July 8, 1972

M Frankel article discusses importance of credentials issues to outcome of Dem Natl Conv; forces of Sens Humphrey and Muskie and Gov Wallace are reptdly forming stop-McGovern coalition in light of US Sup Ct's decision to let conv decide on seating of Calif and Illinois delegations; victory on these issues could deny nomination to Sen McGovern or give others bargaining power in choice of Vice-Pres nominee and platform planks

Labor Dept, on July 7, repts that Wholesale Price Index for June rose 0.5% before and after seasonal adjustment; factors include another large increase in farm and food prices, but rise in indus products continued at rate well above Govt's target; a new Govt index on wages, of hourly compensation, shows favorable anti-inflation signs in June; Econ Advisers Council chmn Stein, after conf in Calif with Nixon, says he believes rate of increase of indus prices will be pressed down by limits on co profit margins under price controls program; Labor Dept repts unemployment rate in June at 5.5%, lowest since Sept '70

Gov Wallace, in 1st public appearance since shooting, says in Montgomery, Ala, on July 7 that he will press for platform concessions; after flying to Miami on same day for Dem Natl Conv, he is greeted by Repr Mills; Wallace appears weak; illus of Wallace being greeted at Miami airport

July 8: (US Sup Ct Rules on Calif & Ill Delegations) US Sup Ct overrules by 6-3 vote on July 7 lower ct ruling on Calif and Mayor Daley delegates cases, returning controversy to Dem Natl Conv and thereby reinstating original determinations of Credential Com; decision is based on complete lack of precedent for judicial interference in pol party affairs; Dem Natl Conv will open with Calif delegation of 120 instead of 271 and 59 insurgent anti-Daley delegates temporarily seated until both questions can be decided by com; ruling poses problem for Sen McGovern but represents major victory for Dem Natl Com and its counsel J A Califano Jr, whose arguments throughout trial held that party, not ct, should settle party disputes; Sen McGovern comments on Sup Ct's decision; judges in majority are Chief Justice Burger and Assoc Justices Brennan, Stewart, Blackmun and Rehnquist; judges dissenting are Douglas, White and Marshall; Marshall and McGovern atty J L Rauh Jr comment

C Schaffner, chmn of Mayor's Bldg and Construction Advisory Council, says July 7 that HDA Admr Walsh's statement that members of construction indus are 'spineless and morally bankrupt' has severely damaged trust and cooperation between bldg indus and NYC officials; L Whiteman, exec dir of Investing Builders and Owners Assn, sends lr of reprimand to Walsh; M Paprin, pres of Assoc Builders and Owners of Greater NY, claims real cause of bribery is 'red tape and bureaucracy' of Walsh's agency and claims petty payoffs are not crimes; Walsh points to this as 'symbolic of attitude of construction industry'; por of Schaffner