December 18, 1996

Paul Chernick, manager of Council of Jewish Organizations of Borough Park, is charged with conspiring to steal more than $600,000 in government money that had been awarded to Brooklyn social services group; Chernick and other officials of nonprofit group are also charged with diverting $15,000 to public official, reportedly Assemblyman Dov Hikind; Hikind is not charged and it is not clear that his receipt of money was illegal; criminal charges stem from Federal and state probe of organization, which aids job training, local businesses and immigrants; Hikind and Sen Alfonse D'Amato are major political benefactors; ties between Hikind's campaigns and COJO also noted (M)

Hundreds of police and Federal law enforcement raid South Bronx tenements, arresting 61 people and dismantling 12 violent drug gangs; 35 people were arrested earlier in three-month effort to break up criminal network and reclaim Jose de Diego-Beekman Houses, renovated tenement complex that has become headquarters for heroin and crack dealers; Police Comr Howard Safir says gangs stole about $100,000 worth of drugs a day and were responsible for at least 18 murders since 1989; police also close down several drug-related businesses; HUD official says operation was also aimed at protecting taxpayers' investment in renovated housing (M)

Brooke Astor, 94, says she plans to close Vincent Astor foundation and give away its remaining $25 million by end of 1997, interview; foundation has donated $175 million in New York City, with Astor actively involved in process; table; photo (M)

Federal Reserve votes to leave interest rates unchanged, concluding that inflation remains dormant despite sporadic surges in economic activity; Fed's decision was widely anticipated among economists and in financial markets; Commerce Dept reports that construction of housing jumped sharply higher last month, suggesting that economic growth could be picking up again in fourth quarter after cooling down substantially over summer; graph (M)

Wall Street firms, flush once again, at least for now, are indulging themselves with expensive Christmas parties; menu at $250-a-person party catered by Glorious Foods; list of $40,000 worth of flowers gracing tables at Windows of the World; photos; Jim Natoli, 28-year-old Armani-attired broker, enumerates other ways he and associates are spending money (M)

List of cookbooks appropriate as Christmas gifts; photos (M)

Men armed with automatic weapons break into guarded hospital compound, Novye Atagi, Chechnya, and shoot six International Red Cross workers, including four nurses, to death; one critically wounded survivor is evacuated; incident threatens fragile Chechen peace effort and future of international aid; Red Cross evacuates all remaining foreign employees from Chechnya and suspends all aid programs, as do few other aid groups still in Chechnya; it is not clear whether attack is politically motivated or effort to extort money; map; photo (M)

Louis Uchitelle analyzes expanding debate over accuracy of Consumer Price Index; controversy was set off when blue-ribbon panel of economists, appointed by Congress, released their report; panel, led by Michael A Boskin, Pres Bush's chief economic adviser, concludes that CPI exaggerates rate of inflation by slightly more than one percentage point a year; these economists contend that CPI, by failing to account for some improvements in quality of goods and services, overstates growth in cost of living; defenders of current way of measuring price changes--group that includes representatives of elderly, labor unions and number of economists as well--contend that any such error is much smaller; photos (L)

Three students and two other youths are charged in wave of arson at East Side High School in Newark; school has been evacuated more than 70 times this school year because of trash fires (New Jersey Daily Briefings) (S)

Dow Up 39.98 Points As I.B.M. Rises Stocks rose as the Federal Reserve left interest rates unchanged. I.B.M. climbed sharply, recouping some of its losses from a selloff in computer-related shares that began last week and giving impetus to the Dow industrials, which finished up 39.98 points, at 6,308.33. Though the broader market did not do as well as the blue chips -- declining issues led advancers on the New York Stock Exchange -- the Nasdaq composite managed to rise 5.34 points, closing at 1,266.32. $(Page D8.$) The Frontier Corporation, stung by the loss of a big wholesale customer, warned analysts that its long-distance telephone revenue would be well below analysts' expectations. Its shares tumbled 21 percent in heavy trading. $(D5.$) The prices of Treasury securities fell following a November housing report that was stronger than expected. The 30-year bond yield rose to 6.65 percent from 6.62 percent. $(D18.$) Conrail Shareholder Vote Ordered A judge ordered Conrail to let shareholders vote on a crucial aspect of its $8.5 billion deal to merge with CSX. A group of investors questioned the merger's fairness. $(D2.$) Deadline Near in Prudential Case The last opportunity for policyholders of Prudential Insurance to battle the company on their own over whether they were cheated by agents is this week. A lawyer said that by last week, about 9,000 policyholders had declared that they were opting out of a class-action settlement, not nearly enough for the company to withdraw from the settlement. $(D4.$) LVMH Proceeding With DFS Deal LVMH Moet-Hennessy Louis Vuitton, one of the world's leading purveyors of high-priced perfume, liquor and other luxury goods, won the go-ahead for its $2.47 billion deal for a controlling interest in the DFS Group, a chain of duty-free shops that sells its wares. $(D2.$) American Home Products in Deal American Home Products said that it was exercising an option to buy 40 percent of Genetics Institute that it does not already own for about $1 billion. Last week an F.D.A. panel recommended approval of Genetics' blood clotting treatment for hemophilia B. $(D4.$) Goldman, Sachs Profits Surge Goldman, Sachs said that its pretax earnings rose 69 percent in the fiscal fourth quarter, to $743 million. Thanks to a boom in underwritings and mergers, Wall Street is on track for record profits this year. $(D2.$) With the lean times apparently over for now, employees on Wall Street are not just busy making deals. They are partying, too. The champagne is flowing at rates not seen since the 80's, and the current wave of consumption is no less lavish. But it is intricately choreographed to seem less conspicuous. $(B1.$) F.T.C. Clears Ciba-Sandoz Merger The F.T.C. removed the last hurdle to the merger of Ciba-Geigy and Sandoz, after winning an agreement intended to insure competition in the development of gene therapy treatments. The companies also agreed to sell two businesses. $(D7.$) 2d Flu Shot Urged for Some Because 5.8 million of the 75 million doses of flu vaccine produced this season were not full strength, Federal health officials advised doctors to consider giving another shot to some people. The vaccine with some weakened doses was Fluogen, made by Warner Lambert's Parke-Davis division. $(A18.$) Going Public in a New Tokyo Market ATL Systems, a five-year-old Japanese software company that lost $230,000 on sales of $120,000 last year, went public in Tokyo, where its shares closed up 51 percent. It is the first company to use a new over-the-counter market for developing technology companies that want to go public. Market Place. $(D8.$) The 240Z, New for '97 Nissan has been buying up 240Z sports cars from the early 1970's, intending to sell them after they have been restored. Though the cars will lack amenities like air bags and cup holders, one thing about them will be updated for the 90's -- the price. Advertising. $(D6.$)

New York State Legislature approves bill to sharply curtail New York City school decentralization; bill strips city's 32 community school boards of power to choose superintendents and elementary and junior high school principals and gives schools chancellor authority to hire superintendents, who will choose principals; school aides say bill will insure that principals and superintendents are accountable to chancellor, not to local political leaders; Assembly approves bill, 127-14; Senate approves it, 47-9; table; photos (M)

Few dozen corporate employees who commute to Morristown, Princeton Junction or Woodcrest by train will be able to drive electric cars from station to their suburban offices under pilot program involving state and Solectria Corp (New Jersey Daily Briefings) (S)