News stories from Wednesday January 26, 1977

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

The first suggestion of strain between the White House and congressional Democratic leaders came in a statement by the Senate majority leader, Robert Byrd of West Virginia, to reporters that President Carter had never sought his advice. He said he would have warned him that the nomination of Theodore Sorensen as Director of Central Intelligence would run into trouble, and could suggest to him which Senators to consult on specific issues. [New York Times] House Democrats ousted Representative Robert Sikes, who was reprimanded last year by the House for financial misconduct, from his chairmanship of an appropriations subcommittee. The 189-to-93 vote by secret ballot was hailed by some members as a sign of a desire to enforce higher ethical standards. [New York Times] About 350 subpoenas on persons in the shipping industry on the East and Gulf Coasts were served by the Federal Bureau of Investigation in an investigation of what one source called wholesale kickbacks by shipping companies to the International Longshoremen's Association. A knowledgeable source said Anthony Scotto, an I.L.A. vice president and Brooklyn local chief, was a major target, although he was not subpoenaed and he vehemently denied any involvement. [New York Times] The Federal Trade Commission in its consumer protection role has negotiated a refund of almost $4 million -- said to be its largest yet -- from the Great Western United Corporation to some 14,000 investors in three land development projects in Colorado, California and New Mexico. The Denver-based company, controlled by the Hunt brothers, also agreed in the settlement to spend up to $16 million on capital improvements on the projects. [New York Times] Debt management under the Carter administration took no radical departures from previous policy when the Treasury Department announced the terms of a February refunding package. Officials said at the same time that the Treasury would increase its involvement in urban affairs to carry out President Carter's commitment to New York City and other urban areas. [New York Times] Stock prices gave ground across a broad front in active trading, with Dow Jones industrials dropping 7.39 points to close at 958.53. The bond market proved indecisive and Treasury securities prices slipped moderately. [New York Times] President Carter sent his emergency legislation on the natural gas shortage to Congress, asserting that 400,000 persons were unemployed because of the shortage and the cold weather. He appealed again to the public to help ease the crisis by turning thermostats down to 65 degrees. The bill provides temporary federal authority to shift gas from one interstate pipeline to another. Swift action appears likely in the Senate, but the House plans hearings and may take longer to decide. [New York Times] Percy Sutton, Manhattan's Borough President, announced his candidacy for Mayor of New York City, pledging to "liberate" it from the banks, Governor Carey and the Emergency Financial Control Board. He is the first of several Democrats expected to challenge the incumbent Mayor Beame. [New York Times] Recent arrests in Czechoslovakia of human rights activists drew a State Department charge of violation of the 1975 Helsinki agreement. It was the department's first public accusation against any government of non-compliance. The Carter administration has pledged more attention to foreign failures to observe human rights. [New York Times] The Spanish government confronted a menacing wave of political violence with the announcement of a ban on demonstrations and expulsion for foreigners with "extremist" sympathies, as well as restrictions on private arms. It continued its plans for general elections. After a day of work stoppages and a huge Communist-organized protest march in Madrid against right-wing violence, the statement was an apparent effort to display control of a disquieting situation. [New York Times] Canada's Prime Minister, Pierre Trudeau, said the New York speech in which Rene Levesque, Quebec's separatist Premier, called independence for the province inevitable, "made all Canada realize we are in certain danger." He told the House of Commons his government would continue to fight to keep the country together. The Premier of Prince Edward Island, a member of Mr. Trudeau's Liberal Party, warned that if Quebec left the confederation it could have a domino effect on provinces such as mineral-rich Alberta and British Columbia. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 958.53 (-7.39, -0.77%)
S&P Composite: 102.34 (-0.79, -0.77%)
Arms Index: 1.35

	Issues	Volume*
Advances	549	7.59
Declines	907	16.87
Unchanged	449	3.38
Total Volume		27.84

* 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 25, 1977	965.92	103.13	26.34
January 24, 1977	963.60	103.25	22.89
January 21, 1977	962.43	103.32	23.93
January 20, 1977	959.03	102.97	26.52
January 19, 1977	968.67	103.85	27.12
January 18, 1977	962.43	103.32	24.38
January 17, 1977	967.25	103.73	21.06
January 14, 1977	972.16	104.01	24.48
January 13, 1977	976.15	104.20	24.78
January 12, 1977	968.25	103.40	22.67