September 9, 1994

Henry R. Kravis and Leon D. Black -- two of Wall Street's biggest deal makers of the 1980's and former allies -- are locked in an increasingly noisy battle over a beleaguered company in which both men have big personal and financial stakes. At the center of their fight is Walter Industries, a Florida conglomerate that Kohlberg, Kravis, Roberts & Company bought in 1987 with the help of Mr. Black, then its investment banker. But two years later, Walter was forced into Chapter 11 bankruptcy proceedings by an avalanche of asbestos litigation.

Plans moved forward for a possible invasion of Haiti, with Pentagon officials telling lawmakers that seven cargo ships were being readied. While Democrats assured President Clinton that he would not need formal Congressional approval, top Republicans said he was only trying to improve his ratings. The timing and prospects remained uncertain. Article, page A8.

Ever since Henry Ford 2d stepped down 15 years ago from active management of the auto company that bears his family name, people inside and outside the Ford Motor Company have speculated about which member of the next generation would emerge as leader of the nation's most powerful industrial dynasty. "There are no crown princes," Henry once grumbled, dismissing the notion that a member of his family must control the company. But the Ford family effectively retains voting control of the auto maker -- indeed, hourly workers still refer to the company as "Ford's" -- and no one here has ever really believed that Mr. Ford meant what he said.

To car thieves with hot goods to sell, it looked like an auto leasing agency whose shady dealers were willing to pay cash for stolen BMW's, Acura Legends and other luxury models. Actually, it was an F.B.I. sting operation, and over the last two years it bought 120 stolen cars for a fraction of their value. It also kept track of the sellers -- mostly members of car-theft rings in New York, New Jersey and Connecticut -- people who scoffed at alarms, popped door and ignition locks like toys, easily defeated anti-theft devices like the Club and were willing to sell just-stolen $35,000 cars for $2,000, sometimes less.

The Economy Seeking to halt talk of a split at the top of the Federal Reserve, Alan S. Blinder, the Fed's vice chairman, took the unusual step of defending remarks, saying he does not differ with Alan Greenspan over monetary policy. [ Page D1. ]