September 8, 1977

special grand jury returns 4-count indictment charging Carlos Alberto Torres and Oscar Lopez with conspiracy and variety of charges stemming from number of explosions in Chicago; indictments charge that between June 1 and Nov 3 '76, 2 men used bldg at 2659 West Hadden to conceal materials making bombs (S)

WASHINGTON, Sept. 7 — President Carter and Brig. Gen. Omar Torrijos Herrera tonight signed the two treaties that would transfer control of the Panama Canal to Panama by the year 2000 ratified by both countries.

Alice Crimmins is granted parole after serving 5 yrs of 5-to-20-yr sentence; State Parole Bd Chmn Edward Hammock comments; illus (M)

Dem and Repub mayoral candidates debate late into night as campaigns wind up; Beame, Cuomo, Abzug and Koch seen so closely bunched that even their campaign mgrs give up trying to gauge outcome; Dem primary caps campaign that has unprecedented 7 candidates, 1st major woman contender and 1st major black contender; campaign looms as record-breaker in spending, with at least $4-million committed for initial primary and more to come for runoff; ideological differences seen almost nonexistent among Dems (L)

New York City's 111 high schools opened smoothly yesterday, though elementary, intermediate and Junior high schools faced boycott. Article appears on page D1S?

Rept by Comptroller John G Heimann discloses Lance and wife recd approximately $3.5-million in loans or refinancing over 13-yr period from Calhoun bank where he maintained substantial acct under correspondent relationship; says evidence supports view that, but for correspondence accts, loans would not have been made; says prosecution is not warranted; underscores Lance's pattern of obtaining loans from banks where his bank kept large, interest-free accts; scores method used by Calhoun bank in handling Lance's overdrafts; says practice was not illegal but resulted in loss of interest by bank; other findings of rept detailed; Jody Powell says Pres Carter has not asked for Lance's resignation and does not want it; Sen Robert Byrd says Lance's effectiveness has been seriously impaired; HR Speaker O'Neill says Lance should be given fair hearing; Lance illus (M)

US Army, in surprise move, has informed Cong that Ft Drum in upstate NY is under active consideration as new home of 14,000-member 2d Infantry Div, now stationed in S Korea; Carter Adm, in planning to withdraw unit, is also considering deployment of div to Ft Benning, Ga, or Ft Bliss, Tex; map (M)

Justice Dept reptdly questions const of race quotas in brief stating dept's view in landmark Allan Bakke case; argues that Univ of Calif special admissions program for minority applicants deprives whites of their civil rights; supports less rigid systems that consider an applicant's race among other factors in making admission decisions; HEW Dept Sec Joseph A Califano and other Govt officials reptdly are trying to prevail on Pres Carter to reject dept's position; Carter Adm is scheduled to file brief with US Sup Ct stating its position in case (M)

Gov Carey proposes that convicted murderers be sentenced to life imprisonment at hard labor without chance of parole as alternative to capital punishment; had ridiculed suggestion 2 mos ago when put forward by Sen Roy Goodman, Repub Mayoral hopeful (M)

unions agree by substantial margin to restrain wage demands and return country to free collective bargaining after 2 yrs of formal controls, TUC annual conf; leadership tries to head off attempts by rank and file to avoid compliance (M)

Article on popularity of fishing contests in Eng; cites Gladding Masters tourn, North Muskham, Eng, that attracted 3,000 people and 37 participants; illus (M)

Soviet publishers are negotiating for book translation contracts with some Western exhibitors despite controversy over confiscation of small number of books and catalogues brought for display; exhibitors say Soviet Copyright Agency is trying to accommodate them, though Soviet customs stands firm on its decision to remove literature that it considers anti-Soviet or pornographic; Ital publisher Giulio Einaudi repts seizure of 3 books by unauthorized Soviet writers and photographic album and work by Leon Trotsky; illus (S)