Interview with Henry Grunwald, former Time Magazine editor-in-chief, whose autobiography, One Man's America: A Journalist's Search for the Heart of His Country was recently published; photos (M)

For Once, He's the Story

AT&T reports fourth-quarter income from continuing operations rose 14.2 percent, to $1.24 billion; reports fourth quarter net income was $1.62 billion, compared to loss of $2.68 billion a year earlier (M)

AT&T Profit Rises but Bill Payments Lag

Federal prosecutors charge top aides of New York City's former Transit Police Benevolent Association took kickbacks and engaged in other schemes before union merged with Patrolmen's Benevolent Association in 1995; Mayor Rudolph W Giuliani cites racketeering and bribery indictment as key reason for his failure to negotiate new pact with PBA; indictment holds lawyers who also work for PBA paid bribes to Transit PBA aides to keep union's work; one of lawyers, James J Lysaght, is key figure in PBA contract talks; charges also involve questionable donations to former Transit PBA president Ron Reale's unsuccessful 1993 campaign for Public Advocate; photo (M)

Heads of Former Transit Police Union Are Indicted

 Anger Over Cuba and Canada  A visit to Cuba by Canada's Foreign Minister that included the signing of joint declarations on rights and investment irks Washington. Page A3.    Israel's Popular Ex-Soldier  Defense Minister Yitzhak Mordechai, a political rookie, has emerged from the tumult of Israeli politics as a key problem-solver. Page A10.    Motives Are Questioned  O. J. Simpson's lawyer said the families of his former wife and the man murdered with her were motivated by money, not justice. Page A16.    Proposal for Desegregation  A panel formed to address segregation in Connecticut said districts should be forced to accept students from anywhere in the state. Page B6.  

INSIDE

Ronald J Santee, owner of Sandy Hook Lady, pleads guilty to dumping paddle-wheel boat's 1,000-gallon sewage holding tank into Sandy Hook Bay (New Jersey Daily Briefing) (S)

A Fine for Fouling the Bay

Three extended Pakistani families, seizing on 'one price' mania that burst onto retailing scene in early 1990's, have opened 34 discount stores in last five years, most of them in New York City; city officials and urban researchers, noting surge in immigration to NYC in 1990's, say newcomers are going into business at furious pace; say they are creating new employment niches for themselves by bringing friends and relatives with them; photos (M)

Pakistani Immigrants Find a Niche in Discount Stores

Berek Don, mired in personal and professional scandal, resigns as chairman of Bergen County Republican Organization (New Jersey Daily Briefing) (S)

A Republican Leader Resigns

Federal Reserve's periodic survey of business conditions in all geographic areas shows inflation remaining subdued despite continued moderate growth of economy; findings, which were presaged by comments of Fed Chairman Alan Greenspan this week, are further indication that central bank is likely to keep interest rates unchanged at its policy meeting in early February; graph (M)

Survey Sees 'Moderate' Economic Growth

Sen Alfonse M D'Amato persuaded New York State legislative leaders to work out deal on legislation providing women longer hospital stays after mastectomies, providing yet another example of how he uses his influence over state's political leaders to push issues important to him through Legislature; D'Amato's attention to legislation came as survey's suggested that his popularity is sagging, particularly among women (M)

D'Amato Goes to Albany and a Law Is Born

New Jersey Vietnam Veterans Memorial Foundation on Jan 23 will announce plans to build museum next to Vietnam Veterans Memorial in Holmdel (New Jersey Daily Briefing) (S)

Vietnam Museum Is Planned

Assembly health committee will consider bill to ban type of abortion that involves partial delivery of live fetus (New Jersey Daily Briefing) (S)

Bill to Ban Some Abortions

Russian Parliament's Communist-dominated lower house votes, 229-63, to remove Boris N Yeltsin as President because of his poor health;: confusing blizzard of parliamentary maneuvers will force second vote; measure reflects mounting restiveness with Yeltsin's absence; Yeltsin's press service says he defied doctors and traveled to Kremlin to meet with Prime Min Viktor S Chernomyrdin, claim openly questioned by most news shows; photo (M),

YELTSIN'S ABSENCE BRINGS AN OUTCRY FROM LEGISLATORS

CSX Corp and Conrail, in what may be breakthrough in costly three-month-long battle for Conrail, agree to meeting with Norfolk Southern Corporation to discuss reshaping rail freight industry in East; Norfolk Southern, which has offered $10.5 billion in hostile bid to take over Conrail, has stymied friendly merger between CSX and Conrail (M)

Top Officials of 3 Railroads to Meet on Conrail Takeover Dispute

Federal jury awards Food Lion supermarket chain over $5.5 million in punitive damages from ABC and two of its employees in closely watched case that focuses on propriety of use of hidden cameras and undercover reporters; found producers of Primetime Live trespassed and committed fraud in researching 1992 segment that accused firm of selling spoiled meat; ABC aide Roone Arledge defends reporting methods and says ABC will appeal (M)

Jury Says ABC Owes Damages Of $5.5 Million

New York City officials, in effort to wrest more control from private medical centers that staff its public hospitals, say they will seek new partner for city's largest medical-care contract--$100 million deal to run Queens and Elmhurst Hospital Centers; city has been negotiating with Mount Sinai Medical Center, which has supplied doctors to Queens and Elmhurst; officials say that deal fell though after they failed to persuade Mount Sinai center to give city more control over running hospitals and to link productivity and quality of care to what center would be paid (M)

City Seeking New Partner For 2 Hospitals

Evelyn Nieves, in Our Towns column, notes that many New Yorkers are still shopping at Newport Center Mall in New Jersey during city's tax-free shopping week (M)

Tax-Free Days Aren't Closing The Border

The Times this week introduces Metro Business. Appearing in this section Tuesday through Friday, it will offer news and features on local business, from real estate and retailing to Wall Street and the economy.    Today, a look at the many Pakistani immigrants who have moved into the city's retail business, particularly 99-cent stores, plus on B8:

Metro Business

Charles F Feeney reveals he anonymously donated over $600 million to universities, medical centers and other beneficiaries over last 15 years, reducing his net worth to under $5 million at time when business magazines estimated it in billions; discusses contributions because pending suit over sale of his business will make activities public; made gifts through Atlantic Foundation and Atlantic Trust, to which he gave his entire 38.75 stake in DFS Group; Prof Harvey F Dale, foundation president, comments; photo; graph (M)

He Gave Away $600 Million, and No One Knew

 I.B.M. Drags Down Dow, But Nasdaq Hits Record  I.B.M. stock fell sharply, dragging down the Dow Jones industrial average, which fell 33.87 points to close at 6,850.03.    But the Nasdaq reached another closing high as Microsoft and Intel rose. I.B.M., Intel and Microsoft have all reported strong fourth-quarter earnings, and all have warned investors that their rates of growth may slow. But investors see a brighter future for Intel and Microsoft than for I.B.M. $(Page D10.$)    Compaq Earnings Up, Lifting Stock  Compaq's earnings exceeded Wall Street estimates, and the company's stock rose sharply. Compaq attributed the earnings gain to greater sales in the more profitable parts of the company's product line and to internal changes that have resulted in lower costs and increased profit margins. $(D3.$)    Jury Decides Against ABC  A jury ruled against ABC and two employees, awarding the Food Lion supermarket chain more than $5.5 million in punitive damages in a case that focused on the propriety of gathering TV news with hidden cameras and undercover reporting. $(A1.$)    A Strong Quarter for Bear Stearns  Quarterly earnings at Bear Stearns rose 68 percent, surpassing analysts' forecasts, as they have at other investment banks. Dean Witter reported strong profits, too. $(D3.$)    USAir Profit Down 55%  USAir said that earnings fell 55 percent in the fourth quarter as it continued to struggle with rising costs. $(D3.$)    Perelman: Ruling Is No Problem  Ronald O. Perelman, who is seeking to maintain control of Marvel Entertainment, suffered a setback when a judge rejected parts of a borrowing agreement that Marvel had negotiated. But a spokesman for Mr. Perelman said the ruling was not a problem because the judge had indicated that she would approve alternate language in the agreement that would amount to the same thing. $(D2.$)    Pharmacia Stock: A Bargain?  Most securities analysts were unhappy with Pharmacia & Upjohn even before the surprise resignation this week of John L. Zabriskie, the chief executive. But a few contrarians saw a brighter side. The share price was already one of the cheapest in the pharmaceutical sector, and after Mr. Zabriskie quit it got even cheaper. Market Place. $(D10.$)    Bank Employees Release President  Employees protesting a Government plan to cut jobs at Credit Foncier de France released the bank's president and other executives after six days. But labor organizers pledged to continue occupying the Paris headquarters until the Government scrapped plans to eliminate the jobs. $(D8.$)    Consumer Accounts in Shifts  Account activity has been accelerating in the last week in consumer product advertising. One big change involved a division of Johnson & Johnson, which moved the account of the Nicotrol anti-smoking patch, with billings estimated at $41 million, to the Health Care Connection unit of Saatchi & Saatchi Advertising in New York from DDB Needham New York. Stuart Elliott: Advertising. $(D7.$)    Pizzeria Uno has acknowledged that ads for ''low-fat'' pizzas were misleading and has promised the F.T.C. not to make such claims again. $(A21.$)    New York City Job Growth Gains  Last year, for the first time since 1980, New York City created more jobs than its suburbs, breaking one of the trends of recent economic development in America. $(B8.$)    A Big Donor's Anonymous Giving  Charles F. Feeney, the founder of the DFS Group chain of duty-free shops, which was recently sold to LVMH Moet Hennessy Louis Vuitton, has secretly donated more than $600 million to hospitals, universities and other beneficiaries over the last 15 years. $(A1.$)  

BUSINESS DIGEST

Seventeen American students triumph at Salon du Meuble, annual furniture show in Paris, where they exhibited designs; many receive commissions or are in contract talks with manufacturers; several turn down on-the-spot sales of models; photos (M)

Young Americans Triumph in Paris

Atlantic City City Council approves measure to abolish post of police chief and votes to hire recently retired Camden Police Chief George Pugh as city's first civilian Public Safety Director (New Jersey Daily Briefing) (S)

Debate on a Non-Police Chief

Article profiles success of Enterprise Rent-a-Car Inc, which has gone against all conventional industry wisdom by sticking close to niche it developed for itself 40 years ago: providing rentals for customers whose cars are being repaired or who need an extra car; company chief executive Andrew Taylor comments; photo; chart (M)

Rental Car Giant Successfully Shuns Industry Shakeout

Charles F Feeney, self-made businessman from Elizabeth, over last 15 years has given more than $600 million to hospitals, universities and other institutions--but he has done it in such complete secrecy that most recipients never learned who their benefactor was (New Jersey Daily Briefing) (S)

Giving a Fortune, Secretively

Building experts say house buyers who want homes of substance may be trading quality for showy flourishes; say styling is supplanting substance in houses that cost more than $300,000; blame lack of enforceable building codes, little self-monitoring by industry, pressure to make profits and untrained workforce; say houses and owners are more dependent than ever on integrity of individual builders; photos (M)

When What You See Is All You Get

William M Daley, Pres Clinton's nominee for Commerce Secretary, pledges to depoliticize department, which Republicans charge has become Democratic Party fund raising outpost, Senate committee confirmation hearing; says he would drop 100 of department's 250 politically appointed jobs by end of year and suspend trade missions for 30 days while developing guidelines for choosing participants that insure big donors are not favored; photo (M)

COMMERCE NOMINEE VOWS TO ROOT OUT POLITICAL AGENDAS

Madeleine Jana Korbel Albright was an American diplomat and political scientist who served as the 64th United States secretary of state under President Bill Clinton from 1997 to 2001. She was the first woman to hold the position.

Madeleine Albright becomes the first woman to serve as United States Secretary of State.

January 23, 1997

Headlines from January 23, 1997

For Once, He's the Story

AT&T Profit Rises but Bill Payments Lag

Heads of Former Transit Police Union Are Indicted

INSIDE

A Fine for Fouling the Bay

Billboard 200

Tragic Kingdom

Romeo + Juliet

Falling Into You

Blue

Secrets

Historical Events

Historical Context for January 23, 1997