News stories from Wednesday June 12, 1974

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

Confidential memorandums drafted by a staff member of the House Judiciary Committee state that President Nixon took an active part last year in attempts to develop a second Watergate cover-up when the first one went awry. The memos, prepared for some Democratic committee members, say the President reacted to disclosures of the Watergate scandal in March and April of last year by counseling close associates to seek new ways to prevent the scandal from touching the White House. [New York Times] In a surprise decision, Judge Gerhard Gesell reversed himself and said that he would reinstate John Ehrlichman today as one of four defendants in the White House "plumbers" case scheduled to begin next Monday. Judge Gesell made the ruling after attorneys for the special Watergate prosecutor's office filed a last-ditch motion for consideration in which they said that if Mr. Ehrlichman's trial was delayed there would be "perhaps no trial at all" for Mr. Ehrlichman. [New York Times] By voice vote, the Senate approved a House-passed bill to promote the use of coal rather than oil or gas for steam-powered electric plants, but to do it with minimum impact on clean air goals and schedules. The measure now goes to the White House for the President's signature, amid rumors that he may veto it. [New York Times] Elsewhere in Washington, the Food and Drug Administration completed a fourth major part of its huge effort to let Americans know what they are eating by regulating food product labeling and nutritional content. The agency issued 18 new proposed and final regulations to govern the addition of nutrients to processed foods. [New York Times] Federal and state governments are losing about $115 million a year in revenue from taxes and income earned by illegal aliens, according to a congressional subcommittee report. The finding is based on a 10-day investigative program conducted last fall in Manhattan, Chicago and Los Angeles, which indicated that at least 5 percent of illegal aliens fail to file income tax returns. [New York Times] A $4 million grant was awarded by the National Endowment for Humanities to New York City television station WNET-13 toward the production of a 13-week dramatic series tracing 150 years of United States history. Titled "The Adams Chronicles, 1750-1900," it will follow four generations of the family descended from President John Adams and will be presented during the 1975-76 season as public television's major contribution to the national bicentennial celebration. [New York Times] After a day and a night of persistent and patient pleading with a former mental patient holding a 5-year-old girl hostage at gunpoint in a Queens [New York City] housing project, the police managed to yank the girl to safety. The police also captured her abductor, who had allegedly slain her stepfather at the beginning of the ordeal more than 30 hours earlier.A Queens jury acquitted police officer Thomas Shea of murder in the shooting of 10-year-old Clifford Glover. The panel of 11 men and one woman found that Officer Shea had shot in self-defense against a gun he said the boy "appeared" to have drawn, although the gun was never found by police searchers. Some of the jurors noted "a conglomeration of inconsistencies" in the testimony -- Officer Shea's, among others -- but found "reasonable doubt" of the charge against him. [New York Times] President Nixon was welcomed to Cairo by great crowds of Egyptians who cheered him with unreserved enthusiasm along a 10-mile motorcade route from the airport. Mr. Nixon, who rode into the city in an open car with President Sadat, was proclaimed as a peacemaker in a new era of friendly relations between the United States and Egypt.At Mr. Nixon's side most of the day, but glum and attracting little attention, was Secretary of State Kissinger, who threatened Tuesday to resign unless he was cleared of allegations that he participated in "illegal or shady activity" in secret wiretapping operations. Meanwhile, members of Congress and government officials rallied to his support, urging that his reputation be cleared. [New York Times] Faced with soaring inflation and sagging foreign accounts, the French government ordered an austerity program. President Valery Giscard d'Estaing called for higher taxes, most of which will be paid by corporations, lower energy consumption, reduced public spending and stiffer surveillance over prices and credit. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 848.56 (-3.52, -0.41%)
S&P Composite: 92.06 (-0.22, -0.24%)
Arms Index: 0.74

	Issues	Volume*
Advances	410	3.62
Declines	986	6.43
Unchanged	347	1.10
Total Volume		11.15

* 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 11, 1974	852.08	92.28	12.38
June 10, 1974	859.67	93.10	13.54
June 7, 1974	853.72	92.55	19.02
June 6, 1974	845.35	91.96	13.35
June 5, 1974	830.18	90.31	13.68
June 4, 1974	828.69	90.14	16.04
June 3, 1974	821.26	89.10	12.49
May 31, 1974	802.17	87.28	10.81
May 30, 1974	803.58	87.43	13.58
May 29, 1974	795.37	86.89	12.30