December 27, 1972

grand jury begins investigation on Dec 26 into recent thefts of large quantities of narcotics from NYC Police Dept

Truman, Harry S: Nixon tribute on death of former Pres Truman; excerpts

Labor Dept study by P Henle finds that changing population and indus structure in US are producing persistent trend toward inequality in income distribution among wage and salary earners; trend is toward concentration of increasingly large share of avg wage and salary income among people in jobs and professions that already bring higher pay; unlike most studies of income, which examine family earnings, Henle study examines only money earnings of male workers; using unpublished data from Census Bur, study finds that from '58-70 the share of aggregate wage and salary income earned by lowest 5th of male workers declined to 4.60% from 5.10%; at same time, share of highest 5th of male wage and salary earners rose to 40.55% from 38.15%; Henle, in telephone int, says trend reflects tendency in econ to produce more higher-paying jobs without reducing number of lower-paid workers; comments on some factors; suggests Govt could ameliorate problem through manpower training and antidiscrimination and other programs to 'open way for individuals to advance up earnings ladder'; study findings reptd in Labor Dept Monthly Labor Rev

USN purchases 17,414 shares of preferred stock in Gap Instrument, becoming largest stockholder, in move to salvage corp, which has been experiencing high cost overruns on Navy destroyer program, and to stave off higher cost of transferring contract; action makes USN largest stockholder in co and is believed to be 1st in which Defense Dept has purchased stock in private corp; chmn of Navy Contract Adjustment Bd Rear Adm R Freeman notes Defense Dept refused to increase contract price on Gap's request, instead invoking section of War Powers Act which enabled Navy to purchase stock under proviso that no dividends be paid on $1.7-million nonvoting, nonconvertible shares; notes Act may be invoked again with other cos if it proves successful with Gap

Pres and Mrs Nixon plan to fly to Independence, Mo, on Dec 27 to lay wreath at Truman Pres Library, where Truman's body will lie in state; plan to return to Washington after wreath-laying, indicating that they will not attend Dec 28 funeral