September 28, 1990

LEAD: A Federal District Judge postponed the sentencing of Michael R. Milken yesterday to allow for a possible hearing on Government allegations of crimes the former financier has said he did not commit.

LEAD: A combative Neil Bush today finally confronted his Federal accusers, and he acknowledged that he stood to gain from financial transactions he had supported between his business partners and the Silverado Banking, Savings and Loan Association.

LEAD: When people here go to vote for a new governor in November, local nightmares like the Alamo are likely to follow them right into the booth. The Alamo is what residents call the pink Southwestern-motif shopping center on Route 111 that belly-flopped in the Northeast's real-estate downturn. It has sat empty, apparently with no survivors, for the last 18 months.

LEAD: Like the owners of many small businesses, Wequar Azeem spent the last two years cultivating his video-rental store's clientele and postponing profits while counting on this year to be his payoff. But his third year in business has seen sales plummet 35 percent, so Mr. Azeem is looking for part-time work to make ends meet and trying to sell his store, Trade Winds

LEAD: Setting the stage for confirmation of President Bush's first nominee to the Supreme Court, the Senate Judiciary Committee today overwhelmingly endorsed the nomination of Judge David H. Souter as an Associate Justice.