Arizona Republic from Phoenix, Arizona • Page 23

The Arizona Republic t. SECTION IMNESS 0BITUARIESC7 THURSDAY SEPTEMBER 6, 1990 Cews Briefs Energy aide: No gas price-goegio; But House panel members disagree with assessment Dow gains 14.85 The stock market pushed ahead gradually Wednesday after a hesitant start. The Dow Jones average of 30 industrials rose 14.85, to 2,628.22. Further details appear in chart at bottom of page. Complete story on Page C3.

Imported Asian sweaters face duties Sweaters from Hong Kong, South Korea and Taiwan that are being sold in the United States at less than fair market value harm U.S. industry and are subject to anti-dumping duties, the International Trade Commission ruled Wednesday. The ruling allows the Customs Service to begin charging the sweater manufacturers anti-dumping duties that are designed to make the price of the imports comparable with those charged for domestic sweaters. appear to be justified," said Rep. Mike Synar, D-Okla.

William O'Keefe, chief operating officer of the American Petroleum Institute, told the committee there is nothing unusual about gasoline prices responding immediately to world events. "In a competitive market," he said, "selling prices must reflect today's supply-demand conditions, including perceptions of what the future holds." Committee Chairman John Conyers, criticized President Bush for not dipping into the Strategic Petroleum Reserve to replace oil lost from Iraq and Kuwait and to hold down gasoline prices. This view was challenged by Rep. Frank Horton, who argued that drawing down the 590 million barrels in the reserve would be "very irresponsible and shortsighted." "Let's not use our reserve until it's absolutely necessary," Horton said. invasion of Kuwait and will report this fall.

But he said the increase in average gasoline prices to about $1.25 a gallon does not appear to be out of line with the rising price of oil, now approaching $30 a barrel. "As long as uncertainty (about supply) exists, so will price volatility," he said. Easton said he would be opposed to a federal price-gouging law, partly because rising prices discourage consumption during emergencies. His comments got' a cool reception from committee members, many of whom complained that gasoline prices began climbing almost immediately after the invasion. "There's no question that people are taking advantage of this crisis," said Rep.

Christopher Shays, R-Conn. Several oil-state congressmen agreed with Shays. "Some reported pump prices do not Easton said the Energy Department remains ready to tap the reserves to "redress any severe oil-supply disruption." However, there is no shortage at this time, he said. He said the government temporarily has halted further oil purchases for the stockpile, saying that the action frees up 40,000 to 50,000 barrels per day to meet -other worldwide demands. Easton maintained that lack of refinery capacity not lack of oil is the No.

1 energy problem. He warned that fuel shortages could develop by the heating-oil season in December. Refineries are running close to capacity, he said, which means that an accident or a shutdown for maintenance could have a "severe impact" on the fuel supply. Compiled from reports by Scrlpps Howard and Knight-Ridder. Republic Wire Services WASHINGTON The Bush administration said Wednesday it has no proof yet of widespread price-gouging at the gasoline pump and suggested that higher prices are useful if they promote fuel conservation, Much of the information about price-gouging is "anecdotal," said John Easton, assistant secretary for international affairs and energy emergencies, at the U.S.

Department of Energy. He told the House Committee on Government Operations his department is investigating the rise in gasoline prices that has occurred since the Aug. 2 Iraqi Auto, truck sales plunge auiumuun SALES Late-August car and truck sales tumbled 21 percent, the nation's automakers reported Wednesday. The 10 major car and truck makers in the United States said they sold vehicles at an average daily rate of 38,943, compared with 49,276 during the same period last year, when incentives lured buyers to showrooms. Car sales during the Aug.

21-31 period dropped cVvTir' n-b Wj' iin tarn I v. I Paul Johnson The mayor wants to investigate whether the city can do business with the RTC. 18.8 percent, and truck sales were off 24.9 percent. The automakers attributed the decline to a weak economy. Jobs index off from year ago An index measuring changes in help-wanted advertising in major U.S.

newspapers stayed the same in July, but was 17 points lower than a year earlier, the Conference Board said Wednesday. The business-research group said its Help-Wanted Index registered 132 in July, unchanged from June's reading and down from 149 in July of 1989. The group uses 100 as its base, with the higher numbers reflecting more job opportunities. Philippine military buys Mesa aircraft The Philippine Air Force has added the Mesa-built McDonnell Douglas MD 500 Series Defender to its combat-helicopter fleet. McDonnell Douglas said the air force has taken delivery of four Defenders and will receive an additional 18 by the end of the year.

Total cost of the aircraft, which are built by McDonnell Douglas Helicopter Co. in Mesa, was not released. Phoenix to review RTC's impact Oil prices jump Oil prices rose to nearly $30 a barrel Wednesday as traders began buying in response to Iraqi President Saddam Hussein's televised call for an Arab holy war against the West, Light sweet crude for October delivery rose 65 cents, to close at $29.77 a barrel on the New York Mercantile Exchange. The price rose as high as $29.89 before falling back. "I think people kind of got nervous and started OIL PRICE A $29,77 mm- It, Tom StoryThe Arizona Republic The Mideast crisis has put a damper on plans for Kuwait to buy outright the Phoenician Resort, of which it now owns 45 percent.

Kuwait turmoil puts deal for Valley hotels on hold ,5 Gerald Murphy "They made a substantial cut in the deal that they had shaken hands on." By Barbara Deters The Arizona Republic Phoenix Mayor Paul Johnson has named a seven-member committee of area economic and real-estate leaders to review how the federal Resolution Trust actions could affect the city. The ad hoc committee is essential because of the RTC's large stake in the Phoenix economy, Johnson said. The RTC, the agency formed to dispose of the assets of the nation's failed thrifts, is one df the largest financial institutions and property owners, if not the largest, in the city and state, the mayor said. As such, "the nature and magnitude of (its) job will have an impact on property values, economic activity, other financial institutions and the investment decisions of private parties," Johnson said. The formation of the committee was approved Tuesday by the City Council, and the mayor appointed: Real-estate investor and consultant Elliott D.

Pollack, chairman of The PollackRamras Cos. David Bixler, executive director of Valley Partnership, which represents the real-estate-development industry in Maricopa County. Tommy Espinoza, president of Espinoza Development Corp. and executive director of the Phoenix Community Alliance, a downtown-re-vitalization group. John Lucking, vice president of economic planning at Valley National Bank.

Realtor Tina Robbins, past president of the Phoenix Board of Realtors. See PANEL, pageC6 bidding the market back up," said Brian Tagler, a broker with Shearson Lehman Bros. Inc. Amex, Reuters in securities sales deal The American Stock Exchange on Wednesday announced plans to develop an electronic system with Reuters Holdings. PLC for trading securities in the $170 billion private-placement market.

Amex said the new electronic marketplace for trading the securities is expected to be implemented in the first half of 1991 and will be called the System for Institutional Trading of Unregistered Securities. Financial markets The dollar sank against all major foreign currencies Wednesday, ending in New York at 141.65. Japanese yen, down from 143.40 on Tuesday, and 1.5580 German marks, down from 1.5811. On the Commodity Exchange in New York, a troy ounce of gold for September delivery' added $2.40, to settle at $386.10, while a troy ounce of silver rose to $4,735 from $4,719. The federal funds market rate, the interest rate on overnight interbank loans, ended Wednesday at 9.5 percent, up from Tuesday's 8.125 percent.

At a glance Boise Cascade Corp. said it will sell its Vancouver, paper mill in the first major step toward dramatically reducing its Pacific Northwest pulp and paper operations. Appleton Papers Inc. will pay about $72 million for the mill and its inventories. The Canadian Auto Workers union said it will focus its national contract bargaining on Ford of Canada Canadian subsidiary of the U.S.

automaker. Bank of New England Corp. agreed to sell most of its Rhode Island subsidiary, Bank of New England-Old Colony, to Citizens Financial Group of Rhode Island for $75 million. Proposal to pay back resort builders rejected By Lisa Morrell The Arizona Republic The companies that built the Phoenician Resort thought they were home free. They thought they were finally going to get some of the $18.5 million they say they have been owed since October 1988, when Charles Keating Jr.

opened the $260 million resort. Two weeks ago, they learned they were wrong. The federal Resolution Trust which has been in charge of the resort since it was seized from fallen mogul Keating, turned down a settlement plan the builders had reached with the two top executives at the Phoenician. The RTC has "declared war as far as we're concerned," said W.R. "Bud" Lundahl, president of Meyer and Lundahl Manufacturing Co.

of Phoenix, which did woodwork, and cabinetry for the Phoenician. Lundahl and other contractors are outraged at the RTC for pulling the rug out from under its See PROPOSAL, pageC5 Frozen assets stall plan for Phoenician, Crescent By Betty Beard The Arizona Republic The Phoenician Resort in Scottsdale is worlds away from the turmoil in the Persian Gulf literally and figuratively. But the invasion of Kuwait last month by Iraq has had an impact on the luxury hotel. Efforts had been under way for months to sell the resort to a branch of the Kuwait government. Those efforts are now in limbo.

The Kuwaitis already own 45 percent of the Phoenician and a hotel in Phoenix, the Crescent. The remaining 55 percent is owned by the Resolution Trust the federal agency that is bailing out depositors of failed savings and loan associations and disposing of their assets. However, the gulf crisis bombed attempts by the RTC to sell its share of the Phoenician and the Crescent to the Kuwaitis. The RTC got its 55 percent interest in the hotels in See TURMOIL, page C5 J2Z Hans Turnovszky Was authorized by the RTC to reach an accord with the builders. ASU offers data to Tokyo in Japanese Compiled from reports by The Arizona Republic, The Associated Press and Knight-Ridder.

fi i 1 THE MARKETS Trading activity for Wednesday. Dow Jones Industrial average TH W. I High i Close I Low 2,626.22 14.85 NAAMAN NICKELL The Arizona Republic 2.800 2,750 2.700 2,650 2,600 2,550 2,500 2,450 NYSE Composite volume 144,643,050 Issues traded 1,975 Advanced 953 Declined 571 Unchanged 451 New highs 13 New lows 69 si's dio and Television Association expects to complete the move of its headquarters from Chicago to Scottsdale Airpark Corporate Center by Nov. 1. The co-op purchases major appliances from manufacturers at discounted prices for its members.

Its Phoenix-area member is Berry Appliances. Daum Commercial Real Estate negotiated a lease for 5,440 square feet for the organization. "The Scottsdale location provides us with the proper site from which to expand our services to the southwest U.S. market," said Joe Verde, executive director of MARTA. Initial employment is expected to be 15 to 20 people, and most will be hired locally, said Rod Robertson, director of economic development for the Scottsdale Chamber of Commerce.

Japanese. The idea for the publication came from Mathew J. Betz, ASU's vice president for planning, at a workshop for Japanese executives. After hearing a Japanese banker emphasize that "Japanese bankers make decisions by the numbers," Betz realized that ASU has lots of numbers that might help those decision makers. A Japanese agency in Tokyo is helping distribute 3,000 copies of the publication, said MacKinnon, who also is a member of the International Committee of the Greater Phoenix Economic Council.

"We think it might help economic development in the Valley," Betz said. Mardian reports gains The strong economies of California and Nevada have contributed to a record financial performance by Phoenix-based Mardian Construc Japanese investors interested in Arizona now can read about the state's economy in their language. Arizona State University's Center for Asian Studies has begun publishing a quarterly report titled Arizona Shogyo (Arizona Commerce) that presents facts and figures on the state's economy. "The idea is to put the bald, hard facts of the Arizona economy into their language," said Stephen MacKinnon, director of the Asian-studies center. "Investors from Asia are conservative," he said, "They collect data.

Our bad news can look like good news to them." The information in the publication is taken from Arizona Business, an economic monthly compiled by ASU's Center for Business Research. Members of MacKinnon's staff translate the information into tion Co. "We have had the best two years in company history," President Dick Rizzo said. "Last year was our best 1 ever in terms of revenues and profits. California and Nevada have been particularly strong." Rizzo said the company has been doing a tremendous amount of casino construction.

Mardian also is in the process of moving into a new Phoenix headquarters, 360 E. Coronado Road. Mardian offices have been just around the corner, 1807 N. Central for the past five years in a building owned by Perini Mardian's parent company. "We have been leasing space from them, but eventually, the building is going to be torn down," Rizzo said.

"And we felt we should get established in our own building." Appliance firm moving in The Metropolitan Appliance, Ra 31 3 4 6 28 30 August September Amex NYSE Comp. 1.30 to 324.39 0.80 to 177.93 The Arizona Republic.