News stories from Friday October 17, 1975

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

The government filed civil suits against the six largest cigarette makers, accusing them of inadequately displaying federal health warnings in their advertising. The companies are Philip Morris, American Brands, Brown & Williamson, R.J. Reynolds, Liggett & Myers and Lorillard. [New York Times] William and Emily Harris pleaded not guilty to 11 criminal charges, including kidnapping, robbery and assault, and their trial was tentatively set to begin Nov. 24. Patricia Hearst, a co-defendant, was not present at the hearing. [New York Times] New York City escaped financial default by hours when the teachers' union, in a dramatic shift, agreed to provide $150 million from its pension funds for the city's borrowing needs today and in the weeks ahead. In the most tense episode of the city's fiscal problems, Albert Shanker, president of the teachers' union, announced that the union would reverse its opposition to using its retirement reserves to buy $150 million worth of new city bonds. Minutes later, the bond sale was pressed and $95 million in loans were speeded to the city treasury for payment of the day's expenses, which included the redemption of $453.1 million in short-term notes. A major bank stayed open late to complete the whirlwind transaction. [New York Times] The financial markets gave investors a taste of what default by New York City might mean. As the day started, stock prices on major exchanges declined sharply in sluggish trading, and bond trading all but vanished. Currency trading in Europe virtually halted and world gold prices rose in anticipation of a city default. Then, in mid-afternoon, after word was flashed that default had been averted, pent-up pressure on the New York Stock Exchange set off a sharp rally, and within minutes the day's losses had been erased. [New York Times] As New York City had hovered on the brink of default, President Ford firmly denied federal aid to rescue the city. At 12:25 A.M. Mayor Beame had made a futile telephone call to Mr. Ford for help. Treasury Secretary William Simon said in an interview that the administration had an open mind on any congressional action. [New York Times] The Department of Housing and Urban Development, under the pressure of a lawsuit challenging its impoundment practices, announced it would release $264.1 million in the next two years to help moderate income families buy housing. The program is designed to provide 250,000 new and rehabilitated dwellings for families with earnings of $9,000 to $11,000 a year at a subsidized interest rate of 5 percent.At the same time, the Commerce Department reported a 2 percent decline in housing starts in September from August figures. Industry specialists predicted sluggish growth for this year and next. [New York Times] Thirteen American Representatives and 57 aides to Representatives and Senators have received free trips to Taiwan from a foundation that apparently has close ties to the Chinese Nationalist government. [New York Times] Defense Secretary James Schlesinger has ordered what his department termed "a broad inquiry" on the entertainment of Pentagon officials by defense contractors. [New York Times] Five scientists will receive the 1975 Nobel Prizes in Physics and Chemistry. The physics award will be shared by James Rainwater, an American; Aage Bohr, a Dane, and Ben Mottleson, a Chicago-born scientist who is now a Danish citizen. The chemistry prize will be shared by John Cornforth, a Briton, and Vladimir Prelog, who was born in Yugoslavia and is now a Swiss citizen. [New York Times] A committee of the United Nations General Assembly approved an Arab-sponsored draft of a resolution to equate Zionism with racial discrimination. The vote, 70 to 29 with 27 abstentions, indicates that the General Assembly will concur. Earlier, the United States deplored the draft as "obscene" and warned that it would imperil the work of the United Nations. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 832.18 (-5.67, -0.68%)
S&P Composite: 88.86 (-0.51, -0.57%)
Arms Index: 1.47

	Issues	Volume*
Advances	486	3.74
Declines	854	9.69
Unchanged	476	2.22
Total Volume		15.65

* 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 16, 1975	837.85	89.37	18.91
October 15, 1975	837.22	89.23	14.44
October 14, 1975	835.25	89.28	19.96
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