( S ( NP-SBJ-1 ( DT The ) ( NNP Fed ) ) ( VP ( VBZ is ) ( VP ( ADVP-MNR ( RB easily ) ) ( VBN assigned ) ( NP ( NP ( DT the ) ( NN blame ) ) ( PP ( IN for ) ( NP ( NP ( NN unpleasantness ) ) ( PP ( IN like ) ( NP ( NP ( JJ high ) ( NN interest ) ( NNS rates ) ) ( CC or ) ( NP ( JJ slow ) ( JJ economic ) ( NN growth ) ) ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( DT the ) ( NNS politicians ) ) ( VP ( MD can ) ( VP ( VB escape ) ( NP ( NN responsibility ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG pointing ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NNP Fed ) ( POS 's ) ) ( NN independence ) ) ) ) ) ) ) ) ) ) ) ) )

The Fed is easily assigned the blame for unpleasantness like high interest rates or slow economic growth while the politicians can escape responsibility by pointing to the Fed 's independence


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ leads ) ( PP-CLR ( TO to ) ( NP ( NP ( NNS proposals ) ) ( PP ( IN for ) ( NP ( NP ( NN reform ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Fed ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP have ) ( NP ( NP ( DT the ) ( JJ common ) ( NN feature ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG making ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( ADJP-PRD ( ADJP ( RBR more ) ( JJ responsive ) ) ( PP ( PP ( TO to ) ( NP ( DT the ) ( NN administration ) ) ) ( PP ( TO to ) ( NP ( DT the ) ( NNP Congress ) ) ) ( CC and ) ( PP ( TO to ) ( NP ( JJ public ) ( NN opinion ) ) ) ) ) ) ( PP ( IN without ) ( ADVP ( RB however ) ) ( NP ( NP ( DT any ) ( NN assumption ) ) ( PP ( IN of ) ( NP ( JJ additional ) ( NN responsibility ) ) ) ( PP ( IN by ) ( NP ( DT the ) ( NNS politicians ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

This leads to proposals for reform of the Fed which have the common feature of making the Fed more responsive to the administration to the Congress and to public opinion without however any assumption of additional responsibility by the politicians


( S ( NP-SBJ ( DT These ) ( NNS proposals ) ) ( VP ( VBP include ) ( S ( VP ( VP ( VBG changing ) ( NP ( NP ( DT the ) ( NN term ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN chairman ) ) ) ) ) ( VP ( VBG shortening ) ( NP ( NP ( DT the ) ( NNS terms ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS members ) ) ) ) ) ( VP ( VBG eliminating ) ( NP ( NP ( DT the ) ( NNS presidents ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Federal ) ( NNP Reserve ) ( NNPS Banks ) ) ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( JJ decision-making ) ( NN process ) ) ) ) ( VP ( VBG putting ) ( NP ( NP ( DT the ) ( NNP Secretary ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Treasury ) ) ) ) ( PP-PUT ( IN on ) ( NP ( DT the ) ( NNP Federal ) ( NNP Reserve ) ( NNP Board ) ) ) ) ( VP ( VBG having ) ( S ( NP-SBJ-1 ( DT the ) ( NNP Fed ) ) ( VP ( VBD audited ) ( PP ( IN by ) ( NP-LGS ( NP ( NP ( DT an ) ( NN arm ) ) ( PP ( IN of ) ( NP ( NNP Congress ) ) ) ) ( PRN ( NP ( DT the ) ( NNP General ) ( NNP Accounting ) ( NNP Office ) ) ) ) ) ) ) ) ( VP ( VBG putting ) ( NP ( NP ( DT the ) ( NNP Fed ) ( POS 's ) ) ( NNS expenditures ) ) ( PP-PUT ( IN in ) ( NP ( DT the ) ( NN budget ) ) ) ) ( CC and ) ( VP ( VBG requiring ) ( NP ( NP ( JJ prompt ) ( NN publication ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Fed ) ( POS 's ) ) ( NNS minutes ) ) ) ) ) ) ) ) )

These proposals include changing the term of the chairman shortening the terms of the members eliminating the presidents of the Federal Reserve Banks from the decision-making process putting the Secretary of the Treasury on the Federal Reserve Board having the Fed audited by an arm of Congress the General Accounting Office putting the Fed 's expenditures in the budget and requiring prompt publication of the Fed 's minutes


( S ( NP-SBJ ( NP ( DT Some ) ) ( PP ( IN of ) ( NP ( DT these ) ( NNS ideas ) ) ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB again ) ) ( PP-PRD ( IN under ) ( NP ( NN consideration ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Congress ) ) ) ) )

Some of these ideas are again under consideration in Congress


( S ( CC But ) ( S ( NP-SBJ ( DT these ) ( NNS proposals ) ) ( VP ( VBP do ) ( RB not ) ( VP ( VB rest ) ( PP-LOC-CLR ( IN on ) ( NP ( NP ( DT a ) ( NN view ) ) ( PP ( IN of ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( NP ( DT the ) ( NNP Fed ) ( POS 's ) ) ( NN problem ) ) ( VP ( VBZ is ) ) ) ) ) ) ) ) ) ) ( CC or ) ( S ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP do ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP rest ) ( PP-LOC-CLR ( IN on ) ( NP ( DT an ) ( JJ incorrect ) ( NN view ) ) ) ) ) )

But these proposals do not rest on a view of what the Fed 's problem is or if they do they rest on an incorrect view


( S ( S ( NP-SBJ ( PRP They ) ) ( VP ( MD would ) ( RB not ) ( VP ( VB solve ) ( NP ( DT the ) ( NN problem ) ) ) ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD would ) ( VP ( VB make ) ( S ( NP-SBJ ( PRP it ) ) ( ADJP-PRD ( JJR worse ) ) ) ) ) ) )

They would not solve the problem they would make it worse


( S ( NP-SBJ ( DT The ) ( NN problem ) ) ( VP ( VBZ is ) ( RB not ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( RB too ) ( JJ unresponsive ) ) ( PP ( TO to ) ( NP ( DT the ) ( JJ public ) ( NN interest ) ) ) ) ) ) ) ) )

The problem is not that the Fed is too unresponsive to the public interest


( S ( PP ( IN On ) ( NP ( DT the ) ( NN contrary ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( RB too ) ( JJ responsive ) ) ( PP ( TO to ) ( NP ( NP ( DT an ) ( JJ incorrect ) ( NN view ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ public ) ( NN interest ) ) ) ) ) ) ) )

On the contrary it is too responsive to an incorrect view of the public interest


( S ( NP-SBJ ( NP ( DT The ) ( NN price ) ( NN level ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB now ) ) ( ADJP-PRD ( ADJP ( QP ( IN about ) ( CD 4 ) ( CD 1\/4 ) ( NNS times ) ) ( RB as ) ( RB high ) ) ( SBAR ( IN as ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( ADVP-TMP ( NP ( CD 30 ) ( NNS years ) ) ( IN ago ) ) ) ) ) ) ) )

The price level in the U.S. is now about 4 1\/4 times as high as it was 30 years ago


( S ( PP ( IN On ) ( NP ( NN average ) ) ) ( NP-SBJ ( NP ( NN something ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD cost ) ( NP ( CD 100 ) ) ( ADVP-TMP ( NP ( CD 30 ) ( NNS years ) ) ( IN ago ) ) ) ) ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ costs ) ( NP ( CD 425 ) ) ) )

On average something that cost 100 30 years ago now costs 425


( S ( CC Or ) ( NP-SBJ ( NP ( DT a ) ( NN wage ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD was ) ( NP-PRD ( CD 100 ) ) ( ADVP-TMP ( NP ( CD 30 ) ( NNS years ) ) ( IN ago ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB buy ) ( NP ( NP ( ADJP ( QP ( RB only ) ( CD 23.53 ) ) ) ( NN worth ) ) ( PP ( IN of ) ( NP ( NN stuff ) ) ) ) ( NP-TMP ( NN today ) ) ) ) )

Or a wage that was 100 30 years ago would buy only 23.53 worth of stuff today


( S ( PP-TMP ( IN On ) ( NP ( CD two ) ( NNS occasions ) ) ) ( NP-SBJ ( DT the ) ( NN inflation ) ( NN rate ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 10 ) ) ( NN % ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ) ) )

On two occasions the inflation rate rose to more than 10 % a year


( S ( PP-TMP ( IN In ) ( NP ( DT each ) ( NN case ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN ending ) ) ( PP ( IN of ) ( NP ( DT this ) ( JJ unsustainable ) ( NN inflation ) ) ) ) ( VP ( VBD caused ) ( NP ( NP ( DT a ) ( JJ severe ) ( NN recession ) ) ( NP ( NP ( DT the ) ( CD two ) ( JJS worst ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ postwar ) ( NN period ) ) ) ) ) ) )

In each case the ending of this unsustainable inflation caused a severe recession the two worst of the postwar period


( S ( NP-SBJ ( NP ( DT The ) ( JJ enormous ) ( NN inflation ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ past ) ( CD 30 ) ( NNS years ) ) ) ) ( VP ( VBD was ) ( ADJP-PRD ( RB largely ) ( JJ due ) ( PP ( TO to ) ( NP ( JJ monetary ) ( NN policy ) ) ) ) ) )

The enormous inflation over the past 30 years was largely due to monetary policy


( S ( ADVP ( IN At ) ( JJS least ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( RB not ) ( VP ( VB have ) ( VP ( VBN happened ) ( PP ( IN without ) ( NP ( NP ( DT the ) ( NN support ) ) ( PP ( IN of ) ( NP ( NP ( JJ monetary ) ( NN policy ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD provided ) ( PP-CLR ( IN for ) ( NP ( NP ( DT a ) ( JJ 10-fold ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN money ) ( NN supply ) ) ) ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( JJ same ) ( NN period ) ) ) ) ) ) ) ) ) ) ) ) ) )

At least it would not have happened without the support of monetary policy that provided for a 10-fold increase in the money supply during the same period


( S ( CC And ) ( NP-SBJ ( NP ( DT that ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN money ) ( NN supply ) ) ) ) ( VP ( MD would ) ( RB not ) ( VP ( VB have ) ( VP ( VBN happened ) ( PP ( IN without ) ( NP ( NP ( DT the ) ( NN consent ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ) ) ) ) ) ) )

And that increase in the money supply would not have happened without the consent of the Federal Reserve


( S ( NP-SBJ ( NP ( DT The ) ( JJ basic ) ( NN problem ) ) ( PP ( IN of ) ( NP ( JJ monetary ) ( NN policy ) ) ) ( SBAR ( WHPP-2 ( TO to ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ-1 ( NP ( NN reform ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Fed ) ) ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBN addressed ) ) ) ) ) ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB prevent ) ( NP ( NP ( DT a ) ( NN recurrence ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN experience ) ) ) ) ) ) ) ) )

The basic problem of monetary policy to which reform of the Fed should be addressed is to prevent a recurrence of this experience


( S ( NP-SBJ ( EX There ) ) ( VP ( VBD were ) ( NP-PRD ( NP ( CD two ) ( JJ general ) ( NNS reasons ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ mistaken ) ( JJ monetary ) ( NN policy ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ past ) ( CD 30 ) ( NNS years ) ) ) ) ) ) ) )

There were two general reasons for the mistaken monetary policy of the past 30 years


( S ( NP ( CD 1 ) ) ( PP ( TO To ) ( NP ( DT some ) ( NN extent ) ) ) ( NP-SBJ ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ( VP ( VBD shared ) ( NP ( DT the ) ( ADJP ( JJ popular ) ( CC but ) ( JJ incorrect ) ) ( NN view ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ expansionary ) ( JJ monetary ) ( NN policy ) ) ( VP ( MD could ) ( VP ( VB yield ) ( NP ( NP ( DT a ) ( JJ net ) ( NN improvement ) ) ( PP-LOC ( IN in ) ( NP ( NN employment ) ( CC and ) ( NN output ) ) ) ) ) ) ) ) ) ) )

1 To some extent the Federal Reserve shared the popular but incorrect view that expansionary monetary policy could yield a net improvement in employment and output


( S ( NP ( CD 2 ) ) ( SBAR-LOC ( WHADVP-1 ( RB Even ) ( WRB where ) ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( VBD did ) ( RB not ) ( VP ( VB share ) ( NP ( DT this ) ( NN view ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD felt ) ( NP-PRD ( DT the ) ( NN need ) ( S ( VP ( TO to ) ( VP ( VB accommodate ) ( PP-CLR ( TO to ) ( NP ( PRP it ) ) ) ) ) ) ) ) )

2 Even where the Fed did not share this view it felt the need to accommodate to it


( S ( PP ( IN Despite ) ( NP ( NP ( PDT all ) ( DT the ) ( JJ formal ) ( NNS provisions ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( NN independence ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( NNP Fed ) ) ( VP ( VBZ seems ) ( ADVP-TMP ( RB constantly ) ) ( S ( VP ( TO to ) ( VP ( VB feel ) ( SBAR ( IN that ) ( S ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ uses ) ( NP ( PRP$ its ) ( NN independence ) ) ( ADVP-MNR ( RB too ) ( RB freely ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB lose ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) )

Despite all the formal provisions for its independence the Fed seems constantly to feel that if it uses its independence too freely it will lose it


( S ( NP-SBJ ( NP ( DT The ) ( JJ common ) ( NNS proposals ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG reforming ) ( NP ( DT the ) ( NNP Fed ) ) ) ) ) ) ( VP ( MD would ) ( ADVP ( RB only ) ) ( VP ( VB make ) ( S ( NP-SBJ ( DT the ) ( NN situation ) ) ( ADJP-PRD ( JJR worse ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD had ) ( NP ( DT any ) ( NN effect ) ) ( ADVP ( IN at ) ( DT all ) ) ) ) ) ) ) )

The common proposals for reforming the Fed would only make the situation worse if they had any effect at all


( S ( NP-SBJ ( S-NOM ( VP ( VBG Putting ) ( NP ( NP ( DT the ) ( NNP Secretary ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Treasury ) ) ) ) ( PP-PUT ( IN on ) ( NP ( NP ( DT the ) ( NNP Board ) ) ( PP ( IN of ) ( NP ( NNP Governors ) ) ) ) ) ) ) ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( VBG leading ) ( NNS proposals ) ) ( NP-TMP ( NN today ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( DT an ) ( NN example ) ) ) )

Putting the Secretary of the Treasury on the Board of Governors one of the leading proposals today is an example


( S ( NP-SBJ ( DT The ) ( NN secretary ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NP ( DT the ) ( NN world ) ( POS 's ) ) ( JJS biggest ) ( NN borrower ) ) ( PP ( IN of ) ( NP ( NN money ) ) ) ) ) )

The secretary is the world 's biggest borrower of money


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( NN built-in ) ( JJ constant ) ( NN longing ) ) ( PP ( IN for ) ( NP ( JJR lower ) ( NN interest ) ( NNS rates ) ) ) ) ) )

He has a built-in constant longing for lower interest rates


( S ( ADVP ( RB Moreover ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ political ) ( NN agent ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ political ) ( NN president ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( ADVP ( RB naturally ) ) ( VP ( VBZ gives ) ( NP-3 ( JJ extraordinary ) ( NN weight ) ) ( PP-DTV-4 ( TO to ) ( NP ( NP ( DT the ) ( NN way ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( MD will ) ( VP ( VB perform ) ( PP-TMP ( IN before ) ( NP ( DT the ) ( JJ next ) ( NN election ) ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( NP=3 ( JJR less ) ) ( PP-DTV=4 ( TO to ) ( NP ( PRP$ its ) ( JJ longer-run ) ( NN health ) ) ) ) ) ) ) ) ) ) ) )

Moreover he is a political agent of a political president who naturally gives extraordinary weight to the way the economy will perform before the next election and less to its longer-run health


( S ( NP-TMP ( DT These ) ( NNS days ) ) ( NP-SBJ ( DT the ) ( NN secretary ) ) ( VP ( VBZ suffers ) ( NP ( DT the ) ( JJ further ) ( NN disqualification ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN member ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN club ) ) ( PP ( IN of ) ( NP ( NP ( CD seven ) ( NN finance ) ( NNS ministers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VP ( VBP meet ) ( ADVP-TMP ( RB occasionally ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB decide ) ( SBAR-NOM ( WHNP-3 ( WP what ) ) ( S ( NP-SBJ ( NN exchange ) ( NNS rates ) ) ( VP ( MD should ) ( VP ( VB be ) ) ) ) ) ) ) ) ) ( SBAR-ADV ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN diversion ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( JJ real ) ( NN business ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ) ( S-5 ( VP ( TO to ) ( VP ( VB stabilize ) ( NP ( DT the ) ( NN price ) ( NN level ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

These days the secretary suffers the further disqualification that he is a member of a club of seven finance ministers who meet occasionally to decide what exchange rates should be which is a diversion from the real business of the Federal Reserve to stabilize the price level


( SBARQ ( WHADVP-1 ( WRB How ) ) ( SQ ( MD should ) ( NP-SBJ ( NP ( DT a ) ( JJ reasonable ) ( NN member ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Federal ) ( NNP Reserve ) ( NNP Board ) ) ) ) ( VP ( VB interpret ) ( NP ( DT a ) ( JJ congressional ) ( NN decision ) ( S ( VP ( TO to ) ( VP ( VB put ) ( NP ( DT the ) ( NN secretary ) ) ( PP-PUT ( IN on ) ( NP ( DT the ) ( NN board ) ) ) ) ) ) ) ) ) )

How should a reasonable member of the Federal Reserve Board interpret a congressional decision to put the secretary on the board


( SQ ( MD Could ) ( NP-SBJ ( PRP he ) ) ( ADVP ( RB plausibly ) ) ( VP ( VB interpret ) ( NP ( PRP it ) ) ( PP-CLR ( IN as ) ( NP ( NN encouragement ) ( SBAR ( IN for ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( TO to ) ( VP ( VB give ) ( NP ( JJ primary ) ( NN emphasis ) ) ( PP-DTV ( TO to ) ( S-NOM ( VP ( VBG stabilizing ) ( NP ( DT the ) ( NN price ) ( NN level ) ) ) ) ) ) ) ) ) ) ) ) )

Could he plausibly interpret it as encouragement for the Fed to give primary emphasis to stabilizing the price level


( SQ ( CC Or ) ( MD would ) ( NP-SBJ ( PRP he ) ) ( VP ( VB interpret ) ( NP ( PRP it ) ) ( PP-CLR ( IN as ) ( NP ( NN instruction ) ( S ( VP ( TO to ) ( VP ( VB give ) ( NP ( JJR more ) ( NN weight ) ) ( PP-DTV ( TO to ) ( NP ( NP ( NP ( DT these ) ( JJ other ) ( NNS objectives ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( DT the ) ( NN secretary ) ) ( VP ( VBZ represents ) ) ) ) ) ( NP ( NP ( JJ low ) ( NN interest ) ( NNS rates ) ) ( NP ( JJ short-run ) ( JJ economic ) ( NN expansion ) ) ( CC and ) ( NP ( NP ( NN stabilization ) ) ( PP ( IN of ) ( NP ( NN exchange ) ( NNS rates ) ) ) ( PP-LOC ( IN at ) ( NP ( ADJP ( RB internationally ) ( VBN managed ) ) ( NNS levels ) ) ) ) ) ) ) ) ) ) ) ) ) )

Or would he interpret it as instruction to give more weight to these other objectives that the secretary represents low interest rates short-run economic expansion and stabilization of exchange rates at internationally managed levels


( S ( NP-SBJ ( DT The ) ( NN answer ) ) ( VP ( VBZ seems ) ( ADJP-PRD ( RB perfectly ) ( JJ clear ) ) ) )

The answer seems perfectly clear


( S ( ADVP ( JJ True ) ) ( NP-SBJ ( NP ( DT a ) ( NN succession ) ) ( PP ( IN of ) ( NP ( NNP Fed ) ( NNS chairmen ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN given ) ( NP ( NN color ) ) ( PP-DTV ( TO to ) ( NP ( DT the ) ( NN notion ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NNP Secretary ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Treasury ) ) ) ) ( VP ( VBZ belongs ) ( PP-LOC-CLR ( IN on ) ( NP ( DT the ) ( NNP Fed ) ) ) ) ) ) ) ) ) ) )

True a succession of Fed chairmen has given color to the notion that the Secretary of the Treasury belongs on the Fed


( S ( PP-MNR ( IN By ) ( NP ( PRP$ their ) ( JJ constant ) ( NN readiness ) ( S ( VP ( TO to ) ( VP ( VB advise ) ( NP ( DT all ) ( CC and ) ( JJ sundry ) ) ( PP-CLR ( IN about ) ( NP ( JJ federal ) ( JJ budgetary ) ( NNS matters ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNS chairmen ) ) ( VP ( VBP have ) ( VP ( VBN encouraged ) ( NP ( DT the ) ( NN belief ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NP ( JJ fiscal ) ( NN policy ) ) ( CC and ) ( NP ( JJ monetary ) ( NN policy ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( NNS ingredients ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ common ) ( NN stew ) ) ) ) ( SBAR-ADV ( WHPP-3 ( IN in ) ( WHNP ( WDT which ) ( NN case ) ) ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ natural ) ) ( SBAR-2 ( IN that ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NNP Fed ) ) ( CC and ) ( NP ( DT the ) ( NNP Treasury ) ) ( CC and ) ( RB probably ) ( RB also ) ( NP ( DT the ) ( NNP Congress ) ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( ADVP-MNR ( RB jointly ) ) ( VBN engaged ) ( PP-CLR ( IN in ) ( S-NOM ( VP ( VBG stirring ) ( NP ( DT the ) ( NN pot ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

By their constant readiness to advise all and sundry about federal budgetary matters the chairmen have encouraged the belief that fiscal policy and monetary policy are ingredients of a common stew in which case it is natural that the Fed and the Treasury and probably also the Congress should be jointly engaged in stirring the pot


( S ( NP-SBJ ( NP ( NP ( DT The ) ( NNP Fed ) ( POS 's ) ) ( NN case ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( JJ own ) ( NN independence ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( NP ( DT a ) ( RB little ) ) ( JJR stronger ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( RBR more ) ( JJ solicitous ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN independence ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN rest ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN government ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Fed 's case for its own independence would be a little stronger if it were more solicitous of the independence of the rest of the government


( S ( NP-SBJ ( NP ( DT The ) ( NNP Fed ) ( POS 's ) ) ( NN problem ) ) ( VP ( VBZ is ) ( RB not ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( RB too ) ( JJ independent ) ) ( CC or ) ( ADJP ( RB too ) ( JJ unpolitical ) ) ) ) ) ) ) )

The Fed 's problem is not that it is too independent or too unpolitical


( S ( NP-SBJ-2 ( DT The ) ( NNP Fed ) ) ( VP ( VP ( VBZ is ) ( ADJP-PRD ( JJ responsive ) ( PP ( TO to ) ) ) ) ( CC and ) ( VP ( MD can ) ( RB not ) ( VP ( VB help ) ( S ( VP ( VBG being ) ( ADJP-PRD ( JJ responsive ) ( PP ( TO to ) ) ) ) ) ) ) ( NP-1 ( NP ( DT the ) ( ADJP ( JJR more ) ( RB overtly ) ( JJ political ) ) ( NN part ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN government ) ) ) ) ) )

The Fed is responsive to and can not help being responsive to the more overtly political part of the government


( S ( NP-SBJ ( DT The ) ( NNP Fed ) ) ( VP ( VBZ exercises ) ( NP ( NP ( DT a ) ( NN power ) ) ( VP ( VBN given ) ( PP-DTV ( TO to ) ( NP ( PRP it ) ) ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Congress ) ) ( CC and ) ( NP ( DT the ) ( NN president ) ) ) ) ) ) ) )

The Fed exercises a power given to it by Congress and the president


( S ( CC But ) ( NP-SBJ ( NP ( NNP Congress ) ) ( CC and ) ( NP ( DT the ) ( NN president ) ) ) ( VP ( VBP accept ) ( NP ( NP ( DT no ) ( NN responsibility ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN exercise ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN power ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( VP ( VBN given ) ( NP ( DT the ) ( NNP Fed ) ) ) ) ) ) ) ) ) ) ) ) )

But Congress and the president accept no responsibility for the exercise of the power they have given the Fed


( S ( NP-SBJ-1 ( NP ( NNS Critics ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ present ) ( NN arrangement ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ correct ) ( S ( VP ( TO to ) ( VP ( VB say ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ undemocratic ) ) ) ) ) ) ) ) ) ) )

Critics of the present arrangement are correct to say that it is undemocratic


( S ( SBAR-NOM-SBJ ( WHNP-2 ( WP What ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ undemocratic ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN unwillingness ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( ADJP ( RBR more ) ( JJ political ) ) ( NNS parts ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN government ) ) ) ) ) ( S-5 ( VP ( TO to ) ( VP ( VB take ) ( NP ( NP ( DT the ) ( NN responsibility ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG deciding ) ( NP ( NP ( DT the ) ( JJ basic ) ( NN question ) ) ( PP ( IN of ) ( NP ( JJ monetary ) ( NN policy ) ) ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( VP ( VBZ is ) ( SBAR-PRD ( WHNP-4 ( WDT what ) ( NN priority ) ) ( S ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBN given ) ( PP-DTV ( TO to ) ( S-NOM ( VP ( VBG stabilizing ) ( NP ( DT the ) ( NN price ) ( NN level ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

What is undemocratic is the unwillingness of the more political parts of the government to take the responsibility for deciding the basic question of monetary policy which is what priority should be given to stabilizing the price level


( S ( S-NOM-SBJ ( VP ( TO To ) ( VP ( VB leave ) ( NP ( DT this ) ( NN decision ) ) ( PP-CLR ( TO to ) ( NP ( DT an ) ( JJ independent ) ( NN agency ) ) ) ) ) ) ( VP ( VBZ is ) ( RB not ) ( RB only ) ( ADJP-PRD ( JJ undemocratic ) ) ) )

To leave this decision to an independent agency is not only undemocratic


( S ( NP-SBJ ( PRP It ) ) ( ADVP ( RB also ) ) ( VP ( VBZ prevents ) ( NP ( NP ( DT the ) ( NN conduct ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN policy ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ has ) ( NP ( DT a ) ( JJ long-term ) ( NN rationale ) ) ) ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ leaves ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( VBG guessing ) ( PP-CLR ( IN about ) ( SBAR ( WHNP-2 ( WP what ) ) ( S ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( NNS expectations ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( NNS masters ) ) ( NP ( DT the ) ( NNS politicians ) ) ( SBAR ( WHNP-3 ( WP who ) ) ( S ( VP ( VBP have ) ( ADVP-TMP ( RB never ) ) ( VP ( VBN had ) ( S ( VP ( TO to ) ( VP ( VB consider ) ( NP ( NP ( DT the ) ( JJ long-term ) ( NNS consequences ) ) ( PP ( IN of ) ( NP ( JJ monetary ) ( NN policy ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It also prevents the conduct of a policy that has a long-term rationale because it leaves the Fed guessing about what are the expectations of its masters the politicians who have never had to consider the long-term consequences of monetary policy


( S ( NP-SBJ ( NP ( DT The ) ( JJS greatest ) ( NN contribution ) ) ( SBAR ( S ( NP-SBJ ( NNP Congress ) ) ( VP ( MD could ) ( VP ( VB make ) ( PP-TMP ( IN at ) ( NP ( DT this ) ( NN time ) ) ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( S-PRD ( VP ( TO to ) ( VP ( VB declare ) ( SBAR ( IN that ) ( S ( S-NOM-SBJ ( VP ( VBG stabilizing ) ( NP ( DT the ) ( NN price ) ( NN level ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJ primary ) ( NN responsibility ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Federal ) ( NNP Reserve ) ( NNP System ) ) ) ) ) ) ) ) ) ) ) ) )

The greatest contribution Congress could make at this time would be to declare that stabilizing the price level is the primary responsibility of the Federal Reserve System


( S ( NP-SBJ-1 ( NP ( NN Legislation ) ) ( PP ( TO to ) ( NP ( DT this ) ( NN effect ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN introduced ) ( PP-LOC ( IN in ) ( NP ( NNP Congress ) ) ) ( PP-TMP ( IN in ) ( NP ( DT this ) ( NN session ) ) ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Rep. ) ( NNP Stephen ) ( NNP Neal ) ) ( PRN ( NP ( NP ( NNP D. ) ) ( NP-LOC ( NNP N.C ) ) ) ) ) ) ) ) ) )

Legislation to this effect has been introduced in Congress in this session by Rep. Stephen Neal D. N.C


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ is ) ( RB not ) ( NP-PRD ( NP ( DT the ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NN thing ) ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN enacted ) ) ) ) ) ) ) ) ) ) ( ADVP ( RB however ) ) ) )

It is not the kind of thing that is likely to be enacted however


( S ( S ( NP-SBJ-1 ( NNP Congress ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN required ) ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( DT a ) ( JJ hard ) ( NN decision ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( NNP Congress ) ) ( VP ( MD would ) ( VP ( ADVP ( RB much ) ) ( VB prefer ) ( S ( VP ( TO to ) ( VP ( VP ( VB leave ) ( NP ( DT the ) ( JJ hard ) ( NN decision ) ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NNP Fed ) ) ) ) ( CC and ) ( VP ( VB retain ) ( NP ( NP ( PRP$ its ) ( NNS rights ) ) ( PP ( IN of ) ( NP ( NP ( NN complaint ) ) ( PP-TMP ( IN after ) ( NP ( DT the ) ( NN fact ) ) ) ) ) ) ) ) ) ) ) ) ) )

Congress would be required to make a hard decision and Congress would much prefer to leave the hard decision to the Fed and retain its rights of complaint after the fact


( S ( NP-SBJ ( NNS People ) ) ( VP ( MD will ) ( VP ( VB say ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN nation ) ) ( CC and ) ( NP ( DT the ) ( NN government ) ) ) ( VP ( VBP have ) ( NP ( JJ other ) ( NNS objectives ) ) ( PP ( IN in ) ( NP ( NP ( NN addition ) ) ( PP ( TO to ) ( S-NOM ( VP ( VBG stabilizing ) ( NP ( DT the ) ( NN price ) ( NN level ) ) ) ) ) ) ) ( SBAR-ADV ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ true ) ) ) ) ) ) ) ) ) ) )

People will say that the nation and the government have other objectives in addition to stabilizing the price level which is true


( S ( CC But ) ( NP-SBJ ( DT that ) ) ( VP ( VBZ is ) ( RB not ) ( NP-PRD ( NP ( DT the ) ( JJ same ) ) ( PP ( IN as ) ( S-NOM ( VP ( VBG saying ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ( VP ( VBZ has ) ( NP ( JJ other ) ( NNS objectives ) ) ) ) ) ) ) ) ) ) )

But that is not the same as saying that the Federal Reserve has other objectives


( S ( NP-SBJ ( DT The ) ( NN government ) ) ( VP ( VBZ has ) ( NP ( NP ( JJ other ) ( NNS agencies ) ( CC and ) ( NNS instruments ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG pursuing ) ( NP ( DT these ) ( JJ other ) ( NNS objectives ) ) ) ) ) ) ) )

The government has other agencies and instruments for pursuing these other objectives


( S ( CC But ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( ADVP ( RB only ) ) ( NP ( NP ( DT the ) ( NNP Fed ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB pursue ) ( NP ( JJ price-level ) ( NN stability ) ) ) ) ) ) ) ) )

But it has only the Fed to pursue price-level stability


( S ( CC And ) ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( VBZ has ) ( PP ( IN at ) ( NP ( RBS most ) ) ) ( NP ( ADJP ( RB very ) ( VBN limited ) ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( VB contribute ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN achievement ) ) ( PP ( IN of ) ( NP ( JJ other ) ( NNS objectives ) ) ) ) ) ( PP-MNR ( IN by ) ( NP ( NP ( NNS means ) ) ( ADVP ( JJ other ) ( PP ( IN than ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG stabilizing ) ( NP ( DT the ) ( NN price ) ( NN level ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

And the Fed has at most very limited ability to contribute to the achievement of other objectives by means other than by stabilizing the price level


( S ( NP-SBJ ( NP ( DT The ) ( CD two ) ( NNS objectives ) ) ( VP ( ADVP-TMP ( RBS most ) ( RB commonly ) ) ( VBN thought ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( JJ legitimate ) ( NNS competitors ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN attention ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Fed ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( JJ high ) ( NN employment ) ) ( CC and ) ( NP ( JJ rapid ) ( JJ real ) ( NN growth ) ) ) ) )

The two objectives most commonly thought to be legitimate competitors for the attention of the Fed are high employment and rapid real growth


( S ( CC But ) ( NP-SBJ ( NP ( DT the ) ( JJ main ) ( NN lesson ) ) ( PP ( IN of ) ( NP ( JJ economic ) ( NN policy ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ past ) ( CD 30 ) ( NNS years ) ) ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( VBZ compromises ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NN price-stability ) ( NN objective ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN pursuit ) ) ( PP ( IN of ) ( NP ( DT these ) ( JJ other ) ( NNS goals ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN result ) ) ( VP ( VP ( VBZ is ) ( RB not ) ( NP-PRD ( NP ( JJ high ) ( NN employment ) ) ( CC and ) ( NP ( JJ rapid ) ( NN growth ) ) ) ) ( CC but ) ( VP ( VBZ is ) ( NP-PRD ( NN inflation ) ) ) ) ) ) ) )

But the main lesson of economic policy in the past 30 years is that if the Fed compromises with the price-stability objective in the pursuit of these other goals the result is not high employment and rapid growth but is inflation


( S ( S-ADV ( NP-PRD ( NP ( DT A ) ( JJ former ) ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NN president ) ( POS 's ) ) ( NNP Council ) ) ( PP ( IN of ) ( NP ( NNP Economic ) ( NNPS Advisers ) ) ) ) ) ) ) ( NP-SBJ-1 ( NNP Mr. ) ( NNP Stein ) ) ( VP ( VBZ is ) ( NP-PRD ( DT an ) ( NNP American ) ( NNP Enterprise ) ( NNP Institute ) ( NN fellow ) ) ) )

A former chairman of the president 's Council of Economic Advisers Mr. Stein is an American Enterprise Institute fellow


( NP ( NP ( NP ( NNP Money ) ( NNP Market ) ( NNS Deposits ) ) ( NP ( SYM a ) ) ) ( NP ( CD 6.23 ) ( NN % ) ) )

Money Market Deposits a 6.23 %


( NP ( NP ( SYM a ) ) ( NP ( NP ( JJ Average ) ( NN rate ) ) ( VP ( VBN paid ) ( NP-TMP ( NN yesterday ) ) ( PP ( IN by ) ( NP-LGS ( NP ( CD 100 ) ( JJ large ) ( NNS banks ) ( CC and ) ( NNS thrifts ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( CD 10 ) ( JJS largest ) ( JJ metropolitan ) ( NNS areas ) ) ) ) ) ( SBAR-ADV ( IN as ) ( S ( VP ( VBN compiled ) ( PP ( IN by ) ( NP-LGS ( NNP Bank ) ( NNP Rate ) ( NNP Monitor ) ) ) ) ) ) ) ) )

a Average rate paid yesterday by 100 large banks and thrifts in the 10 largest metropolitan areas as compiled by Bank Rate Monitor


( NP ( NP ( SYM b ) ) ( NP ( JJ Current ) ( JJ annual ) ( NN yield ) ) )

b Current annual yield


( NP ( NP ( VBN Guaranteed ) ( NN minimum ) ) ( NP ( CD 6 ) ( NN % ) ) )

Guaranteed minimum 6 %


( S ( NP-SBJ-1 ( NNP Republic ) ( NNP New ) ( NNP York ) ( NNP Corp. ) ) ( VP ( VBD joined ) ( NP ( NP ( DT the ) ( NN list ) ) ( PP ( IN of ) ( NP ( NP ( NNS banks ) ) ( VP ( VBG boosting ) ( NP ( NP ( NNS reserves ) ) ( PP ( IN for ) ( NP ( NP ( NNS losses ) ) ( PP ( IN on ) ( NP ( NP ( NNS loans ) ) ( PP ( TO to ) ( NP ( JJ less-developed ) ( NNS countries ) ) ) ) ) ) ) ) ) ) ) ) ( S-ADV ( VP ( VP ( VBG setting ) ( PRT ( RP out ) ) ( NP ( DT a ) ( ADJP ( QP ( CD 200 ) ( CD million ) ) ) ( NN provision ) ) ) ( CC and ) ( VP ( VBG posting ) ( NP ( DT a ) ( ADJP ( QP ( CD 155.4 ) ( CD million ) ) ) ( NN third-quarter ) ( JJ net ) ( NN loss ) ) ( PP ( IN as ) ( NP ( DT a ) ( NN result ) ) ) ) ) ) ) )

Republic New York Corp. joined the list of banks boosting reserves for losses on loans to less-developed countries setting out a 200 million provision and posting a 155.4 million third-quarter net loss as a result


( S ( NP-SBJ ( DT The ) ( JJ per-share ) ( NN loss ) ) ( VP ( VBD was ) ( NP-PRD ( CD 5.32 ) ) ) )

The per-share loss was 5.32


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( ADJP ( NN year ) ( JJR earlier ) ) ( NN period ) ) ) ( NP-SBJ ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NN parent ) ) ( PP ( IN of ) ( NP ( NNP Republic ) ( NNP National ) ( NNP Bank ) ) ) ) ( VP ( VBD had ) ( NP ( NP ( JJ net ) ( NN income ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 38.7 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.12 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) )

In the year earlier period the New York parent of Republic National Bank had net income of 38.7 million or 1.12 a share


( S ( PP ( VBG Excluding ) ( NP ( DT the ) ( NN provision ) ) ) ( NP-SBJ ( NNP Republic ) ) ( VP ( VBD earned ) ( NP ( NP ( QP ( CD 44.6 ) ( CD million ) ) ) ( ADVP ( IN up ) ( NP ( CD 15 ) ( NN % ) ) ( PP ( IN from ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( IN ago ) ) ) ) ) ) )

Excluding the provision Republic earned 44.6 million up 15 % from a year ago


( S ( S-TPC-2 ( NP-SBJ ( NP ( NP ( DT The ) ( NN bank ) ( POS 's ) ) ( ADJP ( JJ medium-term ) ( CC and ) ( JJ long-term ) ) ( NNS loans ) ) ( PP ( TO to ) ( NP ( JJ less-developed ) ( NNS countries ) ) ) ) ( VP ( VBP total ) ( NP ( NP ( QP ( CD 293 ) ( CD million ) ) ) ( SBAR ( WHPP-1 ( IN of ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NP ( QP ( CD 146 ) ( CD million ) ) ) ) ( VP ( VBP are ) ( RB n't ) ( VP ( VBG accruing ) ( NP ( NN interest ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN bank ) ) ( VP ( VBD said ) ) )

The bank 's medium-term and long-term loans to less-developed countries total 293 million of which 146 million are n't accruing interest the bank said


( S ( NP-SBJ ( NP ( NP ( NNP Republic ) ( POS 's ) ) ( NN total ) ) ( PP ( IN of ) ( NP ( VBG nonperforming ) ( NNS assets ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( QP ( CD 167 ) ( CD million ) ) ) ( PP-TMP ( IN at ) ( NP ( NNP Sept. ) ( CD 30 ) ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( NP ( PRP$ its ) ( NN reserve ) ) ( PP ( IN for ) ( NP ( NN loan ) ( NNS losses ) ) ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBG standing ) ( PP-CLR-LOC ( IN at ) ( NP ( QP ( CD 357 ) ( CD million ) ) ) ) ) ) ) ) )

Republic 's total of nonperforming assets was 167 million at Sept. 30 with its reserve for loan losses now standing at 357 million


( S ( NP-SBJ ( NP ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP York ) ( NNP Co. ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD agreed ) ( PP ( IN in ) ( NP ( NN principle ) ) ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( DT the ) ( NN credit-card ) ( NN business ) ) ( PP ( IN of ) ( NP ( NP ( JJ Houston-based ) ( NNP First ) ( NNP City ) ( NNP Bancorp. ) ) ( PP ( IN of ) ( NP ( NNP Texas ) ) ) ) ) ) ( PP-CLR ( IN for ) ( NP ( QP ( IN between ) ( CD 130 ) ( CD million ) ( CC and ) ( CD 134 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) )

Bank of New York Co. said it agreed in principle to acquire the credit-card business of Houston-based First City Bancorp. of Texas for between 130 million and 134 million


( S ( NP-SBJ ( NP ( DT The ) ( NN move ) ) ( ADJP ( JJ subject ) ( PP ( TO to ) ( NP ( DT a ) ( JJ definitive ) ( NN agreement ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN trend ) ) ( PP ( IN by ) ( NP ( NP ( NN big-city ) ( NNS banks ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG buying ) ( PRT ( RP up ) ) ( NP ( NN credit-card ) ( NNS portfolios ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB expand ) ( NP ( PRP$ their ) ( NN business ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The move subject to a definitive agreement is part of a trend by big-city banks that have been buying up credit-card portfolios to expand their business


( S ( NP-TMP ( RB Just ) ( JJ last ) ( NN month ) ) ( NP-SBJ-3 ( DT a ) ( NAC ( NNP Bank ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP York ) ) ) ) ( NN subsidiary ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( DT the ) ( NN credit-card ) ( NN operation ) ) ( PP ( IN of ) ( NP ( NP ( NNP Dreyfus ) ( NNP Corp. ) ( POS 's ) ) ( NNP Dreyfus ) ( NNP Consumer ) ( NNP Bank ) ) ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 168 ) ( CD million ) ) ) ) ( NP-ADV ( NP ( DT a ) ( NN transaction ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN completed ) ( PP-TMP ( IN by ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Just last month a Bank of New York subsidiary agreed to buy the credit-card operation of Dreyfus Corp. 's Dreyfus Consumer Bank for 168 million a transaction that is expected to be completed by the end of the year


( S ( NP-SBJ ( NP ( RB First ) ( NNP City ) ( POS 's ) ) ( NN portfolio ) ) ( VP ( VBZ includes ) ( NP ( NP ( QP ( RB approximately ) ( CD 640,000 ) ) ( NNS accounts ) ) ( PP ( IN with ) ( NP ( NP ( QP ( IN about ) ( CD 550 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS loans ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) ) )

First City 's portfolio includes approximately 640,000 accounts with about 550 million in loans outstanding


( S ( NP-SBJ-2 ( NP ( NNP First ) ( NNP City ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ issues ) ( NP ( DT both ) ( NNP MasterCard ) ( CC and ) ( NNP Visa ) ( NNS cards ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN agreed ) ( S ( VP ( TO to ) ( VP ( VB act ) ( PP-CLR ( IN as ) ( NP ( DT an ) ( NN agent ) ( NN bank ) ) ) ) ) ) ) ) )

First City which issues both MasterCard and Visa cards has agreed to act as an agent bank


( S ( PP-TMP ( IN At ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ) ) ( NP-SBJ ( NP ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NP ( NNP New ) ( NNP York ) ( POS 's ) ) ( NN credit-card ) ( NN business ) ) ) ) ( VP ( VBD consisted ) ( PP-CLR ( IN of ) ( NP ( NP ( QP ( CD 2.4 ) ( CD million ) ) ( NNS accounts ) ) ( PP ( IN with ) ( NP ( NP ( QP ( CD 3.6 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS loans ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) ) ) )

At the end of the third quarter Bank of New York 's credit-card business consisted of 2.4 million accounts with 3.6 billion in loans outstanding


( S ( NP-SBJ ( NP ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP York ) ) ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB currently ) ) ( NP-PRD ( NP ( DT the ) ( JJ seventh-largest ) ( NN issuer ) ) ( PP ( IN of ) ( NP ( NN credit ) ( NNS cards ) ) ) ( PP-LOC ( IN in ) ( X ( DT the ) ) ) ) ) )

Bank of New York is currently the seventh-largest issuer of credit cards in the


( S ( NP-SBJ ( NNP First ) ( NNP City ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( VBN increased ) ( NN competition ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN credit-card ) ( NN business ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( VP ( VBN decided ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( ADVP ( CC either ) ) ( VBD had ) ( S ( VP ( TO to ) ( VP ( VP ( VB expand ) ( NP ( PRP$ its ) ( JJ own ) ( NNS holdings ) ) ( ADVP-MNR ( RB substantially ) ) ) ( CC or ) ( VP ( VB sell ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

First City said that because of increased competition in the credit-card business it had decided it either had to expand its own holdings substantially or sell them


( SINV ( S-TPC-2 ( NP-SBJ ( PRP We ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ 's ) ( NP-PRD ( DT a ) ( JJ good ) ( NN prospect ) ( SBAR ( DT that ) ( S ( NP-SBJ-1 ( NN competition ) ) ( VP ( VBZ is ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB get ) ( ADJP-PRD ( RB pretty ) ( JJ fierce ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( DT this ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP James ) ( NNP E. ) ( NNP Day ) ) ( NP ( DT a ) ( NNP First ) ( NNP City ) ( NN vice ) ( NN president ) ) ) )

We think there 's a good prospect that competition is going to get pretty fierce in this market said James E. Day a First City vice president


( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP see ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBG becoming ) ( NP-PRD ( NP ( DT a ) ( NN bargain-basement ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NN business ) ) ) ) ) ) ) )

We see it becoming a bargain-basement kind of business


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBN estimated ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN transaction ) ) ( VP ( MD would ) ( VP ( VB enhance ) ( NP ( NP ( PRP$ its ) ( NN book ) ( NN value ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD stood ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 28.55 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP-TMP ( IN on ) ( NP ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ) ( PP-EXT ( IN by ) ( NP ( NP ( QP ( RBR more ) ( IN than ) ( CD 100 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( QP ( IN about ) ( CD 4 ) ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) )

The company estimated that the transaction would enhance its book value which stood at 28.55 a share on Sept. 30 by more than 100 million or about 4 a share


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN transaction ) ) ( VP ( MD would ) ( VP ( VP ( VB bolster ) ( NP ( JJ after-tax ) ( NNS earnings ) ) ( PP-EXT ( IN by ) ( NP ( NP ( CD 3.25 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( VP ( VBN completed ) ) ) ) ) ( CC and ) ( VP ( VB boost ) ( NP ( PRP$ its ) ( JJ primary ) ( NN capital ) ( NN ratio ) ) ( PP-DIR ( TO to ) ( NP ( CD 7 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 6.63 ) ( NN % ) ) ) ) ) ) ) ) ) )

The company also said the transaction would bolster after-tax earnings by 3.25 a share when completed and boost its primary capital ratio to 7 % from 6.63 %


( S ( NP-SBJ ( NP ( NNP First ) ( NNP City ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( ADVP-TMP ( RB recently ) ) ( VP ( VBD purchased ) ( NP ( CD three ) ( JJ small ) ( NNP Texas ) ( NN banking ) ( NNS concerns ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( MD would ) ( VP ( VB use ) ( NP ( DT the ) ( NNS proceeds ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB pursue ) ( NP ( NP ( JJ additional ) ( NN expansion ) ( NNS opportunities ) ) ( UCP-LOC ( PP ( IN in ) ( NP ( DT the ) ( NN Southwest ) ) ) ( CC and ) ( ADVP ( RB elsewhere ) ) ) ) ) ) ) ) ) ) ) ) )

First City which recently purchased three small Texas banking concerns said it would use the proceeds to pursue additional expansion opportunities in the Southwest and elsewhere


( S ( SBAR-ADV ( IN With ) ( S ( NP-SBJ ( DT that ) ( NN possibility ) ) ( PP-PRD ( IN in ) ( NP ( NN mind ) ) ) ) ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN transaction ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( JJ positive ) ( NN move ) ) ( PP ( IN for ) ( NP ( NNP First ) ( NNP City ) ) ) ) ) ) ) ) )

With that possibility in mind analysts said the transaction was a positive move for First City


( SINV ( S-TPC-2 ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( MD 'll ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB move ) ( ADVP-MNR ( RBR faster ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB make ) ( NP ( NNS acquisitions ) ) ( PP-LOC ( IN in ) ( NP ( NNP Texas ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Brent ) ( NNP Erensel ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP ( IN with ) ( NP ( NNP Donaldson ) ( NNP Lufkin ) ( CC & ) ( NNP Jenrette ) ) ) ) ) )

I think they 'll be able to move faster to make acquisitions in Texas said Brent Erensel an analyst with Donaldson Lufkin & Jenrette


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( NN something ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD can ) ( VP ( VB do ) ( ADVP-MNR ( RB very ) ( RB well ) ) ) ) ) ) ) ) )

That 's something they can do very well


( S ( NP-SBJ ( NNP Clinton ) ( NNP Gas ) ( NNPS Systems ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD received ) ( NP ( DT a ) ( NN contract ) ) ( PP-CLR ( IN from ) ( NP ( NP ( NNP Timken ) ( NNP Co. ) ) ( NP-LOC ( NNP Canton ) ( NNP Ohio ) ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB manage ) ( NP ( DT the ) ( JJ natural ) ( NN gas ) ( NN purchasing ) ( NN scheduling ) ( CC and ) ( NN transportation ) ( NNS activities ) ) ( PP ( IN for ) ( NP ( NP ( NNP Timken ) ( POS 's ) ) ( NX ( NX ( CD seven ) ( NNP Ohio ) ) ( CC and ) ( NX ( CD two ) ( NNP Pennsylvania ) ) ( NX-2 ( NNS plants ) ) ) ) ) ) ) ) ) ) ) ) )

Clinton Gas Systems Inc. said it received a contract from Timken Co. Canton Ohio to manage the natural gas purchasing scheduling and transportation activities for Timken 's seven Ohio and two Pennsylvania plants


( S ( NP-SBJ-1 ( NNP Clinton ) ( CC and ) ( NNP Timken ) ) ( VP ( VBD agreed ) ( S ( RB not ) ( VP ( TO to ) ( VP ( VB disclose ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN contract ) ) ) ) ) ) ) ) )

Clinton and Timken agreed not to disclose the value of the contract


( S ( NP-SBJ ( NP ( NNP Timken ) ) ( NP ( NP ( DT a ) ( NN producer ) ) ( PP ( IN of ) ( NP ( NP ( NNS bearings ) ) ( CC and ) ( NP ( NN specialty ) ( NN steel ) ) ) ) ) ) ( ADVP-TMP ( RB already ) ) ( VP ( VBZ buys ) ( NP ( NN gas ) ) ( PP-CLR ( IN from ) ( NP ( NNP Clinton ) ) ) ) )

Timken a producer of bearings and specialty steel already buys gas from Clinton


( S ( NP-SBJ ( NNP Clinton ) ) ( VP ( VBD said ) ( PP-LOC ( IN in ) ( NP ( NNP Columbus ) ( NNP Ohio ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP$ its ) ( NNP Clinton ) ( NNP Gas ) ( NNP Marketing ) ( NN unit ) ) ( VP ( VBZ wants ) ( S ( VP ( TO to ) ( VP ( VB line ) ( PRT ( RP up ) ) ( NP ( NP ( DT a ) ( NN number ) ) ( PP ( IN of ) ( NP ( JJ such ) ( NN gas ) ( NN management ) ( NNS contracts ) ) ) ) ) ) ) ) ) ) ) )

Clinton said in Columbus Ohio that its Clinton Gas Marketing unit wants to line up a number of such gas management contracts


( S-2 ( S ( NP-SBJ ( NNS Manufacturers ) ) ( ADVP-TMP ( RB frequently ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ( NP ( NP ( NN anyone ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN specialist ) ) ( PP ( IN in ) ( NP ( JJ natural ) ( NN gas ) ) ) ) ) ) ) ) ) ) ) ( PRN ( S ( NP-SBJ ( NNP Clinton ) ) ( VP ( VBD said ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( DT a ) ( NN specialist ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNP Clinton ) ) ) ) ( VP ( MD can ) ( VP ( VB save ) ( NP ( PRP them ) ) ( NP ( NP ( JJ substantial ) ( NNS amounts ) ) ( PP ( IN of ) ( NP ( NN money ) ) ) ) ) ) ) )

Manufacturers frequently do n't have anyone who is a specialist in natural gas Clinton said and a specialist such as Clinton can save them substantial amounts of money


( S ( NP-SBJ ( DT The ) ( JJ Canadian ) ( NN government ) ) ( VP ( VBD introduced ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP House ) ) ( PP ( IN of ) ( NP ( NNP Commons ) ) ) ) ) ( NP ( NP ( NN legislation ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB extend ) ( NP ( JJ federal ) ( JJ regulatory ) ( NN authority ) ) ( PP-DIR ( IN over ) ( NP ( NP ( JJ provincial ) ( JJ government-owned ) ( NN telephone ) ( NNS utilities ) ) ( PP-LOC ( IN in ) ( NP ( NNP Alberta ) ( NNP Saskatchewan ) ( CC and ) ( NNP Manitoba ) ) ) ) ) ) ) ) ) ) ) )

The Canadian government introduced in the House of Commons legislation to extend federal regulatory authority over provincial government-owned telephone utilities in Alberta Saskatchewan and Manitoba


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN legislation ) ) ( VP ( MD would ) ( VP ( VB open ) ( NP ( NP ( DT the ) ( NN way ) ) ( PP ( IN for ) ( NP ( NP ( NP ( JJR more ) ( NN telephone ) ( NNS services ) ) ( CC and ) ( NP ( NP ( JJR more ) ( NN competition ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN telephone ) ( NN business ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( CD three ) ( NNS provinces ) ) ) ) ) ) ) ) ) ( NP-SBJ ( JJ federal ) ( NNS officials ) ) ( VP ( VBD said ) ) )

The legislation would open the way for more telephone services and more competition in the telephone business in the three provinces federal officials said


( S ( NP-SBJ ( DT The ) ( JJ federal ) ( NN government ) ( NN initiative ) ) ( VP ( VBZ follows ) ( NP ( NP ( DT a ) ( JJ recent ) ( NNP Canadian ) ( NNP Supreme ) ( NNP Court ) ( NN decision ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD held ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ major ) ( NN telephone ) ( NNS companies ) ) ( PP-LOC ( PP ( IN in ) ( NP ( NNP Alberta ) ( NNP Saskatchewan ) ( CC and ) ( NNP Manitoba ) ) ) ( CC and ) ( PP ( IN in ) ( NP ( DT the ) ( JJ Atlantic ) ( NN coast ) ( NNS provinces ) ) ) ) ) ( VP ( VBD were ) ( UCP-PRD ( NP ( JJ interprovincial ) ( NNS undertakings ) ) ( CC and ) ( ADJP ( JJ subject ) ( PP ( TO to ) ( NP ( JJ federal ) ( JJ legislative ) ( NN authority ) ) ) ) ) ) ) ) ) ) ) ) ) )

The federal government initiative follows a recent Canadian Supreme Court decision that held that the major telephone companies in Alberta Saskatchewan and Manitoba and in the Atlantic coast provinces were interprovincial undertakings and subject to federal legislative authority


( S ( ADVP-TMP ( RB Prior ) ( PP ( TO to ) ( NP ( DT the ) ( NN ruling ) ) ) ) ( NP-SBJ ( DT the ) ( JJ federal ) ( NN government ) ) ( VP ( VBD had ) ( VP ( VBN regulated ) ( NP ( NP ( RB only ) ( DT the ) ( NN telephone ) ( NNS companies ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Quebec ) ) ( NP ( NNP Ontario ) ) ( NP ( NNP British ) ( NNP Columbia ) ) ( CC and ) ( NP ( DT the ) ( NNP Northwest ) ( NNPS Territories ) ) ) ) ) ) ) )

Prior to the ruling the federal government had regulated only the telephone companies in Quebec Ontario British Columbia and the Northwest Territories


( S ( NP-SBJ ( NP ( DT The ) ( NNS governments ) ) ( PP ( IN of ) ( NP ( NNP Alberta ) ( NNP Saskatchewan ) ( CC and ) ( NNP Manitoba ) ) ) ) ( VP ( VBP have ) ( VP ( ADVP-MNR ( RB strongly ) ) ( VBN opposed ) ( NP ( NP ( JJ federal ) ( NN regulation ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NN telephone ) ( NNS companies ) ) ) ) ) ) )

The governments of Alberta Saskatchewan and Manitoba have strongly opposed federal regulation of their telephone companies


( S ( NP-SBJ ( NP ( DT The ) ( NN extension ) ) ( PP ( IN of ) ( NP ( JJ federal ) ( JJ regulatory ) ( NN authority ) ) ) ( PP ( IN over ) ( NP ( NP ( NN telephone ) ( NNS utilities ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ Atlantic ) ( NNS provinces ) ) ) ) ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN required ) ( NP ( JJ special ) ( NN legislation ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ investor-owned ) ) ) ) ) ) ) )

The extension of federal regulatory authority over telephone utilities in the Atlantic provinces has n't required special legislation because they are investor-owned


( S ( NP-SBJ ( NNP Wheeling-Pittsburgh ) ( NNP Steel ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD decided ) ( S ( VP ( TO to ) ( VP ( VB proceed ) ( PP ( IN with ) ( NP ( NP ( NN installation ) ) ( PP ( IN of ) ( NP ( JJ automatic ) ( NN gauge ) ( CC and ) ( NN shape ) ( NNS controls ) ) ) ( PP-LOC ( IN at ) ( NP ( NP ( PRP$ its ) ( JJ 60-inch ) ( NN tandem ) ( JJ cold ) ( VBG rolling ) ( NN mill ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Allenport ) ) ( NP ( NNP Pa ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Wheeling-Pittsburgh Steel Corp. said it decided to proceed with installation of automatic gauge and shape controls at its 60-inch tandem cold rolling mill in Allenport Pa


( S ( S-TPC-2 ( NP-SBJ-3 ( NP ( DT The ) ( JJ new ) ( NN equipment ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( MD will ) ( VP ( VB produce ) ( NP ( NP ( NN steel ) ( NN sheet ) ) ( PP ( IN with ) ( NP ( ADJP ( JJR more ) ( JJ uniform ) ) ( NN thickness ) ( CC and ) ( NN flatness ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB cost ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 20 ) ( CD million ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )

The new equipment which will produce steel sheet with more uniform thickness and flatness is likely to cost more than 20 million the company said


( S ( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ-2 ( DT the ) ( NN company ) ) ( ADVP ( RB last ) ) ( VP ( VBD considered ) ( S ( VP ( VBG adding ) ( NP ( DT the ) ( NN equipment ) ) ) ) ( ADVP-TMP ( NP ( CD two ) ( NNS years ) ) ( IN ago ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD estimated ) ( NP ( DT the ) ( NN cost ) ) ( PP-CLR ( IN at ) ( NP ( NP ( QP ( CD 21 ) ( CD million ) ) ) ( TO to ) ( NP ( QP ( CD 22 ) ( CD million ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-3 ( DT a ) ( NN task ) ( NN force ) ) ( VP ( MD will ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB prepare ) ( NP ( DT a ) ( VBN detailed ) ( NN plan ) ) ) ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( MD can ) ( VP ( VB predict ) ( NP ( DT the ) ( JJ current ) ( NN cost ) ) ) ) ) ) ) ) ) )

When the company last considered adding the equipment two years ago it estimated the cost at 21 million to 22 million but a task force will have to prepare a detailed plan before the company can predict the current cost


( S ( S-TPC-2 ( NP-SBJ-1 ( NP ( DT The ) ( NN time ) ( NN schedule ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG installing ) ( NP ( DT the ) ( NN equipment ) ) ) ) ) ) ( ADVP ( RB also ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN developed ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NN task ) ( NN force ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )

The time schedule for installing the equipment also will be developed by the task force the company said


( S ( NP-SBJ ( NNP McCaw ) ( NNP Cellular ) ( NNPS Communications ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD sent ) ( NP ( NP ( DT a ) ( NN letter ) ) ) ( PP-DTV ( TO to ) ( NP ( NNP LIN ) ( NNP Broadcasting ) ( NNP Corp. ) ) ) ( VP-1 ( VP ( VBG clarifying ) ( NP ( NP ( PRP$ its ) ( VBN revised ) ( NN tender ) ( NN offer ) ) ( PP ( IN for ) ( NP ( NNP LIN ) ) ) ) ) ( CC and ) ( VP ( VBG asking ) ( S ( NP-SBJ ( NNP LIN ) ) ( VP ( TO to ) ( VP ( VB conduct ) ( NP ( DT a ) ( JJ fair ) ( NN auction ) ) ) ) ) ) ) ) ) ) ) )

McCaw Cellular Communications Inc. said it sent a letter to LIN Broadcasting Corp. clarifying its revised tender offer for LIN and asking LIN to conduct a fair auction


( S ( NP-SBJ ( DT The ) ( NN letter ) ) ( ADVP ( RB apparently ) ) ( VP ( VBD came ) ( PP ( IN in ) ( NP ( NP ( NN response ) ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN request ) ) ( PP ( IN for ) ( NP ( NN clarification ) ) ) ( PP ( IN by ) ( NP ( NNP LIN ) ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN week ) ) ) ) ) ) ) )

The letter apparently came in response to a request for clarification by LIN earlier this week


( S ( NP-SBJ ( NP ( NNP LIN ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ has ) ( VP ( VBN agreed ) ( PP ( IN with ) ( NP ( NNP BellSouth ) ( NNP Corp. ) ) ) ( S ( VP ( TO to ) ( VP ( VB merge ) ( NP ( PRP$ their ) ( JJ cellular-telephone ) ( NNS businesses ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( ADVP-TMP ( RB then ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB take ) ( NP ( NP ( DT a ) ( NN position ) ) ( PP ( IN on ) ( NP ( NP ( NNP McCaw ) ( POS 's ) ) ( VBN revised ) ( NN tender ) ( NN offer ) ) ) ) ) ) ) ) ) )

LIN which has agreed with BellSouth Corp. to merge their cellular-telephone businesses said then that it would n't take a position on McCaw 's revised tender offer


( S ( NP-TMP ( RBR Earlier ) ( DT this ) ( NN month ) ) ( NP-SBJ ( NNP McCaw ) ) ( VP ( VBD revised ) ( NP ( PRP$ its ) ( NN offer ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( CD 125 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( PP ( IN for ) ( NP ( QP ( CD 22 ) ( CD million ) ) ( NNP LIN ) ( NNS shares ) ) ) ) ) ) )

Earlier this month McCaw revised its offer to 125 a share for 22 million LIN shares


( S ( S ( NP-SBJ ( NNP McCaw ) ) ( VP ( VBZ is ) ( VP ( VBG seeking ) ( NP ( NP ( CD 50.3 ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( UCP ( JJ cellular ) ( CC and ) ( VBG broadcasting ) ) ( NN concern ) ) ) ) ) ) ) ( S ( NP-SBJ ( DT the ) ( VBN revised ) ( NN offer ) ) ( VP ( VBZ includes ) ( NP ( NP ( DT a ) ( NN feature ) ) ( VP ( VBG requiring ) ( S ( NP-SBJ ( NNP McCaw ) ) ( VP ( TO to ) ( VP ( VB begin ) ( NP ( NP ( DT an ) ( NN auction ) ( NN process ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP July ) ( CD 1994 ) ) ) ( SBAR-2 ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VB buy ) ( PRT ( RP out ) ) ( NP ( VBG remaining ) ( NNS holders ) ) ( PP ( IN at ) ( NP ( NP ( DT a ) ( JJ per-share ) ( NN price ) ) ( ADJP ( RB roughly ) ( JJ equivalent ) ( PP ( TO to ) ( SBAR-NOM ( WHNP-3 ( WP what ) ) ( S ( NP-SBJ-4 ( DT a ) ( JJ third ) ( NN party ) ) ( VP ( MD might ) ( ADVP-TMP ( RB then ) ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( PP-CLR ( IN for ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( NNP LIN ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

McCaw is seeking 50.3 % of the cellular and broadcasting concern the revised offer includes a feature requiring McCaw to begin an auction process in July 1994 that would buy out remaining holders at a per-share price roughly equivalent to what a third party might then have to pay for all of LIN


( S ( NP-SBJ ( DT The ) ( NN letter ) ) ( VP ( VBZ outlines ) ( NP ( NP ( JJ broad ) ( NNS powers ) ) ( PP ( IN for ) ( NP ( NP ( DT an ) ( JJ independent ) ( NN group ) ) ( PP ( IN of ) ( NP ( NNS directors ) ) ) ) ) ( VP ( VBN provided ) ( PRT ( RP for ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( VBN revised ) ( NN offer ) ) ) ) ) ) )

The letter outlines broad powers for an independent group of directors provided for in the revised offer


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( NN statement ) ) ) ( NP-SBJ ( NP ( NNP Craig ) ( NNP O. ) ( NNP McCaw ) ) ( NP ( NP ( NP ( NN chairman ) ) ( CC and ) ( NP ( NN chief ) ( JJ executive ) ( NN officer ) ) ) ( PP ( IN of ) ( NP ( NNP McCaw ) ) ) ) ) ( VP ( VBD said ) ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP trust ) ( SBAR ( S ( NP-SBJ ( NNP LIN ) ) ( VP ( MD will ) ( VP ( VB take ) ( NP ( NP ( DT no ) ( JJ further ) ( NNS actions ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP favor ) ( NP ( NNP BellSouth ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a statement Craig O. McCaw chairman and chief executive officer of McCaw said We trust LIN will take no further actions that favor BellSouth


( S ( NP-SBJ ( NNP McCaw ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( NP ( DT the ) ( CD three ) ( JJ independent ) ( NNS directors ) ) ( VP ( VBN provided ) ( PRT ( RP for ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN offer ) ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN designated ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( JJ current ) ( NN board ) ) ) ) ) ) ) ) ) )

McCaw said the three independent directors provided for in the offer would be designated by the current board


( S ( NP-SBJ-1 ( DT The ) ( NNS successors ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN nominated ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( JJ independent ) ( NNS directors ) ) ) ) ) ) )

The successors would be nominated by the independent directors


( S ( NP-SBJ ( NNP LIN ) ) ( VP ( MD would ) ( VP ( VB have ) ( NP ( DT a ) ( NN priority ) ( NN right ) ( S ( VP ( TO to ) ( VP ( VB pursue ) ( NP ( NP ( DT all ) ( NNS opportunities ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NNP U.S. ) ( JJ cellular ) ( NNS interests ) ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNS markets ) ) ( ADJP ( JJ other ) ( PP ( IN than ) ( NP ( NP ( DT those ) ) ( SBAR ( SBAR ( WHPP-2 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NNP McCaw ) ) ( VP ( VBZ holds ) ( NP ( NP ( DT an ) ( NN interest ) ) ) ) ) ) ( CC or ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP are ) ( ADJP-PRD ( JJ contiguous ) ( PP ( TO to ) ( NP ( DT those ) ( NNS markets ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ ( NNP LIN ) ) ( VP ( VBZ has ) ( NP ( NP ( DT an ) ( NN interest ) ) ( UCP ( ADVP-LOC ( RB there ) ) ( CC or ) ( ADJP ( JJ contiguous ) ( PP ( TO to ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) )

LIN would have a priority right to pursue all opportunities to acquire U.S. cellular interests in markets other than those in which McCaw holds an interest or which are contiguous to those markets unless LIN has an interest there or contiguous to it


( S ( NP-SBJ ( JJ Independent ) ( NNS directors ) ) ( VP ( MD would ) ( VP ( VB have ) ( NP ( NP ( NN veto ) ( NNS rights ) ) ( PP ( TO to ) ( NP ( DT any ) ( NN acquisition ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( ADVP-MNR ( RB unanimously ) ) ( VBP decide ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( RB n't ) ( PP-PRD ( IN in ) ( NP ( NP ( NNP LIN ) ( POS 's ) ) ( JJS best ) ( NN interest ) ) ) ) ) ) ) ) ) ) ) )

Independent directors would have veto rights to any acquisition if they unanimously decide it is n't in LIN 's best interest


( S ( NP-SBJ-4 ( JJ Independent ) ( NNS directors ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB block ) ( NP ( NP ( NNS transactions ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( ADVP-MNR ( RB unanimously ) ) ( VBP deem ) ( SBAR ( S ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB depress ) ( NP ( NP ( DT the ) ( JJ private ) ( NN market ) ( NN value ) ) ( PP ( IN of ) ( NP ( NNP LIN ) ) ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT the ) ( NN time ) ) ( SBAR ( S ( NP-SBJ-6 ( PRP it ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN sold ) ) ) ) ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD five ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Independent directors would be able to block transactions they unanimously deem would be likely to depress the private market value of LIN at the time it is to be sold in five years


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ-1 ( NNP LIN ) ) ( VP ( VBZ is ) ( VP ( VP ( VBN put ) ( PRT ( RP up ) ) ( PP-CLR ( IN for ) ( NP ( NN sale ) ) ) ) ( CONJP ( RB rather ) ( IN than ) ) ( VP ( VBN purchased ) ( PP ( IN by ) ( NP-LGS ( NNP McCaw ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD five ) ( NNS years ) ) ) ) ) ) ) ( S ( NP-SBJ ( NNP McCaw ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB submit ) ( NP ( DT a ) ( NN bid ) ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ ( DT the ) ( JJ independent ) ( NNS directors ) ) ( VP ( VBP request ) ( NP ( PRP it ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( JJ independent ) ( NNS directors ) ) ( VP ( MD will ) ( VP ( VB run ) ( NP ( DT the ) ( NN bidding ) ) ) ) ) )

If LIN is put up for sale rather than purchased by McCaw in five years McCaw wo n't submit a bid unless the independent directors request it and the independent directors will run the bidding


( S ( NP-SBJ-1 ( DT The ) ( NNS directors ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( JJ particular ) ( NNS assets ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB enable ) ( S ( NP-SBJ ( NP ( JJ such ) ( NNS buyers ) ) ( PP ( IN as ) ( NP ( DT the ) ( JJ regional ) ( NNP Bell ) ( VBG operating ) ( NNS companies ) ) ) ) ( VP ( TO to ) ( VP ( VB purchase ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNS interests ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The directors would be able to sell particular assets to enable such buyers as the regional Bell operating companies to purchase the company 's interests


( S ( NP-SBJ ( NNP Loral ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ fiscal ) ( NN second-quarter ) ( NN net ) ( NN income ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( QP ( CD 19.8 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 79 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( JJ year-earlier ) ( NNS earnings ) ) ( PP ( IN from ) ( NP ( VBG continuing ) ( NNS operations ) ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 15.6 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 62 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) ) ) )

Loral Corp. said fiscal second-quarter net income was 19.8 million or 79 cents a share compared with year-earlier earnings from continuing operations of 15.6 million or 62 cents a share


( S ( NP-SBJ ( NP ( JJ Year-earlier ) ( NN net ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 21 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 84 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ( VP ( VBD included ) ( NP ( NP ( DT the ) ( NNS results ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Loral ) ( POS 's ) ) ( JJ former ) ( NNP Aircraft ) ( NNP Braking ) ( NNPS Systems ) ( CC and ) ( NNP Engineered ) ( NNP Fabrics ) ( NNS divisions ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBD were ) ( VP ( VBN sold ) ( NP-TMP ( NNP April ) ( CD 27 ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN chairman ) ) ( NP ( NNP Bernard ) ( NNP L. ) ( NNP Schwartz ) ) ) ) ) ) ) ) ) ) ) ) )

Year-earlier net of 21 million or 84 cents a share included the results of Loral 's former Aircraft Braking Systems and Engineered Fabrics divisions which were sold April 27 to the company 's chairman Bernard L. Schwartz


( S ( NP-SBJ ( DT The ) ( NN defense ) ( NNS electronics ) ( NN concern ) ) ( VP ( VBD attributed ) ( NP ( DT the ) ( VBG operating ) ( NN improvement ) ) ( PP-CLR ( TO to ) ( NP ( NP ( JJR higher ) ( NN profit ) ( NNS margins ) ) ( CC and ) ( NP ( JJR lower ) ( JJ net ) ( NN interest ) ( NN expense ) ) ) ) ) )

The defense electronics concern attributed the operating improvement to higher profit margins and lower net interest expense


( S ( NP-SBJ ( NNP Loral ) ) ( ADVP ( RB also ) ) ( VP ( VBD reported ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP$ its ) ( NNS bookings ) ) ( VP ( ADVP ( JJR more ) ( IN than ) ) ( VBN doubled ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 654 ) ( CD million ) ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( NN quarter ) ) ( VP ( VBD ended ) ( NP-TMP ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 257 ) ( CD million ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ year-before ) ( NN period ) ) ) ) ) ) ) ) ) )

Loral also reported that its bookings more than doubled to 654 million in the quarter ended Sept. 30 from 257 million in the year-before period


( S ( NP-SBJ ( DT The ) ( NN increase ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ due ) ( RB mainly ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 325 ) ( CD million ) ) ) ( NN order ) ) ( PP ( IN from ) ( NP ( NNP Turkey ) ) ) ( SBAR-2 ( S ( VP ( TO to ) ( VP ( VB equip ) ( NP ( NP ( PRP$ its ) ( NN fleet ) ) ( PP ( IN of ) ( NP ( CD F-16 ) ( NNS fighters ) ) ) ) ( PP-CLR ( IN with ) ( NP ( NP ( NNP Loral ) ( POS 's ) ) ( NNP ALQ-178 ) ( NNP Rapport ) ( NNP III ) ( JJ electronic ) ( NNS countermeasures ) ( NN system ) ) ) ) ) ) ) ) ) ) ) )

The increase was due mainly to a 325 million order from Turkey to equip its fleet of F-16 fighters with Loral 's ALQ-178 Rapport III electronic countermeasures system


( S ( NP-SBJ ( DT The ) ( NN order ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJS biggest ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN history ) ) ) ) ) )

The order is the biggest in the company 's history


( S ( NP-SBJ ( NP ( NNS Sales ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJS latest ) ( NN period ) ) ) ) ( VP ( VBD edged ) ( ADVP-DIR ( IN up ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 295.7 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 293.9 ) ( CD million ) ) ) ) ) )

Sales in the latest period edged up to 295.7 million from 293.9 million


( S ( NP-SBJ ( NNP Mr. ) ( NNP Schwartz ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( JJ recent ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( NNS orders ) ) ) ) ( VP ( VBZ puts ) ( NP ( PRP us ) ) ( PP-PUT ( RB well ) ( IN on ) ( NP ( NP ( DT the ) ( NN way ) ) ( PP ( TO to ) ( NP ( NP ( PRP$ our ) ( NN goal ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 1.6 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS bookings ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Schwartz said the recent increase in orders puts us well on the way to our goal of 1.6 billion in bookings for the year


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD added ) ( S ( NP-SBJ-2 ( PRP I ) ) ( VP ( VBP expect ) ( S ( VP ( TO to ) ( VP ( VB see ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS earnings ) ( NN momentum ) ) ( SBAR ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBD experienced ) ( NP-TMP ( DT this ) ( NN quarter ) ) ) ) ) ) ( VP ( VB continue ) ( PP-TMP ( IN for ) ( NP ( NP ( DT the ) ( NN rest ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) )

He added I expect to see the earnings momentum we experienced this quarter continue for the rest of the year


( S ( NP-SBJ ( NNP Loral ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( NNS sales ) ) ( VP ( TO to ) ( VP ( VB accelerate ) ( PP-TMP ( IN in ) ( NP ( NP ( PDT both ) ( DT the ) ( JJ third ) ( CC and ) ( JJ fourth ) ( NNS quarters ) ) ( PP ( IN of ) ( NP ( DT this ) ( JJ fiscal ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) )

Loral said it expects sales to accelerate in both the third and fourth quarters of this fiscal year


( S ( NP-SBJ ( NP ( NP ( NNP Loral ) ( POS 's ) ) ( NN profit ) ) ( PP ( IN from ) ( NP ( VBG continuing ) ( NNS operations ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ first ) ( CD six ) ( NNS months ) ) ( PP ( IN of ) ( NP ( JJ fiscal ) ( CD 1990 ) ) ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( QP ( CD 36.4 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.44 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP ( IN up ) ( NP ( CD 31 ) ( NN % ) ) ( PP ( IN from ) ( NP ( NP ( QP ( CD 27.8 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.11 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) )

Loral 's profit from continuing operations for the first six months of fiscal 1990 was 36.4 million or 1.44 a share up 31 % from 27.8 million or 1.11 a share a year earlier


( S ( NP-SBJ ( JJ Net ) ( NN income ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 8.6 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 37.1 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.43 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 40.6 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.56 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) )

Net income fell 8.6 % to 37.1 million or 1.43 a share from 40.6 million or 1.56 a share


( S ( NP-SBJ ( JJ Fiscal ) ( NN first-half ) ( NNS sales ) ) ( VP ( VBD slipped ) ( NP-EXT ( CD 3.9 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 528.4 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 549.9 ) ( CD million ) ) ) ) ) )

Fiscal first-half sales slipped 3.9 % to 528.4 million from 549.9 million


( S ( NP-SBJ ( NP ( NNS Bookings ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ first ) ( DT half ) ) ) ) ( VP ( VBD totaled ) ( NP ( QP ( CD 813 ) ( CD million ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( QP ( CD 432 ) ( CD million ) ) ) ( VP ( VBN recorded ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ) ) ) )

Bookings for the first half totaled 813 million compared with the 432 million recorded last year


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( JJ composite ) ( NN trading ) ) ) ( NP-SBJ ( NNP Loral ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( CD 33.25 ) ) ) ( ADVP ( IN down ) ( NP ( CD 37.5 ) ( NNS cents ) ) ) ) )

In New York Stock Exchange composite trading Loral closed at 33.25 down 37.5 cents


( S ( NP-SBJ ( NP ( DT This ) ( NN maker ) ( CC and ) ( NN marketer ) ) ( PP ( IN of ) ( NP ( NN cartridge ) ( NN tape ) ( NNS systems ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD completed ) ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 2.85 ) ( CD million ) ) ( NNS shares ) ) ( PP ( IN of ) ( NP ( JJ common ) ) ) ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 10 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( DT an ) ( JJ initial ) ( JJ public ) ( NN offering ) ) ) ) ) ) ) )

This maker and marketer of cartridge tape systems said it completed the sale of 2.85 million shares of common priced at 10 a share in an initial public offering


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG selling ) ( NP ( QP ( CD two ) ( CD million ) ) ( NNS shares ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT the ) ( NN rest ) ) ( VP ( VBP are ) ( VP ( VBG being ) ( VP ( VBN sold ) ( PP ( IN by ) ( NP-LGS ( JJ certain ) ( NNS stockholders ) ) ) ) ) ) ) ) ) ) )

The company said that it is selling two million shares and that the rest are being sold by certain stockholders


( S ( NP-SBJ-1 ( NNS Proceeds ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN used ) ( PP-CLR ( IN for ) ( NP ( NP ( NN capital ) ( NNS expenditures ) ) ( CC and ) ( NP ( VBG working ) ( NN capital ) ) ) ) ) ) ) )

Proceeds will be used for capital expenditures and working capital


( S ( NP-SBJ ( NP ( NNP Goldman ) ( NNP Sachs ) ( CC & ) ( NNP Co. ) ) ( CC and ) ( NP ( NNP Montgomery ) ( NNPS Securities ) ( NNP Inc. ) ) ) ( VP ( VBP are ) ( VP ( VBG co-managing ) ( NP ( DT the ) ( NN offering ) ) ) ) )

Goldman Sachs & Co. and Montgomery Securities Inc. are co-managing the offering


( S ( NP-SBJ ( NNP Canadian ) ( NNP Pacific ) ( NNP Ltd. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBD proposed ) ( S ( VP ( VBG acquiring ) ( NP ( NP ( DT the ) ( CD 44 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP Soo ) ( NNP Line ) ( NNP Corp. ) ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ does ) ( RB n't ) ( ADVP-TMP ( RB already ) ) ( VP ( JJ own ) ) ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( NP ( CD 19.50 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( CC or ) ( NP ( QP ( IN about ) ( CD 81.9 ) ( CD million ) ) ) ) ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG failing ) ( S ( VP ( TO to ) ( VP ( VB find ) ( NP ( NP ( DT a ) ( NN buyer ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( NN majority ) ( NN stake ) ) ) ) ) ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ) ) ) ) ) ) ) )

Canadian Pacific Ltd. said it proposed acquiring the 44 % of Soo Line Corp. it does n't already own for 19.50 a share or about 81.9 million after failing to find a buyer for its majority stake earlier this year


( S ( NP-SBJ ( NNP Soo ) ( NNP Line ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ its ) ( NN board ) ) ( VP ( VBD appointed ) ( NP ( NP ( DT a ) ( JJ special ) ( NN committee ) ) ( PP ( IN of ) ( NP ( JJ independent ) ( NNS directors ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB study ) ( NP ( DT the ) ( NN proposal ) ) ) ) ) ) ) ) ) ) ) )

Soo Line said its board appointed a special committee of independent directors to study the proposal


( S ( NP-SBJ ( DT The ) ( VBN troubled ) ( JJ Minneapolis-based ) ( NN railroad ) ( NN concern ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN committee ) ) ( VP ( VBZ has ) ( NP ( DT the ) ( NN authority ) ( S ( VP ( TO to ) ( VP ( VB hire ) ( NP ( NP ( ADJP ( JJ financial ) ( CC and ) ( JJ legal ) ) ( NNS advisers ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB assist ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The troubled Minneapolis-based railroad concern said the committee has the authority to hire financial and legal advisers to assist it


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( VBN proposed ) ( NN acquisition ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ subject ) ( PP ( TO to ) ( NP ( NP ( NN approval ) ) ( PP ( IN by ) ( NP ( DT the ) ( NNP Interstate ) ( NNP Commerce ) ( NNP Commission ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Soo ) ( NNP Line ) ) ( VP ( VBD said ) ) )

The proposed acquisition will be subject to approval by the Interstate Commerce Commission Soo Line said


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( JJ composite ) ( NN trading ) ) ) ( NP-TMP ( NN yesterday ) ) ( NP-SBJ-1 ( NNP Soo ) ( NNP Line ) ( NNS shares ) ) ( VP ( VBD jumped ) ( PP-DIR ( RB well ) ( IN above ) ( NP ( DT the ) ( VBN proposed ) ( NN price ) ) ) ( S-ADV ( VP ( VBG closing ) ( PP-CLR ( IN at ) ( NP ( CD 20.25 ) ) ) ( ADVP ( IN up ) ( NP ( CD 2.75 ) ) ) ) ) ) )

In New York Stock Exchange composite trading yesterday Soo Line shares jumped well above the proposed price closing at 20.25 up 2.75


( S ( NP-SBJ ( NNP Canadian ) ( NNP Pacific ) ) ( VP ( VP ( VBD put ) ( NP ( NP ( PRP$ its ) ( ADJP ( CD 56 ) ( NN % ) ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NNP Soo ) ( NNP Line ) ) ) ) ( PP-CLR ( IN up ) ( PP ( IN for ) ( NP ( NN sale ) ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ( CC but ) ( VP ( MD could ) ( RB n't ) ( VP ( VB find ) ( NP ( DT any ) ( NNS takers ) ) ) ) ) )

Canadian Pacific put its 56 % stake in Soo Line up for sale last year but could n't find any takers


( S ( NP-SBJ ( NP ( NNP Canadian ) ( NNP Pacific ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ has ) ( NP ( NP ( NNS interests ) ) ( PP ( IN in ) ( NP ( NP ( NN transportation ) ) ( NP ( NNS telecommunications ) ) ( NP ( NN forest ) ( NNS products ) ) ( NP ( NN energy ) ) ( CC and ) ( NP ( JJ real ) ( NN estate ) ) ) ) ) ) ) ) ) ( ADVP-TMP ( RB finally ) ) ( VP ( VBD took ) ( NP ( PRP$ its ) ( NN majority ) ( NN block ) ) ( PP-CLR ( IN off ) ( NP ( DT the ) ( NN market ) ) ) ( NP-TMP ( DT this ) ( NN spring ) ) ) )

Canadian Pacific which has interests in transportation telecommunications forest products energy and real estate finally took its majority block off the market this spring


( S ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBD turned ) ( PRT ( RP out ) ) ( SBAR ( S ( NP-SBJ ( PRP we ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB sell ) ( NP ( PRP it ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( DT a ) ( NNP Canadian ) ( NNP Pacific ) ( NN official ) ) ( VP ( VBD said ) ( S-ADV ( VP ( VBG adding ) ( SBAR ( IN that ) ( S ( S-NOM-SBJ ( VP ( VBG acquiring ) ( NP ( NP ( DT the ) ( NN remainder ) ) ( PP ( IN of ) ( NP ( NNP Soo ) ( NNP Line ) ) ) ) ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB now ) ) ( NP-PRD ( NP ( DT the ) ( JJS best ) ( NN way ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB rationalize ) ( NP ( NNS operations ) ) ) ) ) ) ) ) ) ) ) ) ) )

It turned out we could n't sell it a Canadian Pacific official said adding that acquiring the remainder of Soo Line is now the best way to rationalize operations


( S ( NP-SBJ ( NNP Canadian ) ( NNP Pacific ) ) ( VP ( VP ( VBZ is ) ( NP-PRD ( NP ( NNP Soo ) ( NNP Line ) ( POS 's ) ) ( JJS biggest ) ( NN customer ) ) ) ( CC and ) ( VP ( VBZ has ) ( VP ( VBN owned ) ( NP ( NP ( DT a ) ( NN majority ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ( NN railroad ) ) ) ) ( PP-TMP ( IN since ) ( NP ( CD 1947 ) ) ) ) ) ) )

Canadian Pacific is Soo Line 's biggest customer and has owned a majority stake in the U.S. railroad since 1947


( S ( S ( NP-SBJ ( NNP Canadian ) ( NNP Pacific ) ( CC and ) ( NNP Soo ) ( NNP Line ) ( NNS tracks ) ) ( VP ( VBP connect ) ( PP-LOC ( IN at ) ( NP ( NP ( CD two ) ( NNS points ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN West ) ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Canada-U.S. ) ( NN border ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( CD two ) ( NNS companies ) ) ( VP ( VBP operate ) ( NP ( DT a ) ( ADJP ( RB very ) ( JJ successful ) ) ( NNP Chicago-Montreal ) ( NN rail ) ( NN service ) ) ) ) )

Canadian Pacific and Soo Line tracks connect at two points in the West on the Canada-U.S. border and the two companies operate a very successful Chicago-Montreal rail service


( S ( ADVP ( RB Separately ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ first ) ( CD nine ) ( NNS months ) ) ) ( NP-SBJ ( NNP Soo ) ( NNP Line ) ) ( VP ( VBD reported ) ( NP ( NP ( DT a ) ( NN loss ) ) ( PP ( IN of ) ( NP ( NP ( CD 398,000 ) ) ( CC or ) ( NP ( NP ( CD four ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( JJ net ) ( NN income ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 12.5 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.32 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) ) ) )

Separately for the first nine months Soo Line reported a loss of 398,000 or four cents a share compared with net income of 12.5 million or 1.32 a share a year earlier


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 5.8 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 407.9 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 433.2 ) ( CD million ) ) ) ) ) )

Revenue fell 5.8 % to 407.9 million from 433.2 million


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( NN loss ) ) ( PP ( IN from ) ( NP ( NNS operations ) ) ) ( PP ( IN of ) ( NP ( QP ( CD 1.7 ) ( CD million ) ) ) ) ) ) )

The company had a loss from operations of 1.7 million


( S ( INTJ ( UH Okay ) ) ( ADVP-TMP ( RB now ) ) ( NP-SBJ ( PRP you ) ) ( VP ( MD can ) ( VP ( VB pick ) ( PRT ( RP up ) ) ( NP ( DT that ) ( NN phone ) ) ) ) )

Okay now you can pick up that phone


( S ( CC But ) ( VP ( VB do ) ( RB n't ) ( VP ( VB do ) ( NP ( NP ( NN anything ) ) ( ADJP ( JJ rash ) ) ) ) ) )

But do n't do anything rash


( S ( PP-TMP ( IN After ) ( NP ( NP ( JJ last ) ( NNP Friday ) ( POS 's ) ) ( JJ stock-market ) ( NN plunge ) ) ) ( NP-SBJ ( NN investment ) ( NNS professionals ) ) ( VP ( VBD cautioned ) ( S ( NP-SBJ ( NNS people ) ) ( VP ( TO to ) ( VP ( VB resist ) ( NP ( DT the ) ( NN urge ) ( S ( VP ( TO to ) ( VP ( VP ( VB call ) ( NP ( PRP$ their ) ( NNS brokers ) ) ) ( CC and ) ( VP ( VB sell ) ( NP ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) )

After last Friday 's stock-market plunge investment professionals cautioned people to resist the urge to call their brokers and sell stocks


( S ( S ( S-NOM-SBJ-1 ( RB Not ) ( VP ( VBG selling ) ( PP-CLR ( IN into ) ( NP ( DT a ) ( NN panic ) ) ) ) ) ( VP ( VBD turned ) ( PRT ( RP out ) ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( ADJP ( RB very ) ( JJ good ) ) ( NN advice ) ) ) ) ) ) ) ( S ( PP ( IN Despite ) ( NP ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( NN volatility ) ) ) ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBZ has ) ( VP ( VBN surged ) ( NP-EXT ( CD 114 ) ( NNS points ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ past ) ( CD four ) ( NNS days ) ) ) ) ) ) )

Not selling into a panic turned out to be very good advice Despite the market 's volatility the Dow Jones Industrial Average has surged 114 points in the past four days


( S ( ADVP-TMP ( RB Now ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( NP ( DT a ) ( NN semblance ) ) ( PP ( IN of ) ( NP ( NN normalcy ) ) ) ) ( VP ( VBG returning ) ) ) ) ( NP-SBJ ( DT some ) ( NNS advisers ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( NN time ) ) ( SBAR ( IN for ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( TO to ) ( VP ( VP ( VB take ) ( NP ( NP ( DT a ) ( JJ hard ) ( JJ cold ) ( NN look ) ) ( PP ( IN at ) ( NP ( NP ( DT the ) ( NNS stocks ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP own ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBP consider ) ( NP ( DT some ) ( JJ careful ) ( NN pruning ) ) ) ) ) ) ) ) ) ) ) ) )

Now with a semblance of normalcy returning some advisers say it 's time for investors to take a hard cold look at the stocks they own and consider some careful pruning


( S-2 ( S ( NP-SBJ ( DT The ) ( NN market ) ) ( VP ( VBZ is ) ( VP ( VBG sending ) ( NP ( JJ nervous ) ( NNS signals ) ) ) ) ) ( PRN ( SINV ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Peter ) ( NNP J. ) ( NNP Canelo ) ) ( NP ( NP ( NN chief ) ( NN market ) ( NN strategist ) ) ( PP ( IN for ) ( NP ( NNP Bear ) ( NNP Stearns ) ( CC & ) ( NNP Co. ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJ unwise ) ) ( S-3 ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN overcommitted ) ( PP-CLR ( TO to ) ( NP ( NNS stocks ) ) ) ) ) ) ) ) ) )

The market is sending nervous signals says Peter J. Canelo chief market strategist for Bear Stearns & Co. and it 's unwise to be overcommitted to stocks


( S ( NP-SBJ ( NP ( NNP Alan ) ( NNP Weston ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP Weston ) ( NNP Capital ) ( NNP Management ) ) ( NP ( DT a ) ( NNP Los ) ( NNP Angeles ) ( NN money-management ) ( NN firm ) ) ) ) ) ) ( VP ( VBZ adds ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN in ) ( NP ( NP ( NNS periods ) ) ( PP ( IN of ) ( NP ( NN uncertainty ) ) ) ( PP ( IN like ) ( NP ( NN today ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT a ) ( JJ good ) ( NN time ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB cut ) ( PRT ( RP out ) ) ( NP ( NP ( DT the ) ( JJ dead ) ( NNS branches ) ) ( PP ( IN of ) ( NP ( PRP$ your ) ( NN portfolio ) ) ) ) ) ) ) ) ) ) ) ) ) )

Alan Weston president of Weston Capital Management a Los Angeles money-management firm adds that in periods of uncertainty like today it 's a good time to cut out the dead branches of your portfolio


( S ( NP-SBJ ( RB Not ) ( NN everybody ) ) ( VP ( VBZ agrees ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( NN time ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB trim ) ) ) ) ) ) ) ) ) ) )

Not everybody agrees that it 's time to trim


( SINV ( S-TPC-2 ( NP-SBJ-1 ( PRP We ) ) ( VP ( VBP are ) ( RB n't ) ( ADJP-PRD ( VBN inclined ) ( S ( VP ( TO to ) ( VP ( VB prune ) ( NP ( NN stock ) ( NNS portfolios ) ) ( ADVP-TMP ( RB now ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Steven ) ( NNP G. ) ( NNP Einhorn ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN investment ) ( NN policy ) ( NN committee ) ) ( PP ( IN of ) ( NP ( NNP Goldman ) ( NNP Sachs ) ( CC & ) ( NNP Co ) ) ) ) ) ) ) )

We are n't inclined to prune stock portfolios now says Steven G. Einhorn chairman of the investment policy committee of Goldman Sachs & Co


( S ( NP-SBJ ( NNS Investors ) ) ( VP ( MD should ) ( VP ( VB stay ) ( PP-CLR ( IN with ) ( NP ( PRP$ their ) ( NNS stocks ) ) ) ) ) )

Investors should stay with their stocks


( S ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP expect ) ( NP ( DT a ) ( ADJP ( JJ choppy ) ( CC and ) ( JJ sloppy ) ) ( NN market ) ) ( PP-TMP ( IN for ) ( NP ( DT a ) ( JJ short ) ( NN period ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB think ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ ugly ) ) ) ) ) ) ) ) ) )

We expect a choppy and sloppy market for a short period but we do n't think it will be ugly


( S ( NP-SBJ ( DT The ) ( NN downside ) ) ( VP ( VBZ is ) ( ADJP-PRD ( VBN limited ) ) ) )

The downside is limited


( S ( CC And ) ( NP-SBJ ( ADVP ( RB even ) ) ( NP ( DT those ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( DT some ) ( JJ selective ) ( NN selling ) ) ( VP ( MD may ) ( VP ( VB be ) ( PP-PRD ( IN in ) ( NP ( NN order ) ) ) ) ) ) ) ) ) ) ) ( VP ( NN stress ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NNS individuals ) ) ( VP ( VBP need ) ( S ( VP ( TO to ) ( VP ( VB be ) ( PP-LOC-PRD ( IN in ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ( S-PRP ( VP ( VP ( TO to ) ( VP ( VB achieve ) ( NP ( PRP$ their ) ( JJ long-term ) ( NN investment ) ( NNS objectives ) ) ) ) ( CC and ) ( VP ( TO to ) ( VP ( VB help ) ( S ( VP ( VB balance ) ( NP ( PRP$ their ) ( JJ other ) ( NNS assets ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

And even those who say some selective selling may be in order stress that individuals need to be in the stock market to achieve their long-term investment objectives and to help balance their other assets


( S-1 ( NP-SBJ-2 ( DT Any ) ( NN selling ) ) ( PRN ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP say ) ) ) ) ( VP ( MD should ) ( VP ( VB be ) ( UCP-PRD ( ADJP ( RB well ) ( JJ thought-out ) ) ( CC and ) ( VP ( VBD executed ) ( ADVP-MNR ( RB gradually ) ) ( PP-TMP ( IN during ) ( NP ( NN market ) ( NNS rallies ) ) ) ) ) ) ) )

Any selling they say should be well thought-out and executed gradually during market rallies


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP offer ) ( NP ( DT these ) ( NNS suggestions ) ) ) )

They offer these suggestions


( S ( VP ( VB GET ) ( VP ( VB RID ) ( PP-CLR ( IN OF ) ( NP ( DT THE ) ( NNS DOGS ) ) ) ) ) )

GET RID OF THE DOGS


( SINV ( S-TPC-2 ( VP ( VB Sell ) ( NP ( NP ( NNS stocks ) ) ( SBAR ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP are ) ( RB n't ) ( VP ( VBG doing ) ( ADVP-MNR ( RB well ) ) ( ADVP-TMP ( RB now ) ) ) ) ) ) ( CC and ) ( SBAR ( WHNP-3 ( DT that ) ) ( S ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ( NP ( JJ good ) ( NNS earnings ) ( NNS prospects ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Alfred ) ( NNP Goldman ) ) ( NP ( NP ( JJ technical ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( ADJP ( NNP St. ) ( JJ Louis-based ) ) ( NNP A.G. ) ( NNP Edwards ) ( CC & ) ( NNPS Sons ) ) ) ) ) )

Sell stocks that are n't doing well now and that do n't have good earnings prospects says Alfred Goldman technical analyst at St. Louis-based A.G. Edwards & Sons


( S ( S ( NP-SBJ ( JJS Most ) ( NNS people ) ) ( VP ( VBP do ) ( NP ( RB just ) ( DT the ) ( NN opposite ) ) ) ) ( S ( NP-SBJ ( PRP They ) ) ( VP ( VP ( VBP sell ) ( NP ( PRP$ their ) ( NNS winners ) ) ) ( CC and ) ( VP ( VBP keep ) ( NP ( PRP$ their ) ( NNS losers ) ) ) ) ) )

Most people do just the opposite They sell their winners and keep their losers


( SBARQ ( WHNP-1 ( NP ( WDT Which ) ( NNS types ) ) ( PP ( IN of ) ( NP ( NNS stocks ) ) ) ) ( SQ ( VP ( VBP are ) ( ADVP-PRD ( RBS most ) ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB qualify ) ) ) ) ) ) ) )

Which types of stocks are most likely to qualify


( SINV ( FRAG-TPC-1 ( NP-PRD ( NN Technology ) ( NNS stocks ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Goldman ) ) )

Technology stocks says Mr. Goldman


( S ( VP ( VB WATCH ) ( PP-CLR ( IN FOR ) ( NP ( NNS EARNINGS ) ( NNS DISAPPOINTMENTS ) ) ) ) )

WATCH FOR EARNINGS DISAPPOINTMENTS


( SINV ( S-TPC-2 ( NP-SBJ-1 ( DT A ) ( NN company ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB post ) ( NP ( DT a ) ( NN loss ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( DT a ) ( NN candidate ) ) ( PP ( IN for ) ( NP ( NN sale ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Charles ) ( NNP I. ) ( NNP Clough ) ( NNP Jr. ) ) ( NP ( NP ( NN chief ) ( NN market ) ( NN strategist ) ) ( PP-LOC ( IN at ) ( NP ( NNP Merrill ) ( NNP Lynch ) ( CC & ) ( NNP Co ) ) ) ) ) )

A company does n't have to post a loss to be a candidate for sale says Charles I. Clough Jr. chief market strategist at Merrill Lynch & Co


( S-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NNS earnings ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB live ) ( PRT ( RP up ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NNS analysts ) ( POS ' ) ) ( NNS expectations ) ) ) ) ) ) ) ( PRN ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) ) ( NP-SBJ ( DT that ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJ enough ) ( S ( VP ( TO to ) ( VP ( VB dump ) ( NP ( DT the ) ( NN stock ) ) ) ) ) ) ) )

If earnings do n't live up to analysts ' expectations he says that 's enough to dump the stock


( S ( NP-SBJ ( NP ( NNP John ) ( NNP Markese ) ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( NN research ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNP American ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNP Individual ) ( NNPS Investors ) ) ) ) ) ) ) ( VP ( VBZ raises ) ( NP ( DT a ) ( JJ cautionary ) ( NN note ) ) ) )

John Markese director of research for the American Association of Individual Investors raises a cautionary note


( S ( S-TPC-1 ( S-NOM-SBJ ( VP ( VBG Substituting ) ( NP ( NP ( DT a ) ( NN rule ) ) ( PP ( IN of ) ( NP ( NN thumb ) ) ) ) ( PP-CLR ( IN for ) ( NP ( PRP$ your ) ( JJ own ) ( NN judgment ) ) ) ) ) ( VP ( MD can ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( NN mistake ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

Substituting a rule of thumb for your own judgment can be a mistake he says


( S ( NP-SBJ ( DT An ) ( NNS earnings ) ( NN disappointment ) ) ( VP ( MD may ) ( VP ( VB reflect ) ( NP ( NP ( DT a ) ( NN situation ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ 's ) ( ADJP-PRD ( JJ short-term ) ) ) ) ) ) ) ) )

An earnings disappointment may reflect a situation that 's short-term


( S ( CC But ) ( NP-SBJ ( NNP Mr. ) ( NNP Clough ) ) ( VP ( VBZ says ) ( S ( NP-SBJ ( DT The ) ( NN risk ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( NNS earnings ) ( NNS disappointments ) ) ( VP ( MD will ) ( VP ( VB continue ) ) ) ) ) ) ) ) )

But Mr. Clough says The risk is that earnings disappointments will continue


( S ( S ( NP-SBJ ( DT The ) ( NN economy ) ) ( VP ( VBZ is ) ( VP ( VBG decelerating ) ( PP-TMP ( IN after ) ( NP ( CD six ) ( JJ good ) ( NNS years ) ) ) ) ) ) ( CC and ) ( S ( ADVP-TMP ( RB right ) ( RB now ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJR better ) ) ( S-1 ( VP ( TO to ) ( VP ( VP ( VB shoot ) ( ADVP-TMP ( RB first ) ) ) ( CC and ) ( VP ( VB ask ) ( NP ( NNS questions ) ) ( ADVP-TMP ( RB later ) ) ) ) ) ) ) ) )

The economy is decelerating after six good years and right now it 's better to shoot first and ask questions later


( SBARQ ( WHNP-1 ( NP ( WDT Which ) ( NNS types ) ) ( PP ( IN of ) ( NP ( NNS stocks ) ) ) ) ( SQ ( ADVP-TMP ( RB currently ) ) ( VP ( VBP have ) ( NP ( DT the ) ( JJS greatest ) ( NNS earnings ) ( NNS risks ) ) ) ) )

Which types of stocks currently have the greatest earnings risks


( S ( FRAG-TPC-1 ( NP ( NP ( NN Computer ) ( NNS companies ) ) ( NP ( NP ( NN commodity ) ( JJ cyclical ) ( NNS stocks ) ) ( PP ( IN like ) ( NP ( NNS autos ) ) ) ) ( CC and ) ( NP ( NN retailing ) ( NNS stocks ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

Computer companies commodity cyclical stocks like autos and retailing stocks he says


( S ( VP ( VB BEWARE ) ( PP-CLR ( IN OF ) ( NP ( JJ HEAVY ) ( NN DEBT ) ) ) ) )

BEWARE OF HEAVY DEBT


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( NNS companies ) ) ( ADJP ( JJ apt ) ( S ( VP ( TO to ) ( VP ( VB run ) ( PP-CLR ( IN into ) ( NP ( NNS earnings ) ( NNS problems ) ) ) ( ADVP-TMP ( JJS soonest ) ) ) ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( NNS ones ) ) ( PP ( IN with ) ( NP ( JJ heavy ) ( NN debt ) ( NNS loads ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Larry ) ( NNP Biehl ) ) ( NP ( NP ( NN partner ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NAC-LOC ( NNP San ) ( NNP Mateo ) ( NNP Calif. ) ) ( NN money-management ) ( NN firm ) ) ( PP ( IN of ) ( NP ( NNP Bailard ) ( NNP Biehl ) ( CC & ) ( NNP Kaiser ) ) ) ) ) ) ) )

The companies apt to run into earnings problems soonest are the ones with heavy debt loads says Larry Biehl partner in the San Mateo Calif. money-management firm of Bailard Biehl & Kaiser


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Canelo ) ) ( PP ( IN of ) ( NP ( NNP Bear ) ( NNP Stearns ) ) ) ) ( VP ( VBZ agrees ) ( S-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP do ) ( VP ( VB have ) ( NP ( DT an ) ( JJ economic ) ( NN slowdown ) ) ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) ) ) ( NP-SBJ-2 ( NP ( NNS companies ) ) ( PP ( IN with ) ( NP ( JJ high ) ( NN debt ) ( NNS ratios ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN dumped ) ( ADVP-MNR ( IN en ) ( NN masse ) ) ) ) ) ) ) )

Mr. Canelo of Bear Stearns agrees If we do have an economic slowdown he says companies with high debt ratios will be dumped en masse


( S ( S-TPC-2 ( NP-SBJ ( NP ( DT The ) ( JJS best ) ( NN course ) ) ( PP ( IN for ) ( NP ( JJ individual ) ( NNS investors ) ) ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB sell ) ( NP ( DT these ) ( NNS stocks ) ) ( ADVP-TMP ( RB now ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( CD two ) ( NNS advisers ) ) ( VP ( VBP say ) ) )

The best course for individual investors is to sell these stocks now the two advisers say


( S ( VP ( VB SELL ) ( NP ( NN WHISPER ) ( NNS STOCKS ) ) ) )

SELL WHISPER STOCKS


( SINV ( S-TPC-3 ( NP-SBJ ( NP ( NP ( NP ( NNP UAL ) ( NNP Corp. ) ( POS 's ) ) ( NN difficulty ) ) ( PP ( IN in ) ( S-NOM ( VP ( VBG obtaining ) ( NP ( NP ( NN bank ) ( NN financing ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( JJ leveraged ) ( NN buy-out ) ) ) ) ) ) ) ) ( CC and ) ( NP ( PRP$ its ) ( VBG resulting ) ( NN price ) ( NN plunge ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN tip-off ) ) ( PP ( TO to ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( VP ( VBZ 's ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB happen ) ( PP ( TO to ) ( NP ( NN takeover ) ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Canelo ) ) )

UAL Corp. 's difficulty in obtaining bank financing for its leveraged buy-out and its resulting price plunge is a tip-off to what 's going to happen to takeover stocks says Mr. Canelo


( S ( S-TPC-1 ( NP-SBJ ( NN Takeover ) ( NN activity ) ) ( VP ( MD will ) ( VP ( VB slow ) ( PRT ( RP down ) ) ( SBAR-ADV ( RB as ) ( S ( NP-SBJ ( ADJP ( JJR more ) ( CC and ) ( JJR more ) ) ( NNS banks ) ) ( VP ( VBP tighten ) ( NP ( PRP$ their ) ( NN lending ) ( NNS requirements ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

Takeover activity will slow down as more and more banks tighten their lending requirements he says


( S ( NP-SBJ ( EX There ) ) ( VP ( MD 'll ) ( VP ( VB be ) ( NP-PRD ( ADJP ( JJR fewer ) ( CC and ) ( JJR fewer ) ) ( NNS deals ) ) ) ) )

There 'll be fewer and fewer deals