March 9, 1974

NY Times survey indicates that cable TV revolution predicted in '72 has turned into 'massive retreat' in cities; many large cable cos have stopped seeking urban franchises and have relinquished some they own; main problem is consumer's relative indifference to kinds of cable service offered; cable advocates outside indus place blame for medium's failure on hardware orientation of indus; cable strung along telephone poles in nonurban areas costs about $6,000 a strand mi, while laying it underground in cities cost between $10,000 and $50,000; only 30% of those to whom cable service became available in Manhattan subscribe to it; operating expenses are driven up by number of unforeseen factors related to city living: vandalism, piracy of service, astronomical parking fines for repair trucks and shakedowns from landlords and bldg superintendents; Warner Communications recently has given up its franchises in Dayton, Ohio and Birmingham, Ala; GE Cablevision has withdrawn from San Antonio, Tex, and Teleprompter has decided not to build in Newark after having spent over $2-million to win franchise; plight of Telemprompter, which has postponed over $15-million in construction that had been budgeted for '73, revd; Viacom Internatl pres Ralph Baruch and Warner Cable chmn Alfred R Stern comment; recommendations of Pres Nixon's Cabinet Rept on Cable Communications cited; experimental programs in Orlando, Fla, where viewers can shop by TV, and in San Francisco noted (L)

Pres Nixon suggests limiting Pres campaigns to 2 mos by holding nominating convs in Sept, Mar 8 speech on campaign reforms (S)

Chock Full O'Nuts Corp on Mar 8 takes over Rheingold Breweries from Pepsico Inc, ceremony, City Hall, NYC (M)

Harry L Sears' 4th day of testimony in Mitchell-Stans trial devoted to recounting his and Mitchell's efforts to keep financier Robert L Vesco, just weeks from Election Day, from disclosing he made $200,000 cash contribution to Pres Nixon's re-election campaign; tells of Vesco pressuring him, Mitchell and Pres Nixon's bro Donald to have SEC investigation of his business affairs quashed in return for his silence about contribution; says when Vesco cited 5th Amendment before SEC when asked about contribution, Mitchell asked him (Sears) to convey his gratitude; recalls that several weeks before election, he again went to Mitchell on Vesco's behalf and Mitchell promised to call Pres Nixon's counsel John W Dean 3d about matter; does not say whether call was made; Dean is unindicted co-conspirator in case; says shortly after election, Mitchell handed him large folder addressed to Donald Nixon; Govt contends folder contained memo from Vesco threatening to disclose his contribution if SEC did not drop all legal proceedings against him; folder was never picked up by Donald; tells of lr Vesco had Costa Rican Pres Figueres write to Pres Nixon, warning that SEC investigation might upset large financial investments Vesco was making in Costa Rica (L)

Repr W D Mills predicts that rept next mo by Cong Joint Com on Internal Revenue Taxation will increase pressure on Pres Nixon to resign; he says he believes 'very strongly' that Nixon should and will resign; com is investigating Nixon's income taxes; Mills says Watergate alone will not force Nixon out of office; discounts chances of Nixon's impeachment but says com will send its rept to HR Judiciary Com, which is studying impeachment (M)