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ISSUE DATE: August 1, 1977; Vol. XC, No. 5

IN THIS ISSUE:-
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TOP OF THE WEEK:
COVER: LIVING TOGETHER: Jimmy Carter and millions of other Americans think of it as "living in sin," but cohabitation is a way of life for an increasing number of college students, divorcees, social-security pensioners and young adults in transition from swingledom to suburbia. While the trend indicates an alarming wariness about the troubled prospects of modern marriage, the fact is that most couples who begin living together also get married-- sooner or later. From his own interviews and those of Newsweek correspondents around the country, Associate Editor Tony Schwartz describes the agonies and ecstasies of living together, deftly captured in illustrations by Edward Koren (right), who also created this week's cover.

SIZZLING: It was the worst heat wave since the Dust Bowl days of the Depression and Americans coped as best they could. Adults waded in downtown fountains, children frolicked in front of open fire hydrants and just about everyone sought an air - conditioned somewhere. But the heat took a heavy toll with electrical brownouts, drought, forest fires, air pollution and death from heatstroke. And in Johnstown, Pa., a freakish overnight downpour flooded the city, killing at least 49 people and leaving 50,000 homeless. Shrewd, old - fashioned horse traders play a highstakes game these days, and the bidding reached astonishing heights at two major Kentucky yearling sales last week. Buyers from around the world were chasing the dream of a colt like Seattle Slew-- which cost $17,500 and is now worth $10 million. Pete Axthelm was on hand to check out the horses (left) and the wheelers and dealers surrounding them.

TO GENEVA? While Israeli Prime Minister Menahem Begin met with President Carter, Arnaud de Borchgrave interviewed Jordan's King Hussein and Syria's President Assad. Both were wary of the new Israeli Government, but Carter was optimistic about chances for reopening Mideast peace talks in Geneva in October.

FORD'S LIFE: Six months out of the White House, Jerry Ford is enjoying the good life in Vail, Cob., this summer -- golfing, swimming, dictating his memoirs and joshing fondly with Betty, who is also writing a book. "He's 64, going on 50,', says an envious aide. But Ford still follows politics closely and occasionally criticizes Jimmy Carter. Thomas M. DeFrank visited the Fords last week and their daughter Susan (left) shot the color photos for Newsweek.

LANCED? Trouble mounted last week for Bert Lance, director of the Office of Management and the Budget. The Controller of the Currency began an investigation of his financial affairs and he was called by a Senate committee to a new hearing on the same subject. At the same time, Newsweek's Rich Thomas uncovered a pattern of corner-cutting and dubious practices at one of Lance's Georgia banks in the early '70s.

RUBENS: Too often Peter Paul Rubens (self-portrait, above) is thought of as a mere recorder of overripe nature and female pulchritude. A new show in Antwerp displays the grace and geniality Rubens brought to his vast outptul of paintings.

THE COLUMNISTS:
My Turn: Anne Taylor Fleming.
Meg Greenfield.
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