( S ( NP-SBJ-1 ( NNPS Americans ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB conform ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( JJ Japanese ) ( NN culture ) ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( PP-LOC-PRD ( IN in ) ( NP ( NNP Japan ) ) ) ) ) ) ) ) ) ) )

Americans are expected to conform to the Japanese culture when in Japan


( SBARQ ( WHNP-1 ( WP What ) ) ( SQ ( VBZ is ) ( ADJP-PRD ( JJ wrong ) ( PP ( IN with ) ( S-NOM ( VP ( VBG expecting ) ( S ( NP-SBJ ( DT the ) ( NNPS Japanese ) ) ( VP ( TO to ) ( VP ( VB conform ) ( PP-CLR ( TO to ) ( NP ( JJ American ) ( NNS norms ) ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP locate ) ( ADVP-LOC ( RB here ) ) ) ) ) ) ) ) ) ) ) ) ) )

What is wrong with expecting the Japanese to conform to American norms when they locate here


( S ( NP-SBJ ( NNPS Americans ) ) ( VP ( VBP place ) ( NP ( JJ native ) ( CC or ) ( JJ native ) ( NNS speakers ) ) ( PP-CLR ( IN in ) ( NP ( NP ( NN charge ) ) ( PP ( IN of ) ( NP ( NP ( NNS subsidiaries ) ) ( ADVP-LOC ( RB overseas ) ) ) ) ) ) ) )

Americans place native or native speakers in charge of subsidiaries overseas


( S ( S ( NP-SBJ ( JJ European ) ( NNS multinationals ) ) ( VP ( VBP do ) ( ADVP ( RB likewise ) ) ) ) ( S ( PP-LOC ( ADVP ( RB even ) ) ( IN in ) ( NP ( NNP America ) ) ) ( NP-SBJ-1 ( PRP$ their ) ( NNS affiliates ) ) ( VP ( VBP are ) ( ADVP ( RB usually ) ) ( VP ( VBN run ) ( PP ( IN by ) ( NP-LGS ( JJ American ) ( NNS managers ) ) ) ) ) ) )

European multinationals do likewise even in America their affiliates are usually run by American managers


( S ( CC But ) ( NP-SBJ ( DT the ) ( NNPS Japanese ) ) ( VP ( VBP insist ) ( PP-CLR ( IN upon ) ( NP ( JJ Japanese ) ( NNS managers ) ) ) ( ADVP-LOC ( ADVP ( RB everywhere ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP set ) ( PRT ( RP up ) ) ( NP ( NN shop ) ) ) ) ) ) ) )

But the Japanese insist upon Japanese managers everywhere they set up shop


( SQ ( VBP Do ) ( NP-SBJ ( DT the ) ( NNP Japanese ) ) ( VP ( VB feel ) ( ADJP-PRD ( RB so ) ( JJ superior ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD can ) ( RB not ) ( VP ( VB find ) ( NP ( JJ capable ) ( JJ American ) ( NNS managers ) ) ) ) ) ) ) ) )

Do the Japanese feel so superior that they can not find capable American managers


( NP ( NP ( NNP Paul ) ( NN A. ) ( NNP Herbig ) ) ( NP ( NP ( NNP Indiana ) ( NNP University ) ) ( NP-LOC ( NNP Bloomington ) ( NNP Ind ) ) ) )

Paul A. Herbig Indiana University Bloomington Ind


( S ( NP-SBJ ( NNP Mr. ) ( NNP Kageyama ) ) ( VP ( VBZ suggests ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NNP Kotobuki ) ( NNPS Electronics ) ( NNPS Industries ) ( NNS workers ) ) ( VP ( VBD were ) ( VP ( VBG having ) ( NP ( NN difficulty ) ) ( S-CLR ( VP ( VBG understanding ) ( NP ( NP ( PRP$ their ) ( JJ foreign ) ( NNS bosses ) ( POS ' ) ) ( NN perspective ) ) ) ) ) ) ) ) ) )

Mr. Kageyama suggests that Kotobuki Electronics Industries workers were having difficulty understanding their foreign bosses ' perspective


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Kageyama ) ) ( VP ( VBZ does ) ( NP ( NP ( DT an ) ( JJ excellent ) ( NN job ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG explaining ) ( NP ( NP ( DT the ) ( NNS differences ) ) ( ADJP ( DT both ) ( ADJP ( JJ cultural ) ) ( CC and ) ( ADJP ( JJ philosophic ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP I ) ) ( VP ( VBP question ) ( NP ( PRP$ his ) ( NN perspective ) ) ) )

While Mr. Kageyama does an excellent job of explaining the differences both cultural and philosophic I question his perspective


( SQ ( MD Would ) ( NP-SBJ ( PRP he ) ) ( VP ( VB suggest ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS employees ) ) ( PP ( IN of ) ( NP ( NP ( DT an ) ( JJ American ) ( NN company ) ) ( VP ( VBG doing ) ( NP ( NN business ) ) ( PP-LOC ( IN in ) ( NP ( NNP Japan ) ) ) ) ) ) ) ( VP ( VB conform ) ( PP-CLR ( TO to ) ( NP ( NP ( PRP$ their ) ( JJ new ) ( NNS bosses ) ( POS ' ) ) ( NN culture ) ( CC and ) ( NN philosophy ) ) ) ) ) ) ) )

Would he suggest that employees of an American company doing business in Japan conform to their new bosses ' culture and philosophy


( FRAG ( ADVP ( RB Obviously ) ) ( RB not ) )

Obviously not


( S ( ADVP ( RB Thus ) ) ( NP-SBJ ( DT the ) ( NN conclusion ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN burden ) ) ( VP ( VBZ rests ) ( PP-CLR ( IN with ) ( NP ( NN management ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB understand\/adopt ) ( NP ( NP ( DT the ) ( NN culture ) ( CC and ) ( NN philosophy ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN country ) ) ( SBAR ( WHPP-2 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBG operating ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Thus the conclusion is that the burden rests with management to understand\/adopt the culture and philosophy of the country in which they are operating


( S ( S ( NP-SBJ-1 ( DT The ) ( NNS workers ) ) ( VP ( MD can ) ( VP-2 ( VB be ) ( VP ( VBN motivated ) ) ) ) ) ( CC and ) ( S ( NP-SBJ=1 ( DT the ) ( NN company ) ) ( VP=2 ( VB reach ) ( NP ( PRP$ its ) ( JJ full ) ( NN potential ) ) ) ) ( SBAR-TMP ( WHADVP-3 ( RB only ) ( WRB when ) ) ( S ( NP-SBJ ( NN management ) ) ( VP ( VBZ embraces ) ( NP ( NP ( DT the ) ( NNS employees ) ( POS ' ) ) ( NN perspective ) ) ) ) ) )

The workers can be motivated and the company reach its full potential only when management embraces the employees ' perspective


( NP ( NP ( JJ A. ) ( NNP Lawton ) ( NNP Langford ) ) ( NP ( NP ( NNP President ) ) ( NP ( NP ( NNP Municipal ) ( NNP Code ) ( NNP Corp ) ) ( NP-LOC ( NNP Tallahassee ) ( NNP Fla ) ) ) ) )

A. Lawton Langford President Municipal Code Corp Tallahassee Fla


( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ ( NNP Mr. ) ( NNP Kageyama ) ) ( VP ( VBD left ) ( PRT ( RP out ) ) ( NP ( NP ( NP ( CD one ) ( JJ major ) ( NN aspect ) ) ( PP ( IN of ) ( NP ( JJ Japanese ) ( NN culture ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD permeated ) ( NP ( PRP$ his ) ( NN piece ) ) ) ) ) ) ( NP ( NP ( DT the ) ( NN belief ) ) ( PP ( IN in ) ( NP ( NP ( DT the ) ( NN superiority ) ) ( PP ( IN of ) ( NP ( JJ Japanese ) ( NN culture ) ( CC and ) ( NN behavior ) ) ) ( PP ( FW vs. ) ( NP ( NNS others ) ) ) ) ) ) ) ) ) ) ) )

I believe Mr. Kageyama left out one major aspect of Japanese culture that permeated his piece the belief in the superiority of Japanese culture and behavior vs. others


( S ( NP-SBJ-1 ( DT A ) ( NN manager ) ) ( VP ( MD should ) ( RB not ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB rebut ) ( NP ( NP ( DT the ) ( NNS opinions ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NNS employees ) ) ) ( PP ( IN about ) ( NP ( NP ( DT the ) ( NN style ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NN management ) ) ) ) ) ) ) ) ) ) ) )

A manager should not have to rebut the opinions of his employees about the style of his management


( S ( ADVP ( RB Instead ) ) ( NP-SBJ-2 ( PRP he ) ) ( VP ( MD should ) ( VP ( VB listen ) ( S ( VP ( TO to ) ( VP ( VB see ) ( SBAR ( WHADVP-3 ( WRB how ) ) ( S ( NP-SBJ-1 ( DT that ) ( NN criticism ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN used ) ( ADVP-MNR ( RB constructively ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB advance ) ( NP ( NP ( PRP$ his ) ( NN objective ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG carrying ) ( PRT ( RP out ) ) ( NP ( NP ( DT a ) ( NN set ) ) ( PP ( IN of ) ( NP ( NNS tasks ) ) ) ) ( PP-MNR ( IN through ) ( NP ( NP ( DT the ) ( NNS efforts ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NNS subordinates ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Instead he should listen to see how that criticism can be used constructively to advance his objective of carrying out a set of tasks through the efforts of his subordinates


( S ( NP-SBJ ( NP ( JJ Japanese ) ( NN culture ) ) ( PP ( FW vs. ) ( NP ( JJ American ) ( NN culture ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ irrelevant ) ) ) )

Japanese culture vs. American culture is irrelevant


( S ( NP-SBJ ( DT The ) ( NN key ) ) ( VP ( VBZ is ) ( SBAR-NOM-PRD ( WHADVP ( WRB how ) ) ( S ( NP-SBJ ( NP ( DT a ) ( NN manager ) ) ( PP ( IN from ) ( NP ( CD one ) ( NN culture ) ) ) ) ( VP ( MD can ) ( VP ( VB motivate ) ( NP ( NP ( NNS employees ) ) ( PP ( IN from ) ( NP ( DT another ) ) ) ) ) ) ) ) ) )

The key is how a manager from one culture can motivate employees from another


( S ( SBAR-SBJ ( IN For ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Kageyama ) ) ( VP ( TO to ) ( VP ( VB argue ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ American ) ( NNS employees ) ) ( VP ( MD must ) ( ADVP-MNR ( RB passively ) ) ( VP ( VB accept ) ( NP ( NP ( DT a ) ( JJ direct ) ( NN imposition ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ Japanese ) ( NN way ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG doing ) ( NP ( NNS things ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( RB outright ) ( JJ cultural ) ( NN chauvinism ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ first ) ( NN order ) ) ) ) ) )

For Mr. Kageyama to argue that American employees must passively accept a direct imposition of the Japanese way of doing things is outright cultural chauvinism of the first order


( S ( NP-SBJ ( DT The ) ( NNPS Japanese ) ) ( VP ( VBP are ) ( VP ( VBG neglecting ) ( NP ( DT the ) ( NN opportunity ) ( S ( VP ( TO to ) ( VP ( VB synthesize ) ( NP ( NP ( DT a ) ( JJ new ) ( JJ corporate ) ( NN culture ) ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( NP ( DT a ) ( NN fusion ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJS best ) ( NNS aspects ) ) ( PP ( IN of ) ( NP ( DT both ) ( JJ national ) ( NNS cultures ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Japanese are neglecting the opportunity to synthesize a new corporate culture based on a fusion of the best aspects of both national cultures


( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Kageyama ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ accurate ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB deny ) ( NP ( DT a ) ( JJ specific ) ( JJ anti-American ) ( NN bias ) ) ) ) ) ) )

Mr. Kageyama is accurate to deny a specific anti-American bias


( S ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RBR more ) ( JJ difficult ) ) ( S-1 ( VP ( TO to ) ( VP ( VB deny ) ( NP ( NP ( DT a ) ( JJ general ) ( NN bigotry ) ) ( PP ( IN in ) ( S-NOM ( VP ( VBG seeing ) ( NP ( NNS things ) ) ( NP-MNR ( RB only ) ( DT the ) ( JJ Japanese ) ( NN way ) ) ) ) ) ) ) ) ) ) )

It is more difficult to deny a general bigotry in seeing things only the Japanese way


( S ( SBAR-TMP ( WHADVP-2 ( WRB When ) ) ( S ( NP-SBJ ( NP ( DT the ) ( NN response ) ) ( PP ( TO to ) ( NP ( NN criticism ) ) ) ) ( VP ( VBZ is ) ( ADVP ( RB only ) ) ( NP-PRD ( NP ( DT a ) ( JJR better ) ( NN explanation ) ) ( PP ( IN of ) ( NP ( NNS policies ) ) ) ( PP ( IN without ) ( S-NOM ( VP ( VBG altering ) ( NP ( NP ( DT the ) ( NNS reasons ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN criticism ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP I ) ) ( VP ( VBP am ) ( ADJP-PRD ( JJ convinced ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Kageyama ) ) ( VP ( VP ( VBZ has ) ( ADVP ( RB still ) ) ( VP ( VBN failed ) ( S ( VP ( TO to ) ( VP ( VB attack ) ( NP ( NP ( DT the ) ( NN root ) ( NN cause ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN problem ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( ADVP ( RB simply ) ) ( VP ( VBG treating ) ( NP ( NNS symptoms ) ) ) ) ) ) ) ) ) )

When the response to criticism is only a better explanation of policies without altering the reasons for the criticism I am convinced that Mr. Kageyama has still failed to attack the root cause of the problem and is simply treating symptoms


( NP ( NP ( NNP Norman ) ( NNP L. ) ( NNP Owens ) ) ( NP-LOC ( NNP Tempe ) ( NNP Ariz ) ) )

Norman L. Owens Tempe Ariz


( S ( PP-TMP ( IN At ) ( NP ( NP ( DT a ) ( NN time ) ) ( SBAR ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( NNP Jon ) ( NNP Levy ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBG planning ) ( NP ( NP ( DT the ) ( JJS biggest ) ( NN spring ) ( NN season ) ) ( PP ( IN in ) ( NP ( NP ( PRP$ his ) ( NN dress ) ( NN company ) ( POS 's ) ) ( CD 17 ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( PRP$ his ) ( NN work ) ( NN day ) ) ( VP ( VBZ is ) ( VP ( VBN studded ) ( PP-CLR ( IN with ) ( NP ( NP ( JJ intense ) ( NNS moments ) ) ( PP ( IN of ) ( NP ( NP ( NN concern ) ) ( PP ( IN about ) ( NP ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( JJS biggest ) ( NNS customers ) ) ) ) ( NP ( NNP Campeau ) ( NNP Corp ) ) ) ) ) ) ) ) ) ) )

At a time when Jon Levy should be planning the biggest spring season in his dress company 's 17 years his work day is studded with intense moments of concern about one of his biggest customers Campeau Corp


( SINV ( S-TPC-2 ( S ( NP-SBJ ( DT The ) ( NN dress ) ( NN business ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB always ) ) ( VP ( VBN been ) ( NP-PRD ( DT a ) ( NN gamble ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( ADVP-TMP ( RB never ) ) ( VP ( VBN been ) ( PP-PRD ( IN like ) ( NP ( DT this ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Levy ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP St. ) ( NNP Gillian ) ( NNP Group ) ( NNP Ltd. ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ has ) ( VP ( VBN become ) ( NP-PRD ( DT a ) ( JJ hot ) ( NN name ) ) ( ADVP ( NNS thanks ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN campaign ) ) ( PP ( IN of ) ( NP ( JJ sexy ) ( NN TV ) ( NNS commercials ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The dress business has always been a gamble but it 's never been like this says Mr. Levy president of St. Gillian Group Ltd. which has become a hot name thanks to a campaign of sexy TV commercials


( S ( NP-TMP ( DT Every ) ( NN day ) ) ( NP-SBJ-2 ( NNP Mr. ) ( NNP Levy ) ) ( VP ( VBZ checks ) ( NP ( NP ( NNS orders ) ) ( PP ( IN from ) ( NP ( NN Campeau ) ( NN department ) ( NN store ) ( NNS chains ) ) ) ) ( S-ADV ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB guess ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN paid ) ) ) ) ) ) ) ) ) ) ) ) )

Every day Mr. Levy checks orders from Campeau department store chains trying to guess if he will be paid


( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP 'm ) ( ADVP-TMP ( RB now ) ) ( VP ( VBG monitoring ) ( NP ( DT every ) ( JJ major ) ( NN account ) ) ) ) )

I 'm now monitoring every major account


( S ( NP-SBJ ( NP ( NNP Campeau ) ) ( NP ( NP ( NN owner ) ) ( PP ( IN of ) ( NP ( NP ( JJ such ) ( NNS retailers ) ) ( PP ( IN as ) ( NP ( NP ( NNP Bloomingdale ) ( POS 's ) ) ( NP ( NNP Bon ) ( NNP Marche ) ) ( CC and ) ( NP ( NNP Jordan ) ( NNP Marsh ) ) ) ) ) ) ) ) ( VP ( VBD sidestepped ) ( NP ( JJ financial ) ( NN collapse ) ) ( NP-TMP ( JJ last ) ( NN month ) ) ( PP-TMP ( IN after ) ( NP ( NP ( DT an ) ( NN emergency ) ( ADJP ( QP ( CD 250 ) ( CD million ) ) ) ( NN loan ) ) ( PP ( IN from ) ( NP ( NP ( NNP Olympia ) ( CC & ) ( NNP York ) ( NNPS Developments ) ( NNP Ltd. ) ) ( NP ( NP ( DT a ) ( NNP Canadian ) ( NN developer ) ) ( CC and ) ( NP ( NP ( DT a ) ( JJ major ) ( NN shareholder ) ) ( PP ( IN in ) ( NP ( NNP Campeau ) ) ) ) ) ) ) ) ) ) )

Campeau owner of such retailers as Bloomingdale 's Bon Marche and Jordan Marsh sidestepped financial collapse last month after an emergency 250 million loan from Olympia & York Developments Ltd. a Canadian developer and a major shareholder in Campeau


( S ( NP-SBJ ( NP ( DT The ) ( NN need ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN loan ) ) ) ) ( VP ( VBD surprised ) ( NP ( NP ( JJ many ) ( NNS analysts ) ( CC and ) ( NN bond ) ( NNS holders ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBN told ) ( PP-LOC ( IN at ) ( NP ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ annual ) ( NN meeting ) ) ( PP-TMP ( IN in ) ( NP ( NNP July ) ) ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBD were ) ( RB n't ) ( NP-PRD ( NP ( DT any ) ( JJ major ) ( NNS problems ) ) ( ADVP-TMP ( RB ahead ) ) ) ) ) ) ) ) ) ) ) ) ) )

The need for the loan surprised many analysts and bond holders who had been told at the company 's annual meeting in July that there were n't any major problems ahead


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN risk ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG doing ) ( NP ( NN business ) ) ( PP ( IN with ) ( NP ( NP ( NNP Campeau ) ( POS 's ) ) ( NNP Federated ) ( CC and ) ( NNP Allied ) ( NN department ) ( NN store ) ( NNS chains ) ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( IN about ) ( S ( VP ( TO to ) ( VP ( VB increase ) ( ADVP ( RB greatly ) ) ( PP ( CONJP ( RB not ) ( RB only ) ) ( PP ( IN for ) ( NP ( NNP Mr. ) ( NNP Levy ) ) ) ( CC but ) ( PP ( IN for ) ( NP ( NP ( NNS hundreds ) ) ( PP ( IN of ) ( NP ( JJ other ) ( JJ small ) ( NN apparel ) ( NNS makers ) ( NN button ) ( NNS suppliers ) ( NN trucking ) ( NNS firms ) ( CC and ) ( NN fabric ) ( NNS houses ) ) ) ) ) ) ) ) ) ) ) )

The risk of doing business with Campeau 's Federated and Allied department store chains is about to increase greatly not only for Mr. Levy but for hundreds of other small apparel makers button suppliers trucking firms and fabric houses


( S ( NP-TMP ( JJ Next ) ( NN week ) ) ( NP-SBJ-1 ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( JJ top ) ( NNS designers ) ( CC and ) ( NNS manufacturers ) ) ( VP ( MD will ) ( VP ( VB begin ) ( S ( VP ( VBG showing ) ( NP ( NP ( NNS fashions ) ) ( PP ( IN for ) ( NP ( NP ( NN spring ) ( CD 1990 ) ) ( NP ( NP ( DT the ) ( ADJP ( JJ second ) ( RBS most ) ( JJ important ) ) ( NN selling ) ( NN season ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) ) ) ) ) ) )

Next week the country 's top designers and manufacturers will begin showing fashions for spring 1990 the second most important selling season of the year


( S ( CC And ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( DT the ) ( NN applause ) ) ( VP ( VBZ dies ) ( PRT ( RP down ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNS showrooms ) ) ( PP-LOC ( IN along ) ( NP ( NP ( NNP Seventh ) ( NNP Avenue ) ) ( CC and ) ( NP ( NNP Broadway ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( ADJP ( RB stylishly ) ( JJ clad ) ) ( NNP Campeau ) ( NNS buyers ) ) ( VP ( MD will ) ( VP ( VB begin ) ( S ( VP ( VBG writing ) ( NP ( NNS orders ) ) ) ) ) ) )

And as the applause dies down in showrooms along Seventh Avenue and Broadway stylishly clad Campeau buyers will begin writing orders


( S ( NP-SBJ-1 ( NP ( NNS Orders ) ) ( PP ( IN from ) ( NP ( NNP Campeau ) ( NNS retailers ) ) ) ) ( VP ( VBD used ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( NN cause ) ) ( PP ( IN for ) ( NP ( NN celebration ) ) ) ) ) ) ) ) )

Orders from Campeau retailers used to be cause for celebration


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( ADVP-TMP ( DT no ) ( RB longer ) ) ( ADJP-PRD ( JJ true ) ) ( PP-PRP ( RB because ) ( IN of ) ( NP ( NP ( NNP Campeau ) ( POS 's ) ) ( JJ massive ) ( NN debt ) ( NN load ) ) ) ) )

This is no longer true because of Campeau 's massive debt load


( SINV ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT all ) ) ( SBAR ( S ( NP-SBJ-3 ( NN anybody ) ) ( VP ( VBZ wants ) ( S ( VP ( TO to ) ( VP ( VB talk ) ( PP ( IN about ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Richard ) ( NNP Posner ) ) ( NP ( NP ( NN executive ) ( NN vice ) ( NN president ) ) ( PP ( IN for ) ( NP ( NP ( NNP Credit ) ( NNP Exchange ) ( NNP Inc. ) ) ( NP ( DT a ) ( VBG leading ) ( NN credit ) ( NN service ) ) ) ) ) ) )

It 's all anybody wants to talk about says Richard Posner executive vice president for Credit Exchange Inc. a leading credit service


( S ( NP-SBJ ( NNS People ) ) ( VP ( VBP wonder ) ( SBAR ( WHNP ( WP what ) ) ( S ( VP ( VBZ 's ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB happen ) ( ADVP ( RB next ) ) ) ) ) ) ) ) ) ) )

People wonder what 's going to happen next


( S ( NP-SBJ ( JJ Many ) ( NNS manufacturers ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ worried ) ( PP ( IN about ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN paid ) ( PP-CLR ( IN for ) ( NP ( NP ( NN merchandise ) ) ( VP ( ADVP ( RB already ) ) ( VBN shipped ) ( PP-DIR ( TO to ) ( NP ( NNP Campeau ) ( NNS stores ) ) ) ) ) ) ) ) ) ) ) ) )

Many manufacturers are worried about being paid for merchandise already shipped to Campeau stores


( S ( CC But ) ( NP-SBJ ( NP ( DT those ) ( NNS dollars ) ) ( PP ( IN at ) ( NP ( NN risk ) ) ) ) ( VP ( VBP pale ) ( PP-CLR ( IN in ) ( NP ( NP ( NN comparison ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NN investment ) ) ( VP ( VBN required ) ( S-PRP ( VP ( TO to ) ( VP ( VP ( VB make ) ) ( CC and ) ( VP ( VB ship ) ) ( NP-3 ( NN spring ) ( NNS goods ) ) ( PP-DIR-4 ( TO to ) ( NP ( NNP Campeau ) ( NNS stores ) ) ) ) ) ) ) ) ) ) ) ) )

But those dollars at risk pale in comparison to the investment required to make and ship spring goods to Campeau stores


( SINV ( S-TPC-4 ( NP-SBJ ( NP ( DT The ) ( JJ few ) ( CD million ) ( NNS dollars ) ) ( SBAR ( S ( NP-SBJ ( PRP I ) ) ( VP ( MD could ) ( VP ( VB lose ) ( NP-TMP ( NN today ) ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NN nothing ) ) ( PP ( IN against ) ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( MD could ) ( VP ( VB lose ) ( PP ( IN on ) ( NP ( DT the ) ( NN spring ) ( NN line ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Levy ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ estimates ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Campeau ) ( NNS stores ) ) ( VP ( MD will ) ( VP ( VB sell ) ( NP ( NP ( ADJP ( QP ( CD 25 ) ( CD million ) ) ) ( NN worth ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NNS clothes ) ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ) ) ) ) ) )

The few million dollars I could lose today is nothing against what I could lose on the spring line says Mr. Levy who estimates that Campeau stores will sell 25 million worth of his clothes this year


( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP 'm ) ( VP ( VBG buying ) ( NP ( NN fabric ) ) ( ADVP-TMP ( RB right ) ( RB now ) ) ( PP ( IN for ) ( NP ( NP ( NNS clothes ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( NP-SBJ-1 ( PRP I ) ) ( VP ( MD may ) ( RB not ) ( VP ( VB be ) ( VP ( VBN paid ) ( PP-CLR ( IN for ) ) ( PP-TMP ( IN until ) ( NP ( NNP April ) ( CC or ) ( NNP May ) ) ) ) ) ) ) ) ) ) ) ) )

I 'm buying fabric right now for clothes which I may not be paid for until April or May


( SBARQ ( WHNP-1 ( WP What ) ) ( SQ ( VP ( VBZ happens ) ( PP ( TO to ) ( NP ( PRP me ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NNP Campeau ) ) ( VP ( VBZ collapses ) ( PP-TMP ( IN between ) ( NP ( RB now ) ( CC and ) ( RB then ) ) ) ) ) ) ) ) )

What happens to me if Campeau collapses between now and then


( S ( NP-SBJ ( NP ( DT Some ) ( NN credit ) ( NNS concerns ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNP Bernard ) ( NNP Sands ) ( NNP Credit ) ( NNPS Consultants ) ( NNP Inc. ) ) ) ) ( VP ( VBP have ) ( VP ( VBN told ) ( NP-1 ( NNS clients ) ) ( S ( RB not ) ( VP ( TO to ) ( VP ( VB ship ) ( NP ( NN anything ) ) ( PP-DIR ( TO to ) ( NP ( NNP Federated ) ( CC or ) ( NNP Allied ) ( NNS stores ) ) ) ( PP-MNR ( IN on ) ( NP ( NN credit ) ) ) ) ) ) ) ) )

Some credit concerns such as Bernard Sands Credit Consultants Inc. have told clients not to ship anything to Federated or Allied stores on credit


( SINV ( S-TPC-1 ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB especially ) ( JJ true ) ( PP ( IN for ) ( NP ( NN spring ) ( NN merchandise ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Jim ) ( NNP Rindos ) ) ( NP ( NP ( NN credit ) ( NN manager ) ) ( PP-LOC ( IN at ) ( NP ( NNP Bernard ) ( NNP Sands ) ) ) ) ) )

This is especially true for spring merchandise says Jim Rindos credit manager at Bernard Sands


( S ( NP-SBJ ( NNP Campeau ) ) ( VP ( VBZ has ) ( NP ( ADJP ( RB too ) ( JJ much ) ) ( NN debt ) ) ) )

Campeau has too much debt


( S ( NP-SBJ ( NP ( JJ Other ) ( NN credit ) ( NNS houses ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Credit ) ( NNP Exchange ) ) ( CC and ) ( NP ( NNP Solo ) ( NNP Credit ) ( NNP Service ) ( NNP Corp. ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBG suggesting ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP$ their ) ( NNS clients ) ) ( VP ( VB study ) ( NP ( DT each ) ( NN order ) ) ( PP-TMP ( IN before ) ( NP ( NN shipping ) ) ) ) ) ) ) ) )

Other credit houses such as Credit Exchange and Solo Credit Service Corp. are suggesting that their clients study each order before shipping


( SINV ( S-TPC-2 ( S ( NP-SBJ ( NNS Payments ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ good ) ) ( ADVP-TMP ( RB right ) ( RB now ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP are ) ( RB n't ) ( VP ( VBG recommending ) ( NP ( NP ( DT any ) ( JJ long-term ) ( NNS lines ) ) ( PP ( IN of ) ( NP ( NN credit ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ-3 ( NP ( NNP Richard ) ( NNP Hastings ) ) ( NP ( DT a ) ( JJ retail ) ( NN credit ) ( NN analyst ) ) ) ( S-ADV ( VP ( VBG referring ) ( PP-CLR ( TO to ) ( NP ( NP ( NN credit ) ( NNS lines ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP make ) ( S ( NP-SBJ ( NN inventory ) ( NNS purchases ) ) ( ADJP-PRD ( JJ automatic ) ) ) ) ) ) ) ) ) ) )

Payments are good right now but we are n't recommending any long-term lines of credit says Richard Hastings a retail credit analyst referring to credit lines which make inventory purchases automatic


( S ( NP-SBJ ( DT The ) ( NNP Campeau ) ( NN situation ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( NP-ADV ( DT a ) ( RB little ) ) ( JJ uncertain ) ) ( CC and ) ( ADJP ( ADJP ( RB very ) ( JJ difficult ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB analyze ) ) ) ) ) ) ) ) )

The Campeau situation is a little uncertain and very difficult to analyze


( S ( PP-PRP ( IN Because ) ( IN of ) ( NP ( DT those ) ( NNS concerns ) ) ) ( NP-SBJ ( DT some ) ( NNS manufacturers ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( MD will ) ( VP ( VB ask ) ( PP-CLR ( IN for ) ( NP ( NP ( NNS letters ) ) ( PP ( IN of ) ( NP ( NN credit ) ) ) ) ) ( PP-TMP ( IN before ) ( S-NOM ( VP ( VBG shipping ) ( NP ( NN spring ) ( NN merchandise ) ) ) ) ) ) ) ) ) ) )

Because of those concerns some manufacturers say they will ask for letters of credit before shipping spring merchandise


( SINV ( S-TPC-4 ( S ( NP-SBJ-1 ( PRP We ) ) ( VP ( VBP 're ) ( VP ( VBG being ) ( VP ( VBN paid ) ( NP-TMP ( NN today ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VP ( VBP 're ) ( ADJP-PRD ( JJ worried ) ( PP ( IN about ) ( NP ( NN tomorrow ) ) ) ) ) ( CC and ) ( VP ( MD will ) ( VP ( VB want ) ( NP ( NP ( NNS letters ) ) ( PP ( IN of ) ( NP ( NN credit ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( DT the ) ( NNS sales ) ( NN director ) ) ( PP-LOC ( IN at ) ( NP ( NP ( CD one ) ( JJ major ) ( NN dress ) ( NN maker ) ) ( SBAR ( WHNP-3 ( WP who ) ) ( S ( VP ( VBD asked ) ( S ( RB not ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN identified ) ) ) ) ) ) ) ) ) ) ) )

We 're being paid today but we 're worried about tomorrow and will want letters of credit says the sales director at one major dress maker who asked not to be identified


( S ( NP-SBJ ( NP ( NNP Howard ) ( NNP Bloom ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN dress ) ( NN firm ) ( NNP Chetta ) ( NNP B ) ( NNP Inc. ) ) ) ) ) ( VP ( VBZ says ) ( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( JJ big ) ( NN time ) ( NN chaos ) ) ( NP-TMP ( NN today ) ) ) ) ) )

Howard Bloom president of the dress firm Chetta B Inc. says It 's big time chaos today


( S ( NP-SBJ-1 ( PRP I ) ) ( VP ( VBP 'm ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VP ( VB ship ) ) ( CC and ) ( VP ( VB hope ) ( SBAR ( S ( NP-SBJ-2 ( PRP I ) ) ( VP ( VB get ) ( VP ( VBN paid ) ) ) ) ) ) ) ) ) ) ) )

I 'm going to ship and hope I get paid


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ-1 ( PRP I ) ) ( VP ( VBP need ) ( S ( VP ( TO to ) ( VP ( VB ask ) ( PP-CLR ( IN for ) ( NP ( NP ( NN money ) ) ( ADVP-LOC ( RB up ) ( RB front ) ) ) ) ( ADVP-TMP ( RB later ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP I ) ) ( VP ( MD will ) ) )

If I need to ask for money up front later I will


( S ( NP-SBJ ( NP ( NNP Carol ) ( NNP Sanger ) ) ( NP ( NP ( NN vice ) ( NN president ) ) ( NP ( JJ corporate ) ( NNS communications ) ) ( PP-LOC ( IN at ) ( NP ( NNP Campeau ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Federated ) ( CC and ) ( NNP Allied ) ( NNS chains ) ) ) ) ( VP ( VBP are ) ( VP ( VBG paying ) ( NP ( PRP$ their ) ( NNS bills ) ) ( PP-MNR ( IN in ) ( NP ( DT a ) ( JJ timely ) ( NN manner ) ) ) ) ) ) ) ) )

Carol Sanger vice president corporate communications at Campeau says that all of the Federated and Allied chains are paying their bills in a timely manner


( SINV ( S-TPC-2 ( NP-SBJ-1 ( PRP They ) ) ( VP ( VP ( VBP continue ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( PRP$ their ) ( NNS bills ) ) ) ) ) ) ( CC and ) ( VP ( MD will ) ( VP ( VB do ) ( ADVP ( RB so ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Ms. ) ( NNP Sanger ) ) )

They continue to pay their bills and will do so says Ms. Sanger


( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP 're ) ( ADJP-PRD ( JJ confident ) ( SBAR ( S ( NP-SBJ ( PRP we ) ) ( VP ( MD 'll ) ( VP ( VB be ) ( VP ( VBG paying ) ( NP ( NP ( PRP$ our ) ( NNS bills ) ) ( PP ( IN for ) ( NP ( NN spring ) ( NN merchandise ) ) ) ) ( ADVP ( RB as ) ( RB well ) ) ) ) ) ) ) ) ) )

We 're confident we 'll be paying our bills for spring merchandise as well


( S ( ADVP ( RB Typically ) ) ( NP-SBJ-1 ( NNS manufacturers ) ) ( VP ( VBP are ) ( VP ( VBN paid ) ( PP-TMP ( NP ( CD 10 ) ( NNS days ) ) ( IN after ) ( NP ( NP ( DT the ) ( NN month ) ) ( SBAR ( WHPP-2 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP ship ) ) ) ) ) ) ) ) )

Typically manufacturers are paid 10 days after the month in which they ship


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ-1 ( NNS goods ) ) ( VP ( VBP are ) ( VP ( VBN shipped ) ( PP-DIR ( TO to ) ( NP ( NP ( NNP Bloomingdale ) ( POS 's ) ) ) ) ( PP-TMP ( IN between ) ( NP ( NP ( NNP Oct. ) ( CD 1 ) ) ( CC and ) ( NP ( NNP Oct. ) ( CD 20 ) ) ) ) ) ) ) ) ( NP-SBJ-3 ( NNS manufacturers ) ) ( VP ( VBP expect ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN paid ) ( PP-TMP ( IN by ) ( NP ( NNP Nov. ) ( CD 10 ) ) ) ) ) ) ) ) )

If goods are shipped to Bloomingdale 's between Oct. 1 and Oct. 20 manufacturers expect to be paid by Nov. 10


( S ( CC But ) ( NP-SBJ-1 ( NP ( NNS manufacturers ) ) ( VP ( ADVP-TMP ( RB now ) ) ( VBG buying ) ( NP ( NN fabric ) ) ( PP ( IN for ) ( NP ( NN spring ) ( NN season ) ( NNS goods ) ) ) ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN paid ) ( PP-TMP ( IN until ) ( NP ( NP ( NNP March ) ) ( NP ( NNP April ) ) ( CC or ) ( RB even ) ( NP ( NNP May ) ) ) ) ) ) ) )

But manufacturers now buying fabric for spring season goods wo n't be paid until March April or even May


( S ( NP-SBJ ( NP ( DT Some ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN market ) ) ) ) ( VP ( NN question ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( NN Campeau ) ) ( VP ( MD will ) ( VP ( VB be ) ( PP-LOC-PRD ( IN in ) ( NP ( NP ( DT a ) ( NN position ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( NNS bills ) ) ) ) ) ) ) ) ( PP-LOC ( IN at ) ( NP ( DT that ) ( NN time ) ) ) ) ) ) ) ) )

Some in the market question whether Campeau will be in a position to pay bills at that time


( SINV ( S-TPC-1 ( NP-SBJ ( NN Everybody ) ) ( VP ( VBZ is ) ( ADJP-PRD ( VBN worried ) ( PP ( IN about ) ( NP ( NP ( DT the ) ( NN possibility ) ) ( PP ( IN of ) ( NP ( NNS cancellations ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Kurt ) ( NNP Barnard ) ) ( NP ( NP ( NN publisher ) ) ( PP ( IN of ) ( NP ( NP ( NNP Barnard ) ( POS 's ) ) ( NNP Retail ) ( NNP Marketing ) ( NNP Report ) ) ) ) ) )

Everybody is worried about the possibility of cancellations says Kurt Barnard publisher of Barnard 's Retail Marketing Report


( S ( NP-SBJ ( NP ( DT The ) ( NNS buyers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP work ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( JJ various ) ( NNP Campeau ) ( NNS chains ) ) ) ) ) ) ) ( VP ( MD may ) ( VP ( VB lose ) ( NP ( PRP$ their ) ( NNS jobs ) ) ) ) )

The buyers who work for the various Campeau chains may lose their jobs


( S ( NP-SBJ-1 ( NP ( DT The ) ( NNS stores ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP work ) ( PP-CLR ( IN for ) ) ) ) ) ) ( VP ( MD may ) ( VP ( VB be ) ( VP ( VBN sold ) ) ) ) )

The stores they work for may be sold


( S ( SBAR-SBJ ( WHNP-1 ( WP What ) ) ( S ( NP-SBJ ( WDT that ) ) ( VP ( MD will ) ( VP ( VB mean ) ( PP ( IN for ) ( NP ( NNS manufacturers ) ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN anybody ) ( POS 's ) ) ( NN guess ) ) ) )

What that will mean for manufacturers is anybody 's guess


( S ( NP-SBJ-1 ( NP ( NNP Campeau ) ( POS 's ) ) ( JJ financial ) ( NN situation ) ) ( VP ( VBZ is ) ( VP ( VBN complicated ) ( PP ( IN by ) ( NP-LGS ( NP ( DT an ) ( VBN estimated ) ( QP ( CD 1.23 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NN debt ) ) ) ( ADJP ( JJ due ) ( NP-TMP ( JJ next ) ( NN spring ) ) ) ) ) ) ) )

Campeau 's financial situation is complicated by an estimated 1.23 billion in debt due next spring


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ includes ) ( NP ( NP ( NP ( DT a ) ( NN working ) ( NN capital ) ( NN facility ) ) ( PP ( IN for ) ( NP ( NP ( NNP Allied ) ( NNPS Stores ) ) ( PP ( IN of ) ( NP ( QP ( CD 350 ) ( CD million ) ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ matures ) ( NP-TMP ( NNP March ) ( CD 15 ) ( CD 1990 ) ) ) ) ) ) ( CC and ) ( NP ( NP ( DT an ) ( ADJP ( QP ( CD 800 ) ( CD million ) ) ) ( NN bridge ) ( NN loan ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP April ) ( CD 30 ) ( CD 1990 ) ) ) ) ) ) )

This includes a working capital facility for Allied Stores of 350 million that matures March 15 1990 and an 800 million bridge loan due April 30 1990


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBZ has ) ( VP ( VBN stated ) ( PP-LOC ( IN in ) ( NP ( ADJP ( RB recently ) ( VBN filed ) ) ( JJ financial ) ( NNS documents ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ anticipates ) ( S ( VP ( VBG refinancing ) ( NP ( PRP$ its ) ( NNP March ) ( CD 1990 ) ( NNS payments ) ) ) ) ) ) ) ) ) )

The company has stated in recently filed financial documents that it anticipates refinancing its March 1990 payments


( S ( PP-TMP ( IN In ) ( NP ( JJ recent ) ( NNS months ) ) ) ( NP-SBJ ( NP ( JJ numerous ) ( NNS retailers ) ) ) ( VP ( VBP have ) ( VP ( VBN filed ) ( PP-CLR ( IN for ) ( NP ( NN Chapter ) ( CD 11 ) ( NN bankruptcy ) ( NN protection ) ) ) ( PP-2 ( VBG including ) ( NP ( NP ( NNP Bonwit ) ( NNP Teller ) ) ( NP ( NNP B. ) ( NNP Altman ) ( CC & ) ( NNP Co. ) ) ( CC and ) ( NP ( NNP Miller ) ( CC & ) ( NNP Rhoads ) ( NNP Inc ) ) ) ) ) ) )

In recent months numerous retailers have filed for Chapter 11 bankruptcy protection including Bonwit Teller B. Altman & Co. and Miller & Rhoads Inc


( S ( NP-SBJ ( NP ( DT Those ) ( NNS filings ) ) ( CC plus ) ( NP ( NP ( DT the ) ( JJ expected ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( ADJP ( RB financially ) ( JJ healthy ) ) ( NNS chains ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Saks ) ( NNP Fifth ) ( NNP Avenue ) ) ( NP ( NNP Marshall ) ( NNP Field ) ( POS 's ) ) ( CC and ) ( NP ( NNP Bloomingdale ) ( POS 's ) ) ) ) ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN added ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NN anxiety ) ) ) ) ) )

Those filings plus the expected sale of a number of financially healthy chains such as Saks Fifth Avenue Marshall Field 's and Bloomingdale 's have added to the anxiety


( SINV ( S-TPC-1 ( ADVP-TMP ( RB Right ) ( RB now ) ) ( NP-SBJ ( NNP Federated ) ) ( VP ( VBZ owes ) ( NP ( PRP us ) ) ( NP ( NP ( DT a ) ( JJ considerable ) ( NN amount ) ) ( PP ( IN of ) ( NP ( NN money ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Morris ) ( NNP Marmalstein ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP David ) ( NNP Warren ) ( NNPS Enterprises ) ) ( NP ( DT a ) ( JJ major ) ( NN dress ) ( NN manufacturer ) ) ) ) ) ) )

Right now Federated owes us a considerable amount of money says Morris Marmalstein president of David Warren Enterprises a major dress manufacturer


( S ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP expect ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ current ) ( PP ( IN with ) ( NP ( PRP$ their ) ( NNS debts ) ) ) ) ( PP-TMP ( IN by ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN week ) ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-1 ( PRP we ) ) ( VP ( VBP are ) ( VP ( VBG considering ) ( S ( VP ( VBG asking ) ( NP ( PRP them ) ) ( PP-CLR ( IN for ) ( NP ( NP ( NNS letters ) ) ( PP ( IN of ) ( NP ( NN credit ) ) ) ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP take ) ( NP ( JJR more ) ( NNS orders ) ) ) ) ) ) ) ) ) ) )

We expect they will be current with their debts by the end of the week but we are considering asking them for letters of credit before we take more orders


( S ( NP-SBJ ( NNP Mr. ) ( NNP Marmalstein ) ) ( VP ( VBZ adds ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP$ his ) ( NN company ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB now ) ) ( VP ( VBG holding ) ( NP ( DT some ) ( NNS goods ) ) ( PP ( IN in ) ( NP ( NP ( NN anticipation ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN paid ) ( PP ( RB in ) ( ADJP ( RB full ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Marmalstein adds that his company is now holding some goods in anticipation of being paid in full


( S ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( VP ( VBN become ) ( NP-PRD ( DT a ) ( JJ day-by-day ) ( NN business ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

It 's become a day-by-day business he says


( S ( NP-SBJ ( NN Business ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB never ) ) ( VP ( VBN been ) ( ADJP-PRD ( DT this ) ( JJ tough ) ) ( ADVP-TMP ( RB before ) ) ) ) )

Business has never been this tough before


( S ( SINV ( CONJP ( RB Not ) ( RB only ) ) ( VBZ does ) ( NP-SBJ-1 ( PRP$ your ) ( NN product ) ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ excellent ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-2 ( PRP you ) ) ( ADVP ( RB also ) ) ( VP ( VBP have ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB collect ) ) ) ) ) ) ) ) ) ) )

Not only does your product have to be excellent but you also have to be able to collect


( S ( NP-SBJ ( JJ Other ) ( NNS manufacturers ) ) ( VP ( VBP are ) ( ADJP-PRD ( RB equally ) ( JJ cautious ) ) ) )

Other manufacturers are equally cautious


( S ( NP-SBJ ( NP ( NNP Bud ) ( NNP Konheim ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NNP Nicole ) ( NNP Miller ) ( NNP Inc. ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP$ his ) ( NN company ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB now ) ) ( VP ( VBG shipping ) ( PP-DIR ( ADVP ( RB only ) ) ( TO to ) ( NP ( NP ( DT the ) ( NN flagship ) ( NNS stores ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Federated ) ( CC and ) ( NNP Allied ) ( NNS chains ) ) ) ) ) ) ) ) ) ) )

Bud Konheim president of Nicole Miller Inc. says his company is now shipping only to the flagship stores of the Federated and Allied chains


( S ( S-TPC-1 ( NP-SBJ ( DT This ) ) ( VP ( VBZ limits ) ( NP ( PRP$ his ) ( JJ financial ) ( NN exposure ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

This limits his financial exposure he says


( SINV ( S-TPC-1 ( NP-SBJ ( DT The ) ( NNS branches ) ) ( VP ( VBP are ) ( NP-PRD ( RB just ) ( ADJP ( VBN warmed ) ( RP over ) ) ( JJ empty ) ( NNS halls ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Konheim ) ) )

The branches are just warmed over empty halls says Mr. Konheim


( SBARQ ( WHADVP-1 ( WRB Why ) ) ( SQ ( MD should ) ( NP-SBJ ( PRP I ) ) ( VP ( VB be ) ( NP-PRD ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( DT that ) ( NN problem ) ) ) ) ) ) )

Why should I be part of that problem


( S ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP 've ) ( VP ( VBN got ) ( NP ( JJ limited ) ( NN production ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB give ) ( NP ( PRP it ) ) ( PP-DTV ( TO to ) ( NP ( NNS underperformers ) ) ) ) ) ) )

I 've got limited production and I ca n't give it to underperformers


( S ( NP-SBJ ( NP ( NNP Campeau ) ( POS 's ) ) ( NNP Ms. ) ( NNP Sanger ) ) ( VP ( VBZ disputes ) ( NP ( NP ( NNP Mr. ) ( NNP Konheim ) ( POS 's ) ) ( NNS comments ) ) ) )

Campeau 's Ms. Sanger disputes Mr. Konheim 's comments


( S ( S-TPC-1 ( NP-SBJ ( NP ( DT Many ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS branches ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( RB very ) ( JJ lucrative ) ) ) ) ( NP-SBJ ( PRP she ) ) ( VP ( VBZ says ) ) )

Many of the branches are very lucrative she says


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( ADVP ( RB just ) ) ( NP-PRD ( JJ nonsense ) ) ) )

That 's just nonsense


( S ( PP ( IN As ) ( PP ( IN for ) ( NP ( NP ( NNP Mr. ) ( NNP Levy ) ) ( PP-LOC ( IN at ) ( NP ( NNP St. ) ( NNP Gillian ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD will ) ( VP ( VB maintain ) ( NP ( NP ( PRP$ his ) ( NN credit ) ( NNS lines ) ) ( PP ( IN with ) ( NP ( DT the ) ( JJ various ) ( NNP Campeau ) ( NNS stores ) ) ) ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP miss ) ( NP ( DT a ) ( NN payment ) ) ) ) ) ) ) ) ) ) )

As for Mr. Levy at St. Gillian he says he will maintain his credit lines with the various Campeau stores unless they miss a payment


( S ( S-TPC-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP slip ) ( PP ( IN for ) ( NP ( CD 10 ) ( NNS cents ) ) ) ( PP-TMP ( IN for ) ( NP ( CD 10 ) ( NNS minutes ) ) ) ) ) ) ( NP-SBJ ( PRP I ) ) ( VP ( MD 'll ) ( VP ( VB stop ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

If they slip for 10 cents for 10 minutes I 'll stop he says


( S ( NP-SBJ-1 ( NNP Kemper ) ( NNP Financial ) ( NNPS Services ) ( NNP Inc. ) ) ( S-ADV ( VP ( VBG charging ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NN program ) ( NN trading ) ) ( VP ( VBZ is ) ( VP ( VBG ruining ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ) ) ) ) ) ( VP ( VBD cut ) ( PRT ( RP off ) ) ( NP-2 ( CD four ) ( JJ big ) ( NNP Wall ) ( NNP Street ) ( NNS firms ) ) ( PP ( IN from ) ( S-NOM ( VP ( VBG doing ) ( NP ( NP ( DT any ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN stock-trading ) ( NN business ) ) ) ) ) ) ) ) )

Kemper Financial Services Inc. charging that program trading is ruining the stock market cut off four big Wall Street firms from doing any of its stock-trading business


( S ( NP-SBJ ( DT The ) ( NN move ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJS biggest ) ( NN salvo ) ) ( ADVP ( RB yet ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( VBN renewed ) ( NN outcry ) ) ( PP ( IN against ) ( NP ( NN program ) ( NN trading ) ) ) ) ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( NNP Kemper ) ) ( VP ( VBG putting ) ( NP ( NP ( PRP$ its ) ( NN money ) ) ( NP ( NP ( DT the ) ( NNS millions ) ) ( PP ( IN of ) ( NP ( NNS dollars ) ) ) ( PP ( IN in ) ( NP ( NNS commissions ) ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ generates ) ( NP-TMP ( DT each ) ( NN year ) ) ) ) ) ) ) ( SBAR-PUT ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ ( PRP$ its ) ( NN mouth ) ) ( VP ( VBZ is ) ) ) ) ) ) ) ) )

The move is the biggest salvo yet in the renewed outcry against program trading with Kemper putting its money the millions of dollars in commissions it generates each year where its mouth is


( S ( NP-SBJ ( NP ( DT The ) ( NNP Kemper ) ( NNP Corp. ) ( NN unit ) ) ( CC and ) ( NP ( JJ other ) ( NNS critics ) ) ) ( VP ( VBP complain ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NN program ) ( NN trading ) ) ( VP ( VP ( VBZ causes ) ( NP ( NP ( NP ( JJ wild ) ( NNS swings ) ) ( PP-LOC ( IN in ) ( NP ( NN stock ) ( NNS prices ) ) ) ) ( PP ( JJ such ) ( IN as ) ( PP-TMP ( PP ( IN on ) ( NP ( NNP Tuesday ) ) ) ( CC and ) ( PP ( IN on ) ( NP ( NNP Oct. ) ( CD 13 ) ( CC and ) ( CD 16 ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ has ) ( VP ( VBN increased ) ( NP ( NP ( NNS chances ) ) ( PP ( IN for ) ( NP ( NN market ) ( NNS crashes ) ) ) ) ) ) ) ) ) ) )

The Kemper Corp. unit and other critics complain that program trading causes wild swings in stock prices such as on Tuesday and on Oct. 13 and 16 and has increased chances for market crashes


( S ( PP-TMP ( IN Over ) ( NP ( DT the ) ( JJ past ) ( CD nine ) ( NNS months ) ) ) ( NP-SBJ ( NP ( JJ several ) ( NNS firms ) ) ( PP ( VBG including ) ( NP ( NP ( NN discount ) ( NN broker ) ( NNP Charles ) ( NNP Schwab ) ( CC & ) ( NNP Co. ) ) ( CC and ) ( NP ( NP ( NNP Sears ) ( NNP Roebuck ) ( CC & ) ( NNP Co. ) ( POS 's ) ) ( NNP Dean ) ( NNP Witter ) ( NNP Reynolds ) ( NNP Inc. ) ( NN unit ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN attacked ) ( NP ( NN program ) ( NN trading ) ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( JJ major ) ( NN market ) ( NN evil ) ) ) ) ) )

Over the past nine months several firms including discount broker Charles Schwab & Co. and Sears Roebuck & Co. 's Dean Witter Reynolds Inc. unit have attacked program trading as a major market evil


( S ( NP-SBJ ( JJ Several ) ( JJ big ) ( NNS securities ) ( NNS firms ) ) ( VP ( VBD backed ) ( PRT ( RP off ) ) ( PP-CLR ( IN from ) ( NP ( NN program ) ( NN trading ) ) ) ( PP-TMP ( NP ( DT a ) ( JJ few ) ( NNS months ) ) ( IN after ) ( NP ( DT the ) ( CD 1987 ) ( NN crash ) ) ) ) )

Several big securities firms backed off from program trading a few months after the 1987 crash


( S ( CC But ) ( NP-SBJ-1 ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ) ( S-ADV ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NNP Morgan ) ( NNP Stanley ) ( CC & ) ( NNP Co. ) ) ) ) ) ( VP ( VBD moved ) ( ADVP-DIR ( RB back ) ( RB in ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ) )

But most of them led by Morgan Stanley & Co. moved back in earlier this year


( S ( NP-SBJ ( NP ( DT The ) ( ADJP ( RBS most ) ( JJ volatile ) ) ( NN form ) ) ( PP ( IN of ) ( NP ( NN program ) ( NN trading ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN index ) ( NN arbitrage ) ) ( NP ( NP ( DT the ) ( JJ rapid-fire ) ( JJ computer-guided ) ( NN buying ) ( CC and ) ( NN selling ) ) ( PP ( IN of ) ( NP ( NNS stocks ) ) ) ( VP ( VBN offset ) ( PP ( IN with ) ( NP ( NP ( JJ opposite ) ( NNS trades ) ) ( PP ( IN in ) ( NP ( NN stock-index ) ( NNS futures ) ( CC and ) ( NNS options ) ) ) ) ) ) ) ) ) )

The most volatile form of program trading is index arbitrage the rapid-fire computer-guided buying and selling of stocks offset with opposite trades in stock-index futures and options


( S ( NP-SBJ ( DT The ) ( NN object ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB capture ) ( NP ( NP ( NNS profits ) ) ( PP ( IN from ) ( NP ( NP ( JJ fleeting ) ( NN price ) ( NNS discrepancies ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NNS futures ) ( CC and ) ( NNS options ) ) ( CC and ) ( NP ( NP ( DT the ) ( NNS stocks ) ) ( NP ( PRP themselves ) ) ) ) ) ) ) ) ) ) ) ) )

The object is to capture profits from fleeting price discrepancies between the futures and options and the stocks themselves


( S ( NP-SBJ ( NN Index ) ( NN arbitrage ) ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBZ has ) ( VP ( VBN accounted ) ( PP-CLR ( IN for ) ( NP ( NP ( IN about ) ( NN half ) ) ( PP ( IN of ) ( NP ( NP ( DT all ) ( NN program ) ( NN trading ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) ) ) ) ) )

Index arbitrage recently has accounted for about half of all program trading on the New York Stock Exchange


( S ( NP-TMP ( JJ Last ) ( NN month ) ) ( NP-SBJ ( NN program ) ( NN trading ) ) ( VP ( VBD accounted ) ( PP-CLR ( IN for ) ( NP ( NP ( NP ( QP ( CD 20.9 ) ( CD million ) ) ( NNS shares ) ) ( NP-ADV ( DT a ) ( NN day ) ) ) ( CC or ) ( NP ( NP ( DT a ) ( NN record ) ( CD 13.8 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ( POS 's ) ) ( JJ average ) ( JJ daily ) ( NN volume ) ) ) ) ) ) ) )

Last month program trading accounted for 20.9 million shares a day or a record 13.8 % of the Big Board 's average daily volume


( S ( S-TPC-1 ( PP-TMP ( IN On ) ( NP ( NNP Tuesday ) ( NN afternoon ) ) ) ( NP-SBJ ( NNP Kemper ) ) ( VP ( VBD told ) ( NP ( NP ( NNP Bear ) ( NNP Stearns ) ( CC & ) ( NNP Co. ) ) ( NP ( NP ( NNP General ) ( NNP Electric ) ( NNP Co. ) ( POS 's ) ) ( NNP Kidder ) ( NNP Peabody ) ( CC & ) ( NNP Co. ) ( NN unit ) ) ( NP ( NNP Morgan ) ( NNP Stanley ) ) ( CC and ) ( NP ( NNP Oppenheimer ) ( CC & ) ( NNP Co. ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( ADVP-TMP ( RB no ) ( RB longer ) ) ( VP ( VB do ) ( NP ( NN business ) ) ( PP-CLR ( IN with ) ( NP ( PRP them ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( PRP$ their ) ( NN commitment ) ) ( PP ( TO to ) ( NP ( NN index ) ( NN arbitrage ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNS officials ) ) ( PP-LOC ( IN inside ) ( CC and ) ( IN outside ) ( NP ( DT these ) ( NNS firms ) ) ) ) ( VP ( VBD confirmed ) ) )

On Tuesday afternoon Kemper told Bear Stearns & Co. General Electric Co. 's Kidder Peabody & Co. unit Morgan Stanley and Oppenheimer & Co. that it will no longer do business with them because of their commitment to index arbitrage officials inside and outside these firms confirmed


( S ( NP-SBJ-2 ( NNP Kemper ) ( NNS officials ) ) ( VP ( VP ( VBD declined ) ( S ( VP ( TO to ) ( VP ( VB identify ) ( NP ( DT the ) ( NNS firms ) ) ) ) ) ) ( CC but ) ( VP ( VP ( VBD acknowledged ) ( NP ( NP ( DT a ) ( JJ long-simmering ) ( NN dispute ) ) ( PP ( IN with ) ( NP ( CD four ) ( NNS securities ) ( NNS firms ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN list ) ) ( PP ( IN of ) ( NP ( NNS brokers ) ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB do ) ( NP ( NN business ) ) ( PP-CLR ( IN with ) ) ) ) ) ) ) ( VP ( MD may ) ( VP ( VB be ) ( VP ( VBN lengthened ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NNS months ) ( RB ahead ) ) ) ) ) ) ) ) ) ) ) )

Kemper officials declined to identify the firms but acknowledged a long-simmering dispute with four securities firms and said the list of brokers it wo n't do business with may be lengthened in the months ahead


( SINV ( S-2 ( NP-SBJ ( PRP We ) ) ( VP ( VBP 've ) ( VP ( VBN been ) ( ADJP-PRD ( VBN opposed ) ( PP ( TO to ) ( NP ( NN index ) ( NN arbitrage ) ) ) ) ( PP-TMP ( IN for ) ( NP ( DT a ) ( JJ long ) ( NN time ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Stephen ) ( NNP B. ) ( NNP Timbers ) ) ( NP ( NP ( JJ chief ) ( NN investment ) ( NN officer ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Kemper ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ manages ) ( NP ( NP ( QP ( CD 56 ) ( CD billion ) ) ) ( PP ( VBG including ) ( NP ( NP ( QP ( CD 8 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) ) ) )

We 've been opposed to index arbitrage for a long time said Stephen B. Timbers chief investment officer at Kemper which manages 56 billion including 8 billion of stocks


( S ( S ( NP-SBJ ( NN Index ) ( NN arbitrage ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB work ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ scares ) ( NP ( NP ( JJ natural ) ( NNS buyers ) ) ( PP ( IN of ) ( NP ( NN stock ) ) ) ) ) ) )

Index arbitrage does n't work and it scares natural buyers of stock


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Timbers ) ) ( VP ( VBD explained ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ 's ) ( RB not ) ( ADVP ( RB totally ) ) ( VP ( JJ convinced ) ( SBAR ( S ( NP-SBJ ( NN index ) ( NN arbitrage ) ) ( VP ( VBZ changes ) ( NP ( NP ( DT the ) ( JJ overall ) ( NN level ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN on ) ( NP ( DT an ) ( JJ intraday ) ( NN basis ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( NP ( JJ major ) ( NNS effects ) ) ) ) ) ) )

While Mr. Timbers explained he 's not totally convinced index arbitrage changes the overall level of the stock market he said that on an intraday basis it has major effects


( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP 've ) ( VP ( VP ( VBN talked ) ( PP-CLR ( TO to ) ( NP ( NP ( NNS proponents ) ) ( PP ( IN of ) ( NP ( NN index ) ( NN arbitrage ) ) ) ) ) ) ( CC and ) ( VP ( VBD told ) ( NP-1 ( PRP them ) ) ( S ( VP ( TO to ) ( VP ( VB cool ) ( NP ( PRP it ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP 're ) ( VP ( VBG ruining ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ) ) )

We 've talked to proponents of index arbitrage and told them to cool it because they 're ruining the market


( S ( S ( NP-SBJ ( PRP They ) ) ( VP ( VBD said ) ( ADJP ( RB Too ) ( JJ bad ) ) ) ) ( RB so ) ( S ( NP-SBJ ( PRP we ) ) ( ADVP ( RB finally ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP we ) ) ( VP ( VBP 're ) ( RB not ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB do ) ( NP ( NN business ) ) ( PP-CLR ( IN with ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) )

They said Too bad so we finally said we 're not going to do business with them


( S ( NP-SBJ ( NNP Kemper ) ) ( ADVP ( RB also ) ) ( VP ( VBD blasted ) ( NP-1 ( DT the ) ( NNP Big ) ( NNP Board ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG ignoring ) ( NP ( NP ( DT the ) ( NNS interests ) ) ( PP ( IN of ) ( NP ( ADJP ( JJ individual ) ( CC and ) ( JJ institutional ) ) ( NNS holders ) ) ) ) ) ) ) ) )

Kemper also blasted the Big Board for ignoring the interests of individual and institutional holders


( S ( S-TPC-2 ( NP-SBJ ( DT The ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ( VP ( VBZ has ) ( NP ( NP ( JJ vested ) ( NNS interests ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( JJ big ) ( NN member ) ( NNS securities ) ( NNS firms ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP cloud ) ( NP ( PRP$ its ) ( NN objectivity ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Timbers ) ) ( VP ( VBD said ) ) )

The New York Stock Exchange has vested interests in its big member securities firms that cloud its objectivity Mr. Timbers said


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB never ) ) ( VP ( VBN been ) ( ADJP-PRD ( JJ interested ) ( PP ( IN in ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP think ) ) ) ) ) ) ) ) )

It has never been interested in what we think


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NNP Big ) ( NNP Board ) ) ( ADVP ( RB also ) ) ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( JJ terrible ) ( NN communication ) ( NN problem ) ) ( PP ( IN with ) ( NP ( JJ individual ) ( NNS investors ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD added ) ) )

The Big Board also has a terrible communication problem with individual investors he added


( SINV ( S-TPC-1 ( NP-SBJ ( JJ Small ) ( NNS investors ) ) ( VP ( VBP perceive ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ big ) ( NNS operators ) ) ( VP ( VBP dominate ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Thomas ) ( NNP O'Hara ) ) ( NP ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP National ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNPS Investors ) ) ) ) ) ) ( CC and ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NN exchange ) ( POS 's ) ) ( NNP Individual ) ( NNPS Investors ) ( NNP Advisory ) ( NNP Committee ) ) ( VP ( VBD set ) ( PRT ( RP up ) ) ( PP-TMP ( IN after ) ( NP ( DT the ) ( CD 1987 ) ( NN crash ) ) ) ) ) ) ) ) ) )

Small investors perceive that big operators dominate the market said Thomas O'Hara chairman of the National Association of Investors and head of the exchange 's Individual Investors Advisory Committee set up after the 1987 crash


( S ( S-TPC-3 ( NP-SBJ ( NP ( DT The ) ( NN impression ) ) ( SBAR ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP 've ) ( VP ( VBN got ) ) ) ) ) ) ( VP ( VBZ is ) ( SBAR-PRD ( S ( S ( NP-SBJ-2 ( PRP they ) ) ( VP ( MD 'd ) ( VP ( VB love ) ( S ( VP ( TO to ) ( VP ( VB do ) ( PRT ( RP away ) ) ( PP-CLR ( IN with ) ( NP ( NP ( PRP it ) ) ( PRN ( NP ( NN program ) ( NN trading ) ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NP ( PRP they ) ) ( PRN ( NP ( DT the ) ( NN exchange ) ) ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB do ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

The impression I 've got is they 'd love to do away with it program trading but they the exchange ca n't do it he said


( S ( NP-SBJ ( NNP Big ) ( NNP Board ) ( NNP Chairman ) ( NNP John ) ( NNP J. ) ( NNP Phelan ) ) ( VP ( VBD said ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( JJ recent ) ( NN interview ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ has ) ( NP ( DT no ) ( NN inclination ) ( S ( VP ( TO to ) ( VP ( VB eliminate ) ( NP ( NN program ) ( NN trading ) ) ) ) ) ) ) ) ) ) )

Big Board Chairman John J. Phelan said in a recent interview that he has no inclination to eliminate program trading


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( NN volatility ) ) ( VP ( VBZ disturbs ) ( NP ( PRP him ) ) ) ) ) ( CC but ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NP ( PDT all ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN exchange ) ) ( VP ( MD can ) ( VP ( VB do ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VB slow ) ( PRT ( RP down ) ) ( NP ( DT the ) ( NN process ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG using ) ( NP ( PRP$ its ) ( NN circuit ) ( NNS breakers ) ( CC and ) ( NN shock ) ( NNS absorbers ) ) ) ) ) ) ) ) ) ) ) )

He said the market 's volatility disturbs him but that all the exchange can do is slow down the process by using its circuit breakers and shock absorbers


( S ( NP-SBJ ( NNP Mr. ) ( NNP Timbers ) ) ( VP ( VBD countered ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( JJ mere ) ( NN fact ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD put ) ( PRT ( RP in ) ) ( NP ( NN circuit ) ( NNS breakers ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT an ) ( NN admission ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NNS problems ) ) ) ) ) ) ) ) )

Mr. Timbers countered that the mere fact they put in circuit breakers is an admission of their problems


( S ( NP-SBJ ( NP ( NP ( NNP Morgan ) ( NNP Stanley ) ) ( CC and ) ( NP ( NNP Kidder ) ( NNP Peabody ) ) ) ( NP ( DT the ) ( CD two ) ( JJS biggest ) ( NN program ) ( NN trading ) ( NNS firms ) ) ) ( ADVP-MNR ( RB staunchly ) ) ( VP ( VBP defend ) ( NP ( PRP$ their ) ( NNS strategies ) ) ) )

Morgan Stanley and Kidder Peabody the two biggest program trading firms staunchly defend their strategies


( S ( S-TPC-3 ( NP-SBJ-2 ( PRP We ) ) ( VP ( VBP continue ) ( S ( VP ( TO to ) ( VP ( VB believe ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN position ) ) ( SBAR ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 've ) ( VP ( VBN taken ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ reasonable ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT a ) ( NNP Morgan ) ( NNP Stanley ) ( NN official ) ) ( VP ( VBD said ) ) )

We continue to believe the position we 've taken is reasonable a Morgan Stanley official said


( S ( S-TPC-2 ( S ( NP-SBJ ( PRP We ) ) ( VP ( MD would ) ( VP ( VB stop ) ( NP ( NN index ) ( NN arbitrage ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ is ) ( PP-PRD ( IN under ) ( NP ( NN stress ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP have ) ( VP ( ADVP-TMP ( RB recently ) ) ) ) ) ) ( NP-SBJ-3 ( PRP he ) ) ( VP ( VBD said ) ( S-ADV ( VP ( VBG citing ) ( NP ( NP ( NNP Oct. ) ( CD 13 ) ) ( CC and ) ( NP ( RB earlier ) ( DT this ) ( NN week ) ) ) ) ) ) )

We would stop index arbitrage when the market is under stress and we have recently he said citing Oct. 13 and earlier this week


( S ( NP-SBJ ( NP ( NNP Michael ) ( NNP Carpenter ) ) ( NP ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( JJ chief ) ( NN executive ) ( NN officer ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Kidder ) ( NNP Peabody ) ) ) ) ) ( VP ( VBD said ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( JJ recent ) ( NN interview ) ) ) ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB think ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NN index ) ( NN arbitrage ) ) ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( JJ negative ) ( NN impact ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN market ) ) ( PP ( IN as ) ( NP ( DT a ) ( NN whole ) ) ) ) ) ) ) ) ) ) ) ) ) )

Michael Carpenter president and chief executive officer at Kidder Peabody said in a recent interview We do n't think that index arbitrage has a negative impact on the market as a whole


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( NP ( NNP Lawrence ) ( NNP Eckenfelder ) ) ( NP ( NP ( DT a ) ( NNS securities ) ( NN industry ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP Prudential-Bache ) ( NNPS Securities ) ( NNP Inc. ) ) ) ) ) ) ) ( NP-SBJ ( NNP Kemper ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJ first ) ( NN firm ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( DT a ) ( JJ major ) ( NN statement ) ) ( PP-CLR ( IN with ) ( NP ( NN program ) ( NN trading ) ) ) ) ) ) ) ) ) )

According to Lawrence Eckenfelder a securities industry analyst at Prudential-Bache Securities Inc. Kemper is the first firm to make a major statement with program trading


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD added ) ( SBAR ( IN that ) ( S ( S-NOM-SBJ-1 ( VP ( VBG having ) ( S ( NP-SBJ ( RB just ) ( CD one ) ( NN firm ) ) ( VP ( VB do ) ( NP ( DT this ) ) ) ) ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB mean ) ( NP ( NP ( DT a ) ( NN hill ) ) ( PP ( IN of ) ( NP ( NNS beans ) ) ) ) ) ) ) ) ) ) ) ) )

He added that having just one firm do this is n't going to mean a hill of beans


( S ( CC But ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT this ) ) ( VP ( VBZ prompts ) ( S ( NP-SBJ ( NNS others ) ) ( VP ( TO to ) ( VP ( VB consider ) ( NP ( DT the ) ( JJ same ) ( NN thing ) ) ) ) ) ) ) ) ( ADVP ( RB then ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD may ) ( VP ( VB become ) ( ADJP-PRD ( ADVP ( RB much ) ( RBR more ) ) ( JJ important ) ) ) ) )

But if this prompts others to consider the same thing then it may become much more important


( S ( NP-SBJ-1 ( NP ( NNP Amdahl ) ( NNP Corp. ) ) ( NP ( NP ( DT a ) ( NN maker ) ) ( PP ( IN of ) ( NP ( NN mainframe ) ( NNS computers ) ) ) ) ) ( VP ( VBD reported ) ( NP ( NP ( DT a ) ( JJ sharp ) ( NN decline ) ) ( PP ( IN in ) ( NP ( JJ net ) ( NN income ) ) ) ( PP-TMP ( IN for ) ( NP ( PRP$ its ) ( JJ third ) ( NN quarter ) ) ) ) ( S-ADV ( VP ( VBG citing ) ( NP ( NP ( NP ( NN pricecutting ) ) ( PP ( IN by ) ( NP ( NNS competitors ) ) ) ) ( CC and ) ( NP ( NP ( JJ adverse ) ( NNS effects ) ) ( PP ( IN from ) ( NP ( DT a ) ( JJ strong ) ( NNP U.S. ) ( NN dollar ) ) ) ) ) ) ) ) )

Amdahl Corp. a maker of mainframe computers reported a sharp decline in net income for its third quarter citing pricecutting by competitors and adverse effects from a strong U.S. dollar


( S ( NP-SBJ ( JJ Net ) ( NN income ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 37 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 32.9 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 30 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 52.2 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 48 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ year-ago ) ( NN period ) ) ) ) )

Net income fell 37 % to 32.9 million or 30 cents a share from 52.2 million or 48 cents a share in the year-ago period


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 15 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 534.3 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 464.7 ) ( CD million ) ) ) ) ) )

Revenue rose 15 % to 534.3 million from 464.7 million


( S ( NP-SBJ ( NP ( NNP Amdahl ) ( POS 's ) ) ( NNS results ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( RB somewhat ) ( JJR worse ) ) ( SBAR ( IN than ) ( FRAG ( VP ( VBN expected ) ) ) ) ) ) )

Amdahl 's results were somewhat worse than expected


( S ( NP-SBJ ( NP ( NNP Jay ) ( NNP Stevens ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP ( IN with ) ( NP ( NNP Dean ) ( NNP Witter ) ( NNP Reynolds ) ) ) ) ) ( VP ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD expected ) ( S ( NP-SBJ ( DT the ) ( NAC-LOC ( NNP Sunnyvale ) ( NNP Calif. ) ) ( NN company ) ) ( VP ( TO to ) ( VP ( VB earn ) ( NP ( NP ( CD 35 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( NN quarter ) ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( JJR weaker ) ( NN profit ) ) ( VP ( VBD was ) ( ADVP ( RB partly ) ) ( NP-PRD ( NP ( DT the ) ( NN result ) ) ( PP ( IN of ) ( NP ( NP ( VBN increased ) ( NN competition ) ) ( PP ( IN from ) ( NP ( NP ( NNP International ) ( NNP Business ) ( NNPS Machines ) ( NNP Corp. ) ) ( NP ( NP ( NP ( NNP Amdahl ) ( POS 's ) ) ( JJ principal ) ( NN competitor ) ) ( PP ( IN for ) ( NP ( NN mainframe ) ( NNS sales ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Jay Stevens an analyst with Dean Witter Reynolds said he expected the Sunnyvale Calif. company to earn 35 cents a share for the quarter and said the firm 's weaker profit was partly the result of increased competition from International Business Machines Corp. Amdahl 's principal competitor for mainframe sales


( S ( NP-SBJ ( NNP Ryder ) ( NNP System ) ( NNP Inc. ) ) ( VP ( VBD posted ) ( NP ( NP ( DT a ) ( JJ third-quarter ) ( JJ net ) ( NN loss ) ) ( PP ( IN of ) ( NP ( QP ( CD 27.6 ) ( CD million ) ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( DT an ) ( JJ expected ) ( ADJP ( QP ( CD 57 ) ( CD million ) ) ) ( JJ after-tax ) ( NN charge ) ) ( CC and ) ( NP ( NP ( JJ continued ) ( NN weakness ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ truck-rental ) ( NN business ) ) ) ) ) ) ) )

Ryder System Inc. posted a third-quarter net loss of 27.6 million because of an expected 57 million after-tax charge and continued weakness in the company 's truck-rental business


( S ( NP-SBJ ( NP ( DT The ) ( NN loss ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( CD 38 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ( VP ( VP ( VBZ is ) ( NP-PRD ( NP ( NP ( DT the ) ( NN transportation ) ( NNS services ) ( NN concern ) ( POS 's ) ) ( JJ first ) ( JJ quarterly ) ( NN setback ) ) ( PP ( IN in ) ( NP ( NP ( JJR more ) ) ( PP ( IN than ) ( NP ( DT a ) ( NN decade ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ compares ) ( PP-CLR ( IN with ) ( NP ( NP ( JJ net ) ( NN income ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 55.3 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 68 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ year-ago ) ( NN period ) ) ) ) ) ) ) )

The loss which is 38 cents a share is the transportation services concern 's first quarterly setback in more than a decade and compares with net income of 55.3 million or 68 cents a share in the year-ago period


( S ( NP-SBJ ( NP ( DT The ) ( JJ previous ) ( NN year ) ( POS 's ) ) ( JJ third ) ( NN quarter ) ) ( VP ( VBD included ) ( NP ( NP ( NNS gains ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NN aircraft ) ) ) ( PP ( IN by ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNP Aviation ) ( NNP Leasing ) ( CC & ) ( NNPS Services ) ( NNP Division ) ) ) ) ) ) ) )

The previous year 's third quarter included gains on the sale of aircraft by the company 's Aviation Leasing & Services Division


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ flat ) ) ( PP ( IN at ) ( NP ( QP ( CD 1.3 ) ( CD billion ) ) ) ) ) )

Revenue was flat at 1.3 billion


( S ( NP-SBJ ( NP ( NP ( DT The ) ( JJS latest ) ( NN quarter ) ( POS 's ) ) ( JJ after-tax ) ( NN charge ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( CD 75 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ related ) ( PP ( TO to ) ( NP ( NP ( NP ( NNS adjustments ) ) ( PP ( TO to ) ( NP ( NNS reserves ) ) ) ( PP ( IN for ) ( NP ( NP ( NNS workers ) ( POS ' ) ) ( NN compensation ) ( NNS claims ) ) ) ) ( NP ( NP ( NNS reductions ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NN vehicle ) ( NNS fleets ) ) ( NP ( NN staff ) ) ( CC and ) ( NP ( NNS facilities ) ) ) ) ) ( CC and ) ( NP ( NP ( NNS writedowns ) ) ( PP ( IN of ) ( NP ( NNS assets ) ) ) ) ) ) ) ) )

The latest quarter 's after-tax charge which is 75 cents a share was related to adjustments to reserves for workers ' compensation claims reductions in vehicle fleets staff and facilities and writedowns of assets


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( NNP Ryder ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB break ) ( PRT ( RP out ) ) ( NP ( DT the ) ( NN charge ) ) ) ) ) ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBD estimated ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN majority ) ) ( PP ( IN of ) ( NP ( DT the ) ( QP ( CD 57 ) ( CD million ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN linked ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( NNS workers ) ( POS ' ) ) ( NN compensation ) ( NNS reserves ) ) ( CC and ) ( NP ( NP ( JJ anticipated ) ( NNS losses ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN disposal ) ) ( PP ( IN of ) ( NP ( NNS trucks ) ) ) ) ) ) ) ) ) ) ) ) ) )

Although Ryder did n't break out the charge analysts estimated that the majority of the 57 million was linked to workers ' compensation reserves and anticipated losses on the disposal of trucks


( S ( NP-SBJ ( JJ Many ) ( NNS analysts ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD were ) ( RB n't ) ( ADJP-PRD ( JJ surprised ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( NNS problems ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ many ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Ryder ) ( POS 's ) ) ( NNS lines ) ) ( PP ( IN of ) ( NP ( NN business ) ) ) ) ) ) ) ) ( VP ( VBD continued ) ( S ( VP ( TO to ) ( VP ( VB plague ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ) )

Many analysts said they were n't surprised that problems in many of Ryder 's lines of business continued to plague the company


( SINV ( S-TPC-2 ( NP-SBJ ( PRP It ) ) ( ADVP-EXT ( RB pretty ) ( RB much ) ) ( VP ( VBZ confirms ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBG expecting ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Anthony ) ( NNP Hatch ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP PaineWebber ) ( NNP Inc ) ) ) ) ) )

It pretty much confirms what we had been expecting said Anthony Hatch an analyst at PaineWebber Inc


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( JJ composite ) ( NN trading ) ) ) ( NP-TMP ( NN yesterday ) ) ( NP-SBJ ( NNP Ryder ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( CD 22.25 ) ) ) ( ADVP-CLR ( RB down ) ( NP ( CD 37.5 ) ( NNS cents ) ) ) ) )

In New York Stock Exchange composite trading yesterday Ryder closed at 22.25 down 37.5 cents


( S ( NP-SBJ ( NP ( NNP M. ) ( NNP Anthony ) ( NNP Burns ) ) ( NP ( NP ( NNP Ryder ) ( POS 's ) ) ( NX ( NX ( NN chairman ) ) ( CC and ) ( NX ( JJ chief ) ( NN executive ) ( NN officer ) ) ) ) ) ( VP ( VBD said ) ( S ( NP-SBJ-1 ( PRP We ) ) ( VP ( VBP 're ) ( ADVP ( RB constantly ) ) ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB find ) ( NP ( NP ( NNS ways ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB regain ) ( NP ( DT the ) ( NNS earnings ) ( NN momentum ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

M. Anthony Burns Ryder 's chairman and chief executive officer said We 're constantly trying to find ways to regain the earnings momentum


( S ( CC But ) ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( ADVP ( RB still ) ) ( PP-PRD ( IN at ) ( NP ( NP ( DT the ) ( VBG beginning ) ( NNS stages ) ) ( PP ( IN of ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( DT these ) ( NNS changes ) ) ) ) ) ) ) ) )

But we 're still at the beginning stages of some of these changes


( S ( NP-SBJ ( PRP He ) ) ( VP ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( JJ fourth ) ( NN quarter ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ challenging ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD maintained ) ( NP ( PRP$ his ) ( JJ conservative ) ( NN forecast ) ( SBAR ( IN that ) ( S ( NP-SBJ ( CD 1990 ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( NN barn ) ( NN burner ) ) ) ) ) ) ) ) ) )

He said the fourth quarter will be challenging and maintained his conservative forecast that 1990 wo n't be a barn burner


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( CD nine ) ( NNS months ) ) ) ( NP-SBJ ( JJ net ) ( NN income ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 79 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 31.1 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 33 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 149.3 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.82 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RB earlier ) ) ) ) )

In the nine months net income fell 79 % to 31.1 million or 33 cents a share from 149.3 million or 1.82 a share a year earlier


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD rose ) ( ADVP-EXT ( RB slightly ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 3.8 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 3.7 ) ( CD billion ) ) ) ) ) )

Revenue rose slightly to 3.8 billion from 3.7 billion


( S ( NP-SBJ ( NP ( DT The ) ( JJS hottest ) ( NN rivalry ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN computer ) ( NN industry ) ) ) ) ( VP ( VBD intensified ) ( ADVP-MNR ( RB sharply ) ) ( NP-TMP ( RB yesterday ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ-1 ( NNP Digital ) ( NNP Equipment ) ( NNP Corp. ) ) ( VP ( VBD announced ) ( NP ( NP ( PRP$ its ) ( JJ first ) ( NN line ) ) ( PP ( IN of ) ( NP ( NN mainframe ) ( NNS computers ) ) ) ) ( S-ADV ( VP ( VBG targeting ) ( NP ( NP ( NNP International ) ( NNP Business ) ( NNPS Machines ) ( NNP Corp. ) ( POS 's ) ) ( JJS largest ) ( NN market ) ) ) ) ) ) ) ) )

The hottest rivalry in the computer industry intensified sharply yesterday as Digital Equipment Corp. announced its first line of mainframe computers targeting International Business Machines Corp. 's largest market


( S ( NP-SBJ-1 ( NNP IBM ) ) ( VP ( VBD fired ) ( PRT ( RP back ) ) ( PP ( IN with ) ( NP ( NP ( JJ new ) ( NNS mainframes ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ own ) ) ) ) ) ( S-ADV ( VP ( VBG extending ) ( NP ( DT the ) ( JJ long-dominant ) ( CD 3090 ) ( NN line ) ) ( PP ( IN with ) ( NP ( DT a ) ( ADJP ( QP ( CD 7 ) ( NN % ) ( TO to ) ( CD 14 ) ( NN % ) ) ) ( NN power ) ( NN boost ) ) ) ) ) ) )

IBM fired back with new mainframes of its own extending the long-dominant 3090 line with a 7 % to 14 % power boost


( S ( PP-TMP ( IN Up ) ( PP ( TO to ) ( ADVP ( RB now ) ) ) ) ( NP-SBJ-1 ( NP ( DT the ) ( JJ intense ) ( NN competition ) ) ( PP ( IN between ) ( NP ( NNP IBM ) ( CC and ) ( NNP Digital ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN confined ) ( PP-CLR ( ADVP ( RB largely ) ) ( TO to ) ( NP ( NP ( NP ( DT the ) ( JJ broad ) ( NN midrange ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN computer ) ( NN market ) ) ) ) ( SBAR-LOC ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ-3 ( NNP Digital ) ) ( VP ( VBD sought ) ( S ( VP ( TO to ) ( VP ( VB exploit ) ( NP ( NP ( NP ( NNP IBM ) ( POS 's ) ) ( NNS weaknesses ) ) ( PP-LOC ( IN in ) ( NP ( NN networking ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Up to now the intense competition between IBM and Digital has been confined largely to the broad midrange of the computer market where Digital sought to exploit IBM 's weaknesses in networking


( S ( CC But ) ( NP-SBJ ( NP ( NP ( NNP Digital ) ( POS 's ) ) ( NN move ) ) ( PP ( IN into ) ( NP ( NNS mainframes ) ) ) ) ( VP ( MD will ) ( VP ( VB target ) ( NP ( NP ( NP ( NNP IBM ) ( POS 's ) ) ( NN home ) ( NN turf ) ) ( SBAR-LOC ( WHADVP-1 ( WRB where ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( JJ commanding ) ( ADJP ( CD 70 ) ( NN % ) ) ( NN share ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ) ) ) )

But Digital 's move into mainframes will target IBM 's home turf where it has a commanding 70 % share of the market


( S ( NP-SBJ ( NP ( NNP Digital ) ) ( NP-LOC ( NNP Maynard ) ( NNP Mass. ) ) ) ( VP ( VBD insisted ) ( NP-TMP ( NN yesterday ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP$ its ) ( NN marketing ) ( NN focus ) ) ( VP ( MD would ) ( VP ( VB differ ) ( ADVP-EXT ( RB sharply ) ) ( PP-CLR ( IN from ) ( NP ( NNP IBM ) ( POS 's ) ) ) ) ) ) ) ) )

Digital Maynard Mass. insisted yesterday that its marketing focus would differ sharply from IBM 's


( SINV ( S-TPC-1 ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( RB not ) ( NP-PRD ( NP ( PRP$ your ) ( NN father ) ( POS 's ) ) ( NN mainframe ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Allan ) ( NNP McGuire ) ) ( NP ( DT a ) ( NNP Digital ) ( NN spokesman ) ) ) )

This is not your father 's mainframe said Allan McGuire a Digital spokesman


( S ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( DT a ) ( JJ whole ) ( JJ new ) ( NN generation ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

It 's a whole new generation he said


( S ( NP-SBJ ( NP ( NNP IBM ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ gets ) ( NP ( NP ( QP ( IN about ) ( NN half ) ) ( PRP$ its ) ( NN revenue ) ) ( CC and ) ( NP ( QP ( JJR more ) ( IN than ) ( NN half ) ) ( PRP$ its ) ( NN profit ) ) ) ( PP-CLR ( IN from ) ( NP ( NNS mainframes ) ) ) ) ) ) ) ( ADVP ( RB also ) ) ( VP ( VBD announced ) ( NP ( NP ( VBN upgraded ) ( NN operating ) ( NN system ) ( NN software ) ) ( SBAR ( WHNP-2 ( IN that ) ) ( S ( ADVP ( RB together ) ( PP ( IN with ) ( NP ( DT the ) ( JJ new ) ( NN hardware ) ) ) ) ( VP ( VBZ lets ) ( S ( NP-SBJ ( NNS customers ) ) ( VP ( VB do ) ( NP ( JJ so-called ) ( NN batch ) ( NN processing ) ) ( ADVP-MNR ( NP-ADV ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD 60 ) ) ( NN % ) ) ( RBR faster ) ) ) ) ) ) ) ) ) )

IBM which gets about half its revenue and more than half its profit from mainframes also announced upgraded operating system software that together with the new hardware lets customers do so-called batch processing as much as 60 % faster


( S ( NP-SBJ ( NN Batch ) ( NN processing ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJ high-volume ) ( JJ single-job ) ( NN data ) ( NN processing ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( RBS most ) ( NNS mainframes ) ) ( ADVP ( RB typically ) ) ( VP ( VBP chug ) ( PP-CLR ( RB through ) ) ( PP-TMP ( IN at ) ( NP ( NN night ) ) ) ) ) ) ( PP ( JJ such ) ( IN as ) ( S-NOM ( VP ( VBG updating ) ( NP ( NNS accounts ) ) ( PP-LOC ( IN at ) ( NP ( NNS banks ) ) ) ) ) ) ) ) )

Batch processing is the high-volume single-job data processing that most mainframes typically chug through at night such as updating accounts at banks


( S ( NP-SBJ ( NNP IBM ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( CD 16 ) ( JJ new ) ( NNP J ) ( CC and ) ( NNP JH ) ( NNS models ) ) ( VP ( MD will ) ( ADVP ( RB generally ) ) ( VP ( VB be ) ( ADJP-PRD ( JJ available ) ) ( ADVP-TMP ( RB immediately ) ) ( SBAR-ADV ( IN though ) ( S ( NP-SBJ ( CD three ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB ship ) ( PP-TMP ( IN until ) ( NP ( NP ( QP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( PP ( IN of ) ( NP ( JJ next ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

IBM said the 16 new J and JH models will generally be available immediately though three wo n't ship until the third quarter of next year


( S ( NP-SBJ ( NP ( NP ( NNS Prices ) ) ( PP ( IN on ) ( NP ( DT the ) ( JJR larger ) ( NNS models ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP range ) ( ADVP ( ADVP ( RB as ) ( JJ high ) ) ( PP ( IN as ) ( NP ( QP ( CD 13 ) ( CD million ) ) ) ) ) ) ) ) ) ( ADVP ( RB generally ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB change ) ) ) )

Prices on the larger models which range as high as 13 million generally wo n't change


( S ( NP-SBJ ( NP ( JJ Small ) ( NNS models ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NN performance ) ) ( S ( VP ( VBD increased ) ( NP-ADV ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD 46 ) ) ( NN % ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB carry ) ( NP ( JJR higher ) ( NNS prices ) ) ) ) )

Small models whose performance increased as much as 46 % will carry higher prices


( S ( NP-SBJ ( NP ( NNS Upgrades ) ) ( PP ( TO to ) ( NP ( JJR bigger ) ( NNS models ) ) ) ) ( ADVP ( RB also ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJR costlier ) ) ) ) )

Upgrades to bigger models also will be costlier


( S ( NP-SBJ-1 ( NP ( NP ( NNP Digital ) ( POS 's ) ) ( NNP VAX ) ( CD 9000 ) ( NNS mainframes ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD claimed ) ( SBAR ( S ( VP ( VBD were ) ( PP-PRD ( IN among ) ( NP ( NP ( DT the ) ( JJS fastest ) ) ( ADJP ( JJ available ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD were ) ( VP ( VBN priced ) ( PP ( PP ( IN from ) ( NP ( QP ( CD 1.2 ) ( CD million ) ) ) ) ( PP ( TO to ) ( NP ( QP ( CD 3.9 ) ( CD million ) ) ) ) ) ( ADVP ( ADVP ( RB sharply ) ( JJR lower ) ) ( PP ( IN than ) ( NP ( NP ( NNP IBM ) ( NNS models ) ) ( PP ( IN of ) ( NP ( JJ comparable ) ( NN power ) ) ) ) ) ) ) ) )

Digital 's VAX 9000 mainframes which it claimed were among the fastest available were priced from 1.2 million to 3.9 million sharply lower than IBM models of comparable power


( S ( NP-SBJ ( DT The ) ( JJ first ) ( NNS models ) ) ( VP ( MD will ) ( VP ( VB ship ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN spring ) ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( DT the ) ( JJS largest ) ) ( VP ( VBG following ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN fall ) ) ) ) ) ) ) ) )

The first models will ship in the spring with the largest following in the fall


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ disappointed ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNP Digital ) ( POS 's ) ) ( JJ new ) ( NN line ) ) ( ADVP ( RB apparently ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB contribute ) ( NP ( RB much ) ) ( PP-CLR ( TO to ) ( NP ( NNS earnings ) ) ) ( PP-TMP ( IN before ) ( NP ( NP ( DT the ) ( JJ next ) ( JJ fiscal ) ( NN year ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ begins ) ( PP-TMP ( IN in ) ( NP ( NNP July ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Analysts were disappointed that Digital 's new line apparently wo n't contribute much to earnings before the next fiscal year which begins in July


( S ( NP-SBJ ( NP ( NNP Jay ) ( NNP Stevens ) ) ( PP ( IN of ) ( NP ( NNP Dean ) ( NNP Witter ) ( NNP Reynolds ) ( NNP Inc. ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD may ) ( VP ( VB cut ) ( NP ( NP ( PRP$ his ) ( NNS earnings ) ( NN estimate ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ current ) ( JJ fiscal ) ( NN year ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD had ) ( VP ( VBN expected ) ( NP ( ADVP ( IN at ) ( JJS least ) ) ( DT some ) ( JJ mainframe ) ( NN profit ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ) ) ) ) ) ) )

Jay Stevens of Dean Witter Reynolds Inc. said he may cut his earnings estimate for the current fiscal year because he had expected at least some mainframe profit this year


( S ( CC But ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD added ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBD expected ) ( S ( VP ( TO to ) ( VP ( VB raise ) ( NP ( NP ( PRP$ his ) ( NN estimate ) ) ( PP ( IN for ) ( NP ( JJ fiscal ) ( CD 1991 ) ) ) ) ( PP-TMP ( IN at ) ( NP ( DT the ) ( JJ same ) ( NN time ) ) ) ) ) ) ) ) ) ) )

But he added that he expected to raise his estimate for fiscal 1991 at the same time


( S ( PP-TMP ( IN After ) ( NP ( DT the ) ( NN announcement ) ) ) ( NP-TMP ( NN yesterday ) ) ( NP-SBJ-1 ( NNP Digital ) ( NNS shares ) ) ( VP ( VBD gained ) ( NP ( CD 1.25 ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB close ) ( PP-LOC-CLR ( IN at ) ( NP ( CD 89.875 ) ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( JJ composite ) ( NN trading ) ) ) ) )

After the announcement yesterday Digital shares gained 1.25 to close at 89.875 in New York Stock Exchange composite trading


( S ( NP-SBJ ( NNP IBM ) ( NNS shares ) ) ( VP ( VBD closed ) ( PP-LOC-CLR ( IN at ) ( NP ( NP ( CD 103 ) ) ( ADVP ( RB down ) ( NP ( CD 50 ) ( NNS cents ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Big ) ( NNP Board ) ( NN trading ) ) ) ) )

IBM shares closed at 103 down 50 cents in Big Board trading


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBP have ) ( VP ( VBN predicted ) ( NP ( NP ( JJ strong ) ( JJ pent-up ) ( NN demand ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ new ) ( NN line ) ) ) ( PP ( IN among ) ( NP ( NP ( NNP Digital ) ( POS 's ) ) ( NNS customers ) ) ) ) ) ) )

Analysts have predicted strong pent-up demand for the new line among Digital 's customers


( S ( NP-SBJ ( JJ Large ) ( NNP Digital ) ( NNS buyers ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( DT the ) ( JJ new ) ( NNP VAX ) ) ( VP ( MD will ) ( VP ( VB let ) ( S ( NP-SBJ ( PRP them ) ) ( VP ( VB stay ) ( PP-CLR ( IN with ) ( NP ( NNP Digital ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP need ) ( NP ( NP ( DT the ) ( NN power ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN mainframe ) ) ) ) ) ) ) ( PP ( RB instead ) ( IN of ) ( S-NOM ( VP ( VBG turning ) ( PP-DIR ( TO to ) ( NP ( NNP IBM ) ) ) ) ) ) ) ) ) ) ) ) ) )

Large Digital buyers say the new VAX will let them stay with Digital when they need the power of a mainframe instead of turning to IBM


( SINV ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( VBP 'm ) ( ADJP-PRD ( JJ convinced ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT a ) ( JJ huge ) ( NN market ) ) ( PP ( IN for ) ( NP ( DT this ) ( NN machine ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Stephen ) ( NNP Smith ) ) ( PP ( IN of ) ( NP ( NNP PaineWebber ) ( NNP Inc ) ) ) ) )

I 'm convinced there 's a huge market for this machine said Stephen Smith of PaineWebber Inc


( S ( NP-SBJ-1 ( NNP Digital ) ) ( ADVP ( RB also ) ) ( VP ( VBZ plans ) ( S ( VP ( TO to ) ( VP ( VB compete ) ( ADVP-MNR ( RB fiercely ) ) ( PP-CLR ( IN with ) ( NP ( NNP IBM ) ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( NP ( DT the ) ( NN giant ) ( POS 's ) ) ( NNS customers ) ) ( VP ( VBP are ) ( VP ( VBG computerizing ) ( NP ( NP ( JJ new ) ( NNS aspects ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NNS businesses ) ) ) ) ) ) ) ) ) ) ) ) )

Digital also plans to compete fiercely with IBM when the giant 's customers are computerizing new aspects of their businesses


( S ( NP-SBJ-2 ( NNP Digital ) ) ( ADVP ( RB however ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB expect ) ( S ( VP ( TO to ) ( VP ( VB displace ) ( NP ( NP ( NNP IBM ) ( NNS mainframes ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP are ) ( ADVP ( RB already ) ) ( VP ( VBN installed ) ( PP-LOC ( IN at ) ( NP ( JJ big ) ( NNS companies ) ) ) ) ) ) ) ) ) ) ) ) ) )

Digital however does n't expect to displace IBM mainframes that are already installed at big companies


( S ( PP ( IN In ) ( NP ( NP ( NN addition ) ) ( PP ( TO to ) ( NP ( JJ commercial ) ( NNS markets ) ) ) ) ) ( NP-SBJ ( NP ( NNP Digital ) ( POS 's ) ) ( JJ new ) ( NN line ) ) ( VP ( VBZ targets ) ( NP ( NP ( DT the ) ( JJ low ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( UCP ( NN engineering ) ( CC and ) ( JJ scientific ) ) ( NN supercomputer ) ( NN market ) ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( VP ( VBN packaged ) ( PP ( IN with ) ( NP ( NP ( DT an ) ( JJ optional ) ( NN supercharger ) ) ( VP ( VBN known ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( NN vector ) ( NN processor ) ) ) ) ) ) ) ) ) ) ) )

In addition to commercial markets Digital 's new line targets the low end of the engineering and scientific supercomputer market when it 's packaged with an optional supercharger known as a vector processor


( S ( NP-SBJ ( NP ( NP ( NNP Digital ) ( POS 's ) ) ( NN push ) ) ( PP ( IN into ) ( NP ( NNS mainframes ) ) ) ) ( VP ( VBZ comes ) ( PP-TMP ( IN at ) ( NP ( NP ( DT a ) ( NN time ) ) ( SBAR ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ ( PRP$ its ) ( NN mainstay ) ( NN minicomputer ) ( NN line ) ) ( VP ( VBZ is ) ( PP-PRD ( IN under ) ( NP ( NP ( VBG growing ) ( NN pressure ) ) ( PP ( IN from ) ( NP ( NP ( JJR smaller ) ( JJ personal ) ( NNS computers ) ) ( CC and ) ( NP ( NP ( NNS workstations ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP operate ) ( PP ( PP ( IN on ) ( NP ( JJ standard ) ( VBG operating ) ( NNS systems ) ) ) ( CONJP ( RB rather ) ( IN than ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( JJ proprietary ) ( NNS systems ) ) ( SBAR ( WHNP-2 ( IN that ) ) ( S ( NP-SBJ ( JJR older ) ( NNS minicomputers ) ) ( VP ( VBP use ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Digital 's push into mainframes comes at a time when its mainstay minicomputer line is under growing pressure from smaller personal computers and workstations that operate on standard operating systems rather than on the proprietary systems that older minicomputers use


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( NNP Digital ) ) ( VP ( VBZ has ) ( VP ( VBN staked ) ( PRT ( RP out ) ) ( NP ( NP ( DT a ) ( JJ major ) ( NN presence ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( VBG booming ) ( NN workstation ) ( NN market ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NN profit ) ( NNS margins ) ) ( PP-LOC ( IN in ) ( NP ( DT that ) ( NN market ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADJP ( RB much ) ( JJR slimmer ) ) ( PP ( IN than ) ( PP ( IN for ) ( NP ( NNS mainframes ) ) ) ) ) ) )

Although Digital has staked out a major presence in the booming workstation market profit margins in that market are much slimmer than for mainframes


( S ( NP-SBJ ( DT The ) ( JJ slow-growing ) ( NN mainframe ) ( NN market ) ) ( ADVP ( RB also ) ) ( VP ( VBZ has ) ( VP ( VBN shown ) ( NP ( NP ( JJ new ) ( NNS signs ) ) ( PP ( IN of ) ( NP ( NN life ) ) ) ) ( ADVP-TMP ( RB lately ) ) ) ) )

The slow-growing mainframe market also has shown new signs of life lately


( S ( NP-SBJ ( NP ( NNP IBM ) ( POS 's ) ) ( NN mainframe ) ( NNS sales ) ) ( VP ( VBP have ) ( VP ( VBN held ) ( PRT ( RP up ) ) ( ADVP ( ADVP ( RBR better ) ) ( SBAR ( IN than ) ( FRAG ( VP ( VBN expected ) ) ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( NNS analysts ) ) ( VP ( VBG estimating ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( VP ( VBN risen ) ( NP-ADV ( QP ( CD 10 ) ( NN % ) ( TO to ) ( CD 12 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) )

IBM 's mainframe sales have held up better than expected this year with analysts estimating they have risen 10 % to 12 %


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( NN Demand ) ) ( PP ( IN for ) ( NP ( DT these ) ( NNS systems ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( ADJP-PRD ( RB very ) ( RB very ) ( JJ strong ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Bill ) ( NNP Grabe ) ) ( NP ( DT a ) ( JJ senior ) ( NNP IBM ) ( NN marketing ) ( NN executive ) ) ) )

Demand for these systems has been very very strong said Bill Grabe a senior IBM marketing executive


( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP have ) ( NP ( NP ( DT a ) ( JJ good ) ( JJ strong ) ( NN backlog ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ) ) ( PP ( ADVP ( RB even ) ) ( IN without ) ( NP ( NP ( DT the ) ( NNS systems ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBD were ) ( VP ( VBN announced ) ( NP-TMP ( NN yesterday ) ) ) ) ) ) ) ) ) )

We have a good strong backlog for the fourth quarter even without the systems that were announced yesterday


( S ( CC But ) ( S ( NP-SBJ ( DT the ) ( CD 3090 ) ( NN line ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( NP ( QP ( RB nearly ) ( CD five ) ) ( NNS years ) ) ( JJ old ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBG getting ) ( ADVP-PRD ( RP up ) ( RB there ) ) ( PP ( IN in ) ( NP ( NN mainframe ) ( NNS years ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( PRP$ its ) ( NN growth ) ) ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB slow ) ( PP-TMP ( IN in ) ( NP ( CD 1990 ) ) ) ) ) ) ) ) ) )

But the 3090 line is nearly five years old which is getting up there in mainframe years and its growth is expected to slow in 1990


( S ( NP-SBJ ( NP ( NNP IBM ) ) ( NP-LOC ( NNP Armonk ) ( NNP N.Y. ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD wanted ) ( S ( VP ( TO to ) ( VP ( VB bring ) ( PRT ( RP out ) ) ( NP ( DT the ) ( NNS mainframes ) ) ( ADVP-TMP ( RB as ) ( RB soon ) ( SBAR ( IN as ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD could ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB spark ) ( NP ( NP ( ADJP ( IN as ) ( JJ many ) ) ( NNS sales ) ) ( PP ( IN as ) ( ADJP ( JJ possible ) ) ) ) ( PP-TMP ( IN by ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

IBM Armonk N.Y. said it wanted to bring out the mainframes as soon as it could to spark as many sales as possible by the end of the year


( S ( NP-SBJ ( DT The ) ( JJ fourth ) ( NN quarter ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB always ) ) ( NP-PRD ( NP ( NP ( NNP IBM ) ( POS 's ) ) ( JJS biggest ) ) ( PP ( IN by ) ( ADVP ( RB far ) ) ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( JJS most ) ( NNS sales ) ) ( VP ( VBG coming ) ( PP-TMP ( IN in ) ( NP ( NNP December ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ-1 ( NNS customers ) ) ( VP ( VBP seek ) ( S ( VP ( TO to ) ( VP ( VB use ) ( NP ( NNS budgets ) ) ( PP-TMP ( IN before ) ( NP ( NN year ) ( NN end ) ) ) ) ) ) ) ) ) ) ) ) ) )

The fourth quarter is always IBM 's biggest by far with most sales coming in December as customers seek to use budgets before year end


( S ( ADVP ( RB Still ) ) ( NP-SBJ ( NP ( NNP Steve ) ( NNP Cohen ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP SoundView ) ( NNP Financial ) ( NNP Group ) ( NNP Inc. ) ) ) ) ) ( VP ( VBD said ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB see ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT this ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ sufficient ) ( S ( VP ( TO to ) ( VP ( VB give ) ( NP ( NNP IBM ) ) ( NP ( DT a ) ( JJ significant ) ( NN kick ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Still Steve Cohen an analyst at SoundView Financial Group Inc. said I do n't see that this will be sufficient to give IBM a significant kick in the fourth quarter


( S ( NP-SBJ ( NNP IBM ) ) ( VP ( VBZ has ) ( ADVP ( RB already ) ) ( VP ( VBN indicated ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB have ) ( NP ( NNS problems ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN quarter ) ) ) ( UCP-PRP ( PP ( ADVP ( RB partly ) ) ( IN because ) ( IN of ) ( NP ( NP ( DT a ) ( NN delay ) ) ( PP ( IN in ) ( S-NOM ( VP ( VBG shipping ) ( NP ( DT a ) ( JJ high-end ) ( NN disk ) ( NN drive ) ) ) ) ) ) ) ( CC and ) ( SBAR ( ADVP ( RB partly ) ) ( IN because ) ( S ( NP-SBJ ( DT the ) ( JJ strong ) ( NN dollar ) ) ( VP ( MD will ) ( VP ( VB cut ) ( ADVP-EXT ( RB significantly ) ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( NP ( NNP IBM ) ( POS 's ) ) ( JJ overseas ) ( NNS earnings ) ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( VP ( VBN translated ) ( PP-CLR ( IN into ) ( NP ( NNS dollars ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

IBM has already indicated it will have problems in the quarter partly because of a delay in shipping a high-end disk drive and partly because the strong dollar will cut significantly the value of IBM 's overseas earnings when translated into dollars


( S ( NP-SBJ ( DT Some ) ( NNS analysts ) ) ( VP ( VBP have ) ( VP ( VBN estimated ) ( SBAR ( S ( NP-SBJ ( NP ( NNP IBM ) ( POS 's ) ) ( JJ fourth-quarter ) ( JJ per-share ) ( NNS earnings ) ) ( VP ( MD will ) ( VP ( VB fall ) ( NP-ADV ( CD 10 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 3.57 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( CD 3.97 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RB earlier ) ) ) ) ) ) ) ) ) )

Some analysts have estimated IBM 's fourth-quarter per-share earnings will fall 10 % to 3.57 a share from 3.97 a share a year earlier


( S ( PP ( IN In ) ( NP ( NP ( NN addition ) ) ( PP ( TO to ) ( NP ( DT the ) ( JJ new ) ( NN mainframe ) ( NN hardware ) ( CC and ) ( NN software ) ) ) ) ) ( NP-SBJ ( NNP IBM ) ) ( VP ( VBD announced ) ( NP ( NP ( DT a ) ( JJ magnetic-tape ) ( NN system ) ) ( PP ( IN for ) ( NP ( NNS data ) ( NN storage ) ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD said ) ( SBAR ( S ( VP ( VP ( VBZ occupies ) ( NP ( NP ( QP ( NN half ) ( IN as ) ( JJ much ) ) ( NN floor ) ( NN space ) ) ( PP ( IN as ) ( NP ( JJR older ) ( NNS systems ) ) ) ) ) ( CC but ) ( VP ( MD can ) ( VP ( VB store ) ( NP ( QP ( CD five ) ( NNS times ) ( IN as ) ( JJ much ) ) ( NNS data ) ) ( PP-LOC-CLR ( IN on ) ( NP ( DT a ) ( JJ single ) ( NN cartridge ) ) ) ) ) ) ) ) ) ) ) ) ) )

In addition to the new mainframe hardware and software IBM announced a magnetic-tape system for data storage that it said occupies half as much floor space as older systems but can store five times as much data on a single cartridge


( S ( NP-SBJ ( DT That ) ) ( VP ( MD should ) ( VP ( VB help ) ( S ( NP-SBJ ( NNP IBM ) ) ( VP ( VB address ) ( NP ( NP ( DT the ) ( NN damage ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( DT a ) ( JJ resurgent ) ( NNP Storage ) ( NNP Technology ) ( NNP Corp. ) ) ( VP ( VBZ has ) ( VP ( VBN inflicted ) ( PP-LOC ( IN in ) ( NP ( DT that ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) )

That should help IBM address the damage that a resurgent Storage Technology Corp. has inflicted in that market


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT a ) ( JJ stunning ) ( NN shift ) ) ( PP ( IN in ) ( NP ( NN direction ) ) ) ) ) ( NP-SBJ ( NNP Provigo ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD will ) ( VP ( VB sell ) ( NP ( DT all ) ( PRP$ its ) ( JJ non-food ) ( NNS operations ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB concentrate ) ( PP ( ADVP ( RB solely ) ) ( IN on ) ( NP ( PRP$ its ) ( ADJP ( NN retail ) ( CC and ) ( JJ wholesale ) ) ( NN grocery ) ( NN business ) ) ) ) ) ) ) ) ) ) ) )

In a stunning shift in direction Provigo Inc. said it will sell all its non-food operations to concentrate solely on its retail and wholesale grocery business


( S ( NP-SBJ ( DT The ) ( JJ non-food ) ( NNS operations ) ) ( VP ( VBD accounted ) ( PP-CLR ( IN for ) ( NP ( NP ( QP ( IN about ) ( CD 27 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Provigo ) ( POS 's ) ) ( QP ( CD 7.38 ) ( CD billion ) ) ( JJ Canadian ) ( NNS dollars ) ) ( PRN ( NP ( QP ( CD 6.3 ) ( CD billion ) ) ) ) ( PP ( IN in ) ( NP ( NNS sales ) ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJS latest ) ( JJ fiscal ) ( NN year ) ) ) ) )

The non-food operations accounted for about 27 % of Provigo 's 7.38 billion Canadian dollars 6.3 billion in sales in the latest fiscal year


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( JJ related ) ( NN move ) ) ) ( NP-SBJ ( NP ( NNP Pierre ) ( NNP Lortie ) ) ( NP ( NP ( NN chairman ) ) ( CC and ) ( NP ( JJ chief ) ( NN executive ) ) ) ) ( VP ( VBD resigned ) ) )

In a related move Pierre Lortie chairman and chief executive resigned


( S ( NP-SBJ ( NNP Mr. ) ( NNP Lortie ) ) ( VP ( VP ( VBD joined ) ( NP ( NNP Provigo ) ) ( PP-TMP ( IN in ) ( NP ( CD 1985 ) ) ) ) ( CC and ) ( VP ( VBD spearheaded ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN drive ) ( S ( VP ( TO to ) ( VP ( VB grow ) ( PP-DIR ( IN outside ) ( NP ( PRP$ its ) ( JJ traditional ) ( NN food ) ( NN business ) ) ) ) ) ) ) ) ) )

Mr. Lortie joined Provigo in 1985 and spearheaded the company 's drive to grow outside its traditional food business


( S ( NP-SBJ-1 ( PRP He ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN reached ) ( PP-CLR ( IN for ) ( NP ( NN comment ) ) ) ) ) ) )

He could n't be reached for comment