May 10, 1974

WASHINGTON, May 9—The sharp rise in industrial wholesale prices continued In April, but a drop in agricultural prices slowed the rise in the, over‐all Wholesale Price Index; the Labor Department reported today.

sources close to negotiations rept that agreement has been reached to impose 5% surcharge on winners' pool at offtrack betting parlors, paving way for final approval of NYC's fiscal '75 expense budget pkg; agreement makes imposition of surcharge optional for NYC but if City Council adopts measure it would become mandatory for offtrack betting operations in other parts of state; surcharge is expected to provide $30-million for NYC to help close $818-million budget gap (M)

House Judiciary Com, in 1st day of hearings on impeachment of Pres Nixon, reptdly hears that Pres Nixon may have been given gen briefing on '72 campaign intelligence operation on Apr 4 '72, 5 days after John N Mitchell allegedly approved broad-scale intelligence-gathering operation that resulted in Watergate break-in; tape recording of that meeting is among 75 tapes that Nixon's special counsel James D St Clair says will not be turned over to com; illus of com (M)

Repr J J Rhodes says Pres Nixon should think about resigning, meeting with reporters; says resignation is 'possible option' in face of unfavorable public reaction to White House transcripts, further erosion of public confidence in Pres and growing chance of impeachment; holds contents of transcripts are 'devastating,' and whether or not they contain evidence of impeachable offense, damage may be irreparable; estimates chances of beating a bill of impeachment in HR have narrowed to '51-49' no; Repr J B Anderson says that unless Nixon resigns he will be impeached; says transcripts make it clear that Nixon was deeply involved in Watergate on Mar 13 '73 and that Nixon has 'damaged himself irreparably' by publishing his own conversations; Sen M W Cook calls on Nixon to reconsider resigning; AP also quotes informed sources as saying Sen R S Schweiker will call for Nixon's resignation at May 10 news conf; Interior Sec R C B Morton says there has been breakdown in natl leadership and in 'our ethics of govt,' speech, Springfield, Mo; former UN Amb Charles W Yost says Nixon's resignation would be 'quickest way' out of US's agony; columnist James Jackson Kilpatrick says he feels 'shame, embarrassment, disgust, chagrin' after reading full transcripts, speech, Stanford Univ; White House communications dir Kenneth W Clawson and White House counselor Anne Armstrong say Nixon will not resign; White House aide Dean Burch, in formal statement responding to Chicago Tribune's call for Nixon's removal, says he has asked Tribune to publish: 'The question remains: Did Richard Nixon do wrong?'; holds what Nixon did was right in context and balance; Nixon holds legis breakfast for Repub's Cong leadership; sources say Watergate and transcripts were not discussed; Sen H D Scott, who on May 7 deplored transcripts, sits next to Nixon and Armstrong says they were 'very cordial' to one another; Nixon takes cruise on Potomac River in Pres yacht Sequoia accompanied by staff dr and mil aide; illus of Mrs Nixon with Rhodes, both smiling after she told him 'Let's look like we're friends' (L)

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