( S ( CC But ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ unfair ) ) ( S-3 ( VP ( TO to ) ( VP ( VB dump ) ( PP-CLR ( IN on ) ( NP ( NP ( NNS teachers ) ) ( PP ( IN as ) ( ADJP ( JJ distinct ) ( PP ( IN from ) ( NP ( DT the ) ( JJ educational ) ( NN establishment ) ) ) ) ) ) ) ) ) ) ) )

But it is unfair to dump on teachers as distinct from the educational establishment


( S ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP know ) ( NP ( JJ many ) ( NNS schoolteachers ) ) ) ) ( CC and ) ( S ( PP ( IN on ) ( NP ( DT the ) ( NN whole ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADVP ( RB seriously ) ) ( VBN committed ) ( PP ( TO to ) ( NP ( JJ conscientious ) ( NN teaching ) ) ) ) ) ) )

I know many schoolteachers and on the whole they are seriously committed to conscientious teaching


( S ( S ( NP-SBJ ( PRP They ) ) ( VP ( MD may ) ( RB not ) ( VP ( VB be ) ( PP-LOC-PRD ( IN among ) ( NP ( NP ( DT the ) ( JJS best ) ( CC and ) ( JJS brightest ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NN generation ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBP are ) ( NP-PRD ( ADJP ( RB very ) ( JJ few ) ) ( JJ such ) ( NNS people ) ) ( PP ( IN by ) ( NP ( NN definition ) ) ) ) ) )

They may not be among the best and brightest of their generation there are very few such people by definition


( S ( CC But ) ( NP-SBJ-1 ( PRP they ) ) ( VP ( MD need ) ( RB not ) ( S ( VP ( VB be ) ( S-PRP ( VP ( TO to ) ( VP ( VB do ) ( NP ( PRP$ their ) ( NNS jobs ) ) ( ADVP-MNR ( RB well ) ) ) ) ) ) ) ) )

But they need not be to do their jobs well


( S ( INTJ ( UH Yes ) ) ( NP-SBJ ( NP ( PRP we ) ) ( NP ( DT all ) ) ) ( VP ( MD can ) ( VP ( VB remember ) ( NP ( NP ( QP ( CD one ) ( CC or ) ( CD two ) ) ( ADJP ( RB truly ) ( JJ inspiring ) ) ( NNS teachers ) ) ( PP ( IN from ) ( NP ( PRP$ our ) ( NN school ) ( NNS days ) ) ) ) ) ) )

Yes we all can remember one or two truly inspiring teachers from our school days


( S ( CC But ) ( NP-SBJ ( PRP$ our ) ( NN education ) ) ( VP ( VBD proceeded ) ( PP-MNR ( IN at ) ( NP ( NP ( DT the ) ( NNS hands ) ) ( PP ( IN of ) ( NP ( NP ( DT those ) ( NNS others ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD were ) ( ADJP-PRD ( RB merely ) ( JJ competent ) ( CC and ) ( JJ conscientious ) ) ) ) ) ) ) ) ) ) )

But our education proceeded at the hands of those others who were merely competent and conscientious


( S ( PP ( IN In ) ( NP ( DT this ) ( NN sense ) ) ) ( NP-SBJ-1 ( DT a ) ( NN teacher ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN compared ) ( PP-CLR ( TO to ) ( NP ( NP ( NN one ) ( POS 's ) ) ( NN family ) ( NN doctor ) ) ) ) ) ) )

In this sense a teacher can be compared to one 's family doctor


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ brilliant ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( ADVP ( RB probably ) ) ( VP ( MD would ) ( RB not ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( NN family ) ( NN doctor ) ) ( PP ( IN in ) ( NP ( DT the ) ( JJ first ) ( NN place ) ) ) ) ) )

If he were brilliant he probably would not be a family doctor in the first place


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ competent ) ( CC and ) ( JJ conscientious ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ serves ) ( NP ( PRP us ) ) ( ADVP-MNR ( RB well ) ) ) )

If he is competent and conscientious he serves us well


( S ( NP-SBJ ( PRP$ Our ) ( NNS teachers ) ) ( VP ( VBP are ) ( RB not ) ( NP-PRD ( NP ( DT an ) ( JJ important ) ( NN factor ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ our ) ( JJ educational ) ( NN crisis ) ) ) ) ) )

Our teachers are not an important factor in our educational crisis


( S ( S ( SBAR-SBJ ( IN Whether ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VP ( VBP are ) ) ( CC or ) ( VP ( VBP are ) ( RB not ) ) ( ADJP-4 ( JJ underpaid ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN problem ) ) ( PP ( IN of ) ( NP ( NN equity ) ) ) ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( RB not ) ( NP-PRD ( DT an ) ( JJ educational ) ( NN problem ) ) ) ) )

Whether they are or are not underpaid is a problem of equity it is not an educational problem


( S ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( JJ silly ) ( NN libel ) ) ( PP ( IN on ) ( NP ( PRP$ our ) ( NNS teachers ) ) ) ) ( S-5 ( VP ( TO to ) ( VP ( VB think ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD would ) ( VP ( VB educate ) ( NP ( PRP$ our ) ( NNS children ) ) ( ADVP-MNR ( JJR better ) ) ( SBAR-ADV ( IN if ) ( RB only ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD got ) ( NP ( NP ( QP ( DT a ) ( JJ few ) ( CD thousand ) ) ( NNS dollars ) ) ( NP-ADV ( DT a ) ( NN year ) ) ( QP ( RBR more ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It is silly libel on our teachers to think they would educate our children better if only they got a few thousand dollars a year more


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NP ( DT the ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NN libel ) ) ) ) ( SBAR ( S ( NP-SBJ-1 ( NP ( DT the ) ( NNS teachers ) ( POS ' ) ) ( NNS unions ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB mind ) ( S ( VP ( VBG spreading ) ( PP-PRP ( IN for ) ( NP ( PRP$ their ) ( JJ own ) ( JJ narrow ) ( NNS purposes ) ) ) ) ) ) ) ) ) ) ) )

It is the kind of libel the teachers ' unions do n't mind spreading for their own narrow purposes


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ is ) ( ADVP ( RB also ) ) ( NP-PRD ( NP ( NP ( DT the ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NN libel ) ) ) ) ( SBAR ( S ( NP-SBJ ( NNS politicians ) ) ( VP ( VBP find ) ( S ( ADJP-PRD ( JJ useful ) ) ) ( SBAR-PRP ( IN since ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ helps ) ( S ( NP-SBJ ( PRP them ) ) ( VP ( VB strike ) ( NP ( DT a ) ( JJ friendly ) ( NN posture ) ) ( PP ( IN on ) ( NP ( NP ( NN behalf ) ) ( PP ( IN of ) ( NP ( DT an ) ( JJ important ) ( NN constituency ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It is also the kind of libel politicians find useful since it helps them strike a friendly posture on behalf of an important constituency


( S ( CC But ) ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( RB not ) ( NP-PRD ( NP ( CD one ) ( NN shred ) ) ( PP ( IN of ) ( NP ( NN evidence ) ( SBAR ( IN that ) ( S ( S-ADV ( NP-SBJ ( JJ other ) ( NNS things ) ) ( VP ( VBG being ) ( ADJP-PRD ( JJ equal ) ) ) ) ( NP-SBJ ( NN salary ) ( NNS differentials ) ) ( VP ( VBP result ) ( PP-CLR ( IN in ) ( NP ( JJ educational ) ( NNS differentials ) ) ) ) ) ) ) ) ) ) )

But there is not one shred of evidence that other things being equal salary differentials result in educational differentials


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBD were ) ( NP-PRD ( JJ such ) ( NN evidence ) ) ) ) ) ( NP-SBJ ( PRP you ) ) ( VP ( MD can ) ( VP ( VB be ) ( ADJP-PRD ( JJ sure ) ( SBAR ( S ( NP-SBJ ( PRP you ) ) ( VP ( MD would ) ( VP ( VB have ) ( VP ( VBN heard ) ( PP-CLR ( IN of ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) )

If there were such evidence you can be sure you would have heard of it


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ-4 ( PRP we ) ) ( VP ( VBP wish ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ serious ) ( PP ( IN about ) ( NP ( JJ American ) ( NN education ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP we ) ) ( VP ( VBP know ) ( SBAR ( SBAR ( WHNP-2 ( RB exactly ) ( WP what ) ) ( S ( VP ( TO to ) ( VP ( VB do ) ) ) ) ) ( CC and ) ( PRN ( PP ( ADVP ( RB just ) ) ( IN as ) ( ADJP ( JJ important ) ) ) ) ( SBAR ( WHNP-3 ( WP what ) ) ( S ( RB not ) ( VP ( TO to ) ( VP ( VB do ) ) ) ) ) ) ) )

If we wish to be serious about American education we know exactly what to do and just as important what not to do


( S ( S ( NP-SBJ ( EX There ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( NP ( JJ many ) ( JJ successful ) ( NNS schools ) ) ( VP ( VBN scattered ) ( PP-LOC ( IN throughout ) ( NP ( DT this ) ( NN nation ) ) ) ) ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJS poorest ) ) ( PP ( IN of ) ( NP ( NNS ghettos ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( ADVP ( DT all ) ) ( VP ( VBG sending ) ( NP ( PRP us ) ) ( NP ( DT the ) ( JJ same ) ( NN message ) ) ) ) ) )

There are many successful schools scattered throughout this nation some of them in the poorest of ghettos and they are all sending us the same message


( S ( S ( ADVP ( RB Conversely ) ) ( NP-SBJ ( EX there ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( NN majority ) ) ( PP ( IN of ) ( NP ( JJ unsuccessful ) ( NNS schools ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP know ) ( SBAR ( WHNP-2 ( WHNP ( WDT which ) ( NNS efforts ) ) ( PP-LOC ( IN at ) ( NP ( JJ educational ) ( NN reform ) ) ) ) ( S ( VP ( VBP are ) ( VP ( VBN doomed ) ) ) ) ) ( ADVP-TMP ( RB beforehand ) ) ) ) )

Conversely there are the majority of unsuccessful schools and we know which efforts at educational reform are doomed beforehand


( S ( NP-SBJ ( PRP We ) ) ( ADVP ( RB really ) ) ( VP ( VBP do ) ( VP ( VB know ) ( NP ( NP ( DT all ) ) ( SBAR ( S ( NP-SBJ-2 ( PRP we ) ) ( VP ( VBP need ) ( S ( VP ( TO to ) ( VP ( VB know ) ) ) ) ) ) ) ) ( SBAR-SBJ ( IN if ) ( RB only ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( MD could ) ( VP ( VB assimilate ) ( NP ( DT this ) ( NN knowledge ) ) ( PP-CLR ( IN into ) ( NP ( PRP$ our ) ( NN thinking ) ) ) ) ) ) ) ) ) )

We really do know all we need to know if only we could assimilate this knowledge into our thinking


( S ( PP ( IN In ) ( NP ( DT this ) ( NN respect ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJ helpful ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP$ our ) ( JJ political ) ( NNS leaders ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( JJ mute ) ) ( PP ( RB rather ) ( IN than ) ( ADJP ( RB eloquently ) ( VBN concerned ) ) ) ) ) ) ) ) ) )

In this respect it would be helpful if our political leaders were mute rather than eloquently concerned


( S ( NP-SBJ-2 ( PRP They ) ) ( VP ( VBP are ) ( VP ( ADVP ( RB inevitably ) ) ( VBN inclined ) ( S ( VP ( TO to ) ( VP ( VB echo ) ( NP ( DT the ) ( JJ conventional ) ( NN pap ) ) ) ) ) ( SBAR-PRP ( IN since ) ( S ( NP-SBJ ( DT this ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( ADJP ( JJS least ) ( JJ controversial ) ) ( NN option ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ open ) ( PP ( TO to ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) ) )

They are inevitably inclined to echo the conventional pap since this is the least controversial option that is open to them


( S ( ADVP ( RB Thus ) ) ( PP ( IN at ) ( NP ( NP ( NP ( DT the ) ( JJ recent ) ( NNS governors ) ( POS ' ) ) ( NN conference ) ) ( PP ( IN on ) ( NP ( NN education ) ) ) ) ) ( NP-SBJ ( NP ( NNP Gov. ) ( NNP Bill ) ( NNP Clinton ) ) ( PP ( IN of ) ( NP ( NNP Arkansas ) ) ) ) ( VP ( VBD announced ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT this ) ( NN country ) ) ( VP ( VBZ needs ) ( NP ( NP ( DT a ) ( JJ comprehensive ) ( NN child-development ) ( NN policy ) ) ( PP ( IN for ) ( NP ( NP ( NNS children ) ) ( PP ( IN under ) ( NP ( CD five ) ) ) ) ) ) ) ) ) ) )

Thus at the recent governors ' conference on education Gov. Bill Clinton of Arkansas announced that this country needs a comprehensive child-development policy for children under five


( S ( NP-SBJ-1 ( NP ( DT A ) ( JJ comprehensive ) ( NN development ) ( NN policy ) ) ( PP ( IN for ) ( NP ( NP ( NNS governors ) ) ( PP ( IN over ) ( NP ( CD 30 ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB seem ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( ADJP ( RBR more ) ( JJ pressing ) ) ( NN need ) ) ) ) ) ) ) )

A comprehensive development policy for governors over 30 would seem to be a more pressing need


( S ( SBAR-NOM-SBJ ( WHNP-1 ( WP What ) ) ( S ( NP-SBJ ( NNP Gov. ) ( NNP Clinton ) ) ( VP ( VBZ is ) ( VP ( VBG advocating ) ) ) ) ) ( PP ( IN in ) ( NP ( NN effect ) ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( VBG extending ) ( NP ( DT the ) ( JJ educational ) ( NN system ) ) ( ADVP-LOC ( IN down ) ( PP ( TO to ) ( NP ( DT the ) ( NN pre-kindergarten ) ( NNS years ) ) ) ) ) ) ) )

What Gov. Clinton is advocating in effect is extending the educational system down to the pre-kindergarten years


( S ( SBAR-ADV ( IN Whether ) ( S ( ADJP-PRD ( JJ desirable ) ) ) ( CC or ) ( RB not ) ) ( NP-SBJ-1 ( DT this ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ child-care ) ( NN program ) ) ( RB not ) ( NP ( DT an ) ( JJ educational ) ( NN program ) ) ) ) )

Whether desirable or not this is a child-care program not an educational program


( S ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP know ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( ADJP ( RB very ) ( JJ early ) ) ( NN exposure ) ) ( PP ( TO to ) ( NP ( NN schooling ) ) ) ) ( VP ( VBZ improves ) ( NP ( NP ( NN performance ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ first ) ( NN grade ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( ADVP-TMP ( RB afterward ) ) ( NP-SBJ-1 ( DT the ) ( NN difference ) ) ( VP ( VBZ is ) ( VP ( ADVP ( RB quickly ) ) ( VBN washed ) ( PRT ( RB away ) ) ) ) ) )

We know that very early exposure to schooling improves performance in the first grade but afterward the difference is quickly washed away


( S ( S ( VP ( VB Let ) ( S ( NP-SBJ ( PRP us ) ) ( VP ( VB sum ) ( PRT ( RP up ) ) ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP do ) ( VP ( VB know ) ( PP-CLR ( PP ( IN about ) ( NP ( NN education ) ) ) ( CC and ) ( PP ( IN about ) ( NP ( NP ( DT those ) ( NN education ) ( NNS reforms ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VP ( VBP do ) ( VP ( VB work ) ) ) ( CC and ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB work ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( JJ Parental ) ( NN involvement ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( JJ bad ) ( NN idea ) ) ) ) )

Let us sum up what we do know about education and about those education reforms that do work and do n't work Parental involvement is a bad idea


( S ( NP-SBJ-1 ( NNS Parents ) ) ( VP ( VBP are ) ( ADJP-PRD ( RB too ) ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB blame ) ( NP ( NNS schools ) ) ( PP-CLR ( IN for ) ( NP ( NP ( DT the ) ( JJ educational ) ( NNS limitations ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NNS children ) ) ) ) ) ) ) ) ) ) )

Parents are too likely to blame schools for the educational limitations of their children


( S ( NP-SBJ ( NNS Parents ) ) ( VP ( MD should ) ( VP ( VB be ) ( ADJP-PRD ( VBN involved ) ( PP ( IN with ) ( NP ( NP ( NP ( PRP$ their ) ( NNS children ) ( POS 's ) ) ( NN education ) ) ( PP-LOC ( PP ( IN at ) ( NP ( NN home ) ) ) ( RB not ) ( PP ( IN in ) ( NP ( NN school ) ) ) ) ) ) ) ) ) )

Parents should be involved with their children 's education at home not in school


( S ( S ( NP-SBJ ( PRP They ) ) ( VP ( MD should ) ( VP ( VB see ) ( PP-CLR ( TO to ) ( NP ( PRP it ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP$ their ) ( NNS kids ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB play ) ( NP ( JJ truant ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD should ) ( VP ( VB make ) ( PRT ( JJ certain ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNS children ) ) ( VP ( VBP spend ) ( NP ( NP ( JJ enough ) ( NN time ) ) ( SBAR ( S ( VP ( VBG doing ) ( NP ( NN homework ) ) ) ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD should ) ( VP ( VB scrutinize ) ( NP ( DT the ) ( NN report ) ( NN card ) ) ) ) ) )

They should see to it that their kids do n't play truant they should make certain that the children spend enough time doing homework they should scrutinize the report card


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ-1 ( NNS parents ) ) ( VP ( VBP are ) ( VP ( VBN dissatisfied ) ( PP-CLR ( IN with ) ( NP ( DT a ) ( NN school ) ) ) ) ) ) ) ( NP-SBJ-2 ( PRP they ) ) ( VP ( MD should ) ( VP ( VB have ) ( NP ( NP ( DT the ) ( NN option ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG switching ) ( PP-CLR ( TO to ) ( NP ( DT another ) ) ) ) ) ) ) ) ) )

If parents are dissatisfied with a school they should have the option of switching to another


( S ( NP-SBJ ( NN Community ) ( NN involvement ) ) ( VP ( VBZ is ) ( NP-PRD ( DT an ) ( ADJP ( RB even ) ( JJR worse ) ) ( NN idea ) ) ) )

Community involvement is an even worse idea


( S ( ADVP-LOC ( RB Here ) ) ( NP-SBJ ( NP ( DT the ) ( NN experience ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP York ) ( NNP City ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ decisive ) ) ) )

Here the experience of New York City is decisive


( S ( NP-SBJ ( ADJP ( RB Locally ) ( VBN elected ) ) ( NN school ) ( NNS boards ) ) ( PP-LOC ( ADVP ( RB especially ) ) ( IN in ) ( NP ( PRP$ our ) ( JJR larger ) ( NNS cities ) ) ) ( VP ( VBP become ) ( NP-PRD ( NP ( DT the ) ( NN prey ) ) ( PP ( IN of ) ( NP ( ADJP ( ADJP ( JJ ambitious ) ) ( ADJP ( RB generally ) ( JJ corrupt ) ) ( CC and ) ( ADJP ( RB invariably ) ( JJ demagogic ) ) ) ( NX ( NX ( JJ local ) ( NNS politicians ) ) ( CC or ) ( NX ( JJ would-be ) ( NNS politicians ) ) ) ) ) ) ) )

Locally elected school boards especially in our larger cities become the prey of ambitious generally corrupt and invariably demagogic local politicians or would-be politicians


( S ( NP-SBJ-1 ( NNP New ) ( NNP York ) ) ( VP ( VBZ is ) ( PP-PRD ( IN in ) ( NP ( NP ( DT the ) ( NN process ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB disengage ) ( NP ( PRP itself ) ) ( PP-CLR ( IN from ) ( NP ( NP ( DT a ) ( JJ 20-year-old ) ( NN commitment ) ) ( PP ( TO to ) ( NP ( NP ( DT this ) ( NN system ) ) ( PP ( IN of ) ( NP ( NN school ) ( NN governance ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( SBAR-TMP ( RB even ) ( IN as ) ( S ( NP-SBJ-3 ( NP ( NNP Chicago ) ) ( CC and ) ( NP ( JJ other ) ( NNS cities ) ) ) ( VP ( VBP are ) ( VP ( VBG moving ) ( S ( VP ( TO to ) ( VP ( VB institute ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) )

New York is in the process of trying to disengage itself from a 20-year-old commitment to this system of school governance even as Chicago and other cities are moving to institute it


( S ( PP-LOC ( IN In ) ( NP ( JJS most ) ( NNS states ) ) ) ( S-NOM-SBJ ( VP ( VBG increasing ) ( NP ( NP ( NNS expenditures ) ) ( PP ( IN on ) ( NP ( NN education ) ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ our ) ( JJ current ) ( NNS circumstances ) ) ) ( VP ( MD will ) ( ADVP ( RB probably ) ) ( VP ( VB make ) ( S ( NP-SBJ ( NNS things ) ) ( ADJP-PRD ( JJR worse ) ( RB not ) ( JJR better ) ) ) ) ) )

In most states increasing expenditures on education in our current circumstances will probably make things worse not better


( S ( S ( NP-SBJ ( DT The ) ( NN reason ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ simple ) ) ) ) ( S ( NP-SBJ ( NN Education ) ) ( VP ( VBZ takes ) ( NP ( NN place ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN classroom ) ) ( SBAR ( WHADVP-1 ( WRB where ) ) ( S ( NP-SBJ ( NP ( DT the ) ( NN influence ) ) ( PP ( IN of ) ( NP ( NN money ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ minimal ) ) ) ) ) ) ) ) ) )

The reason is simple Education takes place in the classroom where the influence of money is minimal


( S ( NP-SBJ ( NP ( NNS Decades ) ) ( PP ( IN of ) ( NP ( JJ educational ) ( NN research ) ) ) ) ( VP ( VBP tell ) ( NP ( PRP us ) ) ( ADVP-MNR ( RB unequivocally ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( RB even ) ( JJR smaller ) ( NNS classes ) ) ( VP ( VBP have ) ( NP ( NP ( CD zero ) ( NN effect ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( JJ academic ) ( NN performance ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS pupils ) ) ) ) ) ) ( SBAR-ADV ( IN though ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD may ) ( ADVP-TMP ( RB sometimes ) ) ( VP ( VB be ) ( ADJP-PRD ( JJ desirable ) ) ( PP-PRP ( IN for ) ( NP ( JJ other ) ( NNS reasons ) ) ) ) ) ) ) ) ) ) ) )

Decades of educational research tell us unequivocally that even smaller classes have zero effect on the academic performance of the pupils though they may sometimes be desirable for other reasons


( S ( NP-SBJ ( DT The ) ( JJ new ) ( NN money ) ) ( VP ( VBZ flows ) ( PP-DIR ( IN into ) ( NP ( NP ( DT the ) ( ADJP ( RB already ) ( JJ top-heavy ) ) ( JJ administrative ) ( NN structure ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( NNS busies ) ( NP ( PRP itself ) ) ( S ( VP ( VBG piling ) ( NP ( ADJP ( JJR more ) ( CC and ) ( JJR more ) ) ( NN paper ) ( NN work ) ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( NNS teachers ) ) ) ) ) ) ) ) ) ) ) )

The new money flows into the already top-heavy administrative structure which busies itself piling more and more paper work on the teachers


( S ( NP-SBJ ( EX There ) ) ( VP ( VBZ is ) ( NP-PRD ( DT neither ) ( NN mystery ) ( CC nor ) ( NN paradox ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN fact ) ( SBAR ( IN that ) ( S ( SBAR-ADV ( IN as ) ( S ( S ( NP-SBJ ( JJ educational ) ( NNS expenditures ) ) ( PRN ( PP ( IN in ) ( NP ( JJ real ) ( NNS terms ) ) ) ) ( VP ( VBP have ) ( VP ( VBN increased ) ( ADVP-MNR ( RB sharply ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN past ) ( JJ quarter-of-a-century ) ) ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP we ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBP spend ) ( NP ( NP ( RBR more ) ) ( PP ( IN per ) ( NP ( NN pupil ) ) ) ( PP ( IN than ) ( NP ( NP ( DT any ) ( JJ other ) ( NN country ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN world ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( JJ educational ) ( NN performance ) ) ( VP ( VBZ has ) ( VP ( VBN declined ) ) ) ) ) ) ) ) )

There is neither mystery nor paradox in the fact that as educational expenditures in real terms have increased sharply in the past quarter-of-a-century we now spend more per pupil than any other country in the world educational performance has declined


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN way ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN system ) ) ( VP ( VBZ works ) ) ) ) ) ) )

That is the way the system works


( S ( NP-SBJ ( NNS Students ) ) ( VP ( MD should ) ( VP ( VB move ) ( PP-DIR ( IN up ) ( NP ( DT the ) ( JJ educational ) ( NN ladder ) ) ) ( SBAR-MNR ( IN as ) ( S ( NP-SBJ ( PRP$ their ) ( JJ academic ) ( NN potential ) ) ( VP ( VBZ allows ) ) ) ) ) ) )

Students should move up the educational ladder as their academic potential allows


( S ( NP-SBJ-3 ( DT No ) ( NN student ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBN permitted ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN graduated ) ( PP-CLR ( IN from ) ( NP ( JJ elementary ) ( NN school ) ) ) ( PP-MNR ( IN without ) ( S-NOM ( VP ( VBG having ) ( VP ( VBN mastered ) ( NP ( NP ( DT the ) ( CD 3 ) ( NN R ) ( VBZ 's ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NN level ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBD prevailed ) ( ADVP-TMP ( NP ( CD 20 ) ( NNS years ) ) ( IN ago ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

No student should be permitted to be graduated from elementary school without having mastered the 3 R 's at the level that prevailed 20 years ago


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ means ) ( NP ( NP ( NN tracking ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( JJ main ) ( NN purpose ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( JJR less ) ( S ( VP ( TO to ) ( VP ( VB permit ) ( S ( NP-SBJ ( DT the ) ( JJ gifted ) ( NNS youngsters ) ) ( VP ( TO to ) ( VP ( VB flourish ) ) ) ) ( PRN ( SBAR-ADV ( IN though ) ( S ( NP-SBJ ( DT that ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB clearly ) ( JJ desirable ) ) ) ) ) ) ) ) ) ) ( SBAR ( IN than ) ( S ( VP ( TO to ) ( VP ( VB ensure ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( RBR less ) ( JJ gifted ) ) ( VP ( VB get ) ( NP ( NP ( DT the ) ( JJ necessary ) ( NN grounding ) ) ( PP ( PP ( IN for ) ( NP ( JJ further ) ( NN study ) ) ) ( CC or ) ( PP ( IN for ) ( S-NOM ( VP ( VBG entering ) ( NP ( NP ( DT the ) ( JJ modern ) ( NN world ) ) ( PP ( IN of ) ( NP ( NN work ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

This means tracking whose main purpose is less to permit the gifted youngsters to flourish though that is clearly desirable than to ensure that the less gifted get the necessary grounding for further study or for entering the modern world of work


( S ( NP-SBJ ( DT The ) ( NN notion ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN tracking ) ) ( VP ( VBZ is ) ( ADVP ( RB somehow ) ) ( ADJP-PRD ( JJ undemocratic ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ absurd ) ) ) )

The notion that tracking is somehow undemocratic is absurd


( S ( NP-SBJ ( NP ( DT The ) ( NN purpose ) ) ( PP ( IN of ) ( NP ( NN education ) ) ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB encourage ) ( S ( NP-SBJ ( JJ young ) ( NNS men ) ( CC and ) ( NNS women ) ) ( VP ( TO to ) ( VP ( VB realize ) ( NP ( PRP$ their ) ( JJ full ) ( JJ academic ) ( NN potential ) ) ) ) ) ) ) ) ) )

The purpose of education is to encourage young men and women to realize their full academic potential


( S ( NP-SBJ ( NP ( DT No ) ( CD one ) ) ( PP ( IN in ) ( NP ( PRP$ his ) ( JJ right ) ( NN mind ) ) ) ) ( VP ( ADVP ( RB actually ) ) ( VBZ believes ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( PRP we ) ) ( NP ( DT all ) ) ) ( VP ( VBP have ) ( NP ( DT an ) ( JJ equal ) ( JJ academic ) ( NN potential ) ) ) ) ) ) )

No one in his right mind actually believes that we all have an equal academic potential


( S ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBZ is ) ( ADVP ( RB generally ) ) ( ADJP-PRD ( JJ desirable ) ) ( S-6 ( VP ( TO to ) ( VP ( VB use ) ( NP ( NP ( NP ( JJR older ) ( NNS textbooks ) ) ( NP ( NP ( NP ( JJ many ) ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ) ( INTJ ( UH alas ) ) ( PP ( IN out ) ( PP ( IN of ) ( NP ( NN print ) ) ) ) ) ) ( PP ( RB rather ) ( IN than ) ( NP ( JJR newer ) ( NNS ones ) ) ) ) ) ) ) ) )

It is generally desirable to use older textbooks many of them alas out of print rather than newer ones


( S ( NP-SBJ ( DT The ) ( JJ latter ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADJP ( JJ modish ) ) ( ADJP ( JJ trendy ) ) ( ADJP ( RB often ) ( JJ downright ) ( NN silly ) ) ( CC and ) ( ADJP ( ADVP ( IN at ) ( JJS best ) ) ( JJ insubstantial ) ) ) ) )

The latter are modish trendy often downright silly and at best insubstantial


( S ( NP-SBJ-1 ( PRP They ) ) ( VP ( VBP are ) ( VP ( VBN based ) ( PP-CLR ( PP ( IN on ) ( NP ( JJ dubious ) ( ADJP ( JJ psychological ) ( CC and ) ( JJ sociological ) ) ( NNS theories ) ) ) ( CONJP ( RB rather ) ( IN than ) ) ( PP ( IN on ) ( NP ( JJ educational ) ( NN experience ) ) ) ) ) ) )

They are based on dubious psychological and sociological theories rather than on educational experience


( S ( NP-SBJ ( NP ( CD One ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS reasons ) ) ( SBAR ( S ( NP-SBJ ( JJ American ) ( NNS students ) ) ( VP ( VBP do ) ( ADVP-MNR ( RB so ) ( RB poorly ) ) ( PP-LOC ( IN in ) ( NP ( NN math ) ( NNS tests ) ) ) ( PP ( IN as ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( JJ British ) ( JJ French ) ( JJ German ) ( CC or ) ( JJ Japanese ) ( NNS students ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN influence ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP New ) ( NNP Math ) ) ) ( PP ( IN on ) ( NP ( JJ American ) ( NX ( NX ( NNS textbooks ) ) ( CC and ) ( NX ( NN teaching ) ( NNS methods ) ) ) ) ) ) ) )

One of the reasons American students do so poorly in math tests as compared with British French German or Japanese students is the influence of the New Math on American textbooks and teaching methods


( S ( NP-SBJ ( NP ( NN Anyone ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ wants ) ( S ( VP ( TO to ) ( VP ( VB appreciate ) ( SBAR ( WHADVP-4 ( RB just ) ( WRB how ) ( JJ bizarre ) ) ( S ( NP-SBJ ( NP ( DT this ) ( NN situation ) ) ) ( VP ( VBZ is ) ( PP-5 ( IN with ) ( S-NOM ( NP-SBJ ( NP ( NNS students ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( MD ca ) ( RB n't ) ( VP ( VB add ) ( CC or ) ( VB subtract ) ) ) ) ) ) ( VP ( VBG learning ) ( NP ( NP ( DT the ) ( JJ conceptual ) ( NN basis ) ) ( PP ( IN of ) ( NP ( JJ mathematical ) ( NN theory ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( MD should ) ( VP ( VB read ) ( NP ( NP ( DT the ) ( NN article ) ) ( PP ( IN by ) ( NP ( NP ( NNP Caleb ) ( NNP Nelson ) ) ( PRN ( NP ( NP ( PRP himself ) ) ( NP ( NP ( DT a ) ( JJ recent ) ( NN math ) ( NN major ) ) ( PP-LOC ( IN at ) ( NP ( NNP Harvard ) ) ) ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP November ) ( NNP American ) ( NNP Spectator ) ) ) ) ) ) )

Anyone who wants to appreciate just how bizarre this situation is with students who ca n't add or subtract learning the conceptual basis of mathematical theory should read the article by Caleb Nelson himself a recent math major at Harvard in the November American Spectator


( S ( ADJP ( RBS Most ) ( JJ important ) ( PP ( IN of ) ( NP ( DT all ) ) ) ) ( NP-SBJ ( NNS schools ) ) ( VP ( MD should ) ( VP ( VB have ) ( NP ( NP ( NNS principals ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( JJ large ) ( NN measure ) ) ( PP ( IN of ) ( NP ( NP ( NN authority ) ) ( PP ( IN over ) ( NP ( NP ( DT the ) ( NN faculty ) ) ( NP ( DT the ) ( NN curriculum ) ) ( CC and ) ( NP ( NP ( DT all ) ( NNS matters ) ) ( PP ( IN of ) ( NP ( NN student ) ( NN discipline ) ) ) ) ) ) ) ) ) ) ) ) ) )

Most important of all schools should have principals with a large measure of authority over the faculty the curriculum and all matters of student discipline


( S ( NP-SBJ ( NP ( NP ( NN Study ) ) ( PP ( IN after ) ( NP ( NN study ) ) ) ) ( NP ( NP ( DT the ) ( RBS most ) ( JJ recent ) ) ( PP ( IN from ) ( NP ( DT the ) ( NNP Brookings ) ( NNP Institution ) ) ) ) ) ( VP ( VBZ tells ) ( NP ( PRP us ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( JJS best ) ( NNS schools ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT those ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VP ( VBP are ) ( ADJP-PRD ( JJ free ) ( PP ( IN of ) ( NP ( JJ outside ) ( NN interference ) ) ) ) ) ( CC and ) ( VP ( VBP are ) ( VP ( VBN governed ) ( PP ( IN by ) ( NP-LGS ( DT a ) ( JJ powerful ) ( NN head ) ) ) ) ) ) ) ) ) ) ) ) ) )

Study after study the most recent from the Brookings Institution tells us that the best schools are those that are free of outside interference and are governed by a powerful head


( SINV ( PP-TPC-CLR-1 ( IN With ) ( NP ( DT that ) ( NN authority ) ) ) ( PP ( IN of ) ( NP ( NN course ) ) ) ( VP ( VBZ goes ) ) ( NP-SBJ ( DT an ) ( JJ unambiguous ) ( NN accountability ) ) )

With that authority of course goes an unambiguous accountability


( S ( NP-SBJ ( NP ( NNS Schools ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBP are ) ( VP ( VBN structured ) ( PP-MNR ( IN in ) ( NP ( DT this ) ( NN way ) ) ) ) ) ) ) ) ( VP ( VBP produce ) ( NP ( NP ( NNS students ) ) ( PP ( IN with ) ( NP ( NP ( JJR higher ) ( NN morale ) ) ( CC and ) ( NP ( JJ superior ) ( JJ academic ) ( NN performance ) ) ) ) ) ) )

Schools that are structured in this way produce students with higher morale and superior academic performance


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( NN fact ) ) ( SBAR-ADV ( IN though ) ( S ( PP ( IN in ) ( NP ( NP ( NN view ) ) ( PP ( IN of ) ( NP ( NP ( PDT all ) ( DT the ) ( NNS feathers ) ) ( SBAR ( WHNP-9 ( WDT that ) ) ( S ( VP ( VBP are ) ( VP ( VBN ruffled ) ( PP ( IN by ) ( NP-LGS ( DT this ) ( NN fact ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB not ) ( JJ surprising ) ) ( SBAR-7 ( IN that ) ( S ( NP-SBJ ( NN one ) ) ( VP ( VBZ hears ) ( NP ( NP ( RB so ) ( JJ little ) ) ( PP ( IN about ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) )

This is a fact though in view of all the feathers that are ruffled by this fact it is not surprising that one hears so little about it


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Kristol ) ) ( NP ( DT an ) ( NNP American ) ( NNPS Enterprise ) ( NNP Institute ) ( NN fellow ) ) ) ( VP ( VP ( VBZ co-edits ) ( NP ( NNP The ) ( NNP Public ) ( NNP Interest ) ) ) ( CC and ) ( VP ( VBZ publishes ) ( NP ( NNP The ) ( NNP National ) ( NNP Interest ) ) ) ) )

Mr. Kristol an American Enterprise Institute fellow co-edits The Public Interest and publishes The National Interest


( S ( S ( NP-SBJ ( QP ( IN At ) ( JJS least ) ( CD 10 ) ) ( NNS states ) ) ( VP ( VBP are ) ( VP ( VBG resisting ) ( NP ( NP ( NP ( NNP Drexel ) ( NNP Burnham ) ( NNP Lambert ) ( NNP Inc. ) ( POS 's ) ) ( JJ nationwide ) ( NN effort ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB settle ) ( NP ( PRP$ its ) ( JJ legal ) ( NNS troubles ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( DT some ) ) ( VP ( MD might ) ( ADVP ( RB instead ) ) ( VP ( VB try ) ( S ( VP ( TO to ) ( VP ( VB revoke ) ( NP ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( NN license ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NNS securities ) ) ( PP-LOC ( IN within ) ( NP ( PRP$ their ) ( NNS borders ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

At least 10 states are resisting Drexel Burnham Lambert Inc. 's nationwide effort to settle its legal troubles and some might instead try to revoke the firm 's license to sell securities within their borders


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( NN reluctance ) ) ( PP ( IN of ) ( NP ( DT some ) ( NNS states ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB let ) ( S ( NP-SBJ ( NNP Drexel ) ) ( PP-PRD ( IN off ) ( NP ( DT the ) ( NN hook ) ) ) ) ) ) ) ) ) ( VP ( MD could ) ( VP ( VB hamper ) ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( NNS attempts ) ( S ( VP ( TO to ) ( VP ( VB polish ) ( NP ( PRP$ its ) ( NN image ) ) ( PP-TMP ( IN after ) ( NP ( NP ( PRP$ its ) ( JJ guilty ) ( NN plea ) ) ( PP ( TO to ) ( NP ( CD six ) ( NNS felonies ) ) ) ( NP-TMP ( JJ last ) ( NN month ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBP say ) ) ( NP-SBJ ( NP ( JJ several ) ( NNS people ) ) ( ADJP ( JJ familiar ) ( PP ( IN with ) ( NP ( DT the ) ( NNS discussions ) ) ) ) ) )

The reluctance of some states to let Drexel off the hook could hamper the firm 's attempts to polish its image after its guilty plea to six felonies last month say several people familiar with the discussions


( S ( PP-TMP ( IN Up ) ( PP ( TO to ) ( NP ( RB now ) ) ) ) ( NP-SBJ ( NNP Drexel ) ) ( VP ( VBZ has ) ( VP ( VBN made ) ( NP ( NP ( DT a ) ( JJ rapid-fire ) ( NN series ) ) ( PP ( IN of ) ( NP ( NP ( NNS settlements ) ) ( PP ( IN with ) ( NP ( NP ( CD 25 ) ( NNS states ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN commonwealth ) ) ( PP ( IN of ) ( NP ( NNP Puerto ) ( NNP Rico ) ) ) ) ) ) ) ) ) ) ) )

Up to now Drexel has made a rapid-fire series of settlements with 25 states and the commonwealth of Puerto Rico


( S ( NP-TMP ( RB Just ) ( NN yesterday ) ) ( NP-SBJ ( NNP New ) ( NNP Hampshire ) ) ( VP ( VBD announced ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD made ) ( NP ( NP ( NP ( DT a ) ( ADJP ( CD 75,000 ) ) ( NN settlement ) ) ( PP ( IN with ) ( NP ( NNP Drexel ) ) ) ) ) ( NP ( NP ( DT a ) ( JJ record-tying ) ( NN fine ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( NN securities-law ) ( NN matter ) ) ( PP-LOC ( IN in ) ( NP ( DT that ) ( NN state ) ) ) ) ) ) ) ) ) ) )

Just yesterday New Hampshire announced it made a 75,000 settlement with Drexel a record-tying fine for a securities-law matter in that state


( S ( NP-SBJ ( DT These ) ( NNS states ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG entering ) ( PP-CLR ( IN into ) ( NP ( NP ( NNS settlements ) ) ( PP ( IN with ) ( NP ( NNP Drexel ) ) ) ) ) ( PP-PRP ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( NNS efforts ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB operate ) ( ADVP-MNR ( RB freely ) ) ( NP-LOC ( NP ( RB anywhere ) ) ( PP ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ( PP ( IN despite ) ( NP ( NP ( PRP$ its ) ( NN record ) ) ( PP ( IN as ) ( NP ( DT an ) ( VBN admitted ) ( NN felon ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

These states have been entering into settlements with Drexel as part of the firm 's efforts to operate freely anywhere in the U.S. despite its record as an admitted felon


( S ( CC But ) ( NP-SBJ ( NP ( NNS individuals ) ) ( ADJP ( JJ familiar ) ( PP ( IN with ) ( NP ( DT the ) ( ADJP ( RB generally ) ( JJ successful ) ) ( NNP Drexel ) ( NNS talks ) ) ) ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN firm ) ) ( VP ( VBZ is ) ( VP ( VBG meeting ) ( NP ( NP ( NN resistance ) ) ( PP ( IN from ) ( NP ( NP ( DT some ) ( JJ big ) ( NNS states ) ) ( PP ( VBG including ) ( NP ( NP ( NNP New ) ( NNP Jersey ) ) ( NP ( NNP New ) ( NNP York ) ) ( NP ( NNP California ) ) ( NP ( NNP Pennsylvania ) ) ( NP ( NNP Connecticut ) ) ( CC and ) ( NP ( NNP Missouri ) ) ) ) ) ) ) ) ) ) ) ) )

But individuals familiar with the generally successful Drexel talks say the firm is meeting resistance from some big states including New Jersey New York California Pennsylvania Connecticut and Missouri


( S ( NP-SBJ ( NP ( NNS Officials ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( DT these ) ( NNS states ) ) ) ) ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB want ) ( S ( VP ( TO to ) ( VP ( ADVP ( RB simply ) ) ( VB accept ) ( NP ( NP ( DT the ) ( NNS settlements ) ) ( VP ( VBN offered ) ( PP ( IN by ) ( NP-LGS ( NNP Drexel ) ) ) ) ) ) ) ) ) ) ) ) ) )

Officials in some of these states say they do n't want to simply accept the settlements offered by Drexel


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP question ) ( SBAR ( IN if ) ( S ( NP-SBJ ( NNP Drexel ) ) ( VP ( VBZ is ) ( VP ( VBG getting ) ( NP ( NP ( JJR easier ) ( NN treatment ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( JJ many ) ( JJ small ) ( JJ penny-stock ) ( NNS firms ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NN brokerage ) ( NNS licenses ) ) ( S ( VP ( VBP are ) ( ADVP ( RB routinely ) ) ( VP ( VBN revoked ) ) ) ) ) ) ) ) ) ) ) ) ) )

They question if Drexel is getting easier treatment than the many small penny-stock firms whose brokerage licenses are routinely revoked


( S ( NP-SBJ-2 ( NNP Drexel ) ) ( VP ( VBZ has ) ( S ( VP ( TO to ) ( VP ( VB settle ) ( PP-CLR ( IN with ) ( NP ( NN state ) ( NNS securities ) ( NNS regulators ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN wake ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( JJ criminal ) ( JJ guilty ) ( NN plea ) ) ( CC and ) ( NP ( NP ( DT a ) ( VBN related ) ( JJ civil ) ( NN settlement ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNPS Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ includes ) ( NP ( NP ( NN payment ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 650 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NNS penalties ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Drexel has to settle with state securities regulators in the wake of its criminal guilty plea and a related civil settlement with the Securities and Exchange Commission that includes payment of 650 million in penalties


( S ( NP-SBJ ( DT These ) ) ( VP ( VBP stem ) ( PP-CLR ( IN from ) ( NP ( NP ( DT a ) ( JJ two-year ) ( JJ federal ) ( NN investigation ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NN insider ) ( NN trading ) ) ) ( CC and ) ( NP ( NP ( NNS securities ) ( NN fraud ) ) ) ( PP-1 ( IN on ) ( NP ( NNP Wall ) ( NNP Street ) ) ) ) ) ) ) ) )

These stem from a two-year federal investigation of insider trading and securities fraud on Wall Street


( SINV ( S-TPC-2 ( NP-SBJ-1 ( NP ( NNP Ohio ) ) ( NP ( NP ( DT the ) ( NNP District ) ) ( PP ( IN of ) ( NP ( NNP Columbia ) ) ) ) ( NP ( NNP Tennessee ) ) ( CC and ) ( NP ( NNP Illinois ) ) ) ( VP ( VP ( VBP have ) ( VP ( VBN been ) ( ADJP-PRD ( ADJP ( RBR less ) ( JJ resistant ) ( PP ( TO to ) ( NP ( NNP Drexel ) ) ) ) ( PP ( IN than ) ( NP ( DT the ) ( JJ other ) ( CD six ) ( NNS states ) ) ) ) ) ) ( CC but ) ( VP ( ADVP ( RB nonetheless ) ) ( VBP have ) ( VP ( VBN refused ) ( S ( VP ( TO to ) ( VP ( VB settle ) ( ADVP-TMP ( RB so ) ( RB far ) ) ) ) ) ) ) ) ) ( VP ( VBP say ) ) ( NP-SBJ ( NP ( DT those ) ) ( ADJP ( JJ familiar ) ( PP ( IN with ) ( NP ( DT the ) ( NNS discussions ) ) ) ) ) )

Ohio the District of Columbia Tennessee and Illinois have been less resistant to Drexel than the other six states but nonetheless have refused to settle so far say those familiar with the discussions


( S ( S ( NP-SBJ ( NNP Drexel ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB expect ) ( SBAR ( S ( NP-SBJ-1 ( NP ( DT any ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN state ) ( NN brokerage ) ( NNS licenses ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN revoked ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( SBAR-ADV ( RB even ) ( IN if ) ( S ( NP-SBJ ( DT some ) ) ( VP ( VBP are ) ) ) ) ( NP-SBJ-2 ( PRP$ its ) ( NNS securities ) ( NN business ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB be ) ( VP ( ADVP ( RB directly ) ) ( VBN hurt ) ) ) ) ) )

Drexel says it does n't expect any of its state brokerage licenses will be revoked and even if some are its securities business would n't be directly hurt


( S ( S ( NP-SBJ ( PRP It ) ) ( ADVP ( RB already ) ) ( VP ( VBZ has ) ( VP ( VBN sold ) ( NP ( PRP$ its ) ( ADJP ( NN retail ) ( CC or ) ( NN individual-investor ) ) ( NN brokerage ) ( NN network ) ) ) ) ) ( S ( NP-SBJ ( NNS securities ) ( NNS firms ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB need ) ( NP ( NP ( NN brokerage ) ( NNS licenses ) ) ( PP ( IN for ) ( NP ( NP ( JJ non-retail ) ( NNS activities ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NN investment ) ( NN banking ) ) ) ) ) ) ) ) ) )

It already has sold its retail or individual-investor brokerage network securities firms do n't need brokerage licenses for non-retail activities such as investment banking


( S ( ADVP ( RB Still ) ) ( SBAR-ADV ( IN if ) ( FRAG ( NP ( NN nothing ) ( RB else ) ) ) ) ( NP-SBJ ( DT a ) ( VBN revoked ) ( NN brokerage ) ( NN license ) ) ( VP ( MD could ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( NN burden ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD must ) ( VP ( VB be ) ( VP ( VBN disclosed ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ many ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS transactions ) ) ( SBAR ( WHPP-2 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ-3 ( NNP Drexel ) ) ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN involved ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Still if nothing else a revoked brokerage license could be a burden because it must be disclosed in many of the transactions in which Drexel could be involved


( S ( NP-SBJ ( NNS Securities ) ( NNS regulators ) ) ( VP ( VBP praise ) ( NP ( NNP Drexel ) ) ( PP-CLR ( IN for ) ( NP ( NP ( PRP$ its ) ( JJ energetic ) ( NN effort ) ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( JJ government-approved ) ( JJ general ) ( NN counsel ) ( NNP Saul ) ( NNP S. ) ( NNP Cohen ) ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB settle ) ( NP ( PRP$ its ) ( JJ legal ) ( NNS problems ) ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNS states ) ) ) ) ) ) ) ) ) ) )

Securities regulators praise Drexel for its energetic effort led by government-approved general counsel Saul S. Cohen to settle its legal problems with the states


( S ( CC But ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP disagree ) ( PP-CLR ( IN about ) ( NP ( NP ( DT the ) ( NN message ) ) ( SBAR ( S ( NP-SBJ ( DT these ) ( NNS settlements ) ) ( VP ( VBP give ) ( PP-DTV ( TO to ) ( NP ( DT the ) ( NN public ) ) ) ) ) ) ) ) ) )

But they disagree about the message these settlements give to the public


( SINV ( S-TPC-1 ( NP-SBJ ( EX There ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NP ( JJ internal ) ( NN debate ) ) ( PP ( IN about ) ( NP ( DT that ) ( JJ specific ) ( NN issue ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Susan ) ( NNP Bryant ) ) ( NP ( NP ( NP ( NNP Oklahoma ) ( POS 's ) ) ( NN chief ) ( NNS securities ) ( NN regulator ) ) ( CC and ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP North ) ( NNP American ) ( NNPS Securities ) ( NNPS Administrators ) ( NNP Association ) ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( VP ( VBD drafted ) ( NP ( DT a ) ( JJ voluntary ) ( NN settlement ) ( NN plan ) ) ( PP-BNF ( IN for ) ( NP ( DT the ) ( NNS states ) ) ) ( PP ( IN with ) ( NP ( NNP Drexel ) ) ) ) ) ) ) ) ) ) ) )

There was a lot of internal debate about that specific issue said Susan Bryant Oklahoma 's chief securities regulator and president of the North American Securities Administrators Association which drafted a voluntary settlement plan for the states with Drexel


( S-2 ( NP-SBJ ( DT The ) ( NN question ) ) ( PRN ( S ( NP-SBJ ( PRP she ) ) ( VP ( VBD said ) ) ) ) ( VP ( VBZ is ) ( SBAR-PRD ( SBAR ( IN whether ) ( S ( NP-SBJ-3 ( NNP Drexel ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBN allowed ) ( S ( VP ( TO to ) ( VP ( VP ( VB pay ) ) ( CC and ) ( VP ( VB move ) ( PRT ( IN on ) ) ) ) ) ) ) ) ) ) ) ( CC or ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( MD should ) ( VP ( PRN ( ADVP ( RB simply ) ) ) ( VB revoke ) ( NP ( DT the ) ( NN license ) ) ( SBAR-TMP ( WHADVP-4 ( WRB when ) ) ( S ( NP-SBJ-1 ( NN someone ) ) ( VP ( VBZ is ) ( VP ( VBN convicted ) ( PP-CLR ( IN of ) ( NP ( DT a ) ( NN felony ) ) ) ) ) ) ) ) ) ) ) ) ) )

The question she said is whether Drexel should be allowed to pay and move on or whether you should simply revoke the license when someone is convicted of a felony


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NP ( NNP Ms. ) ( NNP Bryant ) ( POS 's ) ) ( NN state ) ) ( VP ( VP ( VBD went ) ( ADVP-CLR ( RB ahead ) ) ) ( CC and ) ( VP ( VBN accepted ) ( NP ( NP ( NP ( NNP Drexel ) ( POS 's ) ) ( NN settlement ) ( NN offer ) ) ( PP ( IN of ) ( NP ( CD 25,000 ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP she ) ) ( VP ( VBD said ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ( NP ( NP ( DT any ) ( NN argument ) ) ( PP ( IN with ) ( NP ( NP ( DT those ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD came ) ( PP-CLR ( TO to ) ( NP ( JJ different ) ( NNS conclusions ) ) ) ) ) ) ) ) ) ) ) ) ) )

While Ms. Bryant 's state went ahead and accepted Drexel 's settlement offer of 25,000 she said I do n't have any argument with those who came to different conclusions


( S ( NP-SBJ ( PRP I ) ) ( VP ( MD can ) ( VP ( VB see ) ( NP ( DT both ) ( NNS sides ) ) ) ) )

I can see both sides


( S ( ADVP ( RB Similarly ) ) ( NP-SBJ ( NP ( NNP Alfred ) ( NNP Rubega ) ) ( NP ( NP ( NP ( NNP New ) ( NNP Hampshire ) ( POS 's ) ) ( NN director ) ) ( PP ( IN of ) ( NP ( NNS securities ) ( NN regulation ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( S ( NP-SBJ ( PRP$ his ) ( NN state ) ) ( VP ( VBD had ) ( RB n't ) ( VP ( VBN received ) ( NP ( NP ( DT any ) ( NNS complaints ) ) ( PP ( IN about ) ( NP ( NNP Drexel ) ) ) ) ) ) ) ( IN so ) ( S ( NP-SBJ ( PRP it ) ) ( ADVP ( RB really ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB press ) ( NP ( DT the ) ( NN issue ) ) ) ) ) ) ) ) )

Similarly Alfred Rubega New Hampshire 's director of securities regulation said his state had n't received any complaints about Drexel so it really could n't press the issue


( S ( S-TPC-2 ( ADVP ( RB Still ) ) ( NP-SBJ ( PRP I ) ) ( VP ( VBP understand ) ( NP ( NP ( DT the ) ( NNS reasons ) ) ( SBAR ( WHADVP-1 ( IN that ) ) ( S ( NP-SBJ ( JJ other ) ( NNS states ) ) ( VP ( VBP are ) ( VP ( VBG holding ) ( PRT ( RP out ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

Still I understand the reasons that other states are holding out he said


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Cohen ) ) ( NP ( DT the ) ( NNP Drexel ) ( JJ general ) ( NN counsel ) ) ) ( VP ( VBD said ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB think ) ( PRN ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP say ) ( PP-LOC ( IN in ) ( NP ( NN investment ) ( NN banking ) ) ) ) ) ) ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN by ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN day ) ) ) ) ) ( NP-SBJ ( PRP we ) ) ( VP ( MD 'll ) ( VP ( VB be ) ( VP ( VBG losing ) ( NP ( DT any ) ( NNS licenses ) ) ) ) ) ) ) ) ) ) ) )

Mr. Cohen the Drexel general counsel said I do n't think as we say in investment banking that by the end of the day we 'll be losing any licenses


( S ( S-ADV ( VP ( VBD Asked ) ( PP-CLR ( IN about ) ( NP ( NP ( NNS states ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP are ) ( VP ( VBG taking ) ( NP ( DT a ) ( JJ hard ) ( NN line ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-5 ( PRP he ) ) ( VP ( VBD said ) ( S ( NP-SBJ ( EX There ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( NNS states ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VBN asked ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ additional ) ( NN information ) ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP are ) ( VP ( VBG providing ) ( PP-CLR ( TO to ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Asked about states that are taking a hard line he said There are states that have asked for additional information which we are providing to them


( S ( NP-SBJ ( NNP Mr. ) ( NNP Cohen ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( S ( NP-SBJ-1 ( QP ( RBR more ) ( IN than ) ( CD 2.8 ) ( CD million ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN paid ) ( PP-DTV ( TO to ) ( NP ( CD 26 ) ( NNS states ) ) ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NNP Drexel ) ) ( ADVP ( RB still ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( PRT ( RP out ) ) ( NP ( NP ( DT a ) ( NN total ) ) ( PP ( IN of ) ( NP ( QP ( CD 11.5 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Cohen said more than 2.8 million has been paid to 26 states and that Drexel still expects to pay out a total of 11.5 million


( S ( S-TPC-1 ( PP-TMP ( IN By ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN week ) ) ) ) ) ( NP-SBJ ( NNP Drexel ) ) ( VP ( MD should ) ( VP ( VB have ) ( NP ( QP ( DT another ) ( CD three ) ( TO to ) ( CD four ) ) ( NNS settlements ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Cohen ) ) ( VP ( VBD said ) ) )

By the end of this week Drexel should have another three to four settlements Mr. Cohen said


( S ( S-TPC-3 ( NP ( NP ( DT The ) ( NN rate ) ) ( SBAR ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( VP ( VBG going ) ) ) ) ) ) ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN by ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN month ) ) ) ) ) ( NP-SBJ-2 ( PRP we ) ) ( VP ( VBP 're ) ( VP ( VBG looking ) ( S ( VP ( TO to ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( NN total ) ) ( PP ( IN of ) ( NP ( QP ( CD 30 ) ( TO to ) ( CD 35 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

The rate we 're going I think that by the end of the month we 're looking to have a total of 30 to 35 he said


( S ( NP-SBJ ( DT That ) ( NN total ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJ important ) ( PP ( IN for ) ( NP ( NNP Drexel ) ) ) ) ) ) )

That total would be important for Drexel


( S ( NP-SBJ ( DT The ) ( NN investment ) ( NN bank ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB previously ) ) ( VP ( VBN announced ) ( SBAR ( IN that ) ( S ( PP ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN punishment ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB create ) ( NP ( NP ( DT an ) ( JJ independent ) ( NN foundation ) ) ( SBAR-PRP ( S ( VP ( TO to ) ( VP ( VB promote ) ( NP ( NP ( JJ ethical ) ( NN behavior ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNS securities ) ( NN industry ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The investment bank has previously announced that as part of its punishment it would create an independent foundation to promote ethical behavior in the securities industry


( S ( NP-SBJ ( NP ( DT A ) ( NN proviso ) ) ( PP ( TO to ) ( NP ( DT that ) ( NN promise ) ) ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( NP ( DT a ) ( NN minimum ) ) ( PP ( IN of ) ( NP ( CD 35 ) ( NNS states ) ) ) ) ( VP ( VBP reach ) ( NP ( NN settlement ) ( NNS agreements ) ) ( PP-TMP ( IN before ) ( NP ( JJ next ) ( NNP Tuesday ) ) ) ) ) ) ) )

A proviso to that promise is that a minimum of 35 states reach settlement agreements before next Tuesday


( S ( NP-SBJ ( EX There ) ) ( VP ( VBP are ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( JJ several ) ( NNS securities ) ( NNS commissioners ) ) ) ) ( NP-PRD ( NP ( QP ( IN at ) ( JJS least ) ( CD 16 ) ) ( NNS states ) ) ( SBAR ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP are ) ( ADVP ( RB either ) ) ( ADJP-PRD ( RB close ) ( PP ( TO to ) ( NP ( NP ( NNS settlements ) ) ( PP ( IN with ) ( NP ( NNP Drexel ) ) ) ) ) ) ) ) ) ( CC or ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP do ) ( RB n't ) ( VP ( VB appear ) ( ADJP-PRD ( VBN opposed ) ( PP ( TO to ) ( NP ( VBG settling ) ) ) ) ) ) ) ) ) ) ) )

There are according to several securities commissioners at least 16 states that are either close to settlements with Drexel or who do n't appear opposed to settling


( S ( NP-SBJ-1 ( NP ( NNP Drexel ) ( POS 's ) ) ( VBN proposed ) ( NN state ) ( NNS fines ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBN based ) ( PP-CLR ( PP ( IN on ) ( NP ( NP ( DT a ) ( NN state ) ( POS 's ) ) ( NN population ) ) ) ( CC and ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN size ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Drexel ) ( POS 's ) ) ( NN business ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN state ) ) ) ) ) ) ) ) ) ) ) )

Drexel 's proposed state fines have been based on a state 's population and on the size of Drexel 's business in the state


( S ( NP-SBJ-1 ( NNP New ) ( NNP Jersey ) ) ( PP ( IN for ) ( NP ( NN example ) ) ) ( VP ( VP ( VBD was ) ( VP ( VBN asked ) ( S ( VP ( TO to ) ( VP ( VB accept ) ( NP ( CD 300,000 ) ) ) ) ) ) ) ( CC but ) ( VP ( VBD refused ) ) ) )

New Jersey for example was asked to accept 300,000 but refused


( S ( NP-SBJ-1 ( DT The ) ( NN state ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG ruling ) ( PRT ( RP out ) ) ( S ( VP ( VBG revoking ) ( NP ( NP ( NNP Drexel ) ( POS 's ) ) ( NN brokerage ) ( NN license ) ) ) ) ) ) )

The state is n't ruling out revoking Drexel 's brokerage license


( S ( NP-SBJ ( DT The ) ( NN state ) ) ( VP ( MD can ) ( ADVP ( RB also ) ) ( VP ( VB bar ) ( NP ( NNP Drexel ) ) ( PP-CLR ( IN as ) ( NP ( DT an ) ( NN investment ) ( NN adviser ) ) ) ) ) )

The state can also bar Drexel as an investment adviser


( S ( S ( NP-SBJ ( NN State ) ( NNS officials ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB describe ) ( NP ( PRP$ their ) ( NN position ) ) ( PP-MNR ( IN in ) ( NP ( NN detail ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NP ( NNP James ) ( NNP McLelland ) ( NNP Smith ) ) ( NP ( NN state ) ( NNS securities ) ( NN chief ) ) ) ( VP ( VBD said ) ( S ( NP-SBJ ( PRP We ) ) ( VP ( VP ( ADVP ( RB really ) ) ( VBP are ) ( ADVP-TMP ( RB still ) ) ( VP ( VBG looking ) ( PP-CLR ( IN at ) ( NP ( PRP it ) ) ) ) ) ( CC and ) ( VP ( VB have ) ( VP ( VBN informed ) ( NP ( NNP Drexel ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN proposal ) ) ( VP ( VBZ is ) ( ADVP ( RB really ) ) ( RB not ) ( ADJP-PRD ( JJ sufficient ) ( PP ( IN for ) ( NP ( NN settlement ) ) ) ) ) ) ) ) ) ) ) ) ) )

State officials wo n't describe their position in detail but James McLelland Smith state securities chief said We really are still looking at it and have informed Drexel that the proposal is really not sufficient for settlement


( S ( NP-SBJ ( NNP Connecticut ) ) ( ADVP ( RB already ) ) ( VP ( VBZ has ) ( VP ( VBN issued ) ( NP ( NP ( DT a ) ( NN notice ) ) ( PP ( IN of ) ( NP ( NN intent ) ( S ( VP ( TO to ) ( VP ( VB revoke ) ( NP ( NP ( NNP Drexel ) ( POS 's ) ) ( NN brokerage ) ( NN license ) ) ) ) ) ) ) ) ) ) )

Connecticut already has issued a notice of intent to revoke Drexel 's brokerage license


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS states ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VP ( VBN met ) ( PP-CLR ( IN with ) ( NP ( NNP Mr. ) ( NNP Cohen ) ) ) ) ( CC and ) ( VP ( VBN asked ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ additional ) ( NN information ) ) ( PP ( IN about ) ( NP ( NP ( NP ( NNS investors ) ( POS ' ) ) ( NNS accounts ) ) ( CC and ) ( NP ( JJ other ) ( NNS matters ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It is one of the states that have met with Mr. Cohen and asked for additional information about investors ' accounts and other matters


( S ( S-TPC-1 ( NP-SBJ ( DT This ) ( JJ particular ) ( NN issue ) ) ( VP ( VBZ goes ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ very ) ( NN integrity ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN capital-formation ) ( NN market ) ) ) ) ) ) ) ( NP-SBJ ( NN state ) ( NNP Banking ) ( NNP Commissioner ) ( NP ( NNP Howard ) ( NNP Brown ) ) ) ( VP ( VBD said ) ) )

This particular issue goes to the very integrity of the capital-formation market state Banking Commissioner Howard Brown said


( S ( NP-SBJ ( DT A ) ( NN banking ) ( NN department ) ( NN spokesman ) ) ( VP ( VBD added ) ( S ( NP-SBJ ( NNP Commissioner ) ( NNP Brown ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB feel ) ( SBAR ( S ( NP-SBJ ( DT that ) ( NN money ) ( RB alone ) ) ( VP ( VBZ is ) ( NP-PRD ( DT the ) ( NN issue ) ) ( ADVP-LOC ( RB here ) ) ) ) ) ) ) ) ) )

A banking department spokesman added Commissioner Brown does n't feel that money alone is the issue here


( SINV ( ADJP-PRD-TPC-3 ( RB Particularly ) ( JJ touchy ) ) ( VP ( VBP are ) ) ( NP-SBJ ( NP ( DT the ) ( NNS cases ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP New ) ( NNP York ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( NNP Drexel ) ( POS 's ) ) ( NN base ) ) ) ) ) ) ( CC and ) ( NP ( NP ( NNP California ) ) ( NP ( NP ( DT the ) ( NN base ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Drexel ) ( POS 's ) ) ( ADJP ( RB highly ) ( JJ profitable ) ) ( NN junk-bond ) ( NN operation ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBD led ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( JJ legal ) ( NNS difficulties ) ) ) ) ) ) ) ) ) ) ) ) ) )

Particularly touchy are the cases of New York which is Drexel 's base and California the base of Drexel 's highly profitable junk-bond operation that led to the firm 's legal difficulties


( S ( S ( NP-SBJ ( DT Neither ) ( NN state ) ) ( VP ( VBZ has ) ( VP ( VBN settled ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNS officials ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( CD two ) ( NNS states ) ) ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB discuss ) ( NP ( NP ( PRP$ their ) ( NNS reasons ) ) ( PP ( IN for ) ( S-NOM ( RB not ) ( VP ( VBG doing ) ( ADVP ( RB so ) ) ) ) ) ) ) ) ) )

Neither state has settled and officials in the two states wo n't discuss their reasons for not doing so


( S ( CC But ) ( NP-SBJ ( NNP Drexel ) ) ( VP ( VBZ has ) ( VP ( VBN made ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( ADJP-PRD ( JJ clear ) ) ( SBAR-3 ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD could ) ( VP ( VB mount ) ( NP ( DT a ) ( JJ significant ) ( JJ legal ) ( NN battle ) ) ( PP-LOC ( IN in ) ( NP ( DT each ) ( NN state ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-4 ( PRP$ its ) ( NN license ) ) ( VP ( VBZ is ) ( VP ( VBN revoked ) ) ) ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NN state ) ( NNS officials ) ) ) ) ) ) )

But Drexel has made it clear it could mount a significant legal battle in each state if its license is revoked according to state officials


( S ( NP-SBJ ( NP ( NNP Ms. ) ( NNP Bryant ) ) ( NP ( NP ( DT the ) ( NN head ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN state ) ( NNS securities ) ( NN group ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP Drexel ) ) ( VP ( VBZ has ) ( VP ( VBN done ) ( NP ( NP ( DT a ) ( JJR better ) ( NN job ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG settling ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNS states ) ) ) ) ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( NNP E.F. ) ( NNP Hutton ) ) ( VP ( VBD did ) ( PP-TMP ( IN after ) ( NP ( NP ( PRP$ its ) ( JJ guilty ) ( NN plea ) ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( JJ massive ) ( JJ check-kiting ) ( NN scheme ) ) ( ADVP-TMP ( NP ( JJ several ) ( NNS years ) ) ( IN ago ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Ms. Bryant the head of the state securities group said Drexel has done a better job of settling with the states than E.F. Hutton did after its guilty plea to a massive check-kiting scheme several years ago


( S-1 ( ADVP ( RB Still ) ) ( PRN ( S ( NP-SBJ ( PRP she ) ) ( VP ( VBD said ) ) ) ) ( NP-SBJ ( NP ( NP ( NNP Drexel ) ( POS 's ) ) ( NN trouble ) ) ( PP ( IN with ) ( NP ( DT some ) ( NNS states ) ) ) ) ( VP ( VBZ is ) ( RB n't ) ( NP-PRD ( DT a ) ( JJ bad ) ( NN thing ) ) ) )

Still she said Drexel 's trouble with some states is n't a bad thing


( S ( S-TPC-3 ( NP-SBJ ( DT This ) ( NN process ) ) ( VP ( MD should ) ( VP ( VB point ) ( PRT ( RP out ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( PRP it ) ) ) ( VP ( VBZ 's ) ( RB not ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ easy ) ) ( SBAR-2 ( IN for ) ( S ( NP-SBJ ( NP ( DT a ) ( NN firm ) ) ( SBAR ( WHNP-5 ( WDT that ) ) ( S ( VP ( VBZ 's ) ( VP ( VBN convicted ) ( PP-CLR ( IN of ) ( NP ( DT a ) ( NN felony ) ) ) ) ) ) ) ) ( VP ( TO to ) ( ADVP-TMP ( RB immediately ) ) ( VP ( VB jump ) ( ADVP-CLR ( RB back ) ) ( PP-CLR ( IN into ) ( NP ( DT the ) ( JJ retail ) ( NN business ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Ms. ) ( NNP Bryant ) ) ( VP ( VBD said ) ) )

This process should point out that it 's not going to be easy for a firm that 's convicted of a felony to immediately jump back into the retail business Ms. Bryant said


( S ( NP-SBJ-1 ( PRP We ) ) ( VP ( VBP need ) ( S ( VP ( TO to ) ( VP ( VB have ) ( S ( NP-SBJ-2 ( NN somebody ) ) ( VP ( VBN worried ) ( SBAR-PRP ( IN so ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB do ) ( NP ( DT this ) ) ( ADVP-TMP ( RB again ) ) ) ) ) ) ) ) ) ) ) ) )

We need to have somebody worried so they do n't do this again


( S ( NP-SBJ ( DT These ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( NP ( DT the ) ( CD 26 ) ( NNS states ) ) ( PP ( VBG including ) ( NP ( NP ( DT the ) ( NN commonwealth ) ) ( PP ( IN of ) ( NP ( NNP Puerto ) ( NNP Rico ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VBN settled ) ( PP-CLR ( IN with ) ( NP ( NNP Drexel ) ) ) ) ) ) ) ) ( NP ( NP ( NNP Alaska ) ) ( NP ( NNP Arkansas ) ) ( NP ( NNP Delaware ) ) ( NP ( NNP Georgia ) ) ( NP ( NNP Hawaii ) ) ( NP ( NNP Idaho ) ) ( NP ( NNP Indiana ) ) ( NP ( NNP Iowa ) ) ( NP ( NNP Kansas ) ) ( NP ( NNP Kentucky ) ) ( NP ( NNP Maine ) ) ( NP ( NNP Maryland ) ) ( NP ( NNP Minnesota ) ) ( NP ( NNP Mississippi ) ) ( NP ( NNP New ) ( NNP Hampshire ) ) ( NP ( NNP New ) ( NNP Mexico ) ) ( NP ( NNP North ) ( NNP Dakota ) ) ( NP ( NNP Oklahoma ) ) ( NP ( NNP Oregon ) ) ( NP ( NNP South ) ( NNP Carolina ) ) ( NP ( NNP South ) ( NNP Dakota ) ) ( NP ( NNP Utah ) ) ( NP ( NNP Vermont ) ) ( NP ( NNP Washington ) ) ( NP ( NNP Wyoming ) ) ( CC and ) ( NP ( NNP Puerto ) ( NNP Rico ) ) ) ) ) )

These are the 26 states including the commonwealth of Puerto Rico that have settled with Drexel Alaska Arkansas Delaware Georgia Hawaii Idaho Indiana Iowa Kansas Kentucky Maine Maryland Minnesota Mississippi New Hampshire New Mexico North Dakota Oklahoma Oregon South Carolina South Dakota Utah Vermont Washington Wyoming and Puerto Rico


( S ( ADVP-LOC ( JJ Next ) ( PP ( TO to ) ( NP ( NP ( NNP Kohlberg ) ( NNP Kravis ) ( NNP Roberts ) ( POS 's ) ) ( NN megabillion ) ( NNP RJR ) ( NNP Nabisco ) ( NN deal ) ) ) ) ( NP-SBJ ( NNP SCI ) ( NNP Television ) ) ( VP ( VBZ is ) ( NP-PRD ( JJ small ) ( NN fry ) ) ) )

Next to Kohlberg Kravis Roberts 's megabillion RJR Nabisco deal SCI Television is small fry


( S ( CC But ) ( NP-SBJ ( NP ( DT the ) ( NNS troubles ) ) ( PP ( IN of ) ( NP ( NNP SCI ) ( NN TV ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT a ) ( JJ classic ) ( NN tale ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( JJ leveraged ) ( NN buy-out ) ( NNS excesses ) ) ( PP ( IN of ) ( NP ( DT the ) ( CD 1980s ) ) ) ) ( NP ( RB especially ) ( DT the ) ( JJ asset-stripping ) ( NN game ) ) ) ) ) ) )

But the troubles of SCI TV are a classic tale of the leveraged buy-out excesses of the 1980s especially the asset-stripping game


( S ( NP-SBJ ( NP ( NNP SCI ) ( NN TV ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB release ) ( NP ( DT a ) ( NN plan ) ( S ( VP ( TO to ) ( VP ( VB restructure ) ( NP ( NP ( QP ( CD 1.3 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NN debt ) ) ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ next ) ( NN day ) ( CC or ) ( RB so ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( RB n't ) ( NP-PRD ( NP ( RB just ) ( DT another ) ( NNP LBO ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBD went ) ( ADJP-PRD ( JJ bad ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG piling ) ( PRT ( RP on ) ) ( NP ( NN debt ) ) ) ) ) ( SBAR-ADV ( IN though ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD did ) ( VP ( VB do ) ( NP ( DT that ) ) ) ) ) ) ) ) ) ) ) )

SCI TV which expects to release a plan to restructure 1.3 billion of debt in the next day or so is n't just another LBO that went bad after piling on debt though it did do that


( S ( NP-SBJ ( DT The ) ( NN cable ) ( CC and ) ( NN TV ) ( NN station ) ( NN company ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( NP ( DT an ) ( NNP LBO ) ) ( PP ( IN of ) ( NP ( DT an ) ( NNP LBO ) ) ) ) ( NP ( NP ( DT a ) ( NN set ) ) ( PP ( IN of ) ( NP ( NP ( NNS assets ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD were ) ( VP ( JJ leveraged ) ( ADVP-TMP ( RB twice ) ) ( S-ADV ( VP ( VBG enabling ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ blue-chip ) ( NN buy-out ) ( NN king ) ) ( NP ( NNP Henry ) ( NNP Kravis ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1987 ) ) ) ( VP ( TO to ) ( VP ( VB take ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 1 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NN cash ) ) ) ) ( PP-CLR ( IN out ) ( PP ( IN of ) ( NP ( DT the ) ( NN com ) ( NN pany ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The cable and TV station company was an LBO of an LBO a set of assets that were leveraged twice enabling the blue-chip buy-out king Henry Kravis in 1987 to take more than 1 billion of cash out of the com pany


( S ( NP-SBJ ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( NN buy-out ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT an ) ( NN ace ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN hole ) ) ) ) ( PP ( PP ( IN for ) ( NP ( NNP Mr. ) ( NNP Kravis ) ) ) ( CC and ) ( PP ( IN for ) ( NP ( NP ( NNS investors ) ) ( PP ( IN in ) ( NP ( NNP KKR ) ( NNS partnerships ) ) ) ) ) ) ) )

SCI TV 's buy-out was an ace in the hole for Mr. Kravis and for investors in KKR partnerships


( S ( CC But ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( VP ( VBN left ) ( S ( NP-SBJ ( NP ( NNS holders ) ) ( PP ( IN of ) ( NP ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( NN junk ) ( NNS bonds ) ) ) ) ( VP ( VBG holding ) ( NP ( DT the ) ( NN bag ) ) ( PP-1 ( VBG including ) ( NP ( NP ( DT some ) ( NNS heavyweights ) ) ( SBAR ( WHNP-2 ( IN that ) ) ( S ( NP-SBJ-3 ( NNP KKR ) ) ( VP ( MD might ) ( VP ( VB need ) ( S-PRP ( VP ( TO to ) ( VP ( VB finance ) ( NP ( JJ future ) ( NNS deals ) ) ) ) ) ) ) ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Kemper ) ( NNP Financial ) ( NNPS Services ) ) ( NP ( NNP First ) ( NNP Executive ) ) ( NP ( NNP Columbia ) ( NNP Savings ) ( CC & ) ( NNP Loan ) ) ( CC and ) ( NP ( NP ( NNP Prudential ) ( NNP Insurance ) ( NNP Co. ) ) ( PP ( IN of ) ( NP ( NNP America ) ) ) ) ) ) ) ) ) ) ) ) )

But it has left holders of SCI TV 's junk bonds holding the bag including some heavyweights that KKR might need to finance future deals such as Kemper Financial Services First Executive Columbia Savings & Loan and Prudential Insurance Co. of America


( S ( NP-SBJ-1 ( DT Some ) ( NNS junk-holders ) ) ( VP ( VBP are ) ( VP ( VBN said ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBG considering ) ( NP ( NP ( NP ( JJ legal ) ( NN action ) ) ( PP ( IN against ) ( NP ( NNP KKR ) ) ) ) ( CC or ) ( NP ( NNS moves ) ( S ( VP ( TO to ) ( VP ( VB force ) ( NP ( NNP SCI ) ( NNP TV ) ) ( PP-CLR ( IN into ) ( NP ( NN bankruptcy ) ( NN court ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Some junk-holders are said to be considering legal action against KKR or moves to force SCI TV into bankruptcy court


( S ( CC And ) ( NP-SBJ-1 ( NP ( NP ( NNP KKR ) ( POS 's ) ) ( NN majority ) ( NN partner ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( NN buy-out ) ) ) ( NP ( NP-LOC ( NP ( NNP Nashville ) ) ( NP ( NNP Tenn. ) ) ) ( NN entrepreneur ) ( NNP George ) ( NNP Gillett ) ) ) ( ADVP ( RB also ) ) ( VP ( VBZ is ) ( VP ( VBN said ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( RB very ) ( JJ unhappy ) ) ) ) ) ) ) )

And KKR 's majority partner in SCI TV 's buy-out Nashville Tenn. entrepreneur George Gillett also is said to be very unhappy


( S ( NP-SBJ ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( CD six ) ( NNS stations ) ) ( ADVP-TMP ( RB once ) ) ( VP ( VBD were ) ( NP-PRD ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NNP Storer ) ( NNPS Communications ) ) ) ) ) )

SCI TV 's six stations once were part of Storer Communications


( S ( NP-SBJ ( NNP KKR ) ) ( VP ( VP ( VBD loaded ) ( PRT ( RP up ) ) ( NP ( DT the ) ( NN cable ) ( CC and ) ( NN television ) ( NN company ) ) ( PP-CLR ( IN with ) ( NP ( NN debt ) ) ) ( PP-TMP ( IN in ) ( NP ( DT an ) ( CD 1985 ) ( NN buy-out ) ) ) ) ( RB then ) ( VP ( ADVP-TMP ( RB later ) ) ( VP ( VBD sold ) ( NP ( NP ( NNP Storer ) ( POS 's ) ) ( NN cable ) ( NNS operations ) ) ( PP-CLR ( IN at ) ( NP ( DT a ) ( JJ fat ) ( NN profit ) ) ) ) ) ) )

KKR loaded up the cable and television company with debt in an 1985 buy-out then later sold Storer 's cable operations at a fat profit


( S ( PP-TMP ( IN In ) ( NP ( CD 1987 ) ) ) ( NP-SBJ-2 ( NNP KKR ) ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( JJ second ) ( NN time ) ) ) ( VP ( VBD piled ) ( NP ( NN debt ) ) ( PP-CLR ( IN onto ) ( NP ( NP ( NNP Storer ) ( POS 's ) ) ( NNP TV ) ( NNS stations ) ) ) ( S-ADV ( VP ( VBG selling ) ( NP ( PRP them ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 1.3 ) ( CD billion ) ) ) ) ( PP-DTV ( TO to ) ( NP ( NP ( NP ( DT a ) ( JJ new ) ( NN entity ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD was ) ( ADJP-PRD ( ADJP ( JJ 45%-owned ) ( PP ( IN by ) ( NP ( NNP KKR ) ) ) ) ( CC and ) ( ADJP ( JJ 55%-owned ) ( PP ( IN by ) ( NP ( NNP Gillett ) ( NNP Corp. ) ) ) ) ) ) ) ) ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( ADVP-TMP ( RB now ) ) ( VP ( VBZ operates ) ( NP ( DT the ) ( NNP SCI ) ( NNP TV ) ( NNS stations ) ) ) ) ) ) ) ) ) ) )

In 1987 KKR for the second time piled debt onto Storer 's TV stations selling them for 1.3 billion to a new entity that was 45%-owned by KKR and 55%-owned by Gillett Corp. which now operates the SCI TV stations


( S ( PP-LOC ( IN In ) ( NP ( DT this ) ( JJ second ) ( NNP LBO ) ) ) ( NP-SBJ ( NNP KKR ) ) ( VP ( PP-MNR ( IN with ) ( NP ( CD one ) ( NN hand ) ) ) ( VP ( VBD took ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 1 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NN cash ) ) ) ) ( PP-CLR ( IN out ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN TV ) ( NN company ) ( POS 's ) ) ( NNS assets ) ) ) ) ) ( CC and ) ( VP ( VBD moved ) ( NP ( PRP it ) ) ( PP-DIR ( IN into ) ( NP ( DT the ) ( NNP Storer ) ( NN cable ) ( NNS operations ) ) ) ) ( S-ADV ( VP ( VBG making ) ( S ( NP-SBJ ( PRP them ) ) ( ADJP-PRD ( RBR more ) ( JJ valuable ) ( PP-TMP ( IN in ) ( NP ( DT a ) ( CD 1988 ) ( NN sale ) ) ) ) ) ) ) ) )

In this second LBO KKR with one hand took more than 1 billion of cash out of the TV company 's assets and moved it into the Storer cable operations making them more valuable in a 1988 sale


( S ( NP-SBJ ( NNP Storer ) ) ( ADVP ( RB also ) ) ( VP ( VBD took ) ( NP ( NP ( QP ( CD 125 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ junior ) ( NNP SCI ) ( NNP TV ) ( NNS bonds ) ) ) ) ( PP ( IN as ) ( NP ( NP ( JJ partial ) ( NN payment ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN TV ) ( NNS assets ) ) ) ) ) ) )

Storer also took 125 million of junior SCI TV bonds as partial payment for the TV assets


( S ( PP-MNR ( IN With ) ( NP ( DT the ) ( JJ other ) ( NN hand ) ) ) ( NP-SBJ-2 ( NNP KKR ) ) ( VP ( VBD put ) ( ADVP-PUT ( RB back ) ( PP ( IN into ) ( NP ( NNP SCI ) ( NNP TV ) ) ) ) ( NP ( NP ( QP ( JJR less ) ( IN than ) ( CD 10 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN cash ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( VP ( VBN taken ) ( PRT ( IN out ) ) ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG buying ) ( NP ( NNP SCI ) ( NNP TV ) ( JJ common ) ( CC and ) ( JJ preferred ) ( NNS shares ) ) ) ) ) )

With the other hand KKR put back into SCI TV less than 10 % of the cash it had taken out buying SCI TV common and preferred shares


( S ( ADVP ( RB So ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NNP KKR ) ) ( NP-TMP ( NN today ) ) ( VP ( VBZ has ) ( NP ( NP ( NP ( DT an ) ( VBN estimated ) ( QP ( CD 250 ) ( CD million ) ) ) ) ( VP ( VBN sunk ) ( PP-CLR ( IN in ) ( NP ( JJ now-shaky ) ( NNP SCI ) ( NNP TV ) ) ) ) ( PP-1 ( VBG including ) ( NP ( NN equity ) ( CC and ) ( NN debt ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNP LBO ) ( NN firm ) ) ( ADVP ( RB still ) ) ( VP ( VBZ is ) ( ADVP-PRD ( NP ( QP ( CD 1 ) ( CD billion ) ) ) ( RB ahead ) ( PP ( IN on ) ( NP ( DT the ) ( NNP SCI ) ( NNP TV ) ( NN buy-out ) ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG taking ) ( NP ( NN cash ) ) ( PP-MNR ( IN up ) ( NP ( NN front ) ) ) ) ) ) ) )

So while KKR today has an estimated 250 million sunk in now-shaky SCI TV including equity and debt the LBO firm still is 1 billion ahead on the SCI TV buy-out after taking cash up front


( S ( PP ( IN On ) ( NP ( NP ( NNP Storer ) ) ( PP ( IN as ) ( NP ( DT a ) ( NN whole ) ) ) ) ) ( NP-SBJ ( NNP KKR ) ) ( VP ( VBD racked ) ( PRT ( RP up ) ) ( NP ( NP ( JJ compound ) ( JJ annual ) ( NNS returns ) ) ( PP ( IN of ) ( NP ( CD 60 ) ( NN % ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( CD three ) ( NNS years ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD owned ) ( NP ( NNP Storer ) ) ) ) ) ) ) ) )

On Storer as a whole KKR racked up compound annual returns of 60 % in the three years it owned Storer


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ-2 ( NNP Mr. ) ( NNP Gillett ) ) ( VP ( VBZ risks ) ( S ( VP ( VBG losing ) ( NP ( NP ( PRP$ his ) ( JJ entire ) ( NN equity ) ( NN investment ) ) ( PP ( IN of ) ( NP ( QP ( IN about ) ( CD 100 ) ( CD million ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP SCI ) ( NNP TV ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-1 ( DT the ) ( NN company ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN restructured ) ) ) ) ) ) ) ) ) )

Meanwhile Mr. Gillett risks losing his entire equity investment of about 100 million in SCI TV if the company ca n't be restructured


( S ( ADVP ( NNP Overall ) ) ( NP-SBJ ( NP ( NP ( NNP Mr. ) ( NNP Gillett ) ( POS 's ) ) ( VBG holding ) ( NN company ) ) ( NP ( NNP Gillett ) ( NNP Holdings ) ) ) ( VP ( VP ( VBZ is ) ( ADJP-PRD ( RB heavily ) ( JJ indebted ) ) ) ( CC and ) ( VP ( PP ( IN except ) ( PP ( IN for ) ( NP ( PRP$ its ) ( NNP Vail ) ( NNP Mountain ) ( NNS resorts ) ) ) ) ( VBZ is ) ( RB n't ) ( VP ( VBG doing ) ( ADVP-MNR ( RB very ) ( RB well ) ) ) ) ) )

Overall Mr. Gillett 's holding company Gillett Holdings is heavily indebted and except for its Vail Mountain resorts is n't doing very well


( S ( PP ( IN With ) ( S-NOM ( NP-SBJ ( DT the ) ( NN TV ) ( NN business ) ) ( VP ( VBG falling ) ( PP-CLR ( IN on ) ( NP ( JJ hard ) ( NNS times ) ) ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS years ) ) ) ) ) ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBP say ) ( SBAR ( IN that ) ( S ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NNP SCI ) ( NNP TV ) ) ( VP ( VBD had ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN liquidated ) ( NP-TMP ( NN today ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD might ) ( VP ( VB fetch ) ( ADJP ( NP-ADV ( CD 30 ) ( NN % ) ) ( JJR less ) ( PP ( IN than ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( CD 1987 ) ( NN buy-out ) ) ) ) ) ( S-ADV ( VP ( VBG wiping ) ( PRT ( RP out ) ) ( NP ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNS junk-holders ) ) ( CC and ) ( NP ( PRP$ its ) ( NNS stockholders ) ) ) ) ) ) ) ) ) ) ) ) )

With the TV business falling on hard times in recent years analysts say that if SCI TV had to be liquidated today it might fetch 30 % less than in the 1987 buy-out wiping out most of the company 's junk-holders and its stockholders


( S ( ADVP-TMP ( RB Meanwhile ) ) ( S ( NP-SBJ ( NNP SCI ) ( NNP TV ) ) ( VP ( MD can ) ( VP ( ADVP-MNR ( RB barely ) ) ( VB pay ) ( NP ( PRP$ its ) ( NN cash ) ( NN interest ) ( NN bill ) ) ) ) ) ( CC and ) ( S ( S-PRP ( VP ( TO to ) ( VP ( VB stay ) ( PP-CLR-LOC ( IN out ) ( PP ( IN of ) ( NP ( NN bankruptcy ) ( NN court ) ) ) ) ) ) ) ( NP-SBJ-2 ( PRP it ) ) ( VP ( MD must ) ( ADVP-TMP ( RB soon ) ) ( VP ( VB reschedule ) ( NP ( NP ( DT a ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NN bank ) ( NNS loans ) ) ( CC and ) ( NP ( NN junk ) ( NNS bonds ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VBN fallen ) ( S-CLR ( ADJP-PRD ( JJ due ) ) ) ) ) ) ) ) ) ) ) ) ) )

Meanwhile SCI TV can barely pay its cash interest bill and to stay out of bankruptcy court it must soon reschedule a lot of bank loans and junk bonds that have fallen due


( S ( NP-SBJ ( NP ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( NN grace ) ( NN period ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG paying ) ( NP ( PRP$ its ) ( NNS bills ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ due ) ( S ( VP ( TO to ) ( VP ( VB expire ) ( NP-TMP ( NNP Nov. ) ( CD 16 ) ) ) ) ) ) ) )

SCI TV 's grace period for paying its bills is due to expire Nov. 16


( S ( NP-SBJ ( PRP It ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ is ) ( VP ( ADVP-MNR ( RB quietly ) ) ( VBG circulating ) ( PP-LOC ( IN among ) ( NP ( NNS creditors ) ) ) ( NP ( DT a ) ( JJ preliminary ) ( NN plan ) ( S ( VP ( TO to ) ( VP ( VB restructure ) ( NP ( NN debt ) ) ) ) ) ) ) ) )

It now is quietly circulating among creditors a preliminary plan to restructure debt


( SINV ( S-TPC-1 ( S ( NP-SBJ ( NNS Negotiations ) ) ( VP ( VBP have ) ( VP ( VBN started ) ( ADVP-MNR ( RB con ) ( RB structively ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT that ) ) ( VP ( VBZ 's ) ( RB not ) ( S-PRD ( VP ( TO to ) ( VP ( VB say ) ( SBAR ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP like ) ( NP ( DT this ) ( JJ particular ) ( NN offer ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NP ( NNP Wilbur ) ( NNP Ross ) ) ( PP ( IN of ) ( NP ( NNP Rothschild ) ( NNP Inc. ) ) ) ) ( NP ( NP ( NN adviser ) ) ( PP ( TO to ) ( NP ( NNP SCI ) ( NNP TV ) ( NNS junk-holders ) ) ) ) ) )

Negotiations have started con structively but that 's not to say we like this particular offer says Wilbur Ross of Rothschild Inc. adviser to SCI TV junk-holders


( S ( NP-SBJ ( NP ( DT No ) ( JJ major ) ( NN player ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP SCI ) ( NNP TV ) ( NN deal ) ) ) ) ( VP ( MD will ) ( VP ( VB talk ) ( ADVP-MNR ( RB publicly ) ) ) ) )

No major player in the SCI TV deal will talk publicly


( S ( CC But ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( VP ( VBN understood ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NNP Mr. ) ( NNP Kravis ) ) ( VP ( VBZ is ) ( VP ( VBN disappointed ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Gillett ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB manage ) ( S ( VP ( TO to ) ( VP ( VB boost ) ( NP ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( NN operating ) ( NN profit ) ) ( PP-TMP ( IN after ) ( NP ( DT the ) ( NN buy-out ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But it 's understood that Mr. Kravis is disappointed that Mr. Gillett did n't manage to boost SCI TV 's operating profit after the buy-out


( S ( NP-SBJ ( NNP Mr. ) ( NNP Kravis ) ) ( VP ( ADVP ( RB apparently ) ) ( VBZ thinks ) ( SBAR ( S ( NP-SBJ ( NNP SCI ) ( NNP TV ) ) ( VP ( MD can ) ( VP ( VB survive ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NNS lenders ) ) ( VP ( VBP extend ) ( NP ( PRP$ its ) ( NN debt ) ( NNS payments ) ) ( SBAR-TMP ( IN until ) ( S ( NP-SBJ ( NN TV ) ( NNS stations ) ) ( VP ( VBP rise ) ( PP ( IN in ) ( NP ( NN value ) ) ) ( ADVP-TMP ( RB again ) ) ) ) ) ( S-ADV ( VP ( VBG allowing ) ( S ( NP-SBJ-1 ( NNP SCI ) ( NNP TV ) ) ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NNS assets ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB pay ) ( NP ( NN debt ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Kravis apparently thinks SCI TV can survive if lenders extend its debt payments until TV stations rise in value again allowing SCI TV to sell assets to pay debt


( S ( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Gillett ) ) ( VP ( VBZ is ) ( VP ( VBN said ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ proud ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NN operating ) ( NN record ) ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ has ) ( VP ( VP ( VBN lifted ) ( NP ( NP ( DT some ) ( NNS stations ) ( POS ' ) ) ( NNS ratings ) ) ) ( CC and ) ( VP ( VBN turned ) ( PRT ( RP around ) ) ( NP-PRD ( DT a ) ( NNP Detroit ) ( NN station ) ) ) ) ) ) )

Mr. Gillett is said to be proud of his operating record he has lifted some stations ' ratings and turned around a Detroit station


( S ( PP ( IN As ) ( PP ( IN for ) ( NP ( NNS junk-holders ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP 're ) ( VP ( VBG discovering ) ( SBAR ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( MD can ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( NN mistake ) ) ( S-2 ( VP ( TO to ) ( VP ( VB take ) ( NP ( NP ( DT the ) ( JJ other ) ( NN side ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN trade ) ) ( PP ( IN by ) ( NP ( NNP KKR ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

As for junk-holders they 're discovering it can be a mistake to take the other side of a trade by KKR


( S ( NP-SBJ-1 ( NP ( DT The ) ( NNS bonds ) ) ( PP ( IN of ) ( NP ( NNP SCI ) ( NNP TV ) ) ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBP are ) ( VP ( VBG being ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( NNS prices ) ) ( VP ( VBG ranging ) ( PP-DIR ( IN from ) ( NP ( RB only ) ( CD five ) ( NNS cents ) ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( IN about ) ( CD 60 ) ) ( NNS cents ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN dollar ) ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( NNP R.D. ) ( NNP Smith ) ( CC & ) ( NNP Co. ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ trades ) ( NP ( JJ distressed ) ( NNS securities ) ) ) ) ) ) ) ) ) ) ) )

The bonds of SCI TV now are being quoted at prices ranging from only five cents to about 60 cents on the dollar according to R.D. Smith & Co. in New York which trades distressed securities


( S ( NP-SBJ ( NP ( NNS People ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP have ) ( VP ( VBN seen ) ( NP ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( VBG restructuring ) ( NN plan ) ) ) ) ) ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ offers ) ( NP ( NP ( NNS concessions ) ) ( PP ( IN by ) ( NP ( NP ( NNP KKR ) ) ( CC and ) ( NP ( NNP Gillett ) ( NNP Corp ) ) ) ) ) ) ) ) ) )

People who have seen SCI TV 's restructuring plan say it offers concessions by KKR and Gillett Corp


( S ( NP-SBJ ( PRP They ) ) ( VP ( MD would ) ( DT both ) ( VP ( VBP give ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ their ) ( VBN combined ) ( QP ( CD 50 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NP ( JJ common ) ( NN equity ) ) ( PP ( IN in ) ( NP ( NNP SCI ) ( NNP TV ) ) ) ) ) ) ) ) ( PP-DTV ( TO to ) ( NP ( NP ( NNS holders ) ) ( PP ( IN of ) ( NP ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( NP ( NP ( QP ( CD 488 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NN junk ) ( NNS bonds ) ) ) ) ) ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( NN carrot ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB persuade ) ( NP-3 ( PRP them ) ) ( S ( VP ( TO to ) ( VP ( VB accept ) ( NP ( NP ( JJ new ) ( NNS bonds ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD might ) ( VP ( VB reduce ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ their ) ( NNS claims ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

They would both give part of their combined 50 million in common equity in SCI TV to holders of SCI TV 's 488 million of junk bonds as a carrot to persuade them to accept new bonds that might reduce the value of their claims on the company


( S ( CC But ) ( NP-SBJ ( DT some ) ( JJ militant ) ( NNP SCI ) ( NNP TV ) ( NNS junk-holders ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( DT that ) ) ( VP ( VBZ 's ) ( RB not ) ( NP-PRD ( RB enough ) ) ) ) ) ) )

But some militant SCI TV junk-holders say that 's not enough


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP contend ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( NN equity ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ worthless ) ) ) ) ) ) )

They contend that SCI TV 's equity now is worthless


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP add ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG costing ) ( NP-1 ( NNP KKR ) ) ( NP ( NN anything ) ) ( S-3 ( VP ( TO to ) ( VP ( VB give ) ( PRT ( RP up ) ) ( NP ( NN equity ) ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( NP ( PRP$ its ) ( JJ big ) ( JJ up-front ) ( NN cash ) ( NN profit ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN buy-out ) ) ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP think ) ( SBAR ( S ( VP ( VBN contributed ) ( PP ( TO to ) ( NP ( NP ( NNP SCI ) ( NNP TV ) ( POS 's ) ) ( JJ current ) ( NNS problems ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

They add that it is n't costing KKR anything to give up equity because of its big up-front cash profit on the buy-out which they think contributed to SCI TV 's current problems


( S ( NP-SBJ-1 ( NP ( NNP Kemper ) ) ( NP ( NP ( DT the ) ( JJS biggest ) ( NN holder ) ) ( PP ( IN of ) ( NP ( JJ senior ) ( NNP SCI ) ( NNP TV ) ( NNS bonds ) ) ) ) ) ( VP ( VP ( VBZ has ) ( VP ( VBN refused ) ( S ( VP ( TO to ) ( VP ( VB join ) ( NP ( DT the ) ( NNS bond-holders ) ( NN committee ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( VP ( VBN said ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBG reviewing ) ( NP ( PRP$ its ) ( JJ legal ) ( NNS options ) ) ) ) ) ) ) ) ) )

Kemper the biggest holder of senior SCI TV bonds has refused to join the bond-holders committee and is said to be reviewing its legal options


( S ( S-PRP ( VP ( TO To ) ( VP ( VB protect ) ( NP ( PRP$ their ) ( NNS claims ) ) ) ) ) ( NP-SBJ-1 ( DT some ) ( NNS junk-holders ) ) ( VP ( VBP want ) ( S ( NP-SBJ ( NP ( NNP KKR ) ) ( CC and ) ( ADVP ( RB perhaps ) ) ( NP ( NNP Mr. ) ( NNP Gillett ) ) ) ( VP ( TO to ) ( VP ( VB invest ) ( NP ( NP ( JJ new ) ( NN money ) ) ) ( PP-CLR ( IN in ) ( NP ( NNP SCI ) ( NNP TV ) ) ) ( NP-2 ( ADVP ( RB perhaps ) ) ( QP ( CD 50 ) ( CD million ) ( CC or ) ( JJR more ) ) ) ) ) ) ) )

To protect their claims some junk-holders want KKR and perhaps Mr. Gillett to invest new money in SCI TV perhaps 50 million or more


( S ( NP-SBJ ( NP ( CD One ) ( NN investment ) ( NN banker ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN involved ) ( PP-CLR ( IN in ) ( NP ( DT the ) ( NN deal ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ-2 ( NNP SCI ) ( NNP TV ) ) ( VP ( VBZ needs ) ( NP ( NP ( PP ( IN at ) ( ADJP ( JJS least ) ) ) ( QP ( CD 50 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ new ) ( NN equity ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB survive ) ) ) ) ) ) ) ) )

One investment banker who is n't involved in the deal says SCI TV needs at least 50 million of new equity to survive


( S ( S ( NP-SBJ ( NNS Junk-holders ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( NP ( NP ( DT a ) ( NN stick ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB beat ) ( NP ( NNP KKR ) ) ( PP ( IN with ) ) ) ) ) ) ) ) ) ) ) ) ( SINV ( S-TPC-3 ( NP-SBJ ( NP ( DT The ) ( NN threat ) ) ( PP ( IN of ) ( NP ( NN bankruptcy ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ legitimate ) ( NN tool ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB extract ) ( NP ( NN money ) ) ( PP-CLR ( IN from ) ( NP ( NNP KKR ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( CD one ) ( JJ big ) ( NNP SCI ) ( NNP TV ) ( NN holder ) ) ) )

Junk-holders say they have a stick to beat KKR with The threat of bankruptcy is a legitimate tool to extract money from KKR says one big SCI TV holder


( S ( S-TPC-1 ( NP-SBJ ( DT This ) ) ( VP ( MD could ) ( VP ( VB be ) ( NP-PRD ( NP ( DT the ) ( RB first ) ( JJ major ) ( NN bankruptcy-law ) ( NN proceeding ) ) ( PP ( IN for ) ( NP ( NNP KKR ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ adds ) ) )

This could be the first major bankruptcy-law proceeding for KKR he adds


( S ( NP-SBJ ( DT A ) ( JJ big ) ( JJ bankruptcy-court ) ( NN case ) ) ( VP ( MD might ) ( VP ( VP ( VB tarnish ) ( NP ( NP ( NNP KKR ) ( POS 's ) ) ( NN name ) ) ) ( CC and ) ( VP ( VB provide ) ( NP ( JJ new ) ( NN fuel ) ) ( PP-CLR ( IN for ) ( NP ( NP ( NNS critics ) ) ( PP ( IN of ) ( NP ( NNP LBOs ) ) ) ( UCP-LOC ( PP ( IN in ) ( NP ( NNP Washington ) ) ) ( CC and ) ( ADVP ( RB elsewhere ) ) ) ) ) ) ) ) )

A big bankruptcy-court case might tarnish KKR 's name and provide new fuel for critics of LBOs in Washington and elsewhere


( S ( CC But ) ( NP-SBJ ( NNS others ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( NNS junk-holders ) ) ( VP ( VBP have ) ( NP ( NP ( NN nothing ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB gain ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG putting ) ( NP ( NNP SCI ) ( NNP TV ) ) ( PP-PUT ( IN into ) ( NP ( NN bankruptcy-law ) ( NNS proceedings ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But others say junk-holders have nothing to gain by putting SCI TV into bankruptcy-law proceedings


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NNP KKR ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB control ) ( NP ( NNP SCI ) ( NNP TV ) ) ( SBAR-ADV ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ unusual ) ) ( PP ( IN for ) ( NP ( DT a ) ( NNP KKR ) ( NN investment ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( ADVP-MNR ( RB clearly ) ) ( VBZ has ) ( NP ( NP ( JJ much ) ( JJR deeper ) ( NNS pockets ) ) ( PP ( IN than ) ( NP ( NNP Mr. ) ( NNP Gillett ) ) ) ) ) )

While KKR does n't control SCI TV which is unusual for a KKR investment it clearly has much deeper pockets than Mr. Gillett


( S ( NP-SBJ ( NN Bankruptcy ) ( NNS specialists ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( NNP Mr. ) ( NNP Kravis ) ) ( VP ( VBD set ) ( NP ( NP ( DT a ) ( NN precedent ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG putting ) ( NP ( JJ new ) ( NN money ) ) ( PP-PUT ( IN in ) ( NP ( JJ sour ) ( NNS LBOs ) ) ) ) ) ) ) ) ( ADVP-TMP ( RB recently ) ) ( SBAR-TMP ( WHADVP ( WRB when ) ) ( S ( NP-SBJ-1 ( NNP KKR ) ) ( VP ( VBN restructured ) ( NP ( VBG foundering ) ( NNP Seaman ) ( NNP Furniture ) ) ( S-ADV ( VP ( VBG doubling ) ( NP ( NP ( NNP KKR ) ( POS 's ) ) ( NN equity ) ( NN stake ) ) ) ) ) ) ) ) ) ) )

Bankruptcy specialists say Mr. Kravis set a precedent for putting new money in sour LBOs recently when KKR restructured foundering Seaman Furniture doubling KKR 's equity stake


( SINV ( S-TPC-2 ( CC But ) ( PP ( IN with ) ( NP ( NNP Seaman ) ) ) ( NP-SBJ-1 ( NNP KKR ) ) ( VP ( VBD was ) ( VP ( ADVP ( RB only ) ) ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB salvage ) ( NP ( PRP$ its ) ( JJ original ) ( NN investment ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NN bankruptcy ) ( NN investor ) ) ( NP ( NP ( NNP James ) ( NNP Rubin ) ) ( PP ( IN of ) ( NP ( NP ( NNP Sass ) ( NNP Lamle ) ( NNP Rubin ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ) ) ) ) )

But with Seaman KKR was only trying to salvage its original investment says bankruptcy investor James Rubin of Sass Lamle Rubin in New York


( S ( PP ( IN By ) ( NP ( NN contrast ) ) ) ( NP-SBJ ( NNP KKR ) ) ( ADVP ( RB probably ) ) ( VP ( VBZ has ) ( ADVP ( RB already ) ) ( VP ( VBN made ) ( NP ( NP ( PDT all ) ( DT the ) ( NN money ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD can ) ) ) ) ) ( PP-CLR ( IN on ) ( NP ( NNP SCI ) ( NNP TV ) ) ) ) ) )

By contrast KKR probably has already made all the money it can on SCI TV


( S ( CC And ) ( NP-SBJ ( NP ( NNS people ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP know ) ( NP ( NNP Mr. ) ( NNP Kravis ) ) ) ) ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ is ) ( RB n't ) ( PP-PRD ( IN in ) ( NP ( DT a ) ( NN hurry ) ( S ( VP ( TO to ) ( VP ( VB pour ) ( NP ( JJR more ) ( NN money ) ) ( PP ( IN into ) ( NP ( NNP SCI ) ( NNP TV ) ) ) ) ) ) ) ) ) ) ) ) )

And people who know Mr. Kravis say he is n't in a hurry to pour more money into SCI TV


( S ( NP-SBJ-2 ( NNP Ford ) ( NNP Motor ) ( NNP Co. ) ) ( VP ( VBD intensified ) ( NP ( NP ( PRP$ its ) ( NN battle ) ) ( PP ( IN with ) ( NP ( NNP General ) ( NNPS Motors ) ( NNP Corp. ) ) ) ( PP ( IN over ) ( NP ( NNP Jaguar ) ( NNP PLC ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG saying ) ( SBAR ( S ( NP-SBJ-3 ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBN prepared ) ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( NP ( DT a ) ( NN bid ) ) ( PP ( IN for ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ British ) ( NN auto ) ( NN maker ) ) ) ) ) ) ( SBAR-TMP ( WHADVP-4 ( WRB when ) ) ( S ( NP-SBJ-1 ( NP ( NNS restrictions ) ) ( PP ( IN on ) ( NP ( PRP$ its ) ( NN shareholding ) ) ) ) ( VP ( VBP are ) ( VP ( VBN lifted ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Ford Motor Co. intensified its battle with General Motors Corp. over Jaguar PLC by saying it is prepared to make a bid for all of the British auto maker when restrictions on its shareholding are lifted


( S ( NP-SBJ ( DT The ) ( NN statement ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NNP Ford ) ( NN filing ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNP U.S. ) ( NNPS Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ) ) ) ) )

The statement was part of a Ford filing with the U.S. Securities and Exchange Commission


( S ( NP-SBJ ( NNP Ford ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB say ) ( SBAR ( SBAR ( WHNP-1 ( WRB how ) ( JJ much ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD might ) ( VP ( VB offer ) ( PP-CLR ( IN for ) ( NP ( NNP Jaguar ) ) ) ) ) ) ) ( CC or ) ( FRAG ( WHADVP ( WRB when ) ) ) ) ) ) )

Ford did n't say how much it might offer for Jaguar or when


( S ( NP-SBJ ( DT The ) ( JJ British ) ( NN government ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBZ forbids ) ( NP-1 ( DT any ) ( JJ outside ) ( NN investor ) ) ( PP-CLR ( IN from ) ( S-NOM ( VP ( VBG holding ) ( NP ( NP ( QP ( RBR more ) ( IN than ) ( CD 15 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNS shares ) ) ) ) ( PP-MNR ( IN without ) ( NP ( NN permission ) ) ) ) ) ) ( PP-TMP ( IN until ) ( NP ( NNP Dec. ) ( CD 31 ) ) ) ) )

The British government currently forbids any outside investor from holding more than 15 % of the company 's shares without permission until Dec. 31


( S ( CC But ) ( PP ( IN with ) ( NP ( NP ( NP ( PRP$ its ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NNP Jaguar ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD raised ) ( NP-TMP ( NN yesterday ) ) ( PP-DIR ( TO to ) ( NP ( CD 11.95 ) ( NN % ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Ford ) ) ( VP ( MD could ) ( VP ( VP ( VB convene ) ( NP ( DT a ) ( JJ special ) ( NNP Jaguar ) ( NNS shareholders ) ( POS ' ) ( NN meeting ) ) ) ( CC and ) ( VP ( VB urge ) ( NP-2 ( NNS holders ) ) ( S ( VP ( TO to ) ( VP ( VB vote ) ( S ( VP ( TO to ) ( VP ( VB drop ) ( NP ( DT the ) ( NN restriction ) ) ( ADVP-TMP ( RBR sooner ) ) ) ) ) ) ) ) ) ) ) )

But with its stake in Jaguar which it raised yesterday to 11.95 % Ford could convene a special Jaguar shareholders ' meeting and urge holders to vote to drop the restriction sooner


( S ( NP-SBJ ( DT A ) ( JJ successful ) ( NN vote ) ) ( VP ( MD would ) ( VP ( VB put ) ( NP ( NN pressure ) ) ( PP-PUT ( IN on ) ( NP ( DT the ) ( JJ British ) ( NN government ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB lift ) ( NP ( DT the ) ( NN restriction ) ) ) ) ) ) ) )

A successful vote would put pressure on the British government to lift the restriction


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP have ) ( RB not ) ( VP ( VBN made ) ( NP ( DT that ) ( NN decision ) ( S ( VP ( TO to ) ( VP ( VB seek ) ( NP ( NP ( DT a ) ( NNP Jaguar ) ( JJ special ) ( NNS shareholders ) ( POS ' ) ) ( NN meeting ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Martyn ) ( NNP Watkins ) ) ( NP ( NP ( DT a ) ( NNP Ford ) ( NN spokesman ) ) ( PP-LOC ( IN in ) ( NP ( NNP London ) ) ) ) ) )

We have not made that decision to seek a Jaguar special shareholders ' meeting said Martyn Watkins a Ford spokesman in London


( S ( NP-SBJ ( PRP He ) ) ( VP ( VP ( VBD emphasized ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN car ) ( NN maker ) ) ( ADVP ( RB only ) ) ( VP ( MD would ) ( VP ( VB bid ) ( PP-CLR ( IN for ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( NNP Jaguar ) ) ) ) ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( JJ right ) ( NNS circumstances ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( S ( NP-SBJ ( DT those ) ( NNS circumstances ) ) ( VP ( VBP are ) ( RB n't ) ( ADJP-PRD ( JJ right ) ( CC or ) ( JJ possible ) ) ( PP-TMP ( IN at ) ( NP ( DT the ) ( NN moment ) ) ) ) ) ) ) )

He emphasized that the car maker only would bid for all of Jaguar under the right circumstances and said those circumstances are n't right or possible at the moment


( S ( NP-TMP ( JJ Last ) ( NN month ) ) ( NP-SBJ ( NNP Ford ) ) ( VP ( VBD announced ) ( NP ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( QP ( RB as ) ( RB much ) ( IN as ) ( CD 15 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP Jaguar ) ) ) ) ) ) ) ) ) )

Last month Ford announced plans to acquire as much as 15 % of Jaguar


( S ( PP-TMP ( IN Since ) ( NP ( RB then ) ) ) ( NP-SBJ ( NNP Jaguar ) ( NNS officials ) ) ( VP ( VP ( VBP have ) ( VP ( VBN confirmed ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBG discussing ) ( NP ( NP ( DT an ) ( NN alliance ) ) ( PP ( IN with ) ( NP ( NNP GM ) ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( NP-TMP ( JJ last ) ( NN week ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBD hoped ) ( S ( VP ( TO to ) ( VP ( VB reach ) ( NP ( DT an ) ( NN agreement ) ) ( PP-TMP ( IN within ) ( NP ( DT a ) ( NN month ) ) ) ) ) ) ) ) ) ) ) )

Since then Jaguar officials have confirmed that they are discussing an alliance with GM and said last week that they hoped to reach an agreement within a month


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG expecting ) ( NP ( NP ( DT a ) ( JJ GM-Jaguar ) ( NN pact ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VP ( VB give ) ( NP ( DT the ) ( NNP U.S. ) ( NN car ) ( NN maker ) ) ( NP ( NP ( DT an ) ( JJ eventual ) ( ADJP ( CD 30 ) ( NN % ) ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ British ) ( NN company ) ) ) ) ) ( CC and ) ( VP ( VB create ) ( NP ( NP ( JJ joint ) ( NNS ventures ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VB produce ) ( NP ( NP ( DT an ) ( JJ executive-model ) ( NN range ) ) ( PP ( IN of ) ( NP ( NNS cars ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Analysts have been expecting a GM-Jaguar pact that would give the U.S. car maker an eventual 30 % stake in the British company and create joint ventures that would produce an executive-model range of cars


( S ( CC But ) ( NP-SBJ ( NP ( DT the ) ( NN specter ) ) ( PP ( IN of ) ( S-NOM ( NP-SBJ ( NNP Ford ) ) ( VP ( ADVP-TMP ( RB eventually ) ) ( VBG launching ) ( NP ( DT a ) ( JJ full-fledged ) ( NN bid ) ) ) ) ) ) ( VP ( MD could ) ( VP ( VB unravel ) ( NP ( DT the ) ( JJ GM-Jaguar ) ( NNS talks ) ) ) ) )

But the specter of Ford eventually launching a full-fledged bid could unravel the GM-Jaguar talks