March 31, 1995

If directors of W. R. Grace & Company thought they were putting the past behind them when they released a cryptic statement announcing the unexpected resignation of J. P. Bolduc, the chief executive, on March 2, they have had a rude awakening. Yesterday, the company was forced to admit that Mr. Bolduc was let go after longstanding allegations of sexual harassment had come to the attention of the board. With that, what was already one of the most bizarre corporate dramas in memory got worse. Grace now must answer questions about its past management practices, its future leadership, its legal liabilities, the candor of its directors and its ability to satisfy the powerful institutional investors who hold the bulk of its stock.

A new rail transfer station here designed to cut travel time for commuters to New York City will receive $101 million in Federal money. Supporters say the station will save riders of the Bergen and Main lines 30 minutes going to and from Manhattan.

Fire Department officials said yesterday that the blaze that destroyed one of the two main commercial buildings at the Fulton Fish Market on Wednesday had been deliberately set. And they described the noontime arson as a crude but ambitious act: the floor of a hallway in the building was soaked with a flammable liquid, and the structure's entire sprinkler system was intentionally shut off. "I don't know if we can characterize it as professional," said Howard Safir, the New York City Fire Commissioner. "But it was very effective."

Six men were under arrest yesterday in the fatal shooting of an unarmed, off-duty prison guard earlier this month. The guard was caught in the crossfire of a gang shootout as he tried to break up a fistfight.

To friends and Montclair neighbors, Earl Bethel was a model citizen, a 19-year-old college student who had never been in trouble. Then he was arrested earlier this month on charges of shooting a West Caldwell woman and stealing her car. Now he has been charged with a second carjacking and shooting that took place last year outside a Union go-go bar. The police said the female employee he tried to shoot escaped by ramming his car. LAWRENCE VAN GELDER