( S ( S-ADV ( NP-PRD ( DT A ) ( NX ( NX ( NX ( NN member ) ) ( PP ( IN in ) ( NP ( DT the ) ( NNP House ) ( NN leadership ) ) ) ) ( CC and ) ( NX ( JJ skilled ) ( NN legislator ) ) ) ) ) ( NP-SBJ-2 ( NNP Mr. ) ( NNP Fazio ) ) ( ADVP ( RB nonetheless ) ) ( VP ( VBD found ) ( S ( NP-SBJ-3 ( PRP himself ) ) ( VP ( VBN burdened ) ( PP ( CONJP ( RB not ) ( RB only ) ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP California ) ( POS 's ) ) ( NNS needs ) ) ) ( CC but ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Hurricane ) ( NNP Hugo ) ( NNS amendments ) ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD accepted ) ( PP ( IN in ) ( NP ( DT a ) ( JJ vain ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB build ) ( NP ( NN support ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN panel ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

A member in the House leadership and skilled legislator Mr. Fazio nonetheless found himself burdened not only by California 's needs but by Hurricane Hugo amendments he accepted in a vain effort to build support in the panel


( S ( S ( NP-SBJ ( DT The ) ( NNP California ) ( NNP Democrat ) ) ( VP ( VBD appeared ) ( ADJP-PRD ( JJ embarrassed ) ( PP ( IN by ) ( NP ( NP ( NNS provisions ) ) ( VP ( VBN inserted ) ( PP-PRP ( IN on ) ( NP ( NP ( NN behalf ) ) ( PP ( IN of ) ( NP ( NP ( NNS owners ) ) ( PP ( IN of ) ( NP ( NP ( JJ private ) ( NNS beaches ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Virgin ) ( NNP Islands ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( NN lumber ) ( NNS interests ) ) ( VP ( VBD sought ) ( S ( VP ( TO to ) ( VP ( VB add ) ( NP ( NP ( DT another ) ( QP ( CD 100 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( JJ federal ) ( NN aid ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( NN plant ) ( NP ( NN timber ) ) ( PP-LOC ( IN on ) ( NP ( JJ private ) ( NN land ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP North ) ( CC and ) ( NNP South ) ( NNP Carolina ) ) ) ) ) ) ) ) ) ) ) ) ) )

The California Democrat appeared embarrassed by provisions inserted on behalf of owners of private beaches in the Virgin Islands and lumber interests sought to add another 100 million in federal aid to plant timber on private land in North and South Carolina


( S ( NP-SBJ ( NP ( NNP California ) ( POS 's ) ) ( JJ high-priced ) ( JJ real ) ( NN estate ) ) ( VP ( VBZ puts ) ( NP ( PRP it ) ) ( PP-PUT ( IN in ) ( NP ( DT an ) ( JJ awkward ) ( NN position ) ) ) ( ADVP ( RB too ) ) ) )

California 's high-priced real estate puts it in an awkward position too


( S ( NP-SBJ-1 ( CD One ) ( NN provision ) ) ( NP-TMP ( JJ last ) ( NN night ) ) ( VP ( MD would ) ( VP ( VB have ) ( VP ( VBN raised ) ( NP ( NP ( DT the ) ( NN cap ) ) ( PP ( IN on ) ( NP ( NN disaster ) ( NNS loans ) ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 500,000 ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( CD 100,000 ) ) ( PP ( IN per ) ( NP ( NN household ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB accommodate ) ( NP ( NNP San ) ( NNP Francisco ) ( NNS losses ) ) ) ) ) ) ) ) )

One provision last night would have raised the cap on disaster loans to 500,000 from 100,000 per household to accommodate San Francisco losses


( S ( NP-SBJ ( NNP Texaco ) ( NNP Inc. ) ) ( VP ( VP ( VBZ has ) ( VP ( VBN purchased ) ( NP ( NP ( DT an ) ( JJ oil-producing ) ( NN company ) ) ( PP-LOC ( IN in ) ( NP ( NNP Texas ) ) ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 476.5 ) ( CD million ) ) ) ) ) ) ( NP ( NP ( PRP$ its ) ( JJ first ) ( JJ major ) ( NN acquisition ) ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ ( NP ( PRP$ its ) ( JJ legal ) ( NN brawl ) ) ( PP ( IN with ) ( NP ( NNP Pennzoil ) ( NNP Co. ) ) ) ) ( VP ( VBD began ) ( ADVP-TMP ( NP ( QP ( JJR more ) ( IN than ) ( CD four ) ) ( NNS years ) ) ( RB ago ) ) ) ) ) ) ) )

Texaco Inc. has purchased an oil-producing company in Texas for 476.5 million its first major acquisition since its legal brawl with Pennzoil Co. began more than four years ago


( S ( NP-SBJ ( DT The ) ( NAC-LOC ( NNP White ) ( NNP Plains ) ( NNP N.Y. ) ) ( NN oil ) ( NN company ) ) ( VP ( VBD said ) ( NP-TMP ( NNP Friday ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( VP ( VBN acquired ) ( NP ( NP ( NNP Tana ) ( NNP Production ) ( NNP Corp. ) ) ( NP ( NP ( DT a ) ( NN subsidiary ) ) ( PP ( IN of ) ( NP ( NNP TRT ) ( NNP Energy ) ( NNP Holdings ) ( NNP Inc. ) ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( QP ( CD 95.1 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NN cash ) ) ) ) ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( NN rest ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN paid ) ( PP-MNR ( IN in ) ( NP ( NP ( NNS shares ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ new ) ( JJ non-voting ) ( NN issue ) ) ( PP ( IN of ) ( NP ( JJ preferred ) ( NN stock ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The White Plains N.Y. oil company said Friday that it had acquired Tana Production Corp. a subsidiary of TRT Energy Holdings Inc. for 95.1 million in cash with the rest to be paid in shares of a new non-voting issue of preferred stock


( S ( NP-SBJ ( NP ( NNP Tana ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ holds ) ( NP ( NP ( NNS properties ) ) ( PP-LOC ( IN in ) ( NP ( NP ( CD 17 ) ( NN oil ) ( CC and ) ( NN gas ) ( NNS fields ) ) ( PP-LOC ( IN in ) ( NP ( JJ south ) ( NNP Texas ) ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB provide ) ( NP ( NNP Texaco ) ) ( PP-CLR ( IN with ) ( NP ( RB mostly ) ( NN gas ) ( NNS reserves ) ) ) ) ) )

Tana which holds properties in 17 oil and gas fields in south Texas will provide Texaco with mostly gas reserves


( S ( NP-SBJ ( DT The ) ( NNS fields ) ) ( VP ( VBP contain ) ( NP ( NP ( JJ recoverable ) ( NNS reserves ) ) ( PP ( IN of ) ( NP ( NP ( NP ( QP ( CD 435 ) ( CD billion ) ) ( JJ cubic ) ( NNS feet ) ) ( PP ( IN of ) ( NP ( JJ natural ) ( NN gas ) ) ) ) ( CC and ) ( NP ( NP ( QP ( CD four ) ( CD million ) ) ( NNS barrels ) ) ( PP ( IN of ) ( NP ( NN oil ) ) ) ) ) ) ) ) )

The fields contain recoverable reserves of 435 billion cubic feet of natural gas and four million barrels of oil


( SINV ( S-TPC-1 ( NP-SBJ ( DT This ) ( NN acquisition ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT another ) ( NN indication ) ) ( PP ( IN of ) ( NP ( NP ( NNP Texaco ) ( POS 's ) ) ( NN commitment ) ( S ( VP ( TO to ) ( VP ( VB increase ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN reserve ) ( NN base ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NNP Chief ) ( NNP Executive ) ( NNP Officer ) ( NNP James ) ( NNP W. ) ( NNP Kinnear ) ) )

This acquisition is another indication of Texaco 's commitment to increase the company 's reserve base said Chief Executive Officer James W. Kinnear


( S ( NP-SBJ-1 ( NNP Texaco ) ) ( VP ( VBZ has ) ( ADVP ( RB also ) ) ( VP ( VBN been ) ( VP ( VBG attempting ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NN oil ) ( NNS properties ) ) ) ) ) ) ) ) )

Texaco has also been attempting to sell oil properties


( S ( ADVP-TMP ( NP ( QP ( IN At ) ( JJS least ) ( CD two ) ) ( NNS years ) ) ( RB ago ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD put ) ( NP ( NP ( QP ( CD 60 ) ( CD million ) ) ( NNS barrels ) ) ( PP ( IN of ) ( NP ( NN oil ) ( NNS reserves ) ) ) ) ( PP-PUT ( IN on ) ( NP ( DT the ) ( NN block ) ) ) ) )

At least two years ago the company put 60 million barrels of oil reserves on the block


( S ( S-TPC-2 ( NP-SBJ ( PRP They ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( CC either ) ( RB too ) ( JJ small ) ( CC or ) ( JJ uneconomic ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB maintain ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )

They were either too small or uneconomic to maintain the company said


( S ( NP-SBJ-1 ( NP ( RB Not ) ( DT all ) ) ( PP ( IN of ) ( NP ( DT those ) ( NNS parcels ) ) ) ) ( VP ( VBP have ) ( ADVP ( RB yet ) ) ( VP ( VBN been ) ( VP ( VBN sold ) ) ) ) )

Not all of those parcels have yet been sold


( S ( S-TPC-2 ( NP-SBJ ( NNP Texaco ) ) ( VP ( VBD acquired ) ( NP ( NNP Tana ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD completed ) ( NP ( DT those ) ( NNS sales ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NP ( NNP Tana ) ( POS 's ) ) ( NNS properties ) ) ( VP ( VBP are ) ( UCP-PRD ( ADJP-PRD ( JJ high ) ( NN quality ) ) ( CC and ) ( PP-LOC-PRD ( IN near ) ( NP ( NP ( JJ other ) ( NNS fields ) ) ( SBAR ( S ( NP-SBJ ( NNP Texaco ) ) ( ADVP ( RB already ) ) ( VP ( VBZ owns ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT a ) ( NN company ) ( NN spokeswoman ) ) ( VP ( VBD said ) ) )

Texaco acquired Tana before it completed those sales because Tana 's properties are high quality and near other fields Texaco already owns a company spokeswoman said


( S ( NP-SBJ-1 ( NNP Texaco ) ) ( PP ( IN like ) ( NP ( JJ many ) ( JJ other ) ( NN oil ) ( NNS companies ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBG struggling ) ( S ( VP ( TO to ) ( VP ( VB replace ) ( NP ( PRP$ its ) ( VBG falling ) ( NN oil ) ( CC and ) ( NN gas ) ( NNS reserves ) ) ) ) ) ) ) ) )

Texaco like many other oil companies has been struggling to replace its falling oil and gas reserves


( S ( NP-SBJ ( NP ( NNP Texaco ) ( POS 's ) ) ( NN situation ) ) ( VP ( VBD had ) ( VP ( VBN become ) ( ADJP-PRD ( RB particularly ) ( JJ complex ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-1 ( NP ( JJ much ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN effort ) ) ) ) ( VP ( VBD had ) ( PP-TMP ( IN for ) ( NP ( NNS years ) ) ) ( VP ( VBN been ) ( VP ( VBN focused ) ( PP-CLR ( PP ( IN on ) ( NP ( NP ( PRP$ its ) ( NN brawl ) ) ( PP ( IN with ) ( NP ( NNP Pennzoil ) ) ) ) ) ( CC and ) ( RB then ) ( PP ( IN on ) ( NP ( NP ( NNP New ) ( NNP York ) ( NN investor ) ( NNP Carl ) ( NNP C. ) ( NNP Icahn ) ( POS 's ) ) ( NN attempt ) ( S ( VP ( TO to ) ( VP ( VB take ) ( PRT ( RP over ) ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Texaco 's situation had become particularly complex because much of its effort had for years been focused on its brawl with Pennzoil and then on New York investor Carl C. Icahn 's attempt to take over the company


( S ( NP-SBJ ( NNP Pennzoil ) ) ( VP ( VBD had ) ( VP ( VBN sued ) ( NP-1 ( NNP Texaco ) ) ( PP-CLR ( IN for ) ( S-NOM ( ADVP-MNR ( RB improperly ) ) ( VP ( VBG interfering ) ( PP-CLR ( IN with ) ( NP ( NP ( PRP$ its ) ( NN acquisition ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN portion ) ) ( PP ( IN of ) ( NP ( NNP Getty ) ( NNP Oil ) ( NNP Co ) ) ) ) ) ) ) ) ) ) ) ) )

Pennzoil had sued Texaco for improperly interfering with its acquisition of a portion of Getty Oil Co


( S ( ADVP ( RB Eventually ) ) ( NP-SBJ ( NP ( NNP Texaco ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBD was ) ( VP ( VBN forced ) ( PP-CLR ( IN into ) ( NP ( NN bankruptcy ) ( NNS proceedings ) ) ) ( PP ( IN by ) ( NP-LGS ( DT that ) ( NN litigation ) ) ) ) ) ) ) ) ( VP ( VBD settled ) ( NP ( NP ( PRP$ its ) ( NN fight ) ) ( PP ( IN with ) ( NP ( NNP Pennzoil ) ) ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 3 ) ( CD billion ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1986 ) ) ) ) )

Eventually Texaco which was forced into bankruptcy proceedings by that litigation settled its fight with Pennzoil for 3 billion in 1986


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Icahn ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VP ( VBD played ) ( NP ( DT a ) ( JJ key ) ( NN role ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN settlement ) ) ) ) ( CC and ) ( VP ( VBD attempted ) ( ADVP-TMP ( RB subsequently ) ) ( S ( VP ( TO to ) ( VP ( VB take ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD sold ) ( NP ( NP ( PRP$ his ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NNP Texaco ) ) ) ) ( NP-TMP ( RB just ) ( JJ last ) ( NN summer ) ) ) )

Mr. Icahn who played a key role in the settlement and attempted subsequently to take control of the company sold his stake in Texaco just last summer


( S ( NP-SBJ ( NP ( NNP Completion ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Texaco ) ( POS 's ) ) ( NN acquisition ) ) ( PP ( IN of ) ( NP ( NNP Tana ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ subject ) ( PP ( TO to ) ( NP ( NN government ) ( NN approval ) ) ) ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( NNP Hart-Scott-Rodino ) ( NNP Antitrust ) ( NNP Improvements ) ( NNP Act ) ) ) ) )

Completion of Texaco 's acquisition of Tana is subject to government approval under the Hart-Scott-Rodino Antitrust Improvements Act


( S ( NP-SBJ ( NNP American ) ( NNP Telephone ) ( CC & ) ( NNP Telegraph ) ( NNP Co. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB lay ) ( PRT ( RP off ) ) ( NP ( QP ( CD 75 ) ( TO to ) ( CD 85 ) ) ( NNS technicians ) ) ( ADVP-LOC ( RB here ) ) ( S-ADV ( ADJP-PRD ( JJ effective ) ) ( NP-TMP-CLR ( NNP Nov. ) ( CD 1 ) ) ) ) ) ) ) ) )

American Telephone & Telegraph Co. said it will lay off 75 to 85 technicians here effective Nov. 1


( S ( NP-SBJ ( DT The ) ( NNS workers ) ) ( VP ( VBP install ) ( VBP maintain ) ( CC and ) ( VBP repair ) ( NP ( NP ( PRP$ its ) ( JJ private ) ( NN branch ) ( NNS exchanges ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP are ) ( NP-PRD ( JJ large ) ( JJ intracompany ) ( NN telephone ) ( NNS networks ) ) ) ) ) ) ) )

The workers install maintain and repair its private branch exchanges which are large intracompany telephone networks


( S ( NP-SBJ ( NNP TW ) ( NNP Services ) ( NNP Inc. ) ) ( VP ( VBD posted ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 3.3 ) ( CD million ) ) ) ( JJ third-quarter ) ( JJ net ) ( NN loss ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( DT a ) ( ADJP ( QP ( CD 24.9 ) ( CD million ) ) ) ( NN profit ) ) ) ) ) ( S-ADV ( VP ( VBG reflecting ) ( NP ( NP ( QP ( CD 60 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( NNS expenses ) ) ( VP ( VBN related ) ( PP-CLR ( TO to ) ( NP ( NP ( PRP$ its ) ( JJ much-publicized ) ( JJ proposed ) ( NN takeover ) ) ( PP ( IN by ) ( NP ( NNP Coniston ) ( NNP Partners ) ) ) ) ) ) ) ) ) ) ) ) )

TW Services Inc. posted a 3.3 million third-quarter net loss compared with a 24.9 million profit reflecting 60 million of expenses related to its much-publicized proposed takeover by Coniston Partners


( S ( NP-SBJ ( NP ( DT The ) ( JJ per-share ) ( NN loss ) ) ( PP ( IN for ) ( NP ( DT the ) ( NAC-LOC ( NNP Paramus ) ( NNP N.J. ) ) ( NNS food-services ) ( NN concern ) ) ) ) ( VP ( VBD totaled ) ( NP ( NP ( CD seven ) ( NNS cents ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( NNS earnings ) ) ( PP ( IN of ) ( NP ( NP ( CD 51 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) ) ) )

The per-share loss for the Paramus N.J. food-services concern totaled seven cents compared with earnings of 51 cents a share a year earlier


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 5 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 981.7 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 934.7 ) ( CD million ) ) ) ) ) )

Revenue rose 5 % to 981.7 million from 934.7 million


( S ( NP-SBJ ( NP ( NNP Coniston ) ) ( NP ( DT a ) ( NNP New ) ( NNP York ) ( NN investment ) ( NN partnership ) ) ) ( VP ( VBZ awaits ) ( NP ( NP ( DT a ) ( NN vote ) ) ( PP ( IN by ) ( NP ( NP ( NNP TW ) ( POS 's ) ) ( NNS shareholders ) ) ) ( VP ( VBN scheduled ) ( PP-TMP-CLR ( IN for ) ( NP ( NNP Friday ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NP ( NNP Coniston ) ( POS 's ) ) ( ADJP ( ADJP ( JJ 34-a-share ) ) ( CC or ) ( ADJP ( QP ( CD 1.66 ) ( CD billion ) ) ) ) ( NN offer ) ) ( PP ( IN for ) ( NP ( NNP TW ) ) ) ) ) ) ) )

Coniston a New York investment partnership awaits a vote by TW 's shareholders scheduled for Friday on Coniston 's 34-a-share or 1.66 billion offer for TW


( S ( NP-SBJ ( JJ Nine-month ) ( JJ net ) ( NN income ) ) ( VP ( VBD dropped ) ( NP-EXT ( CD 47 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 26.3 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 54 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 49.7 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.02 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) )

Nine-month net income dropped 47 % to 26.3 million or 54 cents a share from 49.7 million or 1.02 a share


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 6 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 2.79 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 2.63 ) ( CD billion ) ) ) ) ) )

Revenue rose 6 % to 2.79 billion from 2.63 billion


( S ( NP-SBJ ( NP ( NNP Hacksaw ) ) ( CC and ) ( NP ( NNP Bonecrusher ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( NN sort ) ) ( PP ( IN of ) ( NP ( NP ( NNS nicknames ) ) ( VP ( ADVP-MNR ( RB normally ) ) ( VBN associated ) ( PP-CLR ( IN with ) ( NP ( NP ( NNS linebackers ) ) ( CC and ) ( NP ( JJ heavyweight ) ( NNS contenders ) ) ) ) ) ) ) ) ) )

Hacksaw and Bonecrusher are the sort of nicknames normally associated with linebackers and heavyweight contenders


( SBARQ ( WHNP-1 ( WP Who ) ) ( SQ ( MD 'd ) ( VP ( VB have ) ( VP ( VBN thought ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ next ) ( NN group ) ) ( PP ( IN of ) ( NP ( NP ( JJ tough ) ( NNS guys ) ) ( VP ( VBG carrying ) ( PP-CLR ( IN around ) ( NP ( NP ( NNS reputations ) ) ( PP ( IN like ) ( NP ( DT that ) ) ) ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( NP-PRD ( NN school ) ( NNS superintendents ) ) ) ) ) ) ) ) ) )

Who 'd have thought that the next group of tough guys carrying around reputations like that would be school superintendents


( S ( NP-SBJ ( NP ( NNP Chicago ) ( POS 's ) ) ( JJ new ) ( NN school ) ( NN chief ) ) ( VP ( VBZ is ) ( NP-PRD ( DT the ) ( JJ hard-nosed ) ( NNP Ted ) ( NNP Kimbrough ) ) ) )

Chicago 's new school chief is the hard-nosed Ted Kimbrough


( S ( PP-LOC ( IN At ) ( NP ( NP ( PRP$ his ) ( JJ old ) ( NN job ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Compton ) ) ( NP ( NNP Calif. ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VP ( VBD took ) ( NP ( NP ( DT a ) ( JJ bitter ) ( NNS teachers ) ( POS ' ) ) ( NN strike ) ) ) ( CC and ) ( VP ( ADVP ( RB nearly ) ) ( VBD came ) ( PP-CLR ( TO to ) ( NP ( NNS blows ) ) ) ( PP-CLR ( IN with ) ( NP ( DT a ) ( NN school-board ) ( NN member ) ) ) ) ) )

At his old job in Compton Calif. he took a bitter teachers ' strike and nearly came to blows with a school-board member


( S ( PP-LOC ( IN At ) ( NP ( PRP$ his ) ( JJ first ) ( NNP Chicago ) ( NN press ) ( NN conference ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD berated ) ( NP ( DT the ) ( NNS reporters ) ) ) )

At his first Chicago press conference he berated the reporters


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ( NNP City ) ) ) ( NP-SBJ ( NP ( DT the ) ( JJ new ) ( NNP Chancellor ) ) ( NP ( NNP Joseph ) ( NNP Fernandez ) ) ) ( VP ( VBZ has ) ( VP ( VBN landed ) ( PP-MNR ( IN like ) ( NP ( DT a ) ( JJ 16-inch ) ( NN shell ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN middle ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN system ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( ADJP-PRD ( JJ impervious ) ( PP ( TO to ) ( NP ( JJ serious ) ( NN reform ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In New York City the new Chancellor Joseph Fernandez has landed like a 16-inch shell in the middle of a system that has been impervious to serious reform


( S ( NP-SBJ ( DT Both ) ( NNS men ) ) ( VP ( VBP fit ) ( NP ( NP ( NP ( DT the ) ( NN mood ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS times ) ) ) ) ) ( S-ADV ( NP-SBJ ( DT the ) ( NN mood ) ) ( VP ( VBG being ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN public ) ) ( VP ( VBN fed ) ( PRT ( RP up ) ) ( PP-CLR ( IN with ) ( NP ( NP ( NP ( NNS officials ) ( POS ' ) ) ( NNS rationalizations ) ) ( PP ( IN for ) ( SBAR ( WHADVP-1 ( WRB why ) ) ( S ( NP-SBJ ( PRP$ their ) ( NNS schools ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB work ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Both men fit the mood of the times the mood being one of a public fed up with officials ' rationalizations for why their schools do n't work


( S ( NP-SBJ ( NNP Former ) ( NAC-LOC ( NNP Patterson ) ( NNP N.J. ) ) ( NN principal ) ( NNP Joe ) ( NNP Clark ) ) ( VP ( VBD was ) ( NP-ADV ( DT no ) ( NN doubt ) ) ( NP-PRD ( NP ( NP ( DT the ) ( JJ general ) ( NN public ) ( POS 's ) ) ( JJ first ) ( NN experience ) ) ( PP ( IN with ) ( NP ( NP ( DT this ) ( JJ new ) ( NN breed ) ) ( PP ( IN of ) ( NP ( JJ no-nonsense ) ( NN administrator ) ) ) ) ) ) ) )

Former Patterson N.J. principal Joe Clark was no doubt the general public 's first experience with this new breed of no-nonsense administrator


( S ( S-ADV ( NP-PRD ( NP ( DT The ) ( NN subject ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN movie ) ) ( S-TTL ( VP ( VB Lean ) ( PP ( IN on ) ( NP ( PRP Me ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( NNP Mr. ) ( NNP Clark ) ) ( VP ( VBD controlled ) ( NP ( PRP$ his ) ( NN school ) ) ( PP-MNR ( IN with ) ( NP ( NP ( DT a ) ( NN bullhorn ) ) ( CC and ) ( NP ( DT a ) ( NN baseball ) ( NN bat ) ) ) ) ) )

The subject of the movie Lean on Me Mr. Clark controlled his school with a bullhorn and a baseball bat


( S ( S ( NP-SBJ ( PRP He ) ) ( VP ( MD may ) ( VP ( VB have ) ( VP ( VBN gone ) ( ADVP-DIR ( RB overboard ) ) ( PP-LOC ( IN in ) ( NP ( NP ( PRP$ his ) ( NN pursuit ) ) ( PP ( IN of ) ( NP ( JJ good ) ( NN discipline ) ) ) ) ) ) ) ) ) ( CC but ) ( SQ ( VBZ is ) ( RB n't ) ( NP-SBJ ( NP ( PRP it ) ) ) ( ADJP-PRD ( JJ interesting ) ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( JJS biggest ) ( ADJP ( RBS most ) ( JJ troubled ) ) ( NN school ) ( NNS districts ) ) ) ) ( VP ( VBP are ) ( VP ( VBG choosing ) ( NP ( JJ new ) ( NNS chiefs ) ) ( PP ( IN from ) ( NP ( DT the ) ( JJ same ) ( JJ gravel-chewing ) ( NN mold ) ) ) ) ) ) ) ) )

He may have gone overboard in his pursuit of good discipline but is n't it interesting that some of the country 's biggest most troubled school districts are choosing new chiefs from the same gravel-chewing mold


( S ( NP-SBJ ( NP ( NNP Elena ) ( NNP Scambio ) ) ( NP ( NP ( DT the ) ( NN woman ) ) ( VP ( VBN assigned ) ( S ( VP ( TO to ) ( VP ( VB run ) ( NP ( NP ( DT the ) ( NNP Jersey ) ( NNP City ) ( NN school ) ( NN system ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD was ) ( VP ( VBN taken ) ( PRT ( RP over ) ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NN state ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP$ her ) ( JJ top ) ( NN priority ) ) ( VP ( MD will ) ( VP ( VB be ) ( S-PRD ( VP ( TO to ) ( VP ( VB cut ) ( PP-CLR ( IN through ) ( NP ( NP ( DT the ) ( JJ dead ) ( NN hand ) ) ( PP ( IN of ) ( NP ( NN bureaucracy ) ) ) ) ) ) ) ) ) ) ) ) ) )

Elena Scambio the woman assigned to run the Jersey City school system that was taken over by the state says her top priority will be to cut through the dead hand of bureaucracy


( S ( S ( NP-SBJ ( NNP Mr. ) ( NNP Fernandez ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB take ) ( NP ( NN control ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ( PP-TMP ( IN until ) ( NP ( NNP January ) ) ) ) ) ) ( CC but ) ( S ( ADVP ( RB already ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ 's ) ( VP ( VBG roiling ) ( NP ( DT the ) ( NNS waters ) ) ) ) ) )

Mr. Fernandez does n't take control in New York until January but already he 's roiling the waters


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ 's ) ( VP ( VBN attacked ) ( NP ( NP ( DT the ) ( NN concept ) ) ( PP ( IN of ) ( NP ( NP ( NN building ) ( NN tenure ) ) ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ disgraceful ) ) ( NNS institutions ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ American ) ( JJ public ) ( NNS schools ) ) ) ) ) ) ) ) ) )

He 's attacked the concept of building tenure one of the most disgraceful institutions in American public schools


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ means ) ( SBAR ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB virtually ) ( JJ impossible ) ) ( S-1 ( VP ( TO to ) ( VP ( VB fire ) ( CC or ) ( RB even ) ( VB transfer ) ( NP ( JJ incompetent ) ( NNS principals ) ) ) ) ) ) ) ) ) )

It means it is virtually impossible to fire or even transfer incompetent principals


( S ( SBAR-TMP ( RB Once ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( PP-LOC-PRD ( IN in ) ( NP ( DT the ) ( NN building ) ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP stay ) ) )

Once they are in the building they stay


( S ( NP-SBJ ( CD One ) ( NNP South ) ( NNP Bronx ) ( NN principal ) ) ( VP ( VBD kept ) ( NP ( PRP$ his ) ( NN job ) ) ( PP-TMP ( IN for ) ( NP ( CD 16 ) ( NNS years ) ) ) ( PP ( IN despite ) ( NP ( NP ( DT a ) ( JJ serious ) ( NN drinking ) ( NN problem ) ) ( CC and ) ( S-NOM ( ADVP-TMP ( RB rarely ) ) ( VP ( VBG showing ) ( PRT ( RP up ) ) ( PP-CLR ( IN for ) ( NP ( NN work ) ) ) ) ) ) ) ) )

One South Bronx principal kept his job for 16 years despite a serious drinking problem and rarely showing up for work


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD was ) ( ADVP ( RB finally ) ) ( VP ( VBN given ) ( NP ( NN leave ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBD was ) ( VP ( VBN arrested ) ( PP-CLR ( IN for ) ( S-NOM ( ADVP ( RB allegedly ) ) ( VP ( VBG buying ) ( NP ( NN crack ) ) ) ) ) ) ) ) ) ) ) )

He was finally given leave when he was arrested for allegedly buying crack


( S ( ADVP ( RB Naturally ) ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS principals ) ( POS ' ) ) ( NN union ) ) ( VP ( VBZ loves ) ( NP ( NN building ) ( NN tenure ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NN tenure ) ) ( VP ( VBZ has ) ( VP ( VBN withstood ) ( NP ( JJ previous ) ( NN challenge ) ) ) ) ) )

Naturally the principals ' union loves building tenure and tenure has withstood previous challenge


( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP suggest ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Fernandez ) ) ( VP ( VP ( VB find ) ( NP ( DT an ) ( JJ incompetent ) ( NN principal ) ) ) ( VP ( VB toss ) ( NP ( PRP him ) ) ( PP-DIR ( IN out ) ( PP ( IN of ) ( NP ( DT the ) ( NN building ) ) ) ) ) ( CC and ) ( VP ( VB let ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS forces ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN status ) ( NN quo ) ) ) ) ( VP ( VB explain ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NNS parents ) ) ) ( SBAR-NOM ( WHNP-1 ( WDT whatever ) ) ( S-CLF ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP 're ) ( VP ( VBG defending ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

We suggest that Mr. Fernandez find an incompetent principal toss him out of the building and let the forces of the status quo explain to the parents whatever it is they 're defending


( S ( PP-LOC ( IN In ) ( NP ( PRP$ his ) ( JJ old ) ( NN job ) ) ) ( PP ( IN as ) ( NP ( NNP Dade ) ( NNP County ) ( NN chief ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Fernandez ) ) ( VP ( VP ( VBD forced ) ( ADVP-DIR ( RP out ) ) ( NP ( CD 92 ) ( NNS teachers ) ) ) ( CC and ) ( VP ( VBD reshuffled ) ( NP ( CD 48 ) ( NNS principals ) ) ) ) )

In his old job as Dade County chief Mr. Fernandez forced out 92 teachers and reshuffled 48 principals


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD cut ) ( NP ( DT the ) ( NN dropout ) ( NN rate ) ) ( PP-EXT ( IN by ) ( NP ( CD 5.5 ) ( NN % ) ) ) ) )

He cut the dropout rate by 5.5 %


( S ( S ( CC But ) ( NP-SBJ-2 ( DT the ) ( JJ no-more-nonsense ) ( NNS superintendents ) ) ( VP ( VBP are ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ judicious ) ) ( ADVP ( IN as ) ( RB well ) ) ) ) ) ) ) ) ) ) ) ( S ( S ( NP-SBJ ( JJ incompetent ) ( NNS principals ) ( CC and ) ( NNS administrators ) ) ( VP ( MD should ) ( VP ( VB go ) ) ) ) ( CC but ) ( S ( NP-SBJ-4 ( DT the ) ( JJ good ) ( NNS ones ) ) ( VP ( MD ought ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN left ) ( ADVP-CLR ( RB alone ) ) ) ) ) ) ) ) ) )

But the no-more-nonsense superintendents are going to have to be judicious as well incompetent principals and administrators should go but the good ones ought to be left alone


( S ( NP-SBJ ( DT The ) ( NN situation ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( RB especially ) ( JJ delicate ) ) ( PP ( IN for ) ( NP ( NNP Mr. ) ( NNP Kimbrough ) ) ) ) ) )

The situation will be especially delicate for Mr. Kimbrough


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ takes ) ( PRT ( RP over ) ) ( NP ( NP ( DT a ) ( NN school ) ( NN system ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN midst ) ) ( PP ( IN of ) ( NP ( JJ radical ) ( NN reform ) ) ) ) ) ) ) )

He takes over a school system in the midst of radical reform


( S ( NP-SBJ ( NNPS Chicagoans ) ) ( VP ( VBP have ) ( ADVP ( RB just ) ) ( VP ( VBN elected ) ( NP ( NP ( CD 540 ) ( JJ neophyte ) ( NN school ) ( NNS boards ) ) ( NP ( NP ( CD one ) ) ( PP ( IN for ) ( NP ( DT each ) ( NN school ) ) ) ) ) ) ) )

Chicagoans have just elected 540 neophyte school boards one for each school


( S ( NP-SBJ ( DT This ) ) ( PP ( IN of ) ( NP ( NN course ) ) ) ( VP ( VBD led ) ( PP-DIR ( TO to ) ( NP ( NN disaster ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ( NNP City ) ) ) ) )

This of course led to disaster in New York City


( S ( S ( S-NOM-SBJ ( VP ( VBG Getting ) ( S ( NP-SBJ ( NP ( DT a ) ( NN community ) ) ( PP ( IN of ) ( NP ( NNS parents ) ) ) ) ( VP ( TO to ) ( VP ( VB care ) ( ADVP ( RB again ) ) ( PP-CLR ( IN about ) ( NP ( PRP$ its ) ( NNS schools ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ essential ) ) ) ) ( CC but ) ( S ( PP-LOC ( IN in ) ( NP ( NNP Chicago ) ) ) ( S ( NP-SBJ ( DT the ) ( JJ new ) ( NNS boards ) ) ( VP ( MD will ) ( VP ( VB make ) ( NP ( NNS mistakes ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Kimbrough ) ) ( VP ( MD will ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB identify ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) )

Getting a community of parents to care again about its schools is essential but in Chicago the new boards will make mistakes and Mr. Kimbrough will have to identify them


( S ( NP-SBJ ( NP ( DT The ) ( NN rise ) ) ( PP ( IN of ) ( NP ( NP ( NNS superintendents ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Joseph ) ( NNP Fernandez ) ) ( CC and ) ( NP ( NNP Ted ) ( NNP Kimbrough ) ) ) ) ) ) ) ( VP ( VBZ suggests ) ( ADVP-MNR ( RB plainly ) ) ( NP ( NP ( DT the ) ( NN process ) ) ( PP ( IN of ) ( NP ( NN disintegration ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ many ) ( NN school ) ( NNS systems ) ) ) ) ) )

The rise of superintendents such as Joseph Fernandez and Ted Kimbrough suggests plainly the process of disintegration in many school systems


( S ( NP-SBJ-1 ( NP ( NP ( DT The ) ( NNS schools ) ( POS ' ) ) ( JJ central ) ( NN mission ) ) ( S-NOM ( VP ( VBG educating ) ( NP ( NNS children ) ) ) ) ) ( VP ( VBD became ) ( VP ( VBN subsumed ) ( PP ( IN by ) ( NP ( NP ( DT the ) ( VBG competing ) ( NNS interests ) ) ( PP ( IN of ) ( NP ( NNS bureaucrats ) ( NNS politicians ) ( CC and ) ( NNS unions ) ) ) ) ) ) ) )

The schools ' central mission educating children became subsumed by the competing interests of bureaucrats politicians and unions


( S ( S ( NP-SBJ ( NP ( DT The ) ( NN classroom ) ) ( NP ( PRP itself ) ) ) ( VP ( VBD operated ) ( PP-LOC ( IN on ) ( NP ( NP ( DT the ) ( NN periphery ) ) ( PP ( IN of ) ( NP ( DT this ) ( JJ awful ) ( NN system ) ) ) ) ) ) ) ( S ( NP-SBJ ( NN discipline ) ) ( VP ( VBD collapsed ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( NNS kids ) ) ( VP ( VBD stopped ) ( S ( VP ( VBG learning ) ) ) ) ) )

The classroom itself operated on the periphery of this awful system discipline collapsed and kids stopped learning


( S ( S ( NP-SBJ ( NNP Mr. ) ( NNP Chips ) ) ( VP ( VBD was ) ( NP-PRD ( DT a ) ( JJ nice ) ( NN fellow ) ) ) ) ( CC and ) ( S ( ADVP ( RB maybe ) ) ( NP-TMP ( DT some ) ( NN day ) ) ( NP-SBJ ( PRP he ) ) ( VP ( MD 'll ) ( VP ( VB return ) ) ) ) )

Mr. Chips was a nice fellow and maybe some day he 'll return


( S ( PP-TMP ( IN Until ) ( NP ( RB then ) ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJ clear ) ) ( SBAR-2 ( IN that ) ( S ( NP-SBJ-3 ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS people ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP 've ) ( VP ( VBN been ) ( VP ( VBG keeping ) ( NP ( JJ big-city ) ( NNS schools ) ) ( ADVP-CLR ( RB down ) ) ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBG dealing ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNP Terminator ) ) ) ) ) ) ) ) ) ) ) ) )

Until then it 's clear that some of the people who 've been keeping big-city schools down are going to be dealing with the Terminator


( S ( NP-SBJ ( NNP Harsco ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD obtained ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 33.1 ) ( CD million ) ) ) ( NN export ) ( NN order ) ) ( PP ( IN for ) ( NP ( NP ( JJ armored ) ( NN recovery ) ( NNS vehicles ) ) ( CC and ) ( NP ( JJ related ) ( NN support ) ( NN equipment ) ) ) ) ) ) ) ) ) )

Harsco Corp. said it obtained a 33.1 million export order for armored recovery vehicles and related support equipment


( S ( NP-SBJ-2 ( NNP Harsco ) ) ( VP ( VBD declined ) ( S ( VP ( TO to ) ( VP ( VB say ) ( SBAR ( WHNP-1 ( WP what ) ( NN country ) ) ( S ( VP ( VBD placed ) ( NP ( DT the ) ( NN order ) ) ) ) ) ) ) ) ) )

Harsco declined to say what country placed the order


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD received ) ( NP ( NP ( NP ( DT an ) ( NN order ) ) ( PP ( IN for ) ( NP ( NP ( CD 23 ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS vehicles ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP retrieve ) ( NP ( NP ( NNS tanks ) ) ( CC and ) ( NP ( JJ other ) ( JJ heavy-tracked ) ( NNS vehicles ) ) ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ-2 ( PRP they ) ) ( VP ( VP ( VBP break ) ( PRT ( RP down ) ) ) ( CC or ) ( VP ( VBP are ) ( VP ( VBN damaged ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( DT an ) ( NN option ) ) ( PP ( IN for ) ( NP ( NP ( CD 16 ) ) ( ADJP ( JJR more ) ) ) ) ) ) ) ) ) ) )

The company said it received an order for 23 of the vehicles which retrieve tanks and other heavy-tracked vehicles when they break down or are damaged and an option for 16 more


( S ( NP-SBJ-1 ( NN Delivery ) ) ( VP ( VBZ is ) ( S ( VP ( TO to ) ( VP ( VB begin ) ( PP-TMP ( IN in ) ( NP ( JJ early ) ( CD 1991 ) ) ) ) ) ) ) )

Delivery is to begin in early 1991


( S ( NP-SBJ ( NNP Harsco ) ) ( VP ( VBZ produces ) ( NP ( NP ( NNS products ) ) ( PP ( IN for ) ( NP ( UCP ( NN defense ) ( JJ industrial ) ( JJ commercial ) ( CC and ) ( NN construction ) ) ( NNS markets ) ) ) ) ) )

Harsco produces products for defense industrial commercial and construction markets


( S ( NP-SBJ ( DT The ) ( NNP Justice ) ( NNP Department ) ) ( VP ( VBZ has ) ( VP ( VP ( VBN revised ) ( NP ( JJ certain ) ( JJ internal ) ( NNS guidelines ) ) ) ( CC and ) ( VP ( VBN clarified ) ( NP ( NNS others ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( NN move ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD could ) ( VP ( VB restrict ) ( NP ( NP ( DT the ) ( NN use ) ) ( PP ( IN of ) ( NP ( JJ criminal ) ( NN racketeering ) ( NNS charges ) ) ) ( PP ( IN against ) ( NP ( JJ white-collar ) ( NNS defendants ) ) ) ) ) ) ) ) ) ) ) ) )

The Justice Department has revised certain internal guidelines and clarified others in a move that could restrict the use of criminal racketeering charges against white-collar defendants


( S ( S-TPC-2 ( NP-SBJ ( NP ( DT The ) ( RBS most ) ( JJ significant ) ( NNS changes ) ) ( PP ( IN in ) ( NP ( NN department ) ( NN policy ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( JJ new ) ( NNS requirements ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( JJ federal ) ( NNS prosecutors ) ) ( VP ( VB avoid ) ( S ( VP ( VBG disrupting ) ( NP ( NP ( DT the ) ( JJ normal ) ( NN business ) ( NNS functions ) ) ( PP ( IN of ) ( NP ( NP ( NNS companies ) ) ( VP ( VBN charged ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( NN racketeering ) ( NN law ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT a ) ( JJ senior ) ( NN department ) ( NN official ) ) ( VP ( VBD said ) ) )

The most significant changes in department policy are new requirements that federal prosecutors avoid disrupting the normal business functions of companies charged under the racketeering law a senior department official said


( S ( S-TPC-2 ( NP-SBJ ( NP ( DT Another ) ( JJ important ) ( NN revision ) ) ( PP ( IN of ) ( NP ( NN department ) ( NN policy ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ new ) ( NN guideline ) ) ( VP ( VBG warning ) ( S ( NP-SBJ ( NNS prosecutors ) ) ( RB not ) ( VP ( TO to ) ( VP ( VB take ) ( NP ( NP ( NNS steps ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VB harm ) ( NP ( JJ innocent ) ( JJ third ) ( NNS parties ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( NN case ) ) ( VP ( VBN brought ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( NN racketeering ) ( NN law ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN official ) ) ( NP ( NNP David ) ( NNP Runkel ) ) ) ( VP ( VBD said ) ) )

Another important revision of department policy is a new guideline warning prosecutors not to take steps that would harm innocent third parties in a case brought under the racketeering law the official David Runkel said


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN department ) ) ( VP ( VBD distributed ) ( NP ( DT the ) ( NNS revisions ) ( CC and ) ( NNS clarifications ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NNP U.S. ) ( NNS attorneys ) ) ( PP-LOC ( IN around ) ( NP ( DT the ) ( NN country ) ) ) ) ) ( NP-TMP ( DT this ) ( NN summer ) ) ( PP-MNR ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ routine ) ( NN process ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG updating ) ( NP ( JJ prosecutorial ) ( NNS guidelines ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Runkel ) ) ( VP ( VBD said ) ) )

The department distributed the revisions and clarifications to U.S. attorneys around the country this summer as part of a routine process of updating prosecutorial guidelines Mr. Runkel said


( S ( NP-SBJ ( DT The ) ( NNS changes ) ) ( VP ( VBP apply ) ( PP-CLR ( TO to ) ( NP ( NP ( NNS prosecutions ) ) ( VP ( VBN brought ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( NNP Racketeer ) ( NNP Influenced ) ( CC and ) ( NNP Corrupt ) ( NNP Organizations ) ( NN law ) ) ) ) ) ) ) )

The changes apply to prosecutions brought under the Racketeer Influenced and Corrupt Organizations law


( S ( PP-LOC ( IN Under ) ( NP ( DT that ) ( NN law ) ) ) ( NP-SBJ-2 ( NP ( NNS defendants ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( ADVP ( RB allegedly ) ) ( VP ( VBP commit ) ( NP ( NP ( DT a ) ( NN pattern ) ) ( PP ( IN of ) ( NP ( NNS crimes ) ) ) ) ( PP-MNR ( IN by ) ( NP ( NP ( NNS means ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ criminal ) ( NN enterprise ) ) ) ) ) ) ) ) ) ( VP ( MD may ) ( VP ( VB be ) ( VP ( VP ( VBN charged ) ( PP-CLR ( IN with ) ( NP ( VBG racketeering ) ) ) ) ( CC and ) ( VP ( VBD forced ) ( S ( VP ( TO to ) ( VP ( VB forfeit ) ( NP ( NP ( DT the ) ( NNS proceeds ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN enterprise ) ) ) ) ) ) ) ) ) ) ) )

Under that law defendants who allegedly commit a pattern of crimes by means of a criminal enterprise may be charged with racketeering and forced to forfeit the proceeds of the enterprise


( S ( NP-SBJ ( DT The ) ( NNP RICO ) ( NN law ) ) ( VP ( VBZ has ) ( VP ( VBN come ) ( PP-CLR ( IN under ) ( NP ( NP ( NN criticism ) ) ( PP ( IN from ) ( NP ( DT some ) ( NNS defendants ) ( CC and ) ( NN defense ) ( NNS lawyers ) ) ) ) ) ) ) )

The RICO law has come under criticism from some defendants and defense lawyers


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP argue ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NNS rights ) ) ( PP ( IN of ) ( NP ( NP ( NNP RICO ) ( NNS defendants ) ) ( CC and ) ( NP ( NP ( JJ third ) ( NNS parties ) ) ( VP ( RB not ) ( VBN named ) ( PP-LOC ( IN in ) ( NP ( NNP RICO ) ( NNS indictments ) ) ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( ADVP-MNR ( RB unfairly ) ) ( VP ( VBN damaged ) ) ) ) ) ) ) )

They argue that the rights of RICO defendants and third parties not named in RICO indictments have been unfairly damaged


( S ( S-TPC-3 ( NP-SBJ ( NP ( NP ( DT The ) ( NN department ) ( VBZ 's ) ) ( ADJP ( RBS most ) ( JJ significant ) ) ( NN clarification ) ) ( PP ( IN of ) ( NP ( JJ existing ) ( NNP RICO ) ( NN policy ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN directive ) ) ( PP ( TO to ) ( NP ( NNS prosecutors ) ) ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ-2 ( PRP they ) ) ( VP ( MD should ) ( VP ( VB seek ) ( S ( VP ( TO to ) ( VP ( VB seize ) ( NP ( NNS assets ) ) ( PP-CLR ( IN from ) ( NP ( NNS defendants ) ) ) ( PP ( IN in ) ( NP ( NP ( NN proportion ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NN nature ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ alleged ) ( NN offense ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Runkel ) ) ( VP ( VBD said ) ) )

The department 's most significant clarification of existing RICO policy is a directive to prosecutors that they should seek to seize assets from defendants in proportion to the nature of the alleged offense Mr. Runkel said


( S ( S-TPC-3 ( NP-SBJ ( DT That ) ) ( VP ( VBZ means ) ( SBAR ( IN that ) ( S ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT the ) ( NN offense ) ) ( VP ( VBZ deals ) ( PP-CLR ( IN with ) ( NP ( NP ( CD one ) ( NN part ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN business ) ) ) ) ) ) ) ) ( S ( NP-SBJ-1 ( PRP you ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB attempt ) ( S ( VP ( TO to ) ( VP ( VB seize ) ( NP ( DT the ) ( JJ whole ) ( NN business ) ) ) ) ) ) ) ) ( S ( NP-SBJ-2 ( PRP you ) ) ( VP ( VBP attempt ) ( S ( VP ( TO to ) ( VP ( VB seize ) ( NP ( NP ( NNS assets ) ) ( VP ( VBN related ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NN crime ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD explained ) ) )

That means that if the offense deals with one part of the business you do n't attempt to seize the whole business you attempt to seize assets related to the crime he explained


( S ( S-TPC-1 ( PP ( IN In ) ( ADJP ( JJ general ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN thrust ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN department ) ( POS 's ) ) ( NN directive ) ) ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB encourage ) ( S ( NP-SBJ ( NNS prosecutors ) ) ( VP ( TO to ) ( VP ( VB limit ) ( NP ( JJ pretrial ) ( NN asset ) ( NNS seizures ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( ADJP ( RBR less ) ( JJ intrusive ) ) ( NNS means ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG protecting ) ( NP ( NP ( NNS assets ) ) ( SBAR ( S ( NP-SBJ-3 ( DT the ) ( NN government ) ) ( VP ( MD may ) ( ADVP ( RB subsequently ) ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB seize ) ) ) ) ) ( PP-TMP ( IN after ) ( NP ( DT a ) ( NN conviction ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Runkel ) ) ( VP ( VBD said ) ) )

In general the thrust of the department 's directive is to encourage prosecutors to limit pretrial asset seizures if there are less intrusive means of protecting assets the government may subsequently be able to seize after a conviction Mr. Runkel said


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( JJ last-ditch ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB keep ) ( NP ( PRP$ its ) ( NNS sales ) ( NN force ) ( CC and ) ( NN customer ) ( NN base ) ) ) ) ) ) ) ( NP-SBJ ( NNP Integrated ) ( NNP Resources ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD agreed ) ( PP-MNR ( IN in ) ( NP ( NN principle ) ) ) ( S ( VP ( TO to ) ( VP ( VB transfer ) ( NP ( NP ( NN ownership ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN broker-dealer ) ( NN subsidiary ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( CD two ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ top ) ( NNS executives ) ) ) ) ) ) ) ) ) ) ) ) )

In a last-ditch effort to keep its sales force and customer base Integrated Resources Inc. said it agreed in principle to transfer ownership of its broker-dealer subsidiary to two of its top executives


( S ( NP-SBJ ( NP ( DT The ) ( NNS financial-services ) ( NN firm ) ) ( VP ( VBG struggling ) ( PP-TMP ( IN since ) ( NP ( NN summer ) ) ) ( S ( VP ( TO to ) ( VP ( VB avoid ) ( NP ( DT a ) ( NN bankruptcy-law ) ( NN filing ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG missing ) ( NP ( NP ( NN interest ) ( NNS payments ) ) ( PP ( IN on ) ( NP ( NP ( QP ( RB about ) ( CD 1 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NN debt ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB retain ) ( NP ( DT the ) ( NN right ) ( S ( VP ( TO to ) ( VP ( VB regain ) ( NP ( DT the ) ( NN subsidiary ) ) ) ) ) ) ) ) )

The financial-services firm struggling since summer to avoid a bankruptcy-law filing after missing interest payments on about 1 billion of debt will retain the right to regain the subsidiary


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB exercise ) ( NP ( DT that ) ( NN right ) ) ( SBAR-ADV ( RB only ) ( IN if ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ sells ) ( ADVP ( RB substantially ) ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ other ) ( JJ core ) ( NNS businesses ) ) ) ) ) ) ) ) ) ) ) ) )

It said it will exercise that right only if it sells substantially all of its other core businesses


( S ( NP-SBJ ( PRP It ) ) ( ADVP ( RB also ) ) ( VP ( MD can ) ( VP ( VB sell ) ( NP ( DT the ) ( NN right ) ( S ( VP ( TO to ) ( VP ( VB regain ) ( NP ( DT the ) ( NN subsidiary ) ) ) ) ) ) ( PP-DTV ( TO to ) ( NP ( DT another ) ( NN party ) ) ) ) ) )

It also can sell the right to regain the subsidiary to another party


( S ( ADVP ( RB Also ) ) ( NP-SBJ-1 ( NP ( DT the ) ( NN broker-dealer ) ( NN subsidiary ) ) ( NP ( NNP Integrated ) ( NNP Resources ) ( NNP Equity ) ( NNP Corp. ) ) ) ( VP ( VBD was ) ( VP ( VBN renamed ) ( S ( NP-PRD ( NNP Royal ) ( NNP Alliance ) ( NNP Associates ) ( NNP Inc ) ) ) ) ) )

Also the broker-dealer subsidiary Integrated Resources Equity Corp. was renamed Royal Alliance Associates Inc


( S ( PP-PRP ( IN Because ) ( IN of ) ( NP ( NP ( NNP Integrated ) ( POS 's ) ) ( ADJP ( RB widely ) ( VBN reported ) ) ( NNS troubles ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN unit ) ( POS 's ) ) ( NNS representatives ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBG requesting ) ( NP ( DT a ) ( NN name ) ( NN change ) ) ) ) ) )

Because of Integrated 's widely reported troubles the unit 's representatives had been requesting a name change


( S ( NP-SBJ ( NP ( NNP Royal ) ( NNP Alliance ) ) ( SBAR ( WHPP-3 ( TO to ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( CD 3,900 ) ( NNS representatives ) ( POS ' ) ) ( NNS licenses ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN transferred ) ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN shell ) ( NN company ) ) ( SBAR ( S ( NP-SBJ ( NNP Integrated ) ) ( VP ( VBZ owns ) ) ) ) ) ) )

Royal Alliance to which the 3,900 representatives ' licenses will be transferred is a shell company Integrated owns


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( NN transaction ) ) ) ( NP-SBJ ( NNP Integrated ) ) ( VP ( MD will ) ( VP ( VB transfer ) ( NP ( NP ( ADJP ( CD 100 ) ( NN % ) ) ( NN ownership ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN subsidiary ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( NNP Gerard ) ( NNP M. ) ( NNP Lavin ) ) ( NP ( NP ( NP ( JJ executive ) ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( NNP Integrated ) ) ) ) ( CC and ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( JJ back-office ) ( NNS operations ) ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NN subsidiary ) ) ) ) ) ) ( CC and ) ( NP ( NP ( NNP Gary ) ( NNP W. ) ( NNP Krat ) ) ( NP ( NP ( NP ( JJ executive ) ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN parent ) ) ) ) ( CC and ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN subsidiary ) ) ) ) ) ) ) ) ) ) )

In the transaction Integrated will transfer 100 % ownership of the subsidiary to Gerard M. Lavin executive vice president of Integrated and head of back-office operations at the subsidiary and Gary W. Krat executive vice president of the parent and president of the subsidiary


( S ( NP-SBJ ( NNP Integrated ) ) ( VP ( MD will ) ( VP ( VB pump ) ( NP ( QP ( CD 3.5 ) ( CD million ) ( TO to ) ( CD 4 ) ( CD million ) ) ) ( PP-CLR ( IN into ) ( NP ( NNP Royal ) ( NNP Alliance ) ) ) ( PP-MNR ( IN as ) ( NP ( JJ initial ) ( NN funding ) ) ) ) ) )

Integrated will pump 3.5 million to 4 million into Royal Alliance as initial funding


( S ( PP-LOC ( IN In ) ( NP ( DT an ) ( NN interview ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Krat ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP ( VBN based ) ( PP ( IN on ) ( NP ( NP ( NNS criteria ) ) ( SBAR ( S ( ADVP ( RB yet ) ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN determined ) ) ) ) ) ) ) ) ) ( NP-SBJ-4 ( PRP he ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB distribute ) ( NP ( NP ( CD 49 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP Royal ) ( NNP Alliance ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NNS representatives ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP sell ) ( NP ( NP ( NNP Integrated ) ( POS 's ) ) ( UCP ( NN insurance ) ( CC and ) ( NN mutual-fund ) ) ( NNS products ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In an interview Mr. Krat said that based on criteria yet to be determined he expects to distribute 49 % of Royal Alliance to the representatives who sell Integrated 's insurance and mutual-fund products


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NNP Integrated ) ) ( VP ( VBZ regains ) ( NP ( NNP Royal ) ( NNP Alliance ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNS representatives ) ) ( VP ( MD will ) ( VP ( VB retain ) ( NP ( PRP$ their ) ( ADJP ( CD 49 ) ( NN % ) ) ( NN ownership ) ) ) ) )

If Integrated regains Royal Alliance the representatives will retain their 49 % ownership


( S ( S ( NP-SBJ ( NNP Mr. ) ( NNP Krat ) ) ( VP ( VBD indicated ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NN completion ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN transaction ) ) ) ) ( VP ( MD could ) ( VP ( VB take ) ( NP ( JJ several ) ( NNS weeks ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( RB n't ) ( ADVP ( RB immediately ) ) ( VP ( VB clear ) ( SBAR ( WHNP-1 ( WP what ) ) ( S ( VP ( MD would ) ( VP ( VB happen ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NN broker-dealer ) ( NN subsidiary ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NNP Integrated ) ) ( VP ( NNS files ) ( PP-CLR ( IN for ) ( NP ( NN bankruptcy-law ) ( NN protection ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN meantime ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Krat indicated that completion of the transaction could take several weeks and it was n't immediately clear what would happen to the broker-dealer subsidiary if Integrated files for bankruptcy-law protection in the meantime


( S ( NP-SBJ-1 ( DT The ) ( NN subsidiary ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ profitable ) ) ( PP-TMP ( IN for ) ( NP ( QP ( IN at ) ( JJS least ) ( CD one ) ) ( NN year ) ) ) ) ) ) ) ) )

The subsidiary is n't expected to be profitable for at least one year


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NNP Integrated ) ) ( VP ( VBZ regains ) ( NP ( DT the ) ( NN unit ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB receive ) ( NP ( NP ( DT any ) ( NN profit ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN unit ) ) ( VP ( VBZ reports ) ) ) ) ) ( SBAR-TMP ( RB even ) ( IN while ) ( S ( NP-SBJ ( DT the ) ( NN unit ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ independent ) ) ) ) ) ) ) )

If Integrated regains the unit it would receive any profit the unit reports even while the unit is independent


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NN deal ) ) ( VP ( VBZ closes ) ) ) ) ( NP-SBJ ( DT the ) ( CD two ) ( NNS officers ) ) ( VP ( MD will ) ( VP ( VB draw ) ( NP ( NNS salaries ) ) ( PP-DIR ( PP ( IN from ) ( NP ( DT the ) ( JJ independent ) ( NN operation ) ) ) ( RB not ) ( PP ( IN from ) ( NP ( NNP Integrated ) ) ) ) ) ) )

If the deal closes the two officers will draw salaries from the independent operation not from Integrated


( S ( NP-SBJ ( NP ( JJ Many ) ( NNS aspects ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN agreement ) ) ) ) ( VP ( VBD were ) ( VP ( VBN worked ) ( PRT ( RP out ) ) ( NP-TMP ( NNP Wednesday ) ) ( PP-LOC ( IN in ) ( NP ( NNP Chicago ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NNP Integrated ) ( JJ senior ) ( NNS managers ) ) ( VP ( VBD met ) ( PP-CLR ( IN with ) ( NP ( QP ( RB about ) ( CD 150 ) ) ( NNS representatives ) ) ) ) ) ) ) ) )

Many aspects of the agreement were worked out Wednesday in Chicago when Integrated senior managers met with about 150 representatives


( SINV ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( NN something ) ) ( SBAR ( WHNP-2 ( IN that ) ) ( S ( NP-SBJ ( PRP we ) ( CC and ) ( PRP they ) ) ( VP ( VBD thought ) ( SBAR ( S ( VP ( VBD was ) ( ADJP-PRD ( JJ constructive ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Stephen ) ( NNP D. ) ( NNP Weinroth ) ) ( NP ( NP ( NP ( NN chairman ) ) ( CC and ) ( NP ( JJ co-chief ) ( JJ executive ) ( NN officer ) ) ) ( PP ( IN of ) ( NP ( NNP Integrated ) ) ) ) ) )

I think it was something that we and they thought was constructive said Stephen D. Weinroth chairman and co-chief executive officer of Integrated


( S ( NP-SBJ ( NNP Integrated ) ) ( VP ( VBD made ) ( NP ( PRP$ its ) ( NN announcement ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBD closed ) ) ) ) ) )

Integrated made its announcement after the market closed


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( NNP Composite ) ( NN trading ) ) ) ( NP-SBJ ( NNP Integrated ) ( NNS shares ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( CD 1.125 ) ) ) ( ADVP ( RB up ) ( NP ( CD 12.5 ) ( NNS cents ) ) ) ) )

In New York Stock Exchange Composite trading Integrated shares closed at 1.125 up 12.5 cents


( S ( NP-SBJ ( NNP A.H. ) ( NNP Belo ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ its ) ( JJ net ) ( NN income ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( NP ( NP ( QP ( CD 3.1 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 15 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD four ) ( NNS times ) ) ( PRP$ its ) ( NN profit ) ) ( PP ( IN of ) ( NP ( NP ( CD 663,000 ) ) ( CC or ) ( NP ( NP ( CD three ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ) ) ) ) )

A.H. Belo Corp. said its net income was 3.1 million or 15 cents a share in the third quarter more than four times its profit of 663,000 or three cents a share last year


( SINV ( VP-TPC-2 ( VBN Included ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNS results ) ) ) ) ( VP ( VBD was ) ) ( NP-SBJ ( NP ( DT an ) ( NN adjustment ) ) ( PP ( TO to ) ( NP ( NP ( NP ( DT the ) ( JJ Dallas-based ) ( NN company ) ( POS 's ) ) ( NN tax ) ( NN rate ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD reduced ) ( NP ( JJ net ) ( NN income ) ) ( PP-EXT ( IN by ) ( NP ( NP ( NP ( QP ( RB about ) ( CD 10 ) ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( CC or ) ( NP ( QP ( RB approximately ) ( CD 2 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) )

Included in the results was an adjustment to the Dallas-based company 's tax rate that reduced net income by about 10 cents a share or approximately 2 million


( S ( NP-SBJ ( NNP Belo ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD increased ) ( NP ( PRP$ its ) ( JJ effective ) ( NN tax ) ( NN rate ) ) ( PP-DIR ( TO to ) ( NP ( CD 52 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 47 ) ( NN % ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB account ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ potential ) ( NNS liabilities ) ) ( VP ( VBN related ) ( PP-CLR ( TO to ) ( NP ( NP ( DT an ) ( NNP Internal ) ( NNP Revenue ) ( NNP Service ) ( NN investigation ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN tax ) ( NNS returns ) ) ) ) ) ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNS years ) ) ( NP ( NP ( CD 1984 ) ) ( PP ( IN through ) ( NP ( CD 1988 ) ) ) ) ) ) ) ) ) ) ) ) ) )

Belo said it increased its effective tax rate to 52 % from 47 % to account for potential liabilities related to an Internal Revenue Service investigation of its tax returns for the years 1984 through 1988


( S ( NP-SBJ ( DT The ) ( NN newspaper ) ( CC and ) ( NN television ) ( NN owner ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( DT the ) ( NN tax ) ( NN adjustment ) ) ( VP ( TO to ) ( VP ( VB reduce ) ( NP ( NP ( PRP$ its ) ( JJ net ) ( NN income ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ full ) ( NN year ) ) ) ) ( PP-EXT ( IN by ) ( NP ( NP ( NP ( CD 14 ) ( NNS cents ) ) ( CC or ) ( NP ( QP ( RB approximately ) ( CD 2.8 ) ( CD million ) ) ) ) ) ) ( PP ( VBN based ) ( PP ( IN on ) ( NP ( NP ( PRP$ its ) ( QP ( CD 20.2 ) ( CD million ) ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) ) ) ) ) ) )

The newspaper and television owner said it expects the tax adjustment to reduce its net income for the full year by 14 cents or approximately 2.8 million based on its 20.2 million shares outstanding


( S ( PP ( IN For ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( NP-SBJ ( NNP Belo ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ its ) ( NN revenue ) ) ( VP ( VBD increased ) ( NP-EXT ( CD 11 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 101.5 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 91.2 ) ( CD million ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ) ) ) )

For the third quarter Belo said its revenue increased 11 % to 101.5 million from 91.2 million last year


( S ( PP ( IN For ) ( NP ( DT the ) ( CD nine ) ( NNS months ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD had ) ( NP ( NP ( JJ net ) ( NN income ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 15.1 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 74 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( ADVP ( RB up ) ( NP ( CD 98 ) ( NN % ) ) ( PP ( IN from ) ( NP ( NP ( QP ( CD 7.6 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 38 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ) ) )

For the nine months the company had net income of 15.1 million or 74 cents a share up 98 % from 7.6 million or 38 cents a share last year


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD grew ) ( NP-EXT ( QP ( RB almost ) ( CD 8 ) ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 301.9 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 279.8 ) ( CD million ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) )

Revenue grew almost 8 % to 301.9 million from 279.8 million last year


( S ( NP-SBJ ( NNP American ) ( NNP Telephone ) ( CC & ) ( NNP Telegraph ) ( NNP Co. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD will ) ( VP ( VB spend ) ( NP ( QP ( CD 20 ) ( CD million ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB build ) ( NP ( NP ( DT a ) ( NN factory ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Guadalajara ) ) ( NP ( NNP Mexico ) ) ) ) ( SBAR-PRP ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( NN telephone ) ( NN answering ) ( NNS machines ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

American Telephone & Telegraph Co. said it will spend 20 million to build a factory in Guadalajara Mexico to make telephone answering machines


( S ( NP-SBJ ( NP ( NN Construction ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ 265,000-square-foot ) ( NN facility ) ) ) ) ( VP ( MD will ) ( VP ( VB begin ) ( NP-TMP ( JJ next ) ( NN year ) ) ( SBAR-ADV ( IN with ) ( S ( NP-SBJ-1 ( NN production ) ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB start ) ( PP-TMP ( IN in ) ( NP ( JJ late ) ( CD 1991 ) ) ) ) ) ) ) ) ) ) ) )

Construction of the 265,000-square-foot facility will begin next year with production expected to start in late 1991


( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( ADJP-PRD ( RB fully ) ( JJ operational ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NNP Guadalajara ) ( NN factory ) ) ( VP ( MD will ) ( VP ( VP ( VB employ ) ( NP ( QP ( RB about ) ( CD 1,500 ) ) ( NNS workers ) ) ) ( CC and ) ( VP ( VB have ) ( NP ( NP ( JJ annual ) ( NN operating ) ( NNS expenses ) ) ( PP ( IN of ) ( NP ( QP ( CD 5 ) ( CD million ) ( TO to ) ( CD 6 ) ( CD million ) ) ) ) ) ) ) ) )

When fully operational the Guadalajara factory will employ about 1,500 workers and have annual operating expenses of 5 million to 6 million


( S ( NP-SBJ ( DT An ) ( NNP AT&T ) ( NN representative ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Guadalajara ) ( NN factory ) ) ( VP ( MD will ) ( VP ( VB make ) ( NP ( NP ( DT a ) ( JJ full ) ( NN line ) ) ( PP ( IN of ) ( NP ( NN answering ) ( NNS machines ) ) ) ) ) ) ) ) ) )

An AT&T representative said that the Guadalajara factory will make a full line of answering machines


( S ( NP-SBJ ( NNP AT&T ) ) ( ADVP ( RB already ) ) ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( NN factory ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Matamoros ) ) ( NP ( NNP Mexico ) ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( JJ electrical ) ( NNS devices ) ) ) ) ) ) ) ) )

AT&T already has a factory in Matamoros Mexico to make electrical devices


( S ( NP-SBJ ( PRP It ) ) ( ADVP ( RB also ) ) ( VP ( VBZ purchases ) ( NP ( NN data ) ( NNS systems ) ( NNS products ) ) ( PP-CLR ( IN from ) ( NP ( NP ( DT a ) ( NN manufacturer ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP Monterrey ) ) ) ) ) ) ) )

It also purchases data systems products from a manufacturer based in Monterrey


( SQ ( VBP Are ) ( NP-SBJ ( NNS consumers ) ) ( PP-PRD ( ADVP ( RB too ) ( RB deep ) ) ( IN in ) ( NP ( NN hock ) ) ) )

Are consumers too deep in hock


( S ( S ( NP-SBJ ( NP ( DT A ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NNS observers ) ) ) ) ( VP ( VBP think ) ( ADVP ( RB so ) ) ) ) ( CC and ) ( S ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP 're ) ( ADJP-PRD ( JJ right ) ) ) ) ) ( NP-SBJ-1 ( NP ( DT the ) ( JJ whole ) ( NN economy ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( NP ( NP ( DT the ) ( NNS spendthrifts ) ) ( PP-LOC ( IN among ) ( NP ( PRP us ) ) ) ) ) ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN hurt ) ) ) ) ) )

A lot of observers think so and if they 're right the whole economy as well as the spendthrifts among us could be hurt


( S ( NP-SBJ ( NP ( DT A ) ( JJ sudden ) ( JJ forced ) ( NN cutback ) ) ( PP ( IN by ) ( NP ( NP ( NNS consumers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( ADVP ( RB normally ) ) ( VP ( VBP account ) ( PP-CLR ( IN for ) ( NP ( NP ( QP ( RB about ) ( NNS two-thirds ) ) ) ( PP ( IN of ) ( NP ( JJ economic ) ( NN activity ) ) ) ) ) ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB damp ) ( NP ( DT the ) ( NN economy ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT a ) ( NN time ) ) ( SBAR ( WHADVP-2 ( WRB when ) ) ( S ( S ( NP-SBJ ( JJ plant-and-equipment ) ( NN spending ) ) ( VP ( VBZ is ) ( VP ( VBG slowing ) ) ) ) ( CC and ) ( S ( NP-SBJ ( JJ deficit-racked ) ( NNS governments ) ) ( VP ( MD ca ) ( RB n't ) ( ADVP ( RB readily ) ) ( VP ( VB take ) ( PRT ( RP up ) ) ( NP ( DT the ) ( NN slack ) ) ) ) ) ) ) ) ) ) ) )

A sudden forced cutback by consumers who normally account for about two-thirds of economic activity would damp the economy at a time when plant-and-equipment spending is slowing and deficit-racked governments ca n't readily take up the slack


( S ( CC And ) ( NP-SBJ ( NP ( DT another ) ( NN wave ) ) ( PP ( IN of ) ( NP ( JJ bad ) ( NNS loans ) ) ) ) ( VP ( MD would ) ( ADVP ( RB further ) ) ( VP ( VB batter ) ( NP ( JJ many ) ( JJ already-shaky ) ( NN lending ) ( NNS institutions ) ) ) ) )

And another wave of bad loans would further batter many already-shaky lending institutions


( S ( NP-SBJ ( DT The ) ( NNS worriers ) ) ( VP ( VBP cite ) ( NP ( DT some ) ( JJ worrisome ) ( NNS trends ) ) ) )

The worriers cite some worrisome trends


( S ( PP-TMP ( IN During ) ( NP ( DT the ) ( ADJP ( RB almost ) ( JJ seven-year-old ) ) ( JJ economic ) ( NN expansion ) ) ) ( S ( NP-SBJ ( NP ( JJ inflation-adjusted ) ( JJ gross ) ( JJ national ) ( NN product ) ) ( NP ( JJ disposable ) ( JJ personal ) ( NN income ) ) ( CC and ) ( NP ( JJ personal ) ( NN consumption ) ( NNS expenditures ) ) ) ( VP ( VBP have ) ( VP ( VBN risen ) ( NP-EXT ( CD 30 ) ( NN % ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( JJ inflation-adjusted ) ( NN consumer ) ( NN installment ) ( NN credit ) ) ( VP ( VBZ has ) ( VP ( VBN surged ) ( NP-EXT ( CD 66 ) ( NN % ) ) ) ) ) )

During the almost seven-year-old economic expansion inflation-adjusted gross national product disposable personal income and personal consumption expenditures have risen 30 % but inflation-adjusted consumer installment credit has surged 66 %


( S ( CC And ) ( NP-SBJ ( NP ( DT the ) ( NN ratio ) ) ( PP ( IN of ) ( NP ( NP ( JJ installment ) ( NN debt ) ) ( PP ( TO to ) ( NP ( NP ( JJ disposable ) ( JJ personal ) ( NN income ) ) ( NP ( NP ( JJ personal ) ( NN income ) ) ( PP ( IN after ) ( NP ( NNS taxes ) ) ) ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN hit ) ( NP ( NP ( DT a ) ( NN high ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 18 ) ( CD 1\/2 ) ) ( NN % ) ) ) ) ) ) )

And the ratio of installment debt to disposable personal income personal income after taxes has hit a high of about 18 1\/2 %


( S ( ADVP ( RB However ) ) ( NP-SBJ-1 ( DT these ) ( NNS figures ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB seem ) ( S ( VP ( TO to ) ( VP ( VB worry ) ( NP ( NP ( NNP Thomas ) ( NN A. ) ( NNP Durkin ) ) ( NP ( NP ( DT an ) ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NNP Federal ) ( NNP Reserve ) ( NNP Board ) ) ) ) ) ) ) ) ) ) )

However these figures do n't seem to worry Thomas A. Durkin an economist at the Federal Reserve Board


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT a ) ( NN paper ) ) ( VP ( VBN presented ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( JJ recent ) ( JJ annual ) ( NN meeting ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP National ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNP Business ) ( NNP Economists ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP San ) ( NNP Francisco ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Durkin ) ) ( VP ( NNS comments ) ( SBAR ( IN that ) ( S ( S ( NP-SBJ ( JJ installment ) ( NN credit ) ) ( ADVP-TMP ( RB always ) ) ( VP ( VBZ grows ) ( ADVP-MNR ( RB rapidly ) ) ( PP-TMP ( IN in ) ( NP ( JJ cyclical ) ( NNS advances ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NN growth ) ) ( PP-TMP ( IN in ) ( NP ( DT this ) ( NN cycle ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB very ) ( JJ typical ) ( PP ( IN of ) ( NP ( JJR earlier ) ( NNS experiences ) ) ) ) ) ) ) ) ) )

In a paper presented at the recent annual meeting of the National Association of Business Economists in San Francisco Mr. Durkin comments that installment credit always grows rapidly in cyclical advances and growth in this cycle is very typical of earlier experiences


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ adds ) ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB now ) ) ( VP ( VBG witnessing ) ( NP ( NP ( DT a ) ( NN slowdown ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NN history ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( NN guide ) ) ) ) ) ( VP ( MD could ) ( VP ( VB persist ) ( PP-TMP ( IN for ) ( NP ( DT a ) ( NN while ) ) ) ) ) ) ) ) ) ) ) ) )

He adds We are now witnessing a slowdown which if history is a guide could persist for a while


( FRAG ( CC But ) ( WP what ) ( IN about ) ( NP ( DT the ) ( NN debt ) ( NN burden ) ) )

But what about the debt burden


( S ( NP-SBJ ( NNP Mr. ) ( NNP Durkin ) ) ( VP ( VBZ doubts ) ( SBAR ( IN that ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT some ) ( JJ magic ) ( NN level ) ) ( SBAR ( WHPP-1 ( IN at ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NP ( DT the ) ( NN ratio ) ) ( PP ( IN of ) ( NP ( NN installment ) ( NN debt ) ) ) ( PP ( TO to ) ( NP ( JJ disposable ) ( NN income ) ) ) ) ( VP ( VBZ indicates ) ( NP ( JJ economic ) ( NNS problems ) ) ) ) ) ) ) ) ) ) )

Mr. Durkin doubts that there is some magic level at which the ratio of installment debt to disposable income indicates economic problems


( S-1 ( CC And ) ( ADVP ( RBR more ) ( RB importantly ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN debt ) ( NN burden ) ) ( VP ( VBN measured ) ( NP-MNR ( JJ other ) ( NNS ways ) ) ) ) ( VP ( VBZ is ) ( RB not ) ( ADVP ( RB really ) ) ( PP-LOC-PRD ( IN in ) ( NP ( JJ uncharted ) ( NNS waters ) ) ) ) )

And more importantly he says the debt burden measured other ways is not really in uncharted waters


( S ( NP-SBJ ( DT The ) ( NN chart ) ( RB below ) ) ( VP ( NNS shows ) ( FRAG ( WHADVP ( WRB why ) ) ) ( PRN ( S ( VP ( VB see ) ( NP ( NP ( VBG accompanying ) ( NN illustration ) ) ( NP ( NP ( NNP WSJ ) ) ( NP-TMP ( NNP Oct. ) ( CD 23 ) ( CD 1989 ) ) ) ) ) ) ) ) )

The chart below shows why see accompanying illustration WSJ Oct. 23 1989


( S ( S ( NP-SBJ ( NP ( DT The ) ( NN ratio ) ) ( PP ( IN of ) ( NP ( NN consumer ) ( NN installment ) ( NN credit ) ) ) ( PP ( TO to ) ( NP ( JJ disposable ) ( NN income ) ) ) ) ( PP ( IN though ) ( ADVP ( RB up ) ( NP ( DT a ) ( NN bit ) ) ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN climbed ) ( ADVP-MNR ( RB steeply ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( NP ( JJ such ) ( NN debt ) ) ( PP ( IN as ) ( NP ( NP ( DT a ) ( NN percent ) ) ( PP ( IN of ) ( NP ( NN household ) ( NNS assets ) ) ) ) ) ) ( VP ( VBZ is ) ( ADVP-EXT ( RB little ) ) ( VP ( VBN changed ) ) ) ) )

The ratio of consumer installment credit to disposable income though up a bit has n't climbed steeply and such debt as a percent of household assets is little changed


( S ( S-TPC-1 ( ADVP ( RB Moreover ) ) ( NP-SBJ ( NP ( DT the ) ( NN burden ) ) ( PP ( IN of ) ( NP ( NP ( NN consumer ) ( NN credit ) ( NNS payments ) ) ( ADJP ( JJ relative ) ( PP ( TO to ) ( NP ( JJ disposable ) ( NN income ) ) ) ) ) ) ) ( VP ( MD may ) ( VP ( VB be ) ( ADJP-PRD ( ADJP ( JJR lower ) ( PP-TMP ( IN in ) ( NP ( DT this ) ( NN cycle ) ) ) ) ( PP ( IN than ) ( ADVP-TMP ( RBR earlier ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Durkin ) ) ( VP ( VBZ says ) ) )

Moreover the burden of consumer credit payments relative to disposable income may be lower in this cycle than earlier Mr. Durkin says


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ notes ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT some ) ( JJ revolving ) ( NN credit-card ) ( NN credit ) ) ( VP ( VBZ is ) ( ADVP ( RB actually ) ) ( NP-PRD ( NP ( NN convenience ) ( NN credit ) ) ( VP ( VBG being ) ( VP ( VBN used ) ( PP-CLR ( ADVP ( RB simply ) ) ( IN as ) ( NP ( NP ( NP ( DT a ) ( JJ handy ) ( NN way ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG paying ) ( NP ( NNS bills ) ) ) ) ) ) ( CONJP ( RB rather ) ( IN than ) ) ( NP ( NP ( DT a ) ( JJ handy ) ( NN way ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG borrowing ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

He notes that some revolving credit-card credit is actually convenience credit being used simply as a handy way of paying bills rather than a handy way of borrowing


( S-1 ( PP ( IN In ) ( NP ( NN addition ) ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) ) ) ( NP-SBJ ( NP ( JJR longer ) ( NNS maturities ) ) ( PP ( IN on ) ( NP ( NP ( NN automobile ) ( CC and ) ( JJ other ) ( NNS forms ) ) ( PP ( IN of ) ( NP ( NN installment ) ( NN credit ) ) ) ) ) ) ( VP ( VBP boost ) ( NP ( NP ( DT the ) ( NN stock ) ) ( PP ( IN of ) ( NP ( NN debt ) ) ) ) ( ADVP-MNR ( RBR faster ) ( PP ( IN than ) ( NP ( NP ( NP ( DT the ) ( NN flow ) ) ( PP ( IN of ) ( NP ( NNS repayments ) ) ) ) ( CC and ) ( NP ( DT the ) ( JJ accompanying ) ( NN payment ) ( NN burden ) ) ) ) ) ) )

In addition he says longer maturities on automobile and other forms of installment credit boost the stock of debt faster than the flow of repayments and the accompanying payment burden


( S-1 ( CC And ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VB consider ) ( NP ( NP ( DT the ) ( VBG changing ) ( NN distribution ) ) ( PP ( IN of ) ( NP ( NN credit ) ) ) ) ) ) ) ( PRN ( S ( NP-SBJ ( NNP Mr. ) ( NNP Durkin ) ) ( VP ( VBZ says ) ) ) ) ( NP-SBJ ( NP ( JJ much ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN increase ) ) ( PP ( IN in ) ( NP ( NN debt ) ) ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS years ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ due ) ( PP ( TO to ) ( NP ( NP ( VBG increasing ) ( NN credit ) ( NN use ) ) ( PP ( IN by ) ( NP ( NP ( JJ higher-income ) ( NNS families ) ) ( PRN ( S ( NP-SBJ ( DT that ) ) ( VP ( VBZ is ) ) ) ) ( NP ( NP ( DT those ) ) ( ADJP ( RB probably ) ( RB best ) ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB handle ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) ) ) )

And if you consider the changing distribution of credit Mr. Durkin says much of the increase in debt in recent years is due to increasing credit use by higher-income families that is those probably best able to handle it


( S ( S-ADV ( VP ( VBG Citing ) ( NP ( NP ( NNS figures ) ) ( PP ( IN on ) ( NP ( JJ home-equity ) ( NNS loans ) ) ) ) ) ) ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBZ notes ) ( SBAR ( IN that ) ( S ( S ( NP-SBJ ( NP ( CD 11 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNS homeowners ) ) ) ) ( VP ( VBD had ) ( NP ( JJ home-equity ) ( NN credit ) ( NNS accounts ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT the ) ( NN proportion ) ) ( VP ( VBZ rises ) ( PP-DIR ( TO to ) ( NP ( NP ( NP ( CD 16 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNS homeowners ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( ADJP ( QP ( CD 45,000-$60,000 ) ) ) ( NN income ) ( NN range ) ) ) ) ) ) ( CC and ) ( NP ( NP ( CD 23 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNS homeowners ) ) ( PP ( IN with ) ( NP ( NP ( NN income ) ) ( PP ( IN above ) ( NP ( CD 60,000 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Citing figures on home-equity loans he notes that 11 % of homeowners had home-equity credit accounts but the proportion rises to 16 % of homeowners in the 45,000-$60,000 income range and 23 % of homeowners with income above 60,000


( S ( CC And ) ( NP-SBJ-1 ( JJ much ) ( JJ home-equity ) ( NN credit ) ) ( VP ( VBZ is ) ( VP ( VBN used ) ( ADVP-MNR ( RB conservatively ) ) ) ) )

And much home-equity credit is used conservatively


( S ( S-TPC-2 ( NP-SBJ ( DT The ) ( ADJP ( RBS most ) ( JJ frequent ) ) ( NN use ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN home ) ( NN improvement ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( ADVP ( RB presumably ) ) ( VP ( VBZ improves ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN property ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Durkin ) ) ( VP ( VBZ says ) ) )

The most frequent use is home improvement which presumably improves the value of the property Mr. Durkin says


( S ( ADVP ( RB So ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( RB n't ) ( ADJP-PRD ( JJ surprising ) ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ ( NP ( JJ consumer-credit ) ( NNS delinquencies ) ) ( PP ( IN at ) ( NP ( NNS banks ) ) ) ) ( VP ( VBP remain ) ( PRN ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( DT the ) ( NN chart ) ) ( VP ( VBZ shows ) ) ) ) ) ( PP-LOC-CLR ( ADVP ( RB reassuringly ) ) ( IN below ) ( NP ( DT some ) ( JJR earlier ) ( NNS highs ) ) ) ( PRN ( S ( VP ( VB see ) ( NP ( NP ( VBG accompanying ) ( NN illustration ) ) ( NP ( NP ( NNP WSJ ) ) ( NP-TMP ( NNP Oct. ) ( CD 23 ) ( CD 1989 ) ) ) ) ) ) ) ) ) ) ) )

So it is n't surprising that consumer-credit delinquencies at banks remain as the chart shows reassuringly below some earlier highs see accompanying illustration WSJ Oct. 23 1989


( S ( S ( NP-SBJ ( DT A ) ( JJ severe ) ( NN recession ) ) ( VP ( MD could ) ( PP ( IN of ) ( NP ( NN course ) ) ) ( VP ( VB raise ) ( NP ( NN delinquency ) ( NNS rates ) ) ) ) ) ( CC but ) ( S ( ADVP-TMP ( RB so ) ( RB far ) ) ( NP-SBJ-1 ( NP ( DT the ) ( JJ current ) ( NNS levels ) ) ( PP ( IN of ) ( NP ( NN consumer ) ( NN debt ) ) ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB seem ) ( S ( VP ( TO to ) ( VP ( VB loom ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( JJ major ) ( NN threat ) ) ) ) ) ) ) ) ) )

A severe recession could of course raise delinquency rates but so far the current levels of consumer debt do n't seem to loom as a major threat


( S ( PP ( IN In ) ( NP ( NN fact ) ) ) ( NP-SBJ ( NP ( NP ( DT the ) ( JJ current ) ( NN weakness ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NN auto ) ( NN buying ) ) ( CC and ) ( NP ( NN department-store ) ( NNS sales ) ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( JJ gradual ) ( NN upturn ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN household ) ( NN saving ) ( NN rate ) ) ) ) ) ( VP ( VBP suggest ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS consumers ) ) ( ADJP ( JJ conservative ) ( PP ( IN as ) ( ADVP-TMP ( RB ever ) ) ) ) ) ( VP ( VBP are ) ( ADVP ( RB already ) ) ( VP ( VBG clutching ) ( NP ( PRP$ their ) ( NNS purses ) ) ( ADVP-MNR ( NP ( DT a ) ( NN bit ) ) ( RBR more ) ( RB tightly ) ) ) ) ) ) ) )

In fact the current weakness in auto buying and department-store sales and the gradual upturn in the household saving rate suggest that consumers conservative as ever are already clutching their purses a bit more tightly


( S ( PP-TMP ( IN In ) ( NP ( NNP July ) ) ) ( NP-SBJ ( NP ( NN consumer ) ( NN installment ) ( NN credit ) ) ( ADJP ( JJ outstanding ) ) ) ( VP ( VBD fell ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ first ) ( NN time ) ) ( PP-TMP ( IN since ) ( NP ( NNP January ) ( CD 1987 ) ) ) ) ) ) )

In July consumer installment credit outstanding fell for the first time since January 1987


( S ( S-TPC-3 ( NP-SBJ-1 ( NNS Consumers ) ) ( VP ( VBP appear ) ( ADJP-PRD ( JJ unwilling ) ( S ( VP ( TO to ) ( VP ( VB add ) ( PP-CLR ( TO to ) ( NP ( PRP$ their ) ( NN leverage ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB support ) ( NP ( PRP$ their ) ( NN spending ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Bruce ) ( NNP Steinberg ) ) ( NP ( DT a ) ( NNP Merrill ) ( NNP Lynch ) ( NN economist ) ) ) ( VP ( VBZ says ) ) )

Consumers appear unwilling to add to their leverage to support their spending Bruce Steinberg a Merrill Lynch economist says


( S ( PP ( IN As ) ( NP ( DT a ) ( NN result ) ) ) ( NP-SBJ-1 ( NN household ) ( NN debt ) ) ( VP ( VBZ appears ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBG stabilizing ) ( PP-CLR ( IN at ) ( NP ( NP ( QP ( IN around ) ( CD 63 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP GNP ) ) ) ) ) ) ) ) ) ) )

As a result household debt appears to be stabilizing at around 63 % of GNP


( S ( NP-SBJ ( NNS Consumers ) ) ( S-ADV ( NP-SBJ ( NN credit ) ( NNS cards ) ) ( PP-LOC-PRD ( IN in ) ( NP ( NN hand ) ) ) ) ( VP ( VBP are ) ( RB n't ) ( VP ( VP ( VBG running ) ( ADVP-MNR ( RB amok ) ) ( PP-DIR ( IN through ) ( NP ( DT the ) ( NN shopping ) ( NNS malls ) ) ) ) ( CC or ) ( VP ( VBG putting ) ( NP ( DT the ) ( NN economy ) ) ( PP-CLR ( IN at ) ( NP ( DT any ) ( JJ great ) ( NN risk ) ) ) ) ) ) )

Consumers credit cards in hand are n't running amok through the shopping malls or putting the economy at any great risk


( S ( NP-SBJ ( NP ( DT The ) ( NN bond ) ( NN market ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( ADVP-TMP ( RB sometimes ) ) ( VP ( VBZ thrives ) ( PP-CLR ( IN on ) ( NP ( JJ bad ) ( NN news ) ) ) ) ) ) ) ( VP ( VBD cheered ) ( NP ( NP ( NP ( NN yesterday ) ( POS 's ) ) ( NN stock ) ( NN market ) ( NNS sell-off ) ) ( CC and ) ( NP ( NNS perceptions ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( VBZ is ) ( VP ( VBG growing ) ( ADJP-PRD ( JJR weaker ) ) ) ) ) ) ) ) ) )

The bond market which sometimes thrives on bad news cheered yesterday 's stock market sell-off and perceptions that the economy is growing weaker


( S ( ADVP-TMP ( RB Early ) ( PP ( IN in ) ( NP ( DT the ) ( NN day ) ) ) ) ( NP-SBJ ( NNS bonds ) ) ( VP ( VBD rose ) ( ADVP-EXT ( RB modestly ) ) ( PP ( IN on ) ( NP ( NP ( NNS economists ) ( POS ' ) ) ( NNS forecasts ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NP ( DT this ) ( NN week ) ( POS 's ) ) ( NN slate ) ) ( PP ( IN of ) ( NP ( JJ economic ) ( NNS data ) ) ) ) ( VP ( MD will ) ( VP ( VB portray ) ( NP ( NP ( DT an ) ( NN economy ) ) ( VP ( VBN headed ) ( PP-CLR ( IN for ) ( NP ( NN trouble ) ) ) ) ) ) ) ) ) ) ) ) )

Early in the day bonds rose modestly on economists ' forecasts that this week 's slate of economic data will portray an economy headed for trouble


( S ( NP-SBJ ( JJ Such ) ( NN news ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ good ) ( PP ( IN for ) ( NP ( NNS bonds ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( JJ economic ) ( NN weakness ) ) ( ADVP-TMP ( RB sometimes ) ) ( VP ( VBZ causes ) ( S ( NP-SBJ ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ( VP ( TO to ) ( VP ( VB lower ) ( NP ( NN interest ) ( NNS rates ) ) ( PP ( IN in ) ( NP ( DT an ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VP ( VB stimulate ) ( NP ( DT the ) ( NN economy ) ) ) ( CC and ) ( VP ( VB stave ) ( PRT ( RP off ) ) ( NP ( DT a ) ( NN recession ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Such news is good for bonds because economic weakness sometimes causes the Federal Reserve to lower interest rates in an effort to stimulate the economy and stave off a recession


( S ( PP ( IN For ) ( NP ( NN example ) ) ) ( NP-TMP ( NN today ) ) ( NP-SBJ-1 ( NP ( DT the ) ( NNP Department ) ) ( PP ( IN of ) ( NP ( NNP Commerce ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN scheduled ) ( S ( VP ( TO to ) ( VP ( VB release ) ( NP ( DT the ) ( NNP September ) ( JJ durable ) ( NNS goods ) ( NN report ) ) ) ) ) ) ) )

For example today the Department of Commerce is scheduled to release the September durable goods report


( S ( NP-SBJ ( NP ( DT The ) ( NN consensus ) ( NN forecast ) ) ( PP ( IN of ) ( NP ( NP ( CD 14 ) ( NNS economists ) ) ( VP ( VBN surveyed ) ( PP ( IN by ) ( NP-LGS ( NNP Dow ) ( NNP Jones ) ( NNP Capital ) ( NNP Markets ) ( NNP Report ) ) ) ) ) ) ) ( VP ( VBZ is ) ( PP-PRD ( IN for ) ( NP ( NP ( DT a ) ( ADJP ( CD 1.2 ) ( NN % ) ) ( NN drop ) ) ( PP ( IN in ) ( NP ( NNP September ) ( NNS orders ) ) ) ) ) ) )

The consensus forecast of 14 economists surveyed by Dow Jones Capital Markets Report is for a 1.2 % drop in September orders


( S ( NP-SBJ ( DT That ) ) ( VP ( MD would ) ( VP ( VB follow ) ( NP ( NP ( DT a ) ( ADJP ( CD 3.9 ) ( NN % ) ) ( NN advance ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ) ) ) )

That would follow a 3.9 % advance in August


( S ( NP-SBJ ( NNS Bonds ) ) ( VP ( VBD received ) ( NP ( DT a ) ( JJR bigger ) ( NN boost ) ) ( ADVP-TMP ( RB later ) ( PP ( IN in ) ( NP ( DT the ) ( NN day ) ) ) ) ( SBAR-TMP ( WHADVP ( WRB when ) ) ( S ( NP-SBJ ( NN stock ) ( NNS prices ) ) ( VP ( VBD moved ) ( ADVP ( RB broadly ) ( JJR lower ) ) ) ) ) ) )

Bonds received a bigger boost later in the day when stock prices moved broadly lower


( S ( NP-SBJ ( DT The ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 26.23 ) ( NNS points ) ) ( PP-DIR ( TO to ) ( NP ( CD 2662.91 ) ) ) ) )

The Dow Jones Industrial Average fell 26.23 points to 2662.91


( SINV ( S-TPC-1 ( NP-SBJ ( NN Bond ) ( NNS investors ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG watching ) ( NP ( NNS stocks ) ) ( ADVP-MNR ( RB closely ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Joel ) ( NNP Marver ) ) ( NP ( NP ( JJ chief ) ( NN fixed-income ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP Technical ) ( NNP Data ) ( NNP Global ) ( NNP Markets ) ( NNP Group ) ) ) ) ) )

Bond investors have been watching stocks closely said Joel Marver chief fixed-income analyst at Technical Data Global Markets Group


( S ( S-TPC-5 ( SBAR-TMP ( WHADVP-3 ( WRB When ) ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP get ) ( NP ( NP ( DT a ) ( JJ big ) ( NN sell-off ) ) ( PP ( IN in ) ( NP ( NNS equities ) ) ) ) ) ) ) ( NP-SBJ-4 ( NN money ) ) ( VP ( VBZ starts ) ( S ( VP ( TO to ) ( VP ( VB shift ) ( PP-CLR ( IN into ) ( NP ( NP ( NNS bonds ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBP are ) ( VP ( VBN considered ) ( S ( ADJP-PRD ( JJR safer ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

When you get a big sell-off in equities money starts to shift into bonds which are considered safer he said


( S ( NP-SBJ ( NP ( DT The ) ( NNP Treasury ) ( POS 's ) ) ( JJ benchmark ) ( JJ 30-year ) ( NN bond ) ) ( VP ( VBN ended ) ( ADVP-CLR ( ADVP ( NP ( QP ( RB about ) ( CD 1\/2 ) ) ( NN point ) ) ( JJR higher ) ) ( CC or ) ( ADVP ( RB up ) ( NP ( NP ( QP ( RB about ) ( CD 5 ) ) ) ( PP ( IN for ) ( NP ( NP ( DT each ) ( CD 1,000 ) ) ( NP ( NN face ) ( NN amount ) ) ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( DT the ) ( NN yield ) ) ( VP ( VBD slid ) ( PP-DIR ( TO to ) ( NP ( CD 7.93 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 7.98 ) ( NN % ) ) ( NP-TMP ( NNP Friday ) ) ) ) ) ) ) )

The Treasury 's benchmark 30-year bond ended about 1\/2 point higher or up about 5 for each 1,000 face amount while the yield slid to 7.93 % from 7.98 % Friday


( S ( NP-SBJ-1 ( NNS Municipals ) ) ( VP ( VBD ended ) ( S-CLR ( ADJP-PRD ( JJ mixed ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( ADJP ( JJ mortgage-backed ) ( CC and ) ( JJ investment-grade ) ) ( JJ corporate ) ( NNS bonds ) ) ( VP ( VBD rose ) ) ) ) ) )

Municipals ended mixed while mortgage-backed and investment-grade corporate bonds rose


( S ( NP-SBJ-1 ( NP ( NNS Prices ) ) ( PP ( IN of ) ( NP ( JJ high-yield ) ( JJ high-risk ) ( JJ corporate ) ( NNS securities ) ) ) ) ( VP ( VBD ended ) ( S-CLR ( ADJP-PRD ( JJ unchanged ) ) ) ) )

Prices of high-yield high-risk corporate securities ended unchanged


( S ( PP ( IN In ) ( NP ( NP ( JJR more ) ( NN evidence ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( VBG growing ) ( NN division ) ) ( PP ( IN between ) ( NP ( ADJP ( JJ good ) ( CC and ) ( JJ bad ) ) ( NN junk ) ( NNS bonds ) ) ) ) ) ) ) ( NP-SBJ-1 ( NP ( DT a ) ( ADJP ( QP ( CD 150 ) ( CD million ) ) ) ( NN issue ) ) ( PP ( IN by ) ( NP ( NNP Imo ) ( NNP Industries ) ( NNP Inc. ) ) ) ) ( VP ( VBD was ) ( VP ( VBN snapped ) ( PRT ( RP up ) ) ( PP ( IN by ) ( NP-LGS ( NNS investors ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( NP ( NNS underwriters ) ) ( PP ( IN for ) ( NP ( NP ( NNP Beatrice ) ( NNP Co. ) ( POS 's ) ) ( ADJP ( QP ( CD 350 ) ( CD million ) ) ) ( NN issue ) ) ) ) ( VP ( VBP are ) ( VP ( VBG considering ) ( S ( VP ( VBG restructuring ) ( NP ( DT the ) ( NN deal ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB attract ) ( NP ( NNS buyers ) ) ) ) ) ) ) ) ) ) ) ) ) )

In more evidence of the growing division between good and bad junk bonds a 150 million issue by Imo Industries Inc. was snapped up by investors while underwriters for Beatrice Co. 's 350 million issue are considering restructuring the deal to attract buyers


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( NNP Treasury ) ( NN market ) ) ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBP expect ) ( S ( NP-SBJ ( NN bond ) ( NNS prices ) ) ( VP ( TO to ) ( VP ( VB trade ) ( PP-CLR ( IN in ) ( NP ( JJ narrow ) ( NNS ranges ) ) ) ( NP-TMP ( DT this ) ( NN week ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ takes ) ( PRT ( RP in ) ) ( NP ( ADJP ( JJ positive ) ( CC and ) ( JJ negative ) ) ( NN news ) ) ) ) ) ) ) ) ) )

In the Treasury market analysts expect bond prices to trade in narrow ranges this week as the market takes in positive and negative news


( SINV ( S-TPC-2 ( PP ( IN On ) ( NP ( DT the ) ( JJ negative ) ( NN side ) ) ) ( NP-SBJ-1 ( DT the ) ( NN market ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN affected ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ constant ) ( NN supply ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT all ) ( NNS sectors ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP William ) ( NNP M. ) ( NNP Brachfeld ) ) ( NP ( NP ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NNP Daiwa ) ( NNP Securities ) ( NNP America ) ( NNP Inc ) ) ) ) ) )

On the negative side the market will be affected by constant supply in all sectors of the market said William M. Brachfeld economist at Daiwa Securities America Inc


( S ( PP ( IN On ) ( NP ( DT the ) ( JJ other ) ( NN hand ) ) ) ( NP-SBJ ( PRP we ) ) ( VP ( VBP have ) ( NP ( NP ( JJ economic ) ( NN news ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( RB relatively ) ( JJ positive ) ( PP ( IN for ) ( NP ( DT the ) ( NN bond ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ) )

On the other hand we have economic news that is expected to be relatively positive for the bond market


( S ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( MD will ) ( VP ( VB go ) ( ADVP-DIR ( RB back ) ( CC and ) ( RB forth ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( NN tilt ) ) ( PP ( IN toward ) ( NP ( ADJP ( RB slightly ) ( JJR lower ) ) ( NNS yields ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

We will go back and forth with a tilt toward slightly lower yields he said


( S ( NP-TMP ( NN Today ) ) ( NP-SBJ ( DT the ) ( NNP Treasury ) ) ( VP ( MD will ) ( VP ( VB sell ) ( NP ( NP ( QP ( CD 10 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( JJ new ) ( JJ two-year ) ( NNS notes ) ) ) ) ) ) )

Today the Treasury will sell 10 billion of new two-year notes


( S ( NP-TMP ( NN Tomorrow ) ) ( NP-SBJ ( NP ( NNP Resolution ) ( NNP Funding ) ( NNP Corp. ) ) ( NP ( NP ( DT a ) ( NN division ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ new ) ( NN government ) ( NN agency ) ) ( VP ( VBN created ) ( S-PRP ( VP ( TO to ) ( VP ( VB bail ) ( PRT ( RP out ) ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( JJ troubled ) ( NNS thrifts ) ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB hold ) ( NP ( NP ( PRP$ its ) ( JJ first ) ( NN bond ) ( NN auction ) ) ( SBAR ( WHPP-1 ( IN at ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB sell ) ( NP ( NP ( QP ( CD 4.5 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( JJ 30-year ) ( NNS bonds ) ) ) ) ) ) ) ) ) ) ) )

Tomorrow Resolution Funding Corp. a division of a new government agency created to bail out the nation 's troubled thrifts will hold its first bond auction at which it will sell 4.5 billion of 30-year bonds


( S ( ADVP-TMP ( RB So ) ( RB far ) ) ( NP-SBJ ( NP ( NN money ) ( NNS managers ) ) ( CC and ) ( NP ( JJ other ) ( NN bond ) ( NNS buyers ) ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN shown ) ( NP ( NP ( JJ much ) ( NN interest ) ) ( PP ( IN in ) ( NP ( DT the ) ( NNP Refcorp ) ( NNS bonds ) ) ) ) ) ) )

So far money managers and other bond buyers have n't shown much interest in the Refcorp bonds


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBP have ) ( NP ( NP ( JJ mixed ) ( NNS views ) ) ( PP ( IN about ) ( NP ( DT the ) ( JJ two-year ) ( NN note ) ( NN auction ) ) ) ) ) )

Analysts have mixed views about the two-year note auction


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( DT some ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN auction ) ) ( VP ( MD should ) ( VP ( VB proceed ) ( ADVP-MNR ( RB smoothly ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS others ) ) ( VP ( VBP contend ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NP ( NN yesterday ) ( POS 's ) ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 2.58 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( JJ asset-backed ) ( NNS securities ) ) ) ) ) ( PP ( IN by ) ( NP ( NNP Ford ) ( NNP Motor ) ( NNP Credit ) ( NNP Corp. ) ) ) ) ( VP ( MD may ) ( VP ( VB have ) ( VP ( VBN siphoned ) ( NP ( DT some ) ( JJ potential ) ( JJ institutional ) ( NNS buyers ) ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( NN note ) ( NN sale ) ) ) ) ) ) ) ) ) )

While some say the auction should proceed smoothly others contend that yesterday 's sale of 2.58 billion of asset-backed securities by Ford Motor Credit Corp. may have siphoned some potential institutional buyers from the government 's note sale


( S ( NP-SBJ ( NP ( DT The ) ( NN division ) ) ( PP ( IN of ) ( NP ( NN auto ) ( NN maker ) ( NNP Ford ) ( NNP Motor ) ( NNP Co. ) ) ) ) ( VP ( VBD made ) ( NP ( PRP$ its ) ( NN debut ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ asset-backed ) ( NNS securities ) ( NN market ) ) ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( JJ second-largest ) ( NN issue ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( JJ four-year ) ( NN history ) ) ) ) ) ) )

The division of auto maker Ford Motor Co. made its debut in the asset-backed securities market with the second-largest issue in the market 's four-year history


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD offered ) ( NP ( NP ( NNS securities ) ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( NN automobile ) ( NNS loans ) ) ) ) ) ( PP-MNR ( IN through ) ( NP ( NP ( DT an ) ( NN underwriting ) ( NN group ) ) ( VP ( VBN headed ) ( PP ( IN by ) ( NP-LGS ( NNP First ) ( NNP Boston ) ( NNP Corp ) ) ) ) ) ) ) )

The company offered securities backed by automobile loans through an underwriting group headed by First Boston Corp


( S ( NP-SBJ ( DT The ) ( NN issue ) ) ( VP ( VP ( VBZ yields ) ( NP ( CD 8.90 ) ( NN % ) ) ) ( CC and ) ( VP ( VBZ carries ) ( NP ( NP ( DT a ) ( NN guarantee ) ) ( VP ( VBG covering ) ( NP ( NP ( CD 9 ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN deal ) ) ) ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) )

The issue yields 8.90 % and carries a guarantee covering 9 % of the deal from the company


( S ( NP-SBJ ( NNP First ) ( NNP Boston ) ) ( VP ( VBD sweetened ) ( NP ( DT the ) ( NNS terms ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( JJ original ) ( NN yield ) ( NN estimate ) ) ) ( PP ( IN in ) ( NP ( DT an ) ( JJ apparent ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB place ) ( NP ( DT the ) ( JJ huge ) ( NN offering ) ) ) ) ) ) ) ) )

First Boston sweetened the terms from the original yield estimate in an apparent effort to place the huge offering


( S ( NP-SBJ-1 ( DT The ) ( NN issue ) ) ( VP ( VBD was ) ( VP ( VBN offered ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP-LOC ( NP ( QP ( RB nearly ) ( CD one ) ) ( NN percentage ) ( NN point ) ) ( IN above ) ( NP ( NP ( DT the ) ( NN yield ) ) ( PP ( IN on ) ( NP ( JJ two-year ) ( NNPS Treasurys ) ) ) ) ) ) ) ) ) )

The issue was offered at a yield nearly one percentage point above the yield on two-year Treasurys


( S ( NP-SBJ ( NP ( DT The ) ( JJ only ) ( JJ asset-backed ) ( NN deal ) ) ( ADJP ( JJR larger ) ( PP ( IN than ) ( NP ( NP ( NNP Ford ) ( POS 's ) ) ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( ADJP ( QP ( CD 4 ) ( CD billion ) ) ) ( NN offering ) ) ( PP ( IN by ) ( NP ( NNP General ) ( NNP Motors ) ( NNP Acceptance ) ( NNP Corp. ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1986 ) ) ) ) ) )

The only asset-backed deal larger than Ford 's was a 4 billion offering by General Motors Acceptance Corp. in 1986


( NP-HLN ( NNP Treasury ) ( NNS Securities ) )

Treasury Securities


( S ( NP-SBJ ( NNP Treasury ) ( NNS bonds ) ) ( VP ( VBD were ) ( ADJP-PRD ( NP ( QP ( CD 1\/8 ) ( TO to ) ( CD 1\/2 ) ) ( NN point ) ) ( JJR higher ) ) ( NP-TMP ( NN yesterday ) ) ( PP-LOC ( IN in ) ( NP ( JJ light ) ( NN trading ) ) ) ) )

Treasury bonds were 1\/8 to 1\/2 point higher yesterday in light trading


( S ( NP-SBJ ( DT The ) ( JJ benchmark ) ( JJ 30-year ) ( NN bond ) ) ( VP ( VBD ended ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN price ) ) ( PP ( IN of ) ( NP ( CD 102 ) ( CD 3\/32 ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( CD 101 ) ( CD 17\/32 ) ) ( NP-TMP ( NNP Friday ) ) ) ) ) ) ) )

The benchmark 30-year bond ended at a price of 102 3\/32 compared with 101 17\/32 Friday


( S ( NP-SBJ-1 ( DT The ) ( JJS latest ) ( JJ 10-year ) ( NNS notes ) ) ( VP ( VBD were ) ( VP ( VBN quoted ) ( ADVP-TMP ( RB late ) ) ( PP-CLR ( IN at ) ( NP ( CD 100 ) ( CD 17\/32 ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.90 ) ( NN % ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( FRAG ( NP ( CD 100 ) ( CD 3\/32 ) ) ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.97 ) ( NN % ) ) ) ) ) ) ) ) ) ) )

The latest 10-year notes were quoted late at 100 17\/32 to yield 7.90 % compared with 100 3\/32 to yield 7.97 %


( S ( NP-SBJ-1 ( DT The ) ( ADJP ( JJS latest ) ( JJ two-year ) ) ( NNS notes ) ) ( VP ( VBD were ) ( VP ( VBN quoted ) ( ADVP-TMP ( RB late ) ) ( PP-CLR ( IN at ) ( NP ( CD 100 ) ( CD 28\/32 ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.84 ) ( NN % ) ) ) ) ) ) ) )

The latest two-year notes were quoted late at 100 28\/32 to yield 7.84 %


( S ( NP-SBJ ( JJ Short-term ) ( NNS rates ) ) ( VP ( VBD rose ) ( NP-TMP ( NN yesterday ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( JJ weekly ) ( NNP Treasury ) ( NN bill ) ( NN auction ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( DT the ) ( JJ previous ) ( NN bill ) ( NN sale ) ) ) ) ) )

Short-term rates rose yesterday at the government 's weekly Treasury bill auction compared with the previous bill sale


( S ( NP-SBJ ( DT The ) ( NNP Treasury ) ) ( VP ( VBD sold ) ( NP ( NP ( CD 7.81 ) ( CD billion ) ) ( PP ( IN of ) ( NP ( JJ three-month ) ( NNS bills ) ) ) ) ( PP ( IN with ) ( NP ( NP ( NP ( DT an ) ( JJ average ) ( JJ discount ) ( NN rate ) ) ( PP ( IN of ) ( NP ( CD 7.52 ) ( NN % ) ) ) ) ( NP ( NP ( DT the ) ( JJS highest ) ) ( PP-TMP ( IN since ) ( NP ( NP ( DT the ) ( NN average ) ) ( PP ( IN of ) ( NP ( CD 7.63 ) ( NN % ) ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NN auction ) ) ( PP-TMP ( IN on ) ( NP ( NNP Oct. ) ( CD 10 ) ) ) ) ) ) ) ) ) ) ) )

The Treasury sold 7.81 billion of three-month bills with an average discount rate of 7.52 % the highest since the average of 7.63 % at the auction on Oct. 10


( S ( NP-SBJ-1 ( NP ( DT The ) ( QP ( CD 7.81 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( JJ six-month ) ( NNP Treasury ) ( NNS bills ) ) ) ) ( VP ( VBD were ) ( VP ( VBN sold ) ( PP ( IN with ) ( NP ( NP ( NP ( DT an ) ( JJ average ) ( JJ discount ) ( NN rate ) ) ( PP ( IN of ) ( NP ( CD 7.50 ) ( NN % ) ) ) ) ( NP ( NP ( DT the ) ( JJS highest ) ) ( PP-TMP ( IN since ) ( NP ( NP ( DT the ) ( NN average ) ) ( PP ( IN of ) ( NP ( CD 7.60 ) ( NN % ) ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NNP Oct. ) ( CD 10 ) ( NN auction ) ) ) ) ) ) ) ) ) ) )

The 7.81 billion of six-month Treasury bills were sold with an average discount rate of 7.50 % the highest since the average of 7.60 % at the Oct. 10 auction


( S ( NP-SBJ ( DT The ) ( NNS rates ) ) ( VP ( VBD were ) ( ADVP-PRD ( RB up ) ( PP ( IN from ) ( NP ( NP ( NP ( JJ last ) ( NN week ) ( POS 's ) ) ( NN auction ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD were ) ( NP-PRD ( NP ( CD 7.37 ) ( NN % ) ) ( CC and ) ( NP ( CD 7.42 ) ( NN % ) ) ) ( ADVP ( RB respectively ) ) ) ) ) ) ) ) ) )

The rates were up from last week 's auction when they were 7.37 % and 7.42 % respectively


( SINV ( ADVP-LOC-PRD-TPC-2 ( RB Here ) ) ( VP ( VBP are ) ) ( NP-SBJ ( NN auction ) ( NNS details ) ) )

Here are auction details


( S ( NP-SBJ-1 ( NNS Rates ) ) ( VP ( VBP are ) ( VP ( VBN determined ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN difference ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NN purchase ) ( NN price ) ) ( CC and ) ( NP ( NN face ) ( NN value ) ) ) ) ) ) ) ) )

Rates are determined by the difference between the purchase price and face value


( S ( ADVP ( RB Thus ) ) ( NP-SBJ ( JJR higher ) ( NN bidding ) ) ( VP ( VBZ narrows ) ( NP ( NP ( DT the ) ( NN investor ) ( POS 's ) ) ( NN return ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( JJR lower ) ( NN bidding ) ) ( VP ( VBZ widens ) ( NP ( PRP it ) ) ) ) ) ) )

Thus higher bidding narrows the investor 's return while lower bidding widens it


( S ( NP-SBJ-1 ( DT The ) ( NN percentage ) ( NNS rates ) ) ( VP ( VBP are ) ( VP ( VBN calculated ) ( PP-CLR ( IN on ) ( NP ( DT a ) ( JJ 360-day ) ( NN year ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( DT the ) ( JJ coupon-equivalent ) ( NN yield ) ) ( VP ( VBZ is ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( DT a ) ( JJ 365-day ) ( NN year ) ) ) ) ) ) ) ) ) )

The percentage rates are calculated on a 360-day year while the coupon-equivalent yield is based on a 365-day year


( S ( NP-SBJ-1 ( DT Both ) ( NNS issues ) ) ( VP ( VBP are ) ( VP ( VBN dated ) ( NP-TMP-CLR ( NNP Oct. ) ( CD 26 ) ) ) ) )

Both issues are dated Oct. 26