July 31, 1997

J P Morgan & Co, moving to shore up lagging money management arm, will acquire 45 percent stake in American Century Companies for $900 million; deal represents shift in strategy at Morgan, which has mainly done business with huge corporations and individuals with more than $5 million to invest; American Century serves broad market of investors saving for retirement (M)

3 Columbia/HCA Officials Are Indicted in Inquiry A Federal grand jury has indicted three executives responsible for obtaining reimbursement from the Government for hospitals owned by Columbia/HCA Healthcare. The indictment charges that the three executives -- Michael T. Neeb, above, Robert W. Whiteside and Jay A. Jarrell -- submitted reports to the Government that overstated the amount of expenses at one hospital that could be partly reimbursed by Federal health programs. $(Page A1.$)

New Jersey appeals court rules that oceanfront communities may be liable for damages if they assume responsibility for protecting public from rough surf but fail to provide adequate safeguards; ruling stems from case brought by William Fleuhr, who broke his neck while swimming in ocean at municipal beach in Cape May (New Jersey Daily Briefing) (S)

Plainfield school district will formally request inclusion on list of special-needs schools that are eligible for extra aid from state (New Jersey Daily Briefing) (S)

Jay Fitzpatrick, who rushed to aid of Atlantic City gambler who was having heart attack and pretended to be doctor, admits in court that he stole nearly $30,000 in chips from him (New Jersey Daily Briefing) (S)

President Clinton called the bombings a ''barbarous act'' and asked the Palestinians to take concrete steps to fight terrorism. Page A10.

Unsealed indictment, handed down before raid on Columbia/HCA Healthcare Corp offices and hospitals, charges three company executives with defrauding Medicare and other Federal programs by overstating expenses at Fawcett Memorial Hospital, Port Charlotte, Fla; executives, Jay A Jarrell, Michael T Neeb and Robert W Whiteside, also oversaw Federal reimbursements at Columbia's other Florida hospitals; photo (M)

Survivors describe terrorist bombing at Jerusalem market that is stronghold of Jewish religious nationalism; map; photos (M)

Kevin Scherzer and Christopher Archer, two of three former Glen Ridge High School football players who were convicted of sexually assaulting mildly retarded girl in 1989, get into brawl with another inmate at Mountainview Youth Correctional Facility in Annandale; officials say they did not start fight (New Jersey Daily Briefing) (S)

Bond raters and fiscal monitors score Gov George I Pataki's $68 billion budget accord with New York's legislative leaders, warning deep multiyear tax cuts and spending increases are likely to create major financial problems, particularly if current boom collapses; say lavish new education programs and tax cuts will place immense pressure on state to cut spending over coming five years on other programs; graph (M)

DRUG RING UNCOVERED -- Nine Delta Air Lines employees were arrested in what law enforcement officials called a sophisticated cocaine-trafficking operation. B3. REDRAWING THE 12TH -- Legislative leaders in Albany have agreed on a plan that would redraw the largely Hispanic 12th Congressional District in New York City. B3. SHIFTING SITE -- A movie theater chain partly owned by Magic Johnson has shifted its plans for a multiplex to another site in Harlem. Metro Business, B5.

Article on plight of nine aimless boys from Scotia, NY, who shared penchant for drinking, drugs and delinquency; notes that in space of few months four were dead in car wreck and fifth in shooting; boys who died in crash on Nov 23, 1996 were Rocky and Tommy Monzo, Dave DeCrease and Chris Caisse; Frank Connor accidentally shot and killed his best friend Justin Curren; other members of group are Andrew Hendricks, Kevin Bertasso and Anthony Orsino; Scotia police officer, commenting on boys who died, says 'they would have been good people' if they had lived to be 22 or 23; map; photo (M)