April 3, 1974

Con Ed discloses that its problems in raising capital funds are forcing it to cut $40-million of its construction program in '74 and requiring delay for at least 1 yr in completion of 800,000-kw generator in Astoria, Queens, statement following meeting between chmn Charles F Luce and PSC Chmn Joseph C Swidler; some state officials say that if demand does not drop during summer as conservationists predict, postponement of Astoria unit could seriously cut co's supply margin; Con Ed declines comment on whether cutback in spending, which amts to less than 10% of utility's total construction budget, will result in any rate reduction or scaling down of 29.3%-rate-increase request now before PSC; announcement is Con Ed's 1st acknowledgement of econ difficulties serious enough to affect its capacity to supply elec service; Luce and Swidler discuss other possible ways of dealing with situation (M)

Hogan, Frank S

crewmen on Cunard liner Queen Elizabeth 2, carrying 1,630 passengers on cruise to PR and St Thomas and stalled in Atlantic Ocean after boiler breakdown, are preparing for transfer of passengers to another vessel; liner has been drifting for 86 hrs while engineers attempted to repair fractured fuel pipe; Cunard chmn Victor Matthews radios from London on Apr 2 that line has arranged with Flagship Cruises (NYC) for Norwegian vessel Sea Venture to meet Queen Elizabeth 2 about 820 mi east of Fla, remove passengers and take them to Bermuda where they will board airplanes for NYC, all at Cunard's expense; Capt Torbjorn Haugge repts Sea Venture, in midst of wkly cruise, offered its 560 passengers option of going on rescue mission or remaining at hotels in Bermuda; says vessel took extra med and dining room staff on bd to help accommodate Queen Elizabeth's passengers; Cunard liner's Capt Peter Jackson says conditions on Queen are 'fairly good' with enough food and water on bd for several days of cruising; repts passengers' spirits are good; among passengers on Sun and un Pigskin Cruise are 8 pro football players and Kansas City Chiefs coach Hank Stram; Stram and Washington Redskin Ron McDole comment; Queen Elizabeth and Sea Venture illus; map (L)

NYC Mayor Beame says that increased taxes are inevitable to balance projected $12.9-billion expense budget, fiscal '75, budget meeting with Deputy Mayor James A Cavanagh, Budget Dir Melvin N Lechner and 1st Deputy Budget Dir John J Lanigan, Munie Bldg; says he does not know what kinds of taxes he will impose or how much; asserts he will rev budget requests to see if they are 'realistic'; there appears little hope that City Council will pass nuisance taxes in election yr; other tax options noted; Beame says he will ask City Council to extend June 25 deadline for budget submission if it becomes necessary to wait for Fed and state aid; city officials are looking for ways to erase $322-million deficit, fiscal '74; are considering appropriation of $49-million in city's Tax Appropriation and Gen Stabilization Reserve Fund (M)

struggle for power wielded by retiring Treas Sec G P Shultz discussed; Deputy Treas Sec William E Simon, who is expected to be named Treas Sec, will not inherit Shultz's title of asst to Pres or his White House office suite; sources say Mgt and Budget Dir Roy L Ash and State Sec H A Kissinger will both get more influence over econ policy with Shultz gone; sources call elevation of John C Sawhill to Simon's job as Fed Energy Office head probable; rivalry between Ash and Simon discussed; Simon por (L)