June 29, 1994

For months, prosecutors had prepared for this day, first trying to avoid it entirely and then getting their young witness ready with a dress rehearsal in the courtroom and a luncheon with the judge. Today, 11-year-old Katie Beers, in a pink dress with a white lace collar, took the witness stand for nearly four hours, seated atop a large pillow and holding the hand of her therapist.

LIKE a benevolent urban stroller who has been confronted by one too many mendicants, restaurants and related businesses across the country are balking at the overwhelming number of requests they receive from charities for free meals and services. "It's absolutely out of control," said Jeremiah Tower, the celebrated chef and owner of Stars and Stars Cafe in San Francisco.

National Medical Enterprises Inc., one of the nation's largest psychiatric hospital chains, said today that it would plead guilty to paying kickbacks and bribes for referrals, even as a former executive admitted to arranging $20 million to $40 million in illegal payments -- and then scheming to get Medicare reimbursement. The company said it had agreed to pay $362.7 million and admit on Wednesday or Thursday to seven charges, in what would be the largest settlement ever between the Government and a health care provider.

A Bold Simpson Defense O. J. Simpson agreed to give a sample of hair for analysis, but his lawyers resisted prosecutors in virtually every other regard. Page A14. Defense Fund for Clintons President Clinton and his wife, Hillary, created a legal defense fund that allows contributions of up to $1,000 a year from any individual. Page A18. Health-Care Fraud Admitted A large psyciatric hospital chain said it would plead guilty to bribing doctors for referrals. Page D1. U.S. Gains; Russian Scores 5 The U.S., though idle, reached the second round of the World Cup. Oleg Salenko of Russia scored a record five goals in a victory over Cameroon. Page B7.

When it opened more than 200 years ago, City Tavern was Le Cirque of Philadelphia. Started by a group of 53 prominent investors, including Lieut. Gov. John Penn and several signers of the Declaration of Independence, it was decidedly clubby and, as John Adams wrote, created suppers "as elegant as was ever laid on a table." Some meetings of the Second Continental Congress were held there, as were more raucous gatherings where prodigious quantities of alcohol were consumed. Now, just in time for the Fourth of July, a refurbished City Tavern is reopening, in an incarnation that celebrates its history and the nation's food legacy. The restaurant opens to the public on June 30. On June 29 at noon, Mayor Edward G. Rendell will sit down to lunch with 60 city and business leaders. Had he been Mayor some 200 years ago, he might have done the same.