June 6, 1973

Sen Watergate com hears testimony on June 5 from R A F Reisner, former admistrative asst to J S Magruder, that pol espionage repts were prepared for meeting with former Atty Gen Mitchell and were sent to White House office of H R Haldeman, then Pres aide; it is 1st evidence in public and under oath indicating that Mitchell had access to memorandums gleaned from wiretaps on telephones at Dem Natl Com hq; Mitchell has acknowledged that illegal eavesdropping was proposed during meetings in his office in early '72 while he was still Atty Gen but he has said that he always rejected the plans and was unaware that they had been carried out; Reisner testifies that in wk or 2 before break-in at Dem hq, he saw repts written on 'Gemstone' stationery in Magruder's possession; 'Gemstone' is code word used within Nixon's re-election com to denote sensitive material obtained from wiretaps and from other spying activity; Reisner says that during period after wiretaps were installed, Magruder passed to him a Gemstone document 'in such a way that it was indicated to me very clearly that it was not for me to observe'; says he was instructed to place paper in 2 large files that Magruder prepared regularly to use in briefing Mitchell on com activity; files are said to be duplicates so that copies of papers could be given to Mitchell; S J Harmony, G G Liddy's former sec, testifies on June 5 that she typed about 8 memorandums later found to have been based on eavesdropping activity; says most of wiretapping repts were dictated to her by Liddy, suggesting possibility that source of information may have been disguised; says that Gemstone repts were on 2 occasions transcribed directly from logs of conversations delivered to her directly from clandestine listening post by J W McCord Jr; Reisner, when asked whether anyone else recd 'copies of memos that Mr Magruder sent to Mr Mitchell,' says 'each document to Mr Mitchell (that was) sent through me would have been a formal document to Mr Mitchell (and) a duplicate copy was sent to Mr Haldeman's office'; Reisner repts that neither FBI nor Fed prosecutors had approached him until after Sen com subpoenaed him; says he was unaware prior to Watergate break-in that some intelligence repts were based on wiretaps; says Magruder asserted similar ignorance; asserts that Magruder also indicated that file containing Gemstone documents had been destroyed after Watergate burglary; says Magruder ordered him to take 'sensitive' files from his desk following burglary; says he did so and gave Gemstone file to R C Odle Jr, who has testified that he took file home for 2 days and kept it without learning nature of its contents; says that when Magruder returned from Calif in following wk, all 'sensitive' files in his office were 'centralized' and many were later marked by Magruder to be destroyed; says, referring to log of Magruder's apptmts, that Magruder met with Liddy, Mitchell and J W Dean 3d in early Feb; says he once saw memorandum dealing with information from campaign of Sen Humphrey and that source was codenamed 'Sedan Chair 2'; identifies source as apparently 'disgruntled' Humphrey worker and says he was paid $1,000-a-mo in com funds for 6 or 9 mos; illus of Harmony and Ervin

Study of NYS Sup Ct by Economic Development Council shows that justices handling criminal cases in Manhattan are on bench an avg of 3 hrs and 21 mins a day, 52% of their working time; concludes that major causes of under-utilization of cts is failure of judiciary to schedule work load properly and to discipline lawyers and other ct personnel who are absent or tardy; team of mgt specialists studied ct rooms from Feb 28 to Mar 24, '72, finding that avg on-the-bench time was 3 hrs and 44 mins; follow-up study from Dec 11 to 15 found decline in time to 3 hrs and 21 mins; other problems that exacerbate under-utilization of cts are backlog of felony cases and large number of arrested persons awaiting trial in jail because they cannot meet bail requirements; graph of distribution of judges' time

Thompson, Sidney (Ptl): NYCTA Ptl S Thompson is killed in shootout with 2 men on June 5 in waiting room of IRT elevated subway station at 174th St, Bronx; gunfire erupted as Thompson questioned 2 men after stopping them as they tried to pass through turnstiles without paying fares; V Cumberbatch, alleged member of Black Liberation Army, is captured after being wounded by Thompson; illus of Cumberbatch and Thompson

charges of corruption against aides of NJ Gov Cahill are seen as principal reason for upset victory of his opponent US Repr C W Sandman Jr in June 5 Repub gubernatorial primary and of victory in Dem primary of B T Byrne, who has been touted by his supporters as 'man who couldn't be bought'; pol observers say that incumbent Gov's powers normally are enough to overcome ideological differences between conservative and liberal wings of his party but in Cahill's case corruption issue made him powerless to unite party; history of scandals revd; 1st involved former Sec of State P J Sherwin, Cahill's closest pol adviser, and resulted in Sherwin's conviction on charges of attempting to fix state hwy contract in return for pol kickback; although Cahill continued to receive support from many Dems and liberals when 2d scandal, involving former State Treas J M McCrane Jr and Repub leader N G Gross, broke 3 wks before Apr 26 primary filing deadline, corruption charges mounted in intensity

Pompidou and Bank of France Gov O Wormser say on June 5 that US authorities should defend dollar exch rates in Eur exch mkts as dollar falls to new lows, speeches, Amer Bankers Assn internatl money conf, Paris; Pompidou says at reception that monetary situation is 'cause for anxiety'; Wormser tells audience that monetary system is 'on the reefs' and that dollar should be defended to get system operational again; US Fed Reserve Bd Chmn A F Bums is accompanied by A Hayes and J D Daane; 3 refuse to comment on substance of remarks by Pompidou and Wormser; Sec Shultz will arrive on June 6; concern is said to be mounting over implications of dollar's latest de facto devaluation; latest decline started in early May with revelations in Watergate scandal in US that aroused doubts over Nixon's authority and his ability to manage econ; bankers are also beginning to express misgivings over system of floating exch rates; Amer officials who will be attending Paris meeting will be under strong pressure from French and Eur banking community to undertake policy of currency intervention; latest dollar rates against major Eur currencies noted; D W Palmer recently noted that number of econs have been saddled with exch rates which can only be burden in mos and yrs to come; warned of exch-rate instability, protectionist measures, possiblity of competitive devaluation and econ depression until such time order is re-established; few countries have been intervening to give their currencies more advantageous exch rates in relation to their trading partners; major fear is that individual nations will begin jockeying for position through exch-rate maneuvers to keep their export industries booming and will adopt protectionist measures and controls to keep exports of other countries out; Eur commercial, central bank and monetary officials will exert pressure on US to undertake active defense of dollar's exch rate