News stories from Friday July 12, 1974

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

John Ehrlichman, former domestic affairs adviser to President Nixon, and three other defendants were found guilty of conspiring to violate the civil rights of Dr. Daniel Ellsberg's former psychiatrist. The jury also found Mr. Ehrlichman guilty of three of four counts of making false statements. His co-defendants in the conspiracy charge were G. Gordon Liddy, Bernard Barker and Eugenio Martinez. [New York Times] The Department of Labor reported that wholesale prices rose only a half percentage point in June, and said it was the best performance of this important inflation index since last October, when there was a small decline. The rapid rise of industrial prices slackened a bit, and food prices declined for the fourth successive month. There were, however, two important qualifications. [New York Times] President Nixon reportedly will soon nominate Alan Greenspan, a consulting economist in New York, to be chairman of the President's Council of Economic? Advisers. Mr. Greenspan, a conservative, advocates a continuation of the present policies of credit restraint and extension, or even stronger control over federal budget outlays. He would replace Herbert Stein, who plans to teach economics at the University of Virginia. There is a possibility that Mr. Greenspan's Senate confirmation will run into problems. [New York Times] Gov. Martin Mandel ordered 115 Maryland state troopers and the state's armored car into Baltimore to deal with the violence that has erupted since some city policemen joined a strike of municipal employees. The strikers are protesting Mayor William Donald Schaefer's refusal to consider a pay increase of more than 5.5 percent, plus 0.5 percent in fringe benefits. [New York Times] One of the two armed convicts holding seven hostages in the Federal Courthouse in Washington reportedly promised to "take a lot of people with him" if the pair were not guaranteed their freedom. The statement was attributed to Frank Gorham, 25, one of the convicts, by his sister after she and Mr. Gorham's mother were allowed to visit him. Despite the threat, a justice Department official expressed confidence that there had been movement to break the impasse in negotiations with the two, who have held the hostages since Thursday afternoon. [New York Times] Peter Leonard of Greenwich, Conn., 22 years old and unemployed, was charged by Connecticut authorities with setting the fire that killed 24 young people and injured 32 others two weeks ago in Gulliver's, a singles bar in Port Chester, in Westchester County, New York. No homicide or other charges relating directly to the deaths were filed immediately against him because of an unusual jurisdictional question over the exact location of Gulliver's, which straddles the line between Port Chester and Greenwich. [New York Times] The Nixon administration has lost control of the United States policy of maintaining a political and economic quarantine against Cuba, in the opinion of government officials specializing in Latin American affairs. Pat Holt, staff director of the Senate Foreign Relations Committee, who met with Premier Fidel Castro in Havana Saturday, is also understood to believe that Mr. Castro and others in Latin America have begun to determine the pace and direction of Cuba's breakout from hemisphere isolation. This view reportedly is shared by a growing number of Latin American governments. [New York Times] A new tone in Israeli statements on the Palestinians, if not a substantive change in the official position, was indicated by the Israeli Information Minister, Aharon Yariv, who said that negotiations between the Israeli and Palestinians could be held if the Palestinians would acknowledge the existence of Israel as a Jewish state and terminate hostile action against her. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 787.23 (+27.61, +3.63%)
S&P Composite: 83.15 (+3.26, +4.08%)
Arms Index: 0.87

	Issues	Volume*
Advances	1,364	15.01
Declines	192	1.83
Unchanged	262	0.93
Total Volume		17.77

* 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 11, 1974	759.62	79.89	14.64
July 10, 1974	762.12	79.99	13.49
July 9, 1974	772.29	81.48	15.58
July 8, 1974	770.57	81.09	15.51
July 5, 1974	791.77	83.66	7.40
July 3, 1974	792.87	84.25	13.43
July 2, 1974	790.68	84.30	13.46
July 1, 1974	806.24	86.02	10.27
June 28, 1974	802.41	86.00	12.01
June 27, 1974	803.66	86.31	12.65