Yes, I figured that out after I posted the question and because it was the end of my day, I neglected to post my finding.
I should have mentioned I was in "icon view" and trying to "arrange by kind" when the OS did "arrange by kind" but then stripped the background color. Thus, if one wants icons arranged "by kind", one gets the glaring white background color and can not change it. Using "none" did arrange the icons alphabetically (or at least they ended up that way). I use icon view because it's easier to see my files the way I want to see them.
I prefer the old way - until I got this new Mac, I was still running Snow Leopard - and I still do on my 8 year old iMac - on which I can still use Adobe's CS4 suite.
Thanks to all for their replies.