News stories from Thursday July 26, 1973

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

President Nixon refuses to honor the subpoenas for White House tapes and documents that were issued by the Senate Watergate committee and special prosecutor Archibald Cox. Cox went to court today, obviously ready for the President's refusal. Judge John Sirica read the letter refusing access to the White House tapes. Cox produced a petition for a court order, and Judge Sirica agreed to a hearing between Cox and Nixon's attorney to discuss the reasons for not surrendering the tapes. Cox stated that although the President's legal position was presented in good faith, he feels it's wrong because the tapes are needed to continue the investigation properly.Senate Watergate committee chairman Sam Ervin also received the letter from the President refusing the tapes and documents. The President said that documents would be supplied if the committee specified exactly which documents it needs. Senator Howard Baker moved that the Watergate committee go to court to secure the tapes and documents, and the senators voted unanimously to take the matter to court. Ervin defended the action as being essential to determine whether the President is above the law. Speaking for the White House, attorney Charles Wright said that President Nixon would hand over all documents dealing with politics, along with those that wouldn't affect relations with confidential advisers. Assistant press secretary Gerald Warren declared that the President will abide by any definitive ruling of the Supreme Court. Cox called the matter a grave constitutional conflict, ripe for a court ruling. [CBS] Former White House aide John Ehrlichman continued with his testimony before the Senate Watergate committee. Ehrlichman was challenged by Lowell Weicker regarding the necessity for the so-called plumber's unit to probe Daniel Ellsberg because FBI director J. Edgar Hoover was dragging his feet. Weicker questioned whether the real reason for the break-in was to smear Ellsberg. Ehrlichman stated that the objective of the break-in wasn't prosecution or persecution; the decision was make reluctantly in order to supplement an inadequate probe by the FBI, and was taken to satisfy the President's questions as to how Ellsberg could have stolen the Pentagon Papers. The President wanted to be sure that such a theft never occurred again. To understand how and why Ellsberg committed burglary to get the Pentagon Papers, investigators felt that Ellsberg's role had to be examined by every available means,Weicker reprimanded Ehrlichman for leaving acting FBI director L. Patrick Gray in office after Ehrlichman learned that Gray destroyed documents from E. Howard Hunt's safe. Ehrlichman noted that President Nixon ordered a probe of Gray following that incident. Howard Baker questioned Ehrlichman about any undisclosed plumber's unit activities which were taken for reasons of national security. Ehrlichman stated that he has executive privilege regarding the disclosure of sensitive material and would not talk about the matter; Baker said that Ehrlichman's refusal would obstruct the committee's search for the truth, and asked if the national security considerations were really that important. This was the first time that executive privilege was invoked. [CBS] The administration will maintain the price freeze on beef until September 12 despite predictions of beef shortages. Treasury Secretary George Shultz feels that meat-packing house closings are exaggerated.The Columbia Packing Company in Dallas, Texas, has closed its pens for at least one week. The company can't afford the price of beef as long as their costs can't be passed on to the consumer. A Meat Packers Association spokesman warned that meat will disappear from markets in early August. Unless President Nixon acts immediately, he continued, beef prices will skyrocket when the freeze ends on September 12 and prices may double. Pentagon buyers for the armed services disclosed that meat, poultry, eggs and perhaps sugar shortages are expected. Beef is set to rise 15-20% when the freeze is removed. [CBS] Farmers say that there won't be any wheat shortages although wheat is currently being kept off the market. Wheat now being harvested is being withheld to create consumer demand. Wheat farmers believe that Americans and foreign countries must pay higher wheat prices. Farmers are experienced businessmen now and won't take the least amount possible for their crops. Farmers intend to continue withholding wheat to keep prices up. [CBS] Speaking in Dallas, Secretary of Labor Peter Brennan reported that the Nixon administration will allow occasional wage increases larger than the 6.2% Phase IV guideline, because inflation affects some workers more than others. He did not elaborate on which workers would be affected. [CBS] The U.S. trade deficit last month was only $15.5 million. The Commerce Department said that exports set new records in June. [CBS] The budget deficit for the last fiscal year was $14.4 billion, which was less than expected. The President believes that the budget may be balanced if Congress controls its spending. [CBS] Communist insurgents have surrounded Phnom Penh, Cambodia. Government officials claim its troops can hold the Communists off, but troops are drawing closer. Suburbs were attacked by Communist troops although U.S. air support tried to stop the attacks.At least 20 are dead and many more were injured in today's rush-hour attacks. The British and Australian embassies advised their citizens to leave Phnom Penh. Communist insurgents are within easy range for attack on many sides of Phnom Penh.. [CBS] Former Defense Secretary Melvin Laird admitted ordering secret bombings of Cambodia and Laos in 1969 and 1970 when those countries were supposedly neutral. Laird said he ordered the bombings with President Nixon's approval. The reason for secrecy was to avoid embarrassing Cambodian leader Prince Sihanouk, who approved the secret bombings. Laird stated that Congress should have been notified of the bombings and it was just a foul-up that Congress wasn't told. Laird said that the President meant that no ground troops were being used in Cambodia and Laos when he said that their neutrality had been respected in April, 1970. [CBS] The U.S. vetoed a resolution in the United Nations Security Council. Ambassador John Scali kept a resolution from passing which deplored Israel occupation of Arab land taken in 1967. [CBS] President Nixon nominated Russell Train as director of the Environmental Protection Agency to succeed William Ruckelshaus; the President nominated Ruckelshaus for deputy Attorney General. [CBS] Two planes of the Navy's "Blue Angels" precision flying team crashed in New Jersey. One man was killed, two were injured. [CBS] A follow-up report on Mrs. Robert Brown of Aiken, South Carolina. She was having trouble finding a doctor to deliver her fifth baby because she was on welfare. Doctors told her she should be sterilized.State officials are now investigating doctors who tell pregnant women on welfare they should be sterilized to save taxpayers' money, but many citizens see the sterilization issue as a doctor doing his duty to help limit the size of welfare families and limit the burden on the taxpayer. State welfare director Dr. Archie Ellis has decreed that from now on sterilizations may be performed for medical reasons only. [CBS]

Stock Market Report

Dow Jones Industrial Average: 934.53 (+1.51, +0.16%)
S&P Composite: 109.85 (+0.21, +0.19%)
Arms Index: 0.85

	Issues	Volume*
Advances	729	8.63
Declines	728	7.35
Unchanged	337	2.43
Total Volume		18.41

* 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*
July 25, 1973	933.02	109.64	22.22
July 24, 1973	918.72	108.14	16.28
July 23, 1973	913.15	107.52	15.58
July 20, 1973	910.90	107.14	16.30
July 19, 1973	906.68	106.55	18.65
July 18, 1973	905.40	106.35	17.02
July 17, 1973	898.03	105.72	18.75
July 16, 1973	897.58	105.67	12.92
July 13, 1973	885.99	104.09	11.39
July 12, 1973	901.94	105.50	16.40