May 19, 1976

NYS Sen and Assembly overwhelmingly pass measure allowing ct challenges of decisions of State Educ Comr Ewald B Nyquist; behind bill, which allows ct rev of decisions considered 'arbitrary, capricious, an abuse of discretion or based on erroneous determination of fact,' is controversial issue of busing and school desegregation orders in state; bill, sponsored in Sen John D Caemmerer and Assemblyman Vincent F Nicolosi, passes with little or no debate to indicate emotional or racial overtones involved (M)

NYS Emergency Financial Control Bd successfully imposes less costly contract on transit workers and, in response to Fed warnings of cutoff in emergency loan aid, issues specific limitations for coming round of negotiations between NYC and its munic employee unions; agreement, which TWU leadership accepts with statement of reluctance, is different from earlier pact rejected by Control Bd in that it mandates that any cost-of-living wage increase must come from increased worker productivity; also defers part of this benefit; city officials express relief when TWU pres Matthew Guinan accepts bd's terms and says there would be no need for risky step of submitting it to union vote; illus of bd exec dir Stephen Berger, Mayor Beame and Deputy Mayors John E Zuccotti and Kenneth S Axelson (L)

US Treas Sec William E Simon warns that Fed Govt will end its $2.3-billion in annual, seasonal loans to NYC if city fails to maintain its 3-yr wage freeze; notes that city made agreement that included wage freeze; holds any wage increase, including cost-of-living increase, 'would blow that plan out of the water' (L)

NYS Sen, 41-12, approves bill permitting savings insts to offer regular, free checking accts, with overdraft privileges of up to $1,000; defeats Sen John Dunne's proposed amendment which would have delayed law's effective date for 1 yr and allowed davings bank NOW accts to continue in force; Gov Carey seen signing legis; success of measure appears to end attempts by liberal members to require savings insts to form mtge pool for marginal neighborhoods and end redlining (L)

Carnegie Hall 85th anniv concert revd by H C Schonberg; participants are conductor Leonard Bernstein, NY Philharmonic members, baritone Dietrich Fischer-Dieskau, pianist Vladimir Horowitz, violinists Yehudi Menuhin and Isaac Stern, cellist Mstislav Rostropovich and Oratorio Soc; soprano Martina Arroyo cancels because of wrenched back; illus