July 26, 1982

on collisions had made a favorable impression on those in attendance. Weekend bleacherites elbowed one another knowingly and remarked about how good it was to see the Colts being aggressive for a change. The architect of change stood several yards behind the mock line of scrimmage, mostly observing. Despite the heat and humidity, Frank Kush wore a lined maroon windbreaker and his baseball cap was pulled down snugly on his head, half-shielding that permanent squint that seemingly doesn't miss a thing. When he spoke, his voice was authoritative but hardly shrill. On occasion, he offered a compliment. ''Quite a lot of people expected the worst,'' said a rookie quarterback, Mike Pagel of Arizona State, who played for Kush in college. ''The guys keep asking me, 'When is he going to cut loose?' ''

Officials of New York City and State said yesterday that $200 million of a $878 million rate increase sought by the New York Telephone Company would go for projects the utility might never use because an antitrust settlement could turn them over to the American Telephone and Telegraph Company. The officials - Karen Burstein, executive director of the State Consumer Protection Board; City Comptroller Harrison J. Goldin; Borough President Andrew J. Stein of Manhattan, and Assemblyman Maurice Hinchey, Democrat of Saugerties - said in a joint statement: ''These frivolous capital costs are nothing but a back-door effort to make A.T.&T. more competitive when it is finally broken up, by socking New York Telephone users with the cost.'' Advanced Systems at Issue On the eve of today's first hearing on the new request, the officials said the $200 million would be used to develop advanced systems, such as telephone-operated burglar alarms, office data systems, computer linkups, telephone banking and telephone-operated answering services.

For Mitsui & Company, the trading giant that traces its history back more than 300 years, these are not happy times. In recent years, it has been scarred by heavy exposure in Iran. Last Wednesday, it pleaded guilty and agreed to pay $11 million in penalties for selling steel at below allowable prices in the United States. It still faces challenges to its basic operating structure, which was set up after World War II. Mitsui, however, has survived centuries of drastic economic and social change. The company was founded as a small shop by Takatoshi Mitsui, who renounced his rank as a warrior-aristocrat to become a tradesman. From its beginning, Mitsui was part of the emergence of the Japanese merchant class.

''Right now, it is just pot luck.'' -Denise Figueroa on bus service for the handicapped. (B1:5.)

Corporate profit reports for this year's second quarter indicate that the recession is still choking many of America's key industries, although the figures do show some pockets of strength in the United States economy. Earnings have been ''a terribly mixed bag, even within particular industries,'' according to William E. Gibson, chief economist of the Republic Bank Corporation in Dallas. ''There's quite an array of ups and downs,'' he noted. Industries such as steel and machinery, which depend on capital outlays as well as consumer spending, are clearly suffering. In addition, the international energy companies (including the Exxon Corporation and Texaco Inc.) saw their profits plunge during the three months from April 1 to June 30 because of the oil glut and a strong dollar.