October 12, 2002

Pitched battle is already being waged behind scenes over $4.55 billion in government funds set aside for transit in Lower Manhattan, fueled by debate that could determine future of downtown; at issue is whether funds allocated in aftermath of terrorist attack should be spent only to improve existing transit or to bring in new train service that would make downtown more convenient to suburban commuters; diagram; proponents of new rail, including Sen Charles Schumer and Deputy Mayor Daniel Doctoroff, say downtown will not remain one of world's financial capitals without better links to region and airports; critics point out that city also needs money for several other huge, long-needed projects such as Second Avenue subway and LIRR link to Grand Central Terminal; Gov George Pataki is key to ultimate decision but has so far left issue to transit authority; chairman Peter Kalikow comments (M)

William C Rhoden Sports of The Times column contends that success of former Indiana University president Myles Brand as president of NCAA will depend on his commitment to integrity and policy implementation within college athletics; photo (M)

Japanese central bank moves to hasten cleanup of country's ailing banking system, saying it will spend $16 billion of its own money to buy stocks from threatened banks; calls on government to use tax money to absorb more of banks' losses on failed loans; photo; graph of yen exchange rate (M)

Pres Bush moves to use vote in Congress giving him overwhelming support to attack Iraq as leverage to push for tough new United Nations resolution forcing Saddam Hussein to disarm; only hours after Senate votes, 77 to 23, to give president authority for action against Iraq, administration officials assert that bipartisan endorsement would force hand of Security Council because United States now has all the legal authority for the war that is needed; House votes 296 to 133 in support of president; photo of Sen Tom Daschle, majority leader, and Sen Harry Reid, deputy majority leader (M)

US Justice Department opens civil rights review of Pataki administration's policy of releasing hundreds of patients from New York psychiatric wards to locked units in nursing homes; probe follows revelations in The New York Times and charges by advocacy groups that residents lose rights to hearings when they are not held in psychiatric units; units were set up with no public notice by nursing home operator Benjamin Landa, major Pataki campaign contributor(M)

Sills to Be Met Chairwoman Beverly Sills is ending a six-month retirement to lead the Metropolitan Opera with Joseph Volpe, its general manager. PAGE B1 Stocks Surge Again Stocks rose sharply as prices continued to rally from five-year lows reached on Wednesday. The Dow gained 4.2 percent, while the S.& P. 500 rose 3.9 percent and the Nasdaq climbed 4.1 percent. PAGE C1

People in Washington, DC, suburbs are looking for patterns in recent shootings and trying to stay away from places where they might become targets; several people say they try to keep moving if they have to be outside; photos (M)

3rd-Quarter Profit at G.E. Increases by Nearly 25% Shares of General Electric rose more than 7 percent, to $24.21, after the company reported that it earned $4.09 billion, or 41 cents a share, in the third quarter, in line with analysts' expectations. The earnings were almost 25 percent higher than the $3.28 billion, or 33 cents a share, that the company earned in the period a year earlier. Revenue was up 11 percent, to $32.59 billion. G.E. also confirmed its expectations of earning $1.65 a share for the year. G.E.'s profit growth stemmed primarily from one-time events like a $75 million tax rebate and a $317 million gain from the sale of GE Global eXchange Services, its electronic commerce unit. [Page C2.]

Midway through college football season top teams like Oklahoma University and Texas University will meet, hoping to improve or solidify standing in ratings; photos (M)

Agreement to preserve some 500 of New York City's community gardens grieves those who cherish many of other 150 sites that will be used for housing; losers include Helen Mason and garden she and neighbors cultivate in Brownsville, Ann Thompson on Herzl Street and Nancy Alusick, who loves 20-year-old community garden on East 6th Street in Manhattan; photos; housing department notes great demand for home ownership in Brooklyn and Bronx and explains how decisions were made (M)

As an attack this week on United States marines showed, anti-Americanism is growing in Kuwait, a country rescued from Iraqi domination just over 11 years ago. Article, Page A11.

Anaheim Angels defeat Minnesota Twins, 2-1, to lead American League Championship series, 2-1; photos (M)