October 4, 1974

 

Pres Ford is not expected to include in his upcoming econ policy message any announcement of measures that would significantly cut energy consumption; does not want to go to people 4 wks before Cong election with measures that would raise prices or cause gasoline lines; Melvin Laird recommended enactment of standby rationing; Repr Bill Archer repts that Ford is very much opposed to higher gasoline taxes (S)

Is co-winner of Nobel Prize in Literature; illus (M)

FDIC rejects Franklin Natl Bank plan to remain independent bank on Long Island, all but assuring end of bank in its present form; insolvency and sale of assets to other banks seen as only course left for Franklin; Franklin chmn Joseph W Barr says he will submit to FDIC revised proposal aimed at keeping bank alive; FDIC chmn Frank Wille terms bank's original plan unacceptable 'without substantial revision'; strongly disputes Barr's assertion that program would involve 'no ultimate cost to US'; claims plan would involve minimum outlay of $527-million and that FDIC stood to lose approx $214-million of investment income if it bought Franklin's low-yield, long-term bond portfolio instead of US Treas securities; Franklin's financial difficulties in last 6 mos recalled; bank has reptd losses in first 6 mos of '74 of $83-million; 17 banks have expressed interest in taking over all or part of Franklin; Wille claims FDIC could come to aid of Franklin only if bank were in danger of closing and provided only source of banking services in community; notes NYC is, in fact, intensively competitive banking mkt; Wille, in reply to question from House Banking chmn Wright Patman, says FDIC has not determined if any Franklin officers, dirs, employes or substantial shareholders have been cleared of any wrongdoing; Italian financier Michele Sindona's role at bank recalled; Wille says he cannot determine true value of Fed Reserve loans to Franklin over last few months, but amt has been estimated at $1.4-billion; NY Clearing House Assn repts Franklin deposits in week ended Oct 2 averaged $1.37-billion, down $35-million from preceding week; Wille illus (L)

Mil deserter Gary Delia Bitta describes feeling of returning home to Gilroy, Calif, after living in Canada for 6 yrs, to participate in Pres Ford's amnesty program; revs incidents that prompted him to desert, including failure to secure conscientious objector status; former hs friends Mike Kennedy and Scott Eustis comment; Randy Barbaglia discusses period when he considered deserting mil while fighting in Vietnam; Gary and father Cody illus (L)