European Stars And Stripes (Newspaper) - November 24, 1986, Darmstadt, Hesse                                Monday november 24, 1986 the stars and stripes Page 9 Sec defends handling of Boesky Case stocks sold before mar Kef plunge. Washington a the Securi ties and Exchange commission stung by criticism that it allowed Slock Speculator inn Boesky to profit from his own insider trading Case said Friday the orderly reduction of Boesky s holdings avoided disruption in inc Market. The Sec said it was aware Boesky was Selling his Stock holdings before last week s Public announcement that he had agreed to pay $100 million in fines for trading based on illegal inside information. It was later revealed that Boesky sold More than $400 million in Stock before the announcement last week lha stunned Wall Street and caused Stock prices to plummet the Sec said however that without the gradual reduction in Boesky s hold Ings he and his clients would have been forced to dump the Stock on a plunging Market to pay off Loans that were used 10buy the stocks. Substantial margin debt could Force proc spilious and uncontrollable liquidations of securities that would have had a very serious Adverse effect on the mar Ket he Sec said in a statement issued late Friday afternoon. The orderly reduction of these Loans has avoided such consequences the commission also said the Plum meting Slock prices of Early last week after the Boesky announcement appear to have been based on rumours and speculation concerning the consequences of the commission s ongoing investigations. The Market averages have since re bounded to above die Friday nov. 14  the commission said Boesky s sales would not allow him to pay his s100million Fine from newly generated prof its. The settlement Money must come from Boesky s personal holdings the Sec said and the securities sold did not include any of his personal hold  the Agency said it did not appear the sales violated any Federal securities Laws. Lbs news reported Friday night thai government lawyers Are investigating whether Boesky had secret and illegal arrangements with corporate raiders Toby and sell stocks in takeover wars. The commission was backed by the chairman or the Senate banking Securi ties subcommittee sen. Alfonse d Ama to r-n.y., who said Boesky was allowed to sell his holdings so there would not be a panic in inc marketplace and As a duty to other i  but Many in the financial Community were outraged that Boesky was Able to use the private knowledge of his. Own downfall to avoid heavy losses. The Sec has permitted the re enact ment of the crime rep. Charles e. Schumer in y., said thursday. In a related development the chair Man of inc House banking committee asked the Federal Reserve Board and Bank regulatory agencies on Friday to detail possible involvement by the nation s Banks and savings and Foan associations in insider trading and corporate takeovers. In a letter to chairman Paul a. Volcker. Rep. Ocmand St. Germain d-r.i., asked for information on How deeply Banks and Thrift institutions were involved in commercial Loans to finance takeovers and in the holding of so called junk Bonds High risk High return Bonds often issued to finance takeovers. A committee aide who spoke on condition of anonymity said the banking committee request was not based on any information suggesting deep involve ment by the banking Industry. Civil lawsuits filed against Boesky by investors increased Friday with three suits filed. A new Jersey Man filed Suil Ai Federal court in Manhattan seeking $50 million in damages claiming Boesky artificially inflated the Price of North View corp. Slock. In a separate Suil a Manhattan Man claimed that a fund managed by Boesky sold off Ghoul $440 million Worth of securities shortly before the Sec announced its penalty. That reportedly enabled the fund to avoid losses other investors posted last week. At least one other civil lawsuit has been filed against Boesky and companies he managed. All three suits sought class action certification. Several accountants said Friday the Federal government could end up paying one Quarter of the $100 million penalty imposed on Boesky. Half inc penalty was paid to the Feder Al government and clearly is not deductible As a business expense. Bui there disagreement among some accountants that the other so million which will be set aside to repay investors harmed by Boesky s actions probably could be claimed As a lax deduction. Polynesian performance for the Pope a Maori Warrior executes � traditional Welcome dance although to looks menacing in Honor of Pope John Paul ii who arrived saturday in auck land new zealand the pontiff then celebrated mass new zealand is the fourth Stop of the Pope s six nation tour of Asia and Oceania. Hot dogs May soon be leaner and Wetter a. I. A i Neth  in non Hirtl Anh the fifth a. How vhf. Which a sinful Tilc Ncwashington a Consumers could see leaner hot dogs Bologna and Oiher cooked sausage products under a Frodo Sal 10 allow processors to use More water in their recipes the agriculture department said Friday. The proposal which will be open for Public comment for 60 Days was sough by the Industry supported amen can meat Institute. It would allow processors to increase the amount of added Waier in cooked sausage products above the cur rent limit of 10 percent. As a result water would replace fat thus lowering the fat Content. The flavor and nutritional Content of the products would remain comparable to of her cooked sausages Aid Donald l. Hous ton administrator of us a s food safely and inspection service. This proposal is in keeping with our desire to facilitate the marketing of lower fat products Houston said m in announcement. We encourage prows sors to reduce the fat Content in cooked sausages so Long As they Are As nutritious As the traditional product and the Label ing is Clear and not  labels of hot dogs and other products prepared under the proposed rules would have to comply with us a s new Label ing policy for lean and lower fat claims Houston said. Based on the Labelling policy the terms Lite Light leaner and lower fat could be used on cooked sausage products if the products contain at least 25 percent less fat than similar products in the  he said. However when using these terms processors would need to include a statement explaining the comparison on the product s Label Houston said. For example the Label for lower fat hot dogs might include this product contains 20 percent fat while us a allows 30 per cent in hot dogs " written comments can be sent by Jan. 23 10 us a food safety and inspection service regulations office attn Linda Carey hearing clerk room 3168-s, Washington . 20250