News stories from Wednesday September 3, 1975

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

A dozen moderate Republican Senators told President Ford that he could lose crucial industrial states in next year's election because of the conservative tone of his candidacy. They urged him to keep Vice President Rockefeller on the ticket, to pay more heed to liberal attitudes within the party and to display his "compassionate nature" to counter the effect of his tightfisted views on social spending. [New York Times] Democratic leaders in the House and Senate have decided to postpone action on oil prices until after President Ford's expected veto of the bill to extend price controls on most domestic oil for six months and Senate action to override it. The Senate vote is expected to be close, and if it overrides the veto, the House is expected to follow suit quickly. Meanwhile, House Speaker Carl Albert of Oklahoma told reporters there was no point in trying to negotiate a compromise with the administration. [New York Times] The House Ways and Means Committee began consideration of an extensive revision of the tax laws with examples of recent tax returns of persons with high incomes who legally paid little or no federal income tax. A doctor with $105,000 in income paid no tax, a stockbroker with $181,000 paid only $1.000, and a business executive receiving $448,000 paid $1,200. [New York Times] New York City's major banks agreed to a part of the Municipal Assistance Corporation's financial plan to forestall what could be the city's imminent default. Mayor Beame denounced the part that would virtually eliminate his budgetary powers. On the eve of the special legislative session in Albany, Governor Carey was trying to pull together the elements of some form of M.A.C. legislation to avoid default.Default by New York City on its notes or bonds would probably cost investors across the United States millions of dollars whether they held them or not, brokerage officials said, as the prices of a variety of securities declined. The market for New York City securities has virtually dried up, and securities of other public bodies have declined in reaction. [New York Times] A $12 million proposed settlement to end litigation against former directors and officers of the Penn Central Company, their investment bankers and accountants, and two real estate subsidiaries, has been agreed to by lawyers for the plaintiffs -- the bankrupt railroad's trustees, debenture holders and shareholders. The details will appear in newspaper notices on Friday as ordered by Chief Judge Joseph Lord of the Federal District Court in Philadelphia. Dissenters will have a chance to challenge the fairness of the plan. [New York Times] Former Representative Thomas Kleppe of North Dakota, now head of the Small Business Administration, is in line for appointment as Secretary or the Interior, according to sources in the Department and on Capitol Hill. [New York Times] More and more sections of Trenton, New Jersey, and nearby suburbs were running out of water despite a tight industrial and governmental shutdown and voluntary conservation measures to keep it running as long as possible. Residents of upper floors and some suburbs had lost pressure earlier. Mayor Arthur Holland hoped some of the seven damaged pumps at the water supply plant would be working late tomorrow or early Friday. [New York Times] The general assembly of Portugal's army demanded that the President cancel his appointment of Gen. Vasco Goncalves, the Communist-backed former Premier, as armed forces chief of staff. The assembly, which has half the seats in the general assembly of the armed forces, decided to boycott its next meeting, thus apparently crippling the scheduled Friday vote on a new ruling High Council of the Revolution. The secretary general of the Socialist party, Mario Soares, appealed to President Francisco da Costa Gomes for a quick decision to cancel the Goncalves appointment. [New York Times] Secretary of State Kissinger wound up his successful mediation mission between Egypt and Israel and returned home after stops in Jordan and Syria to assure King Hussein and President Hafez al-Assad in Damascus that the United States would seek further Arab-Israeli accords. His reception in these countries underscored the distrust for the new agreement in much of the Arab world. Later a Syrian statement called it a "setback to the march of the Arab struggle." [New York Times]

Stock Market Report

Dow Jones Industrial Average: 832.29 (+8.70, +1.06%)
S&P Composite: 86.03 (+0.55, +0.64%)
Arms Index: 0.60

	Issues	Volume*
Advances	682	6.71
Declines	643	3.79
Unchanged	422	1.76
Total Volume		12.26

* 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*
September 2, 1975	823.59	85.48	11.46
August 29, 1975	835.34	86.88	15.48
August 28, 1975	829.47	86.40	14.53
August 27, 1975	807.02	84.43	11.11
August 26, 1975	803.11	83.96	11.35
August 25, 1975	812.34	85.06	11.25
August 22, 1975	804.76	84.28	13.05
August 21, 1975	791.69	83.07	16.61
August 20, 1975	793.26	83.22	18.63
August 19, 1975	808.51	84.95	14.99