News stories from Tuesday June 12, 1973

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

Maurice Stans, the financial director for the Nixon re-election campaign, testified today at the Senate Watergate hearings. After assurances to Stans and attorney Robert Barker that no questions about the Vesco case would be asked, Stans testified. He stated that he had no sabotage plan in mind, knew nothing of Watergate, and tried to abide by election laws. Stans denied the existence of an alleged memo saying that Stans had $1 million in Commerce Department funds that could be used for the 1972 re-election campaign. He testified that he went to John Mitchell to talk about how campaign money was being used; Mitchell told him to talk to Jeb Magruder about the money that was given to G. Gordon Liddy. That money was actually used to finance the Watergate break-ins.Stans admitted giving campaign funds to former Nixon attorney Herbert Kalmbach after Kalmbach asked for cash for a top White House project. Stans gave him $75,000 plus $30,000 from a Philippine businessman. Senator Joseph Montoya asked the identity of the official who authorized the expenditure. Stans replied that Kalmbach recently told him that former White House counsel John Dean gave the order. [CBS] Judge John Sirica made some rulings today which will affect the Watergate hearings. He granted partial immunity to former White House counsel John Dean and campaign director Jeb Magruder before the Senate Watergate committee hearings; Dean received no immunity for his grand jury testimony. Reports say that Dean appeared but took the fifth amendment before the grand jury. Judge Sirica stated that he has no authority to stop the Senate hearings from being televised. [CBS] Convicted Watergate conspirator E. Howard Hunt is suing United Airlines and the Boeing Aircraft corporation because of his wife's death in an plane crash. William F. Buckley, the administrator for Hunt's estate, joined Hunt as a plaintiff. [CBS] Congressional pressure is forcing President Nixon into an anti-inflation decision; an announcement on new proposals is imminent. The President will explain the new controls this week. The controls will be selective, not a complete freeze, but will contain some mandatory sections. Melvin Laird and John Connally are both pressing the President for a stricter economic policy. [CBS] Economic troubles are hitting young families looking for suburban housing. Home costs have increased 90% nationwide in the last decade. In Bergen County. New Jersey, a suburb of New York City, costs have more than doubled. A house bought for $12,000 in the 1950's is worth $45,000 today. In the Chicago suburbs, the cheap construction of new houses is causing them not to sell as well as older, stronger homes. Prices are now soaring for older homes, and with the short supply prices will go higher. A typical $15,000 house in the Los Angeles area is now selling for $30,000. The price increase for housing has been caused by inflation, high interest rates and supply & demand. [CBS] The Justice Department filed suit against Texaco for trying to limit gasoline supplies to independent stations. [CBS] Congress is holding hearings on the impact of the fuel shortage on farmers. Agriculture Secretary Earl Butz spoke today before the Senate Agriculture Committee. Butz believes that voluntary fuel allocation is working, but he will recommend mandatory allocation if farmers are in need. Senator Hubert Humphrey warned that an international food shortage will result if mandatory fuel allocations are not set up to help farmers. Senator Robert Dole agreed that mandatory controls are needed now. It appears that the government will introduce enforced controls for fuel distribution. [CBS] Temperatures in excess of 90 degrees continue to put a strain on Northeatern power companies. Con Ed has reduced voltage 5% in New York City. In DC, federal agencies are cutting back on lights. [CBS] Henry Kissinger and North Vietnam's Le Duc Tho met again in Paris, France, with still no agreement on making the Vietnam cease-fire work. South Vietnamese sources said that the new proposed agreement contains 14 points, including an end to fighting, supervised South Vietnam elections, the resumption of U.S. mine-clearing in North Vietnamese waters, and a halt to American bombing in Cambodia. Saigon sources claim that the U.S. is putting pressure on President Thieu to sign the agreement, and the U.S. may denounce Thieu as the reason for the failure of the cease-fire failure. Thieu will not sign under those conditions. [CBS] The USS Ranger didn't sail to Vietnam in 1970; a sailor was charged with sabotage and sent to trial. Fireman Patrick Chenoweth was accused of dropping a paint scraper into the ship's generator, which delayed it from sailing for four months. Today he was found innocent. Chenoweth says he is bitter about the matter and believes there was no evidence to put him in jail. Chenoweth will be dismissed from the Navy. [CBS] A car filled with explosives blew up in Coleraine, Northern Ireland. Six people were killed, and 31 were injured. [CBS] Drug manufacturers reported that the Nixon administration's battle against poppies which are used to make illegal drugs may cause a shortage of codeine by this fall. The U.S. government paid Turkey $35 million not to grow poppies for opium; now the government is being urged to release its codeine stockpile for medical use. [CBS]

Stock Market Report

Dow Jones Industrial Average: 927.00 (+11.89, +1.30%)
S&P Composite: 108.29 (+1.59, +1.49%)
Arms Index: 0.68

	Issues	Volume*
Advances	988	9.16
Declines	439	2.77
Unchanged	331	1.91
Total Volume		13.84

* 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*
June 11, 1973	915.11	106.70	9.94
June 8, 1973	920.00	107.03	14.05
June 7, 1973	909.62	105.84	14.16
June 6, 1973	898.18	104.31	13.08
June 5, 1973	900.81	104.62	14.08
June 4, 1973	885.91	102.97	11.23
June 1, 1973	893.96	103.93	10.41
May 31, 1973	901.41	104.95	12.19
May 30, 1973	908.87	105.91	11.73
May 29, 1973	925.57	107.51	11.30