January 16, 1997

Columbia/HCA Healthcare Corp, nation's largest health care provider, adds to its expanding network of hospitals, clinics and managed-care operations by agreeing to buy Value Health Inc for $1.3 billion (L)

Second article in occasional series on New York City mayoral race discusses candidacy of Manhattan Borough Pres Ruth W Messinger; her command of issues is arguably better than that of any other Democratic candidate; Messinger, City Council member for 12 years and Borough President for 7 years, has strong network of supporters across ethnic lines who can be critical in raising money and getting out vote; she is associated with Democratic liberal wing at time when liberalism is increasingly on defensive; photo (M)

State Supreme Court Justice Herbert A Posner deals serious blow to Mayor Rudolph W Giuliani's effort to sell city's hospitals, ruling that such a sale would require change in state law, as well as extensive public review and approval of City Council; contends that state law creating city's Health and Hospitals Corp does not give agency power to sell or lease any city hospital; decision has practical effect of stalling deal to allow Primary Health Systems to run Coney Island Hospital (M)

Federal Aviation Administration will require changes in rudder controls of all 1,100 Boeing 737's in United States to prevent sudden rudder movement that is suspected of playing role in two unsolved airline crashes in last six years; Boeing says it suggested new rules and would provide hardware to airlines in US and abroad, where additional 1,600 of the 737's are flying; changes would take two to three years to carry out; additionally, Boeing says it will provide hardware and labor for voluntary change on 737's to determine whether crashes were due to pilot error: a sensor to measure how hard pilots were pressing on rudder pedals; voluntarily installing new circuitry to check on pilots is first for Boeing; officials of company and FAA insist that 737, world's most popular airliner, has excellent safety record despite two unexplained crashes (M)

Evelyn Nieves, in Our Towns column, notes that Peekskill's once decrepit business district has become thriving downtown artist district, with nearly 100 artists living or working there; says city recently received approval for $3.7 million state grant to construct 25 to 30 subsidized artists condominiums on what is now parking lot; quotes planning consultant Ralph DiBart (M)

Shaming penalties, judicially created public humiliations, are being introduced in courtrooms across country as alternatives to incarceration; they usually take form of mea culpa message to the community; they include having drunk drivers put special license plates on their cars, making convicted shoplifters take out advertisements in local newspapers with their photos, publicly identifying men convicted of soliciting prostitutes; proponents of shaming penalties say they address needs of public weary of crime, frustrated by failures of criminal justice system and yet unwilling to pay for prison expansion; critics say penalties have circus quality that blunts whatever rehabilitative function they may have and often cross line into ridicule; photo of front lawn of man convicted of assault, bearing sign warning that 'violent felon lives here' (M)

Interview with Lillian Vernon, doyenne of direct-mail marketeers, who started Lillian Vernon Corp as cottage industry in 1951; company currently fills 4.9 million orders and registers sales of $238 million annually; she just published an autobiography: An Eye for Winners; photos (M)

Pres Clinton says Mexico has repaid the $12.5 billion it borrowed from Washington to stave off financial collapse two years ago, and done it three years ahead of schedule; this ends one of Clinton's riskiest overseas ventures and releases Mexico from tight economic controls imposed by Washington; Clinton says United States ran profit of more than half a billion dollars on the loans; celebration is held at White House, and Clinton recalls how Congress opposed emergency package for Mexico, prompting him to lend cash from funds under President's control; Sen Alfonse D'Amato, who made several attempts to stop transfer of funds to Mexico, issues terse statement attributing quick repayment to 'vigilant Congressional oversight'; cost of repaying loan was high for Mexican workers because of austerity programs imposed as condition of loans; photo (M)

Police Officer Francis X Livoti denies using illegal choke hold on Anthony Baez, whose death in Bronx on Dec 22, 1994 became rallying cry for concerns about police brutality; testifies at administrative hearing to decide whether he should be dismissed from force; Livoti, who was acquitted of murder charges at criminal trial, contends that Baez died because he struggled while resisting arrest after playing football in cold despite having asthma; Livoti photo (M)

Marxist guerrillas holding 74 hostages at Japanese Ambassador's residence in Lima say they would accept Government proposal to set up commission to negotiate end to five-week-old siege; it remains unclear what role commission would play; Government's chief negotiator, Domingo Palermo, says commission would be composed of representative from Government of Pres Alberto K Fujimori, International Committee of Red Cross, Roman Catholic Church and guerrillas of Tupac Amaru Revolutionary Movement; Guatemala's Ambassador to Peru, Jose Maria Argueta, a former hostage, volunteers to return to residence to help resolve crisis; representatives from Guatemala and Europe are viewed by rebels as way to balance commission, which would otherwise be weighted in Government's favor (M)

Bergen County Exec William P Schuber unveils $446 million budget that county officials say will reduce property tax rate by 1.4 percent (New Jersey Daily Briefing) (S)

Pres Clinton says he and the public are weary of partisan bickering over ethics investigation against Speaker Newt Gingrich; urges House members to put it behind them and 'get on with it'; Clinton has not spoken of the ethics probe against Gingrich for weeks, and he ordered White House officials to refrain from commenting also; Administration officials are beginning to worry that infighting on Capitol Hill over matter might permanently sour bipartisan spirit that Clinton will need to get much of his agenda approved; within hours of Clinton's appeal, Republicans ask Federal Communications Commission to investigate how a Florida couple picked up telephone conversation between Gingrich and other House leaders on police scanner; couple made recording of the conversation available to Democratic member of ethics committee (M)