News stories from Monday July 9, 1973
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- The General Accounting Office criticized last year's wheat sale to the Soviet Union. Its latest report to Congress confirms that the sale hurt consumers in the United States. The federal government paid unnecessarily large export subsidies to companies that sold grain to Russia, which resulted in increased prices here and hardships on the American taxpayer. Congressman John Melcher charged that the Agriculture Department and export companies worked too closely together. All arrangements between them were made at the expense of taxpayers and farmers, he said.
Asst. Secretary of Agriculture Carroll Brunthaver stated that prices increased because of greater consumer demand, not because of any deal between the Agriculture Department and export companies. He further noted that a drought which occurred after the Russian wheat sale caused higher prices, as did the devaluation of the dollar. The General Accounting Office is not satisfied and will continue its probe. Senator Henry Jackson also plans an investigation into conflict of interest and other possible unethical behavior by grain companies and the Agriculture Department.
[CBS] - Former Attorney General and Nixon campaign director John Mitchell met with the Senate Watergate committee today in preparation for his first day of testimony tomorrow. Mitchell emerged in good spirits after four hours with the committee. A Senate source said that Mitchell's meeting with the committee filled with denials -- he didn't approve the bugging, didn't implicate President Nixon, and claimed that Jeb Magruder was behind the cover-up operation. Mitchell did admit approving the hush money for G. Gordon Liddy and E. Howard Hunt so that the President's re-election campaign would not be harmed. Mitchell did not link Charles Colson to the Watergate scandal at the meeting today. [CBS]
- John Mitchell's attorney is in New York to try to get the grand jury's perjury and conspiracy charges against Mitchell dropped. His lawyer said that the Watergate matter was improperly used to obtain indictments of Mitchell in the case stemming from illegal campaign contributions by financier Robert Vesco. [CBS]
- Columnist Jack Anderson reports that former White House aide H.R. Haldeman retained a list of Republican Senators who displeased President Nixon. Some Senators reportedly on the list reacted. Senator Richard Schweiker believes that the White House treated good and bad guys all the same, and said that he suffered nothing from being on the list. Senator William Saxbe said that the President kept Haldeman and John Ehrlichman in the White House because they ran a tight ship; but he didn't really care what methods they used to keep the ship tight. The senators agreed that Ehrlichman and Haldeman looked at Congress with disgust. But with Melvin Laird's appointment as White House adviser that attitude may have vanished. [CBS]
- Congressman Bertram Podell claimed that Justice Department officials halted an antitrust probe into one of Robert Abplanalp's firms. Abplanalp is President Nixon's good friend and helped him buy his San Clemente, California, home. [CBS]
- American Airlines asked the Nixon re-election committee to return $55,000 in illegal funds it contributed. There has been no word from the committee yet. [CBS]
- On his way back to Washington, President Nixon stopped in Kansas City for the swearing-in ceremonies of new FBI director Clarence Kelley. After taking the oath of office, Kelley hinted that the mistakes of former FBI director L. Patrick Gray won't be repeated. Kelley pledged to enforce the law and serve justice personally and officially.
In Kansas City, President Nixon talked about improving conditions abroad and here at home. He made no mention of Watergate. The President said that five years ago crime and drug use were escalating out of control, but now are being held down. He said that today's problems have not yet been conquered, but they are constantly being worked on.
[CBS] - Senator Henry Jackson stated that a probe should be conducted to determine if large oil companies and their holdings should be broken up. A Federal Trade Commission study showed that industrial concentration and market control helped create the current gasoline shortage. [CBS]
- The state of Florida also believes that large oil companies should be subdivided. Florida has brought charges against the major oil companies, claiming that they have a monopoly on exploring, drilling, refining and distributing gas and oil, so they can charge any price they choose. Florida attorney general Robert Shevin stated that oil companies are anti-competitive, causing independent gas stations to go out of business which results in higher prices. [CBS]
- Reverend Ralph Abernathy resigned as president of the Southern Christian Leadership Conference, saying that financial problems within the SLCS were the reason for his resignation. Abernathy replaced Martin Luther King after his assassination. He placed the blame for the lack of funds on blacks. Abernathy said that blacks with jobs resulting from help they received from the SCSC should donate money rather than spending it frivolously. Abernathy also stated that Mrs. Martin Luther King didn't support the Southern Christian Leadership Conference as she should have. Mrs. King issued a press release but didn't answer Abernathy's charges. She said that she is sorry to see Abernathy leave. [CBS]
- The U.S. Peace Corps volunteers who were being held in Uganda have been released. They were seized by Ugandan President Idi Amin while they were en route to Zaire. The State Department is investigating the incident. Amin sent an insulting telegram to President Nixon on July 4 regarding Watergate, and a rebuke was sent back by the United States. Then Amin detained the plane and the Peace Corps members, saying that the Americans might be mercenaries. The president of Zaire finally convinced Amin to release the captives. The U.S. may break off diplomatic relations with Uganda. [CBS]
- The value of the dollar increased somewhat in Europe, but plunged again in Asia. [CBS]
- As the dollar loses ground, the price of gold rises. This has caused a renewed interest in gold mining. During the gold rush years, Cripple Creek, Colorado, was a boom town, rich with vice and graft as well as gold. Now Cripple Creek is just a tourist attraction, but gold fever is coming back. Old mine shafts have been reopened and mining companies are moving in. If the town's residents are smart, they will take advantage of the new interest in gold mines. The value of gold may rise or fall, but tourists will keep coming to Cripple Creek to enjoy its rowdy history. [CBS]
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Stock Market Report
Dow Jones Industrial Average: 877.26 (+7.15, +0.82%)
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 6, 1973 | 870.11 | 101.28 | 9.98 |
| July 5, 1973 | 874.32 | 101.78 | 10.50 |
| July 3, 1973 | 874.17 | 101.87 | 10.56 |
| July 2, 1973 | 880.57 | 102.90 | 9.83 |
| June 29, 1973 | 891.71 | 104.26 | 10.77 |
| June 28, 1973 | 894.64 | 104.69 | 12.76 |
| June 27, 1973 | 884.63 | 103.62 | 12.66 |
| June 26, 1973 | 879.44 | 103.30 | 14.04 |
| June 25, 1973 | 869.13 | 102.25 | 11.67 |
| June 22, 1973 | 879.82 | 103.70 | 18.47 |