August 11, 1973

Cost of Living Council Dir J T Dunlop on Aug 10 says price of oil, heating oil, gasoline and other petroleum products will remain frozen until Aug 19 and be followed by system of price ceilings only slightly less rigid than freeze; says ceilings may spur some rollbacks but does not expect wide rollback trend; repts service station pumps will be affixed with red-white and blue stickers displaying lawful prices; says freeze was extended to allow more time to draw up regulations for indus; admits price policies will give US cos advantage over foreign imports; illus; retail prices of gasoline and Number 2 heating oil will be allowed 7c a gal increase over Aug 12 prices; heating oil distributors may increase prices once a mo to cover shifts in price of imported oil; crude oil prices will be based on May 15 price plus increase not to exceed 35c per bbl; 2-tier price system of crude oil will permit sale of amts above '72 production at free mkt prices while production under '72 levels will be subject to ceilings; gasoline station prices will still vary because base price will be that of Jan 10

bank guard F Carty is seriously wounded Aug 10 during exchange of gunfire with 2 men who held up branch of First Natl City Bank at 200 Park Av, NYC, in 2d holdup of day in same branch; bank employes were still discussing 1st holdup in which lone gunman passed note to teller and escaped with $5,300 when 2d holdup took place; 2d holdup and shooting described by some witnesses; 1 of men may have been shoot by bank guard during escape; 2 men answering description of robbers are later taken into custody while riding in 'gypsy' cab at 42d St and 8th Av

Israel announces on Aug 11 that its air force intercepted Middle East Airlines Caravelle jetliner, chartered by Iraqi Airways and on Beirut-Baghdad flight, and forced it to land at mil airfield in hopes of capturing members of Palestinian guerrilla orgn; Israeli mil official concedes wrong plane was intercepted; leaders of Palestinian commando movement believed to be passengers aboard plane; map of craft's route

Pres Nixon on Aug 10 signs 4-yr omnibus farm bill that includes new method of subsidizing major crops; under new program, Govt will make no effort to keep prices up by means used in past; prices, instead, will be set wholly by mkt forces of supply and demand and Govt will pay farmers in cash if prices for their products fall below 'target' prices established by new law; Nixon calls bill 'constructive' compromise, noting that it will encourage full production and dampen inflationary pressures; says that law 'should help' in battle against inflation by encouraging Amer farmers to produce at full capacity; Agr Sec Butz holds that bill represents 'historic turning point' in philosophy of US farm programs; claims that new 'philosophy' is geared to expanding output, after yrs of curtailement; expects expanded demand on mkts, probably meaning that farmers will receive prices above new target prices; Butz illus

Many of the nation's biggest banks yesterday raised their prime interest rate from 9 to 9¼ per cent, a record.