( S ( NP-SBJ ( DT The ) ( NAC-LOC ( NNP Upper ) ( NNP Saddle ) ( NNP River ) ( NNP N.J. ) ) ( NNS communications ) ( NN firm ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG considering ) ( NP ( NP ( NNS alternatives ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( VBG restructuring ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ senior ) ( VBN secured ) ( NNS notes ) ) ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( NNS changes ) ) ( PP ( IN in ) ( NP ( DT the ) ( JJ high-yield ) ( NN market ) ) ) ) ) ) ) ) ) ) )

The Upper Saddle River N.J. communications firm said it is considering alternatives to the restructuring of the senior secured notes because of changes in the high-yield market


( S ( PP-TMP ( IN In ) ( NP ( NNP June ) ) ) ( NP-SBJ-2 ( NNP Western ) ( NNP Union ) ) ( VP ( VBD was ) ( VP ( VP ( VBN forced ) ( S ( VP ( TO to ) ( VP ( VB reset ) ( NP ( NP ( DT the ) ( NN interest ) ( NN rate ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( JJ senior ) ( VBN secured ) ( NNS notes ) ) ( ADJP ( RB due ) ( PP-TMP ( IN in ) ( NP ( CD 1992 ) ) ) ) ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 19 ) ( CD 1\/4 ) ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 16 ) ( CD 1\/2 ) ) ( NN % ) ) ) ) ) ) ) ( NP-ADV ( NP ( DT a ) ( NN move ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD increased ) ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( JJ annual ) ( NN interest ) ( NNS payments ) ) ( PP-EXT ( IN by ) ( NP ( QP ( CD 13.8 ) ( CD million ) ) ) ) ) ) ) ) ) ) )

In June Western Union was forced to reset the interest rate on the senior secured notes due in 1992 to 19 1\/4 % from 16 1\/2 % a move which increased the firm 's annual interest payments by 13.8 million


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( DT the ) ( NNS notes ) ) ( VP ( VBD held ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN price ) ) ( PP ( IN of ) ( NP ( QP ( CD 92 ) ( TO to ) ( CD 93 ) ) ) ) ) ) ( PP-TMP ( ADVP ( RB immediately ) ) ( IN after ) ( NP ( DT the ) ( NN reset ) ) ) ) ) ) ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBD started ) ( S ( VP ( VBG falling ) ( ADVP-TMP ( RB soon ) ( RB afterward ) ) ) ) ) )

Although the notes held at a price of 92 to 93 immediately after the reset they started falling soon afterward


( S ( NP-TMP ( NN Yesterday ) ) ( NP-SBJ-1 ( NP ( NNP Western ) ( NNP Union ) ( POS 's ) ) ( JJ senior ) ( VBN secured ) ( NN reset ) ( NNS notes ) ) ( VP ( VBD fell ) ( NP-EXT ( NP ( CD 3 ) ( CD 3\/4 ) ( NNS points ) ) ( CC or ) ( NP ( NP ( QP ( RB about ) ( CD 37.50 ) ) ) ( PP ( IN for ) ( NP ( DT each ) ( ADJP ( CD 1,000 ) ) ( NN face ) ( NN amount ) ) ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB close ) ( PP-CLR ( IN at ) ( NP ( CD 50 ) ( CD 1\/4 ) ) ) ) ) ) ) )

Yesterday Western Union 's senior secured reset notes fell 3 3\/4 points or about 37.50 for each 1,000 face amount to close at 50 1\/4


( S ( NP-SBJ ( JJ Other ) ( NNP Western ) ( NNP Union ) ( NNS securities ) ) ( VP ( VBD were ) ( ADVP ( RB also ) ) ( ADJP-PRD ( JJR lower ) ) ) )

Other Western Union securities were also lower


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN company ) ( POS 's ) ) ( ADJP ( CD 7.90 ) ( NN % ) ) ( NN sinking ) ( NN fund ) ( NNS debentures ) ) ( VP ( VBD were ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( NP ( DT a ) ( NN bid ) ( NN price ) ) ( PP ( IN of ) ( NP ( QP ( CD 14 ) ( CD 1\/4 ) ) ) ) ) ( CC and ) ( NP ( NP ( DT an ) ( VBN offered ) ( NN price ) ) ( PP ( IN of ) ( NP ( CD 30 ) ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( NP ( DT the ) ( ADJP ( QP ( CD 10 ) ( CD 3\/4 ) ) ( NN % ) ) ( VBD subordinated ) ( NNS debentures ) ) ( PP ( IN of ) ( NP ( CD 1997 ) ) ) ) ( VP ( VBD were ) ( VP ( VBG being ) ( VP ( VP ( VBN bid ) ( PP-CLR ( IN for ) ) ( PP-CLR ( IN at ) ( NP ( CD 28 ) ) ) ) ( CC and ) ( VP ( VBD offered ) ( PP-CLR ( IN at ) ( NP ( QP ( RB around ) ( CD 34 ) ( CD 3\/4 ) ) ) ) ) ) ) ) ) ) ) ) )

The company 's 7.90 % sinking fund debentures were quoted at a bid price of 14 1\/4 and an offered price of 30 while the 10 3\/4 % subordinated debentures of 1997 were being bid for at 28 and offered at around 34 3\/4


( S ( NP-SBJ ( DT The ) ( ADJP ( QP ( CD 10 ) ( CD 3\/4 ) ) ( NN % ) ) ( NNS debentures ) ) ( ADVP-TMP ( RB last ) ) ( VP ( VBD traded ) ( PP-CLR ( IN at ) ( NP ( CD 35 ) ) ) ) )

The 10 3\/4 % debentures last traded at 35


( S ( S ( NP-SBJ ( JJ High-yield ) ( NNS traders ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NNS spreads ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NN bid ) ( CC and ) ( VBN offered ) ( NNS prices ) ) ( PP ( IN of ) ( NP ( NNP Western ) ( NNP Union ) ( NN junk ) ( NNS bonds ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG widening ) ( PP-TMP ( IN for ) ( NP ( DT some ) ( NN time ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( PP-LOC ( IN in ) ( NP ( JJ certain ) ( NNS cases ) ) ) ( NP-SBJ ( NP ( NNS bids ) ) ( PP ( IN for ) ( NP ( NNP Western ) ( NNP Union ) ( NNS securities ) ) ) ) ( VP ( VBP are ) ( RB not ) ( ADJP-PRD ( JJ available ) ) ) ) )

High-yield traders said spreads between the bid and offered prices of Western Union junk bonds have been widening for some time and in certain cases bids for Western Union securities are not available


( S ( ADVP-LOC ( RB Elsewhere ) ) ( NP-SBJ ( NP ( NNS prices ) ) ( PP ( IN of ) ( NP ( ADJP ( JJ investment-grade ) ( CC and ) ( JJ high-risk ) ( JJ high-yield ) ) ( NN junk ) ( NNS bonds ) ) ) ) ( VP ( VBD ended ) ( ADJP-CLR ( JJ unchanged ) ) ) )

Elsewhere prices of investment-grade and high-risk high-yield junk bonds ended unchanged


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT the ) ( JJ new-issue ) ( NN market ) ) ( PP ( IN for ) ( NP ( NN junk ) ( NNS securities ) ) ) ) ) ( NP-SBJ-1 ( NP ( NNS underwriters ) ) ( PP-LOC ( IN at ) ( NP ( NNP Salomon ) ( NNP Brothers ) ( NNP Inc. ) ) ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB price ) ( NP-TMP ( NN today ) ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 350 ) ( CD million ) ) ) ( NN junk ) ( NN bond ) ( NN offering ) ) ( PP ( IN by ) ( NP ( NNP Beatrice ) ( NNP Co. ) ) ) ) ) ) ) ) ) )

In the new-issue market for junk securities underwriters at Salomon Brothers Inc. are expected to price today a 350 million junk bond offering by Beatrice Co.


( S ( NP-SBJ ( DT The ) ( JJ two-part ) ( NN issue ) ) ( VP ( VBZ consists ) ( PP-CLR ( IN of ) ( NP ( NP ( NP ( QP ( CD 200 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( JJ senior ) ( VBN subordinated ) ( NN reset ) ( NNS notes ) ) ( VP ( VBG maturing ) ( PP-TMP-CLR ( IN in ) ( NP ( CD 1997 ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( QP ( CD 150 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( VBN subordinated ) ( VBG floating ) ( NN rate ) ( NNS notes ) ) ( VP ( ADVP ( RB also ) ) ( VBG maturing ) ( PP-TMP-CLR ( IN in ) ( NP ( CD 1997 ) ) ) ) ) ) ) ) ) ) )

The two-part issue consists of 200 million of senior subordinated reset notes maturing in 1997 and 150 million of subordinated floating rate notes also maturing in 1997


( S ( NP-SBJ ( NN Portfolio ) ( NNS managers ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNS expectations ) ) ( VP ( VBP are ) ( SBAR-PRD ( IN for ) ( S ( NP-SBJ-1 ( DT the ) ( NN issue ) ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( DT a ) ( NN discount ) ) ) ( PP-CLR ( IN with ) ( NP ( NP ( NP ( DT a ) ( NN coupon ) ) ( PP ( IN of ) ( NP ( QP ( CD 13 ) ( CD 3\/4 ) ) ( NN % ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 14 ) ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Portfolio managers said expectations are for the issue to be priced at a discount with a coupon of 13 3\/4 % and a yield of about 14 %


( S ( NP-SBJ-1 ( DT The ) ( JJ Chicago-based ) ( NN food ) ( CC and ) ( NN consumer ) ( NNS goods ) ( NN concern ) ) ( VP ( VBD was ) ( VP ( VBN acquired ) ( PP-TMP ( IN in ) ( NP ( NNP April ) ( CD 1986 ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 6.2 ) ( CD billion ) ) ) ( VBN leveraged ) ( NN buy-out ) ) ( VP ( VBN engineered ) ( PP ( IN by ) ( NP-LGS ( NNP Kohlberg ) ( NNP Kravis ) ( NNP Roberts ) ( CC & ) ( NNP Co ) ) ) ) ) ) ) ) )

The Chicago-based food and consumer goods concern was acquired in April 1986 in a 6.2 billion leveraged buy-out engineered by Kohlberg Kravis Roberts & Co


( S ( NP-SBJ-1 ( NP ( NNS Proceeds ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN note ) ( NN sale ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN used ) ( S-CLR ( VP ( TO to ) ( VP ( VB repay ) ( NP ( NP ( DT a ) ( NN portion ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN bank ) ( NNS borrowings ) ) ( VP ( VBN used ) ( PP ( IN by ) ( NP-LGS ( NNP Beatrice ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB redeem ) ( NP ( NP ( PRP$ its ) ( ADJP ( QP ( CD 526.3 ) ( CD million ) ) ) ( JJ principal ) ( NN amount ) ) ( PP ( IN of ) ( NP ( VBG increasing ) ( NN rate ) ( NNS debentures ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Proceeds from the note sale will be used to repay a portion of the bank borrowings used by Beatrice to redeem its 526.3 million principal amount of increasing rate debentures in August


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ-1 ( NP ( NNS underwriters ) ) ( PP-LOC ( IN at ) ( NP ( NNP Morgan ) ( NNP Stanley ) ( CC & ) ( NNP Co. ) ) ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( NP-TMP ( NN today ) ) ( S ( VP ( TO to ) ( VP ( VB price ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 350 ) ( CD million ) ) ) ( JJ high-yield ) ( NN offering ) ) ( PP ( IN by ) ( NP ( NNP Continental ) ( NNP Cablevision ) ( NNP Inc ) ) ) ) ) ) ) ) ) )

Meanwhile underwriters at Morgan Stanley & Co. are expected today to price a 350 million high-yield offering by Continental Cablevision Inc


( S ( NP-SBJ-2 ( NP ( DT The ) ( JJ senior ) ( VBN subordinated ) ( NNS debentures ) ) ( VP ( VBG maturing ) ( PP-TMP ( IN in ) ( NP ( CD 2004 ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBN targeted ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN offered ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( IN of ) ( NP ( QP ( IN between ) ( CD 12 ) ( CD 5\/8 ) ( NN % ) ( TO to ) ( CD 12 ) ( CD 3\/4 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) )

The senior subordinated debentures maturing in 2004 are targeted to be offered at a yield of between 12 5\/8 % to 12 3\/4 %


( NP-HLN ( JJ Mortgage-Backed ) ( NNP Securities ) )

Mortgage-Backed Securities


( S ( NP-SBJ ( NN Mortgage ) ( NNS securities ) ) ( VP ( VBD ended ) ( ADVP-CLR ( QP ( CD 2\/32 ) ( TO to ) ( CD 4\/32 ) ) ( RBR higher ) ) ( PP-LOC ( IN in ) ( NP ( JJ light ) ( NN trading ) ) ) ) )

Mortgage securities ended 2\/32 to 4\/32 higher in light trading


( S ( S ( NP-SBJ-1 ( NP ( NP ( NNP Ginnie ) ( NNP Mae ) ( POS 's ) ) ( ADJP ( CD 9 ) ( NN % ) ) ( NN issue ) ) ( PP ( IN for ) ( NP ( NNP November ) ( NN delivery ) ) ) ) ( VP ( VBN finished ) ( PP-CLR-2 ( IN at ) ( NP ( QP ( CD 98 ) ( CD 1\/2 ) ) ) ) ( ADVP-3 ( RB up ) ( NP ( CD 4\/32 ) ) ) ) ) ( CC and ) ( S ( NP-SBJ=1 ( PRP$ its ) ( ADJP ( CD 10 ) ( NN % ) ) ( NN issue ) ) ( PP-CLR=2 ( IN at ) ( NP ( QP ( CD 102 ) ( CD 3\/8 ) ) ) ) ( ADVP=3 ( RB up ) ( NP ( CD 4\/32 ) ) ) ) )

Ginnie Mae 's 9 % issue for November delivery finished at 98 1\/2 up 4\/32 and its 10 % issue at 102 3\/8 up 4\/32


( S ( NP-SBJ ( NP ( NNP Freddie ) ( NNP Mac ) ( POS 's ) ) ( ADJP ( CD 9 ) ( NN % ) ) ( NN issue ) ) ( VP ( VBN ended ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 97 ) ( CD 19\/32 ) ) ) ) ( ADVP ( RB up ) ( NP ( CD 2\/32 ) ) ) ) )

Freddie Mac 's 9 % issue ended at 97 19\/32 up 2\/32


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( JJ derivative ) ( NN market ) ) ) ( NP-SBJ ( NN insurance ) ( NNS companies ) ) ( VP ( VBP have ) ( VP ( VBN scaled ) ( PRT ( RP back ) ) ( NP ( NP ( PRP$ their ) ( NNS purchases ) ) ( PP ( IN of ) ( NP ( NP ( NNP Remic ) ( NNS securities ) ) ( CC or ) ( NP ( JJ real ) ( NN estate ) ( NN mortgage ) ( NN investment ) ( NNS conduits ) ) ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP assess ) ( NP ( NP ( JJ potential ) ( NNS claims ) ) ( PP ( IN from ) ( NP ( DT the ) ( NX ( NX ( JJ recent ) ( NNP California ) ( NN earthquake ) ) ( CC and ) ( NX ( NX ( NN hurricane ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNPS Carolinas ) ) ) ) ) ) ) ) ) ) ) ) ) )

In the derivative market insurance companies have scaled back their purchases of Remic securities or real estate mortgage investment conduits as they assess potential claims from the recent California earthquake and hurricane in the Carolinas


( S ( NP-SBJ ( DT This ) ) ( VP ( MD could ) ( VP ( VB mean ) ( NP ( NP ( JJ diminished ) ( NN issuance ) ) ( PP ( IN of ) ( NP ( JJ derivative ) ( NN mortgage ) ( NNS issues ) ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( JJ next ) ( JJ few ) ( NNS weeks ) ) ) ) ) ) )

This could mean diminished issuance of derivative mortgage issues during the next few weeks


( S ( NP-SBJ ( NN Insurance ) ( NNS companies ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( NP-PRD ( NP ( JJ major ) ( NNS buyers ) ) ( PP ( IN of ) ( NP ( NP ( JJ prepayment-protected ) ( VBN planned ) ( NN amortization ) ( NNS classes ) ) ( PRN ( NP ( NNPS PACs ) ) ) ) ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( JJ past ) ( JJ few ) ( NNS months ) ) ) ) ) )

Insurance companies have been major buyers of prepayment-protected planned amortization classes PACs during the past few months


( S ( NP-SBJ ( DT The ) ( NNPS PACs ) ) ( VP ( NN appeal ) ( PP-CLR ( TO to ) ( NP ( NP ( NN insurance ) ( NNS companies ) ) ( CC and ) ( NP ( JJ other ) ( NNS investors ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VP ( VBP have ) ( NP ( NP ( JJR higher ) ( NNS yields ) ) ( PP ( IN than ) ( NP ( JJ topgrade ) ( JJ corporate ) ( NNS bonds ) ) ) ) ) ( CC and ) ( VP ( VBP carry ) ( NP ( NP ( DT the ) ( NN guarantee ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Freddie ) ( NNP Mac ) ) ( CC and ) ( NP ( NNP Fannie ) ( NNP Mae ) ) ) ( NP ( JJ quasi-federal ) ( NNS agencies ) ) ) ) ) ) ) ) ) ) )

The PACs appeal to insurance companies and other investors because they have higher yields than topgrade corporate bonds and carry the guarantee of Freddie Mac and Fannie Mae quasi-federal agencies


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( JJ asset-backed ) ( NN market ) ) ) ( NP-SBJ ( NNP Beneficial ) ( NNP Corp. ) ) ( VP ( VBD offered ) ( NP ( NP ( NP ( QP ( CD 248 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( NNS securities ) ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( NN home-equity ) ( NNS loans ) ) ) ) ) ) ) ( NP ( NP ( DT the ) ( JJ second ) ( JJ large ) ( NN deal ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN past ) ( NN week ) ) ) ) ) ) )

In the asset-backed market Beneficial Corp. offered 248 million of securities backed by home-equity loans the second large deal in the past week


( S ( NP-TMP ( JJ Last ) ( NN week ) ) ( NP-SBJ ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP MNC ) ( NNP Financial ) ( NNP Corp. ) ) ) ) ( VP ( VBD offered ) ( NP ( NP ( QP ( CD 268 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NN home-equity ) ( NNS securities ) ) ) ) ) )

Last week a unit of MNC Financial Corp. offered 268 million of home-equity securities


( S ( NP-SBJ-2 ( DT Both ) ( DT the ) ( NNP MNC ) ( CC and ) ( NNP Beneficial ) ( NN offering ) ) ( VP ( VBD were ) ( VP ( JJ underwritten ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Merrill ) ( NNP Lynch ) ( NNP Capital ) ( NNP Markets ) ) ( NP ( NP ( DT the ) ( VBG leading ) ( NNP Wall ) ( NNP Street ) ( NN firm ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN home-equity ) ( NNS securities ) ( NN market ) ) ) ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( VP ( VBD was ) ( VP ( VBN created ) ( NP-TMP ( RB early ) ( DT this ) ( NN year ) ) ) ) ) ) ) ) ) ) )

Both the MNC and Beneficial offering were underwritten by Merrill Lynch Capital Markets the leading Wall Street firm in the home-equity securities market which was created early this year


( NP-HLN ( NNP Municipal ) ( NNP Issues ) )

Municipal Issues


( S ( S ( NP-SBJ ( NP ( NP ( DT The ) ( JJ improved ) ( NN tone ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ municipal ) ( NN market ) ) ) ) ( ADVP ( RB largely ) ) ( NP ( NP ( DT an ) ( NN offshoot ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP City ) ( NN sale ) ( POS 's ) ) ( NN reception ) ) ) ) ) ( VP ( VBD helped ) ( S ( NP-SBJ ( JJ municipal ) ( NNS futures ) ) ( VP ( VB rebound ) ( PP-DIR ( IN from ) ( NP ( JJ early ) ( NNS lows ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN spread ) ) ( PP ( IN between ) ( NP ( DT the ) ( NN contract ) ( CC and ) ( JJ Tbond ) ( NNS futures ) ) ) ) ( VP ( VBD continued ) ( S ( VP ( TO to ) ( VP ( VB grow ) ( ADJP-PRD ( RBR more ) ( JJ negative ) ) ) ) ) ) ) )

The improved tone in the municipal market largely an offshoot of the New York City sale 's reception helped municipal futures rebound from early lows but the spread between the contract and Tbond futures continued to grow more negative


( S ( NP-SBJ-1 ( DT The ) ( NX ( NX ( NNP MOB ) ( NN spread ) ) ( CC or ) ( NX ( NX ( NN difference ) ) ( PP ( IN between ) ( NP ( DT the ) ( ADJP ( JJ municipal ) ( CC and ) ( JJ T-bond ) ) ( NNS futures ) ( NNS contracts ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( PP-LOC-PRD ( IN near ) ( NP ( JJ all-time ) ( NNS lows ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ recent ) ( NN trading ) ) ) ( S-ADV ( VP ( VBN driven ) ( ADVP ( RB basically ) ) ( PP ( IN by ) ( NP-LGS ( NNS concerns ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ new-issue ) ( NN supply ) ) ( VP ( MD would ) ( VP ( VB overwhelm ) ( NP ( NN demand ) ) ) ) ) ) ) ) ) ) ) ) )

The MOB spread or difference between the municipal and T-bond futures contracts has been near all-time lows in recent trading driven basically by concerns that new-issue supply would overwhelm demand


( S ( NP-SBJ-1 ( NNP December ) ( JJ municipal ) ( NNS futures ) ) ( VP ( VBN ended ) ( ADVP-CLR ( RP up ) ( NP ( CD 11\/32 ) ( NN point ) ) ( PP ( TO to ) ( NP ( CD 92-14 ) ) ) ) ( S-ADV ( VP ( VBG having ) ( VP ( VBN pulled ) ( PP-CLR ( RP off ) ( NP ( NP ( DT a ) ( NN morning ) ( NN low ) ) ( PP ( IN of ) ( NP ( CD 91-23 ) ) ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NN cash ) ( NNS municipals ) ) ( VP ( VBD rebounded ) ) ) ) ) ) ) ) )

December municipal futures ended up 11\/32 point to 92-14 having pulled off a morning low of 91-23 as cash municipals rebounded


( S ( CC But ) ( NP-SBJ ( JJ front ) ( NN month ) ( JJ T-bond ) ( NNS futures ) ) ( VP ( VBD settled ) ( NP ( DT the ) ( NN afternoon ) ( NN session ) ) ( ADVP-CLR ( RB up ) ( NP ( DT a ) ( ADJP ( RB slightly ) ( JJR greater ) ) ( CD 13\/32 ) ) ) ( PP-CLR ( IN at ) ( NP ( CD 99-04 ) ) ) ) )

But front month T-bond futures settled the afternoon session up a slightly greater 13\/32 at 99-04


( NP-HLN ( NNP Foreign ) ( NNP Bonds ) )

Foreign Bonds


( S ( NP-SBJ-1 ( JJ British ) ( NN government ) ( NNS bonds ) ) ( VP ( VBD ended ) ( ADVP-CLR ( RB moderately ) ( RBR higher ) ) ( S-ADV ( VP ( VBN encouraged ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( JJR steadier ) ( NN pound ) ) ( CC and ) ( NP ( NP ( DT a ) ( NN rise ) ) ( PP-LOC ( IN in ) ( NP ( JJ British ) ( NNS stocks ) ) ) ) ) ) ) ) ) )

British government bonds ended moderately higher encouraged by a steadier pound and a rise in British stocks


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN benchmark ) ( ADJP ( QP ( CD 11 ) ( CD 3\/4 ) ) ( NN % ) ) ( NN bond ) ) ( ADJP ( JJ due ) ( NP-TMP ( CD 2003\/2007 ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 10\/32 ) ) ( PP-DIR-CLR ( TO to ) ( NP ( QP ( CD 111 ) ( CD 14\/32 ) ) ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 10.14 ) ( NN % ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( NP ( NP ( DT the ) ( NNP Treasury ) ( POS 's ) ) ( ADJP ( CD 12 ) ( NN % ) ) ( NNS notes ) ) ( ADJP ( JJ due ) ( NP-TMP ( CD 1995 ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 7\/32 ) ) ( PP-DIR ( TO to ) ( NP ( CD 103 ) ( CD 5\/8 ) ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 11.04 ) ( NN % ) ) ) ) ) ) ) ) ) )

The benchmark 11 3\/4 % bond due 2003\/2007 rose 10\/32 to 111 14\/32 to yield 10.14 % while the Treasury 's 12 % notes due 1995 rose 7\/32 to 103 5\/8 to yield 11.04 %


( S ( NP-SBJ ( NNP West ) ( NNP German ) ( NN government ) ( NNS bonds ) ) ( VP ( VBD fell ) ( NP-EXT ( QP ( RB as ) ( RB much ) ( IN as ) ( CD 0.60 ) ) ( NN point ) ) ( PP-LOC ( IN in ) ( NP ( JJ light ) ( JJ nervous ) ( VBG trading ) ) ) ) )

West German government bonds fell as much as 0.60 point in light nervous trading


( S ( NP-SBJ-1 ( NP ( DT The ) ( ADJP ( CD 7 ) ( NN % ) ) ( NNP Treasury ) ( NN bond ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP October ) ( CD 1999 ) ) ) ) ( VP ( VBD ended ) ( ADVP-CLR ( RB off ) ( NP ( CD 0.60 ) ( NN point ) ) ( PP ( TO to ) ( NP ( CD 99.35 ) ) ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.09 ) ( NN % ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( NP ( DT the ) ( ADJP ( QP ( CD 6 ) ( CD 3\/4 ) ) ( NN % ) ) ( NNS notes ) ) ( ADJP ( JJ due ) ( NP ( CD 1994 ) ) ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 0.35 ) ( NN point ) ) ( PP-DIR ( TO to ) ( NP ( CD 97.25 ) ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.45 ) ( NN % ) ) ) ) ) ) ) ) ) )

The 7 % Treasury bond due October 1999 ended off 0.60 point to 99.35 to yield 7.09 % while the 6 3\/4 % notes due 1994 fell 0.35 point to 97.25 to yield 7.45 %


( S ( NP-SBJ-1 ( JJ Japanese ) ( NN government ) ( NNS bonds ) ) ( VP ( VBD continued ) ( S ( VP ( TO to ) ( VP ( VB erode ) ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( DT the ) ( NN dollar ) ) ( VP ( VBD remained ) ( ADJP-PRD ( JJ resilient ) ( PP ( IN against ) ( NP ( DT the ) ( NN yen ) ) ) ) ) ) ) ) )

Japanese government bonds continued to erode as the dollar remained resilient against the yen


( S ( NP-SBJ-1 ( NP ( NP ( NNP Japan ) ( POS 's ) ) ( NN No. ) ( CD 111 ) ( ADJP ( CD 4.6 ) ( NN % ) ) ( NN bond ) ) ( ADJP ( JJ due ) ( NP-TMP ( CD 1998 ) ) ) ) ( VP ( VBD ended ) ( NP-TMP ( DT the ) ( NN day ) ) ( PP-LOC ( IN on ) ( NP ( NNS brokers ) ( NNS screens ) ) ) ( PP-CLR ( IN at ) ( NP ( CD 95.11 ) ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 5.43 ) ( NN % ) ) ) ) ) ) )

Japan 's No. 111 4.6 % bond due 1998 ended the day on brokers screens at 95.11 to yield 5.43 %


( S ( NP-SBJ-1 ( NNP Wall ) ( NNP Street ) ) ( VP ( VBD continued ) ( S ( VP ( TO to ) ( VP ( VB buckle ) ( PP-CLR ( IN under ) ( NP ( NP ( DT the ) ( JJ public ) ( NN outcry ) ) ( PP ( IN against ) ( NP ( JJ computer-driven ) ( NN program ) ( NN trading ) ) ) ) ) ) ) ) ) )

Wall Street continued to buckle under the public outcry against computer-driven program trading


( S ( S ( NP-SBJ ( NP ( NNP Kidder ) ( NNP Peabody ) ( CC & ) ( NNP Co. ) ) ( NP ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP General ) ( NNP Electric ) ( NNP Co. ) ) ) ) ) ( VP ( VBD announced ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD would ) ( VP ( VB stop ) ( S ( VP ( VBG doing ) ( NP ( JJ stock-index ) ( NN arbitrage ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( JJ own ) ( NN account ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Merrill ) ( NNP Lynch ) ( CC & ) ( NNP Co. ) ) ( VP ( VBD pulled ) ( PP-CLR ( RB out ) ( PP ( IN of ) ( NP ( DT the ) ( NN practice ) ) ) ) ( ADVP ( RB altogether ) ) ) ) )

Kidder Peabody & Co. a unit of General Electric Co. announced it would stop doing stock-index arbitrage for its own account and Merrill Lynch & Co. pulled out of the practice altogether


( S ( PP-LOC ( IN At ) ( NP ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN buffeted ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS complaints ) ) ( PP ( IN from ) ( NP ( NP ( JJ angry ) ( JJ individual ) ( NNS investors ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN exchange ) ( POS 's ) ) ( JJ own ) ( VBN listed ) ( NNS companies ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Chairman ) ( NNP John ) ( NNP J. ) ( NNP Phelan ) ( NNP Jr. ) ) ( VP ( VBD held ) ( NP ( NP ( DT an ) ( NN emergency ) ( NN meeting ) ) ( PP ( IN with ) ( NP ( NP ( JJ senior ) ( NNS partners ) ) ( PP ( IN of ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ( POS 's ) ) ( CD 49 ) ( NN stock ) ( NN specialist ) ( NNS firms ) ) ) ) ) ) ) ) ) )

At the New York Stock Exchange which has been buffeted by complaints from angry individual investors and the exchange 's own listed companies Chairman John J. Phelan Jr. held an emergency meeting with senior partners of some of the Big Board 's 49 stock specialist firms


( S-1 ( NP-SBJ ( DT The ) ( NNS specialists ) ) ( PRN ( S ( NP-SBJ ( DT a ) ( NN trader ) ) ( VP ( VBD said ) ) ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ livid ) ( PP ( IN about ) ( NP ( NP ( NNP Mr. ) ( NNP Phelan ) ( POS 's ) ) ( JJ recent ) ( NNS remarks ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( JJ sophisticated ) ( JJ computer-driven ) ( NN trading ) ( NNS strategies ) ) ( VP ( VBP are ) ( ADVP-PRD ( RB here ) ( S ( VP ( TO to ) ( VP ( VB stay ) ) ) ) ) ) ) ) ) ) ) ) )

The specialists a trader said were livid about Mr. Phelan 's recent remarks that sophisticated computer-driven trading strategies are here to stay


( S ( NP-SBJ ( JJ Many ) ( NNS investors ) ) ( VP ( VBP blame ) ( NP ( NN program ) ( NN trading ) ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ wild ) ( NNS swings ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ( PP ( VBG including ) ( NP ( NP ( DT the ) ( JJ 190-point ) ( NN plunge ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ) ( PP-TMP ( IN on ) ( NP ( NNP Oct. ) ( CD 13 ) ) ) ) ) ) ) ) )

Many investors blame program trading for wild swings in the stock market including the 190-point plunge in the Dow Jones Industrial Average on Oct. 13


( S ( NP-SBJ ( DT A ) ( NN specialist ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT an ) ( NN exchange ) ( NN member ) ) ( VP ( VBN designated ) ( S ( VP ( TO to ) ( VP ( VB maintain ) ( NP ( DT a ) ( ADJP ( JJ fair ) ( CC and ) ( JJ orderly ) ) ( NN market ) ) ( PP ( IN in ) ( NP ( DT a ) ( VBN specified ) ( NN stock ) ) ) ) ) ) ) ) ) )

A specialist is an exchange member designated to maintain a fair and orderly market in a specified stock


( S ( NP-SBJ ( NP ( NP ( NNP Mr. ) ( NNP Phelan ) ( POS 's ) ) ( NN meeting ) ) ( PP ( IN with ) ( NP ( DT the ) ( NN floor ) ( NNS brokers ) ) ) ) ( VP ( VBZ comes ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBZ prepares ) ( S ( VP ( TO to ) ( VP ( VB explain ) ( NP ( NP ( NP ( DT the ) ( NN exchange ) ( POS 's ) ) ( NN position ) ) ( PP ( IN on ) ( NP ( NN program ) ( NN trading ) ) ) ) ( PP-CLR ( TO to ) ( NP ( JJ key ) ( JJ congressional ) ( NNS regulators ) ) ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( JJ closed ) ( NN session ) ) ) ( NP-TMP ( NN tomorrow ) ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NN exchange ) ( NNS officials ) ) ) ) ) )

Mr. Phelan 's meeting with the floor brokers comes as he prepares to explain the exchange 's position on program trading to key congressional regulators in a closed session tomorrow according to exchange officials


( S ( NP-SBJ ( DT A ) ( NNP Big ) ( NNP Board ) ( NN spokesman ) ) ( VP ( MD would ) ( ADVP ( RB only ) ) ( VP ( VB say ) ( S ( NP-SBJ-1 ( PRP We ) ) ( VP ( VBP 're ) ( VP ( VP ( VBG working ) ( NP ( DT the ) ( NN problem ) ) ) ( CC and ) ( VP ( VBG looking ) ( PP-CLR ( IN at ) ( NP ( DT the ) ( NN issue ) ) ) ) ( CC and ) ( VP ( VBG meeting ) ( PP-CLR ( IN with ) ( NP ( NP ( DT a ) ( JJ broad ) ( NN number ) ) ( PP ( IN of ) ( NP ( NNS customers ) ( CC and ) ( NNS constituents ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB get ) ( NP ( NP ( PRP$ their ) ( NNS views ) ( CC and ) ( NNS ideas ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN issue ) ) ) ) ) ) ) ) ) ) ) ) ) )

A Big Board spokesman would only say We 're working the problem and looking at the issue and meeting with a broad number of customers and constituents to get their views and ideas on the issue


( S ( NP-SBJ-1 ( DT The ) ( JJ program-trading ) ( NN outcry ) ) ( VP ( VBD was ) ( VP ( VBN taken ) ( PP-CLR ( TO to ) ( NP ( DT a ) ( JJ new ) ( NN level ) ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( JJ giant ) ( NNP Contel ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-3 ( NP ( PRP it ) ) ( CC and ) ( NP ( NP ( QP ( CD 20 ) ( CC or ) ( JJR more ) ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ( POS 's ) ) ( VBN listed ) ( NNS companies ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBG forming ) ( NP ( DT an ) ( JJ unprecedented ) ( NN alliance ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB complain ) ( PP-CLR ( IN about ) ( NP ( NP ( NP ( DT the ) ( NN exchange ) ( POS 's ) ) ( NN role ) ) ( PP-LOC ( IN in ) ( NP ( NN program ) ( NN trading ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The program-trading outcry was taken to a new level when giant Contel Corp. said it and 20 or more of the Big Board 's listed companies are forming an unprecedented alliance to complain about the exchange 's role in program trading


( S ( NP-SBJ ( NP ( DT The ) ( NN decision ) ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Merrill ) ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( JJS largest ) ( NNS securities ) ( NN firm ) ) ) ) ) ( VP ( VBZ represents ) ( NP ( NP ( DT the ) ( JJS biggest ) ( NN retreat ) ) ( ADVP ( RB yet ) ) ( PP ( IN from ) ( NP ( NN program ) ( NN trading ) ) ) ) ) )

The decision by Merrill the nation 's largest securities firm represents the biggest retreat yet from program trading


( S ( NP-SBJ-1 ( NNP Merrill ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT the ) ( JJ fourth-biggest ) ( JJ stock-index ) ( NN arbitrage ) ( NN trader ) ) ( PP ( IN on ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ( S-ADV ( VP ( VBG executing ) ( NP ( NP ( DT an ) ( NN average ) ) ( PP ( IN of ) ( NP ( NP ( NP ( QP ( CD 18.1 ) ( CD million ) ) ( NNS shares ) ) ( NP-ADV ( DT a ) ( NN month ) ) ( PP ( IN in ) ( NP ( JJ such ) ( NNS trades ) ) ) ) ( CC or ) ( NP ( NP ( QP ( RB about ) ( CD one ) ( CD million ) ) ( NNS shares ) ) ( NP-ADV ( DT a ) ( NN day ) ) ) ) ) ) ) ) ) ) )

Merrill has been the fourth-biggest stock-index arbitrage trader on the Big Board this year executing an average of 18.1 million shares a month in such trades or about one million shares a day


( S ( NP-SBJ ( NP ( NN Merrill ) ( POS 's ) ) ( NN move ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ sweeping ) ) ( JJ program-trading ) ( NNS pullbacks ) ) ( PP ( IN of ) ( NP ( JJ recent ) ( NNS days ) ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( DT the ) ( JJ big ) ( NNS securities ) ( NN firm ) ) ( VP ( MD will ) ( ADVP-TMP ( RB no ) ( RB longer ) ) ( VP ( VB execute ) ( NP ( JJ stock-index ) ( NN arbitrage ) ( NNS trades ) ) ( PP ( IN for ) ( NP ( NNS customers ) ) ) ) ) ) ) ) )

Merrill 's move is one of the most sweeping program-trading pullbacks of recent days because the big securities firm will no longer execute stock-index arbitrage trades for customers


( S ( NP-SBJ-1 ( JJS Most ) ( NNP Wall ) ( NNP Street ) ( NNS firms ) ) ( PP-LOC ( IN in ) ( S-NOM ( VP ( VBG pulling ) ( PRT ( RB back ) ) ) ) ) ( VP ( VBP have ) ( VP ( ADVP ( RB merely ) ) ( VBN stopped ) ( NP ( JJ such ) ( VBG trading ) ) ( PP ( IN for ) ( NP ( PRP$ their ) ( JJ own ) ( NNS accounts ) ) ) ) ) )

Most Wall Street firms in pulling back have merely stopped such trading for their own accounts


( S ( NP-SBJ ( NNP Merrill ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ main ) ( NNS firms ) ) ( VP ( VBG executing ) ( NP ( NN index ) ( NN arbitrage ) ) ( PP ( IN for ) ( NP ( NNS customers ) ) ) ) ) ) ) ) ) )

Merrill has been one of the main firms executing index arbitrage for customers


( S ( NP-SBJ ( NNP Merrill ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG lobbying ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ significant ) ( JJ regulatory ) ( NNS controls ) ) ( PP ( IN on ) ( NP ( NN program ) ( NN trading ) ) ) ( PP ( VBG including ) ( NP ( NP ( JJ tough ) ( NN margin ) ( PRN ( CC or ) ( NN down-payment ) ) ( NNS requirements ) ) ( CC and ) ( NP ( NP ( NNS limits ) ) ( PP ( IN on ) ( NP ( NN price ) ( NNS moves ) ) ) ( PP ( IN for ) ( NP ( JJ program-driven ) ( JJ financial ) ( NNS futures ) ) ) ) ) ) ) ) ) ) ) ) ) )

Merrill also said it is lobbying for significant regulatory controls on program trading including tough margin or down-payment requirements and limits on price moves for program-driven financial futures


( S ( NP-SBJ ( NNP Merrill ) ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( NN statement ) ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Chairman ) ( NNP William ) ( NNP A. ) ( NNP Schreyer ) ) ( CC and ) ( NP ( NNP President ) ( NNP Daniel ) ( NNP P. ) ( NNP Tully ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( S ( NP-SBJ ( NN index ) ( NN arbitrage ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( ADVP-MNR ( RB clearly ) ) ( VP ( VBN identified ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJ investing ) ( NN public ) ( POS 's ) ) ( NN mind ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( JJ contributing ) ( NN factor ) ) ( PP ( TO to ) ( NP ( JJ excess ) ( NN market ) ( NN volatility ) ) ) ) ) ) ) ) ) ( IN so ) ( S ( NP-SBJ ( NNP Merrill ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB execute ) ( NP ( JJ such ) ( NNS trades ) ) ( SBAR-TMP ( IN until ) ( S ( NP-SBJ ( JJ effective ) ( NNS controls ) ) ( VP ( VBP are ) ( PP-LOC-PRD ( IN in ) ( NP ( NN place ) ) ) ) ) ) ) ) ) ) ) ) )

Merrill in a statement by Chairman William A. Schreyer and President Daniel P. Tully said index arbitrage has been clearly identified in the investing public 's mind as a contributing factor to excess market volatility so Merrill wo n't execute such trades until effective controls are in place


( S ( PP-LOC ( IN In ) ( NP ( JJ stock-index ) ( NN arbitrage ) ) ) ( NP-SBJ ( NNS traders ) ) ( VP ( VBP buy ) ( CC and ) ( VBP sell ) ( NP ( NP ( JJ large ) ( NNS amounts ) ) ( PP ( IN of ) ( NP ( NNS stocks ) ) ) ( PP ( IN with ) ( NP ( NP ( VBG offsetting ) ( NNS trades ) ) ( PP ( IN in ) ( NP ( JJ stock-index ) ( NNS futures ) ( CC and ) ( NNS options ) ) ) ) ) ) ) )

In stock-index arbitrage traders buy and sell large amounts of stocks with offsetting trades in stock-index futures and options


( S ( NP-SBJ ( DT The ) ( NN idea ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB lock ) ( PRT ( RP in ) ) ( NP ( NP ( NNS profits ) ) ( PP ( IN from ) ( NP ( NP ( JJ short-term ) ( NNS swings ) ) ( PP-LOC ( IN in ) ( NP ( JJ volatile ) ( NNS markets ) ) ) ) ) ) ) ) ) ) )

The idea is to lock in profits from short-term swings in volatile markets


( S ( S ( NP-TMP ( JJ Last ) ( NNP Thursday ) ) ( NP-SBJ ( NNP PaineWebber ) ( NNP Group ) ( NNP Inc. ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB cease ) ( NP ( NN index ) ( NN arbitrage ) ) ( ADVP ( RB altogether ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT the ) ( JJ firm ) ) ( VP ( VBD was ) ( RB n't ) ( NP-PRD ( NP ( ADJP ( RB as ) ( JJ big ) ) ( DT an ) ( NN index ) ( NN arbitrager ) ) ( SBAR ( IN as ) ( S ( NP-SBJ ( NN Merrill ) ) ( VP ( VBZ is ) ) ) ) ) ) ) )

Last Thursday PaineWebber Group Inc. also said it would cease index arbitrage altogether but the firm was n't as big an index arbitrager as Merrill is


( S ( NP-SBJ ( NP ( JJ Other ) ( JJ large ) ( NNS firms ) ) ( PP ( VBG including ) ( NP ( NP ( NNP Bear ) ( NNP Stearns ) ( CC & ) ( NNP Co. ) ) ( CC and ) ( NP ( NNP Morgan ) ( NNP Stanley ) ( CC & ) ( NNP Co. ) ) ) ) ) ( NP-TMP ( JJ last ) ( NN week ) ) ( VP ( VBD announced ) ( NP ( NP ( DT a ) ( NN pullback ) ) ( PP ( IN from ) ( NP ( NN index ) ( NN arbitrage ) ) ) ( PRN ( CC but ) ( PP ( ADVP ( RB only ) ) ( IN for ) ( NP ( NP ( DT the ) ( NNS firms ) ( POS ' ) ) ( JJ own ) ( NNS accounts ) ) ) ) ) ) )

Other large firms including Bear Stearns & Co. and Morgan Stanley & Co. last week announced a pullback from index arbitrage but only for the firms ' own accounts


( S ( NP-SBJ ( NNP Kidder ) ) ( VP ( VBD made ) ( NP ( NP ( DT an ) ( JJ abrupt ) ( NN about-face ) ) ( PP ( IN on ) ( NP ( NN program ) ( NN trading ) ) ) ) ( NP-TMP ( NN yesterday ) ) ( PP-TMP ( IN after ) ( NP ( NP ( DT a ) ( JJ special ) ( NN meeting ) ) ( PP ( IN between ) ( NP ( NP ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( NN president ) ( CC and ) ( JJ chief ) ( NN executive ) ( NN officer ) ) ( NP ( NNP Michael ) ( NNP Carpenter ) ) ) ( CC and ) ( NP ( PRP$ its ) ( JJ senior ) ( NNS managers ) ) ) ) ) ) ) )

Kidder made an abrupt about-face on program trading yesterday after a special meeting between the firm 's president and chief executive officer Michael Carpenter and its senior managers


( S ( ADVP-TMP ( NP ( RB Just ) ( DT a ) ( NN week ) ) ( RB ago ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ( VP ( ADVP-MNR ( RB staunchly ) ) ( VBD defended ) ( NP ( NP ( NN index ) ( NN arbitrage ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Kidder ) ) ( NP ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ active ) ) ( NN index-arbitrage ) ( NN trading ) ( NN firm ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN stock ) ( NN exchange ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ) ) )

Just a week ago Mr. Carpenter staunchly defended index arbitrage at Kidder the most active index-arbitrage trading firm on the stock exchange this year


( S-1 ( S ( NP-SBJ ( NN Index ) ( NN arbitrage ) ) ( PRN ( S ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ( VP ( VBD said ) ( NP-TMP ( JJ last ) ( NN week ) ) ) ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( JJ negative ) ( NN impact ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN market ) ) ( PP ( IN as ) ( NP ( DT a ) ( NN whole ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNP Kidder ) ( POS 's ) ) ( NNS customers ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ sophisticated ) ( RB enough ) ( S ( VP ( TO to ) ( VP ( VB know ) ( NP ( DT that ) ) ) ) ) ) ) ) )

Index arbitrage Mr. Carpenter said last week does n't have a negative impact on the market as a whole and Kidder 's customers were sophisticated enough to know that


( S ( CC But ) ( NP-TMP ( NN yesterday ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( JJ big ) ( JJ institutional ) ( NNS investors ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB identify ) ) ) ) ) ) ( VP ( VBD told ) ( NP ( PRP us ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB do ) ( NP ( NN business ) ) ( PP-CLR ( IN with ) ( NP ( NP ( NNS firms ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD continued ) ( S ( VP ( TO to ) ( VP ( VB do ) ( NP ( NN index ) ( NN arbitrage ) ) ( PP ( IN for ) ( NP ( PRP$ their ) ( JJ own ) ( NNS accounts ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But yesterday Mr. Carpenter said big institutional investors which he would n't identify told us they would n't do business with firms that continued to do index arbitrage for their own accounts


( S ( S-TPC-2 ( NP-SBJ ( PRP We ) ) ( VP ( VBD were ) ( VP ( VBG following ) ( NP ( NP ( DT the ) ( NN trend ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ our ) ( NNS competitors ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD were ) ( PP-PRD ( IN under ) ( NP ( NP ( NN pressure ) ) ( PP ( IN from ) ( NP ( NNS institutions ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

We were following the trend of our competitors who were under pressure from institutions he said


( S ( NP-SBJ ( NNP Kidder ) ) ( ADVP-TMP ( ADVP ( RB so ) ( RB far ) ) ( NP ( DT this ) ( NN year ) ) ) ( VP ( VP ( VBZ has ) ( VP ( VBN executed ) ( NP ( NP ( DT a ) ( JJ monthly ) ( NN average ) ) ( PP ( IN of ) ( NP ( QP ( CD 37.8 ) ( CD million ) ) ( NNS shares ) ) ) ( PP ( IN in ) ( NP ( NN index-arbitrage ) ( NN trading ) ) ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ second ) ( RB only ) ( PP ( TO to ) ( NP ( NNP Morgan ) ( NNP Stanley ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ overall ) ( NN program ) ( NN trading ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ includes ) ( NP ( NN index ) ( NN arbitrage ) ) ) ) ) ) ) ) ) ) )

Kidder so far this year has executed a monthly average of 37.8 million shares in index-arbitrage trading and is second only to Morgan Stanley in overall program trading which includes index arbitrage


( S ( NP-SBJ ( NP ( JJS Most ) ) ( PP ( IN of ) ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( NN program ) ( NN trading ) ) ) ) ( VP ( VBZ is ) ( PP-PRD ( IN for ) ( NP ( PRP$ its ) ( JJ own ) ( NN account ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) )

Most of Kidder 's program trading is for its own account according to the New York Stock Exchange


( S ( NP-SBJ ( NNP Kidder ) ) ( VP ( VBD denied ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NP ( NNP GE ) ( POS 's ) ) ( NN chairman ) ( CC and ) ( JJ chief ) ( NN executive ) ) ( NP ( NNP John ) ( NNP F. ) ( NNP Welch ) ) ) ( VP ( VBD had ) ( NP ( NP ( NN anything ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB do ) ( PP ( IN with ) ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( NN decision ) ) ) ) ) ) ) ) ) ) ) ) )

Kidder denied that GE 's chairman and chief executive John F. Welch had anything to do with Kidder 's decision


( S ( CC But ) ( S ( NP-SBJ ( QP ( IN at ) ( JJS least ) ( CD one ) ) ( NN chief ) ( NN executive ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBD called ) ( NP ( NNP Mr. ) ( NNP Welch ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB complain ) ( PP-CLR ( IN about ) ( NP ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( JJ aggressive ) ( NN use ) ) ( PP ( IN of ) ( NP ( NN program ) ( NN trading ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( JJ other ) ( NN market ) ( NNS sources ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD understood ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Welch ) ) ( VP ( VBD received ) ( NP ( NP ( JJ many ) ( NN phone ) ( NNS calls ) ) ( VP ( VBG complaining ) ( PP-CLR ( IN about ) ( NP ( NP ( NP ( NNP Kidder ) ( POS 's ) ) ( NN reliance ) ) ( PP ( IN on ) ( NP ( NN index ) ( NN arbitrage ) ) ) ( PP ( IN as ) ( NP ( DT a ) ( JJ major ) ( NN business ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But at least one chief executive said he called Mr. Welch to complain about Kidder 's aggressive use of program trading and other market sources said they understood that Mr. Welch received many phone calls complaining about Kidder 's reliance on index arbitrage as a major business


( S ( NP-SBJ ( NNP Kidder ) ) ( VP ( VBZ has ) ( ADVP ( RB generally ) ) ( VP ( VBN been ) ( ADJP-PRD ( JJ sensitive ) ( PP ( TO to ) ( NP ( NNS suggestions ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP GE ) ) ( VP ( VBZ makes ) ( NP ( NNS decisions ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( NNP Kidder ) ( NN unit ) ) ) ) ) ) ) ) ) ) ) )

Kidder has generally been sensitive to suggestions that GE makes decisions for its Kidder unit


( S ( S-TPC-3 ( NP-SBJ ( PRP$ Our ) ( NN decision ) ) ( VP ( VBD had ) ( NP ( NP ( NN nothing ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB do ) ( PP ( IN with ) ( NP ( NP ( DT any ) ( NN pressure ) ) ( SBAR ( S ( NP-SBJ ( NNP Mr. ) ( NNP Welch ) ) ( VP ( VBD received ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Carpenter ) ) ( VP ( VBD said ) ) )

Our decision had nothing to do with any pressure Mr. Welch received Mr. Carpenter said


( S ( NP-SBJ ( DT This ) ) ( VP ( VBD was ) ( NP-PRD ( DT a ) ( NNP Kidder ) ( NNP Peabody ) ( JJ stand-alone ) ( NN decision ) ) ) )

This was a Kidder Peabody stand-alone decision


( S ( NP-SBJ ( NP ( DT A ) ( NN spokeswoman ) ) ( PP ( IN for ) ( NP ( NNP GE ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Fairfield ) ) ( NP ( NNP Conn. ) ) ) ) ) ( VP ( VP ( VBD said ) ( S ( NP-SBJ ( RB Absolutely ) ( DT no ) ( PRP one ) ) ( VP ( VBD spoke ) ( PP-CLR ( TO to ) ( NP ( NNP Jack ) ( NNP Welch ) ) ) ( PP ( IN on ) ( NP ( DT this ) ( NN subject ) ) ) ) ) ) ( CC and ) ( VP ( VBD added ) ( S ( NP-SBJ ( NP ( NN Anyone ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ claims ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD talked ) ( PP-CLR ( TO to ) ( NP ( NNP Jack ) ( NNP Welch ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG telling ) ( NP ( DT the ) ( NN truth ) ) ) ) ) ) ) )

A spokeswoman for GE in Fairfield Conn. said Absolutely no one spoke to Jack Welch on this subject and added Anyone who claims they talked to Jack Welch is n't telling the truth


( S ( NP-SBJ ( NP ( NNS Supporters ) ) ( PP ( IN of ) ( NP ( NN index ) ( NN arbitrage ) ) ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN been ) ( VP ( ADVP-MNR ( RB publicly ) ) ( VBG sticking ) ( PRT ( RP up ) ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( NN trading ) ( NN strategy ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( DT some ) ) ( VP ( VBD did ) ( PP-TMP ( IN during ) ( NP ( NP ( DT the ) ( JJ post-crash ) ( NN outcry ) ) ( PP ( IN of ) ( NP ( CD 1987 ) ) ) ) ) ) ) ) ) ) ) )

Supporters of index arbitrage have n't been publicly sticking up for the trading strategy as some did during the post-crash outcry of 1987


( S ( CC But ) ( NP-SBJ ( NNP Merrill ) ( NNP Lynch ) ) ( PP-LOC ( IN in ) ( NP ( NP ( PRP$ its ) ( NN statement ) ) ( PP ( IN about ) ( S-NOM ( VP ( VBG pulling ) ( PP-CLR ( RB out ) ( PP ( IN of ) ( NP ( NN index ) ( NN arbitrage ) ) ) ) ) ) ) ) ) ( VP ( VBD suggested ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( JJ current ) ( NN debate ) ) ( VP ( VBZ has ) ( VP ( VBN missed ) ( NP ( DT the ) ( NN mark ) ) ) ) ) ) ) )

But Merrill Lynch in its statement about pulling out of index arbitrage suggested that the current debate has missed the mark


( S ( NP-SBJ ( NN Merrill ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ continues ) ( S ( VP ( TO to ) ( VP ( VB believe ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS causes ) ) ( PP ( IN of ) ( NP ( JJ excess ) ( NN market ) ( NN volatility ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADJP ( ADVP ( RB far ) ( RBR more ) ) ( JJ complex ) ) ( PP ( IN than ) ( NP ( DT any ) ( JJ particular ) ( NN computer ) ( NN trading ) ( NN strategy ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Merrill said it continues to believe that the causes of excess market volatility are far more complex than any particular computer trading strategy


( S ( ADVP ( RB Indeed ) ) ( NP-SBJ ( EX there ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( JJ legitimate ) ( NN hedging ) ( NNS strategies ) ) ( VP ( VBN used ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS managers ) ) ( PP ( IN of ) ( NP ( NP ( JJ large ) ( NNS portfolios ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NN pension ) ( NNS funds ) ) ) ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP involve ) ( NP ( NP ( NN program ) ( NN trading ) ) ( PP ( IN as ) ( NP ( NP ( DT a ) ( NN means ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG protecting ) ( NP ( NP ( DT the ) ( NNS assets ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NN pension ) ( NNS beneficiaries ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Indeed there are legitimate hedging strategies used by managers of large portfolios such as pension funds that involve program trading as a means of protecting the assets of their pension beneficiaries


( S ( S-TPC-2 ( S ( NP-SBJ-1 ( NP ( NNP Merrill ) ( POS 's ) ) ( NN index ) ( NNS arbitragers ) ) ( VP ( MD will ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB do ) ( NP ( NP ( JJ other ) ( NNS kinds ) ) ( PP ( IN of ) ( NP ( JJ computer-assisted ) ( NN program ) ( NN trading ) ) ) ) ) ) ) ) ) ) ( IN so ) ( S ( NP-SBJ ( EX there ) ) ( ADVP ( RB probably ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB be ) ( NP-PRD ( DT any ) ( NNS layoffs ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NN firm ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNS people ) ) ( ADJP ( JJ familiar ) ( PP ( IN with ) ( NP ( NP ( NNP Merrill ) ( POS 's ) ) ( NN program ) ( NN operation ) ) ) ) ) ( VP ( VBD said ) ) )

Merrill 's index arbitragers will continue to do other kinds of computer-assisted program trading so there probably wo n't be any layoffs at the firm people familiar with Merrill 's program operation said


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( NNP Bear ) ( NNP Stearns ) ( NNP Chairman ) ( CC and ) ( NNP Chief ) ( NNP Executive ) ( NNP Alan ) ( NNP C. ) ( NNP Greenberg ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ his ) ( NN firm ) ) ( VP ( MD will ) ( VP ( VB continue ) ( NP ( JJ stock-index ) ( NN arbitrage ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( NNS clients ) ) ) ) ) ) ) ) )

Meanwhile Bear Stearns Chairman and Chief Executive Alan C. Greenberg said his firm will continue stock-index arbitrage for its clients


( S ( PP-LOC ( IN At ) ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( JJ annual ) ( NN meeting ) ) ) ( NP-TMP ( JJ last ) ( NN night ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD told ) ( NP ( NNS shareholders ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN index ) ( NN arbitrage ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB go ) ( PRT ( RP away ) ) ( PP ( IN despite ) ( NP ( DT the ) ( JJ public ) ( NN outcry ) ) ) ) ) ) ) ) )

At the firm 's annual meeting last night he told shareholders that index arbitrage wo n't go away despite the public outcry


( S ( S-TPC-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ-2 ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB stop ) ( NP ( NN index ) ( NN arbitrage ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG causing ) ( S ( NP-SBJ ( DT a ) ( JJ few ) ( NNP Wall ) ( NNP Street ) ( NNS firms ) ) ( VP ( TO to ) ( VP ( VB quit ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ crazy ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Greenberg ) ) ( VP ( VBD said ) ) )

If they think they are going to stop index arbitrage by causing a few Wall Street firms to quit they are crazy Mr. Greenberg said


( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( VBZ 's ) ( RB not ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB stop ) ( NP ( PRP it ) ) ( ADVP ( IN at ) ( DT all ) ) ) ) ) ) ) )

It 's not going to stop it at all


( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Greenberg ) ) ( S-ADV ( VP ( VBG noting ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ stock-index ) ( NN arbitrage ) ) ( VP ( VBZ rises ) ( CC and ) ( VBZ ebbs ) ( PP-CLR ( IN with ) ( NP ( NP ( NN stock ) ( NN market ) ( POS 's ) ) ( NN volatility ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN for ) ( NP ( NP ( DT the ) ( JJ first ) ( CD four ) ( NNS months ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( JJ fiscal ) ( NN year ) ) ( VP ( NN beginning ) ( PP-TMP-CLR ( IN in ) ( NP ( NNP July ) ) ) ) ) ) ) ) ( NP-SBJ ( JJ stock-index ) ( NN arbitrage ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT a ) ( JJ break-even ) ( NN proposition ) ) ( PP ( IN for ) ( NP ( NNP Bear ) ( NNP Stearns ) ) ) ) ) ) ) ) ) )

Mr. Greenberg noting that stock-index arbitrage rises and ebbs with stock market 's volatility said that for the first four months of the firm 's fiscal year beginning in July stock-index arbitrage had been a break-even proposition for Bear Stearns


( S ( PP ( IN In ) ( NP ( NP ( NN response ) ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN shareholder ) ( POS 's ) ) ( NN suggestion ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Greenberg ) ) ( VP ( VBD agreed ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ European ) ( NNS firms ) ) ( VP ( MD will ) ( VP ( ADVP ( RB simply ) ) ( VB pick ) ( PRT ( RP up ) ) ( NP ( NP ( DT the ) ( NN index-arbitrage ) ( NN business ) ) ( VP ( VBD left ) ( PRT ( RP behind ) ) ( PP ( IN by ) ( NP-LGS ( NNP U.S. ) ( NNS institutions ) ) ) ) ) ) ) ) ) ) )

In response to a shareholder 's suggestion Mr. Greenberg agreed that European firms will simply pick up the index-arbitrage business left behind by U.S. institutions


( S ( NP-SBJ ( NP ( NN Pressure ) ) ( PP ( IN from ) ( NP ( JJ big ) ( JJ institutional ) ( NNS investors ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT the ) ( JJ major ) ( NN catalyst ) ) ( PP ( IN for ) ( NP ( NP ( NNP Wall ) ( NNP Street ) ( POS 's ) ) ( JJ program-trading ) ( NN pullback ) ) ) ) ) ) )

Pressure from big institutional investors has been the major catalyst for Wall Street 's program-trading pullback


( S ( CC And ) ( NP-SBJ ( EX there ) ) ( VP ( VBD was ) ( NP-PRD ( NN speculation ) ) ( NP-TMP ( NN yesterday ) ) ( SBAR-2 ( IN that ) ( S ( NP-SBJ ( NP ( NNP Fidelity ) ( NNP Investments ) ) ( CC and ) ( NP ( JJ other ) ( JJ large ) ( JJ mutual-fund ) ( NNS companies ) ) ) ( VP ( MD might ) ( ADVP-TMP ( RB soon ) ) ( VP ( VB follow ) ( NP ( NP ( DT the ) ( NN lead ) ) ( PP ( IN of ) ( NP ( NP ( NNP Kemper ) ( NNP Corp. ) ) ( CC and ) ( NP ( JJ other ) ( NNS institutions ) ) ) ) ( PP-LOC ( IN in ) ( S-NOM ( VP ( VBG cutting ) ( PRT ( RP off ) ) ( NP ( NP ( VBG trading ) ( NN business ) ) ( PP ( TO to ) ( NP ( NP ( NNS securities ) ( NNS firms ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP do ) ( NP ( VB program ) ( NN trading ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

And there was speculation yesterday that Fidelity Investments and other large mutual-fund companies might soon follow the lead of Kemper Corp. and other institutions in cutting off trading business to securities firms that do program trading


( S ( NP-SBJ-1 ( NP ( DT A ) ( NNP Fidelity ) ( NN spokesman ) ) ( PP-LOC ( IN in ) ( NP ( NNP Boston ) ) ) ) ( VP ( VBD denied ) ( NP ( DT the ) ( NN speculation ) ) ( S-ADV ( VP ( VBG saying ) ( SBAR ( S ( NP-SBJ ( DT the ) ( JJ program-trading ) ( NN issue ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJR more ) ( PP ( IN of ) ( NP ( DT a ) ( JJ regulatory ) ( NN problem ) ) ) ) ) ) ) ) ) ) )

A Fidelity spokesman in Boston denied the speculation saying the program-trading issue was more of a regulatory problem


( S ( CC But ) ( NP-SBJ ( NP ( DT a ) ( ADJP ( RB much ) ( JJR smaller ) ) ( JJ mutual ) ( NN fund ) ( NN company ) ) ( NP ( NP ( NP ( DT the ) ( NNP USAA ) ( NNP Investment ) ( NNP Management ) ( NNP Co. ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP USAA ) ) ) ) ( NP-LOC ( NP ( NNP San ) ( NNP Antonio ) ) ( NP ( NNP Texas ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD informed ) ( NP ( CD nine ) ( JJ national ) ( NN brokerage ) ( NNS firms ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB cease ) ( NP ( NP ( NN business ) ) ( PP ( IN with ) ( NP ( PRP them ) ) ) ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP stop ) ( NP ( NN index-arbitrage ) ( NN trading ) ) ) ) ) ) ) ) ) ) ) ) ) )

But a much smaller mutual fund company the USAA Investment Management Co. unit of USAA San Antonio Texas said it informed nine national brokerage firms it will cease business with them unless they stop index-arbitrage trading


( S ( NP-SBJ ( NP ( NNP USAA ) ) ( PP ( IN with ) ( NP ( CD 400,000 ) ( JJ mutual ) ( NN fund ) ( NNS accounts ) ) ) ) ( VP ( VBZ manages ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 10 ) ( CD billion ) ) ) ( SBAR ( WHNP-1 ( WHNP ( QP ( CD 2 ) ( CD billion ) ) ) ( WHPP ( IN of ) ( WHNP ( WDT which ) ) ) ) ( S ( VP ( VBZ is ) ( PP-LOC-PRD ( IN in ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ) ) ) ) ) )

USAA with 400,000 mutual fund accounts manages more than 10 billion 2 billion of which is in the stock market


( S ( NP-SBJ ( NP ( NNP Michael ) ( NNP J.C. ) ( NNP Roth ) ) ( NP ( NNP USAA ) ( NN executive ) ( NN vice ) ( NN president ) ) ) ( VP ( VBN called ) ( S ( NP-SBJ ( NN program ) ( NN trading ) ) ( ADJP-PRD ( JJ mindless ) ) ) ) )

Michael J.C. Roth USAA executive vice president called program trading mindless


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT no ) ( JJ valid ) ( NN investment ) ( NN reason ) ) ( SBAR ( IN for ) ( S ( NP-SBJ ( JJ stock-index ) ( NNS futures ) ) ( VP ( TO to ) ( VP ( VB exist ) ) ) ) ) ) ) ) ) ) )

He said there is no valid investment reason for stock-index futures to exist


( S ( NP-SBJ ( DT A ) ( JJ program-bashing ) ( NN move ) ) ( VP ( VBZ is ) ( ADVP ( RB clearly ) ) ( ADVP-PRD ( RP on ) ) ) )

A program-bashing move is clearly on


( S ( NP-SBJ ( NP ( NNP Charles ) ( NNP Wohlstetter ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NNP Contel ) ) ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBZ is ) ( VP ( VBG helping ) ( VP ( VB organize ) ( NP ( NP ( DT the ) ( NN alliance ) ) ( PP ( IN of ) ( NP ( NNP Big ) ( JJ Board-listed ) ( NNS firms ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD had ) ( NP ( NP ( DT no ) ( NN time ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB work ) ) ) ) ) ) ( NP-TMP ( NN yesterday ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD received ) ( NP ( NP ( ADJP ( RB so ) ( JJ many ) ) ( NN phone ) ( NNS calls ) ( NNS faxes ) ( CC and ) ( NNS letters ) ) ( VP ( VBG supporting ) ( NP ( PRP$ his ) ( NN view ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT the ) ( NNP Big ) ( NNP Board ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN turned ) ( PP-CLR ( IN into ) ( NP ( DT a ) ( NN gambling ) ( NN casino ) ) ) ( PP ( IN by ) ( NP-LGS ( NN program ) ( NNS traders ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Charles Wohlstetter chairman of Contel who is helping organize the alliance of Big Board-listed firms said he had no time to work yesterday because he received so many phone calls faxes and letters supporting his view that the Big Board has been turned into a gambling casino by program traders


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP are ) ( VP ( VBG reaching ) ( NP ( NP ( DT the ) ( NN moment ) ) ( PP ( IN of ) ( NP ( NN truth ) ) ) ) ( PP-LOC ( IN on ) ( NP ( NNP Wall ) ( NNP Street ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Rep. ) ( NNP Edward ) ( NNP J. ) ( NNP Markey ) ) ( PRN ( NP ( NNP D. ) ) ( NP-LOC ( NNP Mass. ) ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP House ) ( NN subcommittee ) ) ( PP ( IN on ) ( NP ( NNS telecommunications ) ( CC and ) ( NN finance ) ) ) ) ) ) ) )

We are reaching the moment of truth on Wall Street said Rep. Edward J. Markey D. Mass. chairman of the House subcommittee on telecommunications and finance


( S ( NP-SBJ-1 ( NNP Wall ) ( NNP Street ) ) ( VP ( VBZ is ) ( VP ( VBG beginning ) ( S ( VP ( TO to ) ( VP ( VB realize ) ( PRN ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NNP Shakespeare ) ) ( VP ( VBD said ) ) ) ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN trouble ) ) ( VP ( VBZ is ) ( PP-LOC-PRD ( RB not ) ( PP ( IN in ) ( NP ( PRP$ our ) ( NNS stars ) ) ) ( CC but ) ( PP ( IN in ) ( NP ( PRP ourselves ) ) ) ) ) ) ) ) ) ) ) ) )

Wall Street is beginning to realize as Shakespeare said the trouble is not in our stars but in ourselves


( S ( NP-SBJ ( NP ( NNP Craig ) ( NNP Torres ) ) ( CC and ) ( NP ( NNP Anne ) ( NNP Newman ) ) ) ( VP ( VBD contributed ) ( PP-CLR ( TO to ) ( NP ( DT this ) ( NN article ) ) ) ) )

Craig Torres and Anne Newman contributed to this article


( S ( NP-SBJ ( NNP Mitsui ) ( CC & ) ( NNP Co. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD started ) ( NP ( NP ( DT a ) ( JJ joint ) ( NN venture ) ) ( PP ( IN with ) ( NP ( NP ( NNP Dae ) ( NNP Woong ) ( NNP Chemical ) ( NNP Co. ) ) ( NP ( NP ( DT a ) ( JJ major ) ( JJ pharmaceutical ) ( NN manufacturer ) ) ( PP-LOC ( IN in ) ( NP ( NNP South ) ( NNP Korea ) ) ) ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB manufacture ) ( NP ( JJ antibiotic ) ( NNS medicines ) ) ) ) ) ) ) ) ) ) ) )

Mitsui & Co. said it started a joint venture with Dae Woong Chemical Co. a major pharmaceutical manufacturer in South Korea to manufacture antibiotic medicines


( S ( NP-SBJ-1 ( DT The ) ( JJ new ) ( NN company ) ) ( VP ( VBZ is ) ( VP ( VBN capitalized ) ( PP-CLR ( IN at ) ( NP ( QP ( RB about ) ( CD 3.5 ) ( CD million ) ) ) ) ) ) )

The new company is capitalized at about 3.5 million


( S ( NP-SBJ ( NNS Mitsui ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ-2 ( DT the ) ( JJ antibiotic ) ( NNS products ) ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN exported ) ( PP-DIR ( TO to ) ( NP ( NP ( NNP Southeast ) ( NNP Asia ) ) ( CC and ) ( NP ( NNP Africa ) ) ) ) ) ) ) ) ) )

Mitsui expects the antibiotic products to be exported to Southeast Asia and Africa


( S ( NP-SBJ-1 ( PRP It ) ) ( ADVP ( RB also ) ) ( VP ( VBZ hopes ) ( S ( VP ( TO to ) ( VP ( VB enter ) ( NP ( DT the ) ( NNP U.S. ) ( NN market ) ) ) ) ) ) )

It also hopes to enter the U.S. market


( S ( NP-SBJ-1 ( NN Nothing ) ) ( VP ( VBD was ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB hold ) ( PRT ( RP up ) ) ( NP ( NP ( DT the ) ) ( JJ long-delayed ) ( NN settlement ) ( PP ( IN of ) ( NP ( NP ( NNP Britton ) ) ( PP ( IN vs. ) ( NP ( NNP Thomasini ) ) ) ) ) ) ) ) ) ) ) )

Nothing was going to hold up the long-delayed settlement of Britton vs. Thomasini


( FRAG ( RB Not ) ( RB even ) ( NP ( DT an ) ( NN earthquake ) ) )

Not even an earthquake


( S ( PP-TMP ( IN On ) ( NP ( NP ( DT the ) ( NN afternoon ) ) ( PP ( IN of ) ( NP ( NNP Oct. ) ( CD 17 ) ) ) ) ) ( PP-TMP ( IN after ) ( NP ( NP ( NNS hours ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG haggling ) ( PP-CLR ( IN with ) ( NP ( CD five ) ( NNS insurance-claims ) ( NNS adjusters ) ) ) ( PP ( IN over ) ( S-NOM ( VP ( VBG settling ) ( NP ( DT a ) ( NN toxic-waste ) ( NN suit ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( CD four ) ( NNS lawyers ) ) ( VP ( VBD had ) ( NP ( DT an ) ( NN agreement ) ) ( PP ( IN in ) ( NP ( NN hand ) ) ) ) )

On the afternoon of Oct. 17 after hours of haggling with five insurance-claims adjusters over settling a toxic-waste suit four lawyers had an agreement in hand


( S ( CC But ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NNP Judge ) ( NNP Thomas ) ( NNP M. ) ( NNP Jenkins ) ) ( VP ( VBD donned ) ( NP ( PRP$ his ) ( NNS robes ) ) ( SBAR-PRP ( IN so ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD could ) ( VP ( VB give ) ( NP ( JJ final ) ( NN approval ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( JJ major ) ( NN earthquake ) ) ( VP ( VBD struck ) ( S-ADV ( NP-SBJ ( PRP$ its ) ( NN epicenter ) ) ( ADVP-LOC-PRD ( RB not ) ( RB far ) ( PP ( IN from ) ( NP ( NP ( PRP$ his ) ( NN courtroom ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Redwood ) ( NNP City ) ) ( NP ( NNP Calif ) ) ) ) ) ) ) ) ) )

But as Judge Thomas M. Jenkins donned his robes so he could give final approval the major earthquake struck its epicenter not far from his courtroom in Redwood City Calif


( S ( S ( NP-SBJ ( DT The ) ( NNS walls ) ) ( VP ( VBD shook ) ) ) ( S ( NP-SBJ ( DT the ) ( NN building ) ) ( VP ( VBD rocked ) ) ) )

The walls shook the building rocked


( S ( PP ( IN For ) ( NP ( DT a ) ( NN while ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD looked ) ( SBAR ( IN like ) ( S ( NP-SBJ ( NP ( DT the ) ( NN deal ) ) ( PRN ( S ( RB not ) ( VP ( TO to ) ( VP ( VB mention ) ( NP ( NP ( DT the ) ( NN courtroom ) ) ( NP ( PRP itself ) ) ) ) ) ) ) ) ( VP ( VBD was ) ( PP-PRD ( IN on ) ( NP ( NP ( DT the ) ( NN verge ) ) ( PP ( IN of ) ( NP ( NN collapse ) ) ) ) ) ) ) ) ) )

For a while it looked like the deal not to mention the courtroom itself was on the verge of collapse


( SINV ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN judge ) ) ( VP ( VP ( VBD came ) ( ADVP-DIR ( RB out ) ) ) ( CC and ) ( VP ( VBD said ) ( S ( ADVP ( RB Quick ) ) ( VP ( VB let ) ( S ( NP-SBJ ( POS 's ) ) ( VP ( VB put ) ( NP ( DT this ) ) ( PP-PUT ( IN on ) ( NP ( DT the ) ( NN record ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Sandy ) ( NNP Bettencourt ) ) ( NP ( NP ( DT the ) ( NN judge ) ( POS 's ) ) ( NN court ) ( NN reporter ) ) ) )

The judge came out and said Quick let 's put this on the record says Sandy Bettencourt the judge 's court reporter


( S ( NP-SBJ ( PRP I ) ) ( VP ( VBD said ) ( ADVP-CLR ( RB NOW ) ) ) )

I said NOW


( S ( NP-SBJ ( PRP I ) ) ( VP ( VBD was ) ( VP ( VBG shaking ) ( NP-TMP ( DT the ) ( JJ whole ) ( NN time ) ) ) ) )

I was shaking the whole time


( S ( NP-SBJ ( DT A ) ( JJ 10-gallon ) ( NN water ) ( NN cooler ) ) ( VP ( VBD had ) ( VP ( VBN toppled ) ( PP-LOC ( IN onto ) ( NP ( DT the ) ( NN floor ) ) ) ( S-ADV ( VP ( VBG soaking ) ( NP ( DT the ) ( JJ red ) ( NN carpeting ) ) ) ) ) ) )

A 10-gallon water cooler had toppled onto the floor soaking the red carpeting


( S ( S ( NP-SBJ ( NNS Lights ) ) ( VP ( VBD flickered ) ( ADVP ( RP on ) ( CC and ) ( RP off ) ) ) ) ( S ( NP-SBJ ( NN plaster ) ) ( VP ( VBD dropped ) ( PP-DIR ( IN from ) ( NP ( DT the ) ( NN ceiling ) ) ) ) ) ( S ( NP-SBJ ( DT the ) ( NNS walls ) ) ( ADVP ( RB still ) ) ( VP ( VBD shook ) ) ) ( CC and ) ( S ( NP-SBJ ( DT an ) ( NN evacuation ) ( NN alarm ) ) ( VP ( VBD blared ) ( ADVP-LOC ( RB outside ) ) ) ) )

Lights flickered on and off plaster dropped from the ceiling the walls still shook and an evacuation alarm blared outside


( S ( NP-SBJ ( DT The ) ( CD four ) ( NNS lawyers ) ) ( VP ( VBD climbed ) ( PP-DIR ( IN out ) ( PP ( IN from ) ( PP ( IN under ) ( NP ( DT a ) ( NN table ) ) ) ) ) ) )

The four lawyers climbed out from under a table


( SINV ( S-TPC-1 ( VP ( VB Let ) ( S ( NP-SBJ ( POS 's ) ) ( VP ( VB close ) ( NP ( DT the ) ( NN door ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( DT the ) ( NN judge ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD climbed ) ( PP-DIR ( TO to ) ( NP ( PRP$ his ) ( NN bench ) ) ) ) ) ) )

Let 's close the door said the judge as he climbed to his bench


( SINV ( PP-PRD-TPC-3 ( IN At ) ( NP ( NN stake ) ) ) ( VP ( VBD was ) ) ( NP-SBJ ( NP ( DT an ) ( ADJP ( CD 80,000 ) ) ( NN settlement ) ) ( VP ( VBG involving ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( MD should ) ( VP ( VB pay ) ( NP ( NP ( WP what ) ( NN share ) ) ( PP ( IN of ) ( NP ( NP ( NN cleanup ) ( NNS costs ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NN site ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ former ) ( NN gas ) ( NN station ) ) ) ( SBAR ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ ( JJ underground ) ( NN fuel ) ( NNS tanks ) ) ( VP ( VBD had ) ( VP ( VP ( VBN leaked ) ) ( CC and ) ( VP ( VBN contaminated ) ( NP ( DT the ) ( NN soil ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

At stake was an 80,000 settlement involving who should pay what share of cleanup costs at the site of a former gas station where underground fuel tanks had leaked and contaminated the soil


( S ( CC And ) ( NP-SBJ-1 ( DT the ) ( NNS lawyers ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( RB just ) ( RB as ) ( JJ eager ) ) ( PP ( IN as ) ( NP ( DT the ) ( NN judge ) ) ) ( S ( VP ( TO to ) ( VP ( VB wrap ) ( NP ( PRP it ) ) ( PRT ( RP up ) ) ) ) ) ) ) )

And the lawyers were just as eager as the judge to wrap it up


( SINV ( S-TPC-1 ( NP-SBJ-2 ( PRP We ) ) ( VP ( VBD were ) ( ADVP-TMP ( RB never ) ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB get ) ( S ( NP-SBJ ( DT these ) ( NN insurance ) ( NNS companies ) ) ( VP ( TO to ) ( VP ( VB agree ) ( ADVP ( RB again ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP John ) ( NNP V. ) ( NNP Trump ) ) ( NP ( NP ( DT a ) ( NNP San ) ( NNP Francisco ) ( NN defense ) ( NN lawyer ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN case ) ) ) ) ) )

We were never going to get these insurance companies to agree again says John V. Trump a San Francisco defense lawyer in the case


( S ( ADVP ( RB Indeed ) ) ( NP-SBJ ( DT the ) ( NN insurance ) ( NNS adjusters ) ) ( VP ( VBD had ) ( ADVP ( RB already ) ) ( VP ( VBN bolted ) ( PP-DIR ( IN out ) ( PP ( IN of ) ( NP ( DT the ) ( NN courtroom ) ) ) ) ) ) )

Indeed the insurance adjusters had already bolted out of the courtroom


( S ( NP-SBJ-1 ( DT The ) ( NNS lawyers ) ) ( VP ( VBD went ) ( PP-CLR ( TO to ) ( NP ( VB work ) ) ) ( ADVP ( RB anyway ) ) ( S-ADV ( ADVP ( RB duly ) ) ( VP ( VBG noting ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN proceeding ) ) ( VP ( VBD was ) ( VP ( VBG taking ) ( NP-CLR ( NN place ) ) ( PP-TMP ( IN during ) ( NP ( DT a ) ( JJ major ) ( NN earthquake ) ) ) ) ) ) ) ) ) ) )

The lawyers went to work anyway duly noting that the proceeding was taking place during a major earthquake


( S ( ADVP-TMP ( NP ( CD Ten ) ( NNS minutes ) ) ( RB later ) ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD was ) ( VP ( VBN done ) ) ) )

Ten minutes later it was done


( S ( PP ( IN For ) ( NP ( DT the ) ( NN record ) ) ) ( NP-SBJ ( NP ( NNP Jeffrey ) ( NNP Kaufman ) ) ( NP ( NP ( DT an ) ( NN attorney ) ) ( PP ( IN for ) ( NP ( NP ( NN Fireman ) ( POS 's ) ) ( NN Fund ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD was ) ( VP ( VBN rattled ) ( ADVP-MNR ( DT both ) ( RB literally ) ( CC and ) ( RB figuratively ) ) ) ) ) ) ) )

For the record Jeffrey Kaufman an attorney for Fireman 's Fund said he was rattled both literally and figuratively


( SINV ( S-TPC-1 ( NP-SBJ ( PRP$ My ) ( NN belief ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB always ) ) ( SBAR-PRD ( S ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP 've ) ( VP ( VBD got ) ( NP ( DT a ) ( NN settlement ) ) ) ) ) ) ( NP-SBJ ( PRP you ) ) ( VP ( VBP read ) ( NP ( PRP it ) ) ( PP-DIR ( IN into ) ( NP ( DT the ) ( NN record ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Judge ) ( NNP Jenkins ) ) ( VP ( ADVP-TMP ( RB now ) ) ( VBN known ) ( PP-LOC ( IN in ) ( NP ( PRP$ his ) ( NN courthouse ) ) ) ( PP-CLR ( IN as ) ( NP ( NNP Shake ) ( NNP 'Em ) ( NNP Down ) ( NNP Jenkins ) ) ) ) ) )

My belief is always if you 've got a settlement you read it into the record says Judge Jenkins now known in his courthouse as Shake 'Em Down Jenkins


( S ( NP-SBJ ( DT The ) ( NN insurance ) ( NNS adjusters ) ) ( VP ( VBP think ) ( ADVP-MNR ( RB differently ) ) ) )

The insurance adjusters think differently


( SINV ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB know ) ( SBAR ( IN if ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( NNP World ) ( NNP War ) ( NNP III ) ) ( CC or ) ( NP ( WP what ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Melanie ) ( NNP Carvain ) ) ( PP ( IN of ) ( NP ( NP ( NNP Morristown ) ) ( NP ( NNP N.J ) ) ) ) ) )

I did n't know if it was World War III or what says Melanie Carvain of Morristown N.J


( S ( S-NOM-SBJ ( VP ( VBG Reading ) ( NP ( DT the ) ( NN settlement ) ) ( PP-DIR ( IN into ) ( NP ( DT the ) ( NN record ) ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT the ) ( JJ last ) ( NN thing ) ) ( PP ( IN on ) ( NP ( PRP$ my ) ( NN mind ) ) ) ) ) )

Reading the settlement into the record was the last thing on my mind


( S ( NP-SBJ ( NP ( NNP Interface ) ( NNP Systems ) ( NNP Inc. ) ) ( NP-LOC ( NP ( NNP Ann ) ( NNP Arbor ) ) ( NP ( NNP Mich. ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB report ) ( SBAR ( S ( NP-SBJ ( NP ( JJ net ) ( NN income ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ( VP ( VBD ended ) ( NP-TMP-CLR ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ( VP ( VBD fell ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 470,000 ) ) ( CC or ) ( NP ( NP ( CD 11 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( CD 805,000 ) ) ( CC or ) ( NP ( NP ( CD 19 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) ) ) ) ) ) ) )

Interface Systems Inc. Ann Arbor Mich. said it will report net income for the fourth quarter ended Sept. 30 fell to 470,000 or 11 cents a share from 805,000 or 19 cents a share a year earlier


( S ( NP-SBJ ( NNP Chairman ) ( NNP Carl ) ( NNP L. ) ( NNP Bixby ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN decline ) ) ( VP ( VBD occurred ) ( SBAR-ADV ( IN although ) ( S ( NP-SBJ ( NN revenue ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 30 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 8.3 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 6.4 ) ( CD million ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) ) ) ) ) ) )

Chairman Carl L. Bixby said the decline occurred although revenue rose 30 % to more than 8.3 million from 6.4 million a year earlier


( S ( NP-SBJ ( NP ( DT The ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ makes ) ( NP ( NN computer ) ( NNS parts ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ fiscal ) ( CD 1989 ) ( NNS earnings ) ) ( VP ( VBD were ) ( ADVP-PRD ( RB down ) ( ADVP ( RB slightly ) ) ( PP ( IN from ) ( NP ( NP ( QP ( CD 3.2 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 74 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP-TMP ( IN in ) ( NP ( JJ fiscal ) ( CD l988 ) ) ) ) ) ) ) ) ) )

The company which makes computer parts said fiscal 1989 earnings were down slightly from 3.2 million or 74 cents a share in fiscal l988


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ fiscal ) ( CD 1989 ) ( NN revenue ) ) ( VP ( VBD increased ) ( NP-EXT ( QP ( RB about ) ( CD 30 ) ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 32 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 25.3 ) ( CD million ) ) ) ) ) ) ) ) )

The company said fiscal 1989 revenue increased about 30 % to more than 32 million from 25.3 million


( S ( NP-SBJ ( NNP Mr. ) ( NNP Bixby ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ early ) ( NNS signs ) ) ( VP ( NN point ) ( PP-CLR ( TO to ) ( NP ( NP ( VBN improved ) ( NNS earnings ) ( CC and ) ( NN revenue ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( JJ first ) ( NN quarter ) ) ( PP ( IN of ) ( NP ( JJ fiscal ) ( CD 1990 ) ) ) ) ) ) ) ) ) ) ) )

Mr. Bixby said that early signs point to improved earnings and revenue in the first quarter of fiscal 1990


( S ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( JJ current ) ( NN backlog ) ) ( PP ( IN of ) ( NP ( NNS orders ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ strong ) ) ( PP-LOC ( IN throughout ) ( NP ( DT the ) ( NN corporation ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

The current backlog of orders is strong throughout the corporation he said


( S ( NP-SBJ ( NNP Fletcher ) ( NNP Challenge ) ( NNP Ltd. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP$ its ) ( NNP Petrocorp ) ( NN unit ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( JJ certain ) ( NNP Alberta ) ( NN oil ) ( CC and ) ( NN gas ) ( NNS interests ) ) ( PP-CLR ( IN from ) ( NP ( NP ( NNP Amoco ) ( NNP Corp. ) ( POS 's ) ) ( JJ Canadian ) ( NN unit ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( QP ( RB about ) ( CD 130 ) ( CD million ) ) ( JJ Canadian ) ( NNS dollars ) ) ( PRN ( NP ( QP ( CD 110.6 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) ) ) )

Fletcher Challenge Ltd. said its Petrocorp unit agreed to acquire certain Alberta oil and gas interests from Amoco Corp. 's Canadian unit for about 130 million Canadian dollars 110.6 million


( S ( NP-SBJ ( NP ( NNP Fletcher ) ( NNP Challenge ) ) ( NP ( NP ( DT a ) ( JJ big ) ( ADJP ( NNP New ) ( JJ Zealand-based ) ) ( NN forest ) ( NNS products ) ( NN concern ) ) ( PP ( IN with ) ( NP ( NP ( NN forestry ) ( NNS operations ) ) ( PP-LOC ( IN in ) ( NP ( NNP Canada ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNS assets ) ) ( VP ( VBP include ) ( NP ( NP ( NP ( NNS stakes ) ) ( PP ( IN in ) ( NP ( NP ( NP ( CD four ) ( JJ natural ) ( NN gas ) ( NNS fields ) ) ( CC and ) ( NP ( CD one ) ( NN oil ) ( NN field ) ) ) ( PP-LOC ( IN near ) ( NP ( NP ( NNP Provost ) ) ( NP ( NNP Alberta ) ) ) ) ) ) ) ( IN plus ) ( NP ( NP ( NN gas ) ( NN processing ) ( NNS facilities ) ) ( CC and ) ( NP ( NP ( QP ( RB about ) ( CD 247,000 ) ) ( NNS acres ) ) ( PP ( IN of ) ( NP ( JJ undeveloped ) ( NN land ) ) ) ) ) ) ) ) ) ) )

Fletcher Challenge a big New Zealand-based forest products concern with forestry operations in Canada said the assets include stakes in four natural gas fields and one oil field near Provost Alberta plus gas processing facilities and about 247,000 acres of undeveloped land


( S ( NP-SBJ ( DT The ) ( VBN proposed ) ( NN purchase ) ) ( VP ( VBZ requires ) ( NP ( NP ( NN approval ) ) ( PP ( IN from ) ( NP ( NP ( NNP Investment ) ( NNP Canada ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ monitors ) ( NP ( NP ( JJ large ) ( JJ foreign ) ( NNS investments ) ) ( PP-LOC ( IN in ) ( NP ( NNP Canada ) ) ) ) ) ) ) ) ) ) ) )

The proposed purchase requires approval from Investment Canada which monitors large foreign investments in Canada


( S ( NP-SBJ ( NP ( NNP Amoco ) ( NNP Canada ) ( NNP Petroleum ) ( NNP Co. ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ operates ) ( NP ( NP ( DT the ) ( JJ major ) ( NNS properties ) ) ( VP ( VBN included ) ( PP-LOC-CLR ( IN in ) ( NP ( DT the ) ( NN asset ) ( NN package ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN sale ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN plan ) ( S ( VP ( TO to ) ( VP ( VB streamline ) ( NP ( PRP$ its ) ( NNS assets ) ) ) ) ) ) ) ) ) ) ) ) )

Amoco Canada Petroleum Co. which operates the major properties included in the asset package said the sale is part of a plan to streamline its assets


( S ( NP-SBJ ( NP ( NNP Petrocorp ) ) ( NP ( DT a ) ( ADJP ( NNP New ) ( JJ Zealand-based ) ) ( NN oil ) ( CC and ) ( NN gas ) ( NN producer ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( VBN planned ) ( NN purchase ) ) ( VP ( VP ( MD would ) ( VP ( VB be ) ( NP-PRD ( NP ( PRP$ its ) ( JJ first ) ( NN oil ) ( CC and ) ( NN gas ) ( NN acquisition ) ) ( PP-LOC ( IN outside ) ( NP ( PRP$ its ) ( NN home ) ( NN country ) ) ) ) ) ) ( CC and ) ( VP ( MD would ) ( VP ( VB form ) ( NP ( NP ( DT the ) ( NN basis ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( JJ new ) ( JJ stand-alone ) ( NN exploration ) ( CC and ) ( NN production ) ( NN unit ) ) ( PP-LOC ( IN in ) ( NP ( NNP Canada ) ) ) ) ) ) ) ) ) ) ) ) )

Petrocorp a New Zealand-based oil and gas producer said the planned purchase would be its first oil and gas acquisition outside its home country and would form the basis for a new stand-alone exploration and production unit in Canada


( S ( NP-SBJ ( NP ( NNP Penn ) ( NNP Central ) ( NNP Corp. ) ) ( NP-LOC ( NNP Cincinnati ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD agreed ) ( PP-CLR ( IN in ) ( NP ( NN principle ) ) ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( NNP Noranda ) ( NNP Inc. ) ( POS 's ) ) ( NNP Carol ) ( NNP Cable ) ( NNP Co. ) ( NN unit ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 177 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) )

Penn Central Corp. Cincinnati said it agreed in principle to acquire Noranda Inc. 's Carol Cable Co. unit for 177 million


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NNP Carol ) ( NNP Cable ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( NNP Pawtucket ) ) ( NP ( NNP R.I. ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( VBG leading ) ( NN supplier ) ) ( PP ( IN of ) ( NP ( ADJP ( JJ electrical ) ( CC and ) ( JJ electronic ) ) ( NN wire ) ( CC and ) ( NN cable ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN distributor ) ( JJ retail ) ( CC and ) ( JJ original ) ( NN equipment ) ( NN manufacturer ) ( NNS markets ) ) ) ) ) ) ) ) )

The company said Carol Cable based in Pawtucket R.I. is a leading supplier of electrical and electronic wire and cable for the distributor retail and original equipment manufacturer markets


( S ( NP-SBJ ( NP ( NNP Carol ) ( NNP Cable ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ operates ) ( NP ( CD 12 ) ( NN manufacturing ) ( NNS plants ) ) ) ) ) ) ( VP ( VBD had ) ( NP ( NP ( NP ( NN operating ) ( NN profit ) ) ( PP ( IN of ) ( NP ( QP ( CD 11.7 ) ( CD million ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( QP ( CD 153.3 ) ( CD million ) ) ) ) ) ) ( PP-TMP ( IN for ) ( NP ( NP ( DT the ) ( JJ first ) ( CD six ) ( NNS months ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN year ) ) ) ) ) ) ( CC and ) ( NP ( NP ( NN operating ) ( NN profit ) ) ( PP ( IN of ) ( NP ( QP ( CD 25.6 ) ( CD million ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( QP ( CD 294.6 ) ( CD million ) ) ) ) ) ) ( PP-TMP ( IN for ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( CD 1988 ) ) ) ) ) ) ) ) )

Carol Cable which operates 12 manufacturing plants had operating profit of 11.7 million on sales of 153.3 million for the first six months of this year and operating profit of 25.6 million on sales of 294.6 million for all of 1988


( S ( NP-SBJ ( NP ( DT The ) ( NN maker ) ) ( PP ( IN of ) ( NP ( NNS telecommunications ) ( CC and ) ( NN defense ) ( NN equipment ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NNP Carol ) ( NNP Cable ) ( POS 's ) ) ( NN portfolio ) ( CC and ) ( NN market ) ( NN focus ) ) ( VP ( MD would ) ( VP ( VB complement ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ current ) ( NN wire ) ( CC and ) ( NN cable ) ( NNS businesses ) ) ) ) ) ) ) )

The maker of telecommunications and defense equipment said Carol Cable 's portfolio and market focus would complement the company 's current wire and cable businesses


( S ( NP-SBJ ( DT The ) ( NN plan ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ subject ) ( PP ( TO to ) ( NP ( NP ( NP ( DT a ) ( JJ satisfactory ) ( JJ due ) ( NN diligence ) ( NN investigation ) ) ( PP ( IN of ) ( NP ( NNP Carol ) ( NNP Cable ) ) ) ( PP ( IN by ) ( NP ( NNP Penn ) ( NNP Central ) ) ) ) ( NP ( DT a ) ( JJ definitive ) ( NN agreement ) ) ( CC and ) ( NP ( JJ regulatory ) ( NNS approvals ) ) ) ) ) ) )

The plan is subject to a satisfactory due diligence investigation of Carol Cable by Penn Central a definitive agreement and regulatory approvals


( S ( PP ( IN From ) ( NP ( NP ( DT a ) ( NN reading ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( ADJP ( RB somewhat ) ( JJ scant ) ) ( JJ English-language ) ( JJ medical ) ( NN literature ) ) ( PP ( IN on ) ( NP ( NNP RU-486 ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( JJ French ) ( NN abortion ) ( NN pill ) ) ( VP ( VBZ emerges ) ( PP-CLR ( IN as ) ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJS creepiest ) ( NNS concoctions ) ) ( ADVP-LOC ( RP around ) ) ) ) ) ) ) )

From a reading of the somewhat scant English-language medical literature on RU-486 the French abortion pill emerges as one of the creepiest concoctions around


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( ADVP ( RB not ) ( RB only ) ) ( SBAR-PRP-PRD ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( NP ( VBZ kills ) ( NP ( DT the ) ( NN unborn ) ) ) ( NP-ADV ( NP ( DT a ) ( NN job ) ) ( SBAR ( WHPP-2 ( IN at ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ-3 ( PRP it ) ) ( ADVP ( RB actually ) ) ( VP ( VBZ is ) ( RB not ) ( ADJP-PRD ( RB outstandingly ) ( JJ efficient ) ) ( S-ADV ( VP ( VBG zapping ) ( NP ( NP ( QP ( RB only ) ( CD 50 ) ( NN % ) ( TO to ) ( CD 85 ) ( NN % ) ) ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ) ( PP ( VBG depending ) ( PP ( IN on ) ( SBAR-NOM ( WHNP-1 ( WDT which ) ( NN study ) ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP read ) ) ) ) ) ) ) ) ) ( PRN ( S ( NP-SBJ-4 ( NN prostaglandin ) ) ( S-ADV ( VP ( VBN taken ) ( PP-CLR ( IN in ) ( NP ( NP ( NN conjunction ) ) ( PP ( IN with ) ( NP ( DT the ) ( NN pill ) ) ) ) ) ) ) ( VP ( VBZ boosts ) ( NP ( DT the ) ( NN rate ) ) ( PP-CLR ( TO to ) ( NP ( CD 95 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) ) )

This is not only because it kills the unborn a job at which it actually is not outstandingly efficient zapping only 50 % to 85 % of them depending on which study you read prostaglandin taken in conjunction with the pill boosts the rate to 95 %


( S ( PP ( IN By ) ( NP ( NN contrast ) ) ) ( NP-SBJ ( JJ surgical ) ( NN abortion ) ) ( VP ( VBZ is ) ( ADJP-PRD ( NP-ADV ( CD 99 ) ( NN % ) ) ( NN effective ) ) ) )

By contrast surgical abortion is 99 % effective


( S ( NP-SBJ ( NP ( NN Abortion ) ) ( PP ( IN via ) ( NP ( DT the ) ( NN pill ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( RB far ) ( JJR more ) ( PP ( IN of ) ( NP ( DT an ) ( NN ordeal ) ) ) ) ( PP ( IN than ) ( NP ( JJ conventional ) ( JJ surgical ) ( NN abortion ) ) ) ) ) )

Abortion via the pill is far more of an ordeal than conventional surgical abortion


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( JJ time-consuming ) ) ( PRN ( S ( S ( NP-SBJ ( NP ( DT the ) ( NN abortion ) ( NN part ) ) ( ADVP ( RB alone ) ) ) ( VP ( VBZ lasts ) ( NP ( CD three ) ( NNS days ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( JJ clinical ) ( NN part ) ) ( VP ( VBZ comprises ) ( NP ( NP ( NP ( DT a ) ( NN week ) ( POS 's ) ) ( NN worth ) ) ( PP ( IN of ) ( NP ( NNS visits ) ) ) ) ) ) ) ) ( ADJP ( JJ bloody ) ) ( PRN ( S ( NP-SBJ ( NP ( CD one ) ( NN woman ) ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( JJ Swedish ) ( NN trial ) ) ) ) ( VP ( VBD required ) ( NP ( DT a ) ( NN transfusion ) ) ( SBAR-ADV ( IN although ) ( S ( PP ( IN for ) ( NP ( JJS most ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ resembles ) ( NP ( DT a ) ( JJ menstrual ) ( NN period ) ) ( PP ( IN with ) ( NP ( NP ( VBG bleeding ) ) ( VP ( VBG lasting ) ( NP ( NP ( DT an ) ( NN average ) ) ( PP ( IN of ) ( NP ( CD 10 ) ( NNS days ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( ADJP ( JJ painful ) ) ( PRN ( S ( NP-SBJ-1 ( JJ many ) ( NNS women ) ) ( VP ( VBP require ) ( NP ( JJ analgesic ) ( NNS shots ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB ease ) ( NP ( PRP them ) ) ( PRT ( RP through ) ) ) ) ) ) ) ) ) ) )

It is time-consuming the abortion part alone lasts three days and the clinical part comprises a week 's worth of visits bloody one woman in a Swedish trial required a transfusion although for most it resembles a menstrual period with bleeding lasting an average of 10 days and painful many women require analgesic shots to ease them through


( S ( NP-SBJ ( NN Nausea ) ( CC and ) ( NN vomiting ) ) ( VP ( VBP are ) ( NP-PRD ( JJ other ) ( JJ common ) ( NN side ) ( NNS effects ) ) ) )

Nausea and vomiting are other common side effects


( S ( NP-SBJ ( NN Timing ) ) ( VP ( VBZ is ) ( PP-PRD ( IN of ) ( NP ( DT the ) ( NN essence ) ) ) ( PP ( IN with ) ( NP ( NNP RU-486 ) ) ) ) )

Timing is of the essence with RU-486


( S ( NP-SBJ-2 ( PRP It ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RBS most ) ( JJ effective ) ) ( S-ADV ( VP ( VBN taken ) ( UCP-TMP ( SBAR ( NP-ADV ( RB about ) ( DT a ) ( NN week ) ) ( RB after ) ( S ( NP-SBJ ( DT a ) ( NN woman ) ) ( VP ( VBZ misses ) ( NP ( PRP her ) ( JJ menstrual ) ( NN period ) ) ) ) ) ( PP ( IN up ) ( IN through ) ( NP ( NP ( DT the ) ( JJ seventh ) ( NN week ) ) ( PP ( IN of ) ( NP ( NN pregnancy ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB markedly ) ( RBR less ) ( JJ effective ) ) ) ) ) ) ) ) ) ) ) )

It is most effective taken about a week after a woman misses her menstrual period up through the seventh week of pregnancy when it is markedly less effective


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ is ) ( ADVP ( RB typically ) ) ( NP-PRD ( RB about ) ( DT a ) ( JJ three-week ) ( NN window ) ) ) )

That is typically about a three-week window


( S ( ADVP-TMP ( IN So ) ( RB far ) ) ( NP-SBJ ( DT all ) ( DT the ) ( NNS studies ) ) ( VP ( VBP have ) ( VP ( VBN concluded ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP RU-486 ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ safe ) ) ) ) ) ) ) )

So far all the studies have concluded that RU-486 is safe


( S ( CC But ) ( ADJP-SBJ ( JJ safe ) ) ( PRN ( PP ( IN in ) ( NP ( NP ( DT the ) ( NN definition ) ) ( PP ( IN of ) ( NP ( NP ( NNP Marie ) ( NNP Bass ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Reproductive ) ( NNP Health ) ( NNP Technologies ) ( NNP Project ) ) ) ) ) ) ) ) ( VP ( VBZ means ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ 's ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT no ) ( NN evidence ) ) ) ( ADVP-TMP ( RB so ) ( RB far ) ) ( PP-1 ( IN of ) ( NP ( NN mortality ) ) ) ) ) ) ) ) )

But safe in the definition of Marie Bass of the Reproductive Health Technologies Project means there 's been no evidence so far of mortality


( S ( NP-SBJ ( DT No ) ( PRP one ) ) ( VP ( VBZ has ) ( VP ( VBN researched ) ( NP ( NP ( DT the ) ( JJ long-term ) ( NNS effects ) ) ( PP ( IN of ) ( NP ( NNP RU-486 ) ) ) ( PP ( IN on ) ( NP ( NP ( DT a ) ( NN woman ) ( POS 's ) ) ( NN health ) ( CC or ) ( NN fertility ) ) ) ) ) ) )

No one has researched the long-term effects of RU-486 on a woman 's health or fertility


( S ( NP-SBJ-2 ( DT The ) ( NN drug ) ) ( VP ( VBZ seems ) ( S ( VP ( TO to ) ( VP ( VB suppress ) ( NP ( NN ovulation ) ) ( PP-TMP ( IN for ) ( NP ( NP ( QP ( CD three ) ( TO to ) ( CD seven ) ) ( NNS months ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBN taken ) ) ) ) ) ) ) ) ) ) ) )

The drug seems to suppress ovulation for three to seven months after it is taken


( S ( S ( NP-SBJ ( DT Some ) ( NNS women ) ) ( ADVP ( RB clearly ) ) ( VP ( VBP have ) ( NP ( NP ( DT no ) ( NN trouble ) ) ( S-NOM ( ADVP-TMP ( RB eventually ) ) ( VP ( VBG conceiving ) ( ADVP ( RB again ) ) ) ) ) ) ) ( S ( NP-SBJ ( DT The ) ( NNS studies ) ) ( VP ( VBP have ) ( VP ( VBN reported ) ( NP ( NNS repeaters ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ their ) ( NNS programs ) ) ) ) ) ) )

Some women clearly have no trouble eventually conceiving again The studies have reported repeaters in their programs


( S ( CC But ) ( NP-SBJ ( EX there ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT no ) ( JJ scientific ) ( NN data ) ) ( PP ( IN on ) ( NP ( DT this ) ( NN question ) ) ) ) ) )

But there are no scientific data on this question


( S ( S-TPC-1 ( ADVP ( RB Rather ) ( RB ominously ) ) ( NP-SBJ ( NN rabbit ) ( NNS studies ) ) ( VP ( VBP reveal ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP RU-486 ) ) ( VP ( MD can ) ( VP ( VB cause ) ( NP ( NN birth ) ( NNS defects ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Lancet ) ) ( NP ( DT the ) ( JJ British ) ( JJ medical ) ( NN journal ) ) ) ( VP ( VBD reported ) ( PP-TMP ( IN in ) ( NP ( CD 1987 ) ) ) ) )

Rather ominously rabbit studies reveal that RU-486 can cause birth defects Lancet the British medical journal reported in 1987


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NP ( NNP Dr. ) ( NNP Etienne-Emile ) ( NNP Baulieu ) ) ( NP ( NP ( DT the ) ( JJ French ) ( NN physician ) ) ( SBAR ( WHNP-488 ( WP who ) ) ( S ( VP ( VBD invented ) ( NP ( NNP RU-486 ) ) ) ) ) ) ) ( VP ( VBD wrote ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( NNP Science ) ( NN magazine ) ( NN article ) ) ) ( NP-TMP ( JJ last ) ( NN month ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-487 ( DT the ) ( JJ rabbit-test ) ( NNS results ) ) ( VP ( MD could ) ( RB not ) ( VP ( VB be ) ( VP ( VBN duplicated ) ( PP ( IN in ) ( NP ( NNS rats ) ( CC and ) ( NNS monkeys ) ) ) ) ) ) ) ) ) )

However Dr. Etienne-Emile Baulieu the French physician who invented RU-486 wrote in a Science magazine article last month that the rabbit-test results could not be duplicated in rats and monkeys


( S ( NP-SBJ ( DT The ) ( NN drug ) ) ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( JJ three-dimensional ) ( NN structure ) ) ( ADJP ( JJ similar ) ( PP ( TO to ) ( NP ( NP ( DT that ) ) ( PP ( IN of ) ( NP ( NP ( NNP DES ) ) ( NP ( NP ( DT the ) ( JJ anti-miscarriage ) ( NN drug ) ) ( SBAR ( WHNP-3 ( WDT that ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN linked ) ( PP-CLR ( TO to ) ( NP ( JJ cervical ) ( CC and ) ( JJ vaginal ) ( NN cancer ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS daughters ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS women ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBD took ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The drug has a three-dimensional structure similar to that of DES the anti-miscarriage drug that has been linked to cervical and vaginal cancer in some of the daughters of the women who took it


( S ( NP-SBJ ( DT All ) ( DT the ) ( VBN published ) ( NNS studies ) ) ( VP ( VBP recommend ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS women ) ) ( SBAR ( WHPP-1 ( IN on ) ( WHNP ( WP whom ) ) ) ( S ( NP-SBJ ( DT the ) ( NN drug ) ) ( VP ( VBZ proves ) ( ADJP-PRD ( JJ ineffective ) ) ) ) ) ) ( VP ( RB not ) ( VP ( VB carry ) ( NP ( DT the ) ( NN pregnancy ) ) ( PP-CLR ( TO to ) ( NP ( VB term ) ) ) ) ( CC but ) ( VP ( VBP undergo ) ( NP ( DT a ) ( JJ surgical ) ( NN abortion ) ) ) ) ) ) ) )

All the published studies recommend that women on whom the drug proves ineffective not carry the pregnancy to term but undergo a surgical abortion


( S ( NP-SBJ ( NP ( NP ( DT A ) ( NN risk ) ) ( PP ( IN of ) ( NP ( NN birth ) ( NNS defects ) ) ) ) ( NP ( NP ( DT a ) ( JJ sure ) ( NN source ) ) ( PP ( IN of ) ( NP ( NNS lawsuits ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( CD one ) ( NN reason ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP U.S. ) ( JJ pharmaceutical ) ( NN industry ) ) ( VP ( VBZ is ) ( VP ( VBG steering ) ( ADVP-CLR ( JJ clear ) ( PP ( IN of ) ( NP ( NNP RU-486 ) ) ) ) ) ) ) ) ) ) )

A risk of birth defects a sure source of lawsuits is one reason the U.S. pharmaceutical industry is steering clear of RU-486


( S ( NP-SBJ ( NN One ) ) ( VP ( MD might ) ( ADVP ( RB well ) ) ( VP ( VB ask ) ( SBARQ ( WHADVP-1 ( WRB Why ) ) ( SQ ( VP ( VBP bother ) ( PP ( IN with ) ( NP ( DT this ) ( NN drug ) ) ) ( ADVP ( IN at ) ( DT all ) ) ) ) ) ) ) )

One might well ask Why bother with this drug at all


( S ( NP-SBJ ( DT Some ) ( NN abortion ) ( NNS advocates ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG asking ) ( NP ( PRP themselves ) ) ( NP ( DT this ) ( JJ very ) ( NN question ) ) ) ) ) )

Some abortion advocates have been asking themselves this very question


( SINV ( S-TPC-2 ( NP-SBJ ( NNP RU-486 ) ) ( VP ( ADVP ( RB probably ) ) ( VBZ represents ) ( NP ( NP ( DT a ) ( JJ technical ) ( NN advance ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT an ) ( NN area ) ) ( SBAR ( WHADVP-1 ( WRB where ) ) ( S ( NP-SBJ-487 ( NN none ) ) ( VP ( VBZ is ) ( VP ( VBN needed ) ( PRN ( CC or ) ( ADVP ( ADVP ( IN at ) ( JJS least ) ) ( RB not ) ( RB very ) ( JJ much ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Phillip ) ( NNP Stubblefield ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP National ) ( NNP Abortion ) ( NNP Federation ) ) ) ) ) ( PP-LOC ( IN at ) ( NP ( DT a ) ( JJ reproductive ) ( NN health ) ( NN conference ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1986 ) ) ) )

RU-486 probably represents a technical advance in an area where none is needed or at least not very much said Phillip Stubblefield president of the National Abortion Federation at a reproductive health conference in 1986


( S ( NP-SBJ ( JJ Many ) ( NNS physicians ) ) ( VP ( VBP have ) ( VP ( VBN expressed ) ( NP ( NP ( NN concern ) ) ( PP ( IN over ) ( NP ( NP ( DT the ) ( JJ heavy ) ( NN bleeding ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ occurs ) ( SBAR-ADV ( RB even ) ( IN if ) ( S ( NP-SBJ-2 ( DT the ) ( NN drug ) ) ( VP ( VBZ fails ) ( S ( VP ( TO to ) ( VP ( VB induce ) ( NP ( DT an ) ( NN abortion ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Many physicians have expressed concern over the heavy bleeding which occurs even if the drug fails to induce an abortion


( S ( S ( NP-SBJ ( NP ( PRP It ) ) ) ( ADVP ( RB typically ) ) ( VP ( VBZ takes ) ( NP ( QP ( IN from ) ( CD eight ) ( TO to ) ( CD 10 ) ) ( NNS years ) ) ( S-1 ( VP ( TO to ) ( VP ( VB obtain ) ( NP ( NP ( DT the ) ( NNP Food ) ( CC and ) ( NNP Drug ) ( NNP Administration ) ( POS 's ) ) ( NN approval ) ) ( PP ( IN for ) ( NP ( DT a ) ( JJ new ) ( NN drug ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG testing ) ( CC and ) ( VBG marketing ) ( NP ( DT a ) ( JJ new ) ( NN drug ) ) ) ) ) ) ( VP ( MD can ) ( VP ( VB range ) ( PP-CLR ( PP ( IN from ) ( NP ( QP ( CD 30 ) ( CD million ) ) ) ) ( PP ( TO to ) ( NP ( QP ( CD 70 ) ( CD million ) ) ) ) ) ) ) ) )

It typically takes from eight to 10 years to obtain the Food and Drug Administration 's approval for a new drug and the cost of testing and marketing a new drug can range from 30 million to 70 million


( S ( NP-SBJ ( DT The ) ( NNP Health ) ( CC and ) ( NNP Human ) ( NNP Services ) ( NNP Department ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBZ forbids ) ( NP-1 ( NP ( DT the ) ( NNP National ) ( NNP Institutes ) ) ( PP ( IN of ) ( NP ( NNP Health ) ) ) ) ( PP-CLR ( IN from ) ( S-NOM ( VP ( VBG funding ) ( NP ( NN abortion ) ( NN research ) ) ( PP-MNR ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( ADJP ( QP ( CD 8 ) ( CD million ) ) ) ( NN contraceptive ) ( NN program ) ) ) ) ) ) ) ) ) )

The Health and Human Services Department currently forbids the National Institutes of Health from funding abortion research as part of its 8 million contraceptive program


( S ( CC But ) ( NP-SBJ ( NP ( DT the ) ( NNP Population ) ( NNP Council ) ) ( NP ( NP ( DT a ) ( JJ 37-year-old ) ( ADJP ( QP ( CD 20 ) ( CD million ) ) ) ( JJ nonprofit ) ( NN organization ) ) ( SBAR ( WHNP-487 ( WDT that ) ) ( S ( VP ( VP ( VBZ has ) ( NP ( NP ( DT the ) ( NN backing ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Rockefeller ) ( CC and ) ( NNP Mellon ) ( NNS foundations ) ) ) ) ) ( CC and ) ( VP ( ADVP-TMP ( RB currently ) ) ( VBZ subsidizes ) ( NP ( NP ( JJS most ) ( NNP U.S. ) ( NN research ) ) ( PP ( IN on ) ( NP ( NNS contraceptives ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBN been ) ( VP ( VBG paying ) ( PP-CLR ( IN for ) ( NP ( NP ( NNP U.S. ) ( NNS studies ) ) ( PP ( IN of ) ( NP ( NNP RU-486 ) ) ) ( PP ( IN on ) ( NP ( NP ( DT a ) ( NN license ) ) ( PP ( IN from ) ( NP ( NP ( PRP$ its ) ( JJ French ) ( NN developer ) ) ( NP ( NP ( NNP Roussel-Uclaf ) ) ( NP ( NP ( DT a ) ( JJ joint ) ( NN subsidiary ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( JJ German ) ( JJ pharmaceutical ) ( NN company ) ( NNP Hoechst ) ) ) ( CC and ) ( NP ( DT the ) ( JJ French ) ( NN government ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But the Population Council a 37-year-old 20 million nonprofit organization that has the backing of the Rockefeller and Mellon foundations and currently subsidizes most U.S. research on contraceptives has recently been paying for U.S. studies of RU-486 on a license from its French developer Roussel-Uclaf a joint subsidiary of the German pharmaceutical company Hoechst and the French government


( S ( PP-TMP ( IN In ) ( NP ( NP ( DT the ) ( NN year ) ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ ( DT the ) ( NN pill ) ) ( VP ( VBD went ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( JJ French ) ( NN market ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( NP ( DT the ) ( NNP National ) ( NNP Organization ) ( IN for ) ( NNP Women ) ) ( CC and ) ( NP ( NP ( PRP$ its ) ( NN offshoot ) ) ( NP ( NP ( NP ( JJ former ) ( NNP NOW ) ( NNP President ) ( NNP Eleanor ) ( NNP Smeal ) ( POS 's ) ) ( NNP Fund ) ) ( PP ( IN for ) ( NP ( DT a ) ( NNP Feminist ) ( NNP Majority ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB browbeat ) ( NP-2 ( DT the ) ( NNP U.S. ) ( JJ pharmaceutical ) ( NN industry ) ) ( PP-CLR ( IN into ) ( S-NOM ( VP ( VBG getting ) ( ADJP-PRD ( VBN involved ) ) ) ) ) ) ) ) ) ) ) )

In the year since the pill went on the French market the National Organization for Women and its offshoot former NOW President Eleanor Smeal 's Fund for a Feminist Majority have been trying to browbeat the U.S. pharmaceutical industry into getting involved


( FRAG ( NP ( PRP$ Its ) ( NN scare-tactic ) ( NN prediction ) ) ( S ( NP-SBJ ( DT the ) ( NN pill ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ available ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ( ADVP ( DT either ) ( RB legally ) ( CC or ) ( RB illegally ) ) ( PP-TMP ( IN in ) ( NP ( QP ( DT no ) ( JJR more ) ( IN than ) ( CD 2-5 ) ) ( NNS years ) ) ) ) ) ) )

Its scare-tactic prediction the pill will be available in the U.S. either legally or illegally in no more than 2-5 years


( SINV ( VP-TPC-1 ( VBG Following ) ( NP ( DT the ) ( JJ feminist ) ( CC and ) ( JJ population-control ) ( NN lead ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ) ) ( NP-SBJ ( DT a ) ( ADJP ( RB generally ) ( JJ bovine ) ) ( NN press ) ) )

Following the feminist and population-control lead has been a generally bovine press