News stories from Friday May 4, 1973
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- E. Howard Hunt testified that the White House authorized the burglary of Daniel Ellsberg's psychiatrist's office. In Los Angeles, Judge Matthew Byrne read to the court testimony given by Hunt to the Watergate grand jury stating that Hunt got permission to break into the psychiatrist's office from the White House. Precisely who authorized the break-in was not publicly stated. Defendant Daniel Ellsberg told Byrne that his attorneys will not participate further in the Pentagon Papers case because the case should be dismissed. Defense attorney Leonard Boudin demanded that the case be dismissed because of the government's illegal activity. [CBS]
- The Florida White House issued a new presidential directive which could limit testimony about Watergate and the Pentagon Papers cases. The directive states that aides cannot discuss their talks with the President at Watergate grand jury hearings, Senate Watergate committee hearings, or to the FBI. [CBS]
- Donald Segretti is being charged by a Florida grand jury with circulating spurious letters during the 1972 Florida primary. Segretti is believed to be the head of the Republican sabotage organization. He is known to have had contacts with E. Howard Hunt and Dwight Chapin and to have received campaign funds. Segretti is alleged to have distributed letters on Senator Edmund Muskie's letterhead accusing Democratic primary candidates Henry Jackson and Hubert Humphrey of sexual misconduct. Jackson said that the court did nothing to find out who wrote the letter, and he believes that the Senate Watergate committee should investigate the incident. George Wallace won the Florida primary. [CBS]
- Former presidential aide John Dean has turned over the key to the safe in which he put Watergate documents before being fired by the White House.
Depositions in the civil suit by Common Cause against the Republicans confirm the existence of a secret Nixon campaign fund which financed Watergate, Donald Segretti and other undercover activities. Hugh Sloan testified that up to $2 million in cash donations to Republicans was never reported and that the records of those contributions were destroyed by order of campaign finance chairman Maurice Stans. Sloan stated that he was offered the job as chief of the Nixon campaign finance committee by Herbert Kalmbach, the President's personal attorney, who sent him to talk with H.R. Haldeman. Dean directed the operations which were designed to circumvent gift taxes on large campaign donations.
Former aides John Ehrlichman and H.R. Haldeman arrived with their attorney for questioning by the Senate Watergate committee today. Haldeman stated that his testimony will clear up any implications that President Nixon was involved in Watergate.
[CBS] - General Alexander Haig has been chosen as the temporary replacement for presidential aide H.R. Haldeman; press secretary Ron Ziegler says that more staff changes can be expected. Ziegler had no comment on a Gallup poll which indicates that half of Americans now believe that President Nixon was involved in the Watergate cover-up.
Elliot Richardson, formerly Secretary of Defense, was chosen as the new Attorney General. General Haig becomes the second Pentagon official to get a White House position as the result of Watergate. Haig was surprised by his new assignment. David Packard may become the new Secretary of Defense, but he is hesitating to take the job. Several Pentagon positions are now vacant, but it is difficult to recruit people for them. Deputy Defense Secretary William Clements is in charge at the Pentagon until Richardson is replaced.
[CBS] - Martha Mitchell said that her intuition told her "something was wrong" regarding the Watergate incident. [CBS]
- Republicans are having trouble selling tickets to a $1,000 a plate dinner with President Nixon and Vice President Agnew. The dinner's chairman has sent out letters disassociating his party with the Watergate scandal.
Dr. John Lundgren, President Nixon's physician, claims that Nixon's medical files were broken into twice during the 1972 campaign.
[CBS] - An uneasy cease-fire is in effect in Lebanon between the government and guerrillas after two days of fighting. Lebanon and other Arab countries feel they must either exterminate the Palestinian guerrillas or include them in peace talks with the Israelis. Many Lebanese are hostile toward the Palestinians because of the trouble they cause. The Lebanese army is concerned about reports that guerrillas are crossing into Lebanon from Syria. [CBS]
- A U.S. bomber crashed into a crowded military barracks near Phnom Penh, Cambodia. At least 20 persons were killed; the pilot escaped injury. [CBS]
- Henry Kissinger is visiting Moscow to discuss the upcoming visit to America by Soviet party leader Leonid Brezhnev. [CBS]
- The Soviet Union is conducting a crash program to bring in the year's agricultural harvest. Last year's wheat shortage forced the Soviets to import much grain from the United States. [CBS]
- The Atomic Energy Commission will conduct an experiment in Rio Blanco, Colorado, which may release new energy sources. But the experiment involves a nuclear explosion and not everybody is happy about it. The explosion is supposed to release underground gas sources. Geologist David Evans is worried about underground water contamination, but the AEC says that water contamination is extremely unlikely. Environmentalists oppose the blast, and one resident blamed the last nuclear blast in the area for causing the collapse of his store. [CBS]
- The unemployment rate in April remained at 5.0%. [CBS]
- Major banks increased their prime lending rate to 7%. [CBS]
- A court upheld a Berkeley, California, law relaxing the enforcement of marijuana laws until a May 17 hearing. [CBS]
- Most of those who have been convicted in the Watergate case are members of the anti-Castro movement. The Miami Cuban community is upset over the Watergate scandal. Genaro Perez, who has a photograph shop in Miami, earlier testified under oath that he did not develop photos of Democrat documents brought to him by the Watergate spies. Perez now says he lied because those involved in Watergate were mostly CIA men. Perez claims he was told that the Watergate was broken into because the Democrats had taken money from the Castro government in exchange for promises to make concessions to Castro after George McGovern became president. Florida attorney Richard Gerstein said that new testimony proves that the Watergate offices were broken into several times. Relations between the Cuban community in the U.S. and the federal government have been severely damaged by Watergate. [CBS]
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Stock Market Report
Dow Jones Industrial Average: 953.97 (+8.30, +0.88%)
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* |
| May 3, 1973 | 945.67 | 110.22 | 17.76 |
| May 2, 1973 | 932.34 | 108.43 | 14.38 |
| May 1, 1973 | 921.21 | 107.10 | 15.38 |
| 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 |