September 12, 1997

New York Observer, idiosyncratic weekly newspaper printed on peach colored paper, approaches its 10th anniversary, milestone that some media critics thought it would never reach; paper, which continues to lose about $2 million a year, has circulation of 50,000 copies a week, according to Observer executives; Observer occupies attention-getting niche in New York news media-market: gossip about Manhattan's trend-setters, power mongers and business moguls; Arthur L Carter, owner and publisher, comments; photos (M)

New Scrutiny for Teamsters New evidence and witnesses have persuaded the Federal election official overseeing the teamsters' election to again consider disqualifying the union's president. Page A14.

Lorin Duckman, embattled New York City judge under investigation since domestic violence case he handled ended in murder, testifies before New York State Commission on Judicial Conduct; expresses regret for some of his behavior, insists that other accusations against him are not true, and asks to be allowed to remain on bench; it is final session in year-and-half long investigation spawned by murder of Galina Komar, who was killed by her former boyfriend after Duckman released him from jail over strenuous objections of prosecutors; photos (M)

Bishop of Diocese of Camden authorizes hiring of substitute teachers as temporary replacements for striking lay teachers in eight Roman Catholic high schools in southern New Jersey; teachers' union officials call move effort to break the union; about 190 of diocese's lay teachers went on strike Tuesday to protest stalled salary talks (S) (New Jersey Daily Briefing)

Furniture retailers are struggling because sellers are not giving consumers products they want; furniture has remained firmly entrenched in 1970's, when many suburban middle-class homes had same basic easy chairs and dinette sets; many mainstream retailers have been far more focused on pushing easy credit terms rather than updating style of their offerings; decision by Levitz Furniture Corp, one of country's largest furniture chains, to file for bankruptcy protection discussed; graphs; photos (L)