News stories from Thursday September 2, 1976

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

A well-placed source in Washington said that Attorney General Edward Levi was expected to ask President Ford to retain Clarence Kelley as Director of the Federal Bureau of Investigation despite disclosures that Mr. Kelley accepted expensive gifts from subordinates and may have misused government property. It was also said that, according to Mr. Levi's thinking, there was "no chance" of Mr. Kelley's "being asked to resign" because of the disclosures, and that he had "no intention" of resigning voluntarily. [New York Times] The Air Force has begun a "full-scale investigation" into allegations that cadets at the Air Force Academy in Colorado Springs have been operating a theft ring and a forgery ring since 1972. In the spring of 1975, two cadets were charged with thefts of I.D. cards and checkbooks and forgeries of checks against 11 fellow cadets. One of the accused was dismissed after a court martial. The other resigned. A new, broader inquiry was ordered after a lawyer wrote to Gen. James Allen, the Academy's Superintendent, citing evidence that a forgery ring involving at least four cadets might still be active. [New York Times] A federal grand jury in Los Angeles indicted six persons for allegedly manipulating the records of more than 100 people in the nation's largest consumer credit databank. The bank, at TRW Data Systems, stores information on the borrowing habits of more than 50 million Americans. According to the indictments, a criminal ring sold A-1 credit ratings to businessmen, physicians and others with bad credit ratings. [New York Times] Wholesale prices, reflecting the sharpest drop in farm prices in 18 months, declined slightly in August, continuing a trend of moderate price movements. The Department of Labor said its Wholesale Price Index declined by one-tenth of 1 percent in August, but prices of industrial commodities, a key element of the index, were up. [New York Times] Albert Shanker, president of the American Federation of Teachers, assailed Representative Bella Abzug as a "scab" who had crossed teacher picket lines and taught classes during the 1968 school strike in New York City. He urged the 2,000 delegates to the State A.F.L.-C.1.O. convention at Lake Kiamesha, N.Y., to support Daniel Patrick Moynihan for Senator in the five-way Democratic primary in which Mrs. Abzug is a candidate. Mrs. Abzug vehemently denied the accusation, and later Mr. Shanker acknowledged that he did not know for certain if Mrs. Abzug had taught a class while the strike was on. [New York Times] The possibility of joint legal action over the exclusion of Eugene McCarthy and Lester Maddox from the forthcoming debates between President Ford and Jimmy Carter is being considered by their lawyers, specialists in communications law. Mr. McCarthy, the former Democratic Senator from Minnesota, is hoping to be on the ballot in more than 40 states as an independent candidate for President. Mr. Maddox, a former Georgia Governor, is the American Party's candidate. [New York Times] The Phillips Petroleum Company, its board chairman and two former chairmen were indicted by a federal grand jury in Tulsa, Okla., on federal tax charges alleging a global conspiracy to conceal $3 million in Swiss bank accounts and a secret cache at company headquarters in Bartlesville, Okla. The money was not reported as income on tax returns, the government said. [New York Times] Prince Bernhard of the Netherlands in the early 1970's asked Helmut Schmidt, now the West German Chancellor and then the defense minister, to purchase planes of the Northrop Aircraft Corporation, according to letters released by the Dutch Ministry of Information. The letters, exchanged by Mr. Schmidt and the former Dutch Defense Minister, Willem den Toom, dealt with Northrop's efforts to have its Cobra combat planes replace the Lockheed Starfighter. [New York Times] About 3,000 non-white South Africans clashed with the police in downtown Cape Town in the first racial violence in a white area since the wave of violence against apartheid began two months ago. [New York Times] The public has been given more opportunities for low-cost air travel by the Civil Aeronautics Board, which approved a new category of charter flights that eliminates virtually all restrictions except advance booking. The new rules go into effect Oct. 7. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 984.79 (-1.16, -0.12%)
S&P Composite: 103.92 (-0.14, -0.13%)
Arms Index: 1.18

	Issues	Volume*
Advances	772	7.69
Declines	646	7.60
Unchanged	476	3.63
Total Volume		18.92

* 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 1, 1976	985.95	104.06	18.64
August 31, 1976	973.74	102.91	15.48
August 30, 1976	968.92	102.07	11.14
August 27, 1976	963.93	101.48	12.12
August 26, 1976	960.44	101.32	15.27
August 25, 1976	970.83	102.03	17.40
August 24, 1976	962.93	101.27	16.74
August 23, 1976	971.49	101.96	15.45
August 20, 1976	974.07	102.37	14.92
August 19, 1976	983.88	103.39	17.23