November 6, 1990

The Economy The world's airlines agreed to seek fare increases of up to 8 percent on international flights. The carriers said the higher fares, the second round of increases since the Persian Gulf crisis began, are needed to cope with higher fuel costs. [ Page D1. ] Sales of U.S.-built cars and trucks rose 8.6 percent in late October, compared with soft sales in the period last year. [ D6. ] Car dealers that bet on the Japanese push into the luxury-car market are winning big. [ D1. ] Companies General Cinema said its deal to acquire the Neiman Marcus shares it does not already own collapsed after part of the Neiman Marcus board withdrew its support. [ D1. ] Equitable Real Estate Investment Management is grappling with rising withdrawals of pension money from its managed funds and, like others in the industry, faces growing delinquency rates in its mortgage portfolio. [ D1. ] A recent Volvo ad was a phony, the company admits in ads running in several newspapers today. The admission is part of a settlement of a lawsuit bought by the Attorney General of Texas. [ D1. ] The performance of NEC's newest SX-3 supercomputer far outstrips its nearest American and Japanese competitors for speeds attained by a single processor system, one expert says. [ D4. ] Sun Microsystems introduced a new family of powerful computer work stations with an improved ability to draw and move images around on the screen. [ D4. ] Businessland reported that it lost $19.9 million for the quarter, on $308.9 million in sales. [ D4. ] Prudential-Bache will settle charges stemming from a series of cases under investigation by the New York Stock Exchange, according to an internal memorandum from the firm. [ D14. ] The S.E.C. charged a former Smith Barney broker with insider trading based on information in Business Week. [ D17. ] The editor of The Daily News, struggling to fill vital newsroom jobs, began telephoning minority journalists' groups to ask their help in recruiting permanent replacements. [ B4. ] MCI and British Telecom said they would build a high-capacity telephone cable under the Atlantic. [ D4. ] International Unless the European Community immediately presents proposals for cutting farm subsidies, the entire four-year round of world trade talks may be in jeopardy, a group of leading farm trading nations said. [ D2. ] Markets Oil prices dropped $2.04, to $31.96, as traders' fear of normal supplies began to overpower the fear of war. [ D1. ] Stocks rose for the third straight session but trading activity lagged. The Dow tacked on 11.39, to 2,502.23. [ D8. ] A Citicorp downgrade helped keep the credit market rally alive, as prices of Treasury securities rose and interest rates fell. [ D15. ] The dollar fell sharply, reaching record lows against the mark and the Swiss franc. [ D16. ] Soybean futures prices sagged to three-month lows amid disappointment over export sales. [ D16. ] Today's Columns Medicaid changes voted by Congress are expected to cost drug makers at least $3.4 billion over five years in rebates. Milt Freudenheim: Business and Health. [ D2. ] For Coast Savings of California, the next few quarters will be crucial. Market Place. [ D8. ] Goldstar has begun a campaign, estimated to cost $15 million, telling people it understands the frustration of not being able to program a VCR. Kim Foltz: Advertising. [ D17. ]

Today, when the recovering mentally ill leave a hospital, they can go to modern group homes financed by the state and supervised by trained social workers. Twenty years ago, when mental hospitals were being emptied on a large scale, few such humane places existed. About the only option here was family-care homes, small licensed boardinghouses run by people with little training. Family-care homes are now considered outmoded; Connecticut may soon close them. But 24 continue to operate, and recent state hearings offer a glimpse into how the mentally ill were routinely treated in the not-too-distant past and in some cases still are. The state is seeking to revoke the license of Mildred Jack, who has run a family-care home for a decade. Mrs. Jack has no special training; she has only a 10th-grade education. This is one of many ways that she earns a living; she also sells Shaklee vitamins and delivers newspapers.

Envoy in Spy Case Is Out The United States dismissed Felix S. Bloch, the diplomat long under investigation for spying but, for lack of evidence, not charged. Page A3. Global Air Fares to Rise The world's airlines agreed to raise international fares as much as 8 percent in the second round of increases since the Kuwait invasion. Page D1. Loopholes in Gun Laws Despite some of the nation's strictest gun laws, New York City has not been able to stop the tide of weapons entering the city. Page B1. New Diet Recommendations The Government issued new dietary guidelines for Americans suggesting specific limits on fat and alcohol consumption. Page C9. News's New Man Learns A Florida editor, called on to fill in as a reporter for the strikebound Daily News is enduring $10 Cokes and other New York niceties. Page B4. Vying for the Kremlin Cup First-class men's professional tennis came to the Soviet Union for the first time with the opening of a $330,000 tournament in Moscow. Page D21.

Rabbi Meir Kahane, the founder of the Jewish Defense League and leader of a militant anti-Arab fringe movement in Israel, was assassinated last night by a gunman during a Zionist conference at a hotel in midtown Manhattan, the police said. The gunman was then shot and wounded by a police officer from the United States Postal Service as he fled the hotel shortly after 9 P.M. and tried to escape in a taxi, the city police said. They said a bystander in the hotel was also shot by the gunman.

The General Cinema Corporation said yesterday that its deal to acquire the shares of the Neiman Marcus Group it does not already own collapsed after part of the Neiman Marcus board withdrew its support. Company officials would not elaborate on the reasons the deal fell through, but analysts speculated that the fairness of the price was at issue. Several Neiman Marcus shareholders filed lawsuits asserting that the offer, to pay $14.40 a share, or $240 million, for 40 percent of the prestigious Dallas-based retailer, was too low. The analysts said General Cinema may return with a higher bid.