Reno Gazette-Journal from Reno, Nevada • Page 16

Today's tip me Abigail, a 3-foot-tall roller-skating donkey from Eugene, will show her stuff from 11 a.m. to 2 p.m. at Havasubaru, 7063 S. Virginia where K-ONE radio will be doing a broadcast. 8B Saturday, June 14, 1986 Reno Gazette-Journal Vegas resort reaches partial pact with creditors Stocks rebound, Dow gains 36.06 points NEW YORK The stock market rose sharply Friday, bringing an upbeat finish to a week that began with a record-setting decline.

Analysts attributed the revival of traders' enthusiasm to falling interest rates in the credit markets. The Dow Jones average of 30 industrials climbed 36.06 to 1,874.19, for its biggest point gain since it rose 38.32 on April 16 and its eighth-largest ever. That left the average with an 11.71-point loss for the week. Volume on the New York Stock Exchange reached 141.20 million shares, against 109.06 million in the previous session. Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 163.24 million shares.

By Jane Ann MorrisonGazette-Journal LAS VEGAS The Dunes Hotel and its primary creditors, Valley Bank and First Security Leasing, have reached a partial payment agreement that gives the resort additional time to be sold without the threat of foreclosure. Anthony Zmaila, legal counsel for the Dunes, said Friday the agreement calls for monthly payments to both Valley Bank and First Security Leasing starting June 1 and continuing until May 1, 1987. The Dunes owes Valley Bank $80 million and will make monthly payments of between $100,000 and $250,000. First Security Leasing is owed $12 million and will be paid $25,000 a month under the agreement. Valley Bank headed a consortium of banks that extended a loan of $68.6 million to the Dunes in March 1984 as part of a debt restructuring plan.

When the Dunes defaulted on that loan in September 1985, Valley Bank started a foreclosure action against it. Pressure from the bank, as well as the hotel's inability to pay a $2.7 million judgment awarded to the Culinary Union, pushed the Dunes' operating company, Investment toward filing for reorganization under Chapter 11 of the federal bankruptcy code. Filing Chapter 11 puts creditors on hold while the com pany attempts to reorganize its debts. Since the resort filed Chapter 11 seven months ago, Valley Bank has been at the forefront, seeking a forced sale of the property or an auction. The arrangement hammered out between the Strip resort and the financial institutions includes an agreement to dismiss the pending litigation in bankruptcy court and state court.

If the resort's majority owners, Jack Anderson and Morris Shenker, have not entered into an agreement to sell the Dunes by next spring, or the resort fails to make its scheduled payments, the hotel can be sold at a public auction or the bank has the right to foreclose, Zmaila said. Wholesale rft? JL. mkmm.m JT aB TRUNCATED PIER: Christy Burch and her dog, Shy, relax the National Association of Realtors, blasted a court ruling that on what is left of the pier behind the Carnelian House Restau- bans owners from repairing such Lake Tahoe piers unless rant at Lake Tahoe's Carnelian Bay. Clark E. Wallace, head of they redo the adjoining lots.

Realtors chief blasts Tahoe restrictions Golden Nugget Chairman Stephen Wynn offered to pay $115 million cash for the resort, but was rebuffed by Shenker and Anderson, a California farmer, for offering too little. Dunes officials placed a $143.5 million price tag on the property, which is located in a high-traffic area where the Strip intersects with Flamingo Road. The Dunes sits directly across the street from Caesars Palace and Bally's Grand-Las Vegas. Sources say the resort is currently negotiating a possible sale with Blumen-feld Properties, a construction contracting firm in Philadelphia. No telephone number for the company is listed in the Philadelphia directory.

percent But analysts fear sluggish economy more than inflation WASHINGTON Wholesale prices jumped 0.6 percent during May, ending a streak of four straight monthly declines, as oil prices recovered from an extraordinary plunge, the Department of Labor reported Friday. However, economists have little fear of a serious resurgence in prices for consumers and expect retail costs to rise at an annual rate in the range of 2.5 percent to 3 percent this year. Inflation apparently does not pose a major threat in the current uncertain business climate. Instead, there is greater fear about the seemingly stalled economy and rising unemployment. The output of the nation's factories, mines and utilities fell 0.6 percent in May, the third decline in the last four months, the Federal Reserve Board said Friday.

Industrial output is barely higher than it was a full year ago. The sole encouraging note came from a report that total sales, covering transactions by manufacturers, wholesalers and retailers, rose 1.4 percent during April. But the ultimate customers, the retail consumers, are reluctant spenders these days. A preliminary report on retail sales has disclosed a decline of 0.1 percent during May. "The main problem we have is not inflation, but that the economy is much more sluggish than it ought to be," said John M.

Albertine, vice chairman of Farley Industries, a Chicago-based diversified manufacturing company, whose products include boots, underwear and batteries. The increase in wholesale costs was inevitable, ending a period in which petroleum prices virtually collapsed. Oil prices were "plunging, plunging and plunging, and you can't expect a continuation of that," said Richard B. Hoey, chief economist for Drexel Burnham Lambert, a New York investment banking firm. "There was a rebound from a deeply depressed level.

The plunge is over, but it does not signal the start of a brand new round of inflation." Los Angeles Times Vegas savings, loan targeted for purchase By Susan VoylesGazette-Journal Atlantic Financial, the largest savings and loan based in Pennsylvania, announced its intentions Friday to buy Frontier Savings Association, based in Las Vegas. Frontier also has offices in Reno and Sparks. The transaction, however, faces state and federal tests on its legality, said Scott Walshaw, Nevada commissioner of Financial Institutions. Atlantic Financial, through its First United Thrift subsidiary in Las Vegas, got into the savings and loan business in Nevada by purchasing the troubled Great West Savings of Las Vegas in January, Walshaw said. Great West was in state receivership.

Now Atlantic Financial, which is viewed as a state savings and loan, is trying to buy a non-troubled state savings and loan. State and federal laws will have to be reviewed to see if the transaction, under these specific circumstances, is legal, The sale would be accomplished by exchanging Atlantic Financial's cumulative convertible preferred stock, Series for Frontier common stock. The transaction is valued at about $11 million, according to Atlantic. Frontier Savings Association, with assets of $319 million, operates four branch offices in Las Vegas and one each in Reno and Sparks. Those offices would be operated as Atlantic Financial Savings branches, the same name of the two Las Vegas offices it bought from Great West.

Donald Caldwell, president and chief executive officer of Atlantic Financial, based in Bala-Cynwyd, said bringing the two institutions together will make it easier for the company to expand its business and line of products in Nevada. "This merger will benefit both companies," said Frank Mummey, president and chief executive officer of Frontier Savings Association. "We're impressed with Atlantic's expansion plans and its accomplishments in a relatively short time." U.S. auto sales up slightly DETROIT Domestic sales by the seven U.S. automakers rose by a bare 0.8 percent in early June over the corresponding period last year, with only Chrysler among the Big Three showing an increase, the manufacturers said Friday.

The automakers sold 218,247 cars June 1-10, compared with 216,565 a year earlier. This year through June 10, the automakers sold 3,621,965 cars in the United States, down 6 percent from 3,854,734 in the comparable period last year. U.S. Steel seeks contract PITTSBURGH United States Steel Corp. told United Steelworkers contract negotiators Friday it wants a settlement by early July to prevent customers from turning elsewhere out of fear of a strike against the nation's largest steelmaker.

Meanwhile, bargaining in Chicago between the union and Inland Steel Corp. is progressing toward a settlement mat might come this weekend, a union official said. "That's certainly possible. Let's hope that's the case," said a company official. "They're working toward an agreement as soon as possible." Apple pushes for secrecy CUPERTINO, Calif.

Apple Computer, moving to stop product leaks it believes could hurt the company, has hired a security firm based in Eugene, the Cupertino firm announced. The corporate secrecy move will be carried out by D. W. Hettman Associates, which has been instructed to make sure software developers for Apple products have secure premises, according to company President Dennis Hettmann. The security move is in contrast with Apple founder Steve Wozniak's methods.

He was well known for his willingness to share some design elements of the first Apple computer. Safeway to fight takeover SAN FRANCISCO Safeway Stores said Friday it plans to remain independent despite Dart Group disclosure that it might attempt to acquire the giant supermarket chain. Dart Group, a Landover, operator of book retailing and automotive parts businesses, also said in a filing with the Securities and Exchange Commission that a partnership it controls had acquired 5.9 percent of Safeway's 61 million common shares outstanding. Meanwhile, securities analysts questioned whether Dart Group really wants to pursue a takeover bid for Safeway or is interested in forcing a profitable buy back of its shares. In the past, Dart Group has attempted other acquisitions of major retailers but settled for selling its stock in the companies for a gain.

Kennecott rejects offer SALT LAKE CITY Kennecott has turned its back on a counter offer from unions representing its mine and smelter workers and will begin seeking non-union employees before the next bargaining session starts. The financially troubled company will begin advertising next week for replacement workers, Judd Cool, Kennecott senior vice president, said Thursday. The Salt Lake City-based company, once the employer of about 12,000 Western copper workers, is now demanding concessions from 17 unions representing its remaining 2,000 workers. The current contract expires at midnight June 30. --tmfl fill Wallace to bring their parcels up to certain environmental standards.

Individuals who may have purchases Drooertv and lnhen JSeifTld i "'11 i r3lA-i Jul i I Mike NorrisGazette-Journal Judge rules on Tahoe lawsuit, page 1C said Wallace, should not be forced to redo the rest of their property simply because they want to upgrade the pier. Wallace, 58, spoke to reporters after addressing about 250 members of five area boards of Realtors meeting at the Cal-Neva Lodge. He is co-owner of the real estate brokerage firm of Wallace, Anderson, Underwood Scofield in Moraga, Calif. In other remarks, Wallace said the National Association of Realtors is moving to help develop measures that would prevent another backlog of mortgage applications like the current one that has jammed up the home-loan market. He said association officials are meeting with the United States League of Savings Institutions as well as a variety of representatives of homebuuder groups, Federal Housing Administration, and other financial institutions.

By Mike NorrisGazette-Journal CRYSTAL BAY The president of the National Association of Realtors on Friday lambasted a recent federal district court ruling that denied Lake Tahoe property owners the right to repair dilapidated piers unless they also redo their entire lots. Clark E. Wallace said Judge Edward J. Garcia's order lodges a "huge inequity" against landowners who should be allowed to perform "legitimate updating" of their property. Garcia, who has issued a variety of rulings concerning construction at Lake Tahoe, denied in late May a motion on behalf of residents that would have allowed them to repair crumbling boat docks and piers without redesigning their entire lots.

The order means the homeowners cannot repair the piers unless they make a series of changes in vegetation, exterior design and other aspects of the property Thousands of jobs expected to go to robots DETROIT (AP) The march of industrial robots to the assembly lines will cost hundreds of thousands of jobs in the next nine years but may save some companies from going under, union and industry authorities said Friday. A study by the United Auto Workers union estimated as many as 225,800 jobs could be lost in the auto industry by 1995 as manufacturers introduce robots in their factories. Throughout the auto industry, between 48,300 and 58,800 robots will be used in factories by 1995, compared with 9,200 to 9,800 last year, the UAW study reported. Eric Mittelstadt, president and chief executive officer of GMF Robotics Corp. in nearby Troy, said the trend toward more robots holds true throughout manufacturing, not just the auto industry.

"The robot population has gone up substantially and the robots are in the plants," said Mittelstadt, also president of the Robotics Industries Association, an industry group based in Ann Arbor. "That doesn't quarrel with the conclusion that there will be fewer workers on the factory floor than today." A study last year by the University of Michigan forecast that by 1995, about 5 percent of the work force will have been displaced by robots, said Peter Atytler, project director. The greatest impact will be in the automotive industry, where robots will have taken 18 percent of the jobs by 1995, followed by the electronics industry, 15 percent, Atytlej said. Canadian inflation rises OTTAWA Higher taxes, Expo 86, the start of the barbecue season and fear of a coffee crunch were among the culprits that pushed Canada's annual inflation rate in May up to 4.1 percent from 3.9 percent in April, the government said Friday. The official Statistics Canada said consumer prices rose by 0.5 percent in May, the largest monthly increase since January.

Yre se'08 reports Pat DavisonGazette-Journal CONCRETE WORK: Bob Pratt uses a trowel machine to smooth freshly poured concrete Friday on the second floor of the Truckee River Lodging House, under construction at First and Ralston streets in Reno. Sixteen trucks supplied workers with 750 yards of concrete for the second floor of the 214-room hotel project, scheduled for a January opening..