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Reno Gazette-Journal from Reno, Nevada • Page 20

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Reno, Nevada
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20
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Today's tip 8B Car shopping? Check out "Buy a Car on Your Terms," a free brochure available by writing Public Relations, Credit Union National Association, P.O. Box 431 Madison, 53701. Saturday, December 15, 1990 BUSINESS EOITOR: STEVE FALCONE, 788-6322: County sales climbed just 2.43 percent in October Reno-Sparks area taxable sales grew by a slow 2.43 percent in October over the same month in 1989, the state Department of Taxation reported Friday. Statewide sales increased 7 percent in October, an improvement over the 5 percent gains during the two previous months, taxation department director Perry Co-meaux said. Washoe County merchants sold $224.76 million in goods in October, compared with $219.4 million a year ago.

But sales in eating and drinking establishments, one of the top sales categories, slipped 2.8 percent from the same month in 1989. mainly as a result of rapid growth and federal cost-shifting to the states. The governor added that sales tax revenues, a main source of state income, were down in the past two months and he was concerned that new figures would show that trend continuing. Sales taxes collected on the statewide October sales totaled nearly $71.6 million. Coupled with excise taxes of $19.2 million, gross tax revenues for October reached $90.8 million.

That figure represents an increase of 5.04 percent from a year earlier. Staff and wire service reports Statewide, merchants sold $1.2 billion in goods during the month. The increase compared with the smaller increases in the prior two months that had caused Gov. Bob Miller to express concerns this week. With the October figures, the year-to-date increase in sales tax revenues is about 9 percent.

That's higher than the 7.5 percent annual growth estimate that had been projected earlier by state officials. Washoe County's fiscal year-to-date sales total $1.18 billion, an increase of 4.3 percent from last year. The statewide October figures were helped by sales in Las Vegas, up nearly 9 percent. Statewide, mobile home sales were down nearly 11 percent in October while building material sales were down nearly 3 percent. But general merchandise sales were up 13 percent and trailer-boat-plane sales were up nearly 14 percent.

Miller said Thursday that tax hikes are likely next year and his preference is a broad-based business tax rather than piecemeal increases of "sin" taxes, sales taxes or property levies. Miller also said his earlier estimate of a $100 million shortfall in revenues has grown to $130 million and possibly more, Kerkorian's next gamble Chrysler? Automaker strengthens its defenses against buyout Economy: double dose of bad news By Oswald JohnstonLos Angeles Times WASHINGTON In what one analyst called "a double dose of deadly news," the government reported Friday that industrial production plunged 1.7 percent in November while wholesale prices went up 0.5 percent. The drop in industrial production was the worst since the depths of the 1982 recession. Cuts by auto manufacturers accounted for about half the drop, but every major factory sector recorded some decline. The increase in November wholesale prices came despite a sharp drop in oil prices compared to previous months.

Some analysts argued that the numbers were distorted by some one-time events and thus were not as gloomy as they might at first appear. But both reports were worse than pessimistic market expectations. They raised the specter of a recession more bitter than anticipated, but without the lower inflation that usually accompanies an economic slowdown. "This was a double dose of deadly news," said Allen Sinai of The Boston who has been predicting recession since well before Iraq invaded Kuwait. "The production decline was very widespread.

It was almost scary." He added, "The inflation worry has to go away before the central bank can act." But the inflation report had a positive side also. Prices for intermediate goods goods a step or so down the production chain from finished goods rose a scant 0.1 percent, while food and energy prices at that level fell. Crude prices fell a record 6.2 percent, and the price of crude energy plunged 10.3 percent. i i -v I' A i I I it 7 i i i I V- VV. i 4 a A''- rJT' i i v.

I t. 1 if 'X- Inflation, interest rate news sends Dow down NEW YORK Disappointing inflation news and a rise in interest rates helped drive the stock market into a broad retreat Friday. The Dow Jones average of 30 industrials dropped 20.55 to 2,593.81, closing out the week with a net gain of 3.71 points. Declining issues outnumbered advances by about 2 to 1 in nationwide trading of New York Stock Exchange-listed stocks, with 526 up, 1,025 down and 473 unchanged. In the bond market, which is especially sensitive to shifting inflationary expectations, interest rates rose for the second straight session.

Oil recovers from early fall NEW YORK Oil prices rallied Friday as traders speculated President Bush might scrap diplomatic meetings with Iraq, but then crude fell back sharply when Bush's news conference rhetoric was not so harsh. Light sweet crude oil settled at $26.55 per barrel, up 13 cents, at the New York Mercantile Exchange on contracts for delivery in January. In early trading, crude had jumped up by $1.68 per barrel amid continued quarreling between the United States and Iraq over a date for Secretary of State James A. Baker III to visit Baghdad. After Bush said in the afternoon that he was discouraged but still hoped the talks could be held, crude plunged more than $1 per barrel in about a half hour.

Trump's Taj meets deadline ATLANTIC CITY, N.J. Donald Trump's Taj Mahal Casino Resort met an extended deadline Friday to throw together a restructuring agreement and hand it over to state gaming regulators. The developer's other two casinos face deadlines today to make bond payments. Analysts said one the Trump Castle probably wouldn't make its $18.4 million payment. The Trump Plaza Hotel and Casino was likely to make its $16.1 million bond payment, they said.

Both are due bv midnieht Saturday. The Philadelphia Inquirer reported in Friday editions that Trump Plaza has just $17 million in the bank and Trump Castle has only $18 million handy. Dunes owner gets license LAS VEGAS Dunes Hotel owner Masao Nangaku has won a recommendation for an unlimited gaming license, but gaming regulators attached some stringent conditions along with their approval. The state Gaming Control Board recommended late Thursday that Nangaku be given an unlimited license to replace the two-year license that expires this month. The Nevada Gaming Commission meets next Thursday and is expected to give its formal approval to the recommendation.

The board's decision came after almost 16 hours of questioning over two days about the Japanese businessman's problems in running the aging hotel. Board members attached 15 different conditions to the license, several of which allow gaming agents to continue investigations into the background of Nangaku's complex business dealings. Southland hearing opens DALLAS Southland bankruptcy plan confirmation hearing began Friday with attorneys clashing over efforts by the parent of the 7-Eleven convenience store chain to disclose reorganization options. Southland filed for Chapter 11 reorganization in October with a "prepackaged" plan already approved by most of its creditors. U.S.

Bankruptcy Judge Harold Abramson must confirm the plan for it to take effect. Abramson said he would first hear arguments over Southland's attempts to inform creditors of the Dallas-based company's financial condition and options, then hear arguments on the merits of the reorganization plan. The hearing is expected to last for several weeks. Wire service reports DETROIT (AP) California billionaire Kirk Kerkorian has bought 9.8 percent of the stock of Chrysler Corp. for about $272 million, making him the company's largest shareholder and prompting the struggling automaker to beef up its takeover defenses.

A statement issued through a Los Angeles public relations agency said the purchase was made as an investment. Chrysler spokesman Arthur Liebler confirmed that a discussion took place last week between Kerkorian, of Beverly Hills, and Chrysler Chairman Lee Iacocca. "That's when Kerkorian said that he's supportive of Chrysler and he described himself as a passive investor," Liebler said Friday. Nevertheless, Chrysler's board of directors on Friday lowered from 20 percent to 10 percent the amount of stock an investor may hold before the company's anti-takeover mechanisms take effect. Those mechanisms include offering current Chrysler stockholders shares at less-than-market value.

That makes a hostile takeover more difficult and expensive. Through a spokesman, Kerkorian indicated he was surprised by the board's action. "It is hard for us to see how the steps taken by the board today are in the best interest of all the shareholders," the statement said. It did not say when Kerkorian bought the stock or what range he paid for the shares. A woman answering the telephone at Kerkorian's Tracinda Corp.

in Beverly Hills, who did not identify herself, said no corporate officers were available and all comment was coming from the agency More light may be shed in papers that must be filed with the Securities and Exchange Commission when an investor acquires 5 percent of a company's stock. Kerkorian had not filed the papers by the time the offices closed at 2 p.m. EST. Chrysler first announced the purchase, saying Kerkorian had acquired between 9 percent and 10 percent of the company's 224 million shares of outstanding common stock. About an hour earlier, trading in Associated Press KERKORIAN: The billionaire has built several Nevada casinos.

Chrysler stock was halted on the New York Stock Exchange, with shares at $11 .87 Trading resumed about two hours later and Chrysler stock rose to $12 a share, down 25 cents from Thursday's close. Chrysler shares regained the 25 cents and closed for the day at $12.25. The purchase makes Kerkorian Chrysler's largest shareholder. The Wellington Group has about 9.2 percent, and Sanford C. Bernstein Co.

Inc about 8.3 percent. Both hold stock for institutions, such as pension funds. According to Chrysler's latest proxy statement, Iacocca owned about 192.000 shares of stock, or less than a tenth of 1 percent. Kerkorian, 73. is known as a high-rolling airline and Las Vegas casino investor.

He built the International Hotel (now the Las Vegas Hilton) and two MOM Grand hotels, now owned by Bally's. His current Nevada plans include a new MGM hotel and theme park in Las Vegas. On Nov. 1 he completed the sale of MGM-UA Communications Co. for $1.3 billion to Pathe Communications owned by Italian financier Giancarlo Parretti.

Last month, about the same time Kerkorian sold MGM-UA, Chrysler broke off talks with the huge Italian automaker Fiat SpA. Analysts speculated Kerkorian's move was purely for investment. "He figures he has himself as close to a no-lose proposition in the (stock) market," said auto analyst Charles Brady of Oppenheimer Co. in New York. "The stock has bottomed out and everybody has said everything bad about it (Chrysler) as they can.

"I think it's a genius move. Barring nuclear war in the Middle East, he gets his money back." Fitzgerald's plans Illinois riverboat By Wayne MeltonGazelte-Journal Key executives in the parent company of Fitz-geralds Hotel-Casino and Harolds Club in Reno are going full speed ahead with plans to operate an 800-passenger, casino cruiser in Illinois. "I feel very positive about us getting a license." said Phil Griffith, Fitzgeralds Group president. "We have a good project, and it meets the letter of the law" in Illinois. Plans call for Riverboat Management, a company that includes Griffith and other Fitzgeralds officials, to start operating a $5-million floating casino modeled after Donald Trump's Trump Princess sometime after April 1, 1992.

But the firm still must obtain an Illinois gaming license to operate the cruiser on the Des Plaines River. The ship would be based at a pavilion to be built several miles from Joliet. Fitzgeralds' executives presented their plans to Illinois officials Thursday, several weeks after Harrah's Hotel-Casinos announced it had dropped a proposal to operate a riverboat out of Joliet. In future phases, the partners hope to build a hotel, outdoor amphitheater, and restaurants. A group of Joliet-area investors would help pay total costs up to $40 million.

Joliet is a 45-minute drive from the Chicago area, which the partners peg as their major customer base, Griffith said. Names of Fitzgeralds officials involved in the project will be announced later, he said. Griffith has been among Nevada casino officials who say they're checking into casino opportunities elsewhere, as legal betting spreads to other states. in late 1989, Fitzgeralds officials had studied the possibility of starting a riverboat gaming operation in Iowa, but later scrubbed that proposal. Fitzgeralds Group also owns the Nevada Club in Reno and a 650-room hotel in Las Vegas.

Harolds and the Nevada Club have been put up for sale. Bankruptcy receiver running Jimsair operations member. The Canadian service change decreased the number of passengers going through the Jimsair facility which remains open under its original name while managed by FBO, Dennis said. Meanwhile, FBO is making improvements to the facility, including fuel-tank installation. And Dennis predicted the property will be offered for sale within 60 days, at a price to be determined later.

In addition, a restaurant in the facility remains open to the general public. And FBO has been working to improve communications and services. Dennis said. Founded in 1975, FBO performs a wide range of services for aviation operations, including feasibility studies, business plan development, employee training and financial consulting. ship came after Jimsair couldn't make payments on its loan last summer, Dennis said.

As a fixed-base operator, Jimsair has provided a variety of airport services for charter and private aircraft since it opened in October 1989, following a 2 2-year. $6-million construction project on a 23-acre site. It's one of several fixed-based operators at the Reno airport. Located on Rock Boulevard, east of the airport's main runways, Jimsair had been used for several charter flights from Canada. But those flights began going to the airport's main terminal this fall.

Officials accepted Canadian charters at the main terminal because it had additional room and because "it was just a little easier" to handle baggage and ground transportation, said Jack Walther, an airport board By Wayne MeltonGazette Journal Jimsair Aviation Services Nevada at Reno Cannon International Airport has been forced into bankruptcy receivership by its major creditor, and FBO Resource Group of Denver, has been appointed to take over operations. "Things are going very well" at the facility, although its staff has been cut from 55 to 35, primarily due to the loss of a major charter contract, said W. Stephen Dennis, FBO president. Jimsair officials could not be reached for comment on the management changeover, which started Oct. 26 after FBO was appointed receiver.

In a state district court action, Jimsair was forced into receivership by Textron Financial Corp. of Fort Worth, Texas a division of Textron Corp. of Providence, Dennis said. Textron's move to initiate receiver AM Stocks Dec. 14, 1990 Dow Jones Ind.

6 has 13 years lending experience with four years in the commercial finance industry. He comes to Truckee River Bank from First Interstate Bank of Oregon where he worked as senior credit administrator, retail banking group. Portland. Buntin has Close: 2593.81 Volume: 150.88 million KEVIN J. PIKERO has joined Truckee River Bank as assistant vice president and manager of Small Business Administration loan servicing He will be responsible for the exclusive management of the SBA loan portfolio Buntin yr ,2600 I L-J- 2400 Lawyers.

He is a partner in the firm of Allison, MacKenzie, Hartman, Soumbeniotis Russell, Ltd. An alumnus of the University of California, Hastings Law School, he has been practicing law for 27 vears. JIM ELLIOTT, station manager of, KRNV-TV in Reno, has been elected president of the Board of Directors of the Nevada State Fair for 1991. Elliott succeeds RON SMITH, director of community development for the Washoe Association of Retarded Citizens. Also elected: first vice president, VALERIE GLENN, a partner in Rose-Glenn Advertising: and second vice president, FRED ROSS, vice president-retail banking manager.

First Interstate Bank of Nevada. Continuing as treasurer will be DAVE FUNK, senior vice president of Sierra Bank. Smith and all officers serve on the executive board. Also on the board: BILL LEONESIO, vice president and manager of First Interstate Bank's Business Banking Center, and Reno businessman 1ARY LUBRA. I Baily Manufacturing 3 Caesars World 163 -V2 Circus Circus 5234 -1 Elsinore Corp.

Va Golden Nugget 18'8 -1 Hilton Hotels 39'4 -Va Int'l Game Technology 15 Jackpot Enterprises 7'2 Promus Companies 164 Sands Regent 1 2 Va AltaGold 18125116 Coeur D'Alene Mines 13 Echo Bay Mines 74 FMC 30i -4 Newmont Mining 34H R.R. Donnelly 387 -Vt Sierra Pacific Resources 21 1 Southwest Gas 13 -'A U.S. Mineral Exploration V't Valley Capital Corp. Pikero 2300 I 122S0 MTWTF Now. 16th a bachelor's degree and a master's degree in management from Willamette University, Salem, Oregon.

DAVE DUNCAN has joined Technology of Reno as sales manager. He will be responsible for both domestic and international sales. He has 25 years of sales and marketing experience in the metalworking industry GEORGE V. ALLISON has become a Fellow of the American College of Trial i Complete stocks pages 6-7B and its administrative staff. He has 12 years of accounting and finance experience, most recently as an account officer with Barclay's Business Credit Inc.

STEPHEN G. BUNTIS is the new senior vice president and chief lending officer for Truckee River Bank. He will be responsible for overseeing the loan programs, policy administration and approval of loans for the bank. Buntin $26.55 $0.13 $376.70 $2.40 $3,937 Benchmark crude Gold (N.Y.) Silver (N.Y.).

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