News stories from Wednesday June 4, 1975

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

President Ford, in a Commencement Day address at West Point, warned that efforts to strengthen the Atlantic Alliance could be jeopardized if Congress cuts his "bedrock" defense budget or failed to enact an energy conservation program. Appearing at the Military Academy only 12 hours after returning from Western Europe, the President said that the nation's major allies were confident of this country's resolve to be "strong and conciliatory" in pursuing world leadership. [New York Times] The House has failed to override President Ford's veto of the $5.3 billion emergency job bill in what amounted to a stunning defeat for the Democrats and their leaders. The vote --277 to 145 -- was five short of the two-thirds majority needed to carry the measure. It is the second time in two months that this Congress has failed to override a presidential veto. [New York Times] The Senate has rejected a proposed $1.2 billion cut in a $25 billion measure authorizing the Defense Department's weapons procurement and research programs for the next fiscal year. By a vote of 59 to 36 the Senate rejected Senator Stuart Symington's effort to put a $23.8 million ceiling on the weapons measure. [New York Times] The White House press secretary said that President Ford would announce his 1976 candidacy before the end of the month. The President's return from Europe, his intimates say, signaled the beginning of a 90-day period of assembling a campaign structure so that he can begin intense political effort this fall. [New York Times] Senator Frank Church, chairman of the Senate Intelligence Investigating Committee, said he has heard "hard evidence" implicating the Central Intelligence Agency in more than one scheme to assassinate a foreign political leader. And he cautioned against drawing the conclusion, based on recent public statements by Vice President Rockefeller and others, that the agency's transgressions had been minor. [New York Times] New York City's chief elected officials have been told they have no alternative to accepting a state agency to solve its billion-dollar cash shortage, even though the agency would have a voice in the city's future budgetary affairs. The Controller's office says the city will be $43 million short of cash today when it must meet $132.9 million in bills, including an $89.1 million payroll. [New York Times] The Northrop Corporation paid $450,000 in bribes in 1972 and 1973 earmarked for two Saudi Arabian generals, according to a report prepared by Northrop's accounting firm. The bribes, apparently designed to help Northrop win an aircraft procurement contract, were said to have been paid to a concern controlled by a Middle East businessman who has served as a sales agent for a number of United States arms manufacturers, including Northrop. [New York Times] Drought in Ethiopia and Somalia has affected 800,000 people and reports reaching neighboring Kenya say Ethiopia faces a famine even worse than that suffered two years ago. The area worst hit by little or no rain over the last eight months is where the two countries share a border -- an area that Somalia has long claimed from Ethiopia. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 839.96 (-6.18, -0.73%)
S&P Composite: 92.60 (-0.29, -0.31%)
Arms Index: 0.85

	Issues	Volume*
Advances	782	12.61
Declines	666	9.13
Unchanged	390	3.16
Total Volume		24.90

* 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 3, 1975	846.14	92.89	26.56
June 2, 1975	846.61	92.58	28.24
May 30, 1975	832.29	91.15	22.67
May 29, 1975	815.00	89.68	18.57
May 28, 1975	817.04	89.71	21.85
May 27, 1975	826.11	90.34	17.05
May 23, 1975	831.90	90.58	17.87
May 22, 1975	818.91	89.39	17.61
May 21, 1975	818.68	89.06	17.64
May 20, 1975	830.49	90.07	18.31