Reno Gazette-Journal from Reno, Nevada • Page 28

usmess 8B Friday, March 22, 1985 Reno Gazetto-Journal First-quarter growth slows, inflation grows WASHINGTON (AP) Economic growth slowed to a surprisingly weak 2.1 percent during the first three months of the year, while one measure of inflation spurted to its highest level in almost three years, the government reported Thursday. The Reagan administration and many private economists called both statistics misleading, contending that the economic expansion is more robust and inflation far less of a menace than the Commerce Department figures seem to indicate. Other analysts were less optimistic, warning that the unexpected weakness could translate into climbing unem- floyment rates as domestic industries ose further sales to a flood of foreign imports. All sides agreed that the department's estimate of growth in the gross national product the total output of goods and services was much lower than the 4 percent rate that had been widely expected for January through March. The 2.1 percent gain was the weakest performance since a 1.6 percent rise from last Julv through September, a period of slumping growth, which was followed by a 4.3 percent rebound from October through December.

In other bad news, the report said that a measure of inflation tied to the GNP the implicit price deflator rose at an annual rate of 5.4 percent in the first three months of the year, the fastest clip since a 5.6 percent pace in the second quarter of 1982. This inflation measure had risen at a rate of just 2.8 percent in the final quarter last year. At the White House, presidential ness investment and residential construction will show little growth during the quarter, with the only strength coming from a gain in consumer spending. Before taking inflation into account, the GNP was estimated to be growing at a rate of 7.6 percent in the first quarter, hitting an annual figure of $3.83 trillion, up from $3.76 trillion in the fourth quarter. The Commerce Department also reported Thursday that after-tax profits of the nation's corporations rose a slight 0.4 percent in the final three months of 1984, following a 5.7 percent decline from July through September.

The GNP report revised growth down slightly for the fourth quarter to 4.3 percent from an earlier 4.9 percent estimate. The change put GNP growth for all of 1984 at 6.8 percent. spokesman Larry Speakes said that while the growth figure was lower than expected, "we continue to believe that the economy is on a path of steady growth with low inflation." Commerce Secretary Malcolm Bal-drige discounted the jump in the inflation figure, saying it was caused by some one-time factors, such as a government pay raise. Private analysts agreed that the inflation figure was probably overstated, especially given the good showing in recent months in two better-known inflation measurements the Consumer Price Index and the Producer Price Index. The report blamed the weak growth on a surge in imports in the first quarter that robbed domestic manufacturers of sales.

The report also projected that busi- Holiday Inns considering a corporate name change MEMPHIS, Tenn. Holiday Inns which operates more than 1,700 hotels in 52 countries, announced Thursday it wants to change its name to Holiday Corp. Michael D. Rose, Holiday Inns' chief executive officer, said the name change will be proposed to company stockholders at their annual meeting May 3 in Memphis. It will be the second time the company has asked stockholders to approve a name change.

In 1969, the name Holiday Inns of America was changed to the current title of Holiday Inns Inc. The company was founded in 1952 by Kemmons Wilson of Memphis who built his first motel in his home city. The company currently has 314,000 guest rooms, operates the Perkins restaurant chain and is the world's largest gaming company with hotels and casinos in Las Vegas, Reno, Lake Tahoe and Atlantic City, N.J. Reno man wins name contest Jeffry Histia of Reno was named the lucky winner of a new Volkswagen Rabbit for submitting the winning entry in Sierra Volkswagen's search for a new name contest. Nearly 10,000 entries were received.

Sierra Volkwagen-Porsche-Audi-Saab-Peugeot-Isuzu will begin using the new name, Corn-stock Imports Limited at a date yet to be ft "I HI I 1 rT AT FITZGERALDS CASINO AND HOTEL: The left to right are John G. Metzker, Paul H. Manske. management team of Fitzgeralds Casino and Hotel Philip D. Griffith, Terrance W.

Oliver, Max L. Page reviews extensive first-floor remodeling plans. From and Thomas R.C. Wilson. Local tourism board aids Olympics effort By Susan VoylesGazette-Journal The Reno-Sparks Convention Visitors Authority has jumped in with $50,000 worth of support in the effort to bring the 1992 winter Olympic Games to Reno.

The authority's board of directors Thursday agreed to put away a contingency fund of $50,000 that could be used to help prepare a formal presentation to U.S. Olympic Committee on June 14. The board also approved $3,000 for covering part of the expenses already incurred when local officials went to Calgary to initially meet with Olympics officials. Mayor Pete Sferrazza made the plea for funds. He was joined by Michael Trager, a consultant who was ABC-TV's chief negotiator in its unsuccessful bid to secure broadcast rights for the summer Olympics in Moscow in 1980.

He also handled marketing efforts for U.S. Olympic activities for the winter games in Sarajevo, Yugoslavia, in 1984. Trager said he thinks Reno stands a good chance at becoming the U.S. Olympic site contender. A new bobsled run built at Lake Tahoe would provide a third site for starting a bobsledding circuit in North America.

In addition, he said Reno has more than enough hotels and other facilities to accommodate Olympic visitors. The city's chief competitors are Portland, Santa Fe, N.M., Anchorage, Alaska, and Salt Lake City. The event means at least $200 million from broadcasting rights for the games for the sponsoring communities, as well as immeasurable publicity, Trager said. But he said the decision usually boils down to equal doses of politics and the site worthiness. Sarajevo, for instance, had only a few hundred hotel rooms, many of which had no hot water.

The board's decision to stash away $50,000 for possible use for preparing a bid was part of a motion covering advertising and special events spending for the rest of board's fiscal year, which ends June 30. The board wrangled at length over whether it had enough money to spend on the rest of the year's normal Reno-Reno" advertising in California, televising the Senior's PGA golf tournament in June and leaving a contingency for the Olympics. The board finally decided to take $200,000 out of its capital improvements fund for advertising. And in one motion, the board approved $340,000 to continue the Reno-Reno campaign in May and June, awarded $75,000 to help ESPN, the sports cable network, broadcast the golf tournament, scheduled June 5-9, and provide a contingency of $50,000, which could be used for the Olympics. Fitzgeralds partpesa given licenses 1-casino, from new signs outside to a new By Susan VoylesGazette-Journal Dollar slumps, gold tumbles NEW YORK The dollar was knocked sharply lower Thursday as traders were surprised by government estimates of slowing economic growth and rising inflation in the United States.

Gold, which soared earlier in the week, also headed lower in volatile trading. Republic National Bank in New York said gold bullion was bid at $314 a troy ounce as of 1 p.m. PST, down $7 from the late bid Wednesday. The dollar's most dramatic decline was against the British pound, which surged to $1.1900 in London late Thursday, its highest level since Dec. 17, 1984.

Sterling had been quoted at $1.1475 the day before and has recovered from an all-time low of $1.0395 during trading on Feb. 26. Later in New York, sterling was quoted at $1.1825, against $1.1445 late Wednesday. Pinola to head Washington bank SEATTLE Joseph J. Pinola, chairman of the board of First Interstate Bancorp, has been elected to the board of directors of First Interstate Bank of Washington.

Pinola, who joined the First Interstate system in 1976 and was named chairman of the Bancorp board two years later, will replace George Rothefl on the Washington bank's board. Rothell has been named vice chairman of the Bancorp board, with management responsibilities for affiliates in the Rocky Mountain states. Federal regulations prohibit him from remaining a director of the Washington affiliate while serving in this new position. Correction Ron Garrett was sales manager at Reno's KAME-TV before joining Media Consultants. The advertising firm provided information that incorrectly identified Garrett as general manager of KAME-TV.

William Andrews has been general manager of the station since it began in October J981. Wire service and staff reports casino inside, Griffith said Fitzgeralds won't be Gaming licenses for three Fitzgeralds Casino and fiel Vgre ') 'approved Thursday by the Nevada GlVjingAhwrmission and tneir only project. "We are aggressive. We are going to be a force in this community. I promise we are going to be doing more than just the Fitz," Griffith said.

Griffith said the partners plan to use much of what they learned in the corporate gaming world while becoming "hands-owners." Their model is the Club Cal Neva in its early days when Jack Douglass, Warren Nelson and Leon Nightingale made it a point to shake hands with players in the casino, he said. While the partners until Thursday were not allowed to work in the casino portion of the property, changes will come swift. Manske, marketing director, said that the walls of the cabaret, now stripped, will be coming down. The cabaret will be remodeled, making room for more gaming while the cabaret will be in view for all in the casino to see. Others changes planned include new video slot machine arcades and poker machines that will take the place of the row upon row of the old mechanical workhorses.

the new managers say they p56 begin revitalizing the downtown hotel-casino immediately. Phil Griffith, Lincoln Management Inc. president, John Metzker, vice president, and State Sen. Thomas "Spike" Wilson were approved unanimously by the commission for licenses to manage the hotel-casino. They have an option to purchase the property in two years.

Griffith and Metzker, interviewed at the casino after approval, said they anticipate Paul Manske, Max Page and Terry Oliver will join them in becoming partners. Griffith, former president of Harolds Club, Manske, Page and Oliver together have 40 years experience in gaming. They also were chief operators of the Summa Sands Hotel-Casino in Las Vegas. "We all made a very strong personal investment both financially and in our personal careers," Griffith said. While they have plans to jazz up the T-BILLS COMING DUE? HOW EARN A RA HIS 1 J.

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