September 1, 1998

New Jersey State Property Tax Commission, created by Gov Christine Todd Whitman after her narrow re-election victory last fall, agrees on dozens of recommendations intended to lower real estate taxes; at Governor's request, commission did not consider statewide tax increases to offset property tax bills, but it recommends that state's cities and towns be given new taxing authority in order to raise revenue through local taxes; panel is also expected to recommend placing salary cap on school, municipal and county employees; other suggestions include state incentives for local governments to share services and having state pick up $200 million cost of New Jersey's 21 prosecutor's offices (M)

Profound changes can be expected on Wall Street if financial markets continue to deteriorate; firms could start cutting back on expenses, and jobs; any sweeping job cuts would have significant effect on New York City's economy, which has come to rely heavily on its brokerage firms, banks and insurance companies for tax revenues and well-paid jobs; Salomon Smith Barney, one of country's biggest investment banks, says it lost $360 million after taxes in last two months alone in its arbitrage and Russian-related credits businesses; says it expects its overall after-tax loss for last two months to be $150 million after allowing for profits from private client and funds management business (M)

Alvin, world's first craft to explore ocean depths, is getting major overhaul that may extend its reach and allow it to match and possibly even surpass newer submersibles abroad, making it world leader; in a remarkable bonanza from end of cold war, Woods Hole Oceanographic Institution, which runs Alvin, has received from Navy a submersible known as Sea Cliff, which has been decommissioned in wake of military cutbacks and changing priorities; Woods Hole and its Federal patrons have insufficient money to run Sea Cliff, designed for military work, as separate vehicle; but Woods Hole is happy to cannibalize its parts to improve Alvin; crown jewel of Sea Cliff is its crew capsule, which can withstand pressures to depths of 3.8 miles; photo (L)

Geraldine Ferraro, after 10 months of running curiously quiescent campaign for US Senate in New York, turns up volume with her first two television advertisements; her opponents for Democratic nomination, Mark Green and Charles E Schumer, spend day touting their records on social issues (M)

Hong Kong's stock market plunges 7.1 percent after Hong Kong government abruptly withdraws from market; several analysts say market did not fall as much as they expected, perhaps because of persistent rumors that government would begin buying shares again if benchmark Hang Seng index sinks below 7,200; Hang Seng closed at 7,275 on Aug 31; some market experts say market would have to fall further 8 to 10 percent before it reflects level free of any artificial support; deteriorating state of global economy makes Hong Kong's campaign to support its market extremely costly; traders estimate government has spent $12 billion to $15 billion on shares in last two weeks; photo (M)