Reno Gazette-Journal from Reno, Nevada • Page 16

Today's tip Recently published "Guide to Modern Business and Commercial Law" is available trom Commerce Clearing House News Bureau. 4025 W. Peterson Ave Chicago, III. 60646 Cost is $65. 8B Tuesday, April 21, 1987 Reno Gazette-Journal BUSINESS EDITOR MIKE NORRlS.

788 6336 usuries Trade official: U.S., Japan still friends Sanctions take Japanese by surprise Analysis Stocks a little lower in unusually slow day NEW YORK The stock market declined slightly Monday, giving up an early gain as interest rates resumed their recent rise. Trading set its slowest pace in five weeks. The Dow Jones average of 30 industrials, up more than 12 points in the early going, closed with a 5.39-point loss at 2,270.60. Volume on the New York Stock Exchange came to 139.07 million shares, down from 189.57 million Thursday and the lightest total since a 134.93 million-share day on March 16. Ex-partners under SEC ban WASHINGTON The Securities and Exchange Commission said Monday it has barred from trading a former principal in the Wall Street brokerage firm of Brooks, Weinger, Robbins Leeds and two other people for violating federal securities law.

Suspended were Jan E. Brooks for four years; and William P. Satnick and Marvin Hamburger, for five years each. The SEC said the charges stemmed from activites when the three were partners in the now-defunct firm of Brooks, Hamburger, Satnick Inc. against Japan could be dangerous and the United States is doing a "half-baked job" of promoting its exports.

"I oppose the imposing of sanctions because I believe it is not in the best interests of the nation," said Gerald Marks, 59, a department employee since 1970 and former commercial counselor at the U.S. Embassy in London, "Our approach to Japan is myopic at best and dangerous to the world trading structure at its worst." Yeutter said the new tariffs imposed by the Reagan administration represent "a relatively small blip on the screen of economic relationships between the two countries" and should not be permitted "to cloud the much more important economic and political relationship." He spoke at a privately organized meeting of Japanese and U.S. government and business leaders at Oiso, a seaside city southwest of Tokyo. Earlier Monday, Yeutter told Foreign Minister Tadashi Kuranari that Japan's stimulation of its domestic market has been "insufficient" and declared: "Frankly speaking, we need action rather than debate." The United States wants Japan to stimulate its domestic economy so the market for both foreign and Japanese products will expand. At a meeting with Agriculture Minister Mutsuki Kato, Yeutter and Agriculture Secretary Richard Lyng asked Japan to New tariffs more matter of principle than protectionism By Kumlko MaklharaAP OISO, Japan New U.S.

tariffs on some Japanese products should not affect the overall relationship between the two allies, American trade representative Clayton Yeutter said Monday. He said imposition of YEUTTER the duties last week was not a protectionist act and the U.S. trade deficit will not be eliminated by solving individual issues, but he urged Japan to increase imports and drop quotas on foreign goods "as a matter of principle." In other developments involving U.S.Japan trade: In Washington, the Reagan administration said it is unlikely but not impossible that the trade dispute with Japan will be resolved before Prime Minister Yasuhiro Nakasone visits the White House on April 30. In Chicago, the director of the Commerce Department's local office said, in announcing his resignation, that sanctions Harrah's Reno working on that upscale look By Lisa OvensGuette-Journal A plush new $250,000 sports and race book is part of $5 million worth of work done by Harrah's Reno on renovations and expansions this year. In addition to the upscale sports book, there are a revamped keno area and poker pit, expanded restaurants and refurbished hotel rooms.

The changes at Harrah's come on the heels of flat gaming revenues in northern Nevada during 1985 and most of 1986 and a stepped-up campaign by casinos to lure greater numbers of upscale customers. Harrah's Tahoe also is making $5 million worth of changes. "We're looking at all our operations," said Ron Jeffrey, senior vice president and general manager of Harrah's Reno. "We want to make sure we're giving our guests what they want." The Stateline casino is spending its money on "pretty standard capital ongoing improvements to the property," said spokesman John Packer. Specifically, that will involve upgrading the hotel rooms and kitchen equipment and replacing a number of slot machines and electronic games, he said.

The Reno property, on the other hand, is going as far as changing its casino master plan. Jeffrey calls it value marketing making sure the customer gets the most for his or her money. Among the changes: A new $250,000 race and sports book has been built downstairs in the Headliner Casino. Opened Feb. 1, it is filled to capacity on weekends, Jeffrey said.

"It has already exceeded our expectations," he said. "It signifies the 'Harrah's Touch' concept. It is a touch of class." Those touches include natural white oak counters and tables; abundant use of chrome; etched glass partitions; thick, forest green and mauve carpet; and soft lighting. That's not to mention 23 television monitors that can be seen from any of the 122 seats. The new race and sports Continental and Eastern extend discount fares WASHINGTON Continental and Eastern Airlines raised the cost of deep-discount Maxsaver fares Monday but indefinitely extended the program, which offers consumers greater savings than standard airline fare discounts.

The two airlines, both subsidiaries of Texas Air surprised competitors late in January when they announced the original Maxsaver discounts, but other airlines quickly followed the pattern. The fares originally were to remain in effect until May 20. But Continental and Eastern said Monday that the fares had proven "extremely profitable, and extended them albeit at higher rates and with a slightly tighter advance purchase restriction. Northwest Airlines said it would match the fare extension, and other carriers are studying the move. "We will match it in some form," said Matt Gonring of United Air Lines.

The fares will continue to require a round-trip ticket and a Saturday night stayover. Washington Post IN THE CABARET GREEN KENO: Work on $5 million worth of renovations at Harrah's Reno goes on behind Ron Jeffrey, senior vice president and general manager for the casino-hotel. Steven K. PaulsonAP TOKYO President Reagan's sanctions against Japanese electronic exports are being compared to the "coming of the black ships" more than a century ago, when the American gunships of Commodore Perry forced Japan to open its ports to the outside worW. Despite warning from the United States that sanctions were imminent, Reagan's action Friday took many by surprise.

They just didn't believe the United States would make good on its threat. Japan hoped until the last moment to strike a deal, as it has in past business dealings with the United States. There also is a strong sense of unfairness that many of the problems affecting trade matters have been caused by the United States and that Washington import rice and end quotas on beef and citrus products. Yeutter arrived Sunday. On Friday in Washington, which was Saturday by Tokyo time, the United States imposed tariffs worth $300 million on certain Japanese personal computers, power tools and color televisions in retaliation for Japan's Tom Spitzoaene Jounw) old sports book in the cabaret casino.

Cox said. "We put a lot of thought into this for the customer." Adjacent to the book is the "Champs" lounge, a $70,000 project that screams upscale with its lavish decor. "There's lot of banks you don't see decorated this nice," Cox said. His favorite feature of the lounge is a collection of nine photographs reprinted from negatives taken by a photographer for Golden Gate Fields and Bay Meadows racetrack, including one of Bill Shoemaker after he won his first race in 1949. "You don't have to be a race or sports nut to come down here," Cox said.

Thursday, a new keno area will open in the Cabaret Casino, and a new poker room will be unveiled in the Headliner Casino across the street. Cabaret Green Keno will replace the old sports book. "It will be a comfortable, secluded See HARRAH'S, page 5B follows news "I question where the directors were when the alarm signals went up," she said at Mellon's annual shareholders meeting. Mrs. Patterson said she owned or held proxies for nearly 90,000 shares of Mellon stock, twice the number owned by the top 32 officers and directors.

Mrs. Patterson said she did not vote for management's slate of 25 directors, who were re-elected at the meeting, nor did she vote to indemnify the directors from liability, a measure that was also approved. "I couldn't in good conscience exercise my vote for these directors, who weren't on the board of directors. The market responded favorably to the news of Schmidt's retirement. Santa Fe's stock rose $2.25 as share to close at $40 in New York Stock Exchange composite trading Monday.

"I guess some people in the market think that with John Schmidt gone, Santa Fe might start liquidating," said one industry analyst who declined to be identified. Santa Fe Southern Pacific Corp. is a Chicago-based holding company that owns the Santa I Railroad and holds the Southern Pacific Railroad in trust. is taking out its frustration on this nation of 121 million people. The United States imposed tariffs of 100 percent on Japanese color televisions, calculators, computers and power drills after accusing Japan of violating a 1986 agreement by selling semiconductors computer chips below market price and failing to further open its home market to American-made computer chips.

Japan, which denies the charge, has demanded proof it violated the agreement and says the United States has been unwilling to respond. Industry leaders also were baffled by See TARIFFS, page 5B alleged violation of a 7-month-old agreement on trade in semiconductors. Washington accused Japan of selling computer chips at unfairly low prices in third countries and of failing to open its See JAPAN, page 5B Dunes parent weighs filing for bankruptcy By Robert MacyAP LAS VEGAS The parent company for the Dunes Hotel and Casino may have to file for Chapter 11 bankruptcy protection because of cash flow problems and a failed sales agreement, the attorney for the company said Monday. "We first reported that possibility about two years ago," said Anthony Zmaila. "When or how it will happen I don't know." Investment which operates the troubled Las Vegas Hotel and Casino, filed for Chapter 11 protection in November 1985.

Since that time the Las Vegas resort has been struggling to find a buyer or financing that would solve its growing fiscal burdens. Chapter 11 provisions mean the company is protected from its creditors while finances are being reorganized so bills can be paid. The parent Dunes Hotel and Casino a New York corporation headquartered in Las Vegas, was not directly involved at the time filed. But company officials warned at the time they were considering further filings for protection under the bankruptcy laws. Dunes Hotel and Casino Inc.

owns the Las Vegas resort as well as land and other property. The company, in a filing with the Securities and Exchange Commission Friday, said current liabilities exceed assets by $113.4 million. Zmaila said there are current assets of $24 million and liabilities of about $137.4 million. received bankruptcy court approval last year to sell the hotel and casino to a limited partnership being put together by E.F. Hutton Co.

E.F. Hut-ton withdrew from the $144.4 million proposal in February and company officials have declined to comment on their reason for dropping the plan. Kirk Kerkorian, who built the MGM Grand Hotel-Casinos in Las Vegas and Reno before selling them to Bally had discussed purchasing the Dunes but dropped the negotiations in February. Insiders say Kerkorian pulled out because of a number of problems involved in the deal. Dunes officials have continued efforts to sell the Las Vegas resort, but those efforts have been stalled by a tangle of financial problems.

of Mellon loss directing when directing was needed," she said. The resignation two weeks ago of Chairman J. David Barnes was appropriate, and Mellon should look outside its management ranks for his replacement, Mrs. Patterson said. Mrs.

Patterson said her family acquired its Mellon shares when Union Trust of which her grandfather was president, merged with Mellon in 1946. Mellon's stock has declined from a 52-week high of $70 per share to under $40 per share. It fell $6.25 to April 2, the day Barnes announced the bad news, and traded under $40 Monday. out of retirement The company has petitioned the Interstate Commerce Commission to merge the two railroads into what would become the nation's third-largest rail system. The ICC, calling the proposal "anticompetitive," rejected the company's request last July.

Both rail lines operate in many of the same areas and link the West Coast with the Mississippi River. In March, the holding company asked the ICC to reconsider, saying it had reached agreements with other rail companies to guarantee access and continued competition in the Wesl i New England sells itself BOSTON The six New England states often fight each other for tourist dollars, but now they are pouring money into a joint effort to sell the region overseas and on the West Coast. New England USA is a non-profit group that spearheads joint tourism projects for Maine, New Hampshire, Vermont, Rhode Island, Massachusetts and Connecticut. Loan guarantees available FALLON Funds are available to guarantee loans for Nevada residents to create new businesses or expand existing enterprises, said E. Lee Hawkes, Farmers Home Administration state director.

"Although the FmHA guarantees a loan made by a commercial lender, we are interested in the economic health of the state and welcome inquiries about this program," Hawkes said. "Our business and industry program was created to primarily provide jobs in smaller towns and rural communities. "We can make loans to a variety of sizes of businesses, including family-size enterprises. We are especially interested in anything we can do to help improve job opportunities for farmers who are trying to find new occupations." Information may be obtained from the FmHA district office in Fallon or by calling 423-7543. No interest in investor PHOENIX, Ariz.

A private investor who claims to own about 1.5 million shares 4 percent of Ramada Inc. outstanding common stock has requested a meeting with the company's chairman. But Ramada has refused to meet with Paul Bilzerian, owner of Bicoastal Financial Corp. of Tampa, Fla. A company spokesman said Monday Ramada doesn't know Bilzerian's intentions.

"At this point we're just not interested in meeting with him," said David Thompson. FIB plans share increase LOS ANGELES First Interstate Bancorp, parent company of banks in Nevada, California and other states, is asking shareholders to approve a plan allowing it to increase its common shares to 250 million from 100 million, a move that could help it finance future acquisitions. The disclosure comes as First Interstate, the nation's ninth-largest bank holding company, is shopping for acquisitions. In February, the company abandoned a $3.2 billion hostile takeover bid for bigger but financially troubled Bank-America Corp. The regions on which First Interstate is focusing attention include Texas, but the company has declined to say which Texas banks it is talking with.

Silver futures soar Silver futures prices surged higher Monday, nourished by a bullish undertone and ignited by a sharp jolt from technical market factors. Prices gained as much as the 50 cent limit for daily trading. Gold and platinum also posted large gains. The large gains in precious metals and steep losses in interest rate futures reflect "concern about inflation and unease about the economy in general," said Bette Raptopoulos, an analyst in New York with Prudential-Bache Securities. On the Commodity Exchange in New York, silver was 48 cents to 50 cents higher with April at 776.2 cents a troy ounce.

Raptopoulos said silver rallied when computer fund buying materialized. We want to make sure we're giving our guests what they want, Ron Jeffrey, general manager Harrah's Reno book spreads across 6,400 square feet. The old one was 1,600 square feet. During its first month of operation, "we came this close to setting an all-time (betting) record with horses," racebook supervisor Terry Cox said, leaving less than an inch between his forefinger and thumb. He refused to talk dollars, but said the book sells about 5,000 bets a day on a typical weekend.

That's a 50 percent increase over what was written in the Finger-pointing PITTSBURGH (AP) Nathan W. Pearson, Mellon Bank interim chairman, blamed a fickle economy for a $60 million first-quarter loss that caught management and the board of directors by surprise. Shareholders, who saw their stock battered on Wall Street and their per-share dividends cut from 69 cents to 35 cents, pointed a finger elsewhere Monday. "It seems to us that this situation didn't sneak up on us overnight, and there are warnings in the annual report despite that soporific bankerese" that suggested all was well, said Helen McEldowney Patterson, a leading shareholder. a Santa Fe calls former chairman CHICAGO (AP) John Reed has come out of retirement to replace John J.

Schmidt as chairman and chief executive officer of Santa Fe Southern Pacific a company spokesman said Monday. Schmidt, 59, resigned to work as a consultant, said spokesman Bob Gehrt. The company's board of directors appointed Reed, a former chairman and chief executive officer of Santa Fe Industries to replace Schmidt on an interim basis, as a search for a permanent replacement began, Gehrt said. Reed, 69, retired from his Santa Fe post in Aprilj 1983, but has continued to serve Wire service and staff reports 1.