News stories from Wednesday July 19, 1972

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

The AFL-CIO executive council has voted to sit out the 1972 presidential campaign. AFL-CIO president George Meany stated that he will vote for neither Nixon nor McGovern. Pro-McGovern forces sought a cooling-off period. Jerry Wurf, president of the government workers union, proposed a meeting of the larger general board which McGovern would be invited to address; that move was rejected. Meany stated that unions will concentrate on the election of pro-labor candidates to Congress, and union affiliates are free to support the candidate of their choice.Meany's action was taken because he opposes McGovern's position on Vietnam, his legislative record, his failure to woo Meany, his softness on homosexuality and marijuana, and fear that youth reform will end labor domination of the Democratic party. This decision will cost McGovern union money. Some say the move is political suicide for the AFL-CIO, but Meany's lieutenants say that after McGovern loses they will pick up the pieces and put the party back together their way. [CBS] The AFL-CIO's decision was a disappointment to George McGovern, but noted that the council's decision does not limit the ability of individual unions to support the McGovern-Eagleton ticket. McGovern will fly to Washington, DC to vote against an administration-backed amendment which raises the minimum wage to $2.00 per hour rather than the $2.20 advocated by organized labor and the Democrats. [CBS] Vice-presidential nominee Thomas Eagleton was also disappointed by Meany's action, but will continue his efforts to win organized labor's backing, including Meany. Nixon campaign chairman Clark MacGregor said that the AFL-CIO's move is a psychological blow which McGovern brought on himself, and the loss of union workers will be crippling to McGovern's campaign. [CBS] Senator William Saxbe says that President Nixon needs a running mate who is more friendly, outgoing and enlightened than Spiro Agnew; Senator Javits started an anti-Agnew movement yesterday. Senators Goldwater, Gurney and Buckley are fighting to retain Agnew on the Republican ticket. [CBS] George Wallace underwent surgery in a Birmingham hospital to drain an abdominal infection that was caused by a bullet wound during the assassination attempt in May. [CBS] The White House confirmed that foreign affairs adviser Henry Kissinger held secret peace talks with North Vietnamese negotiators in Paris. Kissinger will report to President Nixon upon his return to Washington, DC tonight. Press secretary Ron Ziegler said that Kissinger spent 6 ½ hours conferring with North Vietnam's Le Duc Tho and Xuan Thuy. Further meetings are scheduled. [CBS] South Vietnamese troops ran into enemy resistance in their efforts to recapture Quang Tri, but beat back North Vietnamese attacks and continued to drive toward the center of the city. [CBS] Over North Vietnam, a U.S. Air Force Phantom jet chased a MiG-21 at speeds of 800 miles per hour at treetop level, then shot it down near Hanoi. 300 American jets struck throughout North Vietnam, destroying military targets. [CBS] A 6-month-old boy was killed and four adults were injured in an explosion in Strabane, Northern Ireland. In Belfast, a 71-year-old man was killed by a gunman in a pub. [CBS] Selective Service announced a September draft call of 4.800 men. Lottery numbers above 75 will not be called. A House committee study shows that draft calls could be lowered if more women were recruited. [CBS] The House Education Committee approved a proposal by President Nixon to restrict busing, but eliminated the money which he requested to improve ghetto schools as an alternative to busing. Rep. Albert Quie proposed a substitute bill, claiming that the ghetto school funding included in the bill now would complicate its passage. The new bill bans any new busing at the elementary school level. [CBS] In victory for the Nixon administration, the House killed the $5 billion emergency bill to provide jobs in public works projects. [CBS] Ohio Rep. Charles Vanik charged that several of the nation's biggest corporations paid no corporate income tax last year through a variety of legal devices. Tax reform is a popular issue, and corporations are taking the brunt of criticism about tax loopholes. U.S. Steel says that it paid $57.9 million in taxes in 1971; $47.9 million of that, however, was paid to the country of Venezuela in lieu of mining royalties. Thus U.S. Steel only paid $10 million to the United States.Former Treasury Secretary John Connally said that every so-called "loophole" has been examined by Congress and serves a purpose for the good of the nation. One tax reform proposal before Congress, introduced by Senator Mansfield and Rep. Mills, calls for the systematic review and possible repeal of 58 tax loopholes. [CBS] The House Select Committee on Crime, headed by Rep. Claude Pepper, continued hearings into links between organized crime and horse racing. Raymond Patriarca claimed his fifth amendment rights when asked if he'd ever had any part in the fixing of a horse race. Patriarca, a reputed New England mafia kingpin with alleged ties to gambling, narcotics and prostitution, testified while being flanked by four federal marshals because he is currently serving a jail term for conspiracy. Patriarca stated that he never met Frank Sinatra and knows nothing of his racetrack investments.When asked by Arizona Rep. Sam Steiger whether he had read "The Godfather", for which he reputedly was a model, Patriarca replied that it was a success because the government publicizes organized crime. [CBS] In Kansas and Oklahoma, law enforcement officials boarded Amtrak passenger trains and arrested four crewmen for serving liquor in violation of state laws. Amtrak officials vowed to fight back in court. Liquor service in those two states has been suspended until Amtrak's appeal is decided.Oklahoma state law forbids the sale of liquor by the drink, but Amtrak train bars are open in all states. An Amtrak spokesman in Washington, DC said that the law which created Amtrak as a federally-subsidized corporation pre-empts local laws and he noted that airline passengers can get served while flying over Oklahoma and Kansas. [CBS]

Stock Market Report

Dow Jones Industrial Average: 916.69 (+4.97, +0.55%)
S&P Composite: 106.14 (+0.31, +0.29%)
Arms Index: 0.97

	Issues	Volume*
Advances	796	9.13
Declines	612	6.78
Unchanged	340	1.97
Total Volume		17.88

* 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*
July 18, 1972	911.72	105.83	16.82
July 17, 1972	914.96	105.88	13.17
July 14, 1972	922.26	106.80	13.91
July 13, 1972	916.99	106.28	14.74
July 12, 1972	923.69	106.89	16.15
July 11, 1972	925.87	107.32	12.83
July 10, 1972	932.27	108.11	11.70
July 7, 1972	938.06	108.69	12.90
July 6, 1972	942.13	109.04	19.52
July 5, 1972	933.47	108.10	14.71