June 30, 1973

US Agr Dept on June 29 repts farm prices increased 6%, May 15-June 15, and were 38% above corresponding '72 period; price fluctuations for specific crops discussed

Penn Central Transportation Co trustees on June 29 propose plan to end all freight and passenger service over 10-wk period beginning Oct 31 unless co receives assurances of aid from Govt or other sources prior to Oct 1; recommend $600-800-million in aid for line; rept its liquidation schedule, which could put rr out of business by end of yr, is made necessary by prospect of 'complete exhaustion of working capital'; assert plan is based on their conclusion that rr cannot be reorganized as originally contemplated by a traditional recapitalization of rr earnings; dirs of each of 15 rr subsidiaries authorize filing by their respective corps of petitions for reorganization under Sec 77 of Bankruptcy Act; move is seen as technical procedure to place parent co and subsidiaries on same footing

Fed Reserve on June 29 raises discount rate to 7% from 6 1/2% in its continuing effort to slow explosive growth of bank lending, which has contributed to inflationary econ boom; brief statement and fact that bd has made 5 previous discount rate increases this yr noted; 7% discount rate seen as strong symbolic signal of toughening Reserve policy on money and credit

12 NYC police officers, including 2 capts and 2 lts, face departmental trials on charges that they attempted to cover up evidence in killing of alleged pimp C Mack by Ptl A Tabbita on Aug 13, '71; Tabbita said at time that Mack had pulled a gun on him and tried to run him down in a car; grand jury investigating shooting 2 yrs ago returned no indictments, but case was reopened following complaint by Mack's sister, and 2d grand jury indicted Tabbita on charges of criminally negligent homicide and perjury; Police Dept reopened its case on basis of later testimony; accused officers listed; Tabbita por

3 original Watergate prosecutors, telling special Watergate prosecutor A Cox that 'transition...is basically complete,' withdraw from case on June 29, still maintaining their investigation had been 'conducted forthrightly, vigorously and professionally'; the 3 Asst US Attys, E J Silbert, D E Campbell and S Glanzer, offered to resign from case when Cox took office in May, but stayed on at Cox's request; in resignation lr attys answer some of criticism that has been brought against them; say they had no solid evidence that J S Magruder, former deputy campaign dir, was perjuring himself at Jan trial; say re-election com treas H W Sloan Jr did not convince them or grand jury that Magruder asked him to lie; say they did not call Magruder's asst, R Reisner, to testify because they had no reason to think Reisner had evidence to give; say they agreed to allow high level officials such as M H Stans, campaign finance chmn, to give sworn depositions rather than testimony before grand jury in effort to limit publicity surrounding case; say at no time were they ever subjected to intimidation or suggestions that they not pursue case vigorously; call Asst Atty Gen H E Petersen a 'man of unquestioned integrity' and say they know of nothing improper Petersen has done; say 'with benefit of hindsight, there are many things we'd do differently'; illus of Silbert, Campbell and Glanzer

Min Schmidt, announcing 5.5% upward revaluation of mark, says immediate perverse effects of move will be to increase value of exports and reduce value of imports until competitive forces have had chance to rule; notes many of W Ger's exports are in heavy-equipment category, where sales are not too susceptible to price changes, except over longer periods; for these reasons, W Ger has been widening and intensifying demand for marks; May trade surplus put at 2.82-billion marks, more than twice figure of 1 yr ago

Sen Watergate com chmn Sen S J Ervin Jr suggests publicly on June 28 that Pres Nixon appear before com and reads Photostat of news article in Feb 14 1862 edition of NY Tribune concerning Pres Lincoln's appearance before HR Judiciary Com; later, Sen L P Weicker (Conn), reads into record portion of C Sandburg's biog of Lincoln, The War Years; account was of Lincoln's dramatic, uninvited appearance before Sen com to declare, 'it is untrue that any of my family hold treasonable communication with enemy'

NYS Deputy Atty Gen M H Nadjari is investigating allegations that NYC officials and other pol figures recd kickbacks to arrange placement of millions of dollars in city funds in interest-free accts in favored banks, according to sources knowledgeable about investigation; sources say that figures from all 4 major parties in addition to city officials have been questioned; City Finance Admr R Lewisohn, whose office supervises banking of city funds, declines to say on June 29 whether he has been questioned by Nadjari; asserts 'it isn't proper' to discuss investigation; adds that he has 'nothing to keep back'; Controller Beame aide E Katcher notes that when Beame took over as city's top fiscal officer in '70 he found 'some' funds in interest-free accts in certain banks but had them transferred to interest-bearing accts; one of banks said to be under investigation is Century Natl Bank & Trust Co; J E Ruggiero, former Repub party officer in Manhattan who recently completed 3-mo jail sentence for perjury, states on June 29 in int that he was questioned in Nadjari investigation several wks ago because he was at one time counsel to Century Natl; bank chmn is V Albano, Manhattan Repub Chmn and close friend of Ruggiero; bank pres is L M Marchini; sources say that among persons questioned by investigators in Nadjari's office were M D Strickler, Deputy Finance Admr, and S McDonald, who formerly held job

Pres Nixon on June 29 urges citizens to reduce fuel consumption as part of natl voluntary conservation drive; appts Gov J A Love program dir; urges reduction in auto use by car pooling and use of mass transit; urges driving at lower speeds to conserve gasoline; Love says he will divest his oil holdings, news conf; rejects fuel rationing and controls on car horsepower

Sen agrees on June 29 to attach compromise measure on ending US bombing of Cambodia to appropriations measure enabling Fed depts and agencies to operate through 1st qr of new fiscal yr starting July 1, even though Cong has not approved regular appropriations measure

rebel forces seize control of downtown Santiago, Chile, at 9 AM on June 29 and fire at Defense Ministry and Pres palace; at 1 PM Pres Allende, who was away from palace at time of outbreak, announces in nationwide broadcast that revolt was quelled and that rebel troops, part of armored regiment, have surrendered to Gen C Prats Gonzalez; navy and air forces gave Allende immediate assurance of loyalty; 7 people are killed, 22 wounded; Allende decrees state of emergency, gives armed forces control of public order and calls for calm; no communique is known to have been issued by rebels and no civilian sectors or parties have broadcast support of them, but Allende hints at a plot; says members of right-wing Patria y Libertad took part; leftist demonstrators try to storm anti-govt paper La Tribuna and right-wing National party headquarters, but are repelled by police; Allende identifies Col Ramirez as leader of revolt; it is not clear yet if revolt is connected with 'barracks revolt' uncovered by army on June 27; center-left Christian Democrats, main opposition party, calls for support of Govt; shortly after revolt, pro-Govt demonstrators march through streets; there is wide disagreement on what role traditionally neutral mil should play in Govt; moderates of left and right want mil participation to assure stability; extremists of left and right want mil out; revolt shows that mil is also divided on issue; map of Santiago; illus of shooting

article on Canadian view of monarch in light of Queen Elizabeth II and Prince Philip's current 11-day tour of Canada; illus of Queen