October 19, 1977

SEC, citing its findings of manipulation, deceptive practices and lapses in policing, sets formal probe of options trading; imposes temporary rule deferring expansion of existing pilot programs and initiation of new programs; announces 'disapproval proceedings' involving over 24 proposals for rule changes to allow various exchs to expand their options programs and to permit NYSE to enter business; alleged abuses detailed; SEC aide Shelly Rappaport, Chicago Exch Options Bd and ASE comment (M)

Treas sells $3.5-billion in 2-yr notes at avg 7.27% interest rate, highest since Dec '75; increased purchases by individuals noted (M)

repts earnings before securities transactions fell 2.6% to $7.6-million in 3d qr (S)

Article on conflict between Riverdale, NY, residents and development group over proposed luxury town-house complex on Delafield estate; map; illus (L)

3d-qr rept (S)

Chronology' of events; Schmidt illus (L)

200 theater people, writers, artists, publishers and others attend celebration at inv of New Yorker pub; illus of pub pres George J Green and hotel owner Ben A Bodne (M)

comment on Jackson's series performance (M)

Continuing study of 46,000 women in GB has shown that those who use oral contraceptives face substantially higher risk of pill-related death than was previously thought; death rate associated with pill is especially high among older women and those who smoke cigarettes; study, begun in '68 under sponsorship of Royal Coll of Gen Practitioners, represents most comprehensive estimate of pill-related deaths ever published and has prompted coll and Royal Coll of Obstetricians to issue reconsideration of pill use after age 35; study's authors conclude that pill users in general face 40% higher death rate than women same age who never use pill, rept in Lancet pub; study shows virtually all excess risk is attributed to increased number of deaths from circulatory diseases; Pharmaceutical Mfrs Assn comments (M)

H C Schonberg article suggests some light classical works of music which might be played while dining; offers musical 'menu'; cartoon (M)

BONN, Oct. 18—Almost from the moment that the Lufthansa 737 was hijacked over the French Riviera last Thursday afternoon, West Germany set in motion a complex domestic and international operation to rescue its 82 passengers and five‐member crew.

Newly issued earnings reports and possible takeover targets dominated the attention of Wall Street yesterday, while the general market remained about even in its closely watched indicators.