February 3, 1978

Transportation Dept study proposes major restructuring of transportation system to move huge quantities of coal under Pres Carter's energy program (M)

Fed Reserve proposes letting member banks create interest-bearing checking accts by allowing them to automatically transfer funds from savings to checking accts; proposes customer forfeit interest earned on transferred funds in 30 days before transfer; would make service available only to individuals; consumer groups, ABA and Sen Thomas McIntyre, proponent of stalled bill to legalize interest-bearing accts, hail proposal; smaller banks, thrift insts and HLBB Chmn Robert McKinney score it; analysts see proposal aimed at aiding Carter Adm-backed bill to legalize interest-bearing accts (M)

Mayor Koch's adm is planning complete reorgn of NYC's multimillion-dollar, scandal-scarred antipoverty program; effort, just beginning, is seen likely to be complex, long and volatile task, with difficulties ranging from meeting Fed guidelines for use of money to possible hostility in city's black, Puerto Rican and other poor communities, particularly from those with ties to existing programs; Koch and his aides believe that city's antipoverty structure, set up during Pres Lyndon B Johnson's 'Great Soc' Adm, has become marred by waste, inefficiency, feuding among blacks, Puerto Ricans and other ethnic groups, pol empire-building, patronage abuse and corruption; Deputy Mayor Herman Badillo declares 'we've got to stop the stealing' (L)

Pres Carter tells Mayor Koch that his Adm would support further finandal help for NYC once he is certain that 'all the local parties with an interest in the city's future' are also making maximum effort, White House meeting with Koch and retinue of city officials; emphasizes importance of winning pledges from NYS, pension funds, labor unions and city's financial community to support city; declares that once he is satisfied that other parties have done their part he will 'work hard' to persuade Cong to enact bill that will end NYC's financial uncertainty; orders Treas Sec W Michael Blumenthal to go to NYC for further talks with local officials; Blumenthal illus; Koch illus with Sen Howard H Baker Jr and Sen William Proxmire (L)

Rev Billy Graham's Las Vegas crusade discussed; illus (L)

Pres Carter's Oct 25 order giving US ambs authority to supervise 'all US Govt officers and employees in their countries' produces widely divergent interpretations by CIA and State Dept; Carter order states that ambs may rev message traffic to and from all personnel, presumably including CIA officers, and subsequent guidelines sent to ambs by State Sec Vance echo that directive; guidelines issued by CIA Dir Turner for CIA station chiefs around world, however, set restrictions on what CIA messages ambs might see; Carter refuses to comment on divergent interpretations (M)

US Amb to Japan Mike Mansfield, in speech to Japan Soc, NYC, defends trade and econ concessions made by Japan to US as genuine (S)

New York has Broadway, Off, Broadway, Off Off Broadway—and then there is Joseph Papp, who is a theater movement unto himself. Last June when the mercurial Mr. Papp seceded from Lincoln Center, it looked as he might be going through a period of retrenchment. Instead, the reverse is true. Mr Papp has never been busier. His New York Shakespeare Festival Public Theater at 425 Lafayette Street is having its most productive and prosperous season and is an ideal weekend treat.

retrospective revd by J Russell; illus

Takeover situations provided some zest to the stock market yesterday as prices generally continued to push modestly higher. Bolstering sentiment of investors was the recent steadiness of the dollar in foreign currency trading.

CAIRO, Feb. 2—President Anwar elSadat arrives tomorrow in Washington to pursue the latest phase of what he has

Friday