Friday October 27, 1978
. . . where the 1970s live forever!

News stories from Friday October 27, 1978


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

  • The cost of living rose 0.8 percent last month -- a 10 percent rate of inflation in annual terms -- and the purchasing power of an average hour's pay declined fractionally as wages failed to keep pace with prices. The Labor Department said the buying power of an hour's work was 0.2 percent lower than the month before, and also 0.2 percent less than a year ago. The White House acknowledged the news was "not encouraging," as press secretary Jody Powell put it, and said it proved the need to comply with President Carter's anti-inflation plan, announced Tuesday night.

    Meanwhile, other economic statistics were published suggesting inflationary pressures may be abating slightly. The Labor Department said that unit labor costs rose at an annual rate of 5.1 percent last quarter, well below the rates earlier this year. These labor costs per unit of production are an important part of the so-called underlying rate of inflation. The administration announced at the same time that it now expects the federal budget deficit for the fiscal year that began Oct. 1 to be $38.9 billion, $10 billion less than estimated in July. [Washington Post]

  • Mark Lane, lawyer for James Earl Ray, told House investigators today that former and off-duty F.B.I. agents assassinated the Rev. Martin Luther King Jr. Lane refused to disclose publicly any evidence he might have, but said he would if the House panel did not. [Washington Post]
  • F.B.I. director William Webster says there are about 1,900 Soviet-bloc spies operating in the United States, and Chicago is among their key targets, Webster told 1,000 civic and business leaders here Thursday. Webster said the number of agents from Soviet-bloc countries has doubled in the last 12 years. He said 100 spies arrived in the United States within the past three months. [Washington Post]
  • Four days after launching his new anti-inflation program, President Carter is preparing to take actions that probably will raise prices in the two most inflationary sectors of the economy -- food and fuel. Soon, the President is expected to sign legislation to deregulate natural gas prices by 1985. He's also facing a decision on how much to ask farmers to cut back on feed grain production.

    A fistful of Republican Party regulars used national television tonight to condemn Carter administration economic programs, with G.O.P. National Chairman Bill Brock calling the President's policies little more than a "quick fix." In introducing the taped broadcast, Brock said, "Inflation isn't a partisan problem." But he joined President Ford and former California Governor Ronald Reagan in labeling the 95th Congress and Carter as big-spending Democrats. [Washington Post]

  • Cleveland's school board and superintendent were convicted of civil contempt by a federal judge for not obeying an integration order. Judge Frank Battisti threatened possible criminal contempt action in the future. School officials were accused of firing two school integration administrators and cutting the salaries of two others without required court approval. The judge also ordered the school board to pay $4,500 to the N.A.A.C.P. to cover the cost of bringing the civil action. [Washington Post]
  • At a White House ceremony crowded with labor, civil rights and other liberal political leaders, President Carter signed the Humphrey-Hawkins "full employment" legislation, but used the occasion to focus attention as much on inflation as on joblessness. The bill, a shadow of its original version, requires the President annually to set forth goals for employment, unemployment, production and inflation for the succeeding five years, and it sets as a national goal the reduction of the overall unemployment rate to 4 percent by 1983. [Washington Post]
  • Calling on Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin to make new efforts to "secure a future without war to the war-exhausted people of the Middle East," the Norwegian Nobel Committee awarded its 1978 Peace Prize jointly to the two leaders for the progress they have already made in ending 30 years of Arab-Israeli warfare. In a citation that openly declared its political intention of spurring the Egyptian-Israeli negotiations along by extending the honor to both men now, the committee also warmly praised President Carter's "great role" in bringing Sadat and Begin together at the Camp David summit last month.

    Carter was also nominated for the prize, but well after the February deadline for formal nominations had passed, Aase Lionaess, head of the Nobel committee, told reporters in announcing the award in Oslo. The announcement triggered mixed reaction around the globe. It brought elation in Israel. But in a more subdued Egyptian response, Cairo radio failed to mention that Sadat would have to share his long-coveted award with Begin. Egyptian editors voiced disappointment over the split prize. [Washington Post]

  • The Egyptian-Israeli talks, which last Sunday appeared close to agreement on a peace treaty, were brought to a standstill tonight by the Egyptian government's decision to recall its two top negotiators for consultations. That decision, announced in Cairo by Prime Minister Mustapha Khalil, cast a new cloud of uncertainty over the effort to forge a treaty to end three decades of hostility between the two Middle Eastern countries. Its first effects were to create confusion and concern among the participants in the U.S.-mediated talks here.

    The two chief Egyptian negotiators, Defense Minister Kemal Hassan Ali and acting Foreign Minister Boutros Ghali, who were meeting with Secretary of State Cyrus Vance when the Cairo announcement was made, sent word to waiting reporters that they had not received any instructions to return home. However, the expectation was that official word of their recall would reach them during the night and that they would leave Washington tomorrow for what Khalil said would be two or three days of talks in Cairo. The Egyptian action came as the Carter administration worked to prevent a dispute over Israel's announced intention to expand its settlements on the West Bank of the Jordan River from becoming an obstacle to completion of the peace treaty. [Washington Post]

  • The American pilot of an Argentine freighter expected until the last moment that the Coast Guard cutter Cuyahoga would avoid him, and said any of a number of maneuvers by the cutter could have prevented the two from colliding. John Hamill, 29, Baltimore-based pilot of the freighter Santa Cruz II, testified calmly before a Coast Guard board of inquiry in Baltimore today that despite a left turn that placed it in the path of the oncoming freighter, the cutter could have continued at full speed and safely passed the freighter's bow.

    Instead, Hamill said, the Cuyahoga's commanding officer suddenly reversed engines, causing Hamill to throw his vessel to the left in an effort to turn away from the cutter at the last moment. Hamill also testified that had he made an earlier course change to avoid the cutter -- which was rammed by the freighter and sank, killing 11 crewmen -- he would have violated the nautical "rules of the road" and therefore would have relinquished his position as the vessel with the right of way.

    "I knew what my duty was," Hamill said. "In the last seconds, I had the impression he was gaining more speed . . . getting across. He probably would have made it. If the Cuyahoga had stayed full, I would have missed her." "I can't make decisions for both ships," he said. "I have to feel the other one is competent." Today's appearance by Hamill, a seven-year veteran with 700 trips in the area where the collision occurred, bolstered earlier testimony describing questionable actions taken by the Cuyahoga crew as it crossed crowded shipping lanes. [Washington Post]



Stock Market Report

Dow Jones Industrial Average: 806.05 (-15.07, -1.84%)
S&P Composite: 94.59 (-1.44, -1.50%)
Arms Index: 1.55

IssuesVolume*
Advances1892.87
Declines1,46834.62
Unchanged2353.06
Total Volume40.55
* 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
DateDJIAS&PVolume*
October 26, 1978821.1296.0331.99
October 25, 1978830.2197.3131.38
October 24, 1978832.5597.4928.88
October 23, 1978839.6698.1836.09
October 20, 1978838.0197.9543.67
October 19, 1978846.4199.3331.81
October 18, 1978859.67100.4932.97
October 17, 1978866.34101.2637.87
October 16, 1978875.17102.6124.60
October 13, 1978897.09104.6621.93


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