The Miami Herald from Miami, Florida on December 22, 1983 · 70
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The Miami Herald from Miami, Florida · 70

Miami, Florida
Issue Date:
Thursday, December 22, 1983
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'yyry y - 7 n "er ’7'Ti1 ’Ty7 "f "f 'J"T f - V NYSE24C Amex25C 0TCNASDAQ2GC Thursday December 22 1983 The Miami Herald 22C usiness World Bonus becomes an endangered species h Help-wanted ads rise third straight month From Herald Staff and Wire Reports The number of help-wanted advertisements in US newspapers increased for the third consecutive month in November the Conference Board said Wednesday The Conference Board a corporate-sponsored business research organization said its seasonally-adjusted Help-Wanted Advertising Index rose to 114 in November up three points from October’s 1 1 1 and 36 points above the level of 78 a year ago Kenneth Goldstein a Conference Board economist said the recent steady rise in want-ad volume “clearly suggests that the pace of new hiring will continue to be fairly strong in the first few months of 1984 One note of caution however is that the economic forecasts are indicating that business in general and labor market conditions in particular may be slowing down by spring” Trends UNEMPLOYMENT AND INFLATION stabilized in the 10 Common Market countries a report said The report by the trade bloc’s statistical service provided a glimmer of hope for an economic upturn next year Consumer prices rose an average 06 per cent in November in the European Economic Community and unemployment rose to 106 per cent but that increase was blamed on seasonal factors Casinos BALLY’S PARK Place Casino-Hotel in Atlantic City won a renewal of its gambling hall’s license The Casino Control Commission unanimously approved a one-year renewal of Bally Manufacturing Inc’s license to operate the resort casino after Bally officials Informed the gaming board that William O’Donnell the former chairman of the Chicago-based slot machine and pinball game giant had placed his stock holdings in the firm in a bank trust O’Donnell was forced to step down because of alleged dealings with organized crime figures when the casino first won a state license in 1979 THE BID OF OWNER A1 Sachs to retain control of his Las Vegas Stardust Hotel was rejected The Nevada Gaming Commission unanimously voted to stick by its Dec 4 order to suspend the license of Sachs and general manager Herb Tobman and to name a state supervisor to run the business pending the outcome of a disciplinary hearing Commission Chairman Paul Bible said the testimony from the hearing showed there was an “utter failure” to take any corrective steps after being notified of skimming allegations International A US COMPANY has signed a contract to buy ll-mlllion pounds of nutmeg from Grenada US Department of Commerce spokesman Larry Theriot said Caribbean Corp Services with offices in San Jose Calif and the US Virgin Islands will purchase the nutmeg from the Grenada Cooperative Nutmeg Association during the first six months of 1984 Theriot said the transaction involves the same amount of nutmeg purchased by the Soviet Union from Grenada in 1983 before the US invasion of the eastern Caribbean island Companies TWA PLANS TO lay off 400 flight attendants in January A Trans World Airlines spokesman confirmed a story in the Kansas City Times that said the airline intends to place the flight attendants in its domestic system on furlough beginning Jan 31 AT&T WILL BUY 23 per cent of an Italian office-equipment maker American Telephone & Telegraph Co tentatively agreed to pay $260 million for a stake in Ing C Olivetti & C SpA Europe’s biggest maker of office-automation equipment The link-up is seen as part of AT&T’s plans for a major re-entry into foreign markets after its scheduled breakup Jan 1 LEE IACOCCA SAID Chrysler may stop making domestic subcompacts Chrysler Corp may begin importing inexpensive subcompacts from Japan and stop building them in the United States because the domestic models are not profitable Chrysler Chairman Ia-cocca said “Economics would say that’s probably the way it’s got to come out in the short term” he said The Lloncy Liao S Florida mortgage rate 10-1314 S Florida prime rate 11 13-week T-biUs 904 26-week T-bills 9 24 The government in the latest wave of bank deregulation eliminated its ceiling rates ot interest to r the sin-month money market certificates and the I to-year small saver certificates The Bottom Line A group of 10 banks has agreed to provide financing for a management-led $385-million acquisition of Cone Mills Corp in Greensboro NC Denny’s Inc will acquire the 78-restaurant Colony Kitchen chain from Travelodge International Inc a unit of Trust Houses Forte Ltd for $136 million Southeast Banking Corp of Miami received Federal Reserve Board approval to engage in arranging equity financing through its subsidiary Southeast Mortgage Co Microdyne Corp based in Ocala Fla announced a new $260000 contract to supply satellite network distribution equipment to the Alabama Information Network Brig Gen William C Rouse (US army ret) was named president and chief operating officer of Tampa-based American Agronomics Corp JC Penney Co is canceling catalog orders for Coieco Industries Inc’s new home computer Adam Warner Communications Inc will sell $350 million in film contracts at a near 20-per cent discount to claim tax credits generated by a $424 7-million net loss for the first nine months of 1983 Tracy Posner 21-year-old daughter of Miami financier Victor Posner was elected to the board of Birds-boro Corp of Miami Sun Bank based in Orlando said it will increase by 25 basis points the interest paid on regular savings accounts in Florida effective Jan 1 V By TIM SMART Herald Business Writer Few workers at South Florida’s largest employers will find surprises in their paychecks this week The number of large companies paying bonuses this year can be ticked off on one hand And the bonus picture isn’t much brighter elsewhere in the country A national survey of Christmas gift policies conducted by the Bureau of National Affairs found that only 24 per cent of the companies planned to pay bonuses this year Eleven per cent of the companies planned to give their employes turkeys while 14 per cent will hand out other gifts Managers will get bonuses in 15 per cent of the firms surveyed while nonmanagers will see bonuses in 14 per cent of the companies The average manager’s bonus will be $200 while rank-and-file workers can expect an average of about $100 The practice of giving Christmas gifts or bonuses follows no pattern The largest and most prosperous of employers are just as likely to not pay them as the poorest or smallest Eastern Airlines which faces a loss this year of close to $200 million plans to pay no bonuses Neither does Knight-Ridder Newspapers Inc publisher of The Miami Herald and some 30 other newspapers (three others in Florida) where net income is up 184 per cent through September “It’s not necessary" to pay Christmas bonuses said Knight-Ridder spokesman Frank Hawkins “I think people have smartened up and realized that instead of paying Christmas bonuses you establish MBOs managament by objective” Hawkins said Under an MBO a manager establishes a list of goals and then is rewarded financially when he achieves them “You make it incentive pay rather than gift pay" Hawkins said But at Publix which has a reputation as a paternalistic employer full-time employes with one calendar year’s tenure generally receive two weeks pay as their Christmas bonus “We treat our employes fairly and they treat us fairly” said Mark Hollis the supermarket chain’s spokesman Pratt & Whitney the giant defense contractor that employs 7000 persons in Palm Beach County doesn’t pay cash Bonus outlook for South Florida BONUS None 2 weeks pay None None None None None None Employes reimbursed 120 toward a turkey Uett to Individual branch workers at Miami Headquarters many district offices give small bonuses Closes West Plam Beach manufacturing plant for one week giving employes paid time off bonuses but does close its massive factory the week after Christmas in effect giving its workers a paid week off “I don’t know if I’d call it a Christmas bonus but it certainly is something employes look forward to” said spokesman Dick Dalton Something employes at Ryder System can look forward to is a turkey which the company gives to its Miami headquarters staff “It’s a tradition that was started here Please turn to BONUSES 23C y l ja&SBfeaera ' r' BRUCE GILBERT Miami Herald Staff Shoppers appear unburdened by packages Wednesday on the first level of Omni Mall in Miami South Florida merchants missing a ho in their ho-ho-ho this year By DAN FESPERMAN Herald Business Writer Although retailers across the nation are ringing up hefty Christmas sales many South Florida merchants are experiencing a less-than-bountiful season “The Miami area is definitely not one of the strong areas” says Monroe Greenstein a retailing industry analyst with the Bear Stearns firm on Wall Street Bernie Goldstein who runs the South Florida chain of 10 Dale Alan men’s stores said “My stores are running behind last year's figures I think Christmas is so far a disappointment” Miami shopping-center developer Ed Brandon said “It’s a mixed bag But nobody's doing the roaring business I thought would be done” Retailers look forward to the Christmas season about as eagerly as children because holiday buying accounts for a quarter to a half of their annual sales So most retailers approached this Christmas season with renewed optimism predicting heavier sales And they stocked larger inventories than during the past two recession-plagued Novembers and Decembers But several factors have combined to dampen that spirit: Added pressure from off-price retailers increased competition from new malls and new superstores such as the Macy’s in north Dade County delayed effects from the recession in Broward and Palm Beach counties and in Dade a sharp decline in Latin American tourism which a few years ago resulted in a sales binge The region is not without its bright spots however Stewart Thomas South Florida district manager for Sears Roebuck & Co said “It’s going very nicely I’d seen a pretty significant turnaround beginning in September and it is continuing through the Christmas season” Thomas said that Sears’ regional sales are up from last year “in double digits” Lord & Taylor which caters to wealthier customers is also having an “excellent” season in South Florida according to company president Harold Leppo “It is our second best market now behind Detroit and is even better than the Northeast” At Burdines the largest department store chain In South Florida Chairman Richard McEwen said “Southeast Flori da has come in stronger than planned" However McEwen said “It is nowhere near to the way we’re doing on the west coast and in central Florida” But the brightest of the region's bright spots — the two-month-old Macy’s store at Aventura Mall — is also one the reasons some South Florida’s other stores aren’t doing so well “That Macy’s” analyst Greenstein said “is pulling $55 million in annual sales out of a basically stagnant market” The impact of the new Macy’s store hits hardest perhaps at the 163rd Street Shopping Center only a few miles south of Aventura Mall Although the mall underwent an extensive renovation completed last year the mail’s stores — including Burdines — are selling less than they did last year according to local retail executives McEwen didn’t want to comment on that and would only say that his company’s 163rd Street store is doing “better than planned And that’s significant in the face of the new competition from Please turn to RETAIL 23C US probes beer sales in stadiums Anheuser-Busch focus of USinvestigation LOS ANGELES — (UPI) — Federal authorities are investigating Anheuser-Busch Inc in connection with its apparent near monopoly in supplying beer to major league baseball stadiums it was reported Wednesday John Graham an Anheuser-Busch spokesman at the company’s St Louis headquarters confirmed the investigation for the Daily News of Los Angeles “Anheuser-Busch has been under investigation by the Bureau of Alcohol Tobacco and Firearms for the past year” Graham said “So long as that investigation is open it is inappropriate to comment further” The newspaper reported the brewing firm held an apparent virtual monopoly on supplying beer to 24 of the 26 stadius The two Canadian teams it said deal with a Canadian brewer The report did not mention that at some stadiums other brands also are available Robert Skopeck special agent in charge of the Los Angeles ATF office declined to comment on the investigation but sources close to the investigation told the newspaper the probe is “sensitive” and many people have been interviewed Among those interviewed were Merritt Willey vice president of marketing for the Los Angeles Dodgers Thomas Arthur owner of Arthur Food Services Inc which sells beer at food at Dodger Stadium and John Anderson president of Ace Beverage Co which supplied Budweiser beer to the stadium last season Anderson said he had been questioned several times by ATF agents and was told the investigation centered on Anheuser-Busch not on Cdistributors “They beat their competitors to the punch for sponsorship at the stadiums but there were no illegal inducements to sell their product” Anderson said “If they have broken any law it is without any intention and I’d be very surprised” Arthur also said that he had been questioned by ATF agents and said he was told his firm was not targeted “I have no idea what prompted them to investigate and I don’t care We pay what the law says we are supposed to pay for a barrel of beer and that’s it” Arthur said Boca Raton builder to lease 605 acres in industrial park Arvida taking its act to Orlando’s airport By PATRICIA BELLEW Herald Business Writer Two weeks after selling off a major portion of its commercial and industrial real estate in South Florida Arvida Corp announced Wednesday that it intends to develop a big industrial and business park outside Orlando The Boca Raton-based developer said it plans to lease 605 acres at Orlando International Airport from the Orlando Aviation Authority if it wins approval for the project from local regulatory authorities ' The property is located in a 1400-acre undeveloped industrial park called the Tradeport located on the airport’s northwest corner Arvida the park’s first major developer will pay $80 million over the next 40 years to lease the land The company says it also holds options to continue the lease past its 40-year term John W Temple Arvida president said that Arvida’s newest commercial project in Orlando will include a 400-room hotel a conference center low-rise and mid-rise office buildings indus- ‘Our game plan is to try to get more heavily involved in real-estate development in Tampa and Orlando’ John W Temple Arvida president trial showrooms and some retail space — all to be built over the next ten or 15 years “Our game plan is to try to get more heavily involved in real-estate development in Tampa and Orlando” said Temple “Clearly Tampa Orlando Jacksonville and Sarasota are some of the strongest areas in the state and with our recent change of ownership we do intend to concentrate on more development within Florida” Penn Central Corp this fall sold the giant real-estate development concern to a group that included Charles Cobb a former chief operating officer of Penn Central Temple several other senior executives of Arvida and members of the wealthy Bass family of Fort Worth Tex Shortly after that deal was closed Arvida’s new owners announced they would sell off a major portion of the company’s commercial and industrial real-estate holdings to the nation’s third largest insurance company Equitable Life Assurance Society Equitable reportedly paid $60 million for the land Included in that deal was 160 acres in Boca Raton and 1000 acres in Weston a new residential community in western Broward County “We intend to continue commercial and industrial development as the Orlando project obviously indicates” said Temple Commercial and industrial de velopment historically has accounted for one-third of the company’s revenues of more than $300 million a year If it wins approval for the Orlando project Arvida will begin building low-rise office buildings and some industrial showroom facilities The company said it initially intends to build about one million square feet of office and showroom space at a cost of $50 million Within the next six years the company will construct the 400-room hotel Temple said Arvida hopes to secure for its hotel a franchise from one of the major hotel chains Company officials said the Orlando project will be modeled after the Arvida Park of Commerce in Boca Raton the campus-like business park in which such companies as Mitel and STP Corp have located divisions or headquarters Arvida is no newcomer to the Orlando real-estate market Two years ago it began developing a luxury residential community called Orange Tree There Arvida will build 1000 single-family homes and nolf villas priced between $80000 and Kl 50000 over ti next five vears f S Tiling Ylllilllirillll hi

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