Reno Gazette-Journal from Reno, Nevada • Page 17

Today's tip 6B Saturday, October 1990 Reno Gazette-Journal BUSINESS EDITOR: STEVE FALCONE. 788 6322 me Simplify your life, order "Direct Deposit: A Consumer's Guide" (Item 441W) from the Consumer Information Catalog, Pueblo, Colo. 81009 for 50 cents. Information on electronic funds transfer. America West will match Southwest's Vegas fare Stocks tocks xxl Oct 5.

1990 ow Jones Ind. fi) ose: 2510.64 Fri Dow By Wayne MeltonGaiette-joumai America West said Friday it will lower Reno-Las Vegas rates on a limited basis to match fares at Southwest Airlines, its new competitor on the route. When Southwest enters the Reno market Nov. 15, America West will match its unrestricted one-way rate of $59 down from the current $135. Southwest's rates' will be available on all seats on its six daily round-trip flights; America West's new rate will be available for a limited number of seats on each of its eight daily round-trips.

All remaining America West one-way seats will sell for $79 and $99, depending on how far in advance reservations are made and other restrictions. And the lower fees will be offered for each flight on a first-come basis. After each of America West flight's lower-priced seats are sold, the airline will begin selling its remaining seats at the higher rates. The higher fares will be offered "to save seats for travelers during peak periods," said Marilyn Hoppe of Phoenix, America West's vice president for pricing and revenue management. The amount of lower-cost seats hasn't been announced.

Those totals will vary per flight depending on seasonal demand and other considerations, Hoppe said. The higher rates will be offered to help ensure there are enough seats "for that frequent flyer at the last minute," Hoppe said. "We're trying to get all the flights full and have room for everyone." And like its competitor, America West will offer special "fun-fare" rates of $39 on a restricted basis when reservations are made at least 21 days in advance and other restrictions are met. America West's 21-day advance-reservation, round-trip fares will reach as low as $78 down from its current $270. Also on Nov.

15, Southwest will start daily non-stop flights to Oakland at a regular unrestricted coach fare rate of $49. Skywest Airlines, the only non-stop Reno-Oakland carrier, has not announced if it will lower its current $113 one-way rate. volume: 153.4 rriwion JrVltllLoo -r: "iilil2700 2650 'Tt? 2550 v-z 2350 2300 htaiih) MM 1 Muk -fs I Russell YipGazette Journal NEIGHBORHOOD THEME: Owner Joan Daane works at the new Port of Subs Area couple opens 50th Port of MTWTF Complete stocks pages 4-5B Deficit woes dampen Dow NEW YORK Stock prices fell Friday, but the market managed to minimize the damage from an early selloff that followed the rejection of a government budget plant'Analysts said the news dismayed investors who had pinned hopes on sorrie, tangible signs of progress in the struggle to narrow the government's chronic deficit. Declining issues outnumbered advances by about 3 to 2 in nationwide trading of New York Stock Exchange-listed stocks, with 598 up, 893 down and 464 unchanged. Savings bonds hit a high WASHINGTON Sales of U.S.

savings bonds totaled a three-year high of $7.77 billion in the fiscal year ending Sept. 30, the Treasury Department said Friday. Boosting the total were sales of $544 million in September, a 3 percent advance over the amount sold in September 1989. At the same time, redemptions in fiscal 1990 totaled $7.54 billion, a 1 percent drop from fiscal 1989. The value of savings bonds held by Americans rose 7 percent during the vear, finishing at an all-time record $123.9 billion, up from $115.7 billion in fiscal 1989.

Savings bonds currently earn interest at a rate of 7.01 percent when held five years. Sierra Pacific dividend The Sierra Pacific Resources board of directors meeting in Reno this week approved a quarterly dividend on common stock of 46 cents per share, payable Nov. 1 to stockholders of record at the close of business on Oct. 17. The dividend continues the rate that was established Oct.

1, 1989. Sierra Pacific Resources is the parent company of Sierra Pacific Power Sierra Energy Lands of Sierra and Great Basin Energy Co. Work performance course A course providing human resource managers and supervisors with guidelines to follow when addressing performance problems will be offered by the University of Nevada, Reno. "Consulting and Coaching for Improved Work Performance" will meet from 8:30 a.m. to 4 p.m.

Tuesday in the university's Midby-Byron Center. Cost: $125. Registration: 784-4062. People STEVEN R. DALRYMPLE has been appointed assistant branch manager of the Sacramento office of KennedyJenks Chilton, Consulting Engineers and Scientists.

He is a registered civil Dalrymple engineer in California and is an Active member in the American Society of Civil Engineer's American Water Works Association and National Water Works Association. The firm recently earned an Honor Award in the Consulting Engineers Association of California 1990 Engineering Excellence Competition for its project work at the Reno-Sparks Wastewater Treatment Facility. LJ GEORGE PEEK of Reno is the 1990 recipient of the Nevada Association of Realtors' Joe Nolan Memorial Award. The award is given each year to a Realtor who has demonstrated outstanding Peek Sep. 7th Economist: Rise proves U.S.

economy in recession By Oswald JohnstonLos Angeles Times WASHINGTON The slumping U.S. economy lost tens of thousands of jobs in September and caused unemployment to rise to 5.7 percent, the highest jobless rate in more than two years, the Labor Department reported Friday. Although last month's rate was up only slightly from August's 5.6 percent, unemployment has increased a full 0.5 percentage point since June in a clear indication the economy has entered what most analysts agree is a full-blown recession. In another signal of economic slippage, private sector employment declined by 67,000 in September, while layoffs of 41,000 temporary census workers helped shrink federal, state and local government payrolls by 34,000, for a combined loss of 101,000 non-farm jobs. "You can take these numbers at face value," said economist Martin Mauro with Merrill Lynch in New York.

"There's nothing deceitful here. The economy was in recession in September, and the only question is when it began." Allen Sinai, chief economist with the Boston said that the decline had already begun when the Persian Gulf crisis caused oil prices to soar beginning in August, creating inflationary pressures that have further dampened the U.S. economy. "This one is easy to read," Sinai said. "The economy accelerated its slide in September, and I don't see how anyone can interpret this any other way than recession.

And it's not caused by Iraq. This one was baked in the cake before Iraq." Indeed, the economy's decline had been gathering momentum for months before the Aug. 2 invasion of Kuwait. Job creation in the private sector has slowed rapidly since early summer, from 162,000 new jobs in June, to 18,000 in July, to only 7,000 in August. The manufacturing sector, which shed another 65,000 factory jobs in September, has been contracting steadily since January 1989.

A total of 520,000 production jobs have vanished during the intervening 18 months, the Bureau of Labor Statistics said. The construction industry, savaged by the coast-to-coast collapse of commercial real estate markets, lost another 20,000 See JOBLESS, page 3B aren't smiling outweighed by the higher prices they're getting for calves, Myer said. The size of the nation's cattle herds moves in cycles and currently seems to be on the increase with demand driving up the prices of stock. The higher costs to feed the animals during a drought, however, could drive some Nevada cattle producers to cut their herds this year, he added. "It depends on the producers," Myer said.

"If the pastures are short and runoff is low, they might reduce their herds. But when the prices they're getting are high, they tend to build up herds and buy hay wherever they can to feed." While the drought is not forcing a flight from Nevada farms, Fulstone said the lack of water and its ensuing problems is taking its financial toll on some. "Some people who were in trouble during the third year of drought are now in worse shape," he said. "People are not going broke and walking off their places, but they're getting hurt and cutting back." TWA moves to cut losses ST. LOUIS Trans World Airlines Inc.

sent layoff notices to 430 employees Friday to cut its losses further in an industry hit hard by rising fuel prices and the slumping economy. "It's primarily fuel-related," said spokesman Don Morrison. "But it does have another side. The whole industry is directly affected by a general downturn in the economy. When the economy slows down, as it is now, it has an effect on discretionary travel." Three of TWA's rivals USAir Group Pan Am Corp.

and Midway Airlines Inc. also have announced layoffs to cope with the problems gripping the industry. In the United States, TWA is paying more than 90 cents a gallon for jet fuel nearly twice as much as before Iraq invaded Kuwait, Morrison said. at Mill and Kietzke. Subs franchise day from interested franchisees," she said.

Since 1986, the franchise operation has won recognition from Venture and Entrepreneur magazines. Currently, the company is opening about two franchises per month and projects $15 million in sales this year. Average potential sales per unit is about $250,000 to $300,000 annually. For the Daanes, who opened franchise No. 50 on Sept.

20, Port of Subs provided an opportunity to get into an interesting business of their own. Mike Daane said he's been self-employed for several years, but this gave his wife a chance to own a business. "She said she'd give it a try, so we went for it," he said. "Owning your own business there's something about that. It makes a statement.

And it's always an education opening a new business." See SUBS, page 3B up but farmers vada has reduced the amount of pasture forage, so the price for alfalfa has been high this year." Water is a limiting factor in all agricultural production, added Bud Lies, of Nevada Agricultural Statistical Services at UNR. "This year is turning out to be a little poorer than other years," Lies said. "The water has not been available." As of September, alfalfa production in Nevada was running about 4 tons per acre, Lies said, a little below normal. Row crop production looks like it will be about normal, he added, but final figures for 1990 production of all crops won't come until later this year. Cattle inventory, which was up about 10 percent to 570,000 head in January 1989 over the previous year, could be down a little this year as ranchers cull their herds because of the high costs of feed.

While beef producers have had to pay more for the feed, the added cost is partly Manville payments freeze NEW YORK A federal judge Friday again extended a freeze on payments to asbestos disease victims by the Manville trust fund pending completion of a court-ordered reorganization. U.S. District Judge Jack B. Weinstein said the month-long extension was needed to finalize an agreement on a restructuring in which Manville Corp. would inject up to $520 million over seven years to reverse a cash shortfall.

The shortage has jeopardized compensation payments to tens of thousands of victims. The agreement to refinance was announced last month. Payments by Manville would begin late next year. It was the third month-long extension by Weinstein on the payments freeze, which applies to all claims made since the first order in August or until the new Nov. 6 expiration date.

etbook. They make their franchise fees, but there's a lot of support from the home office. "Some competitors have very fast growth, but the franchisees are out there on their own winging it." The Larsens purchased their first two "sub" shops in 1976. John Larsen had helped the original owners with accounting and Pat Larsen developed some marketing programs for the shops. In 1986, with nine Port of Subs' locations, the Larsens decided to franchise the restaurants.

"We learned, after much research, that all of the right elements were in place for a successful franchise," said Pat Larsen. The company now has 30 shops throughout Nevada, as well as shops in California, Arizona and Washington. Another 10 to 12 locations are due before the end of the year. Administrative offices are in Reno. "We have inquiries coming in every alfalfa prices without replanting.

If a field dies out from drought or other factors, new planting will take about three years to reach normal production. "So the drought now is affecting us three years down the road," he said. While the price for alfalfa currently is running $100 or more a ton, compared with about $70 a ton in years past, Fulstone said, some farmers could be looking at production shortfalls of 25 percent this year because, lack of water has prevented a third cutting of the hay crop. Farmers with private wells to provide water later in the season, wtfl get higher production, said Fulstone, who is a past president of the Nevada Farm Bureau, but they'll have higher costs because of the added expenses of pumping from the wells. "If farmers have the water, the market for alfalfa is very good," said Gordon Myer, associate professor of agriculture economics at the University of Nevada, Reno.

"The drought in California and Ne- rrows to expand LAS VEGAS Golden Nugget Inc. announced Friday it was borrowing another $100 million to expand and improve The Mirage hotel-casino, which opened last November at a cost of $630 million. The company said it will use the money for a number of projects, including an expansion of the pool area, the conversion of some rooms into suites and the completion of a pool to house a dolphin exhibit. Mirage spokesman Alan Feldman said the improvements were needed because business has been better than expected at the Strip property. The $100 million, borrowed for 10 years at 13 percent, will be added onto the hotel's first mortgage, which Feldman said would make it a $316 million mortgage.

By Susan SkorupaGazette-Journal The newest fast-food restaurant to open in the Reno area has a special designation pointing up the success of a local franchisor. Port of Subs newest location at Mill Street and Kietzke Lane is the 50th restaurant for the sandwich shop chain originated by John and Pat Larsen. Franchisees for the new restaurant are Mike and Joan Daane, who decided to open their own Port of Subs partly because of the chain's success in the local market. Mike Daane has designed and constructed about 40 of Port of Subs' 50 locations. "It's one hell of a quality product," Mike Daane said of the Port of Subs' submarine sandwich menu.

He also likes the company's method of growth. "The owners are very interested in each franchise's success," he said. "That goes to the heart more than to the pock- Drought sends By Susan SkorupaGazette-Journal A fourth year of drought has driven up prices for Nevada alfalfa, but the lack of water has cut production for some farmers and pushed up the cost of production for others. And scanty grass on summer ranges has forced some cattle ranchers to bring their stock in early to nourish them with the expensive hay. The lack of water also has affected production of row crops such as garlic and onions, agriculture experts say.

"Production is down substantially," said Dave Fulstone, a Yerington farmer. "A lot of farmers have had to leave alfalfa fields idle or let the fields die. Especially if they don't have wells." Unlike most crops, alfalfa does not have to be replanted after each cutting, Fulstone explained. Normally, farmers get three cuttings a year from their plants, which generally will last about 10 years "The Golden Pheasant Restaurant requests the honor of our presence at a dinner to celebrate National Restaurant Week. $45 per person.

R.S.V.P. Black tie optional." service to Realtors and to the community. A Realtor since 1975, Peek was chosen for his contributions to the Realtor organization on the local, state and national levels and for his service to the Reno community and the state of Nevada. In 1991, Peek will serve the National Association of Realtors as regional vice president representing the states of Nevada, Arizona, Colorado, New Mexico, Utah and Wyoming. He was named.

Realtor of the Year by the state association in 1987. Wire and staff reports.