Reno Gazette-Journal from Reno, Nevada on January 23, 1986 · Page 28
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Reno Gazette-Journal from Reno, Nevada · Page 28

Reno, Nevada
Issue Date:
Thursday, January 23, 1986
Page 28
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Today's tip s The marketing committee for the Reno-Sparks Convention & Visitors Authority meets at 8:30 a.m. to review plans for the first half of this year at the Reno-Sparks Convention Center. 8B Thursday, January 23, 1986 Reno Gazette-Journal Dropping oil prices cause Dow to slip NEW YORK - The stock market suffered a broad decline Wednesday as traders again dwelled on the potentially harmful consequences of weak oil prices. The Dow Jones average of 30 industrials drifted at moderately lower levels much of the session until the final hour, when the sell-off accelerated. At the end of the session, the blue-chip barometer stood at 1,502.29, down 12.16 from Tuesday's closing level. Losers outnumbered gainers by about 2-to-l on the New York Stock Exchange where volume expanded to 131.18 million shares from 128.31 million shares Tuesday. The NYSE composite index of all its listed common stocks fell 1.20 to 117.75. The blue-chip sector was dragged down for a second straight day by sober thoughts about what lower oil prices might mean for oil companies and banks that have energy-related loans on their books. But other stocks faltered, too. Vegas lures broadcasters LAS VEGAS Despite vows they would never return to Lac Vegas, the National Association of Br ; dcasters will be coming back to the city for their 1988 and 1989 conventions. And the group is considering booking the city through 1991, according to Bob Schmuck, director of sales for the Las Vegas Convention and Visitors Authority. Schmuck said Tuesday he convinced the group to return to Las Vegas after they left the city because of a series of problems. The convention was in town when rooms were scarce following the MGM Grand Hotel fire, and many ended up making their own beds when they were in Las Vegas during the costly Culinary Union strike in 1984. Last year some of the delegates were bumped out of their rooms by a major prize fight. Landmark hearing put off LAS VEGAS - A federal bankruptcy judge has postponed until Feb. 14 a hearing on a motion by Nevada National Bank to convert the Landmark Hotel bankruptcy case to a liquidation proceeding. Bank officials contend a reorganization plan submitted by the hotel cannot succeed and have asked that assets of the resort be liquidated to pay creditors. Hearings are scheduled Thursday and Friday before U.S. Bankruptcy Judge Clive Jones to consider the hotel's request to reject its union contracts. Hotel officials say the move would save money and help repay creditors. Bank wants Dunes trustee LAS VEGAS A Feb. 5 hearing has been set in U.S. Bankruptcy Court on the renewed call by Valley Bank of Nevada to have a bankruptcy trustee appointed at the Dunes Hotel on the Las Vegas "Strip." The bank previously asked that a trustee be appointed to protect the assets of the gambling property from owners Jack Anderson and Morris Shenker. Bank attorneys, however, agreed that then-Dunes President Richard Bunker would serve the same purpose if he was given the authority to negotiate with potential buyers of the financially troubled resort. Disney offers Eastern help LAKE BUENA VISTA, Fla. -Disney World offered Eastern Airlines temporary employees if it encountered problems getting tourists to the vacation resort because of labor problems, a Disney spokesman said Wednesday. But the offer was declined by the financially troubled airline, which is facing a strike threat because of cost-cutting moves demanded by creditors who have loaned Eastern $2.5 billion. Disney spokesman Charles Ridgway said the offer "was certainly not an attempt at strike-breaking." Disney World has a marketing arrangement with Eastern. Marriott out of S. Africa NEW YORK The Marriott Corp. plans to get rid of its airline catering operation in South Africa for "business and economic" reasons related to the unsettled political situation there, a spokesman said Wednesday. The Washington-based food service and lodging giant disclosed its plans in a letter to the president of the State University of New York at Binghamton, where the administration planned a referendum to decide whether to renew a Marriott food service contract in light of the South African operation. R.A. Rankin Jr., a vice president of corporate relations for Marriott, said the company had notified SUNY-Binghamton President Clifford D. Clark that it would divest its two Johannesburg flight kitchens within about a year. Wire service reports I M Japanese firm inks deal The president of a Japanese slot machine manufacturing company has signed an agreement to purchase the Horseshoe Club in downtown Reno, pending state gaming approval. Katsuki Manabe, 46, of Tokyo, is president of both Sigma Inc. of Japan, a slot machine manufacturing company, and Sigma Game Inc., a U.S. corporation distributing Sigma products, based in Las Vegas. Manabe is buying the casino from Stuart and Morrey Mason, longtime gaming operators who also own the closed Shy Clown Casino in Sparks. low growing for U Courtesy Porsche Cars of North America Inc. HIGH-TECH ON HIGHWAYS: Porsche plans to sell its 959 which can go from a stop to 60 mph in less than five see-in the United States by 1988. The high-tech sports car, onds, will sell for up to $180,000. Porsche shows off $1 80,000 sports car By Mike NorrisGazette-Journal John A. Cook, president of Porsche Cars of North America Inc., took his road show to New York City Wednesday but it never moved. The head of the Reno-based company was featured on NBC's "Today" program in conjunction with the New York Auto Show. Host Bryant Gumbel questioned Cook about the 959, a new, $180,000 high-tech sports car Porsche officials say will go from zero to 60 mph in less than five seconds. But a display of this magnificent power was not to be seen or even heard. It is illegal to start the 959's muscular engine in the United States because the car has yet to meet federal safety and emissions standards. Porsche officials agreed, however, Passenger traffic through Reno airport inches upward More passengers filed through Reno Cannon International Airport's gates in 1985 than in 1984, but the negligible increase left airport officials disappointed. Departures and arrivals in 1985 totaled 2,834,673 compared with 2,828,742 the previous year, a difference of two-tenths , of one percent, according to figures released Wednesday by the Washoe County Airport Authority. "We've been hovering around the 2.8 million mark for three years now," said Rich Peacock, authority spokesman. Scheduled arrivals and departures actually decreased 3.98 percent but non-scheduled flights and charter service pas All's quiet as LAS VEGAS (AP) - State gaming agents moved into the deserted casino at the Aladdin Hotel early Wednesday, taping slot machines and shutting down gaming tables. The casino was closed as Japanese businessman Ginja Yasuda formally took control of the troubled Strip resort. Ninety-five casino workers were left without jobs by the closure. The casino will remain closed until Yasuda obtains a gaming license, a process that could take six months. Meanwhile, the hotel and a coffee shop will be open for business. Only two blackjack tables were open Tuesday. About a dozen players were in the slot machine area of the large casino as gaming regulators and the resort's new owners prepared for the closure. The Horseshoe's 250 to 300 employees will remain at work until gaming officials decide whether to approve the purchase, according to R&R Advertising, which is handling Manabe's public relations. Sigma Inc. is the first foreign gaming equipment manufacturer to be licensed by Nevada gaming authorities. If Manabe is licensed, he would not be the only gaming equipment executive operating a Nevada casino. Si Redd, chairman of International Game Technology, owns the Western Village in Sparks. Bally Manufacturing Corp., the world's largest slot machine manufacturer, ' . ' v;;"rsr: vr-.1 doing zero to 60 in less than five seconds isn't likely to happen too often on the jammed streets of New York, where Cook and Gumbel were shown by the Rockefeller Center ice skating rink admiring the car's plush interior . But for drivers who prefer somewhat more open roads, there was footage showing the 959 racing across the African desert. Actually, the car isn't even for sale in the United States yet. Company officials said this model had to be rushed in from Weissach, Germany, where Porsche has its research and development center. NBC only apprised Porsche of its interest within the past week, they said. The car arrived Tuesday, was pushed out for display Wednesday, and will silently head back for Europe shortly. There, Porsche officials noted, the sengers increased by 41 percent, accounting for the slight overall gain. Unusually heavy December fog caused disruption of a number of flights, accounting for a 15.8 percent drop in the passenger count compared to the same month a year ago. "Fairer weather would have given us a bit more growth," Peacock said. "But you can't blame the fog for the entire year." "Perhaps we as a community have not been aggressive enough in marketing air service to the public," Peacock said. "If we're to expand our tourist base we need to be more aggressive in promoting air service into our community." Aladdin's casino goes dark But many employees, including one dealer who was terminated at the end of the shift, were optimistic about the sale to Yasuda, who has promised to refurbish the resort. "It has been going steadily downhill ever since I got here," said Donna Femino, a dealer for the past 18 months. She said she was "glad it was sold to him (Yasuda)." The resort had been operating at minimal levels the past two years under owner Ed Torres. Yasuda bought the property for $54 million in a federal bankruptcy sale in December. He has promised to spend $20 million to renovate the property, which includes a hotel highrise, performing arts theater, casino and public areas. Richard Bunker, the former Gaming Control Board chairman hired by Yasuda to buy Horseshoe Club meanwhile, plans to purchase the MGM Grand Hotels in Reno and Las Vegas. Its gaming application is also under review. Sigma employs about 800 people in Japan. It also operates nearly 40 "casino-style" arcades throughout Tokyo. Sigma Game Inc., operating in Las Vegas and Sparks, employs approximately 50 people statewide. The company was licensed in Nevada in 1984. In announcing the purchase, Horseshoe officials indicated no plans for any changes in operation. The 14,000-square-foot casino is located between Jim Kelly's engine can be turned on. For those whose fingers are itching to get the keys to this car, the American version is expected to be available by late 1987 or early 1988, said John Baker, Porsche public relations director. The company has 325 U.S. dealerships. At that time, they should also have their wallets open. It will cost between $150,000 and $180,000 to drive a new 959, which Porsche officials call a "technology carrier," out of the showroom. The 959 uses some devices not likely to be found in that beat-up station wagon you've been driving around the past 15 years. You might see them, however, at the Indy 500. These race-car devices include two turbo chargers mounted sequentially and a cylinder head with four valves See PORSCHE, page 5B departures . , December change 1985 Dec. 1984 AirCal 14,828 -32 j American 6,203 -10.5 Continental ' 3,676 Eastern 5,256 3.2 Republic 1,623 ' -24 PSA 14,455 54 Sunworld 4,843 91 United 14,571 -34 Western 7,433 -36 Frontier " 3,996 -30 Not operating in Reno last year Paul CarboGazette-Journal to run the Aladdin, said the Ginji Corp. has rehired many of the 360 remaining employees, who were told to reapply for their jobs. Bunker said many construction workers also would be hired to help refurbish the resort, which he predicted "will once again be one of the premier hotels on the Strip." Torres and entertainer Wayne Newton purchased the resort in 1980. Newton sold his interest 20 months later because of a dispute with Torres over business concepts. Torres sought protection for the Aladdin under Chapter 11 of the federal bankruptcy code in February of 1984. The move came after he purchased the old Sil-verbird Hotel and reopened it as the El Rancho. Nugget and the Player's Casino, which is up for sale. The Horseshoe merged with the Silver Spur in December, 1981. The Masons bought the Horseshoe out of bankruptcy in February 1981 and reopened it in April of that year. It had been closed for a full year before and was owned by Dr. Tom Mullis and several others. The Horseshoe was founded in October 1956 by a group of Reno and Las Vegas gaming figures headed by Bradford Hewins, who remained as its president and general manager until 1972. coooinmy Experts lay blame on $150 billion trade imbalance WASHINGTON The economy's performance last year was the weakest since the last recession, and inflation began rising slightly at year-end, the government reported Wednesday. The Commerce Department said the gross national product the nation's output of goods and services grew at a 2.3 percent rate from the fourth quarter of 1984 to the fourth quarter of 1985, far below the- 4 percent rate forecast by the Reagan administration. It was the worst showing since the recession year of 1982, when the economy declined 2.1 percent. The nation's large trade deficit, expected to approach $150 billion when all the figures are in for 1985, has been blamed for slowing the economy and costing hundreds of thousands of jobs in industries hurt by imports. Nevertheless, the civilian unemployment rate still dropped last year from 7.4 to 6.9 percent, the lowest level since April 1980. The slow pace of the expansion, which surprised many economists, followed a strong performance in 1984, when GNP grew at a 6.6 percent rate while inflation remained moderate. Meanwhile, the Labor Department reported that consumer prices rose 3.8 percent last year, an improvement from the 4.0 percent rate in 1984 and the same level as in 1983. However, economists cautioned that inflation began to pick up in the last three months of 1985, in part because of higher food costs and increases in import prices. The Reagan administration has forecast that the economy will grow at a 4 percent rate in 1986 and that inflation will not accelerate. If inflation worsens and growth is weaker than expected, the federal budget deficit will increase, requiring deeper cuts under the Gramm-Rud-man-Hollings deficit reduction law. While many economists say that inflation in 1986 will rise only slightly above levels last year, they expect GNP to grow 3 percent at best. White House spokesman Larry Speakes said that in addition to strong economic growth this year, the administration sees "no reason to expect a reignition of the flames of inflation, particularly in light of falling crude-oil prices." Speakes also noted that the Commerce Department reported the GNP grew 2.4 percent in the fourth quarter down from an initial estimate of a 3.2 percent rise making it the 13th consecutive quarter of economic growth. The economy is now in the fourth year of the recovery and many economists foresee growth continuing for at least another year. A major influence on the economy's weak performance last year and the increase in prices in late 1985 was imports, analysts agreed. The record level of imports has diverted spending from domestic to foreign goods, and the trade deficit was a major cause of the downward revision in fourth-quarter GNP, the Commerce Department said. U.S. trade ledger with Japan nears $50 billion in red HONOLULU, Hawaii - The U.S.-Japan trade imbalance may reach $50 billion for 1985 with Japanese products marketed in the United States outselling U.S. products in Japan by that figure, says Ambassador to Japan Mike Mansfield. There was a $37 billion imbalance in 1984. Mansfield said U.S. trade with the Pacific Basin already exceeds its trade with Western Europe and promises to keep growing. "I do not think that we ought to point the finger at Japan alone," he said. "It's not a bilateral problem, it's a global problem, and it should be considered on a global basis." Worldwide, the United States in 1984 imported goods valued at $123.3 billion more than it exported, he said, including a $20.1 billion trade deficit with Canada, $17 billion with Latin America and $18 billion with Western Europe. Japan's 1984 worldwide trade surplus totaled $44 billion, Mansfield said. Mansfield laid out a deficit-reduction guide for the United States. "We've got to do something about our highly overvalued dollar, and we are, finally. We have to do something about interest rates, and they are coming down, except for the bank prime, which is still at 9.5 percent." Gannett News Service I

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