October 5, 1975

Joan Whitney Payson, principal owner of the New York Delets and Greentree Stable, died at 72. Page 63.

Natl Assessment of Educ Progress, HEW Dept-sponsored project, is struggling to win acceptance in research area flooded with statistics measuring pupil achievement; orgn, after generating 20-million pages of test results, is still criticized for vagueness of its findings, and paucity of interpretation concerning them; lack of interest among other researchers in using data noted; objective-reference exercises, at heart of tests, are given to small groups of representatively selected pupils and young adults across country to determine their levels of knowledge; results, unlike thse in more commonly used standardized tests are reptd in terms of percentage of respondents possessing knowledge or skill examined; test categories are criticized for their tendency to be broad, noncontroversial and predictable; fears by parents and school admrs that project will lead to Fed Govt imposition of single curriculum on country noted (L)

NYS Sen Com on Crime study of felony convictions finds that judges in NYC generally impose lighter sentences for major crimes than judges in rest of state; com chmn Ralph J Marino, saying that disparities are shocking, says com may sponsor legis to equalize sentences throughout state by giving judges less discretion in sentencing; study finds that only felonies in which higher sentences are imposed in city are for rape and drug addiction; other findings noted; NYS Sup Ct Justice David Ross, who is judge of city's Criminal Cts, and Sen com counsel Jeremiah McKenna comment; chart showing prison sentences for major crimes in '73 in city and other counties (M)

US Treas Sec William E Simon proposes that banks holding NYC notes declare form of debt moratorium to head off city default, provided that Emergency Financial Control Bd produces 'credible' plan for bringing city's budget back into balance, int; suggests 'temporary' addition to state sales tax to help city and 'immediate study' by Fed Govt of whether it should assume greater share of burden of welfare and possibly some other munic outlays; proposes tech changes to 'broaden' mkt for munic bonds; one would be provision for taxable munic bonds with Fed subsidy to hold down effective interest rates to borrowing govts; other would be law requiring uniform system of financial reptg by state and local govts; Simon is emphatic in criticism of bankers and other financial figures who have predicted 'catastrophe' as result of city's situation and possible default; terms such talk 'highly irresponsible'; denounces 'demogoguery in Cong--scaring the hell out of people'; concedes that 'psychological effects' of recurrent predictions of major damage from city default 'can make an impact' and could have 'domino effect' on mkts generally; cites recent impact on NYS securities, holding there is 'no real reason' for suspicion of issues; other officials have said 1 exception to this is notes of NYS Housing Finance Agency, which they say can be 'rescued' by additional 'moderate' appropriation from Legis; Simon discloses that he firmly opposes plan, with some support in Cong, for Fed guarantees of munic bonds, provided they are taxable; Munic Assistance Corp official Felix G Rohatyn holds Simon's proposals might not be practical in terms of city's problems; Simon illus with Fla Gov Reubin Askew at Chamber of Commerce meeting, Palm Beach, Fla (M)

Mayor Beame, taking what he describes as 1st step toward radical restructuring of NYC bureaucracy, plans to have Fire and Hwy Depts managed as if they were modern businesses rather than govt agencies; intends, by adopting practices suggested to him by new group of businessmen in his adm, to use limited budgets, designated objectives and incentive techniques to promote productivity; departure from traditional budget practices will be presented by Beame to Gov Carey and other members of Emergency Financial Control Bd as part of city's comprehensive 3-yr financial plan aimed at erasing accumulated debt, balancing budget, streamlining depts and eliminating persistent threat of default; Beame, accompanied by Deputy Mayor for Finance Kenneth S Axelson and City Planning Comm Chmn John E Zuccotti in discussion with NY Times editors and reporters, calls his plan for Hwys and Fire Depts 'mgt by objective'; Fire Dept will be examined because it is generally regarded as 1 of city's more efficient depts and Hwys because it is considered among least efficient; Beame illus; Zuccotti and Axelson pors (L)