May 27, 2000

Mike Pappas, former Republican congressman from New Jersey's 12th Congressional District, is trying to win back his seat in unusual primary race with another former congressman, Richard A Zimmer; race figures to be one of most hotly contested House elections in nation; June 6 primary is matchup between Pappas, unvarnished conservative, and Zimmer, social moderate; Pappas has been endorsed by some top Republicans, while Zimmer has been endorsed by others; both men seek nomination in hopes of unseating Democratic incumbent, Rep Rush Holt; photos (M)

Two men with criminal histories, one of whom, police say, staged five terrifying gunpoint robberies at fast-food outlets in New York last year, are arrested and charged in execution-style shootings of seven bound-and-gagged workers at Wendy's restaurant in Queens; police seize John B Taylor, 36, and Craig Godineaux,30; police say Taylor had worked at several fast-food restaurants in NYC, including Wendy's where massacre occurred; photos (L)

Reliance Group Holdings, struggling insurance group that supported corporate raider Saul Steinberg's sallies for three decades, is being sold to Leucadia National Corp for $295 million in stock and assumption of $735 million in debt; sale will bring Steinberg, who will not longer control any American company, $93 million in Leucadia stock if he still owns 36.4 million Reliance shares he owned last Dec (M)

John Tierney The Big City column on solving mystery of what happened to Squabby, baby pigeon he was feeding on his New York City window ledge; says video camera he installed shows that crows probably ate Squabby; photos (M)

Justice Luther V Dye rules that New York City cannot let developers install septic systems on steeply sloping hills around city's upstate reservoirs; developers fear decision could greatly curtail development in some of fastest-growing areas of New York State, including Putnam County; Justice Dye sides with environmentalists who filed suit after city eased restrictions in 1998; environmentalists argue that allowing septic tanks would pollute city's water supply; Justice Dye says city, in changing septic-tank rules, violated state environmental law and 1997 agreement with state, federal and local upstate governments to protect watershed; technical experts who testified for plaintiffs said septic fields on steep slopes tend to fail more frequently than those on more level ground (M)

Fuel cells, low-pollution devices that generate electrical current from chemical reactions and can be quickly regenerated by pumping in new chemical fuel, are on edge of becoming big business; no one is making money in field yet and technology is not ready for potentially big markets; fuel cell companies' slow path highlights difficulties of improvising for nuts-and-bolts economic sector; companies are developing everything from tiny batteries to highly efficient power plants; table of companies, their partners and projects; photos (M)

Jon S Corzine, Democratic contender for US Senate in New Jersey, seems to have created something of an 'insta-bloc' of support at grass roots by raining his and his friends' money on local party treasuries in NJ; Corzine campaign says that as of May 17, it had spent $24.9 million, nearly all of it Corzine's money, to compete in June 6 primary against former Gov Jim Florio, easily a record for Senate primary; photo (M)

New Jersey Devils defeat Philadelphia Flyers, 2-1, to win playoff series, 4-3; photos (M)U

Asia, less than three years after plunge in value of Thailand's currency set off devastating economic crisis across much of Asia, is riding wave of growth reminiscent of Asian miracle of 1980's; latest evidence of resurgence comes with report that Hong Kong's economic output rose 14.3 percent in first three months of year; it is is territory's fastest quarter of growth since late 1987, and seems to make Asian crisis a distant memory; other Asian economies, from South Korea to Singapore, are growing at rates much faster than most optimistic forecasters had predicted--powered, to large extent, by booming demand for Asian exports of computers, electronics, machinery and textiles in hot economy of United States; Salomon Smith Barney investment bank again raises its full-year forecast for Asia's regional growth, this time to 7.1 percent (M)

Justice Department scores Microsoft Corp, accusing company of cynical, irresponsible behavior on last day of antitrust trial; modifies its proposal to break up company to include few small, technical changes sought by Judge Thomas Penfield Jackson; company delays event at which leaders were to describe their visions of computing future because of likelihood that Jackson will rule next week (M)

Boston Red Sox defeat New York Yankees, 4-1; photo (M)l

New Wave of Growth in Asia Is Reminiscent of 1980's Less than three years after a plunge in the value of Thailand's currency set in motion a devastating economic crisis across much of Asia, the region is riding a wave of growth reminiscent of the Asian miracle of the 1980's. The latest evidence of the resurgence came with a report that Hong Kong's economic output rose 14.3 percent in the first three months of the year. It was the territory's fastest quarter of growth since 1987, and seemed to make the Asian crisis a distant memory. [Page A1.]