News stories from Tuesday August 1, 1972

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

Thomas Eagleton has withdrawn as the Democratic party's vice-presidential nominee; George McGovern is considering replacements. On the CBS Morning News, Eagleton told reporter Nelson Benton that time will tell what effect the incident will have on his political career in Missouri. Eagleton stated that he would not consider an appointed position in a McGovern administration, and he believes that he's come out of the past week a stronger man. At his office, he signed a formal letter of withdrawal to the Democratic national committee.Many letters and telephone calls of support poured in. Eagleton's staff urged callers who were critical of McGovern to stay with him. Eagleton spoke to the Senate today in support of McGovern's defense cut proposal. Columnist Jack Anderson again admitted that his story about Eagleton's drunk driving record was false, and he now has retracted the story. [CBS] Democratic presidential nominee George McGovern canceled a news conference at which he was scheduled to talk about the vice-presidency. Aides fear that McGovern's switch from backing Thomas Eagleton to dropping him will hurt his credibility. Senator Edward Kennedy still refuses the vice president post; Lawrence O'Brien and Frank Church are under consideration. [CBS] Missouri Democrats resent Eagleton's being dumped from the ticket; Missouri Republicans are making a bid for disenchanted Democrats. Dr. Mark Eagleton, the senator's brother, said that the incident won't affect his brother's mental health one iota, because he no longer has a mental health problem. Missouri Democratic party chairman Delton Houtchens stated that the brush-off of Eagleton will prevent McGovern from carrying Missouri, although Missouri Democrats will still work to elect the state, congressional and local tickets. McGovern student organizer Debbie Barber, who seconded Eagleton's nomination at the convention, is concerned with the youth vote. She said that McGovern's move shows him to be just another practical politician rather than an idealist. [CBS] Senator George McGovern's amendment to cut the military budget was defeated in the Senate. [CBS] Senator William Proxmire called for an audit of President Nixon's campaign funds by the General Accounting Office after the Washington Post reported that some funds were used illegally. A check meant for the campaign turned up in the bank account of one of the five men accused of the break-in and attempted bugging of the Democratic national headquarters in Washington, DC. [CBS] Louisiana Governor Edwin Edwards has appointed his wife Elaine to fill out the Senate term of the late Allen Ellender, saying that it is a symbolic gesture to the women of Louisiana who are too little involved in politics. [CBS] The House Rules Committee removed the proposed constitutional amendment to ban school busing for integration from the Judiciary Committee, sending it to the House floor for action. [CBS] Communists shelled Bien Hoa AFB in South Vietnam; one American was killed and 14 were wounded. American Navy bombers from the carrier "Saratoga" attacked a North Vietnamese shipyard near Haiphong. [CBS] South Vietnamese troops continue to fight for Quang Tri city and the supply route to it. Troops are trying to clear out the North Vietnamese from Highway 1 so supplies can continue to flow north to the troops at Quang Tri. Bulldozers scraped the earth to prevent the North Vietnamese from slipping in undetected. [CBS] Henry Kissinger held more secret peace talks with North Vietnam in Paris. [CBS] The prosecution in Upper Marlboro, Maryland, concluded its case against Arthur Bremer, who is charged with trying to kill Alabama Governor George Wallace. Bremer arrived in court with yesterday's beard shaved off. FBI examiner Robert Frazier could not prove that Bremer fired the gun, as no powder was found on Bremer's hands, but a doctor testified that he washed the defendant's hands at a hospital. Three others who were wounded in the Laurel, Maryland, incident testified: Alabama state police captain E. C. Dothard, Wallace campaign worker Dora Thompson and Secret Service agent Nicholas Zarvos. [CBS] The Federal Aviation Administration has ordered airlines to search any passenger who fits the FAA's potential hijacker profile. [CBS] The Delta Airlines jet which was hijacked yesterday en route from Detroit to Miami was later ordered to Algeria. Algerian officials seized the $1 million ransom; the crew flew on to Spain. The hijackers from Detroit are members of a black communal family consisting of three men, two women and three children. The family burned most of their books before leaving their house in disarray. A grave or altar was found in the living room. A neighbor explained a ritual which the hijackers practiced as representing the death of white society. [CBS] A House committee learned that there may be a gasoline shortage in America by late summer. Assistant Interior Secretary Hollis Dole expects increased gasoline prices. [CBS] The Transportation Department proposed that motorists be required by law to fasten safety belts, and that drivers be allowed to make right turns at a red light after stopping. [CBS] The 8th game (of 24) between Bobby Fischer and Boris Spassky ended in another draw. Fischer retains a two point lead in the world championship chess tournament in Iceland. [CBS] Senator Thomas Eagleton's career at the summit of American politics might have been the shortest on record, but he has time to prove himself. Senator George McGovern and whomever he chooses as a new running mate have very little time. The events of the past week cast doubt on President Nixon's claim that the press is liberal and partisan. That press criticized McGovern severely. [CBS]

Stock Market Report

Dow Jones Industrial Average: 930.46 (+5.72, +0.62%)
S&P Composite: 108.40 (+1.01, +0.94%)
Arms Index: 0.83

	Issues	Volume*
Advances	893	9.73
Declines	488	4.43
Unchanged	362	1.38
Total Volume		15.54

* 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*
July 31, 1972	924.74	107.39	11.12
July 28, 1972	926.70	107.38	13.05
July 27, 1972	926.85	107.28	13.87
July 26, 1972	932.57	107.53	14.13
July 25, 1972	934.45	107.60	17.18
July 24, 1972	935.36	107.92	18.02
July 21, 1972	920.45	106.66	14.01
July 20, 1972	910.45	105.81	15.05
July 19, 1972	916.69	106.14	17.88
July 18, 1972	911.72	105.83	16.82