News stories from Wednesday September 20, 1978

Summaries of the stories the major media outlets considered to be of particular importance on this date:

Soon after President Carter took office, he was told about fugitive financier Robert Vesco's efforts to make top-level White House contacts, a Carter spokesman has said. Although the President "brushed off" the Vesco feeler in a "cryptic note" to Attorney General Griffin Bell, the F.B.I. will probably question the President about the incident -- the first indication that Vesco's alleged influence-seeking had come to Carter's personal attention. [Chicago Tribune] While her father was Vice President, Susan Ford at one point was suddenly put under heavy Secret Service guard because she apparently had been selected as a target by the same terrorist group that kidnapped Patty Hearst, Betty Ford has written. In a new autobiography excerpted in Ladies Home Journal, Mrs. Ford says the previously undisclosed threat occurred just after her husband became Vice President. [Chicago Tribune] A Republican proposal for automatic yearly tax cuts to help offset inflation was defeated by the Senate Finance Committee. The decision was in doubt for more than three hours as the committee, deadlocked 8-8, awaited the votes of Senators Floyd Haskell [D., Colo.] and Daniel Patrick Moynihan [D., N,.Y.]. The "tax-indexing" plan, proposed by Sen. Bob Dole [R., Kan.], was defeated when Haskell and Moynihan telephoned in their "no" votes. The measure would commit the government to slashing individual taxes in 1980 and 1981, with the size of the cut determined by inflation in the preceding years. [Chicago Tribune] The House has rejected -- by a 290 to 97 vote -- a move to permit its members to earn unlimited incomes above their government salaries. Refusal to repeal a new rule that limits outside income to 15 percent will require House members to be full-time legislators and will limit the opportunity for conflict of interest and influence-buying on Capitol Hill, supporters say. [Chicago Tribune] In Atlantic City, President Carter told the United Steelworkers of America that he soon will ask for "restraint and some sacrifice from all" in his fight against inflation, and asked the workers to cooperate. On Monday, A.F.L.-C.I.O. President George Meany, addressing the steelworkers, warned against imposing the wage-price guidelines that Carter's economists have recommended. [Chicago Tribune] Tongsun Park, former Korean rice dealer, testified that he linked favors he did for Congressmen with how they voted on military aid and other legislation affecting South Korea. He told the House Ethics committee how he gave former House Democratic Whip John McFall [Cal.] $4,000 in cash and how he picked up the tab for a party -- and for a $500 silver tea set gift -- in honor of McFall. [Chicago Tribune] Army and Marine Corps officials began an investigation after an Army helicopter gunship accidentally fired 30 rounds of 40 mm. cannon fire into a Marine encampment, wounding nine men. The nine Marines, members of the First Marine Brigade at the Kaneohe Marine Corps Air Station, suffered shrapnel wounds. One was treated at the scene, and the eight others were flown to Honolulu and were reported in satisfactory condition at Tripler Army Medical Center. [Chicago Tribune] The stock market gave up on an early attempt to rally from a six-session losing streak. Brokers blamed the setback on indications that the Federal Reserve tightened credit another notch. The Dow Jones industrial average closed 4.41 points lower at 857.16.Admiral will stop selling television sets in the United States, its parent, Rockwell International Corp., announced. The move will mean the closing of plants in Illinois and Taiwan and an engineering facility in Chicago, plus a staff reduction at Admiral headquarters. Admiral has consistently sustained losses. New "Treasury Rate" certificates of deposit are being viewed with increasing alarm by some savings and loan executives as the interest rate the CDs bear continues to rise The rate has gone from about 7.4 percent in, early August to about 8.2 percent now. Other S&L people remain happy with the certificates because they've attracted new savings and kept existing savings from being withdrawn and reinvested elsewhere. [Chicago Tribune] The Shah was mobbed by hundreds of survivors of the worst earthquake to hit Iran this century when he visited the disaster area. Some survivors of the quake, which destroyed Tabas and killed 16,000 persons, prostrated themselves at the Shah's feet and pouted out tales of personal disaster. The Shah, in an immaculate military uniform, listened and gave instructions to his aides. [Chicago Tribune] King Hussein of Jordan has agreed to give serious consideration to the Camp David peace accords, a U.S. State Department spokesman reported. The spokesman said, however, that Hussein had first bombarded Secretary of State Cyrus Vance with questions. The meeting with Hussein was described as the first "crucial phase" of a campaign to win the skeptical Arab world over to the Camp David agreements. State Department press spokesman Hodding Carter said "It was clear King Hussein and his government are giving the entire matter their serious consideration." [Chicago Tribune] A small band of Jews, illegally occupying a rocky, barren hilltop on the West Bank of occupied Jordan, vowed to be evicted only by force. Members of the ultra-nationalist, right-wing Gush Emunim occupied the hilltop two days ago in protest of the Camp David summit agreements. [Chicago Tribune] South African Prime Minister John Vorster announced his resignation after 12 years of iron-fisted rule, opening a frantic race to succeed him. In a defiant parting gesture, Vorster announced that the republic unilaterally would proceed with elections in South-West Africa [Namibia] despite United Nations' calls for a delay. A new prime minister will be elected in eight days. [Chicago Tribune] Two Soviet cosmonauts broke the manned space-flight endurance record of 96 days and 10 hours, then went through extensive medical tests to see what nearly 14 weeks of weightlessness had done to their bodies. Soyuz 29 cosmonauts Vladimir Kovalenok and Alexander Ivanchenkov cracked the old endurance record at 2:17 a.m. eastern time as they whirled around earth aboard the Salyut 6 space lab. [Chicago Tribune] Corrado Alunni, the reputed leader of the Red Brigades, the terrorist gang that claimed responsibility for the kidnap-murder of former Prime Minister Aldo Moro, was sentenced to 12 years 4 months in jail by a court in Milan. He was convicted of illegal possession of arms and explosives. Alunni had been sought in connection with 12 murders, including that of Moro. [Chicago Tribune] All 1,100 seats at the Kennedy Center in Washington have been sold for $100 apiece for the premiere showing Sunday of "Born Again," the movie based on Charles Colson's book. Invitations have been sent to some key Watergate figures to attend the movie, which is based on Colson's Watergate misdeeds as a presidential aide and his later religious conversion. Proceeds from the showing and subsequent previews in 34 cities will go to the Prison Fellowship, founded by Colson when he was released from prison 7 months ago. Colson who was a special counsel to former President Richard Nixon, pleaded guilty to obstruction of justice. [Chicago Tribune]

Stock Market Report

Dow Jones Industrial Average: 857.16 (-4.41, -0.51%)
S&P Composite: 101.73 (-0.80, -0.78%)
Arms Index: 1.54

	Issues	Volume*
Advances	354	5.06
Declines	1,161	25.57
Unchanged	380	4.45
Total Volume		35.08

* in millions of shares

Arms Index is the ratio of volume per declining issue to volume per advancing issue; a figure below 1.0 is bullish.

Market Index Trends
Date	DJIA	S&P	Volume*
September 19, 1978	861.57	102.53	31.66
September 18, 1978	870.15	103.21	35.83
September 15, 1978	878.55	104.12	37.29
September 14, 1978	887.04	105.10	37.40
September 13, 1978	899.60	106.34	43.33
September 12, 1978	906.44	106.99	34.41
September 11, 1978	907.74	106.98	39.66
September 8, 1978	907.74	106.79	42.07
September 7, 1978	893.71	105.42	40.30
September 6, 1978	895.79	105.38	42.61