October 25, 1991

In a surprising and controversial move to promote cable television competition, the Federal Communications Commission proposed today that local telephone companies be allowed to package and transmit television programming. The proposed rules, which were unanimously endorsed in a 5 to 0 vote, are likely to be adopted by the commission within a year, after it asks for and receives public comment in preparation for a final vote.

A day after taking personal control of the Israeli delegation to next week's Middle East peace conference, Prime Minister Yitzhak Shamir said today that the Madrid talks offered hope for "revolutionary change" in the Middle East and that, while things could easily go wrong, "there are many chances for success." "It will be difficult," Mr. Shamir said in an interview. "It will be complicated. There will be many obstacles in these negotiations, maybe many crises. But we have to begin because one thing is clear: Without negotiations, we will never get peace. Emphasizing the Potential "So far," he said, "our situation is characterized by a hostile attitude of all the Arab countries except Egypt, and we want to change it. It could be a revolutionary change."

The American Express Company, reeling from recession-induced problems in its charge- and credit-card businesses, said yesterday that its earnings for the third quarter plunged by nearly 91 percent, to $31 million, or 5 cents a share. The company added that the problems were likely to continue into the fourth quarter, when earnings might drop by as much as 45 percent. The quarterly earnings performance, worse than the company had predicted only three weeks earlier, reflects the disproportionately large effect of the recession on American Express's white-collar customers. World Travel Off It also reflects a drop in lucrative international air travel because of the Persian Gulf war, as well as American Express's own mistakes in dealing with the widening consumer debt crisis, especially in the company's ambitious Optima credit-card program. The company is investigating why the operation faltered, reporting better results than were warranted.

Furor Over 'Suicide Doctor' Michigan officials threatened to act against Dr. Jack Kevorkian, who assisted in the suicide of a woman last year and two Wednesday. Page A10. Jobless Claims Mount New applications for unemployment benefits rose 6.8 percent, to 452,000, in the second week of October, the highest level since May. Page D1. Braves Hold Upper Hand The Atlanta Braves trounced the Twins, 14-5, and will carry a 3-2 lead into Minnesota tomorrow night with a chance to wrap up their first World Series title. Page B7. Gray Days for Bomber Already under attack in Congress, the Stealth bomber is losing support in the White House, Congressional and Pentagon officials said. Page A16.

Dr. J. Emilio Carrillo, who resigned this week as head of New York City's hospital system, said yesterday that he was a victim of "targeted assassination" by City Hall officials. "They have smeared me," he said, accusing City Hall of orchestrating a series of damaging disclosures. "These leaks constitute a witch hunt."