July 18, 1991

The new Chemical Bank will have one of the largest portfolios of real estate loans in the nation and with it some equally big problems. Even before the proposed merger with Manufacturers Hanover, Chemical Bank's hefty commercial real estate loans totaled $6.7 billion, with $1 billion of that delinquent and $544 million in foreclosed property. With the Manufacturers Hanover Corporation now about to kick in its own $3.5 billion of commercial property loans, $385 million of which is delinquent, executives in the real estate department of the new Chemical Banking Corporation have a total of $1.385 billion worth of troubled loans.

The televised speech by Gov. Lowell P. Weicker Jr. on Tuesday night about the state budget crisis drew almost as many viewers as would typically watch "Entertainment Tonight," "Jeopardy" and "Hard Copy" combined, local television programmers said. It was a clear success in the ratings. But the Governor's call for state residents to rise up and yell for the income tax, and thus avoid the no-income-tax budget being considered by the legislature, appeared to strike an ambivalent chord, at best.

The Justice Department official considering New York's new City Council map said today that he had "some problems" with the redistricting plan because it might not adequately protect the voting rights of the city's Hispanic residents. The redistricting plan is the keystone of New York's effort to make its government better reflect the city's growing diversity. It is subject to Justice Department approval under the Federal Voting Rights Act. An objection by the department would throw into doubt the elections for the new and expanded Council, scheduled for the fall.

The Economy Builders broke ground for new houses and apartments at an annual rate of 1,040,000 during June, the third straight increase and the first million-plus month since November, the Census Bureau said. The 5.2 percent advance included a sharp rebound in the Northeast with the West showing a decline. [ Page D1. ] Consumer prices rose two-tenths of 1 percent in June. A drop in energy costs helped offset a gain in fruit and vegetable prices. [ D10. ] With the economic recession, oil demand was 4.1 percent lower for the first half of this year than in the 1990 period, the American Petroleum Institute reported. [ D1. ] Industrial corporations are trying to force cities and small private businesses to share the costs of cleaning up landfills. [ A14. ] A $66 million settlement with A.T.&.T. for 13,000 employees who suffered job discrimination during pregnancy was announced by the Equal Employment Opportunity Commission. [ A16. ] International The Group of Seven pledged to provide technical expertise, but no major financial aid to the Soviet Union. [ A1. ] A question has been raised about whether B.C.C.I. can continue to be represented by Patton, Boggs & Blow. [ D2. ] Companies Apple Computer had higher revenues but a net loss for its third fiscal quarter. Intel reported record revenues. [ D1. ] Bristol-Myers Squibb profit rose 17.3 percent and Warner-Lambert and Schering-Plough also had gains. [ D1. ] Industrial companies continued to report generally depressed second-quarter earnings. Most of them cited the effects of the recession as the primary cause. [ D5. ] General Dynamics and Northrop reported higher profits for the quarter. [ D8. ] Earnings of the the parent of American Airlines plunged 92 percent. [ D9. ] Coca-Cola's profit rose 17.7 percent. [ D5. ] Profits at United Telecommunications more than doubled. [ D18. ] Bank earnings are generally down, hurt by the need to set aside money for future bad loans. FleetNorstar Financial and C&S/Sovran reported drops for the quarter. [ D8. ] Pan American World Airways failed to agree with United Airlines over the sale of Latin American and Caribbean routes. [ D9. ] Citicorp's chairman, John S. Reed, said it was possible that the merger trend among large regional banking companies would eventually knock Citicorp from its No. 1 position. [ D8. ] Genentech said its market share for drugs used to treat heart attacks dropped to 53 percent in the second quarter. [ D10. ] Orion Pictures said it might be forced to seek bankruptcy protection if it cannot raise new funds by the end of August. [ D21. ] Markets The Dow closed at 2,978.76, down 5.14. Big Board trading rose to 195.5 million shares, the highest since May 31. [ D12. ] . An improvement in the housing industry prompted credit market participants to sell Treasury notes and bonds. [ D18. ] Yields were mixed on money market funds. [ D11. ] The dollar fell slightly. [ D19. ] The price of oil jumped to its highest level since the final days of the gulf war. [ D19. ] Today's Columns Since early 1990, the RF&P Corporation has been at the center of negotations that have included budget politics in Virginia and the role of the state's public pension fund. Talking Deals. [ D2. ] Individual investors and corporate treasurers may benefit by studying options price movements. Market Place. [ D12. ] Can a respected, and respectable, account executive who dresses like an investment banker find happiness as the new president of a controversial agency? Stuart Elliott: Advertising. [ D21. ]

In windowless rooms here, jammed with personal computers and young programamers and littered with empty soda cans, I.B.M. is trying to prove that a giant company can produce software to match the best programs crafted by the wizards of Silicon Valley. Writing brilliant software is still more art than science, best done by quirky and obsessive hackers willing to immerse themselves in thorny problems for months at a stretch. Until now the world's largest computer maker has taken its usual regimented approach, sending out battalions of programmers to conquer problems with heavy artillery instead of a few rifle shots.