March 23, 1973

ITT officials, at Sen subcom hearing into co's alleged attempts to prevent election of S Allende as pres of Chile in '70, on Mar 22 give conflicting versions of reptd plan to persuade Allende that he could mollify world opinion by making fair deal with ITT when confiscating its businesses and then confiscate Kennecott and Anaconda copper properties with impunity

ICC and Transportation Dept have reptdly split on upcoming recommendations to Cong on plans to save bankrupt Northeastern rrs; ICC is expected to rept that Fed grants coupled with sweeping reorganization are needed to save rrs; Transportation Dept will recommend guaranteed loans to upgrade rrs' equipment; ICC is expected to argue that loan guarantees cannot be effective; Transportation Dept rept will contain formula for determining what rail services are essential, methods of streamlining rate-making procedures, procedures for accomplishing smooth transition of services and modernizing regulations, and recommendations for freer entry by rrs into trucking field; ICC will ask that its own power be increased to allow it to determine which routes should be abandoned and which rrs merged

Continental III National Bank A Trust announces March 22, following meeting with Burns and other Govt officials, that it will cut back its prime lending rate from 6 3/4% to 6 1/2%; action follows statement from Interest and Divds Com that increase was not justified at this time; meeting was attended by Continental and other reprs from other banks that raised their prime rates; Burns, following meeting, issues statement endorsing dual prime rate concept which would allow for lending rate to large corps that would fluctuate with mkt interest rates and other rate for smaller businesses that would change much less frequently; Bankers Trust chmn W H Moore expresses interest in new idea, agreeing upward movements in interest rates should not automatically signal increases in rates to smaller businesses; Burns, responding to earlier Repr Patman criticism of his decision to keep meeting closed to public, defends his decision, follow-up lr

Comdr of US forces in Pacific, Adm N A M Gayler, says, Mar 22, there have been disagreements with Hanoi that have delayed removal or detonation of mines in N Vietnamese waters; says Hanoi has incorrectly expected that mines sunk deep m the mud of Haiphong harbor would be removed; says truce protocol required only that shipping channels off N Vietnam be cleared; says there have also been disagreements with Hanoi over moving ships that the Amers believe to be interfering with the minesweeping

Stock prices made their broadest decline in 10 months in active trading yesterday as concern about inflation, interest rates and the dollar crisis led to a selloff. The Dow‐Jones index fell 13.17 to 925.20, its lowest level of the year. Volume rose to 17.1 million shares, from 16 million on Wednesday. Page 49.