June 12, 2004

John Kerry has repeatedly asked Senator John McCain, the independent-minded Arizona Republican, to consider being his running mate.

The rebel Shiite cleric Moktada al-Sadr, in a reversal of his past position, endorsed the interim Iraqi government and appeared to urge his followers to honor a week-old cease-fire that has been frayed by continuing violence.

Dan Barry column details job of Van Scatliffe, New York City tow-truck operator, who roams streets, keeping them clear of illegally parked cars; Scatcliffe strikes fear in hearts of many New Yorkers, but tries to maintain diplomatic attitude with raging-mad parking law violators (S)

Multinational companies find new opportunities when setting up operations in India rather than China, where many multinationals are struggling to earn profits; reasons discussed; India's economy has been growing nearly as quickly as China's in recent years; government in New Delhi has dismantled many barriers to foreign investment, making country increasingly attractive market for globalizing companies; India's steep tariffs still keep prices somewhat higher for many manufactured goods; China's effort recently to brake its economy is also starting to take edge off some companies' interest; China's political prospects remain murky; by contrast, India has just gone through peaceful change of democratic government that produced mere two-day drop in stock market followed by immediate recovery in share prices and corporate confidence; Whirlpool Corp's different experiences in India and China discussed; photos; graph (L)

Electronic Arts, video game giant, says that it had decided to stop running advertisements for Internet casinos on its Website, delivering another blow to onine gambling industry (M)

Former Pres Ronald Reagan's state funeral is held at National Cathedral in Washington, DC; nearly 4,000 mourners, including four surviving ex-presidents and world leaders past and present, attend funeral; Pres Bush, former British Prime Min Margaret Thatcher, former Canadian Prime Min Brian Mulroney, former Pres George Bush and former Sen John C Danforth deliver eulogies; Thatcher's remarks were videotaped in late 2003 because of her own failing health; Danforth, ordained Episcopal priest, was chosen by Nancy Reagan to conduct services after illness sidelined Rev Billy Graham; funeral caps six days of national mourning for Reagan; photos (M)

Assemblyman Herman D Farrell Jr of New York questions plans for holding party in South Boston during Democratic National Convention, citing area's resistance to school desegregation in 1970's; Boston newspapers and City Councilman James M Kelly call Farrell racial agitator; many Bostonians believe incidents in 1970's were not racist, but frustration at having their children bused to school outside neighborhood; Democrats hoped to play down differences on civil rights to show party's united front: photo (M)

Detroit Pistons prepare for Game 4 of NBA finals against Los Angeles Lakers; photos (M)

San Diego Padres defeat New York Yankees, 10-2; photos (M)

New Yorkers in search of good hair styling at reasonable prices are turning to suburban beauty salons, reversing tradition in which suburban women would come to city for top stylists; say salons in suburbs are more personal and do work that is comparable or better than what they can get in Manhattan, but for much less money; photo (M)

Dave Anderson Sports of The Times column discusses Tiger Woods, who decided to forgo Buick Classic before US Open, and instead took practice round at Shinnecock Hills Golf Club, where Open will be staged this year (M)

Fee Payments Questioned As Insurer Inquiry Widens Three big insurance companies, Aetna, Cigna and MetLife, said that they had received subpoenas from the New York attorney general as an investigation widened into the field of employee benefits -- health, disability and group life insurance. Investigators have been concerned that payments from insurance companies to brokers for exceeding sales goals and keeping down claims costs may undermine the brokers' loyalty to the corporations that pay them fees and commissions to arrange coverage. Industry executives said similar fees were widely paid to brokers and consultants by employee benefits companies. [Page C2.]