News stories from Tuesday May 1, 1973

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

It was learned today that President Nixon ordered an investigation into the leak of the Pentagon Papers, which led to G. Gordon Liddy's and E. Howard Hunt's burglary of the office of Daniel Ellsberg's psychiatrist. The Senate called on the President to name an independent prosecutor to investigate Watergate. FBI agents are guarding the files of White House aides John Ehrlichman, H.R. Haldeman and John Dean.At the Pentagon Papers trial in Los Angeles, Judge Matthew Byrne gave defense attorneys a copy of his FBI interview with John Ehrlichman. The interview reveals that Ehrlichman, on orders from President Nixon, launched a White House investigation of the Pentagon Papers leak and hired Liddy and Hunt to carry it out. Defense attorney Leonard Boudin called for a mistrial. Ehrlichman stated that he had no advance knowledge of the break-in and when he learned of it told Hunt and Liddy not to do it again. Ellsberg said that the question now is whether the President ordered the illegal activity. The Washington Star News reported that Hunt billed the White House for four hours of work on the day of the burglary, and was paid $100 per hour. Ehrlichman says that he intends to cooperate fully with all proper investigations, and he blamed the press for causing his resignation. Ehrlichman denied that he wanted L. Patrick Gray to destroy documents from E. Howard Hunt's safe and stated that he intends to be cleared of any wrongdoing. Former Attorney General Richard Kleindienst said that the Justice Department investigation of Watergate was diligent and he opposes having an independent counsel investigate the case. The Watergate grand jury heard testimony today from Nixon attorney Herbert Kalmbach. [CBS] Charles Percy introduced, and the Senate unanimously passed, a resolution calling on the President to appoint an independent counsel to investigate Watergate. Percy insisted that the Senate would not accept anyone who had to report to or take orders from the President. Senator Carl Curtis noted that not enough members were on the floor at the time of the vote and therefore the resolution should be rescinded.Republican Senator Marlow Cook said that he disapproves the appointment of "Nixon man" Elliot Richardson as Attorney General. Cook is on the committee which must confirm Richardson's appointment, and reporters suspect that the appointment of an outside agent to investigate Watergate may be the price of Richardson's confirmation. President Nixon talked informally with West German Chancellor Willy Brandt today. Meanwhile at the White House, the FBI stationed guards to watch over the files of former aides Haldeman, Ehrlichman and Dean. Presidential press secretary Ron Ziegler apologized to the Washington Post for his criticisms of its reporting of the Watergate scandal. [CBS] President Nixon made moves to restaff the White House. Steve Bull will fill in temporarily for H.R. Haldeman; Ehrlichman's replacement is Kenneth Cole, at least for the present. Leonard Garment replaces John Dean. Pat Buchanan, an outspoken conservative, appears to be rising in the White House power structure. [CBS] President Nixon's Watergate speech indicates that the investigation is now in good hands and he can turn his attention to more important things. But Congress was not impressed with Nixon's speech -- the investigation is still in the hands of the executive branch, and the President's integrity in the matter has yet to be demonstrated. Reform of the electoral system is needed. The enforcement of campaign spending laws should be taken out of the Justice Department, which has done little to enforce those laws. [CBS] Robbers held grade-school children and teachers hostage in Peoria, Illinois, today until police forced them to surrender. Police shot and killed one robber; the two remaining men surrendered. [CBS] William Sullivan of the State Department warned that North Vietnam must decide either to adhere to the cease-fire agreement or face the resumption of fighting. [CBS] President Nixon sent a $2.9 billion foreign aid bill to Congress. [CBS] Communist party leader Leonid Brezhnev vowed to improve relations with the United States, Japan and Western Europe. [CBS] The flooding of the Mississippi River has done great damage to farms. Heavy rains last fall kept part of the Mississippi cotton crop from being harvested. Now the Mississippi delta faces economic disaster because farmland is flooded and it will be too late to plant when the floods recede. Farmers can expect little relief from the government, according to Agriculture Secretary Earl Butz. [CBS] Interior Secretary Rogers Morton warned of the potential for serious gasoline shortages this summer. [CBS] The government stated that it expects the budget deficit for the year to be $19.8 billion rather than the $25 billion previously predicted. [CBS] President Nixon will issue a new message on the economy after meeting tomorrow with his economic advisers. [CBS] A judge in New York City has ordered Mrs. Hermine Braunsteiner Ryan to be extradited to West Germany to face Nazi war crimes charges. Judge Jacob Mishler said that there is sufficient evidence that Ryan was involved in war crimes to warrant her extradition. [CBS] Narcotics agents raided two houses in Collinsville, Illinois, and terrorized the inhabitants -- who were innocent of any crime. Herbert and Louise Giglotto were sleeping when armed agents broke into their house. The agents held a pistol to Herbert's head and verbally abused Louise while the house was searched. Agents threatened to kill Mr. Giglotto. Drug Abuse Law Enforcement Program director Myles Ambrose explained that the agents had the wrong addresses of houses to be raided.The Giglottos say that dozens of people have called them to relate similar raids on their houses. Herbert said that he hopes the agents don't make more mistakes of this kind. Louise said that the raid has made her nervous and depressed, and the house is still a mess. Mike Askew stated that his mother was the victim of a similar raid; she is in the hospital after suffering a nervous breakdown. The Askews have filed a $1 million damage suit against the government, and the Giglottos are doing the same. [CBS]

Stock Market Report

Dow Jones Industrial Average: 921.21 (-0.22, -0.02%)
S&P Composite: 107.10 (+0.13, +0.12%)
Arms Index: 0.92

	Issues	Volume*
Advances	643	6.39
Declines	749	6.87
Unchanged	375	2.12
Total Volume		15.38

* 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 30, 1973	921.43	106.97	14.82
April 27, 1973	922.19	107.23	13.73
April 26, 1973	937.76	108.89	16.21
April 25, 1973	930.54	108.34	15.96
April 24, 1973	940.77	109.99	13.83
April 23, 1973	955.37	111.57	12.58
April 19, 1973	963.20	112.17	14.56
April 18, 1973	958.31	111.54	13.89
April 17, 1973	953.42	110.94	12.83
April 16, 1973	956.73	111.44	11.35