Stephen M Case, architect of America Online and Time Warner merger, becomes target of growing criticism by analysts and investors after chairman Robert W Pittman resigns; Securities and Exchange Commission has opened probe into accounting practices at AOL that may have inflated past revenue; some analysts say Case's role as merger's architect makes him liability as AOL Time Warner tries to rebuild its credibility; company's directors, with Pittman's departure from board, are now evenly divided between Time Warner and AOL members; photo (M)

Man in Middle of AOL Deal Is Now at Center of a Storm

The House approved the largest reorganization of the federal government in decades, the creation of a Department of Homeland Security.    Article, Page A8.

Vote for Security Dept.

Market value of Citigroup tumbles 25 percent, or $45 billion, in two days as Senate committee begins investigating whether it and main rival J P Morgan Chase enabled Enron Corp to disguise amount of debt it actually had on its balance sheet; Sanford I Weill, who built Citigroup into $1 trillion conglomerate, defends its actions and predicts vindication; photo (M)

In Two Days, Citigroup Chief Traded Halo For Headaches

General Electric Co will break GE Capital, by far its largest business, into four segments, effective August 1; reorganization effectively eliminates job of GE Capital chairman Denis J Nayden, as each new unit's chief will report directly to General Electric chairman Jeffrey R Immelt; photo; graphs (M)

G.E. Is Breaking Its Largest Unit Into Four Parts

New York Jets will start quarterback Vinny Testaverde in training camp and likely on opening day, barring injury; photos (M)

Edwards Puts Testaverde in Driver's Seat

 4 Jewish Settlers Killed  Four Jewish settlers were killed in an ambush in the West Bank, part of a surge in Palestinian violence following Israel's Gaza attack.   PAGE A3    Tough Trial Ahead  Zacarias Moussaoui faces the task of proving that while he is a member of Al Qaeda, he was not involved in the Sept. 11 plot.   NEWS ANALYSIS, PAGE A8

INSIDE

 Both Dow and S.& P. Gain, Ending the Week Positive  The Dow Jones industrial average and the Standard & Poor's 500-stock index rose, finishing the week higher. It was the first positive week in three for the Dow and the first in four for the S.& P. The Nasdaq composite index also rallied, but it finished the week down, its fourth consecutive weekly dip.    The Dow rose 78.08 points, or 1 percent, to close at 8,264.39, while the S.& P. 500 was up 14.16 points, or 1.7 percent, to 852.84. The Nasdaq climbed 22.04 points, or 1.8 percent, to 1,262.12. For the week, the Dow was up 3.1 percent and the S.& P. 500 up 0.6 percent. The Nasdaq was off 4.3 percent. [Page C4.]

BUSINESS DIGEST

Justice Department probes 1999 deal in which Enron sold part-interest in electricity-generating barges in Nigeria to special-interest entity established by Merrill Lynch; Senate Permanent Subcommittee on Investigations looks more deeply into role financial institutions may have played in hiding Enron's true financial condition (M)

U.S. Studying Merrill Lynch In Enron Deal

Draft assessment of New York City Police Department's response to September 11 attack conducted by McKinsey & Co concludes it was effective in many areas but suffered from lapses in leadership and coordination and lack of proper planning and training; finds many officers did not know who was in charge or whom they should report to, and that some acted without direction from field commanders; emphasizes that no one could have anticipated September 11 and that primary goal of evacuating World Trade Center, which saved thousands of lives, was achieved; chart (M)

Report on 9/11 Finds Flaws In Response of Police Dept.

Yolanda Billingslea, Brooklyn woman who police say was high on drugs, stabs her 7-year-old daughter to death and critically wounds a friend who intervenes in stabbing; she later turns pair of scissors on herself; photo (M)

Brooklyn Woman Kills Daughter, 7, and Stabs a Friend, Police Say

New York Gov George Pataki, discussing site plans during news conference, essentially rules out idea that rebuilt World Trade Center site must include all office space, retail stores and hotel rooms that once existed there; says Port Authority, which he jointly controls, should look to other places in downtown Manhattan to rebuild commercial space, and that Lower Manhattan should remain a world financial center but also 24-hour community; Port Authority plans have been roundly disparaged as creating overly dense and unattractive development (M)

Pataki Calls for More Flexibility On Rebuilding at Ground Zero

Official statistics provided by police in Gujarat, only major Indian state governed solely by Hindu nationalist Bharatiya Janata Party, show that state government failed to take basic steps to halt religious riots by Hindu mobs against Muslims last spring; violence, which claimed almost 1,000 lives in Ahmedabad, was sparked by Muslim mob's attack on train loaded with activists from World Hindu Council; party and council deny charges; photos; map (L)

Religious Riots Loom Over Indian Politics

New York Mets defeat Cincinnati Reds, 3-2; photos (M)

Vaughn Gets in Step To Beat Cincinnati

Decision to admit Kalani Rosell, who is not of Hawaiian ancestry, into Kamehameha Schools, only beneficiary of $6-billion legacy of 19th-century Hawaiian princess, sparks protests; school policy had required students to prove that at least one ancestor lived on Hawaiian Islands in 1778; competition is fierce for admission to two campuses on Maui and one on Big Island; decision was driven in part by concern that admission policy cannot survive legal scrutiny; programs reach less than 10 percent of all children who meet ancestry requirements; photos (M)

School Set Aside for Hawaiians Ends Exclusion to Cries of Protest

Amazon Surveillance System, sophisticated US-financed system of radars and sensors, begins monitoring activity in 1.9-million-square-mile Brazilian jungle wilderness; system will allow Brazilian government to monitor its airspace for drug dealers, track track illegal logging and deforestation, detect foreign guerrilla incursions, protect Indian lands and inhibit smuggling of rare and endangered animal and plant species; photo; map (M)

Brazil Employs Tools of Spying To Guard Itself

Federal prosecutors in Brooklyn are planning fourth trial of former New York City Police Officer Charles Schwarz, charged with participating in 1997 torture of Abner Louima; confirmation of Roslynn Mauskopf, Pres Bush's nominee for US Attorney in Brooklyn, could affect direction of case (M)

A Fourth Trial Is Set In Torture of Louima

Experts and government officials say that several federal regulatory agencies remain crippled by deficits of both personnel and enforcement abilities despite tide of corporate scandals pushing Congress to reassert its oversight and regulatory powers; officials blame length of time needed to hire federal employees; only about 350 of over 500 possible appointments before Senate have been confirmed; hard-nosed politics only lengthens logjam and leaves more agencies leaderless and hobbled; list of positions vacant at federal regulatory agencies (M)

So Few Agencies, So Many Official Seats Unfilled

Former San Diego Padres and St Louis Cardinals shortstop Ozzie Smith is lone inductee this year into Baseball Hall of Fame; is being honored for 19-year major league career; photos (M)

To Cooperstown With Glove, the Wizard

William C Rhoden Sports of The Times column contends that New York Jets should look to long-shot Ataveus Cash to be wide receiver; photo (M)

Sports of The Times; A Long Shot To Become A Jet Receiver

Russian Tea Room announces its closing, less than three years after its spectacular but ill-fated $30 million renovation; flamboyant restaurateur Warner LeRoy, who hoped to reinvent Tea Room as variant of his hugely successful Tavern on the Green, died little more than year after reopening restaurant at 150 West 57th Street; it will close after dinner tomorrow; LeRoy's daughter Jennifer, whom he had handpicked to become restaurant's chief executive, was unable to summon requisite dazzle and ballyhoo to keep high-maintenance property afloat as a theme restaurant and tourist draw; photos (L)

Russian Tea Room to Close After Tomorrow's Dinner

Pres George Bush makes rare visit to Capitol to rally Republicans after House and Senate negotiators agree on broad trade bill that has been deadlocked for years; conferees agree to give Bush right to make trade deals that Congress may only ratify or reject, but not change, which is viewed as major victory for Bush; Republican House leaders, seeking to quell opposition, are unable, despite Bush's visit, to bring measure up for debate (M)

PRESIDENT PUSHES TRADE LEGISLATION IN VISIT TO CAPITOL

New York City is seen revolving door capital of world; International Revolving Door Assn official notes that NY, especially Manhattan, is biggest revolving door market in world; revolving door's ubiquity in NYC comes, in part, from city's appetite for skyscrapers; doors are scientific way to equalize air pressure; photos of revolving doors at State Supreme Court building in Manhattan, and in Chrysler Building (M)

Circular Logic; Sure, They're Fun, but Revolving Doors Also Have a Higher Purpose

Federal Judge Sets 4th Trial For Schwarz

Lawyers and consumers groups predict rush of bankruptcy filings by people seeking to erase debt before tougher rules contained in pending bills to overhaul United States bankruptcy system take effect; photo (M)

A Sudden Rush To Declare Bankruptcy Is Expected

Seat on New York Mercantile Exchange's Nymex division sells for record $1.1 million, $50,000 higher than previous record (S)

Record Sale of Nymex Seat

The Sknyliv air show disaster occurred on 27 July 2002, when a Ukrainian Air Force Sukhoi Su-27UB aircraft, piloted by Volodymyr Toponar and co-piloted by Yuriy Yegorov, crashed into spectators during an aerobatics presentation at Sknyliv airfield near Lviv, Ukraine. The accident killed 77 people and injured 543. It is the deadliest air show accident in history.

Ukraine airshow disaster: A Sukhoi Su-27 fighter crashes during an air show at Lviv, Ukraine killing 77 and injuring more than 500 others, making it the deadliest air show disaster in history.

July 27, 2002

Headlines from July 27, 2002

Man in Middle of AOL Deal Is Now at Center of a Storm

Vote for Security Dept.

In Two Days, Citigroup Chief Traded Halo For Headaches

G.E. Is Breaking Its Largest Unit Into Four Parts

Edwards Puts Testaverde in Driver's Seat

Billboard 200

Nellyville

By The Way

The Eminem Show

Let Go

Hard Candy

Historical Events

Historical Context for July 27, 2002