( S ( PP ( IN On ) ( NP ( PRP$ its ) ( JJ own ) ) ) ( NP-SBJ ( NP ( NP ( NNP Dentsu ) ( POS 's ) ) ( NN muscle ) ) ( PP-LOC ( IN in ) ( NP ( NNP Japan ) ) ) ) ( VP ( MD may ) ( VP ( VB count ) ( PP-CLR ( IN for ) ( NP ( RB little ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ major ) ( JJ foreign ) ( NNS markets ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( VP ( VBG seeking ) ( NP ( JJ non-Japanese ) ( NNS clients ) ) ) ) ) ) ) )

On its own Dentsu 's muscle in Japan may count for little in major foreign markets when seeking non-Japanese clients


( S ( ADVP ( RB Thus ) ) ( NP-SBJ ( DT an ) ( NN acquisition ) ) ( VP ( MD may ) ( VP ( VB prove ) ( NP-PRD ( DT the ) ( JJ necessary ) ( NN course ) ) ) ) )

Thus an acquisition may prove the necessary course


( S ( CC But ) ( NP-SBJ-1 ( JJ Japanese ) ( NNS agencies ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ cautious ) ( PP ( IN about ) ( S-NOM ( VP ( VBG expanding ) ( ADVP-LOC ( RB abroad ) ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NN client ) ( NNS relationships ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ different ) ) ) ) ) ) )

But Japanese agencies are cautious about expanding abroad because client relationships are different


( SINV ( S-TPC-2 ( NP-SBJ ( JJ Japanese ) ( NNS agencies ) ) ( VP ( VBP do ) ( NP ( NN business ) ) ( PP-CLR ( IN with ) ( NP ( NP ( JJ rival ) ( NNS clients ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ same ) ( NN industry ) ) ) ) ) ( NP-ADV ( NP ( DT a ) ( NN practice ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJ unacceptable ) ) ( PP ( IN by ) ( NP ( JJ traditional ) ( JJ Western ) ( NN conflict ) ( NNS rules ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Roy ) ( NNP Warman ) ) ( NP ( NP ( DT the ) ( NNP London ) ( JJ chief ) ( NN executive ) ) ( PP ( IN of ) ( NP ( NP ( NNP Saatchi ) ( CC & ) ( NNP Saatchi ) ( POS 's ) ) ( NNS communications ) ( NN division ) ) ) ) ) )

Japanese agencies do business with rival clients in the same industry a practice that would be unacceptable by traditional Western conflict rules says Roy Warman the London chief executive of Saatchi & Saatchi 's communications division


( S ( S-TPC-1 ( SBAR-ADV ( IN Although ) ( S ( S-NOM-SBJ ( VP ( VBG acquiring ) ( NP ( DT a ) ( JJ foreign ) ( NN company ) ) ) ) ( VP ( MD would ) ( VP ( VB expand ) ( NP ( NP ( JJ Japanese ) ( NN advertising ) ( NNS agencies ) ( POS ' ) ) ( NN business ) ) ( PP-CLR ( TO to ) ( NP ( JJ foreign ) ( NNS clients ) ) ) ) ) ) ) ( NP-SBJ ( JJ many ) ( NNS clients ) ) ( VP ( MD would ) ( ADVP ( RB also ) ) ( VP ( VB be ) ( NP-PRD ( NP ( JJ Japanese ) ( NNS companies ) ) ( VP ( VBG expanding ) ( ADVP-LOC-CLR ( RB overseas ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( DT the ) ( NNP Dentsu ) ( NN spokesman ) ) )

Although acquiring a foreign company would expand Japanese advertising agencies ' business to foreign clients many clients would also be Japanese companies expanding overseas says the Dentsu spokesman


( S ( CC But ) ( NP-SBJ ( DT the ) ( JJ different ) ( NN business ) ( NN system ) ) ( VP ( MD would ) ( VP ( VB make ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( ADJP-PRD ( JJ hard ) ) ( SBAR-2 ( IN for ) ( S ( NP-SBJ ( NNP Dentsu ) ) ( VP ( TO to ) ( VP ( VB provide ) ( NP-BNF ( DT these ) ( JJ Japanese ) ( NNS companies ) ) ( NP ( NP ( DT the ) ( JJ same ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NNS services ) ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP do ) ( PP-LOC ( IN in ) ( NP ( NNP Japan ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But the different business system would make it hard for Dentsu to provide these Japanese companies the same kind of services they do in Japan


( S ( NP-SBJ ( NNP National ) ( NNP Intergroup ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB report ) ( NP ( NP ( DT a ) ( NN charge ) ) ( PP ( IN of ) ( NP ( QP ( CD 5.3 ) ( CD million ) ) ) ) ( VP ( VBN related ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( NN aluminum ) ( NN unit ) ( POS 's ) ) ( NN extrusion ) ( NN division ) ) ) ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ) ) ) ) ) ) ) ) )

National Intergroup Inc. said it expects to report a charge of 5.3 million related to the sale of its aluminum unit 's extrusion division for the third quarter


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ has ) ( VP ( VBN agreed ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( DT the ) ( NN extrusion ) ( NN division ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 15 ) ( CD million ) ) ) ) ( PP-DTV ( TO to ) ( NP ( NP ( NNP R.D. ) ( NNP Werner ) ( NNP Co. ) ) ( NP ( NP ( DT a ) ( ADJP ( RB closely ) ( VBN held ) ) ( NN firm ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( NNP Greenville ) ) ( NP ( NNP Pa ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The company said it has agreed to sell the extrusion division for 15 million to R.D. Werner Co. a closely held firm based in Greenville Pa


( S ( NP-SBJ-1 ( DT The ) ( NN charge ) ) ( VP ( VBZ is ) ( VP ( VBN offset ) ( PP ( IN by ) ( NP-LGS ( NP ( DT an ) ( JJ after-tax ) ( NN gain ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 30 ) ( CD million ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN quarter ) ) ) ( PP ( IN from ) ( NP ( DT the ) ( ADJP ( RB previously ) ( VBN announced ) ) ( NN pact ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NP ( NNP National ) ( NNP Aluminum ) ( POS 's ) ) ( NN rolling ) ( NN division ) ) ) ) ) ) ) ) ) ) ) )

The charge is offset by an after-tax gain of about 30 million in the quarter from the previously announced pact to sell National Aluminum 's rolling division


( S ( NP-SBJ ( NNP National ) ( NNP Intergroup ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ year-ago ) ( JJ third ) ( NN quarter ) ) ) ( VP ( VBD earned ) ( NP ( NP ( QP ( CD 22.5 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 97 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( PP ( VBG including ) ( NP ( NP ( DT a ) ( NN gain ) ) ( PP ( IN of ) ( NP ( QP ( CD 18 ) ( CD million ) ) ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN steel ) ( NN tube ) ( NN company ) ) ) ) ) ) ) ) ) )

National Intergroup in the year-ago third quarter earned 22.5 million or 97 cents a share including a gain of 18 million from the sale of a steel tube company


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD was ) ( NP-PRD ( QP ( CD 778.6 ) ( CD million ) ) ) ) )

Revenue was 778.6 million


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ continues ) ( S ( VP ( TO to ) ( VP ( VB explore ) ( NP ( NP ( DT all ) ( NNS options ) ) ( PP ( VBG concerning ) ( NP ( NP ( DT the ) ( JJ possible ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP National ) ( NNP Aluminum ) ( POS 's ) ) ( ADJP ( CD 54.5 ) ( NN % ) ) ( NN stake ) ) ( PP ( IN in ) ( NP ( NP ( DT an ) ( NN aluminum ) ( NN smelter ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Hawesville ) ) ( NP ( NNP Ky ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The company also said it continues to explore all options concerning the possible sale of National Aluminum 's 54.5 % stake in an aluminum smelter in Hawesville Ky


( S ( NP-SBJ ( NP ( DT The ) ( NN sale ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN extrusion ) ( NN division ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ subject ) ( PP ( TO to ) ( NP ( NP ( VB audit ) ( NNS adjustments ) ) ( PP ( IN for ) ( NP ( VBG working ) ( NN capital ) ( NNS changes ) ) ) ) ) ) ( PP-TMP ( IN through ) ( NP ( DT the ) ( NN closing ) ) ) ) )

The sale of the extrusion division is subject to audit adjustments for working capital changes through the closing


( S ( NP-SBJ ( DT The ) ( NN agreement ) ) ( ADVP ( RB also ) ) ( VP ( VBZ provides ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ potential ) ( NNS payments ) ) ( PP ( IN of ) ( NP ( JJ additional ) ( NNS proceeds ) ) ) ( PP ( TO to ) ( NP ( NNP National ) ( NNP Aluminum ) ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ next ) ( CD two ) ( NNS years ) ) ) ( PP ( VBG depending ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN plant ) ( POS 's ) ) ( NN shipping ) ( NNS levels ) ) ) ) ) ) ) )

The agreement also provides for potential payments of additional proceeds to National Aluminum over the next two years depending on the plant 's shipping levels


( S ( NP-SBJ ( DT The ) ( NN extrusion ) ( NN unit ) ) ( VP ( VBZ produces ) ( NP ( ADJP ( JJ bare ) ( CC and ) ( JJ painted ) ) ( NN custom ) ( NNS extrusions ) ) ( PP ( IN for ) ( NP ( NP ( NN building ) ( NNS products ) ) ( CC and ) ( NP ( NN construction ) ( NNS industries ) ) ) ) ) )

The extrusion unit produces bare and painted custom extrusions for building products and construction industries


( S ( PP-TMP ( IN In ) ( NP ( JJ fiscal ) ( CD 1989 ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( NP ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 40 ) ( CD million ) ) ) ) ) ( CC and ) ( NP ( NP ( DT an ) ( NN operating ) ( NN loss ) ) ( PP ( IN of ) ( NP ( QP ( CD 1.5 ) ( CD million ) ) ) ) ) ) ) )

In fiscal 1989 it had sales of about 40 million and an operating loss of 1.5 million


( S ( NP-SBJ ( NP ( DT A ) ( NN group ) ) ( PP ( IN of ) ( NP ( NNS investors ) ) ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Giant ) ( NNP Group ) ( NNP Ltd. ) ) ( CC and ) ( NP ( NP ( PRP$ its ) ( NN chairman ) ) ( NP ( NNP Burt ) ( NNP Sugarman ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD filed ) ( PP-CLR ( IN with ) ( NP ( JJ federal ) ( JJ antitrust ) ( NNS regulators ) ) ) ( PP-PRP ( IN for ) ( NP ( NN clearance ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 50 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN stock ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Rally ) ( POS 's ) ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( NN fast-food ) ( NN company ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( NNP Louisville ) ) ( NP ( NNP Ky ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

A group of investors led by Giant Group Ltd. and its chairman Burt Sugarman said it filed with federal antitrust regulators for clearance to buy more than 50 % of the stock of Rally 's Inc. a fast-food company based in Louisville Ky


( S ( NP-SBJ ( NNP Rally ) ( POS 's ) ) ( VP ( VBZ operates ) ( CC and ) ( VBZ franchises ) ( NP ( NP ( QP ( RB about ) ( CD 160 ) ) ( NN fast-food ) ( NNS restaurants ) ) ( PP-LOC ( IN throughout ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ) )

Rally 's operates and franchises about 160 fast-food restaurants throughout the U.S.


( S ( NP-SBJ-1 ( DT The ) ( NN company ) ) ( VP ( VBD went ) ( ADJP-PRD ( JJ public ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN month ) ) ( S-ADV ( VP ( VBG offering ) ( NP ( NP ( CD 1,745,000 ) ( NNS shares ) ) ( PP ( IN of ) ( NP ( JJ common ) ( NN stock ) ) ) ) ( PP ( IN at ) ( NP ( NP ( CD 15 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) )

The company went public earlier this month offering 1,745,000 shares of common stock at 15 a share


( S ( NP-SBJ ( NN Giant ) ) ( VP ( VBZ has ) ( NP ( NP ( NNS interests ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NN cement ) ( NN making ) ) ( CC and ) ( NP ( NN newsprint ) ) ) ) ) ) )

Giant has interests in cement making and newsprint


( S ( NP-SBJ ( DT The ) ( NN investor ) ( NN group ) ) ( VP ( VBZ includes ) ( NP ( NP ( NP ( NNP Restaurant ) ( NNP Investment ) ( NNP Partnership ) ) ( NP ( DT a ) ( NNP California ) ( JJ general ) ( NN partnership ) ) ) ( CC and ) ( NP ( NP ( CD three ) ( NP ( NNP Rally ) ( POS 's ) ) ( NNS directors ) ) ( NP ( NP ( NNP Mr. ) ( NNP Sugarman ) ) ( NP ( NNP James ) ( NNP M. ) ( NNP Trotter ) ( NNP III ) ) ( CC and ) ( NP ( NNP William ) ( NNP E. ) ( NNP Trotter ) ( NNP II ) ) ) ) ) ) )

The investor group includes Restaurant Investment Partnership a California general partnership and three Rally 's directors Mr. Sugarman James M. Trotter III and William E. Trotter II


( S ( NP-SBJ ( DT The ) ( NN group ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBZ holds ) ( NP ( NP ( CD 3,027,330 ) ( NP ( NNP Rally ) ( POS 's ) ) ( NNS shares ) ) ( CC or ) ( NP ( NP ( CD 45.2 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( JJ commmon ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) )

The group currently holds 3,027,330 Rally 's shares or 45.2 % of its commmon shares outstanding


( S ( NP-SBJ ( NNP Giant ) ( NNP Group ) ) ( VP ( VBD owned ) ( NP ( NP ( CD 22 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Rally ) ( POS 's ) ) ( NNS shares ) ) ) ) ( PP-TMP ( IN before ) ( NP ( DT the ) ( JJ initial ) ( JJ public ) ( NN offering ) ) ) ) )

Giant Group owned 22 % of Rally 's shares before the initial public offering


( S ( NP-SBJ ( NP ( DT A ) ( JJ second ) ( NN group ) ) ( PP ( IN of ) ( NP ( CD three ) ( NN company ) ( NNS directors ) ) ) ( VP ( VBN aligned ) ( PP-CLR ( IN with ) ( NP ( NP ( NNP Rally ) ( POS 's ) ) ( NN founder ) ( NNP James ) ( NNP Patterson ) ) ) ) ) ( ADVP ( RB also ) ) ( VP ( VBZ is ) ( VP ( VBG seeking ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN fast-food ) ( NN chain ) ) ) ) ) ) )

A second group of three company directors aligned with Rally 's founder James Patterson also is seeking control of the fast-food chain


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ is ) ( VP ( VBN estimated ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Patterson ) ( NN group ) ) ( VP ( VBZ controls ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 40 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Rally ) ( POS 's ) ) ( NN stock ) ) ) ) ) ) ) ) ) )

It is estimated that the Patterson group controls more than 40 % of Rally 's stock


( S ( NP-SBJ-1 ( NNP Rally ) ( NNS officials ) ) ( VP ( VBD were ) ( RB n't ) ( ADJP-PRD ( JJ available ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB comment ) ) ) ) ( NP-TMP ( RB late ) ( NN yesterday ) ) ) )

Rally officials were n't available to comment late yesterday


( S ( PP ( IN For ) ( NP ( NP ( DT the ) ( NN year ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP July ) ( CD 2 ) ) ) ) ) ( NP-SBJ ( NNP Rally ) ) ( VP ( VBD had ) ( NP ( NP ( JJ net ) ( NN income ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 2.4 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 34 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NN revenue ) ) ( PP ( IN of ) ( NP ( QP ( CD 52.9 ) ( CD million ) ) ) ) ) ) ) ) )

For the year ended July 2 Rally had net income of 2.4 million or 34 cents a share on revenue of 52.9 million


( S ( S ( NP-SBJ ( NNS Insurers ) ) ( VP ( MD may ) ( VP ( VB see ) ( NP ( NP ( NNS claims ) ) ( VP ( VBG resulting ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NNP San ) ( NNP Francisco ) ( NN earthquake ) ) ) ) ( VP ( VBG totaling ) ( NP ( NP ( QP ( RB nearly ) ( CD 1 ) ( CD billion ) ) ) ( PRN ( ADJP ( ADJP ( RB far ) ( JJR less ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( NNS claims ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP face ) ( PP-CLR ( IN from ) ( NP ( NNP Hurricane ) ( NNP Hugo ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ recent ) ( NN spate ) ) ( PP ( IN of ) ( NP ( NNS catastrophes ) ) ) ) ( VP ( MD should ) ( VP ( VB jolt ) ( NP ( NN property ) ( NN insurance ) ( NNS rates ) ) ( PP-TMP ( IN in ) ( NP ( JJ coming ) ( NNS months ) ) ) ) ) ) )

Insurers may see claims resulting from the San Francisco earthquake totaling nearly 1 billion far less than the claims they face from Hurricane Hugo but the recent spate of catastrophes should jolt property insurance rates in coming months


( S ( NP-SBJ ( NP ( DT The ) ( NN property ) ( NNS claims ) ( NN service ) ( NN division ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP American ) ( NNP Insurance ) ( NNPS Services ) ( NNP Group ) ) ) ) ( VP ( VBD estimated ) ( NP ( NP ( JJ insured ) ( NNS losses ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN earthquake ) ) ) ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 960 ) ( CD million ) ) ) ) ) )

The property claims service division of the American Insurance Services Group estimated insured losses from the earthquake at 960 million


( S ( NP-SBJ ( DT This ) ( NN estimate ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB include ) ( NP ( NP ( NNS claims ) ) ( PP-LOC ( IN under ) ( NP ( NP ( NP ( NNS workers ) ( POS ' ) ) ( NN compensation ) ) ( NP ( NN life ) ) ( NP ( NN health ) ( NN disability ) ( CC and ) ( NN liability ) ( NN insurance ) ) ( CC and ) ( NP ( NP ( NN damage ) ) ( PP ( TO to ) ( NP ( NP ( NN infrastructure ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNS bridges ) ) ( NP ( NNS highways ) ) ( CC and ) ( NP ( JJ public ) ( NNS buildings ) ) ) ) ) ) ) ) ) ) ) ) )

This estimate does n't include claims under workers ' compensation life health disability and liability insurance and damage to infrastructure such as bridges highways and public buildings


( S ( NP-SBJ ( DT The ) ( JJ estimated ) ( NN earthquake ) ( NNS losses ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ low ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( QP ( CD 4 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NNS claims ) ) ) ( SBAR ( WHNP-2 ( IN that ) ) ( S ( NP-SBJ ( NNS insurers ) ) ( VP ( VBP face ) ( PP-CLR ( IN from ) ( NP ( NP ( NNP Hurricane ) ( NNP Hugo ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD ripped ) ( PP-CLR ( IN through ) ( NP ( NP ( DT the ) ( NNP Caribbean ) ) ( CC and ) ( NP ( DT the ) ( NNPS Carolinas ) ) ) ) ( NP-TMP ( JJ last ) ( NN month ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The estimated earthquake losses are low compared with the 4 billion in claims that insurers face from Hurricane Hugo which ripped through the Caribbean and the Carolinas last month


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( SBAR-PRD ( IN because ) ( S ( NP-SBJ ( NP ( QP ( RB only ) ( RB about ) ( CD 30 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP California ) ( NNS homes ) ( CC and ) ( NNS businesses ) ) ) ) ( VP ( VBD had ) ( NP ( NP ( NN earthquake ) ( NN insurance ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB cover ) ( NP ( DT the ) ( NNS losses ) ) ) ) ) ) ) ) ) ) ) )

That 's because only about 30 % of California homes and businesses had earthquake insurance to cover the losses


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NN insurance ) ( NNS brokers ) ( CC and ) ( NNS executives ) ) ( VP ( VBP say ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN combination ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Bay ) ( NN area ) ( NN earthquake ) ) ( NP ( NNP Hugo ) ) ( CC and ) ( NP ( NP ( NP ( JJ last ) ( NN week ) ( POS 's ) ) ( NN explosion ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NP ( DT the ) ( NNP Phillips ) ( NNP Petroleum ) ( NNP Co. ) ( POS 's ) ) ( NN refinery ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Pasadena ) ) ( NP ( NNP Texas ) ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB cause ) ( S ( NP-SBJ ( NN property ) ( NN insurance ) ( CC and ) ( NN reinsurance ) ( NNS rates ) ) ( VP ( TO to ) ( VP ( VB jump ) ) ) ) ) ) ) ) ) )

However insurance brokers and executives say that the combination of the Bay area earthquake Hugo and last week 's explosion at the Phillips Petroleum Co. 's refinery in Pasadena Texas will cause property insurance and reinsurance rates to jump


( SINV ( S-TPC-3 ( NP-SBJ-2 ( NP ( JJ Other ) ( NN insurance ) ( NNS rates ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NN casualty ) ( NN insurance ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( MD would ) ( VP ( VB cover ) ( NP ( NN liability ) ( NNS claims ) ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( RB n't ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB firm ) ( ADVP-TMP ( RB right ) ( RB away ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Alice ) ( NNP Cornish ) ) ( NP ( NP ( DT an ) ( NN industry ) ( NN analyst ) ) ( PP ( IN with ) ( NP ( NP ( NNP Northington ) ( NNP Research ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Avon ) ) ( NP ( NNP Conn ) ) ) ) ) ) ) ) )

Other insurance rates such as casualty insurance which would cover liability claims are n't likely to firm right away says Alice Cornish an industry analyst with Northington Research in Avon Conn


( S ( NP-SBJ ( PRP She ) ) ( VP ( VBZ believes ) ( SBAR ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN impact ) ) ( PP ( IN of ) ( NP ( NNS losses ) ) ) ( PP ( IN from ) ( NP ( DT these ) ( NNS catastrophes ) ) ) ) ( VP ( VBZ is ) ( RB n't ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB halt ) ( NP ( NP ( DT the ) ( NN growth ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN industry ) ( POS 's ) ) ( JJ surplus ) ( NN capital ) ) ) ) ( NP-TMP ( JJ next ) ( NN year ) ) ) ) ) ) ) ) ) ) )

She believes the impact of losses from these catastrophes is n't likely to halt the growth of the industry 's surplus capital next year


( S ( S-TPC-2 ( NP-SBJ-1 ( NN Property ) ( NN reinsurance ) ( NNS rates ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB climb ) ( ADVP-TMP ( RB first ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS analysts ) ( CC and ) ( NNS brokers ) ) ( VP ( VBP believe ) ) )

Property reinsurance rates are likely to climb first analysts and brokers believe


( S ( S-TPC-1 ( NP-SBJ-2 ( DT The ) ( NN reinsurance ) ( NN market ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN bloodied ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS disasters ) ) ( PP-LOC ( PP ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( PP ( IN in ) ( NP ( NP ( NNP Great ) ( NNP Britain ) ) ( CC and ) ( NP ( NNP Europe ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Thomas ) ( NNP Rosencrants ) ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( NN research ) ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Interstate\/Johnson ) ( NNP Lane ) ( NNP Inc. ) ) ( PP-LOC ( IN in ) ( NP ( NNP Atlanta ) ) ) ) ) ) ) )

The reinsurance market has been bloodied by disasters in the U.S. as well as in Great Britain and Europe says Thomas Rosencrants director of research at Interstate\/Johnson Lane Inc. in Atlanta


( S ( NP-SBJ ( NNP Insurers ) ) ( ADVP ( RB typically ) ) ( VP ( VP ( VBP retain ) ( NP ( NP ( DT a ) ( JJ small ) ( NN percentage ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS risks ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP underwrite ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBP pass ) ( PRT ( RP on ) ) ( NP ( NP ( DT the ) ( NN rest ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS losses ) ) ) ) ) ) )

Insurers typically retain a small percentage of the risks they underwrite and pass on the rest of the losses


( S ( NP-SBJ-3 ( NNP Insurers ) ) ( VP ( VBP buy ) ( NP ( DT this ) ( NN insurance ) ( NN protection ) ) ( PP ( IN for ) ( NP ( PRP themselves ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG giving ) ( PRT ( RP up ) ) ( NP ( NP ( DT a ) ( NN portion ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS premiums ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP collect ) ) ) ) ( PP ( IN on ) ( NP ( DT a ) ( NN policy ) ) ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT another ) ( NN firm ) ) ( NP ( DT a ) ( NN reinsurance ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( PP ( IN in ) ( NP ( NN turn ) ) ) ( VP ( VBZ accepts ) ( NP ( NP ( DT a ) ( NN portion ) ) ( PP ( IN of ) ( NP ( NP ( DT any ) ( NNS losses ) ) ( VP ( VBG resulting ) ( PP-CLR ( IN from ) ( NP ( DT this ) ( NN policy ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Insurers buy this insurance protection for themselves by giving up a portion of the premiums they collect on a policy to another firm a reinsurance company which in turn accepts a portion of any losses resulting from this policy


( S ( NP-SBJ ( NP ( NNP Insurers ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Cigna ) ( NNP Corp. ) ) ( NP ( NNP Transamerica ) ( NNP Corp ) ) ( CC and ) ( NP ( NNP Aetna ) ( NNP Life ) ( CC & ) ( NNP Casualty ) ( NNP Co. ) ) ) ) ) ( VP ( VBP buy ) ( NP ( NN reinsurance ) ) ( PP-CLR ( IN from ) ( NP ( NP ( JJ other ) ( JJ U.S.-based ) ( NNS companies ) ) ( CC and ) ( NP ( NP ( NNP Lloyd ) ( VBZ 's ) ) ( PP ( IN of ) ( NP ( NNP London ) ) ) ) ) ) ( PP ( IN for ) ( NP ( NP ( CD one ) ( NN catastrophe ) ) ( PP-TMP ( IN at ) ( NP ( DT a ) ( NN time ) ) ) ) ) ) )

Insurers such as Cigna Corp. Transamerica Corp and Aetna Life & Casualty Co. buy reinsurance from other U.S.-based companies and Lloyd 's of London for one catastrophe at a time


( S ( SBAR-TMP ( IN After ) ( S ( NP-SBJ ( NNP Hugo ) ) ( VP ( VBD hit ) ) ) ) ( NP-SBJ-1 ( JJ many ) ( NNS insurers ) ) ( VP ( VP ( VBD exhausted ) ( NP ( PRP$ their ) ( NN reinsurance ) ( NN coverage ) ) ) ( CC and ) ( VP ( VBD had ) ( S ( VP ( TO to ) ( VP ( VB tap ) ( NP ( NNS reinsurers ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB replace ) ( NP ( DT that ) ( NN coverage ) ) ( SBAR-ADV ( IN in ) ( NN case ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBD were ) ( NP-PRD ( DT any ) ( JJ other ) ( JJ major ) ( NNS disasters ) ) ( PP-TMP ( IN before ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

After Hugo hit many insurers exhausted their reinsurance coverage and had to tap reinsurers to replace that coverage in case there were any other major disasters before the end of the year


( S ( PP-TMP ( IN After ) ( NP ( DT the ) ( NN earthquake ) ) ) ( ADVP-TMP ( NP ( CD two ) ( NNS weeks ) ) ( RB ago ) ) ( NP-SBJ ( NNS brokers ) ) ( VP ( VBP say ) ( SBAR ( S ( S ( NP-SBJ-1 ( NNS companies ) ) ( VP ( VBD scrambled ) ( S ( VP ( TO to ) ( VP ( VB replace ) ( NP ( NN reinsurance ) ( NNS coverages ) ) ( ADVP-TMP ( RB again ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNP Lloyd ) ( POS 's ) ) ( NNS syndicates ) ) ( VP ( VBD turned ) ( PP-DIR ( TO to ) ( NP ( DT the ) ( NNP London ) ( NN market ) ( NN excess ) ( NNS lines ) ) ) ( PP ( IN for ) ( NP ( NP ( NN protection ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( JJ own ) ) ) ) ) ) ) ) ) ) )

After the earthquake two weeks ago brokers say companies scrambled to replace reinsurance coverages again and Lloyd 's syndicates turned to the London market excess lines for protection of their own


( S ( NP-SBJ ( NP ( NNP James ) ( NNP Snedeker ) ) ( NP ( NP ( JJ senior ) ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP Gill ) ( CC & ) ( NNP Roeser ) ( NNP Inc. ) ) ( NP ( DT a ) ( ADJP ( NNP New ) ( JJ York-based ) ) ( NN reinsurance ) ( NN broker ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ-2 ( NP ( NNS insurers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VP ( VBD took ) ( NP ( JJ big ) ( NNS losses ) ) ( NP-TMP ( DT this ) ( NN fall ) ) ) ( CC and ) ( VP ( VBD had ) ( VP ( VBN purchased ) ( NP ( JJ little ) ( NN reinsurance ) ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS years ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN asked ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( DT some ) ( ADJP ( JJ pretty ) ( JJ hefty ) ) ( NNS rates ) ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-4 ( PRP they ) ) ( VP ( VBP want ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NN reinsurance ) ) ( PP ( IN for ) ( NP ( CD 1990 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

James Snedeker senior vice president of Gill & Roeser Inc. a New York-based reinsurance broker says insurers who took big losses this fall and had purchased little reinsurance in recent years will be asked to pay some pretty hefty rates if they want to buy reinsurance for 1990


( S ( ADVP ( RB However ) ) ( NP-SBJ-1 ( NP ( NP ( NNS companies ) ) ( PP ( IN with ) ( NP ( NP ( JJ few ) ( NN catastrophe ) ( NNS losses ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ( CC and ) ( NP ( NP ( ADJP ( RB already ) ( JJ big ) ) ( NNS buyers ) ) ( PP ( IN of ) ( NP ( NN reinsurance ) ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB see ) ( S ( NP-SBJ ( PRP$ their ) ( NNS rates ) ) ( VP ( VP ( VBP remain ) ( ADJP-PRD ( JJ flat ) ) ) ( CC or ) ( VP ( ADVP ( RB perhaps ) ) ( ADVP ( RB even ) ) ( VBP decline ) ( ADVP-MNR ( RB slightly ) ) ) ) ) ) ) ) ) ) )

However companies with few catastrophe losses this year and already big buyers of reinsurance are likely to see their rates remain flat or perhaps even decline slightly


( S ( NP-SBJ ( JJ Many ) ( NNS companies ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBG negotiating ) ( NP ( PRP$ their ) ( CD 1990 ) ( NN reinsurance ) ( NNS contracts ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ next ) ( JJ few ) ( NNS weeks ) ) ) ) ) ) )

Many companies will be negotiating their 1990 reinsurance contracts in the next few weeks


( S ( S-TMP-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT a ) ( NN seller ) ( POS 's ) ) ( NN market ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Snedeker ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN reinsurance ) ( NN market ) ) ( ADVP-TMP ( RB right ) ( RB now ) ) ) ) ) )

It 's a seller 's market said Mr. Snedeker of the reinsurance market right now


( S ( CC But ) ( NP-SBJ ( NP ( DT some ) ( JJ large ) ( NNS insurers ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNP State ) ( NNP Farm ) ( NNP Mutual ) ( NNP Automobile ) ( NNP Insurance ) ( NNP Co. ) ) ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VP ( VB purchase ) ( NP ( NN reinsurance ) ) ) ( CC but ) ( VP ( VBP fund ) ( NP ( PRP$ their ) ( JJ own ) ( NN program ) ) ) ) ) )

But some large insurers such as State Farm Mutual Automobile Insurance Co. do n't purchase reinsurance but fund their own program


( S ( ADVP-TMP ( NP ( DT A ) ( JJ few ) ( NNS years ) ) ( RB ago ) ) ( S ( NP-SBJ ( NP ( NNP State ) ( NNP Farm ) ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( JJS largest ) ( NN home ) ( NN insurer ) ) ) ( VP ( VBD stopped ) ( VP ( VBG buying ) ( NP ( NN reinsurance ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( DT no ) ( CD one ) ( NN carrier ) ) ( VP ( MD could ) ( VP ( VB provide ) ( NP ( NP ( PDT all ) ( DT the ) ( NN coverage ) ) ( SBAR ( WHNP-2 ( IN that ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD needed ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD found ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( ADJP-PRD ( JJR cheaper ) ) ( S-1 ( VP ( TO to ) ( VP ( VB self-reinsure ) ) ) ) ) ) ) )

A few years ago State Farm the nation 's largest home insurer stopped buying reinsurance because no one carrier could provide all the coverage that it needed and the company found it cheaper to self-reinsure


( S ( NP-SBJ ( NP ( NP ( DT The ) ( QP ( CD 472 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( NNS losses ) ) ( SBAR ( S ( NP-SBJ ( NNP State ) ( NNP Farm ) ) ( VP ( VBZ expects ) ( PP-CLR ( IN from ) ( NP ( NNP Hugo ) ) ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( DT an ) ( JJ additional ) ( QP ( CD 300 ) ( CD million ) ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN earthquake ) ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( QP ( JJR less ) ( IN than ) ( CD 5 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP State ) ( NNP Farm ) ( POS 's ) ) ( ADJP ( QP ( CD 16.7 ) ( CD billion ) ) ) ( JJ total ) ( JJ net ) ( NN worth ) ) ) ) ) )

The 472 million of losses State Farm expects from Hugo and an additional 300 million from the earthquake are less than 5 % of State Farm 's 16.7 billion total net worth


( S ( S-TPC-4 ( SBAR-TMP ( IN Since ) ( S ( NP-SBJ ( JJ few ) ( NNS insurers ) ) ( VP ( VBP have ) ( VP ( VBN announced ) ( SBAR-NOM ( WHNP-3 ( WHNP ( WDT what ) ( NN amount ) ) ( PP ( IN of ) ( NP ( NP ( NNS losses ) ) ) ) ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP expect ) ( S ( VP ( TO to ) ( VP ( VB see ) ( PP-5 ( IN from ) ( NP ( DT the ) ( NN earthquake ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJ impossible ) ) ( S-2 ( VP ( TO to ) ( VP ( VB get ) ( NP ( NP ( DT a ) ( JJ clear ) ( NN picture ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NN quake ) ( POS 's ) ) ( NN impact ) ) ( PP ( IN on ) ( NP ( JJ fourth-quarter ) ( NNS earnings ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Herbert ) ( NNP Goodfriend ) ) ( PP-LOC ( IN at ) ( NP ( NNP Prudential-Bache ) ( NNPS Securities ) ( NNP Corp ) ) ) ) )

Since few insurers have announced what amount of losses they expect to see from the earthquake it 's impossible to get a clear picture of the quake 's impact on fourth-quarter earnings said Herbert Goodfriend at Prudential-Bache Securities Corp


( S ( S ( NP-SBJ ( NNP Transamerica ) ) ( VP ( VBZ expects ) ( NP ( NP ( DT an ) ( JJ after-tax ) ( NN charge ) ) ( PP ( IN of ) ( NP ( QP ( JJR less ) ( IN than ) ( CD 3 ) ( CD million ) ) ) ) ( PP ( IN against ) ( NP ( JJ fourth-quarter ) ( NN net ) ) ) ) ) ) ( S ( NP-SBJ ( NP ( NNP Hartford ) ( NNP Insurance ) ( NNP Group ) ) ( NP ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP ITT ) ( NNP Corp. ) ) ) ) ) ( VP ( VBZ expects ) ( NP ( DT a ) ( ADJP ( ADJP ( QP ( CD 15 ) ( CD million ) ) ) ( CC or ) ( ADJP ( CD 10 ) ( NNS cents ) ) ) ( JJ after-tax ) ( NN charge ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNP Fireman ) ( POS 's ) ) ( NNP Fund ) ( NNP Corp. ) ) ( VP ( VBZ expects ) ( NP ( NP ( DT a ) ( NN charge ) ) ( PP ( IN of ) ( NP ( QP ( DT no ) ( JJR more ) ( IN than ) ( CD 50 ) ( CD million ) ) ) ) ( PP-TMP ( PP ( IN before ) ( NP ( NNS taxes ) ) ) ( CC and ) ( PP ( IN after ) ( S-NOM ( VP ( VBG using ) ( NP ( PRP$ its ) ( NN reinsurance ) ) ) ) ) ) ) ) ) )

Transamerica expects an after-tax charge of less than 3 million against fourth-quarter net Hartford Insurance Group a unit of ITT Corp. expects a 15 million or 10 cents after-tax charge and Fireman 's Fund Corp. expects a charge of no more than 50 million before taxes and after using its reinsurance


( S ( S ( NP-SBJ-2 ( CD Three ) ( JJ new ) ( NNS issues ) ) ( VP ( VBP begin ) ( S ( VP ( VBG trading ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) ( NP-TMP ( NN today ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( CD one ) ) ( VP ( VBD began ) ( S ( VP ( VBG trading ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Nasdaq\/National ) ( NNP Market ) ( NNP System ) ) ) ) ) ( NP-TMP ( JJ last ) ( NN week ) ) ) ) )

Three new issues begin trading on the New York Stock Exchange today and one began trading on the Nasdaq\/National Market System last week


( S ( PP-LOC ( IN On ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ( NP-SBJ-1 ( NP ( NNP Crawford ) ( CC & ) ( NNP Co. ) ) ( NP-LOC ( NNP Atlanta ) ) ( PRN ( NP ( NNP CFD ) ) ) ) ( VP ( VBZ begins ) ( S ( VP ( VBG trading ) ) ) ( NP-TMP ( NN today ) ) ) )

On the Big Board Crawford & Co. Atlanta CFD begins trading today


( S ( NP-SBJ-1 ( NNP Crawford ) ) ( VP ( VP ( VBZ evaluates ) ( NP ( NN health ) ( NN care ) ( NNS plans ) ) ) ( VP ( VBZ manages ) ( NP ( NP ( UCP ( JJ medical ) ( CC and ) ( NN disability ) ) ( NNS aspects ) ) ( PP ( IN of ) ( NP ( NP ( NN worker ) ( POS 's ) ) ( NN compensation ) ( NNS injuries ) ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( VP ( VBN involved ) ( PP-CLR ( IN in ) ( NP ( NP ( NNS claims ) ( NNS adjustments ) ) ( PP ( IN for ) ( NP ( NN insurance ) ( NNS companies ) ) ) ) ) ) ) ) )

Crawford evaluates health care plans manages medical and disability aspects of worker 's compensation injuries and is involved in claims adjustments for insurance companies


( SINV ( ADVP ( RB Also ) ) ( VP-TPC-2 ( VBG beginning ) ( S ( VP ( VBG trading ) ) ) ( NP-TMP ( NN today ) ) ( PP-LOC-1 ( IN on ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ) ( VP ( VBP are ) ) ( NP-SBJ-3 ( NP ( NP ( NNP El ) ( NNP Paso ) ( NNP Refinery ) ( NNP Limited ) ( NNP Partnership ) ) ( NP-LOC ( NP ( NNP El ) ( NNP Paso ) ) ( NP ( NNP Texas ) ) ) ( PRN ( NP ( NNP ELP ) ) ) ) ( CC and ) ( NP ( NP ( NNP Franklin ) ( NNP Multi-Income ) ( NNP Trust ) ) ( NP-LOC ( NP ( NNP San ) ( NNP Mateo ) ) ( NP ( NNP Calif. ) ) ) ( PRN ( NP ( NNP FMI ) ) ) ) ) )

Also beginning trading today on the Big Board are El Paso Refinery Limited Partnership El Paso Texas ELP and Franklin Multi-Income Trust San Mateo Calif. FMI


( S ( NP-SBJ ( NNP El ) ( NNP Paso ) ) ( VP ( VBZ owns ) ( CC and ) ( VBZ operates ) ( NP ( DT a ) ( NN petroleum ) ( NN refinery ) ) ) )

El Paso owns and operates a petroleum refinery


( S ( NP-SBJ ( NNP Franklin ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( JJ closed-end ) ( NN management ) ( NN investment ) ( NN company ) ) ) )

Franklin is a closed-end management investment company


( S ( PP-LOC ( IN On ) ( NP ( DT the ) ( NNP Nasdaq ) ( JJ over-the-counter ) ( NN system ) ) ) ( NP-SBJ-1 ( NP ( NNP Allied ) ( NNP Capital ) ( NNP Corp. ) ) ( NP-LOC ( NP ( NNP Washington ) ) ( NP ( NNP D.C. ) ) ) ( PRN ( NP ( NNP ALII ) ) ) ) ( VP ( VBD began ) ( S ( VP ( VBG trading ) ) ) ( NP-TMP ( JJ last ) ( NNP Thursday ) ) ) )

On the Nasdaq over-the-counter system Allied Capital Corp. Washington D.C. ALII began trading last Thursday


( S ( NP-SBJ ( NNP Allied ) ( NNP Capital ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ closed-end ) ( NN management ) ( NN investment ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD will ) ( VP ( VB operate ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( NN business ) ( NN development ) ( NN concern ) ) ) ) ) ) ) ) ) )

Allied Capital is a closed-end management investment company that will operate as a business development concern


( S ( PP-TMP ( IN In ) ( NP ( NP ( DT an ) ( NN age ) ) ( PP ( IN of ) ( NP ( NN specialization ) ) ) ) ) ( NP-SBJ ( DT the ) ( JJ federal ) ( NN judiciary ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ last ) ( NNS bastions ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN generalist ) ) ) ) ) ) ) )

In an age of specialization the federal judiciary is one of the last bastions of the generalist


( S ( NP-SBJ-1 ( DT A ) ( NN judge ) ) ( VP ( MD must ) ( VP ( VP ( VB jump ) ( PP-DIR-2 ( IN from ) ( NP ( NN murder ) ) ) ( PP-DIR-3 ( TO to ) ( NP ( JJ antitrust ) ( NNS cases ) ) ) ) ( VP ( PP-DIR=2 ( IN from ) ( NP ( NN arson ) ) ) ( PP-DIR=3 ( TO to ) ( NP ( NNS securities ) ( NN fraud ) ) ) ) ( PP ( IN without ) ( S-NOM ( VP ( VBG missing ) ( NP ( DT a ) ( NN beat ) ) ) ) ) ) ) )

A judge must jump from murder to antitrust cases from arson to securities fraud without missing a beat


( S ( CC But ) ( ADVP ( RB even ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( JJ federal ) ( NN bench ) ) ) ( S ( NP-SBJ ( NN specialization ) ) ( VP ( VBZ is ) ( VP ( VBG creeping ) ( PRT ( RP in ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( VP ( VBN become ) ( NP-PRD ( NP ( DT a ) ( NN subject ) ) ( PP ( IN of ) ( NP ( JJ sharp ) ( NN controversy ) ) ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( JJS newest ) ( JJ federal ) ( NNS appeals ) ( NN court ) ) ) ) ) ) )

But even on the federal bench specialization is creeping in and it has become a subject of sharp controversy on the newest federal appeals court


( S ( NP-SBJ-1 ( NP ( DT The ) ( NNP Court ) ) ( PP ( IN of ) ( NP ( NNPS Appeals ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( NNP Federal ) ( NNP Circuit ) ) ) ) ( VP ( VBD was ) ( VP ( VBN created ) ( PP-TMP ( IN in ) ( NP ( CD 1982 ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB serve ) ( PP ( IN among ) ( NP ( JJ other ) ( NNS things ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT the ) ( NN court ) ) ( PP ( IN of ) ( NP ( JJ last ) ( NN resort ) ) ) ) ) ( PP ( IN for ) ( NP ( JJS most ) ( NN patent ) ( NNS disputes ) ) ) ) ) ) ) ) )

The Court of Appeals for the Federal Circuit was created in 1982 to serve among other things as the court of last resort for most patent disputes


( S ( ADVP-TMP ( RB Previously ) ) ( NP-SBJ ( NN patent ) ( NNS cases ) ) ( VP ( VBD moved ) ( PP-DIR ( IN through ) ( NP ( DT the ) ( NN court ) ( NN system ) ) ) ( PP-DIR ( TO to ) ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( DT the ) ( CD 12 ) ( NN circuit ) ( NNS appeals ) ( NNS courts ) ) ) ) ) ) )

Previously patent cases moved through the court system to one of the 12 circuit appeals courts


( S ( ADVP-LOC ( RB There ) ) ( NP-SBJ ( NP ( NNS judges ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( S ( VP ( VBD saw ) ( NP ( JJ few ) ( JJ such ) ( NNS cases ) ) ) ) ( CC and ) ( S ( VP ( VBD had ) ( NP ( NP ( DT no ) ( NN experience ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN field ) ) ) ) ) ) ) ) ) ( VP ( VBD grappled ) ( PP-CLR ( IN with ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ technical ) ( CC and ) ( JJ complex ) ) ( NNS disputes ) ) ( ADJP ( JJ imaginable ) ) ) ) ) ) ) )

There judges who saw few such cases and had no experience in the field grappled with some of the most technical and complex disputes imaginable


( S ( NP-SBJ-1 ( DT A ) ( JJ new ) ( NN specialty ) ( NN court ) ) ( VP ( VBD was ) ( VP ( VBN sought ) ( PP ( IN by ) ( NP-LGS ( NP ( NN patent ) ( NNS experts ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBD believed ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNS generalists ) ) ( VP ( VBD had ) ( VP ( VBN botched ) ( NP ( ADJP ( RB too ) ( RB many ) ) ( JJ important ) ( JJ multimillion-dollar ) ( NNS cases ) ) ) ) ) ) ) ) ) ) ) ) ) )

A new specialty court was sought by patent experts who believed that the generalists had botched too many important multimillion-dollar cases


( S ( NP-SBJ ( DT Some ) ( NN patent ) ( NNS lawyers ) ) ( VP ( VBD had ) ( VP ( VBN hoped ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PDT such ) ( DT a ) ( NN specialty ) ( NN court ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN filled ) ( PP-CLR ( IN with ) ( NP ( NP ( NNS experts ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN field ) ) ) ) ) ) ) ) ) ) ) ) )

Some patent lawyers had hoped that such a specialty court would be filled with experts in the field


( S ( CC But ) ( S ( NP-SBJ ( DT the ) ( NNP Reagan ) ( NN administration ) ) ( VP ( VBD thought ) ( ADVP-MNR ( RB otherwise ) ) ) ) ( CC and ) ( SINV ( ADVP-PRD-TPC-1 ( RB so ) ) ( VP ( MD may ) ) ( NP-SBJ ( DT the ) ( NNP Bush ) ( NN administration ) ) ) )

But the Reagan administration thought otherwise and so may the Bush administration


( S ( PP-TMP ( IN Since ) ( NP ( CD 1984 ) ) ) ( NP-SBJ ( DT the ) ( NN president ) ) ( VP ( VBZ has ) ( VP ( VBN filled ) ( NP ( NP ( CD four ) ( NNS vacancies ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Federal ) ( NNP Circuit ) ( NN court ) ) ) ) ( PP-CLR ( IN with ) ( NP ( JJ non-patent ) ( NNS lawyers ) ) ) ) ) )

Since 1984 the president has filled four vacancies in the Federal Circuit court with non-patent lawyers


( S ( ADVP-TMP ( RB Now ) ) ( NP-SBJ ( NP ( QP ( RB only ) ( CD three ) ( IN of ) ( DT the ) ( CD 12 ) ) ( NNS judges ) ) ( PRN ( NP ( NP ( NNP Pauline ) ( NNP Newman ) ) ( NP ( NP ( NNP Chief ) ( NNP Judge ) ( NNP Howard ) ( NNP T. ) ( NNP Markey ) ) ( NP ( CD 68 ) ) ) ( CC and ) ( NP ( NP ( NNP Giles ) ( NNP Rich ) ) ( NP ( CD 85 ) ) ) ) ) ) ( VP ( VBP have ) ( NP ( NN patent-law ) ( NNS backgrounds ) ) ) )

Now only three of the 12 judges Pauline Newman Chief Judge Howard T. Markey 68 and Giles Rich 85 have patent-law backgrounds


( S ( NP-SBJ ( NP ( DT The ) ( JJ latter ) ( CD two ) ) ( CC and ) ( NP ( NP ( NNP Judge ) ( NNP Daniel ) ( NNP M. ) ( NNP Friedman ) ) ( NP ( CD 73 ) ) ) ) ( VP ( VBP are ) ( VP ( VBG approaching ) ( NP ( NP ( JJ senior ) ( NN status ) ) ( CC or ) ( NP ( NN retirement ) ) ) ) ) )

The latter two and Judge Daniel M. Friedman 73 are approaching senior status or retirement


( S ( S ( NP-SBJ ( CD Three ) ( NNS seats ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ vacant ) ) ) ) ( CC and ) ( S ( NP-SBJ-3 ( CD three ) ( NNS others ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN filled ) ( PP-TMP ( IN within ) ( NP ( DT a ) ( JJ few ) ( NNS years ) ) ) ) ) ) ) ) ) ) ( IN so ) ( S ( NP-SBJ ( NP ( NN patent ) ( NNS lawyers ) ) ( CC and ) ( NP ( JJ research-based ) ( NNS industries ) ) ) ( VP ( VBP are ) ( VP ( VBG making ) ( NP ( NP ( DT a ) ( JJ new ) ( NN push ) ) ( PP ( IN for ) ( NP ( NP ( NNS specialists ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN added ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NN court ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Three seats currently are vacant and three others are likely to be filled within a few years so patent lawyers and research-based industries are making a new push for specialists to be added to the court


( S ( NP-SBJ ( NP ( JJ Several ) ( NNS organizations ) ) ( PP ( VBG including ) ( NP ( NP ( DT the ) ( NNP Industrial ) ( NNP Biotechnical ) ( NNP Association ) ) ( CC and ) ( NP ( DT the ) ( NNP Pharmaceutical ) ( NNP Manufacturers ) ( NNP Association ) ) ) ) ) ( VP ( VB have ) ( VP ( VBN asked ) ( NP-1 ( NP ( DT the ) ( NNP White ) ( NNP House ) ) ( CC and ) ( NP ( NNP Justice ) ( NNP Department ) ) ) ( S ( VP ( TO to ) ( VP ( VB name ) ( NP ( NP ( NNS candidates ) ) ( PP ( IN with ) ( NP ( UCP ( DT both ) ( NN patent ) ( CC and ) ( JJ scientific ) ) ( NNS backgrounds ) ) ) ) ) ) ) ) ) )

Several organizations including the Industrial Biotechnical Association and the Pharmaceutical Manufacturers Association have asked the White House and Justice Department to name candidates with both patent and scientific backgrounds


( S ( NP-SBJ ( DT The ) ( NNS associations ) ) ( VP ( MD would ) ( VP ( VB like ) ( S ( NP-SBJ ( DT the ) ( NN court ) ) ( VP ( TO to ) ( VP ( VB include ) ( NP ( NP ( QP ( IN between ) ( CD three ) ( CC and ) ( CD six ) ) ( NNS judges ) ) ( PP ( IN with ) ( NP ( JJ specialized ) ( NN training ) ) ) ) ) ) ) ) ) )

The associations would like the court to include between three and six judges with specialized training


( S ( NP-SBJ ( NP ( DT Some ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS associations ) ) ) ) ( VP ( VB have ) ( VP ( VBN recommended ) ( NP ( NP ( NP ( NNP Dr. ) ( NNP Alan ) ( NNP D. ) ( NNP Lourie ) ) ( NP ( CD 54 ) ) ) ( NP ( NP ( DT a ) ( JJ former ) ( NN patent ) ( NN agent ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( NN doctorate ) ) ( PP ( IN in ) ( NP ( JJ organic ) ( NN chemistry ) ) ) ) ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( ADVP-TMP ( RB now ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( JJ associate ) ( JJ general ) ( NN counsel ) ) ( PP ( IN with ) ( NP ( NP ( NNP SmithKline ) ( NNP Beckman ) ( NNP Corp. ) ) ( PP-LOC ( IN in ) ( NP ( NNP Philadelphia ) ) ) ) ) ) ) ) ) ) ) ) )

Some of the associations have recommended Dr. Alan D. Lourie 54 a former patent agent with a doctorate in organic chemistry who now is associate general counsel with SmithKline Beckman Corp. in Philadelphia


( S ( NP-SBJ ( NNP Dr. ) ( NNP Lourie ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP Justice ) ( NNP Department ) ) ( VP ( VBD interviewed ) ( NP ( PRP him ) ) ( NP-TMP ( JJ last ) ( NNP July ) ) ) ) ) ) )

Dr. Lourie says the Justice Department interviewed him last July


( S ( NP-SBJ ( PRP$ Their ) ( NN effort ) ) ( VP ( VBZ has ) ( VP ( VBN received ) ( NP ( DT a ) ( JJ lukewarm ) ( NN response ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NNP Justice ) ( NNP Department ) ) ) ) ) )

Their effort has received a lukewarm response from the Justice Department


( SINV ( S-TPC-4 ( NP-SBJ ( PRP We ) ) ( VP ( VBP do ) ( RB not ) ( VP ( VB feel ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NNS seats ) ) ( VP ( VBP are ) ( VP ( VBN reserved ) ( PRN ( PP-CLR ( IN for ) ( NP ( NN patent ) ( NNS lawyers ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Justice ) ( NN spokesman ) ( NNP David ) ( NNP Runkel ) ) ( SBAR ( WHNP-3 ( WP who ) ) ( S ( VP ( VBZ declines ) ( S ( VP ( TO to ) ( VP ( VB say ) ( SBAR ( WHADVP-6 ( WRB how ) ( RB soon ) ) ( S ( NP-SBJ-2 ( DT a ) ( NN candidate ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN named ) ) ) ) ) ) ) ) ) ) ) ) ) )

We do not feel that seats are reserved for patent lawyers says Justice spokesman David Runkel who declines to say how soon a candidate will be named


( S ( CC But ) ( NP-SBJ ( PRP we ) ) ( VP ( MD will ) ( VP ( VB take ) ( NP ( PRP it ) ) ( PP-CLR ( IN into ) ( NP ( NN consideration ) ) ) ) ) )

But we will take it into consideration


( S ( NP-SBJ-1 ( NP ( DT The ) ( NNP Justice ) ( NNP Department ) ( POS 's ) ) ( NN view ) ) ( VP ( VBZ is ) ( VP ( VBN shared ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ other ) ( NNS lawyers ) ) ( CC and ) ( NP ( NP ( NP ( QP ( IN at ) ( JJS least ) ( CD one ) ) ( NN member ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN court ) ) ) ) ( NP ( NNP Judge ) ( NNP H. ) ( NNP Robert ) ( NNP Mayer ) ) ( NP ( NP ( DT a ) ( JJ former ) ( JJ civil ) ( NN litigator ) ) ( SBAR ( WHNP-3 ( WP who ) ) ( S ( VP ( VBD served ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NNS claims ) ( NN court ) ( NN trial ) ( NN level ) ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ-2 ( PRP he ) ) ( VP ( VBD was ) ( VP ( VBN appointed ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NNP Federal ) ( NNP Circuit ) ) ) ( ADVP-TMP ( NP ( CD two ) ( NNS years ) ) ( RB ago ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Justice Department 's view is shared by other lawyers and at least one member of the court Judge H. Robert Mayer a former civil litigator who served at the claims court trial level before he was appointed to the Federal Circuit two years ago


( S-6 ( NP-SBJ-2 ( PRP I ) ) ( VP ( VBP believe ) ( SBAR ( IN that ) ( S ( NP-SBJ-4 ( DT any ) ( JJ good ) ( NN lawyer ) ) ( VP ( MD should ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VP ( VB figure ) ( PRT ( RP out ) ) ) ( CC and ) ( VP ( VB understand ) ) ( NP-5 ( NN patent ) ( NN law ) ) ) ) ) ) ) ) ) ) ( PRN ( S ( NP-SBJ ( NNP Judge ) ( NNP Mayer ) ) ( VP ( VBZ says ) ) ) ) ( S-ADV ( VP ( VBG adding ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT the ) ( NN responsibility ) ) ( PP ( IN of ) ( NP ( NP ( ADJP ( RB highly ) ( VBN paid ) ) ( NNS lawyers ) ) ( PRN ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP argue ) ( PP-LOC ( IN before ) ( NP ( DT the ) ( NN court ) ) ) ) ) ) ) ) ) ) ( S-3 ( VP ( TO to ) ( VP ( VB make ) ( S ( NP-SBJ ( PRP us ) ) ( VP ( VB understand ) ( NP ( JJ complex ) ( NN patent ) ( NN litigation ) ) ) ) ) ) ) ) ) ) ) ) ) )

I believe that any good lawyer should be able to figure out and understand patent law Judge Mayer says adding that it 's the responsibility of highly paid lawyers who argue before the court to make us understand complex patent litigation


( S ( CC Yet ) ( NP-SBJ ( DT some ) ( NNS lawyers ) ) ( VP ( VBP point ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( NNP Eli ) ( NNP Lilly ) ( CC & ) ( NNP Co. ) ) ( NN vs. ) ( NP ( NNP Medtronic ) ( NNP Inc. ) ) ) ( NP ( NP ( DT the ) ( NN patent ) ( NN infringement ) ( NN case ) ) ( SBAR ( S ( NP-SBJ-3 ( DT the ) ( NNP Supreme ) ( NNP Court ) ) ( NP-TMP ( DT this ) ( NN month ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB review ) ) ) ) ) ) ) ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT an ) ( NN example ) ) ( PP ( IN of ) ( NP ( NP ( JJ poor ) ( JJ legal ) ( NN reasoning ) ) ( PP ( IN by ) ( NP ( NP ( NNS judges ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP lack ) ( NP ( JJ patent ) ( NN litigation ) ( NN experience ) ) ) ) ) ) ) ) ) ) ) ) )

Yet some lawyers point to Eli Lilly & Co. vs. Medtronic Inc. the patent infringement case the Supreme Court this month agreed to review as an example of poor legal reasoning by judges who lack patent litigation experience


( S ( NP-SBJ ( NNP Judge ) ( NNP Mayer ) ) ( VP ( VBD was ) ( RB not ) ( PP-LOC-PRD ( IN on ) ( NP ( DT the ) ( JJ three-member ) ( NN panel ) ) ) ) )

Judge Mayer was not on the three-member panel


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( NNP Lilly ) ( NN case ) ) ) ( NP-SBJ ( DT the ) ( NNS appeals ) ( NN court ) ) ( VP ( ADVP-MNR ( RB broadly ) ) ( VBD construed ) ( S ( NP-SBJ ( DT a ) ( JJ federal ) ( NN statute ) ) ( VP ( TO to ) ( VP ( VB grant ) ( NP ( NP ( NNP Medtronic ) ) ( NP ( DT a ) ( JJ medical ) ( NN device ) ( NN manufacturer ) ) ) ( NP ( NP ( DT an ) ( NN exemption ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB infringe ) ( NP ( DT a ) ( NN patent ) ) ( PP-LOC ( IN under ) ( NP ( JJ certain ) ( NNS circumstances ) ) ) ) ) ) ) ) ) ) ) ) )

In the Lilly case the appeals court broadly construed a federal statute to grant Medtronic a medical device manufacturer an exemption to infringe a patent under certain circumstances


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NNP Supreme ) ( NNP Court ) ) ( VP ( VBZ holds ) ( PP-CLR ( IN in ) ( NP ( NP ( NNP Medtronic ) ( POS 's ) ) ( NN favor ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN decision ) ) ( VP ( MD will ) ( VP ( VB have ) ( NP ( JJ billion-dollar ) ( NNS consequences ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNS manufacturers ) ) ( PP ( IN of ) ( NP ( NP ( JJ medical ) ( NNS devices ) ) ( NP ( NN color ) ( CC and ) ( NN food ) ( NNS additives ) ) ( CC and ) ( NP ( NP ( DT all ) ( JJ other ) ( JJ non-drug ) ( NNS products ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD required ) ( NP ( NNP Food ) ( CC & ) ( NNP Drug ) ( NNP Administration ) ( NN approval ) ) ) ) ) ) ) ) ) ) ) ) )

If the Supreme Court holds in Medtronic 's favor the decision will have billion-dollar consequences for the manufacturers of medical devices color and food additives and all other non-drug products that required Food & Drug Administration approval


( S ( NP-SBJ ( NP ( NNP Lisa ) ( NNP Raines ) ) ( NP ( NP ( NP ( DT a ) ( NN lawyer ) ) ( CC and ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( NN government ) ( NNS relations ) ) ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( NNP Industrial ) ( NNP Biotechnical ) ( NNP Association ) ) ) ) ) ( VP ( VBZ contends ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT a ) ( NN judge ) ) ( ADJP ( JJ well-versed ) ( PP ( IN in ) ( NP ( NP ( NN patent ) ( NN law ) ) ( CC and ) ( NP ( NP ( DT the ) ( NNS concerns ) ) ( PP ( IN of ) ( NP ( JJ research-based ) ( NNS industries ) ) ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB have ) ( VP ( VBN ruled ) ( ADVP-MNR ( RB otherwise ) ) ) ) ) ) ) ) )

Lisa Raines a lawyer and director of government relations for the Industrial Biotechnical Association contends that a judge well-versed in patent law and the concerns of research-based industries would have ruled otherwise


( S ( CC And ) ( NP-SBJ ( NP ( NNP Judge ) ( NNP Newman ) ) ( NP ( DT a ) ( JJ former ) ( NN patent ) ( NN lawyer ) ) ) ( VP ( VBD wrote ) ( PP-LOC ( IN in ) ( NP ( PRP$ her ) ( NN dissent ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN court ) ) ( VP ( VBD denied ) ( NP ( NP ( DT a ) ( NN motion ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( NN rehearing ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN case ) ) ) ( PP ( IN by ) ( NP ( DT the ) ( JJ full ) ( NN court ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( NP ( DT The ) ( NN panel ) ( POS 's ) ) ( JJ judicial ) ( NN legislation ) ) ( VP ( VBZ has ) ( VP ( VBN affected ) ( NP ( DT an ) ( JJ important ) ( JJ high-technological ) ( NN industry ) ) ( PP ( IN without ) ( NP ( NP ( NN regard ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NNS consequences ) ) ( PP ( IN for ) ( NP ( NP ( NN research ) ( CC and ) ( NN innovation ) ) ( CC or ) ( NP ( DT the ) ( JJ public ) ( NN interest ) ) ) ) ) ) ) ) ) ) ) ) )

And Judge Newman a former patent lawyer wrote in her dissent when the court denied a motion for a rehearing of the case by the full court The panel 's judicial legislation has affected an important high-technological industry without regard to the consequences for research and innovation or the public interest


( SINV ( VP ( VBZ Says ) ) ( NP-SBJ ( NNP Ms. ) ( NNP Raines ) ) ( S-1 ( NP-SBJ ( DT The ) ( NN judgment ) ) ( VP ( VBZ confirms ) ( NP ( PRP$ our ) ( NN concern ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN absence ) ) ( PP ( IN of ) ( NP ( NN patent ) ( NNS lawyers ) ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN court ) ) ) ) ( VP ( MD could ) ( VP ( VB prove ) ( ADJP-PRD ( JJ troublesome ) ) ) ) ) ) ) ) ) )

Says Ms. Raines The judgment confirms our concern that the absence of patent lawyers on the court could prove troublesome


( S ( NP-SBJ ( NP ( NNP Jim ) ( NNP Pattison ) ( NNP Industries ) ( NNP Ltd. ) ) ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN group ) ) ( PP ( IN of ) ( NP ( NP ( ADJP ( RB closely ) ( VBN held ) ) ( NNS companies ) ) ( VP ( VBN owned ) ( PP ( IN by ) ( NP-LGS ( NN entrepreneur ) ( NNP James ) ( NNP Pattison ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ intends ) ( S ( VP ( TO to ) ( VP ( VB seek ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( NP ( JJ 30%-owned ) ( NNP Innopac ) ( NNP Inc. ) ) ( NP ( DT a ) ( NNP Toronto ) ( NN packaging ) ( NN concern ) ) ) ) ) ) ) ) ) ) ) ) )

Jim Pattison Industries Ltd. one of a group of closely held companies owned by entrepreneur James Pattison said it intends to seek control of 30%-owned Innopac Inc. a Toronto packaging concern


( S ( S ( NP-SBJ ( NP ( NNP Jim ) ( NNP Pattison ) ( NNP Industries ) ) ( NP ( NP ( DT a ) ( VBG holding ) ( NN company ) ) ( PP ( IN with ) ( NP ( NP ( JJ annual ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 1.9 ) ( CD billion ) ) ) ) ( PP ( ADVP ( RB largely ) ) ( IN from ) ( NP ( NP ( NN car ) ( NNS dealerships ) ) ( CC and ) ( NP ( NN grocery ) ( NNS stores ) ) ) ) ) ) ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB elaborate ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( NN statement ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT a ) ( NN company ) ( NN official ) ) ( VP ( VBD declined ) ( NP ( JJ further ) ( NN comment ) ) ) ) )

Jim Pattison Industries a holding company with annual sales of about 1.9 billion largely from car dealerships and grocery stores did n't elaborate on the statement and a company official declined further comment


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBZ holds ) ( NP ( NP ( QP ( RB about ) ( CD 4.2 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Innopac ) ( POS 's ) ) ( QP ( CD 13.8 ) ( CD million ) ) ( JJ common ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP have ) ( NP ( NP ( DT an ) ( JJ aggregate ) ( NN market ) ( NN value ) ) ( PP ( IN of ) ( NP ( NP ( QP ( RB about ) ( CD 137.8 ) ( CD million ) ) ( JJ Canadian ) ( NNS dollars ) ) ( PRN ( NP ( QP ( CD 117.3 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The company said it currently holds about 4.2 million of Innopac 's 13.8 million common shares outstanding which have an aggregate market value of about 137.8 million Canadian dollars 117.3 million


( S ( ADVP ( NNP Separately ) ) ( NP-SBJ ( NNP Innopac ) ) ( VP ( VBD reported ) ( NP ( NP ( DT a ) ( JJ fourth-quarter ) ( NN loss ) ) ( PP ( IN of ) ( NP ( NP ( QP ( RB about ) ( CD 2.6 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 18 ) ( JJ Canadian ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ( S-ADV ( VP ( VBG reflecting ) ( NP ( NN inventory ) ( NNS write-downs ) ) ) ) ) )

Separately Innopac reported a fourth-quarter loss of about 2.6 million or 18 Canadian cents a share reflecting inventory write-downs


( S ( NP-SBJ ( DT The ) ( NNS results ) ) ( VP ( VBD made ) ( S ( NP-SBJ ( NP ( JJ net ) ( NN income ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN year ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP Aug. ) ( CD 31 ) ) ) ) ) ) ( NP-PRD ( NP ( QP ( CD 2.7 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 20 ) ( JJ Canadian ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( ADVP ( RB down ) ( PP ( IN from ) ( NP ( NP ( QP ( CD 9.7 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 70 ) ( JJ Canadian ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ) ) ) )

The results made net income for the year ended Aug. 31 2.7 million or 20 Canadian cents a share down from 9.7 million or 70 Canadian cents a share last year


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( QP ( CD 291.6 ) ( CD million ) ) ) ( ADVP ( RB up ) ( PP ( IN from ) ( NP ( QP ( CD 252 ) ( CD million ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1988 ) ) ) ) ) ) ) )

Revenue was 291.6 million up from 252 million in 1988


( S ( NP-SBJ ( NP ( NNP Martin ) ( NNP Fabi ) ) ( NP ( NP ( NNP Innopac ) ( POS 's ) ) ( NX ( NX ( NN president ) ) ( CC and ) ( NX ( JJ chief ) ( NN executive ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP Innopac ) ) ( VP ( VBD viewed ) ( NP ( NP ( NNP Mr. ) ( NNP Pattison ) ( POS 's ) ) ( NN decision ) ( S ( VP ( TO to ) ( VP ( VB seek ) ( NP ( NN control ) ) ) ) ) ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( ADJP ( RB very ) ( JJ positive ) ) ( NN move ) ) ) ) ) ) ) )

Martin Fabi Innopac 's president and chief executive said Innopac viewed Mr. Pattison 's decision to seek control as a very positive move


( S ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( VBP 'm ) ( ADJP-PRD ( JJ happy ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ feels ) ( ADVP-MNR ( RB positively ) ) ( PP ( IN about ) ( NP ( PRP$ our ) ( NN company ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

I 'm happy that he feels positively about our company he said


( S ( NP-SBJ ( NNP Mr. ) ( NNP Fabi ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB say ) ( ADVP-MNR ( RB directly ) ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Pattison ) ) ( VP ( VBZ has ) ( VP ( VBN disclosed ) ( NP ( NP ( JJ potential ) ( NNS terms ) ) ( PP ( IN for ) ( NP ( NP ( PRP$ his ) ( JJ planned ) ( NN bid ) ) ( PP ( IN for ) ( NP ( NN control ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Fabi would n't say directly whether Mr. Pattison has disclosed potential terms for his planned bid for control


( S ( PP-LOC ( IN Among ) ( NP ( JJ other ) ( NNS things ) ) ) ( NP-SBJ-1 ( NNP Innopac ) ) ( VP ( VBZ is ) ( VP ( VBN involved ) ( PP-CLR ( IN in ) ( S-NOM ( VP ( VBG recycling ) ( NP ( NP ( NN polystyrene ) ( NN foam ) ( NNS products ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBP are ) ( ADVP-TMP ( RB often ) ) ( VP ( VBN used ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ fast ) ( NN food ) ( NNS chains ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP McDonald ) ( VBZ 's ) ) ( NNP Corp. ) ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NN food ) ( NN packaging ) ) ) ) ) ) ) ) ) ) ) ) ) )

Among other things Innopac is involved in recycling polystyrene foam products that are often used by fast food chains such as McDonald 's Corp. for food packaging


( S ( NP-SBJ ( NP ( DT A ) ( JJ joint ) ( NN venture ) ) ( VP ( VBG involving ) ( NP ( NP ( NNS units ) ) ( PP ( IN of ) ( NP ( NP ( NNP Innopac ) ) ( CC and ) ( NP ( NNP Mobil ) ( NNP Corp. ) ) ) ) ) ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ( VP ( VBD opened ) ( NP ( DT the ) ( JJ first ) ( NNP U.S. ) ( NN polystyrene ) ( NN recycling ) ( NN plant ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Leominster ) ) ( NP ( NNP Mass ) ) ) ) ) )

A joint venture involving units of Innopac and Mobil Corp. earlier this year opened the first U.S. polystyrene recycling plant in Leominster Mass


( S ( NP-SBJ ( NP ( DT This ) ( NN maker ) ) ( PP ( IN of ) ( NP ( JJ electronic ) ( NNS devices ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD replaced ) ( NP ( QP ( DT all ) ( CD five ) ) ( JJ incumbent ) ( NNS directors ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT a ) ( JJ special ) ( NN meeting ) ) ( VP ( VBN called ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Milton ) ( NNP B. ) ( NNP Hollander ) ) ( SBAR ( WHNP-1 ( WHNP ( WP$ whose ) ( NNP High ) ( NNP Technology ) ( NNP Holding ) ( NNP Co. ) ) ( PP ( IN of ) ( NP ( NP ( NNP Stamford ) ) ( NP-LOC ( NNP Conn. ) ) ) ) ) ( S ( VP ( VBD acquired ) ( NP ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( ADJP ( CD 49.4 ) ( NN % ) ) ( NN stake ) ) ( PP ( IN in ) ( NP ( NNP Newport ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

This maker of electronic devices said it replaced all five incumbent directors at a special meeting called by Milton B. Hollander whose High Technology Holding Co. of Stamford Conn. acquired most of its 49.4 % stake in Newport in August


( SINV ( VP-TPC-1 ( VBN Elected ) ( PP-CLR ( IN as ) ( NP ( NNS directors ) ) ) ) ( VP ( VBD were ) ) ( NP-SBJ-2 ( NP ( NNP Mr. ) ( NNP Hollander ) ) ( NP ( NNP Frederick ) ( NNP Ezekiel ) ) ( NP ( NNP Frederick ) ( NNP Ross ) ) ( NP ( NNP Arthur ) ( NNP B. ) ( NNP Crozier ) ) ( CC and ) ( NP ( NNP Rose ) ( NNP Pothier ) ) ) )

Elected as directors were Mr. Hollander Frederick Ezekiel Frederick Ross Arthur B. Crozier and Rose Pothier


( SINV ( VP-TPC-1 ( VBN Removed ) ( PP-CLR ( IN from ) ( NP ( NN office ) ) ) ) ( VP ( VBD were ) ) ( NP-SBJ-2 ( NP ( NNP George ) ( NNP Pratt ) ) ( NP ( NNP Robert ) ( NNP E. ) ( NNP Davis ) ) ( NP ( NNP Norman ) ( NNP Gray ) ) ( NP ( NP ( NNP John ) ( NNP Virtue ) ) ( NP ( JJ corporate ) ( NN secretary ) ) ) ( CC and ) ( NP ( NP ( NNP Barrett ) ( NNP B. ) ( NNP Weekes ) ) ( NP ( NP ( NN chairman ) ) ( NP ( NN president ) ) ( CC and ) ( NP ( JJ chief ) ( JJ executive ) ( NN officer ) ) ) ) ) )

Removed from office were George Pratt Robert E. Davis Norman Gray John Virtue corporate secretary and Barrett B. Weekes chairman president and chief executive officer


( S ( S ( NP-SBJ ( NNP Newport ) ( NNS officials ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB respond ) ( NP-TMP ( NNP Friday ) ) ( PP-CLR ( TO to ) ( NP ( NNS requests ) ( S ( VP ( TO to ) ( VP ( VB discuss ) ( NP ( NP ( DT the ) ( NNS changes ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( ADVP-TMP ( RB earlier ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Weekes ) ) ( VP ( VBD had ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Hollander ) ) ( VP ( VBD wanted ) ( S ( VP ( TO to ) ( VP ( VB have ) ( NP ( PRP$ his ) ( JJ own ) ( NN team ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN board ) ) ) ) ) ) ) ) ) ) ) ) )

Newport officials did n't respond Friday to requests to discuss the changes at the company but earlier Mr. Weekes had said Mr. Hollander wanted to have his own team on the board


( S ( NP-SBJ ( NNP Congress ) ) ( VP ( VBD sent ) ( PP-DTV ( TO to ) ( NP ( NNP President ) ( NNP Bush ) ) ) ( NP ( NP ( DT an ) ( ADJP ( QP ( CD 8.5 ) ( CD billion ) ) ) ( JJ military ) ( NN construction ) ( NN bill ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ cuts ) ( NP ( NP ( NN spending ) ) ( PP ( IN for ) ( NP ( JJ new ) ( NNS installations ) ) ) ) ( PP-EXT ( IN by ) ( NP ( CD 16 ) ( NN % ) ) ) ( SBAR-ADV ( IN while ) ( S ( VP ( VBG revamping ) ( NP ( DT the ) ( NNP Pentagon ) ( NN budget ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB move ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 450 ) ( CD million ) ) ) ( PP-DIR ( IN from ) ( NP ( JJ foreign ) ( NNS bases ) ) ) ( PP-DIR ( TO to ) ( NP ( JJ home-state ) ( NNS projects ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Congress sent to President Bush an 8.5 billion military construction bill that cuts spending for new installations by 16 % while revamping the Pentagon budget to move more than 450 million from foreign bases to home-state projects


( S ( S ( NP-SBJ ( DT The ) ( JJ fiscal ) ( CD 1990 ) ( NN measure ) ) ( VP ( VBZ builds ) ( PP-CLR ( IN on ) ( NP ( NP ( DT a ) ( NN pattern ) ) ( VP ( VBN set ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ( PP ( IN by ) ( NP-LGS ( NNP House ) ( CC and ) ( NNP Senate ) ( NN defense ) ( VBG authorizing ) ( NNS committees ) ) ) ) ) ) ) ) ( CC and ) ( PRN ( PP-TMP ( IN at ) ( NP ( NP ( DT a ) ( NN time ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NN retrenchment ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN military ) ) ) ) ( CC and ) ( NP ( NP ( NN concern ) ) ( PP ( IN about ) ( NP ( NP ( NP ( DT the ) ( NNP U.S. ) ( VBZ 's ) ) ( NN standing ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN world ) ( NN economy ) ) ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( JJ overseas ) ( NN spending ) ) ( VP ( VBZ is ) ( NP-PRD ( RBS most ) ( JJ vulnerable ) ) ) ) )

The fiscal 1990 measure builds on a pattern set earlier this year by House and Senate defense authorizing committees and at a time of retrenchment for the military and concern about the U.S. 's standing in the world economy overseas spending is most vulnerable


( S ( NP-SBJ-1 ( NP ( JJ Total ) ( NNP Pentagon ) ( NNS requests ) ) ( PP ( IN for ) ( NP ( NP ( NNS installations ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP West ) ( NNP Germany ) ) ( NP ( NNP Japan ) ) ( NP ( NNP South ) ( NNP Korea ) ) ( NP ( DT the ) ( NNP United ) ( NNP Kingdom ) ) ( CC and ) ( NP ( DT the ) ( NNPS Philippines ) ) ) ) ) ) ) ( PP ( IN for ) ( NP ( NN example ) ) ) ( VP ( VBP are ) ( VP ( VBN cut ) ( PP-EXT ( IN by ) ( NP ( QP ( RB almost ) ( NNS two-thirds ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NNS lawmakers ) ) ( VP ( VBD added ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ military ) ( NN budget ) ) ( PP ( IN for ) ( NP ( NN construction ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( QP ( DT all ) ( IN but ) ( DT a ) ( NN dozen ) ) ( NNS states ) ) ( PP-LOC ( IN at ) ( NP ( NN home ) ) ) ) ) ) ) ) ) ) )

Total Pentagon requests for installations in West Germany Japan South Korea the United Kingdom and the Philippines for example are cut by almost two-thirds while lawmakers added to the military budget for construction in all but a dozen states at home


( S ( NP-SBJ ( DT The ) ( NN result ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( PP ( RB instead ) ( IN of ) ( NP ( NP ( NP ( DT the ) ( NNP Pentagon ) ( POS 's ) ) ( JJ proposed ) ( NN split ) ) ( PP ( IN of ) ( ADVP ( JJ 60-40 ) ) ) ( PP ( IN between ) ( NP ( ADJP ( JJ domestic ) ( CC and ) ( JJ foreign ) ) ( NNS bases ) ) ) ) ) ( NP-SBJ-41 ( DT the ) ( JJ reduced ) ( NN funding ) ) ( VP ( VBZ is ) ( VP ( VBN distributed ) ( PP-MNR ( IN by ) ( NP ( NP ( DT a ) ( NN ratio ) ) ( PP ( IN of ) ( ADVP ( RB approximately ) ( JJ 70-30 ) ) ) ) ) ) ) ) ) ) )

The result is that instead of the Pentagon 's proposed split of 60-40 between domestic and foreign bases the reduced funding is distributed by a ratio of approximately 70-30


( S ( S ( NP-SBJ ( NP ( DT The ) ( JJ extra ) ( NN margin ) ) ( PP ( IN for ) ( NP ( NP ( NNS bases ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ) ) ( VP ( VBZ enhances ) ( NP ( NP ( DT the ) ( NN power ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS appropriations ) ( NNS committees ) ) ) ) ) ) ( S ( ADVP-TMP ( RB meanwhile ) ) ( NP-SBJ-2 ( NNS lawmakers ) ) ( VP ( VBD used ) ( NP ( PRP$ their ) ( NNS positions ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB garner ) ( SBAR-NOM ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD six ) ( NNS times ) ) ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( DT the ) ( NNP Pentagon ) ) ( VP ( VBD had ) ( VP ( VBN requested ) ( PP ( IN for ) ( NP ( PRP$ their ) ( JJ individual ) ( NNS states ) ) ) ) ) ) ) ) ) ) ) ) )

The extra margin for bases in the U.S. enhances the power of the appropriations committees meanwhile lawmakers used their positions to garner as much as six times what the Pentagon had requested for their individual states


( S ( NP-SBJ-1 ( NP ( NNP House ) ( NNP Appropriations ) ( NNP Committee ) ( NNP Chairman ) ( NNP Jamie ) ( NNP Whitten ) ) ( PRN ( NP ( NNP D. ) ) ( NP-LOC ( NNP Miss ) ) ) ) ( VP ( VBD helped ) ( S ( VP ( VB secure ) ( NP ( QP ( CD 49.7 ) ( CD million ) ) ) ( PP ( IN for ) ( NP ( PRP$ his ) ( NN state ) ) ) ( FRAG ( CC or ) ( NP ( QP ( JJR more ) ( IN than ) ( RB double ) ) ( NP ( DT the ) ( NNP Pentagon ) ( POS 's ) ) ( NN budget ) ) ) ) ) ) )

House Appropriations Committee Chairman Jamie Whitten D. Miss helped secure 49.7 million for his state or more than double the Pentagon 's budget


( S ( NP-SBJ ( NP ( NNP West ) ( NNP Virginia ) ) ( NP ( NP ( NN home ) ) ( PP ( IN of ) ( NP ( NNP Senate ) ( NNP Appropriations ) ( NNP Committee ) ( NNP Chairman ) ( NNP Robert ) ( NNP Byrd ) ) ) ) ) ( VP ( MD would ) ( VP ( VB receive ) ( NP ( NP ( QP ( CD 21.5 ) ( CD million ) ) ) ( NP ( QP ( CD four ) ( NNS times ) ) ( NP ( DT the ) ( NN military ) ( POS 's ) ) ( NN request ) ) ) ) ) )

West Virginia home of Senate Appropriations Committee Chairman Robert Byrd would receive 21.5 million four times the military 's request


( S ( NP-SBJ ( NP ( NP ( NNP Tennessee ) ) ( CC and ) ( NP ( NNP North ) ( NNP Carolina ) ) ) ( NP ( NP ( NN home ) ( NNS states ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( CD two ) ( JJ Democratic ) ( NNS chairmen ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP House ) ( CC and ) ( NNP Senate ) ( JJ military ) ( NN construction ) ( NNS subcommittees ) ) ) ) ) ) ) ( VP ( VBP receive ) ( NP ( NP ( QP ( CD 243.2 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 25 ) ( NN % ) ) ( PP ( IN above ) ( NP ( NP ( DT the ) ( NNP Pentagon ) ( POS 's ) ) ( NN request ) ) ) ) ) ) )

Tennessee and North Carolina home states of the two Democratic chairmen of the House and Senate military construction subcommittees receive 243.2 million or 25 % above the Pentagon 's request


( S ( SBAR-ADV ( IN Though ) ( S ( NP-SBJ ( NP ( NN spending ) ) ( PP ( IN for ) ( NP ( NNP Iowa ) ( CC and ) ( NNP Oregon ) ) ) ) ( VP ( VBD was ) ( ADJP-PRD ( RB far ) ( JJR less ) ) ) ) ) ( NP-SBJ ( NP ( PRP$ their ) ( NNS increases ) ) ( PP ( IN above ) ( NP ( NNP Pentagon ) ( NNS requests ) ) ) ( PRN ( NP ( NP ( NP ( CD 640 ) ( NN % ) ) ( CC and ) ( NP ( CD 430 ) ( NN % ) ) ) ( ADVP ( RB respectively ) ) ) ) ) ( VP ( VBD were ) ( ADJP-PRD ( RB much ) ( JJR greater ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( DT the ) ( NN influence ) ) ( PP ( IN of ) ( NP ( NNPS Republicans ) ) ) ( PP-LOC ( IN at ) ( NP ( JJ critical ) ( NNS junctures ) ) ) ) ) ) )

Though spending for Iowa and Oregon was far less their increases above Pentagon requests 640 % and 430 % respectively were much greater because of the influence of Republicans at critical junctures


( S ( NP-SBJ ( NP ( DT The ) ( JJ swift ) ( NN passage ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN bill ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD cleared ) ( NP ( DT the ) ( NNP Senate ) ( CC and ) ( NNP House ) ) ( PP-MNR ( IN on ) ( NP ( JJ simple ) ( NN voice ) ( NNS votes ) ) ) ( NP-TMP ( JJ last ) ( NN week ) ) ) ) ) ) ) ) ( VP ( VBZ contrasts ) ( PP-CLR ( IN with ) ( NP ( NP ( DT the ) ( NNS problems ) ) ( VP ( ADVP-TMP ( RB still ) ) ( VBG facing ) ( NP ( NP ( DT a ) ( ADJP ( RBR more ) ( JJ cumbersome ) ) ( ADJP ( QP ( CD 66.8 ) ( CD billion ) ) ) ( NN measure ) ) ( VP ( VBG funding ) ( NP ( UCP ( NN housing ) ( JJ environmental ) ( NN space ) ( CC and ) ( NNS veterans ) ) ( NNS programs ) ) ) ) ) ) ) ) )

The swift passage of the bill which cleared the Senate and House on simple voice votes last week contrasts with the problems still facing a more cumbersome 66.8 billion measure funding housing environmental space and veterans programs


( S ( S ( PP-EXT ( IN By ) ( NP ( DT an ) ( JJ 84-6 ) ( NN margin ) ) ) ( NP-SBJ ( DT the ) ( NNP Senate ) ) ( VP ( VBD approved ) ( NP ( NP ( DT the ) ( NN bulk ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN spending ) ) ) ) ( NP-TMP ( NNP Friday ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT the ) ( NN bill ) ) ( VP ( VBD was ) ( ADVP-TMP ( RB then ) ) ( VP ( VBN sent ) ( ADVP-DIR ( RB back ) ( PP ( TO to ) ( NP ( DT the ) ( NNP House ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB resolve ) ( NP ( NP ( DT the ) ( NN question ) ) ( PP ( IN of ) ( SBAR ( WHADVP-1 ( WRB how ) ) ( S ( VP ( TO to ) ( VP ( VB address ) ( NP ( NP ( NN budget ) ( NNS limits ) ) ( PP-LOC ( IN on ) ( NP ( NP ( NN credit ) ( NNS allocations ) ) ( PP ( IN for ) ( NP ( DT the ) ( NNP Federal ) ( NNP Housing ) ( NNP Administration ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

By an 84-6 margin the Senate approved the bulk of the spending Friday but the bill was then sent back to the House to resolve the question of how to address budget limits on credit allocations for the Federal Housing Administration


( S ( S ( NP-SBJ-1 ( DT The ) ( NNP House ) ( JJ Democratic ) ( NN leadership ) ) ( VP ( MD could ) ( VP ( VB seek ) ( S ( VP ( TO to ) ( VP ( VB waive ) ( NP ( DT these ) ( NNS restrictions ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT the ) ( JJ underlying ) ( NN bill ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB already ) ) ( PP-PRD ( IN under ) ( NP ( NN attack ) ) ) ( PP-PRP ( IN for ) ( NP ( NP ( NNS excesses ) ) ( ADVP-LOC ( RB elsewhere ) ) ) ) ) ) )

The House Democratic leadership could seek to waive these restrictions but the underlying bill is already under attack for excesses elsewhere


( S ( S ( NP-SBJ-1 ( NNS Appropriations ) ( NNS committees ) ) ( VP ( VBP have ) ( VP ( VBN used ) ( NP ( NP ( DT an ) ( NN assortment ) ) ( PP ( IN of ) ( NP ( NNS devices ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB disguise ) ( NP ( NP ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD 1 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NN spending ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NNS critics ) ) ( VP ( VBP have ) ( VP ( VBN awakened ) ( PP-CLR ( TO to ) ( NP ( DT these ) ( NNS devices ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN bill ) ) ( VP ( MD can ) ( VP ( VB seem ) ( PP-CLR ( IN like ) ( NP ( NP ( DT a ) ( JJ wounded ) ( NN caribou ) ) ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB make ) ( NP-CLR ( PRP it ) ) ( PP-CLR ( IN past ) ( NP ( NN ice ) ( CC and ) ( NNS wolves ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB reach ) ( NP ( JJR safer ) ( NN winter ) ( NN grazing ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Appropriations committees have used an assortment of devices to disguise as much as 1 billion in spending and as critics have awakened to these devices the bill can seem like a wounded caribou trying to make it past ice and wolves to reach safer winter grazing


( S ( NP-SBJ-3 ( NP ( JJ Much ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ excess ) ( NN spending ) ) ) ) ( VP ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN pushed ) ( PP-DIR ( IN into ) ( NP ( JJ fiscal ) ( CD 1991 ) ) ) ) ) ) ( CC and ) ( VP ( PP ( IN in ) ( NP ( DT some ) ( NNS cases ) ) ) ( VBZ is ) ( ADVP-TMP ( RB temporarily ) ) ( VP ( VBN parked ) ( PP-LOC-CLR ( IN in ) ( NP ( JJ slow-spending ) ( NNS accounts ) ) ) ( PP ( IN in ) ( NP ( NP ( NN anticipation ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN transferred ) ( PP-DIR ( TO to ) ( NP ( JJ faster-spending ) ( NNS areas ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ-2 ( DT the ) ( NN budget ) ( NN scorekeeping ) ) ( VP ( VBZ is ) ( VP ( VBN completed ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Much of the excess spending will be pushed into fiscal 1991 and in some cases is temporarily parked in slow-spending accounts in anticipation of being transferred to faster-spending areas after the budget scorekeeping is completed


( S ( PP ( IN For ) ( NP ( NN example ) ) ) ( NP-SBJ ( DT a ) ( NNP House-Senate ) ( NN conference ) ) ( ADVP ( RB ostensibly ) ) ( VP ( VBD increased ) ( NP ( NP ( DT the ) ( NNP National ) ( NNP Aeronautics ) ( CC and ) ( NNP Space ) ( NNP Administration ) ( NN budget ) ) ( PP ( IN for ) ( NP ( NP ( NN construction ) ) ( PP ( IN of ) ( NP ( NNS facilities ) ) ) ) ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( RB nearly ) ( CD 592 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 200 ) ( CD million ) ) ) ( PP ( IN above ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( DT either ) ( NN chamber ) ) ( VP ( VBD had ) ( ADVP-TMP ( RB previously ) ) ( VP ( VBN approved ) ) ) ) ) ) ) ) ) ) )

For example a House-Senate conference ostensibly increased the National Aeronautics and Space Administration budget for construction of facilities to nearly 592 million or more than 200 million above what either chamber had previously approved


( S ( NP-SBJ ( NP ( NN Part ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN increase ) ) ) ) ( VP ( MD would ) ( VP ( VB provide ) ( NP ( NP ( QP ( CD 90 ) ( CD million ) ) ) ( PP ( IN toward ) ( S-NOM ( VP ( VBG ensuring ) ( NP ( NP ( NN construction ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ costly ) ( JJ solid ) ( NN rocket-motor ) ( NN facility ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Mr. ) ( NNP Whitten ) ( POS 's ) ) ( NNP Mississippi ) ) ) ) ) ) ) ) ) ) )

Part of the increase would provide 90 million toward ensuring construction of a costly solid rocket-motor facility in Mr. Whitten 's Mississippi


( S ( CC But ) ( NP-SBJ-1 ( NP ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD 177 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( QP ( RB nearly ) ( CD 30 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN account ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN marked ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ potential ) ( NNS transfers ) ) ( PP ( TO to ) ( NP ( NP ( NN research ) ( NN management ) ( CC and ) ( NN flight ) ( NNS accounts ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBP are ) ( VP ( VBN spent ) ( PRT ( RP out ) ) ( PP-MNR ( IN at ) ( NP ( DT a ) ( JJR faster ) ( NN clip ) ) ) ) ) ) ) ) ) ) ) ) ) )

But as much as 177 million or nearly 30 % of the account is marked for potential transfers to research management and flight accounts that are spent out at a faster clip


( S ( NP-SBJ ( NP ( DT The ) ( NN bill ) ( POS 's ) ) ( NNS managers ) ) ( VP ( VBP face ) ( NP ( NN criticism ) ) ( ADVP ( RB too ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ unusual ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NNS conditions ) ) ( VP ( ADVP-MNR ( RB openly ) ) ( VBN imposed ) ( PP-CLR ( IN on ) ( SBAR-NOM ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ-1 ( NNS funds ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN spent ) ) ) ) ) ) ) ) ) ) ) ) ) )

The bill 's managers face criticism too for the unusual number of conditions openly imposed on where funds will be spent


( S ( NP-SBJ ( NP ( NNS Conservatives ) ) ( VP ( VBN embarrassed ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ Republican ) ( NN influence-peddling ) ( NNS scandals ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NNP Department ) ) ( PP ( IN of ) ( NP ( UCP ( NNP Housing ) ( CC and ) ( NNP Urban ) ) ( NNP Development ) ) ) ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN used ) ( NP ( DT the ) ( NN issue ) ) ( PP-LOC ( IN in ) ( NP ( DT an ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB shift ) ( NP ( VB blame ) ) ( PP-DIR ( IN onto ) ( NP ( DT a ) ( JJ Democratic-controlled ) ( NNP Congress ) ) ) ) ) ) ) ) ) ) )

Conservatives embarrassed by Republican influence-peddling scandals at the Department of Housing and Urban Development have used the issue in an effort to shift blame onto a Democratic-controlled Congress


( S ( NP-SBJ ( NNP HUD ) ( NNP Secretary ) ( NNP Jack ) ( NNP Kemp ) ) ( VP ( VP ( VBD backed ) ( NP ( DT an ) ( JJ unsuccessful ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB strike ) ( NP ( JJ such ) ( NN language ) ) ) ) ) ) ( NP-TMP ( JJ last ) ( NN week ) ) ) ( CC but ) ( VP ( VBD received ) ( NP ( JJ little ) ( NN support ) ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( NNP White ) ( NNP House ) ( NN budget ) ( NN office ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VP ( VBZ wants ) ( S ( VP ( TO to ) ( VP ( VB protect ) ( NP ( NP ( NN space-station ) ( NN funding ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN bill ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ has ) ( VP ( VBN tended ) ( S ( VP ( TO to ) ( VP ( VB turn ) ( NP ( PRP$ its ) ( NNS eyes ) ) ( PP-DIR ( IN from ) ( NP ( JJ pork-barrel ) ( NNS amendments ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

HUD Secretary Jack Kemp backed an unsuccessful effort to strike such language last week but received little support from the White House budget office which wants to protect space-station funding in the bill and has tended to turn its eyes from pork-barrel amendments


( S ( PP-LOC ( IN Within ) ( NP ( NP ( JJ discretionary ) ( NNS funds ) ) ( PP ( IN for ) ( NP ( NN community ) ( NN development ) ( NNS grants ) ) ) ) ) ( NP-SBJ-1 ( QP ( JJR more ) ( IN than ) ( CD 3.7 ) ( CD million ) ) ) ( VP ( VBZ is ) ( VP ( VBN allocated ) ( PP-CLR ( TO to ) ( NP ( NP ( CD six ) ( NNS projects ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Michigan ) ) ( NP ( NP ( NN home ) ( NN state ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN subcommittee ) ( NN chairman ) ) ( NP ( NNP Rep. ) ( NNP Bob ) ( NNP Traxler ) ) ) ) ) ) ) ) ) ) ) )

Within discretionary funds for community development grants more than 3.7 million is allocated to six projects in Michigan home state of a subcommittee chairman Rep. Bob Traxler


( S ( S ( NP-SBJ ( NNP House ) ( NNP Speaker ) ( NNP Thomas ) ( NNP Foley ) ) ( VP ( VBD won ) ( NP ( CD 510,000 ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( NN project ) ) ( PP-LOC ( IN in ) ( NP ( NP ( PRP$ his ) ( NN district ) ) ( PP-LOC ( IN in ) ( NP ( NNP Washington ) ( NN state ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( QP ( CD 1.3 ) ( CD million ) ) ) ( VP ( VBN earmarked ) ( PP ( IN by ) ( NP-LGS ( NNP Sen. ) ( NNP Daniel ) ( NNP Inouye ) ) ) ) ) ( VP ( VBZ amounts ) ( PP-CLR ( TO to ) ( NP ( NP ( DT a ) ( NN business ) ( NN subsidy ) ) ( PP ( IN under ) ( NP ( NP ( DT the ) ( NN title ) ) ( NP-TTL ( JJ Hawaiian ) ( NN sugar ) ( NNS mills ) ( NN job ) ( NN retention ) ) ) ) ) ) ) ) )

House Speaker Thomas Foley won 510,000 for a project in his district in Washington state and 1.3 million earmarked by Sen. Daniel Inouye amounts to a business subsidy under the title Hawaiian sugar mills job retention


( S ( NP-SBJ-2 ( DT The ) ( JJ powerful ) ( NNP Democrat ) ) ( VP ( VBD had ) ( ADVP-TMP ( RB first ) ) ( VP ( VBN wanted ) ( S ( VP ( TO to ) ( VP ( VB add ) ( NP ( NP ( NN language ) ) ( VP ( VBG relaxing ) ( NP ( NP ( JJ environmental ) ( NNS restrictions ) ) ( PP-LOC ( IN on ) ( NP ( NP ( CD two ) ( NNS mills ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN Hamakua ) ( NN coast ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP are ) ( VP ( VBG threatening ) ( S ( VP ( TO to ) ( VP ( VB close ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The powerful Democrat had first wanted to add language relaxing environmental restrictions on two mills on the Hamakua coast that are threatening to close


( S ( SBAR-TMP ( WHADVP-3 ( WRB When ) ) ( S ( NP-SBJ ( DT this ) ( NN plan ) ) ( VP ( VBD met ) ( NP ( NN resistance ) ) ) ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBD was ) ( VP ( VBN agreed ) ( ADVP ( RB instead ) ) ( S-4 ( VP ( TO to ) ( VP ( VB take ) ( NP ( NN money ) ) ( PP-CLR ( IN from ) ( NP ( NNP HUD ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB subsidize ) ( NP ( NP ( JJ needed ) ( NNS improvements ) ) ( PP-LOC ( IN in ) ( NP ( NP ( CD two ) ( NN settling ) ( NNS ponds ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNS mills ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBP employ ) ( NP ( DT an ) ( JJ estimated ) ( CD 1,500 ) ( NNS workers ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( NNP Mr. ) ( NNP Inouye ) ( POS 's ) ) ( NN office ) ) ) ) ) ) )

When this plan met resistance it was agreed instead to take money from HUD to subsidize needed improvements in two settling ponds for the mills which employ an estimated 1,500 workers according to Mr. Inouye 's office


( S ( NP-SBJ ( NP ( NNP Finnair ) ) ( NP ( NP ( NNP Finland ) ( POS 's ) ) ( JJ state-owned ) ( NN airline ) ) ) ( VP ( VP ( VBD joined ) ( NP ( NP ( DT the ) ( NN wave ) ) ( PP ( IN of ) ( NP ( JJ global ) ( NN airline ) ( NNS alliances ) ) ) ) ) ( CC and ) ( VP ( VBD signed ) ( NP ( DT a ) ( JJ wide-ranging ) ( NN cooperation ) ( NN agreement ) ) ( PP-CLR ( IN with ) ( NP ( JJ archrival ) ( NNP Scandinavian ) ( NNP Airlines ) ( NNP System ) ) ) ) ) )

Finnair Finland 's state-owned airline joined the wave of global airline alliances and signed a wide-ranging cooperation agreement with archrival Scandinavian Airlines System


( S ( PP-LOC ( IN Under ) ( NP ( DT the ) ( NN accord ) ) ) ( NP-SBJ-1 ( NNP Finnair ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB coordinate ) ( NP ( NP ( NNS flights ) ) ( NP ( NN marketing ) ) ( CC and ) ( NP ( JJ other ) ( NNS functions ) ) ) ( PP-CLR ( IN with ) ( NP ( NP ( NNP SAS ) ) ( NP ( NP ( DT the ) ( JJ 50%-state-owned ) ( NN airline ) ) ( PP ( IN of ) ( NP ( NNP Denmark ) ( NNP Norway ) ( CC and ) ( NNP Sweden ) ) ) ) ) ) ) ) ) ) )

Under the accord Finnair agreed to coordinate flights marketing and other functions with SAS the 50%-state-owned airline of Denmark Norway and Sweden


( S ( NP-SBJ ( DT The ) ( NN pact ) ) ( ADVP ( RB also ) ) ( VP ( VBZ calls ) ( PP-CLR ( IN for ) ( NP ( NP ( NN coordination ) ) ( PP ( IN between ) ( NP ( NP ( NNP Finnair ) ) ( CC and ) ( NP ( NP ( NP ( NNP Switzerland ) ( POS 's ) ) ( JJ national ) ( NN carrier ) ) ( NP ( NNP Swissair ) ) ( SBAR ( WHPP-1 ( IN with ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NNP SAS ) ) ( VP ( VBD entered ) ( NP ( DT a ) ( JJ similar ) ( NN alliance ) ) ( NP-TMP ( JJ last ) ( NN month ) ) ) ) ) ) ) ) ) ) ) )

The pact also calls for coordination between Finnair and Switzerland 's national carrier Swissair with which SAS entered a similar alliance last month


( S ( NP-SBJ ( NNP Finnair ) ( CC and ) ( NNP SAS ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP plan ) ( S ( VP ( TO to ) ( VP ( VB swap ) ( NP ( NP ( NNS stakes ) ) ( PP ( IN in ) ( NP ( DT each ) ( JJ other ) ) ) ) ) ) ) ) ) ) ) )

Finnair and SAS said they plan to swap stakes in each other


( S ( NP-SBJ ( DT Neither ) ) ( VP ( VBD disclosed ) ( NP ( NNS details ) ) ( PP ( VBG pending ) ( NP ( NP ( NN board ) ( NNS meetings ) ) ( NP-TMP ( IN next ) ( NN month ) ) ) ) ) )

Neither disclosed details pending board meetings next month


( S ( NP-SBJ ( NNS Officials ) ) ( VP ( VBD hinted ) ( ADVP ( RB however ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP SAS ) ) ( VP ( MD would ) ( VP ( VB take ) ( NP ( NP ( NP ( DT a ) ( NN stake ) ) ( PP ( IN of ) ( NP ( QP ( IN at ) ( JJS least ) ( CD 6 ) ) ( NN % ) ) ) ( PP ( IN in ) ( NP ( NNP Finnair ) ) ) ) ( VP ( VBN valued ) ( PP-CLR ( IN at ) ( NP ( QP ( RB about ) ( CD 40 ) ( CD million ) ) ) ) ( PP ( IN at ) ( NP ( JJ current ) ( NN market ) ( NNS prices ) ) ) ) ) ) ) ) ) ) )

Officials hinted however that SAS would take a stake of at least 6 % in Finnair valued at about 40 million at current market prices


( S ( S-TPC-1 ( NP-SBJ ( NNP Finnair ) ) ( VP ( MD would ) ( VP ( VB receive ) ( NP ( NP ( NNP SAS ) ( NNS shares ) ) ( VP ( VBN valued ) ( PP-CLR ( IN at ) ( NP ( DT the ) ( JJ same ) ( NN amount ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS officials ) ) ( VP ( VBD said ) ) )

Finnair would receive SAS shares valued at the same amount officials said


( S ( NP-SBJ ( NNP Shearson ) ( NNP Lehman ) ( NNP Hutton ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD applied ) ( PP-CLR ( TO to ) ( NP ( JJ Taiwanese ) ( NNS securities ) ( NNS officials ) ) ) ( PP-CLR ( IN for ) ( NP ( NN permission ) ( S ( VP ( TO to ) ( VP ( VB open ) ( NP ( NN brokerage ) ( NNS offices ) ) ( PP-LOC ( IN in ) ( NP ( NNP Taipei ) ) ) ) ) ) ) ) ) ) ) ) )

Shearson Lehman Hutton Inc. said it applied to Taiwanese securities officials for permission to open brokerage offices in Taipei


( S ( NP-SBJ ( NP ( NNP Shearson ) ( POS 's ) ) ( NN application ) ) ( VP ( VBZ is ) ( NP-PRD ( DT the ) ( JJ first ) ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ ( DT the ) ( NNP Taiwan ) ( NNPS Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ( VP ( VBD announced ) ( NP-TMP ( NNP June ) ( CD 21 ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB allow ) ( S ( NP-SBJ ( JJ foreign ) ( NN brokerage ) ( NNS firms ) ) ( VP ( TO to ) ( VP ( VB do ) ( NP ( NN business ) ) ( PP-LOC ( IN in ) ( NP ( DT that ) ( NN country ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Shearson 's application is the first since the Taiwan Securities and Exchange Commission announced June 21 that it would allow foreign brokerage firms to do business in that country


( S ( NP-SBJ-1 ( NNP Taiwan ) ( NNS officials ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB review ) ( NP ( DT the ) ( NNP Shearson ) ( NN application ) ) ( NP-TMP ( RB later ) ( DT this ) ( NN year ) ) ) ) ) ) ) )

Taiwan officials are expected to review the Shearson application later this year


( S ( PP-LOC ( IN Under ) ( NP ( JJ current ) ( NNS rules ) ) ) ( NP-SBJ ( NP ( NNS investors ) ) ( PP-LOC ( IN in ) ( NP ( NNP Taiwan ) ) ) ) ( VP ( MD can ) ( VP ( VB buy ) ( NP ( JJ overseas ) ( NNS stocks ) ) ( PP-CLR ( ADVP ( RB only ) ) ( IN through ) ( NP ( NP ( DT the ) ( NN purchase ) ) ( PP ( IN of ) ( NP ( NP ( JJ mutual ) ( NNS funds ) ) ( VP ( VBN issued ) ( PP ( IN by ) ( NP-LGS ( ADJP ( JJ local ) ( CC and ) ( JJ foreign ) ) ( NN investment ) ( NNS trusts ) ) ) ) ) ) ) ) ) ) )

Under current rules investors in Taiwan can buy overseas stocks only through the purchase of mutual funds issued by local and foreign investment trusts


( S ( NP-SBJ ( DT The ) ( JJ new ) ( NNS rules ) ) ( VP ( MD will ) ( VP ( VB allow ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( TO to ) ( VP ( VB buy ) ( NP ( JJ foreign ) ( NNS stocks ) ) ( ADVP-MNR ( RB directly ) ) ) ) ) ) ) )

The new rules will allow investors to buy foreign stocks directly


( S ( NP-SBJ ( NP ( DT A ) ( NN spokesman ) ) ( PP ( IN for ) ( NP ( NNP Shearson ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN brokerage ) ( NN service ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN directed ) ( PP-CLR ( IN at ) ( NP ( NP ( JJ individual ) ( NNS investors ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP want ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( ADJP ( JJ foreign ) ( CC and ) ( JJ domestic ) ) ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

A spokesman for Shearson said the brokerage service will be directed at individual investors who want to buy foreign and domestic stocks


( S ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT an ) ( JJ attractive ) ( NN market ) ) ( PP ( IN with ) ( NP ( JJ good ) ( NN growth ) ( NNS opportunities ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD added ) ) )

It 's an attractive market with good growth opportunities he added


( S ( S ( NP-SBJ-1 ( NP ( NNP DPC ) ( NNP Acquisition ) ( NNP Partners ) ) ( NP ( NP ( DT a ) ( NN hostile ) ( NN suitor ) ) ( PP ( IN for ) ( NP ( NNP Dataproducts ) ( NNP Corp. ) ) ) ) ) ( VP ( VBD filed ) ( NP ( DT a ) ( NN petition ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ federal ) ( NN district ) ( NN court ) ) ( PP-LOC ( IN in ) ( NP ( NNP Los ) ( NNP Angeles ) ) ) ) ) ( S-ADV ( VP ( VBG seeking ) ( S ( VP ( TO to ) ( VP ( VB have ) ( S ( NP-SBJ-2 ( NP ( PRP$ its ) ( NN standstill ) ( NN agreement ) ) ( PP ( IN with ) ( NP ( DT the ) ( NN computer ) ( NN printer ) ( NN maker ) ) ) ) ( VP ( VBN declared ) ( S ( ADJP-PRD ( NN void ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD proceeded ) ( PP-CLR ( IN with ) ( NP ( NP ( DT a ) ( ADJP ( JJ 10-a-share ) ) ( NN tender ) ( NN offer ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) )

DPC Acquisition Partners a hostile suitor for Dataproducts Corp. filed a petition in federal district court in Los Angeles seeking to have its standstill agreement with the computer printer maker declared void and it proceeded with a 10-a-share tender offer for the company


( S ( NP-SBJ ( DT The ) ( NN offer ) ) ( VP ( MD would ) ( VP ( VB give ) ( NP ( DT the ) ( NN transaction ) ) ( NP ( NP ( DT an ) ( JJ indicated ) ( NN value ) ) ( PP ( IN of ) ( NP ( QP ( CD 189 ) ( CD million ) ) ) ) ( PP ( VBN based ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( QP ( CD 18.9 ) ( CD million ) ) ( NNS shares ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN group ) ) ( VP ( VBZ does ) ( RB n't ) ( ADVP-TMP ( RB already ) ) ( VP ( VB own ) ) ) ) ) ) ) ) ) ) ) )

The offer would give the transaction an indicated value of 189 million based on the 18.9 million shares the group does n't already own


( S ( NP-SBJ ( NNP DPC ) ) ( VP ( VBZ holds ) ( NP ( NP ( QP ( RB about ) ( CD 7.8 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Dataproducts ) ( POS ' ) ) ( NNS shares ) ) ) ) ) )

DPC holds about 7.8 % of Dataproducts ' shares


( S ( NP-SBJ-1 ( NP ( NNS Lawyers ) ) ( VP ( VBG representing ) ( NP ( NNP DPC ) ) ) ) ( VP ( VBD declined ) ( S ( VP ( TO to ) ( VP ( VB elaborate ) ) ) ) ( S-ADV ( VP ( VBG saying ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( JJ final ) ( NN copy ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN filing ) ) ) ) ) ) ) ) ) ) ) )

Lawyers representing DPC declined to elaborate saying they did n't have a final copy of the filing


( S ( NP-SBJ ( NP ( NNP Jack ) ( NNP Davis ) ) ( NP ( NP ( NNP Dataproducts ) ( POS ' ) ) ( NN chairman ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VP ( VBD had ) ( RB n't ) ( ADVP-TMP ( RB yet ) ) ( VP ( VBN seen ) ( NP ( DT the ) ( NN filing ) ) ) ) ( CC and ) ( VP ( MD could ) ( RB n't ) ( VP ( VB comment ) ) ) ) ) ) ) )

Jack Davis Dataproducts ' chairman said he had n't yet seen the filing and could n't comment


( S ( S ( NP-SBJ ( NNP DPC ) ) ( VP ( VBD made ) ( NP ( NP ( DT a ) ( ADJP ( JJ 15-a-share ) ) ( NN bid ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN company ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP May ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NNP Dataproducts ) ( NN management ) ) ( VP ( VBD considered ) ( S ( NP-SBJ ( DT the ) ( ADJP ( QP ( CD 283.7 ) ( CD million ) ) ) ( NN proposal ) ) ( ADJP-PRD ( JJ unacceptable ) ) ) ) ) )

DPC made a 15-a-share bid for the company in May but Dataproducts management considered the 283.7 million proposal unacceptable


( S ( S ( NP-SBJ ( NNP Dataproducts ) ) ( VP ( VBD had ) ( VP ( VBN sought ) ( NP ( DT a ) ( NN buyer ) ) ( PP-TMP ( IN for ) ( NP ( JJ several ) ( NNS months ) ) ) ) ) ) ( CC but ) ( S ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB now ) ) ( PP-LOC-PRD ( IN in ) ( NP ( NP ( DT the ) ( NN midst ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN restructuring ) ( NN plan ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NN management ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB no ) ( RBR longer ) ) ( PP-PRD ( IN for ) ( NP ( NN sale ) ) ) ) ) ) ) ) ) )

Dataproducts had sought a buyer for several months but it is now in the midst of a restructuring plan and management says the company is no longer for sale


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN been ) ( NP-PRD ( NP ( NNP Kellogg ) ( NNP Co. ) ( POS 's ) ) ( NN year ) ) ) ) )

This has n't been Kellogg Co. 's year


( S ( NP-SBJ ( DT The ) ( NN oat-bran ) ( NN craze ) ) ( VP ( VBZ has ) ( VP ( VBN cost ) ( NP ( NP ( DT the ) ( NN world ) ( POS 's ) ) ( JJS largest ) ( NN cereal ) ( NN maker ) ) ( NP ( NN market ) ( NN share ) ) ) ) )

The oat-bran craze has cost the world 's largest cereal maker market share


( S ( NP-SBJ ( NP ( DT The ) ( NN company ) ( POS 's ) ) ( NN president ) ) ( VP ( VBD quit ) ( ADVP-MNR ( RB suddenly ) ) ) )

The company 's president quit suddenly


( S ( CC And ) ( ADVP-TMP ( RB now ) ) ( NP-SBJ ( NNP Kellogg ) ) ( VP ( VBZ is ) ( VP ( ADVP-MNR ( RB indefinitely ) ) ( VBG suspending ) ( NP ( NP ( NN work ) ) ( PP ( IN on ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( VP ( VBD was ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( ADJP ( QP ( CD 1 ) ( CD billion ) ) ) ( NN cereal ) ( NN plant ) ) ) ) ) ) ) ) ) ) ) ) )

And now Kellogg is indefinitely suspending work on what was to be a 1 billion cereal plant


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( VP ( VBG delaying ) ( NP ( NN construction ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( JJ current ) ( NN market ) ( NNS conditions ) ) ) ) ) ) ) ) )

The company said it was delaying construction because of current market conditions


( S ( CC But ) ( S ( NP-SBJ-1 ( DT the ) ( NAC-LOC ( NNP Memphis ) ( NNP Tenn. ) ) ( NN facility ) ) ( VP ( VBD was ) ( RB n't ) ( S ( VP ( TO to ) ( VP ( VB begin ) ( S ( VP ( VBG turning ) ( PRT ( RP out ) ) ( NP ( NN product ) ) ) ) ( PP-TMP ( IN until ) ( NP ( CD 1993 ) ) ) ) ) ) ) ) ( IN so ) ( S ( NP-SBJ ( DT the ) ( NN decision ) ) ( VP ( MD may ) ( VP ( VB reveal ) ( NP ( DT a ) ( ADJP ( RBR more ) ( JJ pessimistic ) ) ( JJ long-term ) ( NN outlook ) ) ( ADVP ( RB as ) ( RB well ) ) ) ) ) )

But the Memphis Tenn. facility was n't to begin turning out product until 1993 so the decision may reveal a more pessimistic long-term outlook as well