Reno Gazette-Journal from Reno, Nevada • Page 16

Today's tip 8B Saturday, April 4, 1987 Reno Gazette-Journal BUSINESS EDITOR: MIKE NORRIS, 788-6336 usines Recently published "Guide to Modern Business and Commercial Law" is available from Commerce Clearing House News Bureau, 4025 W. Peterson Chicago, III. 60646. Cost is $65. Feds take over Tahoe Savings and Loan assets, including time-sharing developments, that are either non-earning or not generating sufficient income to cover expenses," Gebroe added.

As of Dec. 31, non-earning assets totaled nearly $20 million or 22 percent of total assets. Also, the state-chartered stock association violated the bank board's regulations concerning loans to one borrower, Gebroe said. When it reopens Monday, Tahoe Savings will will keep the same branches, hours and services. It operates two branches in South Lake Tahoe, two in Sacramento and branches in Rancho Cordova, Fair Oaks, Los Banos and Turlock, Cp'if.

The savings and loan's new board of directors consists of Chairman Arthur M. Smith retired board chairman of First Interstate Bank of Nevada; William A. Munnell, a former Supreme Court judge and former chairman and president of Garfield State Bank, Los Angeles; Paula R. Collins, founder and owner of Western Development Group Redwood City, Richard Oppenheimer, retired executive vice president and group head of Wells Fargo and San Francisco; and Jerry M. Lykins, senior vice president and loan production manager of Mason-McDuffie Mortgage Las Vegas.

While business will proceed as usual, the association's top management was terminated, Gebroe said. She added she did not know how many employees lost their jobs, and the firm's past president, Ramon Petragallo, refused to comment Friday night. First Federal Savings of Nevada will manage the savings and loan for the bank board until regulators find a buyer or decide to liquidate it. Gebroe said the bank board took the action because "Tahoe Savings was insolvent and in an unsafe and unsound condition to transact business. "Tahoe Savings' primary and continuing problem has been its high level of fall as tafel sw IBM gets tough with computer copycats NEW YORK International Business Machines Corp.

has made it known it will throw its full legal force against any company that tries to make illegal copies of its new personal computers. IBM's warning reflects a growing assertiveness by high-tech U.S. companies angry at the theft of their multimillion-dollar research by "clone" makers, several leading patent lawyers said Friday. "This whole area of computer piracy, both hardware and software, has been building to a fevered pitch," said James L. Bikoff a partner in Baker Hostetler in Washington and special counsel to the International Anti-Counterfeiting Coalition.

IBM wants to make sure that inexpensive knock-offs of its new Personal System-2 don't steal all the sales of the advanced computers, which were developed at considerable expense and unveiled Thursday in a media blitz. "We're looking to get a return on that investment," William Lowe, president of IBM's Entry Systems Division, said at the introductory news conference. IBM has wrapped its new computers up with applications for more than 100 patents. And it has demonstrated its determination to protect its property with aggressive lawsuits over mainframe software infringement against companies such as Japan's Fujitsu Ltd. and Hitachi Ltd.

Dow climbs 69.89 By Lisa OvensGazette-Journal SACRAMENTO Tahoe Savings and Loan Association, which regulators say is insolvent, was shut down by the Federal Home Loan Bank Board Friday night. The South Lake Tahoe thrift will reopen Monday morning as a federally chartered savings and loan association under the bank board's management consignment program. All deposits will be transferred to the new association and will continue to be insured by the Federal Savings and Loan Insurance said home loan spokeswomen Linda Gebroe. Records UrtBi "iiujit Owners say casino's future lies in the past By Lisa OvensGazette-Journal The new owners of Eddie's Fabulous 50's have decided Reno needs a touch of Hollywood. Eddie's, which will occupy the vacant Players Casino in downtown Reno, is scheduled to open this summer and take visitors back to the days of drive-in theaters, bubble-gum chewing waitresses and soda fountain jerks just like those in the popular film "American Graffiti." Ramada Inc.

has leased the building and will begin "auditioning" job applicants Monday. In all, 300 people will be hired. "We are here to produce a show," said Paul Rubeli, president of Ramada's gaming group. Employees of this gambling joint can expect the unexpected, said Rubeli, who himself called Eddie's "a whacko place." Rubeli said his group has had it with stoic card dealers, poker-faced pit bosses and the grumpy waitresses he says are found in many of Nevada's casinos. Eddie's will be more like "American Graffiti," he said.

Employees will be called cast members, uniforms will be costumes and training will be known as rehearsal Even the basement fits in it's called the back stage. Ramada has gone so far as to hire show consultants to write scripts for employees, as is done at the popular Hard Rock cafes in Los Angeles, San Francisco and other cities. While Rubeli said Eddie's wants people of all ages as its customers, he is counting on those in the 40 to 50 age range. "It's the best gaming demographics," he said. "That's the group that grew up in the '50s." Ramada is counting on a '50s concept to liven up Reno's downtown and pull the area out of its revenue slump, he said.

"People come to Reno for one very simple reason, F-U Rubeli there are no hotel rooms (at Eddie's), we have to bring something downtown that will make Eddie's unique," he added. "Themes are the key to success in the Jean Dixon AikinGazene-Journai CASINO PLANS: Paul Rubeli, left, and William Soaentino review plans for Eddie's Fabulous 50's Casino, scheduled to open this summer. Largest 1 -day gain puts average at highest level ever By Mike NorrisGazette-Journal A Friday rally in government bond markets spilled over onto Wall Street, giving the Dow Jones Industrial Average of blue-chips stocks its biggest one-day gain ever 69.89 points and sending it to a new closing high of 2,390.34. The closely watched average, which reflects the performance of 30 large corporate stocks such as IBM, has set closing highs 32 times since the current stock market rally began Jan. 2, rising 494.39 points from 1,895.95, or 26.1 percent.

Analysts said Friday's surge like most large market jumps was fueled primarily by price increases in blue-chip issues, but they were waiting until Monday to say whether the bull market would continue to push ahead. "Monday will be the deciding factor," said Michael Hume of the Reno office of Wedbush, Noble, Cooke Inc. "If we go up Monday, we'll probably go up even more." But the possibility of a pullback looms, he cautioned, pointing out that the market is "testing the highs" it has reached before. Strength in three financial areas explained Friday's nearly 70-point leap: U.S. dollar.

It was up significantly on foreign currency markets, after falling to its lowest post-World War II levels earlier in the week. Bond market. Index futures. They closed 3 points over the value of the Standard Poor's 500, "and this tends to cause the market to rise," Hume said. Advancing issues outdistanced decliners by a margin of about 3-to-l, with 1,209 stocks up, 413 down and 348 unchanged on the New York Stock Exchange.

Among Nevada stocks, gold mining issues did well Friday. Echo Bay Mines which announced a new, large discovery two days earlier, rose 2'2 to close at 43'2. Battle Mountain Gold Co. gained a half-point to close at 33'2. Newmont Gold Co.

fell an eighth to 3078 but its value was cut by an offering of 5 million new shares. Gaming stocks showed no significant overall gain, although Holiday Corp. rose 13H to 83:,4. Utilities and other interest-rate sensitive issues missed the rally. Las Vegas-based Southwest Gas Corp.

closed unchanged at 25, and Sierra Pacific Power Co. of Reno rose only an eighth to 25'2. Major banks in Nevada and other states raised their prime lending rate on commercial loans this week by 0.25 prcent to 7.75 percent. "This was basically a Dow market," said Jim Laughton of the Reno office of Prudential-Bache Securities. Senate votes to lift foreign gaming ban CARSON CITY (AP) Without debate or discussion, the Senate on Friday unanimously approved a measure to scrap a law barring Nevada casinos from launching overseas gambling ventures in countries without gaming regulatory systems.

AB178, which also would allow state gaming regulators to give preliminary approval to such operations, was recommended by Nevada casino operators who insisted that plans to expand into foreign markets haven't reduced investments in Nevada. The measure now goes to the governor for his signature. During an earlier hearing, William Lebo, senior vice president for Hilton Hotels, said his company's plans to build a huge casino in Queensland, Australia, could have been badly damaged if state authorities hadn't granted a care-fully worded, preliminary approval working within existing state law. Lebo said the Queensland government didn't want to deal with Hilton until the preliminary approval was granted. Gaming Control Board member Mike Rumbolz also spoke in favor.

Changes at Harrah's Tom Yturbide, general manager of Harrah's Tahoe since 1979, will take responsibility for a new Harrah's hotel-casino in Laughlin, Harrah's President Phil Satre said in a prepared statement released late Friday afternoon. Yturbide will be succeeded by Ron Lenczycki, now chief financial officer at Harrah's Group. Satre also said Hap May will return to Harrah's Tahoe after a 15-year absence to become vice president for casino operations. For the past seven years, May has worked as an assistant general manager at the Marina casino, vice president for casino operations at Trump Plaza and developer of Harrah's Laughlin hotel-casino. Vegas casino to stay open LAS VEGAS The troubled Marina hotel-casino will be placed in Chapter 7 bankruptcy liquidation Tuesday but may be allowed to stay open if a court-appointed trustee thinks it can stay afloat, according to a bankruptcy court ruling.

U.S. Bankruptcy Judge Clive Jones, in granting a request by hotel operators to liquidate their holdings beginning Tuesday, also authorized a "standby" trustee to study the viability of keeping the resort open. Resort operators filed for Chapter 11 bankruptcy last week and announced plans to close the troubled resort. New Jersey casino opens ATLANTIC CITY, N.J. This resort welcomed its 12th casino Friday as entertainer Bob Hope and Gov.

Thomas H. Kean helped christen the Showboat with the breaking of a champagne bottle and the blast of a ship's whistle. The highlight of the 24-story, 516-room hotel complex is a 60-lane bowling center, part of Showboat's move to cater to a middle-class family market. Grants for Nevada groups Union Pacific Corp. has announced the award of $57,500 in grants to nine groups in Nevada.

The Reno-area groups and the amount each received are Assistance Guild of Reno-Sparks; Family House Nevada Self-Help Foundation; Nevada State Council on the Arts; and United Way of Northern Nevada. Las Vegas-area recipients are Catholic Community Services of Nevada; KNRP-FM, Nevada Public Radio Corp. YMCA; and United Way of Southern Nevada. Union Pacific declined to say how much went to each group. Wire service and staff reports NASDAQ From page 7B v.dLb V.

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"It needs something new, something different to bring people to town." So according to plan, Eddie's will be different. There'll be no black and white casino employee uniforms there. In fact, Rubeli's distaste for gaming's traditional black and white carries over to employee saddle shoes, which will be blue and white. Remodeling is costing Ramada about $10 million, and a Canadian interior design company has been brought in to do the work. "We intentionally went to a company that's never designed a casino, so we wouldn't end up looking like every other casino in town," he said.

Fifties will be everywhere. And for those who weren't around then, there will be history lessons to boot. The first floor will include a dance floor and bandstand that fronts Second The decline is welcome news The march of economic progress continues. 5 Marlin Fitzwater White House spokesman The number of people with jobs statewide increased about 50,000 over February, rising from 12.78 million to 12.83 million, while the number without jobs dropped from 847,000 to 822.000, said Steve Dimitroff, senior research analyst with the state Employment Development Department. The Bureau of Labor Statistics' national survey of 60,000 households actually showed 14,000 fewer people working in March than in February.

However, the number of workers classi banks announced this week that they were raising their prime rate from 7.5 percent to 7.75 percent, the first upward move in this benchmark lending rate since June 1984. Analysts attributed the increase to a higher cost of raising funds on the part of the banks. They speculated that perhaps the Fed was at least tacitly allowing interest rates to creep up as a way of reducing downward pressure on the dollar. Fed Chairman Paul Volcker has warned repeatedly that if the dollar's value falls too quickly or too far on foreign exchange markets it would push up U.S. interest rates and inflation.

Higher interest rates in this country would make dollar-denominated investments more attractive to foreigners and Street. A soda founuiin will replace the first-floor sr.ack bar, and, of course, there will be gaming tables and machines. On the second floor, one really walks back in history. There will be a diner replete with waitresses on roller skates and the Radio City Pizza Hall. Possibly the biggest attraction will be a "drive-in" lounge area with chairs that are really backseats of 1950s vintage cars.

There will be silent movies playing on a screen, actual drive-in speakers and a concession stand that sells popcorn, hot dogs and drinks. Ramada, though it is leasing the property, has an option to buy. The building has been closed since December 1982 when First Interstate Bank of Nevada foreclosed on the property. It was then called the Money Tree Casino and controlled by Charles Mapes. The building was purchased by Philip and Mary Schwab in 1984 but was never opened.

In November of last year, Eureka Federal Savings Loan Association in San Carlos, foreclosed after the Schwabs withdrew their bid for a gaming license. fied by the government as unemployed also dropped by 113,000, to 7,854,000 the first time it has been below 7.9 million since April 1980. To be listed officially as among the unemployed, a person has to have looked for a job during the previous four weeks. "The decline is welcome news The march of economic progress continues," said White House spokesman Marlin Fitzwater. However, private economists saw little reason for optimism A separate survey of non-agricultural payrolls showed 165,000 new jobs in March, 62,000 of them in government.

And 116.000 of the 337,000 payroll jobs that had sprouted in February disappeared in revised numbers for that month, also released Friday. "If it had not been for that revision, you would have had only 50,000 new payroll jobs in March," said Allen Sinai, chief economist for Shearson Lehman a Wall Street brokerage house. thus would act to raise the dollar's value on foreign exchange markets. The Fed policy-makers met again this week. Some analysts speculated that the minutes of that meeting, which will not be released until May 22, will show a similar decision to leave policy unchanged.

These analysts contend that the Fed is essentially caught in a trap. It can't tighten credit conditions because that would run the risk of pushing the sluggish U.S. economy into a recession, but it can't loosen conditions, either, for fear of driving the value of the dollar low er. The minutes of the Feb. 10-11 meeting were adopted.

10-1. with Thomas Melzer, president of the Federal Reserve Bank of St. Louis, casting the dissenting vote. WASHINGTON (AP) The nation's unemployment rate dipped to 6.6 percent in March, the government said Friday in a report the White House called "welcome news," but private economists said new job losses in manufacturing and construction clouded anticipations of an improving economy. The one-tenth of a percentage point drop from the 6.7 percent jobless rate in December, January and February resulted largely from an unusual decrease of 127,000 people in a civilian labor force that had been growing by 200,000 a month recently.

In another report, California said its jobless rate had dropped from 6.2 percent to 6.0 percent in March, while Los Angeles County's unemployment rate dropped half a percentage point. Nevada jobless statistics for March have not been released. The state Department of Employment Security said February unemployment stood at 5.9 percent, up from 5.8 percent in January. Feds willing to tighten credit policies to fight inflation WASHINGTON (AP) Officials at the Federal Reserve left monetary policy unchanged at a meeting in early February, but they indicated they were ready to tighten credit conditions if forced to by economic conditions, according to minutes of the meeting released Friday. Members of the policy-making group, the Federal Open Market Committee, indicated concerns about inflation and the declining value of the dollar.

While voting to hold monetary policy stable, the officials signaled more of a willingness than at previous meetings to restrain monetary growth if necessary to keep inflation in check. A variety of interest rates have begun creeping up in recent days, and in the most dramatic move, several major.