( S ( NP-SBJ ( NP ( NNP Oppenheimer ) ( POS 's ) ) ( NNP Mr. ) ( NNP Palmero ) ) ( ADVP-TMP ( RB meanwhile ) ) ( VP ( VBZ is ) ( VP ( VBG steering ) ( ADVP-CLR ( RB clear ) ) ( PP-CLR ( IN of ) ( NP ( NP ( NNP Gaylord ) ( NNP Container ) ) ( NP ( NNP Stone ) ( NNP Container ) ) ( CC and ) ( NP ( NNP Federal ) ( NNP Paper ) ( NNP Board ) ) ) ) ) ) )

Oppenheimer 's Mr. Palmero meanwhile is steering clear of Gaylord Container Stone Container and Federal Paper Board


( S ( NP-SBJ ( NNP Mr. ) ( NNP Schneider ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ cool ) ) ( PP ( TO to ) ( NP ( NP ( NNP Georgia ) ( NNP Pacific ) ) ( CC and ) ( NP ( NNP Abitibi-Price ) ) ) ) ) )

Mr. Schneider is cool to Georgia Pacific and Abitibi-Price


( S ( NP-SBJ ( NP ( NNP Lawrence ) ( NNP Ross ) ) ( PP ( IN of ) ( NP ( NNP PaineWebber ) ) ) ) ( VP ( MD would ) ( VP ( VB avoid ) ( NP ( NNP Union ) ( NNP Camp ) ) ) ) )

Lawrence Ross of PaineWebber would avoid Union Camp


( S ( NP-SBJ ( NP ( DT The ) ( NNS companies ) ) ( PP ( IN in ) ( NP ( NN question ) ) ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNS analysts ) ) ( VP ( VBP are ) ( ADJP-PRD ( RB too ) ( JJ pessimistic ) ) ) ) ) ) )

The companies in question believe the analysts are too pessimistic


( S ( NP-SBJ ( NNP Great ) ( NNP Northern ) ( NNP Nekoosa ) ) ( VP ( VBD said ) ( S ( NP-SBJ ( NP ( DT The ) ( NNS odds ) ) ( PP ( IN of ) ( S-NOM ( NP-SBJ ( NP ( DT the ) ( JJ dire ) ( NNS predictions ) ) ( PP ( IN about ) ( NP ( PRP us ) ) ) ) ( VP ( VBG being ) ( ADJP-PRD ( JJ right ) ) ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ small ) ) ) ) ) )

Great Northern Nekoosa said The odds of the dire predictions about us being right are small


( S ( NP-SBJ ( NNP International ) ( NNP Paper ) ) ( VP ( VBZ emphasizes ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( ADVP-MNR ( RBR better ) ) ( VBN positioned ) ) ( PP ( IN than ) ( NP ( JJS most ) ( NNS companies ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ coming ) ( NN overcapacity ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP$ its ) ( JJ individual ) ( NNS mills ) ) ( VP ( MD can ) ( VP ( VB make ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD one ) ) ( NN grade ) ) ( PP ( IN of ) ( NP ( NN paper ) ) ) ) ) ) ) ) ) ) ) ) ) )

International Paper emphasizes that it is better positioned than most companies for the coming overcapacity because its individual mills can make more than one grade of paper


( S ( NP-SBJ ( DT A ) ( NNP Boise-Cascade ) ( NN spokesman ) ) ( VP ( VBD referred ) ( PP-CLR ( TO to ) ( NP ( NP ( DT a ) ( NN speech ) ) ( PP ( IN by ) ( NP ( NNP Chairman ) ( NNP John ) ( NNP Fery ) ) ) ( SBAR ( WHPP-1 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNS markets ) ) ( ADVP ( RB generally ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ stable ) ) ( SBAR-ADV ( IN although ) ( S ( NP-SBJ ( NP ( DT some ) ( NN risk ) ) ( PP ( IN of ) ( NP ( JJ further ) ( NN price ) ( NN deterioration ) ) ) ) ( VP ( VBZ exists ) ) ) ) ) ) ) ) ) ) ) ) ) )

A Boise-Cascade spokesman referred to a speech by Chairman John Fery in which he said that markets generally are stable although some risk of further price deterioration exists


( S ( NP-SBJ ( NNP Stone ) ( NNP Container ) ( NNP Chairman ) ( NNP Roger ) ( NNP Stone ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP ( IN unlike ) ( PP ( IN for ) ( NP ( DT some ) ( JJ other ) ( NN paper ) ( NNS products ) ) ) ) ( NP-SBJ ( NP ( NN demand ) ) ( PP ( IN for ) ( NP ( NP ( NP ( NNP Stone ) ( POS 's ) ) ( JJ principal ) ( NN commodity ) ) ( NP ( JJ unbleached ) ( NN containerboard ) ) ) ) ) ( VP ( VBZ remains ) ( ADJP-PRD ( JJ strong ) ) ) ) ) ) )

Stone Container Chairman Roger Stone said that unlike for some other paper products demand for Stone 's principal commodity unbleached containerboard remains strong


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( NP ( DT the ) ( NN price ) ) ( PP ( IN for ) ( NP ( DT that ) ( NN product ) ) ) ) ( VP ( TO to ) ( VP ( VB rise ) ( ADVP-MNR ( RB even ) ( RBR more ) ) ( NP-TMP ( JJ next ) ( NN year ) ) ) ) ) ) )

He expects the price for that product to rise even more next year


( S ( NP-SBJ ( NNP Gaylord ) ( NNP Container ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNS analysts ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ skeptical ) ( PP ( IN of ) ( NP ( PRP it ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( VP ( VBG carrying ) ( NP ( NP ( DT a ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NN debt ) ) ) ) ) ) ) ) ) ) ) ) )

Gaylord Container said analysts are skeptical of it because it 's carrying a lot of debt


( S ( NP-SBJ ( NNP Champion ) ( NNP International ) ) ( VP ( VBD said ) ( S ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP 've ) ( VP ( VBN gotten ) ( S ( NP-SBJ ( PRP$ our ) ( NNS costs ) ) ( ADVP-PRD ( RB down ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( ADJP-PRD ( ADJP ( ADVP-MNR ( RBR better ) ) ( VBN positioned ) ) ( PP ( IN for ) ( NP ( DT any ) ( JJ cyclical ) ( NN downturn ) ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 've ) ( ADVP-TMP ( RB ever ) ) ( VP ( VBN been ) ) ) ) ) ) ) ) ) ) )

Champion International said We 've gotten our costs down and we 're better positioned for any cyclical downturn than we 've ever been


( S ( NP-SBJ ( NP ( NNP Louisiana ) ( NNP Pacific ) ) ( CC and ) ( NP ( NNP Georgia ) ( NNP Pacific ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT a ) ( NN number ) ) ( PP ( IN of ) ( NP ( JJ other ) ( NNS analysts ) ) ) ) ( VP ( VBP are ) ( VP ( VBG recommending ) ( NP ( PRP them ) ) ( PP-PRP ( RB because ) ( IN of ) ( NP ( PRP$ their ) ( JJ strong ) ( NNS wood-products ) ( NN business ) ) ) ) ) ) ) ) )

Louisiana Pacific and Georgia Pacific said a number of other analysts are recommending them because of their strong wood-products business


( S ( NP-SBJ ( NNP Federal ) ( NNP Paper ) ( NNP Board ) ) ( VP ( VBD said ) ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP 're ) ( RB not ) ( ADJP-PRD ( ADJP ( RB as ) ( JJ exposed ) ) ( PP ( IN as ) ( NP ( NP ( DT the ) ( JJ popular ) ( NN perception ) ) ( PP ( IN of ) ( NP ( PRP us ) ) ) ) ) ) ) ) ) )

Federal Paper Board said We 're not as exposed as the popular perception of us


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD explained ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( PRP$ its ) ( JJ main ) ( NN product ) ) ( NP ( JJ bleached ) ( NN paperboard ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ goes ) ( PP-DIR ( IN into ) ( NP ( NP ( DT some ) ( NN advertising ) ( NNS materials ) ) ( CC and ) ( NP ( JJ white ) ( NNS boxes ) ) ) ) ) ) ) ) ( ADVP ( RB historically ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB have ) ( NP ( JJ sharp ) ( NN price ) ( NNS swings ) ) ) ) ) ) ) )

The company explained that its main product bleached paperboard which goes into some advertising materials and white boxes historically does n't have sharp price swings


( S ( SBAR-PRP ( IN Because ) ( S ( NP-SBJ ( NP ( DT the ) ( NN stock ) ( NNS prices ) ) ( PP ( IN of ) ( NP ( DT some ) ( NN paper ) ( NNS companies ) ) ) ) ( ADVP-TMP ( RB already ) ) ( VP ( VBP reflect ) ( NP ( DT an ) ( JJ expected ) ( NN profit ) ( NN slump ) ) ) ) ) ( NP-SBJ ( NP ( NNP PaineWebber ) ( POS 's ) ) ( NNP Mr. ) ( NNP Ross ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ thinks ) ( SBAR ( IN that ) ( S ( NP-TMP ( JJ next ) ( NN year ) ) ( NP-SBJ ( NP ( DT the ) ( NN share ) ( NNS prices ) ) ( PP ( IN of ) ( NP ( DT some ) ( NNS companies ) ) ) ) ( VP ( MD may ) ( VP ( VB fall ) ( ADVP ( IN at ) ( RBS most ) ) ( NP-EXT ( QP ( RB only ) ( CD 5 ) ( NN % ) ( TO to ) ( CD 10 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) )

Because the stock prices of some paper companies already reflect an expected profit slump PaineWebber 's Mr. Ross says he thinks that next year the share prices of some companies may fall at most only 5 % to 10 %


( S-1 ( NP-SBJ-2 ( NP ( DT A ) ( NN company ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNP Federal ) ( NNP Paper ) ( NNP Board ) ) ) ) ( VP ( VP ( MD may ) ( VP ( VB be ) ( VP ( ADVP-MNR ( RB overly ) ) ( VBN discounted ) ) ) ) ( CC and ) ( VP ( VBZ looks ) ( ADJP-PRD ( JJ tempting ) ) ( PP ( TO to ) ( NP ( PRP him ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) ) ) ( SBAR-ADV ( IN though ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ is ) ( RB n't ) ( ADVP-TMP ( RB yet ) ) ( VP ( VBG recommending ) ( NP ( DT the ) ( NNS shares ) ) ) ) ) ) ) )

A company such as Federal Paper Board may be overly discounted and looks tempting to him he says though he is n't yet recommending the shares


( S ( NP-SBJ ( NNP Wall ) ( NNP Street ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG avoiding ) ( NP ( NP ( NN everything ) ) ( VP ( VBN connected ) ( PP-CLR ( IN with ) ( NP ( NN paper ) ) ) ) ) ) ) )

Wall Street is n't avoiding everything connected with paper


( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Palmero ) ) ( VP ( VBZ recommends ) ( NP ( NNP Temple-Inland ) ) ( S-ADV ( VP ( VBG explaining ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VP ( VBZ is ) ( NP-PRD ( NP ( RB virtually ) ( DT the ) ( JJ sole ) ( JJ major ) ( NN paper ) ( NN company ) ) ( VP ( RB not ) ( VBG undergoing ) ( NP ( DT a ) ( JJ major ) ( NN capacity ) ( NN expansion ) ) ) ) ) ( CC and ) ( VP ( ADVP ( RB thus ) ) ( MD should ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB lower ) ( NP ( JJ long-term ) ( NN debt ) ) ( ADVP-MNR ( RB substantially ) ) ( NP-TMP ( JJ next ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Palmero recommends Temple-Inland explaining that it is virtually the sole major paper company not undergoing a major capacity expansion and thus should be able to lower long-term debt substantially next year


( S ( NP-SBJ ( DT A ) ( NNP Temple-Inland ) ( NN spokesman ) ) ( VP ( VBD said ) ( SBAR ( S ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBZ expects ) ( NP ( JJ record ) ( NNS earnings ) ) ( PP-TMP ( IN in ) ( NP ( CD 1989 ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( ADVP-TMP ( RB still ) ) ( ADJP-PRD ( RB pretty ) ( JJ bullish ) ( PP ( IN on ) ( NP ( CD 1990 ) ) ) ) ) ) ) ) ) )

A Temple-Inland spokesman said the company expects record earnings in 1989 and we 're still pretty bullish on 1990


( S ( NP-SBJ ( DT The ) ( NNS analysts ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( PRP$ their ) ( JJ gloomy ) ( NNS forecasts ) ) ( VP ( VBP have ) ( NP ( DT a ) ( JJ flip ) ( NN side ) ) ) ) ) ) )

The analysts say their gloomy forecasts have a flip side


( S ( NP-SBJ ( DT Some ) ) ( VP ( VBP take ) ( NP ( NP ( DT a ) ( JJ warm ) ( NN view ) ) ( PP ( IN of ) ( NP ( NP ( JJ consumer-oriented ) ( NN paper ) ( NNS companies ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VP ( VBP buy ) ( NP ( NN pulp ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NN commodity ) ( NNS producers ) ) ) ) ( CC and ) ( VP ( MD should ) ( VP ( VB benefit ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( JJ expected ) ( NNS declines ) ) ( PP-LOC ( IN in ) ( NP ( NN pulp ) ( NNS prices ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Some take a warm view of consumer-oriented paper companies which buy pulp from the commodity producers and should benefit from the expected declines in pulp prices


( S ( NP-SBJ ( NP ( NNS Estimates ) ) ( PP ( IN on ) ( SBAR-NOM ( WHADVP-1 ( WRB how ) ( JJ much ) ) ( S ( NP-SBJ ( NN pulp ) ( NNS prices ) ) ( VP ( MD will ) ( VP ( VB fall ) ( NP-TMP ( JJ next ) ( NN year ) ) ) ) ) ) ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBP run ) ( PP-CLR ( IN between ) ( NP ( NP ( QP ( CD 150 ) ( CC and ) ( CD 250 ) ) ) ( NP-ADV ( DT a ) ( JJ metric ) ( NN ton ) ) ) ) ) )

Estimates on how much pulp prices will fall next year currently run between 150 and 250 a metric ton


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBP agree ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN price ) ( NN drop ) ) ( VP ( MD should ) ( VP ( ADVP-MNR ( RB especially ) ) ( VB benefit ) ( NP ( NP ( DT the ) ( CD two ) ( JJ big ) ( NN tissue ) ( NNS makers ) ) ( NP ( NP ( NNP Scott ) ( NNP Paper ) ) ( CC and ) ( NP ( NNP Kimberly-Clark ) ) ) ) ) ) ) ) ) )

Analysts agree that the price drop should especially benefit the two big tissue makers Scott Paper and Kimberly-Clark


( S ( NP-SBJ ( NP ( DT A ) ( NN spokesman ) ) ( PP ( IN for ) ( NP ( NNP Scott ) ) ) ) ( VP ( VBZ says ) ( SBAR ( IN that ) ( S ( S-ADV ( VP ( VBG assuming ) ( SBAR ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN price ) ) ( PP ( IN of ) ( NP ( NN pulp ) ) ) ) ( VP ( VBZ continues ) ( S ( VP ( TO to ) ( VP ( VB soften ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP We ) ) ( VP ( MD should ) ( VP ( VB do ) ( ADVP-MNR ( RB well ) ) ) ) ) ) ) )

A spokesman for Scott says that assuming the price of pulp continues to soften We should do well


( S ( S ( NP-SBJ-1 ( NN PROGRAM ) ( NN TRADING ) ) ( VP ( VBZ is ) ( VP ( VBG being ) ( VP ( VBN curbed ) ( PP ( IN by ) ( NP-LGS ( JJR more ) ( NNS securities ) ( NNS firms ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-2 ( JJ big ) ( JJ institutional ) ( NNS investors ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB continue ) ( NP ( DT the ) ( NN practice ) ) ( S-ADV ( ADVP ( RB further ) ) ( VP ( VBG roiling ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ) ) ) ) ) ) ) )

PROGRAM TRADING is being curbed by more securities firms but big institutional investors are expected to continue the practice further roiling the stock market


( S ( S-ADV ( VP ( VBG Bowing ) ( PP-CLR ( TO to ) ( NP ( NN criticism ) ) ) ) ) ( NP-SBJ-1 ( NP ( NNP Bear ) ( NNP Stearns ) ) ( NP ( NNP Morgan ) ( NNP Stanley ) ) ( CC and ) ( NP ( NNP Oppenheimer ) ) ) ( VP ( VBD joined ) ( NP ( NNP PaineWebber ) ) ( PP ( IN in ) ( S-NOM ( VP ( VBG suspending ) ( NP ( NP ( JJ stock-index ) ( NN arbitrage ) ( NN trading ) ) ( PP ( IN for ) ( NP ( PRP$ their ) ( JJ own ) ( NNS accounts ) ) ) ) ) ) ) ) )

Bowing to criticism Bear Stearns Morgan Stanley and Oppenheimer joined PaineWebber in suspending stock-index arbitrage trading for their own accounts


( S ( ADVP ( RB Still ) ) ( NP-SBJ-1 ( JJ stock-index ) ( NNS funds ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB continue ) ( S ( VP ( VBG launching ) ( NP ( JJ big ) ( NNS programs ) ) ( PP-MNR ( IN through ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ) ) ) )

Still stock-index funds are expected to continue launching big programs through the market


( S ( NP-SBJ-1 ( JJ Several ) ( NNP Big ) ( NNP Board ) ( NNS firms ) ) ( VP ( VBP are ) ( VP ( VBG organizing ) ( S-PRP ( VP ( TO to ) ( VP ( VB complain ) ( PP-CLR ( IN about ) ( NP ( NP ( NN program ) ( NN trading ) ) ( CC and ) ( NP ( NP ( NP ( DT the ) ( NN exchange ) ( POS 's ) ) ( NN role ) ) ( PP-LOC ( IN in ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) )

Several Big Board firms are organizing to complain about program trading and the exchange 's role in it


( S ( NP-SBJ-1 ( DT The ) ( NN effort ) ) ( VP ( VBZ is ) ( VP ( VBG being ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NNP Contel ) ) ) ) ) ) )

The effort is being led by Contel


( S ( NP-SBJ ( JJ Personal ) ( NN spending ) ) ( VP ( VBD rose ) ( NP-EXT ( NP ( CD 0.2 ) ( NN % ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ( NP-1 ( NP ( DT the ) ( JJS smallest ) ( NN gain ) ) ( PP-TMP ( IN in ) ( NP ( DT a ) ( NN year ) ) ) ) ) )

Personal spending rose 0.2 % in September the smallest gain in a year


( S ( NP-SBJ ( DT The ) ( NN slowdown ) ) ( VP ( VBZ raises ) ( NP ( NP ( NNS questions ) ) ( PP ( IN about ) ( NP ( NP ( DT the ) ( NN economy ) ( POS 's ) ) ( NN strength ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NN spending ) ) ( VP ( VBD fueled ) ( NP ( NP ( JJ much ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ third-quarter ) ( NNP GNP ) ( NN growth ) ) ) ) ) ) ) ) )

The slowdown raises questions about the economy 's strength because spending fueled much of the third-quarter GNP growth


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( JJ personal ) ( NN income ) ) ( VP ( VBD edged ) ( ADVP-CLR ( RB up ) ( NP ( CD 0.3 ) ( NN % ) ) ) ) )

Meanwhile personal income edged up 0.3 %


( S ( S-TPC-1 ( NP-SBJ ( NN Factory ) ( NNS owners ) ) ( VP ( VBP are ) ( VP ( VBG buying ) ( NP ( JJ new ) ( NN machinery ) ) ( PP ( IN at ) ( NP ( DT a ) ( JJ healthy ) ( NN rate ) ) ) ( NP-TMP ( DT this ) ( NN fall ) ) ) ) ) ( NP-SBJ ( JJ machine-tool ) ( NNS makers ) ) ( VP ( VBP say ) ) )

Factory owners are buying new machinery at a healthy rate this fall machine-tool makers say


( S ( CC But ) ( NP-SBJ ( JJ weak ) ( NN car ) ( NNS sales ) ) ( VP ( VBP raise ) ( NP ( NP ( NNS questions ) ) ( PP ( IN about ) ( NP ( NP ( JJ future ) ( NN demand ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN auto ) ( NN sector ) ) ) ) ) ) ) )

But weak car sales raise questions about future demand from the auto sector


( S ( NP-SBJ ( NP ( NNP Southern ) ( POS 's ) ) ( NNP Gulf ) ( NNP Power ) ( NN unit ) ) ( VP ( MD may ) ( VP ( VB plead ) ( ADJP-CLR ( JJ guilty ) ) ( NP-TMP ( DT this ) ( NN week ) ) ( PP-CLR ( TO to ) ( NP ( NNS charges ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( ADVP-MNR ( RB illegally ) ) ( VBD steered ) ( NP ( NN company ) ( NN money ) ) ( PP-DIR ( TO to ) ( NP ( NNS politicians ) ) ) ( PP-MNR ( IN through ) ( NP ( JJ third ) ( NNS parties ) ) ) ) ) ) ) ) ) ) )

Southern 's Gulf Power unit may plead guilty this week to charges it illegally steered company money to politicians through third parties


( S ( NP-SBJ ( DT The ) ( JJ tentative ) ( NN pact ) ) ( VP ( MD would ) ( VP ( VB resolve ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ broad ) ( NN investigation ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ Atlanta-based ) ( NN company ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ past ) ( NN year ) ) ) ) ) ) ) ) )

The tentative pact would resolve part of a broad investigation of the Atlanta-based company in the past year


( S ( NP-SBJ-1 ( NP ( NNP LIN ) ( NNP Broadcasting ) ) ( CC and ) ( NP ( NNP BellSouth ) ) ) ( VP ( VBD sweetened ) ( NP ( PRP$ their ) ( NN plan ) ( S ( VP ( TO to ) ( VP ( VB merge ) ( NP ( JJ cellular ) ( NN phone ) ( NNS operations ) ) ) ) ) ) ( S-ADV ( VP ( VBG offering ) ( NP ( NNP LIN ) ( NNS holders ) ) ( NP ( DT a ) ( JJ special ) ( ADJP ( JJ 42-a-share ) ) ( NN payout ) ) ) ) ) )

LIN Broadcasting and BellSouth sweetened their plan to merge cellular phone operations offering LIN holders a special 42-a-share payout


( S ( CC But ) ( NP-SBJ-1 ( DT the ) ( JJ new ) ( NN pact ) ) ( VP ( MD will ) ( VP ( VP ( VB force ) ( NP ( JJ huge ) ( NN debt ) ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( JJ new ) ( NN firm ) ) ) ) ( CC and ) ( VP ( MD could ) ( ADVP-TMP ( RB still ) ) ( VP ( VB fail ) ( S ( VP ( TO to ) ( VP ( VB thwart ) ( NP ( JJ rival ) ( NN suitor ) ( NNP McCaw ) ( NNP Cellular ) ) ) ) ) ) ) ) ) )

But the new pact will force huge debt on the new firm and could still fail to thwart rival suitor McCaw Cellular


( S ( NP-SBJ ( NNP Unisys ) ) ( VP ( VBD posted ) ( NP ( DT a ) ( ADJP ( QP ( CD 648.2 ) ( CD million ) ) ) ( NN loss ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD moved ) ( ADVP-MNR ( RB quickly ) ) ( S ( VP ( TO to ) ( VP ( VP ( VB take ) ( NP ( NNS write-offs ) ) ( PP ( IN for ) ( NP ( JJ various ) ( NNS problems ) ) ) ) ( CC and ) ( VP ( VB prepare ) ( PP-CLR ( IN for ) ( NP ( DT a ) ( NN turnaround ) ) ) ) ) ) ) ) ) ) ) )

Unisys posted a 648.2 million loss for the third quarter as it moved quickly to take write-offs for various problems and prepare for a turnaround


( S ( CC But ) ( NP-SBJ ( DT some ) ( NNS analysts ) ) ( VP ( VBP wonder ) ( SBAR ( WHADJP-1 ( WRB how ) ( JJ strong ) ) ( S ( NP-SBJ ( DT the ) ( NN recovery ) ) ( VP ( MD will ) ( VP ( VB be ) ) ) ) ) ) )

But some analysts wonder how strong the recovery will be


( S ( NP-SBJ-1 ( NNP RJR ) ( NNP Nabisco ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( CD three ) ( NN candy ) ( NNS businesses ) ) ( PP-DTV ( TO to ) ( NP ( NNP Nestle ) ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 370 ) ( CD million ) ) ) ) ) ) ) ) )

RJR Nabisco agreed to sell three candy businesses to Nestle for 370 million


( S ( NP-SBJ ( DT The ) ( NN accord ) ) ( VP ( VP ( VBZ helps ) ( S ( NP-SBJ ( NNP RJR ) ) ( VP ( NN pay ) ( PRT ( RP off ) ) ( NP ( NN debt ) ) ) ) ) ( CC and ) ( VP ( VBZ boosts ) ( NP ( NP ( NP ( NNP Nestle ) ( POS 's ) ) ( ADJP ( CD 7 ) ( NN % ) ) ( NN share ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP U.S. ) ( NN candy ) ( NN market ) ) ) ) ( PP-CLR ( TO to ) ( NP ( CD 12 ) ( NN % ) ) ) ) ) )

The accord helps RJR pay off debt and boosts Nestle 's 7 % share of the U.S. candy market to 12 %


( S ( NP-SBJ-1 ( NNP GM ) ( CC and ) ( NNP Ford ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB go ) ( ADVP-CLR ( NN head ) ( TO to ) ( NN head ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNS markets ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB buy ) ( PRT ( RP up ) ) ( NP ( NP ( JJ rival ) ( ADJP ( CD 15 ) ( NN % ) ) ( NNS stakes ) ) ( PP ( IN in ) ( NP ( NNP Jaguar ) ) ) ) ) ) ) ) ) ) ) ) )

GM and Ford are expected to go head to head in the markets to buy up rival 15 % stakes in Jaguar


( S ( NP-SBJ ( NNP GM ) ) ( VP ( VBD confirmed ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD received ) ( NP ( NNP U.S. ) ( JJ antitrust ) ( NN clearance ) ( S ( VP ( TO to ) ( VP ( VB boost ) ( NP ( PRP$ its ) ( NN holding ) ) ) ) ) ) ) ) ) ) )

GM confirmed it received U.S. antitrust clearance to boost its holding


( S ( NP-SBJ-1 ( NNP Sansui ) ( NNP Electric ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( DT a ) ( ADJP ( CD 51 ) ( NN % ) ) ( NN stake ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NNP Polly ) ( NNP Peck ) ) ( PP ( IN of ) ( NP ( NNP Britain ) ) ) ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 110 ) ( CD million ) ) ) ) ) ) ) ) )

Sansui Electric agreed to sell a 51 % stake to Polly Peck of Britain for 110 million


( S ( ADVP ( RB Still ) ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN accord ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB suggest ) ( SBAR ( S ( NP-SBJ ( NNP Japan ) ) ( VP ( VBZ is ) ( VP ( VBG opening ) ( PRT ( RP up ) ) ( PP-CLR ( TO to ) ( NP ( JJR more ) ( JJ foreign ) ( NNS takeovers ) ) ) ) ) ) ) ) ) ) ) ) )

Still analysts said the accord does n't suggest Japan is opening up to more foreign takeovers


( S ( NP-SBJ-2 ( NNP Kellogg ) ) ( VP ( VBD suspended ) ( NP ( NP ( NN work ) ) ( PP ( IN on ) ( NP ( DT a ) ( ADJP ( QP ( CD 1 ) ( CD billion ) ) ) ( NN cereal ) ( NN plant ) ) ) ) ( S-ADV ( VP ( VBG indicating ) ( NP ( NP ( DT a ) ( JJ pessimistic ) ( NN outlook ) ) ( PP ( IN by ) ( NP ( NP ( DT the ) ( NN cereal ) ( NN maker ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBG losing ) ( NP ( NN market ) ( NN share ) ) ) ) ) ) ) ) ) ) ) ) ) )

Kellogg suspended work on a 1 billion cereal plant indicating a pessimistic outlook by the cereal maker which has been losing market share


( S ( NP-SBJ ( NNS Insurers ) ) ( VP ( MD could ) ( VP ( VB see ) ( NP ( NP ( NNS claims ) ) ( VP ( VBG totaling ) ( NP ( NP ( QP ( RB nearly ) ( CD 1 ) ( CD billion ) ) ) ) ) ( PP ( IN from ) ( NP ( DT the ) ( NNP San ) ( NNP Francisco ) ( NN earthquake ) ) ) ( ADJP-2 ( ADJP ( RB far ) ( JJR less ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( QP ( CD 4 ) ( CD billion ) ) ) ( PP ( IN from ) ( NP ( NNP Hurricane ) ( NNP Hugo ) ) ) ) ) ) ) ) ) )

Insurers could see claims totaling nearly 1 billion from the San Francisco earthquake far less than the 4 billion from Hurricane Hugo


( S ( NP-SBJ-1 ( NNP Nashua ) ) ( VP ( VBD strengthened ) ( NP ( PRP$ its ) ( JJ poison-pill ) ( NN plan ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG announcing ) ( SBAR ( S ( NP-SBJ-2 ( DT a ) ( JJ Dutch ) ( NN firm ) ) ( VP ( VBZ is ) ( VP ( VBG seeking ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( QP ( RP up ) ( TO to ) ( CD 25 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP New ) ( NNP Hampshire ) ( NN copier ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Nashua strengthened its poison-pill plan after announcing a Dutch firm is seeking to buy up to 25 % of the New Hampshire copier company


( S ( NP-SBJ ( NNP Mobil ) ) ( VP ( VBZ is ) ( VP ( VBG cutting ) ( PRT ( RP back ) ) ( NP ( PRP$ its ) ( NNP U.S. ) ( NN oil ) ( CC and ) ( NN gas ) ( NN exploration ) ( CC and ) ( NN production ) ( NN group ) ) ( PP-CLR ( IN by ) ( NP ( QP ( IN up ) ( TO to ) ( CD 15 ) ) ( NN % ) ) ) ( PP ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN restructuring ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN business ) ) ) ) ) ) ) ) ) )

Mobil is cutting back its U.S. oil and gas exploration and production group by up to 15 % as part of a restructuring of the business


Markets


( NP ( NP ( NNS Stocks ) ) ( S ( NP-SBJ ( NN Volume ) ) ( NP-PRD ( CD 170,330,000 ) ( NNS shares ) ) ) )

Stocks Volume 170,330,000 shares


( S ( S ( NP-SBJ ( NNP Dow ) ( NNP Jones ) ( NNS industrials ) ) ( NP-PRD ( NP ( CD 2596.72 ) ) ( ADVP ( IN off ) ( NP ( CD 17.01 ) ) ) ) ) ( S ( NP-SBJ ( NN transportation ) ) ( NP-PRD ( NP ( CD 1190.43 ) ) ( ADVP ( RB off ) ( NP ( CD 14.76 ) ) ) ) ) ( S ( NP-SBJ ( NNS utilities ) ) ( NP-PRD ( NP ( CD 215.86 ) ) ( ADVP ( RB up ) ( NP ( CD 0.19 ) ) ) ) ) )

Dow Jones industrials 2596.72 off 17.01 transportation 1190.43 off 14.76 utilities 215.86 up 0.19


( NP ( NP ( NNS Bonds ) ) ( S ( NP-SBJ ( NNP Shearson ) ( NNP Lehman ) ( NNP Hutton ) ( NNP Treasury ) ( NN index ) ) ( NP-PRD ( NP ( CD 3406.31 ) ) ( ADVP ( RB off ) ) ) ) )

Bonds Shearson Lehman Hutton Treasury index 3406.31 off


( NP ( NP ( NNS Commodities ) ) ( S ( S ( NP-SBJ ( NNP Dow ) ( NNP Jones ) ( NNS futures ) ( NN index ) ) ( NP-PRD ( NP ( CD 129.49 ) ) ( ADVP ( RB up ) ( NP ( CD 0.27 ) ) ) ) ) ( S ( NP-SBJ ( NN spot ) ( NN index ) ) ( NP-PRD ( NP ( CD 130.80 ) ) ( ADVP ( RB off ) ( NP ( CD 0.24 ) ) ) ) ) ) )

Commodities Dow Jones futures index 129.49 up 0.27 spot index 130.80 off 0.24


( S ( NP-SBJ ( NN Dollar ) ) ( NP-PRD ( NP ( NP ( CD 141.65 ) ) ( NNS yen ) ( ADVP ( RB off ) ( NP ( CD 0.45 ) ) ) ) ( NP ( NP ( CD 1.8300 ) ( NNS marks ) ) ( ADVP ( RB off ) ( NP ( CD 0.0100 ) ) ) ) ) )

Dollar 141.65 yen off 0.45 1.8300 marks off 0.0100


( S ( NP-SBJ-1 ( DT The ) ( JJ following ) ) ( VP ( VBD were ) ( PP-LOC-PRD ( IN among ) ( NP ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( NNS offerings ) ( CC and ) ( NNS pricings ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ( CC and ) ( JJ non-U.S. ) ( NN capital ) ( NNS markets ) ) ) ) ) ( PP ( IN with ) ( NP ( NP ( NNS terms ) ) ( CC and ) ( NP ( NN syndicate ) ( NN manager ) ) ) ) ( SBAR-ADV ( IN as ) ( S ( VP ( VBN compiled ) ( PP ( IN by ) ( NP-LGS ( NNP Dow ) ( NNP Jones ) ( NNP Capital ) ( NNPS Markets ) ( NNP Report ) ) ) ) ) ) ) )

The following were among Friday '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


( NP ( NP ( NNP Sun ) ( NNPS Microsystems ) ( NNP Inc. ) ) ( NP ( NP ( QP ( CD 125 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( ADJP ( QP ( CD 6 ) ( CD 3\/8 ) ) ( NN % ) ) ( JJ convertible ) ( JJ subordinated ) ( NNS debentures ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP Oct. ) ( CD 15 ) ( CD 1999 ) ) ) ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( CD 84.90 ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.51 ) ( NN % ) ) ) ) ) ) ) ) ) )

Sun Microsystems Inc. 125 million of 6 3\/8 % convertible subordinated debentures due Oct. 15 1999 priced at 84.90 to yield 7.51 %


( S ( NP-SBJ ( DT The ) ( NNS debentures ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ convertible ) ( PP ( IN into ) ( NP ( JJ common ) ( NN stock ) ) ) ( PP ( IN at ) ( NP ( NP ( CD 25 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( S-ADV ( VP ( VBG representing ) ( NP ( NP ( DT a ) ( ADJP ( CD 24 ) ( NN % ) ) ( NN conversion ) ( NN premium ) ) ( PP ( IN over ) ( NP ( NP ( NNP Thursday ) ( POS 's ) ) ( NN closing ) ( NN price ) ) ) ) ) ) ) )

The debentures are convertible into common stock at 25 a share representing a 24 % conversion premium over Thursday 's closing price


( S ( S-ADV ( VP ( VP ( VBN Rated ) ( ADJP-3 ( JJ single-B-1 ) ) ( PP-4 ( IN by ) ( NP-LGS ( NP ( NNP Moody ) ( POS 's ) ) ( NNPS Investors ) ( NNP Service ) ( NNP Inc. ) ) ) ) ( CC and ) ( VP ( ADJP=3 ( JJ single-B-plus ) ) ( PP=4 ( IN by ) ( NP-LGS ( NP ( NNP Standard ) ( CC & ) ( NNP Poor ) ( POS 's ) ) ( NNP Corp. ) ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NN issue ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN sold ) ( PP-MNR ( IN through ) ( NP ( NP ( NNS underwriters ) ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NNP Goldman ) ( NNP Sachs ) ( CC & ) ( NNP Co ) ) ) ) ) ) ) ) ) )

Rated single-B-1 by Moody 's Investors Service Inc. and single-B-plus by Standard & Poor 's Corp. the issue will be sold through underwriters led by Goldman Sachs & Co


( NP ( NP ( NNP Hertz ) ( NNP Corp. ) ) ( NP ( NP ( NP ( QP ( CD 100 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( JJ senior ) ( NNS notes ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP Nov. ) ( CD 1 ) ( CD 2009 ) ) ) ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( NN par ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 9 ) ( NN % ) ) ) ) ) ) ) ) ) ) )

Hertz Corp. 100 million of senior notes due Nov. 1 2009 priced at par to yield 9 %


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN issue ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ puttable ) ( ADVP ( RB back ) ( PP ( TO to ) ( NP ( DT the ) ( NN company ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1999 ) ) ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN spread ) ) ( PP ( IN of ) ( NP ( NP ( CD 110 ) ( NN basis ) ( NNS points ) ) ( PP-LOC ( IN above ) ( NP ( NP ( DT the ) ( NNP Treasury ) ( POS 's ) ) ( JJ 10-year ) ( NN note ) ) ) ) ) ) ) ) ) )

The issue which is puttable back to the company in 1999 was priced at a spread of 110 basis points above the Treasury 's 10-year note


( S ( S-ADV ( VP ( VP ( VBN Rated ) ( ADJP-3 ( JJ single-A-3 ) ) ( PP-2 ( IN by ) ( NP-LGS ( NNP Moody ) ( POS 's ) ) ) ) ( CC and ) ( VP ( ADJP=3 ( JJ triple-B ) ) ( PP=2 ( IN by ) ( NP-LGS ( NNP S&P ) ) ) ) ) ) ( NP-SBJ-4 ( DT the ) ( NN issue ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN sold ) ( PP-MNR ( IN through ) ( NP ( NP ( NNS underwriters ) ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NNP Merrill ) ( NNP Lynch ) ( NNP Capital ) ( NNPS Markets ) ) ) ) ) ) ) ) ) )

Rated single-A-3 by Moody 's and triple-B by S&P the issue will be sold through underwriters led by Merrill Lynch Capital Markets


( NP ( NP ( NP ( NNP Canadian ) ( NNP Imperial ) ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NNP Commerce ) ) ) ( PRN ( NP-LOC ( NNP Canada ) ) ) ) ( NP ( NP ( QP ( CD 10 ) ( CD billion ) ) ( NNS yen ) ) ( PP ( IN of ) ( NP ( NP ( ADJP ( CD 5.7 ) ( NN % ) ) ( NNS bonds ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP Nov. ) ( CD 17 ) ( CD 1992 ) ) ) ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 101 ) ( CD 1\/4 ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( NP ( CD 5.75 ) ( NN % ) ) ( PP ( CC less ) ( NP ( JJ full ) ( NNS fees ) ) ) ) ) ) ) ) ( PP ( IN via ) ( NP ( NNP LTCB ) ( NNP International ) ( NNP Ltd ) ) ) ) ) ) )

Canadian Imperial Bank of Commerce Canada 10 billion yen of 5.7 % bonds due Nov. 17 1992 priced at 101 1\/4 to yield 5.75 % less full fees via LTCB International Ltd


( NP ( NNS Fees ) ( CD 1 ) ( CD 3\/8 ) )

Fees 1 3\/8


( FRAG ( S-ADV ( VP ( VBN Wanted ) ) ) ( NP ( NP ( DT An ) ( NN investment ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VP ( VBZ 's ) ( ADJP-PRD ( ADJP ( RB as ) ( JJ simple ) ( CC and ) ( JJ secure ) ) ( PP ( IN as ) ( NP ( NP ( DT a ) ( NN certificate ) ) ( PP ( IN of ) ( NP ( NN deposit ) ) ) ) ) ) ) ( CC but ) ( VP ( VBZ offers ) ( NP ( NP ( DT a ) ( NN return ) ) ( ADJP ( IN worth ) ( S ( VP ( VBG getting ) ( ADJP-PRD ( JJ excited ) ( PP ( IN about ) ) ) ) ) ) ) ) ) ) ) ) )

Wanted An investment that 's as simple and secure as a certificate of deposit but offers a return worth getting excited about


( S ( PP ( IN With ) ( S-NOM ( NP-SBJ ( NP ( QP ( CD 150 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NNS CDs ) ) ) ) ( VP ( VBG maturing ) ( NP-TMP ( DT this ) ( NN month ) ) ) ) ) ( NP-SBJ ( NP ( DT a ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NNS people ) ) ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG scouring ) ( NP ( DT the ) ( JJ financial ) ( NN landscape ) ) ( PP-CLR ( IN for ) ( NP ( RB just ) ( PDT such ) ( DT an ) ( NN investment ) ) ) ) ) ) )

With 150 billion of CDs maturing this month a lot of people have been scouring the financial landscape for just such an investment


( S ( PP-TMP ( IN In ) ( NP ( NNP April ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NP ( JJ many ) ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ) ( VP ( VBD bought ) ( NP ( PRP$ their ) ( NNS CDs ) ) ) ) ) ( S ( NP-SBJ ( JJ six-month ) ( NNS certificates ) ) ( VP ( VBD were ) ( VP ( VBG yielding ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 9 ) ) ( NN % ) ) ) ) ) ( S ( NP-SBJ ( NP ( NNS investors ) ) ( ADJP ( JJ willing ) ( S ( VP ( TO to ) ( VP ( VB look ) ) ) ) ) ) ( VP ( MD could ) ( VP ( VB find ) ( NP ( JJ double-digit ) ( NNS yields ) ) ( PP-LOC ( IN at ) ( NP ( DT some ) ( NNS banks ) ( CC and ) ( NNS thrifts ) ) ) ) ) ) )

In April when many of them bought their CDs six-month certificates were yielding more than 9 % investors willing to look could find double-digit yields at some banks and thrifts


( S ( ADVP-TMP ( RB Now ) ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ nationwide ) ( JJ average ) ( NN yield ) ) ( PP ( IN on ) ( NP ( DT a ) ( JJ six-month ) ( NNP CD ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( QP ( RB just ) ( IN under ) ( CD 8 ) ) ( NN % ) ) ) ) ( CC and ) ( S ( NP-SBJ ( CD 8.5 ) ( NN % ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( RB about ) ( DT the ) ( JJS best ) ) ( ADVP-LOC ( RB around ) ) ) ) ) )

Now the nationwide average yield on a six-month CD is just under 8 % and 8.5 % is about the best around


( S ( CC But ) ( NP-SBJ ( NP ( NNS investors ) ) ( VP ( VBG looking ) ( PP-CLR ( IN for ) ( NP ( NNS alternatives ) ) ) ) ) ( VP ( VBP are ) ( RB n't ) ( VP ( VBG finding ) ( S ( NP-SBJ ( PRP it ) ) ( ADJP-PRD ( JJ easy ) ) ) ) ) )

But investors looking for alternatives are n't finding it easy


( S ( NP-SBJ ( NP ( NNS Yields ) ) ( PP ( IN on ) ( NP ( JJS most ) ( JJ fixed-income ) ( NNS securities ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADJP ( JJR lower ) ) ( PP ( IN than ) ( ADVP-TMP ( NP ( JJ several ) ( NNS months ) ) ( RB ago ) ) ) ) ) )

Yields on most fixed-income securities are lower than several months ago


( S ( CC And ) ( NP-SBJ ( NP ( DT the ) ( NN stock ) ( NN market ) ( POS 's ) ) ( JJ recent ) ( NNS gyrations ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT a ) ( JJ painful ) ( NN reminder ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS dangers ) ) ( ADVP-LOC ( RB there ) ) ) ) ) ) )

And the stock market 's recent gyrations are a painful reminder of the dangers there


( SINV ( S-TPC-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP 're ) ( VP ( VBG looking ) ( PP-CLR ( IN for ) ( NP ( NP ( DT a ) ( ADJP ( RB significantly ) ( JJR higher ) ) ( NN yield ) ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( JJ same ) ( NN level ) ) ( PP ( IN of ) ( NP ( NN risk ) ) ) ( PP ( IN as ) ( NP ( DT a ) ( NNP CD ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( PRP you ) ) ( VP ( VBP 're ) ( RB not ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB find ) ( NP ( PRP it ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Washington ) ( JJ financial ) ( NN planner ) ( NNP Dennis ) ( NNP M. ) ( NNP Gurtz ) ) )

If you 're looking for a significantly higher yield with the same level of risk as a CD you 're not going to find it says Washington financial planner Dennis M. Gurtz


( S ( S-TPC-2 ( NP-SBJ ( EX There ) ) ( VP ( VBP are ) ( ADVP ( RB however ) ) ( NP-PRD ( NP ( DT some ) ( NNS alternatives ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( JJ income-oriented ) ( NNS investors ) ) ( VP ( MD should ) ( VP ( VB consider ) ) ) ) ) ) ) ) ( NP-SBJ ( NN investment ) ( NNS advisers ) ) ( VP ( VBP say ) ) )

There are however some alternatives that income-oriented investors should consider investment advisers say


( S ( NP-SBJ ( NP ( JJ Short-term ) ( JJ municipal ) ( NNS bonds ) ) ( NP ( NN bond ) ( NNS funds ) ) ( CC and ) ( NP ( JJ tax-deferred ) ( NNS annuities ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS choices ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP mention ) ( FRAG ( CC and ) ( RB not ) ( ADVP ( RB just ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( NN way ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB get ) ( NP ( DT a ) ( JJR higher ) ( NN return ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Short-term municipal bonds bond funds and tax-deferred annuities are some of the choices they mention and not just as a way to get a higher return


( S-2 ( PP ( IN In ) ( NP ( JJ particular ) ) ) ( PRN ( S ( NP-SBJ ( NNS advisers ) ) ( VP ( VBP say ) ) ) ) ( NP-SBJ-3 ( NNS investors ) ) ( VP ( MD may ) ( VP ( VB want ) ( S ( VP ( TO to ) ( VP ( VB look ) ( PP-CLR ( IN at ) ( NP ( NP ( NNS securities ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP reduce ) ( NP ( NP ( DT the ) ( NN risk ) ) ( SBAR ( WHNP-5 ( IN that ) ) ( S ( NP-SBJ ( NNP CD ) ( NNS holders ) ) ( VP ( VBP are ) ( VP ( VBG confronting ) ( ADVP-TMP ( RB right ) ( RB now ) ) ) ) ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG having ) ( S ( VP ( TO to ) ( VP ( VB reinvest ) ( NP ( NP ( DT the ) ( NNS proceeds ) ) ( PP ( IN of ) ( NP ( VBG maturing ) ( JJ short-term ) ( NNS certificates ) ) ) ) ( PP ( IN at ) ( NP ( JJR lower ) ( NNS rates ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In particular advisers say investors may want to look at securities that reduce the risk that CD holders are confronting right now of having to reinvest the proceeds of maturing short-term certificates at lower rates


( S ( NP-SBJ ( NP ( DT A ) ( NN mix ) ) ( PP ( IN of ) ( NP ( NP ( NNS CDs ) ) ( CC and ) ( NP ( JJ other ) ( NNS holdings ) ) ) ) ) ( VP ( MD may ) ( VP ( VB make ) ( NP ( DT the ) ( JJS most ) ( NN sense ) ) ) ) )

A mix of CDs and other holdings may make the most sense


( SINV ( S-TPC-2 ( S ( NP-SBJ ( NNS People ) ) ( VP ( MD should ) ( VP ( VB remember ) ( SBAR ( S ( NP-SBJ ( PRP$ their ) ( NN money ) ) ( VP ( VBZ is ) ( RB n't ) ( ADVP-PRD ( DT all ) ( CC or ) ( NN nothing ) ) ) ) ) ) ) ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB need ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VP ( VBG shopping ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( CD one ) ( JJ interest-rate-type ) ( NN investment ) ) ) ) ( CC and ) ( VP ( VBG putting ) ( NP ( PDT all ) ( PRP$ their ) ( NN money ) ) ( PP-PUT ( IN in ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NAC-LOC ( NNP Bethesda ) ( NNP Md. ) ) ( NN adviser ) ( NNP Karen ) ( NNP Schaeffer ) ) )

People should remember their money is n't all or nothing they do n't need to be shopping for the one interest-rate-type investment and putting all their money in it says Bethesda Md. adviser Karen Schaeffer


( SINV ( ADVP-PRD-LOC-TPC-1 ( RB Here ) ) ( VP ( VBZ 's ) ) ( NP-SBJ ( NP ( DT a ) ( NN look ) ) ( PP ( IN at ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS alternatives ) ) ) ) ) ) )

Here 's a look at some of the alternatives


( NP-HLN ( JJ SHORT-TERM ) ( NNS MUNICIPALS ) )

SHORT-TERM MUNICIPALS


( S ( NP-SBJ ( NP ( NNS Investors ) ) ( PP ( IN with ) ( NP ( DT a ) ( JJ heavy ) ( NN tax ) ( NN load ) ) ) ) ( VP ( MD should ) ( VP ( VB take ) ( PRT ( RP out ) ) ( NP ( PRP$ their ) ( NNS calculators ) ) ) ) )

Investors with a heavy tax load should take out their calculators


( S ( NP-SBJ ( NP ( NNS Yields ) ) ( PP ( IN on ) ( NP ( JJ municipal ) ( NNS bonds ) ) ) ) ( VP ( MD can ) ( VP ( VB be ) ( ADJP-PRD ( ADJP ( JJR higher ) ) ( PP ( IN than ) ( NP ( NP ( JJ after-tax ) ( NNS yields ) ) ( PP ( IN on ) ( NP ( NNS CDs ) ) ) ) ) ) ( PP ( IN for ) ( NP ( NP ( NNS maturities ) ) ( PP ( IN of ) ( NP ( QP ( RB perhaps ) ( CD one ) ( TO to ) ( CD five ) ) ( NNS years ) ) ) ) ) ) ) )

Yields on municipal bonds can be higher than after-tax yields on CDs for maturities of perhaps one to five years


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( SBAR-PRP-PRD ( RB because ) ( S ( NP-SBJ ( JJ municipal-bond ) ( NN interest ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ exempt ) ( PP ( PP ( IN from ) ( NP ( JJ federal ) ( NN income ) ( NN tax ) ) ) ( CC and ) ( PP ( IN from ) ( NP ( NN state ) ( CC and ) ( JJ local ) ( NNS taxes ) ) ( ADVP ( RB too ) ) ) ) ) ( PP ( IN for ) ( NP ( JJ in-state ) ( NNS investors ) ) ) ) ) ) ) )

That 's because municipal-bond interest is exempt from federal income tax and from state and local taxes too for in-state investors


( S ( PP ( IN For ) ( NP ( NP ( DT an ) ( NN investor ) ) ( VP ( VBG paying ) ( NP ( NN tax ) ) ( PP-CLR ( IN at ) ( NP ( DT a ) ( ADJP ( CD 33 ) ( NN % ) ) ( NN rate ) ) ) ) ) ) ( NP-SBJ ( NP ( DT a ) ( ADJP ( RB seemingly ) ( JJ puny ) ) ( ADJP ( CD 6 ) ( NN % ) ) ( NN yield ) ) ( PP ( IN on ) ( NP ( DT a ) ( JJ one-year ) ( NNS muni ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ equivalent ) ( PP ( TO to ) ( NP ( DT a ) ( JJ taxable ) ( CD 9 ) ( NN % ) ) ) ) ) )

For an investor paying tax at a 33 % rate a seemingly puny 6 % yield on a one-year muni is equivalent to a taxable 9 %


( S ( NP-SBJ ( NP ( NNS Rates ) ) ) ( VP ( VBP approach ) ( NP ( CD 6.5 ) ( NN % ) ) ( PP-1 ( IN on ) ( NP ( JJ five-year ) ( NNS municipals ) ) ) ) )

Rates approach 6.5 % on five-year municipals


( S ( NP-SBJ ( NP ( DT Some ) ) ( PP ( IN of ) ( NP ( DT the ) ( ADJP ( RBR more ) ( JJ cautious ) ) ( NNP CD ) ( NNS holders ) ) ) ) ( VP ( MD might ) ( VP ( VB like ) ( NP ( JJ pre-refunded ) ( NNS municipals ) ) ) ) )

Some of the more cautious CD holders might like pre-refunded municipals


( S ( NP-SBJ ( DT These ) ( NNS securities ) ) ( VP ( VBP get ) ( NP ( JJ top ) ( NN credit ) ( NNS ratings ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( DT the ) ( NNS issuers ) ) ( VP ( VBP have ) ( VP ( VBN put ) ( PRT ( RP aside ) ) ( NP ( NP ( NNP U.S. ) ( NNS bonds ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN sold ) ( S-PRP ( VP ( TO to ) ( VP ( VB pay ) ( PRT ( RP off ) ) ( NP ( NNS holders ) ) ) ) ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ-1 ( DT the ) ( NNS municipals ) ) ( VP ( VBP are ) ( VP ( VBN retired ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

These securities get top credit ratings because the issuers have put aside U.S. bonds that will be sold to pay off holders when the municipals are retired


( SINV ( S-TPC-1 ( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( DT a ) ( NN no-brainer ) ) ) ) ( S ( S ( NP-SBJ-2 ( PRP You ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB worry ) ( PP-CLR ( IN about ) ( NP ( NN diversification ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ-3 ( PRP you ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB worry ) ( PP-CLR ( IN about ) ( NP ( NN quality ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Steven ) ( NNP J. ) ( NNP Hueglin ) ) ( NP ( NP ( JJ executive ) ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NN bond ) ( NN firm ) ) ( PP ( IN of ) ( NP ( NNP Gabriele ) ( NNP Hueglin ) ( CC & ) ( NNP Cashman ) ( NNP Inc ) ) ) ) ) ) ) )

It 's a no-brainer You do n't have to worry about diversification you do n't have to worry about quality says Steven J. Hueglin executive vice president of the New York bond firm of Gabriele Hueglin & Cashman Inc


( SINV ( S-TPC-1 ( VP ( VB Consider ) ( NP ( NP ( DT a ) ( JJ laddered ) ( NN bond ) ( NN portfolio ) ) ( PP ( IN with ) ( NP ( NP ( NNS issues ) ) ( VP ( VBG maturing ) ( PP-TMP ( IN in ) ( PRN ( ADVP ( VB say ) ) ) ( NP ( CD 1992 ) ( CD 1993 ) ( CC and ) ( CD 1994 ) ) ) ) ) ) ) ) ) ( VP ( VBZ advises ) ) ( NP-SBJ ( NP ( NNP Malcolm ) ( NN A. ) ( NNP Makin ) ) ( NP ( DT a ) ( NAC-LOC ( NNP Westerly ) ( NNP R.I. ) ) ( JJ financial ) ( NN planner ) ) ) )

Consider a laddered bond portfolio with issues maturing in say 1992 1993 and 1994 advises Malcolm A. Makin a Westerly R.I. financial planner


( S ( NP-SBJ ( DT The ) ( NN idea ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB have ) ( S ( NP-SBJ ( NN money ) ) ( VP ( VBG rolling ) ( PRT ( RP over ) ) ( NP-TMP ( DT each ) ( NN year ) ) ( PP-CLR ( IN at ) ( NP ( JJ prevailing ) ( NN interest ) ( NNS rates ) ) ) ) ) ) ) ) ) )

The idea is to have money rolling over each year at prevailing interest rates


BOND FUNDS


( S ( NP-SBJ ( NN Bond ) ( JJ mutual ) ( NNS funds ) ) ( VP ( VP ( VBP offer ) ( NP ( NN diversification ) ) ) ( CC and ) ( VP ( VBP are ) ( ADJP-PRD ( JJ easy ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB buy ) ( CC and ) ( VB sell ) ) ) ) ) ) ) ) )

Bond mutual funds offer diversification and are easy to buy and sell


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ makes ) ( S ( NP-SBJ ( PRP them ) ) ( NP-PRD ( DT a ) ( JJ reasonable ) ( NN option ) ) ) ( PP ( IN for ) ( NP ( NP ( NNS investors ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( MD will ) ( VP ( VB accept ) ( NP ( NP ( DT some ) ( NN risk ) ) ( PP ( IN of ) ( NP ( NN price ) ( NN fluctuation ) ) ) ) ( SBAR-PRP ( IN in ) ( NN order ) ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( DT a ) ( NN bet ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN interest ) ( NNS rates ) ) ( VP ( MD will ) ( VP ( VB decline ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ next ) ( NN year ) ( QP ( CC or ) ( RB so ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

That makes them a reasonable option for investors who will accept some risk of price fluctuation in order to make a bet that interest rates will decline over the next year or so


( S ( NP-SBJ ( NNS Buyers ) ) ( VP ( MD can ) ( VP ( VB look ) ( PRT ( RP forward ) ) ( PP-CLR ( TO to ) ( NP ( JJ double-digit ) ( JJ annual ) ( NNS returns ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ right ) ) ) ) ) ) ) )

Buyers can look forward to double-digit annual returns if they are right


( S ( CC But ) ( NP-SBJ ( PRP they ) ) ( VP ( MD will ) ( VP ( VB have ) ( NP ( NP ( JJ disappointing ) ( NNS returns ) ) ( CC or ) ( ADVP ( JJ even ) ) ( NP ( NNS losses ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NN interest ) ( NNS rates ) ) ( VP ( VBP rise ) ( ADVP ( RB instead ) ) ) ) ) ) ) )

But they will have disappointing returns or even losses if interest rates rise instead


( S ( NP-SBJ ( NP ( NN Bond ) ( NN resale ) ( NNS prices ) ) ( CC and ) ( ADVP ( RB thus ) ) ( NP ( NN fund ) ( NN share ) ( NNS prices ) ) ) ( VP ( VBP move ) ( PP-DIR ( IN in ) ( NP ( NP ( DT the ) ( JJ opposite ) ( NN direction ) ) ( PP ( IN from ) ( NP ( NNS rates ) ) ) ) ) ) )

Bond resale prices and thus fund share prices move in the opposite direction from rates


( S ( NP-SBJ ( DT The ) ( NN price ) ( NNS movements ) ) ( VP ( VB get ) ( ADJP-PRD ( JJR bigger ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NP ( DT the ) ( NN maturity ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS securities ) ) ) ) ( VP ( VBZ lengthens ) ) ) ) ) )

The price movements get bigger as the maturity of the securities lengthens


( S ( VP ( VB Consider ) ( PP ( IN for ) ( NP ( NN instance ) ) ) ( NP ( NP ( CD two ) ( NN bond ) ( NNS funds ) ) ( PP ( IN from ) ( NP ( NP ( NNP Vanguard ) ( NNP Group ) ) ( PP ( IN of ) ( NP ( NNP Investment ) ( NNP Cos. ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD were ) ( DT both ) ( VP ( VBG yielding ) ( NP ( CD 8.6 ) ( NN % ) ) ( PP-TMP ( IN on ) ( NP ( DT a ) ( JJ recent ) ( NN day ) ) ) ) ) ) ) ) ) )

Consider for instance two bond funds from Vanguard Group of Investment Cos. that were both yielding 8.6 % on a recent day


( S ( NP-SBJ ( NP ( DT The ) ( NNP Short ) ( NNP Term ) ( NNP Bond ) ( NNP Fund ) ) ( PP ( IN with ) ( NP ( NP ( DT an ) ( JJ average ) ( NN maturity ) ) ( PP ( IN of ) ( NP ( QP ( CD 2 ) ( CD 1\/2 ) ) ( NNS years ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VP ( VB deliver ) ( NP-1 ( NP ( DT a ) ( JJ total ) ( NN return ) ) ( PP ( IN for ) ( NP ( CD one ) ( NN year ) ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 10.6 ) ) ( NN % ) ) ) ) ( SBAR-ADV-2 ( IN if ) ( S ( NP-SBJ ( NNS rates ) ) ( VP ( VBP drop ) ( NP-EXT ( CD one ) ( NN percentage ) ( NN point ) ) ) ) ) ) ( CC and ) ( VP ( NP=1 ( NP ( DT a ) ( JJ one-year ) ( NN return ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 6.6 ) ) ( NN % ) ) ) ) ( SBAR-ADV=2 ( IN if ) ( S ( NP-SBJ ( NNS rates ) ) ( VP ( VBP rise ) ( PP-EXT ( IN by ) ( NP ( DT the ) ( JJ same ) ( NN amount ) ) ) ) ) ) ) ) ) )

The Short Term Bond Fund with an average maturity of 2 1\/2 years would deliver a total return for one year of about 10.6 % if rates drop one percentage point and a one-year return of about 6.6 % if rates rise by the same amount


( S ( CC But ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ same ) ( NNS circumstances ) ) ) ( NP-SBJ ( DT the ) ( NNS returns ) ) ( VP ( MD would ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( ADJP ( RBR more ) ( JJ extreme ) ) ( NX ( NX ( CD 14.6 ) ( NN % ) ) ( CC and ) ( NX ( CD 2.6 ) ( NN % ) ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNP Vanguard ) ( NNP Bond ) ( NNP Market ) ( NNP Fund ) ) ( PP ( IN with ) ( NP ( PRP$ its ) ( ADJP ( CD 12 ) ( JJ 1\/2-year ) ) ( JJ average ) ( NN maturity ) ) ) ) ) ) ) )

But in the same circumstances the returns would be a more extreme 14.6 % and 2.6 % for the Vanguard Bond Market Fund with its 12 1\/2-year average maturity


( SINV ( S-TPC-1 ( NP-SBJ ( PRP You ) ) ( VP ( VB get ) ( NP ( JJ equity-like ) ( NNS returns ) ) ( PP ( IN from ) ( NP ( NNS bonds ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VB guess ) ( ADVP-MNR ( RB right ) ) ( PP-CLR ( IN on ) ( NP ( NNS rates ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP James ) ( NNP E. ) ( NNP Wilson ) ) ( NP ( DT a ) ( NAC-LOC ( NNP Columbia ) ( NNP S.C. ) ) ( NN planner ) ) ) )

You get equity-like returns from bonds if you guess right on rates says James E. Wilson a Columbia S.C. planner


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NN interest ) ( NNS rates ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB change ) ) ) ) ) ( NP-SBJ ( NP ( NN bond ) ( NN fund ) ( NNS investors ) ( POS ' ) ) ( NNS returns ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( RB about ) ( JJ equal ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NNS funds ) ( POS ' ) ) ( JJ current ) ( NNS yields ) ) ) ) ) ) )

If interest rates do n't change bond fund investors ' returns will be about equal to the funds ' current yields


( NP-HLN ( JJ DEFERRED ) ( NNS ANNUITIES ) )

DEFERRED ANNUITIES


( S ( NP-SBJ ( DT These ) ( NN insurance ) ( NN company ) ( NNS contracts ) ) ( VP ( VBP feature ) ( NP ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ same ) ( NN tax ) ( NNS benefits ) ( CC and ) ( NNS restrictions ) ) ( PP ( IN as ) ( NP ( JJ non-deductible ) ( JJ individual ) ( NN retirement ) ( NNS accounts ) ) ) ) ) ) ( S ( S ( NP-SBJ-1 ( NN Investment ) ( NNS gains ) ) ( VP ( VBP are ) ( VP ( VBN compounded ) ( PP ( IN without ) ( NP ( NN tax ) ( NNS consequences ) ) ) ( SBAR-TMP ( IN until ) ( S ( NP-SBJ-2 ( NN money ) ) ( VP ( VBZ is ) ( VP ( VBN withdrawn ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-3 ( DT a ) ( ADJP ( CD 10 ) ( NN % ) ) ( NN penalty ) ( NN tax ) ) ( VP ( VBZ is ) ( VP ( VBN imposed ) ( PP-CLR ( IN on ) ( NP ( NP ( NNS withdrawals ) ) ( VP ( VBN made ) ( PP-TMP ( IN before ) ( NP ( NN age ) ( QP ( CD 59 ) ( CD 1\/2 ) ) ) ) ) ) ) ) ) ) ) ) ) )

These insurance company contracts feature some of the same tax benefits and restrictions as non-deductible individual retirement accounts Investment gains are compounded without tax consequences until money is withdrawn but a 10 % penalty tax is imposed on withdrawals made before age 59 1\/2


( SINV ( VP-TPC-1 ( VBN Aimed ) ( ADVP-MNR ( RB specifically ) ) ( PP-CLR ( IN at ) ( NP ( NNP CD ) ( NNS holders ) ) ) ) ( VP ( VBP are ) ) ( NP-SBJ-2 ( NP ( JJ so-called ) ( JJ CD-type ) ( NNS annuities ) ) ( CC or ) ( NP ( NP ( NNS certificates ) ) ( PP ( IN of ) ( NP ( NN annuity ) ) ) ) ) )

Aimed specifically at CD holders are so-called CD-type annuities or certificates of annuity


( S ( NP-SBJ-1 ( DT An ) ( NN interest ) ( NN rate ) ) ( VP ( VBZ is ) ( VP ( VBN guaranteed ) ( PP-CLR ( IN for ) ( NP ( QP ( IN between ) ( CD one ) ( CC and ) ( CD seven ) ) ( NNS years ) ) ) ( SBAR-TMP ( WHPP-4 ( IN after ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NNS holders ) ) ( VP ( VBP get ) ( NP ( NP ( CD 30 ) ( NNS days ) ) ( SBAR ( S ( VP ( VP ( TO to ) ( VP ( VB choose ) ( NP ( DT another ) ( NN guarantee ) ( NN period ) ) ) ) ( CC or ) ( VP ( TO to ) ( VP ( VB switch ) ( PP-CLR ( TO to ) ( NP ( NP ( DT another ) ( NN insurer ) ( POS 's ) ) ( NN contract ) ) ) ( PP ( IN without ) ( NP ( NP ( DT the ) ( NN surrender ) ( NNS charges ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBP are ) ( ADJP-PRD ( JJ common ) ( PP ( TO to ) ( NP ( NNS annuities ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

An interest rate is guaranteed for between one and seven years after which holders get 30 days to choose another guarantee period or to switch to another insurer 's contract without the surrender charges that are common to annuities


( S ( NP-SBJ ( DT Some ) ( JJ current ) ( NNS rates ) ) ( VP ( VBP exceed ) ( NP ( NP ( DT those ) ) ( PP ( IN on ) ( NP ( NNS CDs ) ) ) ) ) )

Some current rates exceed those on CDs


( S ( PP ( IN For ) ( NP ( NN instance ) ) ) ( NP-SBJ ( NP ( DT a ) ( JJ CD-type ) ( NN annuity ) ) ( PP ( IN from ) ( NP ( NP ( NP ( NNP North ) ( NNP American ) ( NNP Co. ) ) ( PP ( IN for ) ( NP ( NNP Life ) ( CC & ) ( NNP Health ) ( NNP Insurance ) ) ) ) ( NP-LOC ( NNP Chicago ) ) ) ) ) ( VP ( VP ( VBZ offers ) ( NP-1 ( ADJP ( CD 8.8 ) ( NN % ) ) ( NN interest ) ) ( PP-2 ( IN for ) ( NP ( CD one ) ( NN year ) ) ) ) ( CC or ) ( VP ( NP=1 ( DT a ) ( ADJP ( CD 9 ) ( NN % ) ) ( NN rate ) ) ( PP=2 ( IN for ) ( NP ( CD two ) ( NNS years ) ) ) ) ) )

For instance a CD-type annuity from North American Co. for Life & Health Insurance Chicago offers 8.8 % interest for one year or a 9 % rate for two years


( S ( NP-SBJ ( NNS Annuities ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB rarely ) ) ( NP-PRD ( DT a ) ( JJ good ) ( NN idea ) ) ( PP-TMP ( IN at ) ( NP ( NN age ) ( CD 35 ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( DT the ) ( NN withdrawal ) ( NNS restrictions ) ) ) ) )

Annuities are rarely a good idea at age 35 because of the withdrawal restrictions


( SINV ( S-TPC-1 ( CC But ) ( PP-TMP ( IN at ) ( NP ( NN age ) ( CD 55 ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( MD may ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( JJ great ) ( NN deal ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Wilson ) ) ( NP ( DT the ) ( NAC-LOC ( NNP Columbia ) ( NNP S.C. ) ) ( NN planner ) ) ) )

But at age 55 they may be a great deal says Mr. Wilson the Columbia S.C. planner


( NP-HLN ( NN MONEY ) ( NN MARKET ) ( NNS FUNDS ) )

MONEY MARKET FUNDS


( UCP ( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJ right ) ) ) ) ( NP ( NN money ) ( NN market ) ( JJ mutual ) ( NNS funds ) ) )

That 's right money market mutual funds


( S ( NP-SBJ ( DT The ) ( JJ conventional ) ( NN wisdom ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VP ( VB go ) ( PP-CLR ( IN into ) ( NP ( NN money ) ( NNS funds ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NNS rates ) ) ( VP ( VBP are ) ( VP ( VBG rising ) ) ) ) ) ) ( CC and ) ( VP ( VB shift ) ( ADVP-CLR ( RB out ) ) ( PP-TMP ( IN at ) ( NP ( NP ( NNS times ) ) ( PP ( JJ such ) ( IN as ) ( NP ( DT the ) ( NN present ) ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ-3 ( NNS rates ) ) ( VP ( VBP seem ) ( VP ( VBN headed ) ( ADVP-DIR ( RB down ) ) ) ) ) ) ) ) ) ) ) ) ) )

The conventional wisdom is to go into money funds when rates are rising and shift out at times such as the present when rates seem headed down


( S ( PP ( IN With ) ( NP ( NP ( JJ average ) ( NNS maturities ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN month ) ( QP ( CC or ) ( RB so ) ) ) ) ) ) ( NP-SBJ ( NN money ) ( NNS funds ) ) ( VP ( VBP offer ) ( NP ( NP ( JJ fixed ) ( NN share ) ( NNS prices ) ) ( CC and ) ( NP ( NP ( VBG floating ) ( NNS returns ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( VP ( VBP track ) ( NP ( NN market ) ( NN interest ) ( NNS rates ) ) ( PP-MNR ( IN with ) ( NP ( DT a ) ( JJ slight ) ( NN lag ) ) ) ) ) ) ) ) ) )

With average maturities of a month or so money funds offer fixed share prices and floating returns that track market interest rates with a slight lag


( SINV ( S-TPC-1 ( ADVP ( RB Still ) ) ( NP-SBJ ( NP ( NN today ) ( POS 's ) ) ( JJ highest-yielding ) ( NN money ) ( NNS funds ) ) ( VP ( MD may ) ( VP ( VB beat ) ( NP ( NNS CDs ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ next ) ( NN year ) ) ) ( SBAR-ADV ( ADVP ( RB even ) ) ( IN if ) ( S ( NP-SBJ ( NNS rates ) ) ( VP ( VBP fall ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Guy ) ( NNP Witman ) ) ( NP ( NP ( DT an ) ( NN editor ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Bond ) ( NNP Market ) ( NNP Advisor ) ( NN newsletter ) ) ( PP-LOC ( IN in ) ( NP ( NNP Atlanta ) ) ) ) ) ) ) )

Still today 's highest-yielding money funds may beat CDs over the next year even if rates fall says Guy Witman an editor of the Bond Market Advisor newsletter in Atlanta


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( SBAR-PRD ( RB because ) ( S ( NP-SBJ ( JJ top-yielding ) ( NNS funds ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBP offer ) ( NP ( NP ( NNS yields ) ) ( PP ( NP-ADV ( QP ( RB almost ) ( CD 1 ) ( CD 1\/2 ) ) ( NN percentage ) ( NNS points ) ) ( IN above ) ( NP ( DT the ) ( JJ average ) ( NN CD ) ( NN yield ) ) ) ) ) ) ) ) )

That 's because top-yielding funds currently offer yields almost 1 1\/2 percentage points above the average CD yield


( S ( NP-SBJ ( NNP Mr. ) ( NNP Witman ) ) ( VP ( VBZ likes ) ( NP ( NP ( DT the ) ( NNP Dreyfus ) ( NNP Worldwide ) ( NNP Dollar ) ( NNP Money ) ( NNP Market ) ( NNP Fund ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( JJ seven-day ) ( JJ compound ) ( NN yield ) ) ( PP ( ADVP ( RB just ) ) ( IN under ) ( NP ( CD 9.5 ) ( NN % ) ) ) ) ) ) ) )

Mr. Witman likes the Dreyfus Worldwide Dollar Money Market Fund with a seven-day compound yield just under 9.5 %


( S ( S-ADV ( NP-PRD ( DT A ) ( JJ new ) ( NN fund ) ) ) ( NP-SBJ-1 ( PRP$ its ) ( NN operating ) ( NNS expenses ) ) ( VP ( VBP are ) ( VP ( VBG being ) ( ADVP-TMP ( RB temporarily ) ) ( VP ( VBN subsidized ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NN sponsor ) ) ) ) ) ) )

A new fund its operating expenses are being temporarily subsidized by the sponsor


( SINV ( S-TPC-1 ( VP ( VB Try ) ( VP ( VBG combining ) ( NP ( NP ( DT a ) ( NN money ) ( NN fund ) ) ( CC and ) ( NP ( DT an ) ( JJ intermediate-term ) ( NN bond ) ( NN fund ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( JJ low-risk ) ( NN bet ) ) ( PP ( IN on ) ( NP ( VBG falling ) ( NNS rates ) ) ) ) ) ) ) ) ( VP ( VBZ suggests ) ) ( NP-SBJ ( NP ( NNP Back ) ( NNP Bay ) ( NNP Advisors ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( JJ mutual ) ( NN fund ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP England ) ( NNP Insurance ) ( NNP Co ) ) ) ) ) )

Try combining a money fund and an intermediate-term bond fund as a low-risk bet on falling rates suggests Back Bay Advisors Inc. a mutual fund unit of New England Insurance Co


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NNS rates ) ) ( ADVP ( RB unexpectedly ) ) ( VP ( VBP rise ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( VBG increasing ) ( NN return ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN money ) ( NN fund ) ) ) ) ( VP ( MD will ) ( VP ( ADVP-MNR ( RB partly ) ) ( VB offset ) ( NP ( NP ( DT the ) ( JJ lower-than-expected ) ( NN return ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN bond ) ( NN fund ) ) ) ) ) ) )

If rates unexpectedly rise the increasing return on the money fund will partly offset the lower-than-expected return from the bond fund


( S ( NP-SBJ-1 ( NNP Kidder ) ( NNP Peabody ) ( CC & ) ( NNP Co. ) ) ( VP ( VBZ is ) ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB struggle ) ( PRT ( RP back ) ) ) ) ) ) ) )

Kidder Peabody & Co. is trying to struggle back


( S ( ADVP-TMP ( NP ( QP ( RB Only ) ( DT a ) ( JJ few ) ) ( NNS months ) ) ( RB ago ) ) ( NP-SBJ-2 ( DT the ) ( JJ 124-year-old ) ( NNS securities ) ( NN firm ) ) ( VP ( VBD seemed ) ( S ( VP ( TO to ) ( VP ( VB be ) ( PP-LOC-PRD ( IN on ) ( NP ( NP ( DT the ) ( NN verge ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN meltdown ) ) ) ) ) ) ) ) ( S-ADV ( VP ( VBN racked ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ internal ) ( NNS squabbles ) ) ( CC and ) ( NP ( NNS defections ) ) ) ) ) ) ) )

Only a few months ago the 124-year-old securities firm seemed to be on the verge of a meltdown racked by internal squabbles and defections


( S ( NP-SBJ-1 ( NP ( PRP$ Its ) ( NN relationship ) ) ( PP ( IN with ) ( NP ( NN parent ) ( NNP General ) ( NNP Electric ) ( NNP Co. ) ) ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBN frayed ) ( PP-TMP ( IN since ) ( NP ( NP ( DT a ) ( JJ big ) ( NNP Kidder ) ( NN insider-trading ) ( NN scandal ) ) ( ADVP-TMP ( NP ( CD two ) ( NNS years ) ) ( RB ago ) ) ) ) ) ) ) )

Its relationship with parent General Electric Co. had been frayed since a big Kidder insider-trading scandal two years ago


( S ( NP-SBJ ( NP ( JJ Chief ) ( NNS executives ) ) ( CC and ) ( NP ( NNS presidents ) ) ) ( VP ( VBD had ) ( VP ( VBN come ) ( CC and ) ( VBN gone ) ) ) )

Chief executives and presidents had come and gone


( S ( ADVP-TMP ( RB Now ) ) ( NP-SBJ ( DT the ) ( NN firm ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( PP-LOC-PRD ( IN at ) ( NP ( DT a ) ( NN turning ) ( NN point ) ) ) ) ) ) ) )

Now the firm says it 's at a turning point


( S ( PP-TMP ( IN By ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN year ) ) ) ) ) ( NP-SBJ-6 ( NP ( JJ 63-year-old ) ( NNP Chairman ) ( NNP Silas ) ( NNP Cathcart ) ) ( PRN ( NP ( NP ( DT the ) ( JJ former ) ( NN chairman ) ) ( PP ( IN of ) ( NP ( NNP Illinois ) ( NNP Tool ) ( NNP Works ) ) ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBD was ) ( VP ( VBN derided ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( JJ tool-and-die ) ( NN man ) ) ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ ( NNP GE ) ) ( VP ( VBD brought ) ( NP-4 ( PRP him ) ) ( PRT ( RP in ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB clean ) ( PRT ( RP up ) ) ( NP ( NNP Kidder ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1987 ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ retires ) ( PP-CLR ( TO to ) ( NP ( PRP$ his ) ( NAC-LOC ( NNP Lake ) ( NNP Forest ) ( NNP Ill. ) ) ( NN home ) ) ) ( ADVP ( RB possibly ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB build ) ( NP ( DT a ) ( NN shopping ) ( NN mall ) ) ( PP-LOC-CLR ( IN on ) ( NP ( NP ( DT some ) ( NN land ) ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ owns ) ) ) ) ) ) ) ) ) ) )

By the end of this year 63-year-old Chairman Silas Cathcart the former chairman of Illinois Tool Works who was derided as a tool-and-die man when GE brought him in to clean up Kidder in 1987 retires to his Lake Forest Ill. home possibly to build a shopping mall on some land he owns


( S ( S-TPC-3 ( NP-SBJ ( PRP I ) ) ( VP ( VBP 've ) ( VP ( VBN done ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ-2 ( PRP I ) ) ( VP ( VBD came ) ( S-CLR ( VP ( TO to ) ( VP ( VB do ) ) ) ) ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Kidder ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

I 've done what I came to do at Kidder he says


( S ( CC And ) ( NP-SBJ ( DT that ) ) ( VP ( VBZ means ) ( SBAR ( S ( NP-SBJ-1 ( NP ( JJ 42-year-old ) ( NNP Michael ) ( NNP Carpenter ) ) ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( JJ chief ) ( NN executive ) ) ) ( PP-TMP ( IN since ) ( NP ( NNP January ) ) ) ) ( VP ( NN will ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( JJ first ) ( NN time ) ) ) ( VP ( VP ( VB take ) ( NP ( JJ complete ) ( NN control ) ) ( PP-CLR ( IN of ) ( NP ( NNP Kidder ) ) ) ) ( CC and ) ( VP ( VB try ) ( S ( VP ( TO to ) ( VP ( VB make ) ( ADJP-CLR ( JJ good ) ) ( PP-CLR ( IN on ) ( NP ( DT some ) ( JJ grandiose ) ( NNS plans ) ) ) ) ) ) ) ) ) ) ) ) )

And that means 42-year-old Michael Carpenter president and chief executive since January will for the first time take complete control of Kidder and try to make good on some grandiose plans


( S ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD will ) ( VP ( VB return ) ( NP ( NNP Kidder ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NN prominence ) ) ( PP ( IN as ) ( NP ( DT a ) ( JJ great ) ( NN investment ) ( NN bank ) ) ) ) ) ) ) ) ) ) )

Mr. Carpenter says he will return Kidder to prominence as a great investment bank


( S ( NP-SBJ ( NNP Wall ) ( NNP Street ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB understandably ) ( JJ skeptical ) ) ) )

Wall Street is understandably skeptical


( S ( PP-TMP ( IN Through ) ( NP ( NP ( DT the ) ( JJ first ) ( CD nine ) ( NNS months ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ( NP-SBJ ( NNP Kidder ) ) ( VP ( VBZ ranks ) ( NP ( DT a ) ( JJ distant ) ( JJ 10th ) ) ( PP-LOC ( IN among ) ( NP ( NP ( NNS underwriters ) ) ( PP ( IN of ) ( NP ( NNP U.S. ) ( NNS stocks ) ( CC and ) ( NNS bonds ) ) ) ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( ADJP ( CD 2.8 ) ( NN % ) ) ( NN market ) ( NN share ) ) ( ADVP ( IN up ) ( ADVP ( RB slightly ) ) ( PP ( IN from ) ( NP ( CD 2.5 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ year-earlier ) ( NN period ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NNPS Securities ) ( NNPS Data ) ( NNP Co ) ) ) ) ) )

Through the first nine months of the year Kidder ranks a distant 10th among underwriters of U.S. stocks and bonds with a 2.8 % market share up slightly from 2.5 % in the year-earlier period according to Securities Data Co


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( PDT quite ) ( DT a ) ( NN fall ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( JJ early ) ( NNS 1980s ) ) ( SBAR ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ-1 ( NNP Kidder ) ) ( ADVP-TMP ( RB still ) ) ( VP ( VBD was ) ( VP ( VBN counted ) ( PP-CLR ( IN as ) ( NP ( DT an ) ( NN investment-banking ) ( NN powerhouse ) ) ) ) ) ) ) ) ) ) ) )

It 's quite a fall from the early 1980s when Kidder still was counted as an investment-banking powerhouse


( S ( NP-SBJ ( NP ( NNP Gary ) ( NNP S. ) ( NNP Goldstein ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Whitney ) ( NNP Group ) ) ( NP ( DT an ) ( JJ executive ) ( NN search ) ( NN firm ) ) ) ) ) ) ( VP ( VBD said ) ( S ( NP-SBJ-1 ( PRP I ) ) ( VP ( MD 'd ) ( VP ( VB like ) ( S ( VP ( TO to ) ( VP ( VB see ) ( S ( NP-SBJ ( NNP Kidder ) ) ( VP ( VB succeed ) ) ) ) ) ) ) ) ) ) )

Gary S. Goldstein president of the Whitney Group an executive search firm said I 'd like to see Kidder succeed


( S ( CC But ) ( NP-SBJ-2 ( PRP they ) ) ( VP ( VBP have ) ( S ( VP ( TO to ) ( VP ( VB attract ) ( NP ( NP ( JJ good ) ( JJ senior ) ( NNS bankers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( MD can ) ( VP ( VB bring ) ( PRT ( RP in ) ) ( NP ( DT the ) ( NN business ) ) ( PP-TMP ( IN from ) ( NP ( NN day ) ( CD one ) ) ) ) ) ) ) ) ) ) ) ) )

But they have to attract good senior bankers who can bring in the business from day one


( S ( PP-TMP ( IN In ) ( NP ( CD 1988 ) ) ) ( NP-SBJ ( NNP Kidder ) ) ( VP ( VBD eked ) ( PRT ( RP out ) ) ( NP ( DT a ) ( ADJP ( QP ( CD 46 ) ( CD million ) ) ) ( NN profit ) ) ( PP-PRP ( ADVP ( RB mainly ) ) ( IN because ) ( IN of ) ( NP ( JJ severe ) ( NN cost ) ( NN cutting ) ) ) ) )

In 1988 Kidder eked out a 46 million profit mainly because of severe cost cutting


( S ( NP-SBJ ( PRP$ Its ) ( JJ 1,400-member ) ( NN brokerage ) ( NN operation ) ) ( VP ( VBD reported ) ( NP ( DT an ) ( JJ estimated ) ( ADJP ( QP ( CD 5 ) ( CD million ) ) ) ( NN loss ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ( SBAR-ADV ( IN although ) ( S ( NP-SBJ ( NNP Kidder ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( TO to ) ( VP ( VB turn ) ( NP ( DT a ) ( NN profit ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ) ) ) ) )

Its 1,400-member brokerage operation reported an estimated 5 million loss last year although Kidder expects it to turn a profit this year


( S ( S ( PP ( IN In ) ( NP ( NN fact ) ) ) ( NP-SBJ ( NNP Kidder ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( JJ minor ) ( NN player ) ) ( PP-LOC ( IN in ) ( NP ( NP ( ADVP ( RB just ) ( RB about ) ) ( DT every ) ( NN business ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ does ) ) ) ) ( PP ( IN except ) ( NP ( JJ computer-driven ) ( NN program ) ( NN trading ) ) ) ) ) ) ) ( S ( PP-LOC ( IN in ) ( NP ( DT that ) ( JJ controversial ) ( NN business ) ) ) ( NP-SBJ ( RB only ) ( NNP Morgan ) ( NNP Stanley ) ( CC & ) ( NNP Co. ) ) ( VP ( VBZ rivals ) ( NP ( NNP Kidder ) ) ) ) )

In fact Kidder is a minor player in just about every business it does except computer-driven program trading in that controversial business only Morgan Stanley & Co. rivals Kidder


( S ( CC But ) ( NP-SBJ ( RB even ) ( DT that ) ( NN niche ) ) ( VP ( VBZ is ) ( PP-PRD ( IN under ) ( NP ( NN attack ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( JJ several ) ( NNP Wall ) ( NNP Street ) ( NNS firms ) ) ( VP ( VBD pulled ) ( ADVP-CLR ( RP back ) ( PP ( IN from ) ( NP ( NN program ) ( NN trading ) ) ) ) ( NP-TMP ( JJ last ) ( NN week ) ) ( PP-LOC ( IN under ) ( NP ( NP ( NN pressure ) ) ( PP ( IN from ) ( NP ( JJ big ) ( NNS investors ) ) ) ) ) ) ) ) ) )

But even that niche is under attack as several Wall Street firms pulled back from program trading last week under pressure from big investors


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Carpenter ) ) ( NP ( NP ( DT a ) ( JJ former ) ( NN consulting-firm ) ( NN executive ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( NN love ) ) ( PP ( IN for ) ( NP ( NN task ) ( NNS forces ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ has ) ( VP ( VBN done ) ( NP ( NP ( DT a ) ( JJ complete ) ( NN rethink ) ) ( PP ( IN of ) ( NP ( NNP Kidder ) ) ) ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS months ) ) ) ) ) ) ) ) )

Mr. Carpenter a former consulting-firm executive who has a love for task forces says he has done a complete rethink of Kidder in recent months


( S ( NP-SBJ ( EX There ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT a ) ( JJ dizzying ) ( NN parade ) ) ( PP ( IN of ) ( NP ( NP ( NNS studies ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( NNS operations ) ) ) ) ) ) ) ) )

There have been a dizzying parade of studies of the firm 's operations


( S ( NP-SBJ-1 ( QP ( JJR More ) ( IN than ) ( CD 20 ) ) ( JJ new ) ( NX ( NX ( VBG managing ) ( NNS directors ) ) ( CC and ) ( NX ( JJ senior ) ( NN vice ) ( NNS presidents ) ) ) ) ( VBP have ) ( VP ( VBN been ) ( VP ( VBN hired ) ( PP-TMP ( IN since ) ( NP ( NNP January ) ) ) ) ) )

More than 20 new managing directors and senior vice presidents have been hired since January


( S ( S ( NP-SBJ-1 ( NP ( DT The ) ( NN firm ) ( POS 's ) ) ( NN brokerage ) ( NN force ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN trimmed ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( PRP$ its ) ( JJ mergers-and-acquisitions ) ( NN staff ) ) ( VP ( VBN increased ) ( PP-CLR ( TO to ) ( NP ( DT a ) ( JJ record ) ( CD 55 ) ( NNS people ) ) ) ) ) )

The firm 's brokerage force has been trimmed and its mergers-and-acquisitions staff increased to a record 55 people


( S ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ( VP ( VBZ says ) ( SBAR ( IN that ) ( S ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ assumes ) ( NP ( JJ full ) ( NN control ) ) ) ) ) ( NP-SBJ ( NNP Kidder ) ) ( VP ( MD will ) ( ADVP-TMP ( RB finally ) ) ( VP ( VB tap ) ( NP ( NP ( DT the ) ( NNS resources ) ) ( PP ( IN of ) ( NP ( NNP GE ) ) ) ) ) ) ) ) ) )

Mr. Carpenter says that when he assumes full control Kidder will finally tap the resources of GE


( S ( NP-SBJ ( NP ( CD One ) ) ( PP ( IN of ) ( NP ( NP ( NNP GE ) ( POS 's ) ) ( NNS goals ) ) ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD bought ) ( NP ( NP ( CD 80 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP Kidder ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1986 ) ) ) ) ) ) ( VP ( VBD was ) ( S-PRD ( VP ( TO to ) ( VP ( VB take ) ( NP-CLR ( NN advantage ) ) ( PP-CLR ( IN of ) ( NP ( NP ( NNS syngeries ) ) ( PP ( IN between ) ( NP ( NP ( NNP Kidder ) ) ( CC and ) ( NP ( NP ( NNP General ) ( NNP Electric ) ( NNP Capital ) ( NNP Corp. ) ) ( NP ( NP ( NNP GE ) ( POS 's ) ) ( JJ corporate-finance ) ( NN unit ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ has ) ( NP ( NP ( QP ( CD 42 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NNS assets ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

One of GE 's goals when it bought 80 % of Kidder in 1986 was to take advantage of syngeries between Kidder and General Electric Capital Corp. GE 's corporate-finance unit which has 42 billion in assets


( S ( NP-SBJ ( NP ( DT The ) ( ADJP ( JJ leveraged ) ( JJ buy-out ) ) ( NN group ) ) ( PP ( IN of ) ( NP ( NNP GE ) ( NNP Capital ) ) ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ reports ) ( PP-CLR ( TO to ) ( NP ( NNP Mr. ) ( NNP Carpenter ) ) ) ) )

The leveraged buy-out group of GE Capital now reports to Mr. Carpenter


( S ( ADVP-TMP ( RB So ) ( RB far ) ) ( PP ( RB instead ) ( IN of ) ( S-NOM ( VP ( VBG teaming ) ( PRT ( RP up ) ) ) ) ) ( NP-SBJ-1 ( NP ( NNP GE ) ( NNP Capital ) ( NNS staffers ) ) ( CC and ) ( NP ( NNP Kidder ) ( NN investment ) ( NNS bankers ) ) ) ( VP ( VBP have ) ( VP ( VBN bickered ) ) ) )

So far instead of teaming up GE Capital staffers and Kidder investment bankers have bickered


( S-2 ( RB Yet ) ( PRN ( SINV ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ) ) ( NP-SBJ-1 ( PRP We ) ) ( VP ( VB 've ) ( ADVP ( RB really ) ) ( VP ( VBN started ) ( S ( VP ( TO to ) ( VP ( VB exploit ) ( NP ( NP ( DT the ) ( NN synergy ) ) ( PP ( IN between ) ( NP ( NP ( NNP GE ) ( NNP Capital ) ) ( CC and ) ( NP ( NNP Kidder ) ( NNP Peabody ) ) ) ) ) ) ) ) ) ) )

Yet says Mr. Carpenter We 've really started to exploit the synergy between GE Capital and Kidder Peabody


( S-1 ( NP-SBJ ( DT The ) ( NNS units ) ) ( VP ( VBP have ) ( VP ( VBN worked ) ( PP-CLR ( IN on ) ( NP ( CD 37 ) ( NN investment ) ( NN banking ) ( NNS deals ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) ) ) ( SBAR-ADV ( IN though ) ( S ( NP-SBJ ( NP ( RB not ) ( DT all ) ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ) ( VP ( VBP have ) ( VP ( VBN panned ) ( PRT ( RP out ) ) ) ) ) ) ) ) )

The units have worked on 37 investment banking deals this year he says though not all of them have panned out


( S ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP 've ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( JJ good ) ( NN relationship ) ) ( PP ( IN with ) ( NP ( NNP GE ) ) ) ) ( SBAR-ADV ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJ first ) ( NN time ) ) ( SBAR ( S ( NP-SBJ ( PRP you ) ) ( VP ( MD could ) ( VP ( VB say ) ( NP ( DT that ) ) ) ) ) ) ) ) ) ) ) ) ) ( S ( INTJ ( UH uh ) ) ( VP ( VB let ) ( S ( NP-SBJ ( PRP me ) ) ( VP ( VB withdraw ) ( NP ( DT that ) ) ) ) ) ) )

We 've had a good relationship with GE which is the first time you could say that uh let me withdraw that


( S ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( VP ( VBN been ) ( NP-PRD ( DT a ) ( ADJP ( RB steadily ) ( VBG improving ) ) ( NN relationship ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) )

It 's been a steadily improving relationship says Mr. Carpenter


( S ( ADVP ( RB Still ) ) ( PP ( IN without ) ( NP ( NP ( JJ many ) ( JJ actual ) ( NNS deals ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB show ) ( PRT ( RP off ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( NNP Kidder ) ) ( VP ( VBZ is ) ( VP ( VBN left ) ( S ( VP ( TO to ) ( VP ( VB stress ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( ADVP-TMP ( RB finally ) ) ( VP ( VBZ has ) ( S ( NP-SBJ ( DT a ) ( NN team ) ) ( PP-LOC-PRD ( IN in ) ( NP ( NN place ) ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN everyone ) ) ( VP ( VBZ works ) ( ADVP-MNR ( RBR harder ) ) ) ) ) ) ) ) ) ) ) )

Still without many actual deals to show off Kidder is left to stress that it finally has a team in place and that everyone works harder


( S ( S ( ADVP-TMP ( NP ( DT A ) ( NN month ) ) ( RB ago ) ) ( NP-SBJ ( DT the ) ( NN firm ) ) ( VP ( VBD started ) ( VP ( VBG serving ) ( NP ( NN dinner ) ) ( PP-TMP ( IN at ) ( NP ( RB about ) ( CD 7:30 ) ) ) ( NP-TMP ( DT each ) ( NN night ) ) ) ) ) ( S ( NP-SBJ ( NP ( QP ( RB about ) ( CD 50 ) ( TO to ) ( CD 60 ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( CD 350 ) ( NNS people ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN investment ) ( NN banking ) ( NN operation ) ) ) ) ( VP ( VBP have ) ( VP ( ADVP-MNR ( RB consistently ) ) ( VBN been ) ( ADVP-LOC-PRD ( RB around ) ) ( ADVP-TMP ( DT that ) ( RB late ) ) ) ) ) )

A month ago the firm started serving dinner at about 7:30 each night about 50 to 60 of the 350 people in the investment banking operation have consistently been around that late


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP are ) ( VP ( VBG working ) ( ADVP-MNR ( ADVP ( RB significantly ) ( RBR longer ) ( CC and ) ( RBR harder ) ) ( SBAR ( IN than ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( DT the ) ( NN case ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN past ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Scott ) ( NNP C. ) ( NNP Newquist ) ) ( NP ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( NN head ) ) ( PP ( IN of ) ( NP ( NN investment ) ( NN banking ) ) ) ( PP-TMP ( IN since ) ( NP ( NNP June ) ) ) ) ) )

We are working significantly longer and harder than has been the case in the past says Scott C. Newquist Kidder 's head of investment banking since June


( S ( ADVP-LOC ( RB Everywhere ) ) ( NP-SBJ ( NNP Kidder ) ) ( VP ( VBZ stresses ) ( NP ( DT the ) ( S-TTL ( ADVP-TMP ( RB always ) ) ( VP ( VBG working ) ) ) ( NN theme ) ) ) )

Everywhere Kidder stresses the always working theme


( S ( NP-SBJ ( NP ( DT A ) ( JJ new ) ( JJ in-house ) ( NN magazine ) ) ( NP ( NNP Kidder ) ( NNP World ) ) ( PRN ( SBAR ( WHNP-1 ( WDT which ) ) ( SINV ( S-TPC-2 ( VP ( MD will ) ( VP ( VB focus ) ( PP-CLR ( IN on ) ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( NN synergy ) ( NN strategy ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ) ) ) ) ( VP ( VBZ confides ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN on ) ( NP ( NNS weekends ) ) ) ( NP-SBJ-3 ( NNP Mr. ) ( NNP Newquist ) ) ( ADVP-TMP ( RB often ) ) ( VP ( VBZ gets ) ( NP ( JJ value-added ) ( NNS ideas ) ) ( SBAR-TMP ( IN while ) ( S ( VP ( VBG flying ) ( NP ( PRP$ his ) ( JJ single-engine ) ( NNP Cessna ) ( NNP Centurion ) ) ( PP-TMP ( IN on ) ( NP ( NP ( DT the ) ( NN way ) ) ( PP ( TO to ) ( NP ( NNP Nantucket ) ) ) ) ) ) ) ) ) ) ) ) )

A new in-house magazine Kidder World which will focus on the firm 's synergy strategy says Mr. Carpenter confides that on weekends Mr. Newquist often gets value-added ideas while flying his single-engine Cessna Centurion on the way to Nantucket


( S ( NP-SBJ ( NP ( NP ( NP ( DT The ) ( NN firm ) ( POS 's ) ) ( JJ new ) ( NN head ) ) ( PP ( IN of ) ( NP ( NNS mergers ) ( CC and ) ( NNS acquisitions ) ) ) ( PP-LOC ( IN under ) ( NP ( NNP Mr. ) ( NNP Newquist ) ) ) ) ( NP ( NNP B.J. ) ( NNP Megargel ) ) ) ( VP ( VBZ talks ) ( PP-CLR ( IN of ) ( NP ( DT the ) ( NN opportunity ) ( S ( VP ( TO to ) ( VP ( VB rebuild ) ( NP ( DT a ) ( NN franchise ) ) ( PP-LOC ( IN at ) ( NP ( NNP Kidder ) ) ) ) ) ) ) ) ) )

The firm 's new head of mergers and acquisitions under Mr. Newquist B.J. Megargel talks of the opportunity to rebuild a franchise at Kidder


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NNP Kidder ) ( NN name ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( RB only ) ( CD six ) ( CC or ) ( CD seven ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( NP-SBJ-4 ( DT every ) ( NN CEO ) ) ( VP ( VBZ recognizes ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( JJ viable ) ( NN alternative ) ) ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( VP ( VBG considering ) ( NP ( DT a ) ( NN merger ) ( NN deal ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

The Kidder name is one of only six or seven that every CEO recognizes as a viable alternative when considering a merger deal he says


( S ( ADVP-TMP ( RB Now ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NNP Kidder ) ( NNP World ) ( NN story ) ) ( PP ( IN about ) ( NP ( NNP Mr. ) ( NNP Megargel ) ) ) ) ) ) ( NP-SBJ ( NP ( DT all ) ) ( SBAR ( S ( NP-SBJ-2 ( DT the ) ( NN firm ) ) ( VP ( VBZ has ) ( S ( VP ( TO to ) ( VP ( VB do ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VB position ) ( NP ( PRP ourselves ) ) ( ADVP-MNR ( RBR more ) ( PP ( IN in ) ( NP ( DT the ) ( NN deal ) ( NN flow ) ) ) ) ) ) )

Now according to a Kidder World story about Mr. Megargel all the firm has to do is position ourselves more in the deal flow


( SBARQ ( SBAR-ADV ( IN With ) ( S ( NP-SBJ ( NN investment ) ( NN banking ) ) ( PP-PRD ( IN as ) ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( NN lead ) ( NN business ) ) ) ) ) ( WHADVP-1 ( WRB where ) ) ( SQ ( VB do ) ( NP-SBJ ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( JJ 42-branch ) ( NN brokerage ) ( NN network ) ) ( CC and ) ( NP ( PRP$ its ) ( CD 1,400 ) ( NNS brokers ) ) ) ( VP ( VBN fit ) ( PRT ( RP in ) ) ) ) )

With investment banking as Kidder 's lead business where do Kidder 's 42-branch brokerage network and its 1,400 brokers fit in


( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Carpenter ) ) ( NP-TMP ( DT this ) ( NN month ) ) ( VP ( VBD sold ) ( PRT ( RP off ) ) ( NP ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( CD eight ) ( NN brokerage ) ( NNS offices ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Florida ) ) ( CC and ) ( NP ( NNP Puerto ) ( NNP Rico ) ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NNP Merrill ) ( NNP Lynch ) ( CC & ) ( NNP Co. ) ) ) ( S-ADV ( VP ( VBG refueling ) ( NP ( NN speculation ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Kidder ) ) ( VP ( VBZ is ) ( VP ( VBG getting ) ( PP-CLR ( IN out ) ( PP ( IN of ) ( NP ( DT the ) ( NN brokerage ) ( NN business ) ) ) ) ( ADVP-MNR ( RB entirely ) ) ) ) ) ) ) ) ) ) )

Mr. Carpenter this month sold off Kidder 's eight brokerage offices in Florida and Puerto Rico to Merrill Lynch & Co. refueling speculation that Kidder is getting out of the brokerage business entirely


( S ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ( VP ( VBZ denies ) ( NP ( DT the ) ( NN speculation ) ) ) )

Mr. Carpenter denies the speculation


( S ( S-PRP ( VP ( TO To ) ( VP ( VB answer ) ( NP ( DT the ) ( NN brokerage ) ( NN question ) ) ) ) ) ( NP-SBJ-1 ( NNP Kidder ) ) ( PP ( IN in ) ( NP ( JJ typical ) ( NN fashion ) ) ) ( VP ( VBD completed ) ( NP ( DT a ) ( NN task-force ) ( NN study ) ) ) )

To answer the brokerage question Kidder in typical fashion completed a task-force study


( NP ( NP ( DT The ) ( NN result ) ) ( S ( NP-SBJ ( NNP Kidder ) ) ( VP ( MD will ) ( VP ( VB focus ) ( PP-CLR ( IN on ) ( NP ( NP ( NP ( JJ rich ) ( JJ individual ) ( NNS investors ) ) ( CC and ) ( NP ( JJ small ) ( NNS companies ) ) ) ( ADJP ( ADJP ( RB much ) ( RBR closer ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NNS clientele ) ) ( PP ( IN of ) ( NP ( NNP Goldman ) ( NNP Sachs ) ( CC & ) ( NNP Co. ) ) ) ) ) ( PP ( IN than ) ( NP ( NP ( DT a ) ( JJ serve-the-world ) ( NN firm ) ) ( PP ( IN like ) ( NP ( NP ( NNP Merrill ) ( NNP Lynch ) ) ( CC or ) ( NP ( NNP Shearson ) ( NNP Lehman ) ( NNP Hutton ) ( NNP Inc ) ) ) ) ) ) ) ) ) ) ) ) )

The result Kidder will focus on rich individual investors and small companies much closer to the clientele of Goldman Sachs & Co. than a serve-the-world firm like Merrill Lynch or Shearson Lehman Hutton Inc


( S ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ( VP ( NNS notes ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( DT these ) ( NNS types ) ) ( PP ( IN of ) ( NP ( NNS investors ) ) ) ) ( ADVP ( RB also ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ sophisticated ) ( RB enough ) ( S ( RB not ) ( VP ( TO to ) ( VP ( VB complain ) ( PP-CLR ( IN about ) ( NP ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( JJ aggressive ) ( NN use ) ) ( PP ( IN of ) ( NP ( NN program ) ( NN trading ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Carpenter notes that these types of investors also are sophisticated enough not to complain about Kidder 's aggressive use of program trading


( S ( PP ( IN As ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ upscale ) ( NN push ) ) ) ) ) ( NP-SBJ-1 ( NNP Kidder ) ) ( VP ( VBZ is ) ( VP ( VBG putting ) ( NP ( NNS brokers ) ) ( PP-CLR ( IN through ) ( NP ( DT a ) ( JJ 20-week ) ( NN training ) ( NN course ) ) ) ( S-ADV ( VP ( VBG turning ) ( NP ( PRP them ) ) ( PP-CLR ( IN into ) ( NP ( NP ( NN investment ) ( NNS counselors ) ) ( PP ( IN with ) ( NP ( NP ( NN knowledge ) ) ( PP ( IN of ) ( NP ( JJ corporate ) ( NN finance ) ) ) ) ) ) ) ) ) ) ) )

As part of the upscale push Kidder is putting brokers through a 20-week training course turning them into investment counselors with knowledge of corporate finance


( SINV ( S-TPC-1 ( NP-SBJ ( PRP They ) ) ( VP ( MD will ) ( VP ( VB get ) ( NP ( NP ( JJ new ) ( CC and ) ( JJ improved ) ( NNS tools ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB sell ) ( PP-DTV ( ADVP ( RB particularly ) ) ( TO to ) ( NP ( DT the ) ( JJ affluent ) ( NN investor ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NN brokerage ) ( NN chief ) ( NNP Charles ) ( NNP V. ) ( NNP Sheehan ) ) )

They will get new and improved tools to sell particularly to the affluent investor says brokerage chief Charles V. Sheehan


( S ( ADVP ( RB Theoretically ) ) ( NP-SBJ-1 ( DT the ) ( NNS brokers ) ) ( VP ( MD will ) ( ADVP-TMP ( RB then ) ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB funnel ) ( NP ( NP ( NNS leads ) ) ( PP ( IN on ) ( NP ( JJ corporate ) ( NN finance ) ( NNS opportunities ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( NN investment ) ( NNS bankers ) ) ) ) ) ) ) ( S-ADV ( ADVP ( RB possibly ) ) ( VP ( VBG easing ) ( NP ( NP ( DT the ) ( JJ longstanding ) ( NN tension ) ) ( PP ( IN between ) ( NP ( DT the ) ( CD two ) ( NNS camps ) ) ) ) ) ) ) ) )

Theoretically the brokers will then be able to funnel leads on corporate finance opportunities to Kidder 's investment bankers possibly easing the longstanding tension between the two camps


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NNS skeptics ) ) ( VP ( VBP caution ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT this ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NP ( NN cross-pollination ) ) ( PP ( IN between ) ( NP ( NP ( NNS brokers ) ) ( CC and ) ( NP ( NN investment ) ( NNS bankers ) ) ) ) ) ) ) ( VP ( VP ( VBZ looks ) ( ADJP-PRD ( JJ great ) ) ( PP-LOC ( IN on ) ( NP ( NN paper ) ) ) ) ( CC but ) ( VP ( VBZ does ) ( RB n't ) ( ADVP-TMP ( RB always ) ) ( VP ( VB happen ) ) ) ) ) ) ) )

However skeptics caution that this kind of cross-pollination between brokers and investment bankers looks great on paper but does n't always happen


( S ( NP-SBJ ( NNP Kidder ) ( NNS competitors ) ) ( VP ( VBP are ) ( RB n't ) ( ADJP-PRD ( RB outwardly ) ( JJ hostile ) ( PP ( TO to ) ( NP ( DT the ) ( NN firm ) ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( JJ many ) ) ( VP ( VBP are ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( JJ tough ) ( NN competitor ) ) ( PP ( IN like ) ( NP ( NP ( NNP Drexel ) ( NNP Burnham ) ( NNP Lambert ) ( NNP Inc. ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ does ) ( RB n't ) ( VP ( VB have ) ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( JJ long ) ( NN history ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Kidder competitors are n't outwardly hostile to the firm as many are to a tough competitor like Drexel Burnham Lambert Inc. that does n't have Kidder 's long history


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NNS competitors ) ) ( VP ( VBP say ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( NN hiring ) ( NN binge ) ) ( VP ( VBG involving ) ( NP ( NP ( JJ executive-level ) ( NNS staffers ) ) ( NP ( NP ( DT some ) ) ( PP ( IN with ) ( NP ( JJ multiple-year ) ( NN contract ) ( NNS guarantees ) ) ) ) ) ) ) ( VP ( MD could ) ( VP ( VB backfire ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBP are ) ( NP-PRD ( NNS results ) ) ) ) ) ) ) ) ) ) )

However competitors say that Kidder 's hiring binge involving executive-level staffers some with multiple-year contract guarantees could backfire unless there are results


( S ( NP-SBJ ( DT The ) ( VBG departing ) ( NNP Mr. ) ( NNP Cathcart ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ has ) ( NP ( NP ( DT no ) ( NNS worries ) ) ( PP ( IN about ) ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( NN future ) ) ) ) ) ) ) ) )

The departing Mr. Cathcart says he has no worries about Kidder 's future


( S ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Cathcart ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( MD will ) ( VP ( VB return ) ( PP-DIR ( TO to ) ( NP ( NP ( DT the ) ( NNP Quaker ) ( NNP Oats ) ( NNP Co. ) ( NN board ) ) ( PP ( IN of ) ( NP ( NNS directors ) ) ) ) ) ) ) ) ) ) ( PP ( IN in ) ( NP ( NP ( NN addition ) ) ( PP ( TO to ) ( NP ( PRP$ his ) ( JJ personal ) ( NNS ventures ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN credited ) ( PP-CLR ( IN with ) ( S-NOM ( VP ( VBG bringing ) ( NP ( DT some ) ( JJ basic ) ( NN budgeting ) ( CC and ) ( NN planning ) ( NN discipline ) ) ( PP-CLR ( TO to ) ( NP ( ADJP ( RB traditionally ) ( JJ free-wheeling ) ) ( NNP Kidder ) ) ) ) ) ) ) ) )

Mr. Cathcart who will return to the Quaker Oats Co. board of directors in addition to his personal ventures is credited with bringing some basic budgeting and planning discipline to traditionally free-wheeling Kidder


( S ( NP-SBJ ( PRP He ) ) ( ADVP ( RB also ) ) ( VP ( VBD improved ) ( NP ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( NN compliance ) ( NNS procedures ) ) ( PP ( IN for ) ( NP ( VBG trading ) ) ) ) ) )

He also improved the firm 's compliance procedures for trading


( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Cathcart ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ has ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NN fun ) ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Kidder ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG adding ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN crack ) ) ( PP ( IN about ) ( S-NOM ( NP-SBJ ( PRP$ his ) ) ( VP ( VBG being ) ( NP-PRD ( DT a ) ( JJ tool-and-die ) ( NN man ) ) ) ) ) ) ( ADVP-TMP ( RB never ) ) ( VP ( VBD bothered ) ( NP ( PRP him ) ) ) ) ) ) ) ) )

Mr. Cathcart says he has had a lot of fun at Kidder adding the crack about his being a tool-and-die man never bothered him


( S ( S-TPC-2 ( NP-SBJ ( PRP It ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT an ) ( ADJP ( RB absolutely ) ( JJ marvelous ) ) ( NN line ) ) ( CC and ) ( NP ( NP ( CD one ) ) ( SBAR ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBD used ) ( NP-TMP ( JJ many ) ( NNS times ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

It was an absolutely marvelous line and one I used many times he says


( S ( S-ADV ( VP ( VBG Smiling ) ( ADVP-MNR ( RB broadly ) ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ talks ) ( PP-CLR ( IN about ) ( NP ( NNP Mr. ) ( NNP Carpenter ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( NNP Mr. ) ( NNP Cathcart ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ-4 ( DT the ) ( JJ new ) ( NNP Kidder ) ( NN chief ) ) ( VP ( VBZ is ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN recognized ) ( ADVP-TMP ( RB shortly ) ) ( PP-CLR ( IN as ) ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ real ) ( NNS leaders ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN investment-banking ) ( NN business ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Smiling broadly when he talks about Mr. Carpenter Mr. Cathcart says the new Kidder chief is going to be recognized shortly as one of the real leaders in the investment-banking business


( S-1 ( PP-TMP ( IN In ) ( NP ( JJ coming ) ( NNS years ) ) ) ( PRN ( S ( NP-SBJ ( NNP Mr. ) ( NNP Cathcart ) ) ( VP ( VBZ says ) ) ) ) ( NP-SBJ-2 ( NNP Kidder ) ) ( VP ( VBZ is ) ( VP ( VBG gon ) ( S ( VP ( TO na ) ( VP ( NN hum ) ) ) ) ) ) )

In coming years Mr. Cathcart says Kidder is gon na hum


( S ( CC Or ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ-2 ( NNP Mr. ) ( NNP Carpenter ) ) ( S-ADV ( VP ( ADVP-TMP ( RB again ) ) ( VBG drawing ) ( PP-CLR ( IN on ) ( NP ( PRP$ his ) ( NN consulting-firm ) ( NN background ) ) ) ) ) ( VP ( VBZ puts ) ( NP ( PRP it ) ) ) ) ) ( NP-SBJ-1 ( PRP We ) ) ( VP ( VBP 're ) ( ADJP-PRD ( JJ ready ) ( S ( VP ( TO to ) ( VP ( VB implement ) ) ) ) ) ( PP-TMP ( IN at ) ( NP ( DT this ) ( NN point ) ) ) ) )

Or as Mr. Carpenter again drawing on his consulting-firm background puts it We 're ready to implement at this point


( S ( NP-SBJ-1 ( NP ( NNP Spencer ) ( NNP J. ) ( NNP Volk ) ) ( NP ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( NN chief ) ( NN operating ) ( NN officer ) ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN consumer ) ( CC and ) ( JJ industrial ) ( NNS products ) ( NN company ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN elected ) ( S ( NP-PRD ( DT a ) ( NN director ) ) ) ) ) )

Spencer J. Volk president and chief operating officer of this consumer and industrial products company was elected a director


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Volk ) ) ( ADJP ( NP-ADV ( CD 55 ) ( NNS years ) ) ( JJ old ) ) ) ( VP ( VBZ succeeds ) ( NP ( NP ( NNP Duncan ) ( NNP Dwight ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD retired ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) ) ) ) ) )

Mr. Volk 55 years old succeeds Duncan Dwight who retired in September


( S ( NP-SBJ ( JJ Federal ) ( NNS investigators ) ) ( VP ( VBP have ) ( VP ( VBN identified ) ( NP ( NP ( NP ( DT the ) ( NN problem ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( JJ last ) ( NNP July ) ( POS 's ) ) ( NN crash ) ) ( PP ( IN of ) ( NP ( DT a ) ( NNP United ) ( NNP Airlines ) ( NN flight ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Iowa ) ) ) ) ) ) ( NP ( NP ( DT a ) ( JJ structural ) ( NN flaw ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD developed ) ( PP-TMP ( IN during ) ( NP ( NP ( DT the ) ( NN making ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN titanium ) ( NN engine ) ( NN disk ) ) ) ) ) ) ) ) ) ) ) ) )

Federal investigators have identified the problem in last July 's crash of a United Airlines flight in Iowa a structural flaw that developed during the making of a titanium engine disk


( S ( PP-TMP ( IN For ) ( NP ( JJ several ) ( NNS months ) ) ) ( NP-SBJ ( NP ( NNS officials ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NNP Federal ) ( NNP Aviation ) ( NNP Administration ) ) ( CC and ) ( NP ( DT the ) ( NNP National ) ( NNP Transportation ) ( NNP Safety ) ( NNP Board ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN suspected ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT a ) ( JJ metallurgical ) ( NN flaw ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN disk ) ) ) ) ( VP ( VBD led ) ( PP-CLR ( TO to ) ( NP ( NP ( DT a ) ( NN crack ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( ADVP-TMP ( RB ultimately ) ) ( VP ( VBD caused ) ( S ( NP-SBJ ( DT the ) ( NN tail ) ( NN engine ) ) ( VP ( TO to ) ( VP ( VB break ) ( ADVP-CLR ( RB apart ) ) ( PP-TMP ( IN in ) ( NP ( NN flight ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

For several months officials at the Federal Aviation Administration and the National Transportation Safety Board have suspected that a metallurgical flaw in the disk led to a crack that ultimately caused the tail engine to break apart in flight


( S ( NP-SBJ-1 ( DT The ) ( NN explosion ) ) ( VP ( VP ( VBD sent ) ( S ( NP-SBJ ( NP ( NNS shards ) ) ( PP ( IN of ) ( NP ( NN metal ) ) ) ) ( VP ( VBG flying ) ) ) ( S-ADV ( VP ( VBG severing ) ( NP ( NP ( DT the ) ( NNP DC-10 ) ( VBZ 's ) ) ( UCP ( JJ hydraulic ) ( CC or ) ( NN control ) ) ( NNS systems ) ) ) ) ) ( CC and ) ( VP ( VBD led ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN crash ) ) ( SBAR ( WHNP-11 ( WDT that ) ) ( S ( VP ( VBD killed ) ( NP ( CD 112 ) ( NNS people ) ) ) ) ) ) ) ) ) )

The explosion sent shards of metal flying severing the DC-10 's hydraulic or control systems and led to the crash that killed 112 people


( S ( CC But ) ( NP-SBJ ( NNS investigators ) ) ( VP ( MD could ) ( VP ( VB confirm ) ( NP ( PRP$ their ) ( NN theory ) ) ( PP-TMP ( ADVP ( RB only ) ) ( IN after ) ( NP ( NP ( DT the ) ( JJ recent ) ( NN retrieval ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ big ) ( NN chunk ) ) ( PP ( IN of ) ( NP ( NP ( NNP Flight ) ( CD 232 ) ( POS 's ) ) ( NN tail ) ( NN engine ) ) ) ) ) ( PP ( IN from ) ( NP ( NP ( DT a ) ( NN cornfield ) ) ( PP-LOC ( IN near ) ( NP ( NP ( DT the ) ( NNP Sioux ) ( NNP City ) ( NNP Airport ) ) ( PP-LOC ( IN in ) ( NP ( NNP Iowa ) ) ) ) ) ) ) ) ) ) ) )

But investigators could confirm their theory only after the recent retrieval of a big chunk of Flight 232 's tail engine from a cornfield near the Sioux City Airport in Iowa


( S ( NP-SBJ ( DT The ) ( NN safety ) ( NN board ) ) ( VP ( MD will ) ( VP ( VB begin ) ( NP ( NP ( CD four ) ( NNS days ) ) ( PP ( IN of ) ( NP ( NP ( NNS hearings ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN accident ) ) ) ) ) ) ( NP-TMP ( NN tomorrow ) ) ( PP-LOC ( IN in ) ( NP ( NNP Sioux ) ( NNP City ) ) ) ) ) )

The safety board will begin four days of hearings on the accident tomorrow in Sioux City


( SINV ( PP-LOC-PRD-TPC-2 ( IN Among ) ( NP ( NP ( DT the ) ( NNS issues ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN board ) ) ( VP ( MD will ) ( VP ( VB examine ) ) ) ) ) ) ) ( VP ( VBZ is ) ) ( SBAR-SBJ ( IN whether ) ( S ( NP-SBJ-3 ( NP ( NNP United ) ( NNP Airlines ) ) ( NP ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP UAL ) ( NNP Corp. ) ) ) ) ) ( VP ( MD should ) ( VP ( VB have ) ( VP ( VBN been ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB detect ) ( NP ( DT the ) ( NNS cracks ) ) ( PP-MNR ( IN through ) ( NP ( NN maintenance ) ( NNS checks ) ) ) ) ) ) ) ) ) ) ) ) )

Among the issues the board will examine is whether United Airlines a unit of UAL Corp. should have been able to detect the cracks through maintenance checks


( S ( NP-SBJ ( NP ( DT The ) ( NN engine ) ) ( VP ( VBN involved ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( NNP CF6-6 ) ) ( VP ( VBN made ) ( PP ( IN by ) ( NP-LGS ( NNP General ) ( NNP Electric ) ( NNP Co ) ) ) ) ) ) )

The engine involved was a CF6-6 made by General Electric Co


( S ( NP-SBJ ( NP ( NNP Anthony ) ( NNP Broderick ) ) ( NP ( NP ( NP ( DT the ) ( NNP FAA ) ( POS 's ) ) ( JJ acting ) ( NN executive ) ( NN director ) ) ( PP ( IN for ) ( NP ( NP ( JJ regulatory ) ( NNS standards ) ) ( CC and ) ( NP ( NN compliance ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( JJ recent ) ( NNS tests ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ failed ) ( NN engine ) ( NN disk ) ) ) ) ( VP ( VBP indicate ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT a ) ( NN flaw ) ) ( PRN ( VP ( VBN known ) ( PP-CLR ( IN as ) ( ADJP ( JJ hard ) ( NN alpha ) ) ) ) ) ) ( VP ( VBD occurred ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN titanium ) ) ) ( PP-TMP ( IN during ) ( NP ( PRP$ its ) ( NN production ) ) ) ( ADVP-TMP ( NP ( QP ( RB almost ) ( CD 20 ) ) ( NNS years ) ) ( RB ago ) ) ) ) ) ) ) ) ) )

Anthony Broderick the FAA 's acting executive director for regulatory standards and compliance said that recent tests of the failed engine disk indicate that a flaw known as hard alpha occurred in the titanium during its production almost 20 years ago