News stories from Monday July 2, 1973

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

Cost of Living Council hearings highlighted disagreement with President Nixon's 60-day price freeze. A spokesman for the American Meat Institute said that the present economic controls are harming the balance between producers and consumers. One grocer stated that Americans must be told truth -- there will not be cheaper food prices now or in the future. The era of low food prices has passed. [CBS] CBS shoppers took their monthly trip to the grocery store to check prices (buying the same 25 items each month), looking for effects of the price freeze and possible shortages. In New York City it now costs $20.55 to buy what $20.01 could purchase in March. Prices are up 7.5% in Atlanta and 6.5% in Chicago. [CBS] The Commerce Department announced a new system of soybean and cottonseed export restrictions. 40% of unshipped soybeans may be delivered before the crop year ends. The department also placed an embargo on the export of scrap steel over 500 tons for the rest of the year. [CBS] The probe continues in the murder of Israeli diplomat Col. Yosef Alon. Alon's body has been sent to Israel for burial. Although there is no official word on the identity of Alon's murderer, Israeli broadcasts reported that he was executed by Arab terrorists as revenge for the death of a "Black September" operative in Paris last week.Washington, DC police spokesman Norman Nelson said that information about Alon's murder is being assimilated. The police hope to collect pieces and put them together to find the murderer. Israeli ambassador Sincha Dinitz stated that the involvement of Arab terrorists is not being ruled out. But when asked if there will be reprisals, Dinitz replied that retaliation is not the solution to Mideast problems. [CBS] Former Attorney General John Mitchell admitted privately that he knew about the Watergate hush money payoffs. Mitchell told the investigating committee that he never authorized any payments, and first heard of them at a meeting with John Dean, Fred LaRue, Jeb Magruder and Robert Mardian. Mitchell stated that he never approved G. Gordon Liddy's plan for the Watergate break-in as Magruder testified. Mitchell added that Dean was probably operating under the direction of John Ehrlichman and H.R. Haldeman when her worked in the White House. [CBS] The White House announced that President Nixon will make no comment on Watergate until the first phase of the Senate hearings end in August. Press secretary Ron Ziegler reported that the President will speak out after that time, but the format has not yet been determined. [CBS] Fan mail reflects the fact that the Senate Watergate committee members are now celebrities. Senators Lowell Weicker and Edward Gurney both claim to be receiving mail in their favor. Senators Daniel Inouye, Joseph Montoya and Herman Talmadge reported an increase in mail received, as has committee chairman Sam Ervin. Senator Howard Baker of Tennessee has seen the largest mail increase. Some ask him questions; others tell him how cute he is. [CBS] James Schlesinger went to the California White House to take the oath of office for his new position as Secretary of Defense. [CBS] William Colby is facing Senate confirmation hearings in order to become CIA director, succeeding Schlesinger. Colby appeared before the Senate Armed Services Committee today and promised to keep the CIA out of domestic intelligence. When asked if the CIA would give information to other agencies, Colby responded that although the CIA may help other agencies by giving them information, it would not be used for illegal or unconstitutional purposes. Colby promised a "more open" CIA in the future. [CBS] After a rebellion was crushed by Salvador Allende's government in Chile, the country is on the verge of civil war. However, Santiago, the site of riots which killed 22 people, has returned to normal. The first soldier who was killed while putting down the rebellion was buried today with full military honors. The minister of defense and commander-in-chief were among his pallbearers. They remained loyal to Allende, which is the primary reason why the rebellion failed. Defense minister Orlando Letelier vowed that the Nazi faction behind the rebellion will receive full punishment. [CBS] Sgt. Abel Kavanaugh, one of the former prisoners of war who was charged with misconduct, shot and killed himself last week; he was buried today in Denver, Colorado. His honorary pallbearers consisted of six of the seven other POWs who were also charged by Col. Theodore Guy with aiding the enemy. A priest performed a high mass, which is unusual in cases of suicide. Kavanaugh was buried in Fort Logan National Cemetery. His wife Sandra is expecting their second child. [CBS] The Food & Drug Administration says that anyone with Pertussin medicated spray should destroy it. The FDA and the manufacturer are looking into the death of an Ohio boy whose room was sprayed with a vaporizer. 17 other deaths have also been reported, but those were cases of misuse. [CBS] The "BART" transportation system in the San Francisco Bay area was designed to be a modern answer to transportation problems. The Bay Area Rapid Transit system was supposedly better because of being more automated. However, BART was jinxed from the beginning with mechanical breakdowns, accidents, and now a strike. BART spokesman David Kelsey noted that automation holds down labor costs. But humans are needed to run the machines that run BART, and the humans are on strike. [CBS]

Stock Market Report

Dow Jones Industrial Average: 880.57 (-11.14, -1.25%)
S&P Composite: 102.90 (-1.36, -1.30%)
Arms Index: 1.81

	Issues	Volume*
Advances	466	1.89
Declines	918	6.73
Unchanged	351	1.21
Total Volume		9.83

* 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 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
June 21, 1973	873.65	103.21	11.63
June 20, 1973	884.71	104.44	10.60
June 19, 1973	881.55	103.99	12.97
June 18, 1973	875.08	103.60	11.46