News stories from Tuesday January 12, 1971

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

Bethlehem Steel increased its price of construction steel by 12.5%; the White House is acting to prevent an industry-wide increase. President Nixon's economic advisors recommended that he take action because rising costs in the construction industry would drive U.S. prices out of line with the world market. Nixon hinted that he would increase foreign quotas if other U.S. companies made similar increases. One small company announced plans for a similar increase. [CBS] The FCC offered AT&T its first long distance telephone rate increase since 1953, which would increase profits by $250 million. AT&T wanted a greater increase but the FCC will hold more hearings first. [CBS] The administration cut the interest rate ceiling on home loans from 8% to 7.5%. [CBS] The Air Force is giving Boeing a $150 million order to produce a new missile. The order will help alleviate unemployment in Seattle, the home of Boeing. [CBS] President Anwar Sadat of Egypt said that he doesn't intend to accept Israel's Middle East settlement conditions. Sadat's statement was presumably made in response to proposals which were relayed from Israel through the United Nations.Fighting broke out again in Jordan after an announcement by the government of a cease-fire agreement with the Palestinian guerrillas. Palestinians in Jordan have been moved into camps in the countryside; guerrillas claim that they were moved in order to make their elimination by Jordanian forces easier. [CBS] Allied military traffic to West Berlin was held up for 10 hours by the Russians earlier today, but traffic has returned to normal tonight. [CBS] South Vietnamese marines entered Cambodia to reopen Highway 4. [CBS] Paul Meadlo completed his testimony in Lt. William Calley's My Lai trial. Meadlo said that Calley ordered him to shoot two groups of civilians; Meadlo believes those "civilians" were actually Viet Cong. [CBS] The Federal Trade Commission began hearings on requiring more realistic price stickers on automobiles, as consumers have complained of being misled by sales offers. Rep. Benjamin Rosenthal said that the sticker price is not actually the price for which a car can be bought, and bargaining is typically to the buyer's disadvantage. Rosenthal feels that the automakers are at fault.A spokesman for the car dealers said that dealers dread bargaining with buyers because buyers are ill-prepared for bargaining. Chrysler Corporation spokesman Byron Nichols noted that the retail price is just the manufacturer's estimate, and the dealer is the one who makes arrangements with the buyer. The FTC seems to be most interested in clarifying that the sticker price is only the suggested price. [CBS] The Supreme Court ruled that social workers have the right to visit the homes of welfare recipients. [CBS] Lester Maddox was sworn in as Lieutenant Governor of Georgia; Jimmy Carter is the new Governor. Carter declared that the time for racial discrimination is over. In Atlanta, the 19-gun salute to Carter shattered windows in a state government building. [CBS] Former Health, Education and Welfare Secretary John Gardner has filed a lawsuit to close loopholes in financial rules for political campaigns. A House committee proposed that the names of House candidates who do not comply with financial reporting laws be turned over to the Justice Department. Citizens' lobbies such as Gardner's have developed as a result of slow responses from the government. Gardner's suit asks for an injunction, but not criminal penalties, for violations of the 1925 campaign spending limit law. [CBS] A federal grand jury indicted retired Maj. Carl Turner, charging that he unlawfully solicited gifts of 423 guns and evaded income tax payments. [CBS] CBS has learned that the federal government is sitting on a report which claims that mercury pollution of food goes far beyond tuna and swordfish. [CBS] The new ecology campaign questions whether growth necessarily means progress. Oregon Governor Tom McCall believes that a significant population increase in his state would turn it into a "disaster area." Oregon is fighting further development and so-called progress. Television and magazine ads promoting Oregon were eliminated, campsite restrictions have been implemented, and plans for new freeways are canceled. McCall always ends his speeches with an appeal to come back and visit Oregon -- but don't move here. [CBS] A German freighter was the one which hit another ship and caused it to sink yesterday in the English Channel. The German ship sank in two minutes; there were 11 survivors. [CBS] The Soviet government charged that the U.S. is failing to give Russian diplomats in America adequate protection against militant Jews. In New York City, the Russian press secretary said that the harassment became possible through the connivance of the U.S. government, noting that those who were arrested were later released without trial.Rabbi Meir Kahane was arrested then released on bail. The Jewish Defense League vows to continue harassing Russian officials in the United States. [CBS]

Stock Market Report

Dow Jones Industrial Average: 844.19 (+6.98, +0.83%)
S&P Composite: 92.72 (+0.74, +0.80%)
Arms Index: 0.76

	Issues	Volume*
Advances	1,145	13.58
Declines	327	2.94
Unchanged	210	1.28
Total Volume		17.80

* 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*
January 11, 1971	837.21	91.98	14.72
January 8, 1971	837.01	92.19	14.10
January 7, 1971	837.83	92.38	16.46
January 6, 1971	837.97	92.35	16.96
January 5, 1971	835.77	91.80	12.60
January 4, 1971	830.57	91.15	10.01
December 31, 1970	838.92	92.15	13.39
December 30, 1970	841.32	92.27	19.14
December 29, 1970	842.00	92.08	17.75
December 28, 1970	830.91	91.09	12.29