August 24, 1974

conspiracy count to which Amer Ship Bldg Co and its chmn George M Steinbrenner 3d plead guilty is central charge in original indictment, which portrays complicated scheme in which corporate funds were channeled through such mechanisms as fictitious bonuses and expense accts to campaign coms for influential politicians such as US Sens Daniel K Inouye of Hawaii and Vance Hartke of Ind (S)

number of well-known Dems, sensing voter ennui toward NYS Dem US Sen primary, are saying privately that front-runner may be former US Atty Gen Ramsey Clark, whose campaign features only small contributions, no major TV ad and openness toward various controversial groups; party designate Syracuse Mayor Lee F Alexander apparently is trying to find out what official designation is worth in money and workers; has recd promise of help from powerful Bklyn Dem Chmn Meade H Esposito but campaign income is lowest of 3 candidates at last rept; Alexander campaign strategists say they will be criticizing Clark more, indicating that they recognize his front-runner's position; 3d contender Abraham Hirschfeld is wealthy maverick fund-raiser running for 1st time; is attempting unusual ad approach, campaigning as 'mensch,' Yiddish notion of industrious, decent person; party professionals reptdly feel he is on 'ego trip' and will eventually offend large segment of Jewish voters in primary; 3 contenders' campaigns discussed; Hirschfeld is best situated for TV 'blitz' in event that race does not generate interest in coming wks; estimates total campaign cost of $250,000 although some Dems view this as low estimate; Alexander has raised $50,000 so far, compared with $150,000 for Clark; all 3 denounce Repub opponent US Sen Javits as consummate practitioner of old pol, accusing him of artfully evading controversial issues; candidates comment on opponents' and their own qualifications; illus of Clark, Hirschfeld, Alexander and wife campaigning (L)

State Indus Comr Louis L Levine, commenting on Labor Dept unemployment rept, describes state's situation as 'econ stagnation' (S)

Agr Dept predicts drought in Midwestern agr regions will result in rise in food prices during final phase of '74; projects 3- to 4% increase in prices from beginning of July to end of Dec; food prices for '74 are expected to avg 15% above '73 (M)

Pan Amer formally appeals to Fed Govt for emergency $10-million-per-mo subsidy 'to stave off imminent financial crisis' because of soaring fuel costs and slumping passenger loads, petition to CAB; suggests it may be forced to sell more assets and abandon some routes in order to stay in business; asks that subsidy be retroactive to Apr 3 '74; carrier's net loss of $32.8-million for 1st half of '74, compared with $22.9-million during corresponding '73 period, noted (L)