Reno Gazette-Journal from Reno, Nevada • Page 14

Reno Gazette-Journal USINESS TUESDAY OCTOBER 4. 1994 SIEVE FALCONE, BUSINESS EDITOR: PHONE. 788-6322; FAX. 788-6458 il fi 7rv October 3, 1W4 DOW(lmluMriah) NYSE AMEX SIPMidCap NASDAQ NYSE Diary SIPSOO XT' IBM rolls out machines for office, research use NEW YORK IBM this week will start selling a tidal wave of new computers for offices and scientific research. The machines range from a $4,000 workstation to some from IBM's large-scale division that start at $175,000.

In volume, it is the largest hardware rollout of the year for the leading computer maker. in oh ing three different product di isions. In each case. IBM is debuting new technology rather than rounding out product lines as often happens with fall product announcements. They corneas IBM continues to rebound from severe losses during the past three years, a period of renching change as customers increasingly moved away from centralized systems that were its most lucrative.

22 -V4 43Vi A 51H 21H -f Vs 29b -Vi 131 -Vs 80'A -ft 8ft 9V 47H -H 46 9'4 Vt 21ft Vk -Vj 20V Vt 44 ft -Vis 3014 -Vt 51'A ft 5H 5 24 Vt 1 16ft -Vt 19H -Ve 10 Vt 17V2 -Vs 25 Vi Amfed Financial Amserv Inc. BankAmerlca Cloroi Coeur d'Alene Comstock Bank R.R. Donnelley Echo Bay First Interstate FirstMistGold First Western Fin. FMC Gold Gannett General Motors GlamisGold Granite Const. Harding Nevada Power Newmont Pacific Telesis J.C.

Penney Radica Games Reno Air Rotech Santa Fe Pac. Gold Sierra Pacific Sierra Tahoe Southwest Gas US Bancorp Treasury bills: Interest rates on short-term Treasury secunt ies rose in Monday's auction to the highest level in three years. The Treasury Department sold $12.5 billion in three-month bills at an average discount rate of 4.92 percent, up from 4.79 percent last week. Another 1 2.4 billion was sold in six-month bills at an average discount rate of 5.38 percent, up from 5.22 percent. In a separate report, the ederal Reserve said that the average icld for one-year Treasury bills, the most popular index for making changes in adjustable rate mortgages, rose to 5.92 percent last week from 5.85 percent the pre ious week.

Bonds: Treasury bond prices dropped and yields rose to two-year highs on word of an unexpected surge in factory activity and higher prices for raw materials, news that fanned investors" inflation fears. The price of the Treasury's main bond declined 7-16 point, or $4.38 per 1 .000 in face value. The price drop pushed up the yield on the bond to 7.85 percent, up from 7.8 1 percent Friday. Advances: 841. Unchanged: 67 Associated Press NEW AIRFONES: GTE Corp.

Monday introduced a new service that allows people on the ground to call airline passengers at their seats. For now, the Airfone is available only on USAir and Delta's shuttle services to Washington and Boston and United's New-York to Los-Angeles route. U.S. factory output takes big jimp facturers, said Ray Bacon of the Nevada Manufacturers Association. "I haven't talked to anybody that's having any substantial reccs-sion-type issues," he said.

"Although, several are hav ing a difficult time finding good emplovees. "But exports appear to be growing." Bacon said. "NAFTA is having a positive effect." The North America Free Trade Agreement (NAFTA) was enacted late last year, eliminating most trade barriers between the U.S., Mexico and Canada. Bacon said some manufacturing growth in the state is leveling off, but part of it is due to seasonal factors. "1 don't hear any comments about anybody having any major problems." he said.

The National Association of Purchasing Management said its index of manufacturing growth rose to GAMING TOURISM Harrah's looking at airline gaming MEMPHIS. Tenn. Harrah's announced Monday that it is planning a joint venture ith a Las Vegas company to prov ide interactiv ideo gaming on international airline flights. Harrah's said that it would manage the joint venture. Sky Games International, a subsidiary of Creator Capital would prov ide software that allow air passengers to participate in casino-type gaming through multi-channel, in-seat video systems.

Draw poker, deuces-wild draw poker, blackjack, keno, slot reels and bingo currently are available, ith play ers able to sw itch among games on a single screen. Recent legislation prohibits gaming on airline routes to or from the U.S., but the two companies plan to pursue opportunities in jurisdictions where gaming is permitted. Harrah's said. Failed Landmark to be razed in Nov. LAS VEGAS The closed Landmark hotel-casino ill be imploded in November, making way for a 2 1 -acre parking lot.

The Landmark was built in the early 1960s and for a time was owned and operated by Howard Hughes. Although a talked-about curiosity, the Landmark never really caught on ith tourists or locals. Robert Fielden of Robert A. Fielden Architects said the Landmark a "useless project" when it wasoriginally designed and never served its original purpose. "It was filled with asbestos and should have been torn down a long time ago," said Fielden.

who works in urban design planning. "The rooms in the hotel were small, and people refused to stay there." fv Vi I I 2 1 41 lew lo 74 TuUl ittutt: 2,859 Compoiilc volume: 336,302,300 mi comp. 323.7U.tlO The purchasing index, which offers some of the freshest insight into the overall economy's direction, posted its 13th consecutive monthly gain in September. Ralph G. Kauffman, chairman of the NAHM business survey committee, said the surge was partly caused by seasonal factors.

But he said the main reason the index was higher is an ebullient economy. "Our members continue to see strong demand for products," said Kautlman, who also is procurement manager at Oryx Energy Co. The ed's series of interest rate increases, which began last February, have compelled banks to raise rates they charge customers for mortgages, car loans and credit cards. But intense competition in the banking industry has kept them from raising rates too fast or too much. Staff and wire service reports 11 1 i UJ V.

a Tim DunnGaetle Journal the program is a lifetime loan to be repaid from the Vega's estate, Michael Vega said. "To my knowledge, there is no other program like this," said David Morton, Reno Housing Authority executive director. "We tailored it to the situation we faced in Sparks." In Sparks, only 59 percent of homes were owner-occupied in 1990. The program is a small effort to increase that number, said Greg Evangelatos, Sparks community development director. The program "demonstrates how federal funds can be used in a cost-effective way that doesn't add bureaucracy," Evangelatos said.

All funds for the Sparks First Time Home Buyers program have been allotted, but Sparks and Reno are working with the Reno Housing Authority on another program with FIB. Applications for Hope III are available at the Reno 1 lousing Authority's administrative office at 14(X) Silverado Blvd. prices down for local service. But Balhoff thinks local rates could increase slightly over time as local phone companies lose revenue to new competitors. Ameritech, which wants regulatory permission to provide long-distance service, used MCTs announcement to underscore the need for regulatory symmetry.

"We look forward to facing off in the marketplace on an equal regulatory lixrting," said Iwrcnce Strick-ling, a vice president. 58.2 percent in September from 56.2 percent a month earlier, and was the highest since July 1988. Any reading that exceeds 50 percent reflects an expansion from the previous month. Economists said the data was further evidence that factories still are expanding at a brisk pace because higher interest rates haven't put much of a dent in consumer spending and demand for products remains strong. The full effect of higher borrowing costs may not be felt by most Americans for a few more months, they said.

Financial markets weakened on the news, as investors assumed it meant the Fed now has more justification to raise rates again in the near future to contain the inflationary threat posed by an expanding economy. Rising rates hurt the value of stocks and bonds. V' income, which is $36,400 for a family of four. The down payment requirement was only 1 percent. The City of Sparks used a federal grant for interest-free loans that reduced down payments and covered up to 20 percent of mortgages.

The Housing Authority bought and refurbished 1 1 homes under a $1 million line of credit from FIB and sold the homes to eligible families. FIB provided the mortgage loans at reduced interest rates. Habitat for Humanity screened the families, and the Community Serices Agency provided credit man-agement and home purchasing counseling. 'The program helped us get a much nicer home in terms of what we could afford," Jennifer Vega said. Michael Vega, 37, works at Raley's supermarket.

Jennifer, 32, is a part-time student at Truckee Meadows Community College. Their cast Sparks home was listed for 109,000. The down payment from companies to originate and terminate long-distance phone calls, analysts said. Long-distance companies typically pay 45 cents on every dollar of long-distance revenue to local phone companies for this service. By skirting those fees "prices for long-distance service should go down, so MCTs customers would benefit," said Michael Balhotf, an analyst with U'gg Mason Inc.

Some analysts believe added competition also could drive consumer i.i;t.!;iMi:i.;:ren Managers' index purchasing The purchasing managers' index tracks overall business activity of more than 300 industrial companies. 50 ONOJFMAMJJAS 1993 1994 Soura National Auooaoor ol Purchasing Managamam AP TOURISM Officials press for expanded Reno air service By Susan Skorupa GAZETTE JOI RNAL Reno airport and tourism officials plan to follow up a presentation to top airline officials last weekend with more statistics and information designed to encourage expanded air service to Reno Cannon International Airport. "From here, we're going to go back to knocking on doors," said Jack Walther, a board member of the Airport Authority of Washoe County and the Reno-Sparks Convention Visitors Authority. Airline executives who attended the Rcno-Tahoe Air Service Summit Conference were interested in the market, Walther said. Several of the officials from the five airlines represented had never visited Reno.

"They don't have an idea of the impact of the National Bowling Stadium," Walther said. The conference was part of local efforts to improve air service into the Reno-Tahoe area in anticipation of the opening of the bowling stadium early next year. The facility's first event is expected to draw some 200,000 visitors and participants between February and July. Other major events are scheduled at regular intervals through the year 2000. American, Delta, Southwest, Reno Air and United Express airlines sent representatives to the Friday-through-Sunday conference.

At a Saturday presentation, they heard local speakers talk about the area's growth and the opportunities for new and expanded air service. The representatives also watched a videotape highlighting area special events, airport facilities, business and industrial growth and gaming and tourism expansion. The RSCVA, the airport authority and the Reno-Tahoe Air Service Task Force had hoped to attract more airlines, said Michael Houghton, RSCVA marketing vice president. "But the quality of representatives we got and the carriers represented are certainly valuable to the Reno-Tahoe area, 'he said. "Generally, we had representatives who had not had exposure to our market before.

We were able to present our story to some fresh ears and our show to some fresh eyes." While it's premature to gauge the long-term impact of the presentation, Walther thinks all of the airlines represented will reconsider what they can do in the Reno market. "They were able to see first-hand what we've been telling them about what's going on with the bowling stadium and Project he said. Houghton said airport and tourism officials will continue ongoing discussions with other airlines about new air service as well. The economy: New evidence it's getting stronger. Ameriean manufacturing surged last month to the highest level in more than six years, a widely followed industrial survey showed Monday in powerful new evidence that the economy is getting stronger.

The data was all the more remarkable because it suggested the economy has yet to feel any acute pain from higher interest rates, which the Federal Reserve has raised five times this year to slow growth and thwart inflation. The strengthening economy has been good new? for Nevada manu GAMING Rhode Island told to allow tribal casino WASHINGTON AP) The Supreme Court refused Monday to let Rhode Island officials bar the Narra-gansett Indian Tribe from placing a gambling casino on tribal land, acting on the first day of its new term. The justices' action was taken without comment after 10 other states, including Nevada, had told them Rhode Island's loss in lower courts jeopardizes the rights of all states with federally recognized Indian tribes within their borders. The court also asked the Clinton administration for its views in a high-stakes battle from Florida and Alabama over regulation of gambling on Indian reservations, acting on the first day of its new term. The court asked Justice Department lawyers to say whether they think federal courts have the authority to oversee negotiations between tribes and state officials about starting such gambling operations.

Federal appeals courts have split on that aspect of a 1988 federal law, the Indian Gaming Regulatory Act. It gave tribes new freedom to run big-money casinos, bingo halls and other gambling activities on their lands. The law requires federally recognized tribes to negotiate with the respective states before starting some types of on-reservation gambling. States are required to negotiate in good faith, and the law authorizes a tribe to sue a state in federal court if it fails to do so. That's what happened in Florida and Alabama, where the Seminole and Foarch Creek tribes accused state officials of not negotiating in good faith.

Both states contended that the Constitution's 11th Amendment shields them from such lawsuits. At issue in the Rhode Island case was state officials' contention that the 1 988 law doesn't apply in their state because they and representatives of the Narragansett tribe had reached an agreement 10 years earlier on the use of Indian lands. That agreement had been enacted into federal law by Congress. The Narragansett tribe wants to build a $40 million casino. The state sued to block development.

MCI wants to WASHINGTON (AP) The long-distance company MCI is taking its first step into the local telephone business, asking regulators in five states for permission to provide service. The move comes as local and long-distance telephone companies try to invade each other's businesses. MCI Metro, a subsidiary of MCI Communications filed requests with state regulators to provide residential and business ser FIRST-TIME BUYERS: Michael and Jennifer Vega with their son, Manuel, 4, in front of their home. Sparks program helps home buyers Ameristar 7Vt Altar 7 Bally Gaming 1314 Vt Bally Enter. 7V2 Boomtown 1 6V4 -V2 Caesars World 43ft -v Casino Data Sys.

224 A Circus Circus 21 Vt At Grand Casinos 13 -V2 Harveys 12ft -Vt Hilton Hotels 594 -ft IGT 20V2 -Vt Jackpot Ent 9ft -Vs MGM Grand 303 -ft Mikohn Gaming 10ft A Mirage 21 Vt -Vt Monarch 714 -ft Primadonna 30 PromusCos 33ft Vt Rio Hotel 13V -Vb Sahara Gaming 5Vt ft Sands Regent 9 "2 -V2 Showboat 13V ft Sodak 18 United Gaming 7V -ft USA Capital Composite Gaming Index 136 51 -0 61 By Susan Skorupa GAZETTE-JOLRNAl. Tor Michael and Jennifer Vega, home ownership was still a couple of years away when they applied for the Sparks irst Time Home Buyers program last winter. The couple, with three young sons, wanted to save enough money for a 5 percent down payment and closing costs with a "little left over," Michael Vega said. Instead, the Vegas are among 1 1 families who bought homes through the program, sponsored by the city of Sparks, the Reno Housing Authority and First Interstate Bank. "We were excited," Jennifer Vega said about the initial interview with the Housing Authority in December.

"We had hoped we could save enough to buy. We were ready we had our credit in order and a little money in the bank. It was an opportune time." The program was designed for Sparks residents who earn up to 80 percent of Washoe County's median provide local telephone service in 5 states Nevada's July Table game wins at all non -restricted locations: Twenty-one Craps I $354! million Roulette $16 million Kp.no Its? ft million Pal Gow Poker $11.8 million Source Nevada Gaming Control Board Gazette Journal vices, officials said Monday. The states arc Washington, Mary land, Illinois, Michigan and Pennsylvania. West currently provides local phone service to Washington, Bell Atlantic to Maryland and Pennsylvania, and Ameritech serves Illinois and Michigan.

If approved, MCI stands to gain a piece of the lucrative local phone market, which brings in $80 billion a year nationwide. It also would let MCI bypass paying costly fees to local telephone.