March 16, 1994

The Economy Inflation remained subdued in February despite a surge in energy costs that drove the Producer Price Index up five-tenths of 1 percent, the most since last spring. Separately, the Federal Reserve said severe weather had inflicted less of a setback to industrial production than had been assumed. [ Page D1. ] A Congressional subcommittee narrowly voted to support President Clinton's proposal to require all employers to help buy health insurance for their employees. [ A16. ] Business Technology The search for an electric car has become a quest among environmentalists, who seek an antidote for smog, traffic noise and reliance on oil. But lately, this technology has found an unlikely patron: the Pentagon, which sees battlefield applications for electric-vehicle systems. [ D1. ] Bell Communications Research announced a new lightweight rechargable battery as thin and flexible as a credit card. [ D5. ] Companies For decades, Chevrolet meant big profits for General Motors. Restoring Chevrolet's sales power is vital to G.M., which is why the division is in the middle of the fastest product overhaul in its history. [ D1. ] G.M. resumed talks with union workers to settle a strike at two plants that could cost it $20 million a day. [ D4. ] Shares in Regeneron Pharmaceuticals fell by a third after the company said that side effects of its treatment of Lou Gehrig's Disease would force the extension of clinical trials. [ D3. ] Adobe Systems and Aldus said they intended to merge in a deal valued at more than $500 million. [ D3. ] Viacom promoted two executives and formed a transition team to combine Paramount and Blockbuster Entertainment. [ D3. ] Zale, the nation's largest jewelry retailer, named Robert J. DiNicola, a department store veteran, its chief executive. [ D3. ] As it prepares to bargain with creditors over a plan to emerge from bankruptcy, R. H. Macy reported stronger earnings. [ D4. ] Philip Morris was last year's biggest spender on efforts to lobby members of the New York State Legislature. [ B2. ] International Government officials from the United States and other leading industrial nations agreed that the only way to create good jobs in the face of technological change was to improve education, particularly for the least skilled. [ D2. ] Although Detroit has been a fitting enough host for the conference, even its public relations material could not avoid hinting at the city's problems. [ D2. ] The battered Mexican economy has slipped from slow growth into a formal recession. Figures just revised show that the nation'sgross domestic product declined in both the third and fourth quarters of 1993. [ D1. ] Markets After early rallying, the leading stock indexes traded downward. The Dow dropped 13.39 points, to 3,849.59. [ D6. ] Interest rates fell sharply, as traders and investors greeted this week's first inflation report warmly. [ D18. ] Rising speculation that Germany will cut interest rates this week pushed the dollar higher against the German mark. [ D15. ] Gasoline futures rallied as traders correctly bet that petroleum industry data would show a reduction in supplies. [ D15. ] Today's Columns While GE Capital's bid has been declared unpalatable by Kemper executives, it might look quite inviting to Kemper shareholders. Floyd Norris: Market Place. [ D1. ] Virgin Atlantic Airways' latest regional campaign revives its sometimes hostile rivalry with British Airways. Advertising. [ D20. ]

It was 7:25 A.M. when Shirley Moore, a veteran history teacher, sliced a banana muffin, she scanned the dining hall at her beloved Emma Willard -- one of the oldest girls' boarding schools in America (founded 1814) -- and said: "You wouldn't be able to tell, but I can see it. I see a little more makeup out there this morning, a little more dress up." She felt there was a chance of keeping some order among the girls this final day before spring break. "They have a lot of tests, a lot of papers due today," Ms. Moore said, "so it might not break out until noon."

The men running the Kemper Corporation think they deserve time to prove that they have turned around a lumbering giant. But they may not get the opportunity because while the bid from the General Electric Company on Monday was declared unpalatable by Kemper executives, it may look quite inviting to Kemper shareholders, making a hostile move by G.E. a lot easier. Until the offer by G.E. was disclosed, Kemper stock was trading well below where it was in late 1989 and there had been an erosion of shareholder loyalty. At the same time, Kemper was watching its market share decline in some of its most important businesses.

Locked in the political battle of his life, Representative Dan Rostenkowski, President Clinton's chief arm twister and cajoler in Congress, won renomination tonight in one of the most important primary elections anywhere in the nation this year. The fate of Mr. Clinton's ambitious agenda of health care and welfare reform is largely tied to the fate of Mr. Rostenkowski, who has had to contend with a Federal investigation of his financial dealings with the House Post Office.

A 26-year-old police officer who apparently was trying to thwart an armed robbery was shot and killed in the Bronx last night. Officer Sean McDonald, a father of two from Putnam County, was shot at least five times after he confronted two men who had tied up the owners of a clothing store in High Bridge, officials said.