June 30, 1992

Six months after Hertz imposed surcharges of as much as $56 a day on car rentals in the metropolitan region by New York City residents, Avis said yesterday that it would raise its rates in the area by 25 percent now and perhaps 25 percent more in the coming months. Avis also said it would cut back on the number of cars it rents in the area. The reason, Avis said, is the failure of the State Legislature to change a legal doctrine -- known as vicarious liability -- that makes car rental companies liable when renters cause injuries to pedestrians or other drivers.

Financial markets surged today on the eve of a Federal Reserve Board meeting as investors bet that the Fed would soon reduce interest rates -- just as President Bush called for last week. But many Fed watchers said Mr. Bush's call for lower rates could end up delaying a rate cut because the Fed cannot be seen as bowing to political pressure. They say a Fed that is viewed as responding to the White House might lead investors to question the central bank's commitment to fighting inflation. That could push up the long-term rates that are crucial to home-building and capital investment, defeating efforts to help the economy by lowering rates.

More Americans will be traveling this summer than at any time in recent years, barring prolonged bad weather, a steep rise in gasoline prices or some other unexpected calamity. At beach resorts, national parks and big cities across the nation, hotels and rental car companies are bracing for a robust summer, starting with the Fourth of July weekend and running through Labor Day.

Three Newark police officers were charged today with conspiring to cover up their actions in connection with the shooting of Howard Caesar, a 17-year-old who the police say was driving a stolen car. Criminal complaints charging the officers with official misconduct were announced by James F. Mulvihill, the Acting Essex County Prosecutor. He said the three officers were in West Side Park on June 9 near where the shot was fired that hit Mr. Caesar. Mr. Mulvihill said the three officers failed to report the incident in violation of their legal duty, and at least two of them filed false reports saying they were somewhere else at the time.

BY midday the temperature at the desert's surface has climbed to 140 degrees. As far as the eye can see to the shimmering horizon at the desert's edges, there is not even the tiniest patch of shade. A few animals that have strayed too far from their underground shelters collapse from exhaustion under the Saharan sun. Just as every other creature has taken refuge from the impossible heat, hundreds of Saharan silver ants burst out of their nest hole into the blazing noonday sun. It's time to go a-hunting.