July 7, 1975

The entire Cabinet of President Isabel Martinez de Perón resigned in Argentifia hours before the beginning of a planned general strike. Unions and others had demanded the removal of a key. Presidential adviser. Page 5.

Alleged underworld crime figure Peter Diapoulas, in conversations with NY Times reporter Nicholas Gage, offers rare view into inner workings of Mafia families in NYC including new details concerning shooting of Joseph A Colombo Sr, murder of Joseph Gallo, spate of killings that followed Gallo's death and current negotiations between Colombo family and its Gallo faction; identified new head of Colombo family as Joseph Brancato; illus (L)

illus of lava and smoke pouring from Mauna Loa volcano, Hawaii (M)

Article traces roots of NYC's fiscal crisis in question-and-answer form; discusses what crisis consists of; whether city talks about budget deficits every yr; why NYC did not do same things this yr that it usually does; how '74'-'75 deficit was resolved; why Mayor A Beame, who said there was no deficit at end of yr, has dismissed thousands of munic employes; types of taxes New Yorkers will have to pay to bring dismissed employes back; whether all dismissed employes really left payroll; whether 'hidden deficits' in budget are making problem worse; whose fault this is; why NYC borrows if law says city must balance its budget without borrowing, what is meant by 'gimmicks'; whether Beame protested when he was Controller and Budget Dir during yrs when gimmicks were engaged in; what Munic Assistance Corp does; bond rates; why NYC politicans did not warn poeple that it was creating such a huge mess (L)