July 22, 1975

Record rains and heaviest floods in 20 yrs inundate secs of Trenton, NJ, on July 21, and sever Amtrak and Penn Central rail service along NE corridor, country's busiest train route; more than 100 commuter and long-distance trains canceled and upward of 30,000 local and intercity riders forced to make alternate travel plans; rr officials expect disruption to last for several days; illus of floodwaters in Penn Central RR station (S)

Munic Assistance Corp bonds plummet 10% in price on 1st day of trading, indicating that corp may have to pay even higher interest rates for future issues; city and state officials continue to press munic labor unions to accept drastic cuts in personnel costs, including wage freeze, to improve city's financial position and bolster investor confidence; corp's tax-exempt securities, with original interest yields at 9.5% on longest term bonds, trade at yields exceeding 11%; corp bd meets for 1st time, at Beame's request, with munic union chiefs--State, County and Munic Employes Dist Council 37 exec dir Victor H Gotbaum, PBA pres Ken McFeeley, outgoing Uniformed Firefighters Assn pres Richard J Vizzini, UFT pres Albert Shanker and others; it is reptd that Gov Carey will meet with corp chmn Thomas D Flynn and bd members William M Ellinghaus and Felix G Rohatyn; sources in Controller Harrison J Goldin's office rept that city's cash position could worsen by Mid-Aug with cash deficit rising to $200-million by Aug 15 and $792-million note-redemption due on Aug 22; illus of Rohatyn, Vizzini, McFeeley, Shanker and of Herbert Elish, Flynn and Gotbaum (L)

T Norman Hurd, chief of staff to former NYS Govs Rockefeller and Wilson, says he assisted in plan to transfer retarded children from Willowbrook State School to Danube Nursing Home, built by Bernard Bergman after he had been told that home was unsuitable as health care facility, testimony before Moreland Act Comm hearing on allegations of pol influence in nursing home indus; Danube was renamed Victory and finally Island View; C Daniel Chill, then counsel to Assembly minority leader Stanley Steingut, testifies that he represented Bergman in connection with Danube and says Sen John J Marchi also represented Bergman; Bergman Hurd meetings were also attended by Bergman's son-in-law, lawyer Amram Kass, and Samuel Hausman, Rockefeller fund raiser; Hurd concedes he 'prevailed' on Dr Andrew Fleck, former 1st deputy health comr, to reverse unfavorable decision relating to Danube; community orgns obtained reversal of decision; Dr Douglas Dornan, former Willowbrook staff member, testifies that Bergman reprs complained to Ida Gelber, sr program anaylst for Mental Hygiene Dept, that state officials were being Obstructionist'; testifies that Rabbi Schulem Rubin, proposed exec dir for Victory, advocated transfer of Willowbrook residents; Theodore Lucas, former dir of NYC Mental Health and Mental Retardation Services, testifies that when he learned of 'secret agreement' approving Island View for patients transferred from Willowbrook he protested to Gelber; Met NY Nursing Home Assn pres Dr Morris Goldsmith testifies that assn raised $50,000 to finance public relations campaign to defend indus; illus of Chill, Hurd and comm chmn Morris B Abram (M)

White House announces on July 21 that Pres Ford will visit Poland in connection with Eur trip (S)

Pres Ford vetoes bill to roll back some oil prices and extend price controls from Aug 31 to Dec 31; Fed Energy Admr Frank Zarb says meetings between Cong and Adm officials are seeking package that would extend price controls beyond Aug 31, permit $5.25 ceiling to rise gradually and impose windfall profits tax on oil producers; meetings were proposed by Repr Timothy E Wirth; Council of Econ Advisers Chmn Alan Greenspan say that Ford prefers gradual control but says even overnight decontrol on Sept 1 would cause fuel prices to rise gradually and could be accommodated without severe econ consequences and would thus be preferable to present $5.25 ceiling; speculation on new Ford Adm decontrol plan noted; Sen Edmund Muskie asserts Adm erred in estimating that 30-mo decontrol of oil prices would not cause increase in unemployment; says Adm compared impact of 30-mo decontrol with impact of 60-mo decontrol, instead with impact of continuation of present system; illus of Sen Paul Fannin and Repr John J Rhodes (M)

Agr Dept says USSR plans to buy 177-million bu of corn and 51-million bu of barley from Continental Grain in 2d move in past 2 wks to purchase US grain; USSR bought 177-million bu of wheat recently; grain traders reptdly expect latest Soviet purchase to encourage other countries to add to their supplies; co reptdly will ship corn and barley after fall harvest; US supplies of both grains reptdly are too low at present time to permit immediate shipment; barley sale is expected to raise costs for brewers, thus possibly increasing price of beer (M)

panel of educ and business experts recommend greater teacher productivity, reduction in free transportation for pupils, closing classrooms in schools with unused space, paying bill for school supplies promptly and other measures as way of saving NYC school system some $100-million annually; proposals detailed; UFT pres Albert Shanker's reaction to proposal to increase teacher workloads and change working conditions noted; School Chancellor Irving Anker notes school system has initiated number of econ measures but declines to comment on matters that may come up during forthcoming contract negotiations with teacher union; some former school officials, in NY Times interview, blame enactment of school decentralization in '70 for causing unnecessary and costly duplication of services (L)

Onassis family relative repts Christina Onassis, heiress to family shipping empire, will wed Alexandras Andreadis in Athens, July 22, quashing rumors of engagement to Peter Goulandris, member of another shipping family; Andreadis is son of businessman Stratis Andreadis, whose holdings include shipyd near Athens and fleet of tankers and freighters; Alexandras is active in family shipyd; biogs; pors (M)

Indian Govt on July 21 adopts tougher position on news dispatches filed by foreign correspondents; draws up strict set of censorship guidelines and instructs reporters, on pain of expulsion, to sign pledges to abide by guidelines; number of reporters find new order unacceptable and are expelled from country; reporters are Loren Jenkins (Newsweek), Peter Hazelhurst (London Times) and Peter Gill (London Daily Telegraph); number of correspondents including those of NY Times, have been filing uncensored repts abroad, either by phone or through regular Telex channels; Lewis M Simons, resident correspondent of Washington Post, was expelled in June, after state of emergency was declared; another Post correspondent David Greenway, recently arrived in New Delhi with temporary visa, was told that he could stay in country to clear up adm business but could file no news dispatches; 2 dozen foreign correspondents visit Information Min V C Shukla in attempt to discuss censorship problem (M)

Fed grand jury, New Orleans, indicts Bunge Corp and 13 present and former execs and employes on charges of conspiracy to steal grain by short-weighting shipments and conspiracy to cover up thefts; alleged 12-yr scheme, which reptdly ended in June '73, detailed; indictments have raised current investigation into alleged corruption in handling, weighing and grading of grain for export to highest level thus far; co's Kan City regional hq vp Walton F Mulloy, former St Louis regional hq vp Clayton E Wilcox, Daniel G Delaney, Willie Elbert Horn, Georg J Deharde, Harvey Ray Hickman, James Fred Kesinger, Harry Otto Dolsen Sr, Drebing A Negrotto Jr, Edwin L Wolf, Andrew J Voelkel, Alvin J Morales Jr and John H Gogonor Sr named in indictments; other cos under investigation by US Atty's office, New Orleans, noted; investigation, expected to end Aug 15, is being coordinated by US Atty Gerald J Gallinghouse, Asst Atty Cornelius R Heusel, FBI, Agr Dept and IRS; US Slate Dist Judge Frederick Heebe sets bail freeing those indicted on $10,000 bond each (L)

Dr Amedo Marrazzi, then-chief of clinical research at Edgewood Arsenal, Md, says US Army tested LSD for potential as combat weapon during early '50s, rept in Baltimore Sun (S)

opposition members condemn Indian Govt's sweeping state of emergency as Parliament reconvenes in special session to vote on it; Mathew Kurian says democracy has been smothered by Cong party and Prime Min Gandhi; Agr Min Jagjivan Ram introduces motion approving state of emergency; illus of Gandhi arriving for session of Parliament (M)