by Holiday prior to the commencement of the offer . NNP VBD PRP$ CD NN NNS JJ CD RB MD VB VBN IN DT NN NN CC NN NN IN DT NN TO VB VBN IN NNP RB TO DT NN IN DT NN .
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The television units of Paramount Communications Inc. and MCA Inc. are exploring the possibility of offering prime-time programming to independent stations two nights a week , industry executives say . DT NN NNS IN NNP NNP NNP CC NNP NNP VBP VBG DT NN IN NN JJ NN TO JJ NNS CD NNS DT NN , NN NNS VBP .
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Although such a venture would n't match the `` fourth network '' created by News Corp. 's Fox Broadcasting Co. , MCA and Paramount may have similar ambitions . IN JJ DT NN MD RB VB DT `` JJ NN '' VBN IN NNP NNP POS NNP NNP NNP , NNP CC NNP MD VB JJ NNS .
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Fox , which also owns six TV stations , provides programs three nights a week to those and other affiliates . NNP , WDT RB VBZ CD NN NNS , VBZ NNS CD NNS DT NN TO DT CC JJ NNS .
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Paramount Domestic TV and MCA TV formed a joint venture last month , named Premier Advertiser Sales , to sell advertising in programs syndicated by both companies , such as `` Star Trek : the Next Generation , '' `` Charles in Charge '' and `` Friday the 13th : the Series . '' NNP JJ NN CC NNP NN VBD DT JJ NN JJ NN , VBN NNP NNP NNS , TO VB NN IN NNS VBN IN DT NNS , JJ IN `` NNP NNP : DT NNP NNP , '' `` NNP IN NNP '' CC `` NNP DT JJ : DT NNP . ''
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A spokeswoman for Paramount said the company does n't comment on speculation . DT NN IN NNP VBD DT NN VBZ RB VB IN NN .
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Calls to Shelly Schwab , president of MCA TV , were n't returned . NNS TO NNP NNP , NN IN NNP NN , VBD RB VBN .
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The two companies , like Fox , already have their own TV stations . DT CD NNS , IN NNP , RB VBP PRP$ JJ NN NNS .
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MCA owns WWOR in New York and Paramount last month agreed to purchase a 79 % stake in the TVX Broadcast Group from Salomon Inc. in a deal valued at $ 140 million . NNP VBZ NNP IN NNP NNP CC NNP JJ NN VBD TO VB DT CD NN NN IN DT NNP NNP NNP IN NNP NNP IN DT NN VBN IN $ CD CD .
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TVX owns five stations , including WTXF , a Fox affiliate , in Philadelphia . NNP VBZ CD NNS , VBG NNP , DT NNP NN , IN NNP .
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One broadcasting executive familiar with the project said the co-venture would target stations affiliated with Fox because Fox has the desirable independent stations in most of the key cities . CD NN NN JJ IN DT NN VBD DT NN MD VB NNS VBN IN NNP IN NNP VBZ DT JJ JJ NNS IN RBS IN DT JJ NNS .
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Currently , Fox supplies programs on Saturdays , Sundays and Mondays , although the company plans to expand to other weeknights . RB , NNP NNS NNS IN NNPS , NNPS CC NNPS , IN DT NN NNS TO VB TO JJ NNS .
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Jamie Kellner , president of Fox Broadcasting , said , `` We believe the partnership of Fox , its affiliates and advertisers is succeeding and will continue to grow . '' NNP NNP , NN IN NNP NNP , VBD , `` PRP VBP DT NN IN NNP , PRP$ NNS CC NNS VBZ VBG CC MD VB TO VB . ''
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Another Fox official , who declined to be identified , said Fox was n't pleased by the possible Paramount-MCA venture into prime-time programming . DT NNP NN , WP VBD TO VB VBN , VBD NNP VBD RB VBN IN DT JJ JJ NN IN JJ NN .
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`` To make the venture work , they would need Fox affiliates , '' he said . `` TO VB DT NN NN , PRP MD VB NNP NNS , '' PRP VBD .
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`` We spent a lot of time and money in building our group of stations , '' he said , adding that Fox does n't `` appreciate '' another company attempting to usurp its station lineup . `` PRP VBD DT NN IN NN CC NN IN VBG PRP$ NN IN NNS , '' PRP VBD , VBG IN NNP VBZ RB `` VB '' DT NN VBG TO VB PRP$ NN NN .
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Fox said it plans to offer its stations movies , theatrical and made-for-TV ventures , probably on Wednesdays , sometime next year . NNP VBD PRP VBZ TO VB PRP$ NNS NNS , JJ CC JJ NNS , RB IN NNS , RB JJ NN .
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It is also planning another night of original series . PRP VBZ RB VBG DT NN IN JJ NN .
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Paramount and MCA , according to the broadcasting executive , plan to offer theatrical movies produced separately by Paramount and MCA for Wednesdays and perhaps a block of original shows Fridays . NNP CC NNP , VBG TO DT NN NN , NN TO VB JJ NNS VBN RB IN NNP CC NNP IN NNS CC RB DT NN IN JJ NNS NNPS .
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The executive said Paramount and MCA have also held discussions with Chris-Craft Industries ' broadcasting unit , which owns five independent stations in cities such as Los Angeles , San Francisco and Portland , Ore . DT NN VBD NNP CC NNP VBP RB VBN NNS IN NNP NNPS POS NN NN , WDT VBZ CD JJ NNS IN NNS JJ IN NNP NNP , NNP NNP CC NNP , NNP .
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A Chris-Craft station manager said there have been no formal talks . DT NNP NN NN VBD EX VBP VBN DT JJ NNS .
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`` I think it 's to Fox 's advantage to be associated with the Paramount-MCA venture , '' said Michael Conway , station manager of WTXF , the TVX station that is a Fox affiliate . `` PRP VBP PRP VBZ TO NNP POS NN TO VB VBN IN DT JJ NN , '' VBD NNP NNP , NN NN IN NNP , DT NNP NN WDT VBZ DT NNP NN .
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Mr. Conway said the Fox shows appearing on nights when Paramount-MCA shows would n't be offered could be promoted on the programs produced by Paramount-MCA . NNP NNP VBD DT NNP VBZ VBG IN NNS WRB JJ NNS MD RB VB VBN MD VB VBN IN DT NNS VBN IN JJ .
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Michael Fisher , general manager of KTXL , a Fox affiliate in Sacramento , Calif. , said , `` The real question is whether the Paramount-MCA offering is practical . NNP NNP , JJ NN IN NNP , DT NNP NN IN NNP , NNP , VBD , `` DT JJ NN VBZ IN DT JJ NN VBZ JJ .
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It is n't ... . PRP VBZ RB : .
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Why would I consider giving up Fox , a proven commodity , '' for an unknown venture ? WRB MD PRP VB VBG IN NNP , DT VBN NN , '' IN DT JJ NN .
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Fox attracts a young audience with shows such as `` Married ... With Children , '' its most successful series . NNP VBZ DT JJ NN IN VBZ JJ IN `` VBN : IN NNS , '' PRP$ RBS JJ NN .
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Banco Popular de Puerto Rico and BanPonce Corp. -- agreed to merge in a transaction valued at $ 324 million . NNP NNP FW NNP NNP CC NNP NNP : VBD TO VB IN DT NN VBN IN $ CD CD .
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Under the agreement , BanPonce stockholders will be able to exchange each of their shares for either shares in the new entity or cash . IN DT NN , NNP NNS MD VB JJ TO VB DT IN PRP$ NNS IN DT NNS IN DT JJ NN CC NN .
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In each case , the exchange is valued at $ 56.25 a share . IN DT NN , DT NN VBZ VBN IN $ CD DT NN .
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The two companies , both based in San Juan , will form a bank holding company with assets of just over $ 9 billion . DT CD NNS , DT VBN IN NNP NNP , MD VB DT NN VBG NN IN NNS IN RB IN $ CD CD .
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The holding company will be called BanPonce Corp . DT VBG NN MD VB VBN NNP NNP .
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The primary subsidiary will be the combined banking operations of the two companies and will be known as Banco Popular de Puerto Rico . DT JJ NN MD VB DT VBN NN NNS IN DT CD NNS CC MD VB VBN IN NNP NNP FW NNP NNP .
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Rafael Carrion Jr. , chairman of Banco Popular , will be the chairman of the holding company . NNP NNP NNP , NN IN NNP NNP , MD VB DT NN IN DT VBG NN .
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Alberto M. Paracchini , currently chairman of BanPonce , will serve as president of the bank holding company and chairman of the subsidiary . NNP NNP NNP , JJ NN IN NNP , MD VB IN NN IN DT NN VBG NN CC NN IN DT NN .
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Banco Popular originally proposed the merger in July , in a cash and stock transaction valued at $ 50 a share , or about $ 293 million . NNP NNP RB VBD DT NN IN NNP , IN DT NN CC NN NN VBN IN $ CD DT NN , CC RB $ CD CD .
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BanPonce reacted cooly at first , but appeared to be won over , analysts said , by Banco Popular 's assurances that it wanted only a friendly transaction . NNP VBD RB IN JJ , CC VBD TO VB VBN IN , NNS VBD , IN NNP NNP POS NNS IN PRP VBD RB DT JJ NN .
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`` Banco Popular just kept waiting , '' said Edward Thompson , a vice president and analyst at Thomson BankWatch Inc. in New York . `` NNP NNP RB VBD VBG , '' VBD NNP NNP , DT NN NN CC NN IN NNP NNP NNP IN NNP NNP .
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`` They got a transaction that 's good for both companies . '' `` PRP VBD DT NN WDT VBZ JJ IN DT NNS . ''
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The two banks appear to be a good fit . DT CD NNS VBP TO VB DT JJ NN .
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BanPonce caters to a more affluent customer , while Banco Popular has always had a large presence among middle-income and lower-income markets . NNP VBZ TO DT RBR JJ NN , IN NNP NNP VBZ RB VBN DT JJ NN IN JJ CC JJ NNS .
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The merger should also allow the companies to reduce costs by combining operations in many locations in Puerto Rico . DT NN MD RB VB DT NNS TO VB NNS IN VBG NNS IN JJ NNS IN NNP NNP .
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`` They 're often right across the street from one another , '' Mr. Thompson said . `` PRP VBP RB NN IN DT NN IN CD DT , '' NNP NNP VBD .
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Richard Carrion , who is currently president and chief executive officer of Banco Popular , said the merger will result in a `` larger and stronger locally based bank . '' NNP NNP , WP VBZ JJ NN CC JJ JJ NN IN NNP NNP , VBD DT NN MD VB IN DT `` JJR CC RBR RB VBN NN . ''
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Mr. Carrion , who will now serve as president and chief executive officer of the subsidiary bank , added : `` We 'll be able to better compete with large foreign banks . NNP NNP , WP MD RB VB IN NN CC JJ JJ NN IN DT NN NN , VBD : `` PRP MD VB JJ TO JJR VB IN JJ JJ NNS .
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It makes sense from a strategic standpoint . '' PRP VBZ NN IN DT JJ NN . ''
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The newly merged company will have 165 branches in Puerto Rico and 27 branches outside of the island . DT RB VBN NN MD VB CD NNS IN NNP NNP CC CD NNS IN IN DT NN .
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The banks said they do n't expect the merger to face any regulatory hurdles . DT NNS VBD PRP VBP RB VB DT NN TO VB DT JJ NNS .
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Mr. Carrion said the merger should be completed in six to nine months . NNP NNP VBD DT NN MD VB VBN IN CD TO CD NNS .
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Hit by higher costs and lower sales , Caterpillar Inc. said third-quarter earnings tumbled 43 % and full-year earnings will trail last year 's results . VBN IN JJR NNS CC JJR NNS , NNP NNP VBD JJ NNS VBD CD NN CC JJ NNS MD VB JJ NN POS NNS .
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The construction equipment maker said third-quarter profit fell to $ 108 million , or $ 1.07 a share , from $ 190 million , or $ 1.87 a share , a year earlier . DT NN NN NN VBD JJ NN VBD TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Sales dropped 6 % to $ 2.58 billion from $ 2.74 billion , reflecting eight fewer business days in the latest quarter . NNS VBD CD NN TO $ CD CD IN $ CD CD , VBG CD JJR NN NNS IN DT JJS NN .
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The company , which is in a costly modernization program , said earnings were hurt by higher start-up and new program costs , increased costs of materials , higher wages and an $ 11 million provision for bad debts in Latin America . DT NN , WDT VBZ IN DT JJ NN NN , VBD NNS VBD VBN IN JJR JJ CC JJ NN NNS , VBN NNS IN NNS , JJR NNS CC DT $ CD CD NN IN JJ NNS IN NNP NNP .
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In announcing a 1989 capital spending plan of $ 950 million early this year , Caterpillar said full-year earnings would be flat compared with last year 's $ 616 million , or $ 6.07 a share . IN VBG DT CD NN NN NN IN $ CD CD JJ DT NN , NNP VBD JJ NNS MD VB RB VBN IN JJ NN POS $ CD CD , CC $ CD DT NN .
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But yesterday , the company said this year 's profit will be lower . CC NN , DT NN VBD DT NN POS NN MD VB JJR .
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It did n't say by how much . PRP VBD RB VB IN WRB JJ .
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Suffering from a downturn in heavy truck production that cut orders for its engines , Caterpillar also said it will indefinitely lay off about 325 workers in the Peoria area and temporarily shut its plant in York , Pa. , for two weeks in both November and December . VBG IN DT NN IN JJ NN NN WDT VBP NNS IN PRP$ NNS , NNP RB VBD PRP MD RB VB IN IN CD NNS IN DT NNP NN CC RB VBN PRP$ NN IN NNP , NNP , IN CD NNS IN DT NNP CC NNP .
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For the first nine months of the year , Caterpillar said earnings fell 14 % to $ 390 million , or $ 3.85 a share , from $ 453 million , or $ 4.46 a share , a year earlier . IN DT JJ CD NNS IN DT NN , NNP VBD NNS VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Sales rose to $ 8.19 billion from $ 7.65 billion . NNS VBD TO $ CD CD IN $ CD CD .
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Millicom Inc. said it is one of two companies to receive a license to introduce and operate a cellular mobile telephone system in Pakistan . NNP NNP VBD PRP VBZ CD IN CD NNS TO VB DT NN TO VB CC VB DT JJ JJ NN NN IN NNP .
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The market during the start-up is estimated at 25,000 subscribers . DT NN IN DT NN VBZ VBN IN CD NNS .
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A spokeswoman for Millicom , a telecommunications company , said she did n't know the value of the contract . DT NN IN NNP , DT NNS NN , VBD PRP VBD RB VB DT NN IN DT NN .
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Cable & Wireless PLC of Britain won the other license . NNP CC NNP NNP IN NNP VBD DT JJ NN .
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Millicom said it would build and operate the system in Pakistan with Comvik International AB , part of the Kinnevik group of Sweden , and Arfeen International , Pakistan . NNP VBD PRP MD VB CC VB DT NN IN NNP IN NNP NNP NNP , NN IN DT NNP NN IN NNP , CC NNP NNP , NNP .
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B.A.T Industries PLC won overwhelming shareholder approval for a defensive restructuring to fend off a # 13.35 billion -LRB- $ 21.23 billion -RRB- takeover bid from Sir James Goldsmith . NNP NNP NNP VBD JJ NN NN IN DT JJ NN TO VB IN DT # CD CD ( $ CD CD ) NN NN IN NNP NNP NNP .
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At a shareholders ' meeting in London , the tobacco , financial-services and retailing giant said it received 99.9 % approval from voting holders for plans to spin off about $ 6 billion in assets . IN DT NNS POS NN IN NNP , DT NN , NNS CC NN NN VBD PRP VBD CD NN NN IN NN NNS IN NNS TO VB IN RB $ CD CD IN NNS .
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B.A.T aims to sell such U.S. retailing units as Marshall Field and Saks Fifth Avenue and float its big paper and British retailing businesses via share issues to existing holders . NNP VBZ TO VB JJ NNP NN NNS IN NNP NNP CC NNP NNP NNP CC VB PRP$ JJ NN CC JJ NN NNS IN NN NNS TO VBG NNS .
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Proceeds will help pay for a planned buy-back of 10 % , or about 153 million , of its shares and a 50 % dividend increase . NNS MD VB VB IN DT VBN NN IN CD NN , CC IN CD CD , IN PRP$ NNS CC DT CD NN NN NN .
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B.A.T yesterday started its share buy-back . NN NN VBD PRP$ NN NN .
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The company said it acquired 2.5 million shares for 785 pence -LRB- $ 12.48 -RRB- each , or a total of # 19.6 million -LRB- $ 31.2 million -RRB- , from its broker , Barclays de Zoete Wedd . DT NN VBD PRP VBD CD CD NNS IN CD NN ( $ CD ) DT , CC DT NN IN # CD CD ( $ CD CD ) , IN PRP$ NN , NNP FW NNP NNP .
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The share buy-back plan is likely to underpin B.A.T 's share price . DT NN NN NN VBZ JJ TO VB NNP POS NN NN .
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B.A.T said it may make more equity purchases until the close of business today , depending on market conditions , but will cease further purchases until Nov. 22 , when it releases third-quarter results . NNP VBD PRP MD VB JJR NN NNS IN DT NN IN NN NN , VBG IN NN NNS , CC MD VB JJ NNS IN NNP CD , WRB PRP VBZ JJ NNS .
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B.A.T shares rose 29 pence to 783 pence on London 's stock exchange yesterday . NN NNS VBD CD NN TO CD NN IN NNP POS NN NN NN .
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Shareholder approval sets the stage for a lengthy process of restructuring that might not be completed until next year 's second half . NN NN VBZ DT NN IN DT JJ NN IN NN WDT MD RB VB VBN IN JJ NN POS JJ NN .
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Before the recent tumult in global financial markets , B.A.T officials , holders and analysts had expected a substantial part of the restructuring to be complete by the end of the first half . IN DT JJ NN IN JJ JJ NNS , NNP NNS , NNS CC NNS VBD VBN DT JJ NN IN DT NN TO VB JJ IN DT NN IN DT JJ NN .
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`` We are not in any hurry to sell '' Saks , Marshall Field or B.A.T 's other U.S. retail properties , said Chairman Patrick Sheehy . `` PRP VBP RB IN DT NN TO VB '' NNP , NNP NNP CC NNP POS JJ NNP JJ NNS , VBD NNP NNP NNP .
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`` This is n't a distress sale . `` DT VBZ RB DT NN NN .
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We are determined to get good prices . '' PRP VBP VBN TO VB JJ NNS . ''
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Company officials say the flotations of the paper and British retailing businesses are likely only after the disposals of the U.S. retailing assets . NN NNS VBP DT NNS IN DT NN CC JJ NN NNS VBP JJ RB IN DT NNS IN DT NNP NN NNS .
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Meanwhile , Sir James still is pursuing efforts to gain U.S. insurance regulators ' approval for a change in control of B.A.T 's Farmers Group Inc. unit . RB , NNP NNP RB VBZ VBG NNS TO VB NNP NN NNS POS NN IN DT NN IN NN IN NNP POS NNP NNP NNP NN .
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The Anglo-French financier has indicated he intends to bid again for B.A.T if he receives approval . DT JJ NN VBZ VBN PRP VBZ TO VB RB IN NNP IN PRP VBZ NN .
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Hasbro Inc. , the nation 's largest toy maker , reported third-quarter earnings increased 73 % from a year earlier on a 9.4 % sales gain , reflecting improved margins . NNP NNP , DT NN POS JJS NN NN , VBD JJ NNS VBN CD NN IN DT NN RBR IN DT CD NN NNS NN , VBG VBN NNS .
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Hasbro said it had net income of $ 31.3 million , or 53 cents a share , up from $ 18.1 million , or 31 cents a share , a year earlier , when it took a pretax charge of $ 10 million after dropping development of an interactive video entertainment system . NNP VBD PRP VBD JJ NN IN $ CD CD , CC CD NNS DT NN , IN IN $ CD CD , CC CD NNS DT NN , DT NN RBR , WRB PRP VBD DT JJ NN IN $ CD CD IN VBG NN IN DT JJ NN NN NN .
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Revenue rose to $ 403 million from $ 368.4 million . NN VBD TO $ CD CD IN $ CD CD .
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The company cited sales gains at its Milton Bradley and Playskool units and in its international business for the increase in revenue . DT NN VBD NNS NNS IN PRP$ NNP NNP CC NNP NNS CC IN PRP$ JJ NN IN DT NN IN NN .
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Alan G. Hassenfeld , chairman and chief executive , added that Hasbro 's new line of battery-powered racing cars , called Record Breakers , and its acquisition of Cabbage Patch Kids , Scrabble and other lines from Coleco Industries Inc. puts the company `` in a good position as we enter the Christmas buying season . '' NNP NNP NNP , NN CC JJ NN , VBD IN NNP POS JJ NN IN JJ NN NNS , VBN NNP NNP , CC PRP$ NN IN NNP NNP NNP , NNP CC JJ NNS IN NNP NNP NNP VBZ DT NN `` IN DT JJ NN IN PRP VBP DT NNP VBG NN . ''
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For the first nine months of the year , Hasbro 's net income rose 33 % to $ 68.2 million , or $ 1.15 a share , from $ 51.3 million , or 88 cents a share , on a 3.1 % increase in revenue to $ 992.7 million from $ 963 million a year earlier . IN DT JJ CD NNS IN DT NN , NNP POS JJ NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC CD NNS DT NN , IN DT CD NN NN IN NN TO $ CD CD IN $ CD CD DT NN RBR .
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Reebok International Ltd. posted a 35 % increase in third-quarter net income despite a slight decline in sales . NNP NNP NNP VBD DT CD NN NN IN JJ JJ NN IN DT JJ NN IN NNS .
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The athletic footwear maker said net rose to $ 49.9 million , or 44 cents a share , from $ 37.1 million , or 32 cents a share , a year earlier . DT JJ NN NN VBD NN VBD TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Sales declined 3 % to $ 524.5 million from $ 539.4 million . NNS VBD CD NN TO $ CD CD IN $ CD CD .
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Paul Fireman , Reebok chairman and chief executive officer , said , `` Our gains in earnings provide further evidence that the controls we have put in place and our sales mix are continuing to improve the company 's overall profit performance . '' NNP NNP , NNP NN CC JJ JJ NN , VBD , `` PRP$ NNS IN NNS VBP JJ NN IN DT NNS PRP VBP VBN IN NN CC PRP$ NNS NN VBP VBG TO VB DT NN POS JJ NN NN . ''
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The company said it expects sales to improve due to a number of new products , including a `` pump '' basketball shoe that can be inflated to better fit the foot . DT NN VBD PRP VBZ NNS TO VB JJ TO DT NN IN JJ NNS , VBG DT `` NN '' NN NN WDT MD VB JJ TO JJR VB DT NN .
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In the first nine months , net was $ 140 million , or $ 1.23 a share , on sales of $ 1.44 billion . IN DT JJ CD NNS , NN VBD $ CD CD , CC $ CD DT NN , IN NNS IN $ CD CD .
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Separately , Reebok completed the acquisition of CML Group Inc. 's Boston Whaler unit , a builder of power boats . RB , NNP VBD DT NN IN NNP NNP NNP POS NNP NNP NN , DT NN IN NN NNS .
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CML , Acton , Mass. , had agreed to sell the unit to Reebok for about $ 42 million . NNP , NNP , NNP , VBD VBN TO VB DT NN TO NNP IN RB $ CD CD .
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The agreement also called for Reebok to receive warrants to purchase 400,000 shares of CML common at $ 31.25 a share , exercisable at any time before July 1 , DT NN RB VBD IN NNP TO VB NNS TO VB CD NNS IN NNP JJ IN $ CD DT NN , JJ IN DT NN IN NNP CD ,
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An outside spokesman for CML said the terms were changed to a minor extent but would n't disclose what those changes were . DT JJ NN IN NNP VBD DT NNS VBD VBN TO DT JJ NN CC MD RB VB WP DT NNS VBD .
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Pitney Bowes Inc. directors authorized the company to seek buyers for its Wheeler Group Inc. subsidiary , a direct mail marketer of office supplies . NNP NNP NNP NNS VBD DT NN TO VB NNS IN PRP$ NNP NNP NNP NN , DT JJ NN NN IN NN NNS .
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Pitney Bowes said the decision was based on a long-term analysis of the compatibility of Wheeler Group 's marketing business with other Pitney Bowes operations . NNP NNP VBD DT NN VBD VBN IN DT JJ NN IN DT NN IN NNP NNP POS NN NN IN JJ NNP NNP NNS .
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Pitney Bowes acquired the core of what evolved into Wheeler Group in 1979 by buying Dictaphone Corp . NNP NNP VBD DT NN IN WP VBD IN NNP NNP IN CD IN VBG NNP NNP .
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A spokeswoman would n't comment on whether the company had talked with any potential buyers for the New Hartford , Conn. , unit , which had 1988 sales of about $ 75 million . DT NN MD RB VB IN IN DT NN VBD VBN IN DT JJ NNS IN DT NNP NNP , NNP , NN , WDT VBD CD NNS IN RB $ CD CD .
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She said Wheeler Group was profitable but would n't give figures . PRP VBD NNP NNP VBD JJ CC MD RB VB NNS .
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The spokeswoman said the company does n't have a timetable for the sale , adding that the board 's decision just starts the search for a buyer . DT NN VBD DT NN VBZ RB VB DT NN IN DT NN , VBG IN DT NN POS NN RB VBZ DT NN IN DT NN .
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Separately , Pitney Bowes said third-quarter net income gained 15 % to $ 62 million , or 78 cents a share , from $ 54 million , or 68 cents a share , a year ago . RB , NNP NNP VBD JJ JJ NN VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RB .
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Revenue grew 13 % to $ 734.8 million from $ 650.9 million . NN VBD CD NN TO $ CD CD IN $ CD CD .
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The company said the growth was led by its major operations , particularly mailing , shipping , dictating and facsimile businesses . DT NN VBD DT NN VBD VBN IN PRP$ JJ NNS , RB VBG , VBG , VBG CC NN NNS .
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Steel jackets of a type that may have prevented collapse of the columns of a 1.5-mile stretch of the Nimitz Freeway had been installed on at least a small test section of the double-decker highway last year by California 's Department of Transportation , employees familiar with the project say . NN NNS IN DT NN WDT MD VB VBN NN IN DT NNS IN DT CD NN IN DT NNP NNP VBD VBN VBN IN IN JJS DT JJ NN NN IN DT JJ NN JJ NN IN NNP POS NNP IN NNP , NNS JJ IN DT NN VBP .
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The test project -- which reportedly survived Tuesday 's earthquake -- was a prelude to a state plan to retrofit that critical section of the freeway with the steel casings . DT NN NN : WDT RB VBD NNP POS NN : VBD DT NN TO DT NN NN TO VB IN JJ NN IN DT NN IN DT NN NNS .
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State engineers have made a preliminary finding that it was failure of the concrete columns , wrenched and separated from the double-decker roadbed , that was responsible for the collapse . NN NNS VBP VBN DT JJ NN IN PRP VBD NN IN DT JJ NNS , VBD CC VBN IN DT JJ NN , WDT VBD JJ IN DT NN .
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The failure in Oakland of the freeway segment known as the Cypress structure was the deadliest aspect of the quake , although officials were hopeful yesterday that the death toll there might be significantly lower than the 250 initially feared . DT NN IN NNP IN DT NN NN VBN IN DT NNP NN VBD DT JJS NN IN DT NN , IN NNS VBD JJ NN IN DT NN NN EX MD VB RB JJR IN DT CD RB VBD .
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Sorting out the wreckage is expected to take several days . VBG RP IN NN VBZ VBN TO VB JJ NNS .
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Red tractors gingerly picked at the rubble while jackhammers tried to break up some of the massive slabs of concrete . JJ NNS RB VBD IN DT NN IN NNS VBD TO VB IN DT IN DT JJ NNS IN NN .
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Giant yellow cranes were wheeled up alongside the collapsed segment , preparing to lift off chunks of the debris . NNP JJ NNS VBD VBN IN IN DT VBN NN , VBG TO VB IN NNS IN DT NN .
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In Sacramento , a transportation department spokesman said he could n't immediately confirm or deny existence of the test work . IN NNP , DT NN NN NN VBD PRP MD RB RB VB CC VB NN IN DT NN NN .
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However , he asserted that the department had n't mastered the technology needed to retrofit the entire Cypress structure . RB , PRP VBD IN DT NN VBD RB VBN DT NN VBN TO VB DT JJ NNP NN .
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Moreover , other officials noted , snafus in transportation funding that the state has experienced over the years may have restricted the availability of funds for such a retrofitting , even if it were technologically feasible . RB , JJ NNS VBD , NNS IN NN NN IN DT NN VBZ VBN IN DT NNS MD VB VBN DT NN IN NNS IN JJ DT NN , RB IN PRP VBD RB JJ .
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Knowledgeable employees said the retrofitting , which had n't yet been budgeted , was part of a planned , three-stage reinforcement of the Cypress structure begun by the California transportation department several years ago . JJ NNS VBD DT NN , WDT VBD RB RB VBN VBN , VBD NN IN DT VBN , JJ NN IN DT NNP NN VBN IN DT NNP NN NN JJ NNS RB .
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The Cypress reinforcement project itself was part of an annual effort to shore up structures believed vulnerable to earthquakes . DT NNP NN NN PRP VBD NN IN DT JJ NN TO VB IN NNS VBD JJ TO NNS .
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The state began such work after a 1971 tremblor in Southern California , when numerous bridges collapsed . DT NN VBD JJ NN IN DT CD NN IN NNP NNP , WRB JJ NNS VBD .
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`` We had just finished phase two '' of the Cypress project that involved installing a series of retaining cables designed to prevent sections of the roadway from separating as a result of seismic shock , a state DOT engineer said . `` PRP VBD RB VBN NN CD '' IN DT NNP NN WDT VBD VBG DT NN IN VBG NNS VBN TO VB NNS IN DT NN IN VBG IN DT NN IN JJ NN , DT NN NNP NN VBD .
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After completing installation of the jackets on `` one frame '' of the freeway last year , the state DOT had sent the project over to its Sacramento engineers to draw up a final design . IN VBG NN IN DT NNS IN `` CD NN '' IN DT NN JJ NN , DT NN NNP VBD VBN DT NN IN TO PRP$ NNP NNS TO VB IN DT JJ NN .
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Knowledgeable employees said the project had been stymied somewhat by `` the difficulty of designing '' the jackets . JJ NNS VBD DT NN VBD VBN VBN RB IN `` DT NN IN VBG '' DT NNS .
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The procedure involves encasing the concrete columns with steel , then connecting them more securely to the double-decker roadbed . DT NN VBZ VBG DT JJ NNS IN NN , RB VBG PRP RBR RB TO DT JJ NN .
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The employees also said the project may have been snagged by budgetary concerns . DT NNS RB VBD DT NN MD VB VBN VBN IN JJ NNS .
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One preliminary estimate put the retrofitting cost at as much as $ 50 million . CD JJ NN NN DT NN NN IN RB JJ IN $ CD CD .
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The collapse of the span has provoked surprise and anger among state officials . DT NN IN DT NN VBZ VBN NN CC NN IN NN NNS .
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Gov. George Deukmejian , who said he had been assured by state transportation officials that the structure could withstand an even larger quake , called for an immediate investigation . NNP NNP NNP , WP VBD PRP VBD VBN VBN IN NN NN NNS IN DT NN MD VB DT RB JJR NN , VBN IN DT JJ NN .
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`` I want to know who made the decision that it was safe for 186,000 people to use every day , '' said Richard Katz , a state legislator who is chairman of the California Assembly 's transportation committee . `` PRP VBP TO VB WP VBD DT NN IN PRP VBD JJ IN CD NNS TO VB DT NN , '' VBD NNP NNP , DT NN NN WP VBZ NN IN DT NNP NNP POS NN NN .
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He said he would convene hearings within two weeks . PRP VBD PRP MD VB NNS IN CD NNS .
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The Cypress structure opened in June 1957 , and as such , like many buildings in the San Francisco Bay area , does not meet current building codes requiring considerably more steel support . DT NNP NN VBD IN NNP CD , CC IN JJ , IN JJ NNS IN DT NNP NNP NNP NN , VBZ RB VB JJ NN NNS VBG RB JJR NN NN .
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The northern piers of the span lie in estuarian deposits that were of a type to have liquefied easily during the 1906 quake . DT JJ NNS IN DT NN NN IN NN NNS WDT VBD IN DT NN TO VB VBN RB IN DT CD NN .
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Transportation department officials , however , said they were as surprised as anyone by the Cypress destruction . NN NN NNS , RB , VBD PRP VBD RB VBN IN NN IN DT NNP NN .
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They said previous earthquakes suggested that multiple-column viaducts would stand up well , although they were working on ways to bolster them . PRP VBD JJ NNS VBD IN JJ NNS MD VB IN RB , IN PRP VBD VBG IN NNS TO VB PRP .
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`` Unfortunately , there is only one laboratory for developing techniques to withstand earthquakes , and that is an earthquake , '' said Burch Bachtold , San Francisco district director for the transportation department . `` RB , EX VBZ RB CD NN IN VBG NNS TO VB NNS , CC DT VBZ DT NN , '' VBD NNP NNP , NNP NNP NN NN IN DT NN NN .
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He said : `` We know of no technology that exists anywhere in the world that would allow us to '' reinforce the columns . PRP VBD : `` PRP VBP IN DT NN WDT VBZ RB IN DT NN WDT MD VB PRP TO '' VB DT NNS .
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Financial Corp. of Santa Barbara said it rescheduled to Nov. 29 a special shareholder meeting to vote on a $ 75 million stock-for-debt exchange . NNP NNP IN NNP NNP VBD PRP VBD TO NNP CD DT JJ NN NN TO VB IN DT $ CD CD JJ NN .
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The meeting had been scheduled for Nov. 10 but the company delayed the meeting to allow time for the Securities and Exchange Commission to review the proposal . DT NN VBD VBN VBN IN NNP CD CC DT NN VBD DT NN TO VB NN IN DT NNP CC NNP NNP TO VB DT NN .
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As part of a restructuring announced earlier this year , the company proposed in August to exchange 168 newly issued common shares for each $ 1,000 face value of debt . IN NN IN DT NN VBD RBR DT NN , DT NN VBN IN NNP TO VB CD RB VBN JJ NNS IN DT $ CD NN NN IN NN .
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However , that figure could be revised , Financial Corp. said . RB , DT NN MD VB VBN , NNP NNP VBD .
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Currently , the company has about six million common shares outstanding . RB , DT NN VBZ IN CD CD JJ NNS JJ .
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If all the debt was converted , about 13 million new shares would be issued . IN PDT DT NN VBD VBN , IN CD CD JJ NNS MD VB VBN .
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In composite trading Wednesday on the New York Stock Exchange , Financial Corp. closed at $ 1.125 , unchanged . IN JJ NN NNP IN DT NNP NNP NNP NNP , NNP NNP VBD IN $ CD , JJ .
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The debt consists of $ 50 million of 13 3\/8 % subordinated notes due 1998 , and $ 25 million of 9 % convertible subordinated debentures due 2012 . DT NN VBZ IN $ CD CD IN CD CD NN VBD NNS JJ CD , CC $ CD CD IN CD NN JJ VBN NNS JJ CD .
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Financial Corp. also is proposing to exchange each of its 130,000 outstanding shares of cumulative convertible preferred series A stock for two shares of common . NNP NNP RB VBZ VBG TO VB DT IN PRP$ CD JJ NNS IN JJ JJ JJ NN DT NN IN CD NNS IN NN .
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After years of quarreling over Bonn 's `` Ostpolitik '' , West Germany and the U.S. appear to have shifted onto a united course in Eastern Europe . IN NNS IN VBG IN NNP POS `` NNP '' , NNP NNP CC DT NNP VB TO VB VBN IN DT VBN NN IN NNP NNP .
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Bonn and Washington have taken a leading role in aid for the reformist countries , pledging billions of dollars in fresh credit and forgiving old debt while urging other industrial nations to follow suit . NNP CC NNP VBP VBN DT VBG NN IN NN IN DT NN NNS , VBG NNS IN NNS IN JJ NN CC VBG JJ NN IN VBG JJ JJ NNS TO VB NN .
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Both hope to encourage pressure for change in East bloc countries still ruled by Stalinist holdouts by arranging liberal financial aid and trade benefits for Poland , Hungary and , to a lesser extent , the Soviet Union . DT NN TO VB NN IN NN IN NNP NN NNS RB VBN IN JJ NNS IN VBG JJ JJ NN CC NN NNS IN NNP , NNP CC , TO DT JJR NN , DT NNP NNP .
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West German officials also have the special goal of holding out hope for East Germany 's fledgling reform movement . JJ JJ NNS RB VBP DT JJ NN IN VBG RP NN IN NNP NNP POS NN NN NN .
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`` The change taking place in the Soviet Union , Poland and Hungary has aroused new hope in both German states that reforms will be undertaken in -LCB- East Germany -RCB- , and that relations between the two German states , too , will get better , '' said Foreign Minister Hans-Dietrich Genscher . `` DT NN VBG NN IN DT NNP NNP , NNP CC NNP VBZ VBN JJ NN IN DT JJ NNS IN NNS MD VB VBN IN ( NNP NNP ) , CC IN NNS IN DT CD JJ NNS , RB , MD VB JJR , '' VBD NNP NNP NNP NNP .
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Addressing a conference of the New York-based Institute for East-West Security Studies in Frankfurt yesterday , Mr. Genscher said , `` History will judge us by whether we have taken the opportunities that emerge from these reforms . '' VBG DT NN IN DT NNP JJ NNP IN NNP NNP NNS IN NNP NN , NNP NNP VBD , `` NN MD VB PRP IN IN PRP VBP VBN DT NNS WDT VBP IN DT NNS . ''
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The ultimate aim of Western support for East bloc reforms , he said , is to create `` an equitable and stable peaceful order in Europe from the Atlantic to the Urals . '' DT JJ NN IN JJ NN IN NNP NN NNS , PRP VBD , VBZ TO VB `` DT JJ CC JJ JJ NN IN NNP IN DT NNP TO DT NNPS . ''
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Mr. Genscher and U.S. Secretary of Commerce Robert A. Mosbacher , in separate speeches at the conference , appealed for more Western contributions to economic reforms and business development in Hungary and Poland . NNP NNP CC NNP NNP IN NNP NNP NNP NNP , IN JJ NNS IN DT NN , VBD IN RBR JJ NNS TO JJ NNS CC NN NN IN NNP CC NNP .
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Bonn and Washington are leading supporters of Poland 's request for a $ 1 billion stand-by credit from the International Monetary Fund . NNP CC NNP VBP VBG NNS IN NNP POS NN IN DT $ CD CD JJ NN IN DT NNP NNP NNP .
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`` We want the bold programs of market development and political freedom in Hungary and in Poland to succeed . `` PRP VBP DT JJ NNS IN NN NN CC JJ NN IN NNP CC IN NNP TO VB .
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We are prepared to support those changes , '' said Mr. Mosbacher . PRP VBP VBN TO VB DT NNS , '' VBD NNP NNP .
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U.S. curbs on the exports of sensitive technology to East bloc countries will remain in place , however . NNP NNS IN DT NNS IN JJ NN TO NNP NN NNS MD VB IN NN , RB .
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Meanwhile , the U.S. House of Representatives yesterday approved an $ 837.5 million aid package for Poland and Hungary that more than doubles the amount President Bush had requested . RB , DT NNP NNP IN NNPS NN VBD DT $ CD CD NN NN IN NNP CC NNP IN JJR IN VBZ DT NN NNP NNP VBD VBN .
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The package was brought to the House just 15 days after it was introduced , indicating Congress 's eagerness to reward Poland and Hungary for their moves toward democracy and freemarket economic reforms . DT NN VBD VBN TO DT NNP RB CD NNS IN PRP VBD VBN , VBG NNP POS NN TO VB NNP CC NNP IN PRP$ NNS IN NN CC JJ JJ NNS .
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The legislation , approved 345-47 and sent to the Senate , establishes two enterprise funds , to be governed by independent nonprofit boards , which will make loans and investments in new business ventures in Hungary and Poland . DT NN , VBD JJ CC VBD TO DT NNP , VBZ CD NN NNS , TO VB VBN IN JJ JJ NNS , WDT MD VB NNS CC NNS IN JJ NN NNS IN NNP CC NNP .
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The Polish fund would be seeded with $ 160 million , the Hungarian fund with $ 40 million . DT JJ NN MD VB VBN IN $ CD CD , DT JJ NN IN $ CD CD .
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In addition , a group of 24 industrialized countries , including the U.S. and Japan and coordinated by the European Community Commission , has promised Poland and Hungary trade advice and a line of credit equivalent to $ 1.11 billion through the European Investment Bank , while the EC plans $ 222 million in direct aid . IN NN , DT NN IN CD VBN NNS , VBG DT NNP CC NNP CC VBN IN DT NNP NNP NNP , VBZ VBN NNP CC NNP NN NN CC DT NN IN NN NN TO $ CD CD IN DT NNP NNP NNP , IN DT NNP VBZ $ CD CD IN JJ NN .
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When Chancellor Helmut Kohl travels to Poland Nov. 9 , he is expected to take with him a promise of three billion West German marks -LRB- $ 1.6 billion -RRB- in new credit guarantees for industrial projects . WRB NNP NNP NNP VBZ TO NNP NNP CD , PRP VBZ VBN TO VB IN PRP DT NN IN CD CD JJ JJ NNS ( $ CD CD ) IN JJ NN NNS IN JJ NNS .
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Last week , Bonn agreed to reschedule 2.5 billion marks in Polish debt that came due last year . JJ NN , NNP VBD TO VB CD CD NNS IN JJ NN WDT VBD JJ JJ NN .
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In addition , a one billion mark credit dating from 1974 is to be written off . IN NN , DT CD CD NN NN VBG IN CD VBZ TO VB VBN RB .
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Poland 's plan to switch to a free-market economy by 1991 is hampered by a foreign debt load of $ 39.2 billion . NNP POS NN TO VB TO DT JJ NN IN CD VBZ VBN IN DT JJ NN NN IN $ CD CD .
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West Germany also has increased its credit guarantees to Hungary by 500 million marks to 1.5 billion marks as the emerging democratic state rushes through its own economic reforms , including a broad privatization of state-owned industry and tax incentives for industrial investment . NNP NNP RB VBZ VBN PRP$ NN NNS TO NNP IN CD CD NNS TO CD CD NNS IN DT VBG JJ NN VBZ IN PRP$ JJ JJ NNS , VBG DT JJ NN IN JJ NN CC NN NNS IN JJ NN .
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An additional 500 million marks in credit-backing was promised by the West German state governments of Bavaria and Baden-Wuerttemberg . DT JJ CD CD NNS IN NN VBD VBN IN DT JJ JJ NN NNS IN NNP CC NNP .
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Deutsche Bank AG , which last year arranged a three billion mark credit for the Soviet Union , is now moving to become the first West German bank to set up independent business offices in Hungary and Poland as they shift to free-market economies . NNP NNP NNP , WDT JJ NN VBD DT CD CD NN NN IN DT NNP NNP , VBZ RB VBG TO VB DT JJ JJ JJ NN TO VB IN JJ NN NNS IN NNP CC NNP IN PRP VBP TO JJ NNS .
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A maxim of Frankfurt banking holds that wherever Deutsche Bank goes , other West German banks follow . DT NN IN NNP NN VBZ IN WRB NNP NNP VBZ , JJ JJ JJ NNS VBP .
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Indeed , at least four other West German banks are believed to be making inquiries . RB , IN JJS CD JJ JJ JJ NNS VBP VBN TO VB VBG NNS .
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Mattel Inc. said third-quarter net income rose 73 % , to $ 38 million , or 76 cents a share , from $ 21.9 million , or 45 cents a share , a year ago . NNP NNP VBD JJ JJ NN VBD CD NN , TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RB .
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Revenue rose 34 % to $ 410 million from $ 306.6 million a year earlier . NN VBD CD NN TO $ CD CD IN $ CD CD DT NN RBR .
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`` Mattel 's world-wide volume has grown 25 % in a climate of relatively flat industry sales , '' said John W. Amerman , chairman . `` NNP POS JJ NN VBZ VBN CD NN IN DT NN IN RB JJ NN NNS , '' VBD NNP NNP NNP , NN .
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He said the toy company 's `` prospects for a strong fourth quarter '' are also good . PRP VBD DT NN NN POS `` NNS IN DT JJ JJ NN '' VBP RB JJ .
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Mattel attributed the jump in quarter net to strong world-wide sales of its Barbie doll , Hot Wheels cars , Disney toys and other well-known toy lines . NNP VBD DT NN IN NN JJ TO JJ JJ NNS IN PRP$ NNP NN , NNP NNP NNS , NNP NNS CC JJ JJ NN NNS .
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The company also cited retail trade and consumer demand for new products introduced this year , such as Cherry Merry Muffin and Turtle Tots . DT NN RB VBD JJ NN CC NN NN IN JJ NNS VBD DT NN , JJ IN NNP NNP NNP CC NNP NNP .
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For the nine months , Mattel net more than doubled to $ 58.9 million , or $ 1.19 a share , from $ 25.4 million , or 53 cents a share , a year ago . IN DT CD NNS , NNP JJ RBR IN VBN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RB .
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Revenue rose 25 % , to $ 877.6 million , from $ 702.4 million . NN VBD CD NN , TO $ CD CD , IN $ CD CD .
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Mattel said the company 's sale of rights to land and buildings at its Hawthorne , Calif. , headquarters resulted in a $ 13 million charge to third-quarter operating profit . NNP VBD DT NN POS NN IN NNS TO VB CC NNS IN PRP$ NNP , NNP , NN VBD IN DT $ CD CD NN TO JJ NN NN .
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The charge did n't affect net for the quarter as it was offset by tax benefits . DT NN VBD RB VB JJ IN DT NN IN PRP VBD VBN IN NN NNS .
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Mattel has purchased a new headquarters building in El Segundo , Calif. , which it will occupy by the end of next year . NNP VBZ VBN DT JJ NN NN IN NNP NNP , NNP , WDT PRP MD VB IN DT NN IN JJ NN .
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Democracy can be cruel to politicians : Sometimes it forces them to make choices . NNP MD VB JJ TO NNS : RB PRP VBZ PRP TO VB NNS .
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Now that the Supreme Court opened the door on the subject of abortion , politicians are squinting under the glare of democratic choice . RB IN DT NNP NNP VBD DT NN IN DT NN IN NN , NNS VBP VBG IN DT NN IN JJ NN .
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Their discomfort is a healthy sign for the rest of us . PRP$ NN VBZ DT JJ NN IN DT NN IN PRP .
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Republicans are squinting most painfully , at least at first , which is only fair because they 've been shielded the most . NNS VBP VBG RBS RB , IN JJS IN JJ , WDT VBZ RB JJ IN PRP VBP VBN VBN DT RBS .
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So long as abortion was a question for litigation , not legislation , Republicans could find political security in absolutism . RB RB IN NN VBD DT NN IN NN , RB NN , NNPS MD VB JJ NN IN NN .
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They could attract one-issue voters by adopting the right-to-life movement 's strongest position , even as pro-choice Republicans knew this mattered little on an issue monopolized by the court . PRP MD VB JJ NNS IN VBG DT JJ NN POS JJS NN , RB IN JJ NNPS VBD DT VBD JJ IN DT NN VBN IN DT NN .
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Now it matters . RB PRP VBZ .
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Much of Washington thought it detected George Bush in a characteristic waffle on abortion the past week . RB IN NNP VBD PRP VBD NNP NNP IN DT JJ NN IN NN DT JJ NN .
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Only a month ago he 'd warned Congress not to pass legislation to pay for abortions in cases of rape or incest . RB DT NN RB PRP MD VBD NNP RB TO VB NN TO VB IN NNS IN NNS IN NN CC NN .
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Last Friday , after Congress passed it anyway , he hinted he was looking for compromise . NNP NNP , IN NNP VBD PRP RB , PRP VBD PRP VBD VBG IN NN .
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Was the man who once was pro-choice , but later pro-life , converting again ? VBD DT NN WP RB VBD JJ , CC RB JJ , VBG RB .
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In fact , Mr. Bush 's dance was more wiggle than waffle . IN NN , NNP NNP POS NN VBD JJR NN IN NN .
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Pro-life advocates say the White House never wavered over the veto . JJ NNS VBP DT NNP NNP RB VBD IN DT NN .
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Christopher Smith -LRB- R. , N.J. -RRB- , a pro-life leader in the House , suggested a compromise that would have adapted restrictive language from rape and incest exceptions in the states . NNP NNP ( NNP , NNP ) , DT JJ NN IN DT NNP , VBD DT NN WDT MD VB VBN JJ NN IN NN CC NN NNS IN DT NNS .
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The White House , never eager for a fight , was happy to try , which is why George Bush said he was looking for `` flexibility '' last week . DT NNP NNP , RB JJ IN DT NN , VBD JJ TO VB , WDT VBZ WRB NNP NNP VBD PRP VBD VBG IN `` NN '' JJ NN .
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When Democrats refused to budge , pro-life Republicans met at the White House with Chief of Staff John Sununu on Monday , and Mr. Bush quickly signaled a veto . WRB NNPS VBD TO VB , JJ NNPS VBD IN DT NNP NNP IN NNP IN NNP NNP NNP IN NNP , CC NNP NNP RB VBD DT NN .
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Amid charges of `` timidity '' on Panama and elsewhere , the president was n't about to offend his most energetic constituency . IN NNS IN `` NN '' IN NNP CC RB , DT NN VBD RB IN TO VB PRP$ RBS JJ NN .
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The GOP doubters were in Congress . DT NNP NNS VBD IN NNP .
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In last week 's House vote , 41 Republicans defected . IN JJ NN POS NNP NN , CD NNPS VBD .
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After the vote , Connecticut Rep. Nancy Johnson rounded up nearly as many signatures on a letter to Mr. Bush urging him not to veto . IN DT NN , NNP NNP NNP NNP VBD IN RB IN JJ NNS IN DT NN TO NNP NNP VBG PRP RB TO VB .
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Even such a pro-life stalwart as Sen. Orrin Hatch -LRB- R. , Utah -RRB- had counseled some kind of compromise . RB JJ DT JJ NN IN NNP NNP NNP ( NNP , NNP ) VBD VBN DT NN IN NN .
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The Senate passed the same bill yesterday , with a veto-proof majority of 67 . DT NNP VBD DT JJ NN NN , IN DT JJ NN IN CD .
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The manuevering illustrates an emerging Republican donnybrook , pacified since the early 1980s . DT NN VBZ DT VBG NNP NN , VBD IN DT JJ CD .
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At the 1988 GOP convention , abortion was barely discussed at all , though delegates were evenly divided on the question of an anti-abortion constitutional amendment . IN DT CD NNP NN , NN VBD RB VBN IN DT , IN NNS VBD RB VBN IN DT NN IN DT JJ JJ NN .
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Ms. Johnson made a passionate statement to the platform committee , but she was talking to herself . NNP NNP VBD DT JJ NN TO DT NN NN , CC PRP VBD VBG TO PRP .
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Now many Republicans are listening . RB JJ NNPS VBP VBG .
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They 're frightened by what they see in New Jersey , and especially Virginia , where pro-life GOP candidates for governor are being pummeled on abortion . PRP VBP VBN IN WP PRP VBP IN NNP NNP , CC RB NNP , WRB JJ NNP NNS IN NN VBP VBG VBN IN NN .
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Eddie Mahe , a Republican consultant , says the two GOP candidates could have avoided trouble if they had framed the issue first . NNP NNP , DT NNP NN , VBZ DT CD NNP NNS MD VB VBN NN IN PRP VBD VBN DT NN JJ .
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-LRB- In Virginia , Marshall Coleman and his running mate , Eddy Dalton , are both on the defensive for opposing abortions even in cases of rape or incest . -RRB- ( IN NNP , NNP NNP CC PRP$ NN NN , NNP NNP , VBP DT IN DT NN IN VBG NNS RB IN NNS IN NN CC NN . )
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But Mr. Mahe adds , `` The net loser in the next few years is the right-to-life side . '' CC NNP NNP VBZ , `` DT JJ NN IN DT JJ JJ NNS VBZ DT JJ NN . ''
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Darla St. Martin , of the National Right to Life Committee , says exit polls from the 1988 election had single-issue , pro-life voters giving Mr. Bush about five more percentage points of support than pro-choice voters gave Michael Dukakis . NNP NNP NNP , IN DT NNP NNP TO NNP NNP , VBZ NN NNS IN DT CD NN VBD JJ , JJ NNS VBG NNP NNP IN CD JJR NN NNS IN NN IN JJ NNS VBD NNP NNP .
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But the Supreme Court 's opening of debate may have changed even that . CC DT NNP NNP POS NN IN NN MD VB VBN RB DT .
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GOP pollster Neil Newhouse , of the Wirthlin Group , says polls this summer showed that the single-issue voters had about evened out . NNP NN NNP NNP , IN DT NNP NNP , VBZ VBZ DT NN VBD IN DT JJ NNS VBD IN VBN RB .
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Polls are no substitute for principle , but they 'll do for some politicians . NNS VBP DT NN IN NN , CC PRP MD VB IN DT NNS .
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The Republican danger is that abortion could become for them what it 's long been for Democrats , a divisive litmus test . DT NNP NN VBZ DT NN MD VB IN PRP WP PRP VBZ RB VBN IN NNPS , DT JJ NN NN .
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It 's already that in the Bush administration , at least for any job in which abortion is even remotely an issue . PRP VBZ RB IN IN DT NNP NN , IN JJS IN DT NN IN WDT NN VBZ RB RB DT NN .
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Oklahoma official Robert Fulton lost a chance for a senior job in the Department of Health and Human Services after right-to-life activists opposed him . NNP NN NNP NNP VBD DT NN IN DT JJ NN IN DT NNP IN NNP CC NNP NNP IN JJ NNS VBN PRP .
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Caldwell Butler , a conservative former congressman , was barred from a Legal Services post , after he gave wrong answers on abortion . NNP NNP , DT JJ JJ NN , VBD VBN IN DT NNP NNPS NN , IN PRP VBD JJ NNS IN NN .
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Even the president 's doctor , Burton Lee , has said on the record that he 'd love to be surgeon general but could n't pass the pro-life test . RB DT NN POS NN , NNP NNP , VBZ VBD IN DT NN IN PRP MD VB TO VB NN JJ CC MD RB VB DT JJ NN .
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In the case of HHS Secretary Louis Sullivan , the litmus test could yet damage issues important to other parts of the Republican coalition . IN DT NN IN NNP NNP NNP NNP , DT NN NN MD RB VB NNS JJ TO JJ NNS IN DT NNP NN .
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After Mr. Sullivan waffled on abortion last year , the White House appeased right-to-lifers by surrounding him with pro-life deputies . IN NNP NNP VBD IN NN JJ NN , DT NNP NNP VBD NNS IN VBG PRP IN JJ NNS .
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Their views on health care and welfare did n't much matter , though HHS spends billions a year on both . PRP$ NNS IN NN NN CC NN VBD RB JJ NN , IN NNP VBZ NNS DT NN IN DT .
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It makes only a handful of abortion-related decisions . PRP VBZ RB DT NN IN JJ NNS .
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Though Democrats can gloat at all this for now , they may want to contain their glee . IN NNPS MD VB IN PDT DT IN RB , PRP MD VB TO VB PRP$ NN .
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On abortion , their own day will come . IN NN , PRP$ JJ NN MD VB .
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Eventually even Republicans will find a way to frame the issue in ways that expose pro-choice absolutism . RB RB NNPS MD VB DT NN TO VB DT NN IN NNS WDT VBP JJ NN .
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Does the candidate favor parental consent for teen-age abortions ? VBZ DT NN NN JJ NN IN JJ NNS .
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-LRB- The pro-choice lobby does n't . ( DT JJ NN VBZ RB .
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-RRB- What about banning abortions in the second and third trimesters ? ) WP IN VBG NNS IN DT JJ CC JJ NNS .
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-LRB- The lobby says no again . -RRB- ( DT NN VBZ DT RB . )
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Democracy is forcing the abortion debate toward healthy compromise , toward the unpolarizing middle . NNP VBZ VBG DT NN NN IN JJ NN , IN DT VBG NN .
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Roe v. Wade pre-empted political debate , so the extremes blossomed . NNP CC NNP VBD JJ NN , RB DT NNS VBD .
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Now the ambivalent middle , a moral majority of sorts , is reasserting itself . RB DT JJ NN , DT JJ NN IN NNS , VBZ VBG PRP .
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Within a few years , the outcome in most states is likely to be that abortion will be more restricted , but not completely banned . IN DT JJ NNS , DT NN IN RBS NNS VBZ JJ TO VB DT NN MD VB RBR VBN , CC RB RB VBN .
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This is where the voters are , which is where politicians usually end up . DT VBZ WRB DT NNS VBP , WDT VBZ WRB NNS RB VBP RB .
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Union Pacific Corp . third-quarter net income fell 17 % . NNP NNP NNP . JJ JJ NN VBD CD NN .
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Excluding earnings from discontinued operations a year earlier , net fell only 2 % . VBG NNS IN VBN NNS DT NN RBR , NN VBD RB CD NN .
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The energy , natural resources and railroad concern had net of $ 137.4 million , or $ 1.35 a share , down from $ 165 million , or $ 1.44 a share , a year earlier . DT NN , JJ NNS CC NN NN VBD NN IN $ CD CD , CC $ CD DT NN , RB IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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In the 1988 third quarter , profit from continuing operations totaled $ 140.1 million . IN DT CD JJ NN , NN IN VBG NNS VBD $ CD CD .
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A year earlier , the company had profit from discontinued operations of $ 24.9 million from sale of a pipeline , a refinery and an interest in a second refinery . DT NN RBR , DT NN VBD NN IN VBN NNS IN $ CD CD IN NN IN DT NN , DT NN CC DT NN IN DT JJ NN .
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Revenue rose 2 % to $ 1.58 billion from $ 1.54 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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|
In composite trading on the New York Stock Exchange , Union Pacific jumped $ 1.375 to $ 75 a share . IN JJ NN IN DT NNP NNP NNP NNP , NNP NNP VBD $ CD TO $ CD DT NN .
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The company said its Union Pacific Railroad had a 3 % profit increase , despite a 14 % rise in fuel costs and a 4 % drop in car loadings . DT NN VBD PRP$ NNP NNP NNP VBD DT CD NN NN NN , IN DT CD NN NN IN NN NNS CC DT CD NN NN IN NN NNS .
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Most of the commodity traffic was off , the company said . JJS IN DT NN NN VBD IN , DT NN VBD .
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Earnings from continuing operations of the Union Pacific Resources unit almost doubled , the company said . NNS IN VBG NNS IN DT NNP NNP NNPS NN RB VBD , DT NN VBD .
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It added that higher revenue , strong crude oil prices and higher natural gas prices offset declines in production of oil , gas and plant liquids . PRP VBD IN JJR NN , JJ JJ NN NNS CC JJR JJ NN NNS VBP NNS IN NN IN NN , NN CC NN NNS .
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In addition , the company cited cost-reduction moves and interest income . IN NN , DT NN VBD JJ NNS CC NN NN .
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Earnings from Union Pacific Realty dropped 50 % to $ 3 million . NNS IN NNP NNP NNP VBD CD NN TO $ CD CD .
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Before good will , Overnite Transportation earnings fell 11 % to $ 15 million , Union Pacific said . IN JJ NN , NNP NNP NNS VBD CD NN TO $ CD CD , NNP NNP VBD .
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|
In the nine months , net fell 6.3 % to $ 427.7 million , or $ 3.98 a share , from $ 456.4 million , or $ 4 a share , a year earlier . IN DT CD NNS , NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Profit from continuing operations in the year-earlier period was $ 402.7 million . NN IN VBG NNS IN DT JJ NN VBD $ CD CD .
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Revenue was $ 4.75 billion , up 6 % from $ 4.49 billion . NN VBD $ CD CD , IN CD NN IN $ CD CD .
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The Federal Trade Commission ruled that five major title-insurance companies illegally fixed prices for title search-and-examination services by participating in joint `` rating bureaus '' in six states . DT NNP NNP NNP VBD IN CD JJ JJ NNS RB VBN NNS IN NN JJ NNS IN VBG IN JJ `` NN NN '' IN CD NNS .
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The FTC ordered the companies not to use rating bureaus in those six states . DT NNP VBD DT NNS RB TO VB NN NN IN DT CD NNS .
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The commission order named the following companies : Ticor Title Insurance Co. of California , a unit of Los Angeles-based Ticor ; Chicago Title Insurance Co. and Safeco Title Insurance Co. , units of Chicago Title & Trust Co. ; Lawyers Title Insurance Corp. , a unit of Richmond , Va.-based Universal Corp. ; and Stewart Title Guaranty Co. , a unit of Houston-based Stewart Information Services Corp . DT NN NN VBD DT VBG NNS : NNP NNP NNP NNP IN NNP , DT NN IN NNP JJ NNP : NNP NNP NNP NNP CC NNP NNP NNP NNP , NNS IN NNP NN CC NNP NNP : NNS NNP NNP NNP , DT NN IN NNP , JJ NNP NNP : CC NNP NNP NNP NNP , DT NN IN NNP NNP NNP NNP NNP .
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Chicago Title & Trust acquired Safeco in 1987 and changed the unit 's name to Security Union Title Insurance Co . NNP NN CC NNP VBD NNP IN CD CC VBD DT NN POS NN TO NNP NNP NNP NNP NNP .
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The FTC ruled that the companies violated federal antitrust law by fixing rates in the following states : New Jersey , Pennsylvania , Connecticut , Wisconsin , Arizona and Montana . DT NNP VBD IN DT NNS VBD JJ JJ NN IN VBG NNS IN DT VBG NNS : NNP NNP , NNP , NNP , NNP , NNP CC NNP .
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The FTC first issued an administrative complaint in the case in 1985 . DT NNP RB VBN DT JJ NN IN DT NN IN CD .
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John Christie , a lawyer here for the two Chicago Title & Trust units accused the FTC of `` second-guessing '' state-level regulations , with which , he said , his clients had complied . NNP NNP , DT NN RB IN DT CD NNP NN CC NNP NNS VBD DT NNP IN `` NN '' JJ NNS , IN WDT , PRP VBD , PRP$ NNS VBD VBN .
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`` I expect all the companies to appeal , '' he added . `` PRP VBP PDT DT NNS TO VB , '' PRP VBD .
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A lawyer for Lawyers Title said that , because the named companies no longer use the type of cooperative rating bureaus attacked by the FTC , the commission 's order wo n't have much practical impact . DT NN IN NNS NN VBD IN , IN DT VBN NNS RB RB VBP DT NN IN JJ NN NN VBN IN DT NNP , DT NN POS NN MD RB VB JJ JJ NN .
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Officials for the other named companies did n't return telephone calls seeking comment . NNS IN DT JJ VBN NNS VBD RB VB NN VBZ VBG VB .
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MARK RESOURCES INC. , Calgary , Alberta , said it agreed to sell 75 million Canadian dollars -LRB- US$ 63.9 million -RRB- of 8 % convertible debentures to a group of securities dealers . NNP NNP NNP , NNP , NNP , VBD PRP VBD TO VB CD CD JJ NNS ( $ CD CD ) IN CD NN JJ NNS TO DT NN IN NNS NNS .
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Mark , an oil and gas concern , said the 15-year debentures are convertible before maturity at C$ 12.50 for each Mark common share , and can be redeemed at the company 's option , under certain conditions , after Nov. 30 , 1992 . NNP , DT NN CC NN NN , VBD DT JJ NNS VBP JJ IN NN IN $ CD IN DT NNP JJ NN , CC MD VB VBN IN DT NN POS NN , IN JJ NNS , IN NNP CD , CD .
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The government will try to sell all the real estate managed by the Federal Asset Disposition Association in one fell swoop , said William Seidman , chairman of the Federal Deposit Insurance Corp . DT NN MD VB TO VB PDT DT JJ NN VBN IN DT NNP NNP NNP NNP IN CD VBD NN , VBD NNP NNP , NN IN DT NNP NNP NNP NNP .
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The FADA real-estate package , with an asking price of $ 428 million , is comprised of 150 properties in Texas , California , Colorado , Arizona and Florida . DT NNP NN NN , IN DT VBG NN IN $ CD CD , VBZ VBN IN CD NNS IN NNP , NNP , NNP , NNP CC NNP .
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It includes apartments , shopping centers , office buildings and undeveloped land . PRP VBZ NNS , NN NNS , NN NNS CC JJ NN .
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Mr. Seidman is chairman of the Resolution Trust Corp. , established to sell or merge the nation 's hundreds of insolvent savings-and-loan associations . NNP NNP VBZ NN IN DT NNP NNP NNP , VBN TO VB CC VB DT NN POS NNS IN JJ JJ NNS .
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The RTC , created by this year 's S&L bailout legislation , is trying to sell FADA 's network of offices separately . DT NNP , VBN IN DT NN POS NNP NN NN , VBZ VBG TO VB NNP POS NN IN NNS RB .
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FADA , which holds problem assets of thrifts that were closed before the bailout legislation was enacted , is being liquidated . NNP , WDT VBZ NN NNS IN NNS WDT VBD VBN IN DT NN NN VBD VBN , VBZ VBG VBN .
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The properties held by FADA wo n't be sold piecemeal , Mr. Seidman said in a speech before Southern Methodist University Business School in Dallas . DT NNS VBN IN NNP MD RB VB VBN RB , NNP NNP VBD IN DT NN IN NNP NNP NNP NNP NNP IN NNP .
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`` You need to buy the entire lot , '' Mr. Seidman said , `` so get out your checkbooks . `` PRP VBP TO VB DT JJ NN , '' NNP NNP VBD , `` RB VB RP PRP$ NNS .
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The following were among yesterday 's offerings and pricings in the U.S. and non-U.S. capital markets , with terms and syndicate manager , as compiled by Dow Jones Capital Markets Report : DT VBG VBD IN NN POS NNS CC NNS IN DT NNP CC JJ NN NNS , IN NNS CC NN NN , IN VBN IN NNP NNP NNP NNP NNP :
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Sequa Corp. -- $ 150 million of 9 5\/8 % notes due Oct. 15 , 1999 , priced at 99.75 to yield 9.664 % . NNP NNP : $ CD CD IN CD CD NN NNS JJ NNP CD , CD , VBN IN CD TO VB CD NN .
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The noncallable issue was priced at a spread of 170 basis points above the Treasury 's 10-year note . DT JJ NN VBD VBN IN DT NN IN CD NN NNS IN DT NNP POS JJ NN .
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Rated Baa-2 by Moody 's Investors Service Inc. and triple-B-minus by Standard & Poor 's Corp. , the issue will be sold through underwriters led by Merrill Lynch Capital Markets . VBN JJ IN NNP POS NNP NNP NNP CC NNP IN NNP CC NNP POS NNP , DT NN MD VB VBN IN NNS VBN IN NNP NNP NNP NNPS .
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Virginia Public School Authority -- $ 55.7 million of school financing bonds , 1989 Series B -LRB- 1987 resolution -RRB- , due 19912000 , 2005 and 2010 , through a BT Securities Corp. group . NNP NNP NNP NNP : $ CD CD IN NN NN NNS , CD NNP NNP ( CD NN ) , JJ CD , CD CC CD , IN DT NNP NNP NNP NN .
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The bonds , rated double-A by Moody 's and S&P , were priced to yield from 6 % in 1991 to 7.10 % in 2010 . DT NNS , VBN JJ IN NNP POS CC NNP , VBD VBN TO VB IN CD NN IN CD TO CD NN IN CD .
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Serial bonds were priced to yield to 6.75 % in 2000 . JJ NNS VBD VBN TO VB TO CD NN IN CD .
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Bonds due 1991-1996 carry 6.70 % coupons and bonds due 1997-2000 carry 6 3\/4 % coupons . NNS JJ CD VB CD NN NNS CC NNS JJ CD VB CD CD NN NNS .
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Term bonds due 2005 are n't being formally reoffered . NN NNS JJ CD VBP RB VBG RB VBN .
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They carry a 7 % coupon . PRP VBP DT CD NN NN .
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Term bonds due 2010 are 7.10 % securities priced at par . NN NNS JJ CD VBP CD NN NNS VBN IN NN .
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St. Johns River Water Management District , Fla. -- $ 50,005,000 of land acquisition revenue bonds , Series 1989 , due 1990-2000 , 2003 , 2006 and 2009 , tentatively priced by a Smith Barney , Harris Upham & Co. group to yield from 6 % in 1990 to about 7.03 % in 2003 . NNP NNP NNP NNP NNP NNP , NNP : $ CD IN NN NN NN NNS , NNP CD , JJ CD , CD , CD CC CD , RB VBN IN DT NNP NNP , NNP NNP CC NNP NN TO VB IN CD NN IN CD TO IN CD NN IN CD .
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There are $ 9.76 million of 7 % term bonds due 2003 , priced at 99 3\/4 to yield about 7.03 % . EX VBP $ CD CD IN CD NN NN NNS JJ CD , VBN IN CD CD TO VB IN CD NN .
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The $ 11,775,000 of term bonds due 2006 and the $ 13,865,000 of term bonds due 2009 are n't being formally reoffered . DT $ CD IN NN NNS JJ CD CC DT $ CD IN NN NNS JJ CD VBP RB VBG RB VBN .
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Serial bonds were priced at par to yield to 6.90 % in 2000 . JJ NNS VBD VBN IN NN TO VB TO CD NN IN CD .
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The bonds are insured and rated triple-A by Moody 's and S&P . DT NNS VBP VBN CC VBN JJ IN NNP POS CC NNP .
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Federal Home Loan Mortgage Corp. -- $ 500 million of Remic mortgage securities being offered in 12 classes by Salomon Brothers Inc . NNP NNP NNP NNP NNP : $ CD CD IN NNP NN NNS VBG VBN IN CD NNS IN NNP NNP NNP .
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The offering , Series 105 , is backed by Freddie Mac 9 1\/2 % securities . DT NN , NNP CD , VBZ VBN IN NNP NNP CD CD NN NNS .
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Separately , $ 400 million of Freddie Mac Remic mortgage securities is being offered in 10 classes by Kidder , Peabody & Co . RB , $ CD CD IN NNP NNP NNP NN NNS VBZ VBG VBN IN CD NNS IN NNP , NNP CC NNP .
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The offering , Series 106 , is backed by Freddie Mac 9 1\/2 % securities . DT NN , NNP CD , VBZ VBN IN NNP NNP CD CD NN NNS .
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According to available details , yields range from 8.70 % , a spread of 80 basis points over three-year Treasury securities , to 10.37 % , a spread of 230 basis points over 20-year Treasurys . VBG TO JJ NNS , NNS VBP IN CD NN , DT NN IN CD NN NNS IN JJ NNP NNS , TO CD NN , DT NN IN CD NN NNS IN JJ NNPS .
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The offerings bring Freddie Mac 's 1989 Remic issuance to $ 32.6 billion and its total volume to $ 46.5 billion since the program began in February 1988 . DT NNS VBP NNP NNP POS CD NNP NN TO $ CD CD CC PRP$ JJ NN TO $ CD CD IN DT NN VBD IN NNP CD .
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European Investment Bank -LRB- agency -RRB- -- 200 billion lire of 12 % bonds due Nov. 16 , 1995 , priced at 101 3\/4 to yield 12 % less full fees , via lead manager Banco Commercial Italiana . NNP NNP NNP ( NN ) : CD CD NNS IN CD NN NNS JJ NNP CD , CD , VBN IN CD CD TO VB CD NN RBR JJ NNS , IN NN NN NNP NNP NNP .
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Fees 1 3\/4 . NNS CD CD .
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IBM International Finance -LRB- U.S. parent -RRB- -- 125 million European currency units of 9 1\/8 % bonds due Nov. 10 , 1994 , priced at 101 5\/8 to yield 9.13 % at the recommended reoffered price of par , via Banque Paribas Capital Markets . NNP NNP NNP ( NNP NN ) : CD CD JJ NN NNS IN CD CD NN NNS JJ NNP CD , CD , VBN IN CD CD TO VB CD NN IN DT VBN VBN NN IN NN , IN NNP NNP NNP NNPS .
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Societe Generale Australia Ltd . -LRB- French parent -RRB- -- 50 million Australian dollars of 17 % bonds due Nov. 20 , 1991 , priced at 101.90 to yield 16.59 less fees , via Westpac Banking Corp . NNP NNP NNP NNP . ( JJ NN ) : CD CD JJ NNS IN CD NN NNS JJ NNP CD , CD , VBN IN CD TO VB CD JJR NNS , IN NNP NNP NNP .
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Guaranteed by Societe Generale . VBN IN NNP NNP .
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Fees 1 1\/4 . NNS CD CD .
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Mitsubishi Trust & Banking Corp . -LRB- Japan -RRB- -- 200 million Swiss francs of privately placed convertible notes due March 31 , 1994 , with a fixed 0.75 % coupon at par , via Union Bank of Switzerland . NNP NNP CC NNP NNP . ( NNP ) : CD CD JJ NNS IN RB VBN JJ NNS JJ NNP CD , CD , IN DT VBN CD NN NN IN NN , IN NNP NNP IN NNP .
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Put option on March 31 , 1992 , at a fixed 107 3\/4 to yield 3.5 % . VB NN IN NNP CD , CD , IN DT VBN CD CD TO VB CD NN .
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Callable from March 31 , 1992 , at 107 3\/4 , declining two points semi-annually to par . JJ IN NNP CD , CD , IN CD CD , VBG CD NNS RB TO NN .
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Each 50,000 Swiss franc note is convertible from Nov , 27 , 1989 , to March 21 , 1994 , at a premium over the closing share price Oct. 25 , when terms are scheduled to be fixed . DT CD JJ NN NN VBZ JJ IN NNP , CD , CD , TO NNP CD , CD , IN DT NN IN DT VBG NN NN NNP CD , WRB NNS VBP VBN TO VB VBN .
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Also , the company issued 300 million marks of convertible bonds with an indicated 2 3\/4 % coupon due March 31 , 1995 , at par , via Westdeutsche Landesbank Girozentrale Bank . RB , DT NN VBN CD CD NNS IN JJ NNS IN DT VBD CD CD NN NN JJ NNP CD , CD , IN NN , IN NNP NNP NNP NNP .
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Put on March 31 , 1992 , at an indicated 105 to yield 4.80 % . VB IN NNP CD , CD , IN DT VBD CD TO VB CD NN .
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Call option beginning March 31 , 1992 , if the price of the stock rises more than 50 % within 30 trading days as well as a call option for tax reasons . VB NN VBG NNP CD , CD , IN DT NN IN DT NN VBZ JJR IN CD NN IN CD NN NNS RB RB IN DT NN NN IN NN NNS .
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Each 1,000 mark and 10,000 mark bond is convertible from Nov. 27 , 1989 , to March 21 , 1995 , at a price to be determined when terms are fixed Oct. 25 . DT CD NN CC CD NN NN VBZ JJ IN NNP CD , CD , TO NNP CD , CD , IN DT NN TO VB VBN WRB NNS VBP VBN NNP CD .
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Scandinavian Airlines System -LRB- Sweden -RRB- -- 100 million Swiss francs of 6 1\/8 % bonds due Nov. 24 , 1999 , priced at 100 3\/4 to yield 6.03 % , via Union Bank of Switzerland . NNP NNP NNP ( NNP ) : CD CD JJ NNS IN CD CD NN NNS JJ NNP CD , CD , VBN IN CD CD TO VB CD NN , IN NNP NNP IN NNP .
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Call from Nov. 24 , 1994 , at 101 1\/2 , declining 1\/4 point a year . VB IN NNP CD , CD , IN CD CD , VBG CD NN DT NN .
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Federal Home Loan Mortgage Corp. -- $ 400 million of 10-year debentures with a coupon rate of 8.80 % , priced at par . NNP NNP NNP NNP NNP : $ CD CD IN JJ NNS IN DT NN NN IN CD NN , VBN IN NN .
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The debentures , callable at par in five years , were priced at a yield spread of about 86 basis points above the Treasury 10-year note . DT NNS , JJ IN NN IN CD NNS , VBD VBN IN DT NN NN IN IN CD NN NNS IN DT NNP JJ NN .
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The issue is being sold through Freddie Mac 's 17-member securities selling group . DT NN VBZ VBG VBN IN NNP NNP POS JJ NNS VBG NN .
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The debentures mature Oct. 27 , 1999 . DT NNS NNP NNP CD , CD .
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The debentures will be available in book-entry form only in a minimum amount of $ 5,000 and additional increments of $ 5,000 . DT NNS MD VB JJ IN JJ NN RB IN DT JJ NN IN $ CD CC JJ NNS IN $ CD .
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Interest will be paid semi-annually . NN MD VB VBN RB .
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First they get us to buy computers so we can get more information . NNP PRP VBP PRP TO VB NNS IN PRP MD VB JJR NN .
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Then the computers give us more information than we can ever read . RB DT NNS VBP PRP JJR NN IN PRP MD RB VB .
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Now they plan to sell us products that sift through all the information to give us what we really want to know . RB PRP VBP TO VB PRP NNS WDT VBP IN PDT DT NN TO VB PRP WP PRP RB VBP TO VB .
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The products range from computer-edited , personal newsletters to systems that sit inside a personal computer and pick stories on selected topics off news wires . DT NNS VBP IN JJ , JJ NNS TO NNS WDT VBP IN DT JJ NN CC VB NNS IN VBN NNS IN NN NNS .
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`` Filtered news is what people want , '' says Esther Dyson , editor of Release 1.0 , an industry newsletter that spots new developments . `` VBN NN VBZ WP NNS VBP , '' VBZ NNP NNP , NN IN NNP CD , DT NN NN IN VBZ JJ NNS .
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`` Most people read 10 times more than necessary in order to find out what they really need . '' `` JJS NNS VBP CD NNS JJR IN JJ IN NN TO VB IN WP PRP RB VBP . ''
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Geoffrey Goodfellow , who dropped out of high school back in the 1970s to manage a computer network at a California research firm , says : `` Old network hands have started to turn off the network because they do n't have time to wade through the muck . '' NNP NNP , WP VBD IN IN JJ NN RB IN DT NNS TO VB DT NN NN IN DT NNP NN NN , VBZ : `` NNP NN NNS VBP VBN TO VB IN DT NN IN PRP VBP RB VB NN TO VB IN DT NN . ''
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Mr. Goodfellow has started a Menlo Park , Calif. , company called Anterior Technology that provides human editors for public electronic networks . NNP NNP VBZ VBN DT NNP NNP , NNP , NN VBN NNP NNP WDT VBZ JJ NNS IN JJ JJ NNS .
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`` I see it as a sewage treatment plant , '' he says . `` PRP VBP PRP IN DT NN NN NN , '' PRP VBZ .
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A new product , NewsEdge , carries five business news wires simultaneously into a user 's computer and beeps and flashes whenever an article appears that is of interest to the user . DT JJ NN , NNP , VBZ CD NN NN NNS RB IN DT NN POS NN CC NNS CC NNS WRB DT NN VBZ WDT NNS IN NN TO DT NN .
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The product , developed by Desktop Data Corp. , a new company based in Waltham , Mass. , scans the wires looking for articles that contain key words specified by the user . DT NN , VBN IN NNP NNP NNP , DT JJ NN VBN IN NNP , NNP , VBZ DT NNS VBG IN NNS WDT VBP JJ NNS VBN IN DT NN .
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One early user , David Semmel , a Chicago venture capitalist and investor in Desktop Data , says he uses it to track takeover developments . CD JJ NN , NNP NNP , DT NNP NN NN CC NN IN NNP NNP , VBZ PRP VBZ PRP TO VB NN NNS .
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He says he told NewsEdge to look for stories containing such words as takeover , acquisition , acquire , LBO , tender , merger , junk and halted . PRP VBZ PRP VBD NNP TO VB IN NNS VBG JJ NNS IN NN , NN , VB , NNP , NN , NN , NN CC VBN .
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`` I 'm pretty confident I 'm catching everything , '' he says . `` PRP VBP RB JJ PRP VBP VBG NN , '' PRP VBZ .
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NewsEdge is pricey : $ 7,500 a year for a limited version , $ 40,000 a year if the cost of all the news wires is included . NNP VBZ JJ : $ CD DT NN IN DT JJ NN , $ CD DT NN IN DT NN IN PDT DT NN NNS VBZ VBN .
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And it works best in high-powered personal computers . CC PRP VBZ JJS IN JJ JJ NNS .
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But some investors and consultants who have tried it are enthusiastic . CC DT NNS CC NNS WP VBP VBN PRP VBP JJ .
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Jeffrey Tarter , editor of SoftLetter , a Watertown , Mass. , industry newsletter , says : `` I 've seen a lot of people fooling around on the fringes of filtering information . NNP NNP , NN IN NNP , DT NNP , NNP , NN NN , VBZ : `` PRP VBP VBN DT NN IN NNS VBG IN IN DT NNS IN VBG NN .
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This is the first time I 've seen something I could imagine a lot of people using . '' DT VBZ DT JJ NN PRP VBP VBN NN PRP MD VB DT NN IN NNS VBG . ''
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NewsEdge uses an FM radio band to carry news wires provided by Reuters , McGraw-Hill and Dow Jones & Co. , as well as PR Newswire , which carries corporate press releases . NNP VBZ DT NNP NN NN TO VB NN NNS VBN IN NNP , NNP CC NNP NNP CC NNP , RB RB IN NNP NNP , WDT VBZ JJ NN NNS .
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An FM receiver attached to a user 's personal computer receives the information . DT NNP NN VBN TO DT NN POS JJ NN VBZ DT NN .
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Some organizations have devised their own systems to sort through news wire items as they come in . DT NNS VBP VBN PRP$ JJ NNS TO VB IN NN NN NNS IN PRP VBP RB .
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George Goodwin , an account manager at Royal Bank of Canada , adapted a Lotus Development Corp. program called Agenda to sort through international news wires . NNP NNP , DT NN NN IN NNP NNP IN NNP , VBD DT NNP NNP NNP NN VBN NNP TO VB IN JJ NN NNS .
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It automatically selects stories from particular countries for reading by the international bankers responsible for lending in those areas . PRP RB VBZ NNS IN JJ NNS IN NN IN DT JJ NNS JJ IN NN IN DT NNS .
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For those who do n't need their personalized information moment by moment , some services are offering overnight newsletters . IN DT WP VBP RB VB PRP$ VBN NN NN IN NN , DT NNS VBP VBG JJ NNS .
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Individual Inc. , a new company in Brookline , Mass. , uses filtering technology developed by Cornell University computer scientist Gerard Salton , to automatically produce customized newsletters it sends electronically to subscribers by 8 a.m. the next day . NNP NNP , DT JJ NN IN NNP , NNP , VBZ VBG NN VBN IN NNP NNP NN NN NNP NNP , TO RB VB VBN NNS PRP VBZ RB TO NNS IN CD NN DT JJ NN .
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`` We are operating an information refinery that takes a broad stream of raw data and turns it into actionable knowledge , '' says Yosi Amram , founder and president . `` PRP VBP VBG DT NN NN WDT VBZ DT JJ NN IN JJ NNS CC VBZ PRP IN JJ NN , '' VBZ NNP NNP , NN CC NN .
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The daily newsletter , which is n't widely available yet , will have a base cost of $ 2,000 a year and provides full text of relevant articles under license agreements with Reuters , McGraw Hill , United Press International , two press release news wires and Japan 's Kyodo news service . DT JJ NN , WDT VBZ RB RB JJ RB , MD VB DT NN NN IN $ CD DT NN CC VBZ JJ NN IN JJ NNS IN NN NNS IN NNP , NNP NNP , NNP NNP NNP , CD NN NN NN NNS CC NNP POS NNP NN NN .
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One early user is NEC Corp. 's U.S. printer marketing arm . CD JJ NN VBZ NNP NNP POS NNP NN NN NN .
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`` They want the full press releases on printer announcements by their competition , '' Mr. Amram says . `` PRP VBP DT JJ NN NNS IN NN NNS IN PRP$ NN , '' NNP NNP VBZ .
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It also tracks personnel and financial announcements by NEC 's distributors and customers . PRP RB VBZ NNS CC JJ NNS IN NNP POS NNS CC NNS .
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Individual Inc. 's technology goes beyond word searches by using a computerized thesaurus . NNP NNP POS NN VBZ IN NN NNS IN VBG DT JJ NN .
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If a customer asks for stories about `` IBM , '' the computer will also supply stories that mention `` I.B.M. , International Business Machines , or Big Blue , '' Mr. Amram says . IN DT NN VBZ IN NNS IN `` NNP , '' DT NN MD RB VB NNS WDT VBP `` NNP , NNP NNP NNPS , CC NNP NNP , '' NNP NNP VBZ .
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Moreover , Individual Inc. 's computers can weigh the value of an article based on how closely the story matches the subscriber 's interest area . RB , NNP NNP POS NNS MD VB DT NN IN DT NN VBN IN WRB RB DT NN VBZ DT NN POS NN NN .
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It compares the position of key words in the story ; words in the headline or first paragraph get a higher value . PRP VBZ DT NN IN JJ NNS IN DT NN : NNS IN DT NN CC JJ NN VB DT JJR NN .
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And it calculates how often the words appear in the story compared with how often they appear in the entire data base . CC PRP VBZ WRB RB DT NNS VBP IN DT NN VBN IN WRB RB PRP VBP IN DT JJ NNS VBP .
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The higher the ratio of hits to total words , the higher the presumed value to the reader . DT JJR DT NN IN NNS TO VB NNS , DT JJR DT VBN NN TO DT NN .
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Pinpoint Information Corp. , Chantilly , Va. , a producer of $ 1,800-a-year personalized newsletters about the computer industry that started full operation last month , relies on 12 human readers to code news releases by topic in order to select items for each subscriber . NNP NNP NNP , NNP , NNP , DT NN IN $ RB VBN NNS IN DT NN NN WDT VBD JJ NN JJ NN , VBZ IN CD JJ NNS TO VB NN NNS IN NN IN NN TO VB NNS IN DT NN .
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`` The computers find all the key words they can , but the editors confirm every one . `` DT NNS VBP PDT DT JJ NNS PRP MD , CC DT NNS VBP DT CD .
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Computer picking is n't perfect , '' says Harvey Golomb , president and founder of Pinpoint . NNP VBG VBZ RB JJ , '' VBZ NNP NNP , NN CC NN IN NNP .
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The humans also write abstracts of articles from some 200 computer industry publications . DT NNS RB VBP NNS IN NNS IN DT CD NN NN NNS .
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Once all the articles are coded and put in a data base , Pinpoint 's computers pick the most relevant for each subscriber and lay them out in a three-to-five-page newsletter format ; each newsletter is sent directly from the computer to the subscriber 's fax machine . RB PDT DT NNS VBP VBN CC VB IN DT NNS VBP , NNP POS NNS VBP DT RBS JJ IN DT NN CC VBD PRP IN IN DT JJ NN NN : DT NN VBZ VBN RB IN DT NN TO DT NN POS NN NN .
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Mr. Golomb says each of his computers can produce and send about 75 unique newsletters a night . NNP NNP VBZ DT IN PRP$ NNS MD VB CC VB IN CD JJ NNS DT NN .
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Many computer network users who never see news wires would like to sort through their electronic mail automatically . JJ NN NN NNS WP RB VB NN NNS MD VB TO VB IN PRP$ JJ NN RB .
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So-called E-mail is the collection of inter-office memos , gossip , technical data , schedules and directives distributed over local and national computer networks . JJ NN VBZ DT NN IN JJ NNS , NN , JJ NNS , NNS CC NNS VBN IN JJ CC JJ NN NNS .
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`` All these interconnected computers make it difficult to sort out what 's junk and what 's important , '' says Chuck Digate , a former Lotus Development executive who has started a new company to cope with the problem . `` DT DT VBN NNS VBP PRP JJ TO VB IN WP VBZ NN CC WP VBZ JJ , '' VBZ NNP NNP , DT JJ NNP NNP NN WP VBZ VBN DT JJ NN TO VB IN DT NN .
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Mr. Digate says his firm , Beyond Inc. , has licensed technology known as Information Lens from Massachusetts Institute of Technology and plans to develop it for commercial use . NNP NNP VBZ PRP$ NN , IN NNP , VBZ VBN NN VBN IN NNP NNP IN NNP NNP IN NNP CC NNS TO VB PRP IN JJ NN .
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The MIT project devised ways for E-mail to be automatically categorized as top priority if it comes from certain designated senders or requires action in the next couple of days . DT NNP NN VBD NNS IN NN TO VB RB VBN IN JJ NN IN PRP VBZ IN RB VBN NNS CC VBZ NN IN DT JJ NN IN NNS .
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Mr. Digate says that Beyond will refine the product `` so the message will be smart enough to know to come back and bother you again next week . '' NNP NNP VBZ IN IN MD VB DT NN `` RB DT NN MD VB JJ RB TO VB TO VB RB CC VB PRP RB JJ NN . ''
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And if a user is busy , `` he can set it for crisis mode : ` Do n't bother me with reports until Monday . ' '' CC IN DT NN VBZ JJ , `` PRP MD VB PRP IN NN NN : `` VBP RB VB PRP IN NNS IN NNP . '' ''
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A program called Notes , which is under development by Lotus , also is designed to sort E-mail sent within work groups . DT NN VBD NNS , WDT VBZ IN NN IN NNP , RB VBZ VBN TO VB NN VBD IN NN NNS .
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One thing that makes E-mail difficult to sift through is that each item looks the same . CD NN WDT VBZ NN JJ TO VB IN VBZ IN DT NN VBZ DT JJ .
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Notes , which is designed for advanced computers that display graphics , allows mail senders to put different logos on their mail . NNS , WDT VBZ VBN IN VBN NNS IN NN NNS , VBZ NN NNS TO VB JJ NNS IN PRP$ NN .
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A daily news briefing from the company librarian , for example , would have a distinctive format on the screen , just as a paper version would have . DT JJ NN NN IN DT NN NN , IN NN , MD VB DT JJ NN IN DT NN , RB IN DT NN NN MD VB .
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`` With E-mail , you do n't have the visual clues of paper , '' says Mr. Tarter , the editor of SoftLetter . `` IN NN , PRP VBP RB VB DT JJ NNS IN NN , '' VBZ NNP NNP , DT NN IN NNP .
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`` With Notes , they 're visually distinct . `` IN NNS , PRP VBP RB JJ .
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Dean Witter Reynolds Inc. lost its second recent arbitration case involving a former bond-trading executive . NNP NNP NNP NNP VBD PRP$ JJ JJ NN NN VBG DT JJ JJ NN .
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A New York Stock Exchange arbitration panel ordered Dean Witter to pay $ 404,294 in back bonuses to William Kelly , the company 's former head of high-yield , high-risk junk-bond trading and sales . DT NNP NNP NNP NNP NN NN VBD NNP NNP TO VB $ CD IN RB VBZ TO NNP NNP , DT NN POS JJ NN IN JJ , JJ NN NN CC NNS .
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It also awarded $ 196,785 in back bonuses to former trader Michael Newcomb and $ 69,105 in fees to the two men 's attorneys . PRP RB VBD $ CD IN RB VBZ TO JJ NN NNP NNP CC $ CD IN NNS TO DT CD NNS POS NNS .
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The sums awarded to Messrs. Kelly and Newcomb represent bonuses the two men said they deserved from the first half of 1988 , but which were n't paid because of a dispute over an incentive contract . DT NNS VBN TO NNP NNP CC NNP VB VBZ DT CD NNS VBD PRP VBD IN DT JJ NN IN CD , CC WDT VBD RB VBN IN IN DT NN IN DT NN NN .
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Jeffrey L. Liddle , the two men 's attorney at Liddle , O'Connor , Finkelstein & Robinson , said Mr. Kelly began working at Dean Witter in 1987 . NNP NNP NNP , DT CD NNS POS NN IN NNP , NNP , NNP CC NNP , VBD NNP NNP VBD VBG IN NNP NNP IN CD .
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Mr. Kelly built the company 's high-yield bond group , which has been a minor player in the junk-bond arena . NNP NNP VBD DT NN POS JJ NN NN , WDT VBZ VBN DT JJ NN IN DT NN NN .
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Dean Witter lost a separate case involving a former bond executive earlier this year ; in August it paid $ 666,666 in back pay and a bonus to a former corporate-bond trading chief , Harold Bachman . NNP NNP VBD DT JJ NN VBG DT JJ NN NN RBR DT NN : IN NNP PRP VBD $ CD IN JJ NN CC DT NN TO DT JJ JJ NN NN , NNP NNP .
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That award ended a dispute between Dean Witter and Mr. Bachman over who was responsible for certain bond-trading losses around the time of the 1987 stock-market crash . DT NN VBD DT NN IN NNP NNP CC NNP NNP IN WP VBD JJ IN JJ JJ NNS IN DT NN IN DT CD NN NN .
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A spokesman for Dean Witter , a unit of Sears , Roebuck & Co. , declined to comment . DT NN IN NNP NNP , DT NN IN NNP , NNP CC NNP , VBD TO VB .
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DILLARD DEPARTMENT STORES Inc. said it offered $ 50 million of 9 1\/2 % debentures due 2001 at par . NNP NNP NNP NNP VBD PRP VBD $ CD CD IN CD CD NN NNS JJ CD IN NN .
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The Little Rock , Ark. , department-store retailer said proceeds will be used to reduce short-term debt . DT NNP NNP , NNP , NN NN VBD NNS MD VB VBN TO VB JJ NN .
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Goldman , Sachs & Co. was the underwriter . NNP , NNP CC NNP VBD DT NN .
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American Brands Inc. said third-quarter net income rose 13 % , reflecting strong gains in its tobacco and distilled spirits businesses . NNP NNP NNP VBD JJ JJ NN VBD CD NN , VBG JJ NNS IN PRP$ NN CC VBN NNS NNS .
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The company , which also has businesses in life insurance , office products and hardware , and home-improvement products , said net income rose to $ 166.4 million , or $ 1.71 a share , from $ 146.8 million , or $ 1.53 a share , a year earlier . DT NN , WDT RB VBZ NNS IN NN NN , NN NNS CC NN , CC NN NNS , VBD JJ NN VBD TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Year-earlier results for the quarter and the nine months were restated to reflect a change in accounting standards . JJ NNS IN DT NN CC DT CD NNS VBD VBN TO VB DT NN IN NN NNS .
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Revenue declined 2 % , to $ 3.06 billion from $ 3.13 billion , because of the sale of Southland Life in March , and the impact of the stronger U.S. dollar on overseas results . NN VBD CD NN , TO $ CD CD IN $ CD CD , IN IN DT NN IN NNP NNP IN NNP , CC DT NN IN DT JJR NNP NN IN JJ NNS .
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Operating profit for world-wide tobacco products rose 10 % to $ 247.6 million . NN NN IN JJ NN NNS VBD CD NN TO $ CD CD .
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For distilled spirits , operating profit rose 36 % , to $ 24.8 million . IN VBN NNS , VBG NN VBD CD NN , TO $ CD CD .
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In the first nine months , net rose 1.5 % , to $ 458.8 million , or $ 4.76 a share , from $ 452 million , or $ 4.50 a share , a year earlier . IN DT JJ CD NNS , NN VBD CD NN , TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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The year-earlier period included $ 40.1 million , or 41 cents a share , from discontinued operations . DT JJ NN VBD $ CD CD , CC CD NNS DT NN , IN VBN NNS .
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Revenue rose to $ 9.03 billion from $ 8.98 billion . NN VBD TO $ CD CD IN $ CD CD .
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The average number of shares outstanding rose 2 % in the third quarter but was down 4 % for the nine months . DT JJ NN IN NNS JJ VBD CD NN IN DT JJ NN CC VBD RB CD NN IN DT CD NNS .
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In composite trading on the New York Stock Exchange , American Brands shares rose $ 1.75 to $ 73 . IN JJ NN IN DT NNP NNP NNP NNP , NNP NNP NNS VBD $ CD TO $ CD .
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SANTA FE PACIFIC PIPELINE PARTNERS Limited Partnership , of Los Angeles , increased its quarterly cash dividend to 60 cents a unit from 55 cents , payable Nov. 14 to units of record Oct. 31 . NNP NNP NNP NNP NNP NNP NNP , IN NNP NNP , VBD PRP$ JJ NN NN TO CD NNS DT NN IN NN NNS , JJ NNP CD TO NNS IN NN NNP CD .
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The company is an independent refined-petroleum-products pipeline serving six Western states . DT NN VBZ DT JJ JJ NN VBG CD JJ NNS .
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WASHINGTON LIES LOW after the stock market 's roller-coaster ride . NNP VBZ RB IN DT NN NN POS NN NN .
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Lawmakers , haunted by charges that some of their comments contributed to the 1987 crash , generally shy away from calls for sweeping new legislation . NNS , VBN IN NNS IN DT IN PRP$ NNS VBD TO DT CD NN , RB JJ RB IN VBZ IN VBG JJ NN .
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But a House Energy and Commerce subcommittee will quiz SEC Chairman Breeden Wednesday , and Treasury Secretary Brady will go before the Senate Banking panel Thursday . CC DT NNP NNP CC NNP NN MD VB NNP NNP NNP NNP , CC NNP NNP NNP MD VB IN DT NNP NNP NN NNP .
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The market 's wild week may speed along the market-reform legislation that has been pending for months in the aftermath of the 1987 crash . DT NN POS JJ NN MD VB IN DT JJ NN WDT VBZ VBN VBG IN NNS IN DT NN IN DT CD NN .
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It may also expedite the SEC 's modest pending changes in junk-bond disclosure rules and intensify the Treasury 's look at plans for giving new tax breaks on dividends and raising taxes on short-term trades by pension funds . PRP MD RB VB DT NNP POS JJ VBG NNS IN NN NN NNS CC VB DT NNP POS NN IN NNS IN VBG JJ NN NNS IN NNS CC VBG NNS IN JJ NNS IN NN NNS .
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Brady and Breeden work well together on the plunge , despite the fact that the Treasury secretary opposed Breeden 's nomination to the SEC post . NNP CC NNP NN RB RB IN DT NN , IN DT NN IN DT NNP NN VBN NNP POS NN TO DT NNP NN .
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BAKER FALTERS in the Mideast amid Israeli paralysis and Palestinian politics . NNP NNP IN DT NNP IN JJ NN CC JJ NNS .
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Despite seeing his plan for Israeli-Palestinian elections wither , the cautious secretary of state is so far unwilling to cut U.S. economic or military aid to force Israeli cooperation . IN VBG PRP$ NN IN JJ NNS VBP , DT JJ NN IN NN VBZ RB RB JJ TO VB NNP JJ CC JJ NN TO VB JJ NN .
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Baker nonetheless remains furious both at Shamir , for backing down on the elections , and at Shamir 's rival , Peres , for political ineptitude in forcing a premature cabinet vote on Baker 's plan . NNP RB VBZ JJ DT IN NNP , IN VBG RB IN DT NNS , CC IN NNP POS JJ , NNP , IN JJ NN IN VBG DT JJ NN NN IN NNP POS NN .
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Meanwhile , some U.S. officials fear PLO chief Arafat is getting cold feet and may back off from his recent moderation and renunciation of terrorism . RB , DT NNP NNS VBP NNP JJ NNP VBZ VBG JJ NNS CC MD RB IN IN PRP$ JJ NN CC NN IN NN .
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He is under intense fire from other Palestinian groups ; Syria is pushing Ahmad Jibril , whose terrorist band is blamed for the Pan Am 103 bombing , as an alternative to Arafat . PRP VBZ IN JJ NN IN JJ JJ NNS : NNP VBZ VBG NNP NNP , WP$ JJ NN VBZ VBN IN DT NNP NNP CD NN , IN DT NN TO NNP .
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DARMAN'S MANEUVERS on the budget and capital gains hurt him in Congress . NNP NNS IN DT NN CC NN NNS VBN PRP IN NNP .
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Republicans as well as Democrats were angered by the budget director 's rejection of Speaker Foley 's effort to expedite a deficitcutting measure by stripping it of the capital-gains tax cut as well as pet Democratic projects . NNS RB RB IN NNPS VBD VBN IN DT NN NN POS NN IN NNP NNP POS NN TO VB DT NN NN IN VBG PRP IN DT NNS VBP VB RB RB IN NN JJ NNS .
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Darman now blames the clash on miscommunication , but House GOP leader Michel , who carried the offer to him , observes , `` I was speaking English at the time , and quite loud so I could be understood . '' NNP RB VBZ DT NN IN NN , CC NNP NNP NN NNP , WP VBD DT NN TO PRP , VBZ , `` PRP VBD VBG NNP IN DT NN , CC RB JJ IN PRP MD VB VBN . ''
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Senate GOP leader Dole ridicules the budget chief on the Senate floor . NNP NNP NN NNP VBZ DT NN NN IN DT NNP NN .
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Democratic counterpart Mitchell , asked to interpret Darman 's threat to make permanent the across-the-board Gramm-Rudman cuts that took effect this week , says , `` I do n't even bother to interpret them . '' JJ NN NNP , VBD TO VB NNP POS NN TO VB JJ DT JJ NNP NNS WDT VBD NN DT NN , VBZ , `` PRP VBP RB RB VB TO VB PRP . ''
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But Darman suggests such tensions will dissipate quickly . CC NNP VBZ JJ NNS MD VB RB .
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`` If I can show signs of maturity , almost anybody can , '' he jokes . `` IN PRP MD VB NNS IN NN , JJ NN MD , '' PRP VBZ .
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HHS OFFICIALS expect Secretary Sullivan to continue a ban on research using fetal tissue . NNP NNS VBP NNP NNP TO VB DT NN IN NN VBG JJ NN .
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Before he was confirmed , Sullivan said he had `` reservations about any blanket prohibitions on medical research . '' IN PRP VBD VBN , NNP VBD PRP VBD `` NNS IN DT NN NNS IN JJ NN . ''
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But now , an official says , he is `` surrounded by right-to-lifers , '' who contend that any breakthroughs in fetal-tissue research could increase the demand for abortions . CC RB , DT NN VBZ , PRP VBZ `` VBN IN NNS , '' WP VBP IN DT NNS IN JJ NN MD VB DT NN IN NNS .
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COOPERATION WANES on weapons development between the U.S. and Europe . NN VBZ IN NNS NN IN DT NNP CC NNP .
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Britain , France and Italy pull out of a proposal to build new NATO frigates ; the U.S. and West Germany have each withdrawn from missile projects . NNP , NNP CC NNP VB IN IN DT NN TO VB JJ NNP NNS : DT NNP CC NNP NNP VBP DT VBN IN NN NNS .
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Defense experts say joint projects are increasingly squeezed by budget pressures and the desire to save domestic jobs ; some also fear rising protectionism as European unity nears . NN NNS VBP JJ NNS VBP RB VBN IN NN NNS CC DT NN TO VB JJ NNS : DT RB VBP VBG NN IN JJ NN NNS .
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BOTH SIDES NOW : DT NNS RB :
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Virginia GOP lieutenant governor candidate Eddy Dalton tries to have it both ways on the abortion issue . NNP NNP NN NN NN NNP NNP VBZ TO VB PRP DT NNS IN DT NN NN .
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Though she opposes abortion in almost all cases , she airs a TV commercial using pro-choice buzzwords . IN PRP VBZ NN IN RB DT NNS , PRP VBZ DT NN JJ VBG JJ NNS .
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`` A woman ought to have a choice in cases where her life or health are in danger and in cases of rape or incest , '' she proclaims . `` DT NN MD TO VB DT NN IN NNS WRB PRP$ NN CC NN VBP IN NN CC IN NNS IN NN CC NN , '' PRP VBZ .
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HOT TOPIC : JJ NN :
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Interest in the abortion issue is so great that the Hotline , a daily , computer-distributed political newsletter , comes up with a spinoff product called the Abortion Report dealing solely with its political implications . NN IN DT NN NN VBZ RB JJ IN DT NNP , DT NN , JJ JJ NN , VBZ IN IN DT NN NN VBD DT NNP NNP VBG RB IN PRP$ JJ NNS .
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CONSERVATIVES EXPECT Bush to solidify their majority on a key court . NNS VBP NNP TO VB PRP$ NN IN DT JJ NN .
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Bush has three vacancies to fill on the prestigious D.C. Circuit Court , which handles many important regulatory issues and is often considered a warm-up for future Supreme Court nominees . NNP VBZ CD NNS TO VB IN DT JJ NNP NNP NNP , WDT VBZ JJ JJ JJ NNS CC VBZ RB VBN DT NN IN NN NNP NNP NNS .
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Conservatives now hold only a 5-4 edge . NNS RB VBP RB DT JJ NN .
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One slot is expected to go to EEOC Chairman Clarence Thomas , a black conservative ; after mulling a fight , liberals now probably wo n't put up a major struggle against him . CD NN VBZ VBN TO VB TO NNP NNP NNP NNP , DT JJ JJ : IN VBG DT NN , NNS RB RB MD RB VB IN DT JJ NN IN PRP .
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Other conservatives thought to be on the administration 's short list include Washington lawyer Michael Uhlmann , who was passed over for the No. 2 job at the Justice Department , and Marshall Breger , chairman of a U.S. agency on administration . JJ NNS VBD TO VB IN DT NN POS JJ NN VBP NNP NN NNP NNP , WP VBD VBN IN IN DT NN CD NN IN DT NNP NNP , CC NNP NNP , NN IN DT NNP NN IN NN .
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The Bush administration would also like to nominate a woman ; one possibility is former Justice Department official Victoria Toensing . DT NNP NN MD RB VB TO VB DT NN : CD NN VBZ JJ NNP NNP NN NNP NNP .
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MINOR MEMOS : JJ NNS :
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In the wake of the failed Panama coup , a bumper sticker appears : `` Ollie Would Have Got Him . '' ... IN DT NN IN DT VBN NNP NN , DT NN NN VBZ : `` NNP MD VB VB PRP . '' :
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Rep. Garcia , on trial for bribery and extortion , puts statements in the Congressional Record attributing missed votes to `` scheduling conflicts . '' ... NNP NNP , IN NN IN NN CC NN , VBZ NNS IN DT NNP NNP VBG VBN NNS TO `` NN NNS . '' :
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A GOP Senate fund-raising letter from Sen. Burns of Montana is made to appear personally written , and its opening line is , `` Please excuse my handwriting . '' DT NNP NNP NN NN IN NNP NNP IN NNP VBZ VBN TO VB RB VBN , CC PRP$ NN NN VBZ , `` VB VB PRP$ NN . ''
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But Burns confesses in an interview : `` That 's not my handwriting . CC NNP VBZ IN DT NN : `` DT VBZ RB PRP$ NN .
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MC SHIPPING Inc. , New York , declared an initial quarterly of 60 cents a share payable Nov. 15 to shares of record Oct. 30 . NNP NNP NNP , NNP NNP , VBD DT JJ NN IN CD NNS DT NN JJ NNP CD TO NNS IN NN NNP CD .
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The announcement boosted the charter-shipping company 's shares , which closed at $ 15.125 , up $ 1.25 a share , in composite trading on the American Stock Exchange . DT NN VBD DT JJ NN POS NNS , WDT VBD IN $ CD , IN $ CD DT NN , IN JJ NN IN DT NNP NNP NNP .
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The company , which went public in May , intends to pay dividends from available cash flow ; the amount may vary from quarter to quarter . DT NN , WDT VBD JJ IN NNP , VBZ TO VB NNS IN JJ NN NN : DT NN MD VB IN NN TO NN .
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Ever since the hotly contested America 's Cup race last year , the famous yachting match has run into more rough sailing out of the water than in it . RB IN DT RB VBN NNP POS NNP NN JJ NN , DT JJ NN NN VBZ VBN IN RBR JJ NN IN IN DT NN IN IN PRP .
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Now that a key member of the San Diego Yacht Club team is splitting off to form his own team , even more competition lies ahead . RB IN DT JJ NN IN DT NNP NNP NNP NNP NN VBZ VBG IN TO VB PRP$ JJ NN , RB JJR NN VBZ RB .
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Peter Isler , the winning navigator in the past two America 's Cup challenges , has split from the team led by Dennis Conner , skipper of the victorious Stars & Stripes , to form his own team for the next contest in 1992 . NNP NNP , DT VBG NN IN DT JJ CD NNP POS NNP NNS , VBZ NN IN DT NN VBN IN NNP NNP , NN IN DT JJ NNP CC NNP , TO VB PRP$ JJ NN IN DT JJ NN IN CD .
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And , in addition to a crack team of sailors , Mr. Isler has lined up some real brass to help him finance the syndicate . CC , IN NN TO DT NN NN IN NNS , NNP NNP VBZ VBN IN DT JJ NN TO VB PRP VB DT NN .
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Isler Sailing International 's advisory board includes Ted Turner , Turner Broadcasting chairman and a former Cup victor ; Peter G. Diamandis , head of Diamandis Communications , and Joseph B. Vittoria , chairman and chief executive of Avis Inc . NNP NNP NNP POS JJ NN VBZ NNP NNP , NNP NNP NN CC DT JJ NNP NN : NNP NNP NNP , NN IN NNP NNPS , CC NNP NNP NNP , NN CC JJ NN IN NNP NNP .
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His steering committee includes other notable businessmen , including the California investor and old salt Roy E. Disney . PRP$ NN NN VBZ JJ JJ NNS , VBG DT NNP NN CC JJ NN NNP NNP NNP .
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`` We have the structure , people and plan , '' Mr. Isler said in a statement . `` PRP VBP DT NN , NNS CC NN , '' NNP NNP VBD IN DT NN .
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Now , the first order of business is raising enough money to keep his team afloat -- a new yacht will cost about $ 3 million alone , and sailing syndicate budgets can easily run to $ 25 million for a Cup challenge . RB , DT JJ NN IN NN VBZ VBG JJ NN TO VB PRP$ NN RB : DT JJ NN MD VB RB $ CD CD RB , CC NN NN NNS MD RB VB TO $ CD CD IN DT NNP NN .
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The split comes in the midst of a court battle over whether the San Diego Yacht Club should be allowed to keep the international trophy for sailing a catamaran against the New Zealand challengers ' 90-foot monohull . DT NN VBZ IN DT NN IN DT NN NN IN IN DT NNP NNP NNP NNP MD VB VBN TO VB DT JJ NN IN VBG DT NN IN DT NNP NNP NNS POS JJ NN .
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In September , a New York appellate court overturned a state judge 's ruling that awarded the Cup to the New Zealand team . IN NNP , DT NNP NNP JJ NN VBD DT NN NN POS NN WDT VBD DT NNP TO DT NNP NNP NN .
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Pending an appeal by the New Zealand team , led by Michael Fay , the finals for the next Cup challenge are scheduled to be held in mid-1992 in San Diego . VBG DT NN IN DT NNP NNP NN , VBN IN NNP NNP , DT NNS IN DT JJ NNP NN VBP VBN TO VB VBN IN NN IN NNP NNP .
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But because of the uncertainty of the outcome of the suit , Mr. Conner 's team has done little to begin gearing up to defend its title . CC IN IN DT NN IN DT NN IN DT NN , NNP NNP POS NN VBZ VBN JJ TO VB VBG VB TO VB PRP$ NN .
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`` If you do n't know what the rules of the game are , it 's hard to start your fund-raising or design , '' said Dana Smith , an official with Team Dennis Conner . `` IN PRP VBP RB VB WP DT NNS IN DT NN VBP , PRP VBZ JJ TO VB PRP$ NN CC NN , '' VBD NNP NNP , DT NN IN NNP NNP NNP .
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The Conner team wo n't be able to negotiate with corporate sponsors until the suit is resolved and the race site is determined , Mr. Smith said , and the syndicate 's budget could easily reach $ 30 million . DT NNP NN MD RB VB JJ TO VB IN JJ NNS IN DT NN VBZ VBN CC DT NN NN VBZ VBN , NNP NNP VBD , CC DT NN POS NN MD RB VB $ CD CD .
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But spokesmen for both Mr. Isler and Mr. Conner say the formation of the new syndicate has to do with Mr. Isler 's desire to skipper his own team and begin planning now , rather than any falling out between the two sportsmen . CC NNS IN DT NNP NNP CC NNP NNP VBP DT NN IN DT JJ NN VBZ TO VB IN NNP NNP POS NN TO VB PRP$ JJ NN CC VB NN RB , RB IN DT NN IN IN DT CD NNS .
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Mr. Smith and a spokesman for the America 's Cup Organizing Committee insist that the added competition for the defender 's spot will only improve the race . NNP NNP CC DT NN IN DT NNP POS NNP NNP NNP VBP IN DT VBN NN IN DT NN POS NN MD RB VB DT NN .
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Missouri farmer Blake Hurst writing in the fall issue of the Heritage Foundation 's Policy Review about the proposed location of a hazardous-waste incinerator in his county : NNP NN NNP NNP VBG IN DT NN NN IN DT NNP NNP POS NNP NNP IN DT VBN NN IN DT NN NN IN PRP$ NN :
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Of course I 'd rather have a computer software firm in my backyard than a hazardous waste incinerator . IN NN PRP MD RB VB DT NN NN NN IN PRP$ NN IN DT JJ NN NN .
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But I 'd also rather live next door to an incinerator than to some of the hog farms I 've seen -LRB- and smelt -RRB- in these parts . CC PRP MD RB RB VB JJ NN TO DT NN IN TO DT IN DT NN NNS PRP VBP VBN ( CC VBD ) IN DT NNS .
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An incinerator is also probably better than having nobody next door -- on our farm there are four unoccupied houses . DT NN VBZ RB RB JJR IN VBG NN JJ NN : IN PRP$ NN EX VBP CD JJ NNS .
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On my four-mile drive to farm headquarters each morning , I drive by another four empty houses . IN PRP$ JJ NN TO VB NN DT NN , PRP VBP IN DT CD JJ NNS .
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A community of abandoned farmsteads , failing businesses , and crumbling roads and bridges is hardly a desirable one ... . DT NN IN VBN NNS , VBG NNS , CC VBG NNS CC NNS VBZ RB DT JJ CD : .
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The loss of 40 jobs by a depressed county in rural Missouri is hardly of national importance except for this : If the most environmentally safe way of dealing with a national problem can not be built in Atchinson County , what hope have we for dealing with the wastes our economy produces ? DT NN IN CD NNS IN DT JJ NN IN JJ NNP VBZ RB IN JJ NN IN IN DT : IN DT RBS RB JJ NN IN VBG IN DT JJ NN MD RB VB VBN IN NNP NNP , WP NN VBP PRP IN VBG IN DT NNS PRP$ NN VBZ .
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After all , farmers here work with `` hazardous '' chemicals every day , many of them the same chemicals that would have been destroyed in the incinerator . IN DT , NNS RB VBP IN `` JJ '' NNS DT NN , NN IN PRP DT JJ NNS WDT MD VB VBN VBN IN DT NN .
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We know they are dangerous , but if handled with care , their benefits far outweigh any risk to the environment . PRP VBP PRP VBP JJ , CC IN VBN IN NN , PRP$ NNS RB VBP DT NN TO DT NN .
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Just because Stamford , Conn. , High School did nothing when its valuable 1930s mural was thrown in the trash does n't mean the city no longer owns the work of art , a federal judge ruled . RB IN NNP , NNP , NNP NNP VBD NN WRB PRP$ JJ CD NN VBD VBN IN DT NN VBZ RB VB DT NN RB RB VBZ DT NN IN NN , DT JJ NN VBD .
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The mural , now valued at $ 1.3 million according to appraisers , was tossed in a trash heap in 1971 by workers who were renovating the building . DT NN , RB VBN IN $ CD CD VBG TO NNS , VBD VBN IN DT NN NN IN CD IN NNS WP VBD VBG DT NN .
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The 100-foot-long mural , painted by James Daugherty in 1934 , was commissioned by the federal Works Project Administration . DT JJ NN , VBN IN NNP NNP IN CD , VBD VBN IN DT JJ NNP NNP NNP .
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After the discarded mural was found outside the school by a concerned Stamford graduate , it eventually was turned over to Hiram Hoelzer , a professional art restorer . IN DT VBN NN VBD VBN IN DT NN IN DT VBN NNP NN , PRP RB VBD VBN IN TO NNP NNP , DT JJ NN NN .
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Throughout the 1970s , Stamford school and city officials made no effort to locate the mural . IN DT NNS , NNP NN CC NN NNS VBD DT NN TO VB DT NN .
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Apparently the officials did n't even know the mural was missing until 1980 , when a researcher found that the painting was in Mr. Hoelzer 's studio and questioned school officials about it . RB DT NNS VBD RB RB VB DT NN VBD VBG IN CD , WRB DT NN VBD IN DT NN VBD IN NNP NNP POS NN CC VBD NN NNS IN PRP .
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In 1986 , Stamford officials thanked Mr. Hoelzer for taking care of the mural -- and demanded he return it as soon as possible . IN CD , NNP NNS VBD NNP NNP IN VBG NN IN DT NN : CC VBD PRP VBP PRP RB RB IN JJ .
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Mr. Hoelzer , however , sued Stamford , claiming that the city had abandoned the artwork and that it had waited too long to reclaim it . NNP NNP , RB , VBD NNP , VBG IN DT NN VBD VBN DT NN CC IN PRP VBD VBN RB JJ TO VB PRP .
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But Judge Louis L. Stanton of federal court in Manhattan ruled that the city could n't be faulted for waiting too long because it did n't realize until 1986 that its ownership of the painting was in dispute . CC NNP NNP NNP NNP IN JJ NN IN NNP VBD IN DT NN MD RB VB VBN IN VBG RB RB IN PRP VBD RB VB IN CD IN PRP$ NN IN DT NN VBD IN NN .
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The judge also ruled that the painting was n't abandoned because officials did n't intend for it to be thrown away and were unaware that the workmen had discarded it . DT NN RB VBD IN DT NN VBD RB VBN IN NNS VBD RB VB IN PRP TO VB VBN RB CC VBD JJ IN DT NNS VBD VBN PRP .
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Mr. Hoelzer did n't return phone calls seeking comment on the judge 's decision . NNP NNP VBD RB VB NN NNS VBG VB IN DT NN POS NN .
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The judge ordered that a hearing be held Nov. 17 to determine how much the city should pay Mr. Hoelzer for his services . DT NN VBD IN DT NN VB VBN NNP CD TO VB WRB JJ DT NN MD VB NNP NNP IN PRP$ NNS .
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Mary E. Sommer , corporate counsel for Stamford , said the city has discussed several possible plans for displaying the mural , which portrays various scenes from the Great Depression . NNP NNP NNP , JJ NN IN NNP , VBD DT NN VBZ VBN JJ JJ NNS IN VBG DT NN , WDT VBZ JJ NNS IN DT NNP NNP .
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She said the mural `` preserves an era in Stamford and in our country when this type of work was being done . PRP VBD DT NN `` VBZ DT NN IN NNP CC IN PRP$ NN WRB DT NN IN NN VBD VBG VBN .
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The prices of corn futures contracts jumped amid rumors that the Soviet Union is keeping up its dizzying October buying binge of U.S. corn . DT NNS IN NN NNS NNS VBD IN NNS IN DT NNP NNP VBZ VBG IN PRP$ JJ NNP VBG NN IN NNP NN .
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Those rumors were confirmed after the end of trading yesterday when the U.S. Agriculture Department announced that the Soviets had bought 1.2 million metric tons of U.S. corn , bringing their U.S. corn purchases confirmed so far this month to about five million metric tons . DT NNS VBD VBN IN DT NN IN NN NN WRB DT NNP NNP NNP VBD IN DT NNPS VBD VBN CD CD JJ NNS IN NNP NN , VBG PRP$ NNP NN NNS VBD RB RB DT NN TO IN CD CD JJ NNS .
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In trading at the Chicago Board of Trade , the corn contract for December delivery jumped 5.75 cents a bushel to settle at $ 2.44 a bushel . IN NN IN DT NNP NNP IN NNP , DT NN NN IN NNP NN VBD CD NNS DT NN TO VB IN $ CD DT NN .
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The Soviet purchases are close to exceeding what some analysts had expected the Soviet Union to buy this fall , the season in which it usually buys much of the corn it imports from the U.S. . DT JJ NNS VBP RB TO VBG WP DT NNS VBD VBN DT NNP NNP TO VB DT NN , DT NN IN WDT PRP RB VBZ NN IN DT NN PRP VBZ IN DT NNP .
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That pace is causing some analysts to speculate that the Soviet Union might soon purchase as much as another two million metric tons . DT NN VBZ VBG DT NNS TO VB IN DT NNP NNP MD RB VB RB JJ IN DT CD CD JJ NNS .
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One sign that more Soviet purchases are possible is that U.S. grain companies yesterday bought an unusually large amount of corn futures contracts . CD NN IN RBR JJ NNS VBP JJ VBZ IN NNP NN NNS NN VBD DT RB JJ NN IN NN NNS NNS .
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That sometimes signals that they are laying plans to export corn . DT RB VBZ IN PRP VBP VBG NNS TO VB NN .
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By some estimates , several grain companies combined bought contracts for the possession of roughly one million metric tons of corn . IN DT NNS , JJ NN NNS VBN VBD NNS IN DT NN IN RB CD CD JJ NNS IN NN .
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By buying futures contracts , these companies attempt to protect themselves from swings in the price of the corn that they are obligated to deliver . IN VBG NNS NNS , DT NNS VBP TO VB PRP IN NNS IN DT NN IN DT NN IN PRP VBP VBN TO VB .
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Rumors of Soviet interest also pushed up the prices of soybean futures contracts . NNS IN JJ NN RB VBD IN DT NNS IN NN NNS NNS .
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Among other things , the Agriculture Department is widely thought to be mulling whether to subsidize the sale of soybean oil to the Soviet Union . IN JJ NNS , DT NNP NNP VBZ RB VBN TO VB VBG IN TO VB DT NN IN NN NN TO DT NNP NNP .
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On top of all this , corn and soybean prices rose on reports that the Midwest harvest was disrupted by a freakishly early snow storm that dumped several inches in parts of Indiana and Ohio . IN NN IN PDT DT , NN CC NN NNS VBD IN NNS IN DT NNP NN VBD VBN IN DT RB JJ NN NN WDT VBD JJ NNS IN NNS IN NNP CC NNP .
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The harvest delays , however , are expected to be temporary . DT NN NNS , RB , VBP VBN TO VB JJ .
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Balmy temperatures are forecast for next week , said Robert Lekberg , an analyst at Farmers Grain & Livestock Corp. , Chicago . JJ NNS VBP NN IN JJ NN , VBD NNP NNP , DT NN IN NNP NNP CC NNP NNP , NNP .
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Many farmers used the jump in prices to sell their recently harvested crop to grain elevator companies . JJ NNS VBD DT NN IN NNS TO VB PRP$ RB VBN NN TO NN NN NNS .
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The heavy selling by farmers helped to damp the price rally . DT JJ NN IN NNS VBD TO VB DT NN NN .
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Wheat futures prices rose slightly . JJ NNS NNS VBD RB .
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In other commodity markets yesterday : IN JJ NN NNS NN :
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PRECIOUS METALS : JJ NNS :
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Futures prices declined . NNS NNS VBD .
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A number of developments were negatively interpreted by traders . DT NN IN NNS VBD RB VBN IN NNS .
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December delivery gold fell $ 1.80 an ounce to $ 370.60 . NNP NN NN VBD $ CD DT NN TO $ CD .
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December silver eased 2.7 cents an ounce to $ 5.133 . NNP NN VBD CD NNS DT NN TO $ CD .
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January platinum was down $ 3.60 an ounce at $ 491.10 . NNP NN VBD RB $ CD DT NN IN $ CD .
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One price-depressing development was the lower-than-expected increase of only 0.2 % in the consumer price index for September , an analyst said . CD JJ NN VBD DT JJ NN IN RB CD NN IN DT NN NN NN IN NNP , DT NN VBD .
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He noted that the `` core inflation rate , '' which excludes food and energy , was also low at 0.2 % . PRP VBD IN DT `` NN NN NN , '' WDT VBZ NN CC NN , VBD RB JJ IN CD NN .
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Other news that weighed on the market : Initial unemployment claims rose by 62,000 last week ; American Telephone & Telegraph Co. will reduce its managerial staff by 15,000 through attrition ; the oil market turned weaker ; there was n't any investor demand for bullion ; and the dollar strengthened during the day , putting pressure on gold . JJ NN WDT VBD IN DT NN : JJ NN NNS VBD IN CD JJ NN : NNP NNP CC NNP NNP MD VB PRP$ JJ NN IN CD IN NN : DT NN NN VBD JJR : EX VBD RB DT NN NN IN NN : CC DT NN VBN IN DT NN , VBG NN IN NN .
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Also , the analyst said , economic circumstances are such that both South Africa and the Soviet Union , the principal gold and platinum producers , are being forced to continue selling the metals . RB , DT NN VBD , JJ NNS VBP JJ IN DT NNP NNP CC DT NNP NNP , DT JJ NN CC NN NNS , VBP VBG VBN TO VB VBG DT NNS .
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Both are in great need of foreign exchange , and South Africa is also under pressure to meet foreign loan commitments , he said . DT VBP IN JJ NN IN JJ NN , CC NNP NNP VBZ RB IN NN TO VB JJ NN NNS , PRP VBD .
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`` Putting it all together , we have a negative scenario that does n't look like it will improve overnight , '' he said . `` VBG PRP DT RB , PRP VBP DT JJ NN WDT VBZ RB VB IN PRP MD VB JJ , '' PRP VBD .
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COPPER : NN :
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Futures prices recovered in quiet trading . NNS NNS VBD IN JJ NN .
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The December contract rose 1.50 cents a pound to $ 1.2795 . DT NNP NN VBD CD NNS DT NN TO $ CD .
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That contract fell a total of 5.75 cents during the first three days of this week , mostly in reaction to last Friday 's stock market plunge , which prompted concern that it might signal a similar sharp slowing of the U.S. economy and thus reduced demand for copper , a leading industrial metal . DT NN VBD DT NN IN CD NNS IN DT JJ CD NNS IN DT NN , RB IN NN TO VB NNP POS NN NN NN , WDT VBD NN IN PRP MD VB DT JJ JJ NN IN DT NNP NN CC RB VBN NN IN NN , DT VBG JJ NN .
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In recent days , however , there has been increased purchasing of copper in London , an analyst said . IN JJ NNS , RB , EX VBZ VBN VBN VBG IN NN IN NNP , DT NN VBD .
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Some of this buying was by Japan , which has had its supplies sharply reduced by long production stoppages at the Bougainville mine in Papua New Guinea , Highland Valley mine in British Columbia , and the Cananea mine in Mexico , which are major shippers to Japan . DT IN DT VBG VBD IN NNP , WDT VBZ VBN PRP$ NNS RB VBN IN JJ NN NNS IN DT NNP NN IN NNP NNP NNP , NNP NNP NN IN NNP NNP , CC DT NNP NN IN NNP , WDT VBP JJ NNS TO NNP .
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The increasing likelihood that Cananea and Highland Valley will soon return to production may have cut some of that purchasing , but even if any of these mines begin operating soon , their output wo n't be significant until at least the end of the year , analysts note . DT VBG NN IN NNP CC NNP NNP MD RB VB TO NN MD VB VBN DT IN DT NN , CC RB IN DT IN DT NNS VBP VBG RB , PRP$ NN MD RB VB JJ IN IN JJS DT NN IN DT NN , NNS VBP .
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So , one analyst said , even though the long-term production problems may be easing , there will still be a significant need for copper over the next three months , when inventories will remain relatively low . RB , CD NN VBD , RB IN DT JJ NN NNS MD VB VBG , EX MD RB VB DT JJ NN IN NN IN DT JJ CD NNS , WRB NNS MD VB RB JJ .
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ENERGY : NN :
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Crude oil prices ended mixed . JJ NN NNS VBD VBN .
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West Texas Intermediate for November delivery fell 14 cents a barrel to $ 20.42 . NNP NNP NNP IN NNP NN VBD CD NNS DT NN TO $ CD .
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But so-called outer month contracts finished higher . CC JJ JJ NN NNS VBD JJR .
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For instance , December contracts for WTI rose 17 cents to $ 20.42 . IN NN , NNP NNS IN NNP VBD CD NNS TO $ CD .
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Most energy futures opened lower , following Wednesday 's market downturn . JJS NN NNS VBD JJR , VBG NNP POS NN NN .
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But a flurry of late trading yesterday beefed up prices . CC DT NN IN JJ NN NN VBN IN NNS .
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Heating oil and gasoline futures ended higher as well . NN NN CC NN NNS VBD JJR IN RB .
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Melvin Belli 's San Francisco law offices may have been the epicenter of legal activity after Tuesday 's earthquake . NNP NNP POS NNP NNP NN NNS MD VB VBN DT NN IN JJ NN IN NNP POS NN .
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In the first 25 minutes after his office 's telephone service was restored yesterday morning , 17 potential clients had called seeking the services of the self-proclaimed King of Torts . IN DT JJ CD NNS IN PRP$ NN POS NN NN VBD VBN NN NN , CD JJ NNS VBD VBN VBG DT NNS IN DT JJ NNP IN NNP .
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Mr. Belli , like many other personal-injury lawyers , suspects that the earthquake , which measured 6.9 on the Richter scale , will generate enough lawsuits to keep this city 's personal-injury and construction lawyers busy for quite some time . NNP NNP , IN JJ JJ JJ NNS , VBZ IN DT NN , WDT VBD CD IN DT NNP NN , MD VB JJ NNS TO VB DT NN POS NN CC NN NNS JJ IN RB DT NN .
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Suits are likely to be filed against engineering firms , contractors and developers , as well as against local-government agencies . NNS VBP JJ TO VB VBN IN NN NNS , NNS CC NNS , RB RB IN IN JJ NNS .
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But lawyers looking to cash in on the quake may have a tough time once their cases reach a judge . CC NNS VBG TO VB IN IN DT NN MD VB DT JJ NN RB PRP$ NNS VBP DT NN .
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Experts on California tort law say protections afforded government agencies in such cases are pretty ironclad . NNS IN NNP NN NN VBP NNS VBD NN NNS IN JJ NNS VBP RB JJ .
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Even claims against individuals and companies face significant roadblocks . RB VBZ IN NNS CC NNS VBP JJ NNS .
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The major legal barrier is the principle that no one can be held liable for an `` act of God . '' DT JJ JJ NN VBZ DT NN IN DT PRP MD VB VBN JJ IN DT `` NN IN NNP . ''
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For now , says Laurence Drivon , president-elect of the 6,000-member California Trial Lawyers Association , `` the last thing we really need to worry about is whether anybody is going to get sued , or whether they have liability or not . IN RB , VBZ NNP NNP , NN IN DT NNP NNP NNP NNP NNP , `` DT JJ NN PRP RB VBP TO VB IN VBZ IN NN VBZ VBG TO VB VBD , CC IN PRP VBP NN CC RB .
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We still have people wandering around in a daze in San Francisco worrying about whether it 's going to rain tonight . '' PRP RB VBP NNS VBG IN IN DT NN IN NNP NNP VBG IN IN PRP VBZ VBG TO VB RB . ''
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But that wo n't stop plaintiffs ' lawyers from seeking a little room for maneuvering . CC DT MD RB VB NNS POS NNS IN VBG DT JJ NN IN NN .
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In San Francisco , they argue , an earthquake was a near certainty . IN NNP NNP , PRP VBP , DT NN VBD DT JJ NN .
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Therefore , engineering firms , construction contractors and developers can be sued for not keeping structures up to standard , and government agencies can be held accountable for failing to properly protect citizens from such a foreseeable disaster , if negligence can be proven . RB , NN NNS , NN NNS CC NNS MD VB VBN IN RB VBG NNS IN TO JJ , CC NN NNS MD VB VBN JJ IN VBG TO RB VB NNS IN JJ DT JJ NN , IN NN MD VB VBN .
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`` My prediction is there will be mass litigation over errors and omissions in engineering and contracting , '' says Stanley Chesley , a well-known Cincinnati plaintiffs lawyer . `` PRP$ NN VBZ EX MD VB NN NN IN NNS CC NNS IN NN CC NN , '' VBZ NNP NNP , DT JJ NNP NNS NN .
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From what he saw on television , Mr. Chesley points out that Interstate 880 , which collapsed and killed more than 200 commuters , suffered serious damage while surrounding buildings appeared to sustain no damage whatsoever . IN WP PRP VBD IN NN , NNP NNP VBZ RP IN NNP CD , WDT VBD CC VBN JJR IN CD NNS , VBD JJ NN IN VBG NNS VBD TO VB DT NN RB .
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He adds that `` they were aware of the propensity for earthquakes and the San Andreas Fault . '' PRP VBZ IN `` PRP VBD JJ IN DT NN IN NNS CC DT NNP NNP NNP . ''
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The flamboyant and publicity-conscious Mr. Belli says he already has investigators looking into who could be held liable for the damage on the Bay Bridge and the interstate approaching it . DT JJ CC JJ NNP NNP VBZ PRP RB VBZ NNS VBG IN WP MD VB VBN JJ IN DT NN IN DT NNP NNP CC DT JJ VBG PRP .
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`` We wo n't know until the smoke clears -- but yes , we 're looking into it , '' he says . `` PRP MD RB VB IN DT NN VBZ : CC UH , PRP VBP VBG IN PRP , '' PRP VBZ .
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Mr. Belli says he wants to know whether state or federal engineers or private companies could have prevented the damage . NNP NNP VBZ PRP VBZ TO VB IN NN CC JJ NNS CC JJ NNS MD VB VBN DT NN .
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Mr. Belli , who was at Candlestick Park for the World Series Tuesday night , says he has hired civil engineers to check out his own mildly damaged building and to investigate the bridge collapse . NNP NNP , WP VBD IN NNP NNP IN DT NNP NNP NNP NN , VBZ PRP VBZ VBN JJ NNS TO VB IN PRP$ JJ RB VBN NN CC TO VB DT NN NN .
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Defense lawyers , perhaps understandably , say that plaintiffs ' lawyers taking such an approach will have little success in pursuing their claims , though they add that the facts of each case must be looked at individually . NN NNS , RB RB , VBP IN NNS POS NNS VBG JJ DT NN MD VB JJ NN IN VBG PRP$ NNS , IN PRP VBP IN DT NNS IN DT NN MD VB VBN IN RB .
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`` A lot of this is going to be code-related , '' says Ignazio J. Ruvolo , a construction law specialist at Bronson , Bronson & McKinnon , a San Francisco law firm . `` DT NN IN DT VBZ VBG TO VB JJ , '' VBZ NNP NNP NNP , DT NN NN NN IN NNP , NNP CC NNP , DT NNP NNP NN NN .
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Plaintiffs , he says , will argue that damaged structures were n't built to proper design standards . NNS , PRP VBZ , MD VB WDT VBD NNS VBD RB VBN TO JJ NN NNS .
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But if defendants can prove that they met San Francisco 's stringent building codes , `` that 's probably going to protect them , '' Mr. Ruvolo says . CC IN NNS MD VB IN PRP VBD NNP NNP POS JJ NN NNS , `` DT VBZ RB VBG TO VB PRP , '' NNP NNP VBZ .
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Government entities , continues Mr. Ruvolo , could be protected by the California Government Tort Liability Act . NN NNS , VBZ NNP NNP , MD VB VBN IN DT NNP NNP NNP NNP NNP .
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Under the statute , agencies are provided `` defenses that normally are n't available in the private sector , '' Mr. Ruvolo says . IN DT NN , NNS VBP VBN `` NNS IN RB VBP RB JJ IN DT JJ NN , '' NNP NNP VBZ .
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`` The legislature does not want to inhibit the unique government activities by exposing public entities to liability . '' `` DT NN VBZ RB VB TO VB DT JJ NN NNS IN VBG JJ NNS TO NN . ''
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Built into the statute are so-called design immunities , which are likely to protect government agencies , according to Mr. Ruvolo and Richard Covert , a lawyer with the California Department of Transportation , which oversees the damaged Bay Bridge . VBN IN DT NN VBP JJ NN NNS , WDT VBP JJ TO VB NN NNS , VBG TO NNP NNP CC NNP NNP , DT NN IN DT NNP NNP IN NNP , WDT VBZ DT VBN NNP NNP .
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The state is protected when plans and designs for public structures were approved ahead of time or when structures met previously approved standards , says Mr. Covert . DT NN VBZ VBN WRB NNS CC NNS IN JJ NNS VBD VBN RB IN NN CC WRB NNS VBD RB VBN NNS , VBZ NNP NNP .
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He believes those defenses might well apply to the Bay Bridge collapse . PRP VBZ DT NNS MD RB VB TO DT NNP NNP NN .
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Nevertheless , he adds , `` I would n't get totally shocked if we get lawsuits out of the Bay Bridge . '' RB , PRP VBZ , `` PRP MD RB VB RB VBN IN PRP VBP NNS IN IN DT NNP NNP . ''
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If there 's going to be a race to the courthouse , it has n't started yet . IN EX VBZ VBG TO VB DT NN TO DT NN , PRP VBZ RB VBN RB .
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Mr. Covert had to search through law books scattered on the floor of his office yesterday , and Mr. Belli 's courtyard was strewn with bricks . NNP NNP VBD TO VB IN NN NNS VBN IN DT NN IN PRP$ NN NN , CC NNP NNP POS NN VBD VBN IN NNS .
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Wednesday , Mr. Belli 's staff was n't permitted into his office by city officials worried about their safety . NNP , NNP NNP POS NN VBD RB VBN IN PRP$ NN IN NN NNS VBN IN PRP$ NN .
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He said he set up shop on the sidewalk in front of his town-house office and helped victims apply for federal aid -- free of charge . PRP VBD PRP VBD IN NN IN DT NN IN NN IN PRP$ JJ NN CC VBD NNS VBP IN JJ NN : JJ IN NN .
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In a news release issued by Mr. Drivon , the trial lawyers association also promised free assistance to victims . IN DT NN NN VBN IN NNP NNP , DT NN NNS NN RB VBD JJ NN TO NNS .
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The association said it would monitor the conduct of lawyers and warned that solicitation of business is unethical . DT NN VBD PRP MD VB DT NN IN NNS CC VBD DT NN IN NN VBZ JJ .
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What 's in a name ? WP VBZ IN DT NN .
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Apparently a lot , according to the British firm of Deloitte , Haskins & Sells . RB DT NN , VBG TO DT JJ NN IN NNP , NNP CC NNP .
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The British firm has begun court proceedings in London to prevent the use of the name `` Deloitte '' by Deloitte , Haskins & Sells and Touche Ross & Co. in England and the rest of the world . DT JJ NN VBZ VBN NN NNS IN NNP TO VB DT NN IN DT NN `` NNP '' IN NNP , NNP CC NNP CC NNP NNP CC NNP IN NNP CC DT NN IN DT NN .
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The British Deloitte firm recently withdrew from the merger of Deloitte and Touche world-wide and joined Coopers & Lybrand . DT NNP NNP NN RB VBD IN DT NN IN NNP CC NNP JJ CC VBD NNP CC NNP .
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John Bullock , senior partner of Deloitte in the U.K. , said `` the decision to start these proceedings has n't been taken lightly . '' NNP NNP , JJ NN IN NNP IN DT NNP , VBD `` DT NN TO VB DT NNS VBZ RB VBN VBN RB . ''
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Mr. Bullock said the British firm has used the name `` Deloitte '' since 1845 . NNP NNP VBD DT JJ NN VBZ VBN DT NN `` NNP '' IN CD .
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In the U.S. , Deloitte , Haskins & Sells was known as Haskins & Sells until 1978 , when it added the `` Deloitte '' name of its British affiliate . IN DT NNP , NNP , NNP CC NNP VBD VBN IN NNP CC NNP IN CD , WRB PRP VBD DT `` NNP '' NN IN PRP$ JJ NN .
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John C. Burton , an accounting professor at Columbia University 's Graduate School of Business , said `` there 's a lot of emotion involved in the name of an accounting firm with a long history and with roots in England , where accounting predates the U.S. . '' NNP NNP NNP , DT NN NN IN NNP NNP POS NNP NNP IN NNP , VBD `` EX VBZ DT NN IN NN VBN IN DT NN IN DT NN NN IN DT JJ NN CC IN NNS IN NNP , WRB NN VBZ DT NNP . ''
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Although accountants are n't noted as `` being deeply emotional , they really hold it all in , '' said Mr. Burton , former chief accountant of the Securities and Exchange Commission . IN NNS VBP RB VBN IN `` VBG RB JJ , PRP RB VBP PRP DT NN , '' VBD NNP NNP , JJ JJ NN IN DT NNP CC NNP NNP .
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J. Michael Cook , chairman of Deloitte , Haskins & Sells International , said he believes the legal action by the British firm `` to be without merit . '' NNP NNP NNP , NN IN NNP , NNP CC NNP NNP , VBD PRP VBZ DT JJ NN IN DT JJ NN `` TO VB IN NN . ''
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Mr. Cook said that last June , the international executive committes of Deloitte and Touche agreed to a world-wide merger . NNP NNP VBD IN JJ NNP , DT JJ NN NNS IN NNP CC NNP VBD TO DT JJ NN .
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`` The merger is proceeding according to plan , except as to the withdrawal of the Deloitte U.K. firm , '' he said . `` DT NN VBZ VBG VBG TO VB , IN IN TO DT NN IN DT NNP NNP NN , '' PRP VBD .
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Partners at other accounting firms say that the Deloitte firm in the U.K. is filing the suit to get even with the merged Deloitte-Touche firm for keeping major auditing work in England . NNS IN JJ NN NNS VBP IN DT NNP NN IN DT NNP VBZ VBG DT NN TO VB RB IN DT VBN NNP NN IN VBG JJ NN NN IN NNP .
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General Motors Corp. , a Deloitte audit client , for example , has agreed to keep its annual $ 18 million world-wide audit and associated tax work with the merged Deloitte-Touche firm , to be known as Deloitte & Touche in the U.S. . NNP NNPS NNP , DT NNP NN NN , IN NN , VBZ VBN TO VB PRP$ JJ $ CD CD JJ NN CC VBN NN NN IN DT VBN NNP NN , TO VB VBN IN NNP CC NNP IN DT NNP .
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In England , this would mean that the British Deloitte would lose revenue for its audit of GM 's Vauxhill unit . IN NNP , DT MD VB IN DT NNP NNP MD VB NN IN PRP$ NN IN NNP POS NNP NN .
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The defection of Deloitte 's affiliates in Britain and the Netherlands to Coopers & Lybrand will make Coopers one of the biggest accounting firms in Europe , rivaling KPMG Peat Marwick there . DT NN IN NNP POS NNS IN NNP CC DT NNP TO NNP CC NNP MD VB NNP CD IN DT JJS NN NNS IN NNP , VBG NNP NNP NNP RB .
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Although Coopers has n't been courted by other major accounting firms for a merger , it is benefiting greatly from fallout from the Deloitte-Touche merger . IN NNP VBZ RB VBN VBN IN JJ JJ NN NNS IN DT NN , PRP VBZ VBG RB IN NN IN DT NNP NN .
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In New York , Harris Amhowitz , general counsel of Coopers , said Coopers `` was aware of the litigation , '' but he declined further comment . IN NNP NNP , NNP NNP , JJ NN IN NNP , VBD NNP `` VBD JJ IN DT NN , '' CC PRP VBD JJ NN .
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He also declined to comment on the name that Coopers would use in England if Deloitte UK won its litigation to keep its name . PRP RB VBD TO VB IN DT NN IN NNP MD VB IN NNP IN NNP NNP VBD PRP$ NN TO VB PRP$ NN .
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Coopers uses the Coopers & Lybrand name world-wide . NNP VBZ DT NNP CC NNP NN JJ .
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William Bennett , the White House drug-policy director , accused local officials in the Washington area of blocking construction of prison facilities to house convicted drug dealers . NNP NNP , DT NNP NNP NN NN , VBN JJ NNS IN DT NNP NN IN VBG NN IN NN NNS TO VB VBN NN NNS .
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`` Politics has essentially put up a roadblock '' to finding sites for new federal prisons , Mr. Bennett said at a news conference called to report on his `` emergency assistance program '' for the capital . `` NNP VBZ RB VB IN DT NN '' TO VBG NNS IN JJ JJ NNS , NNP NNP VBD IN DT NN NN VBN TO VB IN PRP$ `` NN NN NN '' IN DT NN .
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Without more space to incarcerate convicted criminals , he added , `` we will not win the war on drugs . '' IN JJR NN TO VB VBN NNS , PRP VBD , `` PRP MD RB VB DT NN IN NNS . ''
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Mr. Bennett declared in April that he would make Washington a `` test case '' for how the Bush administration would aid cities afflicted by heavy drug trafficking and violence . NNP NNP VBD IN NNP IN PRP MD VB NNP DT `` NN NN '' IN WRB DT NNP NN MD VB NNS VBN IN JJ NN NN CC NN .
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The drug czar claimed that enforcement efforts are working here , `` albeit at a slower and more halting pace than we would like . '' DT NN NN VBD IN NN NNS VBP VBG RB , `` IN IN DT JJR CC JJR VBG NN IN PRP MD IN . ''
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He acknowledged , however , that Washington 's `` drug-related murder rate is intolerably high . PRP VBD , RB , IN NNP POS `` JJ NN NN VBZ RB JJ .
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The prisons are too crowded . DT NNS VBP RB VBN .
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Drugs continue to be sold openly around schools , parks and housing projects . '' NNS VBP TO VB VBN RB IN NNS , NNS CC NN NNS . ''
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Mr. Bennett declined to name the area officials who he believes have impeded plans for building more federal prisons to ease Washington 's problem . NNP NNP VBD TO VB DT NN NNS WP PRP VBZ VBP VBN NNS IN NN RBR JJ NNS TO VB NNP POS NN .
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But other Bush administration officials have criticized Maryland Gov. William Schaefer for blocking the use of possible sites in that state . CC JJ NNP NN NNS VBP VBN NNP NNP NNP NNP IN VBG DT NN IN JJ NNS IN DT NN .
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Administration officials also have said that Washington Mayor Marion Barry has delayed consideration of sites in the city . NN NNS RB VBP VBD IN NNP NNP NNP NNP VBZ VBN NN IN NNS IN DT NN .
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In a letter to Mr. Bennett 's office , released yesterday , Washington 's city administrator , Carol Thompson , complained that the drug czar had exaggerated the amount of federal drug-related assistance provided to the capital . IN DT NN TO NNP NNP POS NN , VBN NN , NNP POS NN NN , NNP NNP , VBD IN DT NN NN VBD VBN DT NN IN JJ JJ NN VBN TO DT NN .
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Referring to Mr. Bennett 's claim that the federal government would provide $ 97 million in emergency federal support , Ms. Thompson wrote , `` Our analysis was unable to even come close to documenting that figure . '' VBG TO NNP NNP POS NN IN DT JJ NN MD VB $ CD CD IN NN JJ NN , NNP NNP VBD , `` PRP$ NN VBD JJ TO RB VB RB TO VBG DT NN . ''
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Of his successes in Washington , Mr. Bennett stressed that existing federal prisons have taken custody of 375 local inmates . IN PRP$ NNS IN NNP , NNP NNP VBD IN VBG JJ NNS VBP VBN NN IN CD JJ NNS .
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He also noted that the federal Drug Enforcement Administration has established a federal-local task force responsible since April for 106 arrests and more than $ 2 million in seizures of drug dealers ' assets . PRP RB VBD IN DT JJ NNP NNP NNP VBZ VBN DT JJ NN NN JJ IN NNP IN CD NNS CC JJR IN $ CD CD IN NNS IN NN NNS POS NNS .
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The Defense Department has lent the Washington U.S. attorney 10 prosecutors , and the Federal Bureau of Investigation has provided crime laboratory facilities and training , he added . DT NNP NNP VBZ VBN DT NNP NNP NN CD NNS , CC DT NNP NNP IN NNP VBZ VBN NN NN NNS CC NN , PRP VBD .
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What if it happened to us ? WP IN PRP VBD TO PRP .
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In the wake of the earthquake in California and the devastation of Hurricane Hugo , many companies in disaster-prone areas are pondering the question of preparedness . IN DT NN IN DT NN IN NNP CC DT NN IN NNP NNP , JJ NNS IN JJ NNS VBP VBG DT NN IN NN .
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Some , particularly in West Coast earthquake zones , are dusting off their evacuation plans , checking food stocks and reminding employees of what to do if emergency strikes . DT , RB IN NNP NNP NN NNS , VBP VBG IN PRP$ NN NNS , VBG NN NNS CC VBG NNS IN WP TO VB IN NN NNS .
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Others say they feel confident that steps they 've already taken would see them through a disaster . NNS VBP PRP VBP JJ IN NNS PRP VBP RB VBN MD VB PRP IN DT NN .
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Preparedness involves more than flashlights and fire alarms these days . NN VBZ JJR IN NNS CC NN VBZ DT NNS .
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Some big companies have teams of in-house experts focusing on safety and business resumption . DT JJ NNS VBP NNS IN JJ NNS VBG IN NN CC NN NN .
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Many companies in the path of potential disaster have set up contingency offices in safe regions , hoping they can transport employees there and resume operations quickly . JJ NNS IN DT NN IN JJ NN VBP VBN IN NN NNS IN JJ NNS , VBG PRP MD VB NNS EX CC VB NNS RB .
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That means making sure that copies of vital computer software and company records are out of harm 's way . DT VBZ VBG JJ IN NNS IN JJ NN NN CC NN NNS VBP IN IN NN POS NN .
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Some businesses -- like Disneyland -- claim that even if they became isolated in a crisis , they would be able to feed and care for their people for as long as five days . DT NNS : IN NNP : NN IN RB IN PRP VBD VBN IN DT NN , PRP MD VB JJ TO VB CC NN IN PRP$ NNS IN RB RB IN CD NNS .
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`` Self-sufficiency has to be the cornerstone of your plan , '' says Stephanie Masaki-Schatz , manager of corporate emergency planning at Atlantic Richfield Co. in Los Angeles . `` NN VBZ TO VB DT NN IN PRP$ NN , '' VBZ NNP NNP , NN IN JJ NN NN IN NNP NNP NNP IN NNP NNP .
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`` If you do n't save your critical people , you wo n't be able to bring up your vital business functions . '' `` IN PRP VBP RB VB PRP$ JJ NNS , PRP MD RB VB JJ TO VB IN PRP$ JJ NN NNS . ''
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Although ARCO 's head office , more than 300 miles from the epicenter , was n't affected by this week 's tremors , Ms. Masaki-Schatz used the occasion to distribute a three-page memo of `` Earthquake Tips '' to 1,200 ARCO employees . IN NNP POS NN NN , JJR IN CD NNS IN DT NN , VBD RB VBN IN DT NN POS NNS , NNP NNP VBD DT NN TO VB DT JJ NN IN `` NNP NNP '' TO CD NNP NNS .
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`` You need to capitalize on these moments when you have everyone 's attention , '' she says . `` PRP VBP TO VB IN DT NNS WRB PRP VBP NN POS NN , '' PRP VBZ .
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`` It was a good reminder that we all need to prepare prior to an event . '' `` PRP VBD DT JJ NN IN PRP DT NN TO VB RB TO DT NN . ''
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The ARCO memo urges employees to keep certain supplies at work , such as solid shoes and `` heavy gloves to clear debris . '' DT NNP NN VBZ NNS TO VB JJ NNS IN NN , JJ IN JJ NNS CC `` JJ NNS TO VB NN . ''
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It also recommends that employees be aware of everyday office items that could be used for emergency care or shelter . PRP RB VBZ IN NNS VBP JJ IN JJ NN NNS WDT MD VB VBN IN NN NN CC NN .
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Among the suggestions : Pantyhose and men 's ties could be used for slings , while removable wooden shelves might aid in `` breaking through office walls . '' IN DT NNS : NN CC NNS POS NNS MD VB VBN IN NNS , IN JJ JJ NNS MD VB IN `` VBG IN NN NNS . ''
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ARCO maintains an office in Dallas that would take over if payroll operations in Pasadena were disrupted . NNP VBZ DT NN IN NNP WDT MD VB IN IN NN NNS IN NNP VBD VBN .
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Two months ago the company set up a toll-free number , based outside California , to handle queries from employees about when they should report back to work after an earthquake or other disaster . CD NNS RB DT NN VBN IN DT JJ NN , VBN IN NNP , TO VB NNS IN NNS IN WRB PRP MD VB RB TO VB IN DT NN CC JJ NN .
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The ARCO plan takes into account such details as which aspects of business are busier at certain times of the year . DT NNP NN VBZ IN NN JJ NNS IN WDT NNS IN NN VBP JJR IN JJ NNS IN DT NN .
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This way , depending on when a quake might strike , priorities can be assigned to departments that should be brought back on line first . DT NN , VBG IN WRB DT NN MD VB , NNS MD VB VBN TO NNS WDT MD VB VBN RB IN NN JJ .
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At Hewlett-Packard Co. , the earthquake came just as the company was reviewing its own emergency procedures . IN NNP NNP , DT NN VBD RB IN DT NN VBD VBG PRP$ JJ NN NNS .
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`` We were talking about scheduling a practice drill for November , '' says Joan Tharp , a spokeswoman . `` PRP VBD VBG IN VBG DT NN NN IN NNP , '' VBZ NNP NNP , DT NN .
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`` Then we had a real one in the afternoon . '' `` RB PRP VBD DT JJ CD IN DT NN . ''
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The Palo Alto , Calif. , computer maker scrambled to set up a special phone line to tell manufacturing and support staff to stay home Wednesday . DT NNP NNP , NNP , NN NN VBD TO VB IN DT JJ NN NN TO VB NN CC NN NN TO VB NN NNP .
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Sales and service employees were asked to report to work to help Bay area clients who called with computer problems . NNS CC NN NNS VBD VBN TO VB TO VB TO VB NNP NN NNS WP VBD IN NN NNS .
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Hewlett-Packard also called in its systems experts to restore its own computer operations . NNP RB VBD IN PRP$ NNS NNS TO VB PRP$ JJ NN NNS .
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`` That means we can accept orders '' and begin getting back to normal , says Ms. Tharp . `` DT VBZ PRP MD VB NNS '' CC VB VBG RB TO JJ , VBZ NNP NNP .
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Prompted by an earlier California earthquake , as well as a fire in a Los Angeles office tower , Great Western Bank in the past year hired three emergency planners and spent $ 75,000 equipping a trailer with communications gear to serve as an emergency headquarters . VBN IN DT RBR NNP NN , RB RB IN DT NN IN DT NNP NNP NN NN , NNP NNP NNP IN DT JJ NN VBN CD NN NNS CC VBD $ CD VBG DT NN IN NNS VBP TO VB IN DT NN NN .
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Although officials of the savings and loan , a unit of Great Western Financial Corp. , used some of their new plans and equipment during this week 's quake , they still lost touch for more than 24 hours with 15 branches in the affected areas , not knowing if employees were injured or vaults were broken open . IN NNS IN DT NNS CC NN , DT NN IN NNP NNP NNP NNP , VBD DT IN PRP$ JJ NNS CC NN IN DT NN POS NN , PRP RB VBD NN IN JJR IN CD NNS IN CD NNS IN DT VBN NNS , RB VBG IN NNS VBD VBN CC NNS VBD VBN JJ .
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`` Some people flat out did n't know what to do , '' says Robert G. Lee , vice president for emergency planning and corporate security at Great Western . `` DT NNS JJ IN VBD RB VB WP TO VB , '' VBZ NNP NNP NNP , NN NN IN NN NN CC JJ NN IN NNP JJ .
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As it turned out , bank employees were n't hurt and the vaults withstood the jolts . IN PRP VBD IN , NN NNS VBD RB VBN CC DT NNS VBD DT NNS .
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Still , says Mr. Lee : `` We need to educate people that they need to get to a phone somehow , some way , to let someone know what their status is . '' RB , VBZ NNP NNP : `` PRP VBP TO VB NNS IN PRP VBP TO VB TO DT NN RB , DT NN , TO VB NN NN WP PRP$ NN NNS . ''
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Some companies are confident that they 're prepared . DT NNS VBP JJ IN PRP VBP VBN .
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Occidental Petroleum Corp. holds regular evacuation drills and stocks food , oxygen and non-prescription drugs at checkpoints in its 16-story headquarters . NNP NNP NNP VBZ JJ NN NNS CC NNS NN , NN CC JJ NNS IN NNS IN PRP$ JJ NN .
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The company also maintains rechargeable flashlights in offices and changes its standby supply of drinking water every three months . DT NN RB VBZ JJ NNS IN NNS CC NNS PRP$ JJ NN IN NN NN DT CD NNS .
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`` We feel we are doing everything we can , '' an Occidental spokesman says . `` PRP VBP PRP VBP VBG NN PRP MD , '' DT NNP NN NNS .
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Walt Disney Co. 's Disneyland in Anaheim , Calif. , stocks rescue equipment , medical supplies , and enough food and water to feed at least 10,000 visitors for as long as five days in the event that a calamity isolates the theme park . NNP NNP NNP POS NNP IN NNP , NNP , NNS NN NN , JJ NNS , CC JJ NN CC NN TO VB IN JJS CD NNS IN RB RB IN CD NNS IN DT NN IN DT NN VBZ DT NN NN .
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The park also has emergency centers where specially trained employees would go to coordinate evacuation and rescue plans using walkie-talkies , cellular phones , and a public-address system . DT NN RB VBZ NN NNS WRB RB VBN NNS MD VB TO VB NN CC NN NNS VBG NNS , JJ NNS , CC DT JJ NN .
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The centers are complete with maps detailing utility lines beneath rides and `` safe havens '' where people can be assembled away from major structures . DT NNS VBP JJ IN NNS VBG NN NNS IN NNS CC `` JJ NNS '' WRB NNS MD VB VBN RB IN JJ NNS .
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Vista Chemical Co. , with three chemical plants in and near Lake Charles , La. , `` prepares for every hurricane that enters the Gulf of Mexico , '' says Keith L. Fogg , a company safety director . NNP NNP NNP , IN CD NN NNS IN CC IN NNP NNP , NNP , `` VBZ IN DT NN WDT VBZ DT NNP IN NNP , '' VBZ NNP NNP NNP , DT NN NN NN .
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Hurricane Hugo , an Atlantic storm , did n't affect Vista . NNP NNP , DT NNP NN , VBD RB VB NNP .
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But two other major storms have threatened operations so far this year , most recently Hurricane Jerry this week . CC CD JJ JJ NNS VBP VBN NNS RB RB DT NN , RBS RB NNP NNP DT NN .
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Because hurricanes can change course rapidly , the company sends employees home and shuts down operations in stages -- the closer a storm gets , the more complete the shutdown . IN NNS MD VB NN RB , DT NN VBZ NNS VBP CC VBZ JJ NNS IN NNS : DT JJR DT NN VBZ , DT RBR VB DT NN .
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The company does n't wait until the final hours to get ready for hurricanes . DT NN VBZ RB VB IN DT JJ NNS TO VB JJ IN NNS .
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`` There are just tons of things that have to be considered , '' Mr. Fogg says . `` EX VBP RB NNS IN NNS WDT VBP TO VB VBN , '' NNP NNP VBZ .
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`` Empty tank cars will float away on you if you get a big tidal surge . '' `` JJ NN NNS MD VB RB IN PRP IN PRP VBP DT JJ JJ NN . ''
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Still , Vista officials realize they 're relatively fortunate . RB , NNP NNS VBP PRP VBP RB JJ .
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`` With a hurricane you know it 's coming . `` IN DT NN PRP VBP PRP VBZ VBG .
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You have time to put precautionary mechanisms in place , '' notes a Vista spokeswoman . PRP VBP NN TO VB JJ NNS IN NN , '' VBZ DT NNP NN .
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`` A situation like San Francisco is so frightening because there 's no warning . `` DT NN IN NNP NNP VBZ RB JJ IN EX VBZ DT NN .
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Former Democratic fund-raiser Thomas M. Gaubert , whose savings and loan was wrested from his control by federal thrift regulators , has been granted court permission to sue the regulators . JJ JJ NN NNP NNP NNP , WP$ NNS CC NN VBD VBN IN PRP$ NN IN JJ NN NNS , VBZ VBN VBN NN NN TO VB DT NNS .
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In a ruling by the Fifth U.S. Circuit Court of Appeals in New Orleans , Mr. Gaubert received the go-ahead to pursue a claim against the Federal Home Loan Bank Board and the Federal Home Loan Bank of Dallas for losses he suffered when the Bank Board closed the Independent American Savings Association of Irving , Texas . IN DT NN IN DT NNP NNP NNP NNP IN NNPS IN NNP NNP , NNP NNP VBD DT NN TO VB DT NN IN DT NNP NNP NNP NNP NNP CC DT NNP NNP NNP NNP IN NNP IN NNS PRP VBD WRB DT NNP NNP VBD DT NNP NNP NNP NNP IN NNP , NNP .
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Mr. Gaubert , who was chairman and the majority stockholder of Independent American , had relinquished his control in exchange for federal regulators ' agreement to drop their inquiry into his activities at another savings and loan . NNP NNP , WP VBD NN CC DT NN NN IN NNP NNP , VBD VBN PRP$ NN IN NN IN JJ NNS POS NN TO VB PRP$ NN IN PRP$ NNS IN DT NNS CC NN .
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As part of the agreement , Mr. Gaubert contributed real estate valued at $ 25 million to the assets of Independent American . IN NN IN DT NN , NNP NNP VBD JJ NN VBN IN $ CD CD TO DT NNS IN NNP NNP .
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While under the control of federal regulators , Independent American 's net worth dropped from $ 75 million to a negative $ 400 million , wiping out the value of Mr. Gaubert 's real estate contribution and his stock in the institution . IN IN DT NN IN JJ NNS , NNP NNP POS JJ NN VBD IN $ CD CD TO DT JJ $ CD CD , VBG IN IN NN IN NNP NNP POS JJ NN NN CC PRP$ NN IN DT NN .
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Mr. Gaubert 's suit to recover his damages was dismissed last year by U.S. District Judge Robert Maloney of Dallas under the Federal Tort Claims Act , which offers broad protection for actions by federal agencies and employees . NNP NNP POS NN TO VB PRP$ NNS VBD VBN JJ NN IN NNP NNP NNP NNP NNP IN NNP IN DT NNP NNP NNP NNP , WDT VBZ JJ NN IN NNS IN JJ NNS CC NNS .
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Earlier this week , a Fifth Circuit appellate panel upheld Judge Maloney 's dismissal of Mr. Gaubert 's claim as a shareholder but said the judge should reconsider Mr. Gaubert 's claim for the loss of his property . RBR DT NN , DT NNP NNP JJ NN VBD NNP NNP POS NN IN NNP NNP POS NN IN DT NN CC VBD DT NN MD VB NNP NNP POS NN IN DT NN IN PRP$ NN .
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`` It may depend on whether there was an express or implied promise ... that the federal officials would not negligently cause the deterioration '' of Independent American , the court wrote . `` PRP MD VB IN IN EX VBD DT NN CC VBN NN : IN DT JJ NNS MD RB RB VBG DT NN '' IN NNP NNP , DT NN VBD .
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Mr. Gaubert 's lawyer , Abbe David Lowell of Washington , D.C. , says the impact of the ruling on other cases involving thrift takeovers will depend on the degree of similarity in the facts . NNP NNP POS NN , NNP NNP NNP IN NNP , NNP , VBZ DT NN IN DT NN IN JJ NNS VBG NN NNS MD VB IN DT NN IN NN IN DT NNS .
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`` I do n't know if this will affect one institution or a hundred , '' Mr. Lowell says . `` PRP VBP RB VB IN DT MD VB CD NN CC DT CD , '' NNP NNP VBZ .
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`` It does establish a very clear precedent for suing the FHLBB where there was none before . '' `` PRP VBZ VB DT RB JJ NN IN VBG DT NNP WRB EX VBD NN IN . ''
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MAITRE'D CLAIMS in suit that restaurant fired her because she was pregnant . NNP VBZ IN NN DT NN VBD PRP IN PRP VBD JJ .
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In a suit filed in state court in Manhattan , the American Civil Liberties Union is representing the former maitre 'd of the chic Odeon restaurant . IN DT NN VBN IN NN NN IN NNP , DT NNP NNP NNP NNP VBZ VBG DT JJ NNP MD IN DT JJ NNP NN .
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The suit , which seeks compensatory and punitive damages of $ 1 million , alleges that the firing of Marcia Trees Levine violated New York state 's human-rights law . DT NN , WDT VBZ JJ CC JJ NNS IN $ CD CD , VBZ IN DT NN IN NNP NNP NNP VBD NNP NNP NN POS JJ NN .
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Among other things , the law prohibits discrimination on the basis of sex and pregnancy . IN JJ NNS , DT NN VBZ NN IN DT NN IN NN CC NN .
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The suit alleges that Ms. Levine was fired after she refused to accept a lower paying , less visible job upon reaching her sixth month of pregnancy . DT NN VBZ IN NNP NNP VBD VBN IN PRP VBD TO VB DT JJR VBG , RBR JJ NN IN VBG PRP$ JJ NN IN NN .
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Ms. Levine told her employer that she was pregnant in February ; a month later , the suit says , the restaurant manager told Ms. Levine that she would be demoted to his assistant because he felt customers would be uncomfortable with a pregnant maitre 'd . NNP NNP VBD PRP$ NN IN PRP VBD JJ IN NNP : DT NN RB , DT NN VBZ , DT NN NN VBD NNP NNP IN PRP MD VB VBN TO PRP$ NN IN PRP VBD NNS MD VB JJ IN DT JJ NNP MD .
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Kary Moss , an attorney with the ACLU 's Women 's Rights Project , said , `` They wanted a svelte-looking woman , and a pregnant woman is not svelte . NNP NNP , DT NN IN DT NNP POS NNP POS NNP NNP , VBD , `` PRP VBD DT JJ NN , CC DT JJ NN VBZ RB JJ .
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They told her , ` We do n't hire fat people and we do n't hire cripples . PRP VBD PRP$ , `` PRP VBP RB VB JJ NNS CC PRP VBP RB VB NNS .
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And pregnant women are fat . ' '' CC JJ NNS VBP JJ . '' ''
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Ms. Moss said Ms. Levine secretly taped many conversations with her bosses at the Odeon in which they told her she was being fired as maitre 'd because she was pregnant . NNP NNP VBD NNP NNP RB VBD JJ NNS IN PRP$ NNS IN DT NNP IN WDT PRP VBD PRP$ PRP VBD VBG VBN IN NNP MD IN PRP VBD JJ .
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Paul H. Aloe , an attorney for Odeon owner Keith McNally , denied the allegations . NNP NNP NNP , DT NN IN NNP NN NNP NNP , VBD DT NNS .
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He said Ms. Levine had never been fired , although she had stopped working at the restaurant . PRP VBD NNP NNP VBD RB VBN VBN , IN PRP VBD VBN VBG IN DT NN .
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`` The Odeon made a written offer to Marcia Levine on July 10 to return to work as the maitre 'd , at the same pay , same hours and with back pay accrued , '' he said . `` DT NNP VBD DT VBN NN TO NNP NNP IN NNP CD TO VB TO VB IN DT NNP MD , IN DT JJ NN , JJ NNS CC IN JJ NN VBN , '' PRP VBD .
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Mr. Aloe said the Odeon `` has no policy against hiring pregnant people . '' NNP NNP VBD DT NNP `` VBZ DT NN IN VBG JJ NNS . ''
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LAWYERS IN Texas 's biggest bank-fraud case want out in face of retrial . NNS IN NNP POS JJS NN NN VBP IN IN NN IN NN .
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Lawyers representing five of the seven defendants in the case say their clients can no longer afford their services . NNS VBG CD IN DT CD NNS IN DT NN VBP PRP$ NNS MD RB RB VB PRP$ NNS .
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The trial of the case lasted seven months and ended in September with a hung jury . DT NN IN DT NN VBD CD NNS CC VBD IN NNP IN DT VBN NN .
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The defendants were indicted two years ago on charges that they conspired to defraud five thrifts of more than $ 130 million through a complicated scheme to inflate the price of land and condominium construction along Interstate 30 , east of Dallas . DT NNS VBD VBN CD NNS RB IN NNS IN PRP VBD TO VB CD NNS IN JJR IN $ CD CD IN DT VBN NN TO VB DT NN IN NN CC NN NN IN NNP CD , NN IN NNP .
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The defense lawyers , three of whom are solo practitioners , say they ca n't afford to put their law practices on hold for another seven-month trial . DT NN NNS , CD IN WP VBP NN NNS , VBP PRP MD RB VB TO VB PRP$ NN NNS IN NN IN DT JJ NN .
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Some of the lawyers say they would continue to represent their clients if the government pays their tab as court-appointed lawyers . DT IN DT NNS VBP PRP MD VB TO VB PRP$ NNS IN DT NN VBZ PRP$ NN IN JJ NNS .
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Assistant U.S. Attorney Terry Hart of Dallas says the government will oppose any efforts to bring in a new defense team because it would delay a retrial . NNP NNP NNP NNP NNP IN NNP VBZ DT NN MD VB DT NNS TO VB IN DT JJ NN NN IN PRP MD VB DT NN .
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FEDERAL JUDGE ALCEE HASTINGS of Florida , facing impeachment , received an unanticipated boost yesterday . JJ NNP NNP NNP IN NNP , VBG NN , VBD DT JJ NN NN .
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Sen. Arlen Specter -LRB- R. , Pa . -RRB- urged acquittal of the judge in a brief circulated to his Senate colleagues during closed-door deliberations . NNP NNP NNP ( NNP , NNP . ) VBD NN IN DT NN IN DT NN VBD TO PRP$ NNP NNS IN JJ NNS .
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Among other things , the brief cited insufficient evidence . IN JJ NNS , DT NN VBD JJ NN .
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Sen. Specter was vice chairman of the impeachment trial committee that heard evidence in the Hastings case last summer . NNP NNP VBD NN NN IN DT NN NN NN WDT VBD NN IN DT NNP NN JJ NN .
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A former prosecutor and member of the Senate Judiciary Committee , Sen. Specter is expected to exercise influence when the Senate votes on the impeachment today . DT JJ NN CC NN IN DT NNP NNP NNP , NNP NNP VBZ VBN TO VB NN WRB DT NNP NNS IN DT NN NN .
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RICHMOND RESIGNATIONS : NNP NNS :
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Six partners in the Richmond , Va. , firm of Browder , Russell , Morris & Butcher announced they are resigning . CD NNS IN DT NNP , NNP , NN IN NNP , NNP , NNP CC NNP VBD PRP VBP VBG .
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Five of the partners -- James W. Morris , Philip B. Morris , Robert M. White , Ann Adams Webster and Jacqueline G. Epps -- are opening a boutique in Richmond to concentrate on corporate defense litigation , particularly in product liability cases . CD IN DT NNS : NNP NNP NNP , NNP NNP NNP , NNP NNP NNP , NNP NNP NNP CC NNP NNP NNP : VBP VBG DT NN IN NNP TO VB IN JJ NN NN , RB IN NN NN NNS .
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The sixth partner , John H. OBrion , Jr. , is joining Cowan & Owen , a smaller firm outside Richmond . DT JJ NN , NNP NNP NNP , NNP , VBZ VBG NNP CC NNP , DT JJR NN IN NNP .
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LAW FIRM NOTES : NN NN NNS :
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Nixon , Hargrave , Devans & Doyle , based in Rochester , N.Y. , has opened an office in Buffalo , N.Y ... . NNP , NNP , NNP CC NNP , VBN IN NNP , NNP , VBZ VBN DT NN IN NNP , NNP : .
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Mayer , Brown & Platt , Chicago , added two partners to its Houston office , Eddy J. Roger Jr. , and Jeff C. Dodd ... . NNP , NNP CC NNP , NNP , VBD CD NNS TO PRP$ NNP NN , NNP NNP NNP NNP , CC NNP NNP NNP : .
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Copyright specialist Neil Boorstyn , who writes the monthly Copyright Law Journal newsletter , is joining McCutchen , Doyle , Brown & Enersen . NN NN NNP NNP , WP VBZ DT JJ NNP NNP NNP NN , VBZ VBG NNP , NNP , NNP CC NNP .
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New York Times Co. 's third-quarter earnings report is reinforcing analysts ' belief that newspaper publishers will be facing continued poor earnings comparisons through 1990 . NNP NNP NNP NNP POS JJ NNS NN VBZ VBG NNS POS NN IN NN NNS MD VB VBG VBN JJ NNS NNS IN CD .
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The publisher was able to register soaring quarter net income because of a onetime gain on the sale of its cable-TV system . DT NN VBD JJ TO VB VBG NN JJ NN IN IN DT JJ NN IN DT NN IN PRP$ NN NN .
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However , operating profit fell 35 % to $ 16.4 million . RB , VBG NN VBD CD NN TO $ CD CD .
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The decline reflected the expense of buying three magazines , lower earnings from the forest-products group , and what is proving to be a nagging major problem , continued declines in advertising linage at the New York Times , the company 's flagship daily newspaper . DT NN VBD DT NN IN VBG CD NNS , JJR NNS IN DT NNS VBP , CC WP VBZ VBG TO VB DT JJ JJ NN , VBD NNS IN NN NN IN DT NNP NNP NNP , DT NN POS NN JJ NN .
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In composite trading on the American Stock Exchange , New York Times closed at $ 28.125 a share , down 37.5 cents . IN JJ NN IN DT NNP NNP NNP , NNP NNP NNP VBD IN $ CD DT NN , RB CD NNS .
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Analysts said the company 's troubles mirror those of the industry . NNS VBD DT NN POS NNS VBP DT IN DT NN .
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Retail advertising , which often represents half of the advertising volume at most daily newspapers , largely is n't rebounding in the second half from extended doldrums as expected . JJ NN , WDT RB VBZ NN IN DT NN NN IN RBS JJ NNS , RB VBZ RB VBG IN DT JJ NN IN VBN NNS IN VBN .
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At the same time , newspapers are bedeviled by lagging national advertising , especially in its financial component . IN DT JJ NN , NNS VBP VBN IN VBG JJ NN , RB IN PRP$ JJ NN .
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Dow Jones & Co. recently reported net fell 9.9 % , a reflection , in part , of continued softness in financial advertising at The Wall Street Journal and Barron 's magazine . NNP NNP CC NNP RB VBD NN VBD CD NN , DT NN , IN NN , IN VBN NN IN JJ NN IN DT NNP NNP NNP CC NNP POS NN .
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`` We expect next year to be a fairly soft year in newspaper-industry advertising , '' said John Morton , an analyst for Lynch , Jones & Ryan . `` PRP VBP JJ NN TO VB DT RB JJ NN IN JJ NN , '' VBD NNP NNP , DT NN IN NNP , NNP CC NNP .
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`` Next year , earnings will hold steady , but we just do n't see a big turnaround in the trend in advertising . '' `` JJ NN , NNS MD VB JJ , CC PRP RB VBP RB VB DT JJ NN IN DT NN IN NN . ''
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John S. Reidy , an analyst for Drexel Burnham Lambert Inc. , said , `` The Times faces the same problem of other publishers : linage is down . NNP NNP NNP , DT NN IN NNP NNP NNP NNP , VBD , `` DT NNP VBZ DT JJ NN IN JJ NNS : NN VBZ RB .
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It will be hard to do handstands until real linage starts heading back up . '' PRP MD VB JJ TO VB NNS IN JJ NN VBZ VBG RB IN . ''
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In the quarterly report , Arthur Ochs Sulzberger , New York Times Co. chairman and chief executive officer , said negative factors affecting third-quarter earnings will continue . IN DT JJ NN , NNP NNP NNP , NNP NNP NNP NNP NN CC JJ JJ NN , VBD JJ NNS VBG JJ NNS MD VB .
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Analysts agreed with company expectations that operating profit will be down this year and in 1990 . NNS VBD IN NN NNS IN VBG NN MD VB RP DT NN CC IN CD .
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Mr. Sulzberger said the scheduled opening of a new color-printing plant in Edison , N.J. , in 1990 would involve heavy startup and depreciation costs . NNP NNP VBD DT VBN NN IN DT JJ JJ NN IN NNP , NNP , IN CD MD VB JJ NN CC NN NNS .
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`` With the Edison plant coming on line next summer , the Times is facing some tough earnings comparison in the future , '' said Peter Appert , an analyst with C.J. Lawrence , Morgan Grenfell . `` IN DT NNP NN VBG IN NN JJ NN , DT NNP VBZ VBG DT JJ NNS NN IN DT NN , '' VBD NNP NNP , DT NN IN NNP NNP , NNP NNP .
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`` But many newspapers are facing similar comparisons . '' `` CC JJ NNS VBP VBG JJ NNS . ''
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The sale of the company 's cable franchise brought an after-tax gain of $ 193.3 million , part of which will be used to reduce debt . DT NN IN DT NN POS NN NN VBD DT JJ NN IN $ CD CD , NN IN WDT MD VB VBN TO VB NN .
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The company also has a stock-repurchase plan . DT NN RB VBZ DT JJ NN .
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Analysts said they were impressed by the performance of the company 's newspaper group , which consists of the Times , 35 regional newspapers and a one-third interest in the International Herald Tribune ; group operating profit for the quarter increased slightly to $ 34.9 million from $ 34.5 million on flat revenue . NNS VBD PRP VBD VBN IN DT NN IN DT NN POS NN NN , WDT VBZ IN DT NNP , CD JJ NNS CC DT NN NN IN DT NNP NNP NNP : NN VBG NN IN DT NN VBN RB TO $ CD CD IN $ CD CD IN JJ NN .
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Drexel Burnham 's Mr. Reidy pointed out that `` profits held up in a tough revenue environment . NNP NNP POS NNP NNP VBD RP IN `` NNS VBN IN IN DT JJ NN NN .
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That 's a good sign when profits are stable during a time revenue is in the trough . DT VBZ DT JJ NN WRB NNS VBP JJ IN DT NN NN VBZ IN DT NN .
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Investors celebrated the second anniversary of Black Monday with a buying spree in both stocks and bonds . NNS VBD DT JJ NN IN NNP NNP IN DT VBG NN IN DT NNS CC NNS .
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But the dollar was mixed . CC DT NN VBD VBN .
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Stock and bond investors were cheered by last month 's encouragingly low inflation rate . NNP CC NN NNS VBD VBN IN JJ NN POS RB JJ NN NN .
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This news raised hopes for further interest-rate cuts . DT NN VBN VBZ IN JJ NN NNS .
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Treasury-bond prices immediately rallied , setting the stock market rolling from the opening bell . JJ NNS RB VBD , VBG DT NN NN VBG IN DT NN NN .
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The Dow Jones Industrial Average , up about 60 points in mid-afternoon , finished with a gain of 39.55 points , to 2683.20 . DT NNP NNP NNP NNP , IN IN CD NNS IN JJ , VBD IN DT NN IN CD NNS , TO CD .
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That brought the average 's cumulative gain this week to about 114 points . DT VBN DT NN POS JJ NN DT NN TO IN CD NNS .
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Since the 1987 crash , the industrials have soared more than 54 % , and the widely watched market barometer is about 4 % below its record high set earlier this month . IN DT CD NN , DT NNS VBP VBN JJR IN CD NN , CC DT RB VBN NN NN VBZ IN CD NN IN PRP$ NN RB VBD RBR DT NN .
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The stock-market rally was led by blue-chip issues , but , unlike Monday 's rebound , was broadly based . DT NN NN VBD VBN IN JJ NNS , CC , IN NNP POS NN , VBD RB VBN .
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Indeed , over-the-counter stocks , led by technology issues , outleaped the industrial average . RB , JJ NNS , VBN IN NN NNS , VBD DT JJ NN .
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The Nasdaq Composite Index soared 7.52 , or 1.6 % , to 470.80 , its highest one-day jump in points this year . DT NNP NNP NNP VBD CD , CC CD NN , TO CD , PRP$ JJS JJ NN IN VBZ DT NN .
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Many takeover-related stocks rose after news that a group obtained financing commitments for the proposed buy-out of American Medical International Inc . JJ JJ NNS VBD IN NN IN DT NN VBD NN NNS IN DT VBN NN IN NNP NNP NNP NNP .
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Among the biggest winners were brokerage-house stocks , responding to heavy trading volume . IN DT JJS NNS VBD NN NNS , VBG TO JJ NN NN .
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The government said consumer prices rose only 0.2 % last month . DT NN VBD NN NNS VBD RB CD NN JJ NN .
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Economists expected twice as large an increase . NNS VBN RB IN JJ DT NN .
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That news , plus recent signs of economic sluggishness , greatly increases pressure on the Federal Reserve to ease credit further , which in turn would be good news for stocks , investment managers say . DT NN , CC JJ NNS IN JJ NN , RB NNS VBP IN DT NNP NNP TO VB NN RBR , WDT IN NN MD VB JJ NN IN NNS , NN NNS VBP .
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`` I see a lot of evidence indicating a slower economy , and that means my interest-rate outlook has a downward tilt , '' said Garnett L. Keith Jr. , vice chairman of Prudential Insurance Co. of America , one of the nation 's largest institutional investors . `` PRP VBP DT NN IN NN VBG DT JJR NN , CC DT VBZ PRP$ NN NN VBZ DT JJ NN , '' VBD NNP NNP NNP NNP , NN NN IN NNP NNP NNP IN NNP , CD IN DT NN POS JJS JJ NNS .
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Fed officials probably wo n't drive down rates immediately , Mr. Keith said . JJ NNS RB MD RB VB RB VBZ RB , NNP NNP VBD .
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Despite the inflation news , several Fed officials still fear consumer-price pressures will intensify because they insist the economy is stronger than generally believed . IN DT NN NN , JJ NNP NNS JJ NN JJ NNS MD VB IN PRP VBP DT NN VBZ JJR IN RB VBD .
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But Wall Street analysts expect further signs of economic weakness in government reports during the next few weeks . CC NNP NNP NNS VBP JJ NNS IN JJ NN IN NN NNS IN DT JJ JJ NNS .
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If so , that will cinch the case for another shot of credit-easing within a month or so . IN RB , WDT MD VB DT NN IN DT NN IN JJ IN DT NN CC RB .
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That , in turn , is expected to persuade banks to cut their prime lending rate , a benchmark rate on many corporate and consumer loans , by half a percentage point , to 10 % . DT , IN NN , VBZ VBN TO VB NNS TO VB PRP$ JJ NN NN , DT NN NN IN JJ JJ CC NN NNS , IN PDT DT NN NN , TO CD NN .
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`` We 're not out of the woods yet by any means , '' said George R. Mateyo , president and chief executive of Carnegie Capital Management Co. , Cleveland . `` PRP VBP RB IN IN DT NNS RB IN DT VBZ , '' VBD NNP NNP NNP , NN CC JJ NN IN NNP NNP NNP NNP , NNP .
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But the economy `` is slowing enough to give the Federal Reserve leeway to reduce interest rates . '' CC DT NN `` VBZ VBG RB TO VB DT NNP NNP NN TO VB NN NNS . ''
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But many individual investors are leery about stocks because of fresh signs of fragility in the huge junk-bond market . CC JJ JJ NNS VBP JJ IN NNS IN IN JJ NNS IN NN IN DT JJ NN NN .
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Investors also are anxious about today 's `` witching hour , '' the monthly expiration of stock-index futures and options , and options on individual stocks . NNS RB VBP JJ IN NN POS `` JJ NN , '' DT JJ NN IN NN NNS CC NNS , CC NNS IN JJ NNS .
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This phenomenon often makes stock prices swing wildly at the end of the trading session . DT NN RB VBZ NN NNS VBP RB IN DT NN IN DT NN NN .
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In major market activity : Stock prices surged in heavy trading . IN JJ NN NN : NNP NNS VBD IN JJ NN .
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Volume on the New York Stock Exchange rose to 198.1 million shares from 166.9 million Wednesday . NN IN DT NNP NNP NNP NNP VBD TO CD CD NNS IN CD CD NNP .
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Gaining Big Board issues outnumbered decliners by 1,235 to 355 . VBG NNP NNP NNS VBD NNS IN CD TO CD .
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The dollar was mixed . DT NN VBD VBN .
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In New York late yesterday , it was at 141.70 yen , up from 141.45 yen late Wednesday . IN NNP NNP JJ NN , PRP VBD IN CD NN , IN IN CD NN JJ NNP .
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But it fell to 1.8470 marks from 1.8485 . CC PRP VBD TO CD NNS IN CD .
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Tuesday 's rout of a GOP congressional hopeful in a Mississippi district that has n't backed a Democratic presidential candidate since Adlai Stevenson is another reminder that , at least at the federal level , political `` ticket splitting '' has been on the rise over the past half century . NNP POS NN IN DT NNP JJ NN IN DT NNP NN WDT VBZ RB VBN DT JJ JJ NN IN NNP NNP VBZ DT NN IN , IN JJS IN DT JJ NN , JJ `` NN NN '' VBZ VBN IN DT NN IN DT JJ NN NN .
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In only one presidential election year prior to 1948 did more than 20 % of the nation 's congressional districts choose a different party 's candidate for the White House than for the House of Representatives . IN RB CD JJ NN NN RB TO CD VBD JJR IN CD NN IN DT NN POS JJ NNS VBP DT JJ NN POS NN IN DT NNP NNP IN IN DT NNP IN NNPS .
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Now that percentage routinely equals a third and twice has been above 40 % . RB DT NN RB VBZ DT JJ CC RB VBZ VBN IN CD NN .
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As we know , voters tend to favor Republicans more in races for president than in those for Congress . IN PRP VBP , NNS VBP TO VB NNPS JJR IN NNS IN NN IN IN DT IN NNP .
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In every presidential election over the past half century , except for the Goldwater presidential candidacy , the GOP has captured a greater percentage of the major-party popular vote for president than it has of congressional seats or the popular vote for Congress . IN DT JJ NN IN DT JJ NN NN , IN IN DT NNP JJ NN , DT NNP VBZ VBN DT JJR NN IN DT JJ JJ NN IN NN IN PRP VBZ IN JJ NNS CC DT JJ NN IN NNP .
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Prior to 1932 , the pattern was nearly the opposite . RB TO CD , DT NN VBD RB DT NN .
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What accounts for the results of recent decades ? WP VBZ IN DT NNS IN JJ NNS .
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A simple economic theory may provide at least a partial explanation for the split personality displayed by Americans in the voting booth . DT JJ JJ NN MD VB IN JJS DT JJ NN IN DT NN NN VBN IN NNPS IN DT NN NN .
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The theory relies on three assumptions : DT NN VBZ IN CD NNS :
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1 -RRB- Voters can `` buy '' one of two brands when they select their political agents -- a Republican brand that believes in the minimalist state and in the virtues of private markets over the vices of public action , and a Democratic brand that believes in big government and in public intervention to remedy the excesses attendant to the pursuit of private interest . CD ) NNS MD `` VB '' CD IN CD NNS WRB PRP VBP PRP$ JJ NNS : DT NNP NN WDT VBZ IN DT JJ NN CC IN DT NNS IN JJ NNS IN DT NNS IN JJ NN , CC DT JJ NN WDT VBZ IN JJ NN CC IN JJ NN TO VB DT NNS NN TO DT NN IN JJ NN .
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2 -RRB- Congressional representatives have two basic responsibilities while voting in office -- dealing with national issues -LRB- programmatic actions such as casting roll call votes on legislation that imposes costs and\/or confers benefits on the population at large -RRB- and attending to local issues -LRB- constituency service and pork barrel -RRB- . CD ) NNP NNS VBP CD JJ NNS IN NN IN NN : VBG IN JJ NNS ( JJ NNS JJ IN VBG NN NN NNS IN NN WDT VBZ NNS NN VBZ NNS IN DT NN IN JJ ) CC VBG TO JJ NNS ( NN NN CC NN NN ) .
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3 -RRB- Republican congressional representatives , because of their belief in a minimalist state , are less willing to engage in local benefit-seeking than are Democratic members of Congress . CD ) NNP JJ NNS , IN IN PRP$ NN IN DT JJ NN , VBP RBR JJ TO VB IN JJ NN IN VBP JJ NNS IN NNP .
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If these assumptions hold , voters in races for Congress face what in economic theory is called a prisoner 's dilemma and have an incentive , at the margin , to lean Democratic . IN DT NNS VBP , NNS IN NNS IN NNP NN WP IN JJ NN VBZ VBN DT NN POS NN CC VBP DT NN , IN DT NN , TO VB JJ .
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If they put a Republican into office , not only will they acquire less in terms of local benefits but their selected legislator will be relatively powerless to prevent other legislators from `` bringing home the bacon '' to their respective constituencies . IN PRP VBP DT NNP IN NN , RB RB MD PRP VB JJR IN NNS IN JJ NNS CC PRP$ VBN NN MD VB RB JJ TO VB JJ NNS IN `` VBG NN DT NN '' TO PRP$ JJ NNS .
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Each legislator , after all , is only one out of 535 when it comes to national policy making . DT NN , IN DT , VBZ RB CD IN IN CD WRB PRP VBZ TO JJ NN VBG .
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In races for the White House , a voter 's incentive , at the margin , is to lean Republican . IN NNS IN DT NNP NNP , DT NN POS NN , IN DT NN , VBZ TO VB NNP .
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Although a GOP president may limit local benefits to the voter 's particular district\/state , such a president is also likely to be more effective at preventing other districts\/states and their legislators from bringing home the local benefits . IN DT NNP NN MD VB JJ NNS TO DT NN POS JJ NN , JJ DT NN VBZ RB JJ TO VB RBR JJ IN VBG JJ NNS CC PRP$ NNS IN VBG NN DT JJ NNS .
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The individual voter 's standing consequently will be enhanced through lower taxes . DT JJ NN POS VBG RB MD VB VBN IN JJR NNS .
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While this theory is exceedingly simple , it appears to explain several things . IN DT NN VBZ RB JJ , PRP VBZ TO VB JJ NNS .
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First , why ticket splitting has increased and taken the peculiar pattern that it has over the past half century : Prior to the election of Franklin Roosevelt as president and the advent of the New Deal , government occupied a much smaller role in society and the prisoner 's dilemma problem confronting voters in races for Congress was considerably less severe . RB , WRB NN NN VBZ VBN CC VBN DT JJ NN IN PRP VBZ IN DT JJ NN NN : RB TO DT NN IN NNP NNP IN NN CC DT NN IN DT NNP NNP , NN VBD DT RB JJR NN IN NN CC DT NN POS NN NN VBG NNS IN NNS IN NNP VBD RB RBR JJ .
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Second , it explains why voters hold Congress in disdain but generally love their own congressional representatives : Any individual legislator 's constituents appreciate the specific benefits that the legislator wins for them but not the overall cost associated with every other legislator doing likewise for his own constituency . JJ , PRP VBZ WRB NNS VBP NNP IN NN CC RB VBP PRP$ JJ JJ NNS : DT JJ NN POS NNS VBP DT JJ NNS IN DT NN VBZ IN PRP CC RB DT JJ NN VBN IN DT JJ NN VBG RB IN PRP$ JJ NN .
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Third , the theory suggests why legislators who pay too much attention to national policy making relative to local benefit-seeking have lower security in office . NNP , DT NN VBZ WRB NNS WP VBP RB JJ NN TO JJ NN VBG JJ TO JJ NN VBP JJR NN IN NN .
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For example , first-term members of the House , once the most vulnerable of incumbents , have become virtually immune to defeat . IN NN , JJ NNS IN DT NNP , RB DT RBS JJ IN NNS , VBP VBN RB JJ TO VB .
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The one exception to this recent trend was the defeat of 13 of the 52 freshman Republicans brought into office in 1980 by the Reagan revolution and running for re-election in 1982 . DT CD NN TO DT JJ NN VBD DT NN IN CD IN DT CD NN NNPS VBN IN NN IN CD IN DT NNP NN CC VBG IN NN IN CD .
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Because these freshmen placed far more emphasis on their partisan role -- spreading the Reagan revolution -- in national policy making , they were more vulnerable to defeat . IN DT NNS VBN RB JJR NN IN PRP$ JJ NN : VBG DT NNP NN : IN JJ NN VBG , PRP VBD RBR JJ TO VB .
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Fourth , the theory indicates why the Republican Party may have a difficult time attracting viable candidates for congressional office . NNP , DT NN VBZ WRB DT NNP NNP MD VB DT JJ NN VBG JJ NNS IN JJ NN .
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Potential candidates may be discouraged from running less by the congressional salary than by the prospect of defeat at the hands of a Democratic opponent . JJ NNS MD VB VBN IN VBG JJR IN DT JJ NN IN IN DT NN IN NN IN DT NNS IN DT JJ NN .
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To the extent that potential Republican candidates and their financial backers realize that the congressional prisoner 's dilemma game works to their disadvantage , the Republican Party will be hindered in its attempts to field a competitive slate of congressional candidates . TO DT NN IN JJ NNP NNS CC PRP$ JJ NNS VBP IN DT JJ NN POS NN NN NNS TO PRP$ NN , DT NNP NNP MD VB VBN IN PRP$ NNS TO VB DT JJ NN IN JJ NNS .
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Fifth , the theory may provide at least a partial reason for why ticket splitting has been particularly pronounced in the South . NNP , DT NN MD VB IN JJS DT JJ NN IN WRB NN NN VBZ VBN RB VBN IN DT NNP .
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To the extent that Democratic legislators from the South have held a disproportionate share of power in Congress since 1932 and have been able to translate such clout into relatively more local benefits for their respective constituencies , voters in the South have had an especially strong incentive to keep such Democrats in office . TO DT NN IN JJ NNS IN DT NNP VBP VBN DT JJ NN IN NN IN NNP IN CD CC VBP VBN JJ TO VB JJ NN IN RB RBR JJ NNS IN PRP$ JJ NNS , NNS IN DT NNP VBP VBN DT RB JJ NN TO VB JJ NNPS IN NN .
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Finally , the theory suggests why Republicans generally have fared better in Senate races than in campaigns for the House . RB , DT NN VBZ WRB NNPS RB VBP VBN JJR IN NNP NNS IN IN NNS IN DT NNP .
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Since local benefit-seeking matters more and national policy making matters less in the lower chamber of Congress , this is precisely the pattern one would expect if Republicans are less willing to engage in local benefit-seeking than their Democratic counterparts . IN JJ NN NNS JJR CC JJ NN VBG NNS JJR IN DT JJR NN IN NNP , DT VBZ RB DT NN PRP MD VB IN NNPS VBP RBR JJ TO VB IN JJ NN IN PRP$ JJ NNS .
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Is there any empirical support for this theory ? VBZ EX DT JJ NN IN DT NN .
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Three pieces of evidence corroborate the key assumption that Democratic legislators are more willing to engage in local benefit-seeking than their Republican colleagues . CD NNS IN NN VB DT JJ NN IN JJ NNS VBP RBR JJ TO VB IN JJ NN IN PRP$ NNP NNS .
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First , economists James Bennett and Thomas DiLorenzo find that GOP senators turn back roughly 10 % more of their allocated personal staff budgets than Democrats do . RB , NNS NNP NNP CC NNP NNP VB IN NNP NNS VBP RB RB CD NN JJR IN PRP$ VBN JJ NN NNS IN NNPS VBP .
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To the extent that the primary duty of personal staff involves local benefit-seeking , this indicates that political philosophy leads congressional Republicans to pay less attention to narrow constituent concerns . TO DT NN IN DT JJ NN IN JJ NN VBZ JJ NN , DT VBZ IN JJ NN VBZ JJ NNPS TO VB JJR NN TO VB NN NNS .
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Second , if the key assumption is valid , Democrats should have lower attendance rates on roll-call votes than Republicans do to the extent that such votes reflect national policy making and that participating in such votes takes away from the time a legislator could otherwise devote to local benefit-seeking . JJ , IN DT JJ NN VBZ JJ , NNPS MD VB JJR NN NNS IN JJ NNS IN NNPS VBP TO DT NN IN JJ NNS VBP JJ NN VBG CC IN VBG IN JJ NNS VBZ RB IN DT NN DT NN MD RB VB TO JJ NN .
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This is indeed what the data indicate , particularly in the case of the House . DT VBZ RB WP DT NNS VBP , RB IN DT NN IN DT NNP .
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The Democratic House attendance rate has not exceeded the Republican House attendance rate since 1959 . DT NNP NNP NN NN VBZ RB VBN DT NNP NNP NN NN IN CD .
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Finally , as shown in the table , Democrats allocate a higher proportion of their personal staffs to district offices -- where local benefit-seeking duties matter more and national policy making activities matter less relative to Washington offices . RB , IN VBN IN DT NN , NNPS VBP DT JJR NN IN PRP$ JJ NNS TO NN NNS : WRB JJ NN NNS VBP JJR CC JJ NN VBG NNS VBP RBR JJ TO NNP NNS .
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An examination of changes in personal staffing decisions in the Senate between 1986 and 1987 -LRB- when control of that body changed party hands -RRB- , moreover , reveals that the personal staffing differences noted in the table can not be attributed to the disproportionate control Democrats exercise , due to their majority-party status , over other resources such as committee staff . DT NN IN NNS IN JJ NN NNS IN DT NNP IN CD CC CD ( WRB NN IN DT NN VBD NN NNS ) , RB , VBZ IN DT JJ NN NNS VBD IN DT NN MD RB VB VBN TO DT JJ NN NNPS NN , JJ TO PRP$ JJ NN , IN JJ NNS JJ IN NN NN .
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An additional piece of evidence from the Senate : Holding other factors constant , such as incumbency advantages and regional factors , the difference between popular votes for Republican presidential and senatorial candidates in states conducting a Senate election turns out to be a positive function of how onerous the federal government 's tax burden is per state -LRB- a progressive tax rate hits higher-income states harder -RRB- . DT JJ NN IN NN IN DT NNP : NNP JJ NNS JJ , JJ IN NN NNS CC JJ NNS , DT NN IN JJ NNS IN NNP JJ CC JJ NNS IN NNS VBG DT NNP NN VBZ IN TO VB DT JJ NN IN WRB JJ DT JJ NN POS NN NN VBZ IN NN ( DT JJ NN NN VBZ JJ NNS JJR ) .
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Put more simply , GOP candidates for president are looked on more kindly by voters than Republican candidates for the Senate when the prisoner 's dilemma is more severe . VB RBR RB , NNP NNS IN NN VBP VBN IN RBR RB IN NNS IN NNP NNS IN DT NNP WRB DT NN POS NN VBZ RBR JJ .
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Moreover , ticket splitting appears to take the same peculiar pattern at the state government level as it does at the federal level . RB , NN NN VBZ TO VB DT JJ JJ NN IN DT NN NN NN IN PRP VBZ IN DT JJ NN .
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State government is more typically split along Republican-governor\/Democratic-legislature lines than the reverse . NN NN VBZ RBR RB VBP IN NNP NNS IN DT NN .
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A cross-state econometric investigation , furthermore , reveals that , holding other factors constant , the difference between a state 's major-party vote going to the Republican gubernatorial candidate and the Republican share of the lower state house is a positive function of the state tax rate . DT JJ JJ NN , RB , VBZ IN , VBG JJ NNS JJ , DT NN IN DT NN POS JJ NN VBG TO DT NNP JJ NN CC DT NNP NN IN DT JJR NN NN VBZ DT JJ NN IN DT NN NN NN .
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In sum , at both the federal and state government levels at least part of the seemingly irrational behavior voters display in the voting booth may have an exceedingly rational explanation . IN NN , IN DT DT JJ CC NN NN NNS IN JJS NN IN DT RB JJ NN NNS VBP IN DT NN NN MD VB DT RB JJ NN .
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Mr. Zupan teaches at the University of Southern California 's business school . NNP NNP VBZ IN DT NNP IN NNP NNP POS NN NN .
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A House-Senate conference approved a nearly $ 17 billion State , Justice and Commerce Department bill that makes federal reparations for Japanese-Americans held in World War II internment camps a legal entitlement after next Oct. 1 . DT NNP NN VBD DT RB $ CD CD NNP , NNP CC NNP NNP NN WDT VBZ JJ NNS IN NNPS VBN IN NNP NNP NNP NN NNS DT JJ NN IN JJ NNP CD .
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The measure provides no money for the promised payments until then , but beginning in fiscal 1991 , the government would be committed to meeting annual payments of as much as $ 500 million until the total liability of approximately $ 1.25 billion is paid . DT NN VBZ DT NN IN DT VBN NNS IN RB , CC VBG IN JJ CD , DT NN MD VB VBN TO VBG JJ NNS IN RB JJ IN $ CD CD IN DT JJ NN IN RB $ CD CD VBZ VBN .
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The action abandons earlier efforts to find offsetting cuts to fund the payments , but is widely seen as a more realistic means of expediting reparations first authorized in 1988 . DT NN VBZ JJR NNS TO VB VBG NNS TO VB DT NNS , CC VBZ RB VBN IN DT RBR JJ NNS IN VBG NNS RB VBN IN CD .
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The action came as Congress sent to President Bush a fiscal 1990 bill providing an estimated $ 156.7 billion for the Departments of Labor , Education , Health and Human Services . DT NN VBD IN NNP VBD TO NNP NNP DT JJ CD NN VBG DT VBN $ CD CD IN DT NNPS IN NNP , NNP , NNP CC NNP NNP .
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Final approval was on a 67-31 roll call in the Senate , which sets the stage for a veto confrontation with Mr. Bush over the issue of publicly financed abortions for poor women . JJ NN VBD IN DT JJ NN NN IN DT NNP , WDT VBZ DT NN IN DT NN NN IN NNP NNP IN DT NN IN RB VBN NNS IN JJ NNS .
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Reversing an eight-year federal policy , the measure supports Medicaid abortions in cases of rape and incest , but Mr. Bush has so far refused to support any specific exemption beyond instances in which the mother 's life is in danger . VBG DT JJ JJ NN , DT NN VBZ NNP NNS IN NNS IN NN CC NN , CC NNP NNP VBZ RB RB VBN TO VB DT JJ NN IN NNS IN WDT DT NN POS NN VBZ IN NN .
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Mr. Bush 's veto power puts him a commanding position in the narrowly divided House , but a vote to override his position could well pick up new support because of the wealth of health and education programs financed in the underlying bill . NNP NNP POS NN NN VBZ PRP DT VBG NN IN DT RB VBN NNP , CC DT NN TO VB PRP$ NN MD RB VB IN JJ NN IN IN DT NN IN NN CC NN NNS VBN IN DT VBG NN .
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The measure before the conference yesterday funds the Departments of State , Justice and Commerce through fiscal 1990 . DT NN IN DT NN NN VBZ DT NNPS IN NNP , NNP CC NNP IN JJ CD .
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An estimated $ 1.32 billion is provided for next year 's census , and negotiators stripped a Senate-passed rider seeking to block the counting of illegal aliens . DT VBN $ CD CD VBZ VBN IN JJ NN POS NN , CC NNS VBD DT JJ NN VBG TO VB DT NN IN JJ NNS .
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Elsewhere in the Commerce Department , nearly $ 191.2 million is preserved for assistance programs under the Economic Development Administration . RB IN DT NNP NNP , RB $ CD CD VBZ VBN IN NN NNS IN DT NNP NNP NNP .
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And in a footnote to the fall of House Speaker James Wright this year , the conference voted to rescind $ 11.8 million in unspent EDA funds for a Fort Worth , Texas , stockyards project that figured in ethics charges against the former Democratic leader . CC IN DT NN TO DT NN IN NNP NNP NNP NNP DT NN , DT NN VBD TO VB $ CD CD IN JJ NNP NNS IN DT NNP NNP , NNP , NNS VBP WDT VBD IN NNS NNS IN DT JJ JJ NN .
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Fiscal pressures also forced the adoption of new fees charged by federal agencies , and an 18 % increase in the Securities and Exchange Commission 's budget would be financed entirely by an added $ 26 million in filing fees . JJ NNS RB VBN DT NN IN JJ NNS VBN IN JJ NNS , CC DT CD NN NN IN DT NNP CC NNP NNP POS NN MD VB VBN RB IN DT VBD $ CD CD IN NN NNS .
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In an unprecedented step , the measure anticipates another $ 30 million in receipts by having the Federal Bureau of Investigation charge for fingerprint services in civil cases -- a change that is almost certain to increase Pentagon costs in processing personnel and security clearances . IN DT JJ NN , DT NN VBZ DT $ CD CD IN NNS IN VBG DT NNP NNP IN NNP NN IN NN NNS IN JJ NNS : DT NN WDT VBZ RB JJ TO VB NNP NNS IN NN NNS CC NN NNS .
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The bill does n't include an estimated $ 1.9 billion in supplemental anti-drug funds for Justice Department and law-enforcement accounts that are still in conference with the House . DT NN VBZ RB VB DT VBN $ CD CD IN JJ JJ NNS IN NNP NNP CC NN NNS WDT VBP RB IN NN IN DT NNP .
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But yesterday 's agreement would make it easier for state governments to handle the promised aid by deferring for one year a scheduled 50 % increase in the required state matching funds for law-enforcement grants . CC NN POS NN MD VB PRP JJR IN NN NNS TO VB DT VBN NN IN VBG IN CD NN DT VBN CD NN NN IN DT VBN NN VBG NNS IN NN NNS .
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Similarly , the measure adjusts the current funding formula to promise smaller states such as New Hampshire and Delaware a minimum allocation of $ 1.6 million each in drug grants , or three times the current minimum . RB , DT NN VBZ DT JJ NN NN TO VB JJR NNS JJ IN NNP NNP CC NNP DT JJ NN IN $ CD CD DT NN NN NNS , CC CD VBZ DT JJ NN .
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The odd mix of departments in the bill makes it one of the more eclectic of the annual appropriations measures , and the assorted provisions attached by lawmakers run from $ 1.5 million for a fish farm in Arkansas to a music festival in Moscow under the United States Information Agency . DT JJ NN IN NNS IN DT NN VBZ PRP CD IN DT JJR NN IN DT JJ NNS NNS , CC DT JJ NNS VBN IN NNS VBP IN $ CD CD IN DT NN NN IN NNP TO DT NN NN IN NNP IN DT NNP NNP NNP NNP .
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Lawmakers scrapped all of a $ 7.4 million State Department request for the 1992 Expo in Seville , Spain , but agreed elsewhere to $ 15,000 for an oil portrait of former Chief Justice Warren Burger . NNS VBD DT IN DT $ CD CD NNP NNP NN IN DT CD NNP IN NNP , NNP , CC VBD RB TO $ CD IN DT NN NN IN JJ NNP NNP NNP NNP .
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Senate Commerce Committee Chairman Ernest Hollings -LRB- D. , S.C. -RRB- , who also chairs the Senate appropriations subcommittee for the department , attached $ 10 million for an advanced technology initiative , including work on high-definition television . NNP NNP NNP NNP NNP NNP ( NNP , NNP ) , WP RB VBZ DT NNP NNS NN IN DT NN , VBD $ CD CD IN DT VBN NN NN , VBG NN IN JJ NN .
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His Republican counterpart , Sen. Warren Rudman -LRB- R. , N.H. -RRB- , has used his position to wage a legislative war with the conservative board of the Legal Services Corp . PRP$ NNP NN , NNP NNP NNP ( NNP , NNP ) , VBZ VBN PRP$ NN TO VB DT JJ NN IN DT JJ NN IN DT NNP NNP NNP .
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An estimated $ 321 million is provided to maintain the program , but Mr. Rudman also succeeded in attaching language seeking to curb the authority of the current board until new members are confirmed . DT VBN $ CD CD VBZ VBN TO VB DT NN , CC NNP NNP RB VBD IN VBG NN VBG TO VB DT NN IN DT JJ NN IN JJ NNS VBP VBN .
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The effective date of any new regulations by the current board would be delayed until Oct. 1 next year , and the bill seeks to reverse efforts by the corporation to cut off funds to service organizations such as the Food Research and Action Center . DT JJ NN IN DT JJ NNS IN DT JJ NN MD VB VBN IN NNP CD JJ NN , CC DT NN VBZ TO VB NNS IN DT NN TO VB IN NNS TO VB NNS JJ IN DT NNP NNP CC NNP NNP .
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The bill also provides $ 620.5 million to meet U.S. contributions to international organizations and $ 80 million for peace-keeping activities . DT NN RB VBZ $ CD CD TO VB NNP NNS TO JJ NNS CC $ CD CD IN NN NNS .
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Both accounts reflect significant increases from fiscal 1989 , although the amount for peace-keeping shows a 27 % cut from the administration 's request . DT NNS VBP JJ NNS IN JJ CD , IN DT NN IN NN VBZ DT CD NN NN IN DT NN POS NN .
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Mercury Savings & Loan Association said it retained Merrill Lynch Capital Markets as its lead investment banker to advise it regarding a possible sale or other combination of the Huntington Beach , Calif. , thrift . NNP NNP CC NNP NNP VBD PRP VBD NNP NNP NNP NNPS IN PRP$ NN NN NN TO VB PRP VBG DT JJ NN CC JJ NN IN DT NNP NNP , NNP , NN .
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Mercury , which has assets of more than $ 2 billion and 24 branches in California , said the action to improve its regulatory capital position is related directly to new capital requirements mandated by recently adopted federal legislation . NNP , WDT VBZ NNS IN JJR IN $ CD CD CC CD NNS IN NNP , VBD DT NN TO VB PRP$ JJ NN NN VBZ VBN RB TO JJ NN NNS VBN IN RB VBN JJ NN .
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Mercury also said it extended its two-year advisory relationship with Montgomery Securities of San Francisco . NNP RB VBD PRP VBD PRP$ JJ JJ NN IN NNP NNP IN NNP NNP .
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Mercury 's stock closed yesterday at $ 4.875 , unchanged in composite trading on the New York Stock Exchange . NNP POS NN VBD NN IN $ CD , JJ IN JJ NN IN DT NNP NNP NNP NNP .
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Watching Congress sweat and grimace through its annual budget labors , fighting the urge to spend more , we 're reminded of those late-night movies in which the anguished serial killer turns himself in to police and says , `` Stop me before I kill again . '' VBG NNP NN CC NN IN PRP$ JJ NN NNS , VBG DT NN TO VB JJR , PRP VBP VBD IN DT JJ NNS IN WDT DT JJ JJ NN VBZ PRP IN TO VB CC VBZ , `` VB PRP IN PRP VBP RB . ''
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The Members know they 're doing wrong , but they need help to restrain their darker compulsions . DT NNS VBP PRP VBP VBG JJ , CC PRP VBP NN TO VB PRP$ JJR NNS .
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Arkansas Democrat David Pryor spilled his guts on the Senate floor the other day after he 'd joined the Finance Committee 's early-morning pork-barrel revels : `` I must tell you ... NNP NNP NNP NNP VBD PRP$ NNS IN DT NNP NN DT JJ NN IN PRP MD VBD DT NNP NNP POS JJ JJ NNS : `` PRP MD VB PRP :
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I come to the floor tonight as one who ended up with a busload of extraneous matter . PRP VBP TO DT NN RB IN CD WP VBD IN IN DT NN IN JJ NN .
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It was nothing more or nothing less than a feeding frenzy . '' PRP VBD NN JJR CC NN JJR IN DT VBG NN . ''
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He was turning himself in . PRP VBD VBG PRP RB .
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`` Frankly , as I was walking back to get in my car , I heard many , many people ... opening champagne bottles and celebrating individual victories that some of us had accomplished in getting our little deal in the tax bill and winking at this person for slipping this in , '' he said . `` RB , IN PRP VBD VBG RB TO VB IN PRP$ NN , PRP VBD JJ , JJ NNS : NN NN NNS CC VBG JJ NNS IN DT IN PRP VBD VBN IN VBG PRP$ JJ NN IN DT NN NN CC VBG IN DT NN IN VBG DT NN , '' PRP VBD .
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`` As I was driving home , I did not feel very good about myself . '' `` IN PRP VBD VBG NN , PRP VBD RB VB RB JJ IN PRP . ''
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We can applaud Mr. Pryor 's moment of epiphany , even as we understand that he and his confreres need restraint lest they kill again . PRP MD VB NNP NNP POS NN IN NN , RB IN PRP VBP IN PRP CC PRP$ FW NN NN IN PRP VBP RB .
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A good place to start the rehabilitation is a `` legislative line-item veto '' bill now being offered by Indiana Senator Dan Coats . DT JJ NN TO VB DT NN VBZ DT `` JJ JJ NN '' NN RB VBG VBN IN NNP NNP NNP NNP .
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The Coats bill , which already has 32 Senate co-sponsors , is n't a pure line-item veto because it would apply only to spending bills . DT NNP NN , WDT RB VBZ CD NNP NNS , VBZ RB DT JJ JJ NN IN PRP MD VB RB TO NN NNS .
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Instead it 's a form of `` enhanced rescission , '' giving a President a chance to rescind , or strike , specific spending items that just go too far . RB PRP VBZ DT NN IN `` VBN NN , '' VBG DT NNP DT NN TO VB , CC NN , JJ NN NNS WDT RB VB RB RB .
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Under the proposal , a President would have a chance twice each year to return a package of `` rescissions '' to the Hill -- once when he proposes his budget and again after Congress disposes . IN DT NN , DT NNP MD VB DT NN RB DT NN TO VB DT NN IN `` NNS '' TO DT NNP : RB WRB PRP VBZ PRP$ NN CC RB IN NNP VBZ .
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Congress would have 20 days to reject the package with a 50 % majority , but then a President could veto that rejection . NNP MD VB CD NNS TO VB DT NN IN DT CD NN NN , CC RB DT NNP MD VB DT NN .
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Congress would then need the usual two-thirds majority to override any veto . NNP MD RB VB DT JJ NNS NN TO VB DT NN .
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The proposal would restore some discipline erased from the budget process by the 1974 Budget `` Reform '' Act . DT NN MD VB DT NN VBN IN DT NN NN IN DT CD NNP `` NNP '' NNP .
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Before 1974 , a President could `` impound , '' or refuse to spend , funds appropriated by Congress . IN CD , DT NNP MD `` VB , '' CC VB TO VB , NNS VBN IN NNP .
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Presidents Kennedy and Johnson were both big users of the impoundment power , but Congress saw its chance against a weakened President Nixon and stripped it away . NNP NNP CC NNP VBD DT JJ NNS IN DT NN NN , CC NNP VBD PRP$ NN IN DT VBN NNP NNP CC VBN PRP RB .
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Today a President can still send up spending rescissions , but they 're meaningless unless Congress has a guilty conscience and changes its mind . NN DT NNP MD RB VB IN NN NNS , CC PRP VBP JJ IN NNP VBZ DT JJ NN CC NNS PRP$ NN .
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This is like asking foxes to feel remorse about chickens , and naturally rescissions are almost never approved . DT VBZ IN VBG NNS TO VB NN IN NNS , CC RB NNS VBP RB RB VBD .
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In 1987 , President Reagan sent 73 rescissions back to the Hill , but only 3 % of the spending total was approved by Congress . IN CD , NNP NNP VBD CD NNS RB TO DT NNP , CC RB CD NN IN DT NN NN VBD VBN IN NNP .
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Senator Coats 's proposal would let the proposed spending cuts take place automatically unless Congress acts . NNP NNP POS NN MD VB DT VBN NN NNS VBP NN RB IN NNP NNS .
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The Members could still try to serve their constituents with special-interest goodies , but the police -LRB- in the form of a President -RRB- would be there with a straitjacket if they really get crazy , as they do now . DT NNS MD RB VB TO VB PRP$ NNS IN JJ NNS , CC DT NN ( IN DT NN IN DT NNP ) MD VB RB IN DT NN IN PRP RB VBP JJ , IN PRP VBP RB .
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Mr. Coats plans to offer his proposal as an amendment to a bill to raise the federal debt limit before the end of the month . NNP NNP VBZ TO VB PRP$ NN IN DT NN TO DT NN TO VB DT JJ NN NN IN DT NN IN DT NN .
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President Bush has endorsed the idea , and at least 50 sitting Senators have voted to support enhanced rescission authority in the past . NNP NNP VBZ VBN DT NN , CC IN JJS CD VBG NNS VBP VBN TO VB VBN NN NN IN DT NN .
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We 're told Senator Pryor is n't yet a co-sponsor , but if he and his colleagues are serious about kicking their compulsions , they 'll sign up . PRP VBP VBD NNP NNP VBZ RB RB DT NN , CC IN PRP CC PRP$ NNS VBP JJ IN VBG PRP$ NNS , PRP MD VB RB .
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Business and civic operations lurched back toward normalcy here as congressional officials estimated that the price tag for emergency assistance to earthquake-ravaged California would total at least $ 2.5 billion . NN CC JJ NNS VBD RB IN NN RB IN JJ NNS VBN IN DT NN NN IN NN NN TO JJ NNP MD VB IN JJS $ CD CD .
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`` That is a minimum figure , and I underscore minimum , '' said House Speaker Thomas Foley -LRB- D. , Wash . -RRB- after conferring with California lawmakers . `` DT VBZ DT JJ NN , CC PRP VBP JJ , '' VBD NNP NNP NNP NNP ( NNP , NNP . ) IN VBG IN NNP NNS .
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`` It 's impossible to put an exact figure on it at this time . '' `` PRP VBZ JJ TO VB DT JJ NN IN PRP IN DT NN . ''
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The Office of Management and Budget has begun looking into legislation to provide more funds for earthquake repairs . DT NNP IN NNP CC NNP VBZ VBN VBG IN NN TO VB JJR NNS IN NN NNS .
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And California 's 45-member delegation in the House is expected to propose that emergency funds be added to a stop-gap spending bill that the House Appropriations Committee is to consider Monday . CC NNP POS JJ NN IN DT NNP VBZ VBN TO VB IN NN NNS VBP VBN TO DT JJ NN NN IN DT NNP NNP NNP VBZ TO VB NNP .
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For the most part , major corporations ' headquarters and plants were unaffected or only slightly damaged by Tuesday 's earthquake , which registered 6.9 on the Richter scale . IN DT RBS NN , JJ NNS POS NN CC NNS VBD JJ CC RB RB VBN IN NNP POS NN , WDT VBD CD IN DT NNP NN .
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One of the last big employers in the Silicon Valley to report in , Seagate Technology , said it expects to be back at full strength Monday . CD IN DT JJ JJ NNS IN DT NNP NNP TO VB IN , NNP NNP , VBD PRP VBZ TO VB RB IN JJ NN NNP .
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The day before the quake , Seagate completed three days of emergency training and drills . DT NN IN DT NN , NNP VBD CD NNS IN NN NN CC NNS .
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Echoing the response of almost all big corporations in the Bay Area , Don Waite , Seagate 's chief financial officer , said , `` I would n't expect this to have any significant financial impact . '' VBG DT NN IN RB DT JJ NNS IN DT NNP NNP , NNP NNP , NNP POS JJ JJ NN , VBD , `` PRP MD RB VB DT TO VB DT JJ JJ NN . ''
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The city 's recovery from the earthquake was uneven . DT NN POS NN IN DT NN VBD JJ .
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Banks indicated they were operating at greater than 90 % of their usual capacity , but a Nob Hill hotel said tourists had fled , leaving the previously full hotel with an 80 % vacancy rate . NNP VBD PRP VBD VBG IN JJR IN CD NN IN PRP$ JJ NN , CC DT NNP NNP NN VBD NNS VBD VBN , VBG DT RB JJ NN IN DT CD NN NN NN .
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City crews tallied the wreckage to buildings , but lacked a clear sense of how gravely transportation arteries were disabled . NN NNS VBD DT NN TO NNS , CC VBD DT JJ NN IN WRB RB NN NNS VBD JJ .
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Among the city 's banks , Bank of America said all but eight of its 850 branches were open . IN DT NN POS NNS , NNP IN NNP VBD DT CC CD IN PRP$ CD NNS VBD JJ .
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The closed branches , in San Francisco , Hayward , Santa Clara and Santa Cruz , sustained structural damage . DT VBD NNS , IN NNP NNP , NNP , NNP NNP CC NNP NNP , VBN JJ NN .
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Power failures kept just seven of its 1,500 automated-teller machines off-line . NN NNS VBD RB CD IN PRP$ CD JJ NNS JJ .
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Securities-trading operations were moved to Bank of America 's Concord office , and foreign-exchange trading operations were shifted to Los Angeles , the bank said . JJ NNS VBD VBN TO NNP IN NNP POS NNP NN , CC JJ NN NNS VBD VBN TO NNP NNP , DT NN VBD .
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Wells Fargo & Co. said its Emergency Operations Committee -- which met all night Tuesday -- moved its global-funds transfer system to El Monte , Calif. , 500 miles to the south . NNP NNP CC NNP VBD PRP$ NNP NNP NNP : WDT VBD DT NN NNP : VBD PRP$ JJ NN NN TO NNP NNP , NNP , CD NNS TO DT RB .
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Only five of 496 branches statewide remain closed , while 23 of 600 automated-teller machines remained out of order . RB CD IN CD NNS JJ VB VBD , IN CD IN CD JJ NNS VBD IN IN NN .
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The most extensive damage was in small towns near the quake 's epicenter , 80 miles south of San Francisco . DT RBS JJ NN VBD IN JJ NNS IN DT NN POS NN , CD NNS RB IN NNP NNP .
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Santa Cruz County estimates total damage at nearly $ 600 million . NNP NNP NNP NNS JJ NN IN RB $ CD CD .
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Santa Clara County has a running total so far of $ 504 million , excluding the hard-hit city of Los Gatos . NNP NNP NNP VBZ DT VBG JJ RB RB IN $ CD CD , VBG DT JJ NN IN NNP NNP .
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Oakland officials were still uncertain about the magnitude of structural damage late yesterday ; a section of I-880 , a twotiered highway , collapsed in Oakland , causing a majority of the deaths resulting from the quake . NN NNS VBD RB JJ IN DT NN IN JJ NN JJ NN : DT NN IN NN , DT JJ NN , VBD IN NNP , VBG DT NN IN DT NNS VBG IN DT NN .
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San Francisco Mayor Art Agnos estimated that damages to the city total $ 2 billion . NNP NNP NNP NNP NNP VBD IN NNS TO DT NN JJ $ CD CD .
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That includes dwellings in the ravaged Marina district that must be demolished , peeled business facades south of Market Street , and houses in the city 's outer Richmond district that were heaved off their foundations . DT VBZ NNS IN DT VBN NNP NN WDT MD VB VBN , VBN NN NNS RB IN NNP NNP , CC NNS IN DT NN POS JJ NNP NN WDT VBD VBN IN PRP$ NNS .
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Many streets and sidewalks buckled , and subterranean water mains and service connections ruptured . JJ NNS CC NNS VBD , CC JJ NN NNS CC NN NNS VBN .
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The federal funds would go to a range of programs , including the Federal Emergency Management Agency , highway construction accounts and the Small Business Administration , according to Rep. Vic Fazio -LRB- D. , Calif . -RRB- . DT JJ NNS MD VB TO DT NN IN NNS , VBG DT NNP NNP NNP NNP , NN NN NNS CC DT NNP NNP NNP , VBG TO NNP NNP NNP ( NNP , NNP . ) .
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FEMA , which coordinates federal disaster relief , is already strapped by the costs of cleaning up after Hurricane Hugo , which hit the Carolinas last month . NNP , WDT VBZ JJ NN NN , VBZ RB VBN IN DT NNS IN NN IN IN NNP NNP , WDT VBD DT NNPS JJ NN .
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It is likely to get as much as $ 800 million initially in additional funds , and eventually could get more than $ 1 billion , according to Mr. Fazio , a member of the House Appropriations Committee . PRP VBZ JJ TO VB RB JJ IN $ CD CD RB IN JJ NNS , CC RB MD VB JJR IN $ CD CD , VBG TO NNP NNP , DT NN IN DT NNP NNP NNP .
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White House spokesman Marlin Fitzwater said there is enough money on hand to deal with immediate requirements . NNP NNP NN NNP NNP VBD EX VBZ JJ NN IN NN TO VB IN JJ NNS .
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The Bush administration has at its disposal $ 273 million in funds remaining from the $ 1.1 billion Congress released for the cleanup after Hurricane Hugo . DT NNP NN VBZ IN PRP$ NN $ CD CD IN NNS VBG IN DT $ CD CD NNP VBD IN DT NN IN NNP NNP .
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`` We feel we have the money necessary to handle the immediate , short-term requirements , '' Mr. Fitzwater said . `` PRP VBP PRP VBP DT NN JJ TO VB DT JJ , JJ NNS , '' NNP NNP VBD .
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He added that the Office of Management and Budget , the Transportation Department and other agencies are `` developing longer-term legislation '' that should be ready soon . PRP VBD IN DT NNP IN NNP CC NNP , DT NNP NNP CC JJ NNS VBP `` VBG JJ NN '' WDT MD VB JJ RB .
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Much of the cost of cleaning up after the earthquake will involve repairing highways and bridges . RB IN DT NN IN NN IN IN DT NN MD VB VBG NNS CC NNS .
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California lawmakers are seeking changes in rules governing the federal highway relief program so more money can be made available for the state . JJ NNS VBP VBG NNS IN NNS VBG DT JJ NN NN NN RB JJR NN MD VB VBN JJ IN DT NN .
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Some things ca n't be repaired . DT NNS MD RB VB VBN .
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The Asian Art Museum in Golden Gate Park reports $ 10 million to $ 15 million in damage , including shattered porcelains and stone figures . DT NNP NNP NNP IN NNP NNP NNP NNS $ CD CD TO $ CD CD IN NN , VBG VBN NNS CC NN NNS .
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Its neighbor , the De Young Museum , totaled $ 3 million to $ 5 million in structural damage and shattered sculpture . PRP$ NN , DT NNP NNP NNP , VBD $ CD CD TO $ NN CD IN JJ NN CC VBN NN .
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The city 's main library is closed because of fissures that opened in its walls , and marble facings and ornamental plaster at the Beaux Arts City Hall broke off in the temblor . DT NN POS JJ NN VBZ VBN IN IN NNS WDT VBD IN PRP$ NNS , CC NN NNS CC JJ NN IN DT NNP NNP NNP NNP VBD IN IN DT NN .
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The ground along the Embarcadero the street that skirts the city 's eastern boundary and piers -- dropped six inches after the quake , wreaking major damage to at least one of the piers . DT NN IN DT NNP DT NN IN VBZ DT NN POS JJ NN CC NNS : VBD CD NNS IN DT NN , VBG JJ NN TO IN JJS CD IN DT NNS .
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At San Francisco International Airport , shock waves wrecked the control tower , knocking down computers and shattering glass . IN NNP NNP NNP NNP , NN NNS VBD DT NN NN , VBG JJ NNS CC VBG NN .
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Offices of the city 's Rent Board were destroyed . NNS IN DT NN POS NNP NNP VBD VBN .
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Mayor Agnos 's $ 2 billion estimate does n't include damage to freeway arteries leading into the city , some of which remained closed . NNP NNP POS $ CD CD NN VBZ RB VB NN TO NN NNS VBG IN DT NN , DT IN WDT VBD VBN .
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A major chunk of the $ 2 billion is expected to be eaten up by overtime for city workers deployed in the emergency , said a spokesman for Mr. Agnos . DT JJ NN IN DT $ CD CD VBZ VBN TO VB VBN IN IN NN IN NN NNS VBN IN DT NN , VBD DT NN IN NNP NNP .
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`` All of the city 's $ 5.9 million emergency reserve was spent in the first 24 hours '' on overtime salaries , he said . `` DT IN DT NN POS $ CD CD NN NN VBD VBN IN DT JJ CD NNS '' IN NN NNS , PRP VBD .
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Insurers struggled to to get a firm grasp on the volume of claims pouring into their offices . NNS VBD TO TO VB DT NN NN IN DT NN IN NNS VBG IN PRP$ NNS .
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At Fireman 's Fund Corp. , a spokesman said 142 claims were received in the first 24 hours after the quake , and the company is braced for as many as 5,000 claims from its 35,000 residential and 35,000 business policyholders in the affected area . IN NNP POS NNP NNP , DT NN VBD CD NNS VBD VBN IN DT JJ CD NNS IN DT NN , CC DT NN VBZ VBN IN RB JJ IN CD NNS IN PRP$ CD JJ CC CD NN NNS IN DT VBN NN .
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`` Claims range from a scratched fender -- and there were an awful lot of cars damaged in this -- to a major processing plant , '' a spokesman said . `` NNPS NN IN DT VBN NN : CC EX VBD DT JJ NN IN NNS VBN IN DT : TO DT JJ NN NN , '' DT NN VBD .
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`` We 're delivering a check for $ 750,000 to an automotive business in Berkeley that burned on Tuesday . '' `` PRP VBP VBG DT NN IN $ CD TO DT JJ NN IN NNP WDT VBD IN NNP . ''
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Fireman 's is part of a $ 38 million syndicate that supplies business interruption insurance to the city on the Bay Bridge , which must pay employees during the three weeks or more it is expected to be out of service and deprived of toll income . NNP POS VBZ NN IN DT $ CD CD NN IN NNS NN NN NN TO DT NN IN DT NNP NNP , WDT MD VB NNS IN DT CD NNS CC JJR PRP VBZ VBN TO VB IN IN NN CC VBN IN NN NN .
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California lawmakers want to eliminate temporarily a $ 100 million cap on the amount of federal highway relief for each state for each disaster , as well as a prohibition on using the emergency highway aid to repair toll roads . JJ NNS VBP TO VB RB DT $ CD CD NN IN DT NN IN JJ NN NN IN DT NN IN DT NN , RB RB IN DT NN IN VBG DT NN NN NN TO VB NN NNS .
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In addition , under the highway-relief program , the federal government provides 100 % of emergency highway aid for only the first 90 days of a repair effort . IN NN , IN DT JJ NN , DT JJ NN VBZ CD NN IN NN NN NN IN RB DT JJ CD NNS IN DT NN NN .
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After that , the federal share diminishes . IN DT , DT JJ NN VBZ .
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For interstate highways , the federal share normally would drop to 90 % of the cost of repairs , and the state would have to pick up the remainder of the cost . IN JJ NNS , DT JJ NN RB MD VB TO CD NN IN DT NN IN NNS , CC DT NN MD VB TO VB IN DT NN IN DT NN .
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But lawmakers want to extend the period for 100 % federal funding for several months . CC NNS VBP TO VB DT NN IN CD NN JJ NN IN JJ NNS .
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Those changes also would apply to two areas hit hard by Hurricane Hugo -- South Carolina and the U.S. Virgin Islands , according to an aide to Rep. Fazio . DT NNS RB MD VB TO CD NNS VBD JJ IN NNP NNP : NNP NNP CC DT NNP NNP NNPS , VBG TO DT NN TO NNP NNP .
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Meanwhile , the FEMA announced a toll-free telephone number -LRB- 800-462-9029 -RRB- to expedite service to victims of the earthquake . RB , DT NNP VBD DT JJ NN NN ( CD ) TO VB NN TO NNS IN DT NN .
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Lines will be available 24 hours a day to take applications for such disaster relief as temporary housing and emergency home repairs by phone . NNS MD VB JJ CD VBZ DT NN TO VB NNS IN JJ NN NN IN JJ NN CC NN NN NNS IN NN .
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Transportation officials are expecting utter traffic pandemonium beginning Monday and growing worse over the next several weeks . NN NNS VBP VBG JJ NN NN VBG NNP CC VBG JJR IN DT JJ JJ NNS .
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Some 250,000 cars normally cross the closed Bay Bridge between Oakland and San Francisco daily . DT CD NNS RB VBP DT VBN NNP NNP IN NNP CC NNP NNP JJ .
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Officials say it is clear that alternate routes ca n't handle the overflow . NNS VBP PRP VBZ JJ IN JJ NNS MD RB VB DT NN .
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The state is calling in a flotilla of navy landing vessels and other boats to expand ferry service across the bay and hopes to add numerous new bus routes and train departures to help alleviate the traffic problem . DT NN VBZ VBG IN DT NN IN NN NN NNS CC JJ NNS TO VB NN NN IN DT NN CC VBZ TO VB JJ JJ NN NNS CC NN NNS TO VB VB DT NN NN .
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Moreover , state officials are urging freight haulers to bypass many of the area 's main highways and to travel late at night or during predawn hours . RB , NN NNS VBP VBG NN NNS TO VB NN IN DT NN POS JJ NNS CC TO VB RB IN NN CC IN JJ NNS .
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Even so , `` We 're looking for chaos , '' said George Gray , a deputy district director at the California Department of Transportation . RB RB , `` PRP VBP VBG IN NN , '' VBD NNP NNP , DT NN NN NN IN DT NNP NNP IN NNP .
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`` If there 's any way you can do it , you ought to go to Idaho and go fishing for a while . '' `` IN EX VBZ DT NN PRP MD VB PRP , PRP MD TO VB TO NNP CC VB NN IN DT NN . ''
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Most of San Francisco 's tourists and business travelers already have left -- despite hotel 's offers of rate cuts . JJS IN NNP NNP POS NNS CC NN NNS RB VBP VBN : IN NN POS NNS IN NN NNS .
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`` Everyone left , '' said Peter Lang , reservations manager of the Mark Hopkins Hotel . `` NN VBN , '' VBD NNP NNP , NNS NN IN DT NNP NNP NNP .
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The Westin St. Francis hotel , which survived the 1906 earthquake and fire , currently is less than 50 % occupied . DT NNP NNP NNP NN , WDT VBD DT CD NN CC NN , RB VBZ JJR IN CD NN VBN .
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`` We still have our die-hard baseball fans , '' a spokesman said . `` PRP RB VBP PRP$ JJ NN NNS , '' DT NN VBD .
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`` One lady from New York said she 's not going home until the -LCB- World Series -RCB- is over . '' `` CD NN IN NNP NNP VBD PRP VBZ RB VBG NN IN DT ( NNP NNP ) VBZ IN . ''
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Gerald F. Seib and Joe Davidson in Washington contributed to this article . NNP NNP NNP CC NNP NNP IN NNP VBD TO DT NN .
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Is an American Secretary of State seriously suggesting that the Khmer Rouge should help govern Cambodia ? VBZ DT NNP NNP IN NNP RB VBG IN DT NNP NNP MD VB VB NNP .
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Apparently so . RB RB .
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There are no easy choices in Cambodia , but we ca n't imagine that it benefits the U.S. to become the catalyst for an all-too-familiar process that could end in another round of horror in Cambodia . EX VBP DT JJ NNS IN NNP , CC PRP MD RB VB IN PRP VBZ DT NNP TO VB DT NN IN DT JJ NN WDT MD VB IN DT NN IN NN IN NNP .
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Now that Vietnam appears to have pulled out its occupation army , the State Department is talking again about accepting an `` interim '' coalition government in the Cambodian capital of Phnom Penh . RB IN NNP VBZ TO VB VBN IN PRP$ NN NN , DT NNP NNP VBZ VBG RB IN VBG DT `` JJ '' NN NN IN DT JJ NN IN NNP NNP .
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The coalition would include the current Vietnamese-backed Hun Sen regime , the two non-communist resistance groups led by Son Sann and Prince Sihanouk , and the Khmer Rouge . DT NN MD VB DT JJ JJ NNP NNP NN , DT CD JJ NN NNS VBN IN NNP NNP CC NNP NNP , CC DT NNP NNP .
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The aim would be to end the guerrilla war for control of Cambodia by allowing the Khmer Rouge a small share of power . DT NN MD VB TO VB DT NN NN IN NN IN NNP IN VBG DT NNP NNP DT JJ NN IN NN .
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The State Department says that any Khmer Rouge participation would have to be `` minimal . '' DT NNP NNP VBZ IN DT NNP NNP NN MD VB TO VB `` JJ . ''
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The usual problem with including communists in `` interim '' coalition governments is that their ideology and methods require they squeeze out everyone else . DT JJ NN IN VBG NNS IN `` JJ '' NN NNS VBZ IN PRP$ NN CC NNS VBP PRP VBP IN NN RB .
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Recall that Nicaragua 's Sandinistas came into Managua as partners in a coalition government with anti-Somoza moderates . VB IN NNP POS NNPS VBD IN NNP IN NNS IN DT NN NN IN JJ NNS .
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Within two years , the moderates were exiled or in prison , Nicaragua had gone communist , and the Sandinistas were building one of the biggest armies in Latin America and threatening their neighbors . IN CD NNS , DT NNS VBD VBN CC IN NN , NNP VBD VBN JJ , CC DT NNPS VBD NN CD IN DT JJS NNS IN NNP NNP CC VBG PRP$ NNS .
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In Laos , when the Western powers bowed to pressure for such a coalition it turned out they were opening the door to communist domination . IN NNP , WRB DT JJ NNS VBD TO VB IN JJ DT NN PRP VBD IN PRP VBD VBG DT NN TO JJ NN .
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Even Mao Tse-tung 's China began in 1949 with a partnership between the communists and a number of smaller , non-communist parties . RB NNP NNP POS NNP VBD IN CD IN DT NN IN DT NNS CC DT NN IN JJR , JJ NNS .
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What complicates the scene in Cambodia is that the current regime is already communist , as are its Vietnamese overseers back in Hanoi , as are the Khmer Rouge -- who are the strongest of the three guerrilla groups . WP VBZ DT NN IN NNP VBZ IN DT JJ NN VBZ RB JJ , IN VBP PRP$ JJ NNS RB IN NNP , IN VBP DT NNP NNP : WP VBP DT JJS IN DT CD NN NNS .
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It 's not clear which crew of communists might prevail in a coalition government , but the one good bet is that the non-communists would disappear . PRP VBZ RB JJ WDT NN IN NNS MD VB IN DT NN NN , CC DT CD JJ NN VBZ IN DT NNS MD VB .
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That would leave Hun Sen and the Khmer Rouge . DT MD VB NNP NNP CC DT NNP NNP .
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The Hun Sen regime has sent thousands of conscript laborers to die of malaria and malnourishment while building Cambodia 's equivalent of the Berlin Wall near the Thai border . DT NNP NNP NN VBZ VBN NNS IN NN NNS TO VB IN NN CC NN IN NN NNP POS NN IN DT NNP NNP IN DT NNP NN .
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The Khmer Rouge , however , carry an unsurpassed record for Cambodian tyranny . DT NNP NNP , RB , VB DT JJ NN IN JJ NN .
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These utopians caused the deaths -- by starvation , disease or execution -- of well over one million Cambodians . DT NNS VBD DT NNS : IN NN , NN CC NN : IN RB IN CD CD NNPS .
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The Cambodian horror was so bad that the Vietnamese occupation in 1978 was a perverse form of relief . DT JJ NN VBD RB JJ IN DT JJ NN IN CD VBD DT JJ NN IN NN .
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The world might want to believe that the Khmer Rouge ca n't still be such bad guys , just as in the late 1970s it was reluctant to credit the reports of genocide then taking place . DT NN MD VB TO VB IN DT NNP NNP MD RB RB VB JJ JJ NNS , RB IN IN DT JJ NNS PRP VBD JJ TO VB DT NNS IN NN RB VBG NN .
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But there is no solid evidence that the Khmer Rouge have changed . CC EX VBZ DT JJ NN IN DT NNP NNP VBP VBN .
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Some of our sources in Thailand say the notorious old Khmer Rouge leader , Pol Pot , has been holed up this summer in Khmer Rouge camps near the Thai-Cambodian border . DT IN PRP$ NNS IN NNP VBP DT JJ JJ NNP NNP NN , NNP NNP , VBZ VBN VBN IN DT NN IN NNP NNP NNS IN DT JJ NN .
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So it 's difficult to swallow the notion that Mr. Baker is willing to accept conditions that would help the Khmer Rouge set up shop again in Phnom Penh . RB PRP VBZ JJ TO VB DT NN IN NNP NNP VBZ JJ TO VB NNS WDT MD VB DT NNP NNP VBD IN NN RB IN NNP NNP .
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True , Prince Sihanouk backs the idea of such a coalition , at least for this week . JJ , NNP NNP VBZ DT NN IN JJ DT NN , IN JJS IN DT NN .
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But Prince Sihanouk has backed all sorts of ideas over the years , and done rather better by himself than by Cambodia . CC NNP NNP VBZ VBN DT NNS IN NNS IN DT NNS , CC VBD RB JJR IN PRP IN IN NNP .
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Nor should the U.S. worry much about offending China , which still aids the Khmer Rouge . CC MD DT NNP NN JJ IN VBG NNP , WDT RB VBZ DT NNP NNP .
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It 's time the State Department recognized that China does not play by gentlemen 's rules . PRP VBZ NN DT NNP NNP VBD IN NNP VBZ RB VB IN NNS POS NNS .
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For the U.S. to lend even the slightest support to the most infamous killers on Indochina 's bleak scene could only disturb America 's allies elsewhere . IN DT NNP TO VB RB DT JJS NN TO DT RBS JJ NNS IN NNP POS JJ NN MD RB VB NNP POS NNS RB .
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It would be entirely rational for communist insurgents in countries such as the Philippines or Peru to conclude the following : Fight viciously enough and the U.S. , under the banner of pragmatism , might eventually help negotiate your way to victory . PRP MD VB RB JJ IN JJ NNS IN NNS JJ IN DT NNP CC NNP TO VB DT VBG : VB RB RB CC DT NNP , IN DT NN IN NN , MD RB VB VB PRP$ NN TO NN .
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U.S. diplomacy has done it before , and it will likely do it again . NNP NN VBZ VBN PRP RB , CC PRP MD RB NN PRP RB .
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The administration and Congress have lately tangoed around the idea of sending military aid to Cambodia 's non-communists . DT NN CC NNP VBP RB VBD IN DT NN IN VBG JJ NN TO NNP POS NNS .
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But now the possibility of `` diplomatic movement '' -LRB- Vietnam 's withdrawal , the Baker initiative -RRB- has put that plan on hold , with the proviso that if the going got rough , the U.S. would then rearm the opposition . CC RB DT NN IN `` JJ NN '' ( NNP POS NN , DT NNP NN ) VBZ VBN DT NN IN NN , IN DT NN IN IN DT VBG VBN JJ , DT NNP MD RB VB DT NN .
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Why the timidity ? WRB DT NN .
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At the very least , the odds are heavily weighted against the prospects of preventing the Khmer Rouge and Cambodia 's communists from ultimately moving against their opponents . IN DT RB JJS , DT NNS VBP RB JJ IN DT NNS IN VBG DT NNP NNP CC NNP POS NNS IN RB VBG IN PRP$ NNS .
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When that day comes , it would be particularly awful to know that the United States sat on military aid and deprived these people of the means to settle their fate with at least a little honor . WRB DT NN VBZ , PRP MD VB RB JJ TO VB IN DT NNP NNPS VBD IN JJ NN CC VBD DT NNS IN DT NNS TO VB PRP$ NN IN IN JJS DT JJ NN .
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Michael F. Harris , 53 , was named executive vice president , North America , for the Financial Times , the business newspaper published by this company that also has interests in book publishing , fine china , oil services and investment banking . NNP NNP NNP , CD , VBD VBN JJ NN NN , NNP NNP , IN DT NNP NNP , DT NN NN VBN IN DT NN WDT RB VBZ NNS IN NN NN , JJ NN , NN NNS CC NN NN .
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Mr. Harris had been vice president for the newspaper 's advertising in New York . NNP NNP VBD VBN NN NN IN DT NN POS NN IN NNP NNP .
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He takes additional responsibility for newspaper sales and distribution of the Financial Times in North America . PRP VBZ JJ NN IN NN NNS CC NN IN DT NNP NNP IN NNP NNP .
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Laurance V. Allen , 44 , who had been director for North America , resigned to pursue other business interests and do some consulting . NNP NNP NNP , CD , WP VBD VBN NN IN NNP NNP , VBD TO VB JJ NN NNS CC VBP DT NN .
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Cipher Data Products Inc. posted a net loss of $ 14.2 million , or 97 cents a share , for its fiscal first quarter , compared with net income of $ 3.8 million , or 27 cents a share , a year ago . NNP NNP NNP NNP VBD DT JJ NN IN $ CD CD , CC CD NNS DT NN , IN PRP$ JJ JJ NN , VBN IN JJ NN IN $ CD CD , CC CD NNS DT NN , DT NN RB .
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Revenue for the quarter ended Sept. 30 fell 20 % , to $ 41.3 million from $ 51.9 million in the year-earlier period . NN IN DT NN VBN NNP CD VBD CD NN , TO $ CD CD IN $ CD CD IN DT JJ NN .
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Cipher Data , a San Diego maker of magnetic tape peripherals and optical disc drives , said the loss included reserves of $ 3.8 million related to a corporate restructuring . NNP NNP , DT NNP NNP NN IN JJ NN NNS CC JJ NN NNS , VBD DT NN VBD NNS IN $ CD CD VBN TO DT JJ NN .
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The restructuring calls for a 24 % reduction in its work force over the next two months , affecting about 525 jobs , Cipher Data said . DT NN VBZ IN DT CD NN NN IN PRP$ NN NN IN DT JJ CD NNS , VBG IN CD NNS , NNP NNP VBD .
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It is eliminating the positions of president and chief operating officer , formerly held by Edward L. Marinaro . PRP VBZ VBG DT NNS IN NN CC JJ VBG NN , RB VBN IN NNP NNP NNP .
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Cipher Data said Mr. Marinaro consequently has resigned from those posts and from the company 's board . NNP NNP VBD NNP NNP RB VBZ VBN IN DT NNS CC IN DT NN POS NN .
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Mr. Marinaro could n't immediately be reached for comment . NNP NNP MD RB RB VB VBN IN NN .
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FileNet Corp. , Costa Mesa , Calif. , said it expects to report a third-quarter loss of about $ 1.8 million , or 17 cents a share , because of a $ 2.5 million reserve to be taken against potential losses on a contract with the state of California . NNP NNP , NNP NNP , NNP , VBD PRP VBZ TO VB DT JJ NN IN RB $ CD CD , CC CD NNS DT NN , IN IN DT $ CD CD NN TO VB VBN IN JJ NNS IN DT NN IN DT NN IN NNP .
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Revenue is estimated at $ 18.6 million . NN VBZ VBN IN $ CD CD .
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The maker of document image processing equipment said the state procurement division had declared FileNet in default on its contract with the secretary of state uniform commercial code division . DT NN IN NN NN NN NN VBD DT NN NN NN VBD VBN NNP IN NN IN PRP$ NN IN DT NN IN NN NN JJ NN NN .
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FileNet said it does n't believe the state has a valid basis of default and is reviewing its legal rights under the contract , but said it ca n't predict the outcome of the dispute . NNP VBD PRP VBZ RB VB DT NN VBZ DT JJ NN IN NN CC VBZ VBG PRP$ JJ NNS IN DT NN , CC VBD PRP MD RB VB DT NN IN DT NN .
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The disagreement centers on testing deadlines and other issues involving a FileNet system installed earlier this year . DT NN NNS IN NN NNS CC JJ NNS VBG DT NNP NN VBN RBR DT NN .
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State officials could n't be reached for comment late yesterday . NN NNS MD RB VB VBN IN NN JJ NN .
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FileNet noted that it had cash and marketable securities totaling $ 22.5 million on Sept. 30 , and stockholders ' equity is $ 60.1 million . NNP VBD IN PRP VBD NN CC JJ NNS VBG $ CD CD IN NNP CD , CC NNS POS NN VBZ $ CD CD .
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The company made the announcement after the close of the markets , where its stock finished at $ 10.75 , up 25 cents , in over-the-counter trading . DT NN VBD DT NN IN DT NN IN DT NNS , WRB PRP$ NN VBD IN $ CD , IN CD NNS , IN JJ NN .
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Clinton Gas Systems Inc. said it received a contract from Timken Co. , Canton , Ohio , to manage the natural gas purchasing , scheduling and transportation activities for Timken 's seven Ohio and two Pennsylvania plants . NNP NNP NNP NNP VBD PRP VBD DT NN IN NNP NNP , NNP , NNP , TO VB DT JJ NN VBG , NN CC NN NNS IN NNP POS CD NNP CC CD NNP NNS .
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Clinton and Timken agreed not to disclose the value of the contract . NNP CC NNP VBD RB TO VB DT NN IN DT NN .
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Timken , a producer of bearings and specialty steel , already buys gas from Clinton . NNP , DT NN IN NNS CC NN NN , RB VBZ NN IN NNP .
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Clinton said in Columbus , Ohio , that its Clinton Gas Marketing unit wants to line up a number of such gas management contracts . NNP VBD IN NNP , NNP , IN PRP$ NNP NNP NNP NN VBZ TO VB IN DT NN IN JJ NN NN NNS .
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Manufacturers frequently do n't have anyone who is a specialist in natural gas , Clinton said , and a specialist such as Clinton can save them substantial amounts of money . NNS RB VBP RB VB NN WP VBZ DT NN IN JJ NN , NNP VBD , CC DT NN JJ IN NNP MD VB PRP JJ NNS IN NN .
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The scene opens with pinstripe-suited executives -- Easterners , obviously -- glued to cellular phones and hightailing it out of town in chauffeur-driven limousines . DT NN VBZ IN JJ NNS : NNS , RB : VBN TO JJ NNS CC VBG PRP IN IN NN IN JJ NNS .
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`` The carpetbaggers , '' snorts the narrator with a Texas twang , `` have packed their bags and went . '' `` DT NNS , '' VBZ DT NN IN DT NNP NN , `` VBP VBN PRP$ NNS CC VBD . ''
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But , he continues , `` They 're forgetting we 're all Texans . CC , PRP VBZ , `` PRP VBP VBG PRP VBP DT NNPS .
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The Lone Star is on the rise again . '' DT NNP NNP VBZ IN DT NN RB . ''
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As the music swells , viewers discover they 're watching a commercial for Lone Star Beer , the pride of Texas , a product of G. Heileman Brewing Co. , a La Crosse , Wis. , unit of Bond Corp . IN DT NN NNS , NNS VBP PRP VBP VBG DT NN IN NNP NNP NN , DT NN IN NNP , DT NN IN NNP NNP NNP NNP , DT NNP NNP , NNP , NN IN NNP NNP .
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As the ad 's tone implies , the Texas spirit is pretty xenophobic these days , and Lone Star is n't alone in trying to take advantage of that . IN DT NN POS NN VBZ , DT NNP NN VBZ RB JJ DT NNS , CC NNP NNP VBZ RB RB IN VBG TO VB NN IN DT .
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From Chevy trucks to Lipton iced tea to a host of battling banks , the state has been inundated with broadcast commercials and print advertising campaigns celebrating Texans and castigating outsiders . IN NNP NNS TO NNP JJ NN TO DT NN IN VBG NNS , DT NN VBZ VBN VBN IN NN NNS CC NN NN NNS VBG NNPS CC VBG NNS .
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While advertisers have long appealed to Texans ' state pride and prejudices , the latest trend has been sparked , in part , by the state 's recent hard economic times . IN NNS VBP RB VBN TO NNPS POS NN NN CC NNS , DT JJS NN VBZ VBN VBN , IN NN , IN DT NN POS JJ JJ JJ NNS .
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That has taken some of the swagger out of natives who like to brag that Texas is the only state that was once a nation , but it has increased their legendary resentment of outsiders . DT VBZ VBN DT IN DT NN RP IN NNS WP VB TO VB IN NNP VBZ DT JJ NN WDT VBD RB DT NN , CC PRP VBZ VBN PRP$ JJ NN IN NNS .
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In the past , writes Houston Chronicle columnist Jim Barlow , outlanders were accepted only after passing a series of tests to prove they had the `` right '' Texas attitudes and `` of course they had to be dipped for parasites . '' IN DT NN , VBZ NNP NNP NN NNP NNP , NNS VBD VBN RB IN VBG DT NN IN NNS TO VB PRP VBD DT `` NN '' NNP NNS CC `` IN NN PRP VBD TO VB VBN IN NNS . ''
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There is no small irony in the fact that some of the most-jingoistic advertising comes courtesy of -- you guessed it -- outsiders . EX VBZ DT JJ NN IN DT NN IN DT IN DT JJ NN VBZ NN IN : PRP VBD PRP : NNS .
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Lone Star 's Bond Corp. parent , for instance , hails from Perth , Australia . NNP NNP POS NNP NNP NN , IN NN , VBZ IN NNP , NNP .
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North Carolinians , New Yorkers , Californians , Chicagoans and Ohioans own Texas banks . NNP NNPS , NNP NNPS , NNS , NNPS CC NNPS JJ NNP NNS .
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All kinds of landmark Texas real estate has been snapped up by out-of-staters . DT NNS IN NN NNP JJ NN VBZ VBN VBN IN IN NNS .
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Even the beloved Dallas Cowboys were bought by an Arkansas oil man . RB DT JJ NNP NNPS VBD VBN IN DT NNP NN NN .
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`` Texas has lost its distinctiveness , leaving Texans with a hunger to feel proud about themselves , '' says Stephen Klineberg , a sociology professor at Rice University , Houston . `` NNP VBZ VBN PRP$ NN , VBG NNPS IN DT NN TO VB JJ IN PRP , '' VBZ NNP NNP , DT NN NN IN NNP NNP , NNP .
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`` This plays right into the hands of the advertising agencies . '' `` DT VBZ NN IN DT NNS IN DT NN NNS . ''
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For example , the iced-tea radio campaign for Thomas J. Lipton Co. , an Englewood Cliffs , N.J. , unit of Anglo-Dutch Unilever Group , emphatically proclaims : `` Real Texans do not wear dock-siders -- ever . IN NN , DT NN NN NN IN NNP NNP NNP NNP , DT NNP NNP , NNP , NN IN NNP NNP NNP , RB VBZ : `` JJ NNPS VBP RB VB NNS : RB .
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Real Texans do n't play paddleball , at least I hope not . JJ NNPS VBP RB VB NN , IN JJS PRP VBP RB .
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This is football country . DT VBZ NN NN .
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And another thing -- real Texans drink Lipton iced tea . '' CC DT NN : JJ NNPS NN NNP JJ NN . ''
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In developing that theme at Interpublic Group of Cos . ' Lintas : New York unit , account supervisor Lisa Buksbaum says she made a `` couple of phone calls '' to Dallas ad friends and reported her `` findings '' to a team of writers . IN VBG DT NN IN NNP NNP IN NNP . '' NNP : NNP NNP NN , NN NN NNP NNP VBZ PRP VBD DT `` NN IN NN NNS '' TO NNP NN NNS CC VBD PRP$ `` NNS '' TO DT NN IN NNS .
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Her findings ? PRP$ NNS .
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`` You know , '' she says , `` stereotypical stuff like armadillos , cowboys and football . '' `` PRP VBP , '' PRP VBZ , `` JJ NN IN NNS , NNS CC NN . ''
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Not exactly sophisticated market research , but who cares as long as the campaigns work . RB RB JJ NN NN , CC WP VBZ RB RB IN DT NNS VBP .
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And ad agencies insist that they do . CC NN NNS VBP IN PRP VBP .
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Stan Richards of Richards Group Inc. , Dallas , tells of the Texan who saw the agency 's tear-jerking commercial for First Gibraltar Bank F.S.B. -- complete with the state 's anthem -- and promptly invested $ 100,000 in the thrift 's CDs . NNP NNP IN NNP NNP NNP , NNP , VBZ IN DT NNP WP VBD DT NN POS JJ NN IN NNP NNP NNP NNP : JJ IN DT NN POS NN : CC RB VBN $ CD IN DT NN POS NNS .
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Never mind that First Gibraltar is one of the failed Texas thrifts taken over by outsiders -- in this case , an investor group headed by New York financier Ronald Perelman . RB NN IN NNP NNP VBZ CD IN DT VBN NNP NNS VBN IN IN NNS : IN DT NN , DT NN NN VBN IN NNP NNP NN NNP NNP .
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The North Texas Chevy Dealers recently had a record sales month after the debut of ad campaign that thumbs its nose at elite Easterners . DT NNP NNP NNP NNS RB VBD DT NN NNS NN IN DT NN IN NN NN IN NNS PRP$ NN IN NN NNS .
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And deposits at NCNB Texas National Bank , a unit of NCNB Corp. , Charlotte , N.C. , have increased $ 2 billion since last year after heavy advertising stressing commitment to Texas . CC NNS IN NNP NNP NNP NNP , DT NN IN NNP NNP , NNP , NNP , VBP VBN $ CD CD IN JJ NN IN JJ NN VBG NN TO NNP .
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`` Obviously , pride sells in Texas , '' says a spokeswoman for Bozell Inc. , Omaha , Neb. , which represents `` RB , NN VBZ IN NNP , '' VBZ DT NN IN NNP NNP , NNP , NNP , WDT VBZ
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The ad campaigns usually follow one of three tracks -- stressing the company 's ` Texasness , ' pointing out the competition 's lack thereof , or trying to be more Texan than Texans . DT NN NNS RB VBP CD IN CD VBZ : VBG DT NN POS `` NN , '' VBG RP IN NN POS NN RB , CC VBG TO VB JJR NNP IN NNPS .
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Ford trucks may outsell Chevy trucks in places like `` Connecticut and Long Island , '' sniffs a commercial for Chevrolet , a division of General Motors Corp . NNP NNS MD VB NNP NNS IN NNS IN `` NNP CC NNP NNP , '' VBZ DT NN IN NNP , DT NN IN NNP NNPS NNP .
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The commercial , created by Bateman , Bryan & Galles Inc. , of Dallas , adds derisively : `` I bet it takes a real tough truck to haul your Ivy League buddies to the yacht club . '' DT NN , VBN IN NNP , NNP CC NNP NNP , IN NNP , VBZ RB : `` PRP VBP PRP VBZ DT JJ JJ NN TO VB PRP$ NNP NNP NNS TO DT NN NN . ''
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Because they want a truck that is `` Texas tough , '' the commercial concludes , `` Texans drive Chevy . '' IN PRP VBP DT NN WDT VBZ `` NNP JJ , '' DT NN VBZ , `` NNPS NN NNP . ''
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J.C. Penney Co. , which relocated from New York to suburban Dallas two years ago , gently wraps itself in Texas pride through a full-page magazine ad : `` Taking the long-range view to conserve what is of value to future generations is part of the Lone Star lifestyle , '' the ad reads . NNP NNP NNP , WDT VBD IN NNP NNP TO JJ NNP CD NNS RB , RB VBZ PRP IN NNP NN IN DT JJ NN NN : `` VBG DT JJ NN TO VB WP VBZ IN NN TO NN NNS VBZ NN IN DT NNP NNP NN , '' DT NN VBZ .
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`` It 's part of our style , too . '' `` PRP VBZ NN IN PRP$ NN , RB . ''
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According to several ad-agency sources , newcomers to the Texas banking market are spending a combined $ 50 million this year to woo Texans . VBG TO JJ NN NNS , NNS TO DT NNP NN NN VBP VBG DT VBN $ CD CD DT NN TO VB NNPS .
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Meanwhile , surviving Texas banking institutions are busily pitching themselves as the only lenders who truly care about the state . RB , VBG NNP NN NNS VBP RB VBG PRP IN DT JJ NNS WP RB VBP IN DT NN .
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The most-strident anti-outsider sentiment among bankers comes from the Independent Bankers Association of Texas , although it 's hard to tell from previews of the $ 5 million `` The I 's of Texas '' TV campaign . DT JJ NN NN IN NNS VBZ IN DT NNP NNP NNP IN NNP , IN PRP VBZ JJ TO VB IN NNS IN DT $ NN CD `` DT PRP NNS IN NNP '' NN NN .
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Commercials will highlight heart-rending scenes of Texas and chest-swelling , ain't-it-great-to-be-a-Texan music . NNS MD VB JJ NNS IN NNP CC JJ , JJ NN .
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Supporting banks will sign a `` Texas Declaration of Independents . '' VBG NNS MD VB DT `` NNP NNP IN NNPS . ''
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But in introductory material for the campaign , the trade group urges members to `` arm '' for a `` revolution '' against big , out-of-state bank-holding companies . CC IN JJ NN IN DT NN , DT NN NN VBZ NNS TO `` NN '' IN DT `` NN '' IN JJ , JJ JJ NNS .
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A video sent to association members , featuring shots of the Alamo , cowboys , fajitas and a statue of Sam Houston , does n't mince words . DT NN VBD TO NN NNS , VBG NNS IN DT NNP , NNS , NNS CC DT NN IN NNP NNP , VBZ RB VB NNS .
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`` Texans can sniff a phony a mile away , '' the narrator warns outsiders . `` NNPS MD VB DT JJ DT NN RB , '' DT NN VBZ NNS .
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`` So , do n't come and try to con us with a howdy y'all or a cowboy hat . '' `` RB , VBP RB VB CC VB TO VB PRP IN DT UH PRP CC DT NN NN . ''
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Young & Rubicam 's Pact NNP CC NNP POS NNP
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Young & Rubicam , fighting charges that it bribed Jamaican officials to win the Jamaica Tourist Board ad account in 1981 , said it will no longer create the tourist board 's advertising . NNP CC NNP , VBG NNS IN PRP VBD JJ NNS TO VB DT NNP NNP NNP NN NN IN CD , VBD PRP MD RB RB VB DT NN NN POS NN .
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In a statement , Alex Kroll , Young & Rubicam 's chairman , said `` under the present circumstances -LCB- we -RCB- have agreed that it is prudent to discontinue that contract . '' IN DT NN , NNP NNP , NNP CC NNP POS NN , VBD `` IN DT JJ NNS ( PRP ) VBP VBN IN PRP VBZ JJ TO VB DT NN . ''
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Young & Rubicam has pleaded innocent to the charges . NNP CC NNP VBZ VBN JJ TO DT NNS .
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The board would n't comment on its impending search for a new ad agency to handle its estimated $ 5 million to $ 6 million account . DT NN MD RB VB IN PRP$ JJ NN IN DT JJ NN NN TO VB PRP$ VBN $ NN CD TO $ CD CD NN .
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Ad Notes ... . NN NNS : .
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NEW ACCOUNT : JJ NN :
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Sunshine Biscuits Inc. , Woodbridge , N.J. , awarded its estimated $ 5 million account to Waring & LaRosa , New York . NNP NNP NNP , NNP , NNP , VBD PRP$ VBN $ NN CD NN TO NNP CC NNP , NNP NNP .
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The account had been at Della Femina McNamee WCRS , New York . DT NN VBD VBN IN NNP NNP NNP NNP , NNP NNP .
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MEDIA POLICY : NNP NNP :
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MacNamara Clapp & Klein , a small New York shop , is asking magazine ad representatives to tell it when major advertising inserts will run in their publications . NNP NNP CC NNP , DT JJ NNP NNP NN , VBZ VBG NN NN NNS TO VB PRP WRB JJ NN NNS MD VB IN PRP$ NNS .
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It says it may pull its clients ' ads from those magazines . PRP VBZ PRP MD VB PRP$ NNS POS NNS IN DT NNS .
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COKE ADS : NNP NNPS :
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Coca-Cola Co. said it produced a new version of its 1971 `` I 'd like to teach the world to sing '' commercial . NNP NNP VBD PRP VBD DT JJ NN IN PRP$ CD `` PRP MD VB TO VB DT NN TO VB '' JJ .
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The ad is part of Classic Coke 's 1990 ad campaign , with the tag line , `` Ca n't beat the Real Thing . '' DT NN VBZ NN IN NNP NNP POS CD NN NN , IN DT NN NN , `` MD RB VB DT NNP NNP . ''
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Basketball star Michael Jordan and singer Randy Travis have also agreed to appear in ads . NN NN NNP NNP CC NN NNP NNP VBP RB VBN TO VB IN NNS .
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Dell Computer Corp. , squeezed by price pressure from its larger competitors and delays in its new product line , said its per-share earnings for fiscal 1990 will be half its previous forecasts . NNP NNP NNP , VBN IN NN NN IN PRP$ JJR NNS CC NNS IN PRP$ JJ NN NN , VBD PRP$ JJ NNS IN JJ CD MD VB VB PRP$ JJ NNS .
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Although the personal computer maker said it expects revenue to meet or exceed previous projections of $ 385 million for the year ending Jan. 28 , 1990 , earnings are expected to be 25 cents to 35 cents a share , down from previous estimates of 50 cents to 60 cents . IN DT JJ NN NN VBD PRP VBZ NN TO VB CC VB JJ NNS IN $ CD CD IN DT NN VBG NNP CD , CD , NNS VBP VBN TO VB CD NNS TO CD NNS DT NN , RB IN JJ NNS IN CD NNS TO CD NNS .
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Earnings for fiscal 1989 were $ 14.4 million , or 80 cents a share , on sales of $ 257.8 million . NNS IN JJ CD VBD $ CD CD , CC CD NNS DT NN , IN NNS IN $ CD CD .
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Results for the third quarter ending Oct. 31 , are expected to be released the third week of November , according to Michael Dell , chairman and chief executive officer . NNS IN DT JJ NN VBG NNP CD , VBP VBN TO VB VBN DT JJ NN IN NNP , VBG TO NNP NNP , NN CC JJ JJ NN .
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Mr. Dell said he does n't expect a loss in either the third or fourth quarter , but said third-quarter earnings could be as low as four cents a share . NNP NNP VBD PRP VBZ RB VB DT NN IN DT DT JJ CC JJ NN , CC VBD JJ NNS MD VB RB JJ IN CD NNS DT NN .
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In the third quarter last year , Dell had net income of $ 5 million , or 26 cents a share , on sales of $ 75.2 million . IN DT JJ NN JJ NN , NNP VBD JJ NN IN $ NN CD , CC CD NNS DT NN , IN NNS IN $ CD CD .
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Mr. Dell attributed the earnings slide to new product delays , such as a laptop scheduled for September that wo n't be introduced until early November . NNP NNP VBD DT NNS NN TO JJ NN NNS , JJ IN DT NN VBN IN NNP WDT MD RB VB VBN IN JJ NNP .
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Some delays have been caused by a shortage of micoprocessors -- notably Intel Corp. 's newest chip , the 486 -- but others apparently have been caused by Dell 's explosive growth and thinly stretched resources . DT NNS VBP VBN VBN IN DT NN IN NNS : RB NNP NNP POS JJS NN , DT CD : CC NNS RB VBP VBN VBN IN NNP POS JJ NN CC RB VBD NNS .
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`` They 've got a lot of different balls in the air at the same time , '' observes Jim Poyner , a computer securities analyst with Dallas-based William K. Woodruff & Co . `` PRP VBP VBD DT NN IN JJ NNS IN DT NN IN DT JJ NN , '' VBZ NNP NNP , DT NN NNS NN IN JJ NNP NNP NNP CC NNP .
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Mr. Dell , meanwhile , concedes the company was `` definitely too optimistic '' in its expectations . NNP NNP , RB , VBZ DT NN VBD `` RB RB JJ '' IN PRP$ NNS .
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Product delays , however , have left Dell buffeted by harsher competition in its bread-and-butter line of desktop computers , as powerhouse competitors Compaq Computer Corp. and International Business Machines Corp. price their PCs more aggressively . NN NNS , RB , VBP VBN NNP VBN IN JJR NN IN PRP$ JJ NN IN NN NNS , IN NN NNS NNP NNP NNP CC NNP NNP NNP NNP VB PRP$ NNS RBR RB .
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The result has been thinner margins , which have been further eroded by an ambitious research and development effort and rapid overseas expansion . DT NN VBZ VBN JJR NNS , WDT VBP VBN RB VBN IN DT JJ NN CC NN NN CC JJ JJ NN .
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Analyst James Weil of the Soundview Financial Group believes Dell 's response has been to place increased emphasis on product quality , `` in an effort to rise above some of that price pressure . '' NNP NNP NNP IN DT NNP NNP NNP VBZ NNP POS NN VBZ VBN TO VB VBN NN IN NN NN , `` IN DT NN TO VB IN DT IN DT NN NN . ''
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But that has been the key to Compaq 's success , he adds , whereas Dell carved out its market niche as a direct seller of low-cost but reliable computers -- and it might be too late in the game for a shift in strategy . CC DT VBZ VBN DT JJ TO NNP POS NN , PRP VBZ , IN NNP VBD IN PRP$ NN NN IN DT JJ NN IN JJ CC JJ NNS : CC PRP MD VB RB RB IN DT NN IN DT NN IN NN .
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In national over-the-counter trading , Dell closed yesterday at $ 6 a share , down 87.5 cents . IN JJ JJ NN , NNP VBD NN IN $ CD DT NN , RB CD NNS .
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TransAtlantic Holdings PLC , a British-based , South African-controlled financial services investment group , and France 's Societe Centrale Union des Assurances de Paris reached an accord effectively reducing chances of an unfriendly takeover for Sun Life Assurance Society PLC . NNP NNP NNP , DT JJ , JJ JJ JJ NNS NN NN , CC NNP POS NNP NNP NNP NNP NNP FW NNP VBD DT NN RB VBG NNS IN DT JJ NN IN NNP NNP NNP NNP NNP .
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In a joint statement , the two companies , whose combined holdings equal 52.7 % of Sun Life 's ordinary shares , said their agreement is aimed at reducing `` the uncertainty and instability for Sun Life that has resulted from two major shareholders owning '' a controlling interest in the company . IN DT JJ NN , DT CD NNS , WP$ VBN NNS JJ CD NN IN NNP NNP POS JJ NNS , VBD PRP$ NN VBZ VBN IN VBG `` DT NN CC NN IN NNP NNP WDT VBZ VBN IN CD JJ NNS VBG '' DT VBG NN IN DT NN .
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TransAtlantic , whose Transol Investments Ltd. unit owns the largest minority stake in Sun Life , has agreed not to make a takeover bid for the British life insurer without the prior consent of the French company , known as UAP . NNP , WP$ NNP NNP NNP NN VBZ DT JJS NN NN IN NNP NNP , VBZ VBN RB TO VB DT NN NN IN DT JJ NN NN IN DT JJ NN IN DT JJ NN , VBN IN NNP .
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In return , the agreement would force UAP to buy TransAtlantic 's 29.8 % holding in Sun Life or sell its 22.9 % stake to TransAtlantic at a price set by Transatlantic . IN NN , DT NN MD VB NNP TO VB NNP POS CD NN VBG IN NNP NNP CC VB PRP$ CD NN NN TO NNP IN DT NN VBN IN NNP .
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Pride Petroleum Services Inc. said it agreed to buy well-servicing assets of two companies and expects to report higher third-quarter revenue and earnings . NNP NNP NNP NNP VBD PRP VBD TO VB JJ NNS IN CD NNS CC VBZ TO VB JJR JJ NN CC NNS .
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In the year-earlier quarter , the well-servicing contractor had net income of $ 319,000 , or 3 cents a share , on revenue of about $ 15 million . IN DT JJ NN , DT JJ NN VBD JJ NN IN $ CD , CC CD NNS DT NN , IN NN IN RB $ CD CD .
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Results for the earlier quarter included a $ 100,000 restructuring charge . NNS IN DT JJR NN VBD DT $ CD NN NN .
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Separately , the Houston concern said it signed letters of intent for the cash and stock purchases of a total of 29 well-servicing rigs from two concerns located in New Mexico and California . RB , DT NNP NN VBD PRP VBD NNS IN NN IN DT NN CC NN NNS IN DT NN IN CD JJ NNS IN CD NNS VBN IN NNP NNP CC NNP .
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It did n't disclose specifics but said it expects to complete the purchases by Nov. 1 . PRP VBD RB VB NNS CC VBD PRP VBZ TO VB DT NNS IN NNP CD .
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Schlumberger Ltd. , New York , reported third-quarter net income edged up as growth in its oil-field services sector offset a decline in interest income . NNP NNP , NNP NNP , VBD JJ JJ NN VBD IN IN NN IN PRP$ NN NNS NN VB DT NN IN NN NN .
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The lower interest income occurred because Schlumberger spent $ 1.2 billion buying back its stock last year . DT JJR NN NN VBD IN NNP VBD $ CD CD VBG RB PRP$ NN JJ NN .
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Net for the oil-field services and electronic measurements and systems concern rose to $ 114.2 million , or 48 cents a share , from $ 112.2 million , or 42 cents a share , a year earlier . JJ IN DT NN NNS CC JJ NNS CC NNS VBP VBD TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Per-share earnings advanced 14 % because of the buy-back . JJ NNS VBD CD NN IN IN DT NN .
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Revenue declined 6.3 % to $ 1.11 billion from $ 1.18 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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But excluding businesses acquired or sold , revenue was flat at about $ 1.24 billion . CC VBG NNS VBN CC VBN , NN VBD JJ IN RB $ CD CD .
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Nine-month net fell 9.5 % to $ 323.4 million , or $ 1.36 a share , from $ 357.2 million , or $ 1.32 a share , a year earlier . JJ NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Revenue dropped 5.4 % to $ 3.48 billion from $ 3.68 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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This year 's nine-month results include gains of $ 13 million , or five cents a share , from the sale of Schlumberger 's defense systems business , and $ 22 million , or nine cents a share , from an award by the IranU.S . Claims Tribunal . DT NN POS JJ NNS VBP NNS IN $ CD CD , CC CD NNS DT NN , IN DT NN IN NNP POS NN NNS NN , CC $ CD CD , CC CD NNS DT NN , IN DT NN IN DT NNP . NNP NNP .
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The year-earlier nine months include a gain of $ 35 million , or 13 cents a share , from sale of the company 's Electricity Control & Transformers division . DT JJ CD NNS VBP DT NN IN $ CD CD , CC CD NNS DT NN , IN NN IN DT NN POS NNP NNP CC NNPS NN .
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NEW ENGLAND CRITICAL CARE Inc. offered $ 35 million in convertible subordinated debentures through Morgan Stanley & Co. and Prudential-Bache Capital Funding . NNP NNP NNP NNP NNP VBD $ CD CD IN JJ VBN NNS IN NNP NNP CC NNP CC NNP NNP NNP .
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The debentures , due in 2014 , have a coupon of 7 3\/4 % , payable semiannually . DT NNS , JJ IN CD , VBP DT NN IN CD CD NN , JJ RB .
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The debentures may be converted into common stock of the Westborough , Mass. , home health care concern at $ 52.50 a share . DT NNS MD VB VBN IN JJ NN IN DT NNP , NNP , NN NN NN NN IN $ CD DT NN .
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Proceeds will be used for working capital and general corporate purposes , including expansion of the company 's operations . NNS MD VB VBN IN VBG NN CC JJ JJ NNS , VBG NN IN DT NN POS NNS .
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The French building group Dumez S.A. said profit jumped 70 % in the first half of 1989 , partly on the strength of nonrecurring gains from a share issue by its Canadian unit . DT JJ NN NN NNP NNP VBD NN VBD CD NN IN DT JJ NN IN CD , RB IN DT NN IN VBG NNS IN DT NN NN IN PRP$ JJ NN .
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Dumez said group profit after payments to minority interests rose to 252 million francs -LRB- $ 40.1 million -RRB- from 148 million a year earlier . NNP VBD NN NN IN NNS TO NN NNS VBD TO CD CD NNS ( $ CD CD ) IN CD CD DT NN RBR .
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Revenue rose 40 % to 13.32 billion francs from 9.53 billion . NN VBD CD NN TO CD CD NNS IN CD CD .
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The group noted that 75 million francs of the advance reflected a one-time gain from the June offering by its United Westburne unit in Canada . DT NN VBD IN CD CD NNS IN DT NN VBD DT JJ NN IN DT NNP NN IN PRP$ NNP NNP NN IN NNP .
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It did n't say if its year-earlier results were influenced significantly by nonrecurring elements . PRP VBD RB VB IN PRP$ JJ NNS VBD VBN RB IN VBG NNS .
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For all of 1988 , Dumez had group profit of 452 million francs after payment to minority interests . IN DT IN CD , NNP VBD NN NN IN CD CD NNS IN NN TO NN NNS .
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Revenue was 21.98 billion francs . NN VBD CD CD NNS .
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The group has n't forecast full-year earnings for 1989 , although it said that its first-half results are n't a good indication because of one-time elements and the seasonal nature of its operations . DT NN VBZ RB VB JJ NNS IN CD , IN PRP VBD IN PRP$ JJ NNS VBP RB DT JJ NN IN IN JJ NNS CC DT JJ NN IN PRP$ NNS .
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Tuesday 's earthquake will depress local real-estate values in the short term and force companies to reconsider expanding in or relocating to the Bay Area and California , real-estate and relocation specialists said . NNP POS NN MD VB JJ NN NNS IN DT JJ NN CC NN NNS TO VB VBG IN CC VBG TO DT NNP NNP CC NNP , NN CC NN NNS VBD .
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Few specialists said they expect the quake to have much of an effect on most California property values . JJ NNS VBD PRP VBP DT NN TO VB NN IN DT NN IN RBS NNP NN NNS .
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But real-estate experts and brokers said the quake undoubtedly will drag down prices in neighborhoods built on less stable ground , especially in the Bay Area . CC NN NNS CC NNS VBD DT NN RB MD VB RB VBZ IN NNS VBN IN RBR JJ NN , RB IN DT NNP NNP .
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`` California prices were already coming down . `` NNP NNS VBD RB VBG RB .
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This is n't going to help , '' said Kenneth T. Rosen , chairman of the Center for Real Estate and Urban Economics at the University of California at Berkeley . DT VBZ RB VBG TO VB , '' VBD NNP NNP NNP , NN IN DT NNP IN NNP NNP CC NNP NNP IN DT NNP IN NNP IN NNP .
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State housing prices , at a median $ 201,028 , have declined in recent months because of potential buyers ' inability to afford homes . NN NN NNS , IN DT JJ $ CD , VBP VBN IN JJ NNS IN IN JJ NNS POS NN TO VB NNS .
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Mr. Rosen , among others , suggested that the quake , the strongest since the 1906 temblor that struck San Francisco , will in the short term create a two-tier price system for quake-prone communities , with dwellings built on sturdy ground likely to demand higher prices . NNP NNP , IN NNS , VBD IN DT NN , DT JJS IN DT CD NN WDT VBD NNP NNP , MD IN DT JJ NN VB DT JJ NN NN IN JJ NNS , IN NNS VBN IN JJ NN JJ TO VB JJR NNS .
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One San Francisco neighborhood likely to test Mr. Rosen 's theory soon is the city 's fashionable Marina district , which boasts some of the highest home prices in the state . CD NNP NNP NN JJ TO VB NNP NNP POS NN RB VBZ DT NN POS JJ NNP NN , WDT VBZ DT IN DT JJS NN NNS IN DT NN .
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The district , built on landfill , suffered heavy quake damage , including collapsed buildings . DT NN , VBN IN NN , VBD JJ NN NN , VBG VBN NNS .
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Yesterday , the city demolished two dwellings in the district because of severe structural damage and said as many as 19 of the district 's 350 dwellings might have to be razed . NN , DT NN VBN CD NNS IN DT NN IN IN JJ JJ NN CC VBD RB JJ IN CD IN DT NN POS CD NNS MD VB TO VB VBN .
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Brokers agreed with the two-tier price theory . NNS VBD IN DT JJ NN NN .
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`` My gut feeling is that the Marina properties will be affected , '' said Grace Perkins , senior vice president at Grubb & Ellis Residential Brokerage Inc . `` PRP$ NN NN VBZ IN DT NNP NNS MD VB VBN , '' VBD NNP NNP , JJ NN NN IN NNP CC NNP NNP NNP NNP .
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Neither she nor other real-estate executives and brokers could project how much less Marina properties might bring , but she said the two-tier price structure would affect prices `` for a while . '' CC PRP CC JJ NN NNS CC NNS MD VB WRB RB JJR NNP NNS MD VB , CC PRP VBD DT JJ NN NN MD VB NNS `` IN DT NN . ''
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Mr. Rosen said the quake will revive consumer interest in a little-publicized 1972 state law that requires brokers to disclose to potential buyers how close a property sits to a fault line . NNP NNP VBD DT NN MD VB NN NN IN DT JJ CD NN NN WDT VBZ NNS TO VB TO JJ NNS WRB VB DT NN VBZ TO DT NN NN .
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Because of the size of the California market , few relocation specialists expect a widespread corporate flight in the quake 's aftermath . IN IN DT NN IN DT NNP NN , JJ NN NNS VBP DT JJ JJ NN IN DT NN POS NN .
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But they said the quake will force some companies to relocate or expand part or all of their operations outside the state . CC PRP VBD DT NN MD VB DT NNS TO VB CC VB NN CC DT IN PRP$ NNS IN DT NN .
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`` What you 're going to get is ` We do n't want to put all of our eggs in one basket ' theory , '' said James H. Renzas , president of Location Management Services Inc. , a Palo Alto , Calif. , relocation concern . `` WP PRP VBP VBG TO VB VBZ `` PRP VBP RB VB TO VB DT IN PRP$ NNS IN CD NN POS NN , '' VBD NNP NNP NNP , NN IN NNP NNP NNP NNP , DT NNP NNP , NNP , NN NN .
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Mr. Renzas , among others , said the quake will prod companies in certain industries , like semiconductors , computers and aerospace , to consider moving operations that involve particularly sensitive machinery to locations outside California . NNP NNP , IN NNS , VBD DT NN MD VB NNS IN JJ NNS , IN NNS , NNS CC NN , TO VB VBG NNS WDT VBP RB JJ NN TO NNS IN NNP .
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Because of the quake threat , `` some firms have evaluated what the cost is to shore up their buildings and compared it with the cost of building it elswehere , '' he said . IN IN DT NN NN , `` DT NNS VBP VBN WP DT NN VBZ TO VB IN PRP$ NNS CC VBN PRP IN DT NN IN NN PRP NN , '' PRP VBD .
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One Southern California aerospace firm , for example , two months ago asked Location Management to compare the costs of reinforcing its current building against earthquakes with the cost of building a new structure elsewhere . CD NNP NNP NN NN , IN NN , CD NNS RB VBD NNP NNP TO VB DT NNS IN VBG PRP$ JJ NN IN NNS IN DT NN IN VBG DT JJ NN RB .
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A new dwelling would cost $ 21 million , Location Management found , compared with $ 22 million to make the present building earthquake-proof . DT JJ NN MD VB $ CD CD , NNP NNP VBD , VBN IN $ CD CD TO VB DT JJ NN JJ .
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The company , Mr. Renzas said , has n't yet determined what to do . DT NN , NNP NNP VBD , VBZ RB RB VBN WP TO VB .
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NATIONWIDE HEALTH PROPERTIES , Pasadena , Calif. , said it would n't pay its fourth-quarter dividend , despite a 44 % increase in third-quarter earnings , to $ 3.5 million , or 42 cents a share . NNP NN NNPS , NNP , NNP , VBD PRP MD RB VB PRP$ JJ NN , IN DT CD NN NN IN JJ NNS , TO $ CD CD , CC CD NNS DT NN .
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Net income included a gain of $ 708,000 on asset sales , the real estate investment trust said . JJ NN VBD DT NN IN $ CD IN NN NNS , DT JJ NN NN NN VBD .
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A year earlier , Nationwide Health earned $ 2.4 million , or 29 cents a share . DT NN RBR , NNP NNP VBD $ CD CD , CC CD NNS DT NN .
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Revenue rose 3 % to $ 9 million from $ 8.8 million . NN VBD CD NN TO $ CD CD IN $ CD CD .
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Nationwide Health said that although it has the cash to cover the 25-cent-a-share dividend , its banks have denied the company 's request to pay it because the trust has n't met certain terms . NNP NNP VBD IN IN PRP VBZ DT NN TO VB DT JJ NN , PRP$ NNS VBP VBN DT NN POS NN TO VB PRP IN DT NN VBZ RB VBN JJ NNS .
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Nationwide Health said it has `` numerous financing activities '' under way to remedy the problem and will make up the dividend payment later if possible . NNP NNP VBD PRP VBZ `` JJ NN NNS '' IN NN TO VB DT NN CC MD VB IN DT NN NN RB IN JJ .
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Aussedat Rey S.A. , a French paper producer , said it concluded an agreement with Japan 's Fuji Photo Film Co. that will allow Aussedat Rey to manufacture and sell thermal paper using Fuji technology . NNP NNP NNP , DT JJ NN NN , VBD PRP VBD DT NN IN NNP POS NNP NNP NNP NNP WDT MD VB NNP NNP TO VB CC VB JJ NN VBG NNP NN .
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Aussedat Rey is a leading French maker of copying and electronic printing paper . NNP NNP VBZ DT VBG JJ NN IN NN CC JJ NN NN .
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Thermal paper is used in facsimile machines . JJ NN VBZ VBN IN NN NNS .
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Terms of the agreement were n't disclosed . NNS IN DT NN VBD RB VBN .
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Aussedat Rey 's move follows similar technology-licensing agreements between Japanese producers of thermal paper and European paper groups . NNP NNP POS NN VBZ JJ JJ NNS IN JJ NNS IN JJ NN CC JJ NN NNS .
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W.R. Grace & Co. , New York , said its earnings for the third quarter nearly doubled as a result of a $ 114.4 million pre-tax gain from restructuring its energy operations and other adjustments . NNP NNP CC NNP , NNP NNP , VBD PRP$ NNS IN DT JJ NN RB VBD IN DT NN IN DT $ CD CD JJ NN IN VBG PRP$ NN NNS CC JJ NNS .
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Net income rose to $ 97.9 million , or $ 1.15 a share , from $ 50.5 million , or 60 cents a share , a year earlier . JJ NN VBD TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Sales increased 7 % to $ 1.49 billion from $ 1.39 billion . NNS VBN CD NN TO $ CD CD IN $ CD CD .
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The gain resulted from the sale of Grace Equipment Co. , the initial public offering of a one-sixth interest in Grace Energy Corp. and an adjustment in the carrying value of certain natural resource assets not part of Grace Energy . DT NN VBD IN DT NN IN NNP NNP NNP , DT JJ JJ NN IN DT JJ NN IN NNP NNP NNP CC DT NN IN DT VBG NN IN JJ JJ NN NNS RB NN IN NNP NNP .
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The international specialty chemical company 's earnings were hurt by an accrual for stock-appreciation rights that reflected a 19 % increase in the stock price , and higher interest expenses . DT JJ NN NN NN POS NNS VBD VBN IN DT NN IN NN NNS WDT VBD DT CD NN NN IN DT NN NN , CC JJR NN NNS .
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Anglo American Corp. of South Africa Ltd. said the third-quarter combined profit of its six gold mines dropped 8.5 % from the previous quarter . NNP NNP NNP IN NNP NNP NNP VBD DT JJ VBN NN IN PRP$ CD NN NNS VBD CD NN IN DT JJ NN .
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Total net income fell to 471.6 million rand -LRB- $ 178.0 million -RRB- from 515.4 million rand in the June quarter . JJ JJ NN VBD TO CD CD NN ( $ CD CD ) IN CD CD NN IN DT NNP NN .
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Total gold production by all six mines rose 4 % to 63,971 kilograms from 61,493 kilograms in the previous quarter . JJ NN NN IN DT CD NNS VBD CD NN TO CD NNS IN CD NNS IN DT JJ NN .
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Doman Industries Ltd. said it increased its stake in Western Forest Products Ltd. to 56 % from 22 % , through a two-step transaction valued at 137 million Canadian dollars -LRB- $ US116.7 million -RRB- . NNP NNP NNP VBD PRP VBD PRP$ NN IN NNP NNP NNP NNP TO CD NN IN CD NN , IN DT JJ NN VBN IN CD CD JJ NNS ( $ CD CD ) .
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Doman is based in Duncan , British Columbia . NNP VBZ VBN IN NNP , NNP NNP .
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The company , founded and controlled by Harbanse Doman , its chairman and president , said the purchase would make it Canada 's 10th largest forest products company . DT NN , VBN CC VBN IN NNP NNP , PRP$ NN CC NN , VBD DT NN MD VB PRP NNP POS JJ JJS NN NNS NN .
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Under terms of the transaction , which was proposed in June , Doman said it acquired International Forest Products Ltd. 's 22 % stake in Western Forest , and Western Forest , in a related transaction , bought back a 22 % interest in the company from Fletcher Challenge Canada Ltd . IN NNS IN DT NN , WDT VBD VBN IN NNP , NNP VBD PRP VBD NNP NNP NNP NNP POS CD NN NN IN NNP NNP , CC NNP NNP , IN DT VBN NN , VBD RB DT CD NN NN IN DT NN IN NNP NNP NNP NNP .
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The Fletcher Challenge Canada stake was then canceled , Doman said , raising Doman 's interest in Western Forest to 56 % . DT NNP NNP NNP NN VBD RB VBN , NNP VBD , VBG NNP POS NN IN NNP NNP TO CD NN .
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Doman said it was also granted an option to acquire the remaining 44 % interest in Western Forest , which is currently held by two Canadian banks . NNP VBD PRP VBD RB VBN DT NN TO VB DT VBG CD NN NN IN NNP NNP , WDT VBZ RB VBN IN CD JJ NNS .
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International Forest , Western Forest , and Fletcher Challenge Canada are Vancouver-based forest products concerns . NNP NNP , NNP NNP , CC NNP NNP NNP VBP JJ NN NNS NNS .
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The Canadian government introduced in the House of Commons legislation to extend federal regulatory authority over provincial government-owned telephone utilities in Alberta , Saskatchewan and Manitoba . DT JJ NN VBN IN DT NNP IN NNP NN TO VB JJ JJ NN IN JJ JJ NN NNS IN NNP , NNP CC NNP .
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The legislation would open the way for more telephone services and more competition in the telephone business in the three provinces , federal officials said . DT NN MD VB DT NN IN JJR NN NNS CC JJR NN IN DT NN NN IN DT CD NNS , JJ NNS VBD .
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The federal government initiative follows a recent Canadian Supreme Court decision that held that the major telephone companies in Alberta , Saskatchewan and Manitoba and in the Atlantic coast provinces were interprovincial undertakings and subject to federal legislative authority . DT JJ NN NN VBZ DT JJ NNP NNP NNP NN WDT VBD IN DT JJ NN NNS IN NNP , NNP CC NNP CC IN DT NNP NN NNS VBD JJ NNS CC NN TO JJ JJ NN .
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Prior to the ruling the federal government had regulated only the telephone companies in Quebec , Ontario , British Columbia and the Northwest Territories . RB TO DT VBG DT JJ NN VBD VBN RB DT NN NNS IN NNP , NNP , NNP NNP CC DT NNP NNP .
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The governments of Alberta , Saskatchewan and Manitoba have strongly opposed federal regulation of their telephone companies . DT NNS IN NNP , NNP CC NNP VBP RB VBN JJ NN IN PRP$ NN NNS .
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The extension of federal regulatory authority over telephone utilities in the Atlantic provinces has n't required special legislation because they are investor-owned . DT NN IN JJ JJ NN IN NN NNS IN DT NNP NNS VBZ RB VBN JJ NN IN PRP VBP JJ .
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Amdura Corp. said its bank group , led by Chicago-based Continental Bank , agreed to extend its $ 40 million bridge loan until March 31 , 1990 , and gave it a new $ 30 million credit line . NNP NNP VBD PRP$ NN NN , VBN IN JJ NNP NNP , VBD TO VB PRP$ $ CD CD NN NN IN NNP CD , CD , CC VBD PRP DT JJ $ CD CD NN NN .
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Under terms of the loan agreement , Amdura said it will omit the next quarterly dividends on its Series A , B , C and D preferred shares , which are due Nov. 15 . IN NNS IN DT NN NN , NNP VBD PRP MD VB DT JJ JJ NNS IN PRP$ NNP DT , NNP , NN CC NN JJ NNS , WDT VBP JJ NNP CD .
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Since the preferred stock is cumulative , Amdura said it will pay all omitted dividends , which range from $ 1.19 to $ 4.88 a share , when debt-reduction requirements have been met . IN DT JJ NN VBZ JJ , NNP VBD PRP MD VB DT VBN NNS , WDT VBP IN $ CD TO $ CD DT NN , WRB NN NNS VBP VBN VBN .
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Amdura 's bridge loan , part of the financing for Amdura 's acquisition of CoastAmerica in December 1988 , was to come due next Friday . NNP POS NN NN , NN IN DT NN IN NNP POS NN IN NNP IN NNP CD , VBD TO VB JJ JJ NNP .
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The company 's new management , which took control of Amdura 's board after a consent solicitation last month , wanted to extend the loan while it tries to sell two units . DT NN POS JJ NN , WDT VBD NN IN NNP POS NN IN DT NN NN JJ NN , VBD TO VB DT NN IN PRP VBZ TO VB CD NNS .
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Proceeds from those sales will be used to reduce debt . NNS IN DT NNS MD VB VBN TO VB NN .
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Amdura , a Denver hardware and automotive distributor , said the new credit agreement will provide the working capital needed to meet ongoing requirements . NNP , DT NNP NN CC JJ NN , VBD DT JJ NN NN MD VB DT VBG NN VBN TO VB JJ NNS .
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Three savings-and-loan institutions in Kansas and Texas were added to the Resolution Trust Corp. 's conservatorship program after federal regulators declared the thrifts insolvent and named the RTC their receiver . CD JJ NNS IN NNP CC NNP VBD VBN TO DT NNP NNP NNP POS NN NN IN JJ NNS VBD DT NNS JJ CC VBD DT NNP PRP$ NN .
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The deposits , assets and certain liabilities of the three thrifts were transferred to newly chartered federal mutual institutions . DT NNS , NNS CC JJ NNS IN DT CD NNS VBD VBN TO RB JJ JJ JJ NNS .
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The three institutions are : Mid Kansas Federal Savings & Loan Association , Wichita , which had $ 830.5 million in assets ; Valley Federal Savings & Loan Association of McAllen , McAllen , Texas , with $ 582.6 million in assets ; and Surety Savings Association , El Paso , with $ 309.3 million in assets . DT CD NNS VBP : NNP NNP NNP NNP CC NNP NNP , NNP , WDT VBD $ CD CD IN NNS : NNP NNP NNP CC NNP NNP IN NNP , NNP , NNP , IN $ CD CD IN NNS : CC NNP NNP NNP , NNP NNP , IN $ CD CD IN NNS .
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The three insolvent thrifts will maintain normal business hours and operations under RTC-appointed managing agents , while the RTC tries to negotiate permanent resolutions . DT CD JJ NNS MD VB JJ NN NNS CC NNS IN JJ NN NNS , IN DT NNP VBZ TO VB JJ NNS .
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Separately , Century Bank , Phoenix , Ariz. , was closed by Arizona banking officials . RB , NNP NNP , NNP , NNP , VBD VBN IN NNP NN NNS .
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The Federal Deposit Insurance Corp. approved the assumption of Century 's deposits and fully secured liabilities by a newly chartered subsidiary of Valley Capital Corp. , Las Vegas . DT NNP NNP NNP NNP VBD DT NN IN NNP POS NNS CC RB VBN NNS IN DT RB JJ NN IN NNP NNP NNP , NNP NNP .
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The new institution is also called Century Bank , and the failed bank 's five offices will reopen today . DT JJ NN VBZ RB VBN NNP NNP , CC DT VBN NN POS CD NNS MD VB NN .
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The failed bank had assets of about $ 129.6 million . DT VBN NN VBD NNS IN RB $ CD CD .
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The newly chartered bank will assume about $ 125.7 million in 10,300 deposit accounts and pay the FDIC a purchase premium of $ 2.9 million . DT RB JJ NN MD VB RB $ CD CD IN CD NN NNS CC VB DT NNP DT NN NN IN $ CD CD .
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It also will buy about $ 91.7 million of assets , and the FDIC will advance $ 31.8 million to the assuming bank . PRP RB MD VB RB $ CD CD IN NNS , CC DT NNP MD VB $ CD CD TO DT VBG NN .
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Lonrho PLC of Britain is to come to the rescue of the French distribution group Societe Commerciale de l'Ouest Africaine in an operation that has been engineered with the Paribas financial group , Societe Commerciale 's main shareholder . NNP NNP IN NNP VBZ TO VB TO DT NN IN DT JJ NN NN NNP NNP FW NNP NNP IN DT NN WDT VBZ VBN VBN IN DT NNP JJ NN , NNP NNP POS JJ NN .
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The announcement came as Societe Commerciale , a trading company with activities in more than 40 countries , reported a loss of 320.5 million francs -LRB- $ 51 million -RRB- for the first six months of this year , partly because of provisions on future losses . DT NN VBD IN NNP NNP , DT NN NN IN NNS IN JJR IN CD NNS , VBD DT NN IN CD CD NNS ( $ CD CD ) IN DT JJ CD NNS IN DT NN , RB IN IN NNS IN NN NNS .
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The rescue operation will consist of a capital boost for Societe Commerciale of one billion francs through issues of new shares and convertible bonds . DT NN NN MD VB IN DT NN NN IN NNP NNP IN CD CD NNS IN NNS IN JJ NNS CC JJ NNS .
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Cie . Financiere de Paribas said it intends to transfer its 30 % shareholding in Societe Commerciale to a new company which will be jointly owned with Lonrho . NNP . NNP FW NNP VBD PRP VBZ TO VB PRP$ CD NN NN IN NNP NNP TO DT JJ NN WDT MD VB RB VBN IN NNP .
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This will give Paribas and Lonrho joint control of Societe Commerciale . DT MD VB NNP CC NNP JJ NN IN NNP NNP .
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Paribas said Lonrho will participate in the forthcoming capital boost for Societe Commerciale . NNP VBD NNP MD VB IN DT JJ NN NN IN NNP NNP .
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International Business Machines Corp. and MCA Inc. said they agreed to sell their Discovision Associates joint venture to U.S. units of Pioneer Electronic Corp. for $ 200 million . NNP NNP NNP NNP CC NNP NNP VBD PRP VBD TO VB PRP$ NNP NNPS JJ NN TO NNP NNS IN NNP NNP NNP IN $ CD CD .
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The joint venture licenses a portfolio of about 1,400 patents and patent applications relating to optical-disk recording technology . DT JJ NN VBZ DT NN IN IN CD NNS CC NN NNS VBG TO JJ NN NN .
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IBM and MCA formed Discovision in 1979 to make laser-read optical products . NNP CC NNP VBD NNP IN CD TO VB JJ JJ NNS .
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But the partners did n't believe the market for the systems was developing as rapidly as they had hoped . CC DT NNS VBD RB VB DT NN IN DT NNS VBD VBG RB RB IN PRP VBD VBN .
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After reportedly investing $ 100 million in the business , Discovision ceased manufacturing operations in 1982 and sold many of its assets to Tokyo-based Pioneer , among others . IN RB VBG $ CD CD IN DT NN , NNP VBD NN NNS IN CD CC VBN NN IN PRP$ NNS TO NNP NNP , IN NNS .
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Discovision now has world-wide license agreements with major manufacturers covering CD audio disks , audio disk players , videodisks and videodisk players . NNP RB VBZ JJ NN NNS IN JJ NNS VBG NNP JJ NNS , JJ NN NNS , NNS CC NN NNS .
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It also licenses optically based data storage and retrieval devices . PRP RB VBZ RB VBN NNS NN CC NN NNS .
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James N. Fiedler , president of Discovision and a vice president of MCA , said that IBM and MCA had n't planned to sell the joint venture , which is now profitable , but that Pioneer approached Discovision earlier this year . NNP NNP NNP , NN IN NNP CC DT NN NN IN NNP , VBD IN NNP CC NNP VBD RB VBN TO VB DT JJ NN , WDT VBZ RB JJ , CC IN NNP VBD NNP RBR DT NN .
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He said it is n't certain whether Discovision 's current management will remain when Pioneer buys the company . PRP VBD PRP VBZ RB JJ IN NNP POS JJ NN MD VB WRB NNP VBZ DT NN .
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The agreement is contingent on certain government approvals and should be completed later this year . DT NN VBZ JJ IN JJ NN NNS CC MD VB VBN RB DT NN .
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Tokyo stocks closed higher in moderately active but directionless trading as the recent anxiety in world stock markets continued to fade . NNP NNS VBD JJR IN RB JJ CC JJ NN IN DT JJ NN IN NN NN NNS VBD TO VB .
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London shares also closed firmer in thin trading driven largely by technical factors and support from a new Wall Street rally . JJ NNS RB VBD JJR IN JJ NN VBN RB IN JJ NNS CC NN IN DT JJ NNP NNP NN .
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Prices also rose on almost every other major exchange in Europe , Asia and the Pacific . NNS RB VBD IN RB DT JJ JJ NN IN NNP , NNP CC DT NNP .
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Tokyo 's Nikkei index of 225 issues , which gained 111.48 points Wednesday , climbed 266.66 , or 0.76 % , to 35374.22 . NNP POS NNP NN IN CD NNS , WDT VBD CD NNS NNP , VBD CD , CC CD NN , TO CD .
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Volume on the first section was estimated at 800 million shares , compared with 841 million Wednesday . NN IN DT JJ NN VBD VBN IN CD CD NNS , VBN IN CD CD NNP .
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Winners outnumbered losers 645-293 , with 186 issues unchanged . NNS VBD NNS CD , IN CD NNS JJ .
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In early trading in Tokyo Friday , the Nikkei index rose 170.65 points , to 35544.87 . IN JJ NN IN NNP NNP , DT NNP NN VBD CD NNS , TO CD .
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On Thursday , the Tokyo Stock Price Index of all issues listed in the first section , which gained 0.24 point Wednesday , was up 22.78 , or 0.86 % , at 2665.66 . IN NNP , DT NNP NNP NNP NNP IN DT NNS VBN IN DT JJ NN , WDT VBD CD NN NNP , VBD IN CD , CC CD NN , IN CD .
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The morning session was dominated by individuals and dealers , but some institutions participated in the afternoon , encouraged by the market 's firmness , traders said . DT NN NN VBD VBN IN NNS CC NNS , CC DT NNS VBD IN DT NN , VBN IN DT NN POS NN , NNS VBD .
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Sentiment was helped by the small gain made by New York stocks Wednesday despite anxiety over possible effects of the major earthquake that struck northern California Tuesday . NN VBD VBN IN DT JJ NN VBN IN NNP NNP NNS NNP IN NN IN JJ NNS IN DT JJ NN WDT VBD JJ NNP NNP .
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Having survived both last Friday 's 6.9 % Wall Street plunge and the immediate aftermath of the San Francisco Bay area earthquake , Tokyo market participants expressed relief that trading had returned to normal . VBG VBN DT JJ NNP POS CD NN NNP NNP NN CC DT JJ NN IN DT NNP NNP NNP NN NN , NNP NN NNS VBD NN DT NN VBD VBN TO JJ .
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Hiroyuki Murai , general manager of the stock trading division at Nikko Securities , said that after looking at the reasons for Friday 's Wall Street plunge , participants realized that the Tokyo and New York markets have different economic fundamentals . NNP NNP , JJ NN IN DT NN NN NN IN NNP NNP , VBD IN IN VBG IN DT NNS IN NNP POS NNP NNP NN , NNS VBD IN DT NNP CC NNP NNP NNS VBP JJ JJ NNS .
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This conclusion , he said , restored the credibility of Tokyo stocks . DT NN , PRP VBD , VBD DT NN IN NNP NNS .
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Yoshiaki Mitsuoka , head of the investment information department at Daiwa Investment Trust & Management , said that if New York stocks just fluctuate in or near their current range , the Tokyo market will remain firm with a moderately upward trend for the rest of the year . NNP NNP , NN IN DT NN NN NN IN NNP NNP NNP CC NNP , VBD IN IN NNP NNP NNS RB VBP IN CC IN PRP$ JJ NN , DT NNP NN MD VB NN IN DT RB JJ NN IN DT NN IN DT NN .
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But traders said the market lacks a base on which to set long-term buying strategy , as the future direction of U.S. interest rates remains unclear . CC NNS VBD DT NN VBZ DT NN IN WDT TO VB JJ NN NN , IN DT NN NN IN NNP NN NNS VBZ JJ .
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`` Investor interest switches back and forth ceaselessly as they are unable to shift their weight to one side for sure , '' Mr. Mitsuoka of Daiwa Investment Trust said . `` NNP NN NNS RB CC RB RB IN PRP VBP JJ TO VB PRP$ NN TO CD NN IN JJ , '' NNP NNP IN NNP NNP NNP VBD .
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Many of Wednesday 's winners were losers yesterday as investors quickly took profits and rotated their buying to other issues , traders said . JJ IN NNP POS NNS VBD NNS NN IN NNS RB VBD NNS CC VBN PRP$ NN TO JJ NNS , NNS VBD .
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Pharmaceuticals made across-the-board advances . NNP VBD JJ NNS .
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Fujisawa Pharmaceutical gained 130 to 1,930 yen -LRB- $ 13.64 -RRB- a share , Mochida Pharmaceutical was up 150 at 4,170 , and Eisai advanced 60 to 2,360 . NNP NNP VBD CD TO CD NN ( $ CD ) DT NN , NNP NNP VBD IN CD IN CD , CC NNP VBD CD TO CD .
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Housing issues were boosted by a report that Daiwa House expects to post 43 % higher earnings for its latest fiscal year , traders said . NN NNS VBD VBN IN DT NN IN NNP NNP VBZ TO VB CD NN JJR NNS IN PRP$ JJS JJ NN , NNS VBD .
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Daiwa House advanced 100 to 2,610 , Misawa Homes was up 60 at 2,940 , and Sekisui House gained 100 to 2,490 . NNP NNP VBD CD TO CD , NNP NNP VBD IN CD IN CD , CC NNP NNP VBD CD TO CD .
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Leading construction companies also attracted interest for their strong earnings outlooks , traders said . VBG NN NNS RB VBN NN IN PRP$ JJ NNS NNS , NNS VBD .
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They and many other major Japanese corporations will issue results soon for the fiscal first half ended Sept. 30 . PRP CC JJ JJ JJ JJ NNS MD VB NNS RB IN DT JJ JJ NN VBN NNP CD .
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Ohbayashi was up 60 to close at 1,680 , Shimizu gained 50 to 2,120 , and Kumagai-Gumi advanced 40 to 1,490 . NNP VBD IN CD TO VB IN CD , NNP VBD CD TO CD , CC NNP VBD CD TO CD .
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Other winners included real estate issues Mitsubishi Estate , which closed at 2,500 , up 130 , and Mitsui Real Estate Development , which gained 100 to 2,890 . JJ NNS VBD JJ NN NNS NNP NNP , WDT VBD IN CD , IN CD , CC NNP NNP NNP NNP , WDT VBD CD TO CD .
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Steel shares fell back after advancing for three days . NN NNS VBD RB IN VBG IN CD NNS .
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Kawasaki Steel was down 11 at 788 , Kobe Steel lost 5 to 723 , and Nippon Steel slipped 6 to 729 . NNP NNP VBD RB CD IN CD , NNP NNP VBD NN TO CD , CC NNP NNP VBD CD TO CD .
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Mitsubishi Rayon , a leading advancer Wednesday , fell 44 to 861 as investors grabbed profits . NNP NNP , DT VBG NN NNP , VBD CD TO CD IN NNS VBD NNS .
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London 's Financial Times-Stock Exchange 100-share index finished 19.2 points higher at 2189.3 . NNP POS NNP NNP NNP JJ NN VBD CD NNS JJR IN CD .
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The Financial Times 30-share index ended 13.6 higher at 1772.1 . DT NNP NNP JJ NN VBD CD JJR IN CD .
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Volume continued to ease from the active dealings at the start of the week . NN VBD TO VB IN DT JJ NNS IN DT NN IN DT NN .
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Turnover was 382.9 million shares , compared with 449.3 million Wednesday . NN VBD CD CD NNS , VBN IN CD CD NNP .
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Dealers said the market was underpinned by a squeeze in FT-SE 100 stocks , particularly among market-makers seeking shares that had been hit hard in recent weeks , such as retailers and building-related concerns . NNS VBD DT NN VBD VBN IN DT NN IN NNP CD NNS , RB IN NNS VBG NNS WDT VBD VBN VBN JJ IN JJ NNS , JJ IN NNS CC JJ NNS .
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But despite the flurry of interest in those shares , dealers said , the market remains nervous about Wall Street 's volatility and high U.K. interest rates . CC IN DT NN IN NN IN DT NNS , NNS VBD , DT NN VBZ JJ IN NNP NNP POS NN CC JJ NNP NN NNS .
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U.K. money supply figures for September , released yesterday , showed continued growth in corporate and personal lending , which will keep pressure on the government to maintain tight credit . JJ NN NN NNS IN NNP , VBN NN , VBD VBN NN IN JJ CC JJ NN , WDT MD VB NN IN DT NN TO VB JJ NN .
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Among the stocks featured in the market-makers ' squeeze was Sears , which closed at 107 pence -LRB- $ 1.70 -RRB- a share , up 3 . IN DT NNS VBN IN DT NNS POS NN VBD NNP , WDT VBD IN CD NN ( $ CD ) DT NN , IN CD .
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General Universal Stores , another top-tier stock hit recently by concerns over retail demand in the face of high interest rates , gained 20 to # 10.44 . NNP NNP NNPS , DT JJ NN VBD RB IN NNS IN JJ NN IN DT NN IN JJ NN NNS , VBD CD TO # CD .
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Storehouse gained 2 to NNP VBD CD TO
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Another active FT-SE 100 stock was clothing and furniture retailer Burton , which gained 6 to 196 . DT JJ NNP CD NN VBD NN CC NN NN NNP , WDT VBD CD TO CD .
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Insurers recovered ground again on market-maker demand and speculative buying linked to talk of mergers in the industry before the European Community 's planned market unification in NNS VBD NN RB IN NN NN CC JJ NN VBN TO VB IN NNS IN DT NN IN DT NNP NNP POS VBN NN NN IN
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Royal Insurance was the sector 's hottest issue , ending 15 higher at 465 . NNP NNP VBD DT NN POS JJS NN , VBG CD JJR IN CD .
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Sun Alliance fell 1 to close at 289 , and General Accident jumped 10 to # 10.13 . NNP NNP VBD CD TO VB IN CD , CC NNP NNP VBD CD TO # CD .
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B.A.T Industries surged in afternoon dealings after its shareholders approved a plan to dispose of its U.S. and U.K. retailing operations to fend off Hoylake Investment 's # 13.4 billion -LRB- $ 21.33 billion -RRB- hostile bid . NNP NNPS VBD IN NN NNS IN PRP$ NNS VBD DT NN TO VB IN PRP$ NNP CC NNP NN NNS TO VB IN NNP NNP POS # CD CD ( $ CD CD ) JJ NN .
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With the company also exercising a plan to buy back as many as 10 % of its shares outstanding , B.A.T closed at 783 , up 27 . IN DT NN RB VBG DT NN TO VB RB RB JJ IN CD NN IN PRP$ NNS JJ , NNP VBD IN CD , IN CD .
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Turnover was 6.8 million shares , including about four million shares traded in the afternoon after the shareholders ' meeting . NN VBD CD CD NNS , VBG IN CD CD NNS VBN IN DT NN IN DT NNS POS NN .
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B.A.T said it purchased 2.5 million shares at 785 . NNP VBD PRP VBD CD CD NNS IN CD .
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In other European markets , shares closed sharply higher in Stockholm , Frankfurt , Zurich and Paris and higher in Milan , Amsterdam and Brussels . IN JJ JJ NNS , NNS VBD RB JJR IN NNP , NNP , NNP CC NNP CC JJR IN NNP , NNP CC NNP .
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South African gold stocks closed firmer . JJ JJ NN NNS VBD JJR .
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Prices also closed higher in Singapore , Sydney , Taipei , Wellington , Hong Kong and Manila but were lower in Seoul . NNS RB VBD JJR IN NNP , NNP , NNP , NNP , NNP NNP CC NNP CC VBD JJR IN NNP .
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Here are price trends on the world 's major stock markets , as calculated by Morgan Stanley Capital International Perspective , Geneva . RB VBP NN NNS IN DT NN POS JJ NN NNS , IN VBN IN NNP NNP NNP NNP NNP , NNP .
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To make them directly comparable , each index is based on the close of 1969 equaling 100 . TO VB PRP RB JJ , DT NN VBZ VBN IN DT NN IN CD VBG CD .
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The percentage change is since year-end . DT NN NN VBZ IN NN .
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The federal response to California 's earthquake crisis was marred by coast-to-coast name-calling between the White House and San Francisco 's Mayor Art Agnos . DT JJ NN TO NNP POS NN NN VBD VBN IN JJ NN IN DT NNP NNP CC NNP NNP POS NNP NNP NNP .
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Mr. Agnos complained that he was `` ticked off '' that Vice President Dan Quayle , who toured the earthquake site Wednesday , did n't schedule a private meeting with him . NNP NNP VBD IN PRP VBD `` VBD IN '' IN NNP NNP NNP NNP , WP VBD DT NN NN NNP , VBD RB VB DT JJ NN IN PRP .
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The mayor said the Quayle visit was `` a publicity stunt . '' DT NN VBD DT NNP NN VBD `` DT NN NN . ''
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The White House said Mr. Quayle 's staff had invited the mayor to two meetings of the vice president and groups of local officials and had offered to dispatch a helicopter to pick him up . DT NNP NNP VBD NNP NNP POS NN VBD VBN DT NN TO CD NNS IN DT NN NN CC NNS IN JJ NNS CC VBD VBN TO VB DT NN TO VB PRP RB .
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Mr. Agnos declined the invitations , the White House said . NNP NNP VBD DT NNS , DT NNP NNP VBD .
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Marlin Fitzwater , White House press secretary , also asserted that Mr. Agnos had failed to return telephone calls from John Sununu , White House chief of staff . NNP NNP , NNP NNP NN NN , RB VBD IN NNP NNP VBD VBN TO VB NN VBZ IN NNP NNP , NNP NNP NN IN NN .
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`` We regret very much that the mayor of San Francisco has decided not to cooperate with us on this matter in making sure that there is adequate federal support for the disaster in his city , '' Mr. Fitzwater said . `` PRP VBP RB RB IN DT NN IN NNP NNP VBZ VBN RB TO VB IN PRP IN DT NN IN VBG JJ IN EX VBZ JJ JJ NN IN DT NN IN PRP$ NN , '' NNP NNP VBD .
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By late yesterday , both sides appeared prepared to bury the hatchet . IN JJ NN , DT NNS VBD VBN TO VB DT NN .
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The White House announced that Mr. Agnos , along with the mayors of Oakland and Alameda , are to accompany President Bush on a tour of the earthquake area today . DT NNP NNP VBD IN NNP NNP , IN IN DT NNS IN NNP CC NNP , VBP TO VB NNP NNP IN DT NN IN DT NN NN NN .
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And one White House official reported that Mr. Agnos had been `` very helpful '' in making arrangements for Mr. Bush 's hastily scheduled trip to California . CC CD NNP NNP NN VBD IN NNP NNP VBD VBN `` RB JJ '' IN VBG NNS IN NNP NNP POS RB VBN NN TO NNP .
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Gold and silver broker Preston Semel asked a federal court to halt the Commodity Exchange from imposing a record $ 550,000 fine on his firm . NNP CC NN NN NNP NNP VBD DT JJ NN TO VB DT NNP NNP IN VBG DT NN $ CD JJ IN PRP$ NN .
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The suit , filed in federal court in Manhattan , also asks that the Comex 's nine-month suspension of Mr. Semel be lifted , pending the broker 's appeal of the disciplinary measures . DT NN , VBN IN JJ NN IN NNP , RB VBZ IN DT NNP POS JJ NN IN NNP NNP VB VBN , VBG DT NN POS NN IN DT JJ NNS .
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The fine and suspension , announced in August , are the stiffest sanctions the Comex has ever ordered against one of its members . DT NN CC NN , VBD IN NNP , VBP DT JJS VBZ DT NNP VBZ RB VBN IN CD IN PRP$ NNS .
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The Comex accused the 39-year-old Mr. Semel of `` fraudulent conduct '' and improper trading . DT NNP VBD DT NNP NNP NNP IN `` JJ NN '' CC JJ NN .
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The disciplinary proceedings stem from trading in April 1987 . DT JJ NNS VBP IN NN IN NNP CD .
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Mr. Semel and his firm , Semel & Co. , have appealed the Comex decision and the sanctions to the Commodity Futures Trading Commission . NNP NNP CC PRP$ NN , NNP CC NNP , VBP VBN DT NNP NN CC DT NNS TO DT NNP NNS NNP NNP .
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The commission denied Mr. Semel 's request that the fine and suspension be delayed pending the appeal . DT NN VBN NNP NNP POS NN IN DT NN CC NN VB VBN VBG DT NN .
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The lawsuit states that unless the sanctions are halted pending an appeal , the broker and his firm `` will be irreparably injured and their business will be totally and permanently destroyed . '' DT NN NNS IN IN DT NNS VBP VBN VBG DT NN , DT NN CC PRP$ NN `` MD VB RB VBN CC PRP$ NN MD VB RB CC RB VBN . ''
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Already the firm has paid $ 211,666 of the fine , the suit said , and it will have to liquidate additional assets in order to pay the rest . RB DT NN VBZ VBN $ CD IN DT NN , DT NN VBD , CC PRP MD VB TO VB JJ NNS IN NN TO VB DT NN .
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A spokesman for the Comex could n't be reached to comment . DT NN IN DT NNP MD RB VB VBN TO VB .
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The Federal National Mortgage Association said 39 lenders across the U.S. have agreed to offer home loans under Fannie Mae 's pilot program for elderly people . DT NNP NNP NNP NNP VBD CD NNS IN DT NNP VBP VBN TO VB NN NNS IN NNP NNP POS NN NN IN JJ NNS .
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Fannie Mae , a federally chartered and shareholder-owned company , said the lenders include Prudential Home Mortgage Co. , a unit of Prudential Insurance Co. of America that operates in every state . NNP NNP , DT RB JJ CC JJ NN , VBD DT NNS VBP NNP NNP NNP NNP , DT NN IN NNP NNP NNP IN NNP WDT VBZ IN DT NN .
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Prudential Insurance is based in Newark , N.J . NNP NNP VBZ VBN IN NNP , NNP .
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Fannie Mae has agreed to buy as much as $ 100 million of loans under its Seniors ' Housing Opportunities pilot program , which offers four types of loans to people 62 years of age or older to help them maintain their home or obtain housing . NNP NNP VBZ VBN TO VB RB JJ IN $ CD CD IN NNS IN PRP$ NNS POS NNP NNS NN NN , WDT VBZ CD NNS IN NNS TO NNS CD NNS IN NN CC JJR TO VB PRP VB PRP$ NN CC VB NN .
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The loans can be for accessory apartments , for cottages built in a relative 's yard , for home-sharing or for sale-lease-back transactions . DT NNS MD VB IN NN NNS , IN NNS VBN IN DT NN POS NN , IN NN CC IN JJ NNS .
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Fannie Mae makes a secondary market in home loans . NNP NNP VBZ DT JJ NN IN NN NNS .
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It buys loans from lenders , packages some into securities for sale to investors and holds the remainder in a portfolio . PRP VBZ NNS IN NNS , VBZ DT IN NNS IN NN TO NNS CC VBZ DT NN IN DT NN .
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Robert M. Gintel , senior partner of a Greenwich , Conn. , investment firm , said he plans to launch a proxy fight against the board of Boston-based Xtra Corp . NNP NNP NNP , JJ NN IN DT NNP , NNP , NN NN , VBD PRP VBZ TO VB DT NN NN IN DT NN IN JJ NNP NNP .
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Mr. Gintel , head of Gintel & Co. , said he plans to conduct a proxy contest to elect a majority of Xtra 's board at the next annual stockholders meeting . NNP NNP , NN IN NNP CC NNP , VBD PRP VBZ TO VB DT NN NN TO VB DT NN IN NNP POS NN IN DT JJ JJ NNS NN .
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Xtra , a transportation leasing company , said in a statement it would have no comment on Mr. Gintel 's plans until `` further information has been disclosed by him . '' NNP , DT NN NN NN , VBD IN DT NN PRP MD VB DT NN IN NNP NNP POS NNS IN `` JJ NN VBZ VBN VBN IN PRP . ''
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The company also said its 1990 annual meeting has not been scheduled . DT NN RB VBD PRP$ CD JJ NN VBZ RB VBN VBN .
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Mr. Gintel owns 300,000 of the company 's 6.3 million common shares outstanding . NNP NNP VBZ CD IN DT NN POS CD CD JJ NNS JJ .
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Xtra said it recently bought back approximately 55,000 of its shares pursuant to its existing authorization to acquire as many as 650,000 shares . NNP VBD PRP RB VBD RB RB CD IN PRP$ NNS JJ TO PRP$ VBG NN TO VB RB JJ IN CD NNS .
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Mr. Gintel has filed suit in Delaware Chancery Court , seeking to block Xtra 's anti-takeover tactic . NNP NNP VBZ VBN NN IN NNP NNP NNP , VBG TO VB NNP POS JJ NN .
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In a filing with the Securities and Exchange Commission , Mr. Gintel said Xtra `` has pursued business strategies that are n't in the best interest of stockholders . IN DT NN IN DT NNP CC NNP NNP , NNP NNP VBD NNP `` VBZ VBN NN NNS WDT VBP RB IN DT JJS NN IN NNS .
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STOCKS AND BONDS SURGED on the second anniversary of Black Monday as a favorable inflation report prompted speculation of lower interest rates . NNS CC NNS VBD IN DT JJ NN IN NNP NNP IN DT JJ NN NN VBD NN IN JJR NN NNS .
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The Dow Jones industrials closed up 39.55 , at 2683.20 , after rising over 60 points in mid-afternoon . DT NNP NNP NNS VBD IN CD , IN CD , IN VBG IN CD NNS IN NN .
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The rally brought the gain so far this week to about 114 points . DT NN VBD DT NN RB RB DT NN TO IN CD NNS .
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The dollar finished mixed , while gold declined . DT NN VBD VBN , IN NN VBD .
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Consumer prices climbed a moderate 0.2 % in September , mostly due to higher clothing costs . NN NNS VBD DT JJ CD NN IN NNP , RB JJ TO JJR NN NNS .
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Energy prices continued to fall at the retail level , but economists worried about a big rise in wholesale energy costs . NN NNS VBD TO VB IN DT JJ NN , CC NNS VBN IN DT JJ NN IN JJ NN NNS .
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British Airways dropped out of the current bidding for United Air 's parent , leaving a UAL management-pilots group without a key partner . JJ NNPS VBD IN IN DT JJ NN IN NNP NNP POS NN , VBG DT NNP JJ NN IN DT JJ NN .
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British Air 's move raised new questions about the buy-out group 's efforts to revive a stalled bid for UAL . NNP NNP POS NN VBD JJ NNS IN DT NN NN POS NNS TO VB DT VBN NN IN NNP .
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A capital-gains tax-cut plan was dropped by Senate Democrats under pressure from their leadership . DT NNS JJ NN VBD VBN IN NNP NNPS IN NN IN PRP$ NN .
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The move is a setback for Bush , who needs Democratic support to pass a capital-gains cut in the Senate . DT NN VBZ DT NN IN NNP , WP VBZ JJ NN TO VB DT NNS VBP IN DT NNP .
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Other tax breaks also are likely to be restored or created in the coming months as special interest groups try to undo the 1986 tax overhaul . JJ NN NNS RB VBP JJ TO VB VBN CC VBN IN DT VBG NNS IN JJ NN NNS VBP TO VB DT CD NN NN .
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Many retailers are worried that a price war could erupt this Christmas if cash-strapped firms such as Campeau slash prices to spur sales . JJ NNS VBP VBN IN DT NN NN MD VB DT NNP IN JJ NNS JJ IN NNP NN NNS TO VB NNS .
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AT&T unveiled a sweetened early retirement plan for management that the company hopes will save it $ 450 million in the next year . NNP VBD DT VBN JJ NN NN IN NN IN DT NN VBZ MD VB PRP $ CD CD IN DT JJ NN .
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Also , profit rose 19 % in the third quarter . RB , NN VBD CD NN IN DT JJ NN .
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Chrysler will idle a Toledo assembly plant temporarily due to slowing sales of its profitable Jeep Cherokee and Wagoneer sport utility vehicles . NNP MD VB DT NNP NN NN RB JJ TO VBG NNS IN PRP$ JJ NNP NNP CC NNP NN NN NNS .
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Digital Equipment 's profit fell 32 % in the latest quarter , prompting forecasts of weaker results ahead . NNP NNP POS NN VBD CD NN IN DT JJS NN , VBG NNS IN JJR NNS RB .
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Analysts were troubled by signs of flat U.S. orders at the computer maker . NNS VBD JJ IN NNS IN JJ NNP NNS IN DT NN NN .
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IBM plans to unveil over 50 software products on Tuesday to try to end some of the problems in computerizing manufacturing operations . NN NNS TO VB IN CD NN NNS IN NNP TO VB TO VB DT IN DT NNS IN VBG NN NNS .
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The TV units of Paramount and MCA are exploring offering prime-time programming to independent stations two nights a week . DT NN NNS IN NNP CC NNP VBP VBG NN JJ NN TO JJ NNS CD NNS DT NN .
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BankAmerica 's profit jumped 34 % in the third quarter . NNP POS NN VBD CD NN IN DT JJ NN .
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The rapid recovery continued to be fueled by growth in consumer loans , higher interest margins and only minor loan losses . DT JJ NN VBD TO VB VBN IN NN IN NN NNS , JJR NN NNS CC RB JJ NN NNS .
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Big Board short interest fell 4.2 % for the month ended Oct. 13 , the second decline in a row . NNP NNP JJ NN VBD CD NN IN DT NN VBN NNP CD , DT JJ NN IN DT NN .
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Borrowed shares on the Amex rose to another record . VBN NNS IN DT NNP VBD TO DT NN .
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Bell Atlantic posted a strong earnings gain for the third quarter , as did Southern New England Telecommunications . NNP NNP VBD DT JJ NNS NN IN DT JJ NN , IN VBD NNP NNP NNP NNPS .
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But Nynex , Pacific Telesis and U S West had lower profits . CC NNP , NNP NNP CC NNP NNP NNP VBD JJR NNS .
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B.A.T Industries won shareholder approval for a defensive restructuring to fend off Sir James Goldsmith . NNP NNPS VBD NN NN IN DT JJ NN TO VB IN NNP NNP NNP .
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American Express 's profit climbed 21 % in the quarter , aided by a surge in its travel business and despite a big rise in Third World loan reserves . NNP NNP POS NN VBD CD NN IN DT NN , VBN IN DT NN IN PRP$ NN NN CC IN DT JJ NN IN NNP NNP NN NNS .
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Markets -- NNS :
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Stocks : Volume 198,120,000 shares . NNS : NN CD NNS .
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Dow Jones industrials 2683.20 , up 39.55 ; transportation 1263.51 , up 15.64 ; utilities 215.42 , up 1.45 . NNP NNP NNS CD , IN CD : NN CD , IN CD : NNS CD , IN CD .
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Bonds : Shearson Lehman Hutton Treasury index 3398.65 , up NNS : NNP NNP NNP NNP NN CD , IN
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Commodities : Dow Jones futures index 130.13 , up 0.23 ; spot index 130.46 , up 0.10 . NNS : NNP NNP NNS NN CD , IN CD : NN NN CD , IN CD .
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Dollar : 141.70 yen , up 0.25 ; 1.8470 marks , off 0.0015 . NN : CD NN , IN CD : CD NNS , IN CD .
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Computer Sciences Corp. , El Segundo , Calif. , said the National Aeronautics and Space Administration will negotiate details of a contract valued at about $ 170 million to provide software for the Ames Research Center . NNP NNP NNP , NNP NNP , NNP , VBD DT NNP NNP CC NNP NNP MD VB NNS IN DT NN VBN IN RB $ CD CD TO VB NN IN DT NNP NNP NNP .
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Included in the three-year contract are options for two one-year renewals . VBN IN DT JJ NN VBP NNS IN CD JJ NNS .
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NASA awarded the contract to CSC in November but an appeal by Sterling Software Inc. of Dallas sent the contract to the General Services Administration Board of Contract Appeals and the board required NASA to re-evaluate bidders ' proposals . NNP VBD DT NN TO NNP IN NNP CC DT NN IN NNP NNP NNP IN NNP VBD DT NN TO DT NNP NNP NNP NNP IN NNP NNPS CC DT NN VBN NNP TO VB NNS POS NNS .
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Sterling had completed a five-year contract for NASA but lost its bid for renewal . NNP VBD VBN DT JJ NN IN NNP CC VBD PRP$ NN IN NN .
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As directed by the board , NASA completed the evaluation and again chose CSC . IN VBN IN DT NN , NNP VBD DT NN CC RB VBD NNP .
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For its fiscal year ended March 31 , CSC had revenue of $ 1.3 billion . IN PRP$ JJ NN VBN NNP CD , NNP VBD NN IN $ CD CD .
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AFTERSHOCKS RATTLED Northern California amid an earthquake cleanup . NNS VBD NNP NNP IN DT NN NN .
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As power and commuters returned to much of downtown San Francisco for the first time since Tuesday 's temblor in the Bay area , three strong aftershocks , one measuring 5.0 on the Richter scale , jolted the region . IN NN CC NNS VBD TO NN IN NN NNP NNP IN DT JJ NN IN NNP POS NN IN DT NNP NN , CD JJ NNS , CD VBG CD IN DT NNP NN , VBD DT NN .
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Serious injuries or damages were n't reported . JJ NNS CC NNS VBD RB VBN .
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Californians , meanwhile , tried to cope with still-limited services , blocked roadways and water shortages in the aftermath of the tremor that left scores dead and injured . NNS , RB , VBD TO VB IN JJ NNS , VBN NNS CC NN NNS IN DT NN IN DT NN WDT VBD NNS JJ CC VBN .
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Thousands remained homeless . NNS VBD JJ .
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Bush is to visit the area today , and officials in Washington estimated that emergency assistance would total at least $ 2.5 billion . NNP VBZ TO VB DT NN NN , CC NNS IN NNP VBD DT NN NN MD VB IN JJS $ CD CD .
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A series of earthquakes struck northern China , killing at least 29 people , injuring hundreds and razing about 8,000 homes , the Xinhua News Agency said . DT NN IN NNS VBD JJ NNP , VBG IN JJS CD NNS , VBG NNS CC VBG IN CD NNS , DT NNP NNP NNP VBD .
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The Senate rejected a constitutional amendment sought by Bush to prohibit desecration of the U.S. flag . DT NNP VBD DT JJ NN VBN IN NNP TO VB NN IN DT NNP NN .
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While the proposal won a slight majority , the 51-48 vote was well short of the two-thirds needed to approve changes in the Constitution . IN DT NN VBD DT JJ NN , DT JJ NN VBD JJ NN IN DT NNS VBN TO VB NNS IN DT NNP .
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It was considered a victory for Democratic leaders , who favor a law barring flag burning . PRP VBD VBN DT NN IN JJ NNS , WP VBP DT NN VBG NN VBG .
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The House approved an $ 837 million aid package for Poland and Hungary , nearly double what Bush had requested . DT NNP VBD DT $ CD CD NN NN IN NNP CC NNP , RB JJ WP NNP VBD VBN .
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The vote of 345-47 sent the measure to the Senate . DT NN IN NN VBD DT NN TO DT NNP .
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Britain 's chief justice quashed the murder convictions of four people for Irish Republican Army bombings that killed seven people in 1974 . NNP POS JJ NN VBD DT NN NNS IN CD NNS IN JJ NNP NNP NNS WDT VBD CD NNS IN CD .
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The reversal came after the government conceded that investigators may have faked evidence . DT NN VBD IN DT NN VBD IN NNS MD VB VBN NN .
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The `` Guildford Four , '' three Irishmen and an Englishwoman , have been imprisoned since 1975 . DT `` NNP CD , '' CD NNPS CC DT NNP , VBP VBN VBN IN CD .
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The Nobel Prize in literature was won by Camilo Jose Cela , a Spanish writer . DT NNP NNP IN NN VBD VBN IN NNP NNP NNP , DT JJ NN .
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His 1942 novel `` The Family of Pascual Duarte '' is considered the most popular work of fiction in Spanish since Cervantes 's `` Don Quixote '' was published 400 years ago . PRP$ CD NN `` DT NNP IN NNP NNP '' VBZ VBN DT RBS JJ NN IN NN IN JJ IN NNP POS `` NNP NNP '' VBD VBN CD NNS RB .
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The Swedish Academy in Stockholm cited the 73-year-old Cela for `` rich and intensive prose . '' DT NNP NNP IN NNP VBD DT NNP NNP IN `` JJ CC JJ NN . ''
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The editor of Pravda was dismissed and succeeded by a confidant of Soviet leader Gorbachev . DT NN IN NNP VBD VBN CC VBN IN DT NN IN JJ NN NNP .
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The action at the Communist Party daily , viewed as the Soviet Union 's most authoritative newspaper , was considered the most significant development in a week of Kremlin wrangling over the press , including sharp criticism from Gorbachev . DT NN IN DT NNP NNP JJ , VBN IN DT NNP NNP POS RBS JJ NN , VBD VBN DT RBS JJ NN IN DT NN IN NNP VBG IN DT NN , VBG JJ NN IN NNP .
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East Germany 's new leader met with Lutheran Church officials to discuss a growing opposition movement demanding democratic freedoms . NNP NNP POS JJ NN VBD IN NNP NNP NNS TO VB DT VBG NN NN VBG JJ NNS .
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As they conferred near East Berlin , a pro-democracy protest erupted in the Baltic city of Greifswald , and activists threatened further rallies against leader Krenz 's expected hard-line policies . IN PRP VBD IN NNP NNP , DT JJ NN VBD IN DT JJ NN IN NNP , CC NNS VBD JJ NNS IN NN NNP POS VBN JJ NNS .
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Police in Prague raided an international meeting on human rights , detaining Czechoslovakia 's former foreign minister , Jiri Hajak , and 14 other activists . NNS IN NNP VBD DT JJ NN IN JJ NNS , VBG NNP POS JJ JJ NN , NNP NNP , CC CD JJ NNS .
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A leading U.S. human-rights monitor also was briefly held . DT VBG NNP JJ NN RB VBD NN VBN .
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Dissident playwright Vaclav Havel reportedly escaped the crackdown , the fourth against activists in recent days . JJ NN NNP NNP RB VBD DT NN , DT JJ IN NNS IN JJ NNS .
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Bush met in Washington with Spain 's Prime Minister Gonzalez and discussed what the president called `` the unique role '' that Madrid can play in furthering democracy in Eastern Europe and Latin America . NNP VBD IN NNP IN NNP POS NNP NNP NNP CC VBN WP DT NN VBN `` DT JJ NN '' IN NNP MD VB IN VBG NN IN NNP NNP CC NNP NNP .
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Gonzalez , who pledged to help monitor voting in Nicaragua , was said to be carrying proposals for free elections in Panama . NNP , WP VBD TO VB VB NN IN NNP , VBD VBD TO VB VBG NNS IN JJ NNS IN NNP .
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The Galileo spacecraft sped unerringly toward the planet Jupiter , while five astronauts aboard the space shuttle Atlantis measured the Earth 's ozone layer . DT NNP NN VBD RB IN DT NN NNP , IN CD NNS IN DT NN NN NNP VBD DT NNP POS NN NN .
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The robot probe was dispatched Wednesday by the shuttle crew , which is to conduct a series of medical and other experiments before their scheduled landing Monday in California . DT NN NN VBD VBN NNP IN DT NN NN , WDT VBZ TO VB DT NN IN JJ CC JJ NNS IN PRP$ VBN NN NNP IN NNP .
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Argentina and Britain agreed to resume diplomatic and economic relations , seven years after the two nations battled over the Falkland Islands . NNP CC NNP VBD TO VB JJ CC JJ NNS , CD NNS IN DT CD NNS VBD IN DT NNP NNPS .
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The announcement , in which they said hostilities had ceased , followed a two-day meeting in Madrid . DT NN , IN WDT PRP VBD NNS VBD VBN , VBD DT JJ NN IN NNP .
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Rebel artillerists bombarded the capital of Afghanistan , killing at least 12 people , as the Soviet Union was reported to be airlifting arms and food to Kabul 's forces . NN NNS VBD DT NN IN NNP , VBG IN JJS CD NNS , IN DT NNP NNP VBD VBN TO VB VBG NNS CC NN TO NNP POS NNS .
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Fighting also was reported around the strategic town of Khost , near the Pakistani border . NNP RB VBD VBN IN DT JJ NN IN NNP , IN DT JJ NN .
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Saudi Arabia 's foreign minister met in Damascus with President Assad to develop a plan for the withdrawal of Syria 's 40,000 troops from Lebanon as part of a settlement of that nation 's 14-year-old civil war . NNP NNP POS JJ NN VBD IN NNP IN NNP NNP TO VB DT NN IN DT NN IN NNP POS CD NNS IN NNP IN NN IN DT NN IN DT NN POS JJ JJ NN .
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The talks came as Lebanese negotiations on political changes appeared deadlocked . DT NNS VBD IN JJ NNS IN JJ NNS VBD VBN .
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GOP Sen. Specter of Pennsylvania said he would vote to acquit federal Judge Alcee Hastings in his impeachment trial on charges of perjury and bribery conspiracy . NNP NNP NNP IN NNP VBD PRP MD VB TO VB JJ NNP NNP NNP IN PRP$ NN NN IN NNS IN NN CC NN NN .
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Specter , the vice chairman of the Senate 's evidence panel , said there was `` insufficient evidence to convict '' the Miami jurist . NNP , DT NN NN IN DT NNP POS NN NN , VBD EX VBD `` JJ NN TO VB '' DT NNP NN .
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After slipping on news of a smaller-than-expected U.S. inflation figure , the dollar rebounded later in the trading day . IN VBG IN NN IN DT JJ NNP NN NN , DT NN VBD RB IN DT NN NN .
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The U.S. unit dipped to a session low against the mark just after the release of the U.S. consumer price index . DT NNP NN VBD TO DT NN JJ IN DT NN RB IN DT NN IN DT NNP NN NN NN .
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The report showed that September consumer prices rose just 0.2 % , a smaller increase than expected . DT NN VBD IN NNP NN NNS VBD RB CD NN , DT JJR NN IN VBN .
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The market had anticipated a 0.4 % rise in the price index . DT NN VBD VBN DT CD NN NN IN DT NN NN .
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The September index fueled speculation , damaging to the dollar , that the Federal Reserve soon will ease monetary policy further . DT NNP NN VBD NN , JJ TO DT NN , IN DT NNP NNP RB MD VB JJ NN JJ .
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But foreign-exchange dealers said the dollar staged a quick comeback , prompted by a round of short covering and some fresh buying interest later in the trading day . CC JJ NNS VBD DT NN VBD DT JJ NN , VBN IN DT NN IN JJ NN CC DT JJ NN NN RB IN DT NN NN .
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Traders said that a nearly 40-point gain in the Dow Jones Industrial Average , fueled in part by news of a lower-than-expected price index , had little influence on the dollar 's moves . NNS VBD IN DT RB JJ NN IN DT NNP NNP NNP NNP , VBN IN NN IN NN IN DT JJ NN NN , VBD JJ NN IN DT NN POS NNS .
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`` The market is beginning to disassociate itself from Wall Street , '' said one New York trader . `` DT NN VBZ VBG TO VB PRP IN NNP NNP , '' VBD CD NNP NNP NN .
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In late New York trading yesterday , the dollar was quoted at 1.8470 marks , down from 1.8485 marks late Wednesday , and at 141.70 yen , up from 141.45 yen late Wednesday . IN JJ NNP NNP NN NN , DT NN VBD VBN IN CD NNS , RB IN CD NNS JJ NNP , CC IN CD NN , IN IN CD NN JJ NNP .
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Sterling was quoted at $ 1.5990 , up from $ 1.5920 late Wednesday . NNP VBD VBN IN $ CD , IN IN $ CD JJ NNP .
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In Tokyo Friday , the U.S. currency opened for trading at 141.93 yen , up from Thursday 's Tokyo close of 141.55 yen . IN NNP NNP , DT NNP NN VBD IN NN IN CD NN , IN IN NNP POS NNP NN IN CD NN .
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Some analysts said the consumer price index reflects a more significant slowdown in the U.S. economy than earlier indicated . DT NNS VBD DT NN NN NN VBZ DT RBR JJ NN IN DT NNP NN IN RBR VBD .
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They point out that September 's producer-price index showed a 0.9 % increase . PRP VBP RP IN NNP POS JJ NN VBD DT CD NN NN .
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They noted that because the consumer price index , known as the CPI , is a more comprehensive measure of inflation and is rising less rapidly than the producer-price index , or PPI , it could signal further easing by Fed . PRP VBD IN IN DT NN NN NN , VBN IN DT NNP , VBZ DT RBR JJ NN IN NN CC VBZ VBG RBR RB IN DT JJ NN , CC NNP , PRP MD VB JJ NN IN NNP .
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Others suggested , however , that the Fed will hold any changes in monetary policy in check , leaving fed funds at around 8 3\/4 % , down from the 9 % level that prevailed from July through September . NNS VBD , RB , IN DT NNP MD VB DT NNS IN JJ NN IN NN , VBG VBN NNS IN IN CD CD NN , RB IN DT CD NN NN WDT VBD IN NNP IN NNP .
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Kevin Logan , chief economist with the Swiss Bank Corp. , said that both PPI and CPI climbed around 4 1\/2 % year-to-year in September . NNP NNP , JJ NN IN DT NNP NNP NNP , VBD IN DT NNP CC NNP VBD IN CD CD NN JJ IN NNP .
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He argued that both CPI and PPI have in fact decelerated since spring . PRP VBD IN DT NNP CC NNP VBP IN NN VBN IN NN .
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`` The Fed wo n't be stampeded into easing , '' Mr. Logan said , predicting that for now , interest rates will stay where they are . `` DT NNP MD RB VB VBN IN VBG , '' NNP NNP VBD , VBG IN IN RB , NN NNS MD VB WRB PRP VBP .
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A four-day matched sale-purchase agreement , a move to drain liquidity from the system , was viewed as a technical move , rather than an indication of tightening credit . DT JJ VBN NN NN , DT NN TO VB NN IN DT NN , VBD VBN IN DT JJ NN , RB IN DT NN IN VBG NN .
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Market participants note that the mark continues to post heftier gains against its U.S. counterpart than any other major currency , particularly the yen . NN NNS VBP IN DT NN VBZ TO VB JJR NNS IN PRP$ NNP NN IN DT JJ JJ NN , RB DT NN .
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`` There 's a bottomless pit of dollar demand '' by Japanese investors , said Graham Beale , managing director of foreign exchange at Hongkong & Shanghai Banking Corp. in New York , adding that purely speculative demand would n't hold the dollar at its recent levels against the Japanese currency . `` EX VBZ DT JJ NN IN NN NN '' IN JJ NNS , VBD NNP NNP , VBG NN IN JJ NN IN NNP CC NNP NNP NNP IN NNP NNP , VBG IN RB JJ NN MD RB VB DT NN IN PRP$ JJ NNS IN DT JJ NN .
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Mr. Beale commented that the mark remains well bid against other currencies as well . NNP NNP VBD IN DT NN VBZ JJ NN IN JJ NNS IN RB .
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Robert White , manager of corporate trading at First Interstate of California , called the market `` psychologically pro-mark , '' noting that the U.S. remains a `` veritable grab bag '' for Japanese investors which accounts for the unabated demand for U.S. dollars . NNP NNP , NN IN JJ NN IN NNP NNP IN NNP , VBD DT NN `` RB JJ , '' VBG IN DT NNP VBZ DT `` JJ NN NN '' IN JJ NNS WDT NNS IN DT JJ NN IN NNP NNS .
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On the Commodity Exchange in New York , gold dropped $ 1.60 to $ 367.10 an ounce in moderate trading . IN DT NNP NNP IN NNP NNP , NN VBD $ CD TO $ CD DT NN IN JJ NN .
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Estimated volume was three million ounces . VBN NN VBD CD CD NNS .
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In early trading in Hong Kong Friday , gold was at about $ 366.85 an ounce . IN JJ NN IN NNP NNP NNP , NN VBD IN RB $ CD DT NN .
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Hotel Investors Trust and its affiliate , Hotel Investors Corp. , said the companies plan to sell all of the hotels the companies own and operate , except for two hotel-casinos in Las Vegas , Nev . NNP NNP NNP CC PRP$ NN , NNP NNP NNP , VBD DT NNS VBP TO VB DT IN DT NNS DT NNS JJ CC VB , IN IN CD NNS IN NNP NNP , NNP .
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The hotels and management interests will be sold at an auction , said John Rothman , president and chief executive officer of the trust and a director of the corporation . DT NNS CC NN NNS MD VB VBN IN DT NN , VBD NNP NNP , NN CC JJ JJ NN IN DT NN CC DT NN IN DT NN .
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Value of the properties and management interests was n't disclosed . NNP IN DT NNS CC NN NNS VBD RB VBN .
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In all , the Los Angeles-based trust plans to sell its interests in 36 hotels , while the corporation will sell its management interests in 32 of those properties . IN DT , DT NNP JJ NN NNS TO VB PRP$ NNS IN CD NNS , IN DT NN MD VB PRP$ NN NNS IN CD IN DT NNS .
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Excluded from the sale are the interests of the trust and the corporation in two Las Vegas hotel-casinos . VBN IN DT NN VBP DT NNS IN DT NN CC DT NN IN CD NNP NNP NNS .
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After completing the sale and paying debts , the trust and corporation will consider a number of options including a stock repurchase , payment of special dividend or investment in more gaming properties . IN VBG DT NN CC VBG NNS , DT NN CC NN MD VB DT NN IN NNS VBG DT NN NN , NN IN JJ NN CC NN IN JJR NN NNS .
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The companies will retain their current regular quarterly dividend of 25 cents during the sale process , Mr. Rothman said . DT NNS MD VB PRP$ JJ JJ JJ NN IN CD NNS IN DT NN NN , NNP NNP VBD .
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For the first six months , the trust and corporation had a net loss of $ 244,000 . IN DT JJ CD NNS , DT NN CC NN VBD DT JJ NN IN $ CD .
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Baxter International Inc. , citing cost-cutting moves and increased sales of its home-care products and dialysis treatments , posted a 20 % rise in third-quarter net income on a 5.9 % sales boost . NNP NNP NNP , VBG JJ NNS CC VBN NNS IN PRP$ JJ NNS CC NN NNS , VBD DT CD NN NN IN JJ JJ NN IN DT CD NN NNS NN .
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The Deerfield , Ill. , medical products and services company posted net of $ 102 million , or 34 cents a share , compared with $ 85 million , or 28 cents a share , a year ago . DT NNP , NNP , JJ NNS CC NNS NN VBD NN IN $ CD CD , CC CD NNS DT NN , VBN IN $ CD CD , CC CD NNS DT NN , DT NN RB .
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Sales totaled $ 1.81 billion up from $ 1.71 billion the previous year . NNS VBD $ CD CD IN IN $ CD CD DT JJ NN .
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For the nine-month period , Baxter said net rose 15 % to $ 307 million , or $ 1.02 a share , from $ 267 million , or 89 cents a share , during the year-ago period . IN DT JJ NN , NNP VBD NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC CD NNS DT NN , IN DT JJ NN .
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Sales for the nine months were up 8 % to $ 5.44 billion from $ 5.04 billion in the same period in 1988 . NNS IN DT CD NNS VBD IN CD NN TO $ CD CD IN $ CD CD IN DT JJ NN IN CD .
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In New York Stock Exchange composite trading , Baxter closed at $ 22.25 a share , down 12.5 cents . IN NNP NNP NNP NNP JJ NN , NNP VBD IN $ CD DT NN , RB CD NNS .
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A group bidding for American Medical International Inc. , New York , said it formally received the final financing needed for a $ 3 billion bid for about 86 % of the hospital operator 's stock . DT NN NN IN NNP NNP NNP NNP , NNP NNP , VBD PRP RB VBD DT JJ NN VBN IN DT $ CD CD NN IN IN CD NN IN DT NN NN POS NN .
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The offer from IMA Acquisition Corp. , for as many as 63 million shares , is set to expire Wednesday . DT NN IN NNP NNP NNP , IN RB JJ IN CD CD NNS , VBZ VBN TO VB NNP .
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Earlier this month , IMA said it had received about $ 1 billion of senior debt financing from Chemical Bank and six other banks ; Chemical Bank said it was `` highly confident '' it could arrange the balance of about $ 509 million . RBR DT NN , NNP VBD PRP VBD VBN RB $ CD CD IN JJ NN NN IN NNP NNP CC CD JJ NNS : NNP NNP VBD PRP VBD `` RB JJ '' PRP MD VB DT NN IN RB $ CD CD .
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In addition , the $ 3 billion bid includes $ 1 billion of debt that will be assumed by IMA , $ 600 million of high-yield junk bonds that will be sold by First Boston Corp. and $ 285 million of equity . IN NN , DT $ CD CD NN VBZ $ CD CD IN NN WDT MD VB VBN IN NNP , $ CD CD IN JJ NN NNS WDT MD VB VBN IN NNP NNP NNP CC $ CD CD IN NN .
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In New York Stock Exchange composite trading yesterday , American Medical closed at $ 23.625 , up $ 1.875 . IN NNP NNP NNP NNP JJ NN NN , NNP NNP VBD IN $ CD , IN $ CD .
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American Medical has agreed to the offer , but earlier this month said it had received new `` expressions of interest '' from two previous bidders . NNP NNP VBZ VBN TO DT NN , CC RBR DT NN VBD PRP VBD VBN JJ `` NNS IN NN '' IN CD JJ NNS .
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American Medical said it would pursue the inquiries from the companies , but would n't identify them unless they make firm offers . NNP NNP VBD PRP MD VB DT NNS IN DT NNS , CC MD RB VB PRP IN PRP VBP NN NNS .
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H&R Block is one of the great success stories of U.S. business . NNP NNP VBZ CD IN DT JJ NN NNS IN NNP NN .
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Oddly enough , this presents a problem for the stock . RB RB , DT VBZ DT NN IN DT NN .
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Some money managers are disenchanted with H&R Block because they suspect the company 's glory days are past , or at least passing . DT NN NNS VBP VBN IN NNP NNP IN PRP VBP DT NN POS NN NNS VBP JJ , CC IN JJS VBG .
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Block 's tax-preparation business is mature , they say , and some of its diversifications are facing tough competition . NNP POS NN NN VBZ JJ , PRP VBP , CC DT IN PRP$ NNS VBP VBG JJ NN .
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It 's no secret that Block dominates the mass-market tax-preparation business . PRP VBZ DT NN IN NNP VBZ DT JJ NN NN .
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The Street knows all about the predictability of its earnings , which are headed for a ninth consecutive yearly increase . DT NNP VBZ DT IN DT NN IN PRP$ NNS , WDT VBP VBN IN DT JJ JJ JJ NN .
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The company has consistently earned more than a 20 % annual return on its net worth while many companies would be happy with 15 % . DT NN VBZ RB VBN JJR IN DT CD NN JJ NN IN PRP$ JJ NN IN JJ NNS MD VB JJ IN CD NN .
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But the tax-preparation business simply has no more room to grow , says Mark Cremonie , director of research for Capital Supervisors Inc. , a Chicago firm that manages $ 6.5 billion . CC DT NN NN RB VBZ DT JJR NN TO VB , VBZ NNP NNP , NN IN NN IN NNP NNP NNP , DT NNP NN WDT VBZ $ CD CD .
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`` You go to any medium-sized town in the U.S. and you 're going to see H&R Block tax services . '' `` PRP VBP TO DT JJ NN IN DT NNP CC PRP VBP VBG TO VB NNP NNP NN NNS . ''
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Mr. Cremonie 's firm once held about 4.8 % of H&R Block . NNP NNP POS NN RB VBD IN CD NN IN NNP NNP .
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That was before the 1986 tax `` reform '' made taxes more complex than ever . DT VBD IN DT CD NN `` NN '' VBN NNS RBR JJ IN RB .
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`` One thing you can bet on , '' he says , `` is that Congress will do stupid things with the Tax Code . '' `` CD NN PRP MD VB IN , '' PRP VBZ , `` VBZ IN NNP MD VB JJ NNS IN DT NNP NNP . ''
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But Capital Supervisors sold the last of its H&R Block holdings earlier this year . CC NNP NNP VBN DT NN IN PRP$ NNP NNP NNS RBR DT NN .
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`` They 're thrashing around for diversification , '' he says . `` PRP VBP VBG IN IN NN , '' PRP VBZ .
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`` I think a lot of their businesses are just so-so . '' `` PRP VBP DT NN IN PRP$ NNS VBP RB JJ . ''
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Last week the stock hit an all-time high of 37 1\/4 before getting roughed up in the Friday-the-13th minicrash . JJ NN DT NN VBD DT JJ NN IN CD CD IN VBG VBD IN IN DT JJ NN .
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It closed yesterday at 34 3\/4 . PRP VBD NN IN CD CD .
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To be sure , the stock still has a lot of fans . TO VB JJ , DT NN RB VBZ DT NN IN NNS .
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`` If you invested $ 10,000 in the initial public offering in 1962 , it would be worth well over $ 5 million today , '' says Fredric E. Russell , a Tulsa , Okla. , money manager . `` IN PRP VBD $ CD IN DT JJ JJ NN IN CD , PRP MD VB JJ RB IN $ NN CD NN , '' VBZ NNP NNP NNP , DT NNP , NNP , NN NN .
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`` I do n't know what the risk is -LCB- of holding the stock -RCB- . `` PRP VBP RB VB WP DT NN VBZ ( IN VBG DT NN ) .
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Taxes are not going out of business . '' NNS VBP RB VBG IN IN NN . ''
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Many of his peers feel the same way . JJ IN PRP$ NNS VBP DT JJ NN .
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The number of big institutions that own H&R Block shares is 207 and growing , according to a midyear tally by CDA Investment Technologies . DT NN IN JJ NNS IN JJ NNP NNP NNS VBZ CD CC VBG , VBG TO DT NN NN IN NNP NNP NNP .
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Brokerage houses are sweet on H&R Block , too . NN NNS VBP JJ IN NNP NNP , RB .
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Zacks Investment Research counts five brokerage houses that consider the stock a buy , and four that call it a hold . NNP NNP NNP NNS CD NN NNS WDT VBP DT NN DT NN , CC CD WDT VBP PRP DT NN .
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None dare say to sell it . NN NN VBP TO VB PRP .
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But some money managers are doing just that . CC DT NN NNS VBP VBG RB DT .
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Eugene Sit , president of Sit Investment Associates in Minneapolis , says , `` When we bought it , we thought the growth rate was going to accelerate '' because of computerized tax filing and instant refunds -LRB- the customer gets a refund immediately but pays extra to the tax preparer , which waits for Uncle Sam 's check -RRB- . NNP VB , NN IN VB NNP NNPS IN NNP , VBZ , `` WRB PRP VBD PRP , PRP VBD DT NN NN VBD VBG TO VB '' IN IN JJ NN NN CC NN NNS ( DT NN VBZ DT NN RB CC VBZ JJ TO DT NN NN , WDT VBZ IN NNP NNP POS NN ) .
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But neither of those developments did much to juice up growth , Mr. Sit says . CC DT IN DT NNS VBD JJ TO NN IN NN , NNP VB VBZ .
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He figures Block earnings are now growing at about a 10 % annual rate -LRB- down from about 14 % the past five years -RRB- and will grow at an 8%-10 % rate in the future . PRP VBZ NNP NNS VBP RB VBG IN IN DT CD NN JJ NN ( RB IN IN CD NN DT JJ CD NNS ) CC MD VB IN DT JJ NN NN IN DT NN .
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That 's `` not bad , '' Mr. Sit says , but it sure does n't justify Block shares being priced at 15 to 16 times estimated earnings for fiscal 1990 . DT VBZ `` RB JJ , '' NNP VB VBZ , CC PRP JJ VBZ RB VB NNP NNS VBG VBN IN CD TO CD NNS VBD NNS IN JJ CD .
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He wants stocks whose price\/earnings ratio is less than their growth rate ; as he figures it , H&R Block does n't even come close . PRP VBZ NNS WP$ NNS NN VBZ JJR IN PRP$ NN NN : IN PRP VBZ PRP , NNP NNP VBZ RB RB VB NN .
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Two other money managers , in explaining why they have sold large amounts of H&R Block stock this year , spoke on the condition they not be named . CD JJ NN NNS , IN VBG WRB PRP VBP VBN JJ NNS IN NNP NNP NN DT NN , VBD IN DT NN PRP RB VBP VBN .
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`` The stock was going no place and the earnings were so-so , '' said one . `` DT NN VBD VBG DT NN CC DT NNS VBD JJ , '' VBD CD .
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-LRB- In the past two years , the stock almost stalled out . ( IN DT JJ CD NNS , DT NN RB VBD RB .
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It was above 33 , adjusted for a subsequent split , in 1987 , and has n't gotten much higher since . -RRB- PRP VBD IN CD , VBN IN DT JJ NN , IN CD , CC VBZ RB VBN RB JJR IN . )
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`` There 's no more growth in the tax business -LCB- except -RCB- for increasing prices , '' the money manager added . `` EX VBZ DT JJR NN IN DT NN NN ( IN ) IN VBG NNS , '' DT NN NN VBD .
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The CompuServe subsidiary -LRB- which provides information to home-computer users -RRB- is `` where the growth is , '' he said , but its format is `` still too complicated . '' DT NNP NN ( WDT VBZ NN TO NN NNS ) VBZ `` WRB DT NN VBZ , '' PRP VBD , CC PRP$ NN VBZ `` RB RB VBN . ''
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CompuServe provides about 20 % of both sales and earnings . NNP VBZ IN CD NN IN DT NNS CC NNS .
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The tax business still provides about 70 % of earnings , on about 50 % of sales . DT NN NN RB VBZ IN CD NN IN NNS , IN IN CD NN IN NNS .
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Personnel Pool -LRB- temporary workers , mostly in the health-care area -RRB- chips in close to 25 % of sales but only about 9 % of earnings . NNP NNP ( JJ NNS , RB IN DT NN NN ) NNS IN RB TO CD NN IN NNS CC RB IN CD NN IN NNS .
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The shortage of nurses is crimping profit at Personnel Pool , said the second money manager . DT NN IN NNS VBZ VBG NN IN NNP NNP , VBD DT JJ NN NN .
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He concedes H&R Block is `` well-entrenched '' and `` a great company , '' but says `` it does n't grow fast enough for us . PRP VBZ NNP NNP VBZ `` JJ '' CC `` DT JJ NN , '' CC VBZ `` PRP VBZ RB VB RB RB IN PRP .
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We 're looking for something that grows faster and sells at a comparable -LCB- price-earnings -RCB- multiple . '' PRP VBP VBG IN NN WDT VBZ RBR CC VBZ IN DT JJ ( JJ ) JJ . ''
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Thomas M. Bloch , president and chief operating officer , says `` I would disagree '' that the tax business is mature . NNP NNP NNP , NN CC JJ VBG NN , VBZ `` PRP MD VB '' IN DT NN NN VBZ JJ .
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For example , he says , the company is planning to go nationwide with a new service , tested in parts of the country , aimed at taxpayers who want refunds in a hurry . IN NN , PRP VBZ , DT NN VBZ VBG TO VB JJ IN DT JJ NN , VBN IN NNS IN DT NN , VBN IN NNS WP VBP NNS IN DT NN .
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Mr. Bloch concedes that a recent diversification attempt fell through . NNP NNP VBZ IN DT JJ NN NN VBD RB .
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`` We 're still interested -LCB- in diversifying -RCB- , '' he says , `` but we 'd rather be prudent than make a mistake . '' `` PRP VBP RB JJ ( IN VBG ) , '' PRP VBZ , `` CC PRP MD RB VB JJ IN NN DT NN . ''
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He also says CompuServe 's earnings continue to grow `` 20 % to 30 % a year '' in spite of tough competition from giants like Sears and IBM . PRP RB VBZ NNP POS NNS VBP TO VB `` CD NN TO CD NN DT NN '' IN NN IN JJ NN IN NNS IN NNP CC NNP .
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And he says Block 's other businesses are growing , although less consistently . CC PRP VBZ NNP POS JJ NNS VBP VBG , IN RBR RB .
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H&R Block -LRB- NYSE ; Symbol:HRB -RRB- NNP NNP ( NNP : NNP )
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Business : Tax Preparation NN : NNP NN
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Year ended April 30 , 1989 : NN VBN NNP CD , CD :
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Revenue : $ 899.6 million NN : $ CD CD
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Net loss : $ 100.2 million ; $ 1.90 a share JJ NN : $ CD CD : $ CD DT NN
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First quarter , July 31 , 1989 : JJ NN , NNP CD , CD :
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Per-share earnings : Loss of 8 cents vs. loss of 9 cents JJ NNS : NN IN CD NNS IN NN IN CD NNS
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Average daily trading volume : 145,954 shares NNP JJ NN NN : CD NNS
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Philips Industries Inc. said its board authorized the redemption Dec. 6 of the company 's $ 1 cumulative convertible special preferred stock at $ 37.50 a share , not including a 25 cent dividend for the current quarter , and the $ 3 cumulative convertible preferred stock at $ 75 , plus a 75 cent dividend for the current quarter . NNP NNP NNP VBD PRP$ NN VBD DT NN NNP CD IN DT NN POS $ CD JJ JJ JJ JJ NN IN $ CD DT NN , RB VBG DT CD NN NN IN DT JJ NN , CC DT $ CD JJ JJ JJ NN IN $ CD , CC DT CD NN NN IN DT JJ NN .
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The Dayton , Ohio , maker of parts for the building and transportation industries said holders of the two issues can convert their stock into common shares through the close of business Dec. 1 . DT NNP , NNP , NN IN NNS IN DT NN CC NN NNS VBD NNS IN DT CD NNS MD VB PRP$ NN IN JJ NNS IN DT NN IN NNP NNP CD .
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Each $ 1 cumulative share can be converted into 4.92 common shares ; the ratio on the $ 3 cumulative is eight common shares for each $ 3 cumulative preferred . DT $ CD JJ NN MD VB VBN IN CD JJ NNS : DT NN IN DT $ CD JJ VBZ CD JJ NNS IN DT $ CD JJ JJ .
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Philips did n't indicate how many shares outstanding it has of either issue . NNP VBD RB VB WRB JJ NNS JJ PRP VBZ IN DT NN .
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Company officials could n't be reached . NN NNS MD RB VB VBN .
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Earlier this month the company said its board approved a proposed management-led leveraged buy-out at $ 25.50 a share , or $ 750 million . RBR DT NN DT NN VBD PRP$ NN VBD DT VBN JJ JJ NN IN $ CD DT NN , CC $ CD CD .
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-LRB- During its centennial year , The Wall Street Journal will report events of the past century that stand as milestones of American business history . -RRB- ( IN PRP$ NN NN , DT NNP NNP NNP MD VB NNS IN DT JJ NN WDT VBP IN NNS IN JJ NN NN . )
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PUTS AND CALLS , STOCK MARKET PATOIS for options to sell or buy a company 's shares , were long an arcane Wall Street art best left to the experts , who used them either as a hedge or for pure speculation . NNPS CC NNPS , NNP NNP NNP IN NNS TO VB CC VB DT NN POS NNS , VBD JJ DT JJ NNP NNP NN RBS VBN TO DT NNS , WP VBD PRP DT IN DT NN CC IN JJ NN .
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Options lost some of their mystery in 1973 when the Chicago Board of Trade set up a special exchange to deal in them . NNS VBD DT IN PRP$ NN IN CD WRB DT NNP NNP IN NNP VBD IN DT JJ NN TO VB IN PRP .
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Until then , options had been traded only in the over-the-counter market , mostly in New York , and in an almost invisible secondary market operating chiefly by telephone . IN RB , NNS VBD VBN VBN RB IN DT JJ NN , RB IN NNP NNP , CC IN DT RB JJ JJ NN VBG RB IN NN .
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The Chicago Board of Trade , the No. 1 U.S. grain market , had long chafed under the attention won by its innovative archrival , the livestock-dealing Mercantile Exchange . DT NNP NNP IN NNP , DT NN CD NNP NN NN , VBD RB VBN IN DT NN VBN IN PRP$ JJ NN , DT JJ NNP NNP .
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So the men who ran the grain pits listened when Joseph Sullivan , a 35-year-old former Wall Street Journal newsman , offered them the idea of all-options trading . RB DT NNS WP VBD DT NN NNS VBD WRB NNP NNP , DT JJ JJ NNP NNP NNP NN , VBD PRP DT NN IN JJ NN .
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After four year of tinkering and $ 2.4 million in seed money , the board set up the new marketplace , titled it the Chicago Board Options Exchange , and named Sullivan its first president . IN CD NN IN NN CC $ CD CD IN NN NN , DT NN VBN IN DT JJ NN , VBD PRP DT NNP NNP NNP NNP , CC VBD NNP PRP$ JJ NN .
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The beginnings were modest . DT NNS VBD JJ .
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The CBOE opened for business on April 26 , 1973 , in what had been a Board of Trade lunchroom . DT NNP VBD IN NN IN NNP CD , CD , IN WP VBD VBN DT NNP IN NNP NN .
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It listed just 16 options to buy a `` pilot list '' of stocks on the New York Stock Exchange . PRP VBD RB CD NNS TO VB DT `` NN NN '' IN NNS IN DT NNP NNP NNP NNP .
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-LRB- Puts , or sell options , would not be added until 1977 . -RRB- ( VBZ , CC VB NNS , MD RB VB VBN IN CD . )
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The 282 members had paid $ 10,000 apiece for seats . DT CD NNS VBD VBN $ CD RB IN NNS .
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-LRB- The 1989 price : $ 250,000 . -RRB- ( DT CD NN : $ CD . )
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The first day 's business was 911 contracts -LRB- each for 100 shares of one of the listed stocks -RRB- . DT JJ NN POS NN VBD CD NNS ( DT IN CD NNS IN CD IN DT VBN NNS ) .
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By the end of 1973 , the number of `` underlying '' Big Board stocks had been increased to 50 and the options exchange had run up volume of 1.1 million contracts . IN DT NN IN CD , DT NN IN `` VBG '' NNP NNP NNS VBD VBN VBN TO CD CC DT NNS VBP VBD VBN IN NN IN CD CD NNS .
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A year later , it was 5.7 million . DT NN RB , PRP VBD CD CD .
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Last year , more than 1,800 traders on the CBOE bought and sold 112 million contracts on 178 listed stocks , 60 % of all U.S. listed options trading . JJ NN , JJR IN CD NNS IN DT NNP VBD CC VBN CD CD NNS IN CD VBN NNS , CD NN IN DT NNP VBD NNS NN .
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The new exchange drew instant recognition from an unwelcome quarter . DT JJ NN VBD NN NN IN DT JJ NN .
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The government , campaigning against fixed brokerage commissions , promptly sued the CBOE over its minimum-fee system . DT NN , VBG IN VBN NN NNS , RB VBD DT NNP IN PRP$ JJ NN .
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The Nuclear Regulatory Commission ruled unanimously that the financial troubles facing the Seabrook , N.H. , nuclear-power plant have no impact on whether the plant receives a full-power license . DT NNP NNP NNP VBD RB IN DT JJ NNS VBG DT NNP , NNP , JJ NN VBP DT NN IN IN DT NN VBZ DT JJ NN .
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Massachusetts Attorney General James Shannon , opposing the license , said he will appeal the ruling in federal court . NNP NNP NNP NNP NNP , VBG DT NN , VBD PRP MD VB DT NN IN JJ NN .
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Seabrook officials said the plant could receive a full-power license by the end of the year . NNP NNS VBD DT NN MD VB DT JJ NN IN DT NN IN DT NN .
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The NRC rejected Mr. Shannon 's argument that Public Service Co. of New Hampshire , which owns the largest share of Seabrook , and 11 other owners are financially unable to guarantee the plant 's safe operation . DT NNP VBD NNP NNP POS NN IN NNP NNP NNP IN NNP NNP , WDT VBZ DT JJS NN IN NNP , CC CD JJ NNS VBP RB JJ TO VB DT NN POS JJ NN .
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Mr. Shannon was seeking a waiver of NRC policy that ignores financial considerations in making licensing decisions . NNP NNP VBD VBG DT NN IN NNP NN WDT VBZ JJ NNS IN VBG NN NNS .
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In its ruling , the NRC said that because Seabrook will be allowed to charge rates sufficient to run the plant and make payments on past construction costs , consideration of the owners ' financial condition is pointless . IN PRP$ NN , DT NNP VBD IN IN NNP MD VB VBN TO VB NNS JJ TO VB DT NN CC VB NNS IN JJ NN NNS , NN IN DT NNS POS JJ NN VBZ JJ .
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`` The commissioners found the circumstances of the case did n't undercut the assurance from government rate setters of available funds adequate for safe operation , '' said a commission spokesman . `` DT NNS VBD DT NNS IN DT NN VBD RB VB DT NN IN NN NN NNS IN JJ NNS JJ IN JJ NN , '' VBD DT NN NN .
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In January 1988 , the utility filed for protection under Chapter 11 of the federal Bankruptcy Code , allowing it to continue to operate while protected from creditors ' lawsuits . IN NNP CD , DT NN VBN IN NN IN NN CD IN DT JJ NNP NNP , VBG PRP TO VB TO VB IN VBN IN NNS POS NNS .
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Bristol-Myers Squibb Co. , New York , the newly merged drug and health-care-product company , reported record third-quarter earnings for both companies in the merger . NNP NNP NNP , NNP NNP , DT RB VBN NN CC NN NN , VBD NN JJ NNS IN DT NNS IN DT NN .
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Bristol-Myers Co. and Squibb Corp. , Princeton , N.J. , merged Oct. 4 , but the new company reported third-period earnings for both companies . NNP NNP CC NNP NNP , NNP , NNP , VBN NNP CD , CC DT JJ NN VBD JJ NNS IN DT NNS .
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For the fourth quarter , Bristol-Myers Squibb will report one set of earnings . IN DT JJ NN , NNP NNP MD VB CD VBN IN NNS .
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Bristol-Myers said net income rose 15 % to $ 266.2 million , or 93 cents a share , from $ 232.3 million , or 81 cents a share , a year earlier . NNP VBD JJ NN VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Sales gained 5 % to $ 1.59 billion from $ 1.52 billion . NNS VBD NN NN TO $ CD CD IN $ CD CD .
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Squibb Corp. said net rose 17 % to $ 144.5 million , or $ 1.47 a share , from $ 123 million , or $ 1.25 a share . NNP NNP VBD NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN .
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Sales were $ 730.1 million , up 7 % from $ 679.5 million . NNS VBD $ CD CD , IN CD NN IN $ CD CD .
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In New York Stock Exchange composite trading , Bristol-Myers Squibb rose $ 1.75 to $ 52.75 . IN NNP NNP NNP NNP JJ NN , NNP NNP VBD $ CD TO $ CD .
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PPG Industries Inc. , hurt by softness in the U.S. automotive and construction industries , said third-quarter net income fell 5.5 % to $ 106.7 million , or 97 cents a share , from $ 112.9 million , or $ 1.03 a share , a year ago . NNP NNP NNP , VBN IN NN IN DT NNP JJ CC NN NNS , VBD JJ JJ NN VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RB .
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Sales were nearly identical to the year-earlier $ 1.36 billion . NNS VBD RB JJ TO DT JJ $ CD CD .
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The drop in earnings did n't surprise analysts who said the Pittsburgh glass , coatings and chemical concern had been predicting a slow quarter because of the sluggish construction industry , a major market for the company 's flat glass . DT NN IN NNS VBD RB VB NNS WP VBD DT NNP NN , NNS CC NN NN VBD VBN VBG DT JJ NN IN IN DT JJ NN NN , DT JJ NN IN DT NN POS JJ NN .
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Glass sales to Canadian and European auto makers and sales of replacement auto glass in all markets increased . NN NNS TO JJ CC JJ NN NNS CC NNS IN NN NN NN IN DT NNS VBN .
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The coating segment also posted higher sales particularly in North America and Europe . DT NN NN RB VBD JJR NNS RB IN NNP NNP CC NNP .
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But sale increases were offset by slumping sales in flat glass and fiberglass reinforcements , the company said . CC NN NNS VBD VBN IN VBG NNS IN JJ NN CC NNS NNS , DT NN VBD .
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Also , chemicals sales were slightly down because of lower prices for vinyl chloride monomer and other chlorine derivatives . RB , NNS NNS VBD RB RB IN IN JJR NNS IN NN NN NN CC JJ NN NNS .
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In New York Stock Exchange composite trading , PPG closed at $ 41 a share , down 37.5 cents . IN NNP NNP NNP NNP JJ NN , NNP VBD IN $ CD DT NN , RB CD NNS .
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Jefferies Group Inc. said third-quarter net income fell 4 % , to $ 2.2 million , or 35 cents a share , from $ 2.3 million , or 31 cents a share on more shares , a year earlier . NNP NNP NNP VBD JJ JJ NN VBD CD NN , TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN IN JJR NNS , DT NN RBR .
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Revenue rose 15 % , to $ 36 million from $ 31.2 million . NN VBD CD NN , TO $ CD CD IN $ CD CD .
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Jefferies , a Los Angeles holding company primarily engaged in securities trading , also said stock market declines since the quarter ended Sept. 30 created an unrealized pretax loss of about $ 6 million in its risk arbitrage account . NNP , DT NNP NNP VBG NN RB VBD IN NNS NN , RB VBD NN NN NNS IN DT NN VBN NNP CD VBN DT JJ JJ NN IN RB $ CD CD IN PRP$ NN NN NN .
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For the nine months , Jefferies said net fell 39 % , to $ 6.8 million , or $ 1.07 a share , from $ 11.1 million , or $ 1.50 a share . IN DT CD NNS , NNP VBD NN VBD CD NN , TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN .
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Revenue fell 3 % , to $ 105.2 million from $ 108.4 million . NN VBD CD NN , TO $ CD CD IN $ CD CD .
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Sony Corp. , New York , said its bids for Columbia Pictures Entertainment Inc. and Guber-Peters Entertainment Co. have been cleared by federal antitrust regulators . NNP NNP , NNP NNP , VBD PRP$ NNS IN NNP NNP NNP NNP CC NNP NNP NNP VBP VBN VBN IN JJ JJ NNS .
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The Japanese company said the waiting period under the Hart-Scott-Rodino antitrust act for the $ 3.4 billion bid for Columbia and the $ 200 million offer for Guber-Peters expired Monday . DT JJ NN VBD DT VBG NN IN DT NNP JJ NN IN DT $ CD CD NN IN NNP CC DT $ CD CD NN IN NNP VBD NNP .
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Sony has agreed to buy both companies , but is in a legal battle with Warner Communications Inc. over the services of producers Peter Guber and Jon Peters . NNP VBZ VBN TO VB DT NNS , CC VBZ IN DT JJ NN IN NNP NNP NNP IN DT NNS IN NNS NNP NNP CC NNP NNP .
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In a filing with the Securities and Exchange Commission , Sony also said two more suits have been filed opposing the company 's agreement to buy Columbia . IN DT NN IN DT NNP CC NNP NNP , NNP RB VBD CD JJR NNS VBP VBN VBN VBG DT NN POS NN TO VB NNP .
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Sony added that a hearing has been set for Thursday in the Delaware Chancery Court in one of the suits . NNP VBD IN DT NN VBZ VBN VBN IN NNP IN DT NNP NNP NNP IN CD IN DT NNS .
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Thursday , October 19 , 1989 NNP , NNP CD , CD
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The key U.S. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions . DT JJ NNP CC JJ JJ NN NNS IN VBP DT NN TO JJ NNS CC VBP RB RB VB JJ NNS .
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PRIME RATE : 10 1\/2 % . JJ NN : CD CD NN .
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The base rate on corporate loans at large U.S. money center commercial banks . DT NN NN IN JJ NNS IN JJ NNP NN NN JJ NNS .
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FEDERAL FUNDS : 8 3\/4 % high , 8 5\/8 % low , 8 11\/16 % near closing bid , 8 11\/16 % offered . JJ NNS : CD CD NN JJ , CD CD NN JJ , CD CD NN IN VBG NN , CD CD NN VBN .
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Reserves traded among commercial banks for overnight use in amounts of $ 1 million or more . NNS VBN IN JJ NNS IN JJ NN IN NNS IN $ CD CD CC JJR .
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Source : Fulton Prebon -LRB- U.S.A . -RRB- Inc . NN : NNP NNP ( NNP . ) NNP .
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DISCOUNT RATE : 7 % . NN NN : CD NN .
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The charge on loans to depository institutions by the New York Federal Reserve Bank . DT NN IN NNS TO NN NNS IN DT NNP NNP NNP NNP NNP .
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CALL MONEY : 9 3\/4 % to 10 % . NN NN : CD CD NN TO CD NN .
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The charge on loans to brokers on stock exchange collateral . DT NN IN NNS TO NNS IN NN NN NN .
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COMMERCIAL PAPER placed directly by General Motors Acceptance Corp. : 8.45 % 30 to 44 days ; 8.25 % 45 to 73 days ; 8.325 % 74 to 99 days ; 7.75 % 100 to 179 days ; 7.50 % 180 to 270 days . JJ NN VBN RB IN NNP NNPS NNP NNP : CD NN CD TO CD NNS : CD NN CD TO CD NNS : CD NN CD TO CD NNS : CD NN CD TO CD NNS : CD NN CD TO CD NNS .
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COMMERCIAL PAPER : High-grade unsecured notes sold through dealers by major corporations in multiples of $ 1,000 : 8.525 % 30 days ; 8.425 % 60 days ; 8.375 % 90 days . JJ NN : JJ JJ NNS VBN IN NNS IN JJ NNS IN NNS IN $ CD : CD NN CD NNS : CD NN CD NNS : CD NN CD NNS .
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CERTIFICATES OF DEPOSIT : 8.05 % one month ; 8.02 % two months ; 8 % three months ; 7.98 % six months ; 7.95 % one year . NNS IN NN : CD NN CD NN : CD NN CD NNS : CD NN CD NNS : CD NN CD NNS : CD NN CD NN .
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Average of top rates paid by major New York banks on primary new issues of negotiable C.D.s , usually on amounts of $ 1 million and more . NNP IN JJ NNS VBN IN JJ NNP NNP NNS IN JJ JJ NNS IN JJ NNS , RB IN NNS IN $ CD CD CC JJR .
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The minimum unit is $ 100,000 . DT JJ NN VBZ $ CD .
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Typical rates in the secondary market : 8.60 % one month ; 8.60 % three months ; 8.45 % six months . JJ NNS IN DT JJ NN : CD NN CD NN : CD NN CD NNS : CD NN CD NNS .
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BANKERS ACCEPTANCES : 8.45 % 30 days ; 8.32 % 60 days ; 8.32 % 90 days ; 8.17 % 120 days ; 8.08 % 150 days ; 7.98 % 180 days . NNS NNS : CD NN CD NNS : CD NN CD NNS : CD NN CD NNS : CD NN CD NNS : CD NN CD NNS : CD NN CD NNS .
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Negotiable , bank-backed business credit instruments typically financing an import order . JJ , JJ NN NN NNS RB VBG DT NN NN .
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LONDON LATE EURODOLLARS : 8 11\/16 % to 8 9\/16 % one month ; 8 11\/16 % to 8 9\/16 % two months ; 8 11\/16 % to 8 9\/16 % three months ; 8 5\/8 % to 8 1\/2 % four months ; 8 9\/16 % to 8 7\/16 % five months ; 8 9\/16 % to 8 7\/16 % six months . NNP JJ NNS : CD CD NN TO CD CD NN CD NN : CD CD NN TO CD CD NN CD NNS : CD CD NN TO CD CD NN CD NNS : CD CD NN TO CD CD NN CD NNS : CD CD NN TO CD CD NN CD NNS : CD CD NN TO CD CD NN CD NNS .
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LONDON INTERBANK OFFERED RATES -LRB- LIBOR -RRB- : 8 3\/4 % one month ; 8 11\/16 % three months ; 8 9\/16 % six months ; 8 9\/16 % one year . NNP NNP NNP NNS ( NNP ) : CD CD NN CD NN : CD CD NN CD NNS : CD CD NN CD NNS : CD CD NN CD NN .
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The average of interbank offered rates for dollar deposits in the London market based on quotations at five major banks . DT NN IN NN VBD NNS IN NN NNS IN DT NNP NN VBN IN NNS IN CD JJ NNS .
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FOREIGN PRIME RATES : Canada 13.50 % ; Germany 8.50 % ; Japan 4.875 % ; Switzerland 8.50 % ; Britain 15 % . JJ JJ NNS : NNP CD NN : NNP CD NN : NNP CD NN : NNP CD NN : NNP CD NN .
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These rate indications are n't directly comparable ; lending practices vary widely by location . DT NN NNS VBP RB RB JJ : NN NNS VBP RB IN NN .
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TREASURY BILLS : Results of the Monday , October 16 , 1989 , auction of short-term U.S. government bills , sold at a discount from face value in units of $ 10,000 to $ 1 million : 7.37 % 13 weeks ; 7.42 % 26 weeks . NN NNS : NNS IN DT NNP , NNP CD , CD , NN IN NNP NNP NN NNS , VBN IN DT NN IN NN NN IN NNS IN $ CD TO $ CD CD : CD NN CD NNS : CD NN CD NNS .
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FEDERAL HOME LOAN MORTGAGE CORP . -LRB- Freddie Mac -RRB- : Posted yields on 30-year mortgage commitments for delivery within 30 days . NNP NNP NNP NNP NNP . ( NNP NNP ) : VBN NNS IN JJ NN NNS IN NN IN CD NNS .
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9.87 % , standard conventional fixed-rate mortgages ; 7.875 % , 2 % rate capped one-year adjustable rate mortgages . CD NN , JJ JJ JJ NNS : CD NN , CD NN NN VBD JJ JJ NN NNS .
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Source : Telerate Systems Inc . NN : NNP NNP NNP .
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FEDERAL NATIONAL MORTGAGE ASSOCIATION -LRB- Fannie Mae -RRB- : Posted yields on 30 year mortgage commitments for delivery within 30 days -LRB- priced at par -RRB- 9.81 % , standard conventional fixed-rate mortgages ; 8.70 % , 6\/2 rate capped one-year adjustable rate mortgages . NNP NNP NNP NNP ( NNP NNP ) : VBN NNS IN CD NN NN NNS IN NN IN CD NNS ( VBN IN NN ) CD NN , JJ JJ JJ NNS : CD NN , CD NN VBD JJ JJ NN NNS .
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Source : Telerate Systems Inc . NN : NNP NNP NNP .
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MERRILL LYNCH READY ASSETS TRUST : 8.50 % . NNP NNP NNP NNP NNP : CD NN .
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Annualized average rate of return after expenses for the past 30 days ; not a forecast of future returns . VBN JJ NN IN NN IN NNS IN DT JJ CD NNS : RB DT NN IN NN NNS .
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China said the question of Taiwan 's membership in the General Agreement on Tariffs and Trade should be considered only after China 's own membership in the 97-nation organization is restored . NNP VBD DT NN IN NNP POS NN IN DT NNP NNP IN NNPS CC NNP MD VB VBN RB IN NNP POS JJ NN IN DT JJ NN VBZ VBN .
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Both China and Taiwan are seeking seats in GATT , which sponsors trade-liberalizing agreements and sets world-commerce rules . DT NNP CC NNP VBP VBG NNS IN NNP , WDT VBZ JJ NNS CC VBZ JJ NNS .
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`` As one of China 's provinces , Taiwan has no right to join GATT on its own , '' Foreign Ministry spokesman Li Zhaoxing said . `` IN CD IN NNP POS NNS , NNP VBZ DT NN TO VB NNP IN PRP$ JJ , '' NNP NNP NN NNP NNP VBD .
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China , under the Nationalist government of Chiang Kai-shek , was a founding member of GATT in 1947 . NNP , IN DT JJ NN IN NNP NNP , VBD DT NN NN IN NNP IN CD .
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The Nationalists withdrew in 1950 , after their flight to Taiwan , and the Communist government in Beijing applied for restoration of China 's membership in July 1986 . DT NNPS VBD IN CD , IN PRP$ NN TO NNP , CC DT NNP NN IN NNP VBD IN NN IN NNP POS NN IN NNP CD .
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The U.S. has voiced opposition to China 's bid for GATT membership , saying China has yet to undertake needed economic reforms . DT NNP VBZ VBN NN TO NNP POS NN IN NNP NN , VBG NNP VBZ RB TO VB VBN JJ NNS .
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Japan 's biggest women 's underwear maker , Wacoal Corp. , said that it developed a sports car that it plans to market in two years . NNP POS JJS NNS POS NN NN , NNP NNP , VBD IN PRP VBD DT NNS NN IN PRP VBZ TO VB IN CD NNS .
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The `` Jiotto Caspita '' can run at over 188 miles an hour , a company spokesman said . DT `` NNP NNP '' MD VB IN IN CD NNS DT NN , DT NN NN VBD .
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The base price of the car is estimated at 30 million yen -LRB- about $ 213,000 -RRB- . DT NN NN IN DT NN VBZ VBN IN CD CD NN ( RB $ CD ) .
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Wacoal said it intends to produce the cars through a car manufacturer . NNP VBD PRP VBZ TO VB DT NNS IN DT NN NN .
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Along with the car , Wacoal plans to launch a series of Caspita-brand men 's underwear . IN IN DT NN , NNP VBZ TO VB DT NN IN JJ NNS POS NN .
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`` Our image is a company that makes women 's products , '' said a Wacoal spokesman . `` PRP$ NN VBZ DT NN WDT VBZ NNS POS NNS , '' VBD DT NNP NN .
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`` Now , we 're going to sell to men . '' `` RB , PRP VBP VBG TO VB TO NNS . ''
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The British satirical magazine Private Eye won an appeal against the size of a $ 960,000 libel award to Sonia Sutcliffe , the estranged wife of the `` Yorkshire Ripper '' mass murderer . DT JJ JJ NN NNP NNP VBD DT NN IN DT NN IN DT $ CD NN NN TO NNP NNP , DT VBN NN IN DT `` NNP NNP '' NN NN .
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An appeals-court panel slashed all but $ 40,000 from the award , the largest ever set by a British jury , pending a reassessment of the damages . DT NN NN VBD DT CC $ CD IN DT NN , DT JJS RB VBN IN DT JJ NN , VBG DT NN IN DT NNS .
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But the panel dismissed the magazine 's contention that it had n't libeled Mrs. Sutcliffe when it accused her of trying to sell her story to capitalize on the notoriety of her husband . CC DT NN VBD DT NN POS NN IN PRP VBD RB VBN NNP NNP WRB PRP VBD PRP IN VBG TO VB PRP$ NN TO VB IN DT NN IN PRP$ NN .
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Private Eye had been threatened with closure because it could n't afford the libel payment . NNP NNP VBD VBN VBN IN NN IN PRP MD RB VB DT NN NN .
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Senshukai Co. , a travel agent based in Osaka , Japan , announced that it and Nissho Iwai Corp. , a major Japanese trading house , will jointly build a 130-unit condominium in Queensland , Australia . NNP NNP , DT NN NN VBN IN NNP , NNP , VBD IN PRP CC NNP NNP NNP , DT JJ JJ NN NN , MD RB VB DT JJ NN IN NNP , NNP .
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Senshukai said the partners plan to rent to tourists but will also sell to interested parties . NNP VBD DT NNS VBP TO VB TO NNS CC MD RB VB TO JJ NNS .
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Senshukai has a 60 % stake in the venture and Nissho Iwai has the rest . NNP VBZ DT CD NN NN IN DT NN CC NNP NNP VBZ DT NN .
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Construction of the 34-floor building will begin next May and should be completed in April 1992 . NN IN DT JJ NN MD VB JJ NNP CC MD VB VBN IN NNP CD .
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Units will cost from 500,000 to 3.5 million Australian dollars -LRB- about US$ 386,000 to US$ 2.7 million -RRB- . NNP MD VB IN CD TO CD CD JJ NNS ( IN $ CD TO $ CD CD ) .
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The Soviet Union has halted construction of two Chernobyl-type nuclear reactors and is reassessing the future of 12 other existing reactors . DT NNP NNP VBZ VBN NN IN CD JJ JJ NNS CC VBZ VBG DT NN IN CD JJ VBG NNS .
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Viktor Sidorenko , vice chairman of the State Committee on Nuclear Safety , said the two reactors were at Kursk and Smolensk . NNP NNP , NN NN IN DT NNP NNP IN NNP NNP , VBD DT CD NNS VBD IN NNP CC NNP .
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News of the halt comes amid growing anger in the Ukraine and Byelorussia over continuing high levels of radiation from Chernobyl . NNS IN DT NN VBZ IN VBG NN IN DT NNP CC NNP IN VBG JJ NNS IN NN IN NNP .
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A former vice president of the Singapore branch of Drexel Burnham Lambert Group Inc. was charged in court yesterday on 19 counts of cheating . DT JJ NN NN IN DT NNP NN IN NNP NNP NNP NNP NNP VBD VBN IN NN NN IN CD NNS IN NN .
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Francis Dang , 41 , is alleged to have been involved in cheating Drexel Burnham Lambert of up to 2.1 million Singapore dollars -LRB- US$ 1.1 million -RRB- by carrying out unauthorized transactions on the London Commodities Exchange and the International Petroleum Exchange . NNP NNP , CD , VBZ VBN TO VB VBN VBN IN NN NNP NNP NNP IN IN TO CD CD NNP NNS ( $ CD CD ) IN VBG RP JJ NNS IN DT NNP NNP NNP CC DT NNP NNP NNP .
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Mr. Dang is alleged to have used the account of Singapore hotel and property magnate Ong Beng Seng to effect the transactions . NNP NNP VBZ VBN TO VB VBN DT NN IN NNP NN CC NN NN NNP NNP NNP TO VB DT NNS .
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Japan says its economic growth will fall sharply if it cuts back on the use of oil , coal and gas to cap emissions of carbon dioxide . NNP VBZ PRP$ JJ NN MD VB RB IN PRP VBZ RB IN DT NN IN NN , NN CC NN TO VB NNS IN NN NN .
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A Ministry of International Trade and Industry official said that a study found that Japan 's annual economic growth rate would eventually be only 0.8 % if carbon-dioxide emissions remained at this year 's level of 300 million tons . DT NNP IN NNP NNP CC NN NN VBD IN DT NN VBD IN NNP POS JJ JJ NN NN MD RB VB RB CD NN IN NN NNS VBD IN DT NN POS NN IN CD CD NNS .
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The study will support arguments against capping carbon-dioxide emissions that Japan will make at a U.N.-backed conference on atmospheric pollution next month . DT NN MD VB NNS IN VBG NN NNS IN NNP MD VB IN DT JJ NN IN JJ NN JJ NN .
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The study said Japan 's carbon-dioxide emissions would slightly more than double by 2010 unless the nation reduced its dependence on fossil fuels . DT NN VBD NNP POS NN NNS MD RB JJR IN JJ IN CD IN DT NN VBD PRP$ NN IN JJ NNS .
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It said that expanding nuclear-power capability is the quickest way to lessen that dependence . PRP VBD IN VBG JJ NN VBZ DT JJS NN TO VB DT NN .
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But increased reliance on nuclear power would meet stiff opposition from environmentalists , a second ministry official said . CC VBN NN IN JJ NN MD VB JJ NN IN NNS , DT JJ NN NN VBD .
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Just in time for Halloween , Britain 's Oxford University Press is publishing a `` Dictionary of Superstitions . '' RB IN NN IN NNP , NNP POS NNP NNP NNP VBZ VBG DT `` NNP IN NNPS . ''
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The books 1,500 entries include stepping on cracks and knocking on wood ... . DT NNS CD NNS VBP VBG IN NNS CC VBG IN NN : .
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In New Zealand 's tiny township of Kaitaia , which has had direct dialing for less than a year , about 30 angry phone-company customers questioned the size of their bills . IN NNP NNP POS JJ NN IN NNP , WDT VBZ VBN JJ NN IN JJR IN DT NN , IN CD JJ NN NNS VBD DT NN IN PRP$ NNS .
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It turned out their children had been dialing a `` sex fantasy '' service in the U.S. . PRP VBD RP PRP$ NNS VBD VBN VBG DT `` NN NN '' NN IN DT NNP .
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Slowing sales of its profitable Jeep Cherokee and Wagoneer sport utility vehicles are forcing Chrysler Corp. to temporarily idle its Toledo , Ohio , assembly plant for the first time since April 1986 . VBG NNS IN PRP$ JJ NNP NNP CC NNP NN NN NNS VBP VBG NNP NNP TO RB JJ PRP$ NNP , NNP , NN NN IN DT JJ NN IN NNP CD .
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About 5,500 hourly workers will be laid off for a week beginning Oct. 23 , and overtime has been eliminated at the plant for the fourth quarter , a Chrysler spokesman said . IN CD JJ NNS MD VB VBN IN IN DT NN VBG NNP CD , CC NN VBZ VBN VBN IN DT NN IN DT JJ NN , DT NNP NN VBD .
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That 's a significant change from earlier this year when the plant worked substantial overtime only to have sales fall short of the company 's bullish expectations . DT VBZ DT JJ NN IN RBR DT NN WRB DT NN VBD JJ NN RB TO VB NNS VB NN IN DT NN POS JJ NNS .
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Sales of Cherokee , the best-selling Jeep , and the lower-volume Wagoneer were actually up about 10 % through the end of last month . NNS IN NNP , DT JJ NN , CC DT JJ NNP VBD RB IN IN CD NN IN DT NN IN JJ NN .
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But that 's less than Chrysler officials had hoped when they set ambitious production schedules for the Toledo plant earlier this year . CC DT VBZ JJR IN NNP NNS VBD VBN WRB PRP VBD JJ NN NNS IN DT NNP NN RBR DT NN .
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Even when it became clear this spring that demand was n't coming up to expectations , Chrysler officials `` resisted '' cutting output because Cherokee and Wagoneer are `` very profitable vehicles , '' the spokesman said . RB WRB PRP VBD VB DT NN DT NN VBD RB VBG IN TO NNS , NNP NNS `` VBN '' VBG NN IN NNP CC NNP VBP `` RB JJ NNS , '' DT NN VBD .
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Instead , Chrysler officials in late May slapped $ 1,000 cash rebates on the vehicles , including the first such incentives on the popular four-door Cherokee since Chrysler bought Jeep in 1987 . RB , NNP NNS IN JJ NNP VBD $ CD NN NNS IN DT NNS , VBG DT JJ JJ NNS IN DT JJ JJ NNP IN NNP VBD NN IN CD .
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The incentives boosted sales for a while , but the pace had cooled by last month . DT NNS VBD NNS IN DT NN , CC DT NN VBD VBN IN JJ NN .
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The result : Chrysler dealers had a bloated 82-day supply of the Cherokee as of the end of last month and a 161-day supply of the Comanche pickup , which Toledo also builds . DT NN : NNP NNS VBD DT JJ JJ NN IN DT NNP IN IN DT NN IN JJ NN CC DT JJ NN IN DT NNP NN , WDT NNP RB VBZ .
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A 60-day to 65-day supply is considered normal . DT JJ TO VB NN VBZ VBN JJ .
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At Jasper Jeep-Eagle , one of the largest Jeep dealerships in the country , inventories have continued to swell . IN NNP NNP , CD IN DT JJS NN NNS IN DT NN , NNS VBP VBN TO VB .
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Steve Lowe , general manager of Jasper , Ga. , dealership , said new rebates of $ 500 to $ 1,000 on the models have stimulated sales , but not enough to significantly cut dealer stocks . NNP NNP , JJ NN IN NNP , NNP , NN , VBD JJ NNS IN $ CD TO $ CD IN DT NNS VBP VBN NNS , CC RB RB TO RB VB NN NNS .
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`` If people are n't buying , you have to close plants , '' he said . `` IN NNS VBP RB VBG , PRP VBP TO VB NNS , '' PRP VBD .
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Separately , Chrysler said it will idle for four weeks the St. Louis assembly plant that builds the Chrysler LeBaron and Dodge Daytona models . RB , NNP VBD PRP MD VB IN CD NNS DT NNP NNP NN NN WDT VBZ DT NNP NNP CC NNP NNP NNS .
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Chrysler officials said the plant is scheduled to resume production on Nov. 20. , and 3,300 hourly workers will be affected . NNP NNS VBD DT NN VBZ VBN TO VB NN IN NNP CD , CC CD JJ NNS MD VB VBN .
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General Motors Corp. , meanwhile , said it will idle for yet another week its Linden , N.J. , assembly plant , bringing to three weeks the total time that plant will be idled during October . NNP NNPS NNP , RB , VBD PRP MD VB IN RB DT NN PRP$ NNP , NNP , NN NN , VBG TO CD NNS DT JJ NN DT NN MD VB VBN IN NNP .
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GM said the assembly plant , which builds the Chevrolet Corsica and Beretta compact cars , originally was scheduled to reopen Monday but now will not resume production until Oct. 30 . NNP VBD DT NN NN , WDT VBZ DT NNP NNP CC NNP JJ NNS , RB VBD VBN TO VB NNP CC RB MD RB VB NN IN NNP CD .
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The shutdown affects 3,000 workers and will cut output by about 4,320 cars . DT NN VBZ CD NNS CC MD VB NN IN IN CD NNS .
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Sluggish sales of the Beretta and Corsica spurred GM to offer $ 800 rebates on those cars . JJ NNS IN DT NNP CC NNP VBD NNP TO VB $ CD NNS IN DT NNS .
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The Corsica and Beretta make up the highest-volume car line at Chevrolet , but sales of the cars are off 9.6 % for the year , and fell a steep 34.2 % early this month . DT NNP CC NNP VB IN DT JJ NN NN IN NNP , CC NNS IN DT NNS VBP IN CD NN IN DT NN , CC VBD DT JJ CD NN JJ DT NN .
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GM has scheduled overtime at its Lordstown , Ohio , and Janesville , Wis. , assembly plants , which build the Chevrolet Cavalier . NNP VBZ VBN NN IN PRP$ NNP , NNP , CC NNP , NNP , NN NNS , WDT VBP DT NNP NNP .
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Ford Motor Co. said it will shut down for one week its Kentucky Truck Plant because of a `` shortage of dealer orders . '' NNP NNP NNP VBD PRP MD VB RB IN CD NN PRP$ NNP NNP NNP IN IN DT `` NN IN NN NNS . ''
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The shutdown will idle 2,000 hourly employees and eliminate production of about 1,300 medium and heavy duty trucks . DT NN MD VB CD JJ NNS CC VB NN IN IN CD NN CC JJ NN NNS .
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The assembly plant is scheduled to resume production on Oct. 30 . DT NN NN VBZ VBN TO VB NN IN NNP CD .
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Meanwhile , the nine major U.S. auto makers plan to build 143,178 cars this week , down 11.7 % from 162,190 a year ago and flat with last week 's 142,117 car output . RB , DT CD JJ NNP NN NNS VBP TO VB CD NNS DT NN , RB CD NN IN CD DT NN RB CC JJ IN JJ NN POS CD NN NN .
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f - Includes Chevrolet Prizm and Toyota Corolla . NN : VBZ NNP NNP CC NNP NNP .
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r - Revised . NN : NNP .
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x - Year-to-date 1988 figure includes Volkswagen domestic-production through July . NN : JJ CD NN VBZ NNP NN IN NNP .
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LOTUS DEVELOPMENT Corp. 's net income rose 61 % in the third quarter from the year-earlier period . NNP NNP NNP POS JJ NN VBD CD NN IN DT JJ NN IN DT JJ NN .
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Yesterday 's edition misstated the percentage increase . NN POS NN VBD DT NN NN .
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First Fidelity Bancorp. , Lawrenceville , N.J. , reported a 24 % drop in third-quarter profit , because of a decline in earning assets , lower loan volume and tighter interest margins . NNP NNP NNP , NNP , NNP , VBD DT CD NN NN IN JJ NN , IN IN DT NN IN VBG NNS , JJR NN NN CC JJR NN NNS .
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The bank holding company posted net income of $ 54.4 million , or 87 cents a share , including $ 1.7 million , or three cents a share , in one-time tax benefits . DT NN VBG NN VBD JJ NN IN $ CD CD , CC CD NNS DT NN , VBG $ CD CD , CC CD NNS DT NN , IN JJ NN NNS .
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A year earlier , net was $ 71.6 million , or $ 1.22 a share . DT NN RBR , NN VBD $ CD CD , CC $ CD DT NN .
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First Fidelity said non-performing assets increased to $ 482.3 million Sept. 30 from $ 393.1 million June 30 . NNP NNP VBD JJ NNS VBN TO $ CD CD NNP CD IN $ CD CD NNP CD .
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The rise resulted from the transfer to non-accrual status of $ 96 million `` owed by two national borrowers and one local commercial real-estate customer , '' First Fidelity said . DT NN VBD IN DT NN TO JJ NN IN $ CD CD `` VBN IN CD JJ NNS CC CD JJ JJ NN NN , '' NNP NNP VBD .
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It said it does n't anticipate any loss of principal on two of the loans , comprising $ 85 million of these credits . PRP VBD PRP VBZ RB VB DT NN IN JJ IN CD IN DT NNS , VBG $ CD CD IN DT NNS .
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First Fidelity said it boosted its loan-loss provision to $ 50.9 million from $ 20.4 million a year ago , primarily because of a weaker real-estate sector in the region . NNP NNP VBD PRP VBD PRP$ NN NN TO $ CD CD IN $ CD CD DT NN RB , RB IN IN DT JJR NN NN IN DT NN .
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VIACOM Inc. 's loss narrowed to $ 21.7 million in the third quarter from $ 56.9 million a year ago . NNP NNP POS NN VBD TO $ CD CD IN DT JJ NN IN $ CD CD DT NN RB .
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Thursday 's edition misstated the narrowing . NNP POS NN VBD DT NN .
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Coastal Corp. said it signed a definitive agreement with Aruba to restart a 150,000-barrel-a-day oil refinery . NNP NNP VBD PRP VBD DT JJ NN IN NNP TO VB DT JJ NN NN .
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Coastal would n't disclose the terms . NNP MD RB VB DT NNS .
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Coastal , a Houston oil and gas company , said it expects to begin operations in October 1990 . NNP , DT NNP NN CC NN NN , VBD PRP VBZ TO VB NNS IN NNP CD .
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The company said it may install additional processing units at the refinery to produce higher octane gasolines and other products . DT NN VBD PRP MD VB JJ NN NNS IN DT NN TO VB JJR NN NNS CC JJ NNS .
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The company said it was leasing the site of the refinery from Aruba . DT NN VBD PRP VBD VBG DT NN IN DT NN IN NNP .
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Exxon Corp. built the plant but closed it in 1985 and sold off much of the equipment to dismantling contractors , from whom Coastal bought back much of the equipment . NNP NNP VBD DT NN CC VBD PRP IN CD CC VBN IN NN IN DT NN TO VBG NNS , IN WP NNP VBD JJ NN IN DT NN .
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A Coastal spokesman said the biggest expense will be to refurbish the refinery but would n't say how much that would be . DT NNP NN VBD DT JJS NN MD VB TO VB DT NN CC MD RB VB WRB JJ WDT MD VB .
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The prime minister of Aruba has said it could cost around $ 100 million . DT JJ NN IN NNP VBZ VBD PRP MD VB IN $ CD CD .
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Coastal said the refinery 's expected daily production will include 34,000 barrels of jet fuel , 32,000 barrels of low-sulfur diesel fuel , 30,000 barrels of naphtha , 17,000 barrels of residual fuel oil , 8,000 barrels of asphalt and 25,000 barrels of low-sulfur catalytic cracker feedstock . NNP VBD DT NN POS VBN JJ NN MD VB CD NNS IN NN NN , CD NNS IN JJ NN NN , CD NNS IN NN , CD NNS IN JJ NN NN , CD NNS IN NN CC CD NNS IN JJ JJ NN NN .
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Loral Corp. said fiscal second-quarter net income was $ 19.8 million , or 79 cents a share , compared with year-earlier earnings from continuing operations of $ 15.6 million , or 62 cents a share . NNP NNP VBD JJ JJ JJ NN VBD $ CD CD , CC CD NNS DT NN , VBN IN JJ NNS IN VBG NNS IN $ CD CD , CC CD NNS DT NN .
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Year-earlier net of $ 21 million , or 84 cents a share , included the results of Loral 's former Aircraft Braking Systems and Engineered Fabrics divisions , which were sold April 27 to the company 's chairman , Bernard L. Schwartz . JJ NN IN $ CD CD , CC CD NNS DT NN , VBD DT NNS IN NNP POS JJ NNP NNP NNPS CC NNP NNP NNS , WDT VBD VBN NNP CD TO DT NN POS NN , NNP NNP NNP .
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The defense electronics concern attributed the operating improvement to higher profit margins and lower net interest expense . DT NN NNS VBP VBD DT VBG NN TO JJR NN NNS CC JJR JJ NN NN .
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Loral also reported that its bookings more than doubled to $ 654 million in the quarter , ended Sept. 30 , from $ 257 million , in the year-before period . NNP RB VBD IN PRP$ NNS RBR IN VBN TO $ CD CD IN DT NN , VBN NNP CD , IN $ CD CD , IN DT JJ NN .
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The increase was due mainly to a $ 325 million order from Turkey to equip its fleet of F-16 fighters with Loral 's ALQ-178 Rapport III electronic countermeasures system . DT NN VBD JJ RB TO DT $ CD CD NN IN NNP TO VB PRP$ NN IN NNP NNS IN NNP POS NNP NNP NNP JJ NNS NN .
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The order is the biggest in the company 's history . DT NN VBZ DT JJS IN DT NN POS NN .
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Sales in the latest period edged up to $ 295.7 million from $ 293.9 million . NNS IN DT JJS NN VBD IN TO $ CD CD IN $ CD CD .
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Mr. Schwartz said the recent increase in orders `` puts us well on the way to our goal of $ 1.6 billion in bookings for the year . '' NNP NNP VBD DT JJ NN IN NNS `` VBZ PRP RB IN DT NN TO PRP$ NN IN $ CD CD IN NNS IN DT NN . ''
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He added : `` I expect to see the earnings momentum we experienced this quarter continue for the rest of the year . '' PRP VBD : `` PRP VBP TO VB DT NNS NN PRP VBD DT NN VB IN DT NN IN DT NN . ''
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Loral said it expects sales to accelerate in both the third and fourth quarters of this fiscal year . NNP VBD PRP VBZ NNS TO VB IN DT DT JJ CC JJ NNS IN DT JJ NN .
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Loral 's profit from continuing operations for the first six months of fiscal 1990 was $ 36.4 million , or $ 1.44 a share , up 31 % from $ 27.8 million , or $ 1.11 a share , a year earlier . NNP POS NN IN VBG NNS IN DT JJ CD NNS IN JJ CD VBD $ CD CD , CC $ CD DT NN , IN CD NN IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Net income fell 8.6 % to $ 37.1 million , or $ 1.43 a share , from $ 40.6 million , or $ 1.56 a share . JJ NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN .
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Fiscal first-half sales slipped 3.9 % to $ 528.4 million from $ 549.9 million . JJ JJ NNS VBD CD NN TO $ CD CD IN $ CD CD .
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Bookings for the first half totaled $ 813 million , compared with the $ 432 million recorded last year . NNS IN DT JJ NN VBD $ CD CD , VBN IN DT $ CD CD VBN JJ NN .
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In New York Stock Exchange composite trading , Loral closed at $ 33.25 , down 37.5 cents . IN NNP NNP NNP NNP JJ NN , NNP VBD IN $ CD , RB CD NNS .
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HealthVest said two of its lenders have given it notices of default on bank loans and said they may take actions to recover their loans . NNP VBD CD IN PRP$ NNS VBP VBN PRP NNS IN NN IN NN NNS CC VBD PRP MD VB NNS TO VB PRP$ NNS .
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HealthVest , an Austin , Texas , real estate investment trust , said that Chemical Bank , the lead bank under its domestic bank agreement , told it that if $ 3.3 million owed to the bank group is n't paid by today , the group will call the $ 120 million that HealthVest has outstanding under the credit line . NNP , DT NNP , NNP , JJ NN NN NN , VBD IN NNP NNP , DT NN NN IN PRP$ JJ NN NN , VBD PRP IN IN $ CD CD VBN TO DT NN NN VBZ RB VBN IN NN , DT NN MD VB DT $ CD CD IN NNP VBZ JJ IN DT NN NN .
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The bank group also said that it wo n't make additional advances under the $ 150 million credit line . DT NN NN RB VBD IN PRP MD RB VB JJ NNS IN DT $ CD CD NN NN .
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HealthVest missed a payment to the group that was due in late September . NNP VBD DT NN TO DT NN WDT VBD JJ IN JJ NNP .
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In addition , HealthVest said Bank of Tokyo Trust Co. also has notified it of a default and said it might take action to cure the default . IN NN , NNP VBD NNP IN NNP NNP NNP RB VBZ VBN PRP IN DT NN CC VBD PRP MD VB NN TO VB DT NN .
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HealthVest missed an interest payment to Bank of Tokyo on Oct. 1 . NNP VBD DT NN NN TO NNP IN NNP IN NNP CD .
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However , HealthVest said the Tokyo bank indicated that it wo n't accelerate HealthVest 's $ 50 million loan . RB , NNP VBD DT NNP NN VBD IN PRP MD RB VB NNP POS $ CD CD NN .
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HealthVest is in a severe liquidity bind because its affiliate , Healthcare International Inc. , has failed to make about $ 10.6 million in principal and interest payments owed since August . NNP VBZ IN DT JJ NN NN IN PRP$ NN , NNP NNP NNP , VBZ VBN TO VB RB $ CD CD IN NN CC NN NNS VBN IN NNP .
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Healthcare operates many of the health-care properties that HealthVest owns . NNP VBZ NN IN DT NN NNS IN NNP VBZ .
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EMPIRE PENCIL , later called Empire-Berol , developed the plastic pencil in 1973 . NNP NNP , RB VBN NNP , VBD DT NN NN IN CD .
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Yesterday 's Centennial Journal misstated the company 's name . NN POS NNP NNP VBD DT NN POS NN .
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Storage Technology Corp. had net income of $ 8.3 million , or 32 cents a share , for its fiscal-third quarter ended Sept. 29 , almost 15 times the $ 557,000 , or two cents a share , it posted for the year-ago period . NNP NNP NNP VBD JJ NN IN $ CD CD , CC CD NNS DT NN , IN PRP$ JJ NN VBN NNP CD , RB CD VBZ DT $ CD , CC CD NNS DT NN , PRP VBD IN DT JJ NN .
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Storage , Louisville , Colo. , which makes data-storage devices for mainframe computers , said the huge increase in net reflects `` strong sales '' of its tape products , particularly the 4400 Automated Cartridge System , which holds a library of tape cartridges . NNP , NNP , NNP , WDT VBZ JJ NNS IN NN NNS , VBD DT JJ NN IN NN VBZ `` JJ NNS '' IN PRP$ NN NNS , RB DT CD NNP NNP NNP , WDT VBZ DT NN IN NN NNS .
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The company said it recently sold its 750th cartridge system , which cost $ 400,000 to $ 500,000 each . DT NN VBD PRP RB VBD PRP$ JJ NN NN , WDT VBP $ CD TO $ CD DT .
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Quarter revenue was $ 232.6 million , up 12 % from $ 206 million last year . NN NN VBD $ CD CD , IN CD NN IN $ CD CD JJ NN .
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The stock market reacted strongly to the news . DT NN NN VBD RB TO DT NN .
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Storage rose $ 1.125 a share , to close at $ 14 , in New York Stock Exchange composite trading . NNP VBD $ CD DT NN , TO VB IN $ CD , IN NNP NNP NNP NNP JJ NN .
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For the nine months , Storage had net of $ 25.5 million , or 98 cents a share , including an $ 11.3 million extraordinary gain for the anticipated proceeds from liquidating an Irish unit . IN DT CD NNS , NNP VBD NN IN $ CD CD , CC CD NNS DT NN , VBG DT $ CD CD JJ NN IN DT VBN NNS IN VBG DT JJ NN .
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Net was up 69 % from $ 15.1 million , or 57 cents a share , last year . NN VBD IN CD NN IN $ CD CD , CC CD NNS DT NN , JJ NN .
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Revenue for the latest period was up 11 % to $ 682.7 million , from $ 614.6 million . NN IN DT JJS NN VBD IN CD NN TO $ CD CD , IN $ CD CD .
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A Canadian government agency conditionally approved proposed exports to the U.S. of natural gas from big , untapped fields in the Mackenzie River delta area of the western Canadian Arctic . DT JJ NN NN RB VBD VBN NNS TO DT NNP IN JJ NN IN JJ , JJ NNS IN DT NNP NNP NN NN IN DT JJ NNP NNP .
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Three companies , Esso Resources Canada Ltd. , Shell Canada Ltd. and Gulf Canada Resources Ltd. , applied to the Canadian National Energy Board to export 9.2 trillion cubic feet of Mackenzie delta natural gas over 20 years starting in 1996 . CD NNS , NNP NNP NNP NNP , NNP NNP NNP CC NNP NNP NNP NNP , VBN TO DT NNP NNP NNP NNP TO VB CD CD JJ NNS IN NNP NN JJ NN IN CD NNS VBG IN CD .
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To be economically feasible , the 11 billion Canadian dollar -LRB- US$ 9.37 billion -RRB- project requires almost a doubling of natural gas export prices . TO VB RB JJ , DT CD CD JJ NN ( $ CD CD ) NN VBZ RB DT NN IN JJ NN NN NNS .
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It also faces numerous other hurdles including an agreement on a pipeline route for the gas . PRP RB VBZ JJ JJ NNS VBG DT NN IN DT NN NN IN DT NN .
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The board said the export licenses would be issued on the condition that Canadian interests would also be allowed to bid for the Mackenzie delta gas on terms similar to those offered to U.S. customers . DT NN VBD DT NN NNS MD VB VBN IN DT NN IN JJ NNS MD RB VB VBN TO VB IN DT NNP NN NN IN NNS JJ TO DT VBN TO NNP NNS .
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U.S. buyers have already been lined up . NNP NNS VBP RB VBN VBN RB .
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They include Enron Corp. , Texas Eastern Corp. , Pacific Interstate Transmission Co. and Tennessee Gas Pipeline Co . PRP VBP NNP NNP , NNP NNP NNP , NNP NNP NNP NNP CC NNP NNP NNP NNP .
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The project could result in the U.S. taking more than 10 % of its natural gas supplies from Canada , up from about 5 % currently . DT NN MD VB IN DT NNP VBG JJR IN CD NN IN PRP$ JJ NN NNS IN NNP , IN IN IN NN NN RB .
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It would bring 13 gas fields into production at a combined rate of about 1.2 billion cubic feet a day . PRP MD VB CD NN NNS IN NN IN DT VBN NN IN IN CD CD JJ NNS DT NN .
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The board estimated that the cost of building a pipeline from the Mackenzie delta to Alberta would be about C$ 5.9 million . DT NN VBN IN DT NN IN VBG DT NN IN DT NNP NN TO NNP MD VB IN $ CD CD .
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It also said projections of surging U.S. demand for natural gas and price forecasts of C$ 5.25 per thousand cubic feet by 2005 would make the project economically viable . PRP RB VBD NNS IN VBG NNP NN IN JJ NN CC NN NNS IN $ CD IN CD JJ NNS IN CD MD VB DT NN RB JJ .
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Esso , a unit of Imperial Oil Ltd. which is 71%-owned by Exxon Corp. , will be allowed to export 5.1 trillion cubic feet to the U.S. in the 20-year period . NNP , DT NN IN NNP NNP NNP WDT VBZ JJ IN NNP NNP , MD VB VBN TO VB CD CD JJ NNS TO DT NNP IN DT JJ NN .
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Shell , a subsidiary of Royal Dutch\/Shell Group , will be allowed to export 0.9 trillion cubic feet , and Gulf , a unit of Olympia & York Developments Ltd. will be allowed to export 3.2 trillion cubic feet . NNP , DT NN IN NNP NNP NNP , MD VB VBN TO VB CD CD JJ NNS , CC NNP , DT NN IN NNP CC NNP NNP NNP MD VB VBN TO VB CD CD JJ NNS .
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Combustion Engineering Inc. , Stamford , Conn. , said it sold and agreed to sell several investments and nonstrategic businesses for about $ 100 million , which will be used for reducing debt and general purposes . NNP NNP NNP , NNP , NNP , VBD PRP VBD CC VBD TO VB JJ NNS CC JJ NNS IN RB $ CD CD , WDT MD VB VBN IN VBG NN CC JJ NNS .
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The transactions are unrelated . DT NNS VBP JJ .
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The company agreed to sell its minority investments in makers of steam-generating and related equipment , Stein Industrie and Energie & Verfahrenstechnik , to the major shareholder in the companies , Dutch-based GEC Alsthom N.V . DT NN VBD TO VB PRP$ NN NNS IN NNS IN NN CC VBN NN , NNP NNP CC NNP CC NNP , TO DT JJ NN IN DT NNS , JJ NNP NNP NNP .
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Combustion Engineering , which provides engineered products , systems and services for power generation , also sold Illinois Minerals Co. , based in Cairo , Ill . NNP NNP , WDT VBZ VBN NNS , NNS CC NNS IN NN NN , RB VBN NNP NNP NNP , VBN IN NNP , NNP .
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That unit of its Georgia Kaolin Co. subsidiary was sold to a unit of Unimin Corp . DT NN IN PRP$ NNP NNP NNP NN VBD VBN TO DT NN IN NNP NNP .
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Assets of Construction Equipment International , Houston , were sold to Essex Crane Inc. , and the assets of Elgin Electronics , Erie , Pa. , were sold to closely held Charter Technologies Inc . NNS IN NNP NNP NNP , NNP , VBD VBN TO NNP NNP NNP , CC DT NNS IN NNP NNP , NNP , NNP , VBD VBN TO RB VBN NNP NNP NNP .
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Where do Americans put their money ? WRB VBP NNPS VB PRP$ NN .
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It depends on when you look . PRP VBZ IN WRB PRP VBP .
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In 1900 , for instance , less than 8 % of assets went into bank deposits . IN CD , IN NN , JJR IN CD NN IN NNS VBD IN NN NNS .
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That rose to nearly 18 % during the Depression , and has n't changed much since . DT VBD TO RB CD NN IN DT NNP , CC VBZ RB VBN JJ RB .
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Pension reserves , on the other hand , made up a relatively small part of household assets until the last decade , when they skyrocketed . NN NNS , IN DT JJ NN , VBN IN DT RB JJ NN IN NN NNS IN DT JJ NN , WRB PRP VBD .
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And there has been a drastic decline in the importance of unincorporated business assets -- thanks to industry consolidation and a decline in family farms . CC EX VBZ VBN DT JJ NN IN DT NN IN JJ NN NNS : NNS TO NN NN CC DT NN IN NN NNS .
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That 's some of what emerges from the following charts , which show how Americans have changed their investment patterns over the past 90 years . DT VBZ DT IN WP VBZ IN DT VBG NNS , WDT VBP WRB NNPS VBP VBN PRP$ NN NNS IN DT JJ CD NNS .
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Some results are self-explanatory . DT NNS VBP JJ .
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But other figures are surprising . CC JJ NNS VBP JJ .
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Housing , for instance , has remained a fairly steady component of household assets over the past decade -- although common wisdom would have expected an increase . NNP , IN NN , VBZ VBN DT RB JJ NN IN NN NNS IN DT JJ NN : IN JJ NN MD VB VBN DT NN .
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`` There is a lot of attention paid to housing as a form of household wealth , '' says Edward N. Wolff , professor of economics at New York University . `` EX VBZ DT NN IN NN VBN TO NN IN DT NN IN NN NN , '' VBZ NNP NNP NNP , NN IN NNS IN NNP NNP NNP .
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`` But it has n't increased much relative to other assets . `` CC PRP VBZ RB VBN JJ JJ TO JJ NNS .
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It suggests that households accumulate wealth across a broad spectrum of assets . PRP VBZ IN NNS VBP NN IN DT JJ NN IN NNS .
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And housing though it appears in the popular mind as being the major -LCB- growing -RCB- household asset , is n't . '' CC NN IN PRP VBZ IN DT JJ NN IN VBG DT JJ ( VBG ) NN NN , VBZ RB . ''
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In addition , investors ' desire to hold stocks -- directly and through mutual funds -- has held surprisingly steady ; stocks ' importance among assets largely reflects the ups and downs of the stock market , and not a shift in stock-holding preferences . IN NN , NNS POS NN TO VB NNS : RB CC IN JJ NNS : VBZ VBN RB JJ : NNS POS NN IN NNS RB VBZ DT NNS CC NNS IN DT NN NN , CC RB DT NN IN JJ NNS .
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`` Stocks have not spread to the general public , despite the fact that the environment is much different , '' concludes Robert Avery , an economist at Cornell University . `` NNS VBP RB VB TO DT JJ NN , IN DT NN IN DT NN VBZ JJ JJ , '' VBZ NNP NNP , DT NN IN NNP NNP .
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`` To me it says that despite all the views that we spend too much of our wealth on paper assets , we have ways of holding wealth similar to 100 years ago . '' `` TO PRP PRP VBZ IN IN PDT DT NNS IN PRP VBP RB NN IN PRP$ NN IN NN NNS , PRP VBP NNS IN VBG NN JJ TO CD NNS RB . ''
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-- The charts show how househld assets have been distributed over time . : DT NNS VBP WRB JJ NNS VBP VBN VBN IN NN .
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The main components of the various asseet categories : Housing : Primary home , but not the land it 's on . DT JJ NNS IN DT JJ NN NNS : NNP : JJ NN , CC RB DT NN PRP VBZ RB .
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Land and Other Real Estate : Land on which primary home is built , investment property . NNP CC JJ NNP NNP : NNP IN WDT JJ NN VBZ VBN , NN NN .
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Consumer Durables : Automobiles , appliances , furniture . NNP NNPS : NNS , NNS , NN .
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Bank Deposits : Currency , checking-account deposits , small savings and time deposits , certificates of deposits , money-market fund shares . NN NNS : NN , JJ NNS , JJ NNS CC NN NNS , NNS IN NNS , JJ NN NNS .
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Bonds : Excludes bond funds . NNS : VBZ NN NNS .
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Stocks\/Mutual Funds : Stocks and mutual funds other than money-market funds . NNP NNS : NNS CC JJ NNS JJ IN JJ NNS .
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Unincorporated Business : Partnerships and sole proprietorships , professional corporations . NNP NNP : NNS CC JJ NNS , JJ NNS .
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Pension Reserves : Holdings by pension funds . NN NNS : NNP IN NN NNS .
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McCaw Cellular Communications Inc. said it sent a letter to LIN Broadcasting Corp. clarifying its revised tender offer for LIN and asking LIN to conduct `` a fair auction . '' NNP NNP NNP NNP VBD PRP VBD DT NN TO NNP NNP NNP VBG PRP$ VBN NN NN IN NNP CC VBG NNP TO VB `` DT JJ NN . ''
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The letter apparently came in response to a request for clarification by LIN earlier this week . DT NN RB VBD IN NN TO DT NN IN NN IN NNP RBR DT NN .
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LIN , which has agreed with BellSouth Corp. to merge their cellular-telephone businesses , said then that it would n't take a position on McCaw 's revised tender offer . NNP , WDT VBZ VBN IN NNP NNP TO VB PRP$ JJ NNS , VBD RB IN PRP MD RB VB DT NN IN NNP POS VBN NN NN .
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Earlier this month , McCaw revised its offer to $ 125 a share for 22 million LIN shares . RBR DT NN , NNP VBD PRP$ NN TO $ CD DT NN IN CD CD NNP NNS .
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McCaw is seeking 50.3 % of the cellular and broadcasting concern ; the revised offer includes a feature requiring McCaw to begin an auction process in July 1994 that would buy out remaining holders at a per-share price roughly equivalent to what a third party might then have to pay for all of LIN . NNP VBZ VBG CD NN IN DT JJ CC NN NN : DT VBN NN VBZ DT NN VBG NNP TO VB DT NN NN IN NNP CD WDT MD VB RP VBG NNS IN DT JJ NN RB NN TO WP DT JJ NN MD RB VB TO VB IN DT IN NNP .
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The letter outlines broad powers for an independent group of directors provided for in the revised offer . DT NN VBZ JJ NNS IN DT JJ NN IN NNS VBN IN IN DT VBN NN .
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In a statement , Craig O. McCaw , chairman and chief executive officer of McCaw , said : `` We trust LIN will take no further actions that favor BellSouth . '' IN DT NN , NNP NNP NNP , NN CC JJ JJ NN IN NNP , VBD : `` PRP VBP NNP MD VB DT JJ NNS WDT VBP NNP . ''
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McCaw said the three independent directors provided for in the offer would be designated by the current board . NNP VBD DT CD JJ NNS VBN IN IN DT NN MD VB VBN IN DT JJ NN .
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The successors would be nominated by the independent directors . DT NNS MD VB VBN IN DT JJ NNS .
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LIN would have a priority right to pursue all opportunities to acquire U.S. cellular interests in markets other than those in which McCaw holds an interest , or which are contiguous to those markets , unless LIN has an interest there or contiguous to it . NNP MD VB DT NN NN TO VB DT NNS TO VB NNP JJ NNS IN NNS JJ IN DT NN WDT NNP VBZ DT NN , CC WDT VBP JJ TO DT NNS , IN NNP VBZ DT NN EX CC JJ TO PRP .
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Independent directors would have veto rights to any acquisition if they unanimously decide it is n't in LIN 's best interest . JJ NNS MD VB NN NNS TO DT NN IN PRP RB VBP PRP VBZ RB IN NNP POS JJS NN .
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Independent directors would be able to block transactions they unanimously deem would be likely to depress the private market value of LIN at the time it is to be sold in five years . JJ NNS MD VB JJ TO VB NNS PRP RB VBP MD VB JJ TO VB DT JJ NN NN IN NNP IN DT NN PRP VBZ TO VB VBN IN CD NNS .
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If LIN is put up for sale rather than purchased by McCaw in five years , McCaw wo n't submit a bid unless the independent directors request it , and the independent directors will run the bidding . IN NNP VBZ VBN IN IN NN RB IN VBN IN NNP IN CD NNS , NNP MD RB VB DT NN IN DT JJ NNS VBP PRP , CC DT JJ NNS MD VB DT NN .
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The directors would be able to sell particular assets to enable such buyers as the regional Bell operating companies to purchase the company 's interests . DT NNS MD VB JJ TO VB JJ NNS TO VB JJ NNS IN DT JJ NNP VBG NNS TO VB DT NN POS NNS .
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MCA Inc. said third-quarter net fell 6.3 % to $ 50.8 million , or 69 cents a share , from $ 54.3 million , or 74 cents a share , a year earlier . NNP NNP VBD JJ NN VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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MCA said revenue rose 14 % to $ 918.4 million from $ 806.7 million . NNP VBD NN VBD CD NN TO $ CD CD IN $ CD CD .
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The entertainment concern said the success of several movies released during the quarter , including `` Parenthood '' and `` Uncle Buck , '' contributed to record revenue for its film unit . DT NN NN VBD DT NN IN JJ NNS VBN IN DT NN , VBG `` NNP '' CC `` NNP NNP , '' VBD TO VB NN IN PRP$ NN NN .
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Both MCA 's music-entertainment and book-publishing units also posted record revenue and operating profit . DT NNP POS NN CC NN NNS RB VBD NN NN CC VBG NN .
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The parent company 's net included a loss -- which it did n't specify -- that was related to the company 's 50 % stake in Cineplex Odeon Corp . DT NN NN POS NN VBD DT NN : WDT PRP VBD RB VB : WDT VBD VBN TO DT NN POS CD NN NN IN NNP NNP NNP .
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Cineplex , a Toronto theater chain , had a second-quarter net loss of $ 38.7 million . NNP , DT NNP NN NN , VBD DT JJ JJ NN IN $ CD CD .
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MCA said net also included certain reserves related to the restructuring of its LJN Toys ' international operations . NNP VBD JJ RB VBD JJ NNS VBN TO DT NN IN PRP$ NNP NNPS POS JJ NNS .
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These items were partly offset , MCA said , by an unspecified gain on the sale of its Miller International unit , a maker and distributor of budget-priced audio cassettes . DT NNS VBD RB VB , NNP VBD , IN DT JJ NN IN DT NN IN PRP$ NNP NNP NN , DT NN CC NN IN JJ JJ NNS .
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In New York Stock Exchange composite trading , MCA rose $ 1.50 to $ 64 . IN NNP NNP NNP NNP JJ NN , NNP VBD $ CD TO $ CD .
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In the nine months , net rose 35 % to $ 120.1 million , or $ 1.64 a share , from $ 89.2 million , or $ 1.22 a share , a year earlier . IN DT CD NNS , NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Revenue increased 22 % to $ 2.5 billion from $ 2.1 billion . NN VBN CD NN TO $ CD CD IN $ CD CD .
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Past Due Impasse JJ NNP NNP
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I never pay my bills Till the very last day ; I lose far less interest By proceeding that way . PRP RB VBP PRP$ NNS IN DT RB JJ NN : PRP VBP RB JJR NN IN VBG DT NN .
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But it all evens out , It 's so easy to see : Not till the last moment Am I paid what 's due me . CC PRP DT VBZ IN , PRP VBZ RB JJ TO VB : RB IN DT JJ NN NNP PRP VBD WP VBZ JJ PRP .
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-- Arnold J. Zarett . : NNP NNP NNP .
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Rex Tremendae NNP NNP
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The effete Tyrannosaurus Rex Had strict Cretaceous views on sex , And that is why you only see him Reproduced in the museum . DT JJ NNP NNP VBD JJ NNP NNS IN NN , CC DT VBZ WRB PRP RB VBP PRP VBN IN DT NN .
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-- Laurence W. Thomas . : NNP NNP NNP .
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Helmsley Enterprises Inc. plans to close its company-owned insurance business and is seeking other brokers to take over its policies , according to individuals familiar with the New York firm . NNP NNPS NNP VBZ TO VB PRP$ JJ NN NN CC VBZ VBG JJ NNS TO VB IN PRP$ NNS , VBG TO NNS JJ IN DT NNP NNP NN .
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Helmsley Enterprises is the umbrella organization for companies controlled by Harry B. Helmsley . NNP NNPS VBZ DT NN NN IN NNS VBN IN NNP NNP NNP .
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These include office and residential real estate giant , HelmsleySpear Inc. , and Helmsley Hotels . DT VBP NN CC JJ JJ NN NN , NNP NNP , CC NNP NNP .
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The insurance brokerage agency , just a fragment of Helmsley 's vast empire , would be the first piece of the company to be stripped away since last summer when Mr. Helmsley 's wife , Leona Helmsley , was found guilty of tax evasion . DT NN NN NN , RB DT NN IN NNP POS JJ NN , MD VB DT JJ NN IN DT NN TO VB VBN RB IN JJ NN WRB NNP NNP POS NN , NNP NNP , VBD VBN JJ IN NN NN .
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Industry sources estimate the agency brokers property and casualty premiums worth about $ 25 million annually , and has revenue , based on a standard 10 % commission rate , of about $ 2.5 million . NN NNS VBP DT NN NNS NN CC NN NNS JJ RB $ CD CD RB , CC VBZ NN , VBN IN DT JJ CD NN NN NN , IN RB $ CD CD .
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The insurance firm acts as a broker on policies covering buildings managed by HelmsleySpear and others . DT NN NN NNS IN DT NN IN NNS VBG NNS VBN IN NNP CC NNS .
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Many of the properties are owned through limited partnerships controlled by Mr. Helmsley . JJ IN DT NNS VBP VBN IN JJ NNS VBN IN NNP NNP .
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New York State law prohibits insurance brokerages from deriving more than 10 % of revenue from insuring affiliated companies . NNP NNP NNP NN VBZ NN NNS IN VBG JJR IN CD NN IN NN IN VBG VBN NNS .
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Helmsley 's insurance division had slightly exceeded that percentage , sources say , but the division was n't considered significant enough to the company to be restructured , particularly at a difficult time for the firm . NNP POS NN NN VBD RB VBN DT NN , NNS VBP , CC DT NN VBD RB VBN JJ RB TO DT NN TO VB VBN , RB IN DT JJ NN IN DT NN .
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Adverse publicity from the scandal surrounding its founder 's wife and related management strife have put pressure on the entire Helmsley organization . JJ NN IN DT NN VBG PRP$ NN POS NN CC VBN NN NN VBP VBN NN IN DT JJ NNP NN .
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However , individuals close to the company insist shuttering the insurance division , a sideline from the company 's core property management business , is n't the beginning of a sale of assets . RB , NNS VBP TO DT NN VBP VBG DT NN NN , DT NN IN DT NN POS NN NN NN NN , VBZ RB DT NN IN DT NN IN NNS .
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Helmsley 's insurance premiums are expected to be transferred to several different insurance brokerage companies . NNP POS NN NNS VBP VBN TO VB VBN TO JJ JJ NN NN NNS .
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Frank B. Hall Inc. of Briarcliff Manor , N.Y. is reportedly working out an agreement with Helmsley . NNP NNP NNP NNP IN NNP NNP , NNP VBZ RB VBG RP DT NN IN NNP .
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Officials there declined to comment , as did Helmsley management . NNS EX VBD TO VB , IN VBD NNP NN .
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Outside the white-walled headquarters of the socalled Society of Orange Workers , all seems normal in South Africa 's abnormal society . IN DT JJ NN IN DT JJ NNP IN NNP NNPS , DT VBZ JJ IN NNP NNP POS JJ NN .
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A pickup truck driven by a white farmer rumbles past with a load of black workers bouncing in the back . DT NN NN VBN IN DT JJ NN VBZ JJ IN DT NN IN JJ NNS VBG IN DT RB .
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Over at Conradies , the general store , a black stock boy scurries to help an elderly white woman with her packages . IN IN NNP , DT JJ NN , DT JJ NN NN NNS TO VB DT JJ JJ NN IN PRP$ NNS .
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Down the street , a car pulls into the Shell station and is surrounded by black attendants . IN DT NN , DT NN VBZ IN DT NNP NN CC VBZ VBN IN JJ NNS .
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But inside the white walls of the Orange Workers ' office -- just about the largest building in town , save for the Dutch Reformed Church and the school -- South Africa 's neat racial order is awry . CC IN DT JJ NNS IN DT NNP NNPS POS NN : RB IN DT JJS NN IN NN , VB IN DT NNP NNP NNP CC DT NN : NNP NNP POS JJ JJ NN VBZ RB .
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A dozen white office workers fold newsletters and stuff them into envelopes . DT NN JJ NN NNS VBP NNS CC NN PRP IN NNS .
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White women serve tea and coffee , and then wash the cups and saucers afterwards . JJ NNS VBP NN CC NN , CC JJ NN DT NNS CC NNS RB .
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White children empty the wastepaper baskets and squeegee the windows . JJ NNS VB DT NN NNS CC VBP DT NNS .
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There is n't a black worker in sight . EX VBZ RB DT JJ NN IN NN .
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Not in the kitchen , or the storeroom or the book shop . RB IN DT NN , CC DT NN CC DT NN NN .
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`` If we want to have our own nation , then we must be willing to do all the work ourselves , '' says Hendrik Verwoerd Jr. , son of the former prime minister and the leader of the Orange Workers , founded in 1980 . `` IN PRP VBP TO VB PRP$ JJ NN , RB PRP MD VB JJ TO VB PDT DT NN PRP , '' VBZ NNP NNP NNP , NN IN DT JJ JJ NN CC DT NN IN DT NNP NNPS , VBN IN CD .
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They do indeed want their own nation . PRP VBP RB VB PRP$ JJ NN .
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The pillars of apartheid may be trembling in the rest of South Africa , with Johannesburg opening its public facilities to all races , blacks storming the all-white beaches of the Cape and the government releasing seven leaders of the banned African National Congress . DT NNS IN NN MD VB VBG IN DT NN IN NNP NNP , IN NNP VBG PRP$ JJ NNS TO DT NNS , NNS VBG DT JJ NNS IN DT NNP CC DT NN VBG CD NNS IN DT VBN NNP NNP NNP .
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But here in Morgenzon , a sleepy town amid the corn fields of the eastern Transvaal , the Orange Workers are holding the pillars steady . CC RB IN NNP , DT JJ NN IN DT NN NNS IN DT JJ NNP , DT NNP NNPS VBP VBG DT NNS JJ .
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The Orange Workers -- who take their name from William of Orange of the Netherlands , a hero of the Dutch-descended Afrikaners -- believe that the solution to South Africa 's racial problems is n't the abolition of apartheid , it 's the perfection of apartheid -- complete and total separation of the races . DT NNP NNPS : WP VBP PRP$ NN IN NNP IN NNP IN DT NNP , DT NN IN DT JJ NNPS : VBP IN DT NN TO NNP NNP POS JJ NNS VBZ RB DT NN IN NN , PRP VBZ DT NN IN NN : JJ CC JJ NN IN DT NNS .
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Here , then , is where the Orange Workers have come to make apartheid 's last stand . RB , RB , VBZ WRB DT NNP NNPS VBP VBN TO VB NN POS JJ NN .
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Their idea is to create a city , first , and then an entire nation -- without blacks . PRP$ NN VBZ TO VB DT NN , JJ , CC RB DT JJ NN : IN NNS .
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This may seem to be a preposterous and utterly futile effort in Africa . DT MD VB TO VB DT JJ CC RB JJ NN IN NNP .
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And the fact that there are only 3,000 card-carrying Orange Workers may put them on the loony fringe . CC DT NN IN EX VBP RB CD JJ NNP NNPS MD VB PRP IN DT JJ NN .
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But their ideal of an Afrikaner homeland , an all-white reserve to be carved out of present-day South Africa , is a mainstream desire of the right-wing , which embraces about one-third of the country 's five million whites . CC PRP$ NN IN DT JJ NN , DT JJ NN TO VB VBN IN IN JJ NNP NNP , VBZ DT NN NN IN DT NN , WDT VBZ IN NN IN DT NN POS CD CD NNS .
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Afrikaner philosophers and theologians have long ruminated on the need for a white homeland . JJ NNS CC NNS VBP RB VBN IN DT NN IN DT JJ NN .
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The Orange Workers are just putting this preaching into practice . DT NNP NNPS VBP RB VBG DT NN IN NN .
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Thus , farmer Johan Fischer , his T-shirt and jeans covered in grease , crawls around under his planter , tightening bolts and fixing dents . RB , NN NNP NNP , PRP$ NN CC NNS VBN IN NN , VBZ IN IN PRP$ NN , VBG NNS CC VBG NNS .
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On almost every other farm in South Africa , black workers do the repairs . IN RB DT JJ NN IN NNP NNP , JJ NNS VBP DT NNS .
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But not here . CC RB RB .
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Mr. Fischer plows his own fields , sows his own corn and sunflowers , and feeds his own sheep . NNP NNP VBZ PRP$ JJ NNS , VBZ PRP$ JJ NN CC NNS , CC VBZ PRP$ JJ NN .
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Over at the fiberglass factory , four white workers assemble water tanks on their own , and in their spare time they build townhouses across the road . IN IN DT NNS NN , CD JJ NNS VBP NN NNS IN PRP$ JJ , CC IN PRP$ JJ NN PRP VBP NNS IN DT NN .
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On Main Street , Alida Verwoerd and her daughters look after the clothes and fabric shop , then hurry home to fix lunch for the rest of the family . IN NNP NNP , NNP NNP CC PRP$ NNS VBP IN DT NNS CC NN NN , JJ NN NN TO VB NN IN DT NN IN DT NN .
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Down by the stream , a group of Orange Workers puts the finishing touches on a golf course . IN IN DT NN , DT NN IN NNP NNPS VBZ DT VBG NNS IN DT NN NN .
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If whites want to play there by themselves , says consulting engineer Willem van Heerden , whites should also build it by themselves . IN NNS VBP TO VB RB IN PRP , VBZ NN NN NNP NNP NNP , NNS MD RB VB PRP IN PRP .
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`` If we want to survive as a people , '' he says , `` we have to change our way of life . `` IN PRP VBP TO VB IN DT NNS , '' PRP VBZ , `` PRP VBP TO VB PRP$ NN IN NN .
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The Afrikaner must end his reliance on others . '' DT JJ MD VB PRP$ NN IN NNS . ''
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In their quest to perfect apartheid , the Orange Workers have discovered a truth that most of privileged white South Africa tries mightily to deny : The master ca n't become dependent on the slave and expect to remain master forever . IN PRP$ NN TO JJ NN , DT NNP NNPS VBP VBN DT NN IN RBS IN JJ JJ NNP NNP VBZ RB TO VB : DT NN MD RB VB JJ IN DT NN CC VBP TO VB NN RB .
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`` If apartheid means you want cheap black labor and all the comforts that go with it , but you also want to exclude the blacks from social and political integration , then these are two contradictions that ca n't go on forever , '' says Mr. Verwoerd . `` IN NN VBZ PRP VBP JJ JJ NN CC PDT DT NNS WDT VBP IN PRP , CC PRP RB VBP TO VB DT NNS IN JJ CC JJ NN , RB DT VBP CD NNS WDT MD RB VB IN RB , '' VBZ NNP NNP .
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He is sitting in his living room , beneath a huge portrait of his late father , Hendrik F. Verwoerd , apartheid 's architect and South African prime minister from 1958 to 1966 . PRP VBZ VBG IN PRP$ NN NN , IN DT JJ NN IN PRP$ JJ NN , NNP NNP NNP , NN POS NN CC JJ JJ JJ NN IN CD TO CD .
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Somewhere , the son sighs , things went terribly wrong with apartheid ; today , whites even rely on blacks to police their separation . RB , DT NN VBZ , NNS VBN RB JJ IN NN : NN , NNS RB VBP IN NNS TO VB PRP$ NN .
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`` People took separate development as an opportunity to use black labor without ever getting rid of it . `` NNS VBD JJ NN IN DT NN TO VB JJ NN IN RB VBG JJ IN PRP .
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But my father meant it to mean real separation , '' says the son . CC PRP$ NN VBD PRP TO VB JJ NN , '' VBZ DT NN .
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The Orange Workers speak sincerely . DT NNP NNPS VBP RB .
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`` We agree with world opinion that the status quo in South Africa is morally wrong , '' says Pieter Bruwer , the Orange Workers ' chief scribe and pamphleteer . `` PRP VBP IN NN NN IN DT NN FW IN NNP NNP VBZ RB JJ , '' VBZ NNP NNP , DT NNP NNPS POS JJ NN CC NN .
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`` We must either integrate honestly or segregate honestly . '' `` PRP MD DT VB RB CC VB RB . ''
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Morgenzon has long been a special domain of Afrikanerdom . NNP VBZ RB VBN DT JJ NN IN NNP .
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According to Mr. Verwoerd , the early Afrikaner pioneers were the first people to settle in the eastern Transvaal , even before the blacks . VBG TO NNP NNP , DT JJ JJ NNS VBD DT JJ NNS TO VB IN DT JJ NNP , RB IN DT NNS .
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Then , when Morgenzon was incorporated in 1908 , the farmer who owned the land stipulated that only whites could reside in town ; blacks could work there , but they had to leave at night . RB , WRB NNP VBD VBN IN CD , DT NN WP VBD DT NN VBD IN JJ NNS MD VB IN NN : NNS MD VB EX , CC PRP VBD TO VB IN NN .
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Today , Morgenzon is a town of 800 whites and two paved roads . NN , NNP VBZ DT NN IN CD NNS CC CD JJ NNS .
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Weeds push up through the cracks in the sidewalks , and many houses and storefronts are empty . NNS VBP IN IN DT NNS IN DT NNS , CC JJ NNS CC NNS VBP JJ .
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There are few factories and no mines . EX VBP JJ NNS CC DT NNS .
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It was an ideal place for the Orange Workers to start their new nation , unencumbered by the demographics that have undermined apartheid elsewhere in South Africa . PRP VBD DT JJ NN IN DT NNP NNPS TO VB PRP$ JJ NN , JJ IN DT NNS WDT VBP VBN NN RB IN NNP NNP .
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So far , about 150 Orange Workers have moved here , spending nearly $ 1 million buying up property over the past three years . RB RB , IN CD NNP NNPS VBP VBN RB , NN RB $ CD CD VBG IN NN IN DT JJ CD NNS .
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Still , complete and total segregation remains elusive . RB , JJ CC JJ NN VBZ JJ .
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Just beyond the city limits is a shantytown of 2,000 blacks who are employed throughout the area . RB IN DT NN NNS VBZ DT NN IN CD NNS WP VBP VBN IN DT NN .
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Despite the Orange Workers ' intention to put them all out of work , they are in no hurry to leave . IN DT NNP NNPS POS NN TO VB PRP DT NN IN NN , PRP VBP IN DT NN TO VB .
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A young man called July -LRB- that 's when he was born -RRB- , who works at the railroad station just up the street from the Orange Workers office , points at the whitewalled building and says matter-of-factly , `` We 're not allowed in there , that 's all I know . '' DT JJ NN VBN NNP ( DT VBZ WRB PRP VBD VBN ) , WP VBZ IN DT NN NN RB IN DT NN IN DT NNP NNPS NN , VBZ IN DT JJ NN CC VBZ RB , `` PRP VBP RB VBN IN EX , DT VBZ DT PRP VBP . ''
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The 650-or-so local whites who are n't Orange Workers are more troubled . DT JJ JJ NNS WP VBP RB NNP NNPS VBP RBR JJ .
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Try as they might , they just ca n't conceive of life without black workers . VB IN PRP MD , PRP RB MD RB VB IN NN IN JJ NNS .
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`` Impossible , impossible , '' say the Conradies , an elderly couple who have run the general store for decades . `` JJ , JJ , '' VBP DT NNP , DT JJ NN WP VBP VBN DT JJ NN IN NNS .
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`` We ca n't do without their help , '' says Mrs. Conradie . `` PRP MD RB VB IN PRP$ NN , '' VBZ NNP NNP .
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`` Oh no . `` UH DT .
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We need them and I thank God for them . '' PRP VBP PRP CC PRP VBP NNP IN PRP . ''
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Over at the Shell station , owner Rudi van Dyk , who doubles as Morgenzon 's mayor , worries that the Orange Workers have made his town the laughingstock of the nation . IN IN DT NNP NN , NN NNP NNP NNP , WP VBZ IN NNP POS NN , VBZ IN DT NNP NNPS VBP VBN PRP$ NN DT NN IN DT NN .
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`` What they want us to do just is n't practical , '' he says , noting that he employs 16 blacks . `` WP PRP VBP PRP TO VB RB VBZ RB JJ , '' PRP VBZ , VBG IN PRP VBZ CD NNS .
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`` I could n't afford to hire 16 whites . `` PRP MD RB VB TO VB CD NNS .
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The only Afrikaners who would be willing to work for this salary would n't know how to handle money . '' DT RB NNPS WP MD VB JJ TO VB IN DT NN MD RB VB WRB TO VB NN . ''
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Back at the Verwoerd house , Hendrik Sr. peers down over the shoulder of Hendrik Jr . RB IN DT NNP NN , NNP NNP NNS RB IN DT NN IN NNP NNP .
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The son believes that when the Afrikaners finally realize there is no turning back the integration of South African society and politics , Morgenzon will boom . DT NN VBZ IN WRB DT NNPS RB VB EX VBZ DT VBG RB DT NN IN JJ JJ NN CC NNS , NNP MD VB .
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`` We urge our people not to wait until they have to fight for their own nation , '' says Mr. Verwoerd . `` PRP VBP PRP$ NNS RB TO VB IN PRP VBP TO VB IN PRP$ JJ NN , '' VBZ NNP NNP .
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`` By populating a place now , we make ourselves a power any new government will have to take into account . '' `` IN VBG DT NN RB , PRP VBP PRP DT NN DT JJ NN MD VB TO VB IN NN . ''
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Curiously , he compares the Orange Workers to the ANC , which his father outlawed in 1960 . RB , PRP VBZ DT NNP NNPS TO DT NNP , WDT PRP$ NN VBN IN CD .
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`` The ANC wo n't be stopped until there is a provision for black aspirations , '' says Mr. Verwoerd . `` DT NNP MD RB VB VBN IN EX VBZ DT NN IN JJ NNS , '' VBZ NNP NNP .
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`` Likewise , no government will stop this idea of the Afrikaners . '' `` RB , DT NN MD VB DT NN IN DT NNPS . ''
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|
He apologizes for sounding pushy . PRP VBZ IN VBG JJ .
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`` Look , '' he says , `` If the rest of South Africa wants to have an integrated melting pot , that 's their choice . `` VB , '' PRP VBZ , `` IN DT NN IN NNP NNP VBZ TO VB DT VBN VBG NN , DT VBZ PRP$ NN .
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We 'll leave them alone . PRP MD VB PRP RB .
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We just want to have our own cup of tea . '' PRP RB VBP TO VB PRP$ JJ NN IN NN . ''
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And they will even serve it themselves . CC PRP MD RB VB PRP PRP .
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Okay , now you can pick up that phone . UH , RB PRP MD VB IN DT NN .
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But do n't do anything rash . CC VBP RB VB NN NN .
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After last Friday 's stock-market plunge , investment professionals cautioned people to resist the urge to call their brokers and sell stocks . IN JJ NNP POS NN NN , NN NNS VBD NNS TO VB DT NN TO VB PRP$ NNS CC VB NNS .
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Not selling into a panic turned out to be very good advice : Despite the market 's volatility , the Dow Jones Industrial Average has surged 114 points in the past four days . RB VBG IN DT NN VBD IN TO VB RB JJ NN : IN DT NN POS NN , DT NNP NNP NNP NNP VBZ VBN CD NNS IN DT JJ CD NNS .
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Now , with a semblance of normalcy returning , some advisers say it 's time for investors to take a hard , cold look at the stocks they own and consider some careful pruning . RB , IN DT NN IN NN VBG , DT NNS VBP PRP VBZ NN IN NNS TO VB DT JJ , JJ NN IN DT NNS PRP JJ CC VB DT JJ NN .
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`` The market is sending nervous signals , '' says Peter J. Canelo , chief market strategist for Bear , Stearns & Co. , and it 's `` unwise '' to be overcommitted to stocks . `` DT NN VBZ VBG JJ NNS , '' VBZ NNP NNP NNP , JJ NN NN IN NNP , NNP CC NNP , CC PRP VBZ `` JJ '' TO VB VBN TO NNS .
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Alan Weston , president of Weston Capital Management , a Los Angeles money-management firm , adds that in periods of uncertainty like today , `` it 's a good time to cut out the dead branches of your portfolio . '' NNP NNP , NN IN NNP NNP NNP , DT NNP NNP NN NN , VBZ IN IN NNS IN NN IN NN , `` PRP VBZ DT JJ NN TO VB RP IN JJ NNS IN PRP$ NN . ''
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Not everybody agrees that it 's time to trim . RB NN VBZ IN PRP VBZ NN TO VB .
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`` We are n't inclined to prune stock portfolios now , '' says Steven G. Einhorn , chairman of the investment policy committee of Goldman , Sachs & Co . `` PRP VBP RB VBN TO VB NN NNS RB , '' VBZ NNP NNP NNP , NN IN DT NN NN NN IN NNP , NNP CC NNP .
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`` Investors should stay with their stocks . `` NNS MD VB IN PRP$ NNS .
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|
We expect a choppy and sloppy market for a short period , but we do n't think it will be ugly . PRP VBP DT JJ CC JJ NN IN DT JJ NN , CC PRP VBP RB VB PRP MD VB JJ .
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The downside is limited . '' DT NN VBZ JJ . ''
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|
And even those who say some selective selling may be in order stress that individuals need to be in the stock market to achieve their long-term investment objectives and to help balance their other assets . CC RB DT WP VBP DT JJ NN MD VB IN NN NN IN NNS VBP TO VB IN DT NN NN TO VB PRP$ JJ NN NNS CC TO VB VB PRP$ JJ NNS .
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Any selling , they say , should be well thought-out , and executed gradually , during market rallies . DT NN , PRP VBP , MD VB RB JJ , CC VBD RB , IN NN NNS .
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|
They offer these suggestions : PRP VBP DT NNS :
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|
GET RID OF THE DOGS . VB VB IN DT NNS .
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|
`` Sell stocks that are n't doing well now , and that do n't have good earnings prospects , '' says Alfred Goldman , technical analyst at St. Louis-based A.G. Edwards & Sons . `` VB NNS WDT VBP RB VBG RB RB , CC DT VBP RB VB JJ NNS NNS , '' VBZ NNP NNP , JJ NN IN NNP JJ NNP NNP CC NNP .
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`` Most people do just the opposite : They sell their winners and keep their losers . '' `` JJS NNS VBP RB DT JJ : PRP VBP PRP$ NNS CC VB PRP$ NNS . ''
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|
Which types of stocks are most likely to qualify ? WDT NNS IN NNS VBP RBS JJ TO VB .
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|
Technology stocks , says Mr. Goldman . NN NNS , VBZ NNP NNP .
|
|
WATCH FOR EARNINGS DISAPPOINTMENTS . VB IN NNS NNS .
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|
A company does n't have to post a loss to be a candidate for sale , says Charles I. Clough Jr. , chief market strategist at Merrill Lynch & Co . DT NN VBZ RB VB TO VB DT NN TO VB DT NN IN NN , VBZ NNP NNP NNP NNP , JJ NN NN IN NNP NNP CC NNP .
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If earnings do n't live up to analysts ' expectations , he says , that 's enough to dump the stock . IN NNS NN RB VB IN TO NNS POS NNS , PRP VBZ , DT VBZ RB TO VB DT NN .
|
|
John Markese , director of research for the American Association of Individual Investors , raises a cautionary note . NNP NNP , NN IN NN IN DT NNP NNP IN JJ NNS , VBZ DT JJ NN .
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`` Substituting a rule of thumb for your own judgment '' can be a mistake , he says . `` VBG DT NN IN NN IN PRP$ JJ NN '' MD VB DT NN , PRP VBZ .
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An earnings disappointment may reflect a situation that 's short-term . DT NNS NN MD VB DT NN WDT VBZ JJ .
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But Mr. Clough says , `` The risk is that earnings disappointments will continue . '' CC NNP NNP VBZ , `` DT NN VBZ IN NNS NNS MD VB . ''
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The economy is decelerating after six good years , and `` right now it 's better to shoot first and ask questions later . '' DT NN VBZ VBG IN CD JJ NNS , CC `` RB RB PRP VBZ JJR TO VB JJ CC VB NNS RB . ''
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Which types of stocks currently have the greatest earnings risks ? WDT NNS IN NNS RB VBP DT JJS NNS NNS .
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Computer companies ; commodity cyclical stocks , like autos ; and retailing stocks , he says . NN NNS : NN JJ NNS , IN NNS : CC NN NNS , PRP VBZ .
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BEWARE OF HEAVY DEBT . VB IN JJ NN .
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The companies apt to run into earnings problems soonest are the ones with heavy debt loads , says Larry Biehl , partner in the San Mateo , Calif. , money-management firm of Bailard , Biehl & Kaiser . DT NNS JJ TO VB IN NNS NNS JJS VBP DT NNS IN JJ NN NNS , VBZ NNP NNP , NN IN DT NNP NNP , NNP , NN NN IN NNP , NNP CC NNP .
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Mr. Canelo of Bear Stearns agrees : `` If we do have an economic slowdown , '' he says , `` companies with high debt ratios will be dumped en masse . '' NNP NNP IN NNP NNP VBZ : `` IN PRP VBP VB DT JJ NN , '' PRP VBZ , `` NNS IN JJ NN NNS MD VB VBN IN FW . ''
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The best course for individual investors is to sell these stocks now , the two advisers say . DT JJS NN IN JJ NNS VBZ TO VB DT NNS RB , DT CD NNS VBP .
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SELL ` WHISPER ' STOCKS . VB `` NN '' NNS .
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UAL Corp. 's difficulty in obtaining bank financing for its leveraged buy-out and its resulting price plunge is a tip-off to what 's going to happen to `` takeover stocks , '' says Mr. Canelo . NNP NNP POS NN IN VBG NN NN IN PRP$ JJ NN CC PRP$ VBG NN NN VBZ DT NN TO WP VBZ VBG TO VB TO `` NN NNS , '' VBZ NNP NNP .
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Takeover activity will slow down as more and more banks tighten their lending requirements , he says . NN NN MD VB RB IN JJR CC JJR NNS VBP PRP$ NN NNS , PRP VBZ .
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`` There 'll be fewer and fewer deals . '' `` EX MD VB JJR CC JJR NNS . ''
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Moreover , many financial advisers say individuals should be in the stock market as long-term investors , not as traders trying to catch the next hot stock . RB , JJ JJ NNS VBP NNS MD VB IN DT NN NN IN JJ NNS , RB IN NNS VBG TO VB DT JJ JJ NN .
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In general , they say , avoid takeover stocks . IN JJ , PRP VBP , VB NN NNS .
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COMPARE P\/E RATIOS WITH PROSPECTS . VB NNP NNS IN NNS .
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Mr. Canelo suggests that investors compare price\/earnings ratios -LRB- the price of a share of stock divided by a company 's per-share earnings for a 12-month period -RRB- with projected growth rates . NNP NNP VBZ IN NNS VBP NNS NNS ( DT NN IN DT NN IN NN VBN IN DT NN POS JJ NNS IN DT JJ NN ) IN VBN NN NNS .
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`` If you think earnings will grow at 20 % a year , it 's all right to pay 20 times earnings , '' he says . `` IN PRP VBP NNS MD VB IN CD NN DT NN , PRP VBZ DT NN TO VB CD NNS NNS , '' PRP VBZ .
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`` But do n't pay 30 times earnings for a company that 's expected to grow at 15 % a year . '' `` CC VBP RB VB CD NNS NNS IN DT NN WDT VBZ VBN TO VB IN CD NN DT NN . ''
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Mr. Canelo thinks the market will probably go higher , but `` will be ruthless with stocks if the earnings are n't there . '' NNP NNP VBZ DT NN MD RB VB JJR , CC `` MD VB JJ IN NNS IN DT NNS VBP RB RB . ''
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Mr. Markese cautions that investors should n't slavishly follow any specific price\/earnings sell trigger . NNP NNP VBZ IN NNS MD RB RB VB DT JJ NNS VBP VB .
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`` If you say sell anytime a company 's price\/earnings ratio exceeds 15 , that knocks out all your growth stocks , '' he says . `` IN PRP VBP VB RB DT NN POS NNS NN VBZ CD , WDT VBZ RP DT PRP$ NN NNS , '' PRP VBZ .
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`` You eliminate companies with substantial prospects that are moving up in price . '' `` PRP VBP NNS IN JJ NNS WDT VBP VBG IN IN NN . ''
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EXAMINE WHAT HAS CHANGED . VB WP VBZ VBN .
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Tom Schlesinger , market analyst at A.G. Edwards & Sons Inc. , says investors should consider selling if there has been a fundamental change in a company since they bought its stock . NNP NNP , NN NN IN NNP NNP CC NNP NNP , VBZ NNS MD VB VBG IN EX VBZ VBN DT JJ NN IN DT NN IN PRP VBD PRP$ NN .
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Say you purchased a stock because of a new product that was in the works . VB PRP VBD DT NN IN IN DT JJ NN WDT VBD IN DT NNS .
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Now , because of various difficulties , the product has been scrapped . RB , IN IN JJ NNS , DT NN VBZ VBN VBN .
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Time to sell , says Mr. Schlesinger . NNP TO VB , VBZ NNP NNP .
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Similarly , he says , suppose you were attracted to a company because of expectations that sales would hit $ 200 million by 1990 . RB , PRP VBZ , VBP PRP VBD VBN TO DT NN IN IN NNS IN NNS MD VB $ CD CD IN CD .
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If things have n't worked out that well , and sales wo n't hit $ 200 million until 1992 , it 's time to consider selling , he says . IN NNS VBP RB VBN RP IN RB , CC NNS MD RB VB $ CD CD IN CD , PRP VBZ NN TO VB VBG , PRP VBZ .
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USX Corp. declined a United Steelworkers request for a reopening of its four-year labor contract that is due to expire Jan. 31 , 1991 . NNP NNP VBD DT NNP NNPS NN IN DT VBG IN PRP$ JJ NN NN WDT VBZ JJ TO VB NNP CD , CD .
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The union on Oct. 5 requested that the contract be reopened to restore all pay and benefits that the union gave up in the 1982-83 and 1986-87 rounds of bargaining . DT NN IN NNP NN VBD IN DT NN VB VBN TO VB DT NN CC NNS IN DT NN VBD IN IN DT CD CC CD NNS IN NN .
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A United Steelworkers spokeman said Lynn Williams , the union 's president , was out of town . DT NNP NNPS NN VBD NNP NNP , DT NN POS NN , VBD IN IN NN .
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The union wo n't respond to the USX statement until Mr. Williams has studied it , the spokesman said . DT NN MD RB VB TO DT NNP NN IN NNP NNP VBZ VBN PRP , DT NN VBD .
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Robert A. Oswald , chief financial officer and a director of this natural-gas pipeline company , was elected to the additional position of executive vice president . NNP NNP NNP , JJ JJ NN CC DT NN IN DT NN NN NN , VBD VBN TO DT JJ NN IN JJ NN NN .
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In addition , Michael W. O'Donnell , executive vice president of a Columbia unit , was named assistant chief financial officer and a senior vice president of the parent company . IN NN , NNP NNP NNP , JJ NN NN IN DT NNP NN , VBD VBN NN NN JJ NN CC DT JJ NN NN IN DT NN NN .
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The appointments take effect Nov. 1 . DT NNS VBP NN NNP CD .
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Both men are 44 years old . DT NNS VBP CD NNS JJ .
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This magazine and book publisher said three men were elected directors , increasing the board to 10 . DT NN CC NN NN VBD CD NNS VBD VBN NNS , VBG DT NN TO CD .
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They are : James R. Eiszner , 62 years old and chairman and chief executive officer of CPC International Inc. ; Robert G. Schwartz , 61 , chairman , president and chief executive officer of Metropolitan Life Insurance Co. , and Walter V. Shipley , 53 , chairman and chief executive officer of Chemical Banking Corp . PRP VBP : NNP NNP NNP , CD NNS JJ CC NN CC JJ JJ NN IN NNP NNP NNP : NNP NNP NNP , CD , NN , NN CC JJ JJ NN IN NNP NNP NNP NNP , CC NNP NNP NNP , CD , NN CC JJ JJ NN IN NNP NNP NNP .
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BankAmerica Corp. reported a 34 % jump in third-quarter earnings , as its rocket-like recovery from nearly ruinous losses several years ago continued to be fueled by growth in consumer loans , higher interest margins and negligible loan losses . NNP NNP VBD DT CD NN NN IN JJ NNS , IN PRP$ JJ NN IN RB JJ NNS JJ NNS RB VBD TO VB VBN IN NN IN NN NNS , JJR NN NNS CC JJ NN NNS .
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For the quarter , BankAmerica said it earned $ 254 million , or $ 1.16 a share , compared with $ 190 million , or 97 cents a share , a year earlier . IN DT NN , NNP VBD PRP VBD $ CD CD , CC $ CD DT NN , VBN IN $ CD CD , CC CD NNS DT NN , DT NN RBR .
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BankAmerica spokesmen said preliminary reports indicate the company was n't materially affected by the Tuesday earthquake . NNP NNS VBD JJ NNS VBP DT NN VBD RB RB VBN IN DT NNP NN .
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All but eight of the 850 branches , which had some structural damage , reopened yesterday for business . DT CC CD IN DT CD NNS , WDT VBD DT JJ NN , VBD NN IN NN .
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Automated teller machine operations also were up and operating yesterday , a bank spokesman said . NNP NN NN NNS RB VBD IN CC VBG NN , DT NN NN VBD .
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For the first time in nearly two years , BankAmerica results failed to improve in consecutive quarters , but the decline from the second quarter was attributable to special factors . IN DT JJ NN IN RB CD NNS , NNP NNS VBD TO VB IN JJ NNS , CC DT NN IN DT JJ NN VBD JJ TO JJ NNS .
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Third-quarter profit was 16 % below the $ 304 million , or $ 1.50 a share , earned in the 1989 second quarter . JJ NN VBD CD NN IN DT $ CD CD , CC $ CD DT NN , VBD IN DT CD JJ NN .
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The company cited higher tax credits in the second quarter , totaling $ 63 million , compared with $ 28 million in the third quarter . DT NN VBD JJR NN NNS IN DT JJ NN , VBG $ CD CD , VBN IN $ CD CD IN DT JJ NN .
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Excluding tax credits , profit was 6 % below the second quarter . VBG NN NNS , NN VBD CD NN IN DT JJ NN .
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But that drop was caused entirely by a decline in Brazilian interest paid , to $ 5 million from $ 54 million the second quarter . CC DT NN VBD VBN RB IN DT NN IN JJ NN VBN , TO $ NN CD IN $ CD CD DT JJ NN .
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Moreover , BankAmerica continued to build its reserve against troubled foreign loans by boosting its loan-loss provision to $ 170 million , about the same as the previous quarter but well above the $ 100 million in the year-earlier quarter . RB , NNP VBD TO VB PRP$ NN IN JJ JJ NNS IN VBG PRP$ NN NN TO $ CD CD , IN DT JJ IN DT JJ NN CC RB IN DT $ CD CD IN DT JJ NN .
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The provision rate was far above BankAmerica 's actual net credit losses of $ 24 million in the third quarter , compared with $ 18 million in the second period and $ 38 million a year earlier . DT NN NN VBD RB IN NNP POS JJ JJ NN NNS IN $ CD CD IN DT JJ NN , VBN IN $ CD CD IN DT JJ NN CC $ CD CD DT NN RBR .
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As a result , BankAmerica said its reserve against troubled foreign-country loans , once below 25 % , now amounts to 45 % of the $ 6.4 billion of non-trade debt it calculates it is owed by those nations . IN DT NN , NNP VBD PRP$ NN IN JJ JJ NNS , RB IN CD NN , RB VBZ TO CD NN IN DT $ CD CD IN JJ NN PRP VBZ PRP VBZ VBN IN DT NNS .
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That level is about the same as some other big banks , but far below the 85 % and 100 % reserves of Bankers Trust New York Corp. and J.P. Morgan & Co. , respectively . DT NN VBZ IN DT JJ IN DT JJ JJ NNS , CC RB IN DT CD NN CC CD NN NNS IN NNP NNP NNP NNP NNP CC NNP NNP CC NNP , RB .
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By any measure , third-quarter earnings were still robust , equivalent to a 0.92 % return on assets even excluding tax credits . IN DT NN , JJ NNS VBD RB JJ , NN TO DT CD NN NN IN NNS RB VBG NN NNS .
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By that key measure of operating efficiency , BankAmerica turned in a better performance than its well-regarded Los Angeles-based competitor , Security Pacific Corp. , which posted a 0.89 % return in the third quarter . IN DT JJ NN IN VBG NN , NNP VBD IN DT JJR NN IN PRP$ JJ NNP JJ NN , NNP NNP NNP , WDT VBD DT CD NN NN IN DT JJ NN .
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But it continued to badly trail its San Francisco neighbor , Wells Fargo & Co. , which reported an extraordinary 1.25 % return on assets . CC PRP VBD TO RB VBP PRP$ NNP NNP NN , NNP NNP CC NNP , WDT VBD DT JJ CD NN NN IN NNS .
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Both returns do n't include any tax credits . DT NNS VBP RB VB DT NN NNS .
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`` They -LCB- BankAmerica -RCB- continue to show good performance , '' said Donald K. Crowley , an analyst with Keefe , Bruyette & Woods Inc. , San Francisco . `` PRP ( NNP ) VB TO VB JJ NN , '' VBD NNP NNP NNP , DT NN IN NNP , NNP CC NNP NNP , NNP NNP .
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In composite trading yesterday on the New York Stock Exchange , BankAmerica common stock edged up 12.5 cents to close at $ 32 a share . IN JJ NN NN IN DT NNP NNP NNP NNP , NNP JJ NN VBD IN CD NNS TO VB IN $ CD DT NN .
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Shareholder equity improved to 4.68 % from 4.23 % in the previous quarter . NN NN VBN TO CD NN IN CD NN IN DT JJ NN .
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The 4.52 % net interest margin , or the difference between the yield on a bank 's investments and the rate it pays for deposits and other borrowings , was still markedly higher than the 3.91 % ratio a year earlier , and is among the best in the industry , analysts said . DT CD NN JJ NN NN , CC DT NN IN DT NN IN DT NN POS NNS CC DT NN PRP VBZ IN NNS CC JJ NNS , VBD RB RB JJR IN DT CD NN NN DT NN RBR , CC VBZ IN DT JJS IN DT NN , NNS VBD .
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The high margin partly stems from continued strong growth in high-yielding consumer loans , which jumped 31 % to $ 17.47 billion from a year earlier , and residential mortgages , which rose 25 % to $ 12 billion . DT JJ NN RB VBZ IN VBN JJ NN IN JJ NN NNS , WDT VBD CD NN TO $ CD CD IN DT NN RBR , CC JJ NNS , WDT VBD CD NN TO $ CD CD .
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BankAmerica 's total loans rose 8 % to $ 71.36 billion . NNP POS JJ NNS VBD CD NN TO $ CD CD .
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For the nine months , BankAmerica profit soared 81 % to $ 833 million , or $ 4.07 a share , from $ 461 million , or $ 2.40 a share . IN DT CD NNS , NNP NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN .
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International Business Machines Corp. will announce on Tuesday a slew of software products aimed at eliminating some of the major problems involved in computerizing manufacturing operations , industry executives said . NNP NNP NNP NNP MD VB IN NNP DT NN IN NN NNS VBN IN VBG DT IN DT JJ NNS VBN IN VBG NN NNS , NN NNS VBD .
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Many plant floors currently resemble a Tower of Babel , with computers , robots and machine tools that generally speak their own language and have trouble talking to each other . JJ NN NNS RB VBP DT NNP IN NNP , IN NNS , NNS CC NN NNS WDT RB VB PRP$ JJ NN CC VBP NN VBG TO DT NN .
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As a result , if a problem develops on a production line , it is unlikely some supervisor sitting in front of a personal computer or workstation will know about it or be able to correct it . IN DT NN , IN DT NN VBZ IN DT NN NN , PRP VBZ JJ DT NN VBG IN NN IN DT JJ NN CC NN MD VB IN PRP CC VB JJ TO VB PRP .
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So IBM will be announcing more than 50 products that will be aimed at letting even the dumbest machine tool talk to the smartest mainframe , or anything in between . RB NNP MD VB VBG JJR IN CD NNS WDT MD VB VBN IN VBG RB DT JJS NN NN NN TO DT JJS NN , CC NN IN RB .
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In an unusual display of openness , IBM also will be helping customers tie together operations that include lots of equipment made by IBM 's competitors . IN DT JJ NN IN NN , NNP RB MD VB VBG NNS VBP RB NNS WDT VBP NNS IN NN VBN IN NNP POS NNS .
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In addition , the executives said IBM will be offering programming tools designed to let anyone working on a factory floor write ad-hoc software , for instance , to do statistical analysis that would pinpoint a problem on a manufacturing line . IN NN , DT NNS VBD NNP MD VB NN NN NNS VBN TO VB NN VBG IN DT NN NN VB JJ NN , IN NN , TO VB JJ NN WDT MD VB DT NN IN DT NN NN .
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In Armonk , N.Y. , an IBM spokeswoman confirmed that IBM executives will be announcing some computer-integrated-manufacturing plans next week but declined to elaborate . IN NNP , NNP , DT NNP NN VBD IN NNP NNS MD VB VBG DT JJ NNS JJ NN CC VBD TO VB .
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The industry executives said that , as usual with such broad announcements from IBM , this one will be part reality and part strategy . DT NN NNS VBD IN , IN JJ IN JJ JJ NNS IN NNP , DT PRP MD VB NN NN CC NN NN .
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So it will take many quarters for IBM to roll out all the products that customers need , and it will take years for customers to integrate the products into their operations . RB PRP MD VB JJ NNS IN NNP TO VB IN PDT DT NNS IN NNS VBP , CC PRP MD VB NNS IN NNS TO VB DT NNS IN PRP$ NNS .
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Also as usual , the products will appeal mostly to heavy users of IBM equipment , at least initially . RB IN JJ , DT NNS MD VB RB TO JJ NNS IN NNP NN , IN JJS RB .
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Still , consultants and industry executives said the products could help make manufacturing operations more efficient , and provide a boost to the computer-integrated-manufacturing market -- a market that Yankee Group , a research firm , has said may double to $ 40 billion by 1993 . RB , NNS CC NN NNS VBD DT NNS MD VB VB NN NNS RBR JJ , CC VB DT NN TO DT JJ NN : DT NN IN NNP NNP , DT NN NN , VBZ VBD MD VB TO $ CD CD IN CD .
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`` This is a step in the right direction , '' said Martin Piszczalski , a Yankee Group analyst . `` DT VBZ DT NN IN DT JJ NN , '' VBD NNP NNP , DT NNP NNP NN .
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He added , though , that `` a lot of this is intentions ... . PRP VBD , RB , IN `` DT NN IN DT VBZ NNS : .
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We 'll have to wait and see '' how the plan develops . PRP MD VB TO VB CC VB '' WRB DT NN VBZ .
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The announcements also should help IBM go on the offensive against Digital Equipment Corp. on the plant floor . DT NNS RB MD VB NNP VB IN DT NN IN NNP NNP NNP IN DT NN NN .
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While IBM has traditionally dominated the market for computers on the business side of manufacturing operations and has done well in the market for design tools , Digital has dominated computerized manufacturing . IN NNP VBZ RB VBN DT NN IN NNS IN DT NN NN IN NN NNS CC VBZ VBN RB IN DT NN IN NN NNS , NNP VBZ VBN JJ NN .
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Hewlett-Packard Co. also has begun to gain share in the whole computer-integrated-manufacturing arena . NNP NNP RB VBZ VBN TO VB NN IN DT JJ JJ NN .
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IBM will face an uphill climb against Digital , given Digital 's reputation for being better than IBM at hooking together different manufacturers ' computers . NNP MD VB DT JJ NN IN NNP , VBN NNP POS NN IN VBG JJR IN NNP IN VBG RB JJ NNS POS NNS .
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In addition , Hewlett-Packard , while a much smaller player , has made a big commitment to the sorts of industry standards that facilitate those hookups and could give IBM some problems . IN NN , NNP , IN DT RB JJR NN , VBZ VBN DT JJ NN TO DT NNS IN NN NNS WDT VBP DT NNS CC MD VB NNP DT NNS .
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Both can be expected to go after the market aggressively : Gartner Group Inc. , a research firm , estimated the Digital gets 30 % of its revenue from the manufacturing market , and Hewlett-Packard gets 50 % . DT MD VB VBN TO VB IN DT NN RB : NNP NNP NNP , DT NN NN , VBD DT NNP VBZ CD NN IN PRP$ NN IN DT NN NN , CC NNP VBZ CD NN .
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IBM , which Gartner Group said generates 22 % of its revenue in this market , should be able to take advantage of its loyal following among buyers of equipment . NNP , WDT NNP NNP VBD VBZ CD NN IN PRP$ NN IN DT NN , MD VB JJ TO VB NN IN PRP$ JJ NN IN NNS IN NN .
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That is because many companies will standardize on certain types of equipment as the various parts of the manufacturing market merge , and IBM is the biggest player . DT VBZ IN JJ NNS MD VB IN JJ NNS IN NN IN DT JJ NNS IN DT NN NN NN , CC NNP VBZ DT JJS NN .
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But much will depend on how quickly IBM can move . CC NN MD VB IN WRB RB NNP MD VB .
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The whole idea of computer-integrated manufacturing , CIM , seems to be making a comeback after losing a little luster over the past couple of years when it became apparent that it was n't a panacea that would make U.S. plants more efficient and banish foreign competition . DT JJ NN IN JJ NN , NNP , VBZ TO VB VBG DT NN IN VBG DT JJ NN IN DT JJ NN IN NNS WRB PRP VBD JJ IN PRP VBD RB DT NN WDT MD VB NNP NNS RBR JJ CC VB JJ NN .
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Erik Keller , a Gartner Group analyst , said organizational changes may still be required to really take advantage of CIM 's capabilities -- someone on the shop floor may not like having someone in an office using a personal computer to look over his shoulder , for instance , and may be able to prevent that from happening . NNP NNP , DT NNP NNP NN , VBD JJ NNS MD RB VB VBN TO RB VB NN IN NNP POS NNS : NN IN DT NN NN MD RB IN VBG NN IN DT NN VBG DT JJ NN TO VB IN PRP$ NN , IN NN , CC MD VB JJ TO VB IN IN VBG .
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But he said a system such as IBM 's should help significantly . CC PRP VBD DT NN JJ IN NNP POS MD VB RB .
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In making polyethylene sheets out of plastic chips , for instance , a chip sometimes does n't melt , gets caught in the machinery and creates a run in the sheets . IN VBG NN NNS IN IN NN NNS , IN NN , DT NN RB VBZ RB VB , VBZ VBN IN DT NN CC VBZ DT NN IN DT NNS .
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That can be expensive , because the problem may not be noticed for a while , and the sheets are typically thrown away . DT MD VB JJ , IN DT NN MD RB VB VBN IN DT NN , CC DT NNS VBP RB VBN RB .
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But Mr. Keller said that , if computers can be integrated into the process , they could alert an operator as soon as the problem occurred . CC NNP NNP VBD IN , IN NNS MD VB VBN IN DT NN , PRP MD VB DT NN RB RB IN DT NN VBD .
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They could also check through the orders on file to find a customer that was willing to accept a lower grade of polyethylene . PRP MD RB VB IN DT NNS IN NN TO VB DT NN WDT VBD JJ TO VB DT JJR NN IN NN .
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The computer would let the machine run just until that order was filled , eliminating waste . DT NN MD VB DT NN NN RB IN DT NN VBD VBN , VBG NN .
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This sort of improved link figures to eventually become a significant weapon for some companies . DT NN IN VBN NN NNS TO RB VB DT JJ NN IN DT NNS .
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Companies might be able to tell salespeople daily , for instance , about idle equipment , so they could offer discounts on whatever that equipment produces . NNS MD VB JJ TO VB NN JJ , IN NN , IN JJ NN , IN PRP MD VB NNS IN WDT DT NN VBZ .
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Salespeople also could get a precise reading on when products could be delivered -- in much the same way that Federal Express has marketed its ability to tell exactly where a package is in the delivery system . NNS RB MD VB DT JJ NN IN WRB NNS MD VB VBN : IN JJ DT JJ NN IN NNP NNP VBZ VBN PRP$ NN TO VB RB WRB DT NN VBZ IN DT NN NN .
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Ford Motor Co. 's Merkur , the company 's first new car franchise in the U.S. since the Edsel was unveiled in 1957 , now will share Edsel 's fate . NNP NNP NNP POS NNP , DT NN POS JJ JJ NN NN IN DT NNP IN DT NNP VBD VBN IN CD , RB MD VB NNP POS NN .
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Ford said yesterday it will halt imports of the Merkur Scorpio , a $ 28,000 luxury sedan built by Ford of Europe in West Germany . NNP VBD NN PRP MD VB NNS IN DT NNP NNP , DT $ CD NN NN VBN IN NNP IN NNP IN NNP NNP .
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The cars are sold under a separate franchise with its own sign in front of Lincoln-Mercury dealers -- as opposed to new models such as Taurus or Escort , which are sold under existing Ford divisions . DT NNS VBP VBN IN DT JJ NN IN PRP$ JJ NN IN NN IN NNP NNS : IN VBN TO JJ NNS JJ IN NNP CC NNP , WDT VBP VBN IN VBG NNP NNS .
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The move to halt imports -- announced 29 years and 11 months to the day after Henry Ford II declared that the Edsel division and its gawky car would be scrapped -- kills the four-year-old Merkur brand in the U.S. market . DT NN TO VB NNS : VBD CD NNS CC CD NNS TO DT NN IN NNP NNP NNP VBD IN DT NNP NN CC PRP$ JJ NN MD VB VBN : VBZ DT JJ NNP NN IN DT NNP NN .
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It will continue to be sold in the European market . PRP MD VB TO VB VBN IN DT JJ NN .
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Merkur 's death is n't nearly as costly to Ford as was the Edsel debacle , because Merkur was a relatively low-budget project with limited sales goals . NNP POS NN VBZ RB RB IN JJ TO NNP IN VBD DT NNP NN , IN NNP VBD DT RB JJ NN IN JJ NNS NNS .
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Still , Merkur 's demise is a setback for Ford at a time when the company 's image as the U.S. auto maker with the golden touch is showing signs of strain . RB , NNP POS NN VBZ DT NN IN NNP IN DT NN WRB DT NN POS NN IN DT NNP NN NN IN DT JJ NN VBZ VBG NNS IN NN .
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The No. 2 auto maker 's new Thunderbird and Mercury Cougar models have n't met sales expectations in the year since they were introduced , and Ford 's trucks are losing ground to their GM rivals . DT NN CD NN NN POS JJ NNP CC NNP NNP NNS VBP RB VBN NNS NNS IN DT NN IN PRP VBD VBN , CC NNP POS NNS VBP VBG NN TO PRP$ NNP NNS .
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This fall , Ford introduced only one new product : A restyled version of its hulking Lincoln Town Car luxury model . DT NN , NNP VBD RB CD JJ NN : DT VBN NN IN PRP$ JJ NNP NNP NNP NN NN .
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The demise of Merkur -LRB- pronounced mare-COOR -RRB- comes after a September in which 670 Merkur dealers managed to sell only 93 Scorpios . DT NN IN NNP ( VBN NNP ) VBZ IN DT NNP IN WDT CD NNP NNS VBD TO VB RB CD NNPS .
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Total Merkur sales for the first nine months dropped 46 % from a year ago to just 6,320 cars . NNP NNP NNS IN DT JJ CD NNS VBD CD NN IN DT NN RB TO RB CD NNS .
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Merkur is n't the only European luxury brand having problems in the U.S. . NNP VBZ RB DT RB JJ NN NN VBG NNS IN DT NNP .
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The Japanese assault on the luxury market is rapidly overshadowing such European makes as Audi and Saab , which at least have clear brand images . DT JJ NN IN DT NN NN VBZ RB VBG JJ JJ NNS IN NNP CC NNP , WDT IN JJS VBP JJ NN NNS .
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Merkur , as an import on domestic car lots , suffered from the same sort of image confusion that is hobbling sales of imports at General Motors Corp. and Chrysler Corp . NNP , IN DT NN IN JJ NN NNS , VBD IN DT JJ NN IN NN NN WDT VBZ VBG NNS IN NNS IN NNP NNPS NNP CC NNP NNP .
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Merkur was originally aimed at enticing into Lincoln-Mercury dealerships the kind of young , affluent buyers who would n't be caught dead in a Town Car -- a vehicle so bargelike that Ford is staging a press event next month linking the Town Car 's launch to the commissioning of a new aircraft carrier in Norfolk , Va . NNP VBD RB VBN IN VBG IN NNP NNS DT NN IN JJ , JJ NNS WP MD RB VB VBN JJ IN DT NNP NNP : DT NN RB JJ IN NNP VBZ VBG DT NN NN JJ NN VBG DT NNP NNP POS NN TO DT NN IN DT JJ NN NN IN NNP , NNP .
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But the brand had trouble from the start . CC DT NN VBD NN IN DT NN .
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The first Merkur , the XR4Ti , went on sale in early 1985 . DT JJ NNP , DT NNP , VBD IN NN IN JJ CD .
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The sporty coupe foundered in part because American buyers did n't go for the car 's unusual double-wing rear spoiler . DT JJ NN VBD IN NN IN JJ NNS VBD RB VB IN DT NN POS JJ JJ JJ NN .
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In May 1987 , Ford began importing the Scorpio sedan from West Germany to sell next to a redesigned XR4Ti in showrooms . IN NNP CD , NNP VBD VBG DT NNP NN IN NNP NNP TO VB JJ TO DT VBN NNP IN NNS .
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Ford officials said they expected the two Merkurs would sell about 15,000 cars a year , and in 1988 they reached that goal , as sales hit 15,261 cars . NNP NNS VBD PRP VBD DT CD NNPS MD VB IN CD NNS DT NN , CC IN CD PRP VBD DT NN , IN NNS VBD CD NNS .
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It was downhill from there , however . PRP VBD RB IN EX , RB .
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One major factor was the decline of the dollar against the mark , which began less than a year after Merkur 's 1985 launch . CD JJ NN VBD DT NN IN DT NN IN DT NN , WDT VBD JJR IN DT NN IN NNP POS CD NN .
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As the West German currency rose , so did Merkur prices . IN DT JJ JJ NN VBD , RB VBD NNP NNS .
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The Merkur cars also suffered from spotty quality , some dealers say . DT NNP NNS RB VBD IN JJ NN , DT NNS VBP .
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`` It was like a comedy of errors , '' says Martin J. `` Hoot '' McInerney , a big dealer whose Star Lincoln-Mercury-Merkur operation in Southfield , Mich. , sold more XR4Ti 's than any other dealership . `` PRP VBD IN DT NN IN NNS , '' VBZ NNP NNP `` NNP '' NNP , DT JJ NN WP$ NNP NNP NN IN NNP , NNP , VBN JJR NNP POS IN DT JJ NN .
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But by the third quarter of 1988 , Scorpios had a high satisfaction rating in internal Ford studies , a spokesman said . CC IN DT JJ NN IN CD , NNPS VBD DT JJ NN NN IN JJ NNP NNS , DT NN VBD .
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Apparently , however , the improvement came too late . RB , RB , DT NN VBD RB JJ .
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Last fall , Ford announced it would discontinue the XR4Ti in the U.S. at the end of the 1989 model year . JJ NN , NNP VBD PRP MD VB DT NNP IN DT NNP IN DT NN IN DT CD NN NN .
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Ford said then it would keep the Scorpio . NNP VBD RB PRP MD VB DT NNP .
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This year , Scorpio sales plummeted , and at the current sales pace it would take Ford 242 days to sell off the current Scorpio inventory of about 4,600 cars . DT NN , NNP NNS VBD , CC IN DT JJ NNS NN PRP MD VB NNP CD NNS TO VB IN DT JJ NNP NN IN IN CD NNS .
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Canadian Pacific Ltd. said it proposed acquiring the 44 % of Soo Line Corp. it does n't already own for $ 19.50 a share , or about $ 81.9 million , after failing to find a buyer for its majority stake earlier this year . NNP NNP NNP VBD PRP VBD VBG DT CD NN IN NNP NNP NNP PRP VBZ RB RB JJ IN $ CD DT NN , CC RB $ CD CD , IN VBG TO VB DT NN IN PRP$ NN NN RBR DT NN .
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Soo Line said its board appointed a special committee of independent directors to study the proposal . NNP NNP VBD PRP$ NN VBD DT JJ NN IN JJ NNS TO VB DT NN .
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The troubled Minneapolis-based railroad concern said the committee has the authority to hire financial and legal advisers to assist it . DT JJ JJ NN NN VBD DT NN VBZ DT NN TO VB JJ CC JJ NNS TO VB PRP .
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The proposed acquisition will be subject to approval by the Interstate Commerce Commission , Soo Line said . DT VBN NN MD VB NN TO NN IN DT NNP NNP NNP , NNP NNP VBD .
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In New York Stock Exchange composite trading yesterday , Soo Line shares jumped well above the proposed price , closing at $ 20.25 , up $ 2.75 . IN NNP NNP NNP NNP JJ NN NN , NNP NNP NNS VBD RB IN DT VBN NN , VBG IN $ CD , IN $ CD .
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Canadian Pacific put its 56 % stake in Soo Line up for sale last year but could n't find any takers . NNP NNP VB PRP$ CD NN NN IN NNP NNP IN IN NN JJ NN CC MD RB VB DT NNS .
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Canadian Pacific , which has interests in transportation , telecommunications , forest products , energy and real estate , finally took its majority block off the market this spring . NNP NNP , WDT VBZ NNS IN NN , NNS , NN NNS , NN CC JJ NN , RB VBD PRP$ NN NN IN DT NN DT NN .
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`` It turned out we could n't sell it , '' a Canadian Pacific official said , adding that acquiring the remainder of Soo Line is now `` the best way to rationalize operations . '' `` PRP VBD IN PRP MD RB VB PRP , '' DT NNP NNP NN VBD , VBG IN VBG DT NN IN NNP NNP VBZ RB `` DT JJS NN TO VB NNS . ''
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Canadian Pacific is Soo Line 's biggest customer and has owned a majority stake in the U.S. railroad since 1947 . NNP NNP VBZ NNP NNP POS JJS NN CC VBZ VBN DT NN NN IN DT NNP NN IN CD .
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Canadian Pacific and Soo Line tracks connect at two points in the West on the Canada-U.S. border and the two companies operate a very successful Chicago-Montreal rail service . NNP NNP CC NNP NNP VBZ VB IN CD NNS IN DT NNP IN DT NNP NN CC DT CD NNS VBP DT RB JJ NNP NN NN .
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Separately , for the first nine months , Soo Line reported a loss of $ 398,000 , or four cents a share , compared with net income of $ 12.5 million , or $ 1.32 a share , a year earlier . RB , IN DT JJ CD NNS , NNP NNP VBD DT NN IN $ CD , CC CD NNS DT NN , VBN IN JJ NN IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Revenue fell 5.8 % to $ 407.9 million from $ 433.2 million . NN VBD CD NN TO $ CD CD IN $ CD CD .
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The company had a loss from operations of $ 1.7 million . DT NN VBD DT NN IN NNS IN $ CD CD .
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Golden Nugget Inc. reported a third-quarter net loss of $ 13.1 million , or 76 cents a share , based on 17.2 million common shares and dilutive equivalents outstanding . NNP NNP NNP VBD DT JJ JJ NN IN $ CD CD , CC CD NNS DT NN , VBN IN CD CD JJ NNS CC JJ NNS JJ .
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The results compare with a year-earlier net loss of $ 1.5 million , or seven cents a share , based on 20.3 million common and dilutive equivalents outstanding . DT NNS VBP IN DT JJ JJ NN IN $ CD CD , CC CD NNS DT NN , VBN IN CD CD JJ CC JJ NNS JJ .
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Operating revenue rose 25 % to $ 52.1 million from $ 41.8 million a year ago . NN NN VBD CD NN TO $ CD CD IN $ CD CD DT NN RB .
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Results for the latest quarter include nonoperating items of $ 23.9 million , versus $ 8.4 million a year earlier . NNS IN DT JJS NN VBP VBG NNS IN $ CD CD , IN $ CD CD DT NN RBR .
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Most of the expenses stem from the company 's huge Mirage resort-casino scheduled to open next month along the Strip , and an April 1989 financing by units operating the downtown Golden Nugget property . JJS IN DT NNS VBP IN DT NN POS JJ NNP NN VBN TO VB JJ NN IN DT NNP , CC DT NNP CD NN IN NNS VBG DT NN NNP NNP NN .
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For the nine months , Golden Nugget reported a net loss of $ 11.4 million , or 69 cents a share , based on 16.6 million common and dilutive equivalents outstanding . IN DT CD NNS , NNP NNP VBD DT JJ NN IN $ CD CD , CC CD NNS DT NN , VBN IN CD CD JJ CC JJ NNS JJ .
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The year earlier , the company had a net loss of $ 4.3 million , or 20 cents a share , based on 21 million common shares and dilutive equivalents outstanding . DT NN RBR , DT NN VBD DT JJ NN IN $ CD CD , CC CD NNS DT NN , VBN IN CD CD JJ NNS CC JJ NNS JJ .
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The 1988 results include a $ 10.7 million charge stemming from a litigation judgment . DT CD NNS VBP DT $ CD CD NN VBG IN DT NN NN .
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Separately , the casino operator said its board approved a plan to buy-back as many as three million common shares from time to time , either in the open market or through private transactions . RB , DT NN NN VBD PRP$ NN VBD DT NN TO VB RB JJ IN CD CD JJ NNS IN NN TO VB , DT NN DT JJ NN CC IN JJ NNS .
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An additional 299,000 shares are authorized for repurchase under an earlier stock buy-back program . DT JJ CD NNS VBP VBN IN NN IN DT JJR NN NN NN .
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John Uphoff , an analyst with Raymond James & Associates , said the results were n't surprising , and attributed the buy-back to management 's confidence in the Mirage 's ability to generate strong cash flow in 1990 . NNP NNP , DT NN IN NNP NNP CC NNPS , VBD DT NNS VBD RB JJ , CC VBD DT NN TO NN POS NN IN DT NNP POS NN TO VB JJ NN NN IN CD .
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Yesterday , in New York Stock Exchange composite trading , Golden Nugget common closed at $ 28.25 , up $ 2 . NN , IN NNP NNP NNP NNP JJ NN , NNP NNP NN VBD IN $ CD , IN $ CD .
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Capital Holding Corp. said it requested and received the resignation of John A. Franco , its vice chairman , as an officer and a director of the life insurance holding company . NNP NNP NNP VBD PRP VBD CC VBD DT NN IN NNP NNP NNP , PRP$ NN NN , IN DT NN CC DT NN IN DT NN NN VBG NN .
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The company said Mr. Franco developed a plan to establish a business that might be competitive with Capital Holding Corp. 's Accumulation and Investment Group , which Mr. Franco headed . DT NN VBD NNP NNP VBD DT NN TO VB DT NN WDT MD VB JJ IN NNP NNP NNP POS NNP CC NNP NNP , WDT NNP NNP VBD .
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The group temporarily will report to Irving W. Bailey II , chairman , president and chief executive officer of Capital Holding . DT NN RB MD VB TO NNP NNP NNP NNP , NN , NN CC JJ JJ NN IN NNP NNP .
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Mr. Franco , 47 years old , said in a telephone interview that he has been considering and discussing a number of possible business ventures , but that `` nothing is at a mature stage . '' NNP NNP , CD NNS JJ , VBD IN DT NN NN IN PRP VBZ VBN VBG CC VBG DT NN IN JJ NN NNS , CC IN `` NN VBZ IN DT JJ NN . ''
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He said he `` did n't argue with '' the company 's decision to seek his resignation because contemplating outside business ventures can distract an executive from performing his best `` at the job he is paid to do . '' PRP VBD PRP `` VBD RB VB IN '' DT NN POS NN TO VB PRP$ NN IN VBG IN NN NNS MD VB DT NN IN VBG PRP$ JJS `` IN DT NN PRP VBZ VBN TO VB . ''
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Martin H. Ruby , a managing director of Capital Holding 's Accumulation and Investment Group , also resigned to pursue other business interests , Capital Holding said . NNP NNP NNP , DT VBG NN IN NNP NNP POS NNP CC NNP NNP , RB VBD TO VB JJ NN NNS , NNP NNP VBD .
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Mr. Ruby , 39 , said that he had `` an amicable parting '' with Capital Holding and that he has `` a number of ventures in the financial-services area '' under consideration . NNP NNP , CD , VBD IN PRP VBD `` DT JJ NN '' IN NNP NNP CC IN PRP VBZ `` DT NN IN NNS IN DT NNS NN '' IN NN .
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He said that his resignation was a mutual decision with Capital Holding management , but that he was n't actually asked to resign . PRP VBD IN PRP$ NN VBD DT JJ NN IN NNP NNP NN , CC IN PRP VBD RB RB VBD TO VB .
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The Accumulation and Investment Group is responsible for the investment operations of all Capital Holding 's insurance businesses and markets guaranteed investment contracts to bank trust departments and other institutions . DT NNP CC NNP NNP VBZ JJ IN DT NN NNS IN DT NNP NNP POS NN NNS CC NNS VBD NN NNS TO VB NN NNS CC JJ NNS .
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It also sells single-premium annuities to individuals . PRP RB VBZ JJ NNS TO NNS .
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Mr. Bailey said he expects to name a new group president to head that operation following the Nov. 8 board meeting . NNP NNP VBD PRP VBZ TO VB DT JJ NN NN TO VB DT NN VBG DT NNP CD NN NN .
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@ IN
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Money Market Deposits - a 6.23 % NNP NNP NNS : DT CD NN
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a - Average rate paid yesterday by 100 large banks and thrifts in the 10 largest metropolitan areas as compiled by Bank Rate Monitor . DT : NNP NN VBD NN IN CD JJ NNS CC NNS IN DT CD JJS JJ NNS IN VBN IN NNP NNP NNP .
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b - Current annual yield . NN : JJ JJ NN .
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Guaranteed minimum 6 % . VBN JJ CD NN .
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-LRB- During its centennial year , The Wall Street Journal will report events of the past century that stand as milestones of American business history . -RRB- ( IN PRP$ NN NN , DT NNP NNP NNP MD VB NNS IN DT JJ NN WDT VBP IN NNS IN JJ NN NN . )
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PLASTIC PENCILS , CODE-NAMED E-71 , made their hush-hush debut in children 's pencil boxes at five-and-dime stores in 1973 . NN NNS , VBN NNP , VBD PRP$ JJ NN IN NNS POS NN NNS IN JJ NNS IN CD .
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But few knew it then and most still think all pencils are wooden . CC NN VBD PRP RB CC RBS RB VBP DT NNS VBP JJ .
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Eagle Pencil of Shelbyville , Tenn. , `` Pencil City U.S.A. , '' had made its earliest pilot plastic pencils in 1971 . NNP NNP IN NNP , NNP , `` NNP NNP NNP , '' VBD VBN PRP$ JJS NN NN NNS IN CD .
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But it was n't until after it hired Arthur D. Little , a Cambridge , Mass. , research concern , that its new product was refined for commercial sale in 1973 . CC PRP VBD RB IN IN PRP VBD NNP NNP NNP , DT NNP , NNP , NN NN , IN PRP$ JJ NN VBD JJ IN JJ NN IN CD .
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Three A.D.L. inventors applied April 6 , 1973 , for the patent , which was assigned and awarded in 1976 to Hasbro Industries , then Eagle 's parent . CD NNP NNS VBD NNP CD , CD , IN DT NN , WDT VBD VBN CC VBN IN CD TO NNP NNPS , RB NNP POS NN .
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Pencil pushers chew and put the plastic models behind their ears just like traditional pencils made of glued strips of California incense cedar filled with ceramic lead . NN NNS VBP CC VB DT NN NNS IN PRP$ NNS RB IN JJ NNS VBN IN VBN NNS IN NNP NN NN VBN IN JJ NN .
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It takes five steps to make standard pencils , just one for the plastic type . PRP VBZ CD NNS TO VB JJ NNS , RB CD IN DT NN NN .
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Automated machines coextrude long plastic sheaths with graphite-plastic cores that are printed , cut , painted and eraser-fitted . NNP NNS VBP JJ NN NNS IN JJ NNS WDT VBP VBN , VB , VBN CC JJ .
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`` After more than 200 years , something new has happened to pencils , '' said Arthur D. Little in a 1974 report that publicly described the previously secret item . `` IN JJR IN CD NNS , NN JJ VBZ VBN TO NNS , '' VBD NNP NNP NNP IN DT CD NN IN RB VBN DT RB JJ NN .
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Eagle 's plastic type sharpens and looks like a wooden pencil . NNP POS NN NN VBZ CC VBZ IN DT JJ NN .
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A major difference is that a snapped wooden pencil will have a slivered break while a plastic model will break cleanly . DT JJ NN VBZ IN DT VBN JJ NN MD VB DT VBN NN IN DT NN NN MD VB RB .
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The softness of the core constrains the plastic models to No. 1 , No. 2 or No. 3-type pencils , which account for the bulk of the market . DT NN IN DT NN VBZ DT NN NNS TO VB CD , NN CD CC NN JJ NNS , WDT VBP IN DT NN IN DT NN .
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Artists and draftsmen need harder `` leads . '' NNS CC NNS VBP JJR `` VBZ . ''
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Eagle , now called Eagle-Berol , remains a leading company among the 10 in the U.S. that produced about 2.3 billion pencils last year , according to the Pencil Makers Association . NNP , RB VBN NNP , VBZ DT VBG NN IN DT CD IN DT NNP WDT VBD IN CD CD NNS JJ NN , VBG TO DT NNP NNP NNP .
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It 's a trade secret how many were plastic , and most writers still do n't know what they 're using . PRP VBZ DT NN JJ WRB NN VBD NN , CC RBS NNS RB VBP RB VB WP PRP VBP VBG .
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H.F. Ahmanson & Co. , the nation 's largest thrift holding company , posted a 12 % earnings decline for the third quarter while another large California savings and loan , Great Western Financial Corp. , reported a slight earnings gain . NNP NNP CC NNP , DT NN POS JJS NN VBG NN , VBD DT CD NN NNS NN IN DT JJ NN IN DT JJ NNP NNS CC NN , NNP NNP NNP NNP , VBD DT JJ NNS NN .
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H.F. Ahmanson , parent of Home Savings of America , reported third-quarter net of $ 49.2 million , or 50 cents a share , down from $ 56.1 million , or 57 cents a share , in the year-earlier period . NNP NNP , NN IN NNP NNP IN NNP , VBD JJ NN IN $ CD CD , CC CD NNS DT NN , RB IN $ CD CD , CC CD NNS DT NN , IN DT JJ NN .
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Most of the earnings decline reflected an increase in the company 's effective tax rate to 44 % from 37 % in the year-ago third quarter when nonrecurring tax credits were recorded , the company said . JJS IN DT NNS NN VBD DT NN IN DT NN POS JJ NN NN TO CD NN IN CD NN IN DT JJ JJ NN WRB VBG NN NNS VBD VBN , DT NN VBD .
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Pretax earnings declined 1.3 % . JJ NNS VBD CD NN .
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For the nine months , Los Angeles-based H.F. Ahmanson had profit of $ 128.1 million , or $ 1.29 a share , a 4.6 % decline from earnings of $ 134.2 million in the year-ago nine months . IN DT CD NNS , NNP JJ NNP NNP VBD NN IN $ CD CD , CC $ CD DT NN , DT CD NN NN IN NNS IN $ CD CD IN DT JJ CD NNS .
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The company said the decline was attributable to a 79 % reduction in net gains on loan sales this year . DT NN VBD DT NN VBD JJ TO DT CD NN NN IN JJ NNS IN NN VBZ DT NN .
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Third-quarter spreads widened to the highest level in two years as loan portfolio yields rose and money costs declined , the company said . JJ NNS VBN TO DT JJS NN IN CD NNS IN NN NN NNS VBD CC NN NNS VBD , DT NN VBD .
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Great Western Financial said third-quarter profit rose slightly to $ 68.4 million , or 52 cents a share , from $ 67.9 million , or 53 cents a share , from a year ago . NNP NNP NNP VBD JJ NN VBD RB TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN , IN DT NN RB .
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Great Western , based in Beverly Hills , Calif. , is a financial services firm and parent to Great Western Bank , an S&L . NNP JJ , VBN IN NNP NNP , NNP , VBZ DT JJ NNS NN CC NN TO NNP NNP NNP , DT NNP .
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Great Western said it had a sharp increase in margins in the recent third quarter . JJ NN VBD PRP VBD DT JJ NN IN NNS IN DT JJ JJ NN .
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Margins are the difference between the yield on the company 's earning assets and its own cost of funds . NNS VBP DT NN IN DT NN IN DT NN POS VBG NNS CC PRP$ JJ NN IN NNS .
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But a reduction in one-time gains on the sale of various assets and an increase in the company 's provision for loan losses held down the earnings gain , the company said . CC DT NN IN JJ NNS IN DT NN IN JJ NNS CC DT NN IN DT NN POS NN IN NN NNS VBN RP DT NNS NN , DT NN VBD .
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Great Western 's provision for loan losses was increased to $ 27.9 million for the recent quarter compared with $ 21.8 million a year ago primarily as a result of `` continued weakness in various commercial and multifamily real estate markets outside California . '' NNP NN POS NN IN NN NNS VBD VBN TO $ CD CD IN DT JJ NN VBN IN $ CD CD DT NN RB RB IN DT NN IN `` VBD NN IN JJ JJ CC JJ JJ NN NNS IN NNP . ''
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For the nine months Great Western posted net of $ 177.5 million , or $ 1.37 a share , a 5.9 % decline from $ 188.7 million , or $ 1.48 a share , in the year-ago period . IN DT CD NNS NNP NN VBD NN IN $ CD CD , CC $ CD DT NN , DT CD NN NN IN $ CD CD , CC $ CD DT NN , IN DT JJ NN .
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Dun & Bradstreet Corp. posted a 15 % rise in third-quarter earnings . NNP CC NNP NNP VBD DT CD NN NN IN JJ NNS .
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But revenue declined more than 2 % , reflecting in part a continuing drop in sales of credit services in the wake of controversy over the company 's sales practices . CC NN VBD JJR IN CD NN , VBG IN NN DT VBG NN IN NNS IN NN NNS IN DT NN IN NN IN DT NN POS NNS NNS .
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The information company also cited the stronger dollar , the sale last year of its former Official Airline Guides unit and other factors . DT NN NN RB VBD DT JJR NN , DT NN JJ NN IN PRP$ JJ NNP NNP NNS NN CC JJ NNS .
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Net income rose to a record $ 155.3 million , or 83 cents a share , from $ 134.8 million , or 72 cents a share . JJ NN VBD TO DT NN $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC CD NNS DT NN .
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Revenue fell to $ 1.04 billion from $ 1.07 billion . NN VBD TO $ CD CD IN $ CD CD .
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In composite trading on the New York Stock Exchange , Dun & Bradstreet closed yesterday at $ 53.75 , down 25 cents a share . IN JJ NN IN DT NNP NNP NNP NNP , NNP CC NNP VBD NN IN $ CD , RB CD NNS DT NN .
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Analysts said the results were as expected , but several added that the earnings masked underlying weaknesses in several businesses . NNS VBD DT NNS VBD IN VBN , CC JJ VBD IN DT NNS VBN VBG NNS IN JJ NNS .
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`` The quality of earnings was n't as high as I expected , '' said Eric Philo , an analyst for Goldman , Sachs & Co . `` DT NN IN NNS VBD RB RB JJ IN PRP VBD , '' VBD NNP NNP , DT NN IN NNP , NNP CC NNP .
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For example , he noted , operating profit was weaker than he had anticipated , but nonoperating earnings of $ 14.6 million and a lower tax rate helped boost net income . IN NN , PRP VBD , VBG NN VBD JJR IN PRP VBD VBN , CC VBG NNS IN $ CD CD CC DT JJR NN NN VBD VB JJ NN .
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Dun & Bradstreet said operating earnings rose 8 % , excluding the sale of Official Airline Guides . NNP CC NNP VBD VBG NNS VBD CD NN , VBG DT NN IN NNP NNP NNS .
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Third-quarter sales of U.S. credit services were `` disappointingly below sales '' of a year earlier , Dun & Bradstreet said . JJ NNS IN NNP NN NNS VBD `` RB IN NNS '' IN DT NN RBR , NNP CC NNP VBD .
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As previously reported , those sales have been declining this year in the wake of allegations that the company engaged in unfair sales practices that encouraged customers to overpurchase services . IN RB VBD , DT NNS NN VBN VBG DT NN IN DT NN IN NNS IN DT NN VBN IN JJ NNS NNS WDT VBD NNS TO VB NNS .
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The company has denied the allegations but has negotiated a proposed $ 18 million settlement of related lawsuits . DT NN VBZ VBN DT NNS CC VBZ VBN DT VBN $ CD CD NN IN VBN NNS .
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Analysts predict the sales impact will linger . NNS VBP DT NNS NN MD VB .
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`` There is n't much question there will continue to be a ripple effect , '' said John Reidy , an analyst with Drexel Burnham Lambert Inc . `` EX VBZ RB JJ NN EX MD VB TO VB DT NN NN , '' VBD NNP NNP , DT NN IN NNP NNP NNP NNP .
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Dun & Bradstreet noted that price competition in its Nielsen Marketing Research , Nielsen Clearing House and Donnelley Marketing businesses also restrained revenue growth . NNP CC NNP VBD DT NN NN IN PRP$ NNP NNP NNP , NNP NNP NNP CC NNP NNP NNS RB VBN NN NN .
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It cited cyclical conditions in its Moody 's Investors Service Inc. and D&B Plan Services units . PRP VBD JJ NNS IN PRP$ NNP POS NNP NNP NNP CC NNP NNP NNPS NNS .
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For the nine months , net income rose 19 % to $ 449 million , or $ 2.40 a share , from $ 375.9 million , or $ 2.01 a share , a year earlier . IN DT CD NNS , JJ NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , DT NN RBR .
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Year-earlier earnings reflected costs of $ 14.3 million related to the acquisition of IMS International . JJ NNS VBD NNS IN $ CD CD VBN TO DT NN IN NNP NNP .
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Revenue rose slightly to $ 3.16 billion from $ 3.13 billion . NN VBD RB TO $ CD CD IN $ CD CD .
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Control Data Corp. said it licensed its airline yield-management software to the International Air Transport Association . NNP NNP NNP VBD PRP VBD PRP$ NN NN NN TO DT NNP NNP NNP NNP .
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Terms include a royalty arrangement , but details were n't disclosed . NNS VBP DT NN NN , CC NNS VBD RB VBN .
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The computer equipment and financial services company said IATA , a trade group , will sell access to the package to its 180 airline members world-wide . DT NN NN CC JJ NNS NN VBD NNP , DT NN NN , MD VB NN TO DT NN TO PRP$ CD NN NNS JJ .
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Control Data will receive revenue linked to the number of passengers served by the software , IATA said . NNP NNP MD VB NN VBN TO DT NN IN NNS VBN IN DT NN , NNP VBD .
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The package helps carriers solve pricing problems , such as how to react to discounts offered by competitors or what would be the optimum number of seats to offer at a given price . DT NN VBZ NNS VBP VBG NNS , JJ IN WRB TO VB TO NNS VBN IN NNS CC WP MD VB DT JJ NN IN NNS TO VB IN DT VBN NN .
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Wheeling-Pittsburgh Steel Corp. said it decided to proceed with installation of automatic gauge and shape controls at its 60-inch tandem cold rolling mill in Allenport , Pa . NNP NNP NNP VBD PRP VBD TO VB IN NN IN JJ NN CC NN NNS IN PRP$ JJ NN JJ NN NN IN NNP , NNP .
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The new equipment , which will produce steel sheet with more uniform thickness and flatness , is likely to cost more than $ 20 million , the company said . DT JJ NN , WDT MD VB NN NN IN JJR NN NN CC NN , VBZ JJ TO VB JJR IN $ CD CD , DT NN VBD .
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When the company last considered adding the equipment two years ago , it estimated the cost at $ 21 million to $ 22 million , but a task force will have to prepare a detailed plan before the company can predict the current cost . WRB DT NN RB VBD VBG DT NN CD NNS RB , PRP VBD DT NN IN $ CD CD TO $ CD CD , CC DT NN NN MD VB TO VB DT VBN NN IN DT NN MD VB DT JJ NN .
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The time schedule for installing the equipment also will be developed by the task force , the company said . DT NN NN IN VBG DT NN RB MD VB VBN IN DT NN NN , DT NN VBD .
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Sir Richard Butler , 60-year-old chairman of Agricola -LRB- U.K . -RRB- Ltd. , was named chairman of County NatWest Investment Management Ltd. , the investment management subsidiary of County NatWest Ltd. , the investment banking arm of this British bank . NNP NNP NNP , JJ NN IN NNP ( NNP . ) NNP , VBD VBN NN IN NNP NNP NNP NNP NNP , DT NN NN NN IN NNP NNP NNP , DT NN NN NN IN DT JJ NN .
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Sir Richard succeeds John Plastow , who resigned in July . NNP NNP VBZ NNP NNP , WP VBD IN NNP .
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Sir Richard is also a non-executive director at National Westminister Bank and NatWest Investment Bank Ltd . NNP NNP VBZ RB DT JJ NN IN NNP NNP NNP CC NNP NNP NNP NNP .
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In the long , frightening night after Tuesday 's devastating earthquake , Bay Area residents searched for comfort and solace wherever they could . IN DT JJ , JJ NN IN NNP POS JJ NN , NNP NNP NNS VBD IN NN CC NN WRB PRP MD .
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Some found it on the screen of a personal computer . DT VBD PRP IN DT NN IN DT JJ NN .
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Hundreds of Californians made their way to their computers after the quake , and checked in with each other on electronic bulletin boards , which link computers CB-radio-style , via phone lines . NNS IN NNS VBD PRP$ NN TO PRP$ NNS IN DT NN , CC VBD IN IN DT NN IN JJ NN NNS , WDT VBP NNS JJ , IN NN NNS .
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Some of the most vivid bulletins came over The Well , a Sausalito , Calif. , board that is one of the liveliest outposts of the electronic underground . DT IN DT RBS JJ NNS VBD IN DT UH , DT NNP , NNP , NN WDT VBZ CD IN DT JJS NNS IN DT JJ NN .
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About two-thirds of the Well 's 3,000 subscribers live in the Bay Area . IN NNS IN DT UH POS CD NNS VBP IN DT NNP NNP .
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The quake knocked The Well out for six hours , but when it came back up , it teemed with emotional first-hand reports . DT NN VBD DT UH IN IN CD NNS , CC WRB PRP VBD RB IN , PRP VBD IN JJ JJ NNS .
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Following are excerpts from the electronic traffic that night . VBG VBP NNS IN DT JJ NN DT NN .
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The time is Pacific Daylight Time , and the initials or nicknames are those subscribers use to identify themselves . DT NN VBZ NNP NNP NNP , CC DT NNS CC NNS VBP DT NNS VBP TO VB PRP .
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11:54 p.m . CD RB .
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JCKC : NNP :
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Wow ! UH .
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I was in the avenues , on the third floor of an old building , and except for my heart -LRB- Beat , BEAT ! -RRB- I 'm OK . PRP VBD IN DT NNS , IN DT JJ NN IN DT JJ NN , CC IN IN PRP$ NN ( NNP , NN . ) PRP VBP JJ .
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Got back to Bolinas , and everything had fallen : broken poster frames with glass on the floor , file cabinets open or dumped onto the floor . VBD RB TO NNP , CC NN VBD VBN : VBN NN NNS IN NN IN DT NN , VB NNS JJ CC VBD IN DT NN .
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11:59 p.m . CD RB .
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JKD : NNP :
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I was in my favorite watering hole , waiting for the game to start . PRP VBD IN PRP$ JJ NN NN , VBG IN DT NN TO VB .
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I felt the temblor begin and glanced at the table next to mine , smiled that guilty smile and we both mouthed the words , `` Earth-quake ! '' together . PRP VBD DT NN VB CC VBD IN DT NN JJ TO VB , VBD IN JJ NN CC PRP DT VBD DT NNS , `` NN . '' RB .
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That 's usually how long it takes for the temblors to pass . DT VBZ RB WRB JJ PRP VBZ IN DT NNS TO VB .
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This time , it just got stronger and then the building started shaking violently up and down as though it were a child 's toy block that was being tossed . DT NN , PRP RB VBD JJR CC RB DT NN VBD VBG RB IN CC RB IN IN PRP VBD DT NN POS NN NN WDT VBD VBG VBN .
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12:06 a.m . CD RB .
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HRH : NNP :
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I was in the Berkeley Main library when it hit . PRP VBD IN DT NNP NNP NN WRB PRP VBD .
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Endless seconds wondering if those huge windows would buckle and shower us with glass . JJ NNS VBG IN DT JJ NNS MD VB CC NN PRP IN NN .
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Only a few books fell in the reading room . RB DT JJ NNS VBD IN DT NN NN .
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Then the auto paint shop fire sent an evil-looking cloud of black smoke into the air . RB DT NN NN NN NN VBD DT JJ NN IN JJ NN IN DT NN .
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12:07 a.m . CD RB .
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ONEZIE : NNP :
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My younger daughter and I are fine . PRP$ JJR NN CC PRP VBP JJ .
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This building shook like hell and it kept getting stronger . DT NN VBD IN NN CC PRP VBD VBG JJR .
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Except for the gas tank at Hustead 's Towing Service exploding and burning in downtown Berkeley , things here are quite peaceful . IN IN DT NN NN IN NNP POS NNP NNP VBG CC VBG IN NN NNP , NNS RB VBP RB JJ .
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A lot of car alarms went off . DT NN IN NN NNS VBD RB .
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The cats are fine , although nervous . DT NNS VBP JJ , IN JJ .
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12:15 a.m . CD RB .
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DHAWK : NNP :
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Huge fire from broken gas main in the Marina in SF . JJ NN IN VBN NN JJ IN DT NNP IN NNP .
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Areas that are made of ` fill ' liquefy . NNS WDT VBP VBN IN `` NN '' VB .
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A woman in a three-story apartment was able to walk out the window of the third floor onto street level after the quake . DT NN IN DT JJ NN VBD JJ TO VB RP IN NN IN DT JJ NN IN NN NN IN DT NN .
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The house just settled right down into the ground . DT NN RB VBD RB RB IN DT NN .
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12:38 a.m . CD RB .
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DAYAC : NNP :
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I was driving my truck , stopped at a red light at the corner of Shattuck and Alcatraz at the Oakland-Berkeley border when it hit . PRP VBD VBG PRP$ NN , VBD IN DT JJ NN IN DT NN IN NNP CC NNP IN DT NNP NN WRB PRP VBD .
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Worst part was watching power lines waving above my head and no way to drive away . JJS NN VBD VBG NN NNS VBG IN PRP$ NN CC DT NN TO VB RB .
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12:48 a.m . CD RB .
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LMEYER : NNP :
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Was 300 ft. out on a pier in San Rafael . VBD CD NN IN IN DT NN IN NNP NNP .
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It flopped all around , real dramatic ! PRP VBD DT IN , JJ JJ .
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Many hairline cracks in the concrete slabs afterwards . JJ NN NNS IN DT JJ NNS RB .
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Ruined the damn fishing ! VBN DT JJ NN .
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1:00 a.m . CD RB .
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HEYNOW : NNP :
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I rode it out on the second floor of Leo 's at 55th and Telegraph in Oakland . PRP VBD PRP IN IN DT JJ NN IN NNP POS IN NN CC NNP IN NNP .
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I heard parts of the building above my head cracking . PRP VBD NNS IN DT NN IN PRP$ NN VBG .
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I actually thought that I might die . PRP RB VBD IN PRP MD VB .
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I could n't decide if I should come home to Marin , because my house is on stilts . PRP MD RB VB IN PRP MD VB NN TO NNP , IN PRP$ NN VBZ IN NNS .
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I decided to brave the storm . PRP VBD TO VB DT NN .
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There was a horrible smell of gas as I passed the Chevron refinery before crossing the Richmond-San Rafael Bridge . EX VBD DT JJ NN IN NN IN PRP VBD DT NNP NN IN VBG DT NNP NNP NNP .
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I could also see the clouds across the bay from the horrible fire in the Marina District of San Francisco . PRP MD RB VB DT NNS IN DT NN IN DT JJ NN IN DT NNP NNP IN NNP NNP .
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I have felt many aftershocks . PRP VBP VBN JJ NNS .
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My back is still in knots and my hands are still shaking . PRP$ RB VBZ RB IN NNS CC PRP$ NNS VBP RB VBG .
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I think a few of the aftershocks might just be my body shaking . PRP VBP DT NN IN DT NNS MD RB VB PRP$ NN VBG .
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1:11 a.m. CD NN
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GR8FLRED : CD :
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I could see the flames from San Francisco from my house across the bay . PRP MD VB DT NNS IN NNP NNP IN PRP$ NN IN DT NN .
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It 's hard to believe this really is happening . PRP VBZ JJ TO VB DT RB VBZ VBG .
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1:11 a.m . CD RB .
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RD : NNP :
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Building on the corner severely damaged , so an old lady and her very old mother are in the guest room . NNP IN DT NN RB VBD , RB DT JJ NN CC PRP$ RB JJ NN VBP IN DT NN NN .
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Books and software everywhere . NNS CC NN RB .
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This being typed in a standing position . DT VBG VBN IN DT VBG NN .
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1:20 a.m . CD RB .
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DGAULT : NNP :
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Bolinas -- astride the San Andreas Fault . NNP : IN DT NNP NNP NNP .
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Did n't feel a thing , but noticed some strange bird behavior . VBD RB VB DT NN , CC VBD DT JJ NN NN .
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Duck swarms . NN NNS .
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3:25 a.m . CD RB .
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SAMURAI : NNP :
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I just felt another aftershock a few seconds ago . PRP RB VBD DT NN DT JJ NNS RB .
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I 'm just numb . PRP VBP RB JJ .
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3:25 a.m . CD RB .
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MACPOST : NNP :
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Downtown Bolinas seems to be the part of town that 's worst off . NNP NNP VBZ TO VB DT NN IN NN WDT VBZ JJS RB .
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No power , minimal phones , and a mess of mayonnaise , wine , and everything else all over the floors of the big old general store and the People 's Co-op . DT NN , JJ NNS , CC DT NN IN NN , NN , CC NN RB DT IN DT NNS IN DT JJ JJ JJ NN CC DT NNS POS NN .
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The quivers move through my house every few minutes at unpredictable intervals , and the mouse that 's been living in my kitchen has taken refuge under my desk . DT NNS VBP IN PRP$ NN DT JJ NNS IN JJ NNS , CC DT NN WDT VBZ VBN VBG IN PRP$ NN VBZ VBN NN IN PRP$ NN .
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It runs out frantically now and then , and is clearly pretty distressed . PRP VBZ IN RB RB CC RB , CC VBZ RB RB JJ .
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I was in Stinson Beach when the quake rolled through town . PRP VBD IN NNP NNP WRB DT NN VBD IN NN .
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At first , we were unfazed . IN JJ , PRP VBD VBN .
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Then as things got rougher , we ran for the door and spent the next few minutes outside watching the brick sidewalk under our feet oozing up and down , and the flowers waving in an eerie rhythm . RB IN NNS VBD JJR , PRP VBD IN DT NN CC VBD DT JJ JJ NNS IN VBG DT NN NN IN PRP$ NNS VBG IN CC RB , CC DT NNS VBG IN DT JJ NN .
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Amazing what it does to one 's heart rate and one 's short-term memory . JJ WP PRP VBZ TO CD POS NN NN CC CD POS JJ NN .
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Everyone looked calm , but there was this surreal low level of confusion as the aftershocks continued . NN VBD JJ , CC EX VBD DT JJ JJ NN IN NN IN DT NNS VBD .
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4:02 a.m . CD RB .
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SHIBUMI : NNP :
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Power is back on , and UCSF -LCB- medical center -RCB- seems to have quieted down for the night -LRB- they were doing triage out in the parking lot from the sound and lights of it -RRB- . NNP VBZ RB IN , CC NNP ( JJ NN ) VBZ TO VB VBN RB IN DT NN ( PRP VBD VBG NN IN IN DT NN NN IN DT NN CC NNS IN PRP ) .
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A friend of mine was in an underground computer center in downtown SF when the quake hit . DT NN IN NN VBD IN DT JJ NN NN IN NN NNP WRB DT NN VBD .
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He said that one of the computers took a three-foot trip sliding across the floor . PRP VBD IN CD IN DT NNS VBD DT JJ NN VBG IN DT NN .
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Today should be interesting as people realize how hard life is going to be here for a while . NN MD VB JJ IN NNS VBP WRB JJ NN VBZ VBG TO VB RB IN DT NN .
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4:30 a.m . CD RB .
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KIM : NNP :
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I got home , let the dogs into the house and noticed some sounds above my head , as if someone were walking on the roof , or upstairs . PRP VBD NN , VB DT NNS IN DT NN CC VBD DT VBZ IN PRP$ NN , IN IN NN VBD VBG IN DT NN , CC NN .
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Then I noticed the car was bouncing up and down as if someone were jumping on it . RB PRP VBD DT NN VBD VBG IN CC RB IN IN NN VBD VBG IN PRP .
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I realized what was happening and screamed into the house for the dogs . PRP VBD WP VBD VBG CC VBD IN DT NN IN DT NNS .
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Cupboard doors were flying , the trash can in the kitchen walked a few feet , the dogs came running , and I scooted them into the dog run and stood in the doorway myself , watching the outside trash cans dance across the concrete . NN NNS VBD VBG , DT NN MD IN DT NN VBD DT JJ NNS , DT NNS VBD VBG , CC PRP VBD PRP IN DT NN NN CC VBD IN DT NN PRP , VBG DT JJ NN NNS VBP IN DT NN .
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When I realized it was over , I went and stood out in front of the house , waiting and praying for Merrill to come home , shivering as if it were 20 below zero until he got there . WRB PRP VBD PRP VBD IN , PRP VBD CC VBD IN IN NN IN DT NN , VBG CC VBG IN NNP TO VB NN , VBG IN IN PRP VBD CD IN CD IN PRP VBD RB .
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Never in my life have I been so frightened . RB IN PRP$ NN VBP PRP VBN RB VBN .
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When I saw the pictures of 880 and the Bay Bridge , I began to cry . WRB PRP VBD DT NNS IN CD CC DT NNP NNP , PRP VBD TO VB .
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5:09 a.m . CD RB .
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JROE : NNP :
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The Sunset -LCB- District -RCB- was more or less like a pajama party all evening , lots of people & dogs walking around , drinking beer . DT NNP ( NNP ) VBD JJR CC JJR IN DT NN NN DT NN , NNS IN NNS CC NNS VBG IN , NN NN .
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6:50 a.m . CD RB .
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CAROLG : NNP :
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I was just sitting down to meet with some new therapy clients , a couple , and the building started shaking like crazy . PRP VBD RB VBG RB TO VB IN DT JJ NN NNS , DT NN , CC DT NN VBD VBG IN JJ .
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It 's a flimsy structure , built up on supports , and it was really rocking around . PRP VBZ DT JJ NN , VBN IN IN VBZ , CC PRP VBD RB VBG RB .
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The three of us stopped breathing for a moment , and then when it kept on coming we lunged for the doorway . DT CD IN PRP VBD NN IN DT NN , CC RB WRB PRP VBD IN VBG PRP VBD IN DT NN .
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Needless to say , it was an interesting first session ! JJ TO VB , PRP VBD DT JJ JJ NN .
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7:13 a.m . CD RB .
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CALLIOPE : NNP :
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Albany escaped embarrassingly unscathed . NNP VBD RB JJ .
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Biggest trouble was scared family who could n't get a phone line through , and spent a really horrible hour not knowing . JJS NN VBD VBN NN WP MD RB VB DT NN NN IN , CC VBD DT RB JJ NN RB VBG .
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8:01 a.m . CD RB .
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HLR : NNP :
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Judy and I were in our back yard when the lawn started rolling like ocean waves . NNP CC PRP VBD IN PRP$ JJ NN WRB DT NN VBD VBG IN NN NNS .
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We ran into the house to get Mame , but the next tremor threw me in the air and bounced me as I tried to get to my feet . PRP VBD IN DT NN TO VB NNP , CC DT JJ NN VBD PRP IN DT NN CC VBD PRP IN PRP VBD TO VB TO PRP$ NNS .
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We are all fine here , although Mame was extremely freaked . PRP VBP DT JJ RB , IN NNP VBD RB VBN .
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Kitchen full of broken crystal . NNP JJ IN VBN NN .
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Books and tapes all over my room . NNS CC NNS DT IN PRP$ NN .
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Not one thing in the house is where it is supposed to be , but the structure is fine . RB CD NN IN DT NN VBZ WRB PRP VBZ VBN TO VB , CC DT NN VBZ JJ .
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While I was standing on the lawn with Mame , waiting for another tremor , I noticed that all the earthworms were emerging from the ground and slithering across the lawn ! IN PRP VBD VBG IN DT NN IN NNP , VBG IN DT NN , PRP VBD IN PDT DT NNS VBD VBG IN DT NN CC VBG IN DT NN .
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9:31 a.m. CD NN
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GR8FLRED : CD :
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It 's amazing how one second can so completely change your life . PRP VBZ JJ WRB CD JJ MD RB RB VB PRP$ NN .
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9:38 a.m . CD RB .
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FIG : NNP :
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I guess we 're all living very tentatively here , waiting for the expected but dreaded aftershock . PRP VBP PRP VBP DT VBG RB RB RB , VBG IN DT VBN CC VBN NN .
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It 's hard to accept that it 's over and only took 15 seconds . PRP VBZ JJ TO VB IN PRP VBZ IN CC RB VBD CD NNS .
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I wonder when we 'll be able to relax . PRP VBP WRB PRP MD VB JJ TO VB .
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9:53 a.m . CD RB .
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PANDA : NNP :
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Flesh goes to total alert for flight or fight . NN VBZ TO VB JJ IN NN CC NN .
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Nausea seems a commonplace symptom . NN VBZ DT JJ NN .
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Berkeley very quiet right now . NNP RB JJ RB RB .
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I walked along Shattuck between Delaware and Cedar at a few minutes before eight this morning . PRP VBD IN NNP IN NNP CC NNP IN DT JJ NNS IN CD DT NN .
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Next to Chez Panisse a homeless couple , bundled into a blue sleeping bag , sat up , said , `` Good morning '' and then the woman smiled , said , `` Is n't it great just to be alive ? '' JJ TO NNP NNP DT JJ NN , VBN IN DT JJ NN NN , VBD IN , VBD , `` JJ NN '' CC RB DT NN VBD , VBD , `` VBZ RB PRP JJ RB TO VB JJ . ''
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I agreed . PRP VBD .
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It is . PRP VBZ .
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Great . NNP .
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Georgia-Pacific Corp. , exceeding some analysts ' expectations , said third-quarter earnings rose 56 % to $ 178 million , or $ 2.03 a share , from $ 114 million , or $ 1.19 a share , in the year-earlier period . NNP NNP , VBG DT NNS POS NNS , VBD JJ NNS VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , IN DT JJ NN .
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Sales increased 10 % to $ 2.65 billion from $ 2.41 billion . NNS VBN CD NN TO $ CD CD IN $ CD CD .
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Per-share earnings were enhanced by the company 's share buy-back program , which reduced the average shares outstanding to 87.5 million in the quarter from 95.8 million in the same quarter of 1988 . JJ NNS VBD VBN IN DT NN POS NN NN NN , WDT VBD DT JJ NNS JJ TO CD CD IN DT NN IN CD CD IN DT JJ NN IN CD .
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With strong prices in the company 's two major areas -- building products as well as pulp and paper -- analysts had expected a roaring quarter . IN JJ NNS IN DT NN POS CD JJ NNS : NN NNS RB RB IN NN CC NN : NNS VBD VBN DT VBG NN .
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But the performance exceeded some estimates of around $ 1.90 a share . CC DT NN VBD DT NNS IN IN $ CD DT NN .
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Fueling the growth , among other things , were higher-than-expected prices for certain building products . VBG DT NN , IN JJ NNS , VBD JJ NNS IN JJ NN NNS .
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One reason : efforts to protect the spotted owl led to restrictions on logging in the Pacific Northwest , constricting supply and forcing prices up . CD NN : NNS TO VB DT VBN NN VBN TO NNS IN NN IN DT NNP NNP , VBG NN CC VBG NNS RB .
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Another reason : strikes , both at Georgia-Pacific and other lumber companies also cut supplies and raised prices , analysts said . DT NN : NNS , DT IN NNP CC JJ NN NNS RB VBP NNS CC VBN NNS , NNS VBD .
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For the nine months , Georgia-Pacific 's earnings increased 49 % to $ 504 million , or $ 5.58 a share , from $ 338 million , or $ 3.41 a share . IN DT CD NNS , NNP POS NNS VBN CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN .
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Sales rose 11 % to $ 7.73 billion from $ 6.94 billion . NNS VBD CD NN TO $ CD CD IN $ CD CD .
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In composite New York Stock Exchange Trading , Georgia-Pacific stock rose $ 1.25 a share yesterday to close at $ 58 . IN JJ NNP NNP NNP NNP NN , NNP NN VBD $ CD DT NN NN TO VB IN $ CD .
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The House Public Works and Transportation Committee approved a bill that would give the Transportation Department power to block airline leveraged buy-outs , despite a clear veto threat from the Bush administration . DT NNP NNP NNP CC NNP NNP VBD DT NN WDT MD VB DT NNP NNP NN TO VB NN JJ NNS , IN DT JJ NN NN IN DT NNP NN .
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The 23-5 vote clears the way for consideration on the House floor next week or the week after . DT JJ NN VBZ DT NN IN NN IN DT NNP NN JJ NN CC DT NN RB .
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Transportation Secretary Samuel Skinner , in a letter to the committee , warned that he would urge President Bush to veto the legislation if it passed Congress . NNP NNP NNP NNP , IN DT NN TO DT NN , VBD IN PRP MD VB NNP NNP TO VB DT NN IN PRP VBD NNP .
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The Senate Commerce Committee already has approved similar legislation . DT NNP NNP NNP RB VBZ VBN JJ NN .
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On Monday , a letter from Mr. Skinner 's deputy , Elaine Chao , said the administration opposed the legislation `` in its present form . '' IN NNP , DT NN IN NNP NNP POS NN , NNP NNP , VBD DT NN VBD DT NN `` IN PRP$ JJ NN . ''
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Some of the bill 's supporters had taken heart from the fact that the letter was n't signed by Mr. Skinner and that it did n't contain a veto threat . DT IN DT NN POS NNS VBD VBN NN IN DT NN IN DT NN VBD RB VBN IN NNP NNP CC IN PRP VBD RB VB DT NN NN .
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The stepped-up administration warnings annoyed some lawmakers , especially senior Republicans who supported the bill because they thought the Transportation Department favored it . DT JJ NN NNS VBD DT NNS , RB JJ NNPS WP VBD DT NN IN PRP VBD DT NNP NNP VBD PRP .
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`` We backed this bill because we thought it would help Skinner , '' one Republican said , `` and now we 're out there dangling in the wind . '' `` PRP VBD DT NN IN PRP VBD PRP MD VB NNP , '' CD NNP VBD , `` CC RB PRP VBP IN RB VBG IN DT NN . ''
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A few weeks ago , Mr. Skinner testified before Congress that it would be `` cleaner , more efficient '' if he had authority to block buy-outs in advance . DT JJ NNS RB , NNP NNP VBD IN NNP IN PRP MD VB `` JJR , RBR JJ '' IN PRP VBD NN TO VB NNS IN NN .
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But he never took an official position on the bill and has steadfastly maintained that he already has enough authority to deal with buy-outs . CC PRP RB VBD DT JJ NN IN DT NN CC VBZ RB VBN IN PRP RB VBZ JJ NN TO VB IN NNS .
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Under the committee bill , the Transportation secretary would have 30 days , and an additional 20 days if needed , to review any proposed purchase of 15 % or more of a major U.S. airline 's voting stock . IN DT NN NN , DT NNP NN MD VB CD NNS , CC DT JJ CD NNS IN VBN , TO VB DT VBN NN IN CD NN CC JJR IN DT JJ NNP NN POS NN NN .
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The secretary would be required to block an acquisition if he concluded that it would so weaken an airline financially that it would hurt safety or reduce the carrier 's ability to compete , or if it gave control to a foreign interest . DT NN MD VB VBN TO VB DT NN IN PRP VBD IN PRP MD RB VB DT NN RB IN PRP MD VB VB CC VB DT NN POS NN TO VB , CC IN PRP VBD NN TO DT JJ NN .
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Although the legislation would apply to any acquisition of a major airline , it is aimed at transactions financed by large amounts of debt . IN DT NN MD VB TO DT NN IN DT JJ NN , PRP VBZ VBN IN NNS VBN IN JJ NNS IN NN .
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Supporters of the bill are concerned an airline might sacrifice costly safety measures in order to repay debt . NNS IN DT NN VBP VBN DT NN MD VB JJ NN NNS IN NN TO VB NN .
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The panel 's action occurs in a politically charged atmosphere surrounding recent buy-out proposals , their apparent collapse and the volatile conditions in the stock market . DT NN POS NN VBZ IN DT RB VBN NN VBG JJ NN NNS , PRP$ JJ NN CC DT JJ NNS IN DT NN NN .
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`` It became apparent in hearings that there ought to be regulation of leveraged buy-outs of some sort , '' Rep. James Oberstar -LRB- D. , Minn. -RRB- , chairman of the House Aviation Subcommittee , said during the panel 's deliberations . `` PRP VBD JJ IN NNS IN EX MD TO VB NN IN JJ NNS IN DT NN , '' NNP NNP NNP ( NNP , NNP ) , NN IN DT NNP NNP NNP , VBD IN DT NN POS NNS .
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`` I do n't believe in the airline business you can be totally laissez-faire because of the high degree of public interest '' at stake . `` PRP VBP RB VB IN DT NN NN PRP MD VB RB FW IN IN DT JJ NN IN JJ NN '' IN NN .
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But Mr. Skinner disagreed , calling the legislation `` a retreat from the policy of deregulaton of the airline industry . '' CC NNP NNP VBD , VBG DT NN `` DT NN IN DT NN IN NN IN DT NN NN . ''
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In his letter to Committee Chairman Glenn Anderson -LRB- D. , Calif. -RRB- , the secretary also said the bill `` would be at odds with the administration 's policies welcoming open foreign investment and market allocation of resources . '' IN PRP$ NN TO NNP NNP NNP NNP ( NNP , NNP ) , DT NN RB VBD DT NN `` MD VB IN NNS IN DT NN POS NNS VBG JJ JJ NN CC NN NN IN NNS . ''
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Currently , the Transportation Department does n't have the authority to block a takeover in advance . RB , DT NNP NNP VBZ RB VB DT NN TO VB DT NN IN NN .
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However , if the secretary concludes that a transaction has made a carrier unfit to operate , the department may revoke its certificate , grounding the airline . RB , IN DT NN VBZ IN DT NN VBZ VBN DT NN JJ TO VB , DT NN MD VB PRP$ NN , VBG DT NN .
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Such authority is more than adequate , say opponents of the legislation . JJ NN VBZ JJR IN JJ , VBP NNS IN DT NN .
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But supporters argue that grounding an airline is so drastic that the department would hesitate doing it . CC NNS VBP IN VBG DT NN VBZ RB JJ IN DT NN MD VB VBG PRP .
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The panel rejected a proposal pushed by AMR Corp. , the parent of American Airlines , to allow the Transportation secretary to block corporate raiders from waging proxy fights to oust boards that oppose a leveraged buy-out . DT NN VBD DT NN VBN IN NNP NNP , DT NN IN NNP NNPS , TO VB DT NNP NN TO VB JJ NNS IN VBG NN NNS TO VB NNS WDT VBP DT JJ NN .
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It also voted down proposals to give the secretary much more discretion on whether to block a buy-out and to require the department to consider the impact of a buy-out on workers . PRP RB VBD JJ NNS TO VB DT NN RB JJR NN IN IN TO VB DT NN CC TO VB DT NN TO VB DT NN IN DT NN IN NNS .
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London shares rallied to post strong gains after initial fears evaporated that the California earthquake would depress Wall Street prices . JJ NNS VBD TO VB JJ NNS IN JJ NNS VBD IN DT NNP NN MD VB NNP NNP NNS .
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Tokyo stocks , which rebounded strongly Tuesday , extended their gains yesterday , but most other Asian and Pacific markets closed sharply lower . NNP NNS , WDT VBD RB NNP , VBD PRP$ NNS NN , CC RBS JJ JJ CC NNP NNS VBD RB JJR .
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In London , the Financial Times-Stock Exchange 100-share index jumped 34.6 points to close at its intraday high of 2170.1 . IN NNP , DT NNP NNP NNP JJ NN VBD CD NNS TO VB IN PRP$ JJ NN IN CD .
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The index was under pressure for most of the morning over concerns that the effects of Tuesday night 's major earthquake in the San Francisco area would undermine the U.S. market . DT NN VBD IN NN IN RBS IN DT NN IN NNS IN DT NNS IN NNP NN POS JJ NN IN DT NNP NNP NN MD VB DT NNP NN .
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The mood changed after dealers reappraised the direct impact of the disaster on shares and Wall Street rebounded from early losses . DT NN VBN IN NNS VBD DT JJ NN IN DT NN IN NNS CC NNP NNP VBD IN JJ NNS .
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The Financial Times 30-share index settled 27.8 points higher at 1758.5 . DT NNP NNP JJ NN VBD CD NNS JJR IN CD .
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Volume was 449.3 million shares , the slowest of a hectic week , compared with 643.4 million Tuesday . NN VBD CD CD NNS , DT JJS IN DT JJ NN , VBN IN CD CD NNP .
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U.K. composite , or non-life , insurers , which some equity analysts said might be heavily hit by the earthquake disaster , helped support the London market by showing only narrow losses in early trading . NNP JJ , CC JJ , NNS , WDT DT NN NNS VBD MD VB RB VBN IN DT NN NN , VBD NN DT NNP NN IN VBG RB JJ NNS IN JJ NN .
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The insurers ' relative resilience gave the market time to reappraise the impact of the California disaster on U.K. equities , dealers said . DT NNS POS JJ NN VBD DT NN NN TO VB DT NN IN DT NNP NN IN NNP NNS , NNS VBD .
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Dealers said the market still has n't shaken off its nervousness after its bumpy ride of the past several sessions , caused by interest-rate increases last week and Wall Street 's 6.9 % plunge Friday . NNS VBD DT NN RB VBZ RB VBN IN PRP$ NN IN PRP$ JJ NN IN DT JJ JJ NNS , VBN IN NN NNS JJ NN CC NNP NNP POS CD NN NN NNP .
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But technical factors , including modest gains in the value of the pound , helped draw buying back into the market and reverse losses posted a day earlier . CC JJ NNS , VBG JJ NNS IN DT NN IN DT NN , VBD VB VBG RB IN DT NN CC VB NNS VBD DT NN RBR .
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Among composite insurers , General Accident rose 10 pence to # 10.03 -LRB- $ 15.80 -RRB- a share , Guardian Royal climbed 5 to 217 pence , Sun Alliance rose 3 to 290 , and Royal Insurance jumped 12 to 450 . IN JJ NNS , NNP NNP VBD CD NN TO # CD ( $ CD ) DT NN , NNP NNP VBD NN TO CD NN , NNP NNP VBD CD TO CD , CC NNP NNP VBD CD TO CD .
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Life insurers fared similarly , with Legal & General advancing 3 to 344 , although Prudential fell 2 to 184 1\/2 . NN NNS VBD RB , IN NNP CC NNP VBG CD TO CD , IN NNP VBD CD TO CD CD .
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Pearl Group rose 5 to 628 , and Sun Life finished unchanged at # 10.98 . NNP NNP VBD NN TO CD , CC NNP NNP VBD JJ IN # CD .
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Most banking issues retreated after a sector downgrade by Warburg Securities , although National Westminister showed strength on positive comments from brokerage firms about its long-term prospects . JJS NN NNS VBD IN DT NN NN IN NNP NNP , IN NNP NNP VBD NN IN JJ NNS IN NN NNS IN PRP$ JJ NNS .
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NatWest , the most actively traded of the banks , finished at 300 , up 1 . NNP , DT RBS RB VBN IN DT NNS , VBD IN CD , IN CD .
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B.A.T Industries fell in early dealings but recovered to finish at 754 , up 5 . NNP NNPS VBD IN JJ NNS CC VBD TO VB IN CD , IN NN .
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Dealers said the market was nervous ahead of a special B.A.T holders ' meeting today . NNS VBD DT NN VBD JJ RB IN DT JJ NNP NNS POS NN NN .
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The session is to consider a defensive plan to spin off assets to fend off Sir James Goldsmith 's # 13.4 billion bid for B.A.T . DT NN VBZ TO VB DT JJ NN TO VB IN NNS TO VB IN NNP NNP NNP POS # CD CD NN IN NNP .
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The recent stock market drop has shaken confidence in the plan , but dealers said the shares fell initially on questions about whether Mr. Goldsmith 's highly leveraged bid will come to fruition . DT JJ NN NN NN VBZ VBN NN IN DT NN , CC NNS VBD DT NNS VBD RB IN NNS IN IN NNP NNP POS RB JJ NN MD VB TO NN .
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Trading was suspended in WCRS Group , a U.K. advertising concern , pending an announcement that it is buying the remaining 50 % of France 's Carat Holding for 2.02 billion French francs -LRB- $ 318.7 million -RRB- and expanding commercial and equity ties with advertising group Eurocom . NN VBD VBN IN NNP NNP , DT NNP NN NN , VBG DT NN IN PRP VBZ VBG DT VBG CD NN IN NNP POS NNP NNP IN CD CD JJ NNS ( $ CD CD ) CC VBG NN CC NN NNS IN NN NN NNP .
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Merchant banker Morgan Grenfell climbed 14 to 406 on renewed takeover speculation . NN NN NNP NNP VBD CD TO CD IN VBN NN NN .
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S.G. Warburg , also mentioned in the rumor mill , jumped 14 at to 414 . NNP NNP , RB VBN IN DT NN NN , VBD CD IN TO CD .
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Jaguar advanced 19 to 673 as traders contemplated a potential battle between General Motors and Ford Motor for control of the U.K. luxury auto maker . NNP VBD CD TO CD IN NNS VBD DT JJ NN IN NNP NNPS CC NNP NNP IN NN IN DT NNP NN NN NN .
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Tokyo 's Nikkei index of 225 issues rose 111.48 points , or 0.32 % , to 35107.56 . NNP POS NNP NN IN CD NNS VBD CD NNS , CC CD NN , TO CD .
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The index gained 527.39 Tuesday . DT NN VBD CD NNP .
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Volume was estimated at 800 million shares , compared with 678 million Tuesday . NN VBD VBN IN CD CD NNS , VBN IN CD CD NNP .
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Declining issues outnumbered advancers 505-455 , with 172 unchanged . VBG NNS VBD NNS JJ , IN CD JJ .
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The Tokyo Stock Price Index of all issues listed in the first section , which gained 41.76 Tuesday , was up 0.24 points , or 0.01 % , at 2642.88 . DT NNP NNP NNP NNP IN DT NNS VBN IN DT JJ NN , WDT VBD CD NNP , VBD IN CD NNS , CC CD NN , IN CD .
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In early trading in Tokyo Thursday , the Nikkei index rose 135.09 points to 35242.65 . IN JJ NN IN NNP NNP , DT NNP NN VBD CD NNS TO CD .
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On Wednesday , shares were pushed up by index-related buying on the part of investment trusts as well as small orders from individuals and corporations , traders said . IN NNP , NNS VBD VBN IN IN JJ NN IN DT NN IN NN NNS RB RB IN JJ NNS IN NNS CC NNS , NNS VBD .
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Institutions , meanwhile , stepped back to the sidelines as the direction of U.S. interest rates remained unclear . NNS , RB , VBD RB TO DT NNS IN DT NN IN NNP NN NNS VBD JJ .
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The uncertainty was multiplied by the persistent strength of the dollar , traders said , and by the U.S. trade deficit , which widened by 31 % in August from the previous month . DT NN VBD VBN IN DT JJ NN IN DT NN , NNS VBD , CC IN DT NNP NN NN , WDT VBD IN CD NN IN NNP IN DT JJ NN .
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Traders and analysts said they did n't see any effect on Tokyo stocks from the California earthquake . NNS CC NNS VBD PRP VBD RB VB DT NN IN NNP NNS IN DT NNP NN .
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The impact on Japanese insurers and property owners with interests in the San Francisco area is still being assessed , they said . DT NN IN JJ NNS CC NN NNS IN NNS IN DT NNP NNP NN VBZ RB VBG VBN , PRP VBD .
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Buying was scattered across a wide range of issues , making the session fairly characterless , traders said . VBG VBD VBN IN DT JJ NN IN NNS , VBG DT NN RB JJ , NNS VBD .
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With uncertainty still hanging over interest rates and the dollar , the market failed to find a focus that might lead to further investor commitments , they said . IN NN RB VBG IN NN NNS CC DT NN , DT NN VBD TO VB DT NN WDT MD VB TO VB NN NNS , PRP VBD .
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Some traders said the popularity of issues that gained yesterday wo n't last long , as investors will rotate their buying choices over the short term . DT NNS VBD DT NN IN NNS WDT VBD NN MD RB JJ JJ , IN NNS MD VB PRP$ NN NNS IN DT JJ NN .
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Interest rate-sensitive shares such as steel , construction and electric utility companies , which rose early in the week , saw their advance weaken yesterday . NN JJ NNS JJ IN NN , NN CC JJ NN NNS , WDT VBD RB IN DT NN , VBD PRP$ NN VB NN .
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Traders said these issues need large-volume buying to push up their prices , so substantial gains are n't likely unless institutional investors participate . NNS VBD DT NNS VBP JJ NN TO VB IN PRP$ NNS , RB JJ NNS VBP RB JJ IN JJ NNS VBP .
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An outstanding issue in yesterday 's session was Mitsubishi Rayon , which surged 95 to 905 yen -LRB- $ 6.34 -RRB- a share . DT JJ NN IN NN POS NN VBD NNP NNP , WDT VBD CD TO CD NN ( $ CD ) DT NN .
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Its popularity was due to speculation about the strong earnings potential of a new type of plastic wrap for household use , a trader at County Natwest Securities Japan said . PRP$ NN VBD JJ TO NN IN DT JJ NNS NN IN DT JJ NN IN NN NN IN NN NN , DT NN IN NNP NNP NNP NNP VBD .
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Some laggard food issues attracted bargain-hunters , traders said . DT JJ NN NNS VBD NNS , NNS VBD .
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Kirin Brewery was up 100 at 2,000 , and Ajinomoto gained 70 to 2,840 . NNP NNP VBD IN CD IN CD , CC NNP VBD CD TO CD .
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Pharmaceuticals were mostly higher , with SS Pharmaceutical gaining 140 to 1,980 . NNP VBD RB JJR , IN NNP NNP VBG CD TO CD .
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Shares closed lower in other major Asian and Pacific markets , including Sydney , Hong Kong , Singapore , Taipei , Wellington , Seoul and Manila . NNS VBD JJR IN JJ JJ JJ CC NNP NNS , VBG NNP , NNP NNP , NNP , NNP , NNP , NNP CC NNP .
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Most of those markets had rebounded the day before from Monday 's slide . JJS IN DT NNS VBD VBN DT NN IN IN NNP POS NN .
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But unlike the Tokyo exchange , they failed to extend the rise to a second session . CC IN DT NNP NN , PRP VBD TO VB DT NN TO DT JJ NN .
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Elsewhere , prices surged for a second day in Frankfurt , closed higher in Zurich , Stockholm and Amsterdam and were broadly lower in Milan , Paris and Brussels . RB , NNS VBD IN DT JJ NN IN NNP , VBD JJR IN NNP , NNP CC NNP CC VBD RB JJR IN NNP , NNP CC NNP .
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South African gold stocks ended marginally firmer . JJ JJ NN NNS VBD RB JJR .
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In Brussels , it was the first trading day for most major shares since stocks tumbled on Wall Street Friday . IN NNP , PRP VBD DT JJ NN NN IN RBS JJ NNS IN NNS VBD IN NNP NNP NNP .
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Trading had been impeded by a major computer failure that took place before the start of Monday 's session . NN VBD VBN VBN IN DT JJ NN NN WDT VBD NN IN DT NN IN NNP POS NN .
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Here are price trends on the world 's major stock markets , as calculated by Morgan Stanley Capital International Perspective , Geneva . RB VBP NN NNS IN DT NN POS JJ NN NNS , IN VBN IN NNP NNP NNP NNP NNP , NNP .
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To make them directly comparable , each index is based on the close of 1969 equaling 100 . TO VB PRP RB JJ , DT NN VBZ VBN IN DT NN IN CD VBG CD .
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The percentage change is since year-end . DT NN NN VBZ IN NN .
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Housing construction sank in September to its lowest level since the last recession , the Commerce Department reported . NN NN VBD IN NNP TO PRP$ JJS NN IN DT JJ NN , DT NNP NNP VBD .
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Work began on homes and apartments at an annual rate of 1,263,000 units last month , down 5.2 % from August , the department said . NN VBD IN NNS CC NNS IN DT JJ NN IN CD NNS JJ NN , RB CD NN IN NNP , DT NN VBD .
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The September decline followed an even steeper drop of 6.2 % in August and left housing starts at their weakest since October 1982 , when the country was nearing the end of a recession . DT NNP NN VBD DT RB JJR NN IN CD NN IN NNP CC VBN NN VBZ IN PRP$ JJS IN NNP CD , WRB DT NN VBD VBG DT NN IN DT NN .
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Originally the department had reported the August decline as 5 % . RB DT NN VBD VBN DT NNP NN IN NN NN .
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The numbers suggest that the housing industry is still suffering the effects of the Federal Reserve 's battle against inflation . DT NNS VBP IN DT NN NN VBZ RB VBG DT NNS IN DT NNP NNP POS NN IN NN .
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The industry had shown signs of recovery this summer , after the central bank began to relax its clamp on credit , allowing interest rates to drop a bit after pushing them up for a year . DT NN VBD VBN NNS IN NN DT NN , IN DT JJ NN VBD TO VB PRP$ NN IN NN , VBG NN NNS TO VB DT NN IN VBG PRP IN IN DT NN .
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Sales of new homes rose and inventories of houses , which had been climbing , dropped . NNS IN JJ NNS VBD CC NNS IN NNS , WDT VBD VBN VBG , VBD .
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But last month new construction in all types of homes waned , from single-family houses to large apartment complexes . CC JJ NN JJ NN IN DT NNS IN NNS VBD , IN JJ NNS TO JJ NN NNS .
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`` It 's pretty much weak across the board , '' said Martin Regalia , chief economist of the National Council of Savings Institutions . `` PRP VBZ RB JJ JJ IN DT NN , '' VBD NNP NNP , JJ NN IN DT NNP NNP IN NNP NNS .
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Mr. Regalia said the industry may be reluctant to step up building at the moment for fear the inventories of unsold homes will increase again . NNP NNP VBD DT NN MD VB JJ TO VB IN NN IN DT NN IN NN DT NNS IN JJ NNS MD VB RB .
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Another reason for the weakness , he said , may be that mortgage rates have hit a plateau since they began edging down after a peak in March . DT NN IN DT NN , PRP VBD , MD VB IN NN NNS VBP VBN DT NN IN PRP VBD VBG RB IN DT NN IN NNP .
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In August , rates on 30-year fixed-rate mortgages started creeping up a bit , but they inched down again through September . IN NNP , VBZ IN JJ JJ NNS VBD VBG IN DT NN , CC PRP VBD RB RB IN NNP .
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`` Rates have n't really peeled off that much , '' Mr. Regalia said . `` NNS VBP RB RB VBN IN DT NN , '' NNP NNP VBD .
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`` We 've kind of settled now into an interest-rate environment that 's fairly high . '' `` PRP VBP NN IN VBN RB IN DT NN NN WDT VBZ RB JJ . ''
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Work was begun on single family homes -- the core of the housing market -- at an annual rate of 971,000 in September , a drop of 2.1 % from the previous month . NN VBD VBN IN JJ NN NNS : DT NN IN DT NN NN : IN DT JJ NN IN CD IN NNP , DT NN IN CD NN IN DT JJ NN .
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That followed a 3.3 % decline in August . DT VBD DT CD NN NN IN NNP .
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Construction of apartments and other multi-family dwellings slipped 2.2 % to an annual rate of 1,022,000 following a 3.5 % decline in August . NN IN NNS CC JJ JJ NNS VBD CD NN TO DT JJ NN IN CD VBG DT CD NN NN IN NNP .
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The number of building permits issued for future construction dropped 2.4 % to a 1,296,000 annual rate after rising 3.7 % in August . DT NN IN NN VBZ VBN IN NN NN VBD CD NN TO DT CD JJ NN IN VBG CD NN IN NNP .
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All the numbers were adjusted for normal seasonal variations in building activity . DT DT NNS VBD VBN IN JJ JJ NNS IN NN NN .
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The housing starts numbers , however , are one of the least precise of the government 's economic indicators and are often revised significantly as more information is collected . DT NN VBZ NNS , RB , VBP CD IN DT JJS JJ IN DT NN POS JJ NNS CC VBP RB VBN RB IN JJR NN VBZ VBN .
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Shearson Lehman Hutton Holdings Inc. posted a sharp third-quarter turnaround from a year earlier , but net income would have dropped from the second quarter without a $ 37 million after-tax gain . NNP NNP NNP NNP NNP VBD DT JJ JJ NN IN DT NN RBR , CC JJ NN MD VB VBN IN DT JJ NN IN DT $ CD CD JJ NN .
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The securities firm posted third-quarter net of $ 66 million , or 64 cents a share , compared with a restated year-earlier loss of $ 3 million , or 11 cents a share . DT NNS NN VBD JJ NN IN $ CD CD , CC CD NNS DT NN , VBN IN DT VBN JJ NN IN $ CD CD , CC CD NNS DT NN .
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Revenue climbed 25 % to $ 3.3 billion from $ 2.6 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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The latest period included the gain , which was $ 77 million before tax , from the previously announced sale of the institutional money management business of Lehman Management Co . DT JJS NN VBD DT NN , WDT VBD $ CD CD IN NN , IN DT RB VBN NN IN DT JJ NN NN NN IN NNP NNP NNP .
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The 1988 period was restated from net income of $ 8 million to correct an overstatement in the company 's Boston Co. subsidiary . DT CD NN VBD VBN IN JJ NN IN $ CD CD TO VB DT NN IN DT NN POS NNP NNP NN .
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In the 1989 second quarter , Shearson had net income of $ 55 million , or 54 cents a share . IN DT CD JJ NN , NNP VBD JJ NN IN $ NN CD , CC CD NNS DT NN .
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An average 102.5 million common shares were outstanding in the latest quarter , up from 87.1 million . DT JJ CD CD JJ NNS VBD JJ IN DT JJS NN , IN IN CD CD .
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In New York Stock Exchange composite trading yesterday , Shearson shares lost 37.5 cents to $ 18.125 . IN NNP NNP NNP NNP JJ NN NN , NNP NNS VBD CD NNS TO $ CD .
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The company said the improved performance from a year ago reflects higher commissions and revenue from marketmaking and trading for its own account . DT NN VBD DT VBN NN IN DT NN RB VBZ JJR NNS CC NN IN NN CC NN IN PRP$ JJ NN .
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Commission revenue was $ 522 million , up 49 % . NN NN VBD $ CD CD , IN CD NN .
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But industrywide trading activity slowed in September as institutional investors turned cautious and individuals continued to shy away from the market . CC JJ NN NN VBD IN NNP IN JJ NNS VBD JJ CC NNS VBD TO VB RB IN DT NN .
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Investment banking revenue fell 32 % to $ 205 million , in part reflecting the continued slowdown of the underwriting business . NN NN NN VBD CD NN TO $ CD CD , IN NN VBG DT VBN NN IN DT NN NN .
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In the nine months , net fell 3 % to $ 106 million , or 98 cents a share , from $ 110 million , or $ 1.05 a share . IN DT CD NNS , NN VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN $ CD CD , CC $ CD DT NN .
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Revenue advanced 26 % to $ 9.6 billion from $ 7.6 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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Two major drug companies posted strong third-quarter earnings , in line with profits already reported by industry leaders and analysts ' expectations . CD JJ NN NNS VBD JJ JJ NNS , IN NN IN NNS RB VBN IN NN NNS CC NNS POS NNS .
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But Pfizer Inc. , based in New York , reported flat earnings . CC NNP NNP , VBN IN NNP NNP , VBD JJ NNS .
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Schering-Plough Corp. , based in Madison , N.J. , reported a 21 % rise in earnings as American Home Products Corp. of New York posted an 11 % increase in net . NNP NNP , VBN IN NNP , NNP , VBD DT CD NN NN IN NNS IN NNP NNP NNP NNP IN NNP NNP VBD DT CD NN NN IN NN .
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American Home Products NNP NNP NNPS
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American Home Products said sales and earnings for the third quarter and nine months were at record levels . NNP NNP NNPS VBD NNS CC NNS IN DT JJ NN CC CD NNS VBD IN NN NNS .
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Sales for the third quarter increased 6.5 % to $ 1.51 billion from $ 1.42 billion . NNS IN DT JJ NN VBN CD NN TO $ CD CD IN $ CD CD .
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Sales of health-care products increased 6 % in the third quarter , based in part on strong sales of prescription drugs such as Premarin , an estrogen-replacement drug , and sales of the company 's infant formula . NNS IN NN NNS VBN CD NN IN DT JJ NN , VBN IN NN IN JJ NNS IN NN NNS JJ IN NNP , DT NN NN , CC NNS IN DT NN POS NN NN .
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American Home Products said net income benefited from a `` lower effective tax rate , '' reflecting a reduction of foreign tax rates , and additional operations in Puerto Rico . NNP NNP NNPS VBD JJ NN VBD IN DT `` JJR JJ NN NN , '' VBG DT NN IN JJ NN NNS , CC JJ NNS IN NNP NNP .
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Net also was aided by a gain on the sale of the company 's equity interests in South Africa effective Sept. 1 . JJ RB VBD VBN IN DT NN IN DT NN IN DT NN POS NN NNS IN NNP NNP JJ NNP CD .
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In New York Stock Exchange composite trading yesterday , American Home Products closed at $ 102.25 a share , down 75 cents . IN NNP NNP NNP NNP JJ NN NN , NNP NNP NNPS VBD IN $ CD DT NN , RB CD NNS .
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Pfizer NNP
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Pfizer said third-quarter sales increased 4 % to $ 1.44 billion from $ 1.38 billion . NNP VBD JJ NNS VBN CD NN TO $ CD CD IN $ CD CD .
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The company said net income was flat because of investment in research and development and costs related to launches of several products . DT NN VBD JJ NN VBD JJ IN IN NN IN NN CC NN CC NNS VBN TO NNS IN JJ NNS .
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The company said the dollar 's continued strengthening reduced world-wide sales growth by three percentage points . DT NN VBD DT NN POS VBD VBG VBN JJ NNS NN IN CD NN NNS .
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Pfizer posted its largest gains in healthcare sales , up 3 % , and consumer products , up 23 % . NNP VBD PRP$ JJS NNS IN NN NNS , IN CD NN , CC NN NNS , IN CD NN .
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Sales by the specialty chemicals and materials science segments were flat , and sales by the agriculture segment declined 5 % . NNS IN DT NN NNS CC NNS NN NNS VBD JJ , CC NNS IN DT NN NN VBD NN NN .
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In the health-care segment , pharmaceutical sales increased 4 % and sales of hospital products increased 1 % . IN DT NN NN , JJ NNS VBN CD NN CC NNS IN NN NNS VBN CD NN .
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During the quarter , Pfizer received federal approval of Procardia XL , a calcium channel blocker approved for both angina and hypertension , and Monorail Piccolino , used to open obstructed coronary arteries . IN DT NN , NNP VBD JJ NN IN NNP NNP , DT NN NN NN VBD IN DT NN CC NN , CC NNP NNP , VBN TO VB VBN JJ NNS .
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In New York Stock Exchange composite trading yesterday , Pfizer closed at $ 67.75 a share , up 75 cents . IN NNP NNP NNP NNP JJ NN NN , NNP VBD IN $ CD DT NN , IN CD NNS .
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Schering-Plough NNP
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Schering-Plough said sales gained 2.7 % to $ 743.7 million from $ 724.4 million . NNP VBD NNS VBD CD NN TO $ CD CD IN $ CD CD .
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In the period , the company completed the sale of its European cosmetics businesses , sold a majority interest in its Brazilian affiliate , and announced the reorganization of its over-the-counter drug businesses into a new unit , Schering-Plough Health Care Products . IN DT NN , DT NN VBD DT NN IN PRP$ JJ NNS NNS , VBD DT NN NN IN PRP$ JJ NN , CC VBD DT NN IN PRP$ JJ NN NNS IN DT JJ NN , NNP NNP NNP NNPS .
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These actions did n't affect results because the gain on the sale of the European cosmetics businesses was offset by provisions relating to the Brazil divestiture and drug restructuring . DT NNS VBD RB VB NNS IN DT NN IN DT NN IN DT JJ NNS NNS VBD VBN IN NNS VBG TO DT NNP NN CC NN NN .
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U.S. pharmaceutical sales rose 15 % , led by allergy , asthma and cold products ; dermatological products ; anti-infectives and anti-cancer products ; and cardiovascular products . NNP JJ NNS VBD CD NN , VBN IN NN , NN CC JJ NNS : JJ NNS : NNS CC JJ NNS : CC JJ NNS .
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World-wide consumer product sales declined 12 % , primarily because of the European cosmetics sale . JJ NN NN NNS VBD CD NN , RB IN IN DT JJ NNS NN .
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Significantly lower sales of ` Stay Trim ' diet aids also were a factor in the drop . RB JJR NNS IN `` VB NN '' NN NNS RB VBD DT NN IN DT NN .
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The Maybelline beauty product line had higher sales following a sluggish first half . DT NNP NN NN NN VBD JJR NNS VBG DT JJ JJ NN .
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In Big Board composite trading , Schering-Plough shares fell 75 cents to close at $ 74.125 . IN NNP NNP JJ NN , NNP NNS VBD CD NNS TO VB IN $ CD .
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Swedish auto and aerospace concern Saab-Scania AB said it received a 250 million krona -LRB- $ 39 million -RRB- order from Swiss Crossair , one of Europe 's leading regional air companies , for five Saab 340B turboprop commuter aircraft . JJ NN CC NN NN NNP NNP VBD PRP VBD DT CD CD NN ( $ CD CD ) NN IN NNP NNP , CD IN NNP POS VBG JJ NN NNS , IN CD NNP CD NN NN NN .
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It is quite unfortunate that you failed so miserably in reporting the Hurricane Hugo disaster . PRP VBZ RB JJ IN PRP VBD RB RB IN VBG DT NNP NNP NN .
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Your Sept. 27 page-one article `` Charleston Lost Quite a Lot to Hugo , Especially Gentility '' leaves the impression that the storm was little more than an inconvenience . PRP$ NNP CD JJ NN `` NNP JJ RB DT NN TO NNP , RB NN '' VBZ DT NN IN DT NN VBD RB JJR IN DT NN .
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The damage reported focused on a select few who owned irreplaceable historic homes on the Battery . DT NN VBD VBN IN DT JJ JJ WP VBD JJ JJ NNS IN DT NNP .
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Not mentioned were the 50,000 people rendered homeless , and the more than 200,000 out of work for an indeterminable period ; the $ 1 billion-plus in losses to homes and personal property on the barrier islands ; the near - and long-term impact on the state 's largest industry , tourism , not to mention the human suffering . RB VBN VBD DT CD NNS VBD JJ , CC DT JJR IN CD IN IN NN IN DT JJ NN : DT $ CD JJ IN NNS TO NNS CC JJ NN IN DT NN NNS : DT IN : CC JJ NN IN DT NN POS JJS NN , NN , RB TO VB DT JJ NN .
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In centering on the disruption of a few proud local customs such as the historic homes tour and the damage to the antiquities , your reporter served to only perpetuate an outdated and stereotypically provincial view of this otherwise thriving port city . IN VBG IN DT NN IN DT JJ JJ JJ NNS JJ IN DT JJ NNS NN CC DT NN TO DT NNS , PRP$ NN VBN TO RB VB DT JJ CC RB JJ NN IN DT RB VBG NN NN .
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The damage will undoubtedly prove to be one of the epic human and economic disasters of the decade in this country . DT NN MD RB VB TO VB CD IN DT NN JJ CC JJ NNS IN DT NN IN DT NN .
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David M. Carroll NNP NNP NNP
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Columbia , S.C . NNP , NNP .
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Your story was tasteless and insensitive . PRP$ NN VBD JJ CC JJ .
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Depicting the people of a traumatized city reeling from a disaster of unprecedented proportions was at the very best ludicrous under the circumstances . VBG DT NNS IN DT VBN NN VBG IN DT NN IN JJ NNS VBD IN DT RB JJS JJ IN DT NNS .
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Your narrow focus appears to be a contrived attempt to show the people of that historic city to be doddering fools . PRP$ JJ NN VBZ TO VB DT VBN NN TO VB DT NNS IN DT JJ NN TO VB JJ NNS .
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You had to have been blind not to see the scenario there for what it was and is and will continue to be for months and even years -- a part of South Carolina that has sustained a blow that the Red Cross expects will cost that organization alone some $ 38 million . PRP VBD TO VB VBN JJ RB TO VB DT NN RB IN WP PRP VBD CC VBZ CC MD VB TO VB IN NNS CC JJ NNS : DT NN IN NNP NNP WDT VBZ VBN DT NN IN DT NNP NNP VBZ MD VB DT NN RB DT $ CD CD .
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William C. Barksdale Jr . NNP NNP NNP NNP .
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Columbia , S.C . NNP , NNP .
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Charleston is historic and aristocratic , as your reporter said , but not haughty , as he suggested . NNP VBZ JJ CC JJ , IN PRP$ NN VBD , CC RB JJ , IN PRP VBD .
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Charlestonians are instead indomitable and have contributed mightily to the culture and history of our country for more than 300 years . NNS VBP RB JJ CC VBP VBN RB TO DT NN CC NN IN PRP$ NN IN JJR IN CD NNS .
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I suggest your reporter see Charleston next spring in its full glory . PRP VBP PRP$ NN VB NNP JJ NN IN PRP$ JJ NN .
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William C. Stuart III NNP NNP NNP NNP
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Silver Spring , Md . NNP NNP , NNP .
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Affiliated Bankshares of Colorado Inc. said it agreed to sell its 10 % interest in Rocky Mountain Bankcard Systems for $ 18.5 million to Colorado National Bank of Denver and Central Bank of Denver . NNP NNPS IN NNP NNP VBD PRP VBD TO VB PRP$ CD NN NN IN NNP NNP NNP NNPS IN $ CD CD TO NNP NNP NNP IN NNP CC NNP NNP IN NNP .
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Colorado National is a unit of Colorado National Bankshares Inc. and Central is a unit of First Bank System of Minneapolis . NNP NNP VBZ DT NN IN NNP NNP NNPS NNP CC NNP VBZ DT NN IN NNP NNP NNP IN NNP .
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Affiliated said it expects to record a pretax gain of about $ 18.5 million from the sale of the credit-card business , which should more than offset any reduction in the carrying value of real estate and real-estate loans on its books . NNP VBD PRP VBZ TO VB DT JJ NN IN RB $ CD CD IN DT NN IN DT NN NN , WDT MD JJR IN VB DT NN IN DT VBG NN IN JJ NN CC NN NNS IN PRP$ NNS .
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The U.S. Export-Import Bank tentatively decided to guarantee commercial bank financing for the purchase of two Boeing Co. 767 airliners by Avianca , Colombia 's international airline , at a cost of about $ 150 million . DT NNP NNP NNP RB VBD TO VB JJ NN NN IN DT NN IN CD NNP NNP CD NNS IN NNP , NNP POS JJ NN , IN DT NN IN RB $ CD CD .
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The loan guarantee would amount to about $ 127.5 million , or 85 % of the cost of the aircraft . DT NN NN MD VB TO RB $ CD CD , CC CD NN IN DT NN IN DT NN .
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Because of the size of the proposed loan guarantee , the Ex-Im Bank 's preliminary commitment is subject to review by the House and Senate Banking committees . IN IN DT NN IN DT VBN NN NN , DT NNP NNP POS JJ NN VBZ NN TO VB IN DT NNP CC NNP NNP NNS .
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Ex-Im Bank officials said this review process currently is under way . NNP NNP NNS VBD DT NN NN RB VBZ IN NN .
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Sebastian Guzman Cabrera took over the oil workers union , Mexico 's most powerful labor organization , only last January . NNP NNP NNP VBD IN DT NN NNS NN , NNP POS RBS JJ NN NN , RB JJ NNP .
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But even in that short time Mr. Guzman Cabrera has become as controversial in his own way as his deposed predecessor , Joaquin Hernandez Galicia , known as La Quina . CC RB IN DT JJ NN NNP NNP NNP VBZ VBN IN JJ IN PRP$ JJ NN IN PRP$ VBN NN , NNP NNP NNP , VBN IN NNP NNP .
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President Carlos Salinas de Gortari used the army to oust La Quina , who reigned for 28 years over a graft-riddled empire that made state-run Petroleos Mexicanos , or Pemex , one of the world 's most inefficient oil companies . NNP NNP NNP FW NNP VBD DT NN TO VB NNP NNP , WP VBD IN CD NNS IN DT JJ NN WDT VBD JJ NNP NNP , CC NNP , CD IN DT NN POS RBS JJ NN NNS .
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Now , Mr. Guzman Cabrera is facing accusations that he 's as much a company man as La Quina was a crook . RB , NNP NNP NNP VBZ VBG NNS IN PRP VBZ IN JJ DT NN NN IN NNP NNP VBD DT NN .
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In recent contract negotiations with Pemex management , Mr. Guzman Cabrera accepted major concessions that greatly curtail the union 's role in subcontracting , long a source of millions of dollars in illicit earnings . IN JJ NN NNS IN NNP NN , NNP NNP NNP VBD JJ NNS WDT RB VB DT NN POS NN IN NN , JJ DT NN IN NNS IN NNS IN JJ NNS .
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And with the quiet pragmatism of Mr. Guzman Cabrera replacing the prickly populism of La Quina , government technocrats have been given a free hand to open the petrochemical sector to wider private and foreign investment . CC IN DT JJ NN IN NNP NNP NNP VBG DT JJ NN IN NNP NNP , NN NNS VBP VBN VBN DT JJ NN TO VB DT NN NN TO RBR JJ CC JJ NN .
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Mr. Guzman Cabrera 's new order has n't arrived without resistance . NNP NNP NNP POS JJ NN VBZ RB VBN IN NN .
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Brawls between union factions still erupt at Pemex installations . NNS IN NN NNS RB VBP IN NNP NNS .
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Leftist leader Cuauhtemoc Cardenas publicly questioned Mr. Guzman Cabrera 's `` moral quality , '' suggesting he is part of a conspiracy to turn over the country 's oil , a symbol of Mexican nationalism , to foreigners . JJ NN NNP NNP RB VBD NNP NNP NNP POS `` JJ NN , '' VBG PRP VBZ NN IN DT NN TO VB IN DT NN POS NN , DT NN IN JJ NN , TO NNS .
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The 61-year-old Mr. Guzman Cabrera takes such criticisms in stride . DT NNP NNP NNP NNP VBZ JJ NNS IN NN .
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`` This is n't a new kind of union leadership , it 's a new Mexico . `` DT VBZ RB DT JJ NN IN NN NN , PRP VBZ DT JJ NNP .
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We 're no longer afraid of associating with private or foreign capital , '' he says . PRP VBP RB RB JJ IN VBG IN JJ CC JJ NN , '' PRP VBZ .
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Pemex , which produces 40 % of government revenue , desperately needs new investment . NNP , WDT VBZ CD NN IN NN NN , RB VBZ JJ NN .
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Since world oil prices collapsed in 1982 , the government has siphoned Pemex 's coffers to make payments on Mexico 's $ 97 billion foreign debt . IN NN NN NNS VBD IN CD , DT NN VBZ VBN NNP POS NNS TO VB NNS IN NNP POS $ CD CD JJ NN .
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Little money has been returned to upgrade Pemex 's aging facilities . JJ NN VBZ VBN VBN TO VB NNP POS VBG NNS .
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While the government drains Pemex from above , the union has drained it from below . IN DT NN NNS NNP IN IN , DT NN VBZ VBN PRP IN RB .
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A bloated payroll and pervasive graft caused Pemex 's operating costs to balloon to 95 cents of each $ 1 in sales , far above the industry norm . DT JJ NN CC JJ NN VBN NNP POS VBG NNS TO VB TO CD NNS IN DT $ CD IN NNS , RB IN DT NN NN .
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The declines in investment and efficiency explain in part why Mexico has been importing gasoline this year . DT NNS IN NN CC NN VB IN NN WRB NNP VBZ VBN VBG NN DT NN .
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Some projections show Mexico importing crude by the end of the century , barring an overhaul of operations . DT NNS VBP NNP VBG NN IN DT NN IN DT NN , VBG DT NN IN NNS .
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`` Whatever you tried to change , whether it was cutting costs or attracting new partners , the big obstacle was the old union leadership , '' says oil consultant George Baker . `` WDT PRP VBD TO VB , IN PRP VBD VBG NNS CC VBG JJ NNS , DT JJ NN VBD DT JJ NN NN , '' VBZ NN NN NNP NNP .
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Enter Mr. Guzman Cabrera , who has a clear understanding of where union leaders fit in the pro-enterprise regime of President Salinas . VB NNP NNP NNP , WP VBZ DT JJ NN IN WRB NN NNS VBP IN DT JJ NN IN NNP NNP .
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`` I 'm the secretary-general , if there is one , '' he says , greeting a visitor to his office . `` PRP VBP DT NN , IN EX VBZ CD , '' PRP VBZ , VBG DT NN TO PRP$ NN .
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Beginning as a laborer in a refinery , Mr. Guzman Cabrera put in more than 40 years at Pemex before being pushed into retirement by La Quina after a dispute two years ago . VBG IN DT NN IN DT NN , NNP NNP NNP VB IN JJR IN CD NNS IN NNP IN VBG VBN IN NN IN NNP NNP IN DT NN CD NNS RB .
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Though he also long benefited from the system built by La Quina , Mr. Guzman Cabrera says union perks had simply gotten out of hand . IN PRP RB JJ VBD IN DT NN VBN IN NNP NNP , NNP NNP NNP VBZ NN NNS VBN RB VBN IN IN NN .
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They are `` at the base of all of the problems of corruption , '' he says . PRP VBP `` IN DT NN IN DT IN DT NNS IN NN , '' PRP VBZ .
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Thus , in recent contract negotiations , Mr. Guzman Cabrera gave up the union 's right to assign 40 % of all of Pemex 's outside contracts -- an enormous source of kickbacks . RB , IN JJ NN NNS , NNP NNP NNP VBD IN DT NN POS NN TO VB CD NN IN DT IN NNP POS IN NNS : DT JJ NN IN NNS .
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The union also ceded the 2 % commission it had received on all Pemex maintenance contracts . DT NN RB VBD DT CD NN NN PRP VBD VBN IN DT NNP NN NNS .
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-LRB- The union will keep a 2 % commission on construction projects . -RRB- ( DT NN MD VB DT CD NN NN IN NN NNS . )
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The new contract also eliminates the $ 15 monthly coupon , good only at union-owned grocery stores , that was part of the salary of every worker , from roughneck to chief executive . DT JJ NN RB VBZ DT $ CD JJ NN , JJ RB IN JJ NN NNS , WDT VBD NN IN DT NN IN DT NN , IN NN TO JJ NN .
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About 9,800 technical workers , notably chemists and lawyers , were switched to non-union status . IN CD JJ NNS , RB NNS CC NNS , VBD VBN TO JJ NN .
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Also , because of its reduced capital budget , Pemex has phased out about 50,000 transitory construction workers , reducing the work force to about 140,000 , the union leader says . RB , IN IN PRP$ VBN NN NN , NNP VBZ VBN IN IN CD JJ NN NNS , VBG DT NN NN TO IN CD , DT NN NN NNS .
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Mr. Guzman Cabrera says the union 's sacrifices will be offset by a wage and benefit package that amounts to a 22 % increase in compensation . NNP NNP NNP VBZ DT NN POS NNS MD VB VB IN DT NN CC NN NN IN NNS TO DT CD NN NN IN NN .
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But Pemex managers are the ones most thrilled by the contract . CC NNP NNS VBP DT NNS RBS VBN IN DT NN .
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`` We are retaking the instruments of administration , '' says Raul Robles , a Pemex subdirector . `` PRP VBP VBG DT NNS IN NN , '' VBZ NNP NNP , DT NNP NN .
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Pemex officials would n't say how much money the new contract would save the company , but one previous government estimate pegged savings at around $ 500 million a year . NNP NNS MD RB VB WRB JJ NN DT JJ NN MD VB DT NN , CC CD JJ NN NN VBD NNS IN IN $ CD CD DT NN .
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Pemex 's customers also are pleased with the company 's new spirit . NNP POS NNS RB VBP VBN IN DT NN POS JJ NN .
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Grupo Desc , a big conglomerate , has long depended on Pemex petrochemicals to produce plastic packing material . NNP NNP , DT JJ NN , VBZ RB VBN IN NNP NNS TO VB NN VBG NN .
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But when the Pemex plant shut down for an annual overhaul , it would never give notice to its customers . CC WRB DT NNP NN VBN RB IN DT JJ NN , PRP MD RB VB NN TO PRP$ NNS .
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`` The capriciousness would completely disrupt our operations , '' says Ernesto Vega Velasco , Desc 's finance director . `` DT NN MD RB VB PRP$ NNS , '' VBZ NNP NNP NNP , NNP POS NN NN .
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This year , for the first time , Desc and other customers were consulted well in advance of the Pemex plant 's shutdown to ensure minimal inconvenience . DT NN , IN DT JJ NN , NNP CC JJ NNS VBD VBN RB IN NN IN DT NNP NN POS NN TO VB JJ NN .
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Taming the union complements previous moves by the government to attract private investment in petrochemicals , which Mexico has been forced to import in large quantities in recent years . VBG DT NN VBZ JJ NNS IN DT NN TO VB JJ NN IN NNS , WDT NNP VBZ VBN VBN TO VB IN JJ NNS IN JJ NNS .
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In May , the government unveiled new foreign investment regulations that create special trusts allowing foreigners , long limited to a 40 % stake in secondary petrochemical companies , to own up to 100 % . IN NNP , DT NN VBD JJ JJ NN NNS WDT VBP JJ NNS VBG NNS , JJ JJ TO DT CD NN NN IN JJ NN NNS , TO VB IN TO CD NN .
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Later , the government reclassified several basic petrochemicals as secondary products . RB , DT NN VBD JJ JJ NNS IN JJ NNS .
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But Pemex 's courtship with private companies , and especially foreign ones , is controversial in a country where oil has been a symbol of national sovereignty since foreign oil holdings were nationalized in 1938 . CC NNP POS NN IN JJ NNS , CC RB JJ NNS , VBZ JJ IN DT NN WRB NN VBZ VBN DT NN IN JJ NN IN JJ NN NNS VBD VBN IN CD .
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`` They are preparing the workers for what 's coming : foreign control , '' wrote Heberto Castillo , a leftist leader . `` PRP VBP VBG DT NNS IN WP VBZ VBG : JJ NN , '' VBD NNP NNP , DT JJ NN .
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Mr. Guzman Cabrera and government officials insist that foreigners will be limited to investing in secondary petroleum products . NNP NNP NNP CC NN NNS VBP IN NNS MD VB JJ TO VBG IN JJ NN NNS .
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But the new union leader makes no apologies for Pemex 's more outward-looking attitude . CC DT JJ NN NN VBZ DT NNS IN NNP POS RBR JJ NN .
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`` If we do not integrate into this new world of interdependence , sooner or later we 're going to become victims of our own isolation , '' he says . `` IN PRP VBP RB VB IN DT JJ NN IN NN , RBR CC RB PRP VBP VBG TO VB NNS IN PRP$ JJ NN , '' PRP VBZ .
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Couple Counseling Grows to Defuse Stress JJ NN VBZ TO VB NN
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MORE EXECUTIVES and their spouses are seeking counseling as work and family pressures mount . JJR NNPS CC PRP$ NNS VBP VBG NN IN NN CC NN NNS VBP .
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Some employers initiate referrals , especially if work problems threaten a top manager 's job . DT NNS VBP NNS , RB IN NN NNS VBP DT JJ NN POS NN .
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Many couples `` are like ships passing in the night , '' a communications gulf that sparks problems on the job and at home , says psychologist Harry Levinson . JJ NNS `` VBP IN NNS VBG IN DT NN , '' DT NNS NN WDT VBZ NNS IN DT NN CC IN NN , VBZ NN NNP NNP .
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His Levinson Institute in Belmont , Mass. , has seen in recent years a doubling in the number of executives and spouses at its weeklong counseling program . PRP$ NNP NNP IN NNP , NNP , VBZ VBN IN JJ NNS DT NN IN DT NN IN NNS CC NNS IN PRP$ JJ NN NN .
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Employers foot the bill , he says , figuring what 's good for the couple is good for the company . NNS VBP DT NN , PRP VBZ , VBG WP VBZ JJ IN DT NN VBZ JJ IN DT NN .
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One East Coast manufacturing executive , faced with a job transfer his wife resented , found that counseling helped them both come to grips with the move . CD NNP NNP NN NN , VBN IN DT NN VB PRP$ NN VBD , VBD DT NN VBD PRP DT JJ TO NNS IN DT NN .
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And the vice president of a large Midwestern company realized that an abrasive temperament threatened his career when his wife confided that similar behavior at home harmed their marriage . CC DT NN NN IN DT JJ JJ NN VBD IN DT JJ NN VBD PRP$ NN WRB PRP$ NN VBD IN JJ NN IN NN VBD PRP$ NN .
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More dual-career couples also are getting help , with men increasingly bringing their working wives for joint counseling . RBR JJ NNS RB VBP VBG VB , IN NNS RB VBG PRP$ NN NNS IN JJ NN .
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`` The level of stress for a woman is often so high , it 's the husband who says , ` I 'm worried about her , ' '' says psychologist Marjorie Hansen Shaevitz . `` DT NN IN NN IN DT NN VBZ RB RB JJ , PRP VBZ DT NN WP VBZ , `` PRP VBP VBN IN PRP$ , '' '' VBZ NN NNP NNP NNP .
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Her Institute for Family and Work Relationships in La Jolla , Calif. , has noted a doubling in the number of couples seeking help the past two years . PRP$ NNP IN NNP CC NN NNPS IN NNP NNP , NNP , VBZ VBN DT NN IN DT NN IN NNS VBG VB DT JJ CD NNS .
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`` No matter how competent and smart you both are , the relationship almost certainly will erode if you do n't have time to talk , to have fun and to be sexual , '' says Ms. Shaevitz . `` DT NN WRB JJ CC JJ PRP DT VBP , DT NN RB RB MD VB IN PRP VBP RB VB NN TO VB , TO VB NN CC TO VB JJ , '' VBZ NNP NNP .
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She urges client couples to begin a `` detoxification '' period , purging social and other nonproductive activities and setting time apart for themselves . PRP VBZ NN NNS TO VB DT `` NN '' NN , VBG JJ CC JJ JJ NNS CC VBG NN RB IN PRP .
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`` Putting those times on the calendar , '' she says , `` is as important as remembering business appointments . '' `` VBG DT NNS IN DT NN , '' PRP VBZ , `` VBZ RB JJ IN VBG NN NNS . ''
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Power of Suggestion Stronger in Japan NNP IN NNP JJR IN NNP
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HERE 'S ONE more explanation for why Japan is a tough industrial competitor : Two of three Japanese employees submit suggestions to save money , increase efficiency and boost morale , while only 8 % of American workers do . NNP VBZ CD JJR NN IN WRB NNP VBZ DT JJ JJ NN : CD IN CD JJ NNS VBP NNS TO VB NN , NN NN CC VB NN , IN RB CD NN IN JJ NNS VBP .
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And the Japanese make far more suggestions -- 2,472 per 100 eligible employees vs. only 13 per 100 employees in the CC DT JJ NN RB JJR NNS : CD IN CD JJ NNS IN RB CD IN CD NNS IN DT
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Data for 1987 from the National Association of Suggestion Systems and the Japan Human Relations Association also indicate that Japanese employers adopt four of five suggestions , while their U.S. counterparts accept just one in four . NNS IN CD IN DT NNP NNP IN NNP NNPS CC DT NNP NNP NNP NNP RB VB IN JJ NNS VBP CD IN CD NNS , IN PRP$ NNP NNS VBP RB CD IN CD .
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In Japan , small suggestions are encouraged . IN NNP , JJ NNS VBP VBN .
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Each new employee is expected to submit four daily in the first few months on the job . DT JJ NN VBZ VBN TO VB CD JJ IN DT JJ JJ NNS IN DT NN .
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U.S. companies tend to favor suggestions `` that go for the home runs , '' says Gary Floss , vice president of corporate quality at Control Data Corp . NNP NNS VBP TO VB NNS `` WDT VBP IN DT NN VBZ , '' VBZ NNP NNP , NN NN IN JJ NN IN NNP NNP NNP .
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That helps explain why American employers grant an average award of $ 604.72 per suggestion , while Japan 's payment is $ 3.23 . DT VBZ VB WRB JJ NNS VBP DT JJ NN IN $ CD IN NN , IN NNP POS NN VBZ $ CD .
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Still , suggestions ' net savings per 100 employees is $ 274,475 in Japan vs. $ 24,891 in the U.S. . RB , NNS POS JJ NNS IN CD NNS VBZ $ CD IN NNP IN $ CD IN DT NNP .
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U.S. companies developing management teams are wrestling with how to handle individual suggestion systems . NNP NNS VBG NN NNS VBP VBG IN WRB TO VB JJ NN NNS .
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Control Data , for one , plays down its employee suggestion program because it favors the team-management focus . NNP NNP , IN CD , VBZ RB PRP$ NN NN NN IN PRP VBZ DT NN NN .
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Merger Fallout : Beware Employee Dishonesty NNP NNP : VB NNP NN
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CORPORATE security directors increasingly worry that merger mania spawns a rise in employee dishonesty . JJ NN NNS RB VBP DT NN NN VBZ DT NN IN NN NN .
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A Security magazine survey places the effect of takeovers and buy-outs among the industry 's 10 biggest challenges . DT NNP NN NN VBZ DT NN IN NNS CC NNS IN DT NN POS CD JJS NNS .
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`` If it causes management to take their eye off the ball , inventory shrinkage is going to be affected , '' says Lewis Shealy , vice president for loss prevention at Marshall Field 's , the department store chain . `` IN PRP VBZ NN TO VB PRP$ NN IN DT NN , NN NN VBZ VBG TO VB VBN , '' VBZ NNP NNP , NN NN IN NN NN IN NNP NNP POS , DT NN NN NN .
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A separate study of the extent of employee misconduct linked general job satisfaction to property loss . DT JJ NN IN DT NN IN NN NN VBD JJ NN NN TO NN NN .
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Co-author Richard Hollinger cites what happened at one family-owned company absorbed by a foreign giant . NN NNP NNP VBZ WP VBD IN CD JJ NN VBN IN DT JJ NN .
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Pilferage climbed dramatically as many angry employees `` felt abandoned by the former owners , '' says the University of Florida sociologist . NN VBD RB IN JJ JJ NNS `` VBD VBN IN DT JJ NNS , '' VBZ DT NNP IN NNP NN .
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But top management should watch for other tell-tale signs of employee misdeeds , like expense-account fudging and phone misuse . CC JJ NN MD VB IN JJ JJ NNS IN NN NNS , IN NN NN CC NN NN .
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Security consultant Dennis Dalton of Ventura , Calif. , thinks mergers often trigger longer lunch hours and increased absenteeism , conduct which can sap the bottom line more than thefts . NN NN NNP NNP IN NNP , NNP , VBZ NNS RB VBP RB NN NNS CC VBN NN , NN WDT MD VB DT NN NN JJR IN NNS .
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New management can take several steps to reduce dishonesty . JJ NN MD VB JJ NNS TO VB NN .
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Most important , experts say , is to show that a company 's ethical tone is set at the top . JJS JJ , NNS VBP , VBZ TO VB IN DT NN POS JJ NN VBZ VBN IN DT NN .
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Mr. Dalton also recommends that the chief executive establish a rumor control center and move swiftly to bolster morale . NNP NNP RB VBZ IN DT JJ NN VB DT NN NN NN CC NN RB TO VB NN .
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Consultant John Keller of Southlake , Texas , urges that top management adopt a `` tough hands-on approach '' with very tight controls and monitoring . NNP NNP NNP IN NNP , NNP , VBZ IN JJ NN VB DT `` JJ JJ NN '' IN RB JJ NNS CC NN .
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And security authority Robert L. Duston favors disciplining all employees who cheat . CC NN NN NNP NNP NNP VBZ VBG DT NNS WP VBP .
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Firms Walk Fine Line In Distributing Profits NNS VBP NNP NNP IN VBG NNS
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ARE CORPORATE profits distributed fairly ? VBP JJ NNS VBN RB .
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A survey by Sirota , Alper & Pfau , a New York consulting firm , underscores the difficulty for top management in satisfying employees and investors on that score . DT NN IN NNP , NNP CC NNP , DT NNP NNP NN NN , VBZ DT NN IN JJ NN IN JJ NNS CC NNS IN DT NN .
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Nearly seven of 10 investors think companies reinvest `` too little '' of their profits in the business . RB CD IN CD NNS VBP NNS VBP `` RB JJ '' IN PRP$ NNS IN DT NN .
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And half the employees surveyed think companies dole out too little to them . CC PDT DT NNS VBN VBP NNS VBP IN RB JJ TO PRP .
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But both see a common enemy : About 66 % of employees and 73 % of investors think senior managers get too big a slice of the profit pie . CC DT VB DT JJ NN : IN CD NN IN NNS CC CD NN IN NNS VBP JJ NNS VBP RB JJ DT NN IN DT NN NN .
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Bank of New York Co. said it agreed in principle to acquire the credit-card business of Houston-based First City Bancorp. of Texas for between $ 130 million and $ 134 million . NNP IN NNP NNP NNP VBD PRP VBD IN NN TO VB DT NN NN IN NNP NNP NNP NNP IN NNP IN IN $ CD CD CC $ CD CD .
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The move , subject to a definitive agreement , is part of a trend by big-city banks that have been buying up credit-card portfolios to expand their business . DT NN , NN TO DT JJ NN , VBZ NN IN DT NN IN JJ NNS WDT VBP VBN VBG IN NN NNS TO VB PRP$ NN .
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Just last month , a Bank of New York subsidiary agreed to buy the credit-card operation of Dreyfus Corp. 's Dreyfus Consumer Bank for $ 168 million , a transaction that is expected to be completed by the end of the year . RB JJ NN , DT NNP IN NNP NNP NN VBD TO VB DT NN NN IN NNP NNP POS NNP NNP NNP IN $ CD CD , DT NN WDT VBZ VBN TO VB VBN IN DT NN IN DT NN .
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First City 's portfolio includes approximately 640,000 accounts with about $ 550 million in loans outstanding . NNP NNP POS NN VBZ RB CD NNS IN RB $ CD CD IN NNS JJ .
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First City , which issues both MasterCard and Visa cards , has agreed to act as an agent bank . NNP NNP , WDT VBZ DT NNP CC NNP NNS , VBZ VBN TO VB IN DT NN NN .
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At the end of the third quarter , Bank of New York 's credit-card business consisted of 2.4 million accounts with $ 3.6 billion in loans outstanding . IN DT NN IN DT JJ NN , NNP IN NNP NNP POS NN NN VBD IN CD CD NNS IN $ CD CD IN NNS JJ .
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Bank of New York is currently the seventh-largest issuer of credit cards in the NNP IN NNP NNP VBZ RB DT JJ NN IN NN NNS IN DT
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First City said that because of increased competition in the credit-card business , it had decided it either had to expand its own holdings substantially or sell them . NNP NNP VBD IN IN IN VBN NN IN DT NN NN , PRP VBD VBN PRP DT VBD TO VB PRP$ JJ NNS RB CC VB PRP .
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`` We think there 's a good prospect that competition is going to get pretty fierce in this market , '' said James E. Day , a First City vice president . `` PRP VBP EX VBZ DT JJ NN DT NN VBZ VBG TO VB RB JJ IN DT NN , '' VBD NNP NNP NNP , DT NNP NNP NN NN .
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`` We see it becoming a bargain-basement kind of business . '' `` PRP VBP PRP VBG DT JJ NN IN NN . ''
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The company estimated that the transaction would enhance its book value , which stood at $ 28.55 a share on Sept. 30 , by more than $ 100 million , or about $ 4 a share . DT NN VBN IN DT NN MD VB PRP$ NN NN , WDT VBD IN $ CD DT NN IN NNP CD , IN JJR IN $ CD CD , CC RB $ CD DT NN .
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The company also said the transaction would bolster after-tax earnings by $ 3.25 a share when completed and boost its primary capital ratio to 7 % from 6.63 % . DT NN RB VBD DT NN MD VB JJ NNS IN $ CD DT NN WRB VBN CC VB PRP$ JJ NN NN TO CD NN IN CD NN .
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First City , which recently purchased three small Texas banking concerns , said it would use the proceeds to pursue additional expansion opportunities in the Southwest and elsewhere . NNP NNP , WDT RB VBN CD JJ NNP NN NNS , VBD PRP MD VB DT NNS TO VB JJ NN NNS IN DT NNP CC RB .
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With that possibility in mind , analysts said the transaction was a positive move for First City . IN DT NN IN NN , NNS VBD DT NN VBD DT JJ NN IN NNP NNP .
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`` I think they 'll be able to move faster to make acquisitions in Texas , '' said Brent Erensel , an analyst with Donaldson , Lufkin & Jenrette . `` PRP VBP PRP MD VB JJ TO VB RBR TO VB NNS IN NNP , '' VBD NNP NNP , DT NN IN NNP , NNP CC NNP .
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`` That 's something they can do very well . `` DT VBZ NN PRP MD VB RB RB .
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British Airways PLC said it is seeking improved terms and a sharply lower price in any revised bid for United Airlines parent UAL Corp. following the collapse of a $ 6.79 billion , $ 300-a-share buy-out bid . JJ NNP NNP VBD PRP VBZ VBG VBN NNS CC DT RB JJR NN IN DT VBN NN IN NNP NNPS NN NNP NNP VBG DT NN IN DT $ CD CD , $ JJ NN NN .
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Derek Stevens , British Air 's chief financial officer , told Dow Jones Professional Investor Report a price of $ 230 a share is `` certainly not too low , '' and indicated his company would like to reduce the size of its $ 750 million cash investment . NNP NNP , NNP NNP POS JJ JJ NN , VBD NNP NNP NNP NNP NNP DT NN IN $ CD DT NN VBZ `` RB RB RB JJ , '' CC VBD PRP$ NN MD VB TO VB DT NN IN PRP$ $ CD CD NN NN .
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He added the airline is n't committed to going forward with any new bid , and has n't participated in bankers ' efforts to revive the transaction that collapsed . PRP VBD DT NN VBZ RB VBN TO VBG RB IN DT JJ NN , CC VBZ RB VBN IN NNS POS NNS TO VB DT NN WDT VBD .
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`` We 're in no way committed to a deal going through at all . `` PRP VBP IN DT NN VBN TO DT NN VBG IN IN DT .
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We 're not rushing into anything . PRP VBP RB VBG IN NN .
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We do n't want to be party to a second rejection , '' he said , adding that coming up with a revised offer could easily take several weeks . PRP VBP RB VB TO VB NN TO DT JJ NN , '' PRP VBD , VBG IN VBG IN IN DT VBN NN MD RB VB JJ NNS .
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Mr. Stevens 's remarks , confirming a report in The Wall Street Journal that British Air wants to start from scratch in any new bid for the nation 's second-largest airline , helped push UAL stock lower for the fourth straight day . NNP NNP POS NNS , VBG DT NN IN DT NNP NNP NNP IN NNP NNP VBZ TO VB IN NN IN DT JJ NN IN DT NN POS JJ NN , VBD VB NNP NN JJR IN DT JJ JJ NN .
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UAL fell $ 6.25 a share to $ 191.75 on volume of 2.3 million shares in composite trading on the New York Stock Exchange as concern deepened among takeover stock traders about the length of time it will take to revive the purchase . NNP VBD $ CD DT NN TO $ CD IN NN IN CD CD NNS IN JJ NN IN DT NNP NNP NNP NNP IN NN VBD IN NN NN NNS IN DT NN IN NN PRP MD VB TO VB DT NN .
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Under the original buy-out approved by the UAL board Sept. 14 , UAL 's pilots planned to put up $ 200 million in cash and make $ 200 million in annual cost concessions for a 75 % stake . IN DT JJ NN VBN IN DT NNP NN NNP CD , NNP POS NNS VBN TO VB IN $ CD CD IN NN CC VB $ CD CD IN JJ NN NNS IN DT CD NN NN .
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UAL management was to pay $ 15 million for 10 % , and British Air was to receive a 15 % stake . NNP NN VBD TO VB $ CD CD IN CD NN , CC NNP NNP VBD TO VB DT CD NN NN .
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The buy-out fell through when Citicorp and Chase Manhattan Corp. unexpectedly failed to obtain bank financing . DT NN VBD IN WRB NNP CC NNP NNP NNP RB VBD TO VB NN NN .
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Since then , UAL stock has fallen 33 % in what may rank as the largest collapse of a takeover stock ever . IN RB , NNP NN VBZ VBN CD NN IN WP MD VB IN DT JJS NN IN DT NN NN RB .
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The tenor of Mr. Stevens 's remarks seemed to indicate that British Air will take a more active , high-profile role in pursuing any new bid . DT NN IN NNP NNP POS NNS VBD TO VB IN NNP NNP MD VB DT RBR JJ , JJ NN IN VBG DT JJ NN .
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He said he believes UAL management was badly advised on the funding of its original transaction . PRP VBD PRP VBZ NNP NN VBD RB VBN IN DT NN IN PRP$ JJ NN .
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Mr. Stevens said British Air has n't received any new buy-out proposals from the labor-management group , led by UAL Chairman Stephen Wolf , and has n't received any indication of when one might be forthcoming . NNP NNP VBD NNP NNP VBZ RB VBN DT JJ NN NNS IN DT JJ NN , VBN IN NNP NNP NNP NNP , CC VBZ RB VBN DT NN IN WRB PRP MD VB JJ .
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`` As far as we 're concerned , we 're waiting for the dust to settle , '' he said . `` RB RB IN PRP VBP VBN , PRP VBP VBG IN DT NN TO VB , '' PRP VBD .
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Although British Air is waiting to see what the buy-out group comes up with , Mr. Stevens said a revised transaction with less debt leverage is likely to be more attractive to banks . IN NNP NNP VBZ VBG TO VB WP DT NN NN VBZ IN IN , NNP NNP VBD DT VBN NN IN JJR NN NN VBZ JJ TO VB RBR JJ TO NNS .
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He said the original proposal is dead , and all aspects of a revised version are up for change , in light of the changes in UAL 's market price , the amount of debt banks are willing to fund , and the price British Air would be willing to pay . PRP VBD DT JJ NN VBZ JJ , CC DT NNS IN DT VBN NN VBP IN IN NN , IN NN IN DT NNS IN NNP POS NN NN , DT NN IN NN NNS VBP JJ TO VB , CC DT NN NNP NNP MD VB JJ TO VB .
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Mr. Stevens said he expects the new price will be considerably lower , but declined to specify a figure . NNP NNP VBD PRP VBZ DT JJ NN MD VB RB JJR , CC VBD TO VB DT NN .
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Asked whether a $ 230-a-share figure circulating in the market yesterday is too low , he said , `` It 's certainly not too low . '' VBN IN DT $ JJ NN VBG IN DT NN NN VBZ RB JJ , PRP VBD , `` PRP VBZ RB RB RB JJ . ''
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He added the original offer was `` a pretty full price , '' and that British Air 's contribution `` was quite a large chunk for us . '' PRP VBD DT JJ NN VBD `` DT RB JJ NN , '' CC IN NNP NNP POS NN `` VBD RB DT JJ NN IN PRP . ''
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British Air was originally attracted to the chance of obtaining a 15 % stake in the company , but was n't particularly happy with paying $ 750 million . NNP NNP VBD RB VBN TO DT NN IN VBG DT CD NN NN IN DT NN , CC VBD RB RB JJ IN VBG $ CD CD .
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`` If the -LCB- new -RCB- deal had us putting up less money but still having 15 % , that would be a point in our favor , '' he said . `` IN DT ( JJ ) NN VBD PRP VBG IN JJR NN CC RB VBG CD NN , WDT MD VB DT NN IN PRP$ NN , '' PRP VBD .
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In any new proposal , British Air would expect a greater rate of return than the 20%-plus in the original proposal . IN DT JJ NN , NNP NNP MD VB DT JJR NN IN NN IN DT NN IN DT JJ NN .
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In the event that the buy-out group stalls in reviving its bid , the UAL board could remain under some pressure to seek another transaction , even without any legal obligation to do so . IN DT NN IN DT NN NN NNS IN VBG PRP$ NN , DT NNP NN MD VB IN DT NN TO VB DT NN , RB IN DT JJ NN TO VB RB .
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Roughly one-third of its stock is believed held by takeover stock traders , who could vote to oust the board if they become impatient . RB NN IN PRP$ NN VBZ VBN VBN IN NN NN NNS , WP MD VB TO VB DT NN IN PRP VBP JJ .
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Meanwhile , the buy-out group 's task of holding its fragile coalition together , in the face of the bid 's collapse and internal opposition from two other employee groups , has been further complicated by an apparent rift in the ranks of the pilot union itself . RB , DT NN NN POS NN IN VBG PRP$ JJ NN RB , IN DT NN IN DT NN POS NN CC JJ NN IN CD JJ NN NNS , VBZ VBN RB VBN IN DT JJ NN IN DT NNS IN DT NN NN PRP .
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A pilot representing a group of 220 pilots hired during United 's 1985 strike filed suit Friday in Chicago federal court to block the takeover . DT NN VBG DT NN IN CD NNS VBN IN NNP POS CD NN VBD NN NNP IN NNP JJ NN TO VB DT NN .
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The dissident pilots oppose the plan because it would cause them to lose their seniority . DT JJ NNS VBP DT NN IN PRP MD VB PRP TO VB PRP$ NN .
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UAL 's management agreed to reduce the seniority of those pilots in exchange for the support of the United pilot union for the buy-out proposal . NNP POS NN VBD TO VB DT NN IN DT NNS IN NN IN DT NN IN DT NNP NN NN IN DT NN NN .
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The 220 pilots involved in the suit are n't members of the union . DT CD NNS VBN IN DT NN VBP RB NNS IN DT NN .
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The airline had allowed them to move ahead of some union members in seniority following the 1985 strike , a move the union had contested in a previous lawsuit . DT NN VBD VBN PRP TO VB RB IN DT NN NNS IN NN VBG DT CD NN , DT NN DT NN VBD VBN IN DT JJ NN .
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Judith Valente contributed to this article . NNP NNP VBD TO DT NN .
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Corporate efforts to control health-care costs by requiring evaluations prior to planned hospitalization and surgery have n't been sweeping enough to reduce the long-term rate of cost increases , according to a study by the Institute of Medicine . JJ NNS TO VB NN NNS IN VBG NNS RB TO VBN NN CC NN VBP RB VBN VBG RB TO VB DT JJ NN IN NN NNS , VBG TO DT NN IN DT NNP IN NNP .
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In the last decade , many corporations have embraced the `` utilization management '' cost containment strategy as a way to control health-care costs for employees . IN DT JJ NN , JJ NNS VBP VBN DT `` NN NN '' NN NN NN IN DT NN TO VB NN NNS IN NNS .
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These programs vary widely , but often require second opinions on proposed surgery , preadmission reviews of elective hospitalizations and reviews of treatment during illnesses or recovery periods . DT NNS VBP RB , CC RB VB JJ NNS IN VBN NN , NN NNS IN JJ NNS CC NNS IN NN IN NNS CC NN NNS .
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Between 50 % and 75 % of today 's workers are covered by such plans , up from 5 % five years ago . IN CD NN CC CD NN IN NN POS NNS VBP VBN IN JJ NNS , IN IN NN NN CD NNS RB .
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`` Although it probably has reduced the level of expenditures for some purchasers , utilization management -- like most other cost containment strategies -- does n't appear to have altered the long-term rate of increase in health-care costs , '' the Institute of Medicine , an affiliate of the National Academy of Sciences , concluded after a two-year study . `` IN PRP RB VBZ VBN DT NN IN NNS IN DT NNS , NN NN : IN RBS JJ NN NN NNS : VBZ RB VB TO VB VBN DT JJ NN IN NN IN NN NNS , '' DT NNP IN NNP , DT NN IN DT NNP NNP IN NNPS , VBD IN DT JJ NN .
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`` Employers who saw a short-term moderation in benefit expenditures are seeing a return to previous trends . '' `` NNS WP VBD DT JJ NN IN NN NNS VBP VBG DT NN TO JJ NNS . ''
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While utilization management frequently reduces hospitalization costs , these savings are often offset by increases in outpatient services and higher administrative costs , according to the report by a panel of health-care experts . IN NN NN RB VBZ NN NNS , DT NNS VBP RB VB IN NNS IN NN NNS CC JJR JJ NNS , VBG TO DT NN IN DT NN IN NN NNS .
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The report suggested that current review programs are too narrow . DT NN VBD IN JJ NN NNS VBP RB JJ .
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`` The unnecessary and inappropriate use of the hospital , and not the actual need for a particular procedure , has been the main focus , '' the panel said . `` DT JJ CC JJ NN IN DT NN , CC RB DT JJ NN IN DT JJ NN , VBZ VBN DT JJ NN , '' DT NN VBD .
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`` As a general rule , prior-review programs have not made case-by-case assessments of the comparative costs of alternative treatments or sites of care . '' `` IN DT JJ NN , JJ NNS VBP RB VBN JJ NNS IN DT JJ NNS IN NN NNS CC NNS IN NN . ''
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The report said that utilization management should have more of an impact as federal research on the effectiveness of medical treatments helps lead to medical practice guidelines . DT NN VBD DT NN NN MD VB JJR IN DT NN IN JJ NN IN DT NN IN JJ NNS VBZ VBN TO JJ NN NNS .
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Howard Bailit , a panel member and a vice president of Aetna Life & Casualty , said that utilization management will also do a better job of containing costs as it spreads to cover medical services delivered outside of hospitals . NNP NNP , DT NN NN CC DT NN NN IN NNP NNP CC NNP , VBD DT NN NN MD RB VB DT JJR NN IN VBG NNS IN PRP VBZ TO VB JJ NNS VBN IN IN NNS .
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`` There 's pretty good evidence that utilization management has reduced inappropriate hospitalization , '' he said . `` EX VBZ RB JJ NN DT NN NN VBZ VBN JJ NN , '' PRP VBD .
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But at the same time , spending on physician services and ambulatory care have mushroomed . CC IN DT JJ NN , NN IN NN NNS CC JJ NN VBP VBN .
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`` It 's like squeezing a balloon , '' Dr. Bailit said . `` PRP VBZ IN VBG DT NN , '' NNP NNP VBD .
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David Rahill of A. Foster Higgins & Co. said that clients of his consulting firm report that utilization management reduces their hospital care bills by about 5 % , but he agreed that for the health-care system as whole , some of these savings are offset by administrative and outpatient care costs . NNP NNP IN NNP NNP NNP CC NNP VBD IN NNS IN PRP$ NN NN NN DT NN NN VBZ PRP$ NN NN NNS IN IN NN NN , CC PRP VBD IN IN DT NN NN IN JJ , DT IN DT NNS VBP VB IN JJ CC NN NN NNS .
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Jerome Grossman , chairman of the panel , agrees that administrative costs of utilization management programs can be high . NNP NNP , NN IN DT NN , VBZ IN JJ NNS IN NN NN NNS MD VB JJ .
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`` You have a whole staff standing ready '' to evaluate the appropriateness of recommended treatment , he said . `` PRP VBP DT JJ NN VBG JJ '' TO VB DT NN IN VBN NN , PRP VBD .
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Dr. Grossman , who also is president of New England Medical Center Hospitals in Boston , noted that the hospitals he runs deal with more than 100 utilization management firms and that many of them have different procedures and requirements . NNP NNP , WP RB VBZ NN IN NNP NNP NNP NNP NNS IN NNP , VBD IN DT NNS PRP VBZ NN IN JJR IN CD NN NN NNS CC IN NN IN PRP VBP JJ NNS CC NNS .
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The panel urged greater efforts to reduce the complexity , paperwork and cost of utilization review . DT NN VBD JJR NNS TO VB DT NN , NN CC NN IN NN NN .
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`` Utilization management needs to better demonstrate that it reduces the wasteful use of resources , improves the appropriateness of patient care and imposes only reasonable burdens on patients and providers , '' the panel concluded . `` NN NN VBZ TO JJR VB IN PRP VBZ DT JJ NN IN NNS , VBZ DT NN IN NN NN CC VBZ RB JJ NNS IN NNS CC NNS , '' DT NN VBD .
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Renault and DAF Trucks NV announced a preliminary agreement to jointly manufacture a line of trucks in Britain and France . NNP CC NNP NNS NNP VBD DT JJ NN TO RB VB DT NN IN NNS IN NNP CC NNP .
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Philippe Gras , a Renault managing director , said the new line will cover trucks of between 2.5 tons and 4.2 tons and will be built at Renault 's Bapilly plant in France and at DAF 's British plant . NNP NNP , DT NNP VBG NN , VBD DT JJ NN MD VB NNS IN IN CD NNS CC CD NNS CC MD VB VBN IN NNP POS NNP NN IN NNP CC IN NNP POS JJ NN .
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The French state-controlled auto group and the Dutch truck maker plan to incorporate the new trucks into their product lines when they begin production toward the middle of the 1990s . DT JJ JJ NN NN CC DT JJ NN NN NN TO VB DT JJ NNS IN PRP$ NN NNS WRB PRP VBP NN IN DT NN IN DT CD .
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Mr. Gras said he expects a definitive agreement between the two companies to be completed in the next few months . NNP NNP VBD PRP VBZ DT JJ NN IN DT CD NNS TO VB VBN IN DT JJ JJ NNS .
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The venture is the latest example of the trend toward cooperative projects in Europe ahead of the 1992 deadline for eliminating trade barriers within the European Community . DT NN VBZ DT JJS NN IN DT NN IN JJ NNS IN NNP RB IN DT CD NN IN VBG NN NNS IN DT NNP NNP .
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Renault and DAF are expected to invest a total of about three billion French francs -LRB- $ 157.8 million -RRB- in the venture , including FFr 1 billion for design and development costs . NNP CC NNP VBP VBN TO VB DT NN IN IN CD CD JJ NNS ( $ CD CD ) IN DT NN , VBG NNP CD CD IN NN CC NN NNS .
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In addition , the companies will each spend about FFr 1 billion on tooling up their plants . IN NN , DT NNS MD DT VB IN NNP CD CD IN VBG IN PRP$ NNS .
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Mr. Gras said the joint venture represents considerable savings for both Renault and DAF , since both companies would in any case have had to renew their existing ranges of light goods vehicles . NNP NNP VBD DT JJ NN VBZ JJ NNS IN DT NNP CC NNP , IN DT NNS MD IN DT NN VBP VBN TO VB PRP$ VBG NNS IN NN NNS NNS .
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By pooling their resources , the two groups have effectively halved the design and development costs that would otherwise have been entailed , he said . IN VBG PRP$ NNS , DT CD NNS VBP RB VBN DT NN CC NN NNS WDT MD RB VB VBN VBN , PRP VBD .
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Renault officials said the potential European market for light trucks in the 2.5-ton to 4.2-ton range is between 700,000 and 800,000 vehicles annually , and Renault and DAF are aiming for a combined market share of about 11 % . NNP NNS VBD DT JJ JJ NN IN NN NNS IN DT JJ TO VB NN VBZ IN CD CC CD NNS RB , CC NNP CC NNP VBP VBG IN DT VBN NN NN IN IN CD NN .
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Both Renault and DAF will have world-wide marketing rights for the new range of vans and light trucks . DT NNP CC NNP MD VB JJ NN NNS IN DT JJ NN IN NNS CC NN NNS .
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Under a separate arrangement , British Aerospace PLC 's Rover Group PLC subsidiary will also be able to offer the vehicles through its dealers in the U.K. , and Renault 's truck-building subsidiary Renault Vehicles Industriels will have similar rights in France . IN DT JJ NN , NNP NNP NNP POS NNP NNP NNP NN MD RB VB JJ TO VB DT NNS IN PRP$ NNS IN DT NNP , CC NNP POS JJ NN NNP NNPS NNPS MD VB JJ NNS IN NNP .
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DAF is 16%-owned by British Aerospace , with a further 6.5 % held by the Dutch state-owned chemical group NV DSM . NNP VBZ JJ IN NNP NNP , IN DT JJ CD NN VBN IN DT JJ JJ NN NN NNP NNP .
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The van Doorne family of the Netherlands holds an additional 11 % of DAF 's capital . DT NNP NNP NN IN DT NNP VBZ DT JJ CD NN IN NNP POS NN .
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The Federal Reserve System is the standard object of suggestions for organizational and institutional changes , for two reasons . DT NNP NNP NNP VBZ DT JJ NN IN NNS IN JJ CC JJ NNS , IN CD NNS .
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First , its position in the government is anomalous . RB , PRP$ NN IN DT NN VBZ JJ .
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It has an unusual kind of independence from elected officials and still has authority over one of the most powerful of government 's instruments -- the control of the money supply . PRP VBZ DT JJ NN IN NN IN VBN NNS CC RB VBZ NN IN CD IN DT RBS JJ IN NN POS NNS : DT NN IN DT NN NN .
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Thus we have a condition that is easily described as undemocratic . RB PRP VBP DT NN WDT VBZ RB VBN IN JJ .
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Second , the responsibilities of the Federal Reserve as guardian of the currency , which means as guardian of the stability of the price level , sometimes lead it to take measures that are unpopular . JJ , DT NNS IN DT NNP NNP IN NN IN DT NN , WDT VBZ IN NN IN DT NN IN DT NN NN , RB VB PRP TO VB NNS WDT VBP JJ .
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As former Fed Chairman William McChesney Martin used to say , they would have to take the punch bowl away just as the party is getting interesting . IN JJ NNP NNP NNP NNP NNP VBD TO VB , PRP MD VB TO VB DT NN NN RB RB IN DT NN VBZ VBG JJ .
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So the Federal Reserve is an attractive target for complaint by politicians . RB DT NNP NNP VBZ DT JJ NN IN NN IN NNS .
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The Fed is easily assigned the blame for unpleasantness , like high interest rates or slow economic growth , while the politicians can escape responsibility by pointing to the Fed 's independence . DT NNP VBZ RB VBN DT NN IN NN , IN JJ NN NNS CC JJ JJ NN , IN DT NNS MD VB NN IN VBG TO DT NNP POS NN .
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This leads to proposals for `` reform '' of the Fed , which have the common feature of making the Fed more responsive to the administration , to the Congress and to public opinion -- without , however , any assumption of additional responsibility by the politicians . DT VBZ TO NNS IN `` NN '' IN DT NNP , WDT VBP DT JJ NN IN VBG DT NNP RBR JJ TO DT NN , TO DT NNP CC TO JJ NN : IN , RB , DT NN IN JJ NN IN DT NNS .
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These proposals include changing the term of the chairman , shortening the terms of the members , eliminating the presidents of the Federal Reserve Banks from the decision-making process , putting the Secretary of the Treasury on the Federal Reserve Board , having the Fed audited by an arm of Congress -LRB- the General Accounting Office -RRB- , putting the Fed 's expenditures in the budget , and requiring prompt publication of the Fed 's minutes . DT NNS VBP VBG DT NN IN DT NN , VBG DT NNS IN DT NNS , VBG DT NNS IN DT NNP NNP NNP IN DT NN NN , VBG DT NNP IN DT NNP IN DT NNP NNP NNP , VBG DT NNP VBN IN DT NN IN NNP ( DT NNP NNP NNP ) , VBG DT NNP POS NNS IN DT NN , CC VBG VB NN IN DT NNP POS NNS .
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Some of these ideas are again under consideration in Congress . DT IN DT NNS VBP RB IN NN IN NNP .
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But these proposals do not rest on a view of what the Fed 's problem is or , if they do , they rest on an incorrect view . CC DT NNS VBP RB VB IN DT NN IN WP DT NNP POS NN VBZ CC , IN PRP VBP , PRP VBP IN DT JJ NN .
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They would not solve the problem ; they would make it worse . PRP MD RB VB DT NN : PRP MD VB PRP JJR .
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The problem is not that the Fed is too unresponsive to the public interest . DT NN VBZ RB IN DT NNP VBZ RB JJ TO DT JJ NN .
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On the contrary , it is too responsive to an incorrect view of the public interest . IN DT NN , PRP VBZ RB JJ TO DT JJ NN IN DT JJ NN .
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The price level in the U.S. is now about 4 1\/4 times as high as it was 30 years ago . DT NN NN IN DT NNP VBZ RB IN CD CD NNS RB JJ IN PRP VBD CD NNS RB .
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On average , something that cost $ 100 30 years ago now costs $ 425 . IN JJ , NN DT NN $ CD CD NNS RB RB VBZ $ CD .
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Or , a wage that was $ 100 30 years ago would buy only $ 23.53 worth of stuff today . CC , DT NN WDT VBD $ CD CD NNS RB MD VB RB $ CD NN IN NN NN .
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On two occasions the inflation rate rose to more than 10 % a year . IN CD VBZ DT NN NN VBD TO JJR IN CD NN DT NN .
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In each case the ending of this unsustainable inflation caused a severe recession -- the two worst of the postwar period . IN DT NN DT NN IN DT JJ NN VBD DT JJ NN : DT CD JJS IN DT JJ NN .
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The enormous inflation over the past 30 years was largely due to monetary policy . DT JJ NN IN DT JJ CD NNS VBD RB JJ TO JJ NN .
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At least , it would not have happened without the support of monetary policy that provided for a 10-fold increase in the money supply during the same period . IN JJS , PRP MD RB VB VBN IN DT NN IN JJ NN WDT VBD IN DT JJ NN IN DT NN NN IN DT JJ NN .
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And that increase in the money supply would not have happened without the consent of the Federal Reserve . CC DT NN IN DT NN NN MD RB VB VBN IN DT NN IN DT NNP NNP .
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The basic problem of monetary policy , to which reform of the Fed should be addressed , is to prevent a recurrence of this experience . DT JJ NN IN JJ NN , TO WDT NN IN DT NNP MD VB VBN , VBZ TO VB DT NN IN DT NN .
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There were two general reasons for the mistaken monetary policy of the past 30 years : EX VBD CD JJ NNS IN DT VBN JJ NN IN DT JJ CD NNS :
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1 . To some extent the Federal Reserve shared the popular but incorrect view that expansionary monetary policy could yield a net improvement in employment and output . CD . TO DT NN DT NNP NNP VBD DT JJ CC JJ NN IN JJ JJ NN MD VB DT JJ NN IN NN CC NN .
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2 . Even where the Fed did not share this view it felt the need to accommodate to it . CD . RB WRB DT NNP VBD RB VB DT NN PRP VBD DT NN TO VB TO PRP .
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Despite all the formal provisions for its independence , the Fed seems constantly to feel that if it uses its independence too freely it will lose it . IN PDT DT JJ NNS IN PRP$ NN , DT NNP VBZ RB TO VB IN IN PRP VBZ PRP$ NN RB RB PRP MD VB PRP .
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The common proposals for reforming the Fed would only make the situation worse , if they had any effect at all . DT JJ NNS IN VBG DT NNP MD RB VB DT NN JJR , IN PRP VBD DT NN IN DT .
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Putting the Secretary of the Treasury on the Board of Governors , one of the leading proposals today , is an example . VBG DT NNP IN DT NNP IN DT NNP IN NNP , CD IN DT VBG NNS NN , VBZ DT NN .
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The secretary is the world 's biggest borrower of money . DT NN VBZ DT NN POS JJS NN IN NN .
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He has a built-in , constant longing for lower interest rates . PRP VBZ DT NN , JJ NN IN JJR NN NNS .
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Moreover , he is a political agent of a political president , who naturally gives extraordinary weight to the way the economy will perform before the next election , and less to its longer-run health . RB , PRP VBZ DT JJ NN IN DT JJ NN , WP RB VBZ JJ NN TO DT NN DT NN MD VB IN DT JJ NN , CC JJR TO PRP$ JJ NN .
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These days , the secretary suffers the further disqualification that he is a member of a club of seven finance ministers who meet occasionally to decide what exchange rates should be , which is a diversion from the real business of the Federal Reserve to stabilize the price level . DT NNS , DT NN VBZ DT JJ NN IN PRP VBZ DT NN IN DT NN IN CD NN NNS WP VBP RB TO VB WP NN NNS MD VB , WDT VBZ DT NN IN DT JJ NN IN DT NNP NNP TO VB DT NN NN .
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How should a reasonable member of the Federal Reserve Board interpret a congressional decision to put the secretary on the board ? WRB MD DT JJ NN IN DT NNP NNP NNP VB DT JJ NN TO VB DT NN IN DT NN .
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Could he plausibly interpret it as encouragement for the Fed to give primary emphasis to stabilizing the price level ? MD PRP RB VB PRP IN NN IN DT NNP TO VB JJ NN TO VBG DT NN NN .
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Or would he interpret it as instruction to give more weight to these other objectives that the secretary represents -- low interest rates , short-run economic expansion , and stabilization of exchange rates at internationally managed levels ? CC MD PRP VB PRP IN NN TO VB JJR NN TO DT JJ NNS IN DT NN VBZ : JJ NN NNS , JJ JJ NN , CC NN IN NN NNS IN RB VBD NNS .
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The answer seems perfectly clear . DT NN VBZ RB JJ .
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-LRB- True , a succession of Fed chairmen has given color to the notion that the Secretary of the Treasury belongs on the Fed . ( JJ , DT NN IN NNP NNS VBZ VBN NN TO DT NN IN DT NNP IN DT NNP VBZ IN DT NNP .
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By their constant readiness to advise all and sundry about federal budgetary matters the chairmen have encouraged the belief that fiscal policy and monetary policy are ingredients of a common stew , in which case it is natural that the Fed and the Treasury , and probably also the Congress , should be jointly engaged in stirring the pot . IN PRP$ JJ NN TO VB DT CC JJ IN JJ JJ NNS DT NNS VBP VBN DT NN IN JJ NN CC JJ NN VBP NNS IN DT JJ NN , IN WDT NN PRP VBZ JJ IN DT NNP CC DT NNP , CC RB RB DT NNP , MD VB RB VBN IN VBG DT NN .
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The Fed 's case for its own independence would be a little stronger if it were more solicitous of the independence of the rest of the government . -RRB- DT NNP POS NN IN PRP$ JJ NN MD VB DT RB JJR IN PRP VBD RBR JJ IN DT NN IN DT NN IN DT NN . )
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The Fed 's problem is not that it is too independent , or too unpolitical . DT NNP POS NN VBZ RB IN PRP VBZ RB JJ , CC RB JJ .
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The Fed is responsive to , and can not help being responsive to , the more overtly political part of the government . DT NNP VBZ JJ TO , CC MD RB VB VBG JJ TO , DT RBR RB JJ NN IN DT NN .
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The Fed exercises a power given to it by Congress and the president . DT NNP VBZ DT NN VBN TO PRP IN NNP CC DT NN .
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But Congress and the president accept no responsibility for the exercise of the power they have given the Fed . CC NNP CC DT NN VB DT NN IN DT NN IN DT NN PRP VBP VBN DT NNP .
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Critics of the present arrangement are correct to say that it is undemocratic . NNS IN DT JJ NN VBP JJ TO VB IN PRP VBZ JJ .
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What is undemocratic is the unwillingness of the more political parts of the government to take the responsibility for deciding the basic question of monetary policy , which is what priority should be given to stabilizing the price level . WP VBZ JJ VBZ DT NN IN DT RBR JJ NNS IN DT NN TO VB DT NN IN VBG DT JJ NN IN JJ NN , WDT VBZ WP NN MD VB VBN TO VBG DT NN NN .
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To leave this decision to an `` independent '' agency is not only undemocratic . TO VB DT NN TO DT `` JJ '' NN VBZ RB RB JJ .
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It also prevents the conduct of a policy that has a long-term rationale , because it leaves the Fed guessing about what are the expectations of its masters , the politicians , who have never had to consider the long-term consequences of monetary policy . PRP RB VBZ DT NN IN DT NN WDT VBZ DT JJ NN , IN PRP VBZ DT NNP VBG IN WP VBP DT NNS IN PRP$ NNS , DT NNS , WP VBP RB VBN TO VB DT JJ NNS IN JJ NN .
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The greatest contribution Congress could make at this time would be to declare that stabilizing the price level is the primary responsibility of the Federal Reserve System . DT JJS NN NNP MD VB IN DT NN MD VB TO VB IN VBG DT NN NN VBZ DT JJ NN IN DT NNP NNP NNP .
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Legislation to this effect has been introduced in Congress in this session by Rep. Stephen Neal -LRB- D. , N.C . -RRB- . NN TO DT NN VBZ VBN VBN IN NNP IN DT NN IN NNP NNP NNP ( NNP , NNP . ) .
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It is not the kind of thing that is likely to be enacted , however . PRP VBZ RB DT NN IN NN WDT VBZ JJ TO VB VBN , RB .
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Congress would be required to make a hard decision , and Congress would much prefer to leave the hard decision to the Fed and retain its rights of complaint after the fact . NNP MD VB VBN TO VB DT JJ NN , CC NNP MD RB VB TO VB DT JJ NN TO DT NNP CC VB PRP$ NNS IN NN IN DT NN .
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People will say that the nation and the government have other objectives , in addition to stabilizing the price level , which is true . NNS MD VB IN DT NN CC DT NN VBP JJ NNS , IN NN TO VBG DT NN NN , WDT VBZ JJ .
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But that is not the same as saying that the Federal Reserve has other objectives . CC DT VBZ RB DT JJ IN VBG IN DT NNP NNP VBZ JJ NNS .
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The government has other agencies and instruments for pursuing these other objectives . DT NN VBZ JJ NNS CC NNS IN VBG DT JJ NNS .
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But it has only the Fed to pursue price-level stability . CC PRP VBZ RB DT NNP TO VB JJ NN .
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And the Fed has at most very limited ability to contribute to the achievement of other objectives by means other than by stabilizing the price level . CC DT NNP VBZ IN RBS RB JJ NN TO VB TO DT NN IN JJ NNS IN VBZ JJ IN IN VBG DT NN NN .
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The two objectives most commonly thought to be legitimate competitors for the attention of the Fed are high employment and rapid real growth . DT CD NNS RBS RB VBD TO VB JJ NNS IN DT NN IN DT NNP VBP JJ NN CC JJ JJ NN .
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But the main lesson of economic policy in the past 30 years is that if the Fed compromises with the price-stability objective in the pursuit of these other goals , the result is not high employment and rapid growth but is inflation . CC DT JJ NN IN JJ NN IN DT JJ CD NNS VBZ IN IN DT NNP NNS IN DT NN NN IN DT NN IN DT JJ NNS , DT NN VBZ RB JJ NN CC JJ NN CC VBZ NN .
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A former chairman of the president 's Council of Economic Advisers , Mr. Stein is an American Enterprise Institute fellow . DT JJ NN IN DT NN POS NNP IN NNP NNPS , NNP NNP VBZ DT NNP NNP NNP NN .
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Republic New York Corp. joined the list of banks boosting reserves for losses on loans to less-developed countries , setting out a $ 200 million provision and posting a $ 155.4 million third-quarter net loss as a result . NNP NNP NNP NNP VBD DT NN IN NNS VBG NNS IN NNS IN NNS TO JJ NNS , VBG IN DT $ CD CD NN CC VBG DT $ CD CD JJ JJ NN IN DT NN .
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The per-share loss was $ 5.32 . DT JJ NN VBD $ CD .
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In the year earlier period , the New York parent of Republic National Bank had net income of $ 38.7 million , or $ 1.12 a share . IN DT NN JJR NN , DT NNP NNP NN IN NNP NNP NNP VBD JJ NN IN $ CD CD , CC $ CD DT NN .
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Excluding the provision , Republic earned $ 44.6 million , up 15 % from a year ago . VBG DT NN , NNP VBD $ CD CD , IN CD NN IN DT NN RB .
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The bank 's medium-term and long-term loans to less-developed countries total $ 293 million , of which $ 146 million are n't accruing interest , the bank said . DT NN POS JJ CC JJ NNS TO JJ NNS JJ $ CD CD , IN WDT $ CD CD VBP RB VBG NN , DT NN VBD .
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Republic 's total of nonperforming assets was $ 167 million at Sept. 30 , with its reserve for loan losses now standing at $ 357 million . NNP POS NN IN JJ NNS VBD $ CD CD IN NNP CD , IN PRP$ NN IN NN NNS RB VBG IN $ CD CD .
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Abortion-rights advocates won last week 's battles , but the war over the nation 's most-contentious social question is about to pick up again on turf that favors those seeking to restrict abortions . NNS NNS VBD JJ NN POS NNS , CC DT NN IN DT NN POS RBS JJ NN VBZ IN TO VB IN RB IN NN WDT VBZ DT VBG TO VB NNS .
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Strict new regulations seem certain to pass the state House in Pennsylvania next week , with easy approval by the Senate and by Democratic Gov. Bob Casey expected shortly thereafter . JJ JJ NNS VBP JJ TO VB DT NN NNP IN NNP JJ NN , IN JJ NN IN DT NNP CC IN NNP NNP NNP NNP VBD RB RB .
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Legislation to require the consent of parents before their daughters under the age of 18 can have abortions will probably pass both houses of the Michigan legislature and set up a grinding battle to override the expected veto of Democratic Gov. James Blanchard . NN TO VB DT NN IN NNS IN PRP$ NNS IN DT NN IN CD MD VB NNS MD RB VB DT NNS IN DT NNP NN CC VBN IN DT VBG NN TO VB DT VBN NN IN NNP NNP NNP NNP .
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The short-term shift in the political climate surrounding abortion reflects two factors that are likely to govern the debate in the next several months : the reawakening of the abortion-rights movement as a potent force after years of lassitude , and the ability of each side to counter the other 's advance in one arena with a victory of its own elsewhere . DT JJ NN IN DT JJ NN VBG NN VBZ CD NNS WDT VBP JJ TO VB DT NN IN DT JJ JJ NNS : DT VBG IN DT NNS NN IN DT JJ NN IN NNS IN NN , CC DT NN IN DT NN TO VB DT NN POS NN IN CD NN IN DT NN IN PRP$ JJ RB .
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The action in Pennsylvania , for example , will follow last week 's collapse of a special session of the Florida legislature to enact restrictions on abortions in that state , and the vote here in Washington by the House to permit federally paid abortions for poor women who are victims of rape or incest . DT NN IN NNP , IN NN , MD VB JJ NN POS NN IN DT JJ NN IN DT NNP NN TO VB NNS IN NNS IN DT NN , CC DT NN RB IN NNP IN DT NNP TO VB RB VBN NNS IN JJ NNS WP VBP NNS IN NN CC NN .
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But President Bush is expected to veto the congressional legislation and that , along with the easy approval of the Pennsylvania measure , is likely to mute the abortion-rights activists ' claims of momentum and underline the challenges faced by this resurgent movement . CC NNP NNP VBZ VBN TO VB DT JJ NN CC IN , IN IN DT JJ NN IN DT NNP NN , VBZ JJ TO VB DT NNS NNS POS NNS IN NN CC VB DT NNS VBN IN DT JJ NN .
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`` It 's great to feel good for once in 15 years , '' says Harrison Hickman , a consultant to abortion-rights advocates , reflecting the relief of his compatriots after last week 's victories , the first major events since the Supreme Court , in its July 3 Webster decision , permitted the states to enact restrictions on abortions . `` PRP VBZ JJ TO VB JJ IN RB IN CD NNS , '' VBZ NNP NNP , DT NN TO NNS NNS , VBG DT NN IN PRP$ NNS IN JJ NN POS NNS , DT JJ JJ NNS IN DT NNP NNP , IN PRP$ NNP CD NNP NN , VBD DT NNS TO VB NNS IN NNS .
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`` But how many more times we 're going to feel good in the next 15 is another question . '' `` CC WRB RB JJR NNS PRP VBP VBG TO VB JJ IN DT JJ CD VBZ DT NN . ''
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Indeed , abortion-rights activists still face their greatest tests . RB , NNS NNS JJ VB PRP$ JJS NNS .
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`` The pro-choice movement has shown -- finally -- that it can mobilize , '' says Glen Halva-Neubauer , a Furman University political scientist who specializes in how state legislators handle the abortion question . `` DT JJ NN VBZ VBN : RB : IN PRP MD VB , '' VBZ NNP NNP , DT NNP NNP JJ NN WP VBZ IN WRB NN NNS VBP DT NN NN .
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`` But it still has n't shown that it can win in a state like Pennsylvania or Missouri , where abortion has been clearly an electoral issue and where it 's been an emotional issue for a long time . '' `` CC PRP RB VBZ RB VBN IN PRP MD VB IN DT NN IN NNP CC NNP , WRB NN VBZ VBN RB DT JJ NN CC WRB PRP VBZ VBN DT JJ NN IN DT JJ NN . ''
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The foes of abortion hold the strong whip hand in Pennsylvania , where abortion-rights activists are so much on the defensive that their strategy is less to fight the proposed legislation than it is to stress how the state legislature does n't reflect the viewpoints of the state 's citizens . DT NNS IN NN NN DT JJ NN NN IN NNP , WRB NNS NNS VBP RB JJ IN DT NN IN PRP$ NN VBZ JJR TO VB DT VBN NN IN PRP VBZ TO VB WRB DT NN NN VBZ RB VB DT NNS IN DT NN POS NNS .
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As a result , GOP state Rep. Stephen Freind of Delaware County , the legislature 's leading foe of abortion , has been given all but free rein to press a strict seven-point plan to restrict abortion and , he hopes , to force the Supreme Court directly to reassess its 1973 Roe v. Wade decision that established the right of abortion in the first place . IN DT NN , NNP NN NNP NNP NNP IN NNP NNP , DT NN POS VBG NN IN NN , VBZ VBN VBN DT CC JJ NN TO VB DT JJ JJ NN TO VB NN CC , PRP VBZ , TO VB DT NNP NNP RB TO VB PRP$ CD NNP CC NNP NN WDT VBD DT NN IN NN IN DT JJ NN .
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The Freind legislation -- the state 's House Judiciary Committee approved it in Harrisburg this week and the full Pennsylvania House is expected to take up the bill next Tuesday -- includes a provision to ban abortions after 24 weeks of pregnancy , except to avert the death of the mother . DT NNP NN : DT NN POS NNP NNP NNP VBD PRP IN NNP DT NN CC DT JJ NNP NNP VBZ VBN TO VB IN DT NN JJ NNP : VBZ DT NN TO VB NNS IN CD NNS IN NN , VB TO VB DT NN IN DT NN .
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Mr. Freind calculates that the provision , which attacks the trimester standards that Roe established , will `` make it necessary '' for the Supreme Court to review Roe and , perhaps , to overturn it . NNP NNP VBZ IN DT NN , WDT VBZ DT NN NNS IN NNP VBD , MD `` VB PRP JJ '' IN DT NNP NNP TO VB NNP CC , RB , TO VB PRP .
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But the Pennsylvania measure also includes an `` informed consent '' provision that may become widely imitated by abortion foes who want to make women contemplating abortion as uncomfortable as possible with the procedure and with themselves . CC DT NNP NN RB VBZ DT `` VBN NN '' NN WDT MD VB RB VBN IN NN NNS WP VBP TO VB NNS VBG NN RB JJ IN JJ IN DT NN CC IN PRP .
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Under this legislation , a woman must be informed 24 hours before the operation of the details of the procedure and its risks . IN DT NN , DT NN MD VB VBN CD NNS IN DT NN IN DT NNS IN DT NN CC PRP$ NNS .
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`` Regardless of whether one supports or opposes the right to an abortion , '' Mr. Freind argues , `` it is virtually impossible for any rational human being to disagree with the concept that a woman has the right to have all of the appropriate materials and advice made available to her before she makes a decision which , one way or the other , might remain with her for the rest of her life . '' `` RB IN IN CD VBZ CC VBZ DT NN TO DT NN , '' NNP NNP VBZ , `` PRP VBZ RB JJ IN DT JJ JJ NN TO VB IN DT NN IN DT NN VBZ DT NN TO VB DT IN DT JJ NNS CC NN VBD JJ TO PRP IN PRP VBZ DT NN WDT , CD NN CC DT NN , MD VB IN PRP IN DT NN IN PRP$ NN . ''
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In Michigan , where the state Senate is expected to approve parental-consent legislation by the end of next week , Gov. Blanchard is the principal obstacle for anti-abortionists . IN NNP , WRB DT NN NNP VBZ VBN TO VB JJ NN IN DT NN IN JJ NN , NNP NNP VBZ DT JJ NN IN NNS .
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Susan Rogin , a consultant to abortion-rights activists in the state , takes comfort from the fact that the state 's House abortion opponents `` have n't been able to muster the votes to overturn a veto on abortion in 16 years . '' NNP NNP , DT NN TO NNS NNS IN DT NN , VBZ NN IN DT NN IN DT NN POS NNP NN NNS `` VBP RB VBN JJ TO VB DT NNS TO VB DT NN IN NN IN CD NNS . ''
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But proponents believe they may be able to shake enough votes loose to override the veto if they are successful in portraying the legislation as a matter of parents ' rights . CC NNS VBP PRP MD VB JJ TO VB RB VBZ JJ TO VB DT NN IN PRP VBP JJ IN VBG DT NN IN DT NN IN NNS POS NNS .
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In Illinois , lawmakers will vote before next spring on legislation requiring physicians to perform tests on fetuses at 20 weeks to determine their gestational age , weight and lung maturity along with a provision requiring that , if fetuses survive an abortion , a second doctor must be on hand to help it survive . IN NNP , NNS MD VB IN JJ NN IN NN VBG NNS TO VB NNS IN NNS IN CD NNS TO VB PRP$ JJ NN , NN CC NN NN IN IN DT NN VBG IN , IN NNS VBP DT NN , DT JJ NN MD VB IN NN TO VB PRP VB .
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The legislation failed by one vote to clear the House Rules Committee Tuesday , but anti-abortionists still may succeed in bringing the measure to the floor this fall . DT NN VBN IN CD NN TO VB DT NNP NNP NNP NNP , CC NNS RB MD VB IN VBG DT NN TO DT NN DT NN .
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Pamela Sutherland , executive director of the Illinois Planned Parenthood Council , says she and her allies are `` cautiously optimistic '' they can defeat it if it comes to a floor vote . NNP NNP , JJ NN IN DT NNP NNP NNP NNP , VBZ PRP CC PRP$ NNS VBP `` RB JJ '' PRP MD VB PRP IN PRP VBZ TO DT NN NN .
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Abortion foes in Wisconsin , meanwhile , expect a parental-consent bill to be sent to the state assembly floor by early November and are hopeful of prevailing in both houses by next March . NN NNS IN NNP , RB , VBP DT JJ NN TO VB VBN TO DT NN NN NN IN JJ NNP CC VBP NN IN VBG IN DT NNS IN JJ NNP .
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In Texas , abortion opponents want to pass parental-consent legislation along with a statewide ban on the use of public funds , personnel and facilities for abortion , and viability tests for fetuses 19 weeks and older . IN NNP , NN NNS VBP TO VB JJ NN IN IN DT JJ NN IN DT NN IN JJ NNS , NNS CC NNS IN NN , CC NN NNS IN NNS CD NNS CC JJR .
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The anti-abortionists are urging GOP Gov. Bill Clements to press the issues in a special session scheduled to run Nov. 14 to Dec. 13 . DT NNS VBP VBG NNP NNP NNP NNP TO VB DT NNS IN DT JJ NN VBN TO VB NNP CD TO NNP CD .
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`` The prognosis is only fair , '' says Kathie Roberts , administrative director of the Texas Right to Life Committee . `` DT NN VBZ RB JJ , '' VBZ NNP NNP , JJ NN IN DT NNP NNP TO NNP NNP .
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`` Next year is an election year and the legislators just do n't want to do anything about this now . '' `` JJ NN VBZ DT NN NN CC DT NNS RB VBP RB VB TO VB NN IN DT RB . ''
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This legislative activity comes as both sides are undertaking new mobilization efforts , plunging into gubernatorial races in Virginia and New Jersey , and girding for next autumn 's state elections . DT JJ NN VBZ IN DT NNS VBP VBG JJ NN NNS , VBG IN JJ NNS IN NNP CC NNP NNP , CC VBG IN JJ NN POS NN NNS .
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At the same time , abortion foes have developed a national legislative strategy , deciding to move on what Jacki Ragan , the National Right to Life Committee 's director of state organizational development , calls `` reasonable measures that an overwhelming mainstream majority of Americans support . '' IN DT JJ NN , NN NNS VBP VBN DT JJ JJ NN , VBG TO VB IN WP NNP NNP , DT NNP NNP TO NNP NNP POS NN IN NN JJ NN , VBZ `` JJ NNS IN DT JJ NN NN IN NNPS NN . ''
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These include bans on the use of abortion for birth control and sex selection , and the public funding of alternatives for abortion . DT VBP NNS IN DT NN IN NN IN NN NN CC NN NN , CC DT JJ NN IN NNS IN NN .
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`` Those who are on the other side can hardly oppose alternative funding if they continue to insist on calling themselves ` pro-choice ' rather than ` pro-abortion , ' '' says Mary Spaulding , the group 's associate state legislative coordinator . `` DT WP VBP IN DT JJ NN MD RB VB NN NN IN PRP VBP TO VB IN VBG PRP `` JJ '' RB IN `` JJ , '' '' VBZ NNP NNP , DT NN POS JJ NN JJ NN .
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Over the weekend , the National Abortion Rights Action League singled out eight politicians , including Pennsylvania 's Mr. Freind , as 1990 targets and held a Washington seminar designed to train its leaders in political techniques , including how to put the anti-abortionists on the defensive in state legislatures . IN DT NN , DT NNP NNP NNP NNP NNP VBD RP CD NNS , VBG NNP POS NNP NNP , IN CD NNS CC VBD DT NNP NN VBN TO VB PRP$ NNS IN JJ NNS , VBG WRB TO VB DT NNS IN DT NN IN NN NNS .
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`` We now see pro-choice legislators going on the offensive for the first time , '' says Kate Michelman , executive director of the group . `` PRP RB VBP JJ NNS VBG IN DT NN IN DT JJ NN , '' VBZ NNP NNP , JJ NN IN DT NN .
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Wall Street NNP NNP
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When I was just a child And confronted by my fears , The things that I thought would get me Had fangs and pointed ears . WRB PRP VBD RB DT NN CC VBN IN PRP$ NNS , DT NNS IN PRP VBD MD VB PRP VBD NNS CC VBD NNS .
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Nothing much has changed -- My periodic scares Are still from hostile animals , Only now , they 're bulls and bears . NN NN VBZ VBN : PRP$ JJ NNS VBP RB IN JJ NNS , RB RB , PRP VBP NNS CC VBZ .
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-- Pat D'Amico . : NNP NNP .
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Daffynition NN
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Trained dolphins : pur-poises . VBN NNS : NNS .
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-- Marrill J. Pederson . : NNP NNP NNP .
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This maker and marketer of cartridge tape systems said it completed the sale of 2.85 million shares of common priced at $ 10 a share in an initial public offering . DT NN CC NN IN NN NN NNS VBD PRP VBD DT NN IN CD CD NNS IN JJ VBN IN $ CD DT NN IN DT JJ JJ NN .
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The company said that it is selling two million shares and that the rest are being sold by certain stockholders . DT NN VBD IN PRP VBZ VBG CD CD NNS CC IN DT NN VBP VBG VBN IN JJ NNS .
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Proceeds will be used for capital expenditures and working capital . NNS MD VB VBN IN NN NNS CC VBG NN .
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Goldman , Sachs & Co. and Montgomery Securities Inc. are co-managing the offering . NNP , NNP CC NNP CC NNP NNP NNP VBP JJ DT NN .
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Congress sent President Bush an $ 18.4 billion fiscal 1990 Treasury and Postal Service bill providing $ 5.5 billion for the Internal Revenue Service and increasing the Customs Service 's air-interdiction program nearly a third . NNP VBD NNP NNP DT $ CD CD JJ CD NNP CC NNP NNP NN VBG $ CD CD IN DT NNP NNP NNP CC VBG DT NNP NNP POS NN NN RB DT JJ .
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Final approval came on a simple voice vote in the Senate , and the swift passage contrasted with months of negotiations over the underlying bill which is laced with special-interest provisions for both members and the executive branch . JJ NN VBD IN DT JJ NN NN IN DT NNP , CC DT JJ NN VBN IN NNS IN NNS IN DT VBG NN WDT VBZ VBN IN JJ NNS IN DT NNS CC DT JJ NN .
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An estimated $ 33 million was added for university and science grants , including $ 1.5 million for Smith College . DT VBN $ CD CD VBD VBN IN NN CC NN NNS , VBG $ CD CD IN NNP NNP .
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And Southwest lawmakers were a driving force behind $ 54.6 million for U.S.-Mexico border facilities , or more than double the administration 's request . CC NNP NNS VBD DT VBG NN IN $ CD CD IN JJ NN NNS , CC JJR IN VB DT NN POS NN .
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More than $ 1.8 million is allocated for pensions and expenses for former presidents , and the budget for the official residence of Vice President Quayle is more than doubled , with $ 200,000 designated for improvements to the property . RBR IN $ CD CD VBZ VBN IN NNS CC NNS IN JJ NNS , CC DT NN IN DT JJ NN IN NNP NNP NNP VBZ RBR IN VBN , IN $ CD VBN IN NNS TO DT NN .
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Even the Office of Management and Budget is remembered with an extra $ 1 million to help offset pay costs that other government departments are being asked to absorb . RB DT NNP IN NNP CC NNP VBZ VBN IN DT JJ $ CD CD TO VB VB NN NNS IN JJ NN NNS VBP VBG VBN TO VB .
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Within the IRS , nearly $ 1.95 billion is provided for processing tax returns , a 12 % increase over fiscal 1989 and double what the government was spending five years ago . IN DT NNP , RB $ CD CD VBZ VBN IN NN NN NNS , DT CD NN NN IN JJ CD CC JJ WP DT NN VBD VBG CD NNS RB .
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Investigation and taxpayer service accounts would grow to $ 1.6 billion , and Congress specifically added $ 7.4 million for stepped up criminal investigations of money laundering related to drug traffic . NNP CC NN NN NNS MD VB TO $ CD CD , CC NNP RB VBD $ CD CD IN VBN IN JJ NNS IN NN NN VBN TO NN NN .
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The large increase in Customs Service air-interdiction funds is also intended to counter smuggling , and the annual appropriations level has more than quadrupled in five years . DT JJ NN IN NNP NNP NN NNS VBZ RB VBN TO VB VBG , CC DT JJ NNS VBP VBZ RBR IN VBN IN CD NNS .
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The $ 196.7 million provided for fiscal 1990 anticipates the purchase of a Lockheed P-3 surveillance aircraft and five Cessna Citation II jets . DT $ CD CD VBN IN JJ CD VBZ DT NN IN DT NNP NN NN NN CC CD NNP NNP NNP NNS .
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Despite administration reservations , the plan has had the quiet backing of customs officials as well as influential lawmakers from Cessna 's home state , Kansas . IN NN NNS , DT NN VBZ VBN DT JJ NN IN NNS NNS RB RB IN JJ NNS IN NNP POS NN NN , NNP .
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Among legislative provisions attached to the bill is a ban on any Treasury Department expenditure for enforcement of a 1986 tax provision intended to counter discrimination in employee-benefit plans . IN JJ NNS VBN TO DT NN VBZ DT NN IN DT NNP NNP NN IN NN IN DT CD NN NN VBN TO VB NN IN JJ NNS .
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Small-business interests have lobbied against the so-called Section 89 tax rules . NN NNS VBP VBN IN DT JJ NN CD NN NNS .
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Repeal is considered likely now , but the Treasury Department bill has been used as a vehicle to raise the profile of the issue and block any action in the interim . NN VBZ VBN JJ RB , CC DT NNP NNP NN VBZ VBN VBN IN DT NN TO VB DT NN IN DT NN CC VB DT NN IN DT NN .
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Less noticed is a bit of legislative legerdemain by Houston Republicans on behalf of HEI Corp. of Texas to retroactively `` move '' a Missouri hospital from one county to the next to justify higher Medicare reimbursements . RBR VBD VBZ DT NN IN JJ NN IN NNP NNPS IN NN IN NNP NNP IN NNP TO RB `` NN '' DT NNP NN IN CD NN TO DT JJ TO VB JJR NNP NNS .
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The provision seeks to wipe out an estimated $ 1.4 million in claims made by the Health Care Finance Administration against HEI , which owned the hospital in Sullivan , Mo. , during most of the four-year period -- 1983-1987 -- covered in the amendment . DT NN VBZ TO VB RP DT VBN $ CD CD IN NNS VBN IN DT NNP NNP NNP NNP IN NNP , WDT VBD DT NN IN NNP , NNP , IN RBS IN DT JJ NN : CD : VBN IN DT NN .
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In a separate development , a private meeting is scheduled this morning between House Appropriations Committee Chairman Jamie Whitten -LRB- D. , Miss . -RRB- and Sen. Dale Bumpers -LRB- D. , Ark . -RRB- in an effort to end a dispute which for two weeks has delayed action on an estimated $ 44 billion agriculture bill . IN DT JJ NN , DT JJ NN VBZ VBN DT NN IN NNP NNP NNP NNP NNP NNP ( NNP , NNP . ) CC NNP NNP NNP ( NNP , NNP . ) IN DT NN TO VB DT NN WDT IN CD NNS VBZ VBN NN IN DT VBN $ CD CD NN NN .
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A House-Senate conference reached agreement Oct. 5 on virtually all major provisions of the bill , but final settlement has been stalled because of differences between the two men over the fate of a modest Arkansas-based program to provide technical information to farmers seeking to reduce their dependence on chemical fertilizers and pesticides . DT NNP NN VBD NN NNP NN IN RB DT JJ NNS IN DT NN , CC JJ NN VBZ VBN VBN IN IN NNS IN DT CD NNS IN DT NN IN DT JJ JJ NN TO VB JJ NN TO NNS VBG TO VB PRP$ NN IN NN NNS CC NNS .
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The program 's nonprofit sponsors received $ 900,000 in fiscal 1989 through an Extension Service grant , but Mr. Whitten has been adamant in insisting that the program be cut in 1990 . DT NN POS JJ NNS VBD $ CD IN JJ CD IN DT NNP NNP NN , CC NNP NNP VBZ VBN JJ IN VBG IN DT NN VB VBN IN CD .
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The 79-year-old Mississippian takes a more orthodox , entrenched view of agriculture policy than those in the movement to reduce chemical use , but as a master of pork-barrel politics , he is believed to be annoyed as well that the project moved to Arkansas from a Tennessee center near Memphis and the northern Mississippi border . DT NNP NNP VBZ DT RBR JJ , VBN NN IN NN NN IN DT NN DT NN TO VB NN NN , CC IN DT NN IN JJ NNS , PRP VBZ VBN TO VB VBN IN RB IN DT NN VBD TO NNP IN DT NNP NN IN NNP CC DT JJ NNP NN .
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Michael F. Klatman , director of corporate public relations at Data General Corp. , was named to the new position of vice president , corporate communications , of this maker of data storage equipment . NNP NNP NNP , NN IN JJ JJ NNS IN NNP NNP NNP , VBD VBN TO DT JJ NN IN NN NN , JJ NNS , IN DT NN IN NNS NN NN .
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B.A.T Industries PLC may delay aspects of its defensive restructuring plan -- including the sale of its Saks Fifth Avenue and Marshall Field units -- in the wake of the current upheaval in financial markets , company officials said . NNP NNP NNP MD VB NNS IN PRP$ JJ NN NN : VBG DT NN IN PRP$ NNP NNP NNP CC NNP NNP NNS : IN DT NN IN DT JJ NN IN JJ NNS , NN NNS VBD .
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The British conglomerate , planning its own defensive restructuring to fight off a # 13.35 billion -LRB- $ 21.03 billion -RRB- takeover bid by Anglo-French financier Sir James Goldsmith , intends to press ahead with an extraordinary shareholder vote today to clear the way for its value-boosting measures . DT JJ NN , VBG PRP$ JJ JJ NN TO VB IN DT # CD CD ( $ CD CD ) NN NN IN JJ NN NNP NNP NNP , VBZ TO VB RB IN DT JJ NN NN NN TO VB DT NN IN PRP$ JJ NNS .
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If anything , the gyrations in world stock markets -- and in B.A.T 's share price -- since last Friday 's sharp Wall Street sell-off have increased the likelihood of shareholder approval for the restructuring , analysts and several big institutional holders said . IN NN , DT NNS IN NN NN NNS : CC IN NNP POS NN NN : IN JJ NNP POS JJ NNP NNP NN VBP VBN DT NN IN NN NN IN DT NN , NNS CC JJ JJ JJ NNS VBD .
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`` Thank God we have some deal on the table , '' said Stewart Gilchrist , a director at Scottish Amicable Investment Managers , which intends to vote its roughly 1 % stake in favor of the restructuring . `` VB NNP PRP VBP DT NN IN DT NN , '' VBD NNP NNP , DT NN IN NNP NNP NNP NNS , WDT VBZ TO VB PRP$ RB CD NN NN IN NN IN DT NN .
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Investors in B.A.T have been on a roller coaster . NNS IN NNP VBP VBN IN DT NN NN .
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B.A.T has been London 's best-performing blue chip over the past six months , up 40 % against a 4 % rise in the Financial Times 100-Share Index . NNP VBZ VBN NNP POS JJ JJ NN IN DT JJ CD NNS , IN CD NN IN DT CD NN NN IN DT NNP NNP NNP NNP .
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But this week , B.A.T has been hit harder than other big U.K. stocks -- first by the market gyrations , then by Tuesday 's San Francisco earthquake , which could leave B.A.T 's Farmers Group Inc. insurance unit facing big claims . CC DT NN , NNP VBZ VBN VBN JJR IN JJ JJ NNP NNS : JJ IN DT NN NNS , RB IN NNP POS NNP NNP NN , WDT MD VB NNP POS NNP NNP NNP NN NN VBG JJ NNS .
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B.A.T rose five pence -LRB- eight cents -RRB- to 756 pence -LRB- $ 11.91 -RRB- in London yesterday as a late market rally erased a 28-pence fall earlier in the day . NNP VBD CD NN ( CD NNS ) TO CD NN ( $ CD ) IN NNP NN IN DT JJ NN NN VBD DT JJ NN RBR IN DT NN .
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To fight off predators , B.A.T plans to spin off about $ 6 billion in assets , largely by selling such U.S. retailing units as Marshall Field and Saks and by floating its big paper and U.K. retailing business via share issues to existing holders . TO VB IN NNS , NNP VBZ TO VB IN RB $ CD CD IN NNS , RB IN VBG JJ NNP NN NNS IN NNP NNP CC NNP CC IN VBG PRP$ JJ NN CC NNP NN NN IN NN NNS TO VBG NNS .
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Proceeds will help pay for a planned buy-back of 10 % of its shares and a 50 % dividend increase . NNS MD VB VB IN DT VBN NN IN CD NN IN PRP$ NNS CC DT CD NN NN NN .
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`` I think the restructuring will get the required support , '' said Michael Pacitti , an analyst at London stockbroker UBS Phillips & Drew . `` PRP VBP DT NN MD VB DT VBN NN , '' VBD NNP NNP , DT NN IN NNP NN NNP NNP CC NNP .
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`` The shareholders effectively will support the share price by clearing the share buy-back . '' `` DT NNS RB MD VB DT NN NN IN VBG DT NN NN . ''
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But B.A.T 's restructuring , which was never going to happen quickly , now will take longer because of the market upheaval . CC NNP POS NN , WDT VBD RB VBG TO VB RB , RB MD VB RB IN IN DT NN NN .
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Company officials , holders and analysts who previously expected the disposals to be substantially complete by the end of next year 's first half now say the market gyrations could delay the actions well into the second half . NN NNS , NNS CC NNS WP RB VBN DT NNS TO VB RB JJ IN DT NN IN JJ NN POS JJ NN RB VBP DT NN NNS MD VB DT NNS RB IN DT JJ NN .
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`` We are n't forced sellers . `` PRP VBP RB VBN NNS .
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We do n't have an absolute deadline and if market conditions are truly awful we might decide it is not the right time , '' to take particular steps , said Michael Prideaux , a B.A.T spokesman . PRP VBP RB VB DT JJ NN CC IN NN NNS VBP RB JJ PRP MD VB PRP VBZ RB DT JJ NN , '' TO VB JJ NNS , VBD NNP NNP , DT NNP NN .
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Even if B.A.T receives approval for the restructuring , the company will remain in play , say shareholders and analysts , though the situation may unfold over the next 12 months , rather than six . RB IN NNP VBZ NN IN DT NN , DT NN MD VB IN NN , VBP NNS CC NNS , IN DT NN MD VB IN DT JJ CD NNS , RB IN CD .
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The new B.A.T will be a smaller tobacco and financial-services hybrid whose price-earnings ratio may more closely reflect the lower-growth tobacco business than the higher-multiple financial-services business , these holders believe . DT JJ NNP MD VB DT JJR NN CC NNS JJ WP$ JJ NN MD RBR RB VB DT JJ NN NN IN DT JJ NNS NN , DT NNS VBP .
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Thus B.A.T 's restructuring may only make the company a more manageable target for other corporate predators -- possibly such acquisitive bidders as Hanson PLC . RB NNP POS NN MD RB VB DT NN DT RBR JJ NN IN JJ JJ NNS : RB JJ JJ NNS IN NNP NNP .
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`` The last few days will surely slow down the pace of events , '' says Scottish Amicable 's Mr. Gilchrist . `` DT JJ JJ NNS MD RB JJ RP DT NN IN NNS , '' VBZ NNP NNP POS NNP NNP .
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`` But I would n't write off '' Sir James or other potential bidders . `` CC PRP MD RB VB IN '' NNP NNP CC JJ JJ NNS .
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Among possible delays , the sales of Saks and Marshall Field -- which were expected to be on the block soon after the crucial Christmas season -- may slide into the second quarter or second half . IN JJ NNS , DT NNS IN NNP CC NNP NNP : WDT VBD VBN TO VB IN DT NN RB IN DT JJ NNP NN : MD VB IN DT JJ NN CC JJ NN .
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Analysts estimate that sales of the two businesses could raise roughly $ 2 billion . NNS VBP IN NNS IN DT CD NNS MD VB RB $ CD CD .
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B.A.T is n't predicting a postponement because the units `` are quality businesses and we are encouraged by the breadth of inquiries , '' said Mr. Prideaux . NNP VBZ RB VBG DT NN IN DT NNS `` VBP NN NNS CC PRP VBP VBN IN DT NN IN NNS , '' VBD NNP NNP .
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But the delay could happen if B.A.T does n't get adequate bids , he said . CC DT NN MD VB IN NNP VBZ RB VB JJ NNS , PRP VBD .
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People familiar with B.A.T say possible acquirers for the units include managers from both retailing chains , and General Cinema Corp. , which is interested in bidding for Saks . NNS JJ IN NNP VBP JJ NNS IN DT NNS VBP NNS IN DT NN NNS , CC NNP NNP NNP , WDT VBZ JJ IN NN IN NNP .
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Other potential bidders for parts of B.A.T 's U.S. retail unit include Dillard Department Stores Inc. , May Department Stores Co. and Limited Inc . JJ JJ NNS IN NNS IN NNP POS NNP JJ NN VBP NNP NNP NNP NNP , NNP NNP NNP NNP CC NNP NNP .
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B.A.T has declined to identify the potential bidders . NNP VBZ VBN TO VB DT JJ NNS .
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Though Sir James has said he intends to mount a new bid for B.A.T once approval from U.S. insurance regulators is received , jitters over prospects for junk-bond financing and U.S. leverage buy-outs are making investors more skeptical about Sir James 's prospects . IN NNP NNP VBZ VBD PRP VBZ TO VB DT JJ NN IN NNP RB NN IN NNP NN NNS VBZ VBN , NNS IN NNS IN NN NN CC NNP NN NNS VBP VBG NNS RBR JJ IN NNP NNP POS NNS .
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His initial offer indicated he needed to raise as much as 80 % of the takeover financing through the debt markets . PRP$ JJ NN VBD PRP VBD TO VB RB JJ IN CD NN IN DT NN NN IN DT NN NNS .
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Market uncertainty also clouds the outlook for B.A.T 's attracting a premium price for its U.S. retailing properties . NN NN RB VBZ DT NN IN NNP POS VBG DT NN NN IN PRP$ NNP NN NNS .
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Finally , Tuesday 's California earthquake initially knocked 3.7 % off B.A.T 's share price in London yesterday because of fears of the potential claims to Los Angeles-based Farmers , which has a substantial portion of its property and casualty exposure in California . RB , NNP POS NNP NN RB VBD CD NN IN NNP POS NN NN IN NNP NN IN IN NNS IN DT JJ NNS TO NNP JJ NNP , WDT VBZ DT JJ NN IN PRP$ NN CC NN NN IN NNP .
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On Farmers , Mr. Prideaux said it is too early to quantify the level of potential claims . IN NNP , NNP NNP VBD PRP VBZ RB JJ TO VB DT NN IN JJ NNS .
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He added B.A.T `` has no expectation of a material impact on Farmers . PRP VBD NNP `` VBZ DT NN IN DT NN NN IN NNP .
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Bridge and highway collapses will disrupt truck and auto transportation in the San Francisco Bay area for months to come . NNP CC NN VBZ MD VB NN CC NN NN IN DT NNP NNP NNP NN IN NNS TO VB .
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But rail , air and ocean-shipping links to the area escaped Tuesday 's earthquake with only minor damage , and many are expected to be operating normally today , government and corporate transport officials said . CC NN , NN CC NN NNS TO DT NN VBD NNP POS NN IN RB JJ NN , CC JJ VBP VBN TO VB VBG RB NN , NN CC JJ NN NNS VBD .
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Air traffic at San Francisco International Airport was running about 50 % of normal yesterday afternoon , but airport officals said they expect a return to full operations by Saturday . NN NN IN NNP NNP NNP NNP VBD VBG IN CD NN IN JJ NN NN , CC NN NNS VBD PRP VBP DT NN TO JJ NNS IN NNP .
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The major gateway to Asia and one of the nation 's 10 busiest airports was closed to all but emergency traffic from the time the quake hit Tuesday afternoon , until 6 a.m. PDT yesterday when controllers returned to the tower . DT JJ NN TO NNP CC CD IN DT NN POS CD JJS NNS VBD VBN TO DT CC NN NN IN DT NN DT NN VBD NNP NN , IN CD NN NNP NN WRB NNS VBD TO DT NN .
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Getting to and from the airport in coming weeks may be the problem , however . VBG TO CC IN DT NN IN VBG NNS MD VB DT NN , RB .
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`` People 's ability to drive throughout the bay area is greatly restricted , '' said a spokesman for the American Automobile Association . `` NNS POS NN TO VB IN DT NN NN VBZ RB VBN , '' VBD DT NN IN DT NNP NNP NNP .
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Tom Schumacher , executive vice president and general manager of the California Trucking Association in Sacremento , said his organization urged trucking firms to halt all deliveries into the Bay area yesterday , except for emergency-medical supplies . NNP NNP , JJ NN NN CC JJ NN IN DT NNP NNP NNP IN NNP , VBD PRP$ NN VBD NN NNS TO VB DT NNS IN DT NNP NN NN , IN IN JJ NNS .
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`` Some foodstuff shipments will probably resume Thursday , '' he said . `` DT NN NNS MD RB VB NNP , '' PRP VBD .
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`` Right now most of the roads into the Bay area are closed , but the list of closings changes about every 20 minutes . `` RB RB RBS IN DT NNS IN DT NNP NN VBP VBN , CC DT NN IN NNS NNS IN DT CD NNS .
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This -LCB- Wednesday -RCB- morning the San Mateo bridge was open and now we are informed that it is closed , '' Mr. Schumacher said . DT ( NNP ) NN DT NNP NNP NN VBD JJ CC RB PRP VBP VBN IN PRP VBZ VBN , '' NNP NNP VBD .
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United Parcel Service , Greenwich , Conn. , said its operations in the San Francisco area have been reduced to 40 % of normal . NNP NNP NNP , NNP , NNP , VBD PRP$ NNS IN DT NNP NNP NN VBP VBN VBN TO CD NN IN JJ .
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A UPS spokesman said that although none of the company 's terminals , trucks or airplanes were damaged in the quake , road shutdowns and power failures have impeded its pickup and delivery of packages . DT NNP NN VBD IN IN NN IN DT NN POS NNS , NNS CC NNS VBD VBN IN DT NN , NN NNS CC NN NNS VBP VBN PRP$ NN CC NN IN NNS .
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The spokesman noted four-hour to five-hour traffic delays on the San Mateo bridge , for example . DT NN VBD JJ TO JJ NN NNS IN DT NNP NNP NN , IN NN .
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In addition , power failures prevented its package-sorting facilities from operating , causing delays . IN NN , NN NNS VBD PRP$ NN NNS IN VBG , VBG NNS .
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But freight railroads reported that damage to their facilities was relatively minor , with Santa Fe Pacific Corp. 's rail unit the least affected by the quake . CC NN NNS VBD DT NN TO PRP$ NNS VBD RB JJ , IN NNP NNP NNP NNP POS NN NN DT RBS VBN IN DT NN .
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Santa Fe stopped freight trains Tuesday night while its officials inspected track but resumed service at 10:45 p.m. when they found no damage . NNP NNP VBD NN NNS NNP NN IN PRP$ NNS VBD NN CC VBD NN IN CD NN WRB PRP VBD DT NN .
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Union Pacific Corp. 's rail unit said that except for damage to shipping containers in its Oakland yard , its track , bridges and structures were unharmed . NNP NNP NNP POS NN NN VBD IN IN IN NN TO VBG NNS IN PRP$ NNP NN , PRP$ NN , NNS CC NNS VBD JJ .
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That railroad is operating trains but with delays caused by employees unable to get to work . DT NN VBZ VBG NNS CC IN NNS VBN IN NNS JJ TO VB TO VB .
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Southern Pacific Transportation Co. , the hardest hit of the three railroads in the Bay area , said service on its north-south coastline , which is used by an Amtrak train between Los Angeles and Seattle , was suspended temporarily because of kinked rails near the epicenter of the quake . NNP NNP NNP NNP , DT JJS VBD IN DT CD NNS IN DT NNP NN , VBD NN IN PRP$ JJ NN , WDT VBZ VBN IN DT NNP NN IN NNP NNP CC NNP , VBD VBN RB IN IN JJ NNS IN DT NN IN DT NN .
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But service on the line is expected to resume by noon today . CC NN IN DT NN VBZ VBN TO VB IN NN NN .
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`` We had no serious damage on the railroad , '' said a Southern Pacific spokesman . `` PRP VBD DT JJ NN IN DT NN , '' VBD DT NNP NNP NN .
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`` We have no problem to our freight service at all expect for the fact businesses are shut down . '' `` PRP VBP DT NN TO PRP$ NN NN IN DT VBP IN DT NN NNS VBP VBN RB . ''
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Amtrak said it suspended train service into its Oakland station , which sustained `` heavy structural damage '' during the quake . NNP VBD PRP VBD NN NN IN PRP$ NNP NN , WDT VBD `` JJ JJ NN '' IN DT NN .
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The passenger railroad said it terminated some runs in Sacramento , relying on buses to ferry passengers to the Bay area . DT NN NN VBD PRP VBD DT VBZ IN NNP , VBG IN NNS TO VB NNS TO DT NNP NN .
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Amtrak said it planned to resume some train operations to Oakland late yesterday . NNP VBD PRP VBD TO VB DT NN NNS TO NNP JJ NN .
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Rail-transit operations suffered little damage , according to Albert Engelken , deputy executive director of the American Public Transit Association in Washington . NN NNS VBD JJ NN , VBG TO NNP NNP , NN JJ NN IN DT NNP NNP NNP NNP IN NNP .
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The Bay Area Rapid Transit `` withstood the earthquake perfectly , '' said Mr. Engelken , adding that the rail system was running a full fleet of 45 trains during the day to provide an alternative for highway travelers . DT NNP NNP NNP NNP `` VBD DT NN RB , '' VBD NNP NNP , VBG IN DT NN NN VBD VBG DT JJ NN IN CD NNS IN DT NN TO VB DT NN IN NN NNS .
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`` The highway system is screwed up '' by the earthquake , Mr. Engelken said . `` DT NN NN VBZ VBN IN '' IN DT NN , NNP NNP VBD .
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`` The transit system is how people are going to be getting around . '' `` DT NN NN VBZ WRB NNS VBP VBG TO VB VBG IN . ''
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He added that San Francisco 's trolley cars and trolley buses were also running at full service levels . PRP VBD IN NNP NNP POS NN NNS CC NN NNS VBD RB VBG IN JJ NN NNS .
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Although air-traffic delays in San Francisco were significant yesterday , they did n't appear to spread to other airports . IN NN NNS IN NNP NNP VBD JJ NN , PRP VBD RB VB TO VB TO JJ NNS .
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The earthquake shattered windows at San Francisco International 's air-traffic control tower and rained pieces of the ceiling down on controllers , three of whom suffered minor injuries . DT NN VBD NNS IN NNP NNP NNP POS NN NN NN CC VBD NNS IN DT NN RB IN NNS , CD IN WP VBD JJ NNS .
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Terminals at San Francisco International also were damaged , but the tower itself was intact . NNS IN NNP NNP NNP RB VBD VBN , CC DT NN PRP VBD JJ .
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Tuesday night , thousands were diverted to other airports and had to wait a day to resume travel . NNP NN , NNS VBD VBN TO JJ NNS CC VBD TO VB DT NN TO VB NN .
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Runways at San Francisco were n't damaged , but traffic was being limited yesterday to 27 arrivals and 27 departures an hour -- down from 33 to 45 an hour normally -- mainly because the noise level in the control tower was overwhelming without the windows , an FAA spokeswoman said . NNS IN NNP NNP VBD RB VBN , CC NN VBD VBG JJ NN TO CD NNS CC CD NNS DT NN : RB IN CD TO CD DT NN RB : RB IN DT NN NN IN DT NN NN VBD JJ IN DT NNS , DT NNP NN VBD .
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While the airport was closed , flights were diverted to airports in Sacramento and Stockton , Calif. ; Reno and Las Vegas , Nev. ; and Los Angeles . IN DT NN VBD VBN , NNS VBD VBN TO NNS IN NNP CC NNP , NNP : NNP CC NNP NNP , NNP : CC NNP NNP .
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United Airlines , the largest carrier at San Francisco , was operating only 50 % of its scheduled service in and out of the area because of damage to its terminal , which in turn was causing delays for travelers headed to the Bay area . NNP NNPS , DT JJS NN IN NNP NNP , VBD VBG RB CD NN IN PRP$ VBN NN IN CC IN IN DT NN IN IN NN TO PRP$ NN , WDT IN NN VBD VBG NNS IN NNS VBN TO DT NNP NN .
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A United spokesman said 14 of its 21 gates were unusable , mainly because of water damage caused when a sprinkler system was triggered by the tremors . DT NNP NN VBD CD IN PRP$ CD NNS VBD JJ , RB IN IN NN NN VBN WRB DT NN NN VBD VBN IN DT NNS .
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The United spokesman said none of its people were injured at the airport ; in fact , as the airport was being evacuated Tuesday night , two babies were born . DT NNP NN VBD NN IN PRP$ NNS VBD VBN IN DT NN : IN NN , IN DT NN VBD VBG VBN NNP NN , CD NNS VBD VBN .
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Yesterday , the United ticket counter was active , with people trying to get flights out , but the airline said demand for seats into the city also was active , with people trying to get there to help family and friends . NN , DT NNP NN NN VBD JJ , IN NNS VBG TO VB NNS IN , CC DT NN VBD NN IN NNS IN DT NN RB VBD JJ , IN NNS VBG TO VB EX TO VB NN CC NNS .
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The airports in San Jose and Oakland were both fully operational by noon yesterday , the Federal Aviation Administration said . DT NNS IN NNP NNP CC NNP VBD DT RB JJ IN NN NN , DT NNP NNP NNP VBD .
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In terms of diversions , Denver 's Stapleton International may have experienced the most far-flung : A United flight from Japan was rerouted there . IN NNS IN NNS , NNP POS NNP NNP MD VB VBN DT RBS JJ : DT NNP NN IN NNP VBD VBN RB .
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`` I think that 's the first nonstop commercial passenger flight from Japan to land here , '' an airport spokesman said . `` PRP VBP DT VBZ DT JJ JJ JJ NN NN IN NNP TO VB RB , '' DT NN NN VBD .
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A Japan Air Lines spokesman said its flights into and out of San Francisco were n't affected , but getting information about its operations was difficult . DT NNP NNP NNPS NN VBD PRP$ NNS IN CC IN IN NNP NNP VBD RB VBN , CC VBG NN IN PRP$ NNS VBD JJ .
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Its telecommunications headquarters in Burlingame , Calif. , had been knocked out since the quake . PRP$ NNS NN IN NNP , NNP , VBD VBN VBN IN IN DT NN .
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`` We 're in the dark , '' he said . `` PRP VBP IN DT NN , '' PRP VBD .
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Whitbread & Co. put its spirits division up for sale , triggering a scramble among global groups for the British company 's brands . NNP CC NNP VB PRP$ NNS NN IN IN NN , VBG DT NN IN JJ NNS IN DT JJ NN POS NNS .
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Whitbread already has been approached by `` about half a dozen '' companies interested in buying all or part of the spirits business , a spokesman said . NNP RB VBZ VBN VBN IN `` IN PDT DT NN '' NNS JJ IN VBG DT CC NN IN DT NNS NN , DT NN VBD .
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Analysts expect the spirits operations and some California vineyards that also are being sold to fetch about # 500 million -LRB- $ 788.8 million -RRB- . NNS VBP DT NNS NNS CC DT NNP NNS IN RB VBP VBG VBN TO VB IN # CD CD ( $ CD CD ) .
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Among the brands for sale are Beefeater gin , the No. 2 imported gin in the U.S. , and Laphroaig single-malt whiskey . IN DT NNS IN NN VBP NNP NN , DT NN CD VBN NN IN DT NNP , CC NNP JJ NN .
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Also for sale are Buckingham Wile Co. , which distributes Cutty Sark blended whiskey in the U.S. , and Whitbread 's Atlas Peak Vineyards in California 's Napa Valley . RB IN NN VBP NNP NNP NNP , WDT VBZ NNP NNP JJ NN IN DT NNP , CC NNP POS NNP NNP NNS IN NNP POS NNP NNP .
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Beefeater alone is worth as much as # 300 million , analysts said . NNP RB VBZ JJ RB JJ IN # CD CD , NNS VBD .
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Whitbread bought the Beefeater distillery two years ago for # 174.5 million . NNP VBD DT NNP NN CD NNS RB IN # CD CD .
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That purchase represented an attempt by Whitbread , a venerable British brewer , to become a major player in the global liquor business . DT NN VBD DT NN IN NNP , DT JJ JJ NN , TO VB DT JJ NN IN DT JJ NN NN .
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But Whitbread has been squeezed by giant rivals amid widespread consolidation in the industry . CC NNP VBZ VBN VBN IN NN NNS IN JJ NN IN DT NN .
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Now , it wants to concentrate on beer and its newer hotel and restaurant operations . RB , PRP VBZ TO VB IN NN CC PRP$ JJR NN CC NN NNS .
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For rival liquor companies , the Whitbread auction is a rare opportunity to acquire valuable brands . IN JJ NN NNS , DT NNP NN VBZ DT JJ NN TO VB JJ NNS .
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`` It 's not very often something like this comes up , '' said Ron Littleboy , a liquor company analyst at Nomura Research Institute in London . `` PRP VBZ RB RB RB NN IN DT VBZ IN , '' VBD NNP NNP , DT NN NN NN IN NNP NNP NNP IN NNP .
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`` The division will be sold off quite rapidly , '' predicted Neill Junor , an analyst at London brokers County NatWest WoodMac . `` DT NN MD VB VBN IN RB RB , '' VBD NNP NNP , DT NN IN NNP NNS NNP NNP NNP .
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Among possible buyers , Grand Metropolitan PLC might find Beefeater a useful addition to its portfolio . IN JJ NNS , NNP NNP NNP MD VB NNP DT JJ NN TO PRP$ NN .
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Grand Met owns Bombay gin , the No. 3 imported gin in the U.S. ; rival Guinness PLC has the No. 1 imported brand , Tanqueray . NNP NNP VBZ NNP NN , DT NN CD VBN NN IN DT NNP : JJ NNP NNP VBZ DT NN CD VBN NN , NNP .
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The Whitbread spirits auction `` is an extremely interesting development ... and naturally we 'll be considering it carefully , '' a Grand Met spokesman said . DT NNP NNS NN `` VBZ DT RB JJ NN : CC RB PRP MD VB VBG PRP RB , '' DT NNP NNP NN VBD .
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Guinness , which owns several leading whiskey brands plus Gordon 's gin , the world 's No. 1 gin , is considered less likely to bid for the Whitbread spirits . NNP , WDT VBZ JJ NN NN NNS CC NNP POS NN , DT NN POS NN CD NN , VBZ VBN RBR JJ TO VB IN DT NNP NNS .
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A Guinness spokesman declined to comment . DT NNP NN VBD TO VB .
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Two other global liquor giants , Canada 's Seagram Co. and Britain 's Allied-Lyons PLC , also are possible buyers . CD JJ JJ NN NNS , NNP POS NNP NNP CC NNP POS NNP NNP , RB VBP JJ NNS .
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Seagram 's gin is the world 's No. 2 gin brand , but the company does n't own any of the major gin brands imported in the U.S. . NNP POS NN VBZ DT NN POS NN CD NN NN , CC DT NN VBZ RB VB DT IN DT JJ NN NNS VBN IN DT NNP .
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Allied-Lyons , while powerful in whiskey , does n't own any major white-spirit brands . NNP , IN JJ IN NN , VBZ RB VB DT JJ NN NNS .
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`` We will certainly have to take a look at '' the Whitbread spirits business , an Allied-Lyons spokesman said . `` PRP MD RB VB TO VB DT NN IN '' DT NNP NNS NN , DT NNP NN VBD .
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`` We would certainly like to have a major white-spirits brand in our portfolio . '' `` PRP MD RB VB TO VB DT JJ JJ NN IN PRP$ NN . ''
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A Seagram spokesman in New York would n't comment . DT NNP NN IN NNP NNP MD RB VB .
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Smaller liquor companies , such as Brown-Forman Corp. and American Brands Inc. of the U.S. , also are likely to be interested . JJR NN NNS , JJ IN NNP NNP CC NNP NNP NNP IN DT NNP , RB VBP JJ TO VB JJ .
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Such companies `` are increasingly being left behind '' in the global liquor business , says Nomura 's Mr. Littleboy . JJ NNS `` VBP RB VBG VBN IN '' IN DT JJ NN NN , VBZ NNP POS NNP NNP .
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In New York , a spokesman for American Brands would n't comment . IN NNP NNP , DT NN IN NNP NNP MD RB VB .
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Brown-Forman , a Louisville , Ky. distiller , also declined to comment . NNP , DT NNP , NNP NN , RB VBD TO VB .
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Whitbread 's wine , spirits and soft-drink operations had trading profit of # 35.4 million on sales of # 315.5 million in the year ended Feb. 25 . NNP POS NN , NNS CC NN NNS VBD NN NN IN # CD CD IN NNS IN # CD CD IN DT NN VBN NNP CD .
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The company , which is retaining most of its wine and all of its soft-drink interests , did n't break out results for the businesses it plans to sell . DT NN , WDT VBZ VBG RBS IN PRP$ NN CC DT IN PRP$ NN NNS , VBD RB VB RP NNS IN DT NNS PRP VBZ TO VB .
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But analysts estimate their trading profit at # 30 million . CC NNS VBP PRP$ NN NN IN # CD CD .
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Whitbread had total pretax profit in the year ended Feb. 25 of # 223.2 million , on sales of # 2.26 billion . NNP VBD JJ JJ NN IN DT NN VBN NNP CD IN # CD CD , IN NNS IN # CD CD .
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Whitbread 's spirits auction occurs amid a parallel shakeup in the British beer industry . NNP POS NNS NN VBZ IN DT JJ NN IN DT JJ NN NN .
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Earlier this year , the government announced plans to foster increased competition in the industry . RBR DT NN , DT NN VBD NNS TO VB VBN NN IN DT NN .
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British brewers currently own thousands of pubs , which in turn sell only the breweries ' beer and soft drinks . JJ NNS RB JJ NNS IN NNS , WDT IN NN NN RB DT NNS POS NN CC JJ NNS .
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Under new rules , many of the country 's pubs would become `` free houses , '' selling beers of their choice . IN JJ NNS , NN IN DT NN POS NNS MD VB `` JJ NNS , '' VBG NNS IN PRP$ NN .
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Whitbread now intends to bolster its brewing interests , in an effort to grab a share of sales to free houses . NNP RB VBZ TO VB PRP$ NN NNS , IN DT NN TO VB DT NN IN NNS TO VB NNS .
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The company , which last month paid # 50.7 million for regional British brewer Boddington Group PLC , has about 13 % of the British beer market . DT NN , WDT JJ NN VBN # CD CD IN JJ JJ NN NNP NNP NNP , VBZ IN CD NN IN DT JJ NN NN .
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Whitbread also owns the license to brew and distribute Heineken and Stella Artois beers in Britain . NNP RB VBZ DT NN TO VB CC VB NNP CC NNP NNP NNS IN NNP .
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In addition , Whitbread intends to focus on its newer hotel , liquor store and restaurant businesses in Europe and North America . IN NN , NNP VBZ TO VB IN PRP$ JJR NN , NN NN CC NN NNS IN NNP CC NNP NNP .
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In Britain , those interests include the Beefeater steakhouse chain and joint ownership with PepsiCo Inc. of the country 's Pizza Hut chain . IN NNP , DT NNS VBP DT NNP NN NN CC JJ NN IN NNP NNP IN DT NN POS NNP NNP NN .
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In Canada and the U.S. , Whitbread owns The Keg chain of steak and seafood restaurants . IN NNP CC DT NNP , NNP VBZ DT NNP NN IN NN CC NN NNS .
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Focusing on beer , restaurants and hotels means `` we can concentrate our skills and resources more effectively , '' Peter Jarvis , Whitbread 's managing director , said in a statement . VBG IN NN , NNS CC NNS VBZ `` PRP MD VB PRP$ NNS CC NNS RBR RB , '' NNP NNP , NNP POS VBG NN , VBD IN DT NN .
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The spirits business `` would require substantial additional investment to enable it to compete effectively in the first division of global players . '' DT NNS NN `` MD VB JJ JJ NN TO VB PRP TO VB RB IN DT JJ NN IN JJ NNS . ''
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Whitbread also announced that Mr. Jarvis , who is 48 , will become the company 's chief executive March 1 . NNP RB VBD IN NNP NNP , WP VBZ CD , MD VB DT NN POS JJ NN NNP CD .
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At that time Sam Whitbread , the company 's chairman and a descendant of its 18th-century founder , will retire from executive duties . IN DT NN NNP NNP , DT NN POS NN CC DT NN IN PRP$ JJ NN , MD VB IN NN NNS .
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He will retain the honorary title of non-executive chairman . PRP MD VB DT JJ NN IN JJ NN .
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The Treasury plans to raise $ 700 million in new cash with the sale Tuesday of about $ 10 billion in two-year notes to redeem $ 9.29 billion in maturing notes . DT NNP VBZ TO VB $ CD CD IN JJ NN IN DT NN NNP IN RB $ CD CD IN JJ NNS TO VB $ CD CD IN VBG NNS .
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The offering will be dated Oct. 31 and mature Oct. 31 , DT NN MD VB VBN NNP CD CC NNP NNP CD ,
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Tenders for the notes , available in minimum $ 5,000 denominations , must be received by 1 p.m. EDT Tuesday at the Treasury or at Federal Reserve banks or branches . NNS IN DT NNS , JJ IN JJ $ CD NNS , MD VB VBN IN CD NN NNP NNP IN DT NNP CC IN NNP NNP NNS CC NNS .
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NEWHALL LAND & FARMING Co. , Valencia , Calif. , announced a 2-for-1 split in the real estate limited partnership 's units and increased its regular quarterly cash distribution 33 % , to 40 cents a unit . NNP NNP CC NNP NNP , NNP , NNP , VBD DT JJ NN IN DT JJ NN JJ NN POS NNS CC VBN PRP$ JJ JJ NN NN CD NN , TO CD NNS DT NN .
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The real estate limited partnership also said it will pay a special year-end cash distribution of 10 cents a unit . DT JJ NN JJ NN RB VBD PRP MD VB DT JJ NN NN NN IN CD NNS DT NN .
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Both distributions are payable Dec. 4 to limited partners of record Nov. 3 . DT NNS VBP JJ NNP CD TO JJ NNS IN NN NNP CD .
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Mellon Bank Corp. said directors authorized the buy-back of as many as 250,000 common shares . NNP NNP NNP VBD NNS VBD DT NN IN RB JJ IN CD JJ NNS .
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The bank holding company said stock repurchased will be used to meet requirements for the company 's benefit plans . DT NN VBG NN VBD NN VBN MD VB VBN TO VB NNS IN DT NN POS NN NNS .
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Mellon has 36.6 million shares outstanding . NNP VBZ CD CD NNS JJ .
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Champion International Corp. 's third-quarter profit dropped 17 % , reflecting price declines for certain paper products , operating problems at certain mills , and other factors . NNP NNP NNP POS JJ NN VBD CD NN , VBG NN NNS IN JJ NN NNS , VBG NNS IN JJ NNS , CC JJ NNS .
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The paper producer reported that net income fell to $ 102.1 million , or $ 1.09 a share , from $ 122.4 million , or $ 1.29 a share , in the year-earlier period . DT NN NN VBD IN JJ NN VBD TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN , IN DT JJ NN .
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Sales rose 2.6 % to $ 1.32 billion from $ 1.29 billion . NNS VBD CD NN TO $ CD CD IN $ CD CD .
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In New York Stock Exchange composite trading , Champion 's shares rose 25 cents to $ 32.125 . IN NNP NNP NNP NNP JJ NN , NNP POS NNS VBD CD NNS TO $ CD .
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Digital Equipment Corp. is planning a big coming-out party on Tuesday for its first line of mainframe computers . NNP NNP NNP VBZ VBG DT JJ JJ NN IN NNP IN PRP$ JJ NN IN NN NNS .
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But an uninvited guest is expected to try to crash the party . CC DT JJ NN VBZ VBN TO VB TO VB DT NN .
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On the morning of the long-planned announcement , International Business Machines Corp. is to introduce its own new mainframe . IN DT NN IN DT JJ NN , NNP NNP NNP NNP VBZ TO VB PRP$ JJ JJ NN .
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`` Their attitude is , ` You want to talk mainframes , we 'll talk mainframes , ' '' says one computer industry executive . `` PRP$ NN VBZ , `` PRP VBP TO VB NNS , PRP MD VB NNS , '' '' VBZ CD NN NN NN .
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`` They 're deliberately trying to steal our thunder , '' a Digital executive complains . `` PRP VBP RB VBG TO VB PRP$ NN , '' DT NNP NN VBZ .
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`` Maybe we should take it as a compliment . '' `` RB PRP MD VB PRP IN DT NN . ''
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Digital 's target is the $ 40 billion market for mainframe computers , the closet-sized number-crunchers that nearly every big company needs to run its business . NNP POS NN VBZ DT $ CD CD NN IN NN NNS , DT JJ NNS IN RB DT JJ NN VBZ TO VB PRP$ NN .
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IBM , based in Armonk , N.Y. , has dominated the market for decades . NNP , VBN IN NNP , NNP , VBZ VBN DT NN IN NNS .
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That does n't scare Digital , which has grown to be the world 's second-largest computer maker by poaching customers of IBM 's mid-range machines . DT VBZ RB VB NNP , WDT VBZ VBN TO VB DT NN POS JJ NN NN IN VBG NNS IN NNP POS JJ NNS .
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Digital , based in Maynard , Mass. , hopes to stage a repeat performance in mainframes , and it has spent almost $ 1 billion developing the new technology . NNP , VBN IN NNP , NNP , VBZ TO VB DT NN NN IN NNS , CC PRP VBZ VBN RB $ CD CD VBG DT JJ NN .
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A spoiler , nimble Tandem Computers Inc. in Cupertino , Calif. , jumped into the fray earlier this week with an aggressively priced entry . DT NN , JJ NNP NNP NNP IN NNP , NNP , VBD IN DT NN RBR DT NN IN DT RB VBN NN .
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IBM appears more worried about Digital , which has a broad base of customers waiting for the new line , dubbed the VAX 9000 . NNP VBZ RBR VBN IN NNP , WDT VBZ DT JJ NN IN NNS VBG IN DT JJ NN , VBD DT NNP CD .
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`` It 's going to be nuclear war , '' says Thomas Willmott , a consultant with Aberdeen Group Inc . `` PRP VBZ VBG TO VB JJ NN , '' VBZ NNP NNP , DT NN IN NNP NNP NNP .
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The surge in competition is expected to stir new life into the huge mainframe market , where growth has slowed to single digits in recent years . DT NN IN NN VBZ VBN TO VB JJ NN IN DT JJ NN NN , WRB NN VBZ VBN TO VB NNS IN JJ NNS .
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IBM 's traditional mainframe rivals , including Unisys Corp. , Control Data Corp. and NCR Corp. , have struggled recently . NNP POS JJ NN NNS , VBG NNP NNP , NNP NNP NNP CC NNP NNP , VBP VBN RB .
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Digital is promising a new approach . NNP VBZ JJ DT JJ NN .
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Robert M. Glorioso , Digital 's vice president for high performance systems , says Digital 's mainframe is designed not as a central computer around which everything revolves , but as part of a decentralized network weaving together hundreds of workstations , personal computers , printers and other devices . NNP NNP NNP , NNP POS NN NN IN JJ NN NNS , VBZ NNP POS NN VBZ VBN RB IN DT JJ NN IN WDT NN VBZ , CC IN NN IN DT JJ NN VBG RB NNS IN NNS , JJ NNS , NNS CC JJ NNS .
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And unlike IBM 's water-cooled mainframes , it does n't need any plumbing . CC IN NNP POS JJ NNS , PRP VBZ RB VB DT NN .
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The challengers will have a big price advantage . DT NNS MD VB DT JJ NN NN .
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Digital is expected to tag its new line from about $ 1.24 million to $ 4.4 million and up , depending on configuration . NNP VBZ VBN TO VB PRP$ JJ NN IN RB $ CD CD TO $ CD CD CC IN , VBG IN NN .
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That 's about half the price of comparably equipped IBM mainframes . DT VBZ IN PDT DT NN IN RB VBN NNP NNS .
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Tandem 's pricing is just as aggressive . NNP POS NN VBZ RB IN JJ .
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The heightened competition will hit IBM at a difficult time . DT VBN NN MD VB NNP IN DT JJ NN .
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The computer giant 's current mainframe line , which has sold well and has huge profit margins , is starting to show its age . DT NN NN POS JJ NN NN , WDT VBZ VBN RB CC VBZ JJ NN NNS , VBZ VBG TO VB PRP$ NN .
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The new 3090s due next week will boost performance by only about 8 % to 10 % . DT JJ CD JJ JJ NN MD VB NN IN RB IN CD NN TO CD NN .
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And IBM is n't expected to deliver a new generation of mainframes until 1991 . CC NNP VBZ RB VBN TO VB DT JJ NN IN NNS IN CD .
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Still , no one expects IBM 's rivals to deliver a knockout . RB , DT CD VBZ NNP POS NNS TO VB DT NN .
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IBM has a near-monopoly on mainframes , with an estimated 70 % share of the market . NNP VBZ DT NN IN NNS , IN DT VBN CD NN NN IN DT NN .
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IBM is five times the size of Digital -- and 40 times the size of Tandem -- and wields enormous market power . NNP VBZ CD VBZ DT NN IN NNP : CC CD VBZ DT NN IN NNP : CC VBZ JJ NN NN .
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It counts among its customers a majority of the world 's largest corporations , which entrust their most critical business information to IBM computers . PRP VBZ IN PRP$ NNS DT NN IN DT NN POS JJS NNS , WDT VBP PRP$ RBS JJ NN NN TO NNP NNS .
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`` We 're not going to walk in and replace a company 's corporate accounting system if it 's already running on an IBM mainframe , '' concedes Kenneth H. Olsen , Digital 's president . `` PRP VBP RB VBG TO VB IN CC VB DT NN POS JJ NN NN IN PRP VBZ RB VBG IN DT NNP NN , '' VBZ NNP NNP NNP , NNP POS NN .
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He says Digital will target faster-growing market segments such as on-line transaction processing , which includes retail-sales tracking , airline reservations and bank-teller networks . PRP VBZ NNP MD VB JJR NN NNS JJ IN JJ NN NN , WDT VBZ JJ NN , NN NNS CC NN NNS .
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Tandem , which already specializes in on-line transaction processing , is a potent competitor in that market . NNP , WDT RB VBZ IN JJ NN NN , VBZ DT JJ NN IN DT NN .
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A key marketing target for Digital will be the large number of big customers who already own both Digital and IBM systems . DT JJ NN NN IN NNP MD VB DT JJ NN IN JJ NNS WP RB VB DT NNP CC NNP NNS .
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One such company is Bankers Trust Co . CD JJ NN VBZ NNP NNP NNP .
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Stanley Rose , a vice president , technological and strategic planning at Bankers Trust , says that despite Digital 's low prices , `` we are n't about to unplug our IBM mainframes for a DEC machine . NNP NNP , DT NN NN , JJ CC JJ NN IN NNP NNP , VBZ IN IN NNP POS JJ NNS , `` PRP VBP RB IN TO VB PRP$ NNP NNS IN DT NNP NN .
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The software conversion costs would dwarf any savings . '' DT NN NN NNS MD VB DT NNS . ''
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But Mr. Rose is still looking seriously at the 9000 . CC NNP NNP VBZ RB VBG RB IN DT CD .
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Bankers Trust uses Digital 's VAX to run its huge money-transfer and capital markets accounts , juggling hundreds of billions of dollars each day , he says . NNP NNP VBZ NNP POS NNP TO VB PRP$ JJ NN CC NN NNS NNS , VBG NNS IN NNS IN NNS DT NN , PRP VBZ .
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As that system grows , larger computers may be needed . IN DT NN VBZ , JJR NNS MD VB VBN .
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`` In the past , customers had to go to IBM when they outgrew the VAX . `` IN DT NN , NNS VBD TO VB TO NNP WRB PRP VBD DT NNP .
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Now they do n't have to , '' he says . RB PRP VBP RB VB TO , '' PRP VBZ .
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`` That 's going to cost IBM revenue . '' `` DT VBZ VBG TO VB NNP NN . ''
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Analysts say Digital can expect this pent-up demand for the new VAX to fuel strong sales next year . NNS VBP NNP MD VB DT JJ NN IN DT JJ NNP TO VB JJ NNS JJ NN .
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Barry F. Willman , an analyst at Sanford C. Bernstein & Co. , estimates the 9000 could boost sales by more than $ 1 billion in the fiscal year beginning in July . NNP NNP NNP , DT NN IN NNP NNP NNP CC NNP , VBZ DT CD MD VB NNS IN JJR IN $ CD CD IN DT JJ NN VBG IN NNP .
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He bases the estimate on a survey of hundreds of Digital 's largest customers . PRP VBZ DT NN IN DT NN IN NNS IN NNP POS JJS NNS .
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Although Digital will announce a full family of mainframes next week , it is n't expected to begin shipping in volume until next year . IN NNP MD VB DT JJ NN IN NNS JJ NN , PRP VBZ RB VBN TO VB VBG IN NN IN JJ NN .
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The first model available will be the 210 , which is likely to appeal to many technical and scientific buyers interested in the optional super-charger , or vector processor , says Terry Shannon of International Data Corp. , a market research concern . DT JJ NN JJ MD VB DT CD , WDT VBZ JJ TO VB TO VB JJ CC JJ NNS JJ IN DT JJ NN , CC NN NN , VBZ NNP NNP IN NNP NNP NNP , DT NN NN NN .
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Four more models , aimed squarely at IBM 's commercial customers , are expected to begin shipping in late June . CD JJR NNS , VBD RB IN NNP POS JJ NNS , VBP VBN TO VB VBG IN JJ NNP .
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Most analysts do n't expect the new mainframes to begin contributing significantly to revenue before the fiscal first quarter , which begins next July 1 . JJS NNS VBP RB VB DT JJ NNS TO VB VBG RB TO NN IN DT JJ JJ NN , WDT VBZ JJ NNP CD .
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Digital 's new line has been a long time coming . NNP POS JJ NN VBZ VBN DT JJ NN VBG .
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The company has long struggled to deliver a strong mainframe-class product , and made a costly decision in 1988 to halt development of an interim product meant to stem the revenue losses at the high end . DT NN VBZ RB VBN TO VB DT JJ JJ NN , CC VBD DT JJ NN IN CD TO VB NN IN DT JJ NN VBD TO VB DT NN NNS IN DT JJ NN .
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Digital 's failure to deliver a true mainframe-class machine before now may have cost the company as much as $ 1 billion in revenue in fiscal 1989 , Mr. Willman says . NNP POS NN TO VB DT JJ JJ NN IN RB MD VB VBN DT NN RB JJ IN $ CD CD IN NN IN JJ CD , NNP NNP VBZ .
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IBM will face still more competition in coming months . NNP MD VB RB JJR NN IN VBG NNS .
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Amdahl Corp. , backed by Japan 's Fujitsu Ltd. , has a growing share of the market with its low-priced , IBM-compatible machines . NNP NNP , VBN IN NNP POS NNP NNP , VBZ DT VBG NN IN DT NN IN PRP$ JJ , JJ NNS .
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And National Advanced Systems , a joint venture of Japan 's Hitachi Ltd. and General Motors Corp. 's Electronic Data Systems , is expected to unveil a line of powerful IBM-compatible mainframes later this year . CC NNP NNP NNPS , DT JJ NN IN NNP POS NNP NNP CC NNP NNPS NNP POS NNP NNP NNPS , VBZ VBN TO VB DT NN IN JJ JJ NNS RB DT NN .
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NOTE : NN :
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NAS is National Advanced Systems , CDC -- Control Data Corp. , Bull NH Information Systems Inc . NNP VBZ NNP NNP NNPS , NNP : NNP NNP NNP , NNP NNP NNP NNP NNP .
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Source : International Data Corp . NN : NNP NNP NNP .
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Compiled by Publishers Weekly from data from large-city bookstores , bookstore chains and local bestseller lists across the U.S. . VBN IN NNP NNP IN NNS IN JJ NNS , NN NNS CC JJ NN NNS IN DT NNP .
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Copyright 1989 by Reed Publishing USA . NNP CD IN NNP NNP NNP .
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The frenetic stock and bond markets cooled off , but the dollar slumped . DT JJ NN CC NN NNS VBN IN , CC DT NN VBD .
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Stocks rose slightly as trading activity slowed from the frenzied pace earlier this week . NNS VBD RB IN NN NN VBD IN DT JJ NN RBR DT NN .
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Prices of long-term Treasury bonds hovered in a narrow band most of the day , finishing little changed despite the dollar 's weakness and fears about a wave of government borrowing coming soon . NNS IN JJ NNP NNS VBD IN DT JJ NN RBS IN DT NN , VBG RB VBN IN DT NN POS NN CC NNS IN DT NN IN NN NN VBG RB .
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Helped by futures-related program buying , the Dow Jones Industrial Average gained 4.92 points to close at 2643.65 . VBN IN JJ NN VBG , DT NNP NNP NNP NNP VBD CD NNS TO VB IN CD .
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But the Dow Jones Transportation Average fell for the seventh-consecutive session as more investors dumped UAL shares . CC DT NNP NNP NNP NNP VBD IN DT JJ NN IN JJR NNS VBD NNP NNS .
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Bond prices rallied early yesterday morning as traders scrambled to buy Treasury issues on fears that the Northern California earthquake might lead to a stock-market debacle . NN NNS VBD JJ NN NN IN NNS VBD TO VB NNP NNS IN NNS IN DT NNP NNP NN MD VB TO DT NN NN .
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But when stocks held steady , Treasury bonds later retreated . CC WRB NNS VBD JJ , NNP NNS RB VBD .
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Speculation that the Federal Reserve will lower interest rates in coming weeks helped push the dollar down while boosting stocks , traders said . NN IN DT NNP NNP MD JJR VB NNS IN VBG NNS VBD VB DT NN RB IN VBG NNS , NNS VBD .
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But many investors remain wary about stocks , partly because they expect continued turbulence in the junk-bond market that would make it more difficult to finance corporate takeovers . CC JJ NNS VBP JJ IN NNS , RB IN PRP VBP VBD NN IN DT NN NN WDT MD VB PRP RBR JJ TO VB JJ NNS .
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`` I 'm surprised we did n't see more volatility '' in stocks , said Raymond F. DeVoe Jr. , market strategist at Legg Mason Wood Walker . `` PRP VBP VBN PRP VBD RB VB JJR NN '' IN NNS , VBD NNP NNP NNP NNP , NN NN IN NNP NNP NNP NNP .
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`` I think the problems in the junk-bond area are just beginning , and this will be very unsettling for companies that have issued junk bonds . `` PRP VBP DT NNS IN DT NN NN VBP RB VBG , CC DT MD VB RB JJ IN NNS WDT VBP VBN NN NNS .
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In a bull market , credit does not matter , '' Mr. DeVoe added . IN DT NN NN , NN VBZ RB VB , '' NNP NNP VBD .
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`` But when it does matter , then it 's the only thing that matters . '' `` CC WRB PRP VBZ NN , RB PRP VBZ DT JJ NN IN NNS . ''
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However , many institutional investors are reacting to the stock market 's plunge as `` a great buying opportunity , '' said Charles I. Clough , chief investment strategist at Merrill Lynch Capital Markets . RB , JJ JJ NNS VBP VBG TO DT NN NN POS NN IN `` DT JJ NN NN , '' VBD NNP NNP NNP , JJ NN NN IN NNP NNP NNP NNPS .
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`` Things are beginning to settle down . `` NNS VBP VBG TO VB RB .
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The markets are returning to normalcy . '' DT NNS VBP VBG TO NN . ''
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Oil prices initially rose on fears that the massive earthquake in Northern California would disrupt production . NN NNS RB VBD IN NNS IN DT JJ NN IN NNP NNP MD VB NN .
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But prices later reversed course , finishing slightly lower , as investors concluded that any cuts would n't be large and that foreign oil producers would quickly pick up the slack . CC NNS RB VBD NN , VBG RB JJR , IN NNS VBD IN DT NNS MD RB VB JJ CC IN JJ NN NNS MD RB VB IN DT NN .
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In major market activity : IN JJ NN NN :
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Stock prices rose . NN NNS VBD .
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New York Stock Exchange volume shrank to 166.9 million shares from 224.1 million Tuesday . NNP NNP NNP NNP NN VBD TO CD CD NNS IN CD CD NNP .
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Advancers on the Big Board outpaced decliners by 822 to 668 . NNS IN DT NNP NNP VBD NNS IN CD TO CD .
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Bond prices were little changed in sluggish activity . NN NNS VBD RB VBN IN JJ NN .
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The yield on the Treasury 's 30-year issue fell slightly to 8.03 % . DT NN IN DT NNP POS JJ NN VBD RB TO CD NN .
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The dollar dropped . DT NN VBD .
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In New York late yesterday , the currency was at 141.45 yen and 1.8485 marks , down from 142.75 yen and 1.8667 marks late Tuesday . IN NNP NNP JJ NN , DT NN VBD IN CD NN CC CD NNS , RB IN CD NN CC CD NNS JJ NNP .
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James L. Madson , 46 years old , was named a vice president and assistant general manager of this producer of copper and other minerals . NNP NNP NNP , CD NNS JJ , VBD VBN DT NN NN CC NN JJ NN IN DT NN IN NN CC JJ NNS .
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He will succeed Arthur E. Himebaugh as general manager Feb. 1 , when Mr. Himebaugh retires . PRP MD VB NNP NNP NNP IN JJ NN NNP CD , WRB NNP NNP VBZ .
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AMR Corp. posted an 8.8 % drop in third-quarter net income and said the fourth quarter will be `` disappointing '' as well , primarily because of slimmer profit margins and increased fuel costs . NNP NNP VBD DT CD NN NN IN JJ JJ NN CC VBD DT JJ NN MD VB `` JJ '' IN RB , RB IN IN JJR NN NNS CC VBN NN NNS .
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AMR 's earnings decline comes a year after the parent company of American Airlines and the rest of the airline industry set profit records . NNP POS NNS NN VBZ DT NN IN DT NN NN IN NNP NNPS CC DT NN IN DT NN NN VBD NN NNS .
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Some analysts say the latest results only seem pale by comparison with a spectacular second half of 1988 . DT NNS VBP DT JJS NNS RB VBP JJ IN NN IN DT JJ JJ NN IN CD .
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Still , AMR 's stumble does n't bode well for the rest of the industry . RB , NNP POS NN VBZ RB VB RB IN DT NN IN DT NN .
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The Fort Worth , Texas , company is generally regarded as one of the best-run in the business , and its difficulties are likely to be reflected industrywide as other major carriers report third-quarter results over the next several days . DT NNP NNP , NNP , NN VBZ RB VBN IN CD IN DT JJS IN DT NN , CC PRP$ NNS VBP JJ TO VB VBN JJ IN JJ JJ NNS VBP JJ NNS IN DT JJ JJ NNS .
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Meanwhile , the company 's board , which had said nothing publicly about investor Donald Trump 's recently withdrawn $ 7.5 billion offer for AMR , issued a statement condemning `` ill-conceived and reckless '' bids and saying it was `` pleased '' that Mr. Trump had backed out . RB , DT NN POS NN , WDT VBD VBD NN RB IN NN NNP NNP POS RB VBN $ CD CD NN IN NNP , VBD DT NN VBG `` JJ CC JJ '' NNS CC VBG PRP VBD `` VBN '' IN NNP NNP VBD VBN RB .
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In the third quarter , AMR said , net fell to $ 137 million , or $ 2.16 a share , from $ 150.3 million , or $ 2.50 a share . IN DT JJ NN , NNP VBD , NN VBD TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN .
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Revenue rose 17 % to $ 2.73 billion from $ 2.33 billion a year earlier . NN VBD CD NN TO $ CD CD IN $ CD CD DT NN RBR .
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AMR 's chairman , Robert L. Crandall , said the results were due to an 11 % year-to-year increase in fuel prices and a slight decrease in yield , an industry measure analogous to profit margin on each seat sold . NNP POS NN , NNP NNP NNP , VBD DT NNS VBD JJ TO DT CD NN JJ NN IN NN NNS CC DT JJ NN IN NN , DT NN NN JJ TO VB NN IN DT NN VBN .
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`` We think these trends will continue and will produce a very disappointing fourth quarter as well , '' he said . `` PRP VBP DT NNS MD VB CC MD VB DT RB JJ JJ NN IN RB , '' PRP VBD .
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Tim Pettee , an analyst with Merrill Lynch & Co. , said : `` The business turned faster than expected . NNP NNP , DT NN IN NNP NNP CC NNP , VBD : `` DT NN VBD RBR IN VBN .
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Costs are giving them a little bit of trouble , and the whole industry is having a pricing problem . '' NNS VBP VBG PRP DT JJ NN IN NN , CC DT JJ NN VBZ VBG DT NN NN . ''
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For the nine months , AMR 's net rose 15 % to $ 415.9 million , or $ 6.59 a share , from $ 360.1 million , or $ 5.99 a share . IN DT CD NNS , NNP POS NN VBD CD NN TO $ CD CD , CC $ CD DT NN , IN $ CD CD , CC $ CD DT NN .
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Revenue jumped 22 % to $ 7.89 billion from $ 6.46 billion . NN VBD CD NN TO $ CD CD IN $ CD CD .
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AMR 's board , in a statement after a regular meeting yesterday , said : `` Ill-considered and reckless acquisition proposals adversely affect employee , financial and business relationships and are contrary to the best interests of AMR shareholders ... . NNP POS NN , IN DT NN IN DT JJ NN NN , VBD : `` JJ CC JJ NN NNS RB VBP NN , JJ CC NN NNS CC VBP JJ TO DT JJS NNS IN NNP NNS : .
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AMR has not been , and is not , for sale . '' NNP VBZ RB VBN , CC VBZ RB , IN NN . ''
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Mr. Crandall said the company 's current decline in earnings is exactly the kind of situation that an excessively leveraged company laden with debt from a takeover would find difficult to weather . NNP NNP VBD DT NN POS JJ NN IN NNS VBZ RB DT NN IN NN IN DT RB JJ NN JJ IN NN IN DT NN MD VB JJ TO VB .
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`` Our very disappointing third-quarter results and the discouraging outlook for the fourth quarter underscore the importance of an adequate capital base , '' he said . `` PRP$ RB JJ JJ NNS CC DT VBG NN IN DT JJ NN VBP DT NN IN DT JJ NN NN , '' PRP VBD .
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Christopher Whittington , 51-year-old deputy chairman of this British investment-banking group and chairman of Morgan Grenfell & Co. , the group 's main banking unit , has retired from his executive duties . NNP NNP , JJ NN NN IN DT JJ NN NN CC NN IN NNP NNP CC NNP , DT NN POS JJ NN NN , VBZ VBN IN PRP$ NN NNS .
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Succeeding Mr. Whittington as deputy chairman of the group is Anthony Richmond-Watson , 43 , currently a main board member . VBG NNP NNP IN NN NN IN DT NN VBZ NNP NNP , CD , RB DT JJ NN NN .
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Succeeding Mr. Whittington at Morgan Grenfell & Co. is Richard Webb , 50 , currently deputy chairman . VBG NNP NNP IN NNP NNP CC NNP VBZ NNP NNP , CD , JJ NN NN .
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Mr. Whittington will remain on the main group board as a nonexecutive director . NNP NNP MD VB IN DT JJ NN NN IN DT JJ NN .
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Without federal subsidies to developers of beach houses , the economic and structural damage by Hurricane Hugo in South Carolina would have been much less , as highlighted by your Oct. 3 editorial `` Subsidizing Disaster . '' IN JJ NNS TO NNS IN NN NNS , DT JJ CC JJ NN IN NNP NNP IN NNP NNP MD VB VBN RB JJR , IN VBN IN PRP$ NNP CD NN `` VBG NN . ''
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Congress should stop throwing tax dollars out to sea by subsidizing the development of beach communities on ecologically fragile coastal barrier islands , such as the hard-hit Isle of Palms near Charleston . NNP MD VB VBG NN NNS IN TO VB IN VBG DT NN IN NN NNS IN RB JJ JJ NN NNS , JJ IN DT JJ NNP IN NNPS IN NNP .
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As you mentioned , subsidies for development on a number of barrier islands were curtailed in 1982 by the Coastal Barrier Resource System . IN PRP VBD , NNS IN NN IN DT NN IN NN NNS VBD VBN IN CD IN DT NNP NNP NNP NNP .
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The National Taxpayers Union would like Congress to add 800,000 acres to the 453,000 of shoreline in the system by enacting `` The Coastal Barrier Improvement Act of 1989 . '' DT NNP NNP NNP MD IN NNP TO VB CD NNS TO DT CD IN NN IN DT NN IN VBG `` DT NNP NNP NNP NNP IN CD . ''
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This bill simply says that if you want to develop property on a barrier island you have to do so without taxpayer support . DT NN RB VBZ IN IN PRP VBP TO VB NN IN DT NN NN PRP VBP TO VB RB IN NN NN .
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Private-property rights would be upheld because the legislation would not ban coastal development . NN NNS MD VB VBN IN DT NN MD RB VB JJ NN .
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However , home builders would have to bear the full costs of such beach-house construction . RB , NN NNS MD VB TO VB DT JJ NNS IN JJ NN NN .
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A Taxpayers Union study concluded the bill would save taxpayers up to $ 9.3 billion in barrier-island subsidies over 20 years . DT NNP NNP NN VBD DT NN MD VB NNS IN TO $ CD CD IN NN NNS IN CD NNS .
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Already , the 1982 legislation has saved an estimated $ 800 million . RB , DT CD NN VBZ VBN DT VBN $ CD CD .
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Marshall Y. Taylor NNP NNP NNP
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Communications Director NNP NNP
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National Taxpayers Union NNP NNP NNP
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The government said 13.1 % of Americans , or 31.9 million people , were living in poverty in 1988 . DT NN VBD CD NN IN NNPS , CC CD CD NNS , VBD VBG IN NN IN CD .
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While last year 's figure was down from 13.4 % in 1987 and marked the fifth consecutive annual decline in the poverty rate , the Census Bureau said the 1988 drop was n't statistically significant . IN JJ NN POS NN VBD RB IN CD NN IN CD CC VBD DT JJ JJ JJ NN IN DT NN NN , DT NNP NNP VBD DT CD NN VBD RB RB JJ .
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The bureau 's report also showed that while some measures of the nation 's economic well-being improved modestly in 1988 , the fruits of prosperity were shared less equitably than the year before . DT NN POS NN RB VBD IN IN DT NNS IN DT NN POS JJ NN VBN RB IN CD , DT NNS IN NN VBD VBN RBR RB IN DT NN RB .
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Summarizing data derived from a March 1989 survey of 58,000 households , William Butz , associate director of the Census Bureau , said that `` most groups either stayed the same or improved . '' VBG NNS VBN IN DT NNP CD NN IN CD NNS , NNP NNP , JJ NN IN DT NNP NNP , VBD IN `` RBS NNS DT VBD DT JJ CC VBN . ''
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But , he added , `` Since the late 1960s , the distribution of income has been slowly getting less equal . CC , PRP VBD , `` IN DT JJ CD , DT NN IN NN VBZ VBN RB VBG RBR JJ .
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There was no reversal -LCB- of that trend -RCB- between 1987 and 1988 . '' EX VBD DT NN ( IN DT NN ) IN CD CC CD . ''
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Per capita income , a widely used measure of a nation 's economic health , hit a record in 1988 , rising 1.7 % after inflation adjustment to $ 13,120 . IN NNS NN , DT RB VBN NN IN DT NN POS JJ NN , VBD DT NN IN CD , VBG CD NN IN NN NN TO $ CD .
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But the median income of American families fell 0.2 % , the first time it has failed to rise since 1982 . CC DT JJ NN IN JJ NNS VBD CD NN , DT JJ NN PRP VBZ VBN TO VB IN CD .
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Mr. Butz said the divergence in the two measures reflects changes in family size and structure , including the rising number of female-headed families and a sharp increase in income reported by Americans who are n't living in families . NNP NNP VBD DT NN IN DT CD NNS VBZ NNS IN NN NN CC NN , VBG DT VBG NN IN JJ NNS CC DT JJ NN IN NN VBN IN NNPS WP VBP RB VBG IN NNS .
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As a result of last year 's decline , the government 's estimate for the number of people living below the poverty line declined by about 500,000 . IN DT NN IN JJ NN POS NN , DT NN POS NN IN DT NN IN NNS VBG IN DT NN NN VBN IN IN CD .
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The poverty threshold , defined as three times food expenses as calculated by the Agricultural Department , last year was $ 12,092 for a family of four . DT NN NN , VBN IN CD NNS NN NNS IN VBN IN DT NNP NNP , JJ NN VBD $ CD IN DT NN IN CD .
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The Census Bureau counts all cash income in determining whether families are below the line , but it does n't consider other government benefits , such as Medicare . DT NNP NNP VBZ DT NN NN IN VBG IN NNS VBP IN DT NN , CC PRP VBZ RB VB JJ NN NNS , JJ IN NNP .
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Thanks largely to the continued growth of the U.S. economy , the poverty rate is now substantially lower than the 1983 peak of 15.3 % , but the improvements have been modest in the past couple of years . NNS RB TO DT VBN NN IN DT NNP NN , DT NN NN VBZ RB RB JJR IN DT CD NN IN CD NN , CC DT NNS VBP VBN JJ IN DT JJ NN IN NNS .
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Poverty remains far more widespread among blacks than other Americans . NN VBZ RB RBR JJ IN NNS IN JJ NNPS .
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In 1988 , 31.6 % of blacks lived in poverty , compared with 10.1 % for whites and 26.8 % for Hispanics . IN CD , CD NN IN NNS VBD IN NN , VBN IN CD NN IN NNS CC CD NN IN NNPS .
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But two-thirds of all poor Americans were white . CC NNS IN DT JJ NNPS VBD JJ .
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More than half of poor families were headed by women living without men , the bureau said . RBR IN NN IN JJ NNS VBD VBN IN NNS VBG IN NNS , DT NN VBD .
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More than three-fourths of poor black families were headed by women . RBR IN JJ IN JJ JJ NNS VBD VBN IN NNS .
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The poverty rate of children under 18 years old dropped last year to 19.7 % from 20.5 % in 1987 , but remained far higher than a decade ago . DT NN NN IN NNS IN CD NNS JJ VBD JJ NN TO CD NN IN CD NN IN CD , CC VBD RB JJR IN DT NN RB .
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The rate among the elderly -- 12 % in 1988 -- was n't significantly lower than the year before . DT NN IN DT JJ : CD NN IN CD : VBD RB RB JJR IN DT NN RB .
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If it were n't for Social Security payments , more than three times as many elderly would be below the poverty line , Mr. Butz said . IN PRP VBD RB IN NNP NNP NNS , JJR IN CD NNS IN JJ NN MD VB IN DT NN NN , NNP NNP VBD .
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The Census Bureau also said : DT NNP NNP RB VBD :
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-- Some 17.2 % of all money income received by families in 1988 went to the wealthiest 5 % of all families , up from 16.9 % in 1987 . : DT CD NN IN DT NN NN VBN IN NNS IN CD VBD TO DT JJS NN NN IN DT NNS , IN IN CD NN IN CD .
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That is the greatest share reported for any year since 1950 , although changing definitions over the years distort the comparison . DT VBZ DT JJS NN VBD IN DT NN IN CD , IN VBG NNS IN DT NNS VBP DT NN .
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-- The top fifth of all families got 44 % of the income , up from 41.5 % a decade earlier . : DT JJ NN IN DT NNS VBD CD NN IN DT NN , IN IN CD NN DT NN RBR .
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The bottom fifth of all families got 4.6 % of the income , down from 5.2 % a decade earlier . DT NN NN IN DT NNS VBD CD NN IN DT NN , RB IN CD NN DT NN RBR .
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-- Confirming other government data showing that wages are n't keeping pace with inflation , earnings of year-round , full-time male workers fell 1.3 % in 1988 after adjusting for higher prices , the first such drop since 1982 . : VBG JJ NN NNS VBG IN NNS VBP RB VBG NN IN NN , NNS IN JJ , JJ JJ NNS VBD CD NN IN CD IN VBG IN JJR NNS , DT JJ JJ NN IN CD .
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Earnings of female workers were unchanged . NNS IN JJ NNS VBD JJ .
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-- Women working full-time earned 66 cents for every dollar earned by men , a penny more than in 1987 and seven cents more than in 1978 . : NNP VBG JJ VBD CD NNS IN DT NN VBN IN NNS , DT NN JJR IN IN CD CC CD NNS JJR IN IN CD .
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-- Median household income -- which includes both those living in families and those who are n't -- rose 0.3 % last year to $ 27,225 after inflation . : JJ NN NN : WDT VBZ DT DT VBG IN NNS CC DT WP VBP RB : VBD CD NN JJ NN TO $ CD IN NN .
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It rose sharply in the Northeast and Midwest and fell slightly in the South and West . PRP VBD RB IN DT NNP CC NNP CC VBD RB IN DT NNP CC NNP .
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Median family income was $ 32,191 , down 0.2 % . JJ NN NN VBD $ CD , RB CD NN .
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-- Per capita income of blacks , though still only 60 % that of whites , rose 3.9 % in 1988 , while per capita income of whites rose only 1.5 % . : IN NNS NN IN NNS , IN RB RB CD NN IN IN NNS , VBD CD NN IN CD , IN IN NNS NN IN NNS VBD RB CD NN .
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-- Among married couples , the gap between blacks and whites narrowed sharply , as income of black families shot up 6.8 % while income of whites did n't budge . : IN VBN NNS , DT NN IN NNS CC NNS VBD RB , IN NN IN JJ NNS NN IN CD NN IN NN IN NNS VBD RB VB .
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Fueling a controversy that has been simmering for years , the Census Bureau also said its figures would look far rosier if it recalculated the poverty threshold using an improved consumer-price measure adopted in 1983 . VBG DT NN WDT VBZ VBN VBG IN NNS , DT NNP NNP RB VBD PRP$ NNS MD VB RB JJR IN PRP VBD DT NN NN VBG DT VBN JJ NN VBN IN CD .
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The bureau said some 3.5 million fewer people would have fallen below the poverty line in 1988 -- and the poverty rate would have been 10.5 % instead of 13.1 % -- under the alternative calculation . DT NN VBD DT CD CD JJR NNS MD VB VBN IN DT NN NN IN CD : CC DT NN NN MD VB VBN CD NN RB IN CD NN : IN DT NN NN .
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Critics on the left and right have been calling for all sorts of revisions to the measure for years . NNS IN DT VBN CC NN VBP VBN VBG IN DT NNS IN NNS TO DT NN IN NNS .
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A report by the staff of the Joint Economic Committee of Congress released yesterday concluded , `` It is misleading to make this change without adjusting for other changes . '' DT NN IN DT NN IN DT NNP NNP NNP IN NNP VBD NN VBD , `` PRP VBZ JJ TO VB DT NN IN VBG IN JJ NNS . ''
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The official poverty threshold is set by the Office of Management and Budget . DT JJ NN NN VBZ VBN IN DT NNP IN NNP CC NNP .
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John E. Hayes Jr. was elected chairman , president and chief executive officer , succeeding David S. Black , who retired . NNP NNP NNP NNP VBD VBN NN , NN CC JJ JJ NN , VBG NNP NNP NNP , WP VBD .
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Mr. Hayes , 52 years old , left Southwestern Bell Telephone Co. in January , where he had been chairman , president and chief executive , to join Triad Capital Partners , a St. Louis company with interests in solid waste and recycling , telecommunications and international venture capital . NNP NNP , CD NNS JJ , VBN NNP NNP NNP NNP IN NNP , WRB PRP VBD VBN NN , NN CC JJ NN , TO VB NNP NNP NNPS , DT NNP NNP NN IN NNS IN JJ NN CC NN , NNS CC JJ NN NN .
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He has resigned his posts at Triad to take the Kansas Power positions . PRP VBZ VBN PRP$ NNS IN NNP TO VB DT NNP NNP NNS .
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Kansas Power said Mr. Black , 61 , chose early retirement . NNP NNP VBD NNP NNP , CD , VBD JJ NN .
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The space shuttle Atlantis boosted the Galileo spacecraft on its way to Jupiter , giving a big lift as well to an ambitious U.S. program of space exploration . DT NN NN NNP VBD DT NNP NN IN PRP$ NN TO NNP , VBG DT JJ NN IN RB TO DT JJ NNP NN IN NN NN .
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Seven years late in the launching , $ 1 billion over budget and a target of anti-nuclear protestors , Galileo has long been a symbol of trouble for the National Aeronautics and Space Administration . CD NNS RB IN DT NN , $ CD CD IN NN CC DT NN IN JJ NNS , NNP VBZ RB VBN DT NN IN NN IN DT NNP NNP CC NNP NNP .
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But yesterday , as Atlantis rumbled into a patch of clear sky above Florida with storm clouds closing in on it , NASA sought to turn Galileo into a symbol of triumph . CC NN , IN NNP VBD IN DT NN IN JJ NN IN NNP IN NN NNS VBG IN IN PRP , NNP VBD TO VB NNP IN DT NN IN NN .
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`` NASA did it right ; that 's the message , '' said J.R. Thompson , the agency 's deputy administrator . `` NNP VBD PRP NN : DT VBZ DT NN , '' VBD NNP NNP , DT NN POS NN NN .
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The $ 1.4 billion robot spacecraft faces a six-year journey to explore Jupiter and its 16 known moons . DT $ CD CD NN NN VBZ DT JJ NN TO VB NNP CC PRP$ CD VBN NNS .
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If all goes well , it will parachute a probe into the dense Jovian atmosphere in July 1995 to pick up detailed data about gases that may be similar to the material from which the solar system was formed 4.6 billion years ago . IN DT VBZ RB , PRP MD VB DT NN IN DT JJ JJ NN IN NNP CD TO VB IN VBN NNS IN NNS WDT MD VB JJ TO DT NN IN WDT DT JJ NN VBD VBN CD CD NNS RB .
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Jupiter is so enormous -- its mass is 318 times that of Earth -- that its gravity may have trapped these primordial gases and never let them escape . NNP VBZ RB JJ : PRP$ NN VBZ CD NNS IN IN NNP : IN PRP$ NN MD VB VBN DT JJ NNS CC RB VB PRP VB .
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Investigating Jupiter in detail may provide clues to what astronomer Tobias Owen calls the `` cosmic paradox '' of life : Jupiter and other bodies in the outer solar system are rich in elements such as hydrogen that are essential for life on Earth , but these planets are lifeless ; Earth , on the other hand , has a diminished store of such material but is rich in life . VBG NNP IN NN MD VB NNS TO WP NN NNP NNP VBZ DT `` JJ NN '' IN NN : NNP CC JJ NNS IN DT JJ JJ NN VBP JJ IN NNS JJ IN NN WDT VBP JJ IN NN IN NNP , CC DT NNS VBP JJ : NNP , IN DT JJ NN , VBZ DT VBN NN IN JJ NN CC VBZ JJ IN NN .
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Some scientists have suggested that comets and asteroids may have brought enough of this kind of material from the outer solar system to Earth to spawn life . DT NNS VBP VBN IN NNS CC NNS MD VB VBN RB IN DT NN IN NN IN DT JJ JJ NN TO NNP TO VB NN .
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Beginning in December 1995 , Galileo will begin a two-year tour of the Jovian moons . VBG IN NNP CD , NNP MD VB DT JJ NN IN DT JJ NNS .
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In 1979 , two Voyager spacecraft sent back stunning photos of Jovian moons Io and Europa that showed them to be among the most intriguing bodies in the solar system . IN CD , CD NNP NN VBD RB JJ NNS IN JJ NNS NNP CC NNP WDT VBD PRP TO VB IN DT RBS JJ NNS IN DT JJ NN .
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The photos showed active geysers on Io spewing sulfurous material 190 miles into its atmosphere and indicated that Europa may have an ocean hidden under a thick sheet of ice . DT NNS VBD JJ NNS IN NNP VBG JJ NN CD NNS IN PRP$ NN CC VBD IN NNP MD VB DT NN VBN IN DT JJ NN IN NN .
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Galileo 's photos of Europa will be more than 1,000 times as sharp as Voyager 's , according to Torrence Johnson , Galileo 's project scientist , and may show whether it actually has the only known ocean other than those on Earth . NNP POS NNS IN NNP MD VB JJR IN CD NNS RB JJ IN NNP POS , VBG TO NNP NNP , NNP POS NN NN , CC MD VB IN PRP RB VBZ DT RB VBN NN JJ IN DT IN NNP .
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Atlantis lifted Galileo from the launch pad at 12:54 p.m. EDT and released the craft from its cargo bay about six hours later . NNP VBD NNP IN DT NN NN IN CD NN NNP CC VBD DT NN IN PRP$ NN NN IN CD NNS RB .
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`` Galileo is on its way to another world in the hands of the best flight controllers in this world , '' Atlantis Commander Donald Williams said . `` NNP VBZ IN PRP$ NN TO DT NN IN DT NNS IN DT JJS NN NNS IN DT NN , '' NNP NNP NNP NNP VBD .
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`` Fly safely . '' `` VB RB . ''
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The five-member Atlantis crew will conduct several experiments , including growing plants and processing polymeric materials in space , before their scheduled landing at Edwards Air Force Base , Calif. , Monday . DT JJ NNP NN MD VB JJ NNS , VBG VBG NNS CC VBG JJ NNS IN NN , IN PRP$ VBN NN IN NNP NNP NNP NNP , NNP , NNP .
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The Galileo project started in 1977 , and a number of project veterans were on hand to watch the launch . DT NNP NN VBD IN CD , CC DT NN IN NN NNS VBD IN NN TO VB DT NN .
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An ebullient Mr. Johnson , wearing a NASA baseball cap and carrying a camera and binoculars , called the launch `` fantastic . '' DT JJ NNP NNP , VBG DT NNP NN NN CC VBG DT NN CC NNS , VBD DT NN `` JJ . ''
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Benny Chin , manager of the Galileo probe , compared it to watching a child leave home . NNP NNP , NN IN DT NNP NN , VBD PRP TO VBG DT NN NN NN .
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`` I 'm happy and sad , '' he said . `` PRP VBP JJ CC JJ , '' PRP VBD .
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Anti-nuclear activists took a less positive view . JJ NNS VBD DT RBR JJ NN .
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Having argued that Galileo 's plutonium power source could have released lethal doses of radiation if the shuttle exploded yesterday , they were n't quieted by yesterday 's successful launch . VBG VBN IN NNP POS NN NN NN MD VB VBN JJ NNS IN NN IN DT NN VBD NN , PRP VBD RB VBN IN NN POS JJ NN .
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Galileo will skim past Earth in 1990 and 1992 , collecting energy from the planet 's gravitational field to gain momentum for its trip to Jupiter . NNP MD VB JJ NNP IN CD CC CD , VBG NN IN DT NN POS JJ NN TO VB NN IN PRP$ NN TO NNP .
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The protesters point out that Galileo also could crash to Earth then . DT NNS VBP RP IN NNP RB MD VB TO NNP RB .
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They said they dropped plans to infiltrate the Kennedy Space Center after NASA beefed up its security . PRP VBD PRP VBD NNS TO VB DT NNP NNP NNP IN NNP VBD IN PRP$ NN .
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One protest did get past NASA 's guard , though ; a computer virus caused anti-Galileo messages to flash onto some computer screens at NASA centers . CD NN VBD VB JJ NNP POS NN , IN : DT NN NN VBD JJ NNS TO VB IN DT NN NNS IN NNP NNS .
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The successful launch continues a remarkable recovery in the U.S. space-science program . DT JJ NN VBZ DT JJ NN IN DT NNP NN NN .
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An unmanned spacecraft , Magellan , already is heading to Venus and is due to begin mapping the planet next August . DT JJ NN , NNP , RB VBZ VBG TO NNP CC VBZ JJ TO VB VBG DT NN JJ NNP .
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Voyager 2 sent back spectacular photos of Neptune and its moon , Triton , this summer . NNP CD VBD RB JJ NNS IN NNP CC PRP$ NN , NNP , DT NN .
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Next month , NASA plans to launch a satellite to study cosmic rays dating from the birth of the universe . JJ NN , NNP VBZ TO VB DT NN TO VB JJ NNS VBG IN DT NN IN DT NN .
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In December , the shuttle Columbia will try to retrieve a satellite that 's been in orbit for nearly five years measuring the deleterious effects of space on materials and instruments . IN NNP , DT NN NNP MD VB TO VB DT NN WDT VBZ VBN IN NN IN RB CD NNS VBG DT JJ NNS IN NN IN NNS CC NNS .
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Next March , the shuttle Discovery will launch the Hubble space telescope , a $ 1.5 billion instrument designed to see the faintest galaxies in the universe . NNP NNP , DT NN NNP MD VB DT NNP NN NN , DT $ CD CD NN VBN TO VB DT JJS NNS IN DT NN .
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Not all of NASA 's space-science work will be so auspicious , though . RB DT IN NNP POS NN NN MD VB RB JJ , RB .
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Around Thanksgiving , the Solar Max satellite , which NASA repaired in orbit in 1984 , will tumble back into the Earth 's atmosphere . IN NNP , DT NNP NNP NN , WDT NNP VBD IN NN IN CD , MD VB RB IN DT NNP POS NN .
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NASA wo n't attempt a rescue ; instead , it will try to predict whether any of the rubble will smash to the ground and where . NNP MD RB VB DT NN : RB , PRP MD VB TO VB IN DT IN DT NN MD VB TO DT NN CC WRB .
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The Associated Press 's earthquake coverage drew attention to a phenomenon that deserves some thought by public officials and other policy makers . DT NNP NNP POS NN NN VBD NN TO DT NN WDT VBZ DT NN IN JJ NNS CC JJ NN NNS .
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Private relief agencies , such as the Salvation Army and Red Cross , mobilized almost instantly to help people , while the Washington bureaucracy `` took hours getting into gear . '' JJ NN NNS , JJ IN DT NNP NNP CC NNP NNP , VBD RB RB TO VB NNS , IN DT NNP NN `` VBD NNS VBG IN NN . ''
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One news show we saw yesterday even displayed 25 federal officials meeting around a table . CD NN NN PRP VBD NN RB VBD CD JJ NNS NN IN DT NN .
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We recall that the mayor of Charleston complained bitterly about the federal bureaucracy 's response to Hurricane Hugo . PRP VBP IN DT NN IN NNP VBD RB IN DT JJ NN POS NN TO NNP NNP .
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The sense grows that modern public bureaucracies simply do n't perform their assigned functions well . DT NN VBZ IN JJ JJ NNS RB VBP RB VB PRP$ VBN NNS RB .
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Bally Manufacturing Corp. and New York developer Donald Trump have agreed in principle to a $ 6.5 million settlement of shareholder litigation stemming from Bally 's alleged greenmail payment to Mr. Trump . NNP NNP NNP CC NNP NNP NN NNP NNP VBP VBN IN NN TO DT $ CD CD NN IN NN NN VBG IN NNP POS VBN NN NN TO NNP NNP .
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According to lawyers familiar with the settlement talks , the verbal agreement to end a lawsuit filed more than two years ago was reached last week and will soon be submitted to a federal judge in Camden , N.J . VBG TO NNS JJ IN DT NN NNS , DT JJ NN TO VB DT NN VBN JJR IN CD NNS RB VBD VBN JJ NN CC MD RB VB VBN TO DT JJ NN IN NNP , NNP .
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In February 1987 , Bally thwarted a possible hostile takeover bid from Mr. Trump by agreeing to buy 2.6 million of Mr. Trump 's 3.1 million Bally shares for $ 83.7 million -- more than $ 18 million above market price . IN NNP CD , NNP VBD DT JJ JJ NN NN IN NNP NNP IN VBG TO VB CD CD IN NNP NNP POS CD CD NNP NNS IN $ CD CD : JJR IN $ CD CD IN NN NN .
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The term greenmail refers to a situation where a company pays a premium over market value to repurchase a stake held by a potential acquirer . DT NN NN VBZ TO DT NN WRB DT NN VBZ DT NN IN NN NN TO VB DT NN VBN IN DT JJ NN .
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Lawyers for shareholders , Bally and Mr. Trump all declined to talk publicly about the proposed settlement , citing a request by a federal court magistrate not to reveal details of the agreement until it is completed . NNS IN NNS , NNP CC NNP NNP DT VBD TO VB RB IN DT VBN NN , VBG DT NN IN DT JJ NN NN RB TO VB NNS IN DT NN IN PRP VBZ VBN .
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But some attorneys who are familiar with the matter said the $ 6.5 million payment will be shared by Bally and Mr. Trump , with the casino and hotel concern probably paying the bulk of the money . CC DT NNS WP VBP JJ IN DT NN VBD DT $ CD CD NN MD VB VBN IN NNP CC NNP NNP , IN DT NN CC NN NN RB VBG DT NN IN DT NN .
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The amount Bally and Mr. Trump will pay to settle the class-action suit pales in comparison to the $ 45 million Walt Disney Co. and Saul Steinberg 's Reliance Group Holdings Inc. agreed to pay to settle a similar suit in July . DT NN NNP CC NNP NNP MD VB TO VB DT JJ NN VBZ IN NN TO DT $ CD CD NNP NNP NNP CC NNP NNP POS NNP NNP NNP NNP VBD TO VB TO VB DT JJ NN IN NNP .
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That settlement represented the first time shareholders were granted a major payment in a greenmail case . DT NN VBD DT JJ NN NNS VBD VBN DT JJ NN IN DT NN NN .
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Mr. Steinberg made a $ 59.7 million profit on the sale to Disney of his investment in the company in 1984 . NNP NNP VBD DT $ CD CD NN IN DT NN TO NNP IN PRP$ NN IN DT NN IN CD .
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But lawyers said Mr. Steinberg probably faced much more potential liability because , when he sued Disney during his takeover battle , he filed on behalf of all shareholders . CC NNS VBD NNP NNP RB VBD RB RBR JJ NN IN , WRB PRP VBD NNP IN PRP$ NN NN , PRP VBD IN NN IN DT NNS .
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When Disney offered to pay Mr. Steinberg a premium for his shares , the New York investor did n't demand the company also pay a premium to other shareholders . WRB NNP VBD TO VB NNP NNP DT NN IN PRP$ NNS , DT NNP NNP NN VBD RB VB DT NN RB VB DT NN TO JJ NNS .
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When Mr. Trump sued Bally , he sued only on behalf of himself . WRB NNP NNP VBD NNP , PRP VBD RB IN NN IN PRP .
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Mr. Trump and Bally also appeared to have some leverage in the case because in the state of Delaware , where Bally is incorporated , courts have held that greenmail is often protected by the business-judgment rule . NNP NNP CC NNP RB VBD TO VB DT NN IN DT NN IN IN DT NN IN NNP , WRB NNP VBZ VBN , NNS VBP VBN DT NN VBZ RB VBN IN DT NN NN .
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That rule gives boards of directors wide latitude in deciding how to deal with dissident shareholders . DT NN VBZ NNS IN NNS JJ NN IN VBG WRB TO VB IN JJ NNS .
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SENATE HEARS final arguments in impeachment trial of federal judge . NNP VBZ JJ NNS IN NN NN IN JJ NN .
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Yesterday , U.S. Judge Alcee Hastings faced his jury -- the full U.S. Senate -- and said , `` I am not guilty of having committed any crime . '' NN , NNP NNP NNP NNP VBD PRP$ NN : DT JJ NNP NNP : CC VBD , `` PRP VBP RB JJ IN VBG VBN DT NN . ''
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Seventeen articles of impeachment against the Florida judge , one of the few blacks on the U.S. bench , were approved by the House in August 1988 . CD NNS IN NN IN DT NNP NN , CD IN DT JJ NNS IN DT NNP NN , VBD VBN IN DT NNP IN NNP CD .
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The central charge against Judge Hastings is that he conspired with a Washington lawyer to obtain a $ 150,000 bribe from defendants in a criminal case before the judge , in return for leniency . DT JJ NN IN NNP NNP VBZ IN PRP VBD IN DT NNP NN TO VB DT $ CD NN IN NNS IN DT JJ NN IN DT NN , IN NN IN NN .
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He is also accused of lying under oath and of leaking information obtained from a wiretap he supervised . PRP VBZ RB VBN IN VBG IN NN CC IN VBG NN VBN IN DT NN PRP VBD .
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The Senate 's public gallery was packed with Judge Hastings ' supporters , who erupted into applause after he finished his argument . DT NNP POS JJ NN VBD VBN IN NNP NNP POS NNS , WP VBD IN NN IN PRP VBD PRP$ NN .
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Judge Hastings , who was acquitted of similar charges by a federal jury in 1983 , claims he is being victimized and that the impeachment proceedings against him constitute double jeopardy . NNP NNP , WP VBD VBN IN JJ NNS IN DT JJ NN IN CD , NNS PRP VBZ VBG VBN CC IN DT NN NNS IN PRP VBP JJ NN .
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But Rep. John Bryant -LRB- D. , Texas -RRB- , the lead counsel for the House managers who conducted a lengthy inquiry into Judge Hastings ' activities , said `` a mountain of evidence points to his certain guilt . '' CC NNP NNP NNP ( NNP , NNP ) , DT NN NN IN DT NNP NNS WP VBD DT JJ NN IN NNP NNP POS NNS , VBD `` DT NN IN NN NNS TO PRP$ JJ NN . ''
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The Senate will deliberate behind closed doors today and is scheduled to vote on the impeachment tomorrow . DT NNP MD VB IN VBN NNS NN CC VBZ VBN TO VB IN DT NN NN .
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If the judge is impeached , as is thought likely , he will be removed from office immediately . IN DT NN VBZ VBN , IN VBZ VBN JJ , PRP MD VB VBN IN NN RB .
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However , Judge Hastings has said he will continue to fight and is contemplating an appeal of any impeachment to the U.S. Supreme Court . RB , NNP NNP VBZ VBD PRP MD VB TO VB CC VBZ VBG DT NN IN DT NN TO DT NNP NNP NNP .
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COMPANIES SEEKING to make insurers pay for pollution cleanup win court victory . NNS VBG TO VB NNS VB IN NN NN NN NN NN .
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In a case involving Avondale Industries Inc. and its insurer , Travelers Cos. , the Second U.S. Circuit Court of Appeals in New York ruled in favor of the company on two issues that lawyers say are central to dozens of pollution cases around the country . IN DT NN VBG NNP NNP NNP CC PRP$ NN , NNP NNP , DT NNP NNP NNP NNP IN NNPS IN NNP NNP VBD IN NN IN DT NN IN CD NNS IN NNS VBP VBP JJ TO NNS IN NN NNS IN DT NN .
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Travelers and other insurers have maintained that cleanup costs are n't damages and thus are n't covered under commercial policies . NNP CC JJ NNS VBP VBN IN NN NNS VBP RB VBZ CC RB VBP RB VBN IN JJ NNS .
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They also have argued that government proceedings notifying a company of potential responsibility do n't fit the legal definition of a lawsuit ; thus , such governmental proceedings are n't covered by the policies , the insurers say . PRP RB VBP VBN IN NN NNS VBG DT NN IN JJ NN VBP RB VB DT JJ NN IN DT NN : RB , JJ JJ NNS VBP RB VBN IN DT NNS , DT NNS VBP .
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The appeals court disagreed on both counts . DT NNS VBP VBD IN DT NNS .
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Avondale was notified by Louisiana officials in 1986 that it was potentially responsible for a cleanup at an oil-recycling plant . NNP VBD VBN IN NNP NNS IN CD IN PRP VBD RB JJ IN DT NN IN DT NN NN .
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Avondale asked Travelers to defend it in the state proceeding , but the insurer did n't respond . NNP VBD NNP TO VB PRP IN DT NN NN , CC DT NN VBD RB VB .
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The appeals court upheld a district judge 's ruling that the insurer had to defend the company in such proceedings . DT NNS VBP VBD DT NN NN POS NN IN DT NN VBD TO VB DT NN IN JJ NNS .
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The appeals court also said , `` We think an ordinary businessman reading this policy would have believed himself covered for the demands and potential damage claims '' stemming from any cleanup . DT NNS VBP RB VBD , `` PRP VBP DT JJ NN VBG DT NN MD VB VBN PRP VBD IN DT NNS CC JJ NN NNS '' VBG IN DT NN .
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`` This decision will have a very considerable impact , '' said Kenneth Abraham , professor of environmental law and insurance law at the University of Virginia , because many commercial insurance policies are issued by companies based in New York . `` DT NN MD VB DT RB JJ NN , '' VBD NNP NNP , NN IN JJ NN CC NN NN IN DT NNP IN NNP , IN JJ JJ NN NNS VBP VBN IN NNS VBN IN NNP NNP .
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William Greaney , an attorney for the Chemical Manufacturers Association , said that while other appeals courts have ruled differently on whether cleanup costs are damages , the influence of the appeals court in New York `` will make insurers sit up and listen . '' NNP NNP , DT NN IN DT NNP NNP NNP , VBD IN IN JJ NNS NNS VBP VBN RB IN IN NN NNS VBP NNS , DT NN IN DT NNS VBP IN NNP NNP `` MD VB NNS VB VB CC VB . ''
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He said the decision was the first in which a federal appeals court has ruled whether administrative government proceedings qualify as litigation . PRP VBD DT NN VBD DT JJ IN WDT DT JJ NNS VBP VBZ VBN IN JJ NN NNS VBP IN NN .
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Barry R. Ostrager , an attorney for Travelers , said , `` there are procedural bases on which this case will be appealed further . '' NNP NNP NNP , DT NN IN NNP , VBD , `` EX VBP JJ NNS IN WDT DT NN MD VB VBN JJ . ''
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NEW YORK 'S poor face nearly three million legal problems a year without legal help . NNP NNP VBZ JJ NN RB CD CD JJ NNS DT NN IN JJ NN .
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That is the conclusion of a report released by the New York State Bar Association . DT VBZ DT NN IN DT NN VBN IN DT NNP NNP NNP NNP NNP .
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The report was based on a telephone survey of 1,250 low-income households across the state , a mail survey of major legal-services programs and on-site interviews with individuals in the field . DT NN VBD VBN IN DT NN NN IN CD JJ NNS IN DT NN , DT NN NN IN JJ NNS NNS CC JJ NNS IN NNS IN DT NN .
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`` The report provides detailed documentation of the extent and nature of the problem and indicates how we may want to shape solutions , '' said Joseph Genova , chairman of the committee that oversaw the survey and a partner at the law firm of Milbank , Tweed , Hadley & McCloy . `` DT NN VBZ VBN NN IN DT NN CC NN IN DT NN CC VBZ WRB PRP MD VB TO VB NNS , '' VBD NNP NNP , NN IN DT NN WDT VBD DT NN CC DT NN IN DT NN NN IN NNP , NNP , NNP CC NNP .
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According to the study , slightly more than 34 % of those surveyed reported having at least one housing problem every year for which they had no legal help . VBG TO DT NN , RB JJR IN CD NN IN DT VBN VBD VBG IN JJS CD NN NN DT NN IN WDT PRP VBD DT JJ NN .
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Nearly 36 % ranked housing problems as their most serious unmet legal need . RB CD NN VBD NN NNS IN PRP$ RBS JJ JJ JJ NN .
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Other areas targeted by the survey 's respondents included difficulty obtaining or maintaining public benefits -LRB- 22 % -RRB- , consumer fraud -LRB- 15.4 % -RRB- , and health-care issues -LRB- 15 % -RRB- . JJ NNS VBN IN DT NN POS NNS VBD NN VBG CC VBG JJ NNS ( CD NN ) , NN NN ( CD NN ) , CC NN NNS ( CD NN ) .
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During the 15-month survey , 43 % of all legal-services programs said that at some period they were unable to accept new clients unless they had an emergency . IN DT JJ NN , CD NN IN DT NNS NNS VBD IN IN DT NN PRP VBD JJ TO VB JJ NNS IN PRP VBD DT NN .
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Mr. Genova said the committee may meet to propose solutions to the problems identified in the study . NNP NNP VBD DT NN MD VB TO VB NNS TO DT NNS VBN IN DT NN .
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PROSECUTOR TO JOIN Gibson Dunn : NNP TO VB NNP NNP :
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Assistant U.S. Attorney Randy Mastro , who headed the government 's racketeering case against the International Brotherhood of Teamsters , will join Gibson , Dunn & Crutcher in its New York office . NNP NNP NNP NNP NNP , WP VBD DT NN POS NN NN IN DT NNP NNP IN NNPS , MD VB NNP , NNP CC NNP IN PRP$ NNP NNP NN .
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Mr. Mastro has been with the New York U.S. attorney 's office for nearly five years . NNP NNP VBZ VBN IN DT NNP NNP NNP NN POS NN IN RB CD NNS .
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In 1987 he became deputy chief of the civil division . IN CD PRP VBD NN NN IN DT JJ NN .
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Mr. Mastro will do civil litigation and white-collar defense work for Gibson Dunn , which is based in Los Angeles . NNP NNP MD VB JJ NN CC JJ NN NN IN NNP NNP , WDT VBZ VBN IN NNP NNP .
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FORMER APPLE COMPUTER Inc. general counsel John P. Karalis has joined the Phoenix , Ariz. , law firm of Brown & Bain . JJ NNP NNP NNP JJ NN NNP NNP NNP VBZ VBN DT NNP , NNP , NN NN IN NNP CC NNP .
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Mr. Karalis , 51 , will specialize in corporate law and international law at the 110-lawyer firm . NNP NNP , CD , MD VB IN JJ NN CC JJ NN IN DT JJ NN .
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Before joining Apple in 1986 , Mr. Karalis served as general counsel at Sperry Corp . IN VBG NNP IN CD , NNP NNP VBD IN JJ NN IN NNP NNP .
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After failing to find a buyer for the Sears Tower in Chicago , Sears , Roebuck & Co. is negotiating with Boston pension fund adviser Aldrich , Eastman & Waltch Inc. to refinance the property for close to $ 850 million , according to people close to the negotiations . IN VBG TO VB DT NN IN DT NNP NNP IN NNP , NNP , NNP CC NNP VBZ VBG IN NNP NN NN NN NNP , NNP CC NNP NNP TO VB DT NN IN RB TO $ CD CD , VBG TO NNS VBP TO DT NNS .
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Under the proposed agreement involving the world 's tallest building , Chicago-based Sears would receive about half the money through conventional mortgage financing and the other half as a convertible mortgage . IN DT VBN NN VBG DT NN POS JJS NN , JJ NNP MD VB IN PDT DT NN IN JJ NN NN CC DT JJ NN IN DT JJ NN .
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At the end of the term of the convertible loan , Sears could still own half the building , and AEW could own the other half . IN DT NN IN DT NN IN DT JJ NN , NNP MD RB JJ PDT DT NN , CC NNP MD VB DT JJ NN .
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Neither side would comment . CC NN MD VB .
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The parties are currently negotiating over who would manage the building , which will be emptied of 6,000 employees from Sears ' merchandise group , which is moving elsewhere . DT NNS VBP RB VBG IN WP MD VB DT NN , WDT MD VB VBN IN CD NNS IN NNP POS NN NN , WDT VBZ VBG RB .
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The new manager will face the daunting task of leasing 1.8 million square feet in a relatively soft Chicago real estate market . DT JJ NN MD VB DT JJ NN IN NN CD CD NN NNS IN DT RB JJ NNP JJ NN NN .
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Also , it has not yet been decided exactly how much of the mortgage AEW will be able to convert into equity . RB , PRP VBZ RB RB VBN VBN RB WRB NN IN DT NN NNP MD VB JJ TO VB IN NN .
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Convertible mortgages have become an increasingly popular way to finance prestigious buildings of late . JJ NNS VBP VBN DT RB JJ NN TO VB JJ NNS IN JJ .
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In a convertible mortgage , the investor lends the building owner a certain amount in return for the option to convert its interest into equity , usually less than 50 % , at the end of the loan term . IN DT JJ NN , DT NN VBZ DT NN NN DT JJ NN IN NN IN DT NN TO VB PRP$ NN IN NN , RB JJR IN CD NN , IN DT NN IN DT NN NN .
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During the term , the lender can either receive a percentage of cash flow , a percentage of the building 's appreciation or a fixed return . IN DT NN , DT NN MD DT VB DT NN IN NN NN , DT NN IN DT NN POS NN CC DT VBN NN .
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The main advantage of a convertible mortgage is that it is not a sale and therefore does not trigger costly transfer taxes and reappraisal . DT JJ NN IN DT JJ NN VBZ IN PRP VBZ RB DT NN CC RB VBZ RB VB JJ NN NNS CC NN .
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Sears said it would put the 110-story tower on the block almost a year ago as part of its anti-takeover restructuring . NNP VBD PRP MD VB DT JJ NN IN DT NN RB DT NN RB IN NN IN PRP$ JJ NN .
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But Japanese institutions shied away from bidding on the high-profile tower out of fear their purchase of the property would trigger anti-Japanese sentiment . CC JJ NNS VBD RB IN NN IN DT JJ NN IN IN VB PRP$ NN IN DT NN MD VB JJ NN .
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Last summer , Sears appeared to have a deal with Canadian developer Olympia & York Developments Ltd . JJ NN , NNP VBD TO VB DT NN IN JJ NN NNP CC NNP NNP NNP .
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But that deal fell through in September after it became clear that the sale would lead to a major real estate tax reassessment , raising property taxes , and making it difficult to lease the building at competitive prices . CC DT NN VBD IN IN NNP IN PRP VBD JJ IN DT NN MD VB TO DT JJ JJ NN NN NN , VBG NN NNS , CC VBG PRP JJ TO VB DT NN IN JJ NNS .
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Real estate industry executives said Sears ' investment banker , Goldman , Sachs & Co. , sought financing in Japan . JJ NN NN NNS VBD NNP POS NN NN , NNP , NNP CC NNP , VBD NN IN NNP .
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However , Japanese authorities apparently were concerned that a refinancing also would attract too much publicity . RB , JJ NNS RB VBD VBN IN DT NN RB MD VB RB JJ NN .
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Sears then went back to AEW , the Boston pension adviser that had proposed a convertible debt deal during the first round of bids last spring . NNP RB VBD RB TO NNP , DT NNP NN NN WDT VBD VBN DT JJ NN NN IN DT JJ NN IN NNS JJ NN .
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AEW has $ 3.5 billion of real estate investments nationwide , according to a spokesman . NNP VBZ $ CD CD IN JJ NN NNS JJ , VBG TO DT NN .
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Tandy Corp. said it signed a definitive agreement to acquire two units of Datatronic AB of Stockholm for cash . NNP NNP VBD PRP VBD DT JJ NN TO VB CD NNS IN NNP NNP IN NNP IN NN .
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The amount was n't disclosed . DT NN VBD RB VBN .
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The electronics maker and retailer previously estimated the sale price at between $ 100 million and $ 200 million for Datatronic 's Victor microcomputer and Micronic hand-held computer subsidiaries . DT NNS NN CC NN RB VBD DT NN NN IN IN $ CD CD CC $ CD CD IN NNP POS NNP NN CC NNP JJ NN NNS .
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In addition , Tandy will acquire rights to the Victor and Micronic names for computers . IN NN , NNP MD VB NNS TO DT NNP CC NNP NNS IN NNS .
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During 1988 , the Datatronic subsidiaries had combined sales in excess of $ 200 million . IN CD , DT NNP NNS VBD VBN NNS IN NN IN $ CD CD .
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The transaction will give Tandy a well-known European computer brand that includes 2,700 dealers and distributors marketing to medium-sized business and educational institutions . DT NN MD VB NNP DT JJ JJ NN NN WDT VBZ CD NNS CC NNS NN TO JJ NN CC JJ NNS .
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Closing of the transaction is subject to certain conditions and regulatory approvals , the company said . NN IN DT NN VBZ NN TO JJ NNS CC JJ NNS , DT NN VBD .
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Two rules in pending congressional legislation threaten to hinder leveraged buy-outs by raising the price tags of such deals by as much as 10 % . CD NNS IN VBG JJ NN VB TO VB JJ NNS IN VBG DT NN NNS IN JJ NNS IN RB JJ IN CD NN .
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Wall Street is seething over the rules , which would curtail the tax deductibility of debt used in most LBOs . NNP NNP VBZ VBG IN DT NNS , WDT MD VB DT NN NN IN NN VBN IN RBS NNS .
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The provisions , in deficit-reduction bills recently passed by the House and Senate , could further cool the takeover boom that has been the driving force behind the bull market in stocks for much of the 1980s , some tax experts and investment bankers argue . DT NNS , IN NN NNS RB VBN IN DT NNP CC NNP , MD VB VB DT NN NN WDT VBZ VBN DT VBG NN IN DT NN NN IN NNS IN NN IN DT CD , DT NN NNS CC NN NNS VBP .
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Indeed , some investment bankers have already started restructuring deals to cope with the expected rules . RB , DT NN NNS VBP RB VBN NN NNS TO VB IN DT VBN NNS .
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Wall Street has all but conceded on the issue and is now lobbying for the less onerous Senate version of one of the provisions . NNP NNP VBZ DT CC VBN IN DT NN CC VBZ RB VBG IN DT RBR JJ NNP NN IN CD IN DT NNS .
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At issue is the deductibility of certain junk bonds that are used in most LBOs . IN NN VBZ DT NN IN JJ NN NNS WDT VBP VBN IN RBS NNS .
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Such high-yield debt is similar to a zero-coupon bond in that it is sold at a discount to face value , with interest accruing instead of being paid to the holder . JJ JJ NN VBZ JJ TO DT JJ NN IN DT PRP VBZ VBN IN DT NN TO VB NN , IN NN VBG RB IN VBG VBN TO DT NN .
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Under current rules , that accrued interest is deductible by the company issuing the debt . IN JJ NNS , IN VBN NN VBZ JJ IN DT NN VBG DT NN .
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The House version of the legislation would kill that deduction , and label any such debt as equity , which is n't deductible . DT NNP NN IN DT NN MD VB DT NN , CC VB DT JJ NN IN NN , WDT VBZ RB JJ .
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The less-rigorous Senate version would defer the deductibility for roughly five years . DT JJR NNP NN MD VB DT NN IN RB CD NNS .
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`` You see these in just about every LBO , '' said Robert Willens , senior vice president in charge of tax issues at Shearson Lehman Hutton Inc. in New York . `` PRP VBP DT NN RB IN DT NNP , '' VBD NNP NNP , JJ NN NN IN NN IN NN NNS IN NNP NNP NNP NNP IN NNP NNP .
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`` It becomes a source of cash '' for the company making the LBO because it gets a deduction and does n't have to repay the debt for several years . `` PRP VBZ DT NN IN NN '' IN DT NN VBG DT NNP IN PRP VBZ DT NN CC VBZ RB VB TO VB DT NN IN JJ NNS .
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Typically , Mr. Willens estimates , this type of debt makes up 15 % to 20 % of the financing for LBOs . RB , NNP NNP VBZ , DT NN IN NN VBZ IN CD NN TO CD NN IN DT NN IN NNS .
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These types of bonds have been used in buy-outs of companies such as RJR Nabisco Inc. , Storer Communications Inc. and Kroger Co . DT NNS IN NNS VBP VBN VBN IN NNS IN NNS JJ IN NNP NNP NNP , NNP NNP NNP CC NNP NNP .
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A second provision passed by the Senate and House would eliminate a rule allowing companies that post losses resulting from LBO debt to receive refunds of taxes paid over the previous three years . DT JJ NN VBN IN DT NNP CC NNP MD VB DT NN VBG NNS IN NN NNS VBG IN NNP NN TO VB NNS IN NNS VBN IN DT JJ CD NNS .
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For example , if a company posted a loss of $ 100 million from buy-out interest payments , the existing rule would allow the concern to be able to receive a refund from the tax it paid from 1986 through 1989 , when it may have been a profitable public company . IN NN , IN DT NN VBD DT NN IN $ CD CD IN NN NN NNS , DT VBG NN MD VB DT NN TO VB JJ TO VB DT NN IN DT NN PRP VBD IN CD IN CD , WRB PRP MD VB VBN DT JJ JJ NN .
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But that rule is being virtually overlooked by Wall Street , which is concentrating on coping with the deduction issue . CC DT NN VBZ VBG RB VBN IN NNP NNP , WDT VBZ VBG IN VBG IN DT NN NN .
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`` Prices for LBOs have to come down if you do n't have that feature , '' argued Lawrence Schloss , managing director for merchant banking at Donaldson , Lufkin & Jenrette Securities Corp. in New York . `` NNS IN NNS VBP TO VB RB IN PRP VBP RB VB DT NN , '' VBD NNP NNP , VBG NN IN NN NN IN NNP , NNP CC NNP NNP NNP IN NNP NNP .
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Several Wall Street officials say the proposed legislation already is having an impact . NNP NNP NNP NNS VBP DT VBN NN RB VBZ VBG DT NN .
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An investment group led by Chicago 's Pritzker family recently lowered a $ 3.35 billion bid for American Medical International , Beverly Hills , Calif. , because of the threat of the legislation . DT NN NN VBN IN NNP POS NNP NN RB VBD DT $ CD CD NN IN NNP NNP NNP , NNP NNP , NNP , IN IN DT NN IN DT NN .
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Moreover , one investment banker , who requested anonymity , said his firm did n't raise the ante for a target company earlier this month after a stronger bid emerged from a public company that was n't concerned about the financing provision . RB , CD NN NN , WP VBD NN , VBD PRP$ NN VBD RB VB DT NN IN DT NN NN RBR DT NN IN DT JJR NN VBD IN DT JJ NN WDT VBD RB VBN IN DT NN NN .
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`` We would have paid more if we thought that law was n't going to pass , '' he said . `` PRP MD VB VBN JJR IN PRP VBD DT NN VBD RB VBG TO VB , '' PRP VBD .
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One possible solution for Wall Street is to increase the equity part of the transaction -- that is , give lenders a bigger stake in the surviving company rather than just interest payments . CD JJ NN IN NNP NNP VBZ TO VB DT NN NN IN DT NN : DT VBZ , VB NNS DT JJR NN IN DT VBG NN RB IN RB NN NNS .
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That would force the buy-out firm and the target company 's management to reduce their level of ownership . DT MD VB DT NN NN CC DT NN NN POS NN TO VB PRP$ NN IN NN .
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`` The pigs in the trough may have to give a little bit of the slop back and then the deal can go through , '' said Peter C. Canellos , tax partner at Wachtell , Lipton , Rosen & Katz . `` DT NNS IN DT NN MD VB TO VB DT JJ NN IN DT NN RB CC RB DT NN MD VB IN , '' VBD NNP NNP NNP , NN NN IN NNP , NNP , NNP CC NNP .
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Another solution , said a tax lawyer who requested anonymity , is for firms to use convertible bonds that sell at a discount . DT NN , VBD DT NN NN WP VBD NN , VBZ IN NNS TO VB JJ NNS WDT VBP IN DT NN .
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Since they have a lower interest rate , they would n't fall under the junk-bond category that would lose its deductibility . IN PRP VBP DT JJR NN NN , PRP MD RB VB IN DT NN NN WDT MD VB PRP$ NN .
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The House version of the bill would make debt non-deductible if it pays five percentage points above Treasury notes , has at least a five-year maturity and does n't pay interest for at least one year out of the first five . DT NNP NN IN DT NN MD VB NN JJ IN PRP VBZ CD NN NNS IN NNP NNS , VBZ IN JJS DT JJ NN CC VBZ RB VB NN IN IN JJS CD NN IN IN DT JJ CD .
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The bill would then declare that the debt is equity and therefore is n't deductible . DT NN MD RB VB IN DT NN VBZ NN CC RB VBZ RB JJ .
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The Senate bill would only deny the deduction until interest is actually paid . DT NNP NN MD RB VB DT NN IN NN VBZ RB VBN .
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Currently , even though the issuer does n't pay tax , the debt holder is taxed on the accrued interest . RB , RB IN DT NN VBZ RB VB NN , DT NN NN VBZ VBN IN DT VBN NN .
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But those holders are often foreign investors and tax-exempt pension funds that do n't pay taxes on their holdings . CC DT NNS VBP RB JJ NNS CC JJ NN NNS WDT VBP RB VB NNS IN PRP$ NNS .
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The Senate estimates that its version of the provision would yield $ 17 million the first year and a total of $ 409 million over five years . DT NNP NNS IN PRP$ NN IN DT NN MD VB $ CD CD DT JJ NN CC DT NN IN $ CD CD IN CD NNS .
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The House version would raise slightly more . DT NNP NN MD VB RB JJR .
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Even if Wall Street finds ways around the new rules , a Senate aide contends LBOs will become somewhat more difficult . RB IN NNP NNP VBZ NNS IN DT JJ NNS , DT NNP NN VBZ NNS MD VB RB RBR JJ .
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`` There 's no question it will make LBOs more expensive , '' he said . `` EX VBZ DT NN PRP MD VB NNS RBR JJ , '' PRP VBD .
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`` The interest deduction was the engine that made these things more productive . `` DT NN NN VBD DT NN WDT VBD DT NNS RBR JJ .
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The average publicly offered commodity fund fell 4.2 % in September , largely because of the volatile markets in foreign currencies , according to Norwood Securities . DT JJ RB VBN NN NN VBD CD NN IN NNP , RB IN IN DT JJ NNS IN JJ NNS , VBG TO NNP NNPS .
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The firm said that losers outnumbered gainers by more than three to one among the 122 funds it tracks . DT NN VBD IN NNS VBD NNS IN JJR IN CD TO CD IN DT CD NNS PRP VBZ .
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For the first nine months of the year , Norwood said the average fund has lost 3.3 % . IN DT JJ CD NNS IN DT NN , NNP VBD DT JJ NN VBZ VBN CD NN .
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The government moved aggressively to open the spigots of federal aid for victims of the California earthquake , but its reservoir of emergency funds must be replenished soon if the aid is to continue . DT NN VBD RB TO VB DT NNS IN JJ NN IN NNS IN DT NNP NN , CC PRP$ NN IN NN NNS MD VB VBN RB IN DT NN VBZ TO VB .
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President Bush signed a disaster declaration covering seven Northern California counties . NNP NNP VBD DT NN NN VBG CD NNP NNP NNS .
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The declaration immediately made the counties eligible for temporary housing , grants and low-cost loans to cover uninsured property losses . DT NN RB VBD DT NNS JJ IN JJ NN , NNS CC JJ NNS TO VB JJ NN NNS .
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In addition , an unusually wide array of federal agencies moved to provide specialized assistance . IN NN , DT RB JJ NN IN JJ NNS VBD TO VB JJ NN .
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The Department of Housing and Urban Development prepared to make as many as 100 vacant houses available for those left homeless , the Agriculture Department was set to divert food from the school-lunch program to earthquake victims , and the Pentagon was providing everything from radio communications to blood transfusions to military police for directing traffic . DT NNP IN NNP CC NNP NNP VBD TO VB RB JJ IN CD JJ NNS JJ IN DT VBN JJ , DT NNP NNP VBD VBN TO VB NN IN DT NN NN TO NN NNS , CC DT NNP VBD VBG NN IN NN NNS TO NN NNS TO JJ NN IN VBG NN .
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But the pool of federal emergency-relief funds already is running low because of the heavy costs of cleaning up Hurricane Hugo , and Congress will be under pressure to allocate more money quickly . CC DT NN IN JJ NN NNS RB VBZ VBG JJ IN IN DT JJ NNS IN NN IN NNP NNP , CC NNP MD VB IN NN TO VB JJR NN RB .
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In Hugo 's wake , Congress allocated $ 1.1 billion in relief funds , and White House spokesman Marlin Fitzwater said $ 273 million of that money remains and could be diverted for quick expenditures related to the earthquake . IN NNP POS NN , NNP VBD $ CD CD IN NN NNS , CC NNP NNP NN NNP NNP VBD $ CD CD IN DT NN VBZ CC MD VB VBN IN JJ NNS VBN TO DT NN .
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Now , though , enormous costs for earthquake relief will pile on top of outstanding costs for hurricane relief . RB , RB , JJ NNS IN NN NN MD VB IN NN IN JJ NNS IN NN NN .
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`` That obviously means that we wo n't have enough for all of the emergencies that are now facing us , and we will have to consider appropriate requests for follow-on funding , '' Mr. Fitzwater said . `` DT RB VBZ IN PRP MD RB VB RB IN DT IN DT NNS WDT VBP RB VBG PRP , CC PRP MD VB TO VB JJ NNS IN JJ NN , '' NNP NNP VBD .
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The federal government is n't even attempting yet to estimate how much the earthquake will cost it . DT JJ NN VBZ RB RB VBG RB TO VB WRB JJ DT NN MD VB PRP .
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But Mr. Fitzwater said , `` There will be , I think quite obviously , a very large amount of money required from all levels of government . '' CC NNP NNP VBD , `` EX MD VB , PRP VBP RB RB , DT RB JJ NN IN NN VBN IN DT NNS IN NN . ''
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In Congress , lawmakers already are looking for ways to add relief funds . IN NNP , NNS RB VBP VBG IN NNS TO VB NN NNS .
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Money could be added to a pending spending bill covering the Federal Emergency Management Agency , which coordinates federal disaster relief . NNP MD VB VBN TO DT VBG NN NN VBG DT NNP NNP NNP NNP , WDT VBZ JJ NN NN .
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More likely , relief funds could be added to an omnibus spending bill that Congress is to begin considering next week . RBR JJ , NN NNS MD VB VBN TO DT JJ NN NN IN NNP VBZ TO VB VBG JJ NN .
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But it is n't just Washington 's relief dollars that are spread thin ; its relief manpower also is stretched . CC PRP VBZ RB RB NNP POS NN NNS WDT VBP NN JJ : PRP$ NN NN RB VBZ VBN .
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FEMA still has special disaster centers open to handle the aftermath of Hugo , and spokesman Russell Clanahan acknowledged that `` we 're pretty thin . '' NNP RB VBZ JJ NN NNS JJ TO VB DT NN IN NNP , CC NN NNP NNP VBD IN `` PRP VBP RB JJ . ''
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Mr. Clanahan says FEMA now possibly may have the heaviest caseload in its history . NNP NNP VBZ NNP RB RB MD VB DT JJS NN IN PRP$ NN .
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To further complicate relief efforts , the privately funded American Red Cross also finds itself strapped for funds after its big Hugo operation . TO VB VB NN NNS , DT RB VBN NNP NNP NNP RB VBZ PRP VBD IN NNS IN PRP$ JJ NNP NN .
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`` It 's been a bad month money-wise and every other way , '' said Sally Stewart , a spokeswoman for the Red Cross . `` PRP VBZ VBN DT JJ NN JJ CC DT JJ NN , '' VBD NNP NNP , DT NN IN DT NNP NNP .
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`` It just makes it a little rough when you have to worry about the budget . '' `` PRP RB VBZ PRP DT JJ JJ WRB PRP VBP TO VB IN DT NN . ''
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The Red Cross has opened 30 shelters in the Bay area , serving 5,000 people . DT NNP NNP VBZ VBN CD NNS IN DT NNP NN , VBG CD NNS .
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Twenty-five trucks capable of cooking food were dispatched from other states . CD NNS JJ IN NN NN VBD VBN IN JJ NNS .
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All the precise types of federal aid that will be sent to California wo n't be determined until state officials make specific requests to FEMA , agency officials said . DT DT JJ NNS IN JJ NN WDT MD VB VBN TO NNP MD RB VB VBN IN NN NNS VBP JJ NNS TO NNP , NN NNS VBD .
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And in the confusion after the earthquake , `` the information flow is a little slow coming in from the affected area , '' said Carl Suchocki , a FEMA spokesman . CC IN DT NN IN DT NN , `` DT NN NN VBZ DT JJ JJ NN IN IN DT VBN NN , '' VBD NNP NNP , DT NNP NN .
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Still , some aid is moving westward from Washington almost immediately . RB , DT NN VBZ VBG RB IN NNP RB RB .
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HUD officials said they will make available as many as 100 Bay area houses that are under HUD loans but now are vacant after the houses have been inspected to ensure they are sound . NNP NNS VBD PRP MD VB JJ RB JJ IN CD NNP NN NNS WDT VBP IN NNP NNS CC RB VBP JJ IN DT NNS VBP VBN VBN TO VB PRP VBP NN .
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Additional housing vouchers and certificates will be made available , officials said , and some housing and community-development funds may be shifted from other programs or made available for emergency use . JJ NN NNS CC NNS MD VB VBN JJ , NNS VBD , CC DT NN CC NN NNS MD VB VBN IN JJ NNS CC VBN JJ IN NN NN .
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Another federal agency not normally associated with disaster relief -- the Internal Revenue Service -- moved quickly as well . DT JJ NN RB RB VBN IN NN NN : DT NNP NNP NNP : VBD RB IN RB .
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The IRS said it will waive certain tax penalties for earthquake victims unable to meet return deadlines or make payments because of the quake 's devastation . DT NNP VBD PRP MD VB JJ NN NNS IN NN NNS JJ TO VB NN NNS CC VB NNS IN IN DT NN POS NN .
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The agency plans to announce specific relief procedures in the coming days . DT NN NNS TO VB JJ NN NNS IN DT VBG NNS .
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And the Treasury said residents of the San Francisco area will be able to cash in savings bonds even if they have n't held them for the minimum six-month period . CC DT NNP VBD NNS IN DT NNP NNP NN MD VB JJ TO VB IN NNS NNS RB IN PRP VBP RB VBN PRP IN DT JJ JJ NN .
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One advantage that federal officials have in handling earthquake relief is the large number of military facilities in the San Francisco Bay area , facilities that provide a ready base of supplies and workers . CD NN IN JJ NNS VBP IN NN NN NN VBZ DT JJ NN IN JJ NNS IN DT NNP NNP NNP NN , NNS WDT VBP DT JJ NN IN NNS CC NNS .
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Even before the full extent of the devastation was known , Defense Secretary Dick Cheney ordered the military services to set up an emergency command center in the Pentagon and prepare to respond to various FEMA requests for assistance . RB IN DT JJ NN IN DT NN VBD VBN , NNP NNP NNP NNP VBD DT JJ NNS TO VB IN DT NN NN NN IN DT NNP CC VB TO VB TO JJ NNP NNS IN NN .
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By yesterday afternoon , Air Force transport planes began moving additional rescue and medical supplies , physicians , communications equipment and FEMA personnel to California . IN NN NN , NNP NNP NN NNS VBD VBG JJ NN CC JJ NNS , NNS , NNS NN CC NNP NNS TO NNP .
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A military jet flew a congressional delegation and senior Bush administration officials to survey the damage . DT JJ NN VBD DT JJ NN CC JJ NNP NN NNS TO VB DT NN .
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And the Pentagon said dozens of additional crews and transport aircraft were on alert `` awaiting orders to move emergency supplies . '' CC DT NNP VBD NNS IN JJ NNS CC NN NN VBD IN JJ `` VBG NNS TO VB NN NNS . ''
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Two Air Force facilities near Sacramento , and Travis Air Force Base , 50 miles northeast of San Francisco , were designated to serve as medical-airlift centers . CD NNP NNP NNS IN NNP , CC NNP NNP NNP NNP , CD NNS NN IN NNP NNP , VBD VBN TO VB IN NN NNS .
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Some victims also were treated at the Letterman Army Medical Center in San Francisco and at the Naval Hospital in Oakland . DT NNS RB VBD VBN IN DT NNP NNP NNP NNP IN NNP NNP CC IN DT NNP NNP IN NNP .
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In addition , 20 military police from the Presidio , a military base in San Francisco , are assisting with traffic control , and a Navy ship was moved from a naval station at Treasure Island near the Bay Bridge to San Francisco to help fight fires . IN NN , CD JJ NN IN DT NNP , DT JJ NN IN NNP NNP , VBP VBG IN NN NN , CC DT NNP NN VBD VBN IN DT JJ NN IN NNP NNP IN DT NNP NNP TO NNP NNP TO VB VB NNS .
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To help residents in Northern California rebuild , FEMA intends to set up 17 disaster assistance offices in the earthquake area in the next several days and to staff them with 400 to 500 workers from various agencies , said Robert Volland , chief of the agency 's individual assistance division . TO VB NNS IN NNP NNP VB , NNP VBZ TO VB IN CD NN NN NNS IN DT NN NN IN DT JJ JJ NNS CC TO VB PRP IN CD TO CD NNS IN JJ NNS , VBD NNP NNP , NN IN DT NN POS JJ NN NN .
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At these offices , earthquake victims will be helped in filling out a one-page form that they will need to qualify for such federal assistance as home-improvement loans and to repair houses . IN DT NNS , NN NNS MD VB VBN IN VBG RP DT JJ NN IN PRP MD VB TO VB IN JJ JJ NN IN NN NNS CC TO VB NNS .
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And federal officials are promising to move rapidly with federal highway aid to rebuild the area 's severely damaged road system . CC JJ NNS VBP JJ TO VB RB IN JJ NN NN TO VB DT NN POS RB VBN NN NN .
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The Federal Highway Administration has an emergency relief program to help states and local governments repair federally funded highways and bridges seriously damaged by natural disasters . DT NNP NNP NNP VBZ DT NN NN NN TO VB NNS CC JJ NNS VBP RB VBN NNS CC NNS RB VBN IN JJ NNS .
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The account currently has $ 220 million . DT NN RB VBZ $ CD CD .
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And though federal law dictates that only $ 100 million can be disbursed from that fund in any one state per disaster , administration officials expect Congress to move in to authorize spending more now in California . CC IN JJ NN NNS IN RB $ CD CD MD VB VBN IN DT NN IN DT CD NN IN NN , NN NNS VBP NNP TO VB IN TO VB NN RBR RB IN NNP .
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To get that money , states must go through an elaborate approval process , but officials expect red tape to be cut this time . TO VB DT NN , NNS MD VB IN DT JJ NN NN , CC NNS VBP JJ NN TO VB VBN DT NN .
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Keith Mulrooney , special assistant to Federal Highway Administrator Thomas Larson , also said that after the 1971 San Fernando earthquake in Southern California , the state set tougher standards for bridges , and with federal aid , began a program to retrofit highways and bridges for earthquake hazards . NNP NNP , JJ NN TO NNP NNP NNP NNP NNP , RB VBD IN IN DT CD NNP NNP NN IN NNP NNP , DT NN VBN JJR NNS IN NNS , CC IN JJ NN , VBD DT NN TO VB NNS CC NNS IN NN NNS .
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The first phase of the program has been completed , but two other phases are continuing . DT JJ NN IN DT NN VBZ VBN VBN , CC CD JJ NNS VBP VBG .
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The two major structures that failed Tuesday night , he said , were both built well before the 1971 earthquake -- the San Francisco Bay Bridge , completed in the 1930s , and the section of I-880 , built in the 1950s . DT CD JJ NNS WDT VBD NNP NN , PRP VBD , VBD DT VBN RB IN DT CD NN : DT NNP NNP NNP NNP , VBN IN DT CD , CC DT NN IN NN , VBN IN DT CD .
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The I-880 section had completed the first phase of the retrofitting . DT NN NN VBD VBN DT JJ NN IN DT NN .
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Laurie McGinley contributed to this article . NNP NNP VBD TO DT NN .
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FARMERS REAP abundant crops . NNS VBP JJ NNS .
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But how much will shoppers benefit ? CC WRB JJ MD NNS VB .
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The harvest arrives in plenty after last year 's drought-ravaged effort : The government estimates corn output at 7.45 billion bushels , up 51 % from last fall . DT NN VBZ IN NN IN JJ NN POS JJ NN : DT NN NNS NN NN IN CD CD NNS , IN CD NN IN JJ NN .
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Soybean production swells 24 % . NN NN NNS CD NN .
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As a result , prices paid to farmers for the commodities , which are used in products as diverse as bubble gum and chicken feed , plummet 20 % to 33 % . IN DT NN , NNS VBN TO NNS IN DT NNS , WDT VBP VBN IN NNS RB JJ IN NN NN CC NN NN , VB CD NN TO CD NN .
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But do n't expect too much in the way of price breaks soon at the supermarket . CC VBP RB VB RB JJ IN DT NN IN NN NNS RB IN DT NN .
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Economists expect consumer food prices to jump 5.5 % this year to the highest level since 1980 and up from last year 's 4.1 % rise . NNS VBP NN NN NNS TO VB CD NN DT NN TO DT JJS NN IN CD CC IN IN JJ NN POS CD NN NN .
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Next year may see a drop of one percentage point . JJ NN MD VB DT NN IN CD NN NN .
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Beef prices , hovering near records since the drought , could drop in earnest this winter if ranchers expand herds . NN NNS , VBG IN NNS IN DT NN , MD VB IN NN DT NN IN NNS VBP NNS .
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Lower feed prices may help animals eat more cheaply , but humans have to factor in an expensive middleman : the processor . JJR NN NNS MD VB NNS VB RBR RB , CC NNS VBP TO VB IN DT JJ NN : DT NN .
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Food companies probably wo n't cut their prices much , blaming other costs . NN NNS RB MD RB VB PRP$ NNS JJ , VBG JJ NNS .
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`` Labor takes the biggest single chunk out of the ` food dollar , ' '' says Frank Pankyo of the Food Institute . `` NNP VBZ DT JJS JJ NN IN IN DT `` NN NN , '' '' VBZ NNP NNP IN DT NNP NNP .
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Stokely says stores revive specials like three cans of peas for 99 cents . NNP VBZ NNS VBP NNS IN CD NNS IN NNS IN CD NNS .
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Two cans cost 89 cents during the drought . CD NNS VBP CD NNS IN DT NN .
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IF IN VITRO fertilization works , it usually does so after only a few tries . IN IN NNP NN NNS , PRP RB VBZ RB IN RB DT JJ NNS .
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Costly infertility problems and procedures proliferate as aging baby boomers and others decide to have children -- now . JJ NN NNS CC NNS VBP IN VBG NN NNS CC NNS VBP TO VB NNS : RB .
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It 's estimated that one in six couples experiences infertility , and in 1987 , Americans spent about $ 1 billion to fight the problem . PRP VBZ VBN IN CD IN CD NNS NNS NN , CC IN CD , NNPS VBD RB $ CD CD TO VB DT NN .
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Only about five states now offer some form of insurance coverage , but more are expected . RB IN CD NNS JJ NN DT NN IN NN NN , CC RBR VBP VBN .
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A letter in the New England Journal of Medicine notes that while technology offers `` almost endless hope ... when to stop has become a difficult question ... . '' DT NN IN DT NNP NNP NNP IN NNP NNS IN IN NN VBZ `` RB JJ NN : WRB TO VB VBZ VBN DT JJ NN : . ''
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The authors , from Boston 's Beth Israel Hospital , say that 84 % of the 50 births they followed occurred after only two in vitro cycles . DT NNS , IN NNP POS NNP NNP NNP , VBP IN CD NN IN DT CD NNS PRP VBD VBN IN RB CD IN FW NNS .
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It adds that births were `` extremely unlikely '' after the fourth cycle and concludes couples who do n't achieve a pregnancy after four to six procedures should be advised that success is unlikely . PRP VBZ IN NNS VBD `` RB JJ '' IN DT JJ NN CC VBZ NNS WP VBP RB VB DT NN IN CD TO CD NNS MD VB VBN DT NN VBZ JJ .
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Some couples continue to try . DT NNS VBP TO VB .
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`` Such determination may translate into extreme physical , emotional and financial costs , '' the letter warns . `` JJ NN MD VB IN JJ NN , JJ CC JJ NNS , '' DT NN VBZ .
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MARKET MOVES , these managers do n't . NNP VBZ , DT NNS VBP RB .
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Only three of the 25 corporate pension fund managers attending a Lowry Consulting Group client conference say they plan to change the asset allocation mix in their portfolios because of the market drop . RB CD IN DT CD JJ NN NN NNS VBG DT NNP NNP NNP NN NN VBP PRP VBP TO VB DT NN NN NN IN PRP$ NNS IN IN DT NN NN .
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WORLD ODDITIES come alive in a multimedia version of the Guinness Book of Records . NN NNS VBP JJ IN DT NNS NN IN DT NNP NNP IN NNPS .
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The $ 99 CD-ROM disk -LRB- it can only be played on an Apple Macintosh computer at the moment -RRB- combines animation , music and sound . DT $ CD NNP NN ( PRP MD RB VB VBN IN DT NNP NNP NN IN DT NN ) VBZ NN , NN CC NN .
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Among the Guinness disk 's wonders : the world 's loudest recorded belch . IN DT NNP NN POS NNS : DT NN POS RBS VBN NN .
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ARTY FAX from David Hockney begins a tongue-in-cheek exhibit today at New York 's Andre Emmerich Gallery . NNP NNP IN NNP NNP VBZ DT JJ NN NN IN NNP NNP POS NNP NNP NNP .
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One of the artist 's earliest Fax works was `` Little Stanley Sleeping , '' a portrait of his dog . CD IN DT NN POS JJS NNP NNS VBD `` NNP NNP NNP , '' DT NN IN PRP$ NN .
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PACS GIVE and receive in a debatable duet with employees ' favored charities . NNS VBP CC VB IN DT JJ NN IN NNS POS VBN NNS .
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The Federal Election Commission clears corporate plans to donate to an employee 's chosen charity in exchange for the worker 's gift to the company political action committee . DT NNP NNP NNP VBZ JJ NNS TO VB TO DT NN POS VBN NN IN NN IN DT NN POS NN TO DT NN JJ NN NN .
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Latest approvals : Bell Atlantic 's New Jersey Bell and General Dynamics . JJS NNS : NNP NNP POS NNP NNP NNP CC NNP NNP .
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Companies get more political clout plus a possible tax-deductible charitable donation -- so far no word from the IRS on deductibility . NNS VBP RBR JJ NN CC DT JJ JJ JJ NN : RB RB DT NN IN DT NNP IN NN .
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Detroit Edison , the plan pioneer , generated $ 54,000 in matching funds this year , up from $ 39,000 in 1988 . NNP NNP , DT NN NN , VBD $ CD IN VBG VBZ DT NN , IN IN $ CD IN CD .
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But the utility may not continue next year . CC DT NN MD RB VB JJ NN .
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`` We 're on a tight budget , '' says Detroit Edison 's Carol Roskind . `` PRP VBP IN DT JJ NN , '' VBZ NNP NNP POS NNP NNP .
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Two election commission members opposed the matching plans . CD NN NN NNS VBD DT VBG NNS .
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Scott E. Thomas says the plans give employees `` a bonus in the form of charitable donations made from an employer 's treasury '' in exchange for the political donation . NNP NNP NNP VBZ DT NNS VBP NNS `` DT NN IN DT NN IN JJ NNS VBN IN DT NN POS NN '' IN NN IN DT JJ NN .
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`` The U.S. government could be , in effect , subsidizing political contributions to corporate PACs , '' he says . `` DT NNP NN MD VB , IN NN , VBG JJ NNS TO JJ NNPS , '' PRP VBZ .
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New Jersey Bell awaits state clearance . NNP NNP NNP VBZ NN NN .
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Despite federal approval , General Dynamics says it decided it wo n't go ahead with the matching program . IN JJ NN , NNP NNP VBZ PRP VBD PRP MD RB VB RB IN DT VBG NN .
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CHRISTMAS SHOPPERS find a helping hand from some catalog companies . NNP NNS VBP DT VBG NN IN DT NN NNS .
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Blunt Ellis & Loewi estimates direct mail catalog sales rose to $ 12 billion last year . NNP NNP CC NNP NNS JJ NN NN NNS VBD TO $ CD CD JJ NN .
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And while it 's too soon to tell how sales will fare in the important 1989 Christmas season , some companies take steps to ease the usual 11th-hour crush . CC IN PRP VBZ RB RB TO VB WRB NNS MD VB IN DT JJ CD NNP NN , DT NNS VBP NNS TO VB DT JJ JJ NN .
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Spiegel promises a `` Guaranteed Christmas , '' with a pledge to deliver goods before Christmas if ordered by Dec. 20 . NNP VBZ DT `` VBN NNP , '' IN DT NN TO VB NNS IN NNP IN VBN IN NNP CD .
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And , for an extra $ 6 , Land 's End will deliver orders within two days ; customers can designate the day . CC , IN DT JJ $ CD , NNP POS NN MD VB NNS IN CD NNS : NNS MD VB DT NN .
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Spiegel , which also owns Eddie Bauer and Honeybee , says that since 1987 , sales have doubled during the week before Christmas . NNP , WDT RB VBZ NNP NNP CC NNP , VBZ IN IN CD , NNS NN VBN IN DT NN IN NNP .
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An L.L. Bean spokeswoman notes : `` People are just used to living in a last-minute society . '' DT NNP NNP NN NNS : `` NNS VBP RB VBN TO VBG IN DT JJ NN . ''
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Blunt Ellis , a Milwaukee brokerage firm , says part of the reason catalog sales grow in popularity is because consumers have more money but less time to spend it . NNP NNP , DT NNP NN NN , VBZ NN IN DT NN NN NNS VBP IN NN VBZ IN NNS VBP JJR NN CC JJR NN TO VB PRP .
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L.L. Bean hires about 2,700 workers for the season rush , about 300 more than last year ; Land 's End hires 2,000 . NNP NNP VBZ IN CD NNS IN DT NN NN , IN CD JJR IN JJ NN : NNP POS NN VBZ CD .
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BRIEFS : NNS :
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Guarana Antarctica , a Brazilian soft drink , is brought to the U.S. by Amcap , Chevy Chase , Md . NNP NNP , DT JJ JJ NN , VBZ VBN TO DT NNP IN NNP , NNP NNP , NNP .
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New Product News says the beverage `` looks like ginger ale , tastes a little like cherries and smells like bubble gum . '' ... NNP NNP NNP VBZ DT NN `` VBZ IN NN NN , VBZ DT JJ IN NNS CC VBZ IN NN NN . '' :
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`` Amenities '' planned for Chicago 's new Parkshore Tower apartments include an on-site investment counselor . `` NNS '' VBN IN NNP POS JJ NNP NNP NNS VBP DT JJ NN NN .
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Four years ago , Pittsburgh was designated the most-livable U.S. city by Rand McNally 's Places Rated Almanac , and the honor did wonders to improve Pittsburgh 's soot-stained image . CD NNS RB , NNP VBD VBN DT JJS NNP NN IN NNP NNP POS NNS VBN NNP , CC DT NN VBD NNS TO VB NNP POS JJ NN .
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`` People asked , is it really true ? '' says Maury Kelley , vice president , marketing services , for Beecham Products USA , a maker of health and personal-care products that used the ranking in its recruiting brochure . `` NNS VBD , VBZ PRP RB JJ . '' VBZ NNP NNP , NN NN , NN NNS , IN NNP NNP NNP , DT NN IN NN CC JJ NNS WDT VBD DT NN IN PRP$ NN NN .
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Yuba City , Calif. , meanwhile , ranked dead last among 329 metro areas . NNP NNP , NNP , RB , VBD JJ NN IN CD NN NNS .
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Unamused , residents burned Rand McNally books and wore T-shirts that said : `` Kiss my Atlas . '' JJ , NNS VBD NNP NNP NNS CC VBD NNS WDT VBD : `` VB PRP$ NNP . ''
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The almanac will be making new friends and enemies on Oct. 27 , when an updated version will be released . DT NN MD VB VBG JJ NNS CC NNS IN NNP CD , WRB DT VBN NN MD VB VBN .
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Pittsburgh figures it will be dethroned but plans to accept its ouster graciously . NNP NNS PRP MD VB VBN CC NNS TO VB PRP$ NN RB .
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The city 's Office of Promotion plans media events to welcome its successor . DT NN POS NNP IN NNP VBZ NNS NNS TO VB PRP$ NN .
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`` We 're encouraging a graceful transition , '' says Mary Kay Poppenberg , the organization 's president . `` PRP VBP VBG DT JJ NN , '' VBZ NNP NNP NNP , DT NN POS NN .
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`` Our attitude is that -LRB- the ranking -RRB- is like Miss America . `` PRP$ NN VBZ IN ( DT JJ ) VBZ IN NNP NNP .
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Once you 're Miss America , you 're always Miss America . '' RB PRP VBP NNP NNP , PRP VBP RB NNP NNP . ''
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Tell that to Atlanta , which Pittsburgh replaced as the most-livable city in 1985 . VB IN TO NNP , WDT NNP VBD IN DT JJS NN IN CD .
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Many Atlantans thought Pittsburgh was an unworthy heir . JJ NNPS VBD NNP VBD DT JJ NN .
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A columnist in the Atlanta Journal and Constitution wrote : `` Who did the research for this report ? DT NN IN DT NNP NNP CC NNP VBD : `` WP VBD DT NN IN DT NN .
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Two guys from Gary , Ind. ? '' CD NNS IN NNP , NNP . ''
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Not so . RB RB .
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Co-authors David Savageau and Richard Boyer , live in Gloucester , Mass. , and Asheville , N.C. , respectively . NNS NNP NNP CC NNP NNP , VB IN NNP , NNP , CC NNP , NNP , RB .
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`` Atlanta , '' Mr. Savageau sniffs , `` has unrealistic pretensions to world-class status . '' `` NNP , '' NNP NNP VBZ , `` VBZ JJ NNS TO JJ NN . ''
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The new edition lists the top 10 metropolitan areas as Anaheim-Santa Ana , Calif. ; Boston ; Louisville , Ky. ; Nassau-Suffolk , N.Y. ; New York ; Pittsburgh ; San Diego ; San Francisco ; Seattle ; and Washington . DT JJ NN VBZ DT JJ CD JJ NNS IN NNP NNP , NNP : NNP : NNP , NNP : NNP , NNP : NNP NNP : NNP : NNP NNP : NNP NNP : NNP : CC NNP .
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Mr. Savageau says earthquake or not , San Francisco makes the list . NNP NNP VBZ NN CC RB , NNP NNP VBZ DT NN .
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But attention also rivets on who finishes last , and Pine Bluff , Ark. -- which finished third to last in 1981 and second to last in 1985 -- is certainly in the running . CC NN RB VBZ IN WP VBZ JJ , CC NNP NNP , NNP : WDT VBD JJ TO VB IN CD CC JJ TO VB IN CD : VBZ RB IN DT NN .
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`` I hate to dignify the publication by commenting on the obscene rating , '' Mayor Carolyn Robinson says , adding that cities have no way to rebut the book . `` PRP VBP TO VB DT NN IN VBG IN DT JJ NN , '' NNP NNP NNP VBZ , VBG IN NNS VBP DT NN TO VB DT NN .
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`` It 's like fighting your way out of a fog . `` PRP VBZ IN VBG PRP$ NN IN IN DT NN .
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You do n't know which way to punch . PRP VBP RB VB WDT NN TO VB .
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Northrop Corp. 's third-quarter net income fell 25 % to $ 21.5 million , or 46 cents a share , while General Dynamics Corp. reported nearly flat earnings of $ 76.5 million , or $ 1.83 a share . NNP NNP POS JJ JJ NN VBD CD NN TO $ CD CD , CC CD NNS DT NN , IN NNP NNP NNP VBD RB JJ NNS IN $ CD CD , CC $ CD DT NN .
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Los Angeles-based Northrop recorded an 8.2 % decline in sales as B-2 Stealth bomber research-and-development revenue continued to ebb and high costs on some other programs cut into profit . NNP JJ NNP VBD DT CD NN NN IN NNS IN NNP NNP NN NN NN VBD TO VB CC JJ NNS IN DT JJ NNS VBP IN NN .
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The aerospace concern earned $ 28.8 million , or 61 cents a share , a year earlier . DT NN NN VBD $ CD CD , CC CD NNS DT NN , DT NN RBR .
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Sales in the latest period were $ 1.25 billion , down from $ 1.36 billion in the 1988 quarter . NNS IN DT JJS NN VBD $ CD CD , RB IN $ CD CD IN DT CD NN .
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At St. Louis-based General Dynamics , sales rose 10 % to $ 2.52 billion from $ 2.29 billion . IN NNP JJ NNP NNP , NNS VBD CD NN TO $ CD CD IN $ CD CD .
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It earned $ 76.4 million , or $ 1.82 a share , in the 1988 quarter . PRP VBD $ CD CD , CC $ CD DT NN , IN DT CD NN .
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General Dynamics credited significant earnings gains in its general aviation and material service segments , an earnings recovery in submarine operations , and higher military aircraft sales . NNP NNP VBD JJ NNS NNS IN PRP$ JJ NN CC NN NN NNS , DT NNS NN IN NN NNS , CC JJR JJ NN NNS .
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Northrop said sales fell because of the decline in B-2 development dollars from the government as the plane continues its initial production stage and because fewer F\/A-18 fighter sections are being produced in its subcontract work with prime contractor McDonnell Douglas Corp . NNP VBD NNS VBD IN IN DT NN IN NNP NN NNS IN DT NN IN DT NN VBZ PRP$ JJ NN NN CC IN JJR NNP NN NNS VBP VBG VBN IN PRP$ NN NN IN JJ NN NNP NNP NNP .
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In composite trading on the New York Stock Exchange , Northrop shares closed at $ 21.125 , off 25 cents . IN JJ NN IN DT NNP NNP NNP NNP , NNP NNS VBD IN $ CD , IN CD NNS .
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General Dynamics closed at $ 54.875 , up 50 cents . NNP NNP VBD IN $ CD , IN CD NNS .
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Northrop , which since early 1988 has declined to accept fixed-price contracts for research and development , said earnings were hurt by excessive costs on a number of such contracts won years ago . NNP , WDT IN JJ CD VBZ VBN TO VB JJ NNS IN NN CC NN , VBD NNS VBD VBN IN JJ NNS IN DT NN IN JJ NNS VBD NNS RB .
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Among them were the ALQ-135 electronic countermeasures system for the F-15 fighter . IN PRP VBD DT NN JJ NNS NN IN DT NNP NN .
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Northrop 's interest expense also soared to $ 35 million from $ 17 million a year ago . NNP POS NN NN RB VBD TO $ CD CD IN $ CD CD DT NN RB .
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It said debt remained at the $ 1.22 billion that has prevailed since early 1989 , although that compared with $ 911 million at Sept. 30 , 1988 . PRP VBD NN VBD IN DT $ CD CD WDT VBZ VBN IN JJ CD , IN DT VBD IN $ CD CD IN NNP CD , CD .
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The backlog of undelivered orders at Northrop on Sept. 30 was $ 4.68 billion , down from $ 5.16 billion a year earlier . DT NN IN JJ NNS IN NNP IN NNP CD VBD $ CD CD , RB IN $ CD CD DT NN RBR .
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For the nine months , Northrop reported a net loss of $ 46.9 million , or $ 1 a share , compared with profit of $ 190.3 million , or $ 4.05 a share , in 1988 . IN DT CD NNS , NNP VBD DT JJ NN IN $ CD CD , CC $ CD DT NN , VBN IN NN IN $ CD CD , CC $ CD DT NN , IN CD .
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Sales dipped 3.6 % to $ 3.92 billion from $ 4.07 billion . NNS VBD CD NN TO $ CD CD IN $ CD CD .
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At General Dynamics , factors reducing earnings in the military aircraft segment included higher levels of cost-sharing in development of the Advanced Tactical Fighter , and the high cost of an advanced version of the F-16 fighter . IN NNP NNP , NNS VBG NNS IN DT JJ NN NN VBD JJR NNS IN NN IN NN IN DT NNP NNP NNP , CC DT JJ NN IN DT VBN NN IN DT NNP NN .
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F-16 deliveries also have fallen `` slightly behind schedule , '' although a return to the previous schedule is expected in 1990 , the company said . NN NNS RB VBP VBN `` RB IN NN , '' IN DT NN TO DT JJ NN VBZ VBN IN CD , DT NN VBD .
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Backlog at General Dynamics rose to $ 16.5 billion from $ 15.8 billion . NN IN NNP NNP VBD TO $ CD CD IN $ CD CD .
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Its interest expense surged to $ 21.5 million from $ 12.4 million . PRP$ NN NN VBD TO $ CD CD IN $ CD CD .
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For the nine months , General Dynamics earned $ 210.3 million , or $ 5.03 a share , up marginally from $ 208.8 million , or $ 4.97 a share , on a 4.9 % rise in sales to $ 7.41 billion from $ 7.06 billion . IN DT CD NNS , NNP NNP VBD $ CD CD , CC $ CD DT NN , IN RB IN $ CD CD , CC $ CD DT NN , IN DT CD NN NN IN NNS TO $ CD CD IN $ CD CD .
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Lotus Development Corp. reported a surprisingly strong 51 % increase in third-quarter net income on a 32 % sales gain , buoyed by strong demand for a new version of its 1-2-3 computer spreadsheet . NNP NNP NNP VBD DT RB JJ CD NN NN IN JJ JJ NN IN DT CD NN NNS NN , VBN IN JJ NN IN DT JJ NN IN PRP$ JJ NN NN .
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The results topped analysts ' expectations and the earnings growth of competitors , prompting traders to all but forget the product-launch delays that bogged down the company for much of the past two years . DT NNS VBD NNS POS NNS CC DT NNS NN IN NNS , VBG NNS TO DT CC VB DT NN NNS WDT VBD RP DT NN IN NN IN DT JJ CD NNS .
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Yesterday , in heavy , national over-the-counter trading , Lotus shares rose to $ 32.50 , up $ 1.25 apiece , capping a threemonth run-up of more than 40 % . NN , IN JJ , JJ JJ NN , NNP NNS VBD TO $ CD , IN $ CD RB , VBG DT JJ NN IN JJR IN CD NN .
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Lotus said net rose to $ 23 million , or 54 cents a share , on sales of $ 153.9 million . NNP VBD NN VBD TO $ CD CD , CC CD NNS DT NN , IN NNS IN $ CD CD .
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A year ago , net was $ 14.3 million , or 31 cents a share , on sales of $ 116.8 million . DT NN RB , NN VBD $ CD CD , CC CD NNS DT NN , IN NNS IN $ CD CD .
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For the nine months , net of $ 38.5 million , or 92 cents a share , trailed the year earlier 's $ 49.9 million , or $ 1.08 a share . IN DT CD NNS , NN IN $ CD CD , CC CD NNS DT NN , VBD DT NN RBR POS $ CD CD , CC $ CD DT NN .
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Sales rose to $ 406 million from $ 356 million the year earlier . NNS VBD TO $ CD CD IN $ CD CD DT NN RBR .
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In the first half , Lotus struggled to keep market share with costly promotions while customers awaited the launch of 1-2-3 Release 3 , the upgraded spreadsheet software . IN DT JJ NN , NNP VBD TO VB NN NN IN JJ NNS IN NNS VBD DT NN IN NNP NNP CD , DT VBN NN NN .
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Lotus 's results were about 10 % higher than analysts ' average expectations and compared favorably with the 36 % earnings rise reported a day earlier by rival Microsoft Corp. of Redmond , Wash . NNP POS NNS VBD IN CD NN JJR IN NNS POS JJ NNS CC VBN RB IN DT CD NN NNS NN VBD DT NN RBR IN JJ NNP NNP IN NNP , NNP .
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The company said results were bolstered by upgrades to Release 3 by previous customers and improved profit margins , the result of manufacturing-cost controls . DT NN VBD NNS VBD VBN IN NNS TO NNP CD IN JJ NNS CC VBN NN NNS , DT NN IN NN NNS .
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Rick Sherlund , a Goldman Sachs analyst , said Lotus had upgrade revenue of about $ 22 million in the quarter , twice what he had expected . NNP NNP , DT NNP NNP NN , VBD NNP VBD VB NN IN RB $ CD CD IN DT NN , RB WP PRP VBD VBN .
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Also , he estimated unit shipments of 1-2-3 in all its forms were about 315,000 , up 7 % from 1988 's quarterly average . RB , PRP VBD NN NNS IN JJ IN DT PRP$ NNS VBD IN CD , IN CD NN IN CD POS JJ NN .
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Demand for the new version was enabling Lotus to raise prices with distributors and to hold market share against Microsoft and other competitors that tried to exploit the earlier delays in Release 3 's launch , Mr. Sherlund added . NN IN DT JJ NN VBD VBG NNP TO VB NNS IN NNS CC TO VB NN NN IN NNP CC JJ NNS WDT VBD TO VB DT JJR NNS IN NNP CD POS NN , NNP NNP VBD .
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He estimated that 1-2-3 outsold Microsoft 's Excel spreadsheet by four-to-one in the quarter , and held a 70 % or better share of the spreadsheet market . PRP VBD IN NN VBD NNP POS NNP NN IN RB IN DT NN , CC VBD DT CD NN CC JJR NN IN DT NN NN .
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Silicon Valley heaved a sigh of relief yesterday . NNP NNP VBD DT NN IN NN NN .
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Though details were sketchy in the aftermath of the violent earthquake that shook the high-tech corridor along with the rest of the San Francisco Bay area , a spot check of computer makers turned up little , if any , potentially lingering damage to facilities or fabrication equipment . IN NNS VBD JJ IN DT NN IN DT JJ NN WDT VBD DT JJ NN IN IN DT NN IN DT NNP NNP NNP NN , DT NN NN IN NN NNS VBD IN JJ , IN DT , RB VBG NN TO NNS CC NN NN .
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Analysts and corporate officials said they expected practically no long-term disruption in shipments from the Valley of either hardware or software goods . NNS CC JJ NNS VBD PRP VBD RB DT JJ NN IN NNS IN DT NNP IN DT NN CC NN NNS .
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Intel Corp. , Advanced Micro Devices Inc. and National Semiconductor Corp. were all up and running yesterday , though many workers were forced to stay home because of damaged roadways ; others elected to take the day off . NNP NNP , NNP NNP NNP NNP CC NNP NNP NNP VBD DT IN CC VBG NN , IN JJ NNS VBD VBN TO VB NN IN IN VBN NNS : NNS VBN TO VB DT NN RB .
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`` These systems are more rugged than many people would believe , '' said Thomas Kurlak , who tracks the computer industry for Merrill Lynch Research . `` DT NNS VBP RBR JJ IN JJ NNS MD VB , '' VBD NNP NNP , WP VBZ DT NN NN IN NNP NNP NNP .
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`` It 's not the end of the world if you shake them up a little bit . '' `` PRP VBZ RB DT NN IN DT NN IN PRP VBP PRP IN DT JJ NN . ''
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Other companies , including International Business Machines Corp. and Hewlett-Packard Co. , completely idled their operations because of Tuesday evening 's temblor , which registered 6.9 on the Richter scale . JJ NNS , VBG NNP NNP NNP NNP CC NNP NNP , RB VBN PRP$ NNS IN IN NNP NN POS NN , WDT VBD CD IN DT NNP NN .
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Personnel spent the morning inspecting buildings for structural weaknesses , mopping up water from broken pipes and clearing ceiling tiles and other debris from factory floors . NNP VBD DT NN VBG NNS IN JJ NNS , VBG IN NN IN VBN NNS CC VBG NN NNS CC JJ NN IN NN NNS .
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Still , many were confident that `` in a day or two , everything should be back to normal , '' according to a spokeswoman for the Semiconductor Industry Association , based in Cupertino . RB , NN VBD JJ IN `` IN DT NN CC CD , NN MD VB RB TO JJ , '' VBG TO DT NN IN DT NNP NNP NNP , VBN IN NNP .
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IBM , for instance , said it anticipates returning to a normal work schedule by the weekend at its San Jose plant , which puts out disk drives for the 3090 family of mainframes . NNP , IN NN , VBD PRP VBZ VBG TO DT JJ NN NN IN DT NN IN PRP$ NNP NNP NN , WDT VBZ RP NN NNS IN DT CD NN IN NNS .
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A Hewlett-Packard spokeswoman said that , while `` things are a big mess , '' some 18,000 Valley employees have been called back to work today . DT NNP NN VBD IN , IN `` NNS VBP DT JJ NN , '' DT CD NNP NNS VBP VBN VBN RB TO VB NN .
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Apple Computer added that it was being `` cautiously optimistic , '' despite not yet closely eyeballing all of its 50 buildings in the region . NNP NNP VBD IN PRP VBD VBG `` RB JJ , '' IN RB RB RB VBG DT IN PRP$ CD NNS IN DT NN .
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Even the carefully calibrated machinery in its giant Fremont plant , to the north of the Valley , was believed to be undamaged . RB DT RB VBN NN IN PRP$ NN NNP NN , TO DT RB IN DT NNP , VBD VBN TO VB JJ .
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Sun Microsystems Inc. and Tandem Computers Inc. also signaled that they should recover quickly . NNP NNP NNP CC NNP NNP NNP RB VBD IN PRP MD VB RB .
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Digital Equipment Corp. , with major facilities in Santa Clara , Cupertino , Palo Alto and Mountain View , said that all of its engineering and manufacturing sites had reported to corporate headquarters in Maynard , Mass. , Tuesday night . NNP NNP NNP , IN JJ NNS IN NNP NNP , NNP , NNP NNP CC NNP NNP , VBD IN DT IN PRP$ NN CC NN NNS VBD VBN TO JJ NN IN NNP , NNP , NNP NN .
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None sustained `` significant '' damage , a spokesman said , adding that `` the delicate manufacturing process machines were checked and were all found to be operating normally . '' NN VBN `` JJ '' NN , DT NN VBD , VBG IN `` DT JJ NN NN NNS VBD VBN CC VBD DT VBD TO VB VBG RB . ''
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For many companies , of course , there is still a slew of nagging problems to grapple with , some of which have the potential to become quite serious . IN JJ NNS , IN NN , EX VBZ RB DT NN IN JJ NNS TO VB IN , DT IN WDT VBP DT JJ TO VB RB JJ .
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For example , a spokesman for Advanced Micro Devices said the Sunnyvale chip maker is worried about blackouts . IN NN , DT NN IN NNP NNP NNPS VBD DT NNP NN NN VBZ VBN IN NNS .
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A sudden surge or drop in electric power could ruin integrated circuits being built . DT JJ NN CC NN IN JJ NN MD VB VBN NNS VBG VBN .
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But , given what might have happened to the fragile parts that are at the heart of the microelectronics business , the bulk of Valley companies seemed to be just about shouting hosannas . CC , VBN WP MD VB VBN TO DT JJ NNS WDT VBP IN DT NN IN DT NNS NN , DT NN IN NNP NNS VBD TO VB RB IN VBG NNS .
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Several factors apparently spared the Valley -- a sprawling suburban stretch from San Jose to Palo Alto -- from the kind of impact felt in San Francisco , an hour 's drive north . JJ NNS RB VBN DT NNP : DT VBG JJ NN IN NNP NNP TO NNP NNP : IN DT NN IN NN VBD IN NNP NNP , DT NN POS NN RB .
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For one thing , buildings there tend to be newer and , thus , in step with the latest safety codes . IN CD NN , NNS EX VBP TO VB JJR CC , RB , IN NN IN DT JJS NN NNS .
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Also , the soil in the Valley is solid , unlike the landfill of San Francisco 's downtown Marina District , which was hit with fires and vast destruction . RB , DT NN IN DT NNP VBZ JJ , IN DT NN IN NNP NNP POS NN NNP NNP , WDT VBD VBN IN NNS CC JJ NN .
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In addition , some microelectronics companies said they were prepared for tremulous conditions like Tuesday 's . IN NN , DT NNS NNS VBD PRP VBD VBN IN JJ NNS IN NNP POS .
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Their machine tools are even bolted to the shop floor . PRP$ NN NNS VBP RB VBN TO DT NN NN .
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Intel said that over the past decade , it has installed computer sensors and shutoff valves , sensitive to the shake of an earthquake , in the pipes that snake through its plants . NNP VBD IN IN DT JJ NN , PRP VBZ VBN NN NNS CC NN NNS , JJ TO DT NN IN DT NN , IN DT NNS WDT NN IN PRP$ NNS .
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Like other large Valley companies , Intel also noted that it has factories in several parts of the nation , so that a breakdown at one location should n't leave customers in a total pinch . IN JJ JJ NNP NNS , NNP RB VBD IN PRP VBZ NNS IN JJ NNS IN DT NN , RB IN DT NN IN CD NN MD RB VB NNS IN DT JJ NN .
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That 's certainly good news for such companies as Compaq Computer Corp. , Houston , which has only a four-day supply of microprocessors from the Valley on hand because of a just-in-time manufacturing approach that limits the buildup of inventory . DT VBZ RB JJ NN IN JJ NNS IN NNP NNP NNP , NNP , WDT VBZ RB DT JJ NN IN NNS IN DT NNP IN NN IN IN DT JJ NN NN IN VBZ DT NN IN NN .
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Compaq said it foresees no difficulties in obtaining parts in the immediate future . NNP VBD PRP VBZ DT NNS IN VBG NNS IN DT JJ NN .
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Computer makers were scrambling to help customers recover from the disaster . NN NNS VBD VBG TO VB NNS VB IN DT NN .
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Digital Equipment has set up disaster-recovery response centers in Dallas , Atlanta and Colorado Springs , Colo . NNP NNP VBZ VBN IN JJ NN NNS IN NNP , NNP CC NNP NNP , NNP .
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These units were handling calls both from people in the San Francisco area and from computers themselves , which are set to dial Digital automatically when trouble arises . DT NNS VBD NN VBZ DT IN NNS IN DT NNP NNP NN CC IN NNS PRP , WDT VBP VBN TO VB NNP RB WRB NN VBZ .
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They then run remotely controlled self-diagnostic programs . PRP RB VBP RB VBN JJ NNS .
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Digital also said it has dispatched teams of technicians to California . NNP RB VBD PRP VBZ VBN NNS IN NNS TO NNP .
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Meanwhile , several other major installations around the Valley -- America 's center of high-tech -- said they , too , fared as well as could be expected . RB , JJ JJ JJ NNS IN DT NNP : NNP POS NN IN JJ : VBD PRP , RB , VBD RB RB IN MD VB VBN .
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Lawrence Livermore National Laboratory , where the Energy Department tests and conducts research on nuclear weapons , had only `` superficial damage , '' a spokesman said . NNP NNP NNP NNP , WRB DT NNP NNP NNS CC VBZ NN IN JJ NNS , VBD RB `` JJ NN , '' DT NN VBD .
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At Lockheed Corp. 's missiles and space systems group in Sunnyvale , about 40 miles south of San Francisco , workers were asked to head to work yesterday after it was realized that `` there were no show-stoppers '' in the 150-plus buildings on its one-square-mile campus . IN NNP NNP POS NNS CC NN NNS VBP IN NNP , IN CD NNS RB IN NNP NNP , NNS VBD VBN TO VB TO VB NN IN PRP VBD VBN IN `` EX VBD DT NNS '' IN DT JJ NNS IN PRP$ JJ NN .
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Several engineering and research offices needed closer scrutiny to make sure they were n't in danger of crumbling , but `` the bulk of the place is in pretty good shape , '' an official said . JJ NN CC NN NNS VBN JJR NN TO VB JJ PRP VBD RB IN NN IN VBG , CC `` DT NN IN DT NN VBZ IN RB JJ NN , '' DT NN VBD .
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One of Lockheed 's most lucrative sectors -- accounting for more than half the aerospace company 's $ 10.59 billion in sales in 1988 -- the missiles and space group is the prime Pentagon contractor on the Trident II ballistic missile . CD IN NNP POS RBS JJ NNS : NN IN JJR IN PDT DT NN NN POS $ CD CD IN NNS IN CD : DT NNS CC NN NN VBZ DT JJ NNP NN IN DT NNP NNP JJ NN .
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It also generates pieces of the missile shield called the Strategic Defense Initiative . PRP RB VBZ NNS IN DT NN NN VBD DT NNP NNP NNP .
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Fortunately , the Hubble Space Telescope -- set to be launched on the shuttle next year in a search for distant solar systems and light emitted 14 billion years ago from the farthest reaches of the universe -- was moved from Sunnyvale to the Kennedy Space Center in Florida at the beginning of October . RB , DT NNP NNP NNP : VBN TO VB VBN IN DT NN JJ NN IN DT NN IN JJ JJ NNS CC NN VBN CD CD NNS RB IN DT JJS NNS IN DT NN : VBD VBN IN NNP TO DT NNP NNP NNP IN NNP IN DT NN IN NNP .
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John R. Wilke contribued to this article . NNP NNP NNP VBD TO DT NN .
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Michael Maynard offered the world a faster way to break eggs . NNP NNP VBD DT NN DT JJR NN TO VB NNS .
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As thanks , the egg industry tried to break him . IN NNS , DT NN NN VBD TO VB PRP .
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And the egg producers have done a pretty good job . CC DT NN NNS VBP VBN DT RB JJ NN .
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They tried to put Mr. Maynard out of business by an act of Congress . PRP VBD TO VB NNP NNP IN IN NN IN DT NN IN NNP .
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Egg-industry lobbying helped persuade six states to ban Mr. Maynard 's automatic egg-breaking machine because of fears over salmonella . NN VBG VBN VB CD NNS TO VB NNP NNP POS JJ NN NN IN IN NNS IN NN .
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His company , Misa Manufacturing Inc. , was forced to seek protection from creditors under federal bankruptcy law in 1987 and has since been liquidated . PRP$ NN , NNP NNP NNP , VBD VBN TO VB NN IN NNS IN JJ NN NN IN CD CC VBZ IN VBN VBN .
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Monthly sales of his Egg King machine -- which he now is marketing through a new company -- have sunk to about half a dozen from a peak of 75 , says the 46-year-old businessman . JJ NNS IN PRP$ NNP NNP NN : WDT PRP RB VBZ VBG IN DT JJ NN : VBP VBN TO IN PDT DT NN IN DT NN IN CD , VBZ DT JJ NN .
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Mr. Maynard is n't the first entrepreneur to bump up against entrenched interests . NNP NNP VBZ RB DT JJ NN TO VB IN IN VBN NNS .
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But his case is notable both for the scale of the fight -- it is n't often that a congressional hearing is held to determine whether one small businessman is a threat to the republic -- and for what it tells about the pitfalls of marketing a new product . CC PRP$ NN VBZ JJ DT IN DT NN IN DT NN : PRP VBZ RB RB IN DT JJ NN VBZ VBN TO VB IN CD JJ NN VBZ DT NN TO DT NN : CC IN WP PRP VBZ IN DT NNS IN VBG DT JJ NN .
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Now one might ask why people who sell eggs would fight someone who is trying to make it easier to crack them . RB PRP MD VB WRB NNS WP VBP NNS MD VB NN WP VBZ VBG TO VB PRP JJR TO VB PRP .
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Part of the answer lies in the nature of the industry . NN IN DT NN VBZ IN DT NN IN DT NN .
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Many larger egg producers are also egg processors , who crack , inspect , and sanitize billions of eggs , turning them into powdered , liquified or frozen egg products . RB JJR NN NNS VBP RB NN NNS , WP VBP , VB , CC VBP NNS IN NNS , VBG PRP IN JJ , JJ CC VBN NN NNS .
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However , dozens of bakers , restaurant chefs and other food preparers who flocked to Mr. Maynard 's defense say that products ranging from egg bread to eclairs lose some zip when the eggs come in 30-pound cans instead of shells . RB , NNS IN NNS , NN NNS CC JJ NN NNS WP VBD TO NNP NNP POS NN VBP IN NNS VBG IN NN NN TO NNS VBP DT NN WRB DT NNS VBP IN JJ NNS RB IN NNS .
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But for companies that use hundreds of eggs a day , breaking them by hand can get , well , out of hand . CC IN NNS IN NN NNS IN NNS DT NN , VBG PRP IN NN MD VB , RB , IN IN NN .
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The idea behind the Egg King is pretty simple : put the eggs into a cylinder that contains perforated baskets , spin them at a high speed to break the shells and strain the edible part through the baskets . DT NN IN DT NNP NNP VBZ RB JJ : VB DT NNS IN DT NN WDT VBZ JJ NNS , VB PRP IN DT JJ NN TO VB DT NNS CC VB DT JJ NN IN DT NNS .
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One Egg King -- which at just under four feet tall and two feet wide has been likened to the robot R2-D2 -- can crack about 20,000 eggs an hour . CD NNP NNP : WDT IN RB IN CD NNS JJ CC CD NNS JJ VBZ VBN VBN TO DT NN NN : MD VB IN CD NNS DT NN .
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Because fresh eggs are less expensive than processed ones , a big egg user can recover the Egg King 's $ 3,390 cost in a few months , says Mr. Maynard . IN JJ NNS VBP RBR JJ IN VBN NNS , DT JJ NN NN MD VB DT NNP NNP POS $ CD NN IN DT JJ NNS , VBZ NNP NNP .
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Such centrifugal egg breakers have been around since the 1890s . JJ JJ NN NNS VBP VBN IN IN DT CD .
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But when Mr. Maynard came forward with his machine in the early 1970s nobody else was offering them in the U.S. . CC WRB NNP NNP VBD RB IN PRP$ NN IN DT JJ NNS NN RB VBD VBG PRP IN DT NNP .
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The main reason : salmonella . DT JJ NN : NN .
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Chickens carry this bacteria , which can cause upset stomachs and , in rare cases , death among people . NNS VBP DT NNS , WDT MD VB VBN NNS CC , IN JJ NNS , NN IN NNS .
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Hens sometimes pass salmonella to the eggs , and it can also be found on unclean shells . NNS RB VBP NN TO DT NNS , CC PRP MD RB VB VBN IN JJ NNS .
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Thus , any machine that breaks large amounts of eggs at once has the potential to spread salmonella if a bad egg gets in with the good ones . RB , DT NN IN VBZ JJ NNS IN NNS IN RB VBZ DT JJ TO VB NN IN DT JJ NN VBZ IN IN DT JJ NNS .
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Mr. Maynard claims this is a manageable problem . NNP NNP VBZ DT VBZ DT JJ NN .
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The Egg King carries written instructions to break only high-grade eggs that have been properly sanitized and , as an added precaution , to use the eggs only in products that will be cooked enough to kill bacteria . DT NNP NNP VBZ VBN NNS TO VB RB JJ NNS WDT VBP VBN RB VBN CC , IN DT VBN NN , TO VB DT NNS RB IN NNS WDT MD VB VBN RB TO VB NNS .
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With nearly 4,000 machines in use , there have been no salmonella problems as long as instructions were followed , Mr. Maynard boasts . IN RB CD NNS IN NN , EX VBP VBN DT NN NNS RB RB IN NNS VBD VBN , NNP NNP VBZ .
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He says the handful of salmonella cases involving products that may have used eggs broken by an Egg King stemmed from a failure to adequately cook the products . PRP VBZ DT NN IN NN NNS VBG NNS WDT MD VB VBN NNS VBN IN DT NNP NNP VBD IN DT NN TO RB VBP DT NNS .
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But he says that 's no more a reason for banning Egg Kings than bad drivers are a reason for banning cars . CC PRP VBZ DT VBZ DT JJR DT NN IN VBG NNP NNP IN JJ NNS VBP DT NN IN VBG NNS .
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Opponents do n't buy such arguments . NNS VBP RB VB JJ NNS .
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`` Human nature being what it is , people do n't always follow instructions , '' says Jack Guzewich , chief of food protection for the New York state Health Department . `` NNP NN VBG WP PRP VBZ , NNS VBP RB RB VB NNS , '' VBZ NNP NNP , NN IN NN NN IN DT NNP NNP NN NNP NNP .
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Leading the assault against the Egg King has been United Egg Producers . VBG DT NN IN DT NNP NNP VBZ VBN NNP NNP NNS .
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The Decatur , Ga. , trade group has issued a `` briefing book '' that claims the machine is `` a health hazard '' and that Mr. Maynard is trying `` to make a fast buck at the expense of the nation 's egg producers . '' DT NNP , NNP , NN NN VBZ VBN DT `` NN NN '' IN VBZ DT NN VBZ `` DT NN NN '' CC IN NNP NNP VBZ VBG `` TO VB DT JJ NN IN DT NN IN DT NN POS NN NNS . ''
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The UEP declines to comment , but the group 's attorney , Alfred Frawley , says the group 's actions are motivated solely by `` health concerns . '' DT NNP NNS TO VB , CC DT NN POS NN , NNP NNP , VBZ DT NN POS NNS VBP VBN RB IN `` NN NNS . ''
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An early battleground was the U.S. Department of Agriculture . DT JJ NN VBD DT NNP NNP IN NNP .
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Mr. Maynard initially won approval for his machine to be used at egg-processing facilities regulated by the USDA 's Food Safety Inspection Service . NNP NNP RB VBD NN IN PRP$ NN TO VB VBN IN JJ NNS VBN IN DT NNP POS NNP NNP NNP NNP .
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Unfortunately for Mr. Maynard , another branch of the USDA , the Agricultural Marketing Service , was in charge of eggs . RB IN NNP NNP , DT NN IN DT NNP , DT NNP NNP NNP , VBD IN NN IN NNS .
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After receiving complaints from egg producers , this branch got the other branch to rescind its approval , thus limiting the machine 's potential market to bakeries and restaurants and other establishments that are n't regulated by the USDA . IN VBG NNS IN NN NNS , DT NN VBD DT JJ NN TO VB PRP$ NN , RB VBG DT NN POS JJ NN TO NNS CC NNS CC JJ NNS WDT VBP RB VBN IN DT NNP .
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The egg producers also lobbied the Food and Drug Administration . DT NN NNS RB VBD DT NNP CC NNP NNP .
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But the FDA in a 1985 letter to the United Egg Producers said that there was `` little likelihood '' of a health problem as long as instructions were followed . CC DT NNP IN DT CD NN TO DT NNP NNP NNS VBD IN EX VBD `` JJ NN '' IN DT NN NN RB RB IN NNS VBD VBN .
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So the producers went to Capitol Hill , where a congressman from Georgia introduced a measure to ban centrifugal egg-breaking machines . RB DT NNS VBD TO NNP NNP , WRB DT NN IN NNP VBD DT NN TO VB JJ NN NNS .
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Mr. Maynard , whose company at the time was based in Santa Ana , Calif. , enlisted his local congressman , and the battle was joined . NNP NNP , WP$ NN IN DT NN VBD VBN IN NNP NNP , NNP , VBD PRP$ JJ NN , CC DT NN VBD VBN .
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Mr. Maynard 's forces finally defeated the measure , though it took a vote on the floor of the House of Representatives to do it . NNP NNP POS NNS RB VBN DT NN , IN PRP VBD DT NN IN DT NN IN DT NNP IN NNPS TO VB PRP .
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Even then , opponents managed to get a congressional hearing to examine what one congressman called an `` unscrupulous '' method for breaking eggs . RB RB , NNS VBD TO VB DT JJ NN TO VB WP CD NN VBD DT `` JJ '' NN IN VBG NNS .
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Foiled in their effort to get a national ban , the egg producers turned their attention to the states . VBN IN PRP$ NN TO VB DT JJ NN , DT NN NNS VBD PRP$ NN TO DT NNS .
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So far , New York , New Jersey , Nebraska , Georgia , Michigan and Minnesota have outlawed Mr. Maynard 's device , citing health concerns . RB RB , NNP NNP , NNP NNP , NNP , NNP , NNP CC NNP VBP VBN NNP NNP POS NN , VBG NN NNS .
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An antitrust suit that Mr. Maynard 's company filed in Los Angeles federal court against the United Egg Producers and others only added to the entrepreneur 's woes . DT JJ NN IN NNP NNP POS NN VBN IN NNP NNP JJ NN IN DT NNP NNP NNS CC NNS RB VBD TO DT NN POS NNS .
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The judge dismissed the suit and ordered Mr. Maynard 's company to pay over $ 100,000 in legal fees to the defendants ' lawyers . DT NN VBD DT NN CC VBD NNP NNP POS NN TO VB IN $ CD IN JJ NNS TO DT NNS POS NNS .
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Mr. Maynard says the ruling pushed his company into bankruptcy court . NNP NNP VBZ DT NN VBD PRP$ NN IN NN NN .
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Now he has moved to Oklahoma where costs are lower , and started a new company , Adsi Inc. , to market his machine . RB PRP VBZ VBN TO NNP WRB NNS VBP JJR , CC VBD DT JJ NN , NNP NNP , TO VB PRP$ NN .
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But , so far , the change of scenery has n't ended his string of bad breaks . CC , RB RB , DT NN IN NN VBZ RB VBN PRP$ NN IN JJ NNS .
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Mr. Maynard recently fell from a horse and fractured his arm . NNP NNP RB VBD IN DT NN CC VBN PRP$ NN .
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Michelle Pfeiffer ca n't chew gum and sing at the same time . NNP NNP MD RB VB NN CC VB IN DT JJ NN .
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But on the evidence of `` The Fabulous Baker Boys , '' that may be the only thing she ca n't do , at least when she 's acting in movies . CC IN DT NN IN `` DT NNP NNP NNPS , '' WDT MD VB DT JJ NN PRP MD RB VB , IN JJS WRB PRP VBZ VBG IN NNS .
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As the tough , slinky lounge chanteuse in `` The Fabulous Baker Boys , '' Ms. Pfeiffer sings for herself , and more than passably well . IN DT JJ , JJ NN NN IN `` DT NNP NNP NNPS , '' NNP NNP VBZ IN PRP , CC JJR IN RB RB .
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Her Susie Diamond handles a song the way the greats do , like she 's hearing the way it should sound inside her head and she 's concentrating on matching that internal tone . PRP$ NNP NNP VBZ DT NN DT NN DT NNS VBP , IN PRP VBZ VBG DT NN PRP MD VB IN PRP$ NN CC PRP VBZ VBG IN VBG IN JJ NN .
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Yet her intensity stops and starts with the music . RB PRP$ NN VBZ CC VBZ IN DT NN .
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When she is n't performing for an audience , she prepares for a song by removing the wad of gum from her mouth , and indicates that she 's finished by sticking the gum back in . WRB PRP VBZ RB VBG IN DT NN , PRP VBZ IN DT NN IN VBG DT NN IN NN IN PRP$ NN , CC VBZ IN PRP VBZ VBN IN VBG DT NN RB RB .
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Like almost everything in this wonderfully romantic and edgy movie , Ms. Pfeiffer 's Susie seems like someone you 've seen before , in numerous show-biz stories -LRB- even her name , Susie Diamond , sounds like a character Marilyn Monroe must have played -RRB- . IN JJ NN IN DT RB JJ CC JJ NN , NNP NNP POS NNP VBZ IN NN PRP VBP VBN RB , IN JJ NN NNS ( RB PRP$ NN , NNP NNP , VBZ IN DT NN NNP NNP MD VB VBN ) .
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Yet nothing about `` Baker Boys , '' and certainly nothing about Ms. Pfeiffer , really is like something from the video vault . RB NN IN `` NNP NNPS , '' CC RB NN IN NNP NNP , RB VBZ IN NN IN DT NN NN .
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Steve Kloves , the young writer and director -LRB- he is n't yet 30 -RRB- , has only one produced picture to his credit ; he wrote the screenplay for `` Racing With the Moon , '' a lovely coming-of-age picture set in the '40s . NNP NNP , DT JJ NN CC NN ( PRP VBZ RB RB CD ) , VBZ RB CD VBN NN TO PRP$ NN : PRP VBD DT NN IN `` NNP IN DT NNP , '' DT JJ JJ NN VBN IN DT NNS .
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Both movies are infused with the nostalgic sensibility of someone much older , someone who does n't dismiss dreams , but who also has enough experience to see his limits . DT NNS VBP VBN IN DT JJ NN IN NN RB JJR , NN WP VBZ RB VB NNS , CC WP RB VBZ JJ NN TO VB PRP$ NNS .
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However , Mr. Kloves directs his own material without sentimentality and at its own eccentric pace ; `` Baker Boys '' is both bluesy and funny . RB , NNP NNP VBZ PRP$ JJ NN IN NN CC IN PRP$ JJ JJ NN : `` NNP NNPS '' VBZ DT JJ CC JJ .
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He 's put a fresh spin on material that could come off terribly cliched ; for example , the way Susie wows an audience the first time she sings with the Baker Boys . PRP VBZ VBN DT JJ NN IN NN WDT MD VB IN RB JJ : IN NN , DT NN NNP VBZ DT NN DT JJ NN PRP VBZ IN DT NNP NNPS .
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Of course , it does n't hurt that Mr. Kloves has made up for his lack of experience behind the camera with technicians who know exactly what they 're doing . IN NN , PRP VBZ RB VBN IN NNP NNP VBZ VBN IN IN PRP$ NN IN NN IN DT NN IN NNS WP VBP RB WP PRP VBP VBG .
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Much of the picture 's sensuality emerges from cinematographer Michael Ballhaus 's slyly seductive lens work . RB IN DT NN POS NN VBZ IN NN NNP NNP POS RB JJ NN NN .
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After working for years with Werner Rainer Fassbinder , the late German director , and more recently with Martin Scorsese -LRB- `` After Hours , '' `` The Color of Money , '' `` The Last Temptation of Christ '' -RRB- , Mr. Ballhaus has developed a distinctively fluid style . IN VBG IN NNS IN NNP NNP NNP , DT JJ JJ NN , CC RBR RB IN NNP NNP ( `` IN NNS , '' `` DT NNP IN NNP , '' `` DT JJ NN IN NNP '' ) , NNP NNP VBZ VBN DT RB NN NN .
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And Dave Grusin 's witty score embraces the banal requirements of banquet-hall musicianship -LRB- `` Feelings '' is a must -RRB- without condescension . CC NNP NNP POS JJ NN VBZ DT JJ NNS IN NN NN ( `` NNS '' VBZ DT MD ) IN NN .
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Though Ms. Pfeiffer has the flashy part -- she gets the best comic bits and to wear glamorous dresses and spiked heels the boys are pretty great , too . IN NNP NNP VBZ DT JJ NN : PRP VBZ DT JJS JJ NNS CC TO VB JJ NNS CC JJ NNS DT NNS VBP RB JJ , RB .
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What seemed like a good idea , to cast the Bridges brothers -LRB- Jeff and Beau -RRB- as the Baker brothers , actually turned out to be a good idea . WP VBD IN DT JJ NN , TO VB DT NNP NNS ( NNP CC NNP ) IN DT NNP NNS , RB VBD IN TO VB DT JJ NN .
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Anyone who 's tried to appear `` natural '' in front of a camera knows that it 's much more natural to end up looking like a stiff . NN WP VBZ VBD TO VB `` JJ '' IN NN IN DT NN VBZ IN PRP VBZ RB RBR JJ TO VB IN VBG IN DT NN .
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So it 's quite possible that the terrific play between the brothers is n't natural at all , that Jeff and Beau had to work like crazy to make their brotherly love -- and resentment and frustration and rage -- seem so very real . RB PRP VBZ RB JJ IN DT JJ NN IN DT NNS VBZ RB JJ IN DT , IN NNP CC NNP VBD TO VB IN JJ TO VB PRP$ JJ NN : CC NN CC NN CC NN : VB RB RB JJ .
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When the movie opens the Baker brothers are doing what they 've done for 15 years professionally , and twice as long as that for themselves : They 're playing proficient piano , face-to-face , on twin pianos . WRB DT NN VBZ DT NNP NNS VBP VBG WP PRP VBP VBN IN CD NNS RB , CC RB RB RB IN DT IN PRP : PRP VBP VBG JJ NN , JJ , IN JJ NNS .
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They 're small time in the small time-hotels -LRB- not the best ones -RRB- and restaurants in Seattle . PRP VBP JJ NN IN DT JJ NNS ( RB DT JJS NNS ) CC NNS IN NNP .
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Yet they do n't disparage their audiences by disparaging their act . RB PRP VBP RB VB PRP$ NNS IN VBG PRP$ NN .
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They wear tuxedos most nights , unless circumstances -LRB- a regular gig at a `` tropical '' lounge , for example -RRB- require them to wear special costumes , like Hawaiian shirts . PRP VBP NNS RBS NNS , IN NNS ( DT JJ NN IN DT `` JJ '' NN , IN NN ) VB PRP TO VB JJ NNS , IN NNP NNS .
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Plump Beau , looking eager to please with his arched eyebrows and round face , plays the older brother , Frank . JJ NNP , VBG JJ TO VB IN PRP$ JJ NNS CC NN NN , VBZ DT JJR NN , NNP .
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Frank plans the program , takes care of business , and approaches the work like any other job . NNP VBZ DT NN , VBZ NN IN NN , CC VBZ DT NN IN DT JJ NN .
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He 's even able to think of a job that takes him out of the house 300 nights a week as an ordinary job . PRP VBZ RB JJ TO VB IN DT NN WDT VBZ PRP IN IN DT NN CD NNS DT NN IN DT JJ NN .
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He 's got a wife and two kids and a house in the suburbs ; the audience sees only the house , and only near the end of the movie . PRP VBZ VBD DT NN CC CD NNS CC DT NN IN DT NNS : DT NN VBZ RB DT NN , CC RB IN DT NN IN DT NN .
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Frank grovels a little for the bookers , probably no more or less than he would have to if he worked for a big corporation . NNP VBZ DT JJ IN DT NNS , RB DT JJR CC JJR IN PRP MD VB TO IN PRP VBD IN DT JJ NN .
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On his off-hours he wears cardigan sweaters . IN PRP$ JJ PRP VBZ NN NNS .
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Jeff Bridges is the younger brother , Jack , who fancies himself the rebellious artist ; he lives in a loft with his sick dog and the occasional visit from the little girl upstairs , who climbs down the fire escape . NNP NNP VBZ DT JJR NN , NNP , WP VBZ PRP DT JJ NN : PRP VBZ IN DT NN IN PRP$ JJ NN CC DT JJ NN IN DT JJ NN NN , WP VBZ RP DT NN NN .
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Yet Jack 's the one who can remember every dive they ever played , and when , and he dutifully shows up for work night after night -LRB- he consoles himself with booze and by showing up at the last minute -RRB- . RB NNP POS DT CD WP MD VB DT NN PRP RB VBD , CC WRB , CC PRP RB VBZ IN IN NN NN IN NN ( PRP VBZ PRP IN NN CC IN VBG IN IN DT JJ NN ) .
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Looking leaner than he has in a while , the younger Mr. Bridges 's Jack is sexy and cynical and a far sadder case than Frank , who 's managed to chisel his dreams to fit reality without feeling too cheated . VBG JJR IN PRP VBZ IN DT NN , DT JJR NNP NNP POS NNP VBZ JJ CC JJ CC DT RB JJR NN IN NNP , WP VBZ VBD TO VB PRP$ NNS TO VB NN IN NN RB VBD .
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He can live with little pleasures . PRP MD VB IN JJ NNS .
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Mr. Kloves has put together some priceless moments . NNP NNP VBZ VBN RB DT JJ NNS .
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These include Jennifer Tilly 's audition to be the Baker Boys ' girl singer . DT VBP NNP NNP POS NN TO VB DT NNP NNPS POS NN NN .
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Ms. Tilly of the tweety-bird voice showed great comic promise during her stint as the mobster 's girlfriend on the television show , `` Hill Street Blues . '' NNP NNP IN DT JJ NN VBD JJ JJ NN IN PRP$ NN IN DT NN POS NN IN DT NN NN , `` NNP NNP NNPS . ''
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Here she delivers , especially during her enthusiastically awful rendition of the `` Candy Man , '' which she sings while prancing around in a little cotton candy pink angora sweater that could n't be more perfect . RB PRP VBZ , RB IN PRP$ RB JJ NN IN DT `` NN NN , '' WDT PRP VBZ IN NN IN IN DT JJ NN NN JJ NN NN WDT MD RB VB RBR JJ .
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-LRB- It matches her voice . -RRB- ( PRP VBZ PRP$ NN . )
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And Ms. Pfeiffer 's particular version of `` Making Whoopee '' -- and the way Mr. Ballhaus photographs her , from the tips of her red high heels right up her clingy red velvet dress -- might make you think of Marilyn Monroe if Ms. Pfeiffer had n't gone and become a star in her own right . CC NNP NNP POS JJ NN IN `` VBG NN '' : CC DT NN NNP NNP VBZ PRP$ , IN DT NNS IN PRP$ JJ JJ NNS NN IN PRP$ JJ JJ NN NN : MD VB PRP VB IN NNP NNP IN NNP NNP VBD RB VBN CC VB DT NN IN PRP$ JJ NN .
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VIDEO TIP : NN NN :
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If you 'd like to see the first time Michelle Pfeiffer sang on screen , and you have a lot of patience , take a look at `` Grease 2 . '' IN PRP MD VB TO VB DT JJ NN NNP NNP VBD IN NN , CC PRP VBP DT NN IN NN , VB DT NN IN `` NN CD . ''
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You 'll find her there . PRP MD VB PRP$ RB .
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Better yet , check out the emergence of her comic persona in `` Married to the Mob , '' Jonathan Demme 's delightful Mafia comedy . NNP RB , NN IN IN NN IN PRP$ JJ NN IN `` VBN TO DT NN , '' NNP NNP POS JJ NNP NN .
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International Proteins Corp. definitively agreed to pay $ 49 million and 2,850,000 of its shares for Hanson PLC 's Ground Round restaurant subsidiary . NNP NNPS NNP RB VBD TO VB $ CD CD CC CD IN PRP$ NNS IN NNP NNP POS NNP NNP NN NN .
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Shareholders of International Proteins , a food and agriproducts company , will vote on the transaction at a meeting late next month . NNS IN NNP NNPS , DT NN CC NNS NN , MD VB IN DT NN IN DT NN JJ JJ NN .
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Hanson is a London producer of consumer and other goods . NNP VBZ DT NNP NN IN NN CC JJ NNS .
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International Proteins shares did n't trade yesterday on the American Stock Exchange . NNP NNPS NNS VBD RB VB NN IN DT NNP NNP NNP .
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They closed Tuesday in composite trading at $ 13.625 , down 37.5 cents , giving the stock portion of the transaction an indicated value of $ 38.8 million . PRP VBD NNP IN JJ NN IN $ CD , RB CD NNS , VBG DT NN NN IN DT NN DT VBN NN IN $ CD CD .
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Control Data Corp. agreed to sell its idle supercomputer manufacturing plant here to Minnesota Mining & Manufacturing Co. for $ 5.8 million . NNP NNP NNP VBD TO VB PRP$ JJ NN NN NN RB TO NNP NNP CC NNP NNP IN $ CD CD .
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The tentative agreement calls for 3M to use the 115,000-square-foot plant and 19 acres of land for research laboratories . DT JJ NN VBZ IN CD TO VB DT JJ NN CC CD NNS IN NN IN NN NNS .
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Control Data has been seeking a buyer for the facility since it folded its ETA Systems Inc. supercomputer unit this past April . NNP NNP VBZ VBN VBG DT NN IN DT NN IN PRP VBD PRP$ NNP NNP NNP NN NN DT JJ NNP .
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General Dynamics Corp. was awarded contracts totaling $ 589 million for one Navy Trident submarine and for Air Force research on the National Aerospace plane . NNP NNP NNP VBD VBN NNS VBG $ CD CD IN CD NNP NNP NN CC IN NNP NNP NN IN DT NNP NNP NN .
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Grumman Corp. won a $ 58.9 million Navy contract for 12 F-14 aircraft . NNP NNP VBD DT $ CD CD NNP NN IN CD NN NN .
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Raytheon Co. was issued a $ 19.2 million Air Force contract for support of the Milstar communications satellite . NNP NNP VBD VBN DT $ CD CD NNP NNP NN IN NN IN DT NNP NNS NN .
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McDonnell Douglas Corp. got a $ 12.5 million Air Force contract for support work on the National Aerospace plane . NNP NNP NNP VBD DT $ CD CD NNP NNP NN IN NN NN IN DT NNP NNP NN .
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Denis C. Smith was named to the new post of vice president of world-wide advanced materials operations for this chemicals concern . NNP NNP NNP VBD VBN TO DT JJ NN IN NN NN IN JJ VBD NNS NNS IN DT NNS VBP .
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Mr. Smith , 50 years old , was formerly responsible for advanced materials , which include plastic composites and alloys , in North America only . NNP NNP , CD NNS JJ , VBD RB JJ IN VBN NNS , WDT VBP NN NNS CC NNS , IN NNP NNP RB .
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Himont is 81%-owned by Montedison S.p . A. of Milan , Italy . NNP VBZ JJ IN NNP NNP . NNP IN NNP , NNP .
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Galveston-Houston Co. said it will redeem all 3,950 shares of its privately held 6.5 % convertible Series C preferred stock Nov. 8 . NNP NNP VBD PRP MD VB DT CD NNS IN PRP$ RB VBN CD NN JJ NNP NN JJ NN NNP CD .
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Holders can either convert each share into 421 shares of the company 's common stock , or surrender their shares at the per-share price of $ 1,000 , plus accumulated dividends of $ 6.71 a share . NNS MD DT NN DT NN IN CD NNS IN DT NN POS JJ NN , CC VB PRP$ NNS IN DT JJ NN IN $ CD , CC VBD NNS IN $ CD DT NN .
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Galveston-Houston makes and markets products for the construction , mining and energy industries . NNP VBZ CC NNS NNS IN DT NN , NN CC NN NNS .
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Bank Building & Equipment Corp. of America , which previously said accounting discrepancies its auditors uncovered would hurt earnings and require restatement of earlier results , increased its projections of the negative fiscal impact , and said it was exploring the company 's sale . NNP NNP CC NNP NNP IN NNP , WDT RB VBD NN NNS PRP$ NNS VBN MD VB NNS CC VB NN IN JJR NNS , VBD PRP$ NNS IN DT JJ JJ NN , CC VBD PRP VBD VBG DT NN POS NN .
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Bank Building , which builds and equips banks , had announced it would restate the first-three quarters of this fiscal year , which ends Oct. 31 . NNP NNP , WDT VBZ CC VBZ NNS , VBN VBD PRP MD VB DT JJ NNS IN DT JJ NN , WDT VBZ NNP CD .
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On Oct. 5 , the company estimated after-tax effects on the year 's earnings would be `` at least '' $ 1.3 million . IN NNP NN , DT NN VBD JJ NNS IN DT NN POS NNS MD VB `` IN JJS '' $ CD CD .
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Yesterday , the company said the negative after-tax effect on earnings for the year will be about $ 3.3 million . NN , DT NN VBD DT JJ JJ NN IN NNS IN DT NN MD VB RB $ CD CD .
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For the nine months ended July 31 , Bank Building had a net loss of $ 1 million , on revenue of $ 66.5 million . IN DT CD NNS VBD NNP CD , NNP NNP VBD DT JJ NN IN $ CD CD , IN NN IN $ CD CD .
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Bank Building , which expects to report a fourth-quarter loss , said it engaged advisers to `` explore financial alternatives for the company including the possible sale of the company or one or more of its units . '' NNP NNP , WDT VBZ TO VB DT JJ NN , VBD PRP VBD NNS TO `` VB JJ NNS IN DT NN VBG DT JJ NN IN DT NN CC CD CC JJR IN PRP$ NNS . ''
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Company auditors are continuing their review , and final restated figures are n't yet available . NN NNS VBP VBG PRP$ NN , CC JJ VBN NNS VBP RB RB JJ .
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Bank Building earlier said the restatement is necessitated by `` certain errors in recording receivables and payables '' at its Loughman Cabinet division . NNP NNP RBR VBD DT NN VBZ VBN IN `` JJ NNS IN NN NN CC NNS '' IN PRP$ NNP NNP NN .
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That division 's manager has been fired . DT NN POS NN VBZ VBN VBN .
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In American Stock Exchange composite trading , Bank Building closed at $ 4 a share , down 62.5 cents . IN NNP NNP NNP JJ NN , NNP NNP VBD IN $ CD DT NN , RB CD NNS .
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Gen. Paul X. Kelley , retired commandant of the U.S. Marine Corps , was elected a director of this plastics , specialty materials and aerospace concern , succeeding Jewel Lafontant , who resigned to accept a government position . NNP NNP NNP NNP , VBN NN IN DT NNP NNP NNP , VBD VBN DT NN IN DT NNS , NN NNS CC NN NN , VBG NNP NNP , WP VBD TO VB DT NN NN .
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Rep. Mary Rose Oakar -LRB- D. , Ohio -RRB- at last week 's hearings on irregularities in programs at the Department of Housing and Urban Development : NNP NNP NNP NNP ( NNP , NNP ) IN JJ NN POS NNS IN NNS IN NNS IN DT NNP IN NNP CC NNP NNP :
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I do n't want to feel guilty representing my constituents . PRP VBP RB VB TO VB JJ VBG PRP$ NNS .
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And if I think that some people -LCB- on HUD Secretary Jack Kemp 's -RCB- staff are off base in terms in which they 're evaluating certain things affecting my hometown , I have to tell you something -- I 'm not going to take it . CC IN PRP VBP IN DT NNS ( IN NNP NNP NNP NNP POS ) NN VBP IN NN IN NNS IN WDT PRP VBP VBG JJ NNS VBG PRP$ NN , PRP VBP TO VB PRP NN : PRP VBP RB VBG TO VB PRP .
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I think that I 'm elected to represent the people that sent me here . PRP VBP IN PRP VBP VBN TO VB DT NNS WDT VBD PRP RB .
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And one of our charges is to be an ombudsman for our area . CC CD IN PRP$ NNS VBZ TO VB DT NN IN PRP$ NN .
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And if we 're not ombudsman for our area , we ought to be thrown out of office . CC IN PRP VBP RB NN IN PRP$ NN , PRP MD TO VB VBN IN IN NN .
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On the other hand , if we 're asking for something unreasonable or unethical and so on , then that 's a whole different story . IN DT JJ NN , IN PRP VBP VBG IN NN JJ CC JJ CC RB IN , RB DT VBZ DT JJ JJ NN .
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But if I feel that there are situations where I 'm trying to get housing for our area -- whatever it happens to be -- and I have to feel that I ca n't even ask a question , I 've got to tell you , I think that 's outrageous . . CC IN PRP VBP IN EX VBP NNS WRB PRP VBP VBG TO VB NN IN PRP$ NN : WDT PRP VBZ TO VB : CC PRP VBP TO VB IN PRP MD RB RB VB DT NN , PRP VBP VBD TO VB PRP , PRP VBP DT VBZ JJ . .
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I think these regulations that would prohibit well-operated programs in areas across this country would be wrong to change ... . PRP VBP DT NNS WDT MD VB JJ NNS IN NNS IN DT NN MD VB JJ TO VB : .
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I do n't want to see some guidelines change that 's going to inhibit my city 's opportunity to use its money . PRP VBP RB VB TO VB DT NNS VBP DT VBZ VBG TO VB PRP$ NN POS NN TO VB PRP$ NN .
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The Chicago Mercantile Exchange said it fined Capcom Futures Inc. $ 500,000 and accepted its withdrawal from membership as part of a settlement of disciplinary actions against the firm . DT NNP NNP NNP VBD PRP VBD NNP NNP NNP $ CD CC VBN PRP$ NN IN NN IN NN IN DT NN IN JJ NNS IN DT NN .
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Capcom Futures is a Chicago subsidiary of Capcom Financial Services Ltd. , a London financial firm that was implicated last year in a scheme to launder drug money . NNP NNS VBZ DT NNP NN IN NNP NNP NNP NNP , DT NNP JJ NN WDT VBD VBN JJ NN IN DT NN TO VB NN NN .
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The case is pending . DT NN VBZ VBG .
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The firm was indicted in Tampa , Fla. , on money-laundering charges . DT NN VBD VBN IN NNP , NNP , IN NN NNS .
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In June , the Chicago Board of Trade said it suspended Capcom Financial . IN NNP , DT NNP NNP IN NNP VBD PRP VBD NNP NNP .
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The Capcom Futures unit withdrew from Board of Trade membership voluntarily in August , a Board of Trade spokesman said . DT NNP NNS NN VBD IN NNP IN NNP NN RB IN NNP , DT NNP IN NNP NN VBD .
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Capcom Futures , while neither admitting nor denying the Merc charges , said in a statement that the Merc charges were `` technical in nature '' and that `` no customers were hurt '' as a result of the violations cited by the Merc . NNP NNS , IN DT VBG CC VBG DT NNP NNS , VBD IN DT NN IN DT NNP NNS VBD `` JJ IN NN '' CC IN `` DT NNS VBD VBN '' IN DT NN IN DT NNS VBN IN DT NNP .
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The Merc alleged that , among other things , from April 1987 through October 1988 Capcom Futures failed to document trades between Capcom Futures and people or entities directly or indirectly controlled by Capcom Futures shareholders . DT NNP VBD IN , IN JJ NNS , IN NNP CD IN NNP CD NNP NNS VBD TO VB NNS IN NNP NNS CC NNS CC NNS RB CC RB VBN IN NNP NNS NNS .
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Frederick W. Lang , 65 years old , the founder of this software services concern , was elected to the new post of chairman . NNP NNP NNP , CD NNS JJ , DT NN IN DT NN NNS VBP , VBD VBN TO DT JJ NN IN NN .
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Formerly president and treasurer , Mr. Lang remains chief executive officer . RB NN CC NN , NNP NNP VBZ JJ JJ NN .
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Victor C. Benda , 58 , formerly executive vice president , succeeds Mr. Lang as president and becomes chief operating officer , a new post . NNP NNP NNP , CD , RB JJ NN NN , VBZ NNP NNP IN NN CC VBZ JJ VBG NN , DT JJ NN .
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Maurice Warren , 56-year-old group managing director , was named chief executive officer of this food and agriculture group . NNP NNP , JJ NN VBG NN , VBD VBN JJ JJ NN IN DT NN CC NN NN .
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The post of chief executive has been vacant since July when Terry Pryce , 55 , left the company . DT NN IN JJ NN VBZ VBN JJ IN NNP WRB NNP NNP , NN , VBD DT NN .
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Money-market mutual fund assets grew at nearly three times their usual rate in the latest week , as investors opted for safety instead of the stock market . NN JJ NN NNS VBD IN RB CD NNS PRP$ JJ NN IN DT JJS NN , IN NNS VBD IN NN RB IN DT NN NN .
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Money-fund assets soared $ 4.5 billion in the week ended Tuesday , to a record $ 348.4 billion , according to IBC\/Donoghue 's Money Fund Report , a Holliston , Mass.-based newsletter . JJ NNS VBD $ CD CD IN DT NN VBN NNP , TO DT NN $ CD CD , VBG TO NN POS NNP NNP NNP , DT NNP , JJ NN .
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`` We were expecting it , following the fall of the Dow Friday , '' said Brenda Malizia Negus , editor of Money Fund Report . `` PRP VBD VBG PRP , VBG DT NN IN DT NNP NNP , '' VBD NNP NNP NNP , NN IN NNP NNP NNP .
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`` It 's the proverbial flight to safety . '' `` PRP VBZ DT JJ NN TO VB . ''
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Despite recent declines in interest rates , money funds continue to offer better yields than other comparable investments . IN JJ NNS IN NN NNS , NN NNS VBP TO VB JJR NNS IN JJ JJ NNS .
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The average seven-day compound yield on the 400 taxable funds tracked by IBC\/Donoghue 's was 8.55 % in the latest week , down from 8.60 % . DT JJ JJ NN NN IN DT CD JJ NNS VBN IN NN POS VBD CD NN IN DT JJS NN , RB IN CD NN .
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Compound yields assume reinvestment of dividends and that current yields continue for a year . JJ NNS VBP NN IN NNS CC IN JJ NNS VBP IN DT NN .
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Most short-term certificates of deposit are yielding about 8 % or less at major banks , and the yields on Treasury bills sold at Monday 's auction fell to 7.61 % for three months and 7.82 % for six months . JJS JJ NNS IN NN VBP VBG IN CD NN CC JJR IN JJ NNS , CC DT NNS IN NNP NNS VBN IN NNP POS NN VBD TO CD NN IN CD NNS CC CD NN IN CD NNS .
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Money-fund assets have been rising at an average rate of $ 1.6 billion a week in recent months , Ms. Negus said , reflecting the relatively high yields . JJ NNS VBP VBN VBG IN DT JJ NN IN $ CD CD DT NN IN JJ NNS , NNP NNP VBD , VBG DT RB JJ NNS .
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In the latest week , funds open to institutions alone grew by $ 1.8 billion . IN DT JJS NN , NNS JJ TO NNS RB VBN IN $ CD CD .
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Some fund managers say inflows could increase in coming days as a result of stock selling in the wake of Friday 's 190.58 point drop in the Dow Jones Industrial Average . DT NN NNS VBP NNS MD VB IN VBG NNS IN DT NN IN NN VBG IN DT NN IN NNP POS CD NN NN IN DT NNP NNP NNP NNP .
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`` If you 're selling equities , you do n't start getting proceeds for five to seven days , '' said Frank Rachwalski , who manages the Kemper Money Market Fund . `` IN PRP VBP VBG NNS , PRP VBP RB VB VBG NNS IN CD TO CD NNS , '' VBD NNP NNP , WP VBZ DT NNP NNP NNP NNP .
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Neal Litvack , marketing vice president for Fidelity Investments , said inflows Friday into Fidelity 's Spartan and Cash Reserves money-market funds were about twice normal levels , with about half coming from equity and junk-bond funds . NNP NNP , NN NN NN IN NNP NNPS , VBD NNS NNP IN NNP POS NNP CC NNP NNS JJ NNS VBD IN RB JJ NNS , IN IN NN VBG IN NN CC NN NNS .
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Monday and Tuesday `` were lackluster in comparison , '' he said . NNP CC NNP `` VBD JJ IN NN , '' PRP VBD .
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`` People are n't necessarily running scared , '' Mr. Litvack said . `` NNS VBP RB RB VBG VBN , '' NNP NNP VBD .
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`` They 're maintaining their attitude toward investing , which has leaned toward the conservative recently . '' `` PRP VBP VBG PRP$ NN IN VBG , WDT VBZ VBN IN DT JJ RB . ''
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Money-fund yields tend to lag interestrate trends as portfolio managers adjust the maturities of their investments -- short-term Treasury securities , commercial paper and the like -- to capture the highest yields . JJ NNS VBP TO VB NN NNS IN NN NNS VBP DT NNS IN PRP$ NNS : NNP NNP NNS , JJ NN CC DT NN : TO VB DT JJS NNS .
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Maturities usually are shorter when rates are rising and longer when they are falling . NNS RB VBP JJR WRB NNS VBP VBG CC RB WRB PRP VBP VBG .
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The average maturity of the funds tracked by IBC\/Donoghue 's remained at 38 days for the third consecutive week . DT JJ NN IN DT NNS VBN IN NN POS VBD IN CD NNS IN DT JJ JJ NN .
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It was as short as 29 days at the start of this year , when rates were marching steadily upward , and hit 42 days in August . PRP VBD RB JJ IN CD NNS IN DT NN IN DT NN , WRB NNS VBD VBG RB RB , CC VBD CD NNS IN NNP .
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The average seven-day simple yield of the funds fell to 8.21 % this week from 8.26 % . DT JJ JJ JJ NN IN DT NNS VBD TO CD NN DT NN IN CD NN .
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The average 30-day simple yield was 8.26 % , compared with 8.27 % the week before , and the 30-day compound yield slid to 8.60 % from 8.61 % . DT JJ JJ JJ NN VBD CD NN , VBN IN CD NN DT NN RB , CC DT JJ NN NN VBD TO CD NN IN CD NN .
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Some funds are posting yields far higher than the average . DT NNS VBP VBG NNS RB JJR IN DT NN .
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The highest yielding taxable fund this week was Harbor Money Market Fund , with a seven-day compound yield of 12.75 % . DT JJS VBG JJ NN DT NN VBD NNP NNP NNP NNP , IN DT JJ NN NN IN CD NN .
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That included capital gains that were passed along to customers . DT VBN NN NNS WDT VBD VBN IN TO NNS .
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Among the other high-yielding funds , Fidelity 's Spartan Fund had a seven-day compound yield of 9.33 % in the latest week . IN DT JJ JJ NNS , NNP POS NNP NNP VBD DT JJ NN NN IN CD NN IN DT JJS NN .
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The seven-day compound yield of the Dreyfus Worldwide Dollar Fund was 9.51 % . DT JJ NN NN IN DT NNP NNP NNP NNP VBD CD NN .
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whose Della Femina McNamee WCRS agency created liar Joe Isuzu , among others -- announced a massive restructuring that largely removes it from the advertising business and includes selling the majority of its advertising unit to Paris-based Eurocom . WP$ NNP NNP NNP NNP NN VBD NN NNP NNP , IN NNS : VBD DT JJ NN WDT RB VBZ PRP IN DT NN NN CC VBZ VBG DT NN IN PRP$ NN NN TO JJ NNP .
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The complex restructuring , which was long expected , transforms London-based WCRS from primarily a creator of advertising into one of Europe 's largest buyers of advertising time and space . DT JJ NN , WDT VBD RB VBN , VBZ NNP NNP IN RB DT NN IN NN IN CD IN NNP POS JJS NNS IN NN NN CC NN .
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It also creates a newly merged world-wide ad agency controlled by Eurocom and headed jointly by New York ad man Jerry Della Femina and two top WCRS executives . PRP RB VBZ DT RB VBN JJ NN NN VBN IN NNP CC VBN RB IN NNP NNP NN NN NNP NNP NNP CC CD JJ NNP NNS .
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The merged agency 's admittedly ambitious goal : to become one of the world 's 10 largest agencies , while attracting more multinational clients than the agencies were able to attract alone . DT VBN NN POS RB JJ NN : TO VB CD IN DT NN POS CD JJS NNS , IN VBG RBR JJ NNS IN DT NNS VBD JJ TO VB RB .
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WCRS 's restructuring reflects the growing importance of media buying in Europe , where the only way to get a good price on advertising time and space is to buy it in bulk . NNP POS NN VBZ DT VBG NN IN NNS VBG IN NNP , WRB DT JJ NN TO VB DT JJ NN IN NN NN CC NN VBZ TO VB PRP IN NN .
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For Eurocom , meanwhile , the move gives it a strong U.S. foothold in Della Femina , and more than quadruples the size of its ad agency business world-wide . IN NNP , RB , DT NN VBZ PRP DT JJ NNP NN IN NNP NNP , CC JJR IN VBZ DT NN IN PRP$ NN NN NN JJ .
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It also gives the outspoken Mr. Della Femina -- who often generates as much publicity for himself as for his clients -- an international platform that he most certainly wo n't be loath to use . PRP RB VBZ DT JJ NNP NNP NNP : WP RB VBZ IN JJ NN IN PRP IN IN PRP$ NNS : DT JJ NN IN PRP RBS RB MD RB VB JJ TO VB .
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According to terms , WCRS will pay 2.02 billion French francs -LRB- $ 318.6 million -RRB- for the 50 % it does n't already own of Carat Holding S.A. , one of Europe 's largest media buyers . VBG TO NNS , NNP MD VB CD CD JJ NNS ( $ CD CD ) IN DT CD NN PRP VBZ RB RB JJ IN NNP NNP NNP , CD IN NNP POS JJS NNS NNS .
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Meanwhile , Eurocom , which had held 20 % of WCRS 's ad unit , will pay # 43.5 million -LRB- $ 68.5 million -RRB- to raise its stake to 60 % . RB , NNP , WDT VBD VBN CD NN IN NNP POS NN NN , MD VB # CD CD ( $ CD CD ) TO VB PRP$ NN TO CD NN .
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That price also covers Eurocom raising to 60 % its 51 % stake in Europe 's Belier Group , a joint venture ad agency network it owns with WCRS . DT NN RB VBZ NNP VBG TO CD VB PRP$ CD NN NN IN NNP POS NNP NNP , DT JJ NN NN NN NN PRP VBZ IN NNP .
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Eurocom will also have the right to buy the remaining 40 % of the merged ad agency group in six years . NNP MD RB VB DT NN TO VB DT VBG CD NN IN DT VBN NN NN NN IN CD NNS .
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The transaction places the three executives squarely at the helm of a major agency with the rather unwieldy name of Eurocom WCRS Della Femina Ball Ltd. , or EWDB . DT NN VBZ DT CD NNS RB IN DT NN IN DT JJ NN IN DT RB JJ NN IN NNP NNP NNP NNP NNP NNP , CC NNP .
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The merged agency will include Della Femina McNamee based in New York , Eurocom 's various agencies in France , the Belier Group in Europe and WCRS 's other advertising and direct marketing operations . DT VBN NN MD VB NNP NNP NNP VBD IN NNP NNP , NNP POS JJ NNS IN NNP , DT NNP NNP IN NNP CC NNP POS JJ NN CC JJ NN NNS .
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Mr. Della Femina will be joint chairman with former WCRS executive Robin Wight . NNP NNP NNP MD VB JJ NN IN JJ NNP NN NNP NNP .
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Both will report to Tim Breene , a former WCRS executive who will be chief executive officer at the new agency . DT MD VB TO NNP NNP , DT JJ NNP NN WP MD VB JJ JJ NN IN DT JJ NN .
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In an interview in New York , Mr. Breene , fresh from a Concorde flight from Paris where executives had worked through most of the night , outlined big plans for the new agency . IN DT NN IN NNP NNP , NNP NNP , JJ IN DT NNP NN IN NNP WRB NNS VBD VBN IN RBS IN DT NN , VBN JJ NNS IN DT JJ NN .
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`` Our goal is to develop quite rapidly to a top-10 position ... by the end of three years from now . `` PRP$ NN VBZ TO VB RB RB TO DT JJ NN : IN DT NN IN CD NNS IN RB .
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It implies very dramatic growth , '' he said . PRP VBZ RB JJ NN , '' PRP VBD .
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He added that Eurocom and WCRS had agreed to provide a development fund of # 100 million for acquisitions . PRP VBD IN NNP CC NNP VBD VBN TO VB DT NN NN IN # CD CD IN NNS .
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The new agency group is already in discussions about a possible purchase in Spain , while Mr. Breene said it also plans to make acquisitions in Scandinavia , Germany and elsewhere . DT JJ NN NN VBZ RB IN NNS IN DT JJ NN IN NNP , IN NNP NNP VBD PRP RB VBZ TO VB NNS IN NNP , NNP CC RB .
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Cracking the top 10 within three years will be difficult at best . VBG DT JJ CD IN CD NNS MD VB JJ IN JJS .
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Della Femina had billings of just $ 660 million last year and ranked as the U.S. 's 24th-largest ad agency . NNP NNP VBD NNS IN RB $ CD CD JJ NN CC VBD IN DT NNP POS JJ NN NN .
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The merged company that it now becomes part of will have billings of just more than $ 2.6 billion -- most of that in Europe -- bringing it to about 14th world-wide . DT VBN NN IN PRP RB VBZ NN IN MD VB NNS IN RB JJR IN $ CD CD : RBS IN DT NN NNP : VBG PRP TO IN JJ JJ .
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To make it to top-10 status , it would have to leapfrog over such formidable forces as Grey Advertising , D'Arcy Masius Benton & Bowles and Omnicom 's DDB Needham . TO VB PRP TO JJ NN , PRP MD VB TO VB IN JJ JJ NNS IN NNP NNP , NNP NNP NNP CC NNP CC NNP POS NNP NNP .
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The merged agency 's game plan to attract multinational packaged-goods advertisers may prove equally difficult . DT VBN NN POS NN NN TO VB JJ NNS NNS MD VB RB JJ .
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When WCRS created Della Femina McNamee out of the merger of three smaller agency units in 1988 , it said it did so in order to attract larger clients , especially packaged-goods companies . WRB NNP VBD NNP NNP NNP IN IN DT NN IN CD JJR NN NNS IN CD , PRP VBD PRP VBD RB IN NN TO VB JJR NNS , RB NNS NNS .
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Since then , Della Femina won Pan Am as an international client and also does work for a few packaged-goods clients , including Dow Chemical Co. 's Saran Wrap . IN RB , NNP NNP VBD NNP NNP IN DT JJ NN CC RB VBZ NN IN DT JJ NNS NNS , VBG NNP NNP NNP POS NNP NNP .
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But major packaged-goods players of the world -- such as Procter & Gamble , Colgate-Palmolive and Unilever -- have steadfastly eluded the agency . CC JJ NNS NNS IN DT NN : JJ IN NNP CC NNP , NNP CC NNP : VBP RB VBN DT NN .
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`` Three of our favorite names , '' Mr. Della Femina calls that roster , adding hopefully , `` We 're a much more attractive agency to large multinationals today than we were yesterday . '' `` CD IN PRP$ JJ NNS , '' NNP NNP NNP VBZ DT NN , VBG RB , `` PRP VBP DT RB RBR JJ NN TO JJ NNS NN IN PRP VBD NN . ''
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Still , the restructuring could create one of the most powerful alliances between advertising and media-buying firms that Europe has seen . RB , DT NN MD VB CD IN DT RBS JJ NNS IN NN CC JJ NNS IN NNP VBZ VBN .
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As part of the restructuring , WCRS and Eurocom said they will look for ways to combine their media buying across Europe . IN NN IN DT NN , NNP CC NNP VBD PRP MD VB IN NNS TO VB PRP$ NNS VBG IN NNP .
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What 's more , both Eurocom and brothers Francis and Gilbert Gross , who founded Carat , will acquire 14.99 % stakes in WCRS Group , creating a powerful link between Eurocom and Carat . WP VBZ JJR , DT NNP CC NNS NNP CC NNP NNP , WP VBD NNP , MD VB CD NN NNS IN NNP NNP , VBG DT JJ NN IN NNP CC NNP .
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Carat will receive its WCRS stake as part of payment for the 50 % Carat stake that WCRS is buying , while Eurocom said it expects to pay about # 32 million for its WCRS stake . NNP MD VB PRP$ NNP NN IN NN IN NN IN DT CD NN NNP NN IN NNP VBZ VBG , IN NNP VBD PRP VBZ TO VB IN # CD CD IN PRP$ NNP NN .
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Mr. Della Femina says he plans to remain heavily involved in the creative product at the world-wide agency , serving as a sort of `` creative conscience . '' NNP NNP NNP VBZ PRP VBZ TO VB RB VBN IN DT JJ NN IN DT JJ NN , VBG IN DT NN IN `` JJ NN . ''
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Louise McNamee , Della Femina 's president , will continue running the U.S. agency day-to-day . NNP NNP , NNP NNP POS NN , MD VB VBG DT NNP NN JJ .
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They and other top executives signed long-term employment contracts and Mr. Della Femina will receive an additional multimillion-dollar sum , which some industry executives pegged at about $ 10 million . PRP CC JJ JJ NNS VBD JJ NN NNS CC NNP NNP NNP MD VB DT JJ JJ NN , WDT DT NN NNS VBN IN RB $ CD CD .
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WCRS Group , for its part , will now be able to follow its longstanding plan of becoming `` a holding company for a series of media-related businesses , '' said Peter Scott , the firm 's chief executive . NNP NNP , IN PRP$ NN , MD RB VB JJ TO VB PRP$ JJ NN IN VBG `` DT VBG NN IN DT NN IN JJ NNS , '' VBD NNP NNP , DT NN POS JJ NN .
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In addition to Carat , WCRS will hold onto its public relations , TV programming and other businesses . IN NN TO NNP , NNP MD VB IN PRP$ JJ NNS , NN NN CC JJ NNS .
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WCRS says its debt will be cut to # 24 million from # 66 million as a result of the transaction . NNP VBZ PRP$ NN MD VB VBN TO # CD CD IN # CD CD IN DT NN IN DT NN .
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For Carat , meanwhile , the alliance with Eurocom and WCRS is intended to strengthen its own push outside France . IN NNP , RB , DT NN IN NNP CC NNP VBZ VBN TO VB PRP$ JJ NN IN NNP .
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Carat 's Gross brothers invented the idea of large-scale buying of media space . NNP POS NNP NNS VBD DT NN IN JJ NN IN NNS NN .
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By buying the space in bulk , they obtain discounts as high as 50 % , which they can pass on to customers . IN VBG DT NN IN NN , PRP VBP NNS RB JJ IN CD NN , WDT PRP MD VB IN TO NNS .
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They thus have won the French space-buying business of such advertising giants as Coca-Cola Co. , Fiat S.p . A. , Gillette and Kodak . PRP RB VBP VBN DT JJ NN NN IN JJ NN NNS IN NNP NNP , NNP NNP . NNP , NNP CC NNP .
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But now , other agencies are getting into the business with their own competing media-buying groups -- and Carat wants to expand to the rest of Europe . CC RB , JJ NNS VBP VBG IN DT NN IN PRP$ JJ VBG JJ NNS : CC NNP VBZ TO VB TO DT NN IN NNP .
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To help finance the Carat purchase , WCRS said it plans an issue of Euroconvertible preferred shares once the market settles down . TO VB VB DT NNP NN , NNP VBD PRP VBZ DT NN IN JJ JJ NNS RB DT NN VBZ RB .
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But WCRS added that `` in the light of the current uncertainty in the equity markets , '' it has arranged medium-term debt financing , which would be underwritten by Samuel Montagu & Co. Ltd . CC NNP VBD IN `` IN DT NN IN DT JJ NN IN DT NN NNS , '' PRP VBZ VBN JJ NN NN , WDT MD VB VBN IN NNP NNP CC NNP NNP .
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Earthquake 's Damage NN POS NN
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Tuesday 's earthquake brought the San Francisco ad scene to a screeching halt yesterday , with only a few staffers showing up at their offices , mainly to survey the damage or to wring their hands about imminent new-business presentations . NNP POS NN VBD DT NNP NNP NN NN TO DT VBG NN NN , IN RB DT JJ NNS VBG IN IN PRP$ NNS , RB TO VB DT NN CC TO VB PRP$ NNS IN JJ NN NNS .
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While no agencies reported injuries to employees , the quake damaged the offices of J. Walter Thompson , Chiat\/Day\/Mojo and DDB Needham , among others , spokesmen for those agencies said . IN DT NNS VBD NNS TO NNS , DT NN VBD DT NNS IN NNP NNP NNP , NNP CC NNP NNP , IN NNS , NNS IN DT NNS VBD .
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Staffers at Thompson , whose offices are in the ultramodern Embarcadero Center , watched pictures drop from the walls and then felt the skyscraper sway seven to eight feet , according to a spokeswoman . NNS IN NNP , WP$ NNS VBP IN DT JJ NNP NNP , VBD NNS VBP IN DT NNS CC RB VBD DT NN NN CD TO CD NNS , VBG TO DT NN .
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Plaster fell and windows were broken at Chiat\/Day\/Mojo , a spokesman for that agency said . NNP VBD CC NNS VBD VBN IN NNP , DT NN IN DT NN VBD .
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Late yesterday afternoon , DDB Needham executives were scrambling to figure out what to do about a new business presentation that had been scheduled for today , a spokesman said . JJ NN NN , NNP NNP NNS VBD VBG TO VB IN WP TO VB IN DT JJ NN NN WDT VBD VBN VBN IN NN , DT NN VBD .
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DDB Needham 's office building may have sustained structural damage , the spokesman added . NNP NNP POS NN NN MD VB VBN JJ NN , DT NN VBD .
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`` All operations have stopped , '' he said . `` DT NNS VBP VBN , '' PRP VBD .
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A number of agencies , including Thompson and Foote , Cone & Belding , said some employees who live outside of San Francisco , fearful that they would n't be able to get home , spent the night at the agency . DT NN IN NNS , VBG NNP CC NNP , NNP CC NNP , VBD DT NNS WP VBP IN IN NNP NNP , JJ IN PRP MD RB VB JJ TO VB NN , VBD DT NN IN DT NN .
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Ad Notes ... . NN NNS : .
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NEW ACCOUNT : JJ NN :
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Chesebrough-Pond 's Inc. , Greenwich , Conn. , awarded its Faberge hair care accounts to J. Walter Thompson , New York . NNP POS NNP , NNP , NNP , VBD PRP$ NNP NN NN NNS TO NNP NNP NNP , NNP NNP .
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Thompson , a unit of WPP Group , will handle Faberge Organic shampoo and conditioner and Aqua Net hairspray . NNP , DT NN IN NNP NNP , MD VB NNP NNP NN CC NN CC NNP JJ NN .
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The accounts , which billed about $ 7 million last year , according to Leading National Advertisers , were previously handled at Bozell , New York . DT NNS , WDT VBD RB $ CD CD JJ NN , VBG TO VBG NNP NNS , VBD RB VBN IN NNP , NNP NNP .
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WHO 'S NEWS : WP VBZ NN :
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William Morrissey , 44 , was named executive vice president , world-wide director of McCann Direct , the direct marketing unit of Interpublic Group 's McCann-Erickson agency . NNP NNP , CD , VBD VBN JJ NN NN , JJ NN IN NNP JJ , DT JJ NN NN IN NNP NNP POS NNP NN .
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He had been president and chief operating officer of Ogilvy & Mather Direct . PRP VBD VBN NN CC JJ VBG NN IN NNP CC NNP JJ .
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BOZELL : NNP :
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Los Angeles will be the site of a new entertainment division for the ad agency . NNP NNP MD VB DT NN IN DT JJ NN NN IN DT NN NN .
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The division will be headed by Dick Porter , who returns to Bozell after being vice president of media at MGM . DT NN MD VB VBN IN NNP NNP , WP VBZ TO NNP IN VBG NN NN IN NNS IN NNP .
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AC&R ADVERTISING : NNP NNP :
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The agency 's three California offices , previously called AC&R\/CCL Advertising , will now be called AC&R Advertising to match the name of its New York office . DT NN POS CD NNP NNS , RB VBN NNP NNP , MD RB VB VBN NNP NNP TO VB DT NN IN PRP$ NNP NNP NN .
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AC&R Advertising is a unit of Saatchi & Saatchi Co . NNP NNP VBZ DT NN IN NNP CC NNP NNP .
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NEW BEER : JJ NN :
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Sibra Products Inc. , Greenwich , Conn. , awarded its Cardinal Amber Light beer account to Heidelberg & Associates , New York . NNP NNP NNP , NNP , NNP , VBD PRP$ NNP NNP NNP NN NN TO NNP CC NNPS , NNP NNP .
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Budget is set at $ 1.5 million . NNP VBZ VBN IN $ CD CD .
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The new beer , introduced this week at a liquor industry convention , is imported from Switzerland 's Cardinal brewery . DT JJ NN , VBD DT NN IN DT NN NN NN , VBZ VBN IN NNP POS NNP NN .
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Heidelberg 's first ads for the brand , which Sibra says will compete with imported light beer leader Amstel Light , feature the line `` The best tasting light beer you 've ever seen . NNP POS JJ NNS IN DT NN , WDT NNP VBZ MD VB IN VBN NN NN NN NNP NNP , NN DT NN `` DT JJS VBG NN NN PRP VBP RB VBN .
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Diamond-Star Motors Corp. , a joint venture of Chrysler Corp. and Mitsubishi Motors Corp. said it will begin shipping Mitsubishi Eclipse cars to Japan next week , emulating other Japanese auto ventures shipping U.S.-built vehicles back to Japan . NNP NNPS NNP , DT JJ NN IN NNP NNP CC NNP NNPS NNP VBD PRP MD VB VBG NNP NNP NNS TO NNP JJ NN , VBG JJ JJ NN NNS VBG JJ NNS RB TO NNP .
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Diamond-Star said it will export about 1,500 Eclipse cars to Japan by year 's end . NNP VBD PRP MD VB IN CD NNP NNS TO NNP IN NN POS NN .
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Honda Motor Co. , the first Japanese auto maker to ship cars to Japan from the U.S. , is now exporting more than 5,000 Accord Coupes a year from its Marysville , Ohio , factory . NNP NNP NNP , DT JJ JJ NN NN TO VB NNS TO NNP IN DT NNP , VBZ RB VBG JJR IN CD NNP NNP DT NN IN PRP$ NNP , NNP , NN .
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One of the most remarkable features of the forced marches of the ethnic Turks out of Bulgaria over the past five months has been the lack of international attention . CD IN DT RBS JJ NNS IN DT VBN NNS IN DT JJ NNPS IN IN NNP IN DT JJ CD NNS VBZ VBN DT NN IN JJ NN .
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The deportation of more than 315,000 men , women and children by the Bulgarian regime adds up to one of the largest migrations seen in the postwar years . DT NN IN JJR IN CD NNS , NNS CC NNS IN DT JJ NN VBZ IN TO CD IN DT JJS NNS VBN IN DT JJ NNS .
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Yet some people are advancing a chilling casuistry : that what we are seeing is somehow the understandable result of the historical sins committed by the Turks in the 16th century . RB DT NNS VBP VBG DT VBG NN : IN WP PRP VBP VBG VBZ RB DT JJ NN IN DT JJ NNS VBN IN DT NNPS IN DT JJ NN .
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Today 's Turks in Bulgaria , in other words , deserve what is coming to them four centuries later . NN POS NNPS IN NNP , IN JJ NNS , VBP WP VBZ VBG TO PRP CD NNS RB .
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As if this were n't enough , the Senate Judiciary Committee is getting into the act . IN IN DT VBD RB RB , DT NNP NNP NNP VBZ VBG IN DT NN .
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On Tuesday it approved Senator Bob Dole 's proposed commemorative resolution designating April 24 , 1990 , as the `` National Day of Remembrance of the 75th Anniversary of the Armenian Genocide of 1915-1923 , '' suffered at the hands of the warring Ottoman Empire . IN NNP PRP VBD NNP NNP NNP POS VBN JJ NN VBG NNP CD , CD , IN DT `` NNP NNP IN NN IN DT CD NNP IN DT JJ NN IN CD , '' VBD IN DT NNS IN DT VBG NNP NNP .
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There can be no quibbling that the Armenians endured terrible suffering , but one has to wonder what possible good such a resolution will achieve . EX MD VB DT VBG IN DT NNPS VBD JJ NN , CC CD VBZ TO VB WP JJ JJ JJ DT NN MD VB .
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It puts great strain on a longstanding U.S. friendship with Turkey , a country that has been one of America 's strongest allies in NATO . PRP VBZ JJ NN IN DT JJ NNP NN IN NNP , DT NN WDT VBZ VBN CD IN NNP POS JJS NNS IN NNP .
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The resolution also comes at a time when Turkey has been seeking help from the United States in resolving its Bulgarian emigration controversy and pursuing democratic reforms that may lead to membership in the European Community . DT NN RB VBZ IN DT NN WRB NNP VBZ VBN VBG VB IN DT NNP NNPS IN VBG PRP$ JJ NN NN CC VBG JJ NNS WDT MD VB TO NN IN DT NNP NNP .
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Turkey has been fighting its past for years , and thus far has been only partially successful . NNP VBZ VBN VBG PRP$ JJ IN NNS , CC RB RB VBZ VBN RB RB JJ .
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Must it now accept that one of its strongest allies blames it for the genocide of another people ? MD PRP RB VB IN CD IN PRP$ JJS NNS VBZ PRP IN DT NN IN DT NNS .
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Such sentiment only encourages the adverse feelings toward Turkey that surfaced when Turkey asked for assistance in dealing with its Bulgarian emigration crisis . JJ NN RB VBZ DT JJ NNS IN NNP WDT VBD WRB NNP VBD IN NN IN VBG IN PRP$ JJ NN NN .
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Mr. Dole 's odd effort notwithstanding , most of Turkey 's political problems lie with the Europeans . NNP NNP POS JJ NN IN , RBS IN NNP POS JJ NNS VBP IN DT NNPS .
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Part of the problem some Europeans have with Turkey seems to stem from its location -- Turkey is n't really part of Europe . NN IN DT NN DT NNPS VBP IN NNP VBZ TO VB IN PRP$ NN : NNP VBZ RB RB NN IN NNP .
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Why , they wonder , should it belong to the EC ? WRB , PRP VBP , MD PRP VB TO DT NNP .
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Another anti-Turkish hook is the Islamic faith of the majority of the Turkish people : Turkey , we are told , is not a Christian nation ; its people simply wo n't fit in with the Western European Judeo-Christian tradition . DT JJ NN VBZ DT NNP NN IN DT NN IN DT JJ NNS : NNP , PRP VBP VBN , VBZ RB DT NNP NN : PRP$ NNS RB MD RB VB IN IN DT JJ JJ JJ NN .
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It 's when these rationalizations fall on deaf ears that the old standby of retribution for treatment at the hands of the Ottoman Empire comes to the fore . PRP VBZ WRB DT NNS VBP IN JJ NNS IN DT JJ NN IN NN IN NN IN DT NNS IN DT NNP NNP VBZ TO DT NN .
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No one has to accept the sins of the Ottoman Empire to reject that argument . DT CD VBZ TO VB DT NNS IN DT NNP NNP TO VB DT NN .
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Turkey in any event is long past it . NNP IN DT NN VBZ JJ JJ PRP .
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The country has in recent years accepted more than 500,000 refugees from at least four bordering nations . DT NN VBZ IN JJ NNS VBN JJR IN CD NNS IN IN JJS CD VBG NNS .
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Kurds , suffering what many people consider to be a current extermination campaign at the hands of Syria , Iran and Iraq have inundated eastern Turkey . NNPS , VBG WP JJ NNS VBP TO VB DT JJ NN NN IN DT NNS IN NNP , NNP CC NNP VBP VBN JJ NNP .
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Now it is their fellow Turks arriving as refugees from Bulgaria . RB PRP VBZ PRP$ NN NNPS VBG IN NNS IN NNP .
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The Turkish refugee tragedy and the ongoing crisis can not be ignored and shuttled off to that notorious dustbin of history that has become so convenient recently . DT JJ NN NN CC DT JJ NN MD RB VB VBN CC VBD IN TO IN JJ NN IN NN WDT VBZ VBN RB JJ RB .
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Surely , the past suffering of any people at any time can not be simply filed away and forgotten . RB , DT JJ NN IN DT NNS IN DT NN MD RB VB RB VBN RB CC VBN .
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But what the Senate Judiciary Committee has done in supporting the strongly worded Armenian resolution achieves no useful end ; it merely produces more controversy and embittered memories . CC WP DT NNP NNP NNP VBZ VBN IN VBG DT RB VBN JJ NN VBZ DT JJ NN : PRP RB VBZ JJR NN CC VBN NNS .
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Congress has enough difficulty dealing with the realities of the world as it currently exists . NNP VBZ JJ NN VBG IN DT NNS IN DT NN IN PRP RB VBZ .
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Bulgaria 's government has been behaving beyond the pale for months , and the U.S. does its values no credit by ignoring that while casting its votes into the past . NNP POS NN VBZ VBN VBG IN DT NN IN NNS , CC DT NNP VBZ PRP$ NNS DT NN IN VBG IN IN VBG PRP$ NNS IN DT NN .
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Many in Washington say President Bush will have to raise taxes to pay for his war on drugs . JJ IN NNP VBP NNP NNP MD VB TO VB NNS TO VB IN PRP$ NN IN NNS .
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We have a better idea : Dismantle HUD to pay for the war on drugs . PRP VBP DT JJR NN : VB NNP TO VB IN DT NN IN NNS .
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Housing and Urban Development 's budget is $ 17 billion . NNP CC NNP NNP POS NN VBZ $ CD CD .
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From what we and the nation have been reading , the money is n't being spent very well . IN WP PRP CC DT NN VBP VBN NN , DT NN VBZ RB VBG VBN RB RB .
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The single most important contribution the government could make now to help the poor is to get the specter of drugs out of their neighborhoods . DT JJ RBS JJ NN DT NN MD VB RB TO VB DT NN VBZ TO VB DT NN IN NNS IN IN PRP$ NNS .
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If that takes money , take it away from this discredited federal department . IN DT VBZ NN , VB PRP RB IN DT VBN JJ NN .
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But of course the Democrats pillorying HUD in hearings and in the press have no such solution in mind . CC IN NN DT NNPS VBG NNP IN NNS CC IN DT NN VBP DT JJ NN IN NN .
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Instead , they 're scrambling to protect the very programs at the heart of the HUD scandal . RB , PRP VBP VBG TO VB DT JJ NNS IN DT NN IN DT NNP NN .
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This month , HUD Secretary Jack Kemp unveiled a series of proposed reforms to improve management at HUD . DT NN , NNP NNP NNP NNP VBD DT NN IN VBN NNS TO VB NN IN NNP .
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No doubt many of his ideas are worthy , but ultimately he is proposing to make fundamentally flawed programs work slightly more fairly and efficiently . DT NN NN IN PRP$ NNS VBP JJ , CC RB PRP VBZ VBG TO VB RB JJ NNS VBP RB RBR RB CC RB .
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Congress is unlikely to go even that far . NNP VBZ JJ TO VB RB DT RB .
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Last week , Secretary Kemp ran into a buzzsaw of criticism from House Banking Committee members . JJ NN , NNP NNP VBD IN DT NN IN NN IN NNP NNP NNP NNS .
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They were appalled , for instance , that he wanted to target more of the $ 3 billion Community Development Block Grant -LRB- CDBG -RRB- program to low-income projects and zero out the notorious `` discretionary '' funds that have allowed HUD officials to steer contracts to political cronies . PRP VBD VBN , IN NN , IN PRP VBD TO VB JJR IN DT $ CD CD NNP NNP NNP NNP ( NNP ) NN TO JJ NNS CC CD RP IN JJ `` JJ '' NNS WDT VBP VBN NNP NNS TO VB NNS TO JJ NNS .
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These development grants mainly enrich developers who want to put up shopping centers and parking garages . DT NN NNS RB VBP NNS WP VBP TO VB IN NN NNS CC NN NNS .
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They also give those in Congress political credit for bringing home the pork , and so they are popular with such Members as Mary Rose Oakar . PRP RB VBP DT NN NNP JJ NN IN VBG NN DT NN , CC IN PRP VBP JJ IN JJ NNS IN NNP NNP NNP .
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Rep. Oakar , a Democrat from Cleveland , wants a $ 6.9 million grant so Cleveland can build an 18-story Rock and Roll Hall of Fame . NNP NNP , DT NNP IN NNP , VBZ DT $ CD CD NN RB NNP MD VB DT NNP NNP CC NNP NNP IN NNP .
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She says it 'd create 600 jobs and bring Cleveland tourist revenue . PRP VBZ PRP MD VB CD NNS CC VB NNP NN NN .
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HUD says the project does n't qualify , and Mr. Kemp says that rock 'n' roll musicians and the music industry ought to put up the money . NNP VBZ DT NN VBZ RB VB , CC NNP NNP VBZ DT NN NN NN NNS CC DT NN NN MD TO VB IN DT NN .
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At the hearing , Rep. Oakar started wailing about `` phoney baloney regulations '' that would stand between her and `` housing for downtown Cleveland . '' IN DT NN , NNP NNP VBD VBG IN `` JJ NN NNS '' WDT MD VB IN PRP$ CC `` NN IN NN NNP . ''
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Rep. Chalmers Wylie , an Ohio Republican , rallied to the cause : `` I think the gentlelady is making an important statement . NNP NNP NNP , DT NNP NNP , VBD TO DT NN : `` PRP VBP DT NN VBZ VBG DT JJ NN .
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The implication that if a congressman calls about a project in his district there 's something wrong , I think is most unfortunate . '' DT NN IN IN DT NN VBZ IN DT NN IN PRP$ NN EX VBZ NN JJ , PRP VBP VBZ RBS JJ . ''
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We 're sure some theologian can explain the difference between what the Republican consultants have been doing with HUD and what these gentleladies and gentlemen want to do with HUD . PRP VBP JJ DT NN MD VB DT NN IN WP DT NNP NNS VBP VBN VBG IN NNP CC WP DT NNS CC NNS VBP TO VB IN NNP .
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Our view is that given Congress 's attitude toward HUD , the place probably is beyond reform . PRP$ NN VBZ IN VBN NNP POS NN IN NNP , DT NN RB VBZ IN NN .
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For more than 50 years the federal government has tried various ways to provide housing for the poor and revive cities . IN JJR IN CD NNS DT JJ NN VBZ VBN JJ NNS TO VB NN IN DT JJ CC VB NNS .
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In the process HUD has wasted untold billions , created slums and invited corruption . IN DT NN NNP VBZ VBN JJ NNS , VBN NNS CC VBN NN .
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Much of HUD 's spending actually is disguised welfare for developers or the middle class . RB IN NNP POS NN RB VBZ VBN NN IN NNS CC DT NN NN .
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That includes the CDBG funds and the Federal Housing Administration , which loans out money for private home mortgages and has just been discovered to be $ 4 billion in the hole . DT VBZ DT NNP NNS CC DT NNP NNP NNP , WDT VBZ RP NN IN JJ NN NNS CC VBZ RB VBN VBN TO VB $ CD CD IN DT NN .
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Selling the FHA 's loan portfolio to the highest bidder would save the taxpayers untold billions in future losses . VBG DT NNP POS NN NN TO DT JJS NN MD VB DT NNS JJ NNS IN NN NNS .
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Some HUD money actually does trickle down to the poor , and zeroing out housing middlemen would free up more money for public housing tenants to manage and even own their units . DT NNP NN RB VBZ NN RB TO DT NN , CC VBG RP NN NNS MD VB IN JJR NN IN JJ NN NNS TO VB CC RB JJ PRP$ NNS .
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The rest ought to be used to clean out drugs from the neighbhorhoods . DT NN MD TO VB VBN TO VB RP NNS IN DT NNS .
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Rival gangs have turned cities into combat zones . JJ NNS VBP VBN NNS IN NN NNS .
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Even suburban Prince George 's County , Md. , reported last week there have been a record 96 killings there this year , most of them drug-related . RB JJ NNP NNP POS NNP , NNP , VBD JJ NN EX VBP VBN DT NN CD NNS EX DT NN , RBS IN PRP JJ .
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Innocent bystanders often are the victims . JJ NNS RB VBP DT NNS .
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A man in a wheelchair was gunned down in the crossfire of a Miami drug battle . DT NN IN DT NN VBD VBN RB IN DT NN IN DT NNP NN NN .
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A three-year-old Brooklyn boy was used as a shield by a drug dealer . DT JJ NNP NN VBD VBN IN DT NN IN DT NN NN .
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Decent life in the inner cities wo n't be restored unless the government reclaims the streets from the drug gangs . JJ NN IN DT JJ NNS MD RB VB VBN IN DT NN VBZ DT NNS IN DT NN NNS .
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Until then , the billions HUD spends on inner-city housing simply is wasted . IN RB , DT NNS NNP VBZ IN JJ NN RB VBZ VBN .
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It 's still unclear whether Secretary Kemp wants to completely overhaul the engine room at HUD or just tighten a few screws here and there . PRP VBZ RB JJ IN NNP NNP VBZ TO RB NN DT NN NN IN NNP CC RB VB DT JJ NNS RB CC RB .
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No doubt he believes the place can be salvaged . DT NN PRP VBZ DT NN MD VB VBN .
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Having seen the hypocrisy with which Congress has addressed the HUD scandals , we disagree . VBG VBN DT NN IN WDT NNP VBZ VBN DT NNP NNS , PRP VBP .
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It 's time to scrap the politically infested spending machine HUD has become and channel the resources into the drug war . PRP VBZ NN TO VB DT RB VBN NN NN NNP VBZ VBN CC VB DT NNS IN DT NN NN .
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Randy Delchamps was named chairman and chief executive officer of this grocery chain . NNP NNP VBD VBN NN CC JJ JJ NN IN DT NN NN .
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Mr. Delchamps , 46 years old , succeeds A.F. Delchamps Jr. , who died in a plane crash on Sunday at the age of 58 . NNP NNP , CD NNS JJ , VBZ NNP NNP NNP , WP VBD IN DT NN NN IN NNP IN DT NN IN CD .
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Randy Delchamps retains his position as president . NNP NNP VBZ PRP$ NN IN NN .
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Natural upheavals , and most particularly earthquakes , are not only horrible realities in and of themselves , but also symbols through which the state of a society can be construed . JJ NNS , CC RBS RB NNS , VBP RB RB JJ NNS IN CC IN PRP , CC RB NNS IN WDT DT NN IN DT NN MD VB VBN .
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The rubble after the Armenian earthquake a year ago disclosed , quite literally , a city whose larger structures had been built with sand . DT NN IN DT JJ NN DT NN RB VBD , RB RB , DT NN WP$ JJR NNS VBD VBN VBN IN NN .
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The extent of the disaster stemmed from years of chicanery and bureaucratic indifference . DT NN IN DT NN VBD IN NNS IN NN CC JJ NN .
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The larger parallel after the earthquake centered south of San Francisco is surely with the state of the U.S. economy . DT RBR JJ IN DT NN VBN RB IN NNP NNP VBZ RB IN DT NN IN DT NNP NN .
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Did the stock-market tremors of Friday , Oct. 13 , presage larger fragility , far greater upheavals ? VBD DT NN NNS IN NNP , NNP CD , VB JJR NN , RB JJR NNS .
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Are the engineering and architecture of the economy as vulnerable as the spans of the Bay Bridge ? VBP DT NN CC NN IN DT NN RB JJ IN DT NNS IN DT NNP NNP .
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The eerie complacency of the Reagan-Bush era has produced Panglossian paeans about the present perfection of U.S. economic and social arrangements . DT JJ NN IN DT JJ NN VBZ VBN JJ NNS IN DT JJ NN IN NNP JJ CC JJ NNS .
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A licensed government intellectual , Francis Fukuyama , recently announced in The National Interest that history is , so to speak , at an end since the course of human progress has now culminated in the glorious full stop of American civilization . DT VBN NN JJ , NNP NNP , RB VBD IN DT NNP NN DT NN VBZ , RB TO VB , IN DT NN IN DT NN IN JJ NN VBZ RB VBN IN DT JJ JJ NN IN JJ NN .
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His observations were taken seriously . PRP$ NNS VBD VBN RB .
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But we are , in reality , witnessing the continuing decline of the political economy of capitalism : not so much the end of history but the history of the end . CC PRP VBP , IN NN , VBG DT VBG NN IN DT JJ NN IN NN : RB RB JJ DT NN IN NN CC DT NN IN DT NN .
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The financial equivalent of the sand used by those Armenian contractors is junk bonds and the leveraged buy-outs associated with them . DT JJ NN IN DT NN VBN IN DT JJ NNS VBZ NN NNS CC DT JJ NNS VBN IN PRP .
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Builders get away with using sand and financiers junk when society decides it 's okay , necessary even , to look the other way . NNS VB RB IN VBG NN CC NNS NN WRB NN VBZ PRP VBZ JJ , JJ RB , TO VB DT JJ NN .
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And by the early 1980s U.S. capitalists had ample reason to welcome junk bonds , to look the other way . CC IN DT JJ CD NNP NNS VBD JJ NN TO VB NN NNS , TO VB DT JJ NN .
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By that time they found extremely low profit rates from non-financial corporate investment . IN DT NN PRP VBD RB JJ NN NNS IN JJ JJ NN .
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Government statistics in fact show that the profit rate -- net pretax profits divided by capital stock -- peaked in 1965 at 17.2 % . NN NNS IN NN NN IN DT NN NN : JJ JJ NNS VBN IN NN NN : VBD IN CD IN CD NN .
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That same calculation saw profit rates fall to 4.6 % in the recession year 1982 and the supposed miracle that followed has seen the profit rate rise only to 8.1 % in 1986 and 8 % in 1987 . DT JJ NN VBD NN NNS VBP TO CD NN IN DT NN NN CD CC DT VBN NN WDT VBD VBZ VBN DT NN NN NN RB TO CD NN IN CD CC CD NN IN CD .
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Corresponding to the fall in profit rates was -- in the early 1980s -- the drop in the number arrived at if you divide the market value of firms by the replacement costs of their assets , the famous Q ratio associated with Prof. James Tobin . VBG TO DT NN IN NN NNS VBD : IN DT JJ CD : DT NN IN DT NN VBD IN IN PRP VBP DT NN NN IN NNS IN DT NN NNS IN PRP$ NNS , DT JJ NN NN VBN IN NNP NNP NNP .
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In theory , the value attached to a firm by the market and the cost of replacing its assets should be the same . IN NN , DT NN VBN TO DT NN IN DT NN CC DT NN IN VBG PRP$ NNS MD VB DT JJ .
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But of course the market could decide that the firm 's capital stock -- its assets -- means nothing if the firm is not producing profits . CC IN NN DT NN MD VB IN DT NN POS NN NN : PRP$ NNS : VBZ NN IN DT NN VBZ RB VBG NNS .
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This is indeed what the market decided . DT VBZ RB WP DT NN VBD .
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By 1982 the ratio was 43.5 % , meaning that the market was valuing every dollar 's worth of the average firm 's assets at 43 cents . IN CD DT NN VBD CD NN , NN IN DT NN VBD VBG DT NN POS NN IN DT JJ NN POS NNS IN CD NNS .
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From the history of capitalism we can take it as a sound bet that if it takes only 43 cents to buy a dollar 's worth of a firm 's capital stock , an alert entrepreneur wo n't look the other way . IN DT NN IN NN PRP MD VB PRP IN DT NN NN IN IN PRP VBZ RB CD NNS TO VB DT NN POS NN IN DT NN POS NN NN , DT JJ NN MD RB VB DT JJ NN .
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His assumption is that the underlying profitability rate will go up and the capital assets he bought on the cheap will soon be producing profits , thus restoring the market 's faith in them . PRP$ NN VBZ IN DT VBG NN NN MD VB IN CC DT NN NNS PRP VBD IN DT JJ MD RB VB VBG NNS , RB VBG DT NN POS NN IN PRP .
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Hence the LBO craze . RB DT NNP NN .
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But here is where the entrepreneur made a very risky bet , and where society was maybe foolish to look the other way . CC RB VBZ WRB DT NN VBD DT RB JJ NN , CC WRB NN VBD RB JJ TO VB DT JJ NN .
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The profit rate is still low and the Q ratio was only 65 % in 1987 and 68.9 % in 1988 . DT NN NN VBZ RB JJ CC DT NN NN VBD RB CD NN IN CD CC CD NN IN CD .
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Result : a landscape littered with lemons , huge debt burdens crushing down upon the arch and spans of corporate America . NN : DT NN VBN IN NNS , JJ NN NNS VBG RB IN DT NN CC NNS IN JJ NNP .
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The mounting risks did not go unobserved , even in the mid-1980s . DT VBG NNS VBD RB VB JJ , RB IN DT NNS .
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But there were enough promoters announcing the end of history -LRB- in this case suspension of normal laws of economic gravity -RRB- for society to continue shielding its eyes . CC EX VBD JJ NNS VBG DT NN IN NN ( IN DT NN NN IN JJ NNS IN JJ NN ) IN NN TO VB VBG PRP$ NNS .
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Mainstream economists and commentators , craning their necks up at the great pyramids of junk financing , swiveling their heads to watch the avalanche of leveraged buy-outs , claimed the end result would be a leaner , meaner corporate America , with soaring productivity and profits and the weaker gone to the wall . NN NNS CC NNS , VBG PRP$ NNS IN IN DT JJ NNS IN NN NN , VBG PRP$ NNS TO VB DT NN IN JJ NNS , VBD DT NN NN MD VB DT JJR , JJR JJ NNP , IN VBG NN CC NNS CC DT RBR VBN TO DT NN .
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But this is not where the rewards of junk financing were found . CC DT VBZ RB WRB DT NNS IN NN NN VBD VBN .
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The beneficiaries were those financiers whose icon was the topic figure of '80s capitalism , Michael Milken 's $ 517 million salary in one year . DT NNS VBD DT NNS WP$ NN VBD DT NN NN IN NNS NN , NNP NNP POS $ CD CD NN IN CD NN .
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Left-stream economists I associate with -- fellows in the Union of Radical Political Economists , most particularly Robert Pollin of the economics faculty at the University of California at Riverside -- were not hypnotized in the manner of their pliant colleagues . JJ NNS PRP JJ IN : NNS IN DT NNP IN NNP JJ NNS , RBS RB NNP NNP IN DT NNS NN IN DT NNP IN NNP IN NNP : VBD RB VBN IN DT NN IN PRP$ JJ NNS .
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All along they have been noting the tremors and pointing out the underlying realities . DT IN PRP VBP VBN VBG DT NNS CC VBG RP IN VBG NNS .
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Profit rates after the great merger wave are no higher , and now we have an extremely high-interest burden relative to cash flow . NN NNS IN DT JJ NN NN VBP DT JJR , CC RB PRP VBP DT RB JJ NN JJ TO VB NN .
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The consequences of building empires with sand are showing up . DT NNS IN NN NNS IN NN VBP VBG RB .
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In contrast to previous estimates reckoning the default rate on junk bonds at 2 % or 3 % , a Harvard study published in April of this year -LRB- and discussed in a lead story in The Wall Street Journal for Sept. 18 -RRB- found the default rate on these junk bonds is 34 % . IN NN TO JJ NNS VBG DT NN NN IN NN NNS IN CD NN CC CD NN , DT NNP NN VBN IN NNP IN DT NN ( CC VBN IN DT NN NN IN DT NNP NNP NNP IN NNP CD ) VBD DT NN NN IN DT NN NNS VBZ CD NN .
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What is the consequence of a high-interest burden , high default rates and continued low profitability ? WP VBZ DT NN IN DT JJ NN , JJ NN NNS CC VBD JJ NN .
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Corporations need liquidity , in the form of borrowed funds . NNS VBP NN , IN DT NN IN VBN NNS .
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Without liquidity from the junk-bond market or cash flow from profits , they look to the government , which obediently assists the natural motions of the capitalist economy with charity in the form of cuts in the capital-gains tax rate or bailouts . IN NN IN DT NN NN CC NN NN IN NNS , PRP VBP TO DT NN , WDT RB VBZ DT JJ NNS IN DT JJ NN IN NN IN DT NN IN NNS IN DT NNS VBP NN CC NNS .
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The consequence can be inflation , brought on as the effect of a desperate bid to avoid the deflationary shock of a sudden crash . DT NN MD VB NN , VBN IN IN DT NN IN DT JJ NN TO VB DT JJ NN IN DT JJ NN .
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Attacks on inflation come with another strategy of capital of a very traditional sort : an assault on wages . VBZ IN NN VB IN DT NN IN NN IN DT RB JJ NN : DT NN IN NNS .
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Mr. Fukuyama , peering through binoculars at the end of history , said in his essay that `` the class issue has actually been successfully resolved in the West ... NNP NNP , VBG IN NNS IN DT NN IN NN , VBD IN PRP$ NN IN `` DT NN NN VBZ RB VBN RB VBN IN DT NNP :
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the egalitarianism of modern America represents the essential achievement of the classless society envisioned by Marx . '' DT NN IN JJ NNP VBZ DT JJ NN IN DT JJ NN VBN IN NNP . ''
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Mr. Fukuyama might want to consult some American workers on the subject of class and egalitarianism . NNP NNP MD VB TO VB DT JJ NNS IN DT NN IN NN CC NN .
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From its peak in 1972 of $ 198.41 , the average American weekly wage had fallen to $ 169.28 in 1987 -- both figures being expressed in 1977 dollars . IN PRP$ NN IN CD IN $ CD , DT JJ JJ JJ NN VBD VBN TO $ CD IN CD : DT NNS VBG VBN IN CD NNS .
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In other words , after the glory boom of the Reagan years , wages had sunk from the post World War II peak by 16 % as capitalists , helped by the government , turned down the screws or went offshore . IN JJ NNS , IN DT NN NN IN DT NNP NNS , NNS VBD VBN IN DT NN NNP NNP NNP NN IN CD NN IN NNS , VBN IN DT NN , VBD RP DT NNS CC VBD JJ .
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But there are signs now -- the strikes by miners , Boeing workers , telephone workers , etc. -- that this attack on wages is being more fiercely resisted . CC EX VBP NNS RB : DT NNS IN NNS , NNP NNS , NN NNS , FW : IN DT NN IN NNS VBZ VBG RBR RB VBN .
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These are long-term Richter readings on American capitalism . DT VBP JJ NNP NNS IN JJ NN .
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The whole structure is extremely shaky . DT JJ NN VBZ RB JJ .
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Governments have become sophisticated in handling moments of panic -LRB- a word the London Times forbade my father to use when he was reporting the Wall Street crash in 1929 -RRB- . NNS VBP VBN JJ IN NN NNS IN NN ( DT NN DT NNP NNP VBD PRP$ NN TO VB WRB PRP VBD VBG DT NNP NNP NN IN CD ) .
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But sophistication has its limits . CC NN VBZ PRP$ NNS .
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The S&L bailout could cost $ 300 billion , computing interest on the government 's loans . DT NNP NN MD VB $ CD CD , VBG NN IN DT NN POS NNS .
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These are real costs . DT VBP JJ NNS .
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Under what weights will the Federal Deposit Insurance Corporation totter ? IN WP VBZ MD DT NNP NNP NNP NNP VB .
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Capitalism may now be engineered to withstand sudden shocks , but there are fault lines -- the crisis in profits , the assault on wages , the structural inequity of the system -- that make fools of those who claim that the future is here and that history is over . NN MD RB VB VBN TO VB JJ NNS , CC EX VBP NN NNS : DT NN IN NNS , DT NN IN NNS , DT JJ NN IN DT NN : WDT VBP NNS IN DT WP VBP IN DT NN VBZ RB CC DT NN VBZ RB .
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Mr. Cockburn is a columnist for The Nation and LA Weekly . NNP NNP VBZ DT NN IN DT NN CC NNP NNP .
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Japan Air Lines , Lufthansa German Airlines and Air France reportedly plan to form an international air-freight company this year , a move that could further consolidate the industry . NNP NNP NNPS , NNP JJ NNPS CC NNP NNP RB VBP TO VB DT JJ NN NN DT NN , DT NN WDT MD VB VB DT NN .
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Japanese newspaper Nihon Keizai Shimbun reported that the three giants plan to integrate their cargo computers and ground-cargo and air-cargo systems . JJ NN NNP NNP NNP VBD IN DT CD NNS VBP TO VB PRP$ NN NNS CC NN CC NN NNS .
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They reportedly will invest a total of 20 billion yen -LRB- $ 140 million -RRB- in the venture , whose headquarters would be in France or West Germany . PRP RB MD VB DT NN IN CD CD NN ( $ CD CD ) IN DT NN , WP$ NN MD VB IN NNP CC NNP NNP .
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The action follows Federal Express Corp. 's acquisition of Flying Tiger Line Inc. in August . DT NN VBZ NNP NNP NNP POS NN IN NNP NNP NNP NNP IN NNP .
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After that , `` it would make sense for airlines to talk about doing things jointly , '' said Cotton Daly , director of cargo services for New York consulting firm Simat , Helliesen & Eichner Inc . IN DT , `` PRP MD VB NN IN NNS TO VB IN VBG NNS RB , '' VBD NNP NNP , NN IN NN NNS IN NNP NNP NN NN NNP , NNP CC NNP NNP .
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Mr. Daly said such discussions are motivated by the competitive threat posed by Federal Express , United Parcel Service of America Inc. and other fast-growing air-freight companies . NNP NNP VBD JJ NNS VBP VBN IN DT JJ NN VBN IN NNP NNP , NNP NNP NNP IN NNP NNP CC JJ JJ NN NNS .
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Many airlines are talking about cargo ventures , and there have been rumors about such a tie between JAL and European airlines . JJ NNS VBP VBG IN NN NNS , CC EX VBP VBN NNS IN JJ DT NN IN NNP CC JJ NNS .
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In Tokyo , a JAL spokesman said he could n't confirm or deny the latest Japanese report . IN NNP , DT NNP NN VBD PRP MD RB VB CC VB DT JJS JJ NN .
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But he said JAL is talking to Lufthansa and Air France about some sort of cargo venture . CC PRP VBD NNP VBZ VBG TO NNP CC NNP NNP IN DT NN IN NN NN .
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`` It is just one of a number of strategies JAL has embarked upon to come to terms with the situation in Europe after 1992 , '' the deadline for ending trade barriers in the EC , he said . `` PRP VBZ RB CD IN DT NN IN NNS NNP VBZ VBN IN TO VB TO NNS IN DT NN IN NNP IN CD , '' DT NN IN VBG NN NNS IN DT NNP , PRP VBD .
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In Frankfurt , a Lufthansa spokesman confirmed talks are under way , but declined to comment . IN NNP , DT NNP NN VBD NNS VBP IN NN , CC VBD TO VB .
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A Lufthansa spokeswoman in Tokyo said the head of Lufthansa 's cargo operations had been in Toyko last week for talks with JAL . DT NNP NN IN NNP VBD DT NN IN NNP POS NN NNS VBD VBN IN NNP JJ NN IN NNS IN NNP .
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In Paris , Air France declined to comment . IN NNP , NNP NNP VBD TO VB .
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`` Nothing is defined or signed at this point , '' Mr. Daly said of the talks . `` NN VBZ VBN CC VBN IN DT NN , '' NNP NNP VBD IN DT NNS .
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Whatever accord the three carriers reach , he said , he is skeptical it would create a separate airline . WDT VBP DT CD NNS VBP , PRP VBD , PRP VBZ JJ PRP MD VB DT JJ NN .
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If the three companies pool their air-freight businesses , their clout would be considerable . IN DT CD NNS VBP PRP$ NN NNS , PRP$ NN MD VB JJ .
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According to figures from the International Air Transport Association , they carried a combined 1.8 million tons of freight last year . VBG TO NNS IN DT NNP NNP NNP NNP , PRP VBD DT VBN CD CD NNS IN NN JJ NN .
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Federal Express and Flying Tiger , as separate companies , carried a combined 2.6 million tons . NNP NNP CC NNP NNP , IN JJ NNS , VBD DT VBN CD CD NNS .
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Air France and Lufthansa last month concluded a far-reaching cooperation accord that includes air-freight activities . NNP NNP CC NNP JJ NN VBD DT JJ NN NN WDT VBZ NN NNS .
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They plan to increase cooperation in freight ground-handling and create a world-wide computer system to process cargo . PRP VBP TO VB NN IN NN NNS CC VB DT JJ NN NN TO VB NN .
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Other airlines would have access to the system , they said , and negotiations with partners were already under way . JJ NNS MD VB NN TO DT NN , PRP VBD , CC NNS IN NNS VBD RB IN NN .
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Both European airlines operate extensive fleets of Boeing 747 freighters and 747 Combis , aircraft that carry both freight and passengers on the main deck . DT JJ NNS VBP JJ NNS IN NNP CD NNS CC CD NNPS , NN WDT VBP DT NN CC NNS IN DT JJ NN .
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They currently have large orders for cargo planes . PRP RB VBP JJ NNS IN NN NNS .
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Several airlines , including Lufthansa , JAL and Cathay Pacific Airways , are working on a so-called global cargo system and are trying to attract other carriers to join , Mr. Daly said . JJ NNS , VBG NNP , NNP CC NNP NNP NNPS , VBP VBG IN DT JJ JJ NN NN CC VBP VBG TO VB JJ NNS TO VB , NNP NNP VBD .
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JAL also has signaled it is looking for toeholds in Europe before the end of 1992 . NNP RB VBZ VBN PRP VBZ VBG IN NNS IN NNP IN DT NN IN CD .
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Last month , the carrier said it wanted to lease crews and planes from British Airways so it could funnel its passengers from London to other European destinations . JJ NN , DT NN VBD PRP VBD TO VB NNS CC NNS IN JJ NNPS IN PRP MD VB PRP$ NNS IN NNP TO JJ JJ NNS .
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British Airways said it has n't received a proposal from JAL . JJ NNPS VBD PRP VBZ RB VBN DT NN IN NNP .
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But last week there were air-traffic negotiations between the U.K. and Japan , a likely first step to any commercial agreement between JAL and British Airways or another U.K. carrier . CC JJ NN EX VBD NN NNS IN DT NNP CC NNP , DT JJ JJ NN TO DT JJ NN IN NNP CC JJ NNPS CC DT NNP NN .
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Federal Paper Board Co. said it completed the previously announced purchase of Imperial Cup Corp. , a closely held maker of paper cups based in Kenton , Ohio . NNP NNP NNP NNP VBD PRP VBD DT RB VBN NN IN NNP NNP NNP , DT RB VBN NN IN NN NNS VBN IN NNP , NNP .
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Terms were n't disclosed . NNS VBD RB VBN .
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Imperial Cup has annual sales of approximately $ 75 million . NNP NNP VBZ JJ NNS IN RB $ CD CD .
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Federal Paper Board sells paper and wood products . NNP NNP NNP VBZ NN CC NN NNS .
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In a move to prevent any dislocation in the financial markets from the California earthquake , the Securities and Exchange Commission said it temporarily reassigned options listed on the Pacific Stock Exchange to the American , New York and Philadelphia stock exchanges and to the Chicago Board Options Exchange . IN DT NN TO VB DT NN IN DT JJ NNS IN DT NNP NN , DT NNPS CC NNP NNP VBD PRP RB VBD NNS VBN IN DT NNP NNP NNP TO DT NNP , NNP NNP CC NNP NN NNS CC TO DT NNP NNP NNP NNP .
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The decision , which affects millions of dollars of trading positions , was made late yesterday because the Pacific exchange 's options floor was shut down as a result of Tuesday 's earthquake . DT NN , WDT VBZ NNS IN NNS IN NN NNS , VBD VBN JJ NN IN DT NNP NN POS NNS NN VBD VBN RB IN DT NN IN NNP POS NN .
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The SEC , faced with a major squeeze on options positions , said it was necessary to ensure that options listed on the exchange could be traded today and tomorrow . DT NNP , VBN IN DT JJ NN IN NNS NNS , VBD PRP VBD JJ TO VB IN NNS VBN IN DT NN MD VB VBN NN CC NN .
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SEC Chairman Richard Breeden said the cooperation by the exchanges would enable investors to buy and sell options listed solely on the Pacific exchange , guaranteeing the liquidity of the market . NNP NNP NNP NNP VBD DT NN IN DT NNS MD VB NNS TO VB CC VB NNS VBN RB IN DT NNP NN , VBG DT NN IN DT NN .
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Officials at the four exchanges said well over 50 traders from the Pacific exchange were taking flights from San Francisco late yesterday to the American , New York and Philadelphia exchanges and to the CBOE , where they would continue making markets in the Pacific-listed options . NNS IN DT CD NNS VBD RB IN CD NNS IN DT NNP NN VBD VBG NNS IN NNP NNP JJ NN TO DT NNP , NNP NNP CC NNP NNS CC TO DT NNP , WRB PRP MD VB VBG NNS IN DT JJ NNS .
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The Big Board said carpenters quickly erected a new options floor to accomodate 40 traders from the Pacific exchange . DT NNP NNP VBD NNS RB VBN DT JJ NNS NN TO VB CD NNS IN DT NNP NN .
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In addition , specialists on the exchanges agreed to provide backup capital for market-making in Pacific exchange options traded on the exchanges . IN NN , NNS IN DT NNS VBD TO VB NN NN IN NN IN NNP NN NNS VBN IN DT NNS .
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Trading was light on the Pacific Stock Exchange yesterday , with workers at the exchange 's main floor in San Francisco struggling to execute orders by flashlight as a result of a continuing power outage . NN VBD NN IN DT NNP NNP NNP NN , IN NNS IN DT NN POS JJ NN IN NNP NNP VBG TO VB NNS IN NN IN DT NN IN DT VBG NN NN .
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The most pressing problem was the suspension of options trading . DT RBS VBG NN VBD DT NN IN NNS NN .
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The Pacific exchange has options for 129 underlying stock issues , including highly active Hilton Hotels Corp. , which is listed on the Big Board . DT NNP NN VBZ NNS IN CD VBG NN NNS , VBG RB JJ NNP NNP NNP , WDT VBZ VBN IN DT NNP NNP .
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Investors were concerned that they might be unable to exercise options that expire tomorrow . NNS VBD VBN IN PRP MD VB JJ TO VB NNS WDT VBP NN .
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But professionals said throughout the day that the shutdown would n't be a cause for alarm even if it were to persist for several days . CC NNS VBD IN DT NN IN DT NN MD RB VB DT NN IN NN RB IN PRP VBD TO VB IN JJ NNS .
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`` I 've told my staff and clients that they still have the ability to exercise their options , because they are guaranteed by the Options Clearing Corp. , '' said Michael Schwartz , a senior registered options strategist at Oppenheimer & Co . `` PRP VBP VBD PRP$ NN CC NNS IN PRP RB VBP DT NN TO VB PRP$ NNS , IN PRP VBP VBN IN DT NNP NNP NNP , '' VBD NNP NNP , DT JJ VBN NNS NN IN NNP CC NNP .
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The SEC reassigned trading in the options , however , to allow investors to do more than simply exercise the options . DT NNP VBD NN IN DT NNS , RB , TO VB NNS TO VB JJR IN JJ NN DT NNS .
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While the exchange 's equities floor in San Francisco remained open on a limited basis , orders were being routed and executed in Los Angeles . IN DT NN POS NNS NN IN NNP NNP VBD JJ IN DT JJ NN , NNS VBD VBG VBN CC VBN IN NNP NNP .
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Workers could dial out , but they could n't receive telephone calls . NNS MD VB IN , CC PRP MD RB VB NN NNS .
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`` It 's a very uncertain situation right now , '' said Navin Vyas , administrative assistant of trading floor operations of the exchange , which has daily volume of about 10 million shares . `` PRP VBZ DT RB JJ NN RB RB , '' VBD NNP NNP , JJ NN IN NN NN NNS IN DT NN , WDT VBZ JJ NN IN IN CD CD NNS .
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Because the exchange 's computer was rerouting orders to the exchange 's trading operations in Los Angeles , `` business is as usual '' Mr. Vyas said . IN DT NN POS NN VBD VBG NNS TO DT NN POS NN NNS IN NNP NNP , `` NN VBZ IN JJ '' NNP NNP VBD .
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`` If one city is down , the other can take over . '' `` IN CD NN VBZ RB , DT NN MD VB IN . ''
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Meanwhile , the brokerage firms in San Francisco were trying to cope . RB , DT NN NNS IN NNP NNP VBD VBG TO VB .
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Charles Daggs , chairman and chief executive officer of Sutro & Co. , said traders came to work at 5 a.m. PDT -- many on foot because of uncertain road and traffic conditions -- but learned that they would have to await a required inspection by the city in order to turn the power back on at the company 's two main facilities there . NNP NNP , NN CC JJ JJ NN IN NNP CC NNP , VBD NNS VBD TO VB IN NN NN NNP : JJ IN NN IN IN JJ NN CC NN NNS : CC VBD IN PRP MD VB TO VB DT VBN NN IN DT NN IN NN TO VB DT NN RB IN IN DT NN POS CD JJ NNS RB .
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That should happen by today , he said . DT MD VB IN NN , PRP VBD .
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Traders worked with the help of sunlight streaming through windows , despite large cracks in the walls and a lack of incoming phone calls . NNS VBD IN DT NN IN NN VBG IN NNS , IN JJ NNS IN DT NNS CC DT NN IN JJ NN NNS .
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Also , most of the telecommunications equipment was out . RB , RBS IN DT NNS NN VBD RB .
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The traders were executing municipal bond , mutual fund and other orders through a sister firm , Tucker Anthony Inc. , which is also owned by John Hancock Freedom Securities but is based in New York . DT NNS VBD VBG JJ NN , JJ NN CC JJ NNS IN DT NN NN , NNP NNP NNP , WDT VBZ RB VBN IN NNP NNP NNP NNPS CC VBZ VBN IN NNP NNP .
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`` We are having a regular day . `` PRP VBP VBG DT JJ NN .
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Volume is down out of San Francisco , but not out of the 11 outlying offices , '' Mr. Daggs added . NN VBZ RB IN IN NNP NNP , CC RB IN IN DT CD JJ NNS , '' NNP NNP VBD .
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Sutro 's Oakland office executed orders through the Sacramento office , which was n't affected by the quake . NNP POS NNP NN VBD NNS IN DT NNP NN , WDT VBD RB VBN IN DT NN .
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Others , like Prudential-Bache Securities Inc. , which has eight offices in the San Francisco area , set up an 800 number yesterday morning for customers to obtain market commentary and other help . NNS , IN NNP NNP NNP , WDT VBZ CD NNS IN DT NNP NNP NN , VBN IN DT CD NN NN NN IN NNS TO VB NN NN CC JJ NN .
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At Kidder , Peabody & Co. 's Sacramento branch , Manager Janet White received calls yesterday morning from workers in San Francisco who offered to work in Sacramento . IN NNP , NNP CC NNP POS NNP NN , NNP NNP NNP VBD VBZ NN NN IN NNS IN NNP NNP WP VBD TO VB IN NNP .
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Then she discovered that Quotron Systems Inc. 's Sacramento lines were down , because they are normally tied in through a system that goes through San Francisco . RB PRP VBD IN NNP NNP NNP POS NNP NNS VBD RB , IN PRP VBP RB VBN IN IN DT NN WDT VBZ IN NNP NNP .
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So the Kidder brokers had to call other company offices to get quotes on stocks . RB DT NNP NNS VBD TO VB JJ NN NNS TO VB NNS IN NNS .
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At Quotron , the company 's National Call-In Center , which swung into action for the first time last month for Hurricane Hugo , assembled a tactical team at 5 a.m. yesterday to begin rerouting lines and restore service to brokers and traders . IN NNP , DT NN POS NNP NN NNP , WDT VBD IN NN IN DT JJ NN JJ NN IN NNP NNP , VBD DT JJ NN IN NN NN NN TO VB VBG NNS CC VB NN TO NNS CC NNS .
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The company dispatched as many as 200 people in the San Francisco area to do the work , though most of the rerouting was done by computer . DT NN VBD RB JJ IN CD NNS IN DT NNP NNP NN TO VB DT NN , IN RBS IN DT VBG VBD VBN IN NN .
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Service appeared to be down throughout the financial district in downtown San Francisco , while just parts of Oakland and San Jose were knocked out . NNP VBD TO VB RB IN DT JJ NN IN NN NNP NNP , IN RB NNS IN NNP CC NNP NNP VBD VBN RB .
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But Dale Irvine , director of the emergency center , said service was being restored to outlying San Francisco areas . CC NNP NNP , NN IN DT NN NN , VBD NN VBD VBG VBN TO JJ NNP NNP NNS .
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In Chicago yesterday , Options Clearing confirmed that it guarantees the Pacific exchange options . IN NNP NN , NNP NNP VBD IN PRP VBZ DT NNP NN NNS .
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The firm also will permit its members and the public `` to exercise their put and call options contracts traded on the Pacific exchange '' even if the exchange is closed , said Wayne Luthringshausen , chairman of Options Clearing . DT NN RB MD VB PRP$ NNS CC DT JJ `` TO VB PRP$ NN CC VB NNS NNS VBN IN DT NNP NN '' RB IN DT NN VBZ VBN , VBD NNP NNP , NN IN NNP NNP .
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-LRB- Put options give holders the right , but not the obligation , to sell a financial instrument at a specified price , while call options give holders the right , but not the obligation , to buy a financial instrument at a specified price -RRB- . ( VB NNS VB NNS DT NN , CC RB DT NN , TO VB DT JJ NN IN DT VBN NN , IN NN NNS VBP NNS DT NN , CC RB DT NN , TO VB DT JJ NN IN DT VBN NN ) .
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Investors and traders in Pacific exchange options `` are protected to the extent that they can convert their put and call options into the underlying instrument , '' Mr. Luthringshausen said . NNS CC NNS IN NNP NN NNS `` VBP VBN TO DT NN IN PRP MD VB PRP$ NN CC VB NNS IN DT VBG NN , '' NNP NNP VBD .
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`` We are seeing such exercises today , in fact . `` PRP VBP VBG JJ NNS NN , IN NN .
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International Business Machines Corp. said its board approved the purchase of $ 1 billion of its common shares , a move that should help support its battered stock . NNP NNP NNP NNP VBD PRP$ NN VBD DT NN IN $ CD CD IN PRP$ JJ NNS , DT NN WDT MD VB VB PRP$ VBN NN .
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Even as the stock market has generally done well this year , IBM 's shares have slipped steadily from its 52-week high of $ 130.875 . RB IN DT NN NN VBZ RB VBN RB DT NN , NNP POS NNS VBP VBN RB IN PRP$ JJ NN IN $ CD .
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Yesterday 's closing price of $ 101.75 , down 50 cents , in composite trading on the New York Stock Exchange , puts the stock at about 1 1\/2 times book value , which is as low as it has sunk over the past decade . NN POS VBG NN IN $ CD , RB CD NNS , IN JJ NN IN DT NNP NNP NNP NNP , VBZ DT NN IN IN CD CD NNS NN NN , WDT VBZ RB JJ IN PRP VBZ VBN IN DT JJ NN .
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The announcement came after the market 's close . DT NN VBD IN DT NN POS NN .
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The move by IBM was n't exactly a surprise . DT NN IN NNP VBD RB RB DT NN .
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The company has spent some $ 5 billion over the past 3 1\/2 years to buy back 42 million common shares , or roughly 7 % of those outstanding . DT NN VBZ VBN DT $ NN CD IN DT JJ CD CD NNS TO VB RB CD CD JJ NNS , CC RB CD NN IN DT JJ .
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In addition , despite IBM 's well-publicized recent problems , the computer giant still generates enormous amounts of cash . IN NN , IN NNP POS JJ JJ NNS , DT NN NN RB VBZ JJ NNS IN NN .
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As of the end of the second quarter , it had $ 4.47 billion of cash and marketable securities on hand . IN IN DT NN IN DT JJ NN , PRP VBD $ CD CD IN NN CC JJ NNS IN NN .
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As a result , some securities analysts had predicted in recent days that IBM would authorize additional purchases . IN DT NN , DT NNS NNS VBD VBN IN JJ NNS IN NNP MD VB JJ NNS .
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In Armonk , N.Y. , a spokesman said that although IBM did n't view its spending as necessarily a way to support the stock , it thought the purchases were a good way to improve such financial measurements as per-share earnings and return on equity . IN NNP , NNP , DT NN VBD IN IN NNP VBD RB VB PRP$ NN IN RB DT NN TO VB DT NN , PRP VBD DT NNS VBD DT JJ NN TO VB JJ JJ NNS IN JJ NNS CC NN IN NN .
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`` We view it as a good long-term investment , '' the spokesman said . `` PRP VBP PRP IN DT JJ JJ NN , '' DT NN VBD .
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In the short term , the move is likely to have little effect . IN DT JJ NN , DT NN VBZ JJ TO VB JJ NN .
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At yesterday 's closing price , $ 1 billion would buy back about 10 million shares , or less than 2 % of the roughly 580 million outstanding . IN NN POS VBG NN , $ CD CD MD VB RB IN CD CD NNS , CC JJR IN CD NN IN DT RB CD CD JJ .
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In addition , as of Sept. 30 , the company still had authorization to buy $ 368 million of stock under a prior repurchase program . IN NN , IN IN NNP CD , DT NN RB VBD NN TO VB $ CD CD IN NN IN DT JJ NN NN .
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Over the long term , however , IBM 's stock repurchases -- along with its hefty , $ 4.84-a-share annual dividend and generally loyal following among large institutional investors -- are providing a floor for the stock price . IN DT JJ NN , RB , NNP POS NN NNS : IN IN PRP$ JJ , $ CD JJ NN CC RB JJ NN IN JJ JJ NNS : VBP VBG DT NN IN DT NN NN .
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Although IBM last year produced its first strong results in four years and was expected to continue to roll this year , it began faltering as early as January . IN NNP JJ NN VBD PRP$ JJ JJ NNS IN CD NNS CC VBD VBN TO VB TO VB DT NN , PRP VBD VBG RB RB IN NNP .
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First , it had trouble manufacturing a chip for its mainframes , IBM 's bread-and-butter business . RB , PRP VBD NN VBG DT NN IN PRP$ NNS , NNP POS JJ NN .
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Then it had a series of smaller glitches , including problems manufacturing certain personal computers and the delay in the announcement of some important workstations . RB PRP VBD DT NN IN JJR NNS , VBG NNS NN JJ JJ NNS CC DT NN IN DT NN IN DT JJ NNS .
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Finally , IBM had to delay the introduction of some high-end disk drives , which account for 10 % of its $ 60 billion of annual revenue . RB , NNP VBD TO VB DT NN IN DT JJ NN NNS , WDT VBP IN CD NN IN PRP$ $ CD CD IN JJ NN .
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None of the problems is necessarily fatal , and they are n't all necessarily even related . NN IN DT NNS VBZ RB JJ , CC PRP VBP RB DT RB RB VBN .
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There are also other factors at work that are outside IBM 's control , such as currency exchange rates . EX VBP RB JJ NNS IN NN WDT VBP IN NNP POS NN , JJ IN NN NN NNS .
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The strong dollar , which reduces the value of overseas earnings and revenue when they are translated into dollars , is expected to knock 80 to 85 cents off IBM 's per-share earnings for the full year . DT JJ NN , WDT VBZ DT NN IN JJ NNS CC NN WRB PRP VBP VBN IN NNS , VBZ VBN TO VB CD TO CD NNS IN NNP POS JJ NNS IN DT JJ NN .
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Without that problem , IBM might have matched last year 's earnings of $ 5.81 billion , or $ 9.80 a share . IN DT NN , NNP MD VB VBN JJ NN POS NNS IN $ CD CD , CC $ CD DT NN .
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Still , investors will take some convincing before they get back into IBM 's stock in a big way . RB , NNS MD VB DT NN IN PRP VBP RB IN NNP POS NN IN DT JJ NN .
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Steve Milunovich , a securities analyst at First Boston , said that while investors were looking for an excuse to buy IBM shares a year ago , even the big institutional investors are looking for a reason to avoid the stock these days . NNP NNP , DT NNS NN IN NNP NNP , VBD IN IN NNS VBD VBG IN DT NN TO VB NNP VBZ DT NN RB , RB DT JJ JJ NNS VBP VBG IN DT NN TO VB DT NN DT NNS .
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On Wall Street yesterday , northern California 's killer earthquake was just another chance to make a buck . IN NNP NNP NN , JJ NNP POS NN NN VBD RB DT NN TO VB DT NN .
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At the opening bell , investors quickly began singling out shares of companies expected to profit or suffer in some way from the California disaster , including insurers , construction-related companies , refiners and housing lenders . IN DT NN NN , NNS RB VBD VBG RP NNS IN NNS VBN TO VB CC VB IN DT NN IN DT NNP NN , VBG NNS , JJ NNS , NNS CC NN NNS .
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Brokerage houses jumped in , touting `` post-quake demand '' stocks , and Kidder , Peabody & Co. set up a toll-free hot line for San Franciscans who might need emergency investment advice and help in transferring funds . NN NNS VBD IN , VBG `` JJ NN '' NNS , CC NNP , NNP CC NNP VBD IN DT JJ JJ NN IN NNP NNP WP MD VB NN NN NN CC VB IN VBG NNS .
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`` Wall Street thinks of everything in terms of money , '' says Tom Gallagher , a senior Oppenheimer & Co. trader . `` NNP NNP VBZ IN NN IN NNS IN NN , '' VBZ NNP NNP , DT JJ NNP CC NNP NN .
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However , he added , such event-driven trading moves typically last only a few hours and are often made without full information . RB , PRP VBD , JJ JJ NN NNS RB JJ RB DT JJ NNS CC VBP RB VBN IN JJ NN .
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The most popular plays of the day were insurance companies such as General Re Corp. , which rose $ 2.75 to $ 86.50 , Nac Re Corp. , up $ 2 to $ 37.75 , American International Group Inc. , up $ 3.25 to $ 102.625 , and Cigna Corp. , up 87.5 cents to $ 62.50 . DT RBS JJ NNS IN DT NN VBD NN NNS JJ IN NNP NNP NNP , WDT VBD $ CD TO $ CD , NNP NNP NNP , IN $ CD TO $ CD , NNP NNP NNP NNP , IN $ CD TO $ CD , CC NNP NNP , IN CD NNS TO $ CD .
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Yesterday , the brokerage firm Conning & Co. said insurers will use the earthquake as an excuse to raise insurance rates , ending their long price wars . NN , DT NN NN NNP CC NNP VBD NNS MD VB DT NN IN DT NN TO VB NN NNS , VBG PRP$ JJ NN NNS .
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Before this bullish theory surfaced , some insurance stocks initially fell , indicating that investors thought the quake might cost insurers a lot of money . IN DT JJ NN VBD , DT NN NNS RB VBD , VBG IN NNS VBD DT NN MD VB NNS DT NN IN NN .
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In fact , Fireman 's Fund Corp. , which ended the day off 50 cents to $ 36.50 , said earthquake damage would slightly hurt fourth-quarter profit . IN NN , NNP POS NNP NNP , WDT VBD DT NN IN CD NNS TO $ CD , VBD NN NN MD RB VBN JJ NN .
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On the prospect for rebuilding northern California , investors bid up cement-makers Calmat Co. , up $ 2.75 to $ 28.75 , and Lone Star Industries Inc. , up $ 1.75 to $ 29.25 . IN DT NN IN VBG JJ NNP , NNS VBP IN NNS NNP NNP , IN $ CD TO $ CD , CC NNP NNP NNP NNP , IN $ CD TO $ CD .
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Bridge and road builders had a field day , including Kasler Corp. , up $ 2.125 to $ 9.875 , Guy F. Atkinson Co. , up 87.5 to $ 61.875 , and Morrison Knudsen Corp. , which reported higher third-quarter earnings yesterday , up $ 2.25 to $ 44.125 . NNP CC NN NNS VBD DT NN NN , VBG NNP NNP , IN $ CD TO $ CD , NNP NNP NNP NNP , IN CD TO $ CD , CC NNP NNP NNP , WDT VBD JJR JJ NNS NN , IN $ CD TO $ CD .
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Fluor Corp. , a construction engineering firm , gained 75 cents to $ 33.375 . NNP NNP , DT NN NN NN , VBD CD NNS TO $ CD .
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But home-building stocks were a mixed bag . CC JJ NNS VBD DT VBN NN .
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Timber stocks got a big boost . NN NNS VBD DT JJ NN .
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Georgia Pacific Corp. , up $ 1.25 to $ 58 , and Maxxam Inc. , up $ 3 to $ 43.75 , both reported strong profits . NNP NNP NNP , IN $ CD TO $ CD , CC NNP NNP , IN $ CD TO $ CD , DT VBD JJ NNS .
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Merrill Lynch & Co. touted Georgia-Pacific , Louisiana Pacific Corp. and Willamette Industries Inc. as the best post-quake plywood plays . NNP NNP CC NNP VBD NNP , NNP NNP NNP CC NNP NNP NNP IN DT JJS JJ NN NNS .
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Other gainers were companies with one or more undamaged California refineries . JJ NNS VBD NNS IN CD CC RBR JJ NNP NNS .
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Tosco Corp. jumped $ 1.125 to $ 20.125 and Chevron Corp. , despite a temporary pipeline shutdown , rose $ 1 to $ 65 . NNP NNP VBD $ CD TO $ CD CC NNP NNP , IN DT JJ NN NN , VBD $ CD TO $ CD .
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Meanwhile , shares of some big housing lenders got hit , on the likelihood that the lenders ' collateral -- people 's homes -- suffered physical damage and perhaps a loss in value . RB , VBZ IN DT JJ NN NNS VBD VBN , IN DT NN IN DT NNS POS NN : NNS POS NNS : VBD JJ NN CC RB DT NN IN NN .
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Wells Fargo & Co. fell 50 cents to $ 81.50 , and BankAmerica Corp. fell 50 cents to $ 31.875 . NNP NNP CC NNP VBD CD NNS TO $ CD , CC NNP NNP VBD CD NNS TO $ CD .
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Some California thrift stocks also fell , including Golden West Financial Corp. and H.F. Ahmanson & Co. , which reported lower earnings yesterday . DT NNP NN NNS RB VBD , VBG NNP NNP NNP NNP CC NNP NNP CC NNP , WDT VBD JJR NNS NN .
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`` Property values did n't go up in California yesterday , '' says one money manager . `` NNP NNS VBD RB VB IN IN NNP NN , '' VBZ CD NN NN .
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Pacific Gas & Electric Co. fell 37.5 cents to $ 19.625 . NNP NNP CC NNP NNP VBD CD NNS TO $ CD .
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One of its power generators was damaged , though the company said there wo n't be any financial impact . CD IN PRP$ NN NNS VBD VBN , IN DT NN VBD EX MD RB VB DT JJ NN .
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Pacific Telesis Group lost 62.5 cents to $ 44.625 . NNP NNP NNP VBD CD NNS TO $ CD .
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A computer failure delayed its earnings announcement , and some investors think it might have extra costs to repair damaged telephone lines . DT NN NN VBD PRP$ NNS NN , CC DT NNS VBP PRP MD VB JJ NNS TO VB VBN NN NNS .
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Heavy construction , property-casualty insurance and forest products were among the best performing industry groups in the Dow Jones Equity Market Index yesterday . JJ NN , JJ NN CC NN NNS VBD IN DT JJS VBG NN NNS IN DT NNP NNP NNP NNP NNP NN .
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Friday 's stock market plunge claimed its second victim among the scores of futures and options trading firms here . NNP POS NN NN NN VBD PRP$ JJ NN IN DT NNS IN NNS CC NNS NN NNS RB .
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Petco Options , an options trading firm owned by the family of the deceased former Chicago Board of Trade chairman Ralph Peters , is getting out of the trade clearing , or processing and guaranteeing , business after sustaining a multimillion dollar loss Friday , options industry officials said . NNP NNPS , DT NNS NN NN VBN IN DT NN IN DT JJ JJ NNP NNP IN NNP NN NNP NNP , VBZ VBG IN IN DT NN VBG , CC NN CC VBG , NN IN VBG DT JJ NN NN NNP , NNS NN NNS VBD .
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Nearly 75 options traders on the Chicago Board Options Exchange who cleared trades through Petco , including a handful of traders who lost between $ 500,000 to $ 1 million themselves as a result of Friday 's debacle , are trying to transfer their business to other clearing firms , CBOE members said . RB CD NNS NNS IN DT NNP NNP NNP NNP WP VBD NNS IN NNP , VBG DT NN IN NNS WP VBD IN $ CD TO $ CD CD PRP IN DT NN IN NNP POS NN , VBP VBG TO VB PRP$ NN TO JJ NN NNS , NNP NNS VBD .
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Timothy Vincent , Petco chief executive officer , confirmed that Petco was withdrawing from the clearing business . NNP NNP , NNP JJ JJ NN , VBD IN NNP VBD VBG IN DT VBG NN .
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`` The owners of the company got a look at the potential risks in this business , and after Monday they felt they did n't want to be exposed any more , '' he said . `` DT NNS IN DT NN VBD DT NN IN DT JJ NNS IN DT NN , CC IN NNP PRP VBD PRP VBD RB VB TO VB VBN DT JJR , '' PRP VBD .
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He added that Petco remained in compliance with all industry capital requirements during the market 's rapid plunge Friday and Monday 's rebound . PRP VBD IN NNP VBD IN NN IN DT NN NN NNS IN DT NN POS JJ NN NNP CC NNP POS NN .
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A CBOE spokeswoman declined comment on Petco . DT NNP NN VBD VB IN NNP .
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Over the weekend Fossett Corp. , another options trading firm , transferred the clearing accounts of about 160 traders to First Options of Chicago , a unit of Continental Bank Corp. , because it could n't meet regulatory capital requirements after Friday 's market slide . IN DT NN NNP NNP , DT NNS NN NN , VBD DT VBG NNS IN IN CD NNS TO NNP NNPS IN NNP , DT NN IN NNP NNP NNP , IN PRP MD RB VB JJ NN NNS IN NNP POS NN NN .
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The unprecedented transfer of accounts underscored the options industry 's desire not to have its credibility tarnished by potentially widespread trading defaults on Monday . DT JJ NN IN NNS VBD DT NNS NN POS NN RB TO VB PRP$ NN VBN IN RB JJ NN NNS IN NNP .
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The CBOE , American Stock Exchange , Options Clearing Corp. and Stephen Fossett , owner of Fossett , joined in putting up $ 50 million to guarantee the accounts at First Options . DT NNP , NNP NNP NNP , NNP NNP NNP CC NNP NNP , NN IN NNP , VBD IN VBG IN $ CD CD TO VB DT NNS IN NNP NNPS .
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The head of another small options clearing firm , who asked not to be identified , said that the heightened volatility in the financial markets in recent years makes it increasingly difficult for any but the largest financial trading firms to shoulder the risk inherent in the highly leveraged options and futures business . DT NN IN DT JJ NNS VBG NN , WP VBD RB TO VB VBN , VBD IN DT VBN NN IN DT JJ NNS IN JJ NNS VBZ PRP RB JJ IN DT CC DT JJS JJ NN NNS TO VB DT NN JJ IN DT RB JJ NNS CC NNS NN .
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Prior to the introduction of financial futures in the late 1970s , most trading firms clustered around the LaSalle Street financial district here were family operations handed down from one generation to the next . RB TO DT NN IN JJ NNS IN DT JJ NNS , RBS NN NNS VBN IN DT NNP NNP JJ NN RB VBD NN NNS VBD RB IN CD NN TO DT JJ .
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Most also were relatively undercapitalized compared with the size of most Wall Street securities firms . JJS RB VBD RB JJ VBN IN DT NN IN RBS NNP NNP NNS NNS .
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Mr. Peters , a LaSalle Street legend among the post-World War II generation of commodity traders , was rumored to have amassed a multimillion-dollar fortune from commodity trading and other activities by the time he died in May . NNP NNP , DT NNP NNP NN IN DT NNP NNP NNP NN IN NN NNS , VBD VBN TO VB VBN DT JJ NN IN NN NN CC JJ NNS IN DT NN PRP VBD IN NNP .
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Part of a Series -RCB- NN IN DT NNP )
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Betty Lombardi is a mild-mannered homemaker and grandmother in rural Hunterdon County , N.J . NNP NNP VBZ DT JJ NN CC NN IN JJ NNP NNP , NNP .
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But put her behind a shopping cart and she turns ruthless . CC VB PRP IN DT NN NN CC PRP VBZ JJ .
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If Colgate toothpaste offers a tempting money-saving coupon , she 'll cross Crest off her shopping list without a second thought . IN NNP NN VBZ DT JJ JJ NN , PRP MD VB NNP IN PRP$ NN NN IN DT NN VBD .
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Never mind that her husband prefers Crest . RB NN IN PRP$ NN VBZ NNP .
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Some weeks when her supermarket runs a double-coupon promotion , she boasts that she shaves $ 22 off her bill . DT NNS WRB PRP$ NN VBZ DT NN NN , PRP VBZ IN PRP VBZ $ CD IN PRP$ NN .
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Money is n't the only thing that makes her dump once favorite brands . NNP VBZ RB DT JJ NN WDT VBZ PRP$ NN RB JJ NNS .
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After she heard about the artery-clogging hazards of tropical oils in many cookies , she dropped Pepperidge Farm and started buying brands free of such oils . IN PRP VBD IN DT NN NNS IN JJ NNS IN JJ NNS , PRP VBD NNP NNP CC VBD VBG NNS JJ IN JJ NNS .
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`` I always thought Pepperidge Farm was tasty and high quality , '' Mrs. Lombardi says . `` PRP RB VBD NNP NNP VBD JJ CC JJ NN , '' NNP NNP VBZ .
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`` But I do n't want any of that oil for my grandkids . '' `` CC PRP VBP RB VB DT IN DT NN IN PRP$ NNS . ''
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-LRB- Pepperidge Farm says it ca n't tell exactly how many customers it has lost , but it hopes to remove the objectionable tropical oil from all its products by year end . -RRB- ( NNP NNP VBZ PRP MD RB VB RB WRB JJ NNS PRP VBZ VBN , CC PRP VBZ TO VB DT JJ JJ NN IN DT PRP$ NNS IN NN NN . )
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Clearly , people like Mrs. Lombardi are giving marketers fits . RB , NNS IN NNP NNP VBP VBG NNS VBZ .
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She represents a new breed of savvy consumer who puts bargain prices , nutritional and environmental concerns , and other priorities ahead of old-fashioned brand loyalty . PRP VBZ DT JJ NN IN JJ NN WP VBZ NN NNS , JJ CC JJ NNS , CC JJ NNS RB IN JJ NN NN .
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While brand loyalty is far from dead , marketing experts say it has eroded during the 1980s . IN NN NN VBZ RB IN JJ , NN NNS VBP PRP VBZ VBN IN DT CD .
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Marketers themselves are partly to blame : They 've increased spending for coupons and other short-term promotions at the expense of image-building advertising . NNS PRP VBP RB TO VB : PRP VBP VBN NN IN NNS CC JJ JJ NNS IN DT NN IN JJ NN .
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What 's more , a flood of new products has given consumers a dizzying choice of brands , many of which are virtually carbon copies of one other . WP VBZ JJR , DT NN IN JJ NNS VBZ VBN NNS DT JJ NN IN NNS , NN IN WDT VBP JJ NN NNS IN CD JJ .
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`` Marketers have brought this on themselves with their heavy use '' of promotions , contends Joe Plummer , an executive vice president at the D'Arcy Masius Benton & Bowles ad agency . `` NNS VBP VBN DT IN PRP IN PRP$ JJ NN '' IN NNS , VBZ NNP NNP , DT JJ NN NN IN DT NNP NNP NNP CC NNP NN NN .
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`` Without some real product improvements , it 's going to be difficult to win that loyalty back . '' `` IN DT JJ NN NNS , PRP VBZ VBG TO VB JJ TO VB DT NN RB . ''
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The Wall Street Journal 's `` American Way of Buying '' survey this year found that most consumers switch brands for many of the products they use . DT NNP NNP NNP POS `` JJ NN IN VBG '' NN DT NN VBD IN RBS NNS VBP NNS IN NN IN DT NNS PRP VBP .
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For the survey , Peter D. Hart Research Associates asked some 2,000 consumers , including Mrs. Lombardi , whether they usually buy one brand of a certain type of product or have no brand loyalty . IN DT NN , NNP NNP NNP NNP NNPS VBD DT CD NNS , VBG NNP NNP , IN PRP RB VBP CD NN IN DT JJ NN IN NN CC VBP DT NN NN .
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More than half the users of 17 of the 25 products included in the survey said they 're brand switchers . RBR IN PDT DT NNS IN CD IN DT CD NNS VBD IN DT NN VBD PRP VBP NN NNS .
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Overall , 12 % of consumers are n't brand loyal for any of the 25 product categories . RB , CD NN IN NNS VBP RB VBP JJ IN DT IN DT CD NN NNS .
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About 47 % are loyal for one to five of the products . IN CD NN VBP JJ IN CD TO CD IN DT NNS .
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Only 2 % are brand loyal in 16 to 20 of the categories , and no one is loyal for more than 20 types of products . RB CD NN VBP NN JJ IN CD TO CD IN DT NNS , CC DT CD VBZ JJ IN JJR IN CD NNS IN NNS .
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For such products as canned vegetables and athletic shoes , devotion to a single brand was quite low , with fewer than 30 % saying they usually buy the same brand . IN JJ NNS IN JJ NNS CC JJ NNS , NN TO DT JJ NN VBD RB JJ , IN JJR IN CD NN VBG PRP RB VBP DT JJ NN .
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Only for cigarettes , mayonnaise and toothpaste did more than 60 % of users say they typically stick with the same brand . RB IN NNS , NN CC NN VBD JJR IN CD NN IN NNS VBP PRP RB VBP IN DT JJ NN .
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People tend to be most loyal to brands that have distinctive flavors , such as cigarettes and ketchup . NNS VBP TO VB RBS JJ TO NNS WDT VBP JJ NNS , JJ IN NNS CC NN .
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Kathie Huff , a respondent in the Journal survey from Spokane , Wash. , says her husband is adamant about eating only Hunt 's ketchup . NNP NNP , DT NN IN DT NNP NN IN NNP , NNP , VBZ PRP$ NN VBZ JJ IN VBG RB NNP POS NN .
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He simply ca n't stomach the taste of Heinz , she says . PRP RB MD RB VB DT NN IN NNP , PRP VBZ .
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The 31-year-old homemaker adds , `` The only other thing I 'm really loyal to is my Virginia Slims cigarettes . DT JJ NN VBZ , `` DT RB JJ NN PRP VBP RB JJ TO VBZ PRP$ NNP NNPS NNS .
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Coke and Pepsi are all the same to me , and I usually buy whichever brand of coffee happens to be on sale . '' NNP CC NNP VBP PDT DT JJ TO PRP , CC PRP RB VBP WDT VBP IN NN VBZ TO VB IN NN . ''
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Brand imagery plays a significant role in loyalty to such products as cigarettes , perfume and beer . NN NN VBZ DT JJ NN IN NN TO JJ NNS IN NNS , NN CC NN .
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People often stay with a particular brand because they want to be associated with the image its advertising conveys , whether that 's macho Marlboro cigarettes or Cher 's Uninhibited perfume . NNS RB VBP IN DT JJ NN IN PRP VBP TO VB VBN IN DT VB PRP$ NN VBZ , IN DT VBZ JJ NNP NNS CC NNP POS NNP NN .
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Loyalty lags most for utilitarian products like trash bags and batteries . NN VBZ RBS IN JJ NNS IN NN NNS CC NNS .
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Only 23 % of trash-bag users in the Journal survey usually buy the same brand , and just 29 % of battery buyers stick to one brand . RB CD NN IN NN NNS IN DT NNP NN RB VB DT JJ NN , CC RB CD NN IN NN NNS VBP TO CD NN .
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Underwear scored a middling 36 % in brand loyalty , but consumer researchers say that 's actually quite high for such a mundane product . NN VBD DT JJ CD NN IN NN NN , CC NN NNS VBP DT VBZ RB RB JJ IN JJ DT JJ NN .
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`` In the past , you just wore Fruit of the Loom and did n't care , '' says Peter Kim , U.S. director of consumer behavior research for the J. Walter Thompson ad agency . `` IN DT NN , PRP RB VBD NNP IN DT NNP CC VBD RB VB , '' VBZ NNP NNP , NNP NN IN NN NN NN IN DT NNP NNP NNP NN NN .
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`` The high score reflects the attempts to make underwear more of a fashion image business for both men and women . '' `` DT JJ NN VBZ DT NNS TO VB NN JJR IN DT NN NN NN IN DT NNS CC NNS . ''
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He believes there 's opportunity for a smart gasoline marketer to create a strong brand image and more consumer loyalty . PRP VBZ EX VBZ NN IN DT JJ NN NN TO VB DT JJ NN NN CC JJR NN NN .
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What loyalty there is to gas brands , he believes , is a matter of stopping at the most conveniently located service stations . WP NN EX VBZ TO VB NNS , PRP VBZ , VBZ DT NN IN VBG IN DT RBS RB VBN NN NNS .
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Brand loyalty was stronger among older consumers in the Journal survey . NN NN VBD JJR IN JJR NNS IN DT NNP NN .
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Nearly one-fourth of participants age 60 and older claim brand loyalty for more than 10 of the 25 products in the survey ; only 9 % of those age 18 to 29 have such strong allegiance . RB NN IN NNS VBP CD CC JJR NN NN NN IN JJR IN CD IN DT CD NNS IN DT NN : RB CD NN IN DT NN CD TO CD VBP JJ JJ NN .
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Higher-income people also tend to be more brand loyal these days , the Journal survey and other research studies indicate . JJR NNS RB VBP TO VB JJR NN JJ DT NNS , DT NNP NN CC JJ NN NNS VBP .
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Marketers speculate that more affluent people tend to lead more pressured lives and do n't have time to research the products they buy for the highest quality and most reasonable price . NNS VBP IN RBR JJ NNS VBP TO VB RBR VBN NNS CC VBP RB VB NN TO VB DT NNS PRP VBP IN DT JJS NN CC RBS JJ NN .
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An established brand name is insurance that at least the product will be of acceptable quality , if not always the best value for the money . DT VBN NN NN VBZ NN IN IN JJS DT NN MD VB IN JJ NN , IN RB RB DT JJS NN IN DT NN .
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It 's sort of loyalty by default . PRP VBZ NN IN NN IN NN .
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Meanwhile , `` the bottom end of the market is becoming less loyal , '' says Laurel Cutler , vice chairman of the ad agency FCB\/Leber Katz Partners . RB , `` DT NN NN IN DT NN VBZ VBG RBR JJ , '' VBZ NNP NNP , NN NN IN DT NN NN NNP NNP NNPS .
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`` They 're buying whatever 's cheaper . '' `` PRP VBP VBG WDT POS JJR . ''
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The biggest wild card in the brand loyalty game : How those hotly pursued but highly unpredictable baby boomers will behave as they move into middle age . DT JJS JJ NN IN DT NN NN NN : WRB DT RB VBN CC RB JJ NN NNS MD VB IN PRP VBP IN NN NN .
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They grew up with more brand choices than any generation and have shown less allegiance so far . PRP VBD IN IN JJR NN NNS IN DT NN CC VBP VBN JJR NN RB RB .
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But now that they 're settling down and raising families , might they also show more stability in their brand choices ? CC RB IN PRP VBP VBG RB CC VBG NNS , MD PRP RB VB JJR NN IN PRP$ NN NNS .
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Mr. Kim of J. Walter Thompson does n't think so . NNP NNP IN NNP NNP NNP VBZ RB VB RB .
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He believes baby boomers will continue to be selective in their brand loyalties . PRP VBZ NN NNS MD VB TO VB JJ IN PRP$ NN NNS .
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`` Earlier generations were brand loyal across categories , '' he says , `` but boomers tend to be brand loyal in categories like running shoes and bottled water , but less so in others like toilet paper and appliances . '' `` JJR NNS VBD NN JJ IN NNS , '' PRP VBZ , `` CC NNS VBP TO VB NN JJ IN NNS IN VBG NNS CC JJ NN , CC RBR RB IN NNS IN NN NN CC NNS . ''
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While not as brand loyal as in the past , consumers today do n't buy products capriciously , either . IN RB IN NN JJ IN IN DT NN , NNS NN VBP RB VB NNS RB , RB .
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Rather , they tend to have a set of two or three favorites . RB , PRP VBP TO VB DT NN IN CD CC CD NNS .
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Sometimes , they 'll choose Ragu spaghetti sauce ; other times , it will be Prego . RB , PRP MD VB NNP NNS NN : JJ NNS , PRP MD VB NNP .
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Advertisers attribute this shared loyalty to the striking similarity among brands . NNS VBP DT VBN NN TO DT JJ NN IN NNS .
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If a more absorbent Pampers hits the market , you can be sure a new and improved Huggies wo n't be far behind . IN DT RBR JJ NNPS VBZ DT NN , PRP MD VB JJ DT JJ CC VBN NNPS MD RB VB RB RB .
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The BBDO Worldwide ad agency studied `` brand parity '' and found that consumers believe all brands are about the same in a number of categories , particularly credit cards , paper towels , dry soups and snack chips . DT NNP NNP NN NN VBN `` NN NN '' CC VBD IN NNS VBP DT NNS VBP IN DT JJ IN DT NN IN NNS , RB VBP NNS , NN NNS , JJ NNS CC NN NNS .
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`` When there 's a clutter of brands , consumers simplify the complexity by telling themselves , ` All brands are the same so what difference does it make which I buy , ' '' says Karen Olshan , a senior vice president at BBDO . `` WRB EX VBZ DT NN IN NNS , NNS VBP DT NN IN VBG PRP , `` DT NNS VBP DT JJ RB WP NN VBZ PRP VBP WDT PRP VBP , '' '' VBZ NNP NNP , DT JJ NN NN IN NNP .
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`` Too often , advertising imagery has n't done a good job of forging a special emotional bond between a brand and the consumer . '' `` RB RB , NN NN VBZ RB VBN DT JJ NN IN VBG DT JJ JJ NN IN DT NN CC DT NN . ''
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But given such strong brand disloyalty , some marketers are putting renewed emphasis on image advertising . CC VBN JJ JJ NN NN , DT NNS VBP VBG VBN NN IN NN NN .
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A small but growing number of companies are also trying to instill more fervent brand loyalty through such personalized direct-marketing ploys as catalogs , magazines and membership clubs for brand users . DT JJ CC VBG NN IN NNS VBP RB VBG TO VB RBR JJ NN NN IN JJ VBN NN NNS IN NNS , NNS CC NN NNS IN NN NNS .
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While discount promotions are essential for most brands , some companies concede they went overboard in shifting money from advertising to coupons , refunds and other sales incentives . IN NN NNS VBP JJ IN RBS NNS , DT NNS VBP PRP VBD RB IN VBG NN IN NN TO NNS , NNS CC JJ NNS NNS .
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Some people argue that strong brands can afford to stop advertising for a time because of the residual impact of hundreds of millions of dollars spent on advertising through the years . DT NNS VBP IN JJ NNS MD VB TO VB NN IN DT NN IN IN DT JJ NN IN NNS IN NNS IN NNS VBD IN NN IN DT NNS .
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But most companies are too afraid to take that chance . CC RBS NNS VBP RB JJ TO VB DT NN .
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And perhaps with good reason . CC RB IN JJ NN .
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Says Clayt Wilhite , president of the D'Arcy Masius ad agency 's U.S. division , `` Every time 24 hours pass without any advertising reinforcement , brand loyalty will diminish ever so slightly -- even for a powerful brand like Budweiser . '' VBZ NNP NNP , NN IN DT NNP NNP NN NN POS NNP NN , `` DT NN CD NNS VBP IN DT NN NN , NN NN MD VB RB RB RB : RB IN DT JJ NN IN NNP . ''
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Consider , for example , what happened to Maxwell House coffee . VB , IN NN , WP VBD TO NNP NNP NN .
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The Kraft General Foods brand stopped advertising for about a year in 1987 and gave up several market share points and its leadership position in the coffee business . DT NNP NNP NNPS NN VBD NN IN IN DT NN IN CD CC VBD IN JJ NN NN NNS CC PRP$ NN NN IN DT NN NN .
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But since returning to advertising , Maxwell House has regained the lost share and is running neck and neck with archrival Folgers . CC IN VBG TO NN , NNP NNP VBZ VBN DT VBN NN CC VBZ VBG NN CC NN IN JJ NNP .
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`` Now , Philip Morris -LCB- Kraft General Foods ' parent company -RCB- is committed to the coffee business and to increased advertising for Maxwell House , '' says Dick Mayer , president of the General Foods USA division . `` RB , NNP NNP ( NNP NNP NNPS POS NN NN ) VBZ VBN TO DT NN NN CC TO VB NN IN NNP NNP , '' VBZ NNP NNP , NN IN DT NNP NNP NNP NN .
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`` Even though brand loyalty is rather strong for coffee , we need advertising to maintain and strengthen it . '' `` RB IN NN NN VBZ RB JJ IN NN , PRP VBP VBG TO VB CC VB PRP . ''
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Campbell Soup Co. , for one , has concluded that it makes good sense to focus more on its most loyal customers than on people who buy competitive brands . NNP NNP NNP , IN CD , VBZ VBN IN PRP VBZ JJ NN TO VB JJR IN PRP$ RBS JJ NNS IN IN NNS WP VBP JJ NNS .
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`` The probability of converting a non-user to your brand is about three in 1,000 , '' says Tony Adams , the company 's vice president for marketing research . `` DT NN IN VBG DT NN TO PRP$ NN VBZ IN CD IN CD , '' VBZ NNP NNP , DT NN POS NN NN IN NN NN .
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`` The best odds are with your core franchise . `` DT JJS NNS VBP IN PRP$ NN NN .
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Our heavy users consume two to three cans of soup a week , and we 'd like to increase that . '' PRP$ JJ NNS VBP CD TO CD NNS IN NN DT NN , CC PRP MD VB TO VB DT . ''
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So Campbell is talking to its `` brand enthusiasts , '' probing their psychological attachment to its soup . RB NNP VBZ VBG TO PRP$ `` NN NNS , '' VBG PRP$ JJ NN TO PRP$ NN .
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In one consumer focus group , a fan declared that , `` Campbell 's soup is like getting a hug from a friend . '' IN CD NN NN NN , DT NN VBD IN , `` NNP POS NN VBZ IN VBG DT NN IN DT NN . ''
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That helped persuade the company to introduce a new advertising slogan : `` A warm hug from Campbell 's . '' DT VBD VB DT NN TO VB DT JJ NN NN : `` DT JJ NN IN NNP POS . ''
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Insurers face the prospect of paying out billions of dollars for damages caused by this week 's California earthquake . NNS VBP DT NN IN VBG RP NNS IN NNS IN NNS VBN IN DT NN POS NNP NN .
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Getting a grip on the extent of the damages is proving a far more difficult task than what insurers faced after Hurricane Hugo ripped through the Caribbean and the Carolinas last month . VBG DT NN IN DT NN IN DT NNS VBZ VBG DT RB RBR JJ NN IN WP NNS VBN IN NNP NNP VBD IN DT NNP CC DT NNPS JJ NN .
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The earthquake 's toll , including possible deep structural damage , goes far beyond the more easily observed damage from a hurricane , says George Reider , a vice president in Aetna Life & Casualty Insurance Co. 's claims division . DT NN POS NN , VBG JJ JJ JJ NN , VBZ RB IN DT RBR RB VBN NN IN DT NN , VBZ NNP NNP , DT NN NN IN NNP NNP CC NNP NNP NNP POS NNS NN .
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But investors are betting that the financial and psychological impact of the earthquake , coming so soon after the hurricane , will help stem more than two years of intense price-cutting wars among business insurers . CC NNS VBP VBG IN DT JJ CC JJ NN IN DT NN , VBG RB RB IN DT NN , MD VB VB JJR IN CD NNS IN JJ NN NNS IN NN NNS .
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Reflecting that logic , insurance-company stocks posted strong gains . VBG DT NN , NN NNS VBD JJ NNS .
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Aetna and other insurers are hiring engineers and architects to help them assess structural damage . NNP CC JJ NNS VBP VBG NNS CC NNS TO VB PRP VB JJ NN .
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Most insurers already have mobilized their `` catastrophe '' teams to begin processing claims from their policyholders in northern California . JJS NNS RB VBP VBN PRP$ `` NN '' NNS TO VB NN NNS IN PRP$ NNS IN JJ NNP .
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Since commercial air travel is interrupted , Aetna , based in Hartford , Conn. , chartered three planes to fly claims adjusters into Sacramento and then planned for them to drive to the Bay area . IN JJ NN NN VBZ VBN , NNP , VBN IN NNP , NNP , JJ CD NNS TO VB NNS NNS IN NNP CC RB VBN IN PRP TO VB TO DT NNP NN .
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About 25 adjusters were dispatched yesterday afternoon , along with laptop computers , cellular phones and blank checks . IN CD NNS VBD VBN NN NN , IN IN NN NNS , JJ NNS CC JJ NNS .
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Some adjusters , already in other parts of California , drove to the disaster area with recreational vehicles and mobile homes that could be used as makeshift claims-processing centers . DT NNS , RB IN JJ NNS IN NNP , VBD TO DT NN NN IN JJ NNS CC JJ NNS WDT MD VB VBN IN JJ NN NNS .
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Insurers will be advertising 800 numbers -- probably on the radio -- that policyholders can call to get assistance on how to submit claims . NNS MD VB NN CD NNS : RB IN DT NN : IN NNS MD VB TO VB NN IN WRB TO VB NNS .
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State Farm Mutual Automobile Insurance Co. , the largest home and auto insurer in California , believes the losses from the earthquake could be somewhat less than the $ 475 million in damages it expects to pay out for claims resulting from Hurricane Hugo . NNP NNP NNP NNP NNP NNP , DT JJS NN CC NN NN IN NNP , VBZ DT NNS IN DT NN MD VB RB JJR IN DT $ CD CD IN NNS PRP VBZ TO VB RP IN NNS VBG IN NNP NNP .
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State Farm , based in Bloomington , Ind. , is also the largest writer of personal-property earthquake insurance in California . NNP NNP , VBN IN NNP , NNP , VBZ RB DT JJS NN IN NN NN NN IN NNP .
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Earthquake insurance is sold as a separate policy or a specific endorsement `` rider '' on a homeowner 's policy in California , because of the area 's vulnerability to earthquakes . NN NN VBZ VBN IN DT JJ NN CC DT JJ NN `` NN '' IN DT NN POS NN IN NNP , IN IN DT NN POS NN TO NNS .
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State Farm said about 25 % of its policyholders in California have also purchased earthquake insurance . NNP NNP VBD IN CD NN IN PRP$ NNS IN NNP VBP RB VBN NN NN .
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Allstate Insurance Co. , a unit of Sears , Roebuck & Co. , said about 23 % of its personal property policyholders -- about 28 % in the San Franciso area -- also have earthquake coverage . NNP NNP NNP , DT NN IN NNP , NNP CC NNP , VBD IN CD NN IN PRP$ JJ NN NNS : IN CD NN IN DT NNP NNP NN : RB VBP NN NN .
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The Association of California Insurance Companies estimated damage to residential property could total $ 500 million , but only $ 100 million to $ 150 million is insured , it said . DT NNP IN NNP NNP NNS VBD NN TO JJ NN MD VB $ CD CD , CC RB $ CD CD TO $ CD CD VBZ VBN , PRP VBD .
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Officials from the American Insurance Association 's property-claim service division , which coordinates the efforts of the claims adjusters in an area after a natural disaster , will be flying to San Francisco today . NNS IN DT NNP NNP NNP POS NN NN NN , WDT VBZ DT NNS IN DT NNS NNS IN DT NN IN DT JJ NN , MD VB VBG TO NNP NNP NN .
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They expect to have a preliminary estimate of the damages in a day or two . PRP VBP TO VB DT JJ NN IN DT NNS IN DT NN CC CD .
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Roads and bridges in the Bay area appear to have suffered some of the most costly damage . NNP CC NNS IN DT NNP NN VB TO VB VBN DT IN DT RBS JJ NN .
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Highways , such as the section of Interstate 880 that collapsed in Oakland , generally do n't have insurance coverage . NNS , JJ IN DT NN IN NNP CD WDT VBD IN NNP , RB VBP RB VB NN NN .
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Industry officials say the Bay Bridge -- unlike some bridges -- has no earthquake coverage , either , so the cost of repairing it probably would have to be paid out of state general operating funds . NN NNS VBP DT NNP NNP : IN DT NNS : VBZ DT NN NN , DT , RB DT NN IN VBG PRP RB MD VB TO VB VBN IN IN NN JJ NN NNS .
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However , the bridge , which charges a $ 1 toll each way , does have `` loss of income '' insurance to replace lost revenue if the operation of the bridge is interrupted for more than seven days . RB , DT NN , WDT VBZ DT $ CD NN DT NN , VBZ VBP `` NN IN NN '' NN TO VB VBD NN IN DT NN IN DT NN VBZ VBN IN JJR IN CD NNS .
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That coverage is provided by a syndicate of insurance companies including Fireman 's Fund Corp. , based in Novato , Calif. , and Cigna Corp. , based in Philadelphia . DT NN VBZ VBN IN DT NN IN NN NNS VBG NNP POS NNP NNP , VBN IN NNP , NNP , CC NNP NNP , VBN IN NNP .
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Earthquake-related claims are n't expected to cause significant financial problems for the insurance industry as a whole . JJ NNS VBP RB VBN TO VB JJ JJ NNS IN DT NN NN IN DT NN .
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Instead , even with the liabilities of two natural disasters in recent weeks , analysts said the total capital of the industry is likely to be higher at year end than it was at midyear . RB , RB IN DT NNS IN CD JJ NNS IN JJ NNS , NNS VBD DT JJ NN IN DT NN VBZ JJ TO VB JJR IN NN NN IN PRP VBD IN NN .
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Indeed , the earthquake could contribute to a turnaround in the insurance cycle in a couple of ways . RB , DT NN MD VB TO DT NN IN DT NN NN IN DT NN IN NNS .
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For example , insurers may seek to limit their future exposure to catastrophes by increasing the amount of reinsurance they buy . IN NN , NNS MD VB TO VB PRP$ NN NN TO NNS IN VBG DT NN IN NN PRP VBP .
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Such increased demand for reinsurance , along with the losses the reinsurers will bear from these two disasters , are likely to spur increases in reinsurance prices that will later be translated into an overall price rise . JJ VBN NN IN NN , IN IN DT NNS DT NNS MD VB IN DT CD NNS , VBP JJ TO VB NNS IN NN NNS WDT MD RB VB VBN IN DT JJ NN NN .
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Reinsurance is protection taken out by the insurance firms themselves . NNP VBZ NN VBN IN IN DT NN NNS PRP .
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`` We are saying this is the breaking point , this is the event that will change the psychology of the marketplace , '' said William Yankus , an analyst with Conning & Co. , a Hartford firm that specializes in the insurance industry . `` PRP VBP VBG DT VBZ DT VBG NN , DT VBZ DT NN WDT MD VB DT NN IN DT NN , '' VBD NNP NNP , DT NN IN NNP CC NNP , DT NNP NN WDT VBZ IN DT NN NN .
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