News stories from Tuesday December 4, 1973
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- The White House has apparently moved closer to implementing a higher gasoline tax and a rationing system to meet the fuel shortage. Gasoline and home heating oil costs would rise. President Nixon praised Americans' voluntary cuts to help deal with the energy crisis, thanking families for their spirit of sacrifice. The President named William Simon as head of the new Federal Energy Administration; Simon succeeds John Love. Simon stated that he favors gasoline rationing only as a last resort. He added that he doesn't believe oil companies are making windfall profits from the energy shortage. [CBS]
- Simon's office faces a problem: the U.S. relies on the oil industry to supply it with information regarding the amount of energy that is available. Senator Henry Jackson said that the oil industry's complete dominance over crucial knowledge is "disgusting". Atlantic Richfield CEO Robert Anderson insisted that the federal government is supplied with all usable facts and figures.
But sometimes, no figures are available from the oil companies. California state legislator Kenneth Cory reported that Exxon refuses to supply California with information regarding refining costs in California. Mobil and Union Oil also refuse to provide that data. Secrecy is also a problem with natural gas. Most of the costs which are regulated by the Federal Power Commission are based on figures supplied by oil companies. Federal power commissioner George Donkin cited instances of oil companies lying about gas reserves. Senator Philip Hart stated that oil companies are after profits, no matter what actions are required to achieve them.
[CBS] - The Justice Department is uncertain whether the White House proposal to call in oil executives to help deal with the energy crisis is legal. Conflict of interest and antitrust laws may be violated. [CBS]
- The Phillips 66 corporation pleaded guilty to making an illegal contribution to the 1972 Nixon re-election campaign, and was fined. [CBS]
- American Petroleum Institute president Frank Ikard said that the oil shortage will last for many years and will cause American lifestyles to change. Gasoline rationing is inevitable and solar heating will come relatively soon. [CBS]
- The Senate passed the bill to place the U.S. on permanent daylight savings time as an energy-conserving measure. The beginning date is yet to be decided. [CBS]
- The government refused an allotment of extra diesel fuel which was requested by the Postal Service to deliver Christmas mail. Deliveries will likely be delayed. [CBS]
- Truck drivers protested higher operating costs and lower speed limits by blockading interstate highways in four states today. A nationwide truckers' strike is possible. Interstate 80 in Pennsylvania was blockaded by over 100 independent truckers, causing traffic tie-ups for hours on both sides of the highway. Protest organizer J.W. Edwards declared that trucks must be allowed to transport goods in the most efficient time possible. Trucker Duane Jeffers warned that truckers will resort to stoppages again unless their demands are met, and products won't reach consumers. The Teamsters Union stated that it was not behind today's protest. [CBS]
- Over 200,000 automotive industry workers will be laid off as a result of the energy crisis. Most workers will receive a good portion of their regular weekly salary while laid off, however. [CBS]
- Judge John Sirica heard testimony from former White House aide Lawrence Higby regarding former chief of staff H.R. Haldeman and his duties in the White House. [CBS]
- The Senate Watergate Committee heard testimony from an associate of Howard Hughes regarding a contribution given by Hughes to Bebe Rebozo for President Nixon's 1972 re-election campaign. $100,000 was turned over to the Watergate committee. It was allegedly the same money which was returned to Howard Hughes by Rebozo. Hughes' lawyer Chester Davis dumped the money in front of committee chairman Sam Ervin. [CBS]
- President Nixon's lawyers confided to a group of Republican congressmen that Mr. Nixon's net worth currently stands at $1 million. The attorneys will allow a congressional committee to examine the validity of the President's tax deductions. [CBS]
- A federal judge convicted attorney William Kunstler and three of the "Chicago 7" defendants on contempt charges which were filed during their trial four years ago. Jerry Rubin, Abbie Hoffman and David Dellinger were charged along with Kunstler. [CBS]
- Secretary of State Henry Kissinger will visit Middle East countries beginning on December 13. He is scheduled to visit Egypt, Saudi Arabia, Syria, Lebanon and Israel. [CBS]
- A hand grenade thrown into the market area of Jerusalem injured several persons. [CBS]
- South Vietnam's Central Highlands are under attack by North Vietnam. [CBS]
- The Viet Cong denied responsibility for the recent attack on South Vietnam's largest oil depot. South Vietnam launched punitive air strikes at Communist build-ups along the North Vietnam border. [CBS]
- Union members went on strike at three large grocery store chains in California. Many shoppers reacted angrily to supermarket closings. Stores which remained open were crowded. [CBS]
- Kidnapping insurance is available in Italy now. [CBS]
- A nursing home fire in Wayne, Pennsylvania, took nine lives and injured 40. [CBS]
- Alfred Fuller, the founder of the Fuller Brush company, died. [CBS]
- The present crisis has inspired Americans to look for new ways to get around the gasoline shortage. A Bedford, Massachusetts, company called Electromotion manufactures an electric car which is run by batteries. The firm believes that electric cars are an answer to the fuel shortage. An electric car still must use some energy, however, because coal or oil must generate the electricity. [CBS]
- The loan activities of the Small Business Administration are under investigation by Congress and the Justice Department. SBA director Thomas Kleppe denied virtually all charges. [CBS]
- Lucy Morgan, a reporter for the St. Petersburg Times, was recently found in contempt for not revealing the source of one of her stories. Mrs. Morgan then named one source, state's attorney James Russell. Russell was the one who subpoenaed Mrs. Morgan and demanded that her source be named. [CBS]
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Stock Market Report
Dow Jones Industrial Average: 803.21 (-3.31, -0.41%)
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* |
| December 3, 1973 | 806.52 | 93.90 | 17.90 |
| November 30, 1973 | 822.25 | 95.96 | 15.38 |
| November 29, 1973 | 835.11 | 97.31 | 18.87 |
| November 28, 1973 | 839.78 | 97.65 | 19.99 |
| November 27, 1973 | 817.73 | 95.70 | 19.75 |
| November 26, 1973 | 824.95 | 96.58 | 19.83 |
| November 23, 1973 | 854.00 | 99.44 | 11.47 |
| November 21, 1973 | 854.98 | 99.76 | 24.26 |
| November 20, 1973 | 844.90 | 98.66 | 23.96 |
| November 19, 1973 | 862.66 | 100.71 | 16.70 |