News stories from Tuesday October 14, 1975

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

The limousine carrying President Ford from Hartford, Connecticut, to the airport after a brief visit was struck broadside by an automobile in downtown Hartford. The President was not hurt. A fender was bent to the tire on his limousine. The other car, driven by a young man with four young passengers, was badly damaged. [New York Times] President Ford released a report he called "realistic" from a Domestic Council task force, urging that federal drug control efforts should concentrate on "priority" targets such as heroin, de-emphasizing law enforcement against reputedly less "destructive" drugs such as marijuana and cocaine. Administration sources said that Customs Commissioner Vernon Acree had called the report unprofessional and grossly misleading. Mr. Ford said it would be analyzed in the next 60 days. [New York Times] A consensus is emerging among New York City's business and government leaders that economic decline is at the root of its troubles. The fiscal plight of "too much spending" is seen as another way of saying "too little income." The crisis really began in 1969, when the city's rapidly growing economy began to shrink. Since then, 501,800 jobs have disappeared, and with them an estimated total of $1.5 billion in tax revenues. Adding jobs is seen as the only permanent solution to the money problems of New York City. [New York Times] The Ford administration, uncertain of the legality of a large part of the National Security Agency's foreign intelligence gathering, has reportedly devised a plan that it hopes will protect the rights of Americans while continuing the intelligence operation. Sources in the administration said that most laws on electronic eavesdropping had been written in connection with domestic criminal investigations without significant consideration of national security needs. President Ford, they said, is considering an executive order empowering the Attorney General to approve or disapprove specific intrusions by the N.S.A. [New York Times] Members of the Senate Foreign Relations Committee and the International Relations Committee of the House of Representatives say that a substantial majority in both have quietly agreed on a two-year phasing out of the program of direct military aid. Under this program about $40 billion has been given to allies since 1949 as part of the strategy of containing Communism. Congress seems virtually certain to go along. Proposed bills in both committees contain provisions to increase the credit program for military sales temporarily after direct aid is terminated. [New York Times] After 25 years of economic growth, Puerto Rico is experiencing economic contraction, record unemployment and a sobering reassessment of its future. Economic troubles on the United States mainland are said to offer only part of the explanation. Tourism, manufacturing and construction are all suffering declines. [New York Times] Tjalling Koopmans of Yale and Leonid Kantorovich of the Soviet Union will share the Nobel Memorial Prize in Economic Science. The announcement by the Swedish Royal Academy of Science said they were cited for their contribution to the theory of optimum allocation of resources, leading to improved economic planning. The two men conducted broadly similar work, largely independent of each other but with some contact in the last 20 years. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 835.25 (-2.52, -0.30%)
S&P Composite: 89.28 (-0.18, -0.20%)
Arms Index: 1.28

	Issues	Volume*
Advances	780	8.46
Declines	579	8.03
Unchanged	487	3.47
Total Volume		19.96

* 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*
October 13, 1975	837.77	89.46	12.02
October 10, 1975	823.91	88.21	14.88
October 9, 1975	824.54	88.37	17.77
October 8, 1975	823.91	87.94	17.80
October 7, 1975	816.51	86.77	13.53
October 6, 1975	819.55	86.88	15.47
October 3, 1975	813.21	85.95	16.36
October 2, 1975	794.55	83.82	14.29
October 1, 1975	784.16	82.93	14.07
September 30, 1975	793.88	83.87	12.52