Reno Gazette-Journal from Reno, Nevada • Page 34

Today's tip Bus 12B Friday. December 9, 1988 Reno Gazette-Journal BUSINESS EDITOR: JIM GOLD, 788-6322 me Make your tires last send 50 cents for a tire maintenance booklet from the Dept. of Transportation and Goodyear: Item No. 604T, Consumer Information Center, Pueblo, Colo. 81009.

Selectivity called key to Nevada diversification can provide economical, same-day or overnight delivery of products to Los Angeles and Long Beach ports. Therefore, Nevada diversification efforts should target for relocation Los Angeles-area distributors, manufacturers and producer-services companies, Tomasik said Panelist Mary Hausch, associate editor of the Las Vegas Review-Journal, said despite diversification efforts, Nevada's economy will still be based on gaming. Citicorp's Las Vegas credit-card center employs 1,000 people earning about $25,000 a year each; when the Golden Nugget opens its huge hotel-casino on the Strip next year, it will employ 5,000 people, she said. Hausch warned that the state's boom in gaming and manufacturing expansion See SELECTIVITY, page 9B America a good example of a company that located in Reno and suggested regional headquarters of other major companies might be encouraged to relocate in Nevada. However, a smoky factory that wants to set up in Reno would be discouraged from relocating, Day said.

Nevada's marketing efforts could be directed at many California companies looking for cheaper land and lower taxes, Day said. Panelist Jack Tomasik, an economic researcher whose Arizona firm, Mountain West, has studied diversification efforts, said Las Vegas and Reno compete with Phoenix, Tucson, Fresno and other cities for firms that serve the Los Angeles market, the gateway to the Pacific Rim, where Asian countries now control more than 30 percent of the global economy. Arizona, Nevada and California cities By Jim GoidGuelte-Journal LAS VEGAS Selectivity is one of the keys to making Nevada's economic diversification efforts successful, a Reno banker said Thursday. "We have to encourage the firms we want and discourage the ones we don't want," said Kevin Day, vice president of First Interstate Bank of Nevada, at the Governor's Conference on Economic Diversification which concludes today at the Flamingo Hilton in Las Vegas. Day delivered his remarks at a session where panelists reviewed achievements of past diversification efforts and talked about how to maintain the momentum.

Thursday's sessions also included addresses by Gov. Richard Bryan, Nevada's U.S. senator-elect, and Lt. Gov. Bob Miller, chairman of the state Commission on Economic Development.

The commission plus a network of Fedl toir Midi Winning streak over as market rally fades NEW YORK Stock prices headed lower Thursday, breaking a three-session winning streak as Wall street's "Gorbachev rally" showed signs of fading. The Dow Jones average of 30 industrials, which had risen 61.35 points in the week's first three trading days, dropped back 11.92 to 2,141.71. Declining issues outnumbered advances by about 9 to 5 in nationwide trading of New York Stock Exchange-listed stocks, with 510 up, 936 down and 545 unchanged. Volume on the floor of the Big Board slowed to 124.15 million shares from 148.36 million in the previous session. Nationwide, consolidated volume in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 149.99 million shares.

Analysts said traders remained encouraged by Soviet leader Mikhail Gorbachev's pledge Wednesday to make significant cutbacks in military forces. Toyota unwraps Lexus PASADENA, Calif. Toyota unveiled a new luxury auto nameplate Thursday, rolling out two new models designed to compete with top-drawer European sports sedans. The cars introduce the Lexus line, which will be a division of Toyota Motor Sales U.S.A. the American arm of Japan's Toyota Motor Corp.

The cars, to go on sale in September 1989, are: The Lexus LS 400, a 4-door luxury sports sedan with Toyota's first 4.0-liter V-8 engine and such high-tech features as anti-lock brakes and a traction-control system, said to help drivers maintain control in a wide variety of road conditions. The car, which resembles the new Mercedes-Benz cars with which it is intended to compete, will cost between $30,000 and $35,000, the company said. The Lexus ES 250, a four-door "executive sedan" with a 2.5-liter V-6 engine and five-speed manual or four-speed automatic transmission that snares many components with Toyota's Vista, a car sold only in Japan. Closer in price and style to the successful Acura, the car will sell for $20,000 to $25,000. 77 k--' sA Patrick FordenGazette-Journal TESTIMONY: Masao Nangaku appears at Thursday's Gaming Control Board hearing with attorney GrantSawyer.

Conditional license urged for Dunes owner regional development agencies recruit non-gaming businesses to locate in Nevada and assist existing businesses with expansions in order to diversify the state's economic base so it is not so reliant on the hotel-casino industry to provide jobs and tax revenues. "We have to find the companies and services that fit the existing infrastructure," Day said in a separate interview after his session. Such businesses use little water, don't pollute, and pay reasonable wages, Day said. "It is better to find one company that pays 20 people each $50,000 a year than to find one that employs 50 and pays each $20,000 a year." When companies relocate, their workers also bring family members who boost the local population and "strain the taxed environment," Day said. He called Porsche Cars of North bwk.

chased the Dunes in 1987, to deal directly with Gomes, and not any intermediaries, on casino operations. Board members said they imposed a variety of tough conditions to ensure accountability from the 67-year-old businessman, whose estimated personal worth is $1.5 billion. They said an investigation raised concerns about some of his employees and they want to ensure the employees have no influence in the Dunes' operation unless they undergo background checks and become licensed. "I don't want to see these people do end runs around him," said board member Gary Amerine. "I think he (Masao) has to realize this is a different type of business.

The recommendation was sent to the state Gaming action next week. II "ipprowfed, flafttto to prod along the four-year Uruguay Round of free-trade talks under the General Agreement on Tariffs and Trade. Negotiators previously reached tentative agreements in a wide variety of areas, including freer trade in services and better protection of intellectual property such as copyrights, patents and trademarks. But the mood of delegates deteriorated seriously after an all-night bargaining session failed to break a deadlock between the United States and EEC over farm policy. Other nations that depend on farm exports warned they would withhold approval of the tentative Nabisco fees: $700 million ATLANTA Bankers will reap more that $700 million in fees for their participation in history's largest deal, according to government documents filed in the wake of the $24.53 billion buyout of RJR Nabisco Inc.

Documents filed with the Securities and Exchange Commission suggest investment and commercial bankers would get as much as $711.88 million in fees for arranging financing for Kohl-berg's $109 cash-and-securities offer for each share of RJR stock. Drexel Burnham Lambert Inc. would take home the lion's share of the fees, getting an estimated $226.88 million. Merrill Lynch Co. would receive $109.38 million, while Morgan Stanley Co.

and Wasserstein, Perella Co. would get $25 million each. By Martin GriffithAP CARSON CITY A Japanese billionaire was recommended Thursday for a conditional two-year gaming license to operate the Dunes Hotel Country Club in Las Vegas. In making the recommendation, the state Gaming Control Board turned down Masao Nangaku's request for an unlimited license, citing concerns about the conduct of some of his employees. "I'm very happy to welcome you to Nevada," board Chairman Mike Rum-bolz told Masao.

"But as a corporate businessman, you're going to have to adhere to American business standards and conform to our state's gaming rules." The recommendation allows veteran Las Vegas casino operator Dennis Gomes to continue his lease of the Dunes, and requires Masao, who pur Insider trading case involves interest rates NEWARK, N.J. (AP) A former director of the New York Federal Reserve Bank was charged Thursday with leaking confidential interest rate information to a securities brokerage. Prosecutors said it was the first insider trading case involving government securities. Robert A. Rough, 49, of Layton, N.J., received $47,000 in interest-deferred loans from the now defunct Bevill, Bresler Schulman Inc.

investment firm in exchange for the information, the indictment charged. Rough allegedly relayed the information by telephone from his executive suite at the National Bank of Sussex County and once from the New York Fed's boardroom just after a meeting, prosecutors said. Bevill Bresler made millions of dollars in government securities trades based on Rough's advance word about decisions made by the national Federal Reserve Board on the discount rate and on recommendations made by the New York Fed about the discount rate, the indictment said. Changes in the discount rate, the interest charged by the Fed on loans to banks, can have a strong impact on financial markets. Rough's attorney, Michael Himmel, would not comment in detail but said: "Mr.

Rough is going to enter a plea of not guilty and vigorously contest the charges." Rough's home number was unlisted and he could not be reached for comment. Rough was a member of the nine-member board of the New York Federal Reserve Bank from 1982 to 1984, and See INSIDER, page 9B Ex-editor pleads guilty in Business Week case NEW YORK (AP) Business Week's former broadcast editor, Seymour G. "Rudy" Ruderman, pleaded guilty Thursday to mail fraud in an insider trading scheme, admitting he illegally used advance material from the magazine to buy and sell securities. Ruderman admitted making $15,000 between January 1986 and last July in securities trades, using not-yet-published information from upcoming issues of the nation's biggest business weekly. The 62-year-old editor waived indictment and pleaded guilty to two counts of mail fraud before U.S.

District Judge Robert Ward, who released him on $100,000 bond. Ward scheduled sentencing for March '8, 1989. Ruderman faces a maximum penalty of five years in prison and $250,000 in fines on each count. Ruderman, who had broadcast market and business news for Business Week since 1981, was fired Aug. 12 for failing to disclose all his stock trades and the full extent of his holdings, in violation of the magazine's ethics code.

The first criminal charges were filed in the widening scandal last August. William Dillon, a stock broker who had been fired by Merrill Lynch for suspcious trades was charged with mail fraud. Rat spending forecast NEW YORK Research and development spending by industry, government, universities and non-profit organizations will increase 4.6 percent next year, but inflation will account for most of the rise, a magazine predicts. Research Development magazine projected in its January issue that $130.8 billion will spent on research next year, compared to an estimated $125 billion for 1988. "We expect that research and deve-lepment spending will be flat in constant dollars in 1989," said Timothy Kelly, the magazine's publisher.

The magazine attributed the leveling off to slow corporate growth, a business climate focusing on short-term profits, a wave of mergers and acquisitions, and expectations of smaller government outlays. Farm subsidy agreement falls through at trade talks mart shopping spree Reno-Sparks mart stores will participate in a shopping spree for underprivileged children Saturday as part of their national Christmas in America program. Each store will allow 20 local children to pick out $20 worth of merchandise of their choice and give them breakfast at mart. They will also receive a special present from Santa Claus. mart is working in conjunction with the Salvation Army to give homeless children from local shelters this opportunity.

The program is expected to reach 42,000 children nationwide. People Weir Toeller DON WEIR, of Don Weir Reno Dodge, has been appointed to the executive committee of the Dodge Dealers Association President's Council. He will be one of six dealers to sit on the national committee that meets semi-annually to discuss Dodge's naional advertising goals and determine the best marketing approaches for dealers. He will represent the western portion of the United States and has served for five years as Phoenix zone area president. DAVID G.

TOELLER. D.O., director of Southwest Medical Associates' Department of Occupational and Preventive Medicine, has been awarded fellowship status in the American Academy of Disability Evaluation Physicians. Fellowship status is conferred upon physicians who meet the Academy's highest level of academic requirements for training and experience. Toeller is also the chairman of Nevada's Department of Industrial Insurance Regulation Medical Review Board. BECKY CROWL, compensation and benefits analyst at Harrah's Reno, recently earned the America Compensation Association's Certified Compensation Professional designation.

The Association is a nonprofit organization which provides leadership in employee compensation and benefits programs. The designation recognizes individuals who demonstrate competence in these areas through a battery of written exams. Crowl is now a Certified Compensation Professional. Wire service and staff reports i VS5 1 would become the third Japanese investor to own a Las Vegas casino. Earlier in the meeting, board members suggested they might deny Masao's license request because of the conduct of certain employees, including company Vice President Masauki Ikumo, and Greg and Miyono Nelsen.

Rumbolz said Mrs. Nelsen, Masao's former interpreter, "added editorial comment" to his correspendence and "apparently influenced the operations" of the Dunes along with her husband. Board members contended Masauki signed his name to a blank piece of paper on which the Nelsens allegedly filled in terms for shops that lease space at the Dunes. Masao appeared at the hearing, but spoke through an interpreter since he See DUNES, page 9B other areas unless they got some progress on agriculture, which appeared all but impossible. "They don't agree to agriculture; we don't agree to other items," said Bernardo Grinspun, the chief of Argentina's delegation.

"We expect advances on all fronts." Michael Duffy, Australia's minister for trade negotiations, said he understood why some nations saw no reason to yield on matters important to the United States and EEC unless those antagonists gave them a more open world for farm trade. "As I sav.Jhey're a pair of rippers, Soviets open trade show NEW YORK Soviet leader Mikhail S. Gorbachev was missing, but Soviet entrepreneurs went ahead Thursday with the opening of an unprecedented trade show intended to usher in a new era of Soviet-American commerce. As fashion models showed off the latest trends from Moscow to the beat of American pop music, Soviet executives showed off their wares, including furs, tractors, vodka, books, toys, cars, guns and caviar. In Gorbachev's place, deputy premier Vladimir M.

Kamentsev cut the ribbon along with U.S. Commerce Secretary C. William Verity. Kamentsev hastily delivered a speech calling for the lowering of trade barriers between the United States and the Soviet Union, then rushed from the hall to catch a plane to Moscow. DrffflW MONTREAL (AP) Multinational talks on cutting agriculture supports and barriers collapsed Thursday, raising risks of a farm subsidy war and jeopardizing earlier breakthroughs in other trade areas.

"It's all over" for an agreement on agriculture, Francoise Le Bail-Elles, a spokeswoman for the European Economic Community, said Thursday evening as the session dragged on past its scheduled finish. "We do regret it profoundly," EEC Agriculture Commissioner Frans Andriessen said. Top officials from 103 nations including 90 trade ministers are in Montreal Firms paying more taxes WASHINGTON U.S. corporations paid one-fourth of their earnings in federal income taxes last year, up 15 percent since income tax laws were overhauled in 1986, private analysts said Thursday. "Tax reform is working," said Forrest D.

Marovelli of the Tax Analysts research and publishing organization. "More corporations are paying higher taxes. Fewer are avoiding taxes." Three-fourths of 1,000 corporations surveyed by the group paid higher taxes in 1987 than in 1986, Marovelli said. As a group, they contributed about $7 billion more to the federal treasury. The average tax rate for all the 1,000 companies was 24.72 percent last year, compared with 21.54 percent in 1986..