August 6, 1997

Six years after State of New Jersey assumed control of Paterson school system, and almost eight years after takeover in Jersey City, students are still failing to meet state standards in reading, writing and math (New Jersey Daily Briefing) (S)

Chicago Tribune column by Mary Schmich is posted on Internet world wide web, where it is identified as commencement speech by novelist Kurt Vonnegut at Massachusetts Institute of Technology; Vonnegut says episode has cemented his already cranky belief that Internet is not part of future worth trusting; Schmich says it is example of lawlessness of cyberspace; photo (M)

Wall Street investment bankers have come up with new instrument: catastrophe bonds, which lose their value if big natural disaster hits particular area but can also return huge dividends if investor is correct; catastrophe bonds pay three or four percentage points more than comparably rated corporate bonds, but unlike situation with most other bonds, their entire principal can be forfeited to pay insurance claims if hurricane or earthquake hits; recent $3 million investment in catastrophe bonds by Steven Goldstein, who has been handicapping insurance risk for years as executive of New Jersey reinsurance firm, discussed; other recent investment in such bonds also noted; photos; chart details returns or losses to investors (L)

Several American cities weigh cashing in on bottled-water boom by offering their tap water in bottles with eye-catching labels and sports caps; water officials in Houston and many other cities insist their water is as healthy and tasty as any on market; graph; photo (M)

New Jersey Education Department approves two plans by Orange and Pemberton school districts to raise per-pupil spending to state-wide average; move follows decision by state Supreme Court ordering state to spend additional $246.1 million on poorest school districts; Orange will receive $4.1 million and Pemberton $5.7 million (New Jersey Daily Briefing) (S)