LEAD: Corporations continued to find the bond market a rich field for raising money in the second quarter, but investor apprehension limited their ability to find new equity capital.

Debt Sales Climb in Quarter But Stock Offerings Slump

LEAD: In a ceremony filled with cornet flourishes and angry sermons, Archbishop Marcel Lefebvre brought about the first major schism in the Roman Catholic Church in more than a century today when he consecrated four bishops in defiance of the Pope's orders.

REBEL ARCHBISHOP ANOINTS 4 BISHOPS

LEAD: With a mayoral election 16 months away, only about a third of New Yorkers now say they have a favorable opinion of Mayor Koch, according to a New York Times/WCBS-TV News Poll.

Koch's Favorable Rating Falls To 36% in Poll of New Yorkers

LEAD: The American Medical Association, breaking with the centuries-old tradition of confidentiality, today strongly urged physicians to warn the sexual partners of patients found to carry the AIDS virus if there was no other way to alert them to the danger.

A.M.A. Urges Breach of Privacy To Warn Potential AIDS Victims

LEAD: Three young men were convicted yesterday of the shotgun slaying of a Queens grand jury witness in a case that raised public fears about the security of witnesses.

3 Are Guilty in Slaying of Grand Jury Witness

LEAD: Soybean, grain, sugar and cotton prices rebounded yesterday as forecasters warned that the Midwest faced a new siege of hot and dry weather.

Dry Forecast Drives Up Farm Futures

LEAD: Federal investigators asserted that they had overheard a Navy procurement official read bid information from contractors to a private consultant, according to Federal court documents unsealed today.

Tale Behind Search Warrant: Pentagon Data Believed Sold

LEAD: That strange hybrid of politics and entertainment, the televised political drama, made its explosive debut here this week, bringing with it spontaneity, name calling, rapid-fire dialogue and the oddly American phenomenon of pop political stardom.

Reporter's Notebook; Watching Party Meeting, Russians Are Wide-Eyed

LEAD:  Inside Coca-Cola  The world's best-selling soft drink is flavored with a non-narcotic extract from coca, the plant from which cocaine is derived. Page D1.  U.S. 'Debtor' Status Grows  The stake held by foreigners in the United States has risen sharply. The trend could eventually hurt Americans' standard of living.

INSIDE

BUSINESS DIGEST

LEAD: Three Queens homeowners were convicted yesterday evening of setting fire to an unoccupied house on their block to keep New York City from using it to shelter foster-care infants.

3 Convicted of Setting Fire To Home for Foster Babies

LEAD: Nine-year-old Timmy Brophy knew the Baseball Hall of Fame was going to be pretty great, but he didn't think it would be this great. ''Ma, look,'' he said. ''Babe Ruth's bowling ball!'' It was breathtaking.

Our Towns; At Cooperstown, So Many Greats, So Little Time

LEAD: The Independence Day holiday will be observed on Monday. Following are holiday schedules.  NEW YORK  Fireworks: East River, 9:15 P.M., between East 23d and East 46th Streets.  Government offices: Closed.  Post offices: Express Mail and special delivery only; main post office open at 33d Street and Eighth Avenue.

Holiday on Monday

LEAD: For years people have speculated about the secret formula of Coca-Cola, and the ingredients its contains. The formula has been locked in a bank vault, and only a few executives can see it.

How Coca-Cola Obtains Its Coca

LEAD: The dollar continued to show strength yesterday, rising slightly against the yen while dipping only a bit against the West German mark.

Dollar Still Showing Strength

LEAD: Hours after the disclosure today that three White House guards had been suspended for suspected off-duty use of cocaine, the White House announced a random drug-testing program for employees of the Executive Office of the President.

White House Will Start Drug Tests For Employees of Executive Office

LEAD: A delegate to a national Communist Party conference stunned the session today by calling for the dismissal of four senior party officials, including President Andrei A. Gromyko and the editor of the party newspaper Pravda.

SOVIET CONFERENCE HEARS MEMBER ASK GROMYKO'S OUSTER

LEAD: THANKS to the fortuitous timing of the Declaration of Independence 212 years ago, the United States celebrates its birthday at a time when warm weather turns most people's thoughts to the great outdoors. Even in New York City, where the outdoors is all too often assumed to be a crowded intersection or a forest of tall buildings, that more gentle and natural outdoors - of parks, rivers and beaches - will be the stage on which dozens of festive dramas will be played this holiday weekend.

Fiddles, Fireworks And Shakespeare For the Fourth

WEEKENDER GUIDE

LEAD: He arrived in his kitchen yesterday at 6 in the morning, as usual. He oversaw breakfast and worked on his special for the day, sea bass meuniere - a simple dish, he said. The fish was lightly smoked for 15 minutes, sauteed with clarified butter and touched up with a thin layer of butter, lemon juice and parsley.

St. Regis Checks Out For a Year

LEAD: By building factories in the Midwest, buying Manhattan office buildings and purchasing United States Treasury securities, foreigners raised their stake in the United States by $195.4 billion, to a record $1.54 trillion, last year.

Foreign Stake in U.S. Rose to Record in '87

LEAD: College-bound only a week ago, two Bronx youths were arraigned last night on attempted murder and other charges in what the police called a 45-minute crime spree by five prep-school classmates that ended in the death of one and possibly ruined lives for the others.

2 Arraigned In Fatal Spree In the Bronx

LEAD: In a dramatic capitulation to the bankers they battled in court for the last two years, the Hunt brothers of Texas today agreed to hand over a 50 percent stake in their Penrod Drilling Company, in addition to $50 million in cash, a $500 million note and real estate holdings.

Hunt Deal On Penrod Is Reached

LEAD: ''Packing the Supreme Court simply can't be done,'' said President Harry Truman, who had seen two of his four appointees join a 1952 decision striking down his broad claim of executive authority to seize the steel mills. ''I've tried it and it won't work.''

Re: Shaping the Court; Reagan Is Not the First President Thwarted By Unpredictability of Issues, and Minds

On Stage

Anderson Vital da Silva, commonly known as Dedé is a Brazilian footballer who plays as a centre back.

Dedé, Brazilian footballer

Dedé_(footballer,_born_1988)

Aleksander Leonidovich Lesun is a Belarusian-born naturalized Russian modern pentathlete. He is a multiple-time medalist at the World and European Championships, and was a top-ranked male modern pentathlete in the world by the Union Internationale de Pentathlon Moderne (UIPM).

July 1, 1988

Headlines from July 1, 1988

Debt Sales Climb in Quarter But Stock Offerings Slump

REBEL ARCHBISHOP ANOINTS 4 BISHOPS

Koch's Favorable Rating Falls To 36% in Poll of New Yorkers

A.M.A. Urges Breach of Privacy To Warn Potential AIDS Victims

3 Are Guilty in Slaying of Grand Jury Witness

Billboard 200

OU812

Faith

Hysteria

Dirty Dancing

Open Up And Say...Ahh!

Notable Births

Historical Context for July 1, 1988