LEAD: The Walden School, for 73 years an innovator in progressive unconventional education, said yesterday that it had sought permission to reorganize under Chapter 11 of the Federal Bankruptcy Code.

WALDEN SCHOOL, AT 73, FILES FOR BANKRUPTCY

BUSINESS DIGEST: TUESDAY, JUNE 23, 1987

LEAD: With acquittals in several prominent criminal cases in New York City, the spotlight is once again on the grand jury, an institution that has been around since medieval England, though it was abolished in Britain 50 years ago. Bernhard H. Goetz, Raymond

GRAND JURIES: ACQUITTALS SET OFF CRITICISM

LEAD: WITH so many spacecraft grounded indefinitely by the Challenger disaster and support for future programs uncertain, American scientists are growing increasingly frustrated and angry over their diminishing prospects for space research and exploration.

RESEARCH IN SPACE FALLS FURTHER BEHIND, AND SCIENTISTS ARE ALARMED

LEAD: The decision by the Procter & Gamble Company to write off a good deal of its investment in the cookie business, part of an $800 million restructuring announced earlier this month, represents a dramatic shift in management style for one of America's most conservative corporations.

A SHIFT IN DIRECTION AT PROCTOR

LEAD: The maintenance worker who set the hotel fire that killed 97 people here on New Year's Eve was sentenced to 99 years in prison today by a Federal judge who said Puerto Rico was ''fed up'' with violence.

JUDGE IMPOSES 99-YEAR TERMS IN SAN JUAN FIRE

LEAD: The nation's banks won another battle today in their bitter competition with Wall Street as the Supreme Court left standing a ruling that permits the banks to help companies raise money through the sale of short-term debt.

HIGH COURT BARS A WALL ST. APPEAL ON ROLE OF BANKS

LEAD: Five men convicted as leaders of the ''pizza connection'' international drug ring were sentenced to long prison terms yesterday, and the judge, in what he called an unprecedented order, told four of the men to contribute $2.5 million to a fund for treatment of drug addicts.

JUDGE ORDERS FOUR IN 'PIZZA' CASE TO CONTRIBUTE TO FUND FOR ADDICTS

LEAD: A Florida judge ruled yesterday that the bondholders of Harcourt Brace Jovanovich Inc. had the right to convert their debentures into common stock, but for far fewer shares than they hoped to receive.

HARCOURT GAINS IN DEBENTURE FIGHT

LEAD: The Federal Urban Mass Transportation Administration yesterday released $60 million for the completion of two long-delayed subway projects, the 63d Street tunnel under the East River and the Archer Avenue line in eastern Queens.

U.S. RELEASES AID FOR 63D ST. TUNNEL

LEAD: President Chun Doo Hwan was reported today to have made important concessions to the opposition, but critical details remained vague, leaving the country's political crisis still unsettled.

CRISIS IS UNSETTLED DESPITE OVERTURES OFFERED IN SEOUL

LEAD: SCIENTIFIC inquiry into personal memory is revealing the forces that create, distort and sometimes erase the images that constitute each person's autobiography.

IN MEMORY, PEOPLE RECREATE THEIR LOVES TO SUIT THEIR IMAGES OF THE PRESENT

LEAD: When you're 7 years old, it's hard to keep track of everything. Gregory Haynes knew something major was happening to his big brother, Byron, last weekend. Byron was about to be the valedictorian, whatever that was. Sunday morning, Byron paced the living room, practicing a speech. A speech! Byron! He had written three full pages.

Our Towns; Tracking no. 1: A New Legend At Roosevelt

LEAD: Today's cars may not look like Henry Ford's Model T, but most are still made pretty much according to the assembly line mass-production formula that he pioneered at the start of the century.

MAKING CARS THE VOLVO WAY

LEAD: Two ferryboats collided in a heavy fog off Sandy Hook, N.J., last night, injuring more than two dozen commuters who were returning home from Manhattan, the authorities said.

DOZENS HURT IN A COLLISION OF TWO FERRIES

LEAD: Long Island-MacArthur Airport, once a backwater airfield for weekend pilots, has grown into a regional transportation center that is spurring both economic development and opposition from its surrounding community.

AT AIRPORT IN SULFOLK, GROWTH BRINGS PROTESTS

LEAD: The Justice Department said today that it dropped a much-publicized indictment against the General Dynamics Corporation after documents were belatedly uncovered, showing that the company had properly billed the Government for millions of dollars in costs on an ill-fated Army weapon.

JUSTICE DEPT. SAYS IT WAS WRONG TO PROSECUTE GENERAL DYNAMICS

LONG-ABSENT WILDLIFE RETURNS TO CITY PARKS

LEAD: The WPP Group, a British marketing services company that is trying to acquire the JWT Group, went into court yesterday in Wilmington, Del., charging that JWT had been negotiating with other bidders on a preferred basis.

BIDDER SEEKS DATA FROM JWT

LEAD: An investigation that uncovered an unauthorized $200,000 account and other financial irregularities involving his wife has forced the resignation of Dr. Donald S. Fredrickson as president of the Howard Hughes Medical Institute, the nation's largest philanthropy.

MEDICAL INSTITUTE IS SHAKEN IN FUROR OVER ITS PRESIDENT

LEAD: The Yankees and the Mets took on a State Senator today and won.

BILL TO LIMIT ALCOHOL AT NEW YORK ARENAS FAILS AGAIN TO SCORE

LEAD: The stock market moved higher into record territory yesterday, as the Dow Jones industrial average gained 24.66 points, to 2,445.51.

DOW ADDS TO STRING OF GAINS

LEAD: The New York financier Asher B. Edelman and Dominion Textile Inc. suffered a crushing setback yesterday that virtually assured the end of their three-month campaign to take over Burlington Industries.

EDELMAN BID HURT BADLY BY 3 BURLINGTON RULINGS

LEAD: Fred Astaire, whose flashing feet and limber legs not only made him America's most popular dancer but also set standards for motion picture musical comedies that have rarely been met and never exceeded, died of pneumonia yesterday at Century City Hospital in Los Angeles. He was 88 years old.

June 23, 1987

Headlines from June 23, 1987

WALDEN SCHOOL, AT 73, FILES FOR BANKRUPTCY

BUSINESS DIGEST: TUESDAY, JUNE 23, 1987

GRAND JURIES: ACQUITTALS SET OFF CRITICISM

RESEARCH IN SPACE FALLS FURTHER BEHIND, AND SCIENTISTS ARE ALARMED

A SHIFT IN DIRECTION AT PROCTOR

Billboard 200

The Joshua Tree

Whitesnake

Girls; Girls; Girls

Slippery When Wet

Look What The Cat Dragged In

Notable Births

Historical Context for June 23, 1987