Elko Daily Free Press from Elko, Nevada on February 13, 1993 · 8
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Elko Daily Free Press from Elko, Nevada · 8

Elko, Nevada
Issue Date:
Saturday, February 13, 1993
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8 ELKO DAILY FREE PRESS, Elko, Nevada Saturday, February 13, 1993 Business .Retail WASHINGTON (AP) - Americans carried the Christmas buying spirit into the new year and the job market improved late in January, the government said Thursday, adding to a string of good-news economic reports. Retail sales rose 02 percent to a seasonally adjusted $167.4 billion, the Commerce Department said. That followed a gain of 0.8 percent in December and was the sixth in seven months. Department store and auto sales showed particular strength. Sales from November to December' were 12 percent higher than a year earlier. "This event is an excellent sign that the economy is pumping along on all cylinders. ... If such a healthy Reno Air's passenger totals rise RENO, Nev. (AP) - Reno Air's success story continued in January as the airline reported strong air passenger totals for the month. The airline said 64.9 percent of its available seats were filled in January, only its seventh full month of operation. Known as load factors, such totals are regarded as important gauges of an airline's performance. January's total of 97,333 passengers proved "good news for us," said Sue Putnam, Reno Air spokeswoman. The passenger total decreased A2 percent from December, but Putnam noted there were no previous January statistics to compare it with since the airline still is in its first year of operation. January is considered a slow period in the airline industry and the month's passenger totals drop at most airlines, analysts said. Meanwhile, Reno Air says it plans to take on veteran Northwest Airlines between Reno and Minneapolis-St. Paul, and it's undercutting the old-timer's rates to boot Reno Air will start daily flights to the Midwest April 1 at a cost of $190 for a round trip. Northwest will offer the same service three days later for $198 a round trip. Reno Air also will add a fifth round-trip flight to Seattle in mid-March to keep up with demand. Nevada news summary; Mega resorts to help change Las Vegas LAS VEGAS (AP) Three new mega resorts and changing leisure habits will help boost Las Vegas' evolution from a haven for high rollers to a vacation destination, a former gaming regulator told casino executives. "When we build them fantastically enough, they do come," Michael Rumbolz, an executive with Circus Circus Enterprises Inc., told the opening session of the International Gaming Business Exposition in Las Vegas. Rumbolz said $1.8 billion in new projects under construction by his company, MGM Grand and Mirage Resorts Inc. "will move Las Vegas up to the A-list as a vacation choice for the future." In 1992, Orlando, Fla. drew some 28 million visitors and Las Vegas more than 21 million, Rumbolz said. "Yet fewer than 15 percent of Americans have taken their vacations in Las Vegas to date," said Rumbolz, former chairman of the Nevada Gaming Control Board. Rumbolz said with the new projects on line, and an improving national economy, the city's visitor count could jump 4 million to 5 million a year in 1993-94. Barbary Coast LAS VEGAS (AP) A federal labor ruling against the Barbary Coast hotel-casino may cost the Strip resort some $11 million if it stands on appeal, Culinary Union officials say. The National Labor Relations Board ruling accuses the Barbary Coast and its owner, Michael Gaughan, of violating federal labor laws during a dispute with the union. Richard Boyce, an administrative law judge with the NLRB, issued the 99-page decision alleging dozens of violations of the National Labor Relations Act Union officials say union workers at the resort, who have been without a contract since June 1989, could get a windfall of some $11 million in back wages and health and welfare benefits if the settlement is upheld on appeal. Boyce found in his ruling that the Barbary Coast wrongfully terminated pension and health and welfare plans for workers and withheld pay raises. He also found that workers supporting the union were threatened and subject to surveillance and that the hotel defied a federal injunction to stop Gaughan from harassing pro-union workers. Aside from reinstating back pay and welfare benefits, Boyce also ordered the Barbary Coast to rehire workers who were fired because of union activities, allow Culinary offi sales up; jobs increase rate of increase continues, the economy will not falter in 1993," said economist William K MacReynolds of the UJS. Chamber of Commerce. Meanwhile, the Labor Department said the number of Americans filing first-time claims for jobless benefits fell by 12,000 to 340,000 during the week ended Jan. 30. It was the second consecutive decline and the lowest level of claims in five weeks. The latest reports came as President Clinton put the final touches on an economic and budget package to create jobs this year and slash the deficit in half over the rest of his term. Many Republicans are saying the economy no longer needs a short-term economic stimulus. Last week, Computer gift: .- - I - ' ja rr : x - ' - f '7- ' . : ? s . V V. fe h barah Abel, left, and Audrey Dunning learn about possible careers on IBM-compatible computers donated by Newmont Gold Company, represented in this photo by Michele Gonzalez, cials back on the hotel's property and restore the terms and conditions of employment that existed before the labor dispute began. Miller joints light CARSON CITY (AP) - Gov. Bob Miller has joined with Nevada's congressional delegation in a bipartisan can tor binding arbitration to end the bitter 17-month strike at the Frontier Hotel. "This dispute has been tragic for everyone involved," Miller said. "Enough is enough." All four members of the state's congressional delegation signed a letter to Frontier general manager Tom Elardi and union leader Jim Arnold calling for the arbitration. Union officials quickly agreed to the arbitration, while hotel executives remained silent U.S. Sens. Richard Bryan and Harry Reid and Reps. James Bilbray and Barbara Vucanovich said in the letter they decided to intervene at the request of area residents and leaders of the business community. Elardi did not return phone calls for comment The letters chided both the union and the hotel for not settling the strike earlier and urged them to accept the binding arbitration "in the best interest of our community." Culinary Union workers and bartenders walked out of the Strip resort in September 1991 after more than two years of working without a contract Sheraton's plans LAS VEGAS (AP) - The newly named president of ITT Sheraton says the hotel giant will be looking at gaming opportunities worldwide but particularly in Las Vegas. John Giovenco, 56, president of Hilton Nevada Corp. the Dast nine years, was named to take over as president at rival Sheraton, signalling the move of another hotel giant into the world of legalized gambling. Hilton Nevada includes the gaming properties of Hilton Hotels Corp. Those gaming properties have provided the parent company with two-thirds of its income in recent years. "We have started a worldwide search for opportunities in the gaming industry," ITT Sheraton Corp. chairman John Kapioltas said. "John brings the experience and knowledge to facilitate TTT Sheraton's successful entry into this business, which we view as a national expansion of our hospitality operations." Giovenco said Sheraton would be looking at gaming ventures across the country and around the world, but particularly in Las Vegas. the government reported that the unemployment rate had fallen to a one-year low of 7.1 percent in January, productivity growth last year was the best in two decades and factory orders in December rose at the fastest pace in 17 month. However, two Nobel prize-winning economists Robert Solow of the Massachusetts Institute of Technology and James Tobin of Yale University told the Joint Economic Committee that without a stimulus the job market will improve only gradually. "There is enough slack in the economy to warrant a more aggressive approach. The payoff would be higher output, more jobs, with little danger of inflationary pressures," Elko High School economirs stnripntc MAP, 'J-::'-J0.. I APR y:'f : may ( ' ) t ' f C1 L: 5 k . OCT Allan Stefka is operating Quality Air Products and Services out of an office in his home. Quality Air offers products, Allan Sfpflra Viae ctoWn o M MO oiui icu a new business called Quality Air Products and Services, which specializes in improving the quality of indoor air He is working out of his home at 1200 Parkway Drive and a warehouse on West Main Street Quality Air has a full line of filtration products for residential and industrial use, including furnace filters, air purifiers and air purification systems, Stefka said. In addition, he carries a variety of allergy-relief products such as 100 percent cotton mattresses and bedding, non-allergenic skin and body products, non-toxic cleaning products, baby-care products, and natural foods and vitamins. And Stefka said Quality Air will upgrade and improve heating and air The Elko County Sheriff's Department is looking for neighborhoods to set up the neighborhood watch program. If your neighborhood is interested please contact Deputy Stacy Faulkner at 738-3421 or at 775 W. Silver Street. Solow said. He said a stimulus package of $35 billion would reduce the current 7.1 percent unemployment rate to six percent in a year. Without the package, the rate probably will fall to around 6.5 percent, he said. In advance of Thursday's sales report, many economists were looking for a slightly better increase. Still they were pleased that retail spending held up during a month in which consumers were coping with large credit card bills. "It was a modest gain but considering that it followed such strong holiday sales, it's quite solid," said economist Sandra Shaber of the WEFA Group, a Bala Cynwyd, Pa., forecasting firm. public relations assistant. Economics teacher Gerald Hassett said that the Nevada Career Information System is the only software he now has for the computers, but he plans to obtain more for the course. services conditioning systems, provide maintenance of those systems and clean ductwork, using "state-of-the-art" equipment "The Environmental -Protection Agency has found that indoor air can be up to 70 times more polluted than outdoor air, and studies are finding that because people spend 60 to 90 percent of their time indoors, it is critical that the house, school or workplace have the cleanest possible air to breathe," he said. An Elko resident since 1976, except for the four years he spent with the U.S. Army Corps of Engineers, Stefka most recently was service manager for four years with Parking Heating and Sheet Metal. Quality Air's phone number is 738-7501. Gross domestic product, 1980-'S3 The GDP measures all the goods and services produced by workers and capital located in the United States, regardless of ownership. Constant dollar percent change from previous year 1980 '81 '82 '83 '84 '85 4 3.9 3 9 .N n ?ft3-1 n iv 3 n n n ! 2s n n M P 1 - I f 0.8 j , j I lllllNlllHin I II, -1 -0-5 . U -1.2 2 u Source: U.S. Dept. of Commerce APCariFo Economists predict fast pickup this year WASHINGTON (AP) - The U.S. economy, following a brisker-than-expected revival in the October-December quarter, will accelerate at its fastest pace in five years in 1993, some of the nation's top economists predicted. The consensus of the 51 analysts surveyed late last month by Blue Chip Economic Indicators calls for economic growth of 3.1 percent this year, up from the 2.9 percent forecast in the newsletter's December survey. If so, that would be the fastest expansion since the economy grew 3.9 percent in 1988. It slowed as the recession neared and actually fell 12 percent in 1991 before squeaking out a 2.1 percent improvement last year. "This made it possible for us to haul out our under-utilized green banner," said economist Robert J. Eggert, who edits the Sedona, Ariz., newsletter. The newsletter uses different colors for its banner, or masthead. Green means the economy is expanding above long-range growth potential of three percent Yellow signals low economic growth between zero and 2.9 percent, while red warns the economy may decline. The survey participants represent banks, businesses, economic forecasting services, universities and Wall Street firms. Eggert' said the likelihood that President Clinton will propose "a modest boost in infrastructure spending and an investment tax credit" represented some of the reasons for the survey's optimism. "The continuation of the corporate restructuring mania, a still- Home values rise in most areas of U.S. WASHINGTON (AP) - Property values rose in most areas of the nation during the final quarter of 1992, a real estate trade group said. The exceptions generally were in California and some parts of the Northeast A survey of 125 metropolitan areas by the National Association of Realtors showed 98 increases over the same period a year earlier in the prices of previously owned, single-family detached and attached homes. The median price of a home in the Midwest rose 5.5 percent during the quarter, and 42 percent in the South. The median price means half of the homes cost more and half less. Although there were several markets in the Northeast posting gains, the median price for the region fell 0.8 percent It slumped 1.1 percent in the West, where many California markets continue to struggle from effects of the recession. In fact the Northeast had eight of the 22 areas registering declines in the median price, while the West had six. Elsewhere, though, low mortgage rates and improving consumer confidence sparked buyer demand and drove up prices, particularly in the -HV this' 'ii ' 4 " -' , i k t -i , 1 042 Commercial St. 738-4026 Weekdays 8 a.m. 9 p.m., Sat. 9 a.m. 5 p.m., Sun. Closed Se Habla Espaftol '86 '87 '88 '89 '90 '91 '92 '93' Projected estimate made by Blue Chip Economic Indicators depressed commercial real estate sector and more defense industry cutbacks may act as a governor on growth this year," he added, "but their effects are waning." "Most significantly, the sharp gains in the Index of Leading Economic Indicators during the past three months suggest the economy's improvement will be a lasting one," he said. The index is the government's chief economic forecasting gauge. It jumped 1.9 percent in December, the biggest leap since a similar increase in April 1983, when the economy was emerging from the last recession. The Blue Chip economists concur with Eggert's assessment The consensus forecast calls for 32 percent growth in 1994. But the forecasts are modest compared to the economic growth following the previous recession in 1981-82. The economy expanded 3.9 percent in 1983 and 62 percent in 1984. Many economists are concerned that the employment situation will not improve significantly unless economic growth tops 3 percent In fact, the Blue Chip survey projects a 7 percent jobless rate this year before dropping to 6.5 percent in 1994. It stood at 7.1 percent last month. The Blue Chip banner was mostly red and yellow for the last four years, although it brightened into green for a brief period last June, when the Blue Chip economists also projected 3.1 percent growth in 1993. But the economy lost momentum during the summer and the green banner faded to yellow until the current issue. Midwest and South. Eighteen areas registered double-digit gains. Both first-time and trade-up buyers entered the market during the fourth quarter, Realtors President William S. Chee said. "Consumers have started feeling more confident about buying big-ticket items," Chee added. "Were-seeing a lot of pent-up demand being absorbed. People are coming out of the woodwork." The Realtors survey found double-digit sales increased in 39 states. Sales of existing single-family detached homes, town houses, 'apartment condominiums and cooperatives totaled 3.86 million in 1992, up 8.5 percent from 3.56 million in 1991. During the fourth quarter, sales totaled 4.22 million units at a seasonally adjusted annual rate, up 183 percent from 3.56 million a year earlier. Mortgage rates during the October-December, period averaged 821 percent, nearly a half percentage point below a year ago, according to surveys by the Federal Home Loan Mortgage Corp. That made the market more affordable for buyers in the low-income range.

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