News stories from Friday January 4, 1974

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

President Nixon, in a letter to Senator Sam Ervin, rejected the Senate Watergate Committee's subpoenas seeking more than 500 tapes and documents, and simultaneously overhauled his Watergate defense staff. The shake-up in the legal staff removed both Fred Buzhardt and Leonard Garment from active direction of the Watergate case. The new man in charge will be James D. St. Clair, a Boston lawyer. [New York Times] Committee counsel Sam Dash defended the need for each document and tape that was requested under subpoena. Committee chairman Sam Ervin declared that the President has overstepped the Constitution by refusing the subpoenas. The committee will go to court over the matter. [CBS] President Nixon pocket-vetoed a bill that would have facilitated the use of federal funds for the purchase of local buses. In a "memorandum of disapproval," the President said that the bill had "become an antitransit measure." He said that the bill would allow the use of funds from the Urban Mass Transportation Act for the purchase of buses even if the buses were to be used part time for charter operations and would prohibit the use of Federal Highway Act funds in the same circumstances. [New York Times] Soaring increases in jet-fuel costs brought warnings from the airline industry that it would face bankruptcies or need large government subsidies unless sharp new fare increases were authorized. The head of Eastern Air Lines, Floyd Hall, suggested the need for two 5 percent increases in 1974 in addition to a surcharge of 2 to 4 percent that would be tied to fluctuations of fuel oil prices. [New York Times] Watergate conspirator Bernard Barker has been freed pending the appeal of his case. Barker stated that prison officials were responsible for some paralysis to his mouth; prison officials denied any "laxity" in their treatment of Barker. Barker said that his involvement in Watergate was a service to his country, and under the same circumstances he would take the same action as he did before. [CBS] The nation's unemployment rate rose in December for the second consecutive month, but the role of the energy shortage in the rise was still uncertain, the Labor Department reported. The unemployment rate in December was 4.9 percent of the labor force, up from 4.7 percent in November, but still a little below the 5.1 percent of December, 1972. [New York Times] The energy crisis is responsible for much of the unemployment and is particularly rampant in California where 5.5% of the labor force is out of work. One unemployment office manager stated that the unemployment rate doubled over the past month. Many gasoline stations have been forced to close, and the recreational vehicle and automobile industry have been affected by the crisis. Airlines are going to cut more flights and lay off more workers as well. [CBS] On the eve of his swearing-in as Attorney General, Senator William B. Saxbe said he would pursue "strict, vigorous enforcement" of the antitrust laws and would investigate oil companies to determine if they had done anything to contrive the oil shortage. [New York Times] Oregon Governor Tom McCall is trying to make the buying of gasoline easier for motorists. Under his plan, motorists will be limited to making purchases on just two days per week according to their license plate number. McCall believes that oil companies are discriminating against his state. [CBS] A policy of moderation pursued by the leader of the four-day-old coalition administration of Northern Ireland was repudiated by his own Protestant party. The defeat for Brian Faulkner, the chief executive of the coalition and head of the Unionist party, which represents Northern Ireland's two-thirds Protestant majority, came on a motion of support for proposed cooperation with the Irish Republic. [New York Times] Secretary of State Henry Kissinger and Israeli defense minister Moshe Dayan discussed the latest developments in the Mideast. Dayan presented Israel's troop disengagement plan to Kissinger at today's meeting in Washington. Kissinger reported that progress was made at the meeting, though Dayan stated that the Mideast peace plan is not yet ready for discussion.Two American diplomats arrived in Syria, opening diplomatic contact between the U.S. and Syria for the first time in several years. Syria may be softening its position regarding the Geneva peace conference. [CBS] An Israeli blockade of food and nonmilitary supplies for elements of Egypt's Third Army and the city of Suez was reported to have been lifted after United Nations intercession with the Israeli Army and government. The deputy spokesman for the United Nations Emergency Force, Birger Hallden, said that Israeli troops had refused to permit United Nations drivers to proceed with truckloads of supplies to unloading areas, citing shooting in the area as the reason for the blockade. [New York Times] The United Nations peace-keeping force reported heavy fighting around Suez City as negotiators met in Geneva to work out a peace agreement. [CBS] British officials arrested a second American woman supposedly acquainted with Allison Thompson, who was arrested earlier in the week. The women are members of an extremist, pro-Palestinian terrorist group. The British will charge the women and their two male companions with possession of firearms, allegedly brought to England to give to the terrorists. [CBS] Former Vietnam POW Leo Thorsness announced his candidacy for Senator George McGovern's seat in next year's election. [CBS]

Stock Market Report

Dow Jones Industrial Average: 880.23 (-0.46, -0.05%)
S&P Composite: 98.90 (-0.90, -0.90%)
Arms Index: 1.89

	Issues	Volume*
Advances	1,038	9.86
Declines	527	9.46
Unchanged	280	2.38
Total Volume		21.70

* 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*
January 3, 1974	880.69	99.80	24.85
January 2, 1974	855.32	97.68	12.06
December 31, 1973	850.86	97.55	23.47
December 28, 1973	848.02	97.54	21.31
December 27, 1973	851.01	97.74	22.72
December 26, 1973	837.56	95.74	18.62
December 24, 1973	814.81	92.90	11.54
December 21, 1973	818.73	93.54	18.68
December 20, 1973	828.11	94.55	17.43
December 19, 1973	829.57	94.82	20.67