October 11, 1972

US Govt files $235,000 punitive damage suit on Oct 10 in NYC against Nehring Brothers Inc, 1 of city's largest real estate mgmt operators, charging that co had raised rents in violation of Fed econ stabilization program; W N Seymour, US Atty for Southern dist of NY, terms suit '1st major enforcement action' for alleged violations of Nixon's 14-mo-old program of wage and price guidelines; it is also largest fine sought by Govt under program; suit detailed

NYC Police Comr Murphy announces on Oct 10 a new experimental program aimed at keeping narcotics addicts out of city's clogged criminal justice system; will encourage addicts to seek treatment before they commit crimes to support their habits; addicts arrested for first offenses or misdemeanors will be given opportunity to receive treatment rather than go through ct process; teams of 2 ptl will work on streets with former addicts to try and reach crime-prone drug users before they commit crimes; storefront information centers will aid addicts in getting treatment, and mobile police narcotic information centers will be sent to high-addiction areas; program is planned in cooperation of Vera Inst of Justice and NYC Police Foundation

US Sup Ct, in 8 to 1 decision, strikes down on Oct 10 Ohio plan for direct tuition grants to parents of children in nonpublic schools; plan was considered testing ground for new methods of aid to ch-related pss; Ct affirms earlier Fed Dist Ct ruling that '71 Ohio law was violation of ch-state separation; Sup Ct ruled without full argument or written opinion, which means decision does not automatically rule out all of various state-aid formulas; tax credit plans for parents of parochial school children seen focus of new aid efforts; Sup Ct has agreed to hear plan developed in Miss of lending textbooks to private acads

White House press sec Ziegler repts, Oct 10, that Kissinger and Haig met in Paris with Le Duc Tho and Xuan Thuy for 3d day, Oct 10; Kissinger remains in Paris for 4th successive meeting Oct 11; will fly to US in the evening; decisions to stay on seen linked to meeting Kissinger had with French Foreign Min M Schumann after 3d session; Schumann called on Pres Pompidou after meeting; Nixon is advised of scheduled 4th meeting; Ziegler says there is no link between extended Paris talks and McGovern speech on Vietnam set for night of Oct 10; Amb Bunker meets for 45 mins with Pres Thieu, Saigon, 3d meeting since last wk; repts from Saigon deny Kissinger's Paris talks concentrated on Pres Thieu's pol fate; deny there are any changes in basic negotiating positions of both sides; Hanoi radio makes same assessment; negotiating stands of both sides revd

Repr Biaggi on Oct 10 charges that 11 NYS schools for mentally retarded may lose $36-million in Medicaid funds in '72 because they have not met Fed standards involving number of nursing personnel; NYS Health Dept, rather than appeal to public to pressure NYS to increase budget, has asked for and recd lower accreditation rating, allowing hosps to operate with fewer nurses and reducing Medicaid reimbursement rates by almost 40%; dept spokesman says that had it elected to stay within higher rating, it would have lost 100% Medicaid reimbursement; Biaggi releases copies of affidavit sworn to by M Chalef, associate regional comr of Med Services Adm of HEW Dept, outlining change in Medicaid rates that accompanied switch in accreditation from skilled nursing facility to intermediate nursing facility; change officially occured in June; Biaggi estimates total loss at $36-million; NYS estimates loss at $21-million; Health Dept spokesman denies that Medicaid crisis was kept secret; says dept announced that both public and private skilled nursing facilities face loss of accreditation and Medicaid money; announcement did not indicate that state schools for mentally retarded are classified as skilled nursing homes; schools lost nursing personnel through attrition and state's hiring freeze; Deputy Comr Grunberg says dept has hired 3,000 new employes since April and hopes to return to higher accreditation standard within yr