News stories from Monday May 6, 1974

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

President Nixon backed down from his opposition to the Watergate special prosecutor's subpoena for tapes and records of 64 White House conversations. He indicated through his lawyers he was willing to reach an "accommodation" with the prosecution. And, also through his lawyers, he won a five-day delay in the legal proceedings over the subpoena that had been shaping up as another major battle in the courts. [New York Times] Members of the House Judiciary Committee warned that they would be forced to serve a second subpoena on President Nixon if he refused to comply with an April 19 request for tape recordings of 141 more White House conversations sought for the impeachment inquiry. The determination of both Republicans and Democrats on the committee to pursue the request append to be directly related to their study of the edited tape transcripts released by the White House last week. [New York Times] Herbert Kalmbach, former campaign fundraiser and personal lawyer for President Nixon, has testified of a midnight meeting at which he said a top dairy cooperative official was told that milk prices would be increased and that the White House wanted confirmation of a $2 million campaign pledge, sources said.The Lehigh Valley Cooperative Farmers of Allentown, Pa., which represents about 950 milk producers in eastern Pennsylvania, New Jersey and Maryland, was fined $5,000 in Federal District Court. in Washington after pleading guilty to allegations that it illegally gave $50,000 to President Nixon's re-election campaign. [New York Times] Exposures of questionable contributions to President Nixon's re-election campaign and of his relatively small income-tax payments won Pulitzer Prizes for national reporting in the 58th annual announcement of the awards. [New York Times] Detective Robert Leuci, the police-corruption witness being fought over by federal and state prosecutors, set off the battle by providing new information linking organized crime figures to narcotics cases, United States Attorney Paul Curran disclosed today. This strengthened indications that Mr. Leuci was involved in current investigations dating from the so-called French Connection case. [New York Times] Chancellor Willy Brandt of West Germany, taking responsibility for "negligence" that allowed an East German Communist spy to become a member of his staff, took the unexpected step of tendering his resignation to President Gustav Heinemann. He asked that Foreign Minister Walter Scheel be named to fill his place until Parliament elects a successor, A spokesman for Dr. Heinemann said that the President had accepted Mr. Brandt's letter of resignation without insisting that he remain in office. This means that Mr. Scheel will automatically become Chancellor tomorrow. [New York Times] The Senate, voting 43 to 38, rejected an administration request for $266 million in additional military aid for South Vietnam. Senator Edward Kennedy led the Democratic-sponsored attack, which resulted in a serious setback to the administration's foreign policy. [New York Times] Portugal's ruling military junta appealed for a cease-fire in her African territories. Gen. Francisco da Costa Gomes, a member of the junta and chief of the joint defense staff, promised that guerrilla forces opposing Portugal would be able to participate in free political activity leading to a referendum on the territories' future. [New York Times] The United States and the Soviet Union announced unexpectedly that Secretary of State Kissinger would fly from Israel tomorrow to confer in Cyprus with the Soviet Foreign Minister, Andrei Gromyko, who has been in Syria, on the Middle East and overall Soviet-American relations. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 844.88 (-1.02, -0.12%)
S&P Composite: 91.12 (-0.17, -0.19%)
Arms Index: 0.75

	Issues	Volume*
Advances	527	3.73
Declines	816	4.33
Unchanged	394	1.38
Total Volume		9.44

* 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*
May 3, 1974	845.90	91.29	11.08
May 2, 1974	851.06	92.09	13.62
May 1, 1974	853.88	92.22	15.12
April 30, 1974	836.75	90.31	10.98
April 29, 1974	835.42	90.00	10.17
April 26, 1974	834.64	90.18	13.25
April 25, 1974	827.68	89.57	15.87
April 24, 1974	832.37	90.30	16.01
April 23, 1974	845.98	91.81	14.11
April 22, 1974	858.57	93.38	10.52