( SINV ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN industry ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB still ) ) ( ADVP ( RB pretty ) ( RB much ) ) ( PP-LOC-PRD ( IN in ) ( NP ( PRP$ its ) ( NNP Wild ) ( NNP West ) ( NNS days ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Scott ) ( NNP Stapf ) ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( NN investor ) ( NN education ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( NNP North ) ( NNP American ) ( NNP Securities ) ( NNP Administrators ) ( NNP Association ) ) ) ) ) )

The industry is still pretty much in its Wild West days says Scott Stapf director of investor education for the North American Securities Administrators Association


( S ( NP-SBJ ( NP ( DT An ) ( ADJP ( RB admittedly ) ( VBN limited ) ) ( NN survey ) ) ( PP ( IN by ) ( NP ( NP ( NNP NASAA ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NNS members ) ) ( S ( VP ( VBP are ) ( NP-PRD ( NN state ) ( NN securities-law ) ( NNS regulators ) ) ) ) ) ) ) ) ( VP ( VBD found ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN between ) ( NP ( CD 1986 ) ( CC and ) ( CD 1988 ) ) ) ( NP-SBJ ( NP ( NN fraud ) ( CC and ) ( NN abuse ) ) ( PP ( IN by ) ( NP ( JJ financial ) ( NNS planners ) ) ) ) ( VP ( VBD cost ) ( NP ( CD 22,000 ) ( NNS investors ) ) ( NP ( QP ( CD 400 ) ( CD million ) ) ) ) ) ) ) )

An admittedly limited survey by NASAA whose members are state securities-law regulators found that between 1986 and 1988 fraud and abuse by financial planners cost 22,000 investors 400 million


( S ( NP-SBJ ( NP ( NP ( DT The ) ( NNS rogues ) ( POS ' ) ) ( NN gallery ) ) ( PP ( IN of ) ( NP ( NP ( NNS planners ) ) ( VP ( VBN involved ) ) ) ) ) ( VP ( VBZ includes ) ( NP ( NP ( DT some ) ( VBN convicted ) ( NNS felons ) ) ( NP ( DT a ) ( JJ compulsive ) ( NN gambler ) ( QP ( CC or ) ( CD two ) ) ) ( NP ( NP ( JJ various ) ( NNS businessmen ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD had ) ( VP ( VBN planned ) ( NP ( PRP$ their ) ( JJ own ) ( JJ previous ) ( NNS ventures ) ) ( PP-DIR ( ADVP ( RB right ) ) ( IN into ) ( NP ( NN bankruptcy ) ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( CD one ) ( NN man ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBD scammed ) ( NP ( NP ( PRP$ his ) ( NN wife ) ( POS 's ) ) ( NN grandmother ) ) ) ) ) ) ) ) )

The rogues ' gallery of planners involved includes some convicted felons a compulsive gambler or two various businessmen who had planned their own previous ventures right into bankruptcy and one man who scammed his wife 's grandmother


( SINV ( S-TPC-5 ( SBAR-ADV ( WHNP-1 ( WP What ) ) ( S ( VP ( VBZ 's ) ( NP-PRD ( JJR more ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NNS losses ) ) ( SBAR ( S ( NP-SBJ ( NP ( PRP they ) ) ( CC and ) ( NP ( DT the ) ( NNS others ) ) ) ( VP ( VBD caused ) ) ) ) ) ( VP ( VBP are ) ( SBAR-NOM-PRD ( ADVP ( RB just ) ) ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP are ) ( VP ( VBG stumbling ) ( PP-CLR ( IN over ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ-4 ( NNP Mr. ) ( NNP Stapf ) ) ( S-ADV ( VP ( VBG adding ) ( SBAR ( IN that ) ( S ( NP-SBJ-6 ( NP ( DT the ) ( NN majority ) ) ( PP ( IN of ) ( NP ( NNS misdeeds ) ) ) ) ( ADVP ( RB probably ) ) ( VP ( VBP go ) ( S-CLR ( ADJP-PRD ( JJ undetected ) ) ) ) ) ) ) ) )

What 's more the losses they and the others caused are just what we are stumbling over says Mr. Stapf adding that the majority of misdeeds probably go undetected


( SINV ( ADVP ( RB So ) ) ( VP ( VBP do ) ) ( NP-SBJ ( NP ( QP ( RB just ) ( RP about ) ( DT all ) ) ( DT the ) ( NNS losses ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN attributed ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ sheer ) ( NN incompetence ) ) ( PP ( IN of ) ( NP ( JJ unqualified ) ( NNS planners ) ) ) ) ) ) ) ) ) ) ) )

So do just about all the losses that could be attributed to the sheer incompetence of unqualified planners


( S ( S ( NP-SBJ ( NN Nobody ) ) ( VP ( MD can ) ( VP ( VB estimate ) ( NP ( DT the ) ( NN toll ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NP ( NNP John ) ( NNP Gargan ) ) ( NP ( NP ( DT a ) ( NAC-LOC ( NNP Tampa ) ( NNP Fla. ) ) ( NN planner ) ) ( CC and ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NP ( CD one ) ( NN trade ) ( NN group ) ) ( NP ( NP ( DT the ) ( NNP International ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNP Registered ) ( NNP Financial ) ( NNP Planners ) ) ) ) ) ) ) ) ) ( VP ( VBZ thinks ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN danger ) ) ( PP ( TO to ) ( NP ( NNS investors ) ) ) ( PP ( IN from ) ( NP ( NN incompetence ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( JJ humongous ) ) ( ADJP ( ADJP ( RB far ) ( JJR greater ) ) ( PP ( IN than ) ( NP ( NP ( DT that ) ) ( PP ( IN from ) ( NP ( NN crookery ) ) ) ) ) ) ) ) ) ) ) ) )

Nobody can estimate the toll but John Gargan a Tampa Fla. planner and head of one trade group the International Association of Registered Financial Planners thinks the danger to investors from incompetence is humongous far greater than that from crookery


( S ( NP-SBJ ( PRP$ His ) ( NN group ) ) ( PP ( IN like ) ( NP ( NNS others ) ) ) ( VP ( VBZ wants ) ( S ( NP-SBJ-2 ( NN minimum ) ( NNS standards ) ) ( VP ( VBN applied ) ( PP-CLR ( TO to ) ( NP ( NP ( DT all ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP call ) ( S ( NP-SBJ ( PRP themselves ) ) ( NP-PRD ( JJ financial ) ( NNS planners ) ) ) ) ) ) ) ) ) ) ) )

His group like others wants minimum standards applied to all who call themselves financial planners


( S ( S-ADV ( VP ( VBG Surveying ) ( NP ( DT all ) ( DT this ) ) ) ) ( NP-SBJ-1 ( DT some ) ( NNS people ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( DT the ) ( JJS best ) ( NN planner ) ) ( VP ( MD might ) ( VP ( VB be ) ( NP-PRD ( NP ( DT no ) ( NN planner ) ) ( ADVP ( IN at ) ( DT all ) ) ) ) ) ) ) ) )

Surveying all this some people now think the best planner might be no planner at all


( SINV ( S-TPC-2 ( PP ( IN For ) ( NP ( JJS most ) ( NNS investors ) ) ) ( NP-SBJ ( DT the ) ( NNS benefits ) ) ( ADVP ( RB just ) ) ( VP ( VBP are ) ( RB n't ) ( ADJP-PRD ( JJ worth ) ( NP ( DT the ) ( NNS risks ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Barbara ) ( NNP Roper ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ follows ) ( NP ( JJ financial-planning ) ( NNS issues ) ) ( PP ( IN for ) ( NP ( NP ( NP ( DT the ) ( NNP Consumer ) ( NNP Federation ) ) ( PP ( IN of ) ( NP ( NNP America ) ) ) ) ( NP ( NP ( DT a ) ( JJ consumer-advocacy ) ( NN organization ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP Washington ) ) ) ) ) ) ) ) ) ) ) )

For most investors the benefits just are n't worth the risks says Barbara Roper who follows financial-planning issues for the Consumer Federation of America a consumer-advocacy organization based in Washington


( S ( S ( NP-SBJ ( PRP She ) ) ( VP ( VBZ concedes ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ such ) ( DT a ) ( NN position ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ unfair ) ( PP ( TO to ) ( NP ( NP ( NP ( DT the ) ( NNS thousands ) ) ( PP ( IN of ) ( NP ( ADJP ( JJ conscientious ) ( CC and ) ( JJ qualified ) ) ( NNS people ) ) ) ) ( VP ( VBG plying ) ( NP ( DT the ) ( NN trade ) ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( PP ( IN as ) ( NP ( DT a ) ( NN consumer ) ( NN advocate ) ) ) ( NP-SBJ-1 ( PRP she ) ) ( VP ( VBZ feels ) ( VP ( VBN impelled ) ( S ( VP ( TO to ) ( VP ( VB take ) ( NP ( PRP it ) ) ) ) ) ) ) ) )

She concedes that such a position is unfair to the thousands of conscientious and qualified people plying the trade but as a consumer advocate she feels impelled to take it


( S ( NP-SBJ ( PRP She ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ-2 ( PRP$ her ) ( NN group ) ) ( VP ( VP ( VBN used ) ( S ( VP ( TO to ) ( VP ( VB give ) ( NP ( NP ( NNS tips ) ) ( PP ( IN on ) ( S-NOM ( VP ( VBG selecting ) ( NP ( NNS planners ) ) ) ) ) ( PRN ( S ( VP ( VP ( VB check ) ( NP ( UCP ( JJ educational ) ( CC and ) ( NN experience ) ) ( NNS credentials ) ) ) ( VP ( VB consult ) ( NP ( NP ( NNS regulators ) ) ( CC and ) ( NP ( NNP Better ) ( NNP Business ) ( NNPS Bureaus ) ) ) ) ) ) ) ) ) ) ) ) ( CC but ) ( VP ( VBD found ) ( SBAR ( IN that ) ( S ( NP-SBJ-3 ( NP ( RB even ) ( DT some ) ( NNS people ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD took ) ( NP ( DT these ) ( NNS steps ) ) ) ) ) ) ( VP ( VBD were ) ( ADVP-TMP ( RB still ) ) ( VP ( VBG getting ) ( VP ( VBN ripped ) ( PRT ( RP off ) ) ) ) ) ) ) ) ) ) ) ) )

She says her group used to give tips on selecting planners check educational and experience credentials consult regulators and Better Business Bureaus but found that even some people who took these steps were still getting ripped off


( S ( NP-SBJ ( DT The ) ( JJ bad ) ( NN news ) ) ( ADVP ( RB however ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN been ) ( ADJP-PRD ( JJ bad ) ( RB enough ) ( S ( VP ( TO to ) ( VP ( VB kill ) ( NP ( NP ( DT the ) ( VBG growing ) ( NN demand ) ) ( PP ( IN for ) ( NP ( JJ financial ) ( NN planning ) ) ) ) ) ) ) ) ) ) )

The bad news however has n't been bad enough to kill the growing demand for financial planning


( S ( S ( NP-SBJ ( NP ( NP ( NP ( DT The ) ( NNP Tax ) ( NNP Reform ) ( NNP Act ) ) ( PP ( IN of ) ( NP ( CD 1986 ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD eliminated ) ( NP ( NP ( JJ many ) ( NN tax ) ( NNS shelters ) ) ( VP ( VBN peddled ) ( PP ( IN by ) ( NP-LGS ( NNS planners ) ) ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN stock ) ( NN market ) ( NN crash ) ) ( NP-TMP ( DT the ) ( JJ next ) ( NN year ) ) ) ) ( VP ( VBD did ) ( VP ( VB cause ) ( NP ( NP ( DT a ) ( JJ sharp ) ( NN slump ) ) ( PP-LOC ( IN in ) ( NP ( JJ such ) ( NN demand ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( JJ many ) ( NNS planners ) ) ( VP ( VBD had ) ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( NP ( DT an ) ( JJ unplanned ) ( NN exit ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN business ) ) ) ) ) ) ) ) ) )

The Tax Reform Act of 1986 which eliminated many tax shelters peddled by planners and the stock market crash the next year did cause a sharp slump in such demand and many planners had to make an unplanned exit from the business


( S ( CC But ) ( S ( NP-SBJ ( NP ( NN membership ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( DT the ) ( NNP International ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNP Financial ) ( NNP Planners ) ) ) ) ( PRN ( NP ( NNP IAFP ) ) ) ( NP ( NP ( DT the ) ( NN industry ) ( POS 's ) ) ( JJS biggest ) ( NN trade ) ( NN group ) ) ) ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB still ) ) ( SBAR-NOM-PRD ( ADVP ( RB nearly ) ( JJ triple ) ) ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( PP-TMP ( IN in ) ( NP ( CD 1980 ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ 's ) ( VP ( VBN believed ) ( SBAR-3 ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS ranks ) ) ( PP ( IN of ) ( NP ( NP ( NNS planners ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP do ) ( RB n't ) ( VP ( VB belong ) ( PP-CLR ( TO to ) ( NP ( DT any ) ( NN group ) ) ) ) ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN soared ) ( ADVP ( RB as ) ( RB well ) ) ) ) ) ) ) ) ) )

But membership in the International Association of Financial Planners IAFP the industry 's biggest trade group is still nearly triple what it was in 1980 and it 's believed that the ranks of planners who do n't belong to any group have soared as well


( S ( S ( NP-SBJ ( DT An ) ( VBN estimated ) ( QP ( CD 10 ) ( CD million ) ) ( NNS Americans ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB now ) ) ( VP ( VBG using ) ( NP ( JJ financial ) ( NNS planners ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( DT the ) ( NN pool ) ) ( PP ( IN of ) ( NP ( NN capital ) ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP influence ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ enormous ) ) ) ) )

An estimated 10 million Americans are now using financial planners and the pool of capital they influence is enormous


( S ( NP-SBJ ( NP ( DT A ) ( NN survey ) ) ( PP ( IN of ) ( NP ( NP ( CD 54,000 ) ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ) ) ( VP ( VBN conducted ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NNP IAFP ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP April ) ) ) ) ) ( VP ( VBD showed ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT these ) ( NNS practitioners ) ) ( ADVP ( RB alone ) ) ) ( VP ( VBD had ) ( VP ( VBN controlled ) ( CC or ) ( VBN guided ) ( NP ( NP ( DT the ) ( NN investment ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 154 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ their ) ( NNS clients ) ( POS ' ) ) ( NN money ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ previous ) ( CD 12 ) ( NNS months ) ) ) ) ) ) ) ) )

A survey of 54,000 of them conducted by the IAFP in April showed that these practitioners alone had controlled or guided the investment of 154 billion of their clients ' money in the previous 12 months


( S ( NP-SBJ ( NP ( DT The ) ( JJ sheer ) ( NN number ) ) ( PP ( IN of ) ( NP ( NNS planners ) ) ) ) ( VP ( VBZ makes ) ( S ( NP-SBJ ( DT the ) ( NN business ) ) ( ADJP-PRD ( ADJP ( RB extremely ) ( JJ difficult ) ) ( CONJP ( IN if ) ( RB not ) ) ( ADJP ( JJ impossible ) ) ( SBAR-2 ( S ( VP ( TO to ) ( VP ( VB regulate ) ) ) ) ) ) ) ) )

The sheer number of planners makes the business extremely difficult if not impossible to regulate


( S ( NP-SBJ ( NP ( RB Even ) ( DT the ) ( NN minority ) ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( MD must ) ( VP ( VB register ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNP Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( NN investment ) ( NNS advisers ) ) ( NP ( NP ( NNS people ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP are ) ( PP-LOC-PRD ( IN in ) ( NP ( NP ( DT the ) ( NN business ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG counseling ) ( NP ( NNS others ) ) ( PP-CLR ( IN on ) ( NP ( NP ( DT the ) ( VBG buying ) ( CC and ) ( VBG selling ) ) ( PP ( IN of ) ( NP ( NNS securities ) ) ) ( ADVP ( RB specifically ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( ADJP-PRD ( JJ enough ) ( S ( VP ( TO to ) ( VP ( VB swamp ) ( NP ( NP ( DT the ) ( NN agency ) ( POS 's ) ) ( NN capacity ) ) ) ) ) ) ) ) )

Even the minority of them who must register with the Securities and Exchange Commission as investment advisers people who are in the business of counseling others on the buying and selling of securities specifically have been enough to swamp the agency 's capacity


( S ( NP-SBJ ( DT The ) ( NNP SEC ) ) ( VP ( VBZ has ) ( NP ( NP ( QP ( RB only ) ( RB about ) ( CD 200 ) ) ( NNS staffers ) ) ( VP ( VBN assigned ) ( S ( VP ( TO to ) ( VP ( VB keep ) ( NP-CLR ( NNS tabs ) ) ( PP-CLR ( IN on ) ( NP ( NN investment ) ( NNS advisers ) ) ) ) ) ) ) ( NP ( NP ( RB about ) ( DT the ) ( JJ same ) ) ( PP ( IN as ) ( PP-TMP ( IN in ) ( NP ( CD 1980 ) ) ) ) ) ) ( SBAR-ADV ( RB even ) ( IN though ) ( S ( NP-SBJ ( NP ( DT the ) ( NN number ) ) ( PP ( IN of ) ( NP ( NNS advisers ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN tripled ) ( PP-DIR ( TO to ) ( NP ( QP ( RB about ) ( CD 15,000 ) ) ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ past ) ( NN decade ) ) ) ) ) ) ) ) )

The SEC has only about 200 staffers assigned to keep tabs on investment advisers about the same as in 1980 even though the number of advisers has tripled to about 15,000 over the past decade


( S ( ADVP-TMP ( RB Currently ) ) ( NP-SBJ ( DT a ) ( VBN registered ) ( NN investment ) ( NN adviser ) ) ( VP ( MD can ) ( VP ( VB expect ) ( NP ( DT an ) ( NNP SEC ) ( NN audit ) ) ( ADVP-TMP ( RB only ) ( RB once ) ) ( NP-TMP ( DT every ) ( CD 12 ) ( NNS years ) ) ) ) )

Currently a registered investment adviser can expect an SEC audit only once every 12 years


( S ( NP-SBJ ( NP ( DT A ) ( NN lot ) ) ( PP ( IN of ) ( NP ( JJ bad ) ( NNS things ) ) ) ) ( VP ( MD can ) ( VP ( VB happen ) ( PP-TMP ( IN in ) ( NP ( CD 12 ) ( NNS years ) ) ) ) ) )

A lot of bad things can happen in 12 years


( SINV ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB take ) ( NP-2 ( DT a ) ( NN rocket ) ( NN scientist ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB figure ) ( PRT ( RP out ) ) ( NP ( PRP$ our ) ( NN problem ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Kathryn ) ( NNP McGrath ) ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NNP SEC ) ( POS 's ) ) ( NN division ) ) ( PP ( IN of ) ( NP ( NN investment ) ( NN management ) ) ) ) ) ) ) )

It does n't take a rocket scientist to figure out our problem says Kathryn McGrath director of the SEC 's division of investment management


( S ( IN So ) ( NP-SBJ ( DT the ) ( NNP SEC ) ) ( VP ( VBZ has ) ( VP ( VBN proposed ) ( PP-CLR ( TO to ) ( NP ( NNP Congress ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NP ( JJ much ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN job ) ) ( PP ( IN of ) ( NP ( NN oversight ) ) ) ) ) ) ( VP ( VB be ) ( VP ( VBN turned ) ( PRT ( RP over ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT an ) ( JJ industry-funded ) ( JJ self-regulatory ) ( NN organization ) ) ( VP ( VBN patterned ) ( PP-CLR ( IN on ) ( NP ( NP ( NP ( DT the ) ( NNP National ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNP Securities ) ( NNP Dealers ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ operates ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN brokerage ) ( NN business ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

So the SEC has proposed to Congress that much of the job of oversight be turned over to an industry-funded self-regulatory organization patterned on the National Association of Securities Dealers which operates in the brokerage business


( S ( NP-SBJ ( JJ Such ) ( DT an ) ( NN organization ) ) ( VP ( MD could ) ( PP-LOC ( IN among ) ( NP ( JJ other ) ( NNS things ) ) ) ( VP ( VP ( VBN set ) ( NP ( NP ( NN minimum ) ( NNS standards ) ) ( PP ( IN for ) ( NP ( NN competence ) ( NNS ethics ) ( CC and ) ( NNS finances ) ) ) ) ) ( CC and ) ( VP ( VB punish ) ( NP ( NP ( DT those ) ( NN investment ) ( NNS advisers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD broke ) ( NP ( DT the ) ( NNS rules ) ) ) ) ) ) ) ) ) )

Such an organization could among other things set minimum standards for competence ethics and finances and punish those investment advisers who broke the rules


( S ( NP-SBJ ( DT The ) ( NN proposal ) ) ( VP ( VBZ has ) ( VP ( VBN set ) ( PRT ( RP off ) ) ( NP ( NP ( DT a ) ( JJ lively ) ( NN debate ) ) ( PP-LOC ( IN within ) ( NP ( NP ( DT an ) ( NN industry ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD was ) ( ADJP-PRD ( RB far ) ( PP ( IN from ) ( ADJP ( VBN united ) ) ) ) ( X ( ADVP-TMP ( TO to ) ( VB begin ) ( RP with ) ) ) ) ) ) ) ) ) ) ) )

The proposal has set off a lively debate within an industry that was far from united to begin with


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Schwartz ) ) ( NP ( NP ( DT the ) ( JJ puckish ) ( NN planner ) ) ( PP ( IN from ) ( NP-LOC ( NP ( NNP Englewood ) ) ( NP ( NNP Colo. ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( IN that ) ( S ( S-NOM-SBJ ( VP ( VBG allowing ) ( S ( NP-SBJ ( DT the ) ( NN business ) ) ( VP ( TO to ) ( VP ( VB police ) ( NP ( PRP itself ) ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( PP-PRD ( IN like ) ( S-NOM ( VP ( VBG putting ) ( NP ( NNP Dracula ) ) ( PP-CLR ( IN in ) ( NP ( NP ( NN charge ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN blood ) ( NN bank ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Schwartz the puckish planner from Englewood Colo. says that allowing the business to police itself would be like putting Dracula in charge of the blood bank


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Gargan ) ) ( NP ( NP ( DT the ) ( NNP Tampa ) ( NN planner ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ heads ) ( NP ( CD one ) ( NN trade ) ( NN group ) ) ) ) ) ) ) ( VP ( VBZ favors ) ( S ( ADVP ( RB simply ) ) ( VP ( VP ( VBG assessing ) ( NP ( DT the ) ( NN industry ) ) ) ( CC and ) ( VP ( VBG giving ) ( NP ( DT the ) ( NN money ) ) ( PP-DTV ( TO to ) ( NP-2 ( DT the ) ( NNP SEC ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB hire ) ( NP ( JJR more ) ( NN staff ) ) ) ) ) ) ) ) ) )

Mr. Gargan the Tampa planner who heads one trade group favors simply assessing the industry and giving the money to the SEC to hire more staff


( S ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Gargan ) ( POS 's ) ) ( NNS views ) ) ( VP ( VBP are ) ( RB not ) ( VP ( VBN greeted ) ( PP ( IN with ) ( NP ( JJ wild ) ( NN enthusiasm ) ) ) ( PP-LOC ( ADVP ( RB over ) ) ( IN at ) ( NP ( NP ( DT the ) ( NNP IAFP ) ) ( NP ( DT the ) ( JJ major ) ( NN industry ) ( NN organization ) ) ) ) ) ) )

Mr. Gargan 's views are not greeted with wild enthusiasm over at the IAFP the major industry organization


( S ( SBAR-TMP ( WHADVP-4 ( WRB When ) ) ( S ( NP-SBJ ( DT the ) ( NNP IAFP ) ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBD assembled ) ( NP ( JJ other ) ( NN industry ) ( NNS groups ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB discuss ) ( NP ( NP ( JJ common ) ( NNS standards ) ) ( SBAR ( WHNP-3 ( WDT that ) ) ( S ( VP ( MD might ) ( VP ( VB be ) ( VP ( VBN applied ) ( PP-CLR ( TO to ) ( NP ( NNS planners ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( NP ( NNP Mr. ) ( NNP Gargan ) ( POS 's ) ) ( NN group ) ) ( VP ( VBD was ) ( VP ( VBN excluded ) ) ) )

When the IAFP recently assembled other industry groups to discuss common standards that might be applied to planners Mr. Gargan 's group was excluded


( S ( NP-SBJ ( DT That ) ) ( VP ( MD may ) ( VP ( VB be ) ( SBAR-PRP-PRD ( IN because ) ( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Gargan ) ) ( S-ADV ( VP ( VBG smarting ) ( PP-CLR ( IN at ) ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD considered ) ( S ( NP-PRD ( NP ( NNS slurs ) ) ( PP ( IN on ) ( NP ( PRP$ his ) ( NN membership ) ( NNS standards ) ) ) ( VP ( VBN made ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( JJ rival ) ( NN group ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD enrolled ) ( NP ( NP ( PRP$ his ) ( NN dog ) ) ( NP ( NNP Beauregard ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( NN member ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP IAFP ) ) ) ) ) ) ) ) ) ) )

That may be because Mr. Gargan smarting at what he considered slurs on his membership standards made by the rival group enrolled his dog Beauregard as a member of the IAFP


( S ( RB Then ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD sent ) ( NP ( NP ( NP ( DT the ) ( NN pooch ) ( POS 's ) ) ( NN picture ) ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( NN certificate ) ) ( PP ( IN of ) ( NP ( NN membership ) ) ) ) ) ) ( PRN ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD was ) ( VP ( VBN made ) ( PRT ( RP out ) ) ( PP-CLR ( TO to ) ( NP-TTL ( NNP Boris ) ( NNP Bo ) ( NNP Regaard ) ) ) ) ) ) ) ( PP-DTV ( TO to ) ( NP ( NP ( DT every ) ( NN newspaper ) ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD could ) ( VP ( VB think ) ( PP-CLR ( IN of ) ) ) ) ) ) ) ) ) )

Then he sent the pooch 's picture with the certificate of membership it was made out to Boris Bo Regaard to every newspaper he could think of


( S ( NP-SBJ ( DT The ) ( NNS states ) ) ( VP ( VBP have ) ( NP ( NP ( PRP$ their ) ( JJ own ) ( NNS ideas ) ) ( PP ( IN about ) ( NP ( NN regulation ) ( CC and ) ( NN certification ) ) ) ) ) )

The states have their own ideas about regulation and certification


( S ( NP-SBJ ( NP ( NNP NASAA ) ) ( NP ( NP ( DT the ) ( NN organization ) ) ( PP ( IN of ) ( NP ( NN state ) ( NNS securities ) ( NNS regulators ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG pushing ) ( PP-CLR ( IN for ) ( NP ( NP ( DT a ) ( JJ model ) ( JJ regulatory ) ( NN statute ) ) ( VP ( ADVP-TMP ( RB already ) ) ( VBN adopted ) ( PP-LOC ( IN in ) ( NP ( CD eight ) ( NNS states ) ) ) ) ) ) ) ) )

NASAA the organization of state securities regulators is pushing for a model regulatory statute already adopted in eight states


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ requires ) ( S ( NP-SBJ ( JJ financial ) ( NNS planners ) ) ( VP ( TO to ) ( VP ( VP ( VB register ) ( PP-CLR ( IN with ) ( NP ( NNS states ) ) ) ) ( VP ( VB pass ) ( NP ( NN competency ) ( NNS tests ) ) ) ( CC and ) ( VP ( VB reveal ) ( PP-CLR ( TO to ) ( NP ( NNS customers ) ) ) ( NP ( NP ( DT any ) ( NNS conflicts ) ) ( PP ( IN of ) ( NP ( NN interest ) ) ) ) ) ) ) ) ) )

It requires financial planners to register with states pass competency tests and reveal to customers any conflicts of interest


( S ( NP-SBJ ( DT The ) ( ADJP ( RBS most ) ( JJ common ) ) ( NN conflict ) ) ( VP ( VBZ involves ) ( NP ( NN compensation ) ) ) )

The most common conflict involves compensation


( S ( NP-SBJ ( NNP NASAA ) ) ( VP ( VBZ estimates ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( QP ( RB nearly ) ( CD 90 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNS planners ) ) ) ) ( VP ( VBP receive ) ( NP ( NP ( DT some ) ( CC or ) ( DT all ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NN income ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( NNS sales ) ( NNS commissions ) ) ( PP ( IN on ) ( NP ( NP ( NP ( NNS securities ) ) ( NP ( NN insurance ) ) ( CC and ) ( NP ( JJ other ) ( JJ financial ) ( NNS products ) ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP recommend ) ) ) ) ) ) ) ) ) ) ) ) )

NASAA estimates that nearly 90 % of planners receive some or all of their income from sales commissions on securities insurance and other financial products they recommend


( NP ( NP ( DT The ) ( NN issue ) ) ( SQ ( VBZ Is ) ( NP-SBJ ( DT the ) ( NN planner ) ) ( VP ( VBG putting ) ( NP ( PRP$ his ) ( NNS clients ) ) ( PP-PUT ( IN into ) ( NP ( NP ( DT the ) ( JJS best ) ( NNS investments ) ) ( CC or ) ( NP ( NP ( DT the ) ( NNS ones ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP garner ) ( NP ( DT the ) ( JJS biggest ) ( NNS commissions ) ) ) ) ) ) ) ) ) ) )

The issue Is the planner putting his clients into the best investments or the ones that garner the biggest commissions


( S ( PP-TMP ( IN In ) ( NP ( CD 1986 ) ) ) ( NP-SBJ ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NN attorney ) ( NN general ) ( POS 's ) ) ( NN office ) ) ( VP ( VBD got ) ( NP ( NP ( DT an ) ( NN order ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( DT a ) ( NN state ) ( NN court ) ) ( PP-LOC ( IN in ) ( NP ( NNP Albany ) ) ) ) ) ( VP-1 ( VBG shutting ) ( PRT ( RP down ) ) ( NP ( NP ( NNP First ) ( NNP Meridian ) ( NNP Corp. ) ) ( NP ( NP ( DT an ) ( NNP Albany ) ( JJ financial-planning ) ( NN firm ) ) ( SBAR ( WHNP-4 ( WDT that ) ) ( S ( VP ( VBD had ) ( VP ( VBN invested ) ( NP ( QP ( CD 55 ) ( CD million ) ) ) ( PP ( IN on ) ( NP ( NP ( NN behalf ) ) ( PP ( IN of ) ( NP ( QP ( RB nearly ) ( CD 1,000 ) ) ( NNS investors ) ) ) ) ) ) ) ) ) ) ) ) ) )

In 1986 the New York attorney general 's office got an order from a state court in Albany shutting down First Meridian Corp. an Albany financial-planning firm that had invested 55 million on behalf of nearly 1,000 investors


( S ( S ( PP-LOC ( IN In ) ( NP ( NP ( PRP$ its ) ( NN notice ) ) ( PP ( IN of ) ( NP ( NN action ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN attorney ) ( NN general ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN company ) ) ( VP ( VBD had ) ( VP ( VBN promised ) ( S ( VP ( TO to ) ( VP ( VB put ) ( NP ( NNS clients ) ) ( PP-PUT ( IN into ) ( NP ( JJ balanced ) ( NN investment ) ( NNS portfolios ) ) ) ) ) ) ) ) ) ) ) ) ( S-2 ( ADVP ( RB instead ) ) ( PRN ( S ( NP-SBJ ( DT the ) ( NN attorney ) ( NN general ) ) ( VP ( VBN alleged ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( ADVP-MNR ( RB consistently ) ) ( VBD shoved ) ( NP ( JJ unwary ) ( NNS customers ) ) ( PP-DIR ( IN into ) ( NP ( NP ( JJ high-risk ) ( NNS investments ) ) ( PP ( IN in ) ( NP ( NP ( NNS paintings ) ) ( NP ( NNS coins ) ) ( CC and ) ( NP ( NNP Florida ) ( NNS condos ) ) ) ) ) ) ) ) )

In its notice of action the attorney general said the company had promised to put clients into balanced investment portfolios instead the attorney general alleged the company consistently shoved unwary customers into high-risk investments in paintings coins and Florida condos


( S ( S-TPC-4 ( NP-SBJ ( DT Those ) ( NNS investments ) ) ( VP ( VBD paid ) ( NP ( NP ( JJ big ) ( NNS commissions ) ) ) ( PP-DTV ( TO to ) ( NP ( NNP First ) ( NNP Meridian ) ) ) ( NP-3 ( NP ( NNS payments ) ) ( SBAR ( S ( NP-SBJ-2 ( NNS investors ) ) ( VP ( VBD were ) ( ADVP-TMP ( RB never ) ) ( VP ( VBN told ) ( PP-CLR ( IN about ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN attorney ) ( NN general ) ) ( VP ( VBD alleged ) ) )

Those investments paid big commissions to First Meridian payments investors were never told about the attorney general alleged


( S ( NP-SBJ-1 ( NNS Investors ) ) ( VP ( VBD were ) ( ADVP ( RB further ) ) ( VP ( VBN assured ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NP ( RB only ) ( DT those ) ) ( PP ( IN with ) ( NP ( DT a ) ( NN minimun ) ( JJ net ) ( NN worth ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN accepted ) ) ) ) ) ) ) ) )

Investors were further assured that only those with a minimun net worth would be accepted


( S-1 ( PP-LOC ( IN In ) ( NP ( NN practice ) ) ) ( PRN ( S ( NP-SBJ ( DT the ) ( NN attorney ) ( NN general ) ) ( VP ( VBN alleged ) ( PP-LOC ( IN in ) ( NP ( DT an ) ( NN affidavit ) ) ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT an ) ( NN investor ) ) ( VP ( VBD had ) ( NP ( NP ( NN access ) ) ( PP ( TO to ) ( NP ( NN cash ) ) ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NNS chances ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG being ) ( VP ( VBD turned ) ( PRT ( RP down ) ) ( PP ( IN by ) ( NP-LGS ( NNP First ) ( NNP Meridian ) ) ) ) ) ) ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( RB about ) ( RB as ) ( JJ probable ) ) ( PP ( IN as ) ( S-NOM ( VP ( VBG being ) ( VP ( VBD rejected ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NNP Book-of-the-Month ) ( NNP Club ) ) ) ) ) ) ) ) ) )

In practice the attorney general alleged in an affidavit if an investor had access to cash the chances of being turned down by First Meridian were about as probable as being rejected by the Book-of-the-Month Club


( S-1 ( CC And ) ( PRN ( S ( NP-SBJ ( DT the ) ( NN attorney ) ( NN general ) ) ( VP ( VBD added ) ) ) ) ( NP-SBJ ( NP ( NP ( NNP First ) ( NNP Meridian ) ( POS 's ) ) ( NN president ) ) ( NP ( NNP Roger ) ( NNP V. ) ( NNP Sala ) ) ) ( VP ( VBD portrayed ) ( NP ( PRP himself ) ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( JJ financial ) ( NN expert ) ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( PRP$ his ) ( NNS qualifications ) ) ( VP ( ADVP ( RB largely ) ) ( VBD consisted ) ( PP-CLR ( IN of ) ( NP ( NP ( DT a ) ( NN high-school ) ( NN diploma ) ) ( NP ( NP ( NN work ) ) ( PP ( IN as ) ( NP ( DT a ) ( NN real-estate ) ( CC and ) ( NN insurance ) ( NN salesman ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( NN stint ) ) ( PP ( IN as ) ( NP ( NP ( NN supervisor ) ) ( PP-LOC ( IN at ) ( NP ( DT a ) ( NN highway ) ( NN toll ) ( NN booth ) ) ) ) ) ) ) ) ) ) ) ) )

And the attorney general added First Meridian 's president Roger V. Sala portrayed himself as a financial expert when his qualifications largely consisted of a high-school diploma work as a real-estate and insurance salesman and a stint as supervisor at a highway toll booth


( S ( NP-SBJ ( NP ( NNP First ) ( NNP Meridian ) ) ( CC and ) ( NP ( PRP$ its ) ( NNS officials ) ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB currently ) ) ( PP-LOC-PRD ( IN under ) ( NP ( NP ( NN investigation ) ) ( PP ( IN for ) ( NP ( JJ possible ) ( JJ criminal ) ( NN wrongdoing ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN spokeswoman ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN attorney ) ( NN general ) ) ) ) ) ) ) )

First Meridian and its officials are currently under investigation for possible criminal wrongdoing according to a spokeswoman for the attorney general


( S ( NP-SBJ ( NP ( NNP Harry ) ( NNP Manion ) ) ( NP ( NP ( NNP Mr. ) ( NNP Sala ) ( POS 's ) ) ( NN attorney ) ) ) ( VP ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP$ his ) ( NN client ) ) ( VP ( VBZ denies ) ( NP ( DT any ) ( NN wrongdoing ) ) ) ) ) ) ( CC and ) ( VP ( VBZ adds ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NP ( DT the ) ( NN attorney ) ( NN general ) ( POS 's ) ) ( NNS contentions ) ) ( PP ( IN about ) ( NP ( NP ( NNP First ) ( NNP Meridian ) ( POS 's ) ) ( NN business ) ( NNS practices ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ incorrect ) ) ) ) ) ) ) )

Harry Manion Mr. Sala 's attorney says his client denies any wrongdoing and adds that the attorney general 's contentions about First Meridian 's business practices are incorrect


( SINV ( PP ( IN As ) ( PP ( IN for ) ( NP ( NP ( NNP Mr. ) ( NNP Sala ) ( POS 's ) ) ( NNS qualifications ) ) ) ) ( S-TPC-1 ( NP-SBJ ( NP ( DT the ) ( JJ snooty ) ( NNS attorneys ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN state ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP York ) ) ) ) ) ) ( VP ( VBD decided ) ( SBAR ( S ( NP-SBJ ( NNP Mr. ) ( NNP Sala ) ) ( VP ( VBD was ) ( RB n't ) ( ADJP-PRD ( VBD qualified ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB have ) ( NP ( DT a ) ( NNP Harvard ) ( NN degree ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Manion ) ) )

As for Mr. Sala 's qualifications the snooty attorneys for the state of New York decided Mr. Sala was n't qualified because he did n't have a Harvard degree says Mr. Manion


( S ( NP-SBJ ( NP ( JJ Civil ) ( NNS suits ) ) ( PP ( IN against ) ( NP ( NNS planners ) ) ) ( PP ( IN by ) ( NP ( NP ( NNS clients ) ) ( VP ( VBG seeking ) ( NP ( NP ( NN recovery ) ) ( PP ( IN of ) ( NP ( NNS funds ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( RB increasingly ) ( JJ common ) ) ) )

Civil suits against planners by clients seeking recovery of funds are increasingly common


( S ( S ( NP-SBJ ( NP ( CD Two ) ( JJ such ) ( NNS actions ) ) ( NP ( NP ( DT both ) ) ( VP ( VBD filed ) ( NP-TMP ( RB earlier ) ( DT this ) ( NN year ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Georgia ) ( NN state ) ( NN court ) ) ( PP-LOC ( IN in ) ( NP ( NNP Atlanta ) ) ) ) ) ) ) ) ( VP ( MD could ) ( VP ( VB be ) ( ADJP-PRD ( RB particularly ) ( VBG embarrassing ) ( PP ( TO to ) ( NP ( DT the ) ( NN industry ) ) ) ) ) ) ) ( S ( NP-SBJ ( DT both ) ) ( VP ( VBP name ) ( NP ( NP ( NNP J. ) ( NNP Chandler ) ( NNP Peterson ) ) ( NP ( NP ( DT an ) ( NNP Atlanta ) ( JJ financial ) ( NN planner ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NX ( NX ( NN founder ) ) ( CC and ) ( NX ( NN past ) ( NN chairman ) ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP IAFP ) ) ) ) ) ) ) ) ) ( PP-CLR ( IN as ) ( NP ( NN defendant ) ) ) ) ) )

Two such actions both filed earlier this year in Georgia state court in Atlanta could be particularly embarrassing to the industry both name J. Chandler Peterson an Atlanta financial planner who is a founder and past chairman of the IAFP as defendant


( S ( NP-SBJ ( NP ( CD One ) ( NN suit ) ) ( VP ( VBN filed ) ( PP ( IN by ) ( NP-LGS ( QP ( JJR more ) ( IN than ) ( CD three ) ( NN dozen ) ) ( NNS investors ) ) ) ) ) ( VP ( VBZ charges ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NNP Mr. ) ( NNP Peterson ) ) ( VP ( VBD misused ) ( NP ( NP ( JJ much ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( QP ( CD 9.7 ) ( CD million ) ) ) ( VP ( VBD put ) ( PP-PUT ( IN into ) ( NP ( NP ( DT a ) ( VBN limited ) ( NN partnership ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD operated ) ( CC and ) ( VBD promoted ) ) ) ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG spending ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( PRP it ) ) ) ) ( S-PRP ( VP ( VP ( TO to ) ( VP ( VB pay ) ( NP ( PRP$ his ) ( JJ own ) ( JJ legal ) ( NNS bills ) ) ) ) ( CC and ) ( VP ( TO to ) ( VP ( VB invest ) ( PP-CLR ( IN in ) ( NP ( NP ( JJ other ) ( NNS companies ) ) ( SBAR ( WHPP-4 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD had ) ( NP ( NP ( DT an ) ( NN interest ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

One suit filed by more than three dozen investors charges that Mr. Peterson misused much of the 9.7 million put into a limited partnership that he operated and promoted spending some of it to pay his own legal bills and to invest in other companies in which he had an interest


( S ( S-TPC-1 ( NP-SBJ ( DT Those ) ( NNS companies ) ) ( PP ( IN in ) ( NP ( NN turn ) ) ) ( VP ( VBD paid ) ( NP ( NNP Mr. ) ( NNP Peterson ) ) ( NP ( NNS commissions ) ( CC and ) ( NNS fees ) ) ) ) ( NP-SBJ ( DT the ) ( NN suit ) ) ( VP ( VBZ alleges ) ) )

Those companies in turn paid Mr. Peterson commissions and fees the suit alleges


( S ( NP-SBJ-3 ( DT The ) ( JJ other ) ( NN suit ) ) ( VP ( VBD was ) ( VP ( VBN filed ) ( PP ( IN by ) ( NP-LGS ( CD two ) ( NNS men ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( NN dispute ) ) ( PP ( IN over ) ( NP ( NP ( ADJP ( CD 100,000 ) ) ( NNS investments ) ) ( SBAR ( S ( NP-SBJ ( DT each ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD made ) ( PP ( IN with ) ( NP ( NNP Mr. ) ( NNP Peterson ) ) ) ( PP ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( DT an ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB purchase ) ( NP ( NP ( NP ( DT the ) ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NNP Scottsdale ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Scottsdale ) ) ( NP ( NNP Ariz ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The other suit was filed by two men in a dispute over 100,000 investments each says he made with Mr. Peterson as part of an effort to purchase the Bank of Scottsdale in Scottsdale Ariz


( S ( NP-SBJ ( NP ( CD One ) ( NN plaintiff ) ) ( NP ( DT a ) ( NN doctor ) ) ) ( VP ( VBD testified ) ( PP-LOC ( IN in ) ( NP ( DT an ) ( NN affidavit ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( ADVP ( RB also ) ) ( VP ( VBD gave ) ( NP ( NNP Mr. ) ( NNP Peterson ) ) ( NP ( NP ( CD 50,000 ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB join ) ( NP ( NP ( DT a ) ( NN sort ) ) ( PP ( IN of ) ( NP ( NN investment ) ( NN club ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( ADVP ( RB essentially ) ) ( VP ( VBD gave ) ( NP-3 ( DT the ) ( NN physician ) ) ( NP ( NP ( DT the ) ( NN privilege ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG making ) ( NP ( JJ additional ) ( NNS investments ) ) ( PP ( IN with ) ( NP ( NNP Mr. ) ( NNP Peterson ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

One plaintiff a doctor testified in an affidavit that he also gave Mr. Peterson 50,000 to join a sort of investment club which essentially gave the physician the privilege of making additional investments with Mr. Peterson


( S ( PP-LOC ( IN In ) ( NP ( NNS affidavits ) ) ) ( NP-SBJ ( DT each ) ( NN plaintiff ) ) ( VP ( VBZ claims ) ( SBAR ( S ( NP-SBJ ( NNP Mr. ) ( NNP Peterson ) ) ( VP ( VBD promised ) ( SBAR ( S ( S ( NP-SBJ-1 ( DT the ) ( NN bank ) ( NN purchase ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP-2 ( VBN completed ) ( PP-TMP ( IN by ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( CD 1988 ) ) ) ) ) ) ) ) ) ( CC or ) ( S ( NP-SBJ=1 ( DT the ) ( NN money ) ) ( VP=2 ( VBD returned ) ) ) ) ) ) ) ) ) )

In affidavits each plaintiff claims Mr. Peterson promised the bank purchase would be completed by the end of 1988 or the money returned


( S ( NP-SBJ ( NNP Mr. ) ( NNP Peterson ) ) ( VP ( VBD took ) ( NP ( NP ( NP ( DT the ) ( NNS plaintiffs ) ( POS ' ) ) ( CC and ) ( NP ( JJ other ) ( NNS investors ) ( POS ' ) ) ) ( NN money ) ) ( PP-DIR ( TO to ) ( NP ( NP ( DT a ) ( NN meeting ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN bank ) ( POS 's ) ) ( NNS directors ) ) ) ) ) ) )

Mr. Peterson took the plaintiffs ' and other investors ' money to a meeting of the bank 's directors


( SINV ( S-TPC-2 ( S-ADV ( VP ( VBG Wearing ) ( NP ( DT a ) ( NX ( NX ( NN business ) ( NN suit ) ) ( CC and ) ( NX ( JJ western-style ) ( NN hat ) ( CC and ) ( NNS boots ) ) ) ) ) ) ( NP-SBJ-1 ( PRP he ) ) ( VP ( VP ( VBD opened ) ( PRT ( RP up ) ) ( NP ( PRP$ his ) ( NN briefcase ) ) ) ( CC and ) ( VP ( VBD dumped ) ( NP ( NP ( QP ( CD 1 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NN cash ) ) ) ) ( PP-DIR ( IN on ) ( NP ( NP ( DT a ) ( NN table ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NN front ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS directors ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Myron ) ( NNP Diebel ) ) ( NP ( NP ( DT the ) ( NN bank ) ( POS 's ) ) ( NN president ) ) ) )

Wearing a business suit and western-style hat and boots he opened up his briefcase and dumped 1 million in cash on a table in front of the directors says Myron Diebel the bank 's president


( SINV ( S-TPC-1 ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD wanted ) ( S ( VP ( TO to ) ( VP ( VB show ) ( NP ( NP ( DT the ) ( NN color ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NN money ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ recalls ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Diebel ) ) )

He said he wanted to show the color of his money recalls Mr. Diebel


( S ( S ( NP-SBJ ( NN Bank ) ( NNS officials ) ) ( ADVP ( RB however ) ) ( VP ( VBD showed ) ( NP ( PRP him ) ) ( NP ( DT the ) ( NN door ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NN sale ) ) ( ADVP-TMP ( RB never ) ) ( VP ( VBD came ) ( PRT ( RP off ) ) ) ) )

Bank officials however showed him the door and the sale never came off


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( DT the ) ( NN suit ) ) ) ) ( NP-SBJ-1 ( NNP Mr. ) ( NNP Peterson ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB yet ) ) ( S ( VP ( TO to ) ( VP ( VB return ) ( NP ( NP ( DT the ) ( NNS plaintiffs ) ( POS ' ) ) ( NN investment ) ) ) ) ) ) )

According to the suit Mr. Peterson has yet to return the plaintiffs ' investment


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP want ) ( S ( NP-SBJ ( PRP it ) ) ( ADVP-PRD ( RB back ) ) ) ) )

They want it back


( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Peterson ) ) ( VP ( VBZ declines ) ( S ( VP ( TO to ) ( VP ( VB comment ) ( PP-CLR ( IN on ) ( NP ( NP ( JJ specific ) ( NNS allegations ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( CD two ) ( NNS suits ) ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG saying ) ( SBAR ( S ( NP-SBJ-2 ( PRP he ) ) ( VP ( VBZ prefers ) ( S ( VP ( TO to ) ( VP ( VB save ) ( NP ( JJ such ) ( NNS responses ) ) ( PP-PRP ( IN for ) ( NP ( NN court ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Peterson declines to comment on specific allegations in the two suits saying he prefers to save such responses for court


( S ( CC But ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ does ) ( VP ( VB say ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NNS activities ) ) ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( ADJP-PRD ( RB entirely ) ( JJ proper ) ) ) ) ) ) ) ) )

But he does say that all of his activities have been entirely proper


( S ( PP ( IN On ) ( NP ( NP ( DT the ) ( NN suit ) ) ( PP ( IN by ) ( NP ( DT the ) ( VBN limited ) ( NNS partners ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ is ) ( VP ( VBG considering ) ( NP ( NP ( DT a ) ( NN defamation ) ( NN suit ) ) ( PP ( IN against ) ( NP ( DT the ) ( NNS plaintiffs ) ) ) ) ) ) ) ) ) )

On the suit by the limited partners he says he is considering a defamation suit against the plaintiffs


( S-1 ( NP-SBJ ( DT The ) ( NN suit ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ adds ) ) ) ) ( VP ( VBZ is ) ( ADVP ( RB almost ) ) ( PP-PRD ( IN in ) ( NP ( NP ( DT the ) ( NN nature ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN vendetta ) ) ( PP ( IN by ) ( NP ( NP ( DT a ) ( NN handful ) ) ( PP ( IN of ) ( NP ( JJ disgruntled ) ( NNS people ) ) ) ) ) ) ) ) ) ) )

The suit he adds is almost in the nature of a vendetta by a handful of disgruntled people


( S ( PP ( VBG Rearding ) ( NP ( NP ( DT the ) ( NN suit ) ) ( PP ( IN over ) ( NP ( DT the ) ( NN bank ) ( NN bid ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Peterson ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBN filled ) ( PP-CLR ( IN with ) ( NP ( NP ( JJ inflammatory ) ( NN language ) ) ( CC and ) ( NP ( JJ half ) ( NNS truths ) ) ) ) ) ) ) ) ) )

Rearding the suit over the bank bid Mr. Peterson says it is filled with inflammatory language and half truths


( S ( NP-SBJ-1 ( PRP He ) ) ( VP ( VBZ declines ) ( S ( VP ( TO to ) ( VP ( VB go ) ( PP-CLR ( IN into ) ( NP ( NNS specifics ) ) ) ) ) ) ) )

He declines to go into specifics


( S ( NP-SBJ ( NNP Mr. ) ( NNP Peterson ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NNS suits ) ) ( PP ( IN against ) ( NP ( PRP him ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( NP ( JJR less ) ( DT a ) ( NN measure ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NN work ) ) ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT a ) ( NN sign ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS times ) ) ( SBAR ( WHPP-1 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NNS people ) ) ( ADVP ( RB generally ) ) ( VP ( VBP are ) ( ADJP-PRD ( RBR more ) ( JJ prone ) ( S ( VP ( TO to ) ( VP ( VB sue ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Peterson says the suits against him are less a measure of his work than they are a sign of the times in which people generally are more prone to sue


( S ( S-TPC-2 ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB know ) ( NP ( NP ( NN anybody ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN industry ) ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN experienced ) ( NP ( NN litigation ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

I do n't know anybody in the industry who has n't experienced litigation he says


( S ( NP-SBJ ( NNP Mr. ) ( NNP Peterson ) ) ( ADVP ( RB also ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB consider ) ( S ( NP-SBJ ( PRP himself ) ) ( NP-PRD ( DT a ) ( JJ financial ) ( NN planner ) ) ) ( ADVP-TMP ( RB anymore ) ) ) ) ) ) ) )

Mr. Peterson also says he does n't consider himself a financial planner anymore


( S ( NP-SBJ ( PRP He ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ calls ) ( S ( NP-SBJ ( PRP himself ) ) ( NP-PRD ( DT an ) ( NN investment ) ( NN banker ) ) ) ) )

He now calls himself an investment banker


( S ( PP-LOC ( IN In ) ( NP ( NP ( JJ many ) ( NX ( NX ( NNS scams ) ) ( CC or ) ( NX ( VBN alleged ) ( NNS scams ) ) ) ) ( VP ( VBG involving ) ( NP ( NNS planners ) ) ) ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJ plain ) ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ ( NP ( RB only ) ( DT a ) ( NN modicum ) ) ( PP ( IN of ) ( NP ( JJ common ) ( NN sense ) ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN part ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS investors ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB have ) ( VP ( VBN kept ) ( NP ( PRP them ) ) ( ADVP-CLR ( IN out ) ( PP ( IN of ) ( NP ( NP ( NN harm ) ( POS 's ) ) ( NN way ) ) ) ) ) ) ) ) ) ) )

In many scams or alleged scams involving planners it 's plain that only a modicum of common sense on the part of the investors would have kept them out of harm 's way


( SQ ( S-ADV ( VP ( VBG Using ) ( NP ( PRP it ) ) ) ) ( MD would ) ( RB n't ) ( NP-SBJ-1 ( DT a ) ( NN proessional ) ) ( VP ( VB hesitate ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( NP ( QP ( NNS tens ) ( IN of ) ( NNS thousands ) ) ) ( PP ( IN of ) ( NP ( NNS dollars ) ) ) ) ( PP-CLR ( ADVP ( RB just ) ) ( IN for ) ( NP ( DT a ) ( NN chance ) ( S ( VP ( TO to ) ( VP ( VB invest ) ( PP-CLR ( NN witha ) ( NN planner ) ) ) ) ) ) ) ) ) ) ) )

Using it would n't a proessional hesitate to pay tens of thousands of dollars just for a chance to invest witha planner


( S ( NP-SBJ-1 ( JJ Other ) ( NNS cases ) ) ( VP ( VBP go ) ( S ( VP ( TO to ) ( VP ( VB show ) ( SBAR ( IN that ) ( S ( S ( NP-SBJ ( DT an ) ( JJ old ) ( NN saw ) ) ( ADVP-TMP ( RB still ) ) ( VP ( VBZ applies ) ) ) ( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ sounds ) ( ADJP-PRD ( RB too ) ( JJ good ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ true ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( ADVP ( RB probably ) ) ( VP ( VBZ is ) ) ) ) ) ) ) ) ) )

Other cases go to show that an old saw still applies If it sounds too good to be true it probably is


( S ( S ( NP-SBJ ( NP ( NNS Certificates ) ) ( PP ( IN of ) ( NP ( NN deposit ) ) ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB pay ) ( NP ( NP ( CD 23 ) ( NN % ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ( PP ( IN for ) ( NP ( NN example ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT that ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB give ) ( NP ( NN pause ) ) ( PP-DTV ( TO to ) ( NP ( NP ( NNS clients ) ) ( PP ( IN of ) ( NP ( CD one ) ( NNP Alabama ) ( NN planner ) ) ) ) ) ) ) ) )

Certificates of deposit do n't pay 23 % a year for example but that did n't give pause to clients of one Alabama planner


( S ( ADVP-TMP ( RB Now ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP 're ) ( NP-PRD ( NNS losers ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ 's ) ( PP-LOC-PRD ( IN in ) ( NP ( NN jail ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Mobile ) ( NNP County ) ) ) ) ) )

Now they 're losers and he 's in jail in Mobile County


( S ( S ( NP-SBJ ( NP ( NNS CDs ) ) ( VP ( VBG yielding ) ( NP ( CD 40 ) ( NN % ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADVP ( RB even ) ( RBR more ) ) ( JJ implausible ) ) ( SBAR-TMP ( ADVP ( RB especially ) ) ( WHADVP ( WRB when ) ) ( S ( NP-SBJ ( NP ( DT the ) ( VBG issuing ) ( NN bank ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Marshall ) ( NNP Islands ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( RB merely ) ( DT a ) ( NN mail ) ( NN drop ) ) ( VP ( VBD watched ) ( PRT ( RP over ) ) ( PP ( IN by ) ( NP-LGS ( DT a ) ( JJ local ) ( JJ gas-station ) ( NN operator ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( VBD fell ) ( PP-CLR ( IN for ) ( NP ( DT that ) ( CD one ) ( RB too ) ) ) ) ) )

CDs yielding 40 % are even more implausible especially when the issuing bank in the Marshall Islands is merely a mail drop watched over by a local gas-station operator but investors fell for that one too


( FRAG ( CC And ) ( NP ( NP ( DT the ) ( NNP Colorado ) ( NN planner ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD promised ) ( S ( VP ( TO to ) ( VP ( VB make ) ( S ( NP-SBJ ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NNS clients ) ) ) ) ( NP-PRD ( NNS millionaires ) ) ) ( PP ( IN on ) ( NP ( NP ( NNS investments ) ) ( PP ( IN of ) ( NP ( QP ( RB as ) ( JJ litle ) ( IN as ) ( CD 100 ) ) ) ) ) ) ) ) ) ) ) ) ) )

And the Colorado planner who promised to make some of his clients millionaires on investments of as litle as 100


( S ( ADVP-TMP ( RB Never ) ) ( VP ( VB mind ) ) )

Never mind


( S ( NP-SBJ ( PRP You ) ) ( ADVP-TMP ( RB already ) ) ( VP ( VBP know ) ( NP ( DT the ) ( NN answer ) ) ) )

You already know the answer


( S ( NP-SBJ ( NNP Mr. ) ( NNP Emshwiller ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN staff ) ( NN reporter ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT The ) ( NNP Wall ) ( NNP Street ) ( NNP Journal ) ( POS 's ) ) ( NNP Los ) ( NNP Angeles ) ( NN bureau ) ) ) ) ) )

Mr. Emshwiller is a staff reporter in The Wall Street Journal 's Los Angeles bureau


( S ( NP-SBJ-1 ( NP ( NN Price ) ( NNS wars ) ) ( PP ( IN between ) ( NP ( DT the ) ( NN fast-food ) ( NNS giants ) ) ) ) ( VP ( VBP are ) ( VP ( VBG starting ) ( S ( VP ( TO to ) ( VP ( VB clobber ) ( NP ( NP ( DT the ) ( NN fast-food ) ( JJ little ) ( NNS guys ) ) ( NP ( DT the ) ( NNS franchisees ) ) ) ) ) ) ) ) )

Price wars between the fast-food giants are starting to clobber the fast-food little guys the franchisees


( SINV ( S-TPC-4 ( SBAR-TMP ( WHADVP-2 ( WRB When ) ) ( S ( NP-SBJ-1 ( NNS elephants ) ) ( VP ( VB start ) ( S ( VP ( VBG fighting ) ) ) ) ) ) ( NP-SBJ-3 ( NNS ants ) ) ( VP ( VB get ) ( VP ( VBN killed ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Murray ) ( NNP Riese ) ) ( NP ( NP ( NN co-owner ) ) ( PP ( IN of ) ( NP ( NP ( NNP National ) ( NNP Restaurants ) ) ( NP ( NP ( DT a ) ( NNP New ) ( NNP York ) ( NN franchisee ) ) ( PP ( IN for ) ( NP ( NP ( NNP Pizza ) ( NNP Hut ) ) ( NP ( NNP Roy ) ( NNP Rogers ) ) ( CC and ) ( NP ( JJ other ) ( NNS chains ) ) ) ) ) ) ) ) ) )

When elephants start fighting ants get killed says Murray Riese co-owner of National Restaurants a New York franchisee for Pizza Hut Roy Rogers and other chains


( S ( SBAR-TMP ( IN As ) ( S ( NP-SBJ ( NN hamburger ) ( CC and ) ( NN pizza ) ( NNS outlets ) ) ( VP ( VB saturate ) ( NP ( NP ( CD one ) ( NN area ) ) ( PP ( IN after ) ( NP ( DT another ) ) ) ) ) ) ) ( NP-SBJ-1 ( NNS franchisers ) ) ( VP ( VBP are ) ( VP ( VBG struggling ) ( ADVP-MNR ( RB desperately ) ) ( PP-CLR ( IN for ) ( NP ( NN market ) ( NN share ) ) ) ( S-ADV ( VP ( VP ( VBG slashing ) ( NP ( NNS prices ) ) ) ( CC and ) ( VP ( VBG stepping ) ( PRT ( RP up ) ) ( NP ( JJ costly ) ( NNS promotions ) ) ) ) ) ) ) )

As hamburger and pizza outlets saturate one area after another franchisers are struggling desperately for market share slashing prices and stepping up costly promotions


( S ( NP-SBJ-1 ( DT The ) ( NN fight ) ) ( VP ( VBZ is ) ( VP ( VBG putting ) ( NP ( DT a ) ( JJ tight ) ( NN squeeze ) ) ( PP-PUT ( IN on ) ( NP ( NP ( NNS profits ) ) ( PP ( IN of ) ( NP ( JJ many ) ) ) ) ) ) ( S-ADV ( VP ( VP ( VBG threatening ) ( S ( VP ( TO to ) ( VP ( VB drive ) ( NP ( DT the ) ( JJS smallest ) ( NNS ones ) ) ( PP-DIR ( IN out ) ( PP ( IN of ) ( NP ( NN business ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBG straining ) ( NP ( NP ( NNS relations ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( JJ national ) ( NN fast-food ) ( NNS chains ) ) ( CC and ) ( NP ( PRP$ their ) ( NNS franchisees ) ) ) ) ) ) ) ) ) )

The fight is putting a tight squeeze on profits of many threatening to drive the smallest ones out of business and straining relations between the national fast-food chains and their franchisees


( SINV ( S-TPC-3 ( S ( NP-SBJ-1 ( DT The ) ( NNS chains ) ) ( VP ( VBN used ) ( S ( VP ( TO to ) ( VP ( VB offer ) ( NP ( NNS discounts ) ) ( PP-TMP ( IN during ) ( NP ( NP ( NN winter ) ) ( SBAR ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( NN business ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ slow ) ) ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ last ) ( NN year ) ( QP ( CC or ) ( RB so ) ) ) ) ( NP-SBJ ( VBG discounting ) ) ( VP ( VBZ has ) ( VP ( VBN become ) ( NP-PRD ( DT a ) ( JJ 12-month ) ( NN thing ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Donald ) ( NNP Harty ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP Charisma ) ( NNP Group ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( NNP New ) ( NNP York ) ( NN franchisee ) ) ( PP ( IN of ) ( NP ( NP ( NNP Grand ) ( NNP Metropolitan ) ( NNP PLC ) ( POS 's ) ) ( NNP Burger ) ( NNP King ) ( NN chain ) ) ) ) ) ) ) ) )

The chains used to offer discounts during winter when business was slow but in the last year or so discounting has become a 12-month thing says Donald Harty president of Charisma Group Inc. a New York franchisee of Grand Metropolitan PLC 's Burger King chain


( S ( SBAR-ADV ( NNP Though ) ( S ( NP-SBJ ( NP ( NNP Charisma ) ( POS 's ) ) ( NNS sales ) ) ( VP ( VBP are ) ( ADVP-PRD ( IN up ) ( RB slightly ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Harty ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NNS profits ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ flat ) ( CC or ) ( JJR lower ) ) ) ) ) ) ) )

Though Charisma 's sales are up slightly this year Mr. Harty says profits will be flat or lower


( S ( CC And ) ( NP-SBJ ( NP ( NNP Bill ) ( NNP Konopnicki ) ) ( NP ( NP ( DT a ) ( NAC-LOC ( NNP Safford ) ( NNP Ariz. ) ) ( NN licensee ) ) ( PP ( IN of ) ( NP ( NP ( NN McDonald ) ( POS 's ) ) ( NN Corp. ) ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNP National ) ( NNP Operators ) ( NNP Advisory ) ( NNP Board ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( DT some ) ( NN fast-food ) ( NNS outlets ) ) ( VP ( MD could ) ( VP ( VB be ) ( PP-LOC-PRD ( IN in ) ( NP ( JJ serious ) ( NN trouble ) ) ) ( PP ( VBN based ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN amount ) ) ( PP ( IN of ) ( NP ( NP ( VBG discounting ) ) ( SBAR ( WHNP-2 ( DT that ) ) ( S ( VP ( VBZ seems ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBG going ) ( PRT ( IN on ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

And Bill Konopnicki a Safford Ariz. licensee of McDonald 's Corp. who is chairman of the company 's National Operators Advisory Board says some fast-food outlets could be in serious trouble based on the amount of discounting that seems to be going on


( S ( PP-TMP ( IN Until ) ( NP ( RB recently ) ) ) ( NP-SBJ ( NP ( DT the ) ( JJ huge ) ( NN fast-food ) ( NN industry ) ) ( PP ( IN with ) ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 60.1 ) ( CD billion ) ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ) ( VP ( VBD kept ) ( NP ( JJ price-skirmishing ) ) ( PP-CLR ( TO to ) ( NP ( DT a ) ( NN minimum ) ) ) ) )

Until recently the huge fast-food industry with sales of about 60.1 billion last year kept price-skirmishing to a minimum


( S ( S-TPC-1 ( CC But ) ( NP-TMP ( RB early ) ( DT this ) ( NN year ) ) ( NP-SBJ ( NP ( NP ( NNP PepsiCo ) ( NNP Inc. ) ( POS 's ) ) ( NNP Taco ) ( NNP Bell ) ( NN unit ) ) ( CC and ) ( NP ( NP ( NN Wendy ) ( POS 's ) ) ( NNP International ) ( NNP Inc. ) ) ) ( VP ( VP ( VBD slashed ) ( NP ( NNS prices ) ) ) ( CC and ) ( VP ( VBD stepped ) ( PRT ( RP up ) ) ( NP ( NNS promotions ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP John ) ( NNP Rohs ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP ( IN for ) ( NP ( NNP Wertheim ) ( NNP Schroder ) ( CC & ) ( NNP Co ) ) ) ) ) )

But early this year PepsiCo Inc. 's Taco Bell unit and Wendy 's International Inc. slashed prices and stepped up promotions says John Rohs an analyst for Wertheim Schroder & Co


( S ( NP-SBJ ( WDT That ) ) ( VP ( VBD brought ) ( NP ( NP ( DT a ) ( NN chain ) ( NN reaction ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN industry ) ) ) ) ) )

That brought a chain reaction in the industry


( S ( NP-SBJ-1 ( DT The ) ( NN situation ) ) ( VP ( VBD was ) ( VP ( ADVP ( RB further ) ) ( VBN aggravated ) ( NP-TMP ( NP ( RB early ) ( DT this ) ( NN month ) ) ( SBAR ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( NP ( NN McDonald ) ) ( VBZ 's ) ) ( VP ( VBN set ) ( NP ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB heat ) ( PRT ( RP up ) ) ( NP ( DT the ) ( VBG discounting ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG offering ) ( NP ( NNS coupons ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The situation was further aggravated early this month when McDonald 's set plans to heat up the discounting by offering coupons


( S ( NP-SBJ-1 ( PRP It ) ) ( ADVP ( RB also ) ) ( VP ( VBD decided ) ( S ( VP ( TO to ) ( VP ( VB go ) ( ADJP-PRD ( JJ national ) ) ( PP-CLR ( IN with ) ( NP ( NP ( NN pizza ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( JJ test-marketing ) ) ) ) ) ) ) ) ) ) ) ) )

It also decided to go national with pizza which it has been test-marketing


( S ( S ( INTJ ( RB Now ) ) ( NP-SBJ ( NP ( JJ two-for-one ) ( NNS deals ) ) ( PP ( IN on ) ( NP ( NN pizza ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ common ) ) ) ) ( SINV ( RB so ) ( VP ( VBP are ) ) ( NP-SBJ ( NP ( CD 99-cent ) ( NNS specials ) ) ( PP ( IN on ) ( NP ( NP ( NNS sandwiches ) ) ( VP ( ADVP ( RB normally ) ) ( VBN priced ) ( ADVP-CLR ( RB twice ) ( IN as ) ( JJ high ) ) ) ) ) ) ) )

Now two-for-one deals on pizza are common so are 99-cent specials on sandwiches normally priced twice as high


( S-2 ( NP-SBJ ( DT The ) ( VBG discounting ) ) ( PRN ( SINV ( VP ( VB say ) ) ( NP-SBJ ( NN fast-food ) ( NNS operators ) ) ) ) ( VP ( VBZ occurs ) ( PP ( PP ( IN on ) ( NP ( NP ( DT a ) ( NN scale ) ) ) ) ( CC and ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( NN frequency ) ) ) ) ( SBAR-3 ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN seen ) ( ADVP-TMP ( IN before ) ) ) ) ) ) ) ) )

The discounting say fast-food operators occurs on a scale and with a frequency they have n't seen before


( S ( NP-SBJ ( DT The ) ( NN result ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ-1 ( DT some ) ( NNS franchisees ) ) ( VP ( VBP are ) ( VP ( VBG running ) ( ADVP-MNR ( RB hard ) ) ( S-PRP ( ADVP ( RB just ) ) ( VP ( TO to ) ( VP ( VB stay ) ( ADVP-PRD ( RB even ) ) ) ) ) ( S-ADV ( VP ( VP ( VBG laying ) ( PRT ( RP off ) ) ( NP ( JJ middle ) ( NNS managers ) ) ) ( CC and ) ( VP ( VBG working ) ( ADVP-MNR ( RB harder ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB make ) ( NP ( JJR less ) ) ) ) ) ) ) ) ) ) ) ) ) )

The result is that some franchisees are running hard just to stay even laying off middle managers and working harder to make less


( S ( NP-SBJ ( NP ( NNP Joe ) ( NNP Mack ) ) ( NP ( NP ( DT a ) ( NN district ) ( NN manager ) ) ( PP ( IN for ) ( NP ( NP ( NNP Cormack ) ( NNP Enterprises ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( NNP Burger ) ( NNP King ) ( NN operator ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Omaha ) ) ( NP ( NNP Neb. ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( VBG discounting ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB so ) ( JJ prevalent ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP we ) ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB serve ) ( NP ( ADJP ( NP ( QP ( CD 15 ) ( NN % ) ( TO to ) ( CD 20 ) ( NN % ) ) ) ( JJR more ) ) ( NNS customers ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB keep ) ( S ( NP-SBJ ( JJ sales ) ) ( ADJP-PRD ( NN level ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Joe Mack a district manager for Cormack Enterprises Inc. a Burger King operator in Omaha Neb. says discounting is so prevalent that we have to serve 15 % to 20 % more customers to keep sales level


( S ( S-TPC-2 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( SBAR-PRD ( ADVP ( RB almost ) ) ( IN as ) ( IN if ) ( S ( NP-SBJ-1 ( PRP you ) ) ( VP ( VBP 're ) ( VP ( VBG doing ) ( NP ( JJ extra ) ( NN work ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB give ) ( PRT ( RP away ) ) ( NP ( DT the ) ( NN food ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

It 's almost as if you 're doing extra work to give away the food he says


( S ( NP-SBJ ( NP ( NNP Alan ) ( NNP D'Agosto ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NN Panda ) ( POS 's ) ) ( NN Inc. ) ) ( NP ( NP ( DT an ) ( NN operator ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NN Arby ) ( POS 's ) ) ( NNS restaurants ) ) ( PP-LOC ( IN in ) ( NP ( NN Omaha ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ( S ( S ( NP-SBJ ( NP ( DT All ) ) ( SBAR ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( VP ( VBG doing ) ) ) ) ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( VBG keeping ) ( S ( NP-SBJ ( DT the ) ( NNS customers ) ) ( VP ( VBG coming ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP are ) ( RB n't ) ( VP ( VBG increasing ) ( NP ( NNS sales ) ) ) ) ) ) ) )

Alan D'Agosto president of Panda 's Inc. an operator of Arby 's restaurants in Omaha says All we 're doing is keeping the customers coming but we are n't increasing sales


( S ( S ( SBAR-ADV ( IN With ) ( S ( NP-SBJ ( NN fast-food ) ( NNS outlets ) ) ( PP-LOC-PRD ( IN on ) ( NP ( DT every ) ( NN corner ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( PP ( IN like ) ( NP ( JJ many ) ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB think ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ has ) ( NP ( DT a ) ( NN choice ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN price ) ( NN war ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( PRP$ Our ) ( NNS customers ) ) ( VP ( VB say ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB go ) ( PP-DIR ( IN into ) ( NP ( DT a ) ( NN fast-food ) ( NN store ) ) ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VB get ) ( NP ( DT a ) ( NN coupon ) ) ) ) ) ) ) ) ) ) ) )

With fast-food outlets on every corner he like many does n't think he has a choice in the price war Our customers say that they wo n't go into a fast-food store unless they get a coupon


( SINV ( S-TPC-2 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NN battle ) ) ( VP ( VBZ continues ) ( ADVP-TMP ( RB much ) ( JJR longer ) ) ) ) ) ( NP-SBJ ( JJ many ) ( NN fast-food ) ( NNS businesses ) ) ( VP ( MD will ) ( VP ( VB close ) ( CC or ) ( VB merge ) ) ) ) ( VP ( VBZ predicts ) ) ( NP-SBJ ( NP ( NNP Vincent ) ( NNP Morrissey ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ owns ) ( NP ( NP ( DT a ) ( NN string ) ) ( PP ( IN of ) ( NP ( NNP Kentucky ) ( NNP Fried ) ( NNP Chicken ) ( NNS stores ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJS Midwest ) ) ) ) ) ) ) ) )

If the battle continues much longer many fast-food businesses will close or merge predicts Vincent Morrissey who owns a string of Kentucky Fried Chicken stores in the Midwest


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN industry ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ overbuilt ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

The industry is overbuilt he says


( S ( NP-SBJ-1 ( NN Fast-food ) ( NNS franchisers ) ) ( VP ( VB have ) ( VP ( VBN managed ) ( S ( VP ( TO to ) ( VP ( VB squeeze ) ( ADVP-CLR ( RB in ) ) ( NP ( NNS stores ) ) ( PP-DIR ( IN into ) ( NP ( NP ( DT every ) ( NN corner ) ) ( ADJP ( JJ available ) ) ) ) ) ) ) ) ) )

Fast-food franchisers have managed to squeeze in stores into every corner available


( S ( NP-SBJ ( DT The ) ( NNP National ) ( NNP Restaurant ) ( NNP Association ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NP ( JJ quick-service ) ( NN restaurant ) ( NNS units ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 14 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( CD 131,146 ) ) ) ( PP-TMP ( IN between ) ( NP ( NP ( CD 1983 ) ) ( CC and ) ( NP ( NP ( CD 1987 ) ) ( NP ( NP ( DT the ) ( JJ last ) ( NN year ) ) ( SBAR ( WHPP-1 ( IN for ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NNS figures ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ available ) ) ) ) ) ) ) ) ) ) ) ) ) )

The National Restaurant Association says quick-service restaurant units in the U.S. rose 14 % to 131,146 between 1983 and 1987 the last year for which figures are available


( S-1 ( SBAR-ADV ( IN With ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( ADJP-PRD ( RB so ) ( VBN crowded ) ) ) ) ( PRN ( SINV ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( DT a ) ( NN spokesman ) ) ( PP ( IN for ) ( NP ( NP ( NN Wendy ) ( VBZ 's ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Columbus ) ) ( NP ( NNP Ohio ) ) ) ) ) ) ) ) ) ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP 're ) ( VP ( VBG doing ) ( ADVP-MNR ( RB well ) ) ) ) ) ) ( NP-SBJ ( PRP you ) ) ( VP ( VBP 're ) ( VP ( VBG doing ) ( ADVP-MNR ( RB well ) ) ( PP ( IN at ) ( NP ( NP ( NP ( NN someone ) ) ( ADJP ( RB else ) ) ( POS 's ) ) ( NN expense ) ) ) ) ) )

With the market so crowded says a spokesman for Wendy 's in Columbus Ohio If you 're doing well you 're doing well at someone else 's expense


( S ( S-ADV ( VP ( ADVP-MNR ( RB Simply ) ) ( VBN put ) ) ) ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( RB n't ) ( NP-PRD ( JJ enough ) ( NN business ) ( SBAR ( IN for ) ( S ( NP-SBJ ( DT every ) ( NN store ) ) ( VP ( TO to ) ( VP ( VB grow ) ) ) ) ) ) ) )

Simply put there is n't enough business for every store to grow


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( NNP Mr. ) ( NNP Rohs ) ) ) ) ( NP-SBJ ( NP ( CD inflation-adjusted ) ( CD same-store ) ( NNS sales ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NP ( JJ company-owned ) ( NN Wendy ) ( POS 's ) ) ( NNS units ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ) ) ( VP ( VB have ) ( VP ( VBN trailed ) ( NP ( JJ year-earlier ) ( NNS levels ) ) ( PP-TMP ( IN throughout ) ( NP ( CD 1989 ) ) ) ( PP ( IN except ) ( PP ( IN for ) ( NP ( NNP August ) ) ) ) ) ) )

According to Mr. Rohs inflation-adjusted same-store sales at company-owned Wendy 's units in the U.S. have trailed year-earlier levels throughout 1989 except for August


( S ( S-TPC-1 ( NP-SBJ-2 ( VB McDonald ) ( POS 's ) ) ( VP ( VBZ has ) ( ADVP ( RB also ) ) ( VP ( VBN been ) ( VP ( VBG running ) ( S-ADV ( ADJP-PRD ( JJ negative ) ) ) ( NP-TMP ( DT all ) ( NN year ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN analyst ) ) ( VP ( VBZ says ) ) )

McDonald 's has also been running negative all year the analyst says


( S ( NP-SBJ ( NP ( NNP Spokesmen ) ) ( PP ( IN for ) ( NP ( NP ( NNP Wendy ) ( POS 's ) ) ( CC and ) ( NP ( NNP McDonald ) ( POS 's ) ) ) ) ) ( VP ( VBN criticized ) ( NP ( NP ( NNP Mr. ) ( NNP Rohs ) ( POS 's ) ) ( NNS calculations ) ) ) )

Spokesmen for Wendy 's and McDonald 's criticized Mr. Rohs 's calculations


( S ( NP-SBJ ( NP ( NNP Jack ) ( NNP Greenberg ) ) ( NP ( NP ( NP ( JJ executive ) ( NN vice ) ( NN president ) ) ( CC and ) ( NP ( JJ chief ) ( JJ financial ) ( NN officer ) ) ) ( PP ( IN of ) ( NP ( NP ( NNP McDonald ) ( POS 's ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB compute ) ( ADVP ( RB much ) ( RBR less ) ) ( VB disclose ) ( NP ( JJ inflation-adjusted ) ( JJ same-store ) ( NNS sales ) ) ) ) ) ) ) )

Jack Greenberg executive vice president and chief financial officer of McDonald 's says the company does n't compute much less disclose inflation-adjusted same-store sales


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ adds ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ short-term ) ( NNS comparisons ) ) ( VP ( MD can ) ( VP ( VB be ) ( ADJP-PRD ( RB very ) ( JJ misleading ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( NNS differences ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NN timing ) ) ( PP ( IN of ) ( NP ( VBG marketing ) ( NNS programs ) ) ) ) ) ( PP-TMP ( PP ( IN from ) ( NP ( NN year ) ) ) ( PP ( TO to ) ( NP ( NN year ) ) ) ) ) ) ) ) ) ) ) )

He adds that short-term comparisons can be very misleading because of differences in timing of marketing programs from year to year


( S ( S-TPC-1 ( NP-SBJ ( NP ( NN Profit ) ( NNS margins ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NP ( JJ company-owned ) ( NN McDonald ) ( POS 's ) ) ( NNS outlets ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBG holding ) ( PRT ( RP up ) ) ( ADVP-MNR ( RB quite ) ( RB nicely ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Greenberg ) ) )

Profit margins at company-owned McDonald 's outlets in the U.S. are holding up quite nicely says Mr. Greenberg


( S ( S-TPC-1 ( NP-SBJ ( NP ( NNS Profits ) ) ( PP ( IN of ) ( NP ( NNS franchisees ) ) ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN been ) ( ADJP-PRD ( JJR higher ) ) ( PP-TMP ( IN since ) ( NP ( DT the ) ( CD mid-1970s ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ adds ) ) )

Profits of franchisees have n't been higher since the mid-1970s he adds


( S ( CC But ) ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Greenberg ) ( POS 's ) ) ( JJ sanguine ) ( NN outlook ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN matched ) ( PP ( IN by ) ( NP-LGS ( JJ many ) ( NN fast-food ) ( NN industry ) ( NNS observers ) ) ) ) ) )

But Mr. Greenberg 's sanguine outlook is n't matched by many fast-food industry observers


( S ( S-TPC-1 ( NP-SBJ ( NP ( JJR Smaller ) ( NNS chains ) ) ( CC and ) ( NP ( JJ single-store ) ( NNS operators ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( NP ( DT the ) ( JJ first ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB fail ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( JJ many ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN industry ) ) ) ) ( VP ( VB predict ) ) )

Smaller chains and single-store operators will be the first to fail many in the industry predict


( SINV ( S-TPC-1 ( NP-SBJ ( JJ Big ) ( NN franchise ) ( NNS groups ) ) ( VP ( MD can ) ( VP ( VB ride ) ( ADVP-CLR ( IN out ) ) ( NP ( DT the ) ( NN storm ) ) ( ADVP-TMP ( NP ( DT a ) ( NN lot ) ) ( RB longer ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Harty ) ) ( NP ( NP ( DT the ) ( NNP Burger ) ( NNP King ) ( NN operator ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ) ) )

Big franchise groups can ride out the storm a lot longer says Mr. Harty the Burger King operator in New York


( S ( NP-SBJ ( DT The ) ( VBN prolonged ) ( NN price ) ( NNS pressures ) ) ( VP ( VBP are ) ( VP ( VBG driving ) ( NP ( DT a ) ( NN wedge ) ) ( PP-DIR ( IN between ) ( NP ( NP ( DT some ) ( NNS franchisers ) ) ( CC and ) ( NP ( PRP$ their ) ( NNS franchisees ) ) ) ) ) ) )

The prolonged price pressures are driving a wedge between some franchisers and their franchisees


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Morrissey ) ) ( NP ( DT the ) ( NNP Kentucky ) ( NNP Fried ) ( NNP Chicken ) ( NN franchisee ) ) ) ( VP ( VBZ notes ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJS most ) ( NN franchise ) ( NNS owners ) ) ( VP ( MD must ) ( VP ( VB absorb ) ( NP ( NP ( NNS increases ) ) ( PP-LOC ( IN in ) ( NP ( NNS expenses ) ) ) ) ( PP ( IN without ) ( NP ( NP ( DT any ) ( NN cut ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( DT the ) ( NNS royalties ) ) ( CC or ) ( NP ( NP ( NN portion ) ) ( PP ( IN of ) ( NP ( NNS sales ) ) ) ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD must ) ( VP ( VB pay ) ( NP ( NNS franchisers ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Morrissey the Kentucky Fried Chicken franchisee notes that most franchise owners must absorb increases in expenses without any cut in the royalties or portion of sales that they must pay franchisers


( S ( NP-SBJ-1 ( NNS Franchisees ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN forced ) ( S ( VP ( TO to ) ( VP ( VB go ) ( PRT ( RP along ) ) ( PP-CLR ( IN with ) ( NP ( NP ( DT a ) ( NN franchiser ) ( POS 's ) ) ( VBG discounting ) ) ) ) ) ) ) ) ) )

Franchisees ca n't be forced to go along with a franchiser 's discounting


( SINV ( CC But ) ( S-TPC-1 ( SBAR-TMP ( RB once ) ( S ( NP-SBJ ( DT a ) ( NN franchisee ) ) ( VP ( VBZ agrees ) ( PP-CLR ( TO to ) ( NP ( DT a ) ( JJ promotional ) ( NN program ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN franchiser ) ) ( VP ( MD can ) ( VP ( VB demand ) ( NP ( JJ full ) ( NN participation ) ) ( PP-TMP ( TO to ) ( NP ( DT the ) ( JJ very ) ( NN end ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Lew ) ( NNP Rudnick ) ) ( NP ( NP ( DT a ) ( NN principal ) ) ( PP ( IN of ) ( NP ( NP ( NNP Rudnick ) ( CC & ) ( NNP Wolfe ) ) ( NP ( NP ( DT a ) ( NNP Chicago ) ( NN law ) ( NN firm ) ) ( PP ( IN with ) ( NP ( NN franchise ) ( NN industry ) ( NNS clients ) ) ) ) ) ) ) ) )

But once a franchisee agrees to a promotional program the franchiser can demand full participation to the very end says Lew Rudnick a principal of Rudnick & Wolfe a Chicago law firm with franchise industry clients


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NNS courts ) ) ( VP ( VB have ) ( VP ( VBN held ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( JJ antitrust ) ( NNS considerations ) ) ( VP ( VBP are ) ( VP ( VBN outweighed ) ( PP-LOC ( IN in ) ( NP ( JJ such ) ( NNS cases ) ) ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NN need ) ( S ( VP ( TO to ) ( VP ( VB protect ) ( NP ( NNS consumers ) ) ( PP-CLR ( IN from ) ( NP ( JJ deceptive ) ( NN marketing ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

He says courts have held that antitrust considerations are outweighed in such cases by the need to protect consumers from deceptive marketing


( S ( PP-LOC ( IN In ) ( NP ( DT any ) ( NN case ) ) ) ( NP-SBJ-1 ( JJ many ) ( NNS franchisees ) ) ( SBAR-PRP ( IN in ) ( NN order ) ( S ( VP ( TO to ) ( VP ( VB stay ) ( PP-CLR ( IN on ) ( NP ( NP ( JJ good ) ( NNS terms ) ) ( PP ( IN with ) ( NP ( NNS franchisers ) ) ) ) ) ) ) ) ) ( ADVP-TMP ( RB routinely ) ) ( VP ( VB go ) ( PRT ( RP along ) ) ( PP-CLR ( IN with ) ( NP ( NNS promotions ) ) ) ) )

In any case many franchisees in order to stay on good terms with franchisers routinely go along with promotions


( SINV ( VP ( VBZ Says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Riese ) ) ( PP ( IN of ) ( NP ( NNP National ) ( NNP Restaurants ) ) ) ) ( S-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBD resisted ) ( PP ( IN on ) ( NP ( NNS prices ) ) ) ) ) ) ( ADVP ( RB maybe ) ) ( NP-SBJ ( PRP you ) ) ( VP ( MD would ) ( ADVP-TMP ( RB never ) ) ( VP ( VB get ) ( NP ( NP ( DT that ) ( NN telephone ) ( VB call ) ) ( PP ( IN about ) ( NP ( DT a ) ( JJ new ) ( NN franchise ) ) ) ) ) ) ) )

Says Mr. Riese of National Restaurants If you resisted on prices maybe you would never get that telephone call about a new franchise


( S ( PP-LOC ( IN In ) ( S-NOM ( VP ( VBG finding ) ( NP ( JJ good ) ( NN news ) ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( NNP Berkeley ) ( POS 's ) ) ( JJ new ) ( NN freshman ) ( NNS admissions ) ( NN plan ) ) ) ) ) ) ( PRN ( NP ( NP-TTL ( NNP The ) ( NNP Privileged ) ( NNP Class ) ) ( NP ( NN editorial ) ) ( NP-TMP ( NNP Sept. ) ( CD 20 ) ) ) ) ( NP-SBJ-1 ( PRP you ) ) ( VP ( VBP 're ) ( VP ( VBG reading ) ( NP ( NP ( DT the ) ( NN headline ) ) ( CC but ) ( RB not ) ( NP ( DT the ) ( NN story ) ) ) ) ) )

In finding good news in Berkeley 's new freshman admissions plan The Privileged Class editorial Sept. 20 you 're reading the headline but not the story


( S ( NP-SBJ ( DT The ) ( NN plan ) ) ( ADVP ( RB indeed ) ) ( VP ( VBZ raises ) ( PP-DIR ( IN from ) ( NP ( CD 40 ) ( NN % ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 50 ) ( NN % ) ) ) ( NP ( NP ( DT the ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NNS freshmen ) ( NNS applicants ) ) ( VP ( VBN admitted ) ( PP-MNR ( ADVP ( RB strictly ) ) ( IN by ) ( NP ( JJ academic ) ( NNS criteria ) ) ) ) ) ) ) ) )

The plan indeed raises from 40 % to 50 % the number of freshmen applicants admitted strictly by academic criteria


( S ( CC But ) ( NP-SBJ ( DT that ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB mean ) ( SBAR ( S ( NP-SBJ ( NP ( NN half ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS students ) ) ( VP ( VBG attending ) ( NP ( NNP Berkeley ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN admitted ) ( NP-MNR ( DT this ) ( NN way ) ) ) ) ) ) ) ) ) )

But that does n't mean half of the students attending Berkeley will be admitted this way


( S ( NP-SBJ ( DT The ) ( NN plan ) ) ( VP ( VBZ is ) ( VP ( VBG talking ) ( PP-CLR ( IN about ) ( NP ( NP ( NP ( NNS applicants ) ) ( VP ( VBN admitted ) ) ) ( RB not ) ( NP ( NP ( NNS students ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP enroll ) ) ) ) ) ) ) ) ) )

The plan is talking about applicants admitted not students who enroll


( S ( SBAR-PRP ( IN Since ) ( S ( NP-SBJ ( NP ( DT the ) ( NN yield ) ) ( PP ( IN from ) ( NP ( NP ( DT this ) ( JJ top ) ( NN slice ) ) ( PP ( IN of ) ( NP ( NNS applicants ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB relatively ) ( JJ low ) ) ) ) ) ( S-NOM-SBJ ( VP ( VBG boosting ) ( NP ( NNS admits ) ) ( PP-DIR ( IN from ) ( NP ( CD 40 ) ( NN % ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 50 ) ( NN % ) ) ) ) ) ( VP ( MD will ) ( VP ( VB boost ) ( NP ( NNS registrants ) ) ( PP-DIR ( IN from ) ( NP ( QP ( RB about ) ( CD 31 ) ) ( NN % ) ) ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 38 ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN class ) ) ) ) ) ) ) )

Since the yield from this top slice of applicants is relatively low boosting admits from 40 % to 50 % will boost registrants from about 31 % to 38 % of the class


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NP ( QP ( RB perhaps ) ( CD 5 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNS registrants ) ) ) ) ( VP ( MD will ) ( VP ( VB come ) ( PP-DIR ( IN from ) ( NP ( NP ( DT a ) ( JJ new ) ( NN category ) ) ( VP ( VBG consisting ) ( PP-CLR ( IN of ) ( NP ( NP ( NNS applicants ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( JJ academic ) ( NNS credentials ) ) ( S ( VP ( ADVP-MNR ( RB narrowly ) ) ( VBD missed ) ( S ( VP ( VBG gaining ) ( NP ( PRP them ) ) ( NP ( NP ( NN admission ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ first ) ( NN category ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In addition perhaps 5 % of registrants will come from a new category consisting of applicants whose academic credentials narrowly missed gaining them admission in the first category


( S ( CC But ) ( PP ( IN against ) ( NP ( NP ( DT that ) ( VBN combined ) ( NN increase ) ) ( PP ( IN of ) ( NP ( CD 12 ) ( NN % ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNS students ) ) ( VP ( VBN chosen ) ( PP-MNR ( IN by ) ( NP ( JJ academic ) ( NNS criteria ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN plan ) ) ( VP ( VBZ eliminates ) ( NP ( NP ( DT a ) ( JJ large ) ( NN category ) ) ( SBAR ( WHPP-2 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ-1 ( NNS admissions ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBP are ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( NP ( NNS grades ) ) ( NP ( NN test ) ( NNS scores ) ) ( CC and ) ( NP ( NP ( JJ supplemental ) ( NNS points ) ) ( PP ( IN for ) ( NP ( NP ( NNS factors ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NN high-school ) ( NN curriculum ) ) ( NP ( JJ English-language ) ( NN proficiency ) ) ( CC and ) ( NP ( DT an ) ( NN essay ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But against that combined increase of 12 % in students chosen by academic criteria the plan eliminates a large category in which admissions now are based on grades test scores and supplemental points for factors such as high-school curriculum English-language proficiency and an essay


( S ( NP-SBJ ( DT This ) ( NN category ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ accounts ) ( PP-CLR ( IN for ) ( NP ( NP ( NP ( QP ( RB about ) ( CD 19 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNS admits ) ) ) ) ( CC and ) ( NP ( NP ( CD 22 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNS registrants ) ) ) ) ) ) ) )

This category now accounts for about 19 % of admits and 22 % of registrants


( S ( NP-SBJ ( DT The ) ( NN plan ) ) ( ADVP ( RB thus ) ) ( VP ( MD will ) ( VP ( VB decrease ) ( PP-EXT ( IN by ) ( NP ( CD 22 ) ( NN % ) ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( JJ net ) ( NN loss ) ) ( PP ( IN of ) ( NP ( CD 10 ) ( NN % ) ) ) ) ) ( NP ( NP ( DT the ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NNS students ) ) ( VP ( VBN admitted ) ( PP-MNR ( ADVP ( RB primarily ) ) ( IN by ) ( NP ( JJ academic ) ( NNS criteria ) ) ) ) ) ) ) ) ) )

The plan thus will decrease by 22 % for a net loss of 10 % the number of students admitted primarily by academic criteria


( SBARQ ( WHNP-1 ( WP Who ) ) ( SQ ( VP ( MD will ) ( VP ( VB take ) ( PRT ( RP over ) ) ( NP ( DT these ) ( NNS places ) ) ) ) ) )

Who will take over these places


( S ( NP-SBJ ( DT The ) ( NN plan ) ) ( VP ( VP ( VBZ creates ) ( NP ( NP ( DT a ) ( JJ new ) ( NN category ) ) ( PP ( IN of ) ( NP ( NP ( NNS students ) ) ( PP ( IN from ) ( NP ( NP ( RB socioeconomically ) ( JJ disadvantaged ) ( NNS backgrounds ) ) ( NP ( NP ( DT a ) ( NN concept ) ) ( VP ( RB not ) ( ADVP-TMP ( RB yet ) ) ( VBN defined ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ gives ) ( NP ( PRP them ) ) ( NP ( NP ( QP ( RB about ) ( CD 10 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN class ) ) ) ) ) ) )

The plan creates a new category of students from socioeconomically disadvantaged backgrounds a concept not yet defined and gives them about 10 % of the class


( S ( NP-SBJ ( NP ( CD One ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN plan ) ( POS 's ) ) ( NNS authors ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN defended ) ( NP-1 ( DT the ) ( JJ socioeconomic ) ( NN disadvantage ) ( NN category ) ) ( PP-CLR ( IN as ) ( S-NOM ( ADVP ( RB perhaps ) ) ( VP ( VBG making ) ( NP ( NP ( JJR more ) ( NN sense ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( JJ current ) ( NN affirmative-action ) ( NNS preferences ) ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( NN race ) ) ) ) ) ) ) ) ) ) ) ) )

One of the plan 's authors has defended the socioeconomic disadvantage category as perhaps making more sense than the current affirmative-action preferences based on race


( S ( ADVP ( RB Perhaps ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ does ) ) )

Perhaps it does


( S ( CC But ) ( NP-SBJ ( DT the ) ( JJ new ) ( NN category ) ) ( VP ( VBZ does ) ( RB not ) ( VP ( VB replace ) ( CC or ) ( VB reduce ) ( NP ( NP ( NNP Berkeley ) ( POS 's ) ) ( JJ broad ) ( JJ racial ) ( NNS preferences ) ) ) ) )

But the new category does not replace or reduce Berkeley 's broad racial preferences


( SINV ( CC Nor ) ( MD will ) ( NP-SBJ-3 ( NP ( NNS students ) ) ( PP ( IN from ) ( NP ( JJ racial-minority ) ( NNS groups ) ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP are ) ( VP ( VBN admitted ) ( PP ( IN through ) ( NP ( DT the ) ( JJ new ) ( NN category ) ) ) ) ) ) ) ) ( VP ( VB be ) ( VP ( VBN counted ) ( PP-CLR ( IN against ) ( NP ( NP ( DT the ) ( NN affirmative-action ) ( NN target ) ) ( PP ( IN for ) ( NP ( PRP$ their ) ( NN group ) ) ) ) ) ) ) )

Nor will students from racial-minority groups who are admitted through the new category be counted against the affirmative-action target for their group


( S ( NP-SBJ ( DT The ) ( NN plan ) ) ( ADVP ( RB thus ) ) ( VP ( VBZ places ) ( NP ( NP ( DT a ) ( JJ large ) ( JJ new ) ( NN affirmative-action ) ( NN program ) ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( JJ socioeconomic ) ( NN disadvantage ) ) ) ) ) ( PP-CLR ( IN on ) ( NP ( NP ( NN top ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( VBG existing ) ( NN program ) ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( NN race ) ) ) ) ) ) ) ) ) )

The plan thus places a large new affirmative-action program based on socioeconomic disadvantage on top of the existing program based on race


( S ( NP-SBJ ( NP ( DT The ) ( NN role ) ) ( PP ( IN of ) ( NP ( JJ academic ) ( NNS criteria ) ) ) ( PP-LOC ( IN in ) ( S-NOM ( VP ( VBG choosing ) ( NP ( NP ( NNP Berkeley ) ( POS 's ) ) ( NNS freshmen ) ) ) ) ) ) ( VP ( MD can ) ( ADVP ( RB only ) ) ( VP ( VB decline ) ( PP-PRP ( IN as ) ( NP ( DT a ) ( NN result ) ) ) ) ) )

The role of academic criteria in choosing Berkeley 's freshmen can only decline as a result


( NP ( NP ( NNP Stephen ) ( NNP R. ) ( NNP Barnett ) ) ( NP ( NP ( NNP Professor ) ) ( PP ( IN of ) ( NP ( NNP Law ) ) ) ) ( NP-LOC ( NP ( NNP University ) ) ( PP ( IN of ) ( NP ( NNP California ) ) ) ) ( NP-LOC ( NP ( NNP Berkeley ) ) ( NP ( NNP Calif ) ) ) )

Stephen R. Barnett Professor of Law University of California Berkeley Calif


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN board ) ) ( PP ( IN of ) ( NP ( DT this ) ( NAC-LOC ( NNP Ponce ) ( NNP Puerto ) ( NNP Rico ) ) ( NN concern ) ) ) ) ( VP ( VBD voted ) ( S ( VP ( TO to ) ( VP ( VB suspend ) ( NP ( NP ( NN payment ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( NN quarterly ) ) ( PP ( IN of ) ( NP ( NP ( CD 11 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ) ) ) ) ) ) ) )

The board of this Ponce Puerto Rico concern voted to suspend payment of its quarterly of 11 cents a share for the third quarter


( S ( NP-SBJ ( NP ( DT The ) ( JJ third-largest ) ( NN thrift ) ( NN institution ) ) ( PP-LOC ( IN in ) ( NP ( NNP Puerto ) ( NNP Rico ) ) ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ expects ) ( NP ( NP ( DT a ) ( NN return ) ) ( PP ( TO to ) ( NP ( NN profitability ) ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ reports ) ( NP ( NN operating ) ( NNS results ) ) ( NP-TMP ( DT this ) ( NN week ) ) ) ) ) ) ) ) ) ) ) ) )

The third-largest thrift institution in Puerto Rico also said it expects a return to profitability in the third quarter when it reports operating results this week


( S ( NP-SBJ ( NNP Ponce ) ( NNP Federal ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN dividend ) ) ( VP ( VBD was ) ( VP ( VBN suspended ) ( PP ( IN in ) ( NP ( NP ( NN anticipation ) ) ( PP ( IN of ) ( NP ( NP ( ADJP ( RBR more ) ( JJ stringent ) ) ( NN capital ) ( NNS requirements ) ) ( PP-LOC ( IN under ) ( NP ( NP ( DT the ) ( NNP Financial ) ( NNP Institutions ) ( NNP Reform ) ( NNP Recovery ) ( CC and ) ( NNP Enforcement ) ( NNP Act ) ) ( PP ( IN of ) ( NP ( CD 1989 ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Ponce Federal said the dividend was suspended in anticipation of more stringent capital requirements under the Financial Institutions Reform Recovery and Enforcement Act of 1989


( S ( NP-SBJ-1 ( CD Four ) ( JJ former ) ( NNP Cordis ) ( NNP Corp. ) ( NNS officials ) ) ( VP ( VBD were ) ( VP ( VBN acquitted ) ( PP-CLR ( IN of ) ( NP ( NP ( JJ federal ) ( NNS charges ) ) ( VP ( VBN related ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( DT the ) ( JJ Miami-based ) ( NN company ) ( POS 's ) ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NNS pacemakers ) ) ) ) ) ) ( PP ( VBG including ) ( NP ( NN conspiracy ) ( S ( VP ( TO to ) ( VP ( VB hide ) ( NP ( NN pacemaker ) ( NNS defects ) ) ) ) ) ) ) ) ) ) ) )

Four former Cordis Corp. officials were acquitted of federal charges related to the Miami-based company 's sale of pacemakers including conspiracy to hide pacemaker defects


( S ( NP-SBJ ( NP ( NNP Jurors ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP U.S. ) ( NNP District ) ( NNP Court ) ) ( PP-LOC ( IN in ) ( NP ( NNP Miami ) ) ) ) ) ) ( VP ( VBD cleared ) ( NP ( NP ( NP ( NNP Harold ) ( NNP Hershhenson ) ) ( NP ( DT a ) ( JJ former ) ( JJ executive ) ( NN vice ) ( NN president ) ) ) ( NP ( NP ( NNP John ) ( NNP Pagones ) ) ( NP ( DT a ) ( JJ former ) ( NN vice ) ( NN president ) ) ) ( CC and ) ( NP ( NP ( NP ( NNP Stephen ) ( NNP Vadas ) ) ( CC and ) ( NP ( NNP Dean ) ( NNP Ciporkin ) ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD had ) ( VP ( VBN been ) ( NP-PRD ( NP ( NNS engineers ) ) ( PP ( IN with ) ( NP ( NNP Cordis ) ) ) ) ) ) ) ) ) ) ) )

Jurors in U.S. District Court in Miami cleared Harold Hershhenson a former executive vice president John Pagones a former vice president and Stephen Vadas and Dean Ciporkin who had been engineers with Cordis


( S ( NP-TMP ( RBR Earlier ) ( DT this ) ( NN year ) ) ( NP-SBJ-1 ( NP ( NNP Cordis ) ) ( NP ( NP ( DT a ) ( NN maker ) ) ( PP ( IN of ) ( NP ( JJ medical ) ( NNS devices ) ) ) ) ) ( VP ( VBD agreed ) ( S ( VP ( VP ( TO to ) ( VP ( VB plead ) ( S-ADV ( ADJP-PRD ( JJ guilty ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NN felony ) ( CC and ) ( NN misdemeanor ) ( NNS charges ) ) ( ADJP ( VBN related ) ( PP ( TO to ) ( NP ( DT the ) ( NNS pacemakers ) ) ) ) ) ) ) ) ( CC and ) ( VP ( TO to ) ( VP ( VB pay ) ( NP ( DT the ) ( NN government ) ) ( NP ( NP ( QP ( RB about ) ( CD 5.7 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS fines ) ) ( CC and ) ( NP ( JJ other ) ( NNS costs ) ) ) ) ) ) ) ) ) ) )

Earlier this year Cordis a maker of medical devices agreed to plead guilty to felony and misdemeanor charges related to the pacemakers and to pay the government about 5.7 million in fines and other costs


( S ( NP-SBJ ( NNP Cordis ) ) ( VP ( VBD sold ) ( NP ( PRP$ its ) ( NN pacemaker ) ( NNS operations ) ) ( ADVP-TMP ( NP ( CD two ) ( NNS years ) ) ( RB ago ) ) ( PP-DTV ( TO to ) ( NP ( NP ( NNP Telectronics ) ( NNP Holding ) ( NNP Ltd. ) ) ( PP ( IN of ) ( NP ( NNP Australia ) ) ) ) ) ) )

Cordis sold its pacemaker operations two years ago to Telectronics Holding Ltd. of Australia


( S ( PP-TMP ( IN THROUGHOUT ) ( NP ( DT THE ) ( NNS 1980s ) ) ) ( NP-SBJ ( NNS investors ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG looking ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ creative ) ( NNS alternatives ) ) ( PP ( TO to ) ( NP ( NP ( JJ traditional ) ( NNS modes ) ) ( PP ( IN of ) ( NP ( JJ financial ) ( NN planning ) ) ) ) ) ) ) ) ) ) )

THROUGHOUT THE 1980s investors have been looking for creative alternatives to traditional modes of financial planning


( S ( S ( NP-SBJ-1 ( NN Capital ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN democratized ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNS people ) ) ( VP ( VBP want ) ( PRT ( RP in ) ) ) ) )

Capital has been democratized and people want in


( S ( ADVP-TMP ( RB Too ) ( RB often ) ) ( ADVP ( RB however ) ) ( NP-SBJ-1 ( JJ small ) ( NNS investors ) ) ( VP ( VBP are ) ( VP ( VBN left ) ( PP-CLR ( IN with ) ( NP ( NP ( DT the ) ( JJ same ) ( JJ stale ) ( NNS solutions ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBD appealed ) ( PP-CLR ( TO to ) ( NP ( NP ( JJ previous ) ( NNS generations ) ) ( PP ( IN of ) ( NP ( JJ fiduciary ) ( NNS strategists ) ) ) ) ) ) ) ) ) ) ) ) )

Too often however small investors are left with the same stale solutions that appealed to previous generations of fiduciary strategists


( S ( ADVP-TMP ( RB Now ) ) ( NP-SBJ ( NP ( DT a ) ( JJ startling ) ( JJ new ) ( NN approach ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ available ) ) ( PP-1 ( TO to ) ( S-NOM ( VP ( VBG building ) ( NP ( PRP$ your ) ( JJ financial ) ( NN portfolio ) ) ( PP ( PP ( IN without ) ( NP ( JJ undue ) ( NN risk ) ) ) ( PP ( IN without ) ( NP ( JJ extensive ) ( NN planning ) ) ) ( CC and ) ( PP ( IN without ) ( S-NOM ( VP ( VBG hurting ) ( NP ( PRP$ your ) ( NN life ) ( NN style ) ) ( NP-EXT ( CD one ) ( NN bit ) ) ) ) ) ) ) ) ) ) )

Now a startling new approach is available to building your financial portfolio without undue risk without extensive planning and without hurting your life style one bit


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( NP-PRD ( ADJP ( RB particularly ) ( JJ good ) ) ( NN news ) ) ( PP ( IN for ) ( NP ( NP ( DT those ) ) ( SBAR ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP hate ) ( NP ( NN risk ) ) ) ) ) ( SBAR ( WHNP-3 ( WP who ) ) ( S ( VP ( VBP are ) ( ADJP-PRD ( JJ incapable ) ( PP ( IN of ) ( S-NOM ( VP ( VBG doing ) ( NP ( NP ( JJ extensive ) ( NNS amounts ) ) ( PP ( IN of ) ( NP ( NN planning ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( SBAR ( WHNP-4 ( WP who ) ) ( S ( VP ( VBP refuse ) ( S ( VP ( TO to ) ( VP ( VB see ) ( S ( NP-SBJ-6 ( PRP$ their ) ( NN life ) ( NNS styles ) ) ( VP ( VBN hurt ) ( PP-MNR ( IN in ) ( NP ( DT any ) ( NN way ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

This is particularly good news for those who hate risk who are incapable of doing extensive amounts of planning and who refuse to see their life styles hurt in any way


( S ( NP-SBJ ( PRP You ) ) ( VP ( VBP know ) ( SBAR-NOM ( WHNP-1 ( WP who ) ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP are ) ) ) ) ) )

You know who you are


( S ( NP-SBJ ( PRP$ My ) ( JJ revolutionary ) ( NN system ) ) ( VP ( VBZ is ) ( ADVP ( RB also ) ) ( ADJP-PRD ( JJ useful ) ) ( PP ( IN for ) ( NP ( NP ( DT those ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP have ) ( VP ( VBN tried ) ( NP ( NP ( JJ customary ) ( NNS forms ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG growing ) ( NP ( PRP$ their ) ( NN currency ) ( NN cushion ) ) ) ) ) ) ) ) ) ) ) ) ) )

My revolutionary system is also useful for those who have tried customary forms of growing their currency cushion


( S ( PP ( IN Like ) ( NP ( NP ( DT all ) ( NNS Americans ) ) ( VP ( VBG seeking ) ( NP ( NN chronic ) ( NN prosperity ) ) ) ) ) ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( VP ( VB find ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( ADJP-PRD ( JJ necessary ) ) ( S-2 ( VP ( TO to ) ( VP ( VB plunge ) ( NP ( JJ certain ) ( NNS funds ) ) ( PP-DIR ( IN into ) ( NP ( JJ conservative ) ( JJ monetary ) ( NNS tools ) ) ) ( SBAR-PRP ( IN if ) ( RB only ) ( S ( VP ( TO to ) ( VP ( VB assuage ) ( NP ( NP ( PRP$ my ) ( NN father-in-law ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ believes ) ( PP-CLR ( IN in ) ( NP ( JJ such ) ( NNS things ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Like all Americans seeking chronic prosperity I do find it necessary to plunge certain funds into conservative monetary tools if only to assuage my father-in-law who believes in such things


( S ( RB So ) ( PP-TMP ( IN throughout ) ( NP ( DT the ) ( NN decade ) ) ) ( NP-SBJ-1 ( PRP I ) ) ( VP ( VBP have ) ( VP ( VP ( VBN maintained ) ( NP ( NP ( PRP$ my ) ( NN share ) ) ( PP ( IN of ) ( NP ( NP ( JJ individual ) ( NN retirement ) ( NNS accounts ) ) ( CC and ) ( NP ( NNS CDs ) ) ) ) ) ) ( CC and ) ( VP ( VBN tinkered ) ( PP-CLR ( IN with ) ( NP ( NP ( NNS stocks ) ) ( NP ( NNS bonds ) ) ( CC and ) ( NP ( JJ mutual ) ( NNS funds ) ) ) ) ) ( FRAG ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( S-NOM ( VP ( VBG preserving ) ( NP ( NP ( PRP$ my ) ( JJ necessary ) ( NN position ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ residential ) ( NN real-estate ) ( NN market ) ) ) ) ) ) ) ) ) )

So throughout the decade I have maintained my share of individual retirement accounts and CDs and tinkered with stocks bonds and mutual funds as well as preserving my necessary position in the residential real-estate market


( S ( NP-SBJ ( NP ( NN Return ) ) ( PP ( IN on ) ( NP ( DT this ) ( JJ fine ) ( NN portfolio ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( ADJP-PRD ( JJ modest ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( RB not ) ( VP ( VBN been ) ( ADJP-PRD ( JJ negative ) ) ) ) ) ) ) ) )

Return on this fine portfolio has been modest when it has not been negative


( S ( NP-SBJ ( NN Figure ) ( CD 1 ) ) ( VP ( VBZ demonstrates ) ( NP ( NP ( DT the ) ( NN performance ) ) ( PP ( IN of ) ( NP ( NP ( DT those ) ( NNS businesses ) ) ( SBAR ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP 've ) ( VP ( VBN invested ) ( PP-CLR ( IN in ) ) ( PP-TMP ( IN during ) ( NP ( DT this ) ( JJ prosperous ) ( NN decade ) ) ) ) ) ) ) ) ) ) ( PRN ( S ( VP ( VB see ) ( NP ( NP ( VBG accompanying ) ( NN illustration ) ) ( NP-LOC ( NNP WSJ ) ( NNP Oct. ) ( CD 20 ) ( CD 1989 ) ) ) ) ) ) ) )

Figure 1 demonstrates the performance of those businesses I 've invested in during this prosperous decade see accompanying illustration WSJ Oct. 20 1989


( S ( NP-SBJ ( JJ Oil-related ) ( NNS properties ) ) ( VP ( VBD suffered ) ( NP ( DT a ) ( JJ huge ) ( NN decline ) ) ( SBAR-TMP ( IN until ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBD divested ) ( NP ( PRP myself ) ) ( PP-CLR ( IN of ) ( NP ( DT all ) ( JJ such ) ( NNS stocks ) ) ) ( PP-TMP ( IN in ) ( NP ( NP ( CD 1985 ) ) ( SBAR ( WHPP-2 ( IN at ) ( WHNP ( WDT which ) ( NN point ) ) ) ( S ( NP-SBJ-1 ( DT the ) ( NN industry ) ) ( SBAR-ADV ( IN while ) ( S ( RB not ) ( VP ( VBG lighting ) ( PRT ( RP up ) ) ( NP ( DT any ) ( NNP Christmas ) ( NNS trees ) ) ) ) ) ( VP ( VBD began ) ( NP ( DT a ) ( JJ slow ) ( NN recovery ) ) ) ) ) ) ) ) ) ) ) )

Oil-related properties suffered a huge decline until I divested myself of all such stocks in 1985 at which point the industry while not lighting up any Christmas trees began a slow recovery


( S ( ADVP ( RB Likewise ) ) ( NP-SBJ ( JJ mutual ) ( NNS funds ) ) ( VP ( VBD remained ) ( ADJP-PRD ( RB relatively ) ( JJ flat ) ) ( SBAR-TMP ( IN until ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBD made ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( VP ( VBD was ) ( PP ( IN for ) ( NP ( PRP me ) ) ) ( NP-PRD ( DT a ) ( JJ serious ) ( NN investment ) ) ) ) ) ) ) ) ) )

Likewise mutual funds remained relatively flat until I made what was for me a serious investment


( S ( PP-TMP ( IN By ) ( NP ( CD 1987 ) ) ) ( NP-SBJ ( DT these ) ( NNS properties ) ) ( VP ( VBD were ) ( PP-LOC-PRD ( IN in ) ( NP ( DT a ) ( NN tailspin ) ) ) ( S-ADV ( VP ( VBG causing ) ( S ( NP-SBJ ( NP ( PRP$ my ) ( NN broker ) ) ( PP-LOC ( IN at ) ( NP ( NNP Pru-Bache ) ) ) ) ( VP ( TO to ) ( VP ( VB remark ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP she ) ) ( VP ( VBD 'd ) ( ADVP-TMP ( RB never ) ) ( VP ( VBN seen ) ( NP ( NP ( NN anything ) ) ( PP ( IN like ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

By 1987 these properties were in a tailspin causing my broker at Pru-Bache to remark that she 'd never seen anything like it


( S ( S ( S-ADV ( ADJP-PRD ( VBN Concerned ) ( PP ( IN for ) ( NP ( NP ( PRP$ her ) ( NN state ) ) ( PP ( IN of ) ( NP ( NN mind ) ) ) ) ) ) ) ( NP-SBJ-1 ( PRP I ) ) ( VP ( VBD dropped ) ( NP ( PRP them ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( ADVP-TMP ( RB instantly ) ) ( VP ( VBD began ) ( NP ( NP ( PRP$ its ) ( JJ steady ) ( NN climb ) ) ( ADVP ( RB back ) ( PP ( TO to ) ( NP ( NN health ) ) ) ) ) ) ) )

Concerned for her state of mind I dropped them and the market instantly began its steady climb back to health


( SINV ( ADVP ( RB Perhaps ) ) ( ADJP-PRD-TPC-2 ( RBS most ) ( JJ dramatic ) ) ( VP ( VBD was ) ) ( NP-SBJ ( NP ( DT the ) ( NN performance ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ metropolitan ) ( NNP New ) ( NNP York ) ( NN real-estate ) ( NN market ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD was ) ( VP ( VBG booming ) ( SBAR-TMP ( IN until ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBD entered ) ( NP ( PRP it ) ) ( PP-TMP ( IN in ) ( NP ( NP ( JJ late ) ( CD 1988 ) ) ( SBAR ( WHPP-3 ( IN at ) ( WHNP ( WDT which ) ( NN time ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD posted ) ( NP ( NP ( DT the ) ( JJ first ) ( JJ negative ) ( JJ compound ) ( JJ annual ) ( NN growth ) ( NN rate ) ) ( PP-TMP ( IN in ) ( NP ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Perhaps most dramatic was the performance of the metropolitan New York real-estate market which was booming until I entered it in late 1988 at which time it posted the first negative compound annual growth rate in years