October 13, 1975

Munic Assistance Corp to go again to major NYC banks in effort to raise $70-million to complete state's plan to finance city for next 3 mos; MAC chmn Felix G Rohatyn hopeful of banks' help; Sen Proxmire says that Fed securities guarantee sought by both city and state 'could work' to stave off city default but says that Cong probably would not enact guarantee without support of Ford Adm, int to TV program Issues and Answers; holds that city has made strong case for aid through economizing; Repr George H Mahon, int on same program, flatly opposes Fed aid; MAC to seek reaffirmation from NYC Teachers Retirement Fund that it will comply with legis mandate to buy $150-million in MAC bonds; UFT pres Albert Shanker sees 'some apprehension' among fund trustees (M)

one in series of articles on new proposals being discussed or implemented to help NYC save money and improve or tighten services as result of fiscal crisis; crisis has spawned host of plans to save city; most authorities feel that new revenue, especially taxes, can offer no solution (L)

Defense Sec James R Schlesingers lr to Sen J L McClellan, in which he opposes reductions in defense budget, seen as establishing framework for unusual battle shaping up in Sen between Sen Appropriations Com and Sen Budget Com over size of defense budget for current fiscal yr; impending battle may also provide pol test between Sen Dems and Pres Ford over where Fed spending should be cut; Ford has said he is opposed to any reduction in defense program (M)

Article on major role played by organized crime in distribution of pornographic periodicals, 2d of 2 articles on underworld involvement in pornographic films and periodicals; largest of such publications is Screw, founded in '68 by Al Goldstein and James Buckley, with circulation of 85,000 and published by Milky Way Productions; total circulation of 12 leading pornographic papers is about 300,000; all papers are distributed by same 2 cos, Star Distributors and Astro News; such papers had difficulty finding distributors when they started and ultimately turned to cos connected with organized crime; police officials and Fed agents who have been investigating organized crime involvement in pornography indus say that publishers of such papers have to give these cos higher share of profits than is customary or outright interest in their papers to obtain distribution; Goldstein comments on series of events that led Screw to seek out aid of organized crime; Goldstein por (L)

chances for solution to Cyprus pol situation diminish as Turkish Premier Suleyman Demirel's Justice party maintains slight edge in midterm parliamentary elections on Oct 12 (S)