September 21, 1974

Canadian Min Donald S MacDonald says export price of natural gas will be increased from about 60c to $1 for 1,000 cubic ft, price rise that will cost Amer utilities additional $330‐million a yr; says increase will put Canadian gas in ‘more equitable relationship with other energy sources in US, encourage search for more gas and restrain waste; says importers can elect to pay old price for duration of current contracts but that if they choose to do so, export license will be terminated at end of 2 yrs; Canada exported 1,049‐billion cubic ft of natural gas to US in ‘73, and Canadian Govt repts that about 15‐trillion cubic ft remain to be moved to US under existing licenses; MacDonald por (M)

BLS, reptg that Consumer Price Index rose 1.3% in Aug, shows that milk prices declined 0.5% and fresh fruit and vegetable prices declined 3.7% (S)

Fed Reserve Chmn Burns indirectly confirms that Reserve has moved to slightly less restrictive monetary and credit policy by calling ‘encouraging’ recent drop in short‐term interest rates, speech at Adm‐sponsored Sept 20 conf of 55 non‐govt bankers and financial leaders on inflation; notes tensions in financial mkts have dropped somewhat in recent wks; sees need for continued moderate monetary restraint; warns large or lasting interest rate declines are unlikely until financial mkts see that Reserve is no longer pursuing lonely struggle against inflation; pledges there will be no credit crunch in US and that money and credit supply will continue to expand; joins in gen call for fiscal policy tilted toward surpluses instead of deficits as way to lower interest rates; participants generally approve recent Fed Reserve policy relaxation but differ on whether Reserve should continue restraint or move toward further relaxation; only Howard Coughlin of Office and Professional Employes Union calls for drastic policy easing; Robert V Roosa (Brown Bros Harriman & Co) notes discussion is difficult because Reserve policy is not clear; Raymond J Saulnier warns US is closer to financial crisis than perhaps even financial people understand; urges Reserve to let money supply grow more rapidly than 3% rate of last 3 mos; Burns illus with Long; George P Shultz illus with Walter B Wriston (M)

NYC Police Comr Codd meets with PBA pres McFeeley to discuss more flexible guidelines for disciplinary action against policemen accused of misconduct in wake of shooting by Ptl Frank Bosco of 14‐yr‐old Claude Reese in Brownsville (S)

NYS Racing and Wagering Bd officials disclose on Sept 20 that 4 horses saddled by different trainers were drugged in recent races at Belmont Pk and that racing investigators are looking for suspected fixer; suspect, a gambler who has been banned from number of tracks, is described as a ‘most nefarious type’ with expert knowledge of medications; druggings, involving races between Sept 4 and Sept 12, have mystified authorities; different drugs or medications, ranging from stimulants to pain‐killers and diuretics, were found in post‐race urinanalysis of 4 horses; Desert Vixen and Dolls and Dreams are identified as 2 of horses; no evidence of wrongdoing has been found on part of trainers or attending veterinarians; William L Cotter, trainer of Dolls and Dreams, comments; Racing and Wagering Bd also announces that jockey Sandino Hernandez has been suspended indefinitely after illegal battery was found in his possession before race; battery is electrical device used to speed up horses by administering shock; illus (M)