BUSINESS Digest

Because of a technical error, an arilcle in The Times yesterday about the collapse of the roof of Kemper Arena in Kansas City, Mo., omitted part of a remark by&#8208;Ehrman B. Mitchell Jr., president of the American Institute of Architects. Mr. Mitchell said of the accident: &#8220;There is doubt and worry. It's sort of like the DC&#8208;10 &#8212; people wonder how designers could do such a thing. But I don't think the problems last. People understand that these are accidents beyond our control ; they will not say that &#8216;I won't go into buildings like that from now on.'&#8221;

CORRECTIONS

WASHINGTON, June 6&#8212; With the nation's economy cooling off faster than the White House had expected only a few weeks ago, the Administration faces the danger that its conservative policy of fighting inflation at the

Carter's Policy: Storm Clouds Grow

US Gen Omar Bradley illus during ceremonies, Bayeux, France, commemorating D-Day; led US forces during Normandy landing, June 6 '44

Agence Fnance‐Presse/United Press International

Macchiarola plans to dose as many as 25 elementary schools and leased facilities in 15 of city's 32 school districts, despite growing protests by parents and local school boards; asks school districts to hold public hearings on prospective closings before he makes final decision, which local boards can appeal to Education Board; planned closings are expected to save school system $5 million; schools expected to be closed listed (M)

MACCHIAROLA MOVES TO CLOSE 25 SCHOOLS

Article on vast numbers of indigent defendants and how their cases are handled; examples cited; various statistics noted; drawing (M)

Tens of Thousands of Indigents Jam New York Criminal Courts

TOO seldom does reality, for most of us, measure up to the esthetic ideal. Not so, however, in the case of Martin J. Davidson. Indeed, he makes no bones about it: &#8220;I want nothing but the best,&#8221; he says. &#8220;And I have it.&#8221; Mr. Davidson, 34 years old, is slim and fashionably bearded. A Brooklyn High School graduate who attended art school at night and by the age of 27 owned his own graphics design business, he has been moving as fast and as emphatically as a 20&#8208;hour work day and a handful of successful tax shelters will permit.

When ‘Nothing But the Best’ Will Do

Pres Carter sends Congress a revised pay system to bring Government employees' salaries and fringe benefits more closely in line with those of workers in private industry; plan would for 1st time set up different pay scales for Federal white-collar workers in different parts of country, keyed to prevailing wages being paid in area; keystone of plan is proposal to include value of fringe benefits paid to Federal workers when calculating 'comparability' of Federal and private pay scales; such fringe benefits make up 30% of cost of compensating Federal work force; Alan K Campbell, dir of Federal Office of Personnel Management, says plan could save Government $3 billion annually; American Federation of Government Employees pledges 'all-out legislative battle' to defeat plan (M)

PRESIDENT PROPOSES REVISED PAY SYSTEM FOR U.S. EMPLOYEES

About New York column on current computer shows at Coliseum, Sheraton Center and other NYC exhibition centers; comments on 'computer talk' that confuses most laymen; illus (M)

About New York

Federal Aviation Administration Admr Langhorne M Bond orders immediate, indefinite grounding and suspension of design certification of ail 138 DC-10 jetliners operated by US carriers, news conference, Washington; says discovery of flaws in still more craft strengthens fear of design defect; says open-ended grounding will continue until tests pinpoint basic flaws or prove that craft meets design criteria; order marks first time that an American-made jetliner fleet has been grounded for anything but brief inspections prompted by crashes; several previous groundings recalled; McDonnell Douglas, DC-10 manufacturer, criticizes order, holding cracks found in initial inspections were on early-model 'series 10' craft only; says most involved craft on which maintenance crews used procedures contrary to builder's recommendations; Bond says companion order will be issued halting 143 foreign-operated DC-10's from flights to US; illus of mechanics inspecting DC-10 engine; drawings of pylon-mounting area, pylon fastenings and metal fatigue areas found in pylon flanges (L)

U.S. HALTS DC‐10'S INDEFINITELY, DEMANDING NEW SAFETY TESTS; TRAVEL IS DISRUPTED FOR 60,000

Diesel fuel shortages are expected to cause delays in household moving business, and rapid rise in price, to average 74.3c a gal, is expected to increase moving costs by 1.6%; graphs (M)

Moving? Diesel‐Fuel Pinch Delaying Vans

Article on reclaiming of Stonor Park, England, by Stonor family; house, in Chiltern Hills, has been home to Stonors at least since 1156; it is likely that no other home in England has been continuously occupied for so long by one family; Thomas Stonor, who as family head inherits title of Baron Camoys, was allowed in '78 to buy life interest in trust for approximately $300,000; Sherman Stonor, in early '76, declared himself bankrupt and put house's contents on auction block and put Stonor Park up for sale, Lord Camoys and his family moved into house in Aug '78; illus (L)

The Stonors Reclaim Stonor Park Page C6

API reports that gasoline inventories showed surprising increase in week ending June 1, up 4.8 million bbls to 229.7 million bbls; normal level for this time of year is about 245 million bbls; Edward Murphy, director of statistics, suggests that refiners may have underestimated amount of gasoline they would have on hand for May by 2%; stocks of middle distillates also rose, while crude stocks declined; statistics (M)

Inventories of Gasoline Rose Sharply in Holiday Week

Union County, NJ, Superior Court Judge Harold A Ackerman, wearing protective clothing, tours Chemical Control Corp's waste storage facility, Elizabeth, NJ; corporation is seeking to regain control of facility from State Dept of Environmental Protection; illus (S)

A Judge Tours

Federal Reserve Board decides to let banks branch across state lines in order to conduct International business; opposition by smaller banks to Feb proposal that branches be allowed to handle all business of companies whose transactions are primarily international noted; branches would not be owned directly by banks, but by special wholly owned subsidiaries licensed by board under '19 Edge Act; decision to let Edge Act subsidiaries branch will aid smaller banks, since previously each separate subsidiary was required to have at least $2.5 million in capital, while no added capital would be needed for individual branches; Manufacturers Hanover Trust Co vice chmn Harry Taylor hails plan; holds rules should restrict branches to international area (M)

Fed to Ease Bank Rule

FAIRFIELD, CONN. YEARS ago, I asked an acquaintance whose father I had never met what kind of man he was. My friend thought for a moment and said: &#8220;He's the kind of man who, when he walks in the street, always keeps his eyes on the ground, looking for money.&#8221;

Poorest Man in Fairfield

Mao Zedong's second wife re&#8208;emerged as a member of an organization of nonCommunist groups and personalities supporting the Peking regime. The woman, He Zizhen, had not been mentioned publicly since Mao divorced her about 40 years ago. Her reappearance seems to be part of an effort to reconstruct a biography of Mao without his third wife, who was purged after his death in 1976. [Page A2, Columns 3&#8211;6.]

News Summary

Richard D Hongisto nomination as NYS Correctional Services Comr jeopardized by his contribution to Sen Joseph L Galiber's campaign for Bronx Boro Pres; Galiber is on Sen com considering nomination and gift was made through 3d party in violation of election law; Hongisto por; Galiber deplores 'poor judgment' but affirms support for apptmt (M)

Political Gift by Hongisto A Threat to Confirmation

Accident at 3 Mile Island nuclear power plant has placed General Public Utilities in financial squeeze between utility regulators in Pennsylvania and NJ and banks; corporation's next major borrowing if approved, will require as collateral all its shares in 2 Pennsylvania subsidiaries, Metropolitan Edison and Pennsylvania Electric, and its NJ subsidiary, Jersey Central Power & Light, a requirement previously unheard of it utility financing; General Public says it faces bankruptcy if banks withdraw credit; estimates that although accident at 3 Mile Island will cost it about $50 million in cleanup costs this year, insurance will eventually cover all direct costs of accident, leaving purchased power as only major additional cost; table of recent earnings reports and other corporate financial data; table of subsidiaries' operations; map of system (M)

G.P.U. Struggle for Financing

Federal Reserve Board repts consumer installment debt grew $4.1 billion, Apr, 17% annual rate, compared with '78 rise of 19%; breakdown; '78-79 graph (S)

Consumer Debt Rises $4.1 Billion

NYC is without fiscal '80 budget 1 full day after deadline for approval; negotiations between City Council and Estimate Board are deadlocked, with each agreeing on its own package of additions to $12.8 billion executive budget; city continues to operate under '79 budget, contingency that has little meaning until July 1, when new fiscal year actually begins; Council's Finance Committee chairman Edward L Sadowsky comments; Council and Estimate Bd packages reviewed; both packages also withhold large part of Health and Hospital Corp budget so that agency's performance and plans can be reviewed after plan for hospital closings, due next week, is released; illus (M)

New York City Is Lacking a Budget One Day After the Legal Deadline

G.O.P. Pair Will Retain S.E.C. Posts

impact of grounding on DC-10 manufacturer McDonnell Douglas Corp discussed; company weighs suit to reverse court order; has delivered 277 craft, has 63 firm orders and has 70 craft on options; graph (M)

Concern for McDonnell Douglas Rises

international air travel thrown into chaos as result of DC-10 groundings (M)

Air Service in Disarray Worldwide As Foreign Carriers Heed Warning

He Zizhen, Mao Zedong's 2d wife, who has not been publicly mentioned since 1930's, named to Chinese People's Political Consultative Congress; Wang Guangmei, widow of ex-Pres Liu Shaoqi, and writer Ding Ling also apptd; illus; both had been purged and imprisoned; He's reappearance seen part of attempt to construct Mao biography without disgraced 3d wife Jiang Qing; He's role in Long March and rivalry with Jiang recalled (M)

June 7, 1979

Headlines from June 7, 1979

BUSINESS Digest

CORRECTIONS

Carter's Policy: Storm Clouds Grow

Agence Fnance‐Presse/United Press International

MACCHIAROLA MOVES TO CLOSE 25 SCHOOLS

Billboard 200

Breakfast In America

2-hot

Bad Girls

We Are Family

Rickie Lee Jones

Historical Context for June 7, 1979