January 4, 1974

Pres Nixon on Jon 3 signs into law 2‐stage 11% increase in Soc Security payments that will augment incomes of 30‐million Amers; 1% of increase will take effect in Mar and be contained in checks received in Apr, and 4% will take effect in June and be contained in checks received in July; Nixon signed bill 6 mos ago authorizing 5.9% increase in July, which is supplanted by his signing of latest increase; improved benefits for 3.4‐million aged, blind and disabled persons are also contained in new law; new Fed supplemental security income system, which went into effect on Jan 1, provides Fed payments to assure recipients a monthly income of at least $130 and $195 for couples; new law increases figures to $140 and $210 immediately and to $146 and $219 beginning in July; to help pay for increased benefits, amt of persons annual income subject to Soc Security tax will rise to $13,200 effective immediately from $12,600 that had been scheduled to take effect in ‘74 and from $10,800 that was in effect in ‘73; tax rate remains at 5.85%; maximum Soc Security tax in ‘74 will rise to $772.20 from $737.10 that had been scheduled to take effect and from $631.80 that was in effect in ‘73; benefits, under revised escalator clause in new bill, will be further increased automatically if consumer price index rises by more than 3% between 1st qr of 1 yr and next, with increase to take effect in July; 1st such potential increase will come in July ‘75; Nixon calls bill extremely important, far‐reaching measure; adds that Soc Security benefits have risen by 68.5% since his Adm took office 5 yrs ago; White House fact sheet shows that bill will result in increase of $800‐million in budget deficit

NYS officials on Jan 3 say Gov Wilson will propose encouragement of efforts to tap methane from garbage and agr waste for fuel in energy section of State of State message; research on methane is presently underway at Cornell Univ and is expected to move from laboratory stage to establishment of prototype plant (M)

Port Auth of NY and NJ repts that 12,312,700 motorists used its 6 tunnels and bridges in Dec, 6.8% fewer that in Dec ‘72; attributes decline to gasoline shortage (S)

Ct document has been filed with Shearson, Hammill & Co, NYC, containing charges that officers of NY‐based Natl Bank of N Amer solicited and received payment from financially troubled Tidal Marine Internatl Co between ‘69 and ‘72 in return for approving over $7‐million in seemingly illegal loans, then falsified its books in attempt to conceal loans; A Ion Livas, former Tidal chmn, says in telephone int from Eng that he agrees with substance of charges against bank; Shearson is involved in $9‐million class action suit filed in ‘72, which alleged securities firm fraudulently recommended purchase of Tidal stock to its customers, while as co's investment banker, it was fully cognizant of Tidal's unsound financial condition; Shearson's latest response to charges contends it was misled by Tidal and Natl Bank should indemnify it for any liabilities; S Cohen, bank's exec vp, says claim lacks merit, declining comment on specific charges and on repts of Fed grand jury investigation; content of Shearson's allegations against Tidal Marine and Natl Bank noted; trading in Tidal Marine stock was suspended by SEC from Nov ‘72 through Jan ‘73, and is not now traded; co outlined default to Natl Bank on $15‐million in loans and lesser debts to other insts in its last public release in information in Nov ‘72; bank pres J H Vogel declared in ‘72 that bank was writing off loans as uncollectable (M)

Canada's House of Commons adopts tough new rules to govern financing of election campaign; sets limit on how much candidates may spend, requires full disclosure of contributions over $100, and provides some campaign expenses be paid out of Fed treasury; references to pol scandals in US noted; John M Reid comments; each party will be permitted to spend nationally no more than 30c for each registered voter under new regulations; bill also provides free broadcast by candidates; individual pol donations will be deductible for income tax purposes (L)