October 16, 1996

Meat expert Merle Ellis explains differences in quality of meat available to consumers, and advises on finding best cuts; photos; diagram; says New York has held title of nation's steakhouse capital for century, because butchers and restaurants are willing to pay more for best cuts; tours well-known meat markets in city, selecting best 'prime' cuts of properly-aged beef (M)

Conrail to Merge With CSX,In Biggest Rail Deal Yet Conrail, the freight railroad that dominates the Northeast, said that it had agreed to merge with CSX, a far larger railroad that blankets the Southeast, Middle Atlantic and eastern Midwest. The $8.4 billion deal would be the biggest since the industry was deregulated in the 1980's, and it would leave most of the nation east of the Mississippi with just two big freight railroads. $(Page A1.$) Texas Instruments Earnings Fall Texas Instruments had lower earnings, indicating the continued uneven performance of the semiconductor industry. $(D2.$) Berkshire Hathaway in Acquisition Berkshire Hathaway agreed to acquire Flightsafety International, the leading pilot training company, for about $1.5 billion. $(D4.$) Chase Manhattan and Citicorp Gain Chase Manhattan, with a 12 percent earnings gain, and Citicorp, with a 7 percent rise, led a string of banking companies that reported solid results. $(D4.$) Stocks Mixed on Earnings Concerns Stocks closed mixed after touching records, as investors began questioning whether share prices already reflected a rosy outlook for profits. The Dow Jones industrial average fell 5.22 points, to 6,004.78. $(D12.$) Prices of Treasury securities ended mixed, as traders awaited inflation data. The yield on the 30-year bond was unchanged. $(D22.$) Strong Earnings on Wall Street The good fortune of robust stock and bond markets showed up again in sharply higher third-quarter earnings at Merrill Lynch and Donaldson, Lufkin & Jenrette and a modest increase at Paine Webber. $(D10.$) Netscape Aims at Lotus Netscape's strategy for survival and growth in the market for Internet software will be to try to sidestep Microsoft and compete directly against I.B.M.'s Lotus unit in the market for so-called groupware. $(D2.$) Coke and Pepsi Duel Over Earnings The eternal rivalry between Pepsi and Coke flared again as they posted quarterly earnings reports on the same day for the first time in at least 20 years. Some said Coca-Cola was trying to steal Pepsico's thunder, but both had disappointing results. Though its earnings rose, Coke had falling beverage volumes and $455 million in one-time provisions, while at Pepsi, net income declined 77 percent. Market Place. $(D12.$) Layoffs Statistics to Be Revised Acknowledging a flaw in a key statistic, the Labor Department said that it would revise upward its tabulation of the number of layoffs in the mid-1990's. $(D5.$) Trader Pleads Guilty to Fraud A securities trader whose stock market bets caused a group of college endowments to lose $137.6 million will plead guilty to fraud and pay $182,000 to settle civil actions. $(D8.$) Editors Demand Independence The professional association of magazine editors announced a pointed policy to preserve editorial independence. $(D11.$)

California's plan to cut off prenatal care to illegal immigrants under new Federal welfare law causes pregnant women to vanish from health clinics; public-health officials predict they will eventually turn up in emergency rooms and neonatal intensive-care units, at far greater cost to public; say in addition to humanitarian and clinical considerations, it is extremely prudent financial decision not to let any go without adequate prenatal care; say they may be forced to either carve new resources for illegal immigrants from emaciated county health budgets or do nothing for women, knowing that state and Federal agencies will continue to cover costs of patients' emergency care; lawyers for coalition of civil rights groups file for restraining order, trying to stop cutoff of funds by state on grounds that doing so would violate earlier Federal court ruling and California Constitution; chart; photo (M)

New York City law intended to restrict X-rated businesses takes effect in just over one week, but most of city's 180 adult-entertainment establishments are making no plans to move or close; most of them have joined New York Civil Liberties Union in lawsuit to block law, arguing that it violates constitutional guarantees of free speech and unlawfully restricts access to their wares; photo (M)

With the second campaign debate scheduled for 9 P.M. Eastern time tonight, President Clinton yesterday brushed aside Bob Dole's attacks on his ethics. Page A15.