The Kokomo Tribune from Kokomo, Indiana • Page 16

Business Friday, June 1, 1990 Kokomo (Ind Tribune 17 Gerald Greenwald Chrysler exec quits HIGHLAND PARK, Mich. Chrysler Corp. Vice Chairman Gerald Greenwald, heir apparent to Chairman Lee A. lacocca, is leaving the No. 3 U.S.

automaker to lead the buy-out effort by UAL Corp. unions for United Airlines. Analyst say Greenwald's move will provide immediate benefits for the union's effort, which had lacked a credible executive needed to secure bank financing. Greenwald's selection ended two months of searching by the union, following the resignation of UAL chairman Stephen M. Wolf.

However, at Chrysler, Greenwald's departure has stirred uncertainty for the company, which is attempting to recapture lost market share and boost profits. He is the third executive to leave the company in two weeks. New Dow target set NEW YORK (AP) With the return of bull-market enthusiasm that has carried stock prices to new highs in the past few Wall Street is setting its sights on a lofty target the 3,000 level in the Dow Jones industrial average. In less than five weeks from April 27 through the close Wednesday, the "Dow" the oldest and best known measure of trends in stock prices surged up 233.51 points, or 8.8 percent. From Wednesday's record reading of 2,878.56, it needed only a 4.2 percent advance to reach 3,000.

Industry threatened NEW YORK (AP) "Draconian" clean-air proposals under debate in Congress threaten the the U.S. steel industry's recovery from its severe slump of the early 1980s, industry leaders said as they gathered for their annual meeting. Also threatening the industry's health are the high cost of capital in the United States and foreign competition, leaders of major U.S. steel companies said Wednesday at the American Iron and Steel Institute meeting. Trial continues NEW YORK (AP)-Ivan Boesky's chief trader testified that John Mulheren Jr.

temporarily held large blocks of securities for Boesky in 1985 in an alleged scheme to help his former friend avoid taxes and securities rules. Michael Davidoff, testifying Wednesday at Mulheren's trial in U.S. District Court, offered a trade-by-trade breakdown of an alleged pact with Boesky's Seemala Corp. that forms the heart of government's case against Mulheren. The government has said Mulheren entered into the trades with Boesky in exchange for information about pending corporate takeovers.

Mulheren is charged with 41 counts of conspiracy, mail and securities fraud, and record-keeping violations. Poland eyes stocks WASHINGTON (AP) -Aftera more than 40-year lull, stocks and bonds could be traded again in Warsaw this year if necessary legislation is approved, two visiting Polish officials said. The pair, winding up a two-day meeting with U.S. Securities and Exchange Commission officials, said Wednesday they are drafting Poland's first securities regulations since the Communists took power after World War II. Deadlock stands PARIS (AP) U.S.

and European officials failed to break a deadlock over government payments to farmers, throwing further doubt over ambitious plans to overhaul the world trading system. European officials resisted American attempts to use a meeting of the 24-nation Organization for Economic Cooperation and Development to give a political push to the stalled Uruguay Round trade talks. "We have hit a snag in our negotiations," U.S. Trade Representative Carla Hills said Wednesday at the end of lengthy discussions with officials of the European Community. Industrial park developed with takes By Dave Phillips Tribune staff writer LOGANSPORT, Ind.

Dedication ceremonies were conducted here today for a 175-acre industrial park and new manufacturing facility for Federal-Mogul a maker of electromechanical and electrical components for the automotive industry, and lighting products for heavy duty trucks. Construction crews have already broken ground on the new plant. The Logansport-Cass County Municipal Industrial Park is the result of a joint city-county effort financed by the Cass County Economic Development Income Tax, which was passed in 1989 and is expected to bring in about $189,000 per year. Cass County and Logansport have agreed to pool their receipts from the tax to spur the park's development. Located along Ind.

29, south of Logansport, the park is the first in the state to use such financing, according to David B. Yount, president of the Logansport Economic Development Foundation. The city plans to sell a $3 million bond issue to finance further development of the park. Revenues from the CCED tax will be used to pay off the loans. Federal-Mogul's foot plastic injection molding plant is scheduled to begin operating in October.

The company plans to consolidate its molding operations here with equipment acquired from a recent acquisition of Syracuse, N.Y.-based R.E. Dietz Co. at the new plant. The consolidation will add approximately 50 jobs to the 300 workers the company now employs here. No other tenants have been signed for the park, but development officials say several companies are discussing options.

Las Vegas hotel opens as world's largest By Robert Macy Associated Press writer LAS VEGAS (AP) The company that carved a niche for low- rollers in the nation's high-stakes gambling capital now presents the world's largest hotel in the form of a castle. The June 19 opening of the $290 million, Excalibur Hotel will mark a milestone for Circus Circus Enterprises Inc. The company, which started with a struggling Strip hotel- casino 16 years ago and now values itself at $1.6 billion, has become the envy of the gaming industry with a strategy focusing on family entertainment. The giant castle at the south end of the glitzy Las Vegas Strip is the brainchild of gaming executive William Bennett, who amassed a personal fortune of $500 million catering to Middle America's gambling tastes. The Excalibur is anchored by four, 28-story towers and covers more than 70 acres.

It will replace two other Las Vegas properties that have held the title of the world's largest hotel. The Las Vegas Hilton held the record with 3,174 rooms, according to the Guinness Book of World Records. That figure was eclipsed in recent weeks when the Flamingo Hilton opened a new wing, giving that Strip resort 3,530 rooms and brief claim to the title. The new Mirage Hotel here just missed the mark with 3,054 rooms. Bennett and a former partner, William Pennington, bought the Circus Circus hotel-casino in 1974 after the late billionaire Howard Hughes kept raising the ante on their first choice, the Landmark Hotel.

Today, the Landmark is struggling, while Circus Circus has become an industry giant. "At the time, I thought the Landmark was the best of the two properties," Bennett said in a rare interview recently. "I think I was wrong. I lucked out." The 65-year-old Bennett owns 18.2 percent of the public company, which had revenues of $522 million last year. When the Excalibur opens, parent Circus Circus will have a total of 11,320 rooms in Nevada, including two hotels in Las Vegas, one in Reno and two in Laughlin.

By comparison, Atlantic City's 12 major hotels total 8,100 rooms. The Excalibur will give Las Vegas 75,000 hotel rooms. "The new room count will give Las Vegas almost twice that of Manhattan's 47,000 rooms, with Circus Circus-owned properties offering 11 percent of the total room base in Las Vegas," Excalibur general manager Bill Paulos said. Even Bennett's vivid imagination couldn't have dreamed up the scenario that evolved from his purchase of Circus Circus. He was forced, because of the nature of his original property, to target families rather than high-stakes gamblers.

When Bennett bought the Circus Circus hotel-casino, it was a gaming mishmash catering to high-rollers as well as families with kids. "It was awful," Bennett recalled. "They had children's things mixed in with the gaming. They had bumper cars where we now have the keno lounge." Midway games included one in which players tossed balls at a target, trying to knock a scantily clad woman out of bed. Bennett and Pennington wanted the Landmark, but the eccentric Hughes, who owned several Las Vegas hotels at the time, raised the price from $15 million to $16 million, then jumped it to $20 million.

Bennett and Pennington passed. After settling for Circus Circus, they built a separate midway section for kids away from the gaming and provided free circus acts. The success of Circus Circus has nudged Las Vegas toward other family-oriented features, transforming the gaming capital into what local promoters like to call a "total resort destination." "The Excalibur will not be as family-oriented, but there will be plenty of things for everybody," Bennett said. "The rooms will be more expensive (an average $45 per night, compared to $33 at his other properties). It will be a more ostentatious setting.

It's a definite upgrade." The Excalibur casino will offer gamblers higher limits and may The Excalibur Hotel in Las Vegas will open June 19 as the world's largest hotel provide gaming credit something that's taboo at Circus Circus. The castle's 500,000 square feet of entertainment space includes a Renaissance-era village, 12 food outlets and a casino the size of four football fields, with 2,630 slot machines. Shows will feature a medieval flair, with live jousting. Diners in the Great Hall, a 900- seat amphitheater for floor shows, will feast without utensils. Other attractions include an arcade with archery and other themed game booths, strolling minstrels and a Sherwood Forest- inspired wedding chapel.

Off the theme will be a pair of motion-simulator theaters recreating an Olympic bobsled ride, roller coaster, runaway train and a frantic ride down an icy mountain road. Keeping the enterprise moving will require a staff of 4,300. The giant castle with its towering spires is in contrast to most of the glitzy showplaces along the Strip. "I've had in my mind for six or seven years to build a castle," Bennett said. "I had decided our presence in Las Vegas was just not big enough.

I thought the only way to build a successful property was to build a big property." Bennett studied old renderings of castles, then made several visits to castles in England and Germany with staff members to soak in the architectural and environmental detail. Company officials hired trade- (AP photo) mark experts to ensure their ideas didn't clash with Disney castles at theme parks in California and Florida. "We came up with more than 20 ideas that wouldn't step on the toes of the Disney people," he said. The Excalibur fas built mainly with cash the company had on hand. It sits on 77 acres of a 117- acre tract the company bought several years ago.

Bennett says the company may end up building on the remaining 40 acres. "We're already thinking about what's next, "he said. Settlement taxes depend on case I have a discrimination suit that's pending against a former employer. The dollar amount I could receive from this case is quite sizable. Will I have to pay income tax on it? C.L., Denver It depends.

There have been several recent court opinions with cases involving discrimination awards. In a federal district court case, money received in settlement of a discrimination action was considered to be back pay and was includible as taxable income. Meanwhile, a court of appeals case decided that an amount received in a similar discrimination suit did not result in taxable income. If the settlement is considered compensation for personal injury damages, it would not be taxable. Compensation for lost wages, on the other hand, would be taxable income.

Each case stands on its own. My daughter has a contract with her employer and me stating that all the income received from her job this year is to be put into a trust. The funds will not be released by the trust until her 25th birthday. When is she required to start filing an income tax return? Can the income be deferred? M.N., Cleveland Compensation earned by a minor that, contractually, belongs to a parent or a trust does not shift the tax liability to the parent or the trust even if the parent or the trust retains the money. Minors are treated just like any other individual for income tax purposes.

Therefore, the compensation is considered to be gross income of the minor and if the minor meets the gross-income test, a return must be filed for that year. The return may be prepared by the minor, the guardian or any other person responsible for the care of the minor's person or property. My wife is taking law classes to better her current employment position and, eventually, she will receive a law degree. The classes are helping her with her job, but they are not cheap. Are any of these classes deductible? 0 White Plains, N.Y.

Probably not. Expenses for By George W. Smith education that are part of a program of study that qualifies you for a new trade or business are not deductible. The Tax Court emphasized the Internal Revenue Service's position on this matter once more in a recent case. A philosophy professor could not deduct the cost of his law courses because they were not undertaken as a condition of employment and they qualified him for a new line of work.

As a job requirement, I must reimburse my employer for disability insurance premiums until I have been employed for two years. The premiums are expensive. Can I deduct them on my tax return? W.W., Dover, Del. Sorry, but employee payments to private or voluntary disability plans are not deductible. (Questions should be sent to the Tax Adviser, in care of George W.

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