March 22, 1984

The American Telephone and Telegraph Company will not earn enough money to cover its first-quarter dividend and might have to reduce its payouts in the future because of insufficient earnings, the chairman and chief executive, Charles L. Brown, said in a statement yesterday. The statement was issued by A.T.& T. as it declared that its dividend for the first quarter, payable to nearly three million shareholders, would be 30 cents a share. That is the same amount predicted by the company last November in advance of the Jan. 1 breakup of the Bell System. Mr. Brown said in his statement that A.T.& T.'s profits for the first quarter will not be enough to cover the dividend, but the company will pay it anyway to keep the promise made in a November prospectus describing the breakup.

It was a rally for John F. Kennedy on the New Haven Green in 1960 that awakened Gary Hart, then a Yale divinity student, to politics, according to his friends. Senator Hart will come back to Connecticut Thursday with his own Presidential campaign and will hold his own rally on the same New Haven Green on Monday evening, the day before this state's Democratic Presidential primary election. Mr. Hart spent nearly seven years here at the Yale Divinity School and the Yale Law School. According to those who knew him then, he came wanting to be a professor and but left with a goal of pursuing politics and public life.

Anthony J. Alvarado annnounced yesterday that he was taking an indefinite leave of absence as the New York City Schools Chancellor until questions about his finances were resolved. The surprise announcement from Mr. Alvarado ended days of speculation that he might resign. But it left unresolved a number of questions about the Chancellor's standing and, for a few hours, about who was in control of the largest school system in the country. Mr. Alvarado made known his decision in a four-minute statement to reporters in an auditorium at Board of Education headquarters in downtown Brooklyn. He then left the room, ignoring questions.

The following article is based on reporting by Jeff Gerth and Leslie Maitland Werner and was written by Mr. Gerth. WASHINGTON, March 21 - Edwin Meese 3d reported more than $10,000 in income on his 1980 and 1981 tax returns that was not reported on his financial disclosure statements for those years, according to public documents and several people familiar with the tax returns. In addition, according to two Reagan Administration officials, Mr. Meese failed to report on his tax returns hundreds of dollars of interest from an account at the White House Federal credit union with a balance that at its maximum was between $15,001 and $50,000. Earlier this week, Mr. Meese amended his disclosure statements for 1981 and 1982 to reflect an account at the credit union. The officials said Mr. Meese might now also have to amend his tax returns.

A unanimous Supreme Court decision today gave the Internal Revenue Service access to what the agency says is a necessary tool for auditing corporate income tax returns. The Court ruled that the I.R.S. is entitled to see the private assessment of a corporation's potential tax liability, prepared by a certified public accountant as a way of judging the adequacy of the company's tax reserves. This assessment, known as a tax pool analysis or tax accrual work papers, identifies questionable aspects of a company's tax return.