( S ( NP-SBJ ( JJ Protective ) ( NNS barriers ) ) ( VP ( MD will ) ( VP ( VB start ) ( VP ( VBG coming ) ( ADVP-CLR ( RB down ) ) ( PP-LOC ( IN within ) ( NP ( DT the ) ( NN insurance ) ( NN industry ) ) ) ( NP-TMP ( NP ( IN next ) ( NN summer ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ-2 ( JJ big ) ( JJ industrial ) ( NNS companies ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NN insurance ) ) ( PP-CLR ( IN from ) ( NP ( NP ( NNS carriers ) ) ( PP-LOC ( IN in ) ( NP ( DT any ) ( JJ other ) ( NNP EC ) ( NN country ) ) ) ) ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( JJ first ) ( NN time ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Protective barriers will start coming down within the insurance industry next summer when big industrial companies will be able to buy insurance from carriers in any other EC country for the first time


( SINV ( S-TPC-2 ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( SBAR-PRD ( WHADVP-1 ( WRB why ) ) ( S ( NP-SBJ-3 ( PRP we ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG working ) ( ADVP-MNR ( RB hard ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB develop ) ( NP ( NP ( DT a ) ( JJ single ) ( ADJP ( RBR more ) ( VBN unified ) ) ( NN presence ) ) ( PP-LOC ( IN in ) ( NP ( NNP Europe ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP A.J.C. ) ( NNP Smith ) ) ( NP ( NP ( NNP Marsh ) ( CC & ) ( NNP McLennan ) ( POS 's ) ) ( NN president ) ) ) ( PP-LOC ( IN at ) ( NP ( DT a ) ( NNP London ) ( NN news ) ( NN conference ) ) ) ( NP-TMP ( NN yesterday ) ) )

That 's why we have been working hard to develop a single more unified presence in Europe said A.J.C. Smith Marsh & McLennan 's president at a London news conference yesterday


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBD speculated ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Marsh ) ( CC & ) ( NNP McLennan ) ) ( VP ( MD would ) ( VP ( VB spend ) ( PP-NOM ( IN between ) ( NP ( NP ( NP ( NP ( QP ( CD 250 ) ( CD million ) ) ( NNS marks ) ) ( PRN ( NP ( QP ( CD 136.4 ) ( CD million ) ) ) ) ) ( CC and ) ( NP ( QP ( CD 350 ) ( CD million ) ) ( NNS marks ) ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( DT the ) ( NN rest ) ) ( PP ( IN of ) ( NP ( NNP Gradmann ) ( CC & ) ( NNP Holler ) ) ) ) ) ( CC or ) ( NP-1 ( QP ( RB roughly ) ( CD 25 ) ( TO to ) ( CD 30 ) ( NNS times ) ) ( NP ( DT the ) ( JJ private ) ( NN firm ) ( POS 's ) ) ( VBN estimated ) ( NNS earnings ) ) ) ) ) ) ) )

Analysts speculated that Marsh & McLennan would spend between 250 million marks 136.4 million and 350 million marks for the rest of Gradmann & Holler or roughly 25 to 30 times the private firm 's estimated earnings


( SINV ( S-TPC-1 ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( VP ( VBG paying ) ( NP ( DT a ) ( JJ big ) ( NN price ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB maintain ) ( NP ( NP ( PRP$ their ) ( NN virility ) ) ( PP ( IN as ) ( NP ( NP ( DT the ) ( NN world ) ( POS 's ) ) ( VBG leading ) ( NN insurance ) ( NN broker ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Philip ) ( NNP Olsen ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Kitcat ) ( CC & ) ( NNP Aitken ) ) ( NP ( DT a ) ( NNP U.K. ) ( NN brokerage ) ( NN firm ) ) ) ) ) ) )

This is paying a big price to maintain their virility as the world 's leading insurance broker said Philip Olsen an analyst at Kitcat & Aitken a U.K. brokerage firm


( S ( NP-TMP ( RBR Earlier ) ( DT this ) ( NN year ) ) ( NP-SBJ-1 ( NNP New ) ( NNP York ) ( NNP Life ) ( NNP Insurance ) ( NNP Co. ) ) ( VP ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NNP Windsor ) ( NNP Group ) ( NNP Ltd. ) ) ) ) ) ) ( NP-ADV ( NP ( DT a ) ( JJ first ) ( NN step ) ) ( PP ( IN toward ) ( S-NOM ( VP ( VBG establishing ) ( NP ( DT a ) ( NN presence ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ European ) ( NN market ) ) ) ( ADVP-TMP ( RB ahead ) ( PP ( IN of ) ( NP ( CD 1992 ) ) ) ) ) ) ) ) ) )

Earlier this year New York Life Insurance Co. agreed to acquire Windsor Group Ltd. a first step toward establishing a presence in the European market ahead of 1992


( S ( CC But ) ( NP-SBJ-2 ( JJS most ) ( NNP U.S. ) ( NNS insurers ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN rushed ) ( S ( VP ( TO to ) ( VP ( VB change ) ( NP ( NP ( DT the ) ( NN way ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP do ) ( NP ( NN business ) ) ( PP-LOC ( IN in ) ( NP ( NNP Europe ) ) ) ) ) ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( JJ European ) ( NN market ) ) ( VP ( MD will ) ( ADVP ( RB still ) ) ( VP ( VB be ) ( VP ( VBN dominated ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( NN handful ) ) ( PP ( IN of ) ( NP ( JJ domestic ) ( NNS companies ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But most U.S. insurers have n't rushed to change the way they do business in Europe because they believe the European market will still be dominated by a handful of domestic companies


( S ( PP-LOC ( IN Under ) ( NP ( DT the ) ( VBN proposed ) ( NN combination ) ) ) ( NP-SBJ ( NNP Marsh ) ( CC & ) ( NNP McLennan ) ) ( VP ( MD would ) ( VP ( VB gain ) ( NP ( NP ( DT a ) ( NN majority ) ( NN stake ) ) ( PP ( IN in ) ( NP ( NNP Gradmann ) ( CC & ) ( NNP Holler ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VB increase ) ( PP-TMP ( IN over ) ( NP ( NN time ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN rest ) ) ( PP ( IN of ) ( NP ( DT the ) ( VBG remaining ) ( CD 85 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) )

Under the proposed combination Marsh & McLennan would gain a majority stake in Gradmann & Holler that would increase over time to the rest of the remaining 85 %


( SINV ( S-TPC-2 ( NP-SBJ ( DT The ) ( CD three ) ( VBG managing ) ( JJ general ) ( NNS partners ) ) ( VP ( MD would ) ( VP ( VB receive ) ( NP ( NP ( DT a ) ( JJ significant ) ( NN number ) ) ( PP ( IN of ) ( NP ( NNP Marsh ) ( CC & ) ( NNP McLennan ) ( NNS shares ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Walther ) ( NNP L. ) ( NNP Kiep ) ) ( NP ( NP ( DT a ) ( NN partner ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( MD would ) ( ADVP ( RB also ) ) ( VP ( VB join ) ( NP ( NP ( NNP Marsh ) ( CC & ) ( NNP McLennan ) ( POS 's ) ) ( NN board ) ) ) ) ) ) ) ) )

The three managing general partners would receive a significant number of Marsh & McLennan shares said Walther L. Kiep a partner who would also join Marsh & McLennan 's board


( S ( NP-SBJ ( NNP Mr. ) ( NNP Kiep ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD sought ) ( NP ( DT the ) ( NN combination ) ) ( SBAR-PRP ( IN because ) ( S ( S ( NP-SBJ ( NP ( DT all ) ( PRP$ our ) ( JJ large ) ( NNS clients ) ) ( PP-LOC ( IN in ) ( NP ( NNP Germany ) ) ) ) ( VP ( VBP are ) ( VP ( VBG becoming ) ( NP-PRD ( NP ( NNP European ) ( NNS companies ) ) ( CC or ) ( NP ( JJ multinational ) ( NNS companies ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VB expect ) ( S ( NP-SBJ ( DT an ) ( NN insurance ) ( NN broker ) ) ( VP ( TO to ) ( VP ( VB serve ) ( NP ( PRP them ) ) ( ADVP-MNR ( ADVP ( RB as ) ( RB well ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Paris ) ) ) ( PP-1 ( IN as ) ( PP-LOC ( IN in ) ( NP ( NNP Germany ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Kiep said he sought the combination because all our large clients in Germany are becoming European companies or multinational companies and they expect an insurance broker to serve them as well in Paris as in Germany


( S ( NP-SBJ ( NP ( NNP Beatrice ) ( NNP E. ) ( NNP Garcia ) ) ( PP-LOC ( IN in ) ( NP ( NNP Philadelphia ) ) ) ) ( VP ( VBD contributed ) ( PP-CLR ( TO to ) ( NP ( DT this ) ( NN article ) ) ) ) )

Beatrice E. Garcia in Philadelphia contributed to this article


( S ( NP-SBJ ( CD Two ) ( ADJP ( JJ West ) ( JJ German ) ) ( NN chemical ) ( NNS companies ) ) ( VP ( VBD announced ) ( NP ( NP ( NNS steps ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( ADVP ( RB apparently ) ) ( VP ( VBP are ) ( VP ( VBN designed ) ( S ( VP ( TO to ) ( VP ( VB boost ) ( NP ( NP ( NP ( DT the ) ( NN chemical ) ( NN industry ) ( POS 's ) ) ( NN standing ) ) ( PP ( IN among ) ( NP ( NP ( JJ environmental ) ( NNS groups ) ) ( CC and ) ( NP ( DT the ) ( JJ general ) ( NN public ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Two West German chemical companies announced steps that apparently are designed to boost the chemical industry 's standing among environmental groups and the general public


( S ( NP-SBJ ( NP ( NNP Hoechst ) ( NNP AG ) ( POS 's ) ) ( NNP Chairman ) ( NNP Wolfgang ) ( NNP Hilger ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN company ) ) ( VP ( VBZ wants ) ( S ( VP ( TO to ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( JJ substitute ) ( NN product ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( ADVP ( RB completely ) ) ( VB replace ) ( NP ( JJ ozone-damaging ) ( NNS chlorofluorocarbons ) ) ( PP-TMP ( IN by ) ( NP ( CD 1995 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Hoechst AG 's Chairman Wolfgang Hilger said the company wants to have a substitute product to completely replace ozone-damaging chlorofluorocarbons by 1995


( S ( PP-TMP ( IN In ) ( NP ( NNP April ) ) ) ( NP-SBJ ( NP ( NNP Hoechst ) ) ( NP ( NP ( DT the ) ( JJS largest ) ( NN producer ) ) ( PP ( IN of ) ( NP ( NNPS CFCs ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP West ) ( NNP Germany ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD wanted ) ( S ( VP ( TO to ) ( VP ( VB reduce ) ( NP ( NP ( NN production ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN product ) ) ) ) ( PP-EXT ( IN by ) ( NP ( CD 50 ) ( NN % ) ) ) ( PP-TMP ( IN by ) ( NP ( CD 1993 ) ) ) ) ) ) ) ) ) ) )

In April Hoechst the largest producer of CFCs in West Germany said it wanted to reduce production of the product by 50 % by 1993


( S ( NP-SBJ ( NNP Mr. ) ( NNP Hilger ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP Hoechst ) ) ( VP ( MD will ) ( VP ( VB invest ) ( NP ( NP ( QP ( CD 50 ) ( CD million ) ) ( NNS marks ) ) ( PRN ( NP ( QP ( CD 27.2 ) ( CD million ) ) ) ) ) ( PP-CLR ( IN in ) ( NP ( DT a ) ( NN plant ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB make ) ( NP ( NP ( DT a ) ( NN substitute ) ( NN product ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( VP ( VBN developed ) ) ) ) ) ( SBAR ( WHNP-3 ( IN that ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ says ) ( SBAR ( S ( VP ( VBZ is ) ( ADJP-PRD ( VBN unchlorinated ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Hilger said Hoechst will invest 50 million marks 27.2 million in a plant to make a substitute product it has developed that it says is unchlorinated


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBZ hopes ) ( SBAR ( S ( NP-SBJ-2 ( NP ( DT the ) ( JJ new ) ( NN plant ) ) ( ADJP ( RB likely ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN built ) ( PP-LOC ( IN in ) ( NP ( NNP Frankfurt ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB produce ) ( NP ( NP ( CD 10,000 ) ( NNS tons ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) )

The company hopes the new plant likely to be built in Frankfurt will be able to produce 10,000 tons a year


( S ( NP-TMP ( DT This ) ( NN year ) ) ( NP-SBJ ( NNP Hoechst ) ) ( VP ( MD will ) ( VP ( VB produce ) ( NP ( NP ( QP ( IN about ) ( CD 62,000 ) ) ( NNS tons ) ) ( PP ( IN of ) ( NP ( NNS CFCs ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNS factories ) ) ( PP-LOC ( IN in ) ( NP ( NNP Frankfurt ) ( NNP Spain ) ( CC and ) ( NNP Brazil ) ) ) ) ) ) ) )

This year Hoechst will produce about 62,000 tons of CFCs in factories in Frankfurt Spain and Brazil


( S ( PP-TPC-1 ( IN Of ) ( NP ( NP ( NP ( NNP Hoechst ) ( POS 's ) ) ( QP ( CD 40.9 ) ( CD billion ) ) ( NNS marks ) ) ( PP ( IN in ) ( NP ( NN group ) ( NNS sales ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1988 ) ) ) ) ) ( NP-SBJ ( NP ( QP ( CD 200 ) ( CD million ) ) ( NNS marks ) ) ) ( VP ( VBD came ) ( PP-CLR ( IN from ) ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( NNS CFCs ) ) ) ) ) ) )

Of Hoechst 's 40.9 billion marks in group sales in 1988 200 million marks came from sales of CFCs


( S ( ADVP ( RB Also ) ) ( NP-SBJ ( NP ( NNP BASF ) ( NNP AG ) ) ( NP ( DT another ) ( JJ large ) ( NNS chemicals ) ( NN company ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD formed ) ( NP ( NP ( DT a ) ( JJ separate ) ( NN division ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VP ( MD will ) ( VP ( VB study ) ( NP ( NP ( DT the ) ( JJ environmental ) ( NN impact ) ) ( PP ( IN of ) ( NP ( NNS plastics ) ) ) ) ) ) ( CC and ) ( VP ( MD will ) ( VP ( VB investigate ) ( NP ( NP ( DT all ) ( NNS possibilities ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG recycling ) ( NP ( NNS plastics ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Also BASF AG another large chemicals company said it formed a separate division that will study the environmental impact of plastics and will investigate all possibilities of recycling plastics


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT the ) ( NN bidding ) ( NN war ) ) ( PP ( IN for ) ( NP ( NP ( NNP Public ) ( NNP Service ) ( NNP Co. ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ) ) ) ( NP-SBJ ( NNP United ) ( NNP Illuminating ) ( NNP Co. ) ) ( VP ( VBD raised ) ( NP ( PRP$ its ) ( VBN proposed ) ( NN offer ) ) ( PP-DIR ( TO to ) ( NP ( NP ( CD one ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD valued ) ( PP-LOC ( IN at ) ( NP ( QP ( CD 2.29 ) ( CD billion ) ) ) ) ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 2.19 ) ( CD billion ) ) ) ) ( S-ADV ( ADVP ( RB apparently ) ) ( VP ( VBG topping ) ( NP ( DT all ) ( JJ other ) ( NNS bidders ) ) ) ) ) )

In the bidding war for Public Service Co. of New Hampshire United Illuminating Co. raised its proposed offer to one it valued at 2.29 billion from 2.19 billion apparently topping all other bidders


( S ( NP-SBJ ( DT The ) ( NNS bids ) ) ( VP ( VBP remain ) ( ADJP-PRD ( JJ subject ) ( PP ( TO to ) ( NP ( NP ( NN evaluation ) ) ( PP ( IN by ) ( NP ( NP ( DT the ) ( JJ federal ) ( NN bankruptcy ) ( NN court ) ) ( VP ( VBG supervising ) ( NP ( NP ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ( POS 's ) ) ( NN reorganization ) ) ) ) ) ) ) ) ) )

The bids remain subject to evaluation by the federal bankruptcy court supervising PS of New Hampshire 's reorganization


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP are ) ( ADVP ( RB also ) ) ( ADVP-MNR ( RB indirectly ) ) ( ADJP-PRD ( JJ subject ) ( PP ( TO to ) ( NP ( NP ( NN approval ) ) ( PP ( IN by ) ( NP ( NP ( DT the ) ( NN state ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ( SBAR ( WHADVP-1 ( WRB where ) ) ( S ( NP-SBJ ( NNS residents ) ) ( VP ( VBP fear ) ( NP ( NP ( VBG soaring ) ( NNS rates ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB pay ) ( PP-CLR ( IN for ) ( NP ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( NP ( NN reorganization ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

They are also indirectly subject to approval by the state of New Hampshire where residents fear soaring rates to pay for the cost of reorganization


( S ( NP-SBJ ( NP ( DT Each ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( CD four ) ( NNS parties ) ) ( VP ( VBG bidding ) ( PP-CLR ( IN for ) ( NP ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ) ) ) ) ) ( VP ( VP ( VBZ proposes ) ( NP ( NP ( DT a ) ( JJ complex ) ( JJ financial ) ( NN package ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB satisfy ) ( NP ( NNS creditors ) ( CC and ) ( NNS shareholders ) ) ) ) ) ) ) ) ( CC and ) ( VP ( ADVP ( RB also ) ) ( VBZ proposes ) ( NP ( NP ( DT a ) ( NN formula ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB limit ) ( NP ( NN rate ) ( NNS increases ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB satisfy ) ( NP ( DT the ) ( NN state ) ) ) ) ) ) ) ) ) ) ) ) )

Each of the four parties bidding for PS of New Hampshire proposes a complex financial package to satisfy creditors and shareholders and also proposes a formula to limit rate increases to satisfy the state


( S ( NP-SBJ-1 ( NP ( DT The ) ( JJ new ) ( NN round ) ) ( PP ( IN of ) ( NP ( NN bidding ) ) ) ) ( VP ( MD would ) ( VP ( VB seem ) ( S ( VP ( TO to ) ( VP ( VB complicate ) ( NP ( DT the ) ( NN decision ) ( NN making ) ) ( PP ( IN for ) ( NP ( NP ( NNP Judge ) ( NNP James ) ( NNP Yacos ) ) ( NP ( NP ( DT the ) ( NN bankruptcy ) ( NN judge ) ) ( VP ( VBG overseeing ) ( NP ( DT the ) ( NN case ) ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NX ( NX ( NNS stockholders ) ) ( NX ( JJ unsecured ) ( NNS creditors ) ) ( CC and ) ( NX ( VBZ regulators ) ) ) ) ( NP-ADV ( DT each ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBG backing ) ( NP ( JJ different ) ( NNS plans ) ) ) ) ) ) ) ) ) ) ) )

The new round of bidding would seem to complicate the decision making for Judge James Yacos the bankruptcy judge overseeing the case because the company 's stockholders unsecured creditors and regulators each are currently backing different plans


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS proposals ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADJP ( RB so ) ( JJ close ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( JJ non-financial ) ( NNS issues ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NN timing ) ) ) ) ( VP ( MD may ) ( VP ( VB play ) ( NP ( DT a ) ( ADJP ( RBR more ) ( JJ important ) ) ( NN role ) ) ) ) ) ) ) ) )

In addition some of the proposals are so close that non-financial issues such as timing may play a more important role


( S ( NP-SBJ-1 ( DT The ) ( JJ unsecured ) ( NNS creditors ) ) ( VP ( VBD agreed ) ( PP-MNR ( IN in ) ( NP ( NN principle ) ) ) ( S ( VP ( TO to ) ( VP ( VB support ) ( NP ( NP ( ADJP ( NNP New ) ( NNP Haven ) ( JJ Conn.-based ) ) ( NNP United ) ( NNP Illuminating ) ( POS 's ) ) ( JJ new ) ( NN bid ) ) ) ) ) ) )

The unsecured creditors agreed in principle to support New Haven Conn.-based United Illuminating 's new bid


( S ( NP-SBJ ( PRP They ) ) ( ADVP-TMP ( RB previously ) ) ( VP ( VBD had ) ( VP ( VBN backed ) ( NP ( NP ( DT an ) ( JJ internal ) ( NN reorganization ) ( NN plan ) ) ( VP ( VBN proposed ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ) ) ) ) ) )

They previously had backed an internal reorganization plan proposed by PS of New Hampshire


( S ( NP-SBJ ( NP ( DT All ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS bidders ) ) ) ) ( VP ( VBP contemplate ) ( NP ( NP ( JJ full ) ( NN payment ) ) ( PP ( VBG including ) ( NP ( NP ( NN interest ) ) ( PP ( TO to ) ( NP ( VBN secured ) ( NNS creditors ) ) ) ) ) ) ) )

All of the bidders contemplate full payment including interest to secured creditors


( S ( NP-SBJ ( NP ( NNP United ) ( NNP Illuminating ) ( POS 's ) ) ( NN plan ) ) ( ADVP ( RB however ) ) ( VP ( VBZ offers ) ( NP ( NP ( RBR more ) ) ( PP ( IN for ) ( NP ( JJ unsecured ) ( NNS creditors ) ) ) ) ) )

United Illuminating 's plan however offers more for unsecured creditors


( S ( NP-SBJ ( NP ( NNP Geoffrey ) ( NNP Kalmus ) ) ( NP ( NP ( NN counsel ) ) ( PP ( TO to ) ( NP ( DT the ) ( JJ official ) ( NNS creditors ) ( NN committee ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP-LOC ( IN under ) ( NP ( DT the ) ( NNP United ) ( NNP Illuminating ) ( NN plan ) ) ) ( NP-SBJ-1 ( JJ unsecured ) ( NNS creditors ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN paid ) ( PP-CLR ( IN in ) ( NP ( NP ( JJ full ) ( NNS credits ) ) ( CC and ) ( NP ( NP ( NN interest ) ) ( PP ( IN of ) ( NP ( QP ( IN about ) ( CD 855 ) ( CD million ) ) ) ) ( VP ( VBN accrued ) ( PP-TMP ( IN before ) ( NP ( NP ( NP ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ( POS 's ) ) ( NNP Jan. ) ( CD 1988 ) ( VBG filing ) ) ( PP ( IN for ) ( NP ( NN bankruptcy ) ( NN court ) ( NN protection ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Geoffrey Kalmus counsel to the official creditors committee said that under the United Illuminating plan unsecured creditors would be paid in full credits and interest of about 855 million accrued before PS of New Hampshire 's Jan. 1988 filing for bankruptcy court protection


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( MD would ) ( VP ( VB receive ) ( NP ( NP ( QP ( DT some ) ( CD 200 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS payments ) ) ( PP ( IN for ) ( NP ( NP ( NN interest ) ) ( PP-TMP ( IN since ) ( ADVP ( RB then ) ) ) ) ) ) ) ) ) ) )

In addition they would receive some 200 million in payments for interest since then


( S ( NP-SBJ ( NNP Mr. ) ( NNP Kalmus ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN by ) ( NP ( JJ next ) ( NNP July ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( MD would ) ( VP ( VB have ) ( VP ( VBN accrued ) ( NP ( NP ( JJ unpaid ) ( NN interest ) ) ( ADJP ( JJ equal ) ( PP ( TO to ) ( NP ( QP ( CD 350 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Kalmus said that by next July they would have accrued unpaid interest equal to 350 million


( S ( NP-SBJ ( JJ Other ) ( NNS plans ) ) ( ADVP ( RB generally ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB pay ) ( NP ( NP ( NP ( JJ unsecured ) ( NNS creditors ) ( POS ' ) ) ( NN interest ) ) ( VP ( VBN accrued ) ( PP-TMP ( IN since ) ( NP ( DT the ) ( NN filing ) ) ) ) ) ) ) )

Other plans generally would n't pay unsecured creditors ' interest accrued since the filing


( S ( PP-LOC ( IN Under ) ( NP ( NP ( NNP United ) ( NNP Illuminating ) ( POS 's ) ) ( NN plan ) ) ) ( NP-SBJ-1 ( NP ( DT a ) ( JJ new ) ( VBG holding ) ( NN company ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN formed ) ( SBAR-3 ( S ( VP ( TO to ) ( VP ( VB own ) ( NP ( DT the ) ( CD two ) ( NNS companies ) ) ) ) ) ) ) ) ) )

Under United Illuminating 's plan a new holding company would be formed to own the two companies


( S ( NP-SBJ ( PRP It ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( ADJP ( JJ 72%-owned ) ( PP ( IN by ) ( NP ( NNP United ) ( NNP Illuminating ) ( NNS holders ) ) ) ) ( CC and ) ( ADJP ( JJ 28%-owned ) ( PP ( IN by ) ( NP ( NP ( JJ current ) ( NNS holders ) ) ( PP ( IN of ) ( NP ( NAC ( NNP PS ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ( ADJP ( VBN preferred ) ( CC and ) ( JJ common ) ) ( NN stock ) ) ) ) ) ) ) ) ) )

It would be 72%-owned by United Illuminating holders and 28%-owned by current holders of PS of New Hampshire preferred and common stock


( S ( NP-SBJ ( NAC ( NNP PS ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ( VBD preferred ) ( NNS holders ) ) ( ADVP ( RB also ) ) ( VP ( MD would ) ( VP ( VB get ) ( NP ( NP ( JJ certain ) ( NNS debentures ) ) ( CC and ) ( NP ( VBN preferred ) ( NN stock ) ) ) ) ) )

PS of New Hampshire preferred holders also would get certain debentures and preferred stock


( S ( NP-SBJ ( NNP United ) ( NNP Illuminating ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( VBN preferred ) ( NNS holders ) ( JJ total ) ( NN package ) ) ( VP ( MD would ) ( VP ( VB equal ) ( NP ( NP ( QP ( IN about ) ( CD 60 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NNS claims ) ) ) ) ) ) ) ) ) )

United Illuminating said the preferred holders total package would equal about 60 % of their claims


( S ( NP-SBJ-1 ( JJ Common ) ( NNS shareholders ) ) ( VP ( MD would ) ( VP ( VB end ) ( PRT ( RP up ) ) ( S ( VP ( VBG owning ) ( NP ( NP ( QP ( IN about ) ( CD 6.4 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( VBN combined ) ( NN company ) ) ) ) ) ) ) ) )

Common shareholders would end up owning about 6.4 % of the combined company


( S ( SBAR-ADV ( IN As ) ( S ( VP ( ADVP ( RB previously ) ) ( VBN reported ) ) ) ) ( NP-SBJ ( NP ( NNP Northeast ) ( NNPS Utilities ) ) ( NP-LOC ( NP ( NNP Hartford ) ) ( NP ( NNP Conn. ) ) ) ) ( NP-TMP ( NNP Monday ) ) ( VP ( VBD filed ) ( NP ( NP ( DT a ) ( NN bid ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD valued ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 2.25 ) ( CD billion ) ) ) ) ) ) ) ) ) )

As previously reported Northeast Utilities Hartford Conn. Monday filed a bid it valued at 2.25 billion


( S ( NP-SBJ-1 ( DT That ) ( NN offer ) ) ( VP ( VBD was ) ( VP ( VBN endorsed ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NNS shareholders ) ( NN committee ) ) ) ) ) )

That offer was endorsed by the shareholders committee


( S ( NP-SBJ ( NP ( DT The ) ( JJ other ) ( NNS bidders ) ) ( NP ( NP ( NP ( NNP New ) ( NNP England ) ( NNP Electric ) ( NNP System ) ) ( NP-LOC ( NP ( NNP Westboro ) ) ( NP ( NNP Mass. ) ) ) ) ( CC and ) ( NP ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB change ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NNS bids ) ) ) ) ( SBAR-ADV ( IN although ) ( S ( NP-SBJ ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ( VP ( VBD changed ) ( NP ( PRP$ its ) ( NN rate ) ( NN proposal ) ) ) ) ) ) ) )

The other bidders New England Electric System Westboro Mass. and PS of New Hampshire did n't change the value of their bids although PS of New Hampshire changed its rate proposal


( S ( S ( NP-SBJ ( NNP New ) ( NNP England ) ( NNP Electric ) ) ( VP ( VBZ values ) ( NP ( PRP$ its ) ( NN offer ) ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 2 ) ( CD billion ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ( VP ( VBZ values ) ( NP ( PRP$ its ) ( NN reorganization ) ( NN plan ) ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 2.2 ) ( CD billion ) ) ) ) ) ) )

New England Electric values its offer at 2 billion and PS of New Hampshire values its reorganization plan at 2.2 billion


( S ( NP-SBJ ( DT The ) ( NN bankruptcy ) ( NN judge ) ) ( VP ( VBZ has ) ( VP ( VBN ruled ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( JJ federal ) ( NN bankruptcy ) ( NNS laws ) ) ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN used ) ( S-CLR ( VP ( TO to ) ( VP ( VB circumvent ) ( NP ( NN state ) ( NN regulation ) ) ) ) ) ) ) ) ) ) ) ) )

The bankruptcy judge has ruled that federal bankruptcy laws could be used to circumvent state regulation


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NP ( NNS creditors ) ( CC and ) ( NNS bidders ) ) ( ADVP ( RB alike ) ) ) ( VP ( VBP concede ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN state ) ) ( VP ( VBZ plays ) ( NP ( DT a ) ( JJ major ) ( NN role ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD could ) ( ADVP ( RB significantly ) ) ( VP ( VB delay ) ( NP ( NP ( JJ final ) ( NN settlement ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN plan ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( JJ like ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

However creditors and bidders alike concede that the state plays a major role because it could significantly delay final settlement of a plan it did n't like


( S ( NP-SBJ ( DT The ) ( NN state ) ) ( VP ( VBZ has ) ( VP ( VBN endorsed ) ( NP ( NP ( DT the ) ( NNP New ) ( NNP England ) ( NNP Electric ) ( NN plan ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ promises ) ( S ( VP ( TO to ) ( VP ( VB limit ) ( NP ( NN rate ) ( NNS increases ) ) ( PP-CLR ( TO to ) ( NP ( NP ( CD 4.8 ) ( NN % ) ) ( ADVP-TMP ( RB annually ) ) ) ) ( PP-TMP ( IN for ) ( NP ( CD seven ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) )

The state has endorsed the New England Electric plan which promises to limit rate increases to 4.8 % annually for seven years


( S ( NP-SBJ ( NP ( NNP Northeast ) ( NNPS Utilities ) ( POS ' ) ) ( NN plan ) ) ( VP ( VBZ proposes ) ( NP ( ADJP ( CD 5.5 ) ( NN % ) ) ( JJ annual ) ( NNS increases ) ) ) )

Northeast Utilities ' plan proposes 5.5 % annual increases


( S ( NP-SBJ-1 ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ( VP ( VBD amended ) ( NP ( PRP$ its ) ( NN plan ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB call ) ( PP-CLR ( IN for ) ( NP ( NP ( NP ( CD two ) ( NNS years ) ) ( PP ( IN of ) ( NP ( ADJP ( CD 5.5 ) ( NN % ) ) ( NN rate ) ( NNS increases ) ) ) ) ( VP ( VBN followed ) ( PP ( IN by ) ( NP-LGS ( NP ( CD five ) ( NNS years ) ) ( PP ( IN of ) ( NP ( ADJP ( CD 4.5 ) ( NN % ) ) ( NNS increases ) ) ) ) ) ) ) ) ) ) ) ) )

PS of New Hampshire amended its plan to call for two years of 5.5 % rate increases followed by five years of 4.5 % increases


( S ( NP-SBJ ( NN Fuel ) ( NN cost ) ( NNS adjustments ) ) ( VP ( MD could ) ( VP ( VB change ) ( NP ( DT the ) ( JJ effective ) ( NN rate ) ( NNS increases ) ) ( ADVP ( RB however ) ) ) ) )

Fuel cost adjustments could change the effective rate increases however


( S ( ADVP-TMP ( RB Previously ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( VP ( VBN proposed ) ( NP ( NP ( CD seven ) ( NNS years ) ) ( PP ( IN of ) ( NP ( ADJP ( CD 5.5 ) ( NN % ) ) ( NNS increases ) ) ) ) ) ) )

Previously it had proposed seven years of 5.5 % increases


( S ( NP-SBJ ( NNP United ) ( NNP Illuminating ) ) ( ADVP ( RB also ) ) ( VP ( VBD amended ) ( NP ( PRP$ its ) ( NN rate ) ( NN plan ) ) ) )

United Illuminating also amended its rate plan


( S ( NP-SBJ ( DT The ) ( JJ new ) ( NN offer ) ) ( VP ( VBZ assumes ) ( NP ( NP ( QP ( RB just ) ( CD five ) ) ( NNS years ) ) ( PP ( IN of ) ( NP ( ADJP ( CD 5.5 ) ( NN % ) ) ( NN rate ) ( NNS increases ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN followed ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ state-approved ) ( NNS increases ) ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( JJ usual ) ( NN hearing ) ( NN procedure ) ) ) ) ) ) ) ) ) ) ) ) )

The new offer assumes just five years of 5.5 % rate increases to be followed by state-approved increases under the usual hearing procedure


( S ( ADVP-TMP ( RB Previously ) ) ( NP-SBJ ( NNP United ) ( NNP Illuminating ) ) ( VP ( VBD had ) ( ADVP ( RB also ) ) ( VP ( VBN called ) ( PP-CLR ( IN for ) ( NP ( NP ( CD seven ) ( NNS years ) ) ( PP ( IN of ) ( NP ( ADJP ( CD 5.5 ) ( NN % ) ) ( NNS increases ) ) ) ) ) ) ) )

Previously United Illuminating had also called for seven years of 5.5 % increases


( S ( NP-SBJ ( DT The ) ( NNS bids ) ( CC and ) ( NN rate ) ( NNS proposals ) ) ( ADVP ( RB generally ) ) ( VP ( VBP assume ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NNP Seabrook ) ( JJ nuclear ) ( NN power ) ( NN plant ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBN completed ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB go ) ( PP-CLR ( IN into ) ( NP ( NN operation ) ) ) ) ) ) ) ) )

The bids and rate proposals generally assume the Seabrook nuclear power plant which is completed will go into operation


( S ( NP-SBJ ( NP ( JJS Most ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS plans ) ) ) ) ( VP ( VBP have ) ( VP ( VBN reduced ) ( NP ( NNS bids ) ) ( SBAR-PRP ( IN in ) ( NN case ) ( S ( NP-SBJ-1 ( DT the ) ( NN plant ) ) ( VP ( VBZ fails ) ( S ( VP ( TO to ) ( VP ( VB get ) ( NP ( DT a ) ( NN license ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NNP Nuclear ) ( NNP Regulatory ) ( NNP Commission ) ) ) ) ) ) ) ) ) ) ) )

Most of the plans have reduced bids in case the plant fails to get a license from the Nuclear Regulatory Commission


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( NN trading ) ) ) ( NP-SBJ ( NP ( NP ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ( POS 's ) ) ( QP ( CD 17 ) ( CD 1\/2 ) ) ( NN debenture ) ) ( ADJP ( JJ due ) ( NP-TMP ( CD 2004 ) ) ) ) ( VP ( VBD closed ) ( NP-TMP ( NN yesterday ) ) ( PP-CLR ( IN at ) ( NP ( CD 82.50 ) ) ) ( ADVP ( RB up ) ( NP ( CD 2 ) ) ) ) )

In New York Stock Exchange trading PS of New Hampshire 's 17 1\/2 debenture due 2004 closed yesterday at 82.50 up 2


( S ( NP-SBJ ( NP ( DT The ) ( NN utility ) ( POS 's ) ) ( NN stock ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 4 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP ( RB up ) ( NP ( CD 37.5 ) ( NNS cents ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ composite ) ( NN trading ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ) ) ) )

The utility 's stock closed at 4 a share up 37.5 cents in composite trading on the Big Board


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( JJ separate ) ( NN development ) ) ) ( NP-SBJ ( NP ( NNP PS ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP Hampshire ) ) ) ) ( VP ( VBD gave ) ( NP ( CD 60 ) ( NNS managers ) ) ( NP ( NP ( NN severance ) ( NNS agreements ) ) ( SBAR ( WHNP-3 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VB pay ) ( NP ( NP ( QP ( CD one ) ( TO to ) ( CD three ) ) ( NNS years ) ( POS ' ) ) ( NN salary ) ) ( SBAR-ADV ( IN if ) ( S ( S ( NP-SBJ-1 ( PRP$ their ) ( NNS jobs ) ) ( VP ( VBD were ) ( VP ( VBN changed ) ) ) ) ( CC or ) ( S ( NP-SBJ-2 ( PRP they ) ) ( VP ( VBD were ) ( VP ( VBN dismissed ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( NN wake ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN takeover ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a separate development PS of New Hampshire gave 60 managers severance agreements that would pay one to three years ' salary if their jobs were changed or they were dismissed in the wake of a takeover


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( JJ maximum ) ( NN cost ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN plan ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( NP-PRD ( QP ( CD 9.7 ) ( CD million ) ) ) ) ) ) ) ) )

It said the maximum cost of the plan would be 9.7 million


( S ( NP-SBJ-1 ( NP ( NNP Ronald ) ( NNP J. ) ( NNP Taylor ) ) ( NP ( CD 48 ) ) ) ( VP ( VBD was ) ( VP ( VBN named ) ( S ( NP-PRD ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT this ) ( NN insurance ) ( NN firm ) ( POS 's ) ) ( NN reinsurance ) ( NN brokerage ) ( NN group ) ) ( CC and ) ( NP ( NP ( PRP$ its ) ( JJ major ) ( NN unit ) ) ( NP ( NNP G.L. ) ( NNP Hodson ) ( CC & ) ( NNP Son ) ( NNP Inc ) ) ) ) ) ) ) ) ) )

Ronald J. Taylor 48 was named chairman of this insurance firm 's reinsurance brokerage group and its major unit G.L. Hodson & Son Inc


( S ( NP-SBJ ( NP ( NNP Robert ) ( NNP G. ) ( NNP Hodson ) ) ( NP ( CD 65 ) ) ) ( VP ( VP ( VBD retired ) ( PP-CLR ( IN as ) ( NP ( NN chairman ) ) ) ) ( CC but ) ( VP ( MD will ) ( VP ( VB remain ) ( NP-PRD ( DT a ) ( NN consultant ) ) ) ) ) )

Robert G. Hodson 65 retired as chairman but will remain a consultant


( S ( NP-SBJ-1 ( NP ( NNP Stephen ) ( NNP A. ) ( NNP Crane ) ) ( NP ( CD 44 ) ) ( NP ( NP ( NP ( JJ senior ) ( NN vice ) ( NN president ) ) ( CC and ) ( NP ( NN chief ) ( UCP ( JJ financial ) ( CC and ) ( VBG planning ) ) ( NN officer ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN parent ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN named ) ( S ( NP-PRD ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( NN chief ) ( NN executive ) ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN brokerage ) ( NN group ) ) ( CC and ) ( NP ( DT the ) ( NN unit ) ) ) ) ) ) ( S-ADV ( VP ( VBG succeeding ) ( NP ( NNP Mr. ) ( NNP Taylor ) ) ) ) ) ) )

Stephen A. Crane 44 senior vice president and chief financial and planning officer of the parent was named president and chief executive of the brokerage group and the unit succeeding Mr. Taylor


( S ( NP-SBJ ( DT The ) ( NNS appointments ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ effective ) ) ( NP-TMP ( NNP Nov. ) ( CD 1 ) ) ) )

The appointments are effective Nov. 1


( S ( NP-SBJ ( NNP Corroon ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB announce ) ( NP ( NP ( DT a ) ( NN successor ) ) ( PP ( TO to ) ( NP ( NNP Mr. ) ( NNP Crane ) ) ) ) ( PP-TMP ( IN at ) ( NP ( DT a ) ( JJ later ) ( NN date ) ) ) ) ) ) ) ) )

Corroon said it will announce a successor to Mr. Crane at a later date


( S ( S ( NP-SBJ ( NNP Federal ) ( NNP Reserve ) ( NNP Chairman ) ( NNP Alan ) ( NNP Greenspan ) ) ( VP ( VBD told ) ( NP ( NNP Congress ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT the ) ( NNP Fed ) ) ( VP ( MD can ) ( VP ( VB wipe ) ( PRT ( RP out ) ) ( NP ( NN inflation ) ) ( PP ( IN without ) ( S-NOM ( VP ( VBG causing ) ( NP ( DT a ) ( NN recession ) ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ( SBAR ( S ( S-NOM-SBJ ( VP ( VBG doing ) ( ADVP-PRD ( RB so ) ) ) ) ( VP ( VP ( MD will ) ( VP ( VB inflict ) ( NP ( DT some ) ( JJ short-term ) ( NN pain ) ) ) ) ( CC and ) ( VP ( MD will ) ( VP ( VB require ) ( S ( VP ( VBG reducing ) ( NP ( DT the ) ( JJ federal ) ( NN deficit ) ) ( ADVP-MNR ( RB sharply ) ) ) ) ) ) ) ) ) ) ) )

Federal Reserve Chairman Alan Greenspan told Congress that the Fed can wipe out inflation without causing a recession but he said doing so will inflict some short-term pain and will require reducing the federal deficit sharply


( S ( NP-SBJ ( NNP Mr. ) ( NNP Greenspan ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( PRP he ) ) ( CC and ) ( NP ( JJ other ) ( NNP Fed ) ( NNS governors ) ) ) ( VP ( VBP endorse ) ( NP ( NP ( DT a ) ( NN bill ) ) ( PP ( IN by ) ( NP ( NP ( NNP Rep. ) ( NNP Stephen ) ( NNP Neal ) ) ( PRN ( NP ( NNP D. ) ) ( NP-LOC ( NNP N.C. ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VB require ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( TO to ) ( VP ( VB pursue ) ( NP ( NP ( NNS policies ) ) ( VP ( VBN aimed ) ( PP-CLR ( IN at ) ( S-NOM ( VP ( VBG eliminating ) ( NP ( NN inflation ) ) ( PP-TMP ( IN within ) ( NP ( CD five ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Greenspan said he and other Fed governors endorse a bill by Rep. Stephen Neal D. N.C. that would require the Fed to pursue policies aimed at eliminating inflation within five years


( S ( S-TPC-1 ( S ( NP-SBJ ( PDT Such ) ( DT a ) ( NN deadline ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ attainable ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB have ) ( NP ( NNS costs ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Greenspan ) ) ( VP ( VBD told ) ( NP ( NP ( NNP Rep. ) ( NNP Neal ) ( POS 's ) ) ( JJ monetary ) ( NN policy ) ( NN subcommittee ) ) ) )

Such a deadline is attainable but it would have costs Mr. Greenspan told Rep. Neal 's monetary policy subcommittee


( S ( NP-SBJ ( DT The ) ( NNP Fed ) ( NN chief ) ) ( VP ( VBD opposed ) ( NP ( NP ( DT a ) ( NN bill ) ) ( PRN ( VP ( VBN introduced ) ( PP ( IN by ) ( NP-LGS ( NNPS Reps. ) ( NX ( NX ( NX ( NNP Lee ) ( NNP Hamilton ) ) ( PRN ( NP ( NNP D. ) ) ( NP-LOC ( NNP Ind. ) ) ) ) ( CC and ) ( NX ( NX ( NNP Byron ) ( NNP Dorgan ) ) ( PRN ( NP ( NNP D. ) ) ( NP-LOC ( NNP N.D. ) ) ) ) ) ) ) ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( PP ( IN among ) ( NP ( JJ other ) ( NNS things ) ) ) ( VP ( MD would ) ( VP ( VB require ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( TO to ) ( VP ( VP ( VB disclose ) ( NP ( DT all ) ( JJ monetary ) ( NN policy ) ( NNS moves ) ) ( ADVP-TMP ( RB immediately ) ) ) ( CC and ) ( VP ( VB increase ) ( NP ( NP ( JJ outside ) ( NN scrutiny ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Fed ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Fed chief opposed a bill introduced by Reps. Lee Hamilton D. Ind. and Byron Dorgan D. N.D. that among other things would require the Fed to disclose all monetary policy moves immediately and increase outside scrutiny of the Fed


( S ( PP-LOC ( IN In ) ( S-NOM ( VP ( VBG responding ) ( PP-CLR ( TO to ) ( NP ( NNS questions ) ) ) ) ) ) ( NP-SBJ-1 ( NNP Mr. ) ( NNP Greenspan ) ) ( VP ( VBD played ) ( PRT ( RP down ) ) ( NP ( NP ( NNS reports ) ) ( PP ( IN of ) ( NP ( NP ( NN tension ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NNP Fed ) ) ( CC and ) ( NP ( DT the ) ( NNP Treasury ) ) ) ) ( PP ( IN over ) ( NP ( NN exchange-rate ) ( NN policy ) ) ) ) ) ) ) )

In responding to questions Mr. Greenspan played down reports of tension between the Fed and the Treasury over exchange-rate policy


( S ( S-TPC-4 ( SBAR-NOM-SBJ ( WHNP-2 ( WP What ) ) ( S ( VP ( VBP seem ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN interpreted ) ( PP-CLR ( IN as ) ( NP ( JJ great ) ( NNS conflicts ) ) ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( ADJP ( RB relatively ) ( JJ minor ) ) ( NNS issues ) ) ( PP ( IN of ) ( NP ( NNS tactics ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

What seem to be interpreted as great conflicts are relatively minor issues of tactics he said


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( JJ elaborate ) ) ) )

He did n't elaborate


( S ( S ( CC But ) ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( VBZ is ) ( RB n't ) ( ADJP-PRD ( JJ enthusiastic ) ( PP ( IN about ) ( NP ( NNP Treasury ) ( NNS efforts ) ( S ( VP ( TO to ) ( VP ( VB bring ) ( PRT ( RP down ) ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN dollar ) ) ) ) ( PP-MNR ( IN through ) ( NP ( NP ( NN intervention ) ) ( PP ( IN in ) ( NP ( JJ foreign-exchange ) ( NNS markets ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( DT the ) ( NNP Treasury ) ) ( VP ( VBZ is ) ( VP ( VBN frustrated ) ( PP-CLR ( IN at ) ( NP ( NP ( DT the ) ( NNP Fed ) ( POS 's ) ) ( NN reluctance ) ( S ( VP ( TO to ) ( VP ( VB cut ) ( NP ( NN interest ) ( NNS rates ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB pull ) ( PRT ( RP down ) ) ( NP ( NP ( DT the ) ( NN dollar ) ( POS 's ) ) ( NN value ) ) ) ) ) ) ) ) ) ) ) ) ) )

But the Fed is n't enthusiastic about Treasury efforts to bring down the value of the dollar through intervention in foreign-exchange markets and the Treasury is frustrated at the Fed 's reluctance to cut interest rates to pull down the dollar 's value


( S ( NP-SBJ ( NNP Mr. ) ( NNP Greenspan ) ) ( VP ( VBD said ) ( SBAR ( S ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN inflation ) ( NN rate ) ) ( PRN ( ADVP-TMP ( RB currently ) ) ( NP ( QP ( IN about ) ( CD 4 ) ( CD 1\/2 ) ) ( NN % ) ) ) ) ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN brought ) ( PRT ( RP down ) ) ( PP-DIR ( TO to ) ( NP ( NP ( NNS levels ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBP are ) ( ADJP-PRD ( JJ close ) ( PP ( TO to ) ( NP ( CD zero ) ) ) ) ) ) ) ) ) ( PP ( IN without ) ( S-NOM ( VP ( VBG putting ) ( NP ( DT the ) ( NN economy ) ) ( PP-PUT ( IN into ) ( NP ( DT a ) ( NN recession ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( VP ( VB suspect ) ( SBAR ( IN that ) ( S ( NP-SBJ ( EX there ) ) ( VP ( MD might ) ( VP ( VB be ) ( NP-PRD ( NP ( DT some ) ( JJ modest ) ( NN loss ) ) ( PP ( IN of ) ( NP ( JJ economic ) ( NN output ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Greenspan said the inflation rate currently about 4 1\/2 % could be brought down to levels which are close to zero without putting the economy into a recession but I do suspect that there might be some modest loss of economic output


( S ( PP ( IN In ) ( NP ( JJ other ) ( NNS words ) ) ) ( S ( NP-SBJ ( JJ economic ) ( NN growth ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJR lower ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NN unemployment ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJR higher ) ) ) ) ) ( PP-TMP ( IN for ) ( NP ( DT a ) ( JJ few ) ( NNS years ) ) ) )

In other words economic growth would be lower and unemployment would be higher for a few years


( S ( CC But ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Greenspan ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBZ has ) ( ADVP-TMP ( RB repeatedly ) ) ( VP ( VBN said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NNP Fed ) ( POS 's ) ) ( NN goal ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB reduce ) ( NP ( NN inflation ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD added ) ( SBAR ( IN that ) ( S ( SBAR-NOM-SBJ-4 ( WHNP-3 ( WDT whatever ) ( NNS losses ) ) ( S ( VP ( VBP are ) ( VP ( VBN incurred ) ( PP-CLR ( IN in ) ( NP ( NP ( DT the ) ( NN pursuing ) ) ( PP ( IN of ) ( NP ( NN price ) ( NN stability ) ) ) ) ) ) ) ) ) ( VP ( MD would ) ( ADVP ( RB surely ) ) ( VP ( VB be ) ( ADVP ( JJR more ) ( IN than ) ) ( VP ( VBN made ) ( PRT ( RP up ) ) ( PP-CLR ( IN in ) ( NP ( VBN increased ) ( NN output ) ) ) ( ADVP-TMP ( RB thereafter ) ) ) ) ) ) ) ) )

But Mr. Greenspan who has repeatedly said the Fed 's goal is to reduce inflation added that whatever losses are incurred in the pursuing of price stability would surely be more than made up in increased output thereafter


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD warned ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Fed ) ( NNS efforts ) ( S ( VP ( TO to ) ( VP ( VB conquer ) ( NP ( NN inflation ) ) ) ) ) ) ( VP ( VP ( MD would ) ( VP ( VB fail ) ) ) ( PRN ( CC and ) ( VP ( MD could ) ( VP ( VB produce ) ( NP ( DT a ) ( JJ major ) ( JJ financial ) ( NN crunch ) ) ) ) ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBN accompanied ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( JJ significant ) ( NN reduction ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJ federal ) ( NN deficit ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ causes ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( TO to ) ( VP ( VB borrow ) ( ADVP-MNR ( RB heavily ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

He warned that Fed efforts to conquer inflation would fail and could produce a major financial crunch unless they are accompanied by a significant reduction in the federal deficit which causes the government to borrow heavily


( S ( NP-SBJ ( NP ( NNP Rep. ) ( NNP Neal ) ( POS 's ) ) ( NN bill ) ) ( ADVP ( RB originally ) ) ( VP ( VBD called ) ( PP-CLR ( IN on ) ( NP-1 ( DT the ) ( NNP Fed ) ) ) ( S ( VP ( VP ( TO to ) ( VP ( VB reduce ) ( NP ( DT the ) ( NN inflation ) ( NN rate ) ) ( PP-EXT ( IN by ) ( NP ( NP ( CD one ) ( NN percentage ) ( NN point ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ) ( PP-TMP ( IN for ) ( NP ( CD five ) ( NNS years ) ) ) ) ) ( CC and ) ( VP ( TO to ) ( VP ( VB maintain ) ( NP ( DT a ) ( CD zero ) ( NN inflation ) ( NN rate ) ) ( ADVP-TMP ( RB thereafter ) ) ) ) ) ) ) )

Rep. Neal 's bill originally called on the Fed to reduce the inflation rate by one percentage point a year for five years and to maintain a zero inflation rate thereafter


( S ( NP-SBJ-1 ( PRP He ) ) ( VP ( VBD altered ) ( NP ( DT the ) ( NN wording ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB win ) ( NP ( NP ( NNP Mr. ) ( NNP Greenspan ) ( POS 's ) ) ( NN endorsement ) ) ) ) ) ) )

He altered the wording to win Mr. Greenspan 's endorsement


( S ( ADVP ( RB Even ) ( RB so ) ) ( NP-SBJ-1 ( PRP$ his ) ( NN bill ) ) ( VP ( VBZ is ) ( VP ( VBN given ) ( NP ( NP ( JJ little ) ( NN chance ) ) ( PP ( IN of ) ( NP ( NN passage ) ) ) ) ) ) )

Even so his bill is given little chance of passage


( S ( NP-SBJ-2 ( NNP Reps. ) ( NNP Hamilton ) ( CC and ) ( NNP Dorgan ) ) ( ADVP ( RB also ) ) ( VP ( VBP have ) ( VP ( VBN altered ) ( NP ( PRP$ their ) ( NN bill ) ) ( S-ADV ( VP ( VBG dropping ) ( NP ( DT a ) ( NN proposal ) ( S ( VP ( TO to ) ( VP ( VB add ) ( NP ( DT the ) ( NNP Treasury ) ( NN secretary ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ 12-member ) ( NNP Fed ) ( NN committee ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ makes ) ( NP ( JJ monetary ) ( NN policy ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Reps. Hamilton and Dorgan also have altered their bill dropping a proposal to add the Treasury secretary to the 12-member Fed committee that makes monetary policy


( S ( ADVP ( RB Instead ) ) ( NP-SBJ ( DT the ) ( NN bill ) ) ( ADVP ( RB simply ) ) ( VP ( VBZ calls ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ twice-a-year ) ( NNS meetings ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NN committee ) ) ( CC and ) ( NP ( JJ top ) ( NN administration ) ( NNS officials ) ) ) ) ) ) ) )

Instead the bill simply calls for twice-a-year meetings between the committee and top administration officials


( S ( NP-SBJ ( RB Even ) ( DT that ) ) ( VP ( VBD met ) ( PP-CLR ( IN with ) ( NP ( NP ( NNP Mr. ) ( NNP Greenspan ) ( POS 's ) ) ( NN disapproval ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VP ( MD might ) ( VP ( VB subject ) ( NP ( DT the ) ( NNP Fed ) ) ( PP-CLR ( TO to ) ( NP ( DT a ) ( ADJP ( ADVP ( RBR more ) ( RB intensely ) ) ( JJ political ) ) ( NN perspective ) ) ) ) ) ( CC and ) ( VP ( MD could ) ( VP ( VB risk ) ( S ( VP ( VBG bending ) ( NP ( JJ monetary ) ( NN policy ) ) ( ADVP-DIR ( RB away ) ( PP ( IN from ) ( NP ( JJ long-term ) ( JJ strategic ) ( NNS goals ) ) ) ) ) ) ) ) ) ) ) ) )

Even that met with Mr. Greenspan 's disapproval because it might subject the Fed to a more intensely political perspective and could risk bending monetary policy away from long-term strategic goals


( S ( S-TPC-1 ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NP ( DT each ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Hamilton-Dorgan ) ( NNS proposals ) ) ) ) ( VP ( VBZ represents ) ( NP ( RB only ) ( DT a ) ( JJ small ) ( NN step ) ) ) ) ) ( ADVP ( RB together ) ) ( NP-SBJ ( PRP they ) ) ( VP ( MD would ) ( VP ( VB erode ) ( NP ( NP ( DT the ) ( NNP Fed ) ( POS 's ) ) ( NN independence ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Greenspan ) ) ( VP ( VBD said ) ) )

While each of the Hamilton-Dorgan proposals represents only a small step together they would erode the Fed 's independence Mr. Greenspan said


( S ( NP-SBJ ( NNP Mr. ) ( NNP Greenspan ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( SBAR-ADV ( IN although ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ favors ) ( S ( VP ( VBG cutting ) ( NP ( NNS capital-gains ) ( NNS taxes ) ) ( PP ( IN as ) ( NP ( JJ sound ) ( JJ economic ) ( NN policy ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( MD would ) ( VP ( VB oppose ) ( NP ( PDT such ) ( DT a ) ( NN move ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VP ( VB undo ) ( NP ( NP ( DT the ) ( JJ political ) ( NN compromise ) ) ( VP ( VBN embodied ) ( PP-CLR ( IN in ) ( NP ( NP ( DT the ) ( NNP Tax ) ( NNP Reform ) ( NNP Act ) ) ( PP ( IN of ) ( NP ( CD 1986 ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VB result ) ( PP-CLR ( IN in ) ( NP ( JJR higher ) ( JJ marginal ) ( NN income ) ( NN tax ) ( NNS rates ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Greenspan also said that although he favors cutting capital-gains taxes as sound economic policy he would oppose such a move if it would undo the political compromise embodied in the Tax Reform Act of 1986 and result in higher marginal income tax rates


( S ( S ( NP-SBJ ( JJ Many ) ( JJ small ) ( NNS investors ) ) ( VP ( VBP are ) ( VP ( VBG facing ) ( NP ( DT a ) ( JJ double ) ( NN whammy ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ( S ( S ( NP-SBJ-1 ( PRP They ) ) ( VP ( VBD got ) ( VP ( VBN hurt ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG investing ) ( PP-CLR ( IN in ) ( NP ( DT the ) ( ADJP ( RB highly ) ( JJ risky ) ) ( NN junk ) ( NN bond ) ( NN market ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NN pain ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJR worse ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD did ) ( NP ( PRP it ) ) ( PP-MNR ( IN with ) ( NP ( VBN borrowed ) ( NN money ) ) ) ) ) ) ) ) ) )

Many small investors are facing a double whammy this year They got hurt by investing in the highly risky junk bond market and the pain is worse because they did it with borrowed money


( S ( NP-SBJ ( DT These ) ( NNS people ) ) ( VP ( VBD invested ) ( PP-CLR ( IN in ) ( NP ( NP ( JJ leveraged ) ( NN junk ) ( NN bond ) ( JJ mutual ) ( NNS funds ) ) ( NP ( NP ( DT the ) ( RB publicly ) ( VBN traded ) ( NNS funds ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP make ) ( NP ( NP ( DT a ) ( NN habit ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG taking ) ( PRT ( RP out ) ) ( NP ( NNS loans ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB buy ) ( NP ( JJ extra ) ( NN junk ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

These people invested in leveraged junk bond mutual funds the publicly traded funds that make a habit of taking out loans to buy extra junk


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( DT a ) ( JJ good ) ( NN strategy ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( VBG rising ) ( NN market ) ) ( SBAR ( WHADVP-1 ( WRB where ) ) ( S ( NP-SBJ ( DT a ) ( ADJP ( CD 25 ) ( NN % ) ) ( JJ leveraged ) ( NN portfolio ) ) ( PP ( IN in ) ( NP ( NN effect ) ) ) ( VP ( VBZ allows ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( TO to ) ( VP ( VB have ) ( S ( NP-SBJ ( NP ( CD 125 ) ( NN % ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NN money ) ) ) ) ( VP ( VBG working ) ( PP ( IN for ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It 's a good strategy in a rising market where a 25 % leveraged portfolio in effect allows investors to have 125 % of their money working for them


( S ( NP-SBJ-1 ( DT The ) ( NN strategy ) ) ( VP ( VBZ boosts ) ( NP ( JJ current ) ( NN yield ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG putting ) ( NP ( JJR more ) ( NNS bonds ) ) ( PP-PUT ( IN into ) ( NP ( DT the ) ( NN portfolio ) ) ) ) ) ) ) )

The strategy boosts current yield by putting more bonds into the portfolio


( S ( NP-SBJ ( NN Trouble ) ) ( VP ( VBZ is ) ( SBAR-PRD ( S ( NP-SBJ ( NN junk ) ( NN bond ) ( NNS prices ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( ADJP-PRD ( JJ weak ) ) ( PP-TMP ( IN for ) ( NP ( NNS months ) ) ) ) ) ) ) ) )

Trouble is junk bond prices have been weak for months


( S ( ADVP ( RB Thus ) ) ( NP-SBJ ( DT the ) ( NN leverage ) ) ( VP ( VBZ has ) ( VP ( VBN amplified ) ( NP ( NP ( DT the ) ( NNS funds ) ( POS ' ) ) ( NN portfolio ) ( NNS losses ) ) ) ) )

Thus the leverage has amplified the funds ' portfolio losses


( S ( CC And ) ( NP-SBJ-1 ( NP ( NNS shares ) ) ( PP ( IN of ) ( NP ( JJ leveraged ) ( NN junk ) ( NNS funds ) ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBN clobbered ) ( ADVP-MNR ( ADVP ( RB even ) ( RBR harder ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( NN junk ) ( NNS bonds ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP hold ) ) ) ) ) ) ) ) ) ) )

And shares of leveraged junk funds this year have been clobbered even harder than the junk bonds they hold


( SINV ( S-TPC-3 ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( ADVP ( RB really ) ) ( SBAR-LOC-PRD ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ ( DT the ) ( NN leverage ) ) ( VP ( VBD hurt ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NP ( NNP Thomas ) ( NNP Herzfeld ) ) ) ( NP ( NP ( DT a ) ( JJ Miami-based ) ( NN investment ) ( NN manager ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ specializes ) ( PP-CLR ( IN in ) ( NP ( JJ closed-end ) ( NNS funds ) ) ) ) ) ) ) ) )

That 's really where the leverage hurt says Thomas Herzfeld a Miami-based investment manager who specializes in closed-end funds


( S ( S-TPC-1 ( NP-SBJ ( NN Share ) ( NNS prices ) ) ( VP ( VBD performed ) ( ADVP-MNR ( ADVP ( RB even ) ( RBR worse ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( NNS funds ) ( POS ' ) ) ( NN asset ) ( NNS values ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NN fear ) ) ( VP ( VBZ has ) ( VP ( VBN taken ) ( NP ( NN hold ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN junk ) ( NN market ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

Share prices performed even worse than the funds ' asset values because fear has taken hold in the junk market he says


( S ( NP-SBJ ( NN Leverage ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB never ) ) ( NP-PRD ( DT a ) ( NN problem ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ traditional ) ( JJ open ) ( NN end ) ( JJ mutual ) ( NNS funds ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VP ( VBP are ) ( RB n't ) ( ADVP-MNR ( RB publicly ) ) ( VP ( VBN traded ) ) ) ( CC and ) ( VP ( VBP are ) ( RB n't ) ( VP ( VBN allowed ) ( S ( VP ( TO to ) ( VP ( VB use ) ( NP ( NN leverage ) ) ( ADVP ( IN at ) ( DT all ) ) ) ) ) ) ) ) ) ) ) ) ) )

Leverage is never a problem for the traditional open end mutual funds which are n't publicly traded and are n't allowed to use leverage at all


( S ( NP-SBJ-1 ( NN Leverage ) ) ( VP ( VBZ is ) ( VP ( VBN used ) ( ADVP ( RB only ) ) ( PP ( IN by ) ( NP-LGS ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ closed-end ) ( NNS funds ) ) ) ) ) ) ) )

Leverage is used only by some of the closed-end funds


( S ( NP-SBJ ( DT The ) ( JJ usual ) ( NN maneuver ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VP ( VB borrow ) ( PP ( IN against ) ( NP ( DT the ) ( NN portfolio ) ( NN value ) ) ) ) ( CC or ) ( VP ( VB issue ) ( NP ( VBN preferred ) ( NN stock ) ) ) ( S-ADV ( VP ( VBG using ) ( NP ( DT the ) ( NNS proceeds ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB buy ) ( NP ( JJ additional ) ( NNS bonds ) ) ) ) ) ) ) ) ) ) ) )

The usual maneuver is to borrow against the portfolio value or issue preferred stock using the proceeds to buy additional bonds


( S ( NP-SBJ ( NP ( DT The ) ( NN fallout ) ) ( PP ( IN for ) ( NP ( NNS investors ) ) ) ) ( ADVP-TMP ( RB lately ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( ADJP-PRD ( JJ painful ) ) ) ) )

The fallout for investors lately has been painful


( S ( VP ( VB Consider ) ( NP ( DT the ) ( NNP New ) ( NNP America ) ( NNP High ) ( NNP Income ) ( NNP Fund ) ) ) )

Consider the New America High Income Fund


( S ( PP ( IN With ) ( NP ( NP ( DT a ) ( JJ leveraged ) ( NN position ) ) ( PP ( IN of ) ( NP ( QP ( IN about ) ( CD 45 ) ) ( NN % ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN fund ) ( POS 's ) ) ( NN share ) ( NN price ) ) ( VP ( VBZ has ) ( VP ( VBN plunged ) ( NP-EXT ( CD 28.5 ) ( NN % ) ) ( ADVP-TMP ( RB so ) ( RB far ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) )

With a leveraged position of about 45 % the fund 's share price has plunged 28.5 % so far this year


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( ADJP ( JJR worse ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( NN price ) ( NN drop ) ) ( VP ( VBN sustained ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NNS bonds ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( NN portfolio ) ) ) ( SBAR ( WHNP-1 ( WHNP ( WP$ whose ) ( JJ total ) ( NN return ) ) ( PRN ( NP ( NP ( JJ bond-price ) ( NNS changes ) ) ( CC plus ) ( NP ( NN interest ) ) ) ) ) ( S ( VP ( VBZ has ) ( VP ( VBN amounted ) ( PP-CLR ( TO to ) ( NP ( DT a ) ( JJ negative ) ( CD 6.08 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

That 's worse than the price drop sustained by the bonds in its portfolio whose total return bond-price changes plus interest has amounted to a negative 6.08 %


( S ( NP-SBJ ( JJ Such ) ( NNS problems ) ) ( VP ( MD may ) ( RB not ) ( VP ( VB be ) ( ADVP-PRD ( IN over ) ) ) ) )

Such problems may not be over


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( JJ Leveraged ) ( NNS funds ) ) ( PP ( IN in ) ( ADJP ( JJ particular ) ) ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB still ) ) ( ADJP-PRD ( RB extremely ) ( JJ vulnerable ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( ADVP-TMP ( RB still ) ) ( PP-LOC-PRD ( IN at ) ( NP ( NP ( DT the ) ( NN beginning ) ) ( PP ( IN of ) ( NP ( NP ( NNS problems ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN junk ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP George ) ( NNP Foot ) ) ( NP ( NP ( DT a ) ( VBG managing ) ( NN partner ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Newgate ) ( NNP Management ) ( NNPS Associates ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Northampton ) ) ( NP ( NNP Mass ) ) ) ) ) ) ) ) )

Leveraged funds in particular are still extremely vulnerable because we 're still at the beginning of problems in the junk market says George Foot a managing partner at Newgate Management Associates in Northampton Mass


( S ( NP-SBJ ( JJ Many ) ( NNS investors ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ unaware ) ( SBAR ( S ( NP-SBJ-1 ( PRP$ their ) ( NNS funds ) ) ( VP ( VBP have ) ( VP ( VBN borrowed ) ( S-PRP ( VP ( TO to ) ( VP ( VB speculate ) ( PP-LOC ( IN in ) ( NP ( PDT such ) ( DT a ) ( JJ risky ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) )

Many investors are unaware their funds have borrowed to speculate in such a risky market


( S-3 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NN someone ) ) ( ADVP ( RB actually ) ) ( VP ( VP ( VBD sat ) ( PRT ( IN down ) ) ) ( CC and ) ( VP ( VBD thought ) ( PP-CLR ( IN about ) ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBD were ) ( VP ( VBG being ) ( VP ( VBN sold ) ) ) ) ) ) ) ) ) ) ) ( PRN ( SINV ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Gerald ) ( NNP Perritt ) ) ( NP ( NP ( NN editor ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Mutual ) ( NNP Fund ) ( NNP Letter ) ) ( PP-LOC ( IN in ) ( NP ( NNP Chicago ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( MD might ) ( VP ( VB shy ) ( ADVP-DIR ( RB away ) ) ) ) )

If someone actually sat down and thought about what they were being sold says Gerald Perritt editor of the Mutual Fund Letter in Chicago they might shy away


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( JJ typical ) ( NN leverage ) ( NN strategy ) ) ) ( NP-SBJ-2 ( DT a ) ( NN fund ) ) ( VP ( VBZ tries ) ( S ( VP ( TO to ) ( VP ( VB capture ) ( NP ( NP ( DT the ) ( NN spread ) ) ( PP ( IN between ) ( NP ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ costs ) ( S-CLR ( VP ( TO to ) ( VP ( VB borrow ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( JJR higher ) ( NN return ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NNS bonds ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ buys ) ( PP-MNR ( IN with ) ( NP ( DT the ) ( VBN borrowed ) ( NN money ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a typical leverage strategy a fund tries to capture the spread between what it costs to borrow and the higher return on the bonds it buys with the borrowed money


( S ( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ surges ) ) ) ) ( NP-SBJ ( NNS holders ) ) ( VP ( MD can ) ( VP ( VB make ) ( NP ( ADJP ( ADVP ( IN that ) ( RB much ) ) ( JJR more ) ) ( NN profit ) ) ) ) ) ( S ( NP-SBJ ( DT the ) ( NN leverage ) ) ( VP ( ADVP ( RB effectively ) ) ( VBZ acts ) ( PP-CLR ( IN as ) ( NP ( DT an ) ( JJ interest-free ) ( NN margin ) ( NN account ) ) ) ( PP ( IN for ) ( NP ( NNS investors ) ) ) ) ) )

If the market surges holders can make that much more profit the leverage effectively acts as an interest-free margin account for investors


( S ( CC But ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ moves ) ( PP-CLR ( IN against ) ( NP ( DT the ) ( NN fund ) ) ) ) ) ) ( NP-SBJ ( NNS investors ) ) ( VP ( VBP lose ) ( NP ( NP ( JJR more ) ) ( PP ( IN than ) ( NP ( JJ other ) ( NN junk ) ( NNS holders ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-1 ( DT the ) ( NN market ) ( NN decline ) ) ( VP ( VBZ is ) ( VP ( VBN magnified ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN amount ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN fund ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ leveraged ) ) ) ) ) ) ) ) ) ) ) ) )

But when the market moves against the fund investors lose more than other junk holders because the market decline is magnified by the amount the fund is leveraged


( S ( NP-SBJ ( NN Fund ) ( NNS managers ) ) ( PP ( IN for ) ( NP ( PRP$ their ) ( NN part ) ) ) ( VP ( VBP defend ) ( NP ( NP ( PRP$ their ) ( NN use ) ) ( PP ( IN of ) ( NP ( NN leverage ) ) ) ) ) )

Fund managers for their part defend their use of leverage


( S ( NP-SBJ ( NP ( NNP Carl ) ( NNP Ericson ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ runs ) ( NP ( DT the ) ( NNP Colonial ) ( NNP Intermediate ) ( NNP High ) ( NNP Income ) ( NNP Fund ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN fund ) ( POS 's ) ) ( ADJP ( CD 25 ) ( NN % ) ) ( NN leverage ) ) ( VP ( VBZ has ) ( VP ( VBN jacked ) ( PRT ( RP up ) ) ( NP ( PRP$ its ) ( NN interest ) ( NN income ) ) ) ) ) ) ) )

Carl Ericson who runs the Colonial Intermediate High Income Fund says the fund 's 25 % leverage has jacked up its interest income


( S ( S-TPC-1 ( ADVP-TMP ( ADVP ( RB As ) ( RB long ) ) ( SBAR ( IN as ) ( S ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP am ) ( VP ( VBG borrowing ) ( PP-CLR ( IN at ) ( NP ( CD 9.9 ) ( NN % ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT each ) ( NN bond ) ) ( VP ( VBZ yields ) ( PP-CLR ( IN over ) ( NP ( DT that ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ enhances ) ( NP ( DT the ) ( NN yield ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ maintains ) ) )

As long as I am borrowing at 9.9 % and each bond yields over that it enhances the yield he maintains


( S ( NP-SBJ ( NNP Mr. ) ( NNP Ericson ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBZ tries ) ( S ( VP ( TO to ) ( VP ( VB offset ) ( NP ( DT the ) ( NN leverage ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG diversifying ) ( NP ( NP ( DT the ) ( NN fund ) ( POS 's ) ) ( NN portfolio ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Ericson says he tries to offset the leverage by diversifying the fund 's portfolio


( S ( CC Yet ) ( NP-SBJ ( DT some ) ( NNS funds ) ) ( VP ( VBP have ) ( VP ( VBN pulled ) ( PRT ( RP in ) ) ( NP ( PRP$ their ) ( NNS horns ) ) ) ) )

Yet some funds have pulled in their horns


( S ( NP-SBJ ( NNP New ) ( NNP America ) ( NNP High ) ( NNP Income ) ( NNP Fund ) ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ plans ) ( S ( VP ( TO to ) ( VP ( VB reduce ) ( NP ( PRP$ its ) ( NN leverage ) ( NN position ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG buying ) ( ADVP-CLR ( RB back ) ) ( NP ( NP ( QP ( CD 5 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( VBN preferred ) ( NN stock ) ( CC and ) ( NNS notes ) ) ) ) ( PP-CLR ( IN from ) ( NP ( NNS investors ) ) ) ) ) ) ) ) ) ) ) ) ) )

New America High Income Fund recently said that it plans to reduce its leverage position by buying back 5 million in preferred stock and notes from investors


( S ( NP-SBJ ( DT The ) ( NN fund ) ) ( VP ( VBD made ) ( NP ( DT a ) ( JJ similar ) ( NN move ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ) )

The fund made a similar move earlier this year


( SINV ( S-TPC-1 ( NP-SBJ-2 ( PRP We ) ) ( VP ( VBP are ) ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB increase ) ( NP ( PRP$ our ) ( NN flexibility ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Ellen ) ( NNP E. ) ( NNP Terry ) ) ( NP ( NP ( DT a ) ( NN vice ) ( NN president ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Ostrander ) ( NNP Capital ) ( NNP Management ) ) ( NP ( NP ( DT the ) ( NN fund ) ( POS 's ) ) ( NN investment ) ( NN adviser ) ) ) ) ) ) )

We are trying to increase our flexibility says Ellen E. Terry a vice president at Ostrander Capital Management the fund 's investment adviser


( S ( NP-SBJ-1 ( PRP She ) ) ( VP ( VP ( VBD declined ) ( S ( VP ( TO to ) ( VP ( VB elaborate ) ) ) ) ) ( CC and ) ( VP ( MD would ) ( RB n't ) ( VP ( VB disclose ) ( NP ( NP ( DT the ) ( NN fund ) ( POS 's ) ) ( JJ recent ) ( NNS purchases ) ( NNS sales ) ( CC or ) ( NN cash ) ( NN position ) ) ) ) ) )

She declined to elaborate and would n't disclose the fund 's recent purchases sales or cash position


( S ( NP-SBJ ( NNP Ms. ) ( NNP Terry ) ) ( VP ( VBD did ) ( VP ( VB say ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN fund ) ( POS 's ) ) ( JJ recent ) ( NN performance ) ) ( VP ( VBZ illustrates ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( VP ( VBZ happens ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( JJ leveraged ) ( NN product ) ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB cooperate ) ) ) ) ) ) ) ) ) ) ) ) ) )

Ms. Terry did say the fund 's recent performance illustrates what happens in a leveraged product when the market does n't cooperate


( S-2 ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ turns ) ( PRT ( RP around ) ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP she ) ) ( VP ( VBZ says ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB give ) ( NP ( NP ( DT a ) ( JJ nice ) ( NN picture ) ) ( PP ( IN of ) ( SBAR ( WHADVP-3 ( WRB how ) ) ( S ( NP-SBJ ( NN leverage ) ) ( VP ( MD can ) ( VP ( VB help ) ( NP ( NN performance ) ) ) ) ) ) ) ) ) ) )

When the market turns around she says it will give a nice picture of how leverage can help performance


( S ( S-TPC-4 ( NP-SBJ-3 ( JJ Several ) ( NN leveraged ) ( NNS funds ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB want ) ( S ( VP ( TO to ) ( VP ( VB cut ) ( NP ( NP ( DT the ) ( NN amount ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP borrow ) ) ) ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB slash ) ( NP ( NP ( DT the ) ( NN income ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP pay ) ( NP ( NNS shareholders ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NN fund ) ( NNS officials ) ) ( VP ( VBD said ) ) )

Several leveraged funds do n't want to cut the amount they borrow because it would slash the income they pay shareholders fund officials said


( S ( CC But ) ( NP-SBJ ( DT a ) ( JJ few ) ( NNS funds ) ) ( VP ( VBP have ) ( VP ( VBN taken ) ( NP ( JJ other ) ( JJ defensive ) ( NNS steps ) ) ) ) )

But a few funds have taken other defensive steps


( S ( NP-SBJ ( DT Some ) ) ( VP ( VBP have ) ( VP ( VBN raised ) ( NP ( PRP$ their ) ( NN cash ) ( NNS positions ) ) ( PP-DIR ( TO to ) ( NP ( NN record ) ( NNS levels ) ) ) ) ) )

Some have raised their cash positions to record levels


( S ( NP-SBJ-2 ( JJ High ) ( NN cash ) ( NNS positions ) ) ( VP ( VBP help ) ( S ( VP ( VB buffer ) ( NP ( DT a ) ( NN fund ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ falls ) ) ) ) ) ) ) )

High cash positions help buffer a fund when the market falls


( SINV ( S-TPC-2 ( NP-SBJ ( NNP Prospect ) ( NNP Street ) ( NNP High ) ( NNP Income ) ( NNP Portfolio ) ) ( PP ( IN for ) ( NP ( NN instance ) ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ holds ) ( NP ( NP ( NP ( QP ( IN about ) ( CD 15 ) ) ( NN % ) ) ( PP ( IN in ) ( NP ( NN cash ) ( CC and ) ( NNS equivalents ) ) ) ) ( NP ( NP ( QP ( RB nearly ) ( RB quintuple ) ) ( DT the ) ( NN amount ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD held ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP John ) ( NNP Frabotta ) ) ( NP ( NN portfolio ) ( NN co-manager ) ) ) )

Prospect Street High Income Portfolio for instance now holds about 15 % in cash and equivalents nearly quintuple the amount it held earlier this year says John Frabotta portfolio co-manager


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN fund ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( ADJP ( CD 40 ) ( NN % ) ) ( NN leveraged ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN maintained ) ( NP ( NP ( DT a ) ( JJ substantial ) ( NN cushion ) ) ( PP ( IN between ) ( NP ( NP ( PRP$ its ) ( VBG borrowing ) ( NNS costs ) ) ( CC and ) ( NP ( NP ( DT the ) ( NNS yields ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN portfolio ) ( POS 's ) ) ( NNS bonds ) ) ) ) ) ) ) ) ) ) ) ) )

He says the fund which is 40 % leveraged has maintained a substantial cushion between its borrowing costs and the yields of the portfolio 's bonds


( S ( S-TPC-2 ( NP-SBJ-1 ( PRP I ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB want ) ( S ( VP ( TO to ) ( VP ( VB be ) ( PP-LOC-PRD ( IN in ) ( NP ( NP ( DT a ) ( NN position ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB sell ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Frabotta ) ) ( VP ( VBZ says ) ) )

I do n't want to be in a position to have to sell Mr. Frabotta says


( S ( NP-SBJ-1 ( JJ Other ) ( NNS funds ) ) ( VP ( VBP have ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBN sold ) ( NP ( JJ weak ) ( NN junk ) ( NNS bonds ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB raise ) ( NP ( NN cash ) ) ) ) ) ) ) )

Other funds have recently sold weak junk bonds to raise cash


( S ( PP-LOC ( IN At ) ( NP ( DT the ) ( JJ 50%-leveraged ) ( NNP Zenith ) ( NNP Income ) ( NNP Fund ) ) ) ( NP-SBJ-1 ( NN portfolio ) ( NN manager ) ( NNP John ) ( NNP Bianchi ) ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBD dumped ) ( NP ( NP ( NNP Mesa ) ( NNP Petroleum ) ) ( NP ( NNP Wickes ) ) ( CC and ) ( NP ( NNP Horsehead ) ( NNPS Industries ) ) ) ( PP ( IN among ) ( NP ( NNS others ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB raise ) ( NP ( PRP$ his ) ( NN cash ) ( NN position ) ) ( PP-DIR ( TO to ) ( NP ( DT a ) ( NN record ) ( CD 15 ) ( NN % ) ) ) ) ) ) ) )

At the 50%-leveraged Zenith Income Fund portfolio manager John Bianchi recently dumped Mesa Petroleum Wickes and Horsehead Industries among others to raise his cash position to a record 15 %


( S ( S-TPC-1 ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( NP-PRD ( DT a ) ( NN problem ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NN cash ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG earning ) ( NP ( PRP us ) ) ( NP ( ADJP ( RB very ) ( JJ much ) ) ( NN money ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Bianchi ) ) ( VP ( VBZ says ) ) )

That 's a problem because cash is n't earning us very much money Mr. Bianchi says


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ concedes ) ( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ difficult ) ) ( NN market ) ) ( SBAR ( WHNP-2 ( IN that ) ) ( S ( NP-SBJ-1 ( PRP I ) ) ( VP ( VBP 've ) ( VP ( VBN been ) ( VP ( VBN involved ) ( PP-CLR ( IN in ) ) ) ) ) ) ) ) ) ) ) )

He concedes This is the most difficult market that I 've been involved in


( S ( PP-PRP ( IN Because ) ( IN of ) ( NP ( DT the ) ( JJ recent ) ( NN junk-market ) ( NN turmoil ) ) ) ( NP-SBJ-1 ( DT the ) ( NN fund ) ) ( VP ( VBZ is ) ( VP ( VBG considering ) ( S ( VP ( VBG investing ) ( PP-CLR ( IN in ) ( NP ( NP ( JJ other ) ( NNS issues ) ) ( ADVP ( RB instead ) ) ( PP ( VBG including ) ( NP ( JJ mortgage-backed ) ( NNS bonds ) ) ) ) ) ) ) ) ) )

Because of the recent junk-market turmoil the fund is considering investing in other issues instead including mortgage-backed bonds


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP 're ) ( VP ( VBG looking ) ( PP-CLR ( IN at ) ( NP ( DT the ) ( NN leverage ) ( NN factor ) ) ) ( NP-TMP ( DT every ) ( NN day ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Robert ) ( NNP Moore ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP Bernstein-Macaulay ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( NNP Shearson ) ( NNP Lehman ) ( NNP Hutton ) ( NNP Inc. ) ( NN unit ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN fund ) ( POS 's ) ) ( NN adviser ) ) ) ) ) ) ) )

We 're looking at the leverage factor every day says Robert Moore president of Bernstein-Macaulay Inc. a Shearson Lehman Hutton Inc. unit and the fund 's adviser


( S ( PP-TMP ( IN At ) ( NP ( DT some ) ( NN point ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-1 ( PRP we ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ unable ) ( S ( VP ( TO to ) ( VP ( VB cover ) ( NP ( PRP$ our ) ( JJ leveraged ) ( NN cost ) ) ) ) ) ) ) ) ) ( PRN ( CC and ) ( PP-TMP ( IN at ) ( NP ( DT the ) ( NN moment ) ) ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( PP-LOC-PRD ( ADVP ( JJ right ) ) ( IN on ) ( NP ( PRP it ) ) ) ) ) ) ( NP-SBJ-2 ( PRP we ) ) ( VP ( VBP 're ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( DT a ) ( NN move ) ) ) ) ) ) ) ) ) ) )

At some point if we are unable to cover our leveraged cost and at the moment we 're right on it we 're going to have to make a move


( S ( NP-SBJ ( NP ( DT Some ) ) ( PP ( IN of ) ( NP ( NP ( NNP America ) ( POS 's ) ) ( JJS biggest ) ( VBG trading ) ( NNS partners ) ) ) ) ( VP ( VBD gave ) ( NP ( DT a ) ( JJ quick ) ( NN thumbs-down ) ) ( PP-DTV ( TO to ) ( NP ( DT a ) ( NNP U.S. ) ( NN proposal ) ( S ( VP ( TO to ) ( VP ( VP ( VB liberalize ) ( NP ( NN world ) ( NN trade ) ) ) ( CC and ) ( VP ( VB reduce ) ( NP ( NN farm-product ) ( NNS subsidies ) ) ) ) ) ) ) ) ) )

Some of America 's biggest trading partners gave a quick thumbs-down to a U.S. proposal to liberalize world trade and reduce farm-product subsidies


( S ( PP-LOC ( IN In ) ( NP ( NP ( NNP Geneva ) ) ( SBAR ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ-1 ( NN world ) ( NN trade ) ( NNS talks ) ) ( VP ( VBP are ) ( VP ( VBG being ) ( VP ( VBN held ) ( PP-LOC ( IN under ) ( NP ( NP ( NP ( DT the ) ( NNP General ) ( NNP Agreement ) ) ( PP ( IN on ) ( NP ( NNPS Tariffs ) ( CC and ) ( NNP Trade ) ) ) ) ( CC or ) ( NP ( NNP GATT ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNP European ) ( NNP Community ) ) ( VP ( VBD called ) ( S ( NP-SBJ ( DT the ) ( NNP U.S. ) ( NN proposal ) ) ( NP-PRD ( NP ( DT a ) ( NN step ) ) ( ADVP ( RB backward ) ) ) ) ) )

In Geneva where world trade talks are being held under the General Agreement on Tariffs and Trade or GATT the European Community called the U.S. proposal a step backward


( S ( CC And ) ( NP-SBJ ( NP ( NP ( NNP Japan ) ( POS 's ) ) ( NN minister ) ) ( PP ( IN of ) ( NP ( NN agriculture ) ( NN forestry ) ( CC and ) ( NNS fisheries ) ) ) ) ( VP ( VBD told ) ( NP ( NP ( DT a ) ( NN committee ) ) ( PP ( IN of ) ( NP ( NP ( NNP Japan ) ( POS 's ) ) ( NN parliament ) ) ) ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNP Washington ) ( POS 's ) ) ( NN proposal ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ impractical ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NNP Tokyo ) ) ( VP ( MD would ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( ADVP-MNR ( RB heavily ) ) ( VP ( VB subsidize ) ( NP ( PRP$ its ) ( NN rice ) ( NNS farmers ) ) ) ) ) ) ) ) ) ) ) )

And Japan 's minister of agriculture forestry and fisheries told a committee of Japan 's parliament that Washington 's proposal was impractical and that Tokyo would continue to heavily subsidize its rice farmers


( S ( NP-SBJ ( DT The ) ( NNP U.S. ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( JJ far-reaching ) ( NN plan ) ) ( VP ( VBN submitted ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NNP Geneva ) ( NN meeting ) ) ) ( NP-TMP ( NNP Tuesday ) ) ) ) ) ( VP ( VBD proposed ) ( S ( VP ( VP ( VBG curbing ) ( NP ( NN price ) ( NN support ) ( NNS subsidies ) ) ( PP-TMP ( IN within ) ( NP ( CD 10 ) ( NNS years ) ) ) ) ( CC and ) ( VP ( VBG eliminating ) ( NP ( NN export ) ( NNS subsidies ) ) ( PP-TMP ( IN within ) ( NP ( CD five ) ( NNS years ) ) ) ) ) ) ) )

The U.S. in a far-reaching plan submitted to the Geneva meeting Tuesday proposed curbing price support subsidies within 10 years and eliminating export subsidies within five years


( S ( NP-SBJ ( NNP U.S. ) ( NNS officials ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN plan ) ) ( VP ( VP ( VBD was ) ( ADJP-PRD ( JJ flexible ) ) ) ( CC and ) ( VP ( VBD was ) ( VP ( VBN intended ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( JJ pragmatic ) ( NN approach ) ) ( PP ( IN for ) ( S-NOM ( VP ( ADVP-MNR ( RB gradually ) ) ( VBG removing ) ( NP ( JJ trade-distorting ) ( NNS subsidies ) ) ) ) ) ) ) ) ) ) ) ) ) )

U.S. officials said the plan was flexible and was intended as a pragmatic approach for gradually removing trade-distorting subsidies


( S ( CC But ) ( NP-SBJ-1 ( DT the ) ( NNP EC ) ) ( VP ( VBD reacted ) ( ADVP-MNR ( RB defiantly ) ) ( S-ADV ( VP ( VBG arguing ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN proposal ) ( POS 's ) ) ( JJ main ) ( NN aim ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB destroy ) ( NP ( NP ( DT the ) ( NNP Common ) ( NNP Agricultural ) ( NNP Policy ) ) ( NP ( NP ( DT the ) ( NNP EC ) ( POS 's ) ) ( ADJP ( CD 28 ) ( JJ billion-a-year ) ) ( NN price ) ( NN support ) ( NN program ) ) ) ) ) ) ) ) ) ) ) ) )

But the EC reacted defiantly arguing that the proposal 's main aim is to destroy the Common Agricultural Policy the EC 's 28 billion-a-year price support program


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( JJ American ) ( NN proposal ) ) ( VP ( VBZ is ) ( RB not ) ( NP-PRD ( NP ( DT an ) ( JJ adequate ) ( NN basis ) ) ( PP ( IN for ) ( NP ( NN negotiation ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNP EC ) ) ( VP ( VBD said ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( NN statement ) ) ) ) )

The American proposal is not an adequate basis for negotiation the EC said in a statement


( S ( NP-SBJ ( NNP EC ) ( NNS officials ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBN irked ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP U.S. ) ) ( VP ( VP ( VBZ has ) ( VP ( VBN set ) ( NP ( DT a ) ( JJ specific ) ( NN timetable ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( VP ( VBG insisting ) ( PP-CLR ( IN on ) ( NP ( NP ( NP ( DT the ) ( NN elimination ) ) ( PP ( IN of ) ( NP ( NN export ) ( NNS subsides ) ) ) ) ( RB not ) ( NP ( JJ just ) ( NN reduction ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

EC officials say they are irked that the U.S. has set a specific timetable and is insisting on the elimination of export subsides not just reduction


( S ( NP-SBJ ( NNP EC ) ( NNP Agriculture ) ( NNP Commissioner ) ( NNP Ray ) ( NNP MacSharry ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP U.S. ) ( NN plan ) ) ( VP ( VBZ calls ) ( PP-CLR ( IN into ) ( NP ( NN question ) ) ) ( NP ( NP ( DT the ) ( NN agreement ) ) ( VP ( VBN reached ) ( PP ( IN by ) ( NP-LGS ( NN world ) ( NNS negotiators ) ) ) ( NP-TMP ( JJ last ) ( NNP April ) ) ( PP-LOC ( IN in ) ( NP ( NNP Geneva ) ) ) ) ( VP ( VBG seeking ) ( NP ( NP ( JJ substantial ) ( JJ progressive ) ( NNS reductions ) ) ( PP-LOC ( IN in ) ( NP ( JJ agricultural ) ( NN support ) ( CC and ) ( NN protection ) ) ) ) ) ) ) ) ) ) )

EC Agriculture Commissioner Ray MacSharry said the U.S. plan calls into question the agreement reached by world negotiators last April in Geneva seeking substantial progressive reductions in agricultural support and protection


( S ( NP-SBJ ( NNP U.S. ) ( NNP Deputy ) ( NNP Trade ) ( NNP Representative ) ( NNP Jules ) ( NNP Katz ) ) ( VP ( VBD replied ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN proposal ) ) ( VP ( VBD was ) ( ADJP-PRD ( RB entirely ) ( JJ consistent ) ( PP ( IN with ) ( NP ( DT the ) ( NNP April ) ( NN accord ) ) ) ) ) ) ) ) )

U.S. Deputy Trade Representative Jules Katz replied that the proposal was entirely consistent with the April accord


( S ( NP-SBJ-2 ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBD was ) ( VP ( VBN surprised ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NNP EC ) ( POS 's ) ) ( NN reaction ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG calling ) ( S ( NP-SBJ ( PRP it ) ) ( ADJP-PRD ( ADJP ( JJ vehement ) ) ( ADJP ( RB even ) ( JJ frenetic ) ) ) ) ) ) ) )

He said he was surprised by the EC 's reaction calling it vehement even frenetic


( S ( NP-SBJ-1 ( DT The ) ( NNP U.S. ) ( NN proposal ) ) ( ADVP ( RB also ) ) ( VP ( VBD was ) ( VP ( VBN criticized ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ food-importing ) ( VBG developing ) ( NNS countries ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP U.S. ) ) ( VP ( VBD made ) ( NP ( NP ( DT no ) ( JJ special ) ( NNS allowances ) ) ( PP ( IN for ) ( NP ( JJ poor ) ( NNS nations ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The U.S. proposal also was criticized by food-importing developing countries who said that the U.S. made no special allowances for poor nations


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( JJ many ) ( NNS experts ) ) ( VP ( VBP argue ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ food-importing ) ( NNS nations ) ) ( VP ( MD would ) ( ADVP-TMP ( RB eventually ) ) ( VP ( VB become ) ( ADJP-PRD ( JJ self-sufficient ) ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( JJ free-market ) ( NN system ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( JJS poorest ) ( NNS nations ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB need ) ( NP ( NN help ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN meantime ) ) ) ) ) ) ) ) )

While many experts argue that food-importing nations would eventually become self-sufficient in a free-market system the poorest nations are likely to need help in the meantime


( S ( NP-SBJ ( NNP Ambassador ) ( NNP Katz ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP U.S. ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ open ) ( PP ( TO to ) ( S-NOM ( VP ( VBG discussing ) ( NP ( NP ( JJ particular ) ( NNS problems ) ) ( PP ( IN of ) ( NP ( VBG developing ) ( NNS countries ) ) ) ) ) ) ) ) ) ) ) ) )

Ambassador Katz said the U.S. was open to discussing particular problems of developing countries


( S ( NP-SBJ ( DT The ) ( NNP U.S. ) ( NN administration ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ its ) ( NN plan ) ) ( VP ( MD would ) ( VP ( VB allow ) ( NP ( NP ( JJ considerable ) ( NN flexibility ) ) ( PP-LOC ( IN in ) ( S-NOM ( VP ( VBG determining ) ( SBAR ( WHADVP-2 ( WRB how ) ( CC and ) ( WRB when ) ) ( S ( NP-SBJ-1 ( DT the ) ( JJ free-trade ) ( NNS goals ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN achieved ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The U.S. administration said its plan would allow considerable flexibility in determining how and when the free-trade goals would be achieved


( S ( NP-SBJ ( DT The ) ( NNP U.S. ) ) ( VP ( VBZ argues ) ( SBAR ( IN that ) ( S ( NP-SBJ-3 ( PRP$ its ) ( NN plan ) ) ( VP ( MD would ) ( VP ( VB ease ) ( NP ( NP ( DT the ) ( NN transition ) ) ( PP ( TO to ) ( NP ( JJR freer ) ( NN agriculture ) ( NN trade ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG converting ) ( NP ( JJ certain ) ( JJ non-tariff ) ( NNS barriers ) ) ( PP-CLR ( IN into ) ( NP ( NP ( NNS tariffs ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( ADVP ( RB together ) ( PP ( IN with ) ( NP ( VBG existing ) ( NNS tariffs ) ) ) ) ( ADVP-TMP ( RB then ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN phased ) ( PRT ( RP out ) ) ( PP-TMP ( IN over ) ( NP ( CD 10 ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The U.S. argues that its plan would ease the transition to freer agriculture trade by converting certain non-tariff barriers into tariffs that together with existing tariffs then would be phased out over 10 years


( S ( CC But ) ( NP-SBJ ( DT the ) ( NNP EC ) ) ( VP ( VBZ is ) ( VP ( ADVP-MNR ( RB strongly ) ) ( VBN opposed ) ( PP-CLR ( TO to ) ( S-NOM ( VP ( VBG converting ) ( NP ( JJ agricultural ) ( NNS supports ) ) ( PP-CLR ( IN into ) ( NP ( NNS tariffs ) ) ) ) ) ) ) ) )

But the EC is strongly opposed to converting agricultural supports into tariffs


( S ( NP-SBJ ( DT The ) ( JJ new ) ( NNP U.S. ) ( NN package ) ) ( ADVP ( RB also ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NNS countries ) ) ( VP ( MD could ) ( ADVP-TMP ( RB temporarily ) ) ( VP ( VB raise ) ( NP ( NP ( NNS tariffs ) ) ( PP ( IN on ) ( NP ( JJ certain ) ( NNS products ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP experience ) ( NP ( NP ( DT an ) ( ADJP ( RB unusually ) ( JJ heavy ) ) ( NN volume ) ) ( PP ( IN of ) ( NP ( NNS imports ) ) ) ) ) ) ) ) ) ) ) ) )

The new U.S. package also says countries could temporarily raise tariffs on certain products if they experience an unusually heavy volume of imports


( S ( NP-SBJ ( PRP It ) ) ( VP ( MD would ) ( VP ( VB establish ) ( NP ( NP ( NNS procedures ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB prevent ) ( NP-2 ( NNS countries ) ) ( PP-CLR ( IN from ) ( S-NOM ( VP ( VBG using ) ( NP ( NN health ) ( CC and ) ( NN sanitation ) ( NNS rules ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB impede ) ( NP ( NN trade ) ) ( ADVP-MNR ( RB arbitrarily ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It would establish procedures to prevent countries from using health and sanitation rules to impede trade arbitrarily


( S ( S-ADV ( VP ( VBG Seeking ) ( S ( VP ( TO to ) ( VP ( VB allay ) ( NP ( JJ European ) ( NNS concerns ) ) ) ) ) ) ) ( NP-SBJ ( NNP U.S. ) ( NNP Agriculture ) ( NNP Secretary ) ( NNP Clayton ) ( NNP Yeutter ) ) ( VP ( VBD said ) ( PP-LOC ( IN in ) ( NP ( NNP Washington ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( JJ new ) ( NNP U.S. ) ( NN plan ) ) ( VP ( VP ( MD would ) ( RB n't ) ( VP ( VB put ) ( NP ( NNS farmers ) ) ( PP-PUT ( IN out ) ( PP ( IN of ) ( NP ( NN business ) ) ) ) ) ) ( CC but ) ( VP ( MD would ) ( VP ( VB encourage ) ( S ( NP-SBJ ( PRP them ) ) ( VP ( TO to ) ( VP ( VB grow ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( DT the ) ( NNS markets ) ) ( VP ( VBP desire ) ) ) ) ( PP ( RB instead ) ( IN of ) ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( VBZ wants ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Seeking to allay European concerns U.S. Agriculture Secretary Clayton Yeutter said in Washington that the new U.S. plan would n't put farmers out of business but would encourage them to grow what the markets desire instead of what the government wants


( S ( NP-SBJ ( NP ( DT The ) ( NNP EC ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( NN population ) ) ( PP ( IN of ) ( NP ( QP ( CD 320 ) ( CD million ) ) ) ) ) ) ) ( VP ( VBZ has ) ( NP ( QP ( CD 8.5 ) ( CD million ) ) ( NNS farmers ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NP ( DT the ) ( NNP U.S. ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( NN population ) ) ( PP ( IN of ) ( NP ( QP ( IN about ) ( CD 245 ) ( CD million ) ) ) ) ) ) ) ( VP ( VBZ has ) ( NP ( QP ( RB only ) ( CD two ) ( CD million ) ) ( NNS farmers ) ) ) ) ) ) )

The EC with a population of 320 million has 8.5 million farmers while the U.S. with a population of about 245 million has only two million farmers


( S ( NP-SBJ ( NP ( NP ( NNP Japan ) ( POS 's ) ) ( NNS objections ) ) ( PP ( TO to ) ( NP ( DT the ) ( NNP U.S. ) ( NN plan ) ) ) ) ( VP ( VBP center ) ( PP-CLR ( IN around ) ( NP ( PRP$ its ) ( NN desire ) ( S ( VP ( TO to ) ( VP ( VB stay ) ( ADJP-PRD ( JJ self-sufficient ) ( PP ( IN in ) ( NP ( NP ( NN rice ) ) ( NP ( DT a ) ( NN staple ) ( NN food ) ) ) ) ) ( SBAR-ADV ( RB even ) ( IN though ) ( S ( NP-SBJ ( JJ foreign ) ( NNS producers ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADVP ( RB far ) ( RBR more ) ) ( JJ efficient ) ) ) ) ) ) ) ) ) ) ) )

Japan 's objections to the U.S. plan center around its desire to stay self-sufficient in rice a staple food even though foreign producers are far more efficient


( S ( NP-SBJ ( NNP Dominion ) ( NNP Textile ) ( NNP Inc. ) ( NNS holders ) ) ( VP ( VBD adopted ) ( NP ( DT a ) ( JJ shareholder-rights ) ( NN plan ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( JJ annual ) ( NN meeting ) ) ) ) )

Dominion Textile Inc. holders adopted a shareholder-rights plan at the annual meeting


( S ( NP-SBJ ( DT The ) ( JJ so-called ) ( NN poison ) ( NN pill ) ) ( VP ( VBD took ) ( NP-CLR ( NN effect ) ) ( NP-TMP ( NNP Aug. ) ( CD 9 ) ) ( PP ( VBG pending ) ( NP ( NP ( NN ratification ) ) ( PP ( IN by ) ( NP-LGS ( NNS holders ) ) ) ) ) ) )

The so-called poison pill took effect Aug. 9 pending ratification by holders


( S ( NP-SBJ-1 ( NP ( NNS Rights ) ) ( VP ( VBN attached ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ common ) ( NNS shares ) ) ) ) ) ( VP ( VBD were ) ( VP ( VBN issued ) ( SBAR-4 ( WHNP-3 ( WDT that ) ) ( S ( VP ( VBP are ) ( VP ( VBN triggered ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT a ) ( JJ hostile ) ( NN bidder ) ) ( VP ( VBZ acquires ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 20 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Rights attached to the company 's common shares were issued that are triggered if a hostile bidder acquires more than 20 % of the shares outstanding


( S ( SBAR-TMP ( RB Once ) ( S ( VP ( VBN triggered ) ) ) ) ( NP-SBJ-1 ( DT the ) ( NNS rights ) ) ( VP ( VBP allow ) ( S ( NP-SBJ ( NNS holders ) ) ( VP ( VP ( TO to ) ( VP ( VB buy ) ( NP ( JJ additional ) ( NNS shares ) ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 50 ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( ADJP ( RB then ) ( JJ current ) ) ( NN market ) ( NN price ) ) ) ) ) ) ) ( CC or ) ( VP ( PP ( IN at ) ( NP ( NP ( DT the ) ( NN board ) ( POS 's ) ) ( NN discretion ) ) ) ( TO to ) ( VP ( VB receive ) ( NP ( NNS securities ) ( CC or ) ( NNS assets ) ) ) ) ) ) ) )

Once triggered the rights allow holders to buy additional shares at 50 % of the then current market price or at the board 's discretion to receive securities or assets


( S ( ADVP ( RB Separately ) ) ( NP-SBJ ( NNP Dominion ) ( NNP Textile ) ) ( VP ( VBD posted ) ( NP ( NP ( JJ net ) ( NN income ) ) ( PP ( IN of ) ( NP ( NP ( NP ( QP ( CD 4.7 ) ( CD million ) ) ( JJ Canadian ) ( NNS dollars ) ) ( PRN ( NP ( QP ( CD 4 ) ( CD million ) ) ) ) ) ( CC or ) ( NP ( NP ( CD 12 ) ( JJ Canadian ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ fiscal-first ) ( NN quarter ) ) ( VP ( VBD ended ) ( NP-TMP ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ) )

Separately Dominion Textile posted net income of 4.7 million Canadian dollars 4 million or 12 Canadian cents a share for the fiscal-first quarter ended Sept. 30


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( JJ net ) ( NN loss ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 2.3 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 14 ) ( JJ Canadian ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( IN ago ) ) ) )

The company had a net loss of 2.3 million or 14 Canadian cents a share a year ago


( S ( NP-SBJ ( NNS Sales ) ) ( VP ( VBD were ) ( NP-PRD ( QP ( CD 348.2 ) ( CD million ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( CD 307.2 ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) ) )

Sales were 348.2 million compared with 307.2 a year earlier


( S ( NP-SBJ ( NNP Sears ) ( NNP Roebuck ) ( CC & ) ( NNP Co. ) ) ( VP ( VBD signed ) ( NP ( NP ( DT a ) ( NN contract ) ) ( PP ( IN with ) ( NP ( NP ( NNP Bob ) ( NNP Vila ) ) ( NP ( NP ( DT the ) ( JJ former ) ( NN host ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ popular ) ( JJ public ) ( NN television ) ( NN program ) ) ( NP-TTL ( NNP This ) ( NNP Old ) ( NNP House ) ) ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB star ) ( PP-CLR ( IN in ) ( NP ( NP ( DT a ) ( JJ half-hour ) ( NN home ) ( NN improvement ) ( NN show ) ) ( VP ( VBN sponsored ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( JJ giant ) ( NN retailer ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Sears Roebuck & Co. signed a contract with Bob Vila the former host of the popular public television program This Old House to star in a half-hour home improvement show sponsored by the giant retailer


( S ( NP-SBJ ( NP ( DT The ) ( JJ do-it-yourself ) ( NN show ) ) ( VP ( VBN slated ) ( S ( VP ( TO to ) ( VP ( VB start ) ( S ( VP ( VBG airing ) ) ) ( PP-TMP-CLR ( IN by ) ( NP ( NNP June ) ( CD 1990 ) ) ) ) ) ) ) ) ( VP ( VP ( VBZ marks ) ( NP ( NP ( NP ( NNP Sears ) ( POS 's ) ) ( NN entry ) ) ( PP ( IN into ) ( NP ( NP ( DT the ) ( VBG burgeoning ) ( NN market ) ) ( PP ( IN of ) ( NP ( NN home ) ( NN repair ) ( NN television ) ( NNS programs ) ) ) ) ) ) ) ( CC and ) ( VP ( MD could ) ( VP ( VB bolster ) ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN home ) ( NN improvement ) ( NNS products ) ) ) ) ) ) ) )

The do-it-yourself show slated to start airing by June 1990 marks Sears 's entry into the burgeoning market of home repair television programs and could bolster sales of its home improvement products


( S ( PP-TMP ( IN In ) ( NP ( JJ recent ) ( NNS months ) ) ) ( NP-SBJ ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( NN home ) ( NN improvement ) ( NNS items ) ) ) ) ( VP ( VBP have ) ( VP ( VBN sagged ) ( ADVP-2 ( IN along ) ( PP ( IN with ) ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( JJ other ) ( JJ big ) ( NN ticket ) ( JJ durable ) ( NNS goods ) ) ) ) ) ) ) ) )

In recent months sales of home improvement items have sagged along with sales of other big ticket durable goods


( S ( NP-SBJ ( DT The ) ( NN show ) ) ( ADVP ( RB also ) ) ( VP ( VBZ signals ) ( NP ( NP ( NP ( NNP Mr. ) ( NNP Vila ) ( POS 's ) ) ( NN return ) ) ( PP ( IN as ) ( NP ( DT a ) ( NN television ) ( NN celebrity ) ) ) ) ) )

The show also signals Mr. Vila 's return as a television celebrity


( S ( NP-TMP ( RBR Earlier ) ( DT this ) ( NN year ) ) ( NP-SBJ ( NP ( JJ public ) ( NN television ) ( NN station ) ( NNP WGBH ) ) ( PP-LOC ( IN in ) ( NP ( NNP Boston ) ) ) ) ( VP ( VBD fired ) ( NP ( NNP Mr. ) ( NNP Vila ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( DT a ) ( NN sponsor ) ) ( VP ( VBD protested ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( JJ numerous ) ( JJ commercial ) ( NNS endorsements ) ) ) ) ) ) ) ) )

Earlier this year public television station WGBH in Boston fired Mr. Vila after a sponsor protested some of his numerous commercial endorsements


( S ( PP ( IN With ) ( NP ( NP ( NNP Mr. ) ( NNP Vila ) ) ( PP ( IN as ) ( NP ( NN host ) ) ) ) ) ( NP-TTL-SBJ-1 ( NNP This ) ( NNP Old ) ( NNP House ) ) ( VP ( VBD became ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Public ) ( NNP Broadcasting ) ( NNP Service ) ( POS 's ) ) ( JJ top ) ( CD 10 ) ( NNS programs ) ) ) ) ( S-ADV ( VP ( VP ( VBG airing ) ( ADVP-TMP ( RB weekly ) ) ( PP-LOC ( IN on ) ( NP ( NP ( QP ( IN about ) ( CD 300 ) ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN network ) ( POS 's ) ) ( NNS stations ) ) ) ) ) ) ( CC and ) ( VP ( VBN seen ) ( PP ( IN by ) ( NP-LGS ( NP ( DT an ) ( NN average ) ) ( PP ( IN of ) ( NP ( QP ( CD 12 ) ( CD million ) ) ( NNS viewers ) ) ) ) ) ) ) ) ) )

With Mr. Vila as host This Old House became one of the Public Broadcasting Service 's top 10 programs airing weekly on about 300 of the network 's stations and seen by an average of 12 million viewers


( S ( CC But ) ( NP-SBJ ( NP ( NNP Home ) ( NNP Depot ) ( NNP Inc. ) ) ( NP ( DT an ) ( JJ Atlanta-based ) ( NN home ) ( NN center ) ( NN chain ) ) ) ( VP ( VBD objected ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ-3 ( NNP Mr. ) ( NNP Vila ) ) ( VP ( VBD started ) ( S ( VP ( VBG doing ) ( NP ( JJ commercial ) ( NNS endorsements ) ) ( PP ( IN for ) ( NP ( NP ( NNP Rickel ) ( NNP Home ) ( NNPS Centers ) ) ( NP ( NP ( DT a ) ( NNP New ) ( NNP Jersey ) ( NN building ) ( NN supply ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ competes ) ( PP-CLR ( IN with ) ( NP ( NNP Home ) ( NNP Depot ) ) ) ( PP-LOC ( IN in ) ( NP ( DT some ) ( NNS markets ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But Home Depot Inc. an Atlanta-based home center chain objected when Mr. Vila started doing commercial endorsements for Rickel Home Centers a New Jersey building supply company that competes with Home Depot in some markets


( SINV ( S-TPC-2 ( NP-SBJ ( PRP I ) ) ( VP ( VBP 'm ) ( ADJP-PRD ( JJ ecstatic ) ( PP ( IN about ) ( NP ( DT the ) ( NN change ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Vila ) ) ( SBAR ( WHNP-3 ( WP$ whose ) ( JJ new ) ( VBN syndicated ) ( NN program ) ) ( S ( VP ( VBZ is ) ( VP ( VBN called ) ( S ( NP-TTL-PRD ( NP ( NNP Home ) ( NNP Again ) ) ( PP ( IN with ) ( NP ( NNP Bob ) ( NNP Vila ) ) ) ) ) ) ) ) ) ) )

I 'm ecstatic about the change said Mr. Vila whose new syndicated program is called Home Again with Bob Vila


( S ( PP-LOC ( IN In ) ( NP ( DT an ) ( NN interview ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Vila ) ) ( VP ( VBD criticized ) ( NP ( NP ( PRP$ his ) ( JJ old ) ( NN show ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBG continuing ) ( PP-MNR ( IN with ) ( NP ( DT a ) ( JJ new ) ( NN host ) ) ) ) ) ) ) ) ) )

In an interview Mr. Vila criticized his old show which is continuing with a new host


( S ( S-TPC-1 ( NP-SBJ ( NNP Public ) ( NNP TV ) ) ( VP ( VBZ is ) ( PP-LOC-PRD ( IN in ) ( NP ( NN fantasy ) ( NN land ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

Public TV is in fantasy land he said


( S ( NP-TMP ( JJ Last ) ( NN season ) ) ( NP-SBJ ( PRP we ) ) ( VP ( VBD did ) ( NP ( NP ( DT a ) ( NN story ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD involved ) ( S ( VP ( VBG spending ) ( NP ( CD 700,000 ) ) ( PP-LOC-CLR ( IN in ) ( S-NOM ( VP ( VBG converting ) ( NP ( DT a ) ( JJ two-family ) ( NN house ) ) ( PP-CLR ( IN into ) ( NP ( DT a ) ( NN bed ) ( CC and ) ( NN breakfast ) ) ) ) ) ) ) ) ) ) ) ) ) )

Last season we did a story that involved spending 700,000 in converting a two-family house into a bed and breakfast


( S-1 ( PP-LOC ( IN In ) ( NP ( DT the ) ( JJ new ) ( NN show ) ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) ) ) ( NP-SBJ-2 ( PRP we ) ) ( VP ( VBP 're ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB spend ) ( NP ( CD 60,000 ) ) ( S-CLR ( VP ( VBG building ) ( NP ( DT a ) ( JJ start-up ) ( NN house ) ) ( PP-BNF ( IN for ) ( NP ( DT a ) ( JJ young ) ( NN couple ) ) ) ) ) ) ) ) ) ) )

In the new show he said we 're going to spend 60,000 building a start-up house for a young couple