September 26, 1975

HR Select Intelligence Com Chmn Repr O G Pike says that in his opinion, exec branch is in 'contempt of Cong' and that he will ask HR to take action next wk; Pike is in effect challenging Ford Adm's right to withhold classified information from Cong; says that if HR backs him, he will name an official he wants found in contempt, possibly Pres Ford but more likely somebody like CIA Dir William E Colby; White House spokesman says attempt by Repub members of Pike com to obtain White House approval of compromise had 'fallen by the wayside'; origins of dispute noted; Deputy Under State Sec Lawrence S Eagleburger, Intelligence and Research Bur dir William G Hyland and State Dept legal adviser Monroe Leigh testify; Eagleburger says State Dept will decline to allow Cong interrogation of lower-rank officials on policy questions because of need to preserve 'confidentiality of the decision-making process'; says State Dept witnesses are to decline to discuss classified material but would discuss facts; says they must have legal counsel during testimony; Reprs M F Murphy, R V Dellums, D C Treen and R W Kasten Jr comment (L)

NY Times survey of Fed aid to hard-core jobless finds that assistance under '73 Comprehensive Employment and Training Act it often being used for purposes other than providing training and employment for nation's disadvantaged; original purpose of act described; change toward channeling funds to help cities surmount budget crises, rehire laid-off workers and keep services at politically acceptable level represents major shift in emphasis of manpower policy from aid to poor and disadvantaged in inner cities to aid for more middle-class Amers in suburbs and smaller towns; ints with Fed, state and local officials reveal that funds have been used to pay for patronage jobs and for hiring of friends and relatives; instance where Phila Mayor Frank L Rizzo misused such funds noted; instances in other cities noted; change toward using funds for public service employment rather than for training noted; NYC Mayor Beame reptdly has asked US Labor Dept to permit NYC to use $7-million in training funds to rehire munic workers; negative record of many state employment services, which are mandated by law to help find jobs for jobless, noted; specific examples of changes state officials have made in using training funds described (L)

FCC, 5-2, reverses equal-time rule for pol candidates; ruling could have immediate and important effect on '76 Pres campaign; under new rule, news confs held by Pres can be treated as bona fide news events, exempt from law guaranteeing all candidates same opportunity for broadcast coverage; decisions on newsworthiness of events will now be left to broadcasters (M)

Pa Gov Milton J Shapp announces his candidacy for Dem Pres nomination; calls for 'common sense' govt mgt; is believed to be first Jew to actively seek Pres nomination of major party; says his religion will not be factor in nomination or election; concedes his rating is invisible in Dem Pres polls, but insists that no other contender has shown appeal to Amer public; says he is able to qualify for matching Fed funds only in Pa; expects to compete in NH primary and several others; Shapp por (M)

Govt sources say an undercover Fed firearms agent working with Sara Jane Moore accompanied her on visit to suspected illicit gun dealer day before Moore allegedly attempted to kill Pres Ford; visit came 1 day after police told Fed officials that Moore had apparently threatened Ford's life; sources say Moore was engaged in Treas Dept operation when she introduced agent of dept's Bur of Alcohol Tobacco and Firearms to dealer, Mark Fernwood, in suburb of San Francisco on Sept 21; Moore reptdly visited Fernwood again on Sept 22 by herself and purchased 38-caliber pistol she allegedly used to fire a shot as Ford emerged from St Francis hotel; sources say Moore telephoned San Francisco police inspector on Sept 21 and suggested that she might try to 'test' Pres security system during appearance by Ford at Stanford Univ on Sept 21; she reptdly told inspector she had gun; sources say inspector then reptd to Secret Service, FBI and Alcohol Tobacco and Firearms bur; police confiscated 44-caliber gun and Moore was charged with misdemeanor weapons-possession charge and held in custody until it was no longer possible for her to reach Stanford Univ before Ford had left; Inspector Jack O'Shea says his dept described Moore's actions to Secret Service and asked whether she should be retained in custody; police reptdly were told to release woman because agents planned to int her that night (M)