A 4607 June 3, 1997
P & S 4187

TO: All Participants
ATTENTION: Managing Partner/Officer, Cashier, Manager; Purchase and Sales Department
SUBJECT: NEW YORK STATE STOCK TRANSFER TAX REBATE PROGRAM

National Securities Clearing Corporation will have accumulated the allowable transfer tax rebates reported by participants for the period March 31, 1997 through June 27, 1997. The State requires that these amounts be applied to participants settlement accounts. Accordingly, on the June 30, 1997 Preliminary and Final Settlement Statements, these amounts will appear as a Debit (Code 70) and Credit (Code 71).

The payment and return of the rebate amounts taking place on the same day is contingent upon New York State's ability to authorize the return of the rebate amounts prior to the close of business June 30, 1997. Failure of the State to authorize the return of the rebate amounts on this date will result in the return of the payment taking place on July 1, 1997. In the event the State does not return the rebate on June 30, 1997, participants will be advised prior to settlement time (4:00 P.M., New York time).

Questions regarding this notice should be addressed to the undersigned at (212) 412-8659. Questions regarding the calculation of the stock transfer tax should be addressed to your tax counsel or accountants or the New York State Department of Taxation and Finance at (518) 474-5472.

Bernard M. Sweeney
Director, Production Services