December 31, 1991

At Salomon Brothers, what began as a housecleaning in the wake of the Treasury market scandal has evolved into a big renovation from the foundation up. At stake in the transformation of the firm into a leaner, more selective operation is its survival as a major force on Wall Street. No longer can the firm support pet strategies pushed by top executives that fail to bring in sufficient profits. Personal fiefs are breaking up, and every business group has to prove its worth to the firm -- steps some Salomon executives say are long overdue.

In an authoritative statement of policy, the Equal Employment Opportunity Commission declared today that the new civil rights law did not apply to thousands of cases filed by people who said they suffered job discrimination before the measure was signed by President Bush on Nov. 21. The ruling means that workers who filed complaints of discrimination before that date must try to prevail under the old rules, which made it much harder to prove discrimination and limited the compensation they could obtain if they won.

Best December Ever For Blue-Chip Stocks The stock market's year-end rally accelerated, with the Dow Jones industrial average surging 62.39 points to a new record of 3,163.91. The Dow has added 530.25 points this month, or 9.3 percent, making it the best December ever. Analysts again credited low interest rates. Page D1. Car Bomb Kills 20 in Beirut A powerful explosion caused by a car bomb ripped through a densely populated quarter of Beirut, killing 20 people and wounding 82. Page A10. Is Salt Really the Villain? For many, too much sodium may not be the culprit in high blood pressure. The new suspect: too little calcium. Science Times, page C1. Bias in Alabama Colleges A Federal judge said Alabama must take extensive measures to eradicate racial discrimination in its state university system. Page A12. Minor Party Enters Majors Lenora Fulani wins election money and attention for her multimillion-dollar New Alliance Party. Page A16. Money Movers Who Lost Top financial figures, from John Gutfreund to John Reed, had difficult times in 1991. Page D5.

Mayor David N. Dinkins, confronting growing budget deficits and a lingering recession as he nears the midpoint of his term, will use his State of the City address Thursday night to announce several measures to invigorate New York City's ailing local economy. Speaking to a city troubled by economic stagnation, Mr. Dinkins will focus on actions his government can take to stimulate the private sector, like speeding payments to companies that do business with the city, relaxing licensing rules and pushing some capital projects ahead of schedule, mayoral aides said.

METRO DIGEST STAMPEDE AT CITY COLLEGE CELEBRITY GAME CALLED OVERSOLD As many as 5,000 tickets were sold for the celebrity basketball game at City College on Saturday night, officials said -- nearly twice the number of seats in the gymnasium where the game was held. Yesterday was a day for blame and fury, but few answers as evidence mounted that the eight deaths and the many injuries could have been avoided. A1. STUDENTS RAN EVENTS ON THEIR OWN City College officials said that students had been allowed virtually a free hand in running their own activities, even events as potentially perilous as Saturday's game. B4. CROWD CONTROL MEASURES CRITICIZED Security experts and rap music promoters said that the way everything from guards to two-way radios was handled at City College was a recipe for disaster. B4. NEW YORK CITY AGREEMENT NEARS ON FARE INCREASE An agreement to raise the New York City subway and bus fare to $1.25 from the current $1.15 appeared at hand after a flurry of last-minute phone conversations between transit officials, Republican state senators and the Cuomo and Dinkins administrations. A1. DAILY NEWS HAS PLENTY OF CASH The paper's executives told unions and creditors that $8 million in annual expenses had been cut and it was in no immediate danger of running out of money. B3. PRINCIPAL SELECTION QUESTIONED IN BRONX The Schools Chancellor ordered a Bronx school district with a history of corruption to postpone the appointment of seven principals. B3. For selling papers, English helps, but a little Serbo-Croatian doesn't hurt. B3. REGION SOUL SEARCHING IN PLASTICS BAN After years of litigation and more recent pangs of self-doubt, Suffolk County is finally putting into effect a landmark law banning plastic bags and take-out containers in food stores and restaurants. When the law was passed in 1988, the idea was that cardboard and paper were better for the environment. Now even environmentalists are not so sure. A1. NANNY CHARGED IN DEATH RELEASED The Swiss nanny charged with arson and murder in the death of a baby in Valhalla, N.Y., was released from jail after her parents posted her $350,000 bail. B5. REPUTED DRUG KINGPIN DEAD IN JAIL A 21-year-old man who officials said controlled cocaine trafficking in Elizabeth, N.J., was found hanged on Sunday in the Union County Jail. B5. NO AID FOR STORM DAMAGE TO COAST New Jersey was denied a request for $23 million in Federal disaster aid to pay for damage from a storm on Oct. 31, Gov. Jim Florio said. B5. Fire destroys New Rochelle businesses. B5 A politically correct answer to unwanted guests. Our Towns. B5. Owner of Long Island pet cemetery committed to psychiatric hospital. B6. Neediest Cases B3 Holiday Schedules B6