News stories from Monday April 4, 1977

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

A disabled Southern Airways DC-9 crashed while attempting an emergency landing on a busy state highway in New Hope, Ga., about 35 miles northwest of Atlanta, killing at least 68 persons, including a number on the ground. The plane struck cars and a grocery store, and burst into flames. It was reportedly carrying 81 passengers and a crew of four. The pilot had radioed that the plane had lost its windshield and both its engines in a storm. [New York Times] The Defense Department hopes that the trouble at the United States Military Academy at West Point caused by cheating scandals and internal friction will be straightened out with the appointment as superintendent of Gen. Andrew Goodpaster, who was recalled from retirement to take the job. General Goodpaster, 62 years old, is a 1939 graduate of the Academy. He is a former commander of the North Atlantic Treaty Organization. [New York Times] "Double dippers," a nickname for retired military personnel on pensions who earn a second check by taking federal civilian jobs, now number about 150,000 and have increased by 83 percent in the last three years. President Carter has said that the practice should be eliminated, and the Post Office and Civil Service Committee of the House of Representatives is preparing to hold hearings. [New York Times] Blue-chip and glamour stocks were the biggest losers in a general tumble of stock prices that was believed to have been caused by growing concern among investors over inflation. The Dow Jones industrial average lost 11.80 points, its biggest loss in three months, and closed at 915.56, its low for the day. This was the Dow's 11th decline in the last 13 sessions, bringing its cumulative loss for the 13 trading days to 52.44 points. [New York Times] The Supreme Court, in a decision that is expected to have broad implications in the mail order industry, ruled that out-of-state mail order houses must collect sales taxes on goods sold in states where they have "substantial presence." The 7 to 0 decision involved a case in which California had imposed a use tax on books, globes and other items sold by the National Geographic Society in California in 1964. The Court reversed two lower courts that upheld the society's contention that the two advertising offices it maintained in California were an insufficient link between the mail order business and the state's taxing authority. [New York Times] Struggling against a takeover by the United Technologies Corporation, the Babcock & Wilcox Company said it would fight the proposed tender offer and asked a federal court in Akron for an injunction. United announced that it intended to offer to buy any and all of Babcock's common stock at $42 a share, which would total about $512 million. The $42 price "is so grossly inadequate that it was never intended to be taken seriously," George Zipf, Babcock's chairman, said in a letter to United's board. [New York Times] New York City's fiscal and economic base is continuing to deteriorate and prospects for an improvement "are not bright," the General Accounting Office reported to Congress. The city may "fall short" of its goal of a balanced budget because of continuing "uncertainties," the office said. The study of the city's financial situation had been ordered by Congress. [New York Times] "The core and crux" of the Arab-Israeli dispute, President Anwar Sadat of Egypt told President Carter, was the Palestinian question. He also said at ceremonies welcoming him to the White House "that no progress whatsoever can be achieved so long as this problem remains unresolved." Mr. Sadat praised Mr. Carter for his recent comments on the Palestinians, presumably making a reference to Mr. Carter's stated support for some kind of Palestinian "homeland," possibly linked with Jordan. He told President Carter: "You came very close to the proper remedy." [New York Times] A major counterattack was started by Palestinian guerrillas in southern Lebanon against Lebanese right-wing Christian militia units that get military support from Israel. Officials in Beirut said the size of the attack was such that it could have been undertaken only in close coordination with Syria, whose troops dominate the Arab peace-keeping force in Lebanon, and with the knowledge and approval of other Arab governments. [New York Times] Relations with Cuba were broken off by Zaire, which charged that it had uncovered evidence that Cuba was involved in the invasion of Shaba Province by rebels based in Angola. The government radio said documents proving the Cuban involvement had been found in the possession of an unidentified Cuban diplomat. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 915.56 (-11.80, -1.27%)
S&P Composite: 98.23 (-0.98, -0.99%)
Arms Index: 1.48

	Issues	Volume*
Advances	442	3.19
Declines	994	10.64
Unchanged	442	2.42
Total Volume		16.25

* 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*
April 1, 1977	927.36	99.21	17.05
March 31, 1977	919.13	98.42	16.51
March 30, 1977	921.21	98.54	18.81
March 29, 1977	932.01	99.69	17.03
March 28, 1977	926.11	99.00	16.71
March 25, 1977	928.86	99.06	16.55
March 24, 1977	935.67	99.70	19.65
March 23, 1977	942.32	100.20	19.36
March 22, 1977	950.96	101.00	18.66
March 21, 1977	953.54	101.31	18.04