January 14, 1991

THE ECONOMY A war in the Persian Gulf may not create oil shortages in the U.S., oil company executives, Government officials and other experts say. But they caution that prices might surge if panic buying drains supplies from gas stations and product distributors. In addition, a war is expected to cut Saudi exports by more than a third, as oilfield workers flee and operations are closed. [ Page A1. ] Facing tough times, retailers are asking themselves whether they should play it safe or take chances with bold marketing and merchandising strategies. Industry leaders gather today for the National Retail Federation meeting. [ D1. ] Federal officials plan to offer purchasers in an auction next month financing for up to to 85 percent of the price of dozens of apartment buildings in Texas that the Government acquired in the savings industry bailout. [ D2. ] States from coast to coast are cutting spending and raising taxes as their economies deteriorate. [ A14. ] COMPANIES KPMG Peat Marwick plans to dismiss about 300 partners of the large accounting firm, or roughly one out of six. The move is further evidence of an industry contraction that has already forced several accounting firms to merge and driven two out of business. [ D1. ] Insilco, which makes Rolodex files, sought bankruptcy protection from its creditors. The company has $764 million in debt, including $530 million in high-interest "junk bonds." [ D1. ] A series of errors allowed an A.T.& T. employee to cut a vital cable by mistake on Jan. 4. The errors seriously delayed the restoration of long-distance service to New York City and surrounding areas. [ D1. ] THE MEDIA BUSINESS NBC is about to enter tough negotiations with the producers of its four highest-rated comedies at a time when it needs its established hit shows more than ever. At stake: whether the shows will remain on NBC next season, and at what cost. [ D1. ] Bookstores are crowded as never before with biographies and autobiographies filled with charges and countercharges, accusations and invectives, as publishers chase a growing market that promises rich rewards. [ D10. ] Newspaper prices are increasing across the country in a trend that has not been seen since the early 1980's, when prices jumped to their current levels. [ D10. ] Tony Schwartz, the advertising legend, is joining the peace corps. But this "peace corps" is the Media Peace Corps, a for-profit operation that will help corporations and foundations promote social changes. Randall Rothenberg: Adscene. [ D10. ] Life magazine may become a weekly publication again after Time Warner conducts some tests of potential readers. [ D10. ] A new marketing study is analyzing the buying habits of Asian-American consumers. Advertising. [ D11. ] INTERNATIONAL Poland's campaign to sell five big state-owned companies seems to have been a disappointment. Friday was the deadline for sale of stock in the companies, the first to be sold by the Government. And while the results are not yet complete, the public's enthusiasm for the stock seemed mixed at best. [ D1. ] The founder of the Saison Group plans to step down from active management of the large Japanese conglomerate and hand over authority to a collective leadership. [ D7. ] TODAY'S COLUMNS The stock of Glaxo Holdings has slipped in recent weeks as traders and analysts are asking whether the company can produce another best-seller like Zantac, its ulcer drug. Market Place. [ D8. ] The credit markets are nervously awaiting Tuesday's deadline for Iraq to withdraw from Kuwait. If war breaks out, analysts say, investors will probably put even more money into short-term instruments like Treasury bills and sell bonds. Credit Markets. [ D9. ]

To certain devotees, it became painfully clear in the last week that their Times Square is dead. At West 42d Street's oldest theater, the Victory, stagehands replaced the front three rows of seats -- the very seats where filmgoers had watched "Hot Saddle Tramp" and "One-Armed Sholin Temple Master" -- with a piazza where Romeo will stand below Juliet's balcony. Yes, Shakespeare is opening on 42d Street. The Bard is playing The Deuce, as the block west of Times Square is called by its regulars. The theaters there have been taken over by New York State's Urban Development Corporation, and the first new tenant on 42d Street is a "Romeo and Juliet" production under a director from the Royal Shakespeare Company.

The National Salvation Committee, a faceless group of Communist Party loyalists, imposed a series of repressive measures on Lithuania today after the Soviet Army, with tanks and machine guns, had seized power for the committee overnight. The committee ruled today in force but not in spirit, after a night of violence that left 13 people dead and more than 100 wounded by bullets or tank treads, according to official reports.

Coach Bill Parcells, who does not praise easily, called it one of the Giants' better games this year. Ron Erhardt, his offensive coordinator, called it the Giants' best game of the season. Maurice Carthon, his fullback, called it the best game the Giants had played in two or three years. Who can argue with any of them? In their first game of the National Football League playoffs, when the winners move closer to the Super Bowl and the losers go home, the Giants mangled the Chicago Bears today, 31-3.

The Insilco Corporation, a diversified company whose products include military equipment, Rolodex files and textbooks, filed today for bankruptcy protection from its creditors. The company said it had bargained fruitlessly since May 1 to get easier payment terms from its leading bondholders. The company has a total debt of $764 million.