LEAD: Allies of Mikhail S. Gorbachev have mounted an intense campaign to scrap the Soviet leader's much-discussed plan for an economic restructuring and replace it with more far-reaching changes.

NEW STRUGGLE IN THE KREMLIN: HOW TO CHANGE THE ECONOMY

LEAD: Hundreds of switches were flicked, myriad motors began to purr and New York City's 14th sewage-treatment plant began operating last week, completing a network of treatment plants first conceived in 1910.

City Finishes Sewage Network As Brooklyn Plant Starts Up

LEAD: Andres Segovia, the master guitarist who was one of the paramount concert artists of this century, died of a heart attack Tuesday in Madrid. He was 94 years old.

HIS CRUSADE ELEVATED GUITAR

LEAD: One measure of how much New York's ethical climate has improved recently is State Senator Joseph L. Galiber's patience.

Like Weather, Ethics Is Proving Hard to Control

LEAD: In a project that reflects the growing importance of New Jersey's riverfront real estate, developers said yesterday that they planned to build a $900 million complex of offices, condominiums, stores and a marina along the Hudson River in Jersey City.

Huge Jersey Project Planned on Hudson

BUSINESS DIGEST: THURSDAY, JUNE 4, 1987

LEAD: The spread of the AIDS virus among intravenous drug users continues unabated, an expert reported today, despite some success in persuading drug users to avoid contaminated needles and syringes.

SPREAD OF AIDS VIRUS IS UNABATED AMONG INTRAVENOUS DRUG TAKERS

LEAD: Senior members of Congress questioned today whether Congress would approve new assistance for the Nicaraguan rebels if Elliott Abrams remained Assistant Secretary of State for Inter-American Affairs.

CONGRESS MIGHT NOT AID CONTRAS IF ABRAMS CONTINUES IN HIS POST

LEAD: The bond markets strengthened yesterday, recovering more than half the decline that occurred Tuesday after the announcement that Alan Greenspan would replace Paul A. Volcker as chairman of the Federal Reserve Board.

BOND PRICES SHAKE OFF FED JITTERS

MYSTERY: CAR'S FATE

LEAD: Japan said yesterday that it would permit four major American commercial banks to establish securities underwriting and trading operations in Tokyo.

JAPAN LETS 4 U.S. BANKS UNDERWRITE SECURITIES

LEAD: When Alan Greenspan takes over this summer as chairman of the Federal Reserve, his most important job will be to prove to a somewhat skeptical international banking and investment community that he can take the right actions - particularly to combat inflation - rather than just prescribing them for others, various analysts said today.

FOR GREENSPAN, NO DEARTH OF TESTS

LEAD: AMERICANS have a new favorite pastime: the gardening of perennials, which they have taken up with the gusto they once reserved for cooking or running. New gardeners bone up on the subject in the proliferating literature and discuss it at dinner parties where the words Clematis paniculata would once have raised eyebrows or inspired yawns.

AROUND AMERICA, GARDEN FEVER TAKES HOLD

LEAD: The Rev. Leon Sullivan, who created a code of conduct under which American companies continued to operate in South Africa, said yesterday that the effort had failed to undermine apartheid, and he called on the companies to end all commercial ties with South Africa.

SULLIVAN ASKS END OF BUSINESS LINKS WITH SOUTH AFRICA

LEAD: And now, a conglomerate for the carriage trade.

THE CHAMPAGNE OF MERGERS

LEAD: Turner Broadcasting System Inc., saddled with debt as a result of its $1.78 billion purchase of the MGM/UA Entertainment Company, completed the sale today of 37 percent of the company to a group including 26 operators of cable television systems and Time Inc.

Turner Deal Comes Just in Time

LEAD: The Metropolitan Transportation Authority and Amtrak have agreed on a plan to operate Pennsylvania Station jointly, clearing the way for $160 million in improvements for the crowded and prematurely aging building.

Pact Reached on $160 Million Improvement of Penn Station

LEAD: It used to take Gary Adair four hours or more to retool the computerized machines that assemble tires so they could make ones of a different size. But with the help of fellow workers at the Goodyear Tire and Rubber Company plant here, Mr. Adair has cut that time to three hours. Such accomplishments are significantly increasing the number of radials the plant can produce.

AS OUTPUT GAINS, WAGES LAG

LEAD: The financial organizer of the arms sales to Iran testified today that he had set aside $200,000 for the personal use of Lieut. Col. Oliver L. North and his family. The witness, Albert Hakim, told the Congressional commitees investigating the Iran-contra affair that he had not directly told Colonel North about the money.

Article 314787 -- No Title

LEAD: Despite opposition from the Reagan Administration, the House of Representatives overwhelmingly approved legislation today that would write into law a policy requiring broadcasters to cover community issues and present differing views on controversial topics.

HOUSE APPROVES LAW ON FAIRNESS IN BROADCASTING

LEAD: A Federal grand jury indicted Representative Mario Biaggi, his son and five others yesterday on charges of transforming the Wedtech Corporation into a criminal racketeering enterprise that paid millions of dollars in bribes to win military contracts.

U.S. INDICTS BIAGGI, SON AND 5 OTHERS IN WEDTECH BRIBES

INSIDE

LEAD: The State Senate approved a measure today that would establish a mandatory penalty of at least two years in prison for anyone who commits a serious crime in a subway or on another form of public transportation.

Stiff Penalties For Subway Crime Backed

LEAD: In a stately academy here, four women were citing Freud and Erik Erickson, analyzing the teething process and debating the flaws of baby powder. The women are part of a small but growing movement to create a cadre of American Mary Poppinses, nannies who can handle colic and fevers, make snacks out of wheat germ and perform the Heimlich maneuver on their 2-year-old charges.

THE NANNY SCHOOL SEEKS SOLID FOOTING

LEAD: ALEC WEBB remembers games of hide-and-seek in the Main Hall of the Big House at Shelburne Farms, home-cooked meals eaten family style in the echoing Marble Room, a pet crow flying through some of the 110 rooms.

GILDED-AGE SPLENDOR: A MANSION'S NEW LIFE

Mollie Elizabeth King is an English pop singer, songwriter, radio presenter and a member of girl group The Saturdays.

June 4, 1987

Headlines from June 4, 1987

NEW STRUGGLE IN THE KREMLIN: HOW TO CHANGE THE ECONOMY

City Finishes Sewage Network As Brooklyn Plant Starts Up

HIS CRUSADE ELEVATED GUITAR

Like Weather, Ethics Is Proving Hard to Control

Huge Jersey Project Planned on Hudson

Billboard 200

The Joshua Tree

Slippery When Wet

Whitesnake

Look What The Cat Dragged In

Graceland

Notable Births

Historical Context for June 4, 1987