News stories from Tuesday June 6, 1978

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

A measure to cut property taxes by more than half won a resounding victory in California as voters adopted a state constitutional amendment that will radically alter local government finance. In other signs of taxpayer revolt, school tax increases were defeated in Ohio, and conservative candidates and causes succeeded in key races in seven other states. [New York Times] Inflation has compounded problems of city and state governments around the nation. The steady 6 to 7 percent rate of the last several years has heightened the usual complexities of public administration in an age of rising demand for services and shifting population patterns. Officials try to confine cuts to non-essential services, but that is not always enough. [New York Times] The sharp exodus from older cities is not necessarily bad, according to a panel of urban scholars. They told a House committee that the task of government should be to ease the economic and social impact of decline rather than to fight it. [New York Times] A national water policy, involving tougher standards for determining which large federal water and flood control projects should be built and which states would get them first, was announced by President Carter in a message to Congress. [New York Times] Clifford Case, a 74-year old veteran of four terms in the United States Senate, suffered a stunning defeat in his bid for renomination in the New Jersey Republican primary. Scoring the upset was Jeffrey Bell, a 34-year old conservative who left Ronald Reagan's staff in 1976 to challenge the liberal Mr. Case. The Democratic senatorial primary was won by Bill Bradley, the former basketball star. [New York Times] Long-term federal loan guarantees were sought by Mayor Koch in testimony before the Senate Banking Committee amid signs that the panel would prefer to continue the more limited short-term loans that New York City has been receiving since its fiscal crisis began in 1975. Senator William Proxmire, the committee's chairman, said he was inclined to favor short-term loans, which city officials contend would not solve New York's problems.With President Carter ready to lobby by telephone on behalf of the $2 billion loan aid bill for New York City, the House began consideration of the measure. But most of the debate was rescheduled for Thursday. [New York Times] An average daily gambling income of $438,504 was reported by Resorts International in the first six days of its operation in Atlantic City of the nation's only legal casino outside Nevada. The report, submitted to the Casino Control Commission in Trenton, said the total "take" from unlucky gamblers was $2,631,028, and of this total, more than half was provided by losers at slot machines. [New York Times] Cubans are training rebels in Zambia, Joshua Nkomo, the Rhodesian guerrilla leader, acknowledged publicly for the first time. Mr. Nkomo said in an interview that he would use the Cubans and arms Moscow is supplying to his 6,000-man army to "scare away" Western influence from Rhodesia. Diplomats in Zambia have estimated that 75 Cuban military advisers are in that country. [New York Times] Somalis are attacking Ethiopians again in the Ogaden region, according to Western diplomatic sources, who said that three months after regular Somali forces were chased from the area by an Ethiopian counteroffensive with Cuban and Soviet aid, they have returned, this time fighting as guerrilla bands using hit-and-run tactics. [New York Times] Emergency aid to save Zaire from collapse was agreed on by the United States and four West European countries, according to diplomats at a Paris meeting, Members of several delegations expressed satisfaction with what were apparently compromises on joint short-term military and economic efforts, but differences remained on how to deal with longer-term threats of Soviet penetration in Africa. [New York Times] Terrorists killed an Italian official. The chief warden of the prison in Udine, northeast of Venice, was slain in the fifth such killing since the murder of Aldo Moro on May 9. The latest victim was shot on the street by a man and a woman, who escaped in a car driven by another man. [New York Times] Quebec, inching closer toward nationhood, proclaimed a long-range goal of full control by its citizens of the main instruments of cultural expression. In a 466-page white paper, the provincial government termed Quebec culturally underdeveloped because much of its cultural fare was controlled by or imposed on it by outsiders. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 866.51 (+2.68, +0.31%)
S&P Composite: 100.32 (+0.37, +0.37%)
Arms Index: 0.82

	Issues	Volume*
Advances	1,032	31.53
Declines	561	14.02
Unchanged	348	6.42
Total Volume		51.97

* 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*
June 5, 1978	863.83	99.95	39.59
June 2, 1978	847.54	98.14	31.86
June 1, 1978	840.70	97.35	28.75
May 31, 1978	840.61	97.24	29.07
May 30, 1978	834.20	96.86	21.04
May 26, 1978	831.69	96.58	21.41
May 25, 1978	835.41	96.80	28.41
May 24, 1978	837.92	97.08	31.46
May 23, 1978	845.29	98.05	33.23
May 22, 1978	855.42	99.09	28.68