News stories from Wednesday July 25, 1973

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

Former White House aide John Ehrlichman returned for a second day of Senate Watergate hearings. Committee chairman Sam Ervin and Ehrlichman's lawyer, John Wilson, argued over the President's inherent right to protect national security at any price. Ervin charged that entering Daniel Ellsberg's psychiatrist's office unlawfully probably wouldn't help find foreign spies. Senator Herman Talmadge repeated the law regarding the right to enter a home only with a warrant. Ehrlichman denied that he had burglary in mind when he ordered the covert operation to get Ellsberg's medical records.Talmadge asked if President Nixon personally authorized the break-in. Ehrlichman answered that on July 24, Nixon gave orders to Egil Krogh, the head of the "plumber's" unit, telling Krogh and his unit to take the "necessary steps". Ehrlichman denied John Dean's testimony that Ehrlichman told Charles Colson he had requested executive clemency for Watergate conspirator E. Howard Hunt. Ehrlichman said he never asked because having the burglars linked to the President would be horrible for the President. Ehrlichman also refuted Dean's testimony regarding the destruction of files and asking acting FBI director L. Patrick Gray to destroy sensitive documents. Ehrlichman said that Gray's own initiative in burning the documents shocked Ehrlichman and the President. Ehrlichman phoned Gray and said he would have to say he was present with Gray when the documents were delivered to Gray's office. Ehrlichman admitted to two meetings with Pentagon Papers trial judge Matthew Byrne regarding his possible appointment as FBI director, but didn't think those meetings were unethical and noted that they took place at the president's request. Ehrlichman stated that there was no intent to sway the trial; he was simply trying to get the best man for the job. Ehrlichman will return for a third day before the committee tomorrow. If the President doesn't answer the subpoenas by tomorrow, Ervin will move for a quick court order to obtain the White House tapes. [CBS] President Nixon will respond to the subpoenas served by the Senate Watergate committee and special prosecutor Archibald Cox. Nixon's lawyers are allegedly trying to have the subpoenas thrown out. The President met with Republican congressional leaders for almost two hours today; the Watergate issue was apparently not raised. Senator Hugh Scott stated that it would be hard to sort through the tapes and he would rather leave the matter to the courts.The White House announced the resignation of presidential adviser John Connally. White House aide Melvin Laird is trying to smooth over some of the disagreements between himself and press secretary Ron Ziegler, and deal with the President's reluctance to take Laird's advice regarding Watergate. [CBS] The House Appropriations Committee has killed the White House special projects fund. The White House refuses to say if the Watergate burglars were paid from that fund. Office of Management and Budget spokesman Fred Malek was questioned about Watergate, but refused to answer questions about the burglary because the Senate is probing the issue. [CBS] New York district judge Orrin Judd has ruled the bombing of Cambodia unconstitutional because Congress never approved the Vietnam war. Judd issued an injunction against further activities in Cambodia, effective late Friday; the government filed an appeal, but the appellate court may not have time to act before the August 15 bombing deadline. The suit was brought before Judge Judd by New York Democratic congresswoman Elizabeth Holtzman and three American fliers in Guam. [CBS] Even as the secret bombings in Cambodia were going on, Secretary of State William Rogers told the Senate Foreign Relations Committee in 1970 that the U.S. wasn't violating Cambodia's neutrality. The State Department claims that Rogers told the committee twice about the bombing; Rogers refused to comment. State Department spokesman Charles Bray stated that Secretary Rogers referred to Cambodia bombing in 1970 during a discussion with the Foreign Relations Committee. Senator William Fulbright flatly denied Bray's statement that Rogers informed the committee. Majority Leader Mike Mansfield said that he couldn't recall Prince Sihanouk's approval of the bombing at that time. Mansfield may become the key intermediary between the U.S. and Sihanouk when Mansfield visits China next month, at least that's the White House's hope. Mansfield and Sihanouk are old friends.General John Ryan was the second-ranking officer in the Air Force when the secret raids were ordered. He told the Senate Armed Services Committee that he didn't learn of raids until his promotion to top officer. Air Force Secretary Robert Seamans claims he never learned about the bombings until the American people and Congress did. Seamans said that sensitive information about the bombings was not released to him at the time, or when reports were submitted to Congress. Those reports were false, Seamans admitted, but he didn't know it. Chairman of the Joint Chiefs of Staff Admiral Thomas Moorer and former chairman Earle Wheeler will go before the Senate Armed Services Committee on Monday; the Senators are not satisfied with the answers they have received so far and may open the hearings to the public. [CBS] Despite continued U.S. support, Communist troops are closing in on Phnom Penh, Cambodia. Artillery hit the city's suburbs. Many were hurt, and four persons were reportedly killed. [CBS] With Phase IV lifting the price freezes on food, shoppers are scampering to wholesale markets. In New York City, thousands of shoppers flock to Reuben Zeitzer's warehouse to save money on food. Zeitzer makes a little profit, but gives shoppers a big break. He says that his warehouse products are the same as the ones which supermarkets mark up, only cheaper. [CBS] Libyan authorities questioned the Japanese hijackers after they blew up the hijacked jet at Benghazi airport only minutes after passengers reached safety. The body of a woman accomplice who was killed early in the hijack attempt was found in the plane's debris. The reasons behind the hijack attempt remain a mystery. Passenger Holger Jauger said that the hijackers claimed to be fighters for Palestine, and the hijack was an attempt to show the world that Palestine would overcome Israel. It was also meant to warn Germany, the United States and Japan against befriending Israel. Libyan officials said they allowed the plane to land only because it was low on fuel. [CBS] Reputed underworld figure Meyer Lansky was found innocent of federal income tax evasion charges in Miami, Florida. [CBS] The Senate Judiciary Committee has set up a nine-member panel to watch the FBI. Chairman Eastland named himself as head of the new subcommittee on FBI oversight. Senators Sam Ervin and Edward Gurney have been assigned to the committee. [CBS]

Stock Market Report

Dow Jones Industrial Average: 933.02 (+14.30, +1.56%)
S&P Composite: 109.64 (+1.50, +1.39%)
Arms Index: 0.72

	Issues	Volume*
Advances	1,024	15.28
Declines	467	5.05
Unchanged	324	1.89
Total Volume		22.22

* 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 24, 1973	918.72	108.14	16.28
July 23, 1973	913.15	107.52	15.58
July 20, 1973	910.90	107.14	16.30
July 19, 1973	906.68	106.55	18.65
July 18, 1973	905.40	106.35	17.02
July 17, 1973	898.03	105.72	18.75
July 16, 1973	897.58	105.67	12.92
July 13, 1973	885.99	104.09	11.39
July 12, 1973	901.94	105.50	16.40
July 11, 1973	908.19	105.80	18.73