LEAD: The Irving Bank Corporation yesterday announced several changes in a friendly investment proposal from the Banca Commerciale Italiana of Milan as efforts to defeat a seven-month-old takeover bid from the Bank of New York Company continued.

Italian Offer To Irving Is Altered

INSIDE

LEAD: When Louis Duff handled the sale of Dunnellen Hall in 1974, he had a conversation with the seller, Lynda Dick, whose 46-year-old husband had died of a heart attack while being drive home by his chauffeur.

Helmsley Estate: Does It Bring Bad Luck?

LEAD: The gunmen who hijacked a Kuwait Airways jumbo jet were apparently allowed safe passage out of Algeria today under an agreement that freed the 31 remaining hostages and ended a 15-day siege.

Algeria Says Hijackers Won Deal Apparently Allowing Safe Retreat

LEAD: Gov. Michael S. Dukakis of Massachusetts, the eyes-straight-ahead political marathoner, is finally looking around this week and reveling in his position as the Democratic Party's likely nominee.

Victory's Rarefied Air Is Bracing for Dukakis

LEAD: Queens officials and residents said yesterday that a police report showing that the borough's murder rate, fueled by crack, has increased 25 percent for the second year in a row confirmed their worst fears: that drug violence is threatening the very stability of what has long been considered New York

Crime Totals Confirm Fears In Queens

LEAD: In the last six years nearly $10 billion has been poured into rebuilding New York City's subways and commuter railroads, and some of it has ended up here - in Deborah Bradley's corporate coffers.

Economic Ripples Felt As Subways Are Rebuilt

LEAD: Sweeping trade legislation, three years in the making, heads for a House vote Thursday and a Senate test Tuesday.

Bill on Trade Nears Votes In Congress

LEAD: Outside Edward R. Murrow High School in Brooklyn, the only hint that an election was taking place Tuesday was the man with the hat. He politely stopped passers-by to give out palm cards promoting the candidacy of Senator Albert Gore Jr. Inside the school, in the Midwood section, Max Sultan was complaining because his polling place had been shifted to the Murrow gymnasium from his apartment house a few blocks away.

Metro Matters; Campaign '88 Tired Souls And New Blood

LEAD: Federal disability and other benefits may be denied to most veterans disabled by alcoholism. Page A27.

Ruling on Alcoholic Veterans

LEAD: The harried management of Lord, Einstein, O'Neill & Partners landed a $20 million Saab account yesterday. That brings the fledgling agency's billings to about $60 million, according to Richard J. Lord, the chairman.

Lord, Einstein Gets Saab Account

LEAD: After three weeks of bruising partisan conflict, the New York State Legislature passed the final portion of the state's $44 billion budget today, but only after deferring decisions on virtually all of the controversial issues that had delayed the agreement.

Article 911288 -- No Title

LEAD: Paced by a record jump in the price of clothing, the Consumer Price Index climbed five-tenths of 1 percent in March, the biggest advance in 14 months, the Labor Department reported today.

CONSUMER PRICES IN NATION CLIMBED 0.5% LAST MONTH

LEAD: IN 1981 the Whirlpool Corporation started talking to its engineers about designing laundry appliances for older consumers. Their research turned up a truism known to almost anyone who has ever cursed a washing machine: most washers and dryers are in dimly lighted basements where instructions are difficult to read.

For the Aging And Disabled, Products They Can Use

LEAD: TWO striking new shops, Alaia and Yohji Yamamoto, have opened in SoHo in the last month and both are presenting fashion in singular surroundings.The image of each store is as important as the clothes in it.

Two New Stores Set a Style

LEAD: In a decision of potentially major importance to state and local governments and many taxpayers, the Supreme Court ruled today that Congress is free to tax all interest on state and local government bonds.

CONGRESS CAN TAX MUNICIPAL BONDS, HIGH COURT RULES

LEAD: Senator Albert Gore Jr., who is expected to announce the end of his active Presidential candidacy today, failed in his quest for the Democratic nomination because he became a prime contender and ceased to be one at almost the same moment in early March.

Gore Campaign: Fast End To a Lightning Beginning

LEAD: Officially taking the helm of the American Telephone and Telegraph Company, Robert E. Allen presided today over the company's annual meeting, where it announced a 10.6 percent rise in first-quarter earnings.

A.T.& T. Names Chairman And Posts 10.6% Profit Rise

LEAD: Since the development of the personal computer, the computer magazine business has undergone waves of consolidations, acquisitions and expansions. Now, analysts report, it has become a two-horse race between the International Data Group, based in Framingham, Mass., and the Ziff-Davis Publishing Company.

Two Giants in PC Publishing

LEAD:  THE ECONOMY  Congress can tax interest on state and local government bonds, the Supreme Court ruled. The Court held that the Constitution does not protect state and local governments from Federal taxation of the interest received by holders of their bonds.  [ Page A1. ]  The municipal bond market was momentarily thrown into confusion by the Supreme Court, but prices later recovered a bit.

BUSINESS DIGEST

LEAD: Frustrated and angry, many American doctors say a highly publicized new surgical treatment for Parkinson's disease has thus far proved to be a disappointment.

Parkinson Procedure: Fervor Turns to Disillusion

LEAD: A reputed Mafia figure was acquitted yesterday of the execution-style murder of a New York City police detective on a Queens street.

Man Cleared In the Killing Of a Detective

LEAD: Acting to redress what many Americans now regard as a historic injustice, the Senate today voted overwhelmingly to give $20,000 and an apology to each of the Japanese-Americans who were driven from their homes and sent to internment camps in World War II.

Senate Votes to Compensate Japanese-American Internees

LEAD: SHANE understood where he was going. A 2-year-old boy with downy blond hair and long eyelashes, he had endured months of hospitalization for a brain tumor. Seated in a stroller, with his arm connected to an intravenous pump four times his size, he stared from under his baseball cap down the hospital corridor toward the room where he was about to undergo ultrasound treatment.

In a Clown-Care Unit, the Rx Is Laughter

LEAD: SOMETIMES I think you can tell everything about my two children by watching them sleep at night. One lies flat on his back, the quilt tucked neatly under his armpits, his arms at his side, as though he were a child miming perfect sleep for an advertisement for cocoa or pajamas. No matter what time it is, you will find him so.

LIFE IN THE 30'S

Richard Berens is an American former competition swimmer, two-time Olympic gold medalist, world champion, and current world record-holder. As a member of the U.S. national team, he holds the world record in the 4×200-meter freestyle relay. He competed in the 4×100-meter and 4×200-meter freestyle relay events, as well as the individual 200-meter freestyle at the 2012 Summer Olympics.

Ricky Berens, American swimmer

Ricky_Berens

Jencarlos Canela is a Cuban-American actor and singer. Canela starred in the telenovela Mi corazón insiste en Lola Volcán, and two other telenovelas.

April 21, 1988

Headlines from April 21, 1988

Italian Offer To Irving Is Altered

INSIDE

Helmsley Estate: Does It Bring Bad Luck?

Algeria Says Hijackers Won Deal Apparently Allowing Safe Retreat

Victory's Rarefied Air Is Bracing for Dukakis

Billboard 200

Dirty Dancing

Bad

More Dirty Dancing

Faith

Kick

Notable Births

Historical Context for April 21, 1988