Press of Atlantic City from Atlantic City, New Jersey • 83

X' The Press Sunday October 16 Atlantic City NJ Marketplace ircus Circus sharpens up for Excalibur Laughlin operation Vegas Wire By ELLIOT KRANE six casinos in Nevada when Ex calibur is completed the corpora tion will operate about 10 percent of the hotel rooms in the state The furor over the bollection of Nazi era memorabilia by Imperi al Palace owner Ralph Engelstad Golden Nugget Chairman Steve Wynn who recently purchased the Nevada Club Casino in Laugh lin for $40 million said that the city by the Colorado River will some day enjoy a population of 250000 purchase in cludes 13 acres on the Nevada side of the river and a 78 room Wynn expects to spend an addi tional $85 million to renovate the property he purchased to give it a Nugget sort of feel Wynn expects to employ a total of 1400 and generate about $25 million a year in profits from his Meanwhile Golden Nugget casino in Las Vegas was busy paying multimillion dollar jackpots On Saturday Oct 1 June Vavasseur of Los Angeles hit a progressive slot for $28 million and one week earlier Vernon Renfro Jr of Ocala la won $31 million The $5 million jackpot is yet to be hit Spanish Palms resort has been approved by the Clark County commissioners for a 320 room ho telcasino on 183 acres at Las Vegas Boulvard South and Shel bourne Avenue several miles south of the strip (Elliot Krone is a writer and restaurant editor for the Las Vegas Review Journal) LAS VEGAS With the blast a "herald's trumpet and the of knights in armourCircus Circus Enterprises Inc its groundbreaking forExcalibur the 4000 room castle Jthemed resort to be built on 70 acres on the Las Vegas Strip at JTropicana Avenue The estimated Tor the project is $260 to y290 million 1 Circus Circus Chairman Wil liam Bennett pulled Excalibur enchanted sword Jfrom a rock to signal the ground breaking for the project that will Stake almost two years to com plete: resort will contain 100000 feet of casino space and a that will house ar cades movie theaters and other recreational activities Circus Circus currently owns is escalating in spite of the casino that five minute segments were operator's apologies to this com not available munity in the local press While the Gaming Control Board is investigating Engel suitability as a casino owner many groups such as the Las Vegas Convention and Visi tors Authority the NAACP and the Jewish ederation of Las Vegas said that the Nazi collec tion was a glorification of Hitler nnri nnmilri rrt nnpr At Azl emu oiivuiu uc ucdii cu After calling a news conference motel operated by the casino to explain his collection Engles across the river in Bullhead City tad requested five minutes of time irom the local 1 stations but was turned down by the three network affiliates Although he wished to purchase the time the TV channels said that they would not sell air time to an individual to express his views on a personal matter and 1 THE DOW THEN AND NOW A comparison of 60 weekly closings of the aDow Jones industrial average shows how the crash of 1987 has followed and then diverged from the path of the' 1929 disaster pv ST r( Jvf 259200 1 Percentage Indicates change Irom Aug 7 1937 to Sept 23 1988 Ut36070 Percentage indicates change JO from Aug 17 1929 to Oct 4 1930 Source: Dow Jones Co Inc APR Dominguez Local analysts recall a i sobering experience By' MARY JO LAYTON Staff Writer Like their Wall Street counter parts local stockbrokers remem bensOct 19 1987 as a selling frerizy fueled by program trading and 'headlines predicting bread lines bankruptcy and impending depression But most recall the events of Oct 19 as the that or or bloody hose just a temporary knock as James Pappas vice president of the Somers Point based Paine Webber said They were more inclined to measure the day in terms of ripples rather than waves Although no one heralded the crash as a savior most did agree that it sobered investors drunk with Unreal expectations remind ed people of the necessity of long term investing and generally things as Joseph ludica of the Ocean City based Butcher Singer Inc said CMK I have investors coming ijf and buying the junk ludica said been a flight to he said real story of the crash lies in what offers Kevin Packer a vice president and branch manager of the Atlan tic region for Dean Witter Rey nolds Inc jiThe trend at the time of the (trash was to make comparisons to" the stock market crash in 1929 Rdcker said was terribly in Trip in prnnnmv con tracted by 99 percent It con traded 77 percent in 1931 and in 1932 148 percent Packer said contrast the economic growth in 1988 has excelerated to 41 percent from the 29 percent of last year And Dean Witters predicts 21 percent growth in 1989 Packer said the market crashed we would have probably have seen rising interest rates and a less cautious approach to spend ing patterns and the said Robert Ursomarso Jr resident manager and assistant president of the Vineland based Merrill Lynch Pierce enner Smith Inc would have been tak ing on more debt borrowing more and not thinking about the consequences of that which would have caused a deeper he said Most stockbrokers faulted pro gram trading as the biggest vil lain on Oct 19 Those interviewed explained that computers pro grammed to sell when shares dropped by a certain percentage See Analysts Page G8 22 02154 Where Gone for Medical Care not phobia help is available TIP: Phobias are the most common mental disorders in the United States according to the National Institute of Mental Health Seven out of every hundred Americans have them The institute has published a free booklet called Information on Phobias and which contains a list of the specific fears people have and the treatments that are now available or a 1 free copy send your name and address to the Consumer I Information Center Department 593T Pueblo Colo 81009 Percent receiving treatment inthis location in the pastyear: 29 Private office Hospital KCIinic or walk in medical center Emergency room Source: SRIGallup survey America after the crash: confident but different Associated Press Nearly a year after the crash of 1987 Wall Street is still retrench ing and recuperating The growth that doubled the number of jobs in the securities industry from 1979 to mid 1987 has given way to layoffs mergers and cost cutting Stock prices have staged a modest rally this year recovering some of the huge losses they suf fered in the slide that culminated in a record 226 percent drop for the Dow Jones industrial average on Black Monday Oct 19 But there is hardly an econom ic story that colored by what happened one year ago: 1982 remembered The last time the United States had a recession bullets were fly ing in the alkland Islands and Barney Clark was preparing to get the first artificial heart That was 1982 ancient history by standards In No vember of that year the economy began a powerful expansion that is about to become the longest in US peacetime history Next month barring calamity the expansion will tie the peace time record set under George Washington from mid 1790 to mid 1796 Economists do not foresee a recession until next year at the earliest What saved the economy from disaster (a year ago were three main things: The ederal Reserve which flubbed its job in the 1930s had the good sense this time to open the money spigots allowing banks to borrow freely and pre venting the financial system from going into gridlock Consumers kept spending only slightly daunted by the crash Commerce Department in its re port on the gross national prod uct But when the new year arrived Americans loosened their purse strings Consumer spending rose at an annual rate of 43 percent in the first quarter and had a 3 percent pickup during the second quarter Another jolt Battle scarred Wall Street pro fessionals their ranks thinned by last crash could be in for another jolt and more job losses i The shock waves sent out a year ago by the stock panic are still being felt as many: skittish investors have stayed away from the market That has brought a prolonged decline in profits for the battered brokerage firms intensifying pressure on them to let more employees go or Inavn mnrn vacant inhe unfilled Some 12000 to 17000 people in the securities industry 75 per cent to 10 percent of the work force lost their jobs as a result Pdf the Oct 19 crash according to some estimates ew have found new jobs within the industry and some experts predict that the number of unemployed could dou ble before the situation stabilizes Play it safe Less risky money market ac counts and fixed income prod ucts such as bonds or certificates of deposits are in these days while stocks considered too spec ulative are out has been a change in said Marshall ront an economist at Chicago based Stein Roe arnham which manages about $11 billion in in vestment assets including pen sion funds and individual ac counts much greater emphasis on capital preservation and less emphasis on capital en hancement mirrors been going on in the stock market in general today The volume is down the level of interest seems to be quite After the crash many inves tors who had thought the once roaring stock market invincible rushed to put their money into what they considered safe havens: government backed Treasury bonds and notes CDs less risky mutual funds or just plain savings accounts The amount of stock the aver age American family held in its investment portfolio declined to 201 percent in the fourth quarter of 1987 from 25 percent the pre vious quarter the peak of the bull market according to 1 Goldman Sachs Co Net deposits fed erally insured savings institutions soared by $12" billion the last three months of last year ment regulators found During those same months assets of money market mutual funds gained about $15 billion nation wide compared to a loss of about $60 billion in equity fund assets according to the' Washington based Investment Company Insti tute which tracks mutual funds The economy withstood the crash because it was and is basically healthy In October 1929 a recession had already be gun Consumers help out The predictions that followed the stock market crash were omi nous: rightened consumers would stop spending and the economy would topple into reces sion It happen that way Americans paused briefly after the Oct 19 debacle but generally kept on spending buying cars and going into debt over the pastyear Overall consumer outlays slipped immediately after the crash During the fourth quarter spending skidded 25 percent ac cording to figures released by the Idea (Continued from Page Gl) ed for a landfill just read the trash Price said Marina now sends an average of 40 bales of material to be recycled each week His goal is 45 to 50 bales a week by the first of the year and Price envisions changing some in house buying habits to accom plish that goal He estimates that each casino generates approximately 4 mil lion plastic coffee cups a year Multiply that by 12 casinos Price and the potential for recy cling is great hope go to card he said uture plans call for the casino to recycle all its large containers' of: documents that the casino hotel is no longer required to keep in storage The Casino Control Commission has already approved the plan said Price In addition future plans call for desktop recycling containers for in house memos and other paperwork some of which must first be shredded To even further motivate em ployees Price has arranged to show a videotape in employee lounges of an ABC seg ment called Poisoning of As for the wet garbage gener ated by the bars and kitchens at Marina being re cycled too by the hogs at a farm in nearby Galloway Town ship Crash (Continued from Page Gl) Critics continue to say howev er that there has been more study than action more talk about new rules than changes in the rules In international cooperation The securities collapse was global Not only are market places interlinked electronically but economies are interdepen dent As a consequence mone tary fiscal and trade policies of trading nations affect each other infinitely While international cooperation since the crash has been volatile at times with arguments raging about trade restrictions interest rate levels credit conditions fis cal policies and the like there has been some improvement The dollar has stabilized for the time being at least American goods seem more competitive abroad helping to correct the US payments imbalance and creating a healthier trade rela tionship among nations Central banks throughout the world are now intensely aware that they must coordinate eco nomic policies since it is known that the slightest problems left untended can cause financial ab errations detrimental to all In expectations Perhaps the biggest impact is still beyond easy statistical mea surement It is a renewed sense of realism about expectations ilance about economic manage ment a recognition that a stable economy requires restraints Without a doubt most Ameri cans are less cocky about contin ued economic expansion but it is difficult to prove While almost certainly they are more risk con scious almost every survey shows them optimistic While hardly a day by without people being reminded that another shoe could fall some where in the economy that there is a crash impact yet to be felt the chief worries today relate to the basic economic cycle Now completing its sixth year the economic expansion would seem to be in old age or that reason alone forecasters find it convenient to consider recession a possibility but they are for ever postponing it The stock market itself gives little indication but it is still watched for clues True a feeling exists that the big crash of 1987 seems to have been confined pri marily within the securities in dustry itself But economy watchers realize that no sector of domestic activi ty is isolated from the rest any more than American European or Asian economies are immune from each specific prob lems Stock markets still are viewed as long term economic indicators And in spite of the mysteries it hides none remains more scruti nized for clues than the American marketplace Mr Action Purchase by loveseat We bought a living room set from a company near Philadephia The was supposed to include a sofa loveseat and chair They delivered only the sofa and chair I called the store and was told that the loveseat had a stain on it so they ordered another oneM and would deliver it as soon as it arrived That was five months ago Now they tell us they get the loveseat If 4 the case we want? them to take the sofa and chair back and refund our money They want us to "3 choose a coordinating loveseat We want that We want all three pieces of furniture to JI match we entitled to that? ES Pomona You sure are! After all what you bought We dis cussed this with the store man ager and got him to see it that way too Your sofa and chair were picked up by the store last week At the same time you were given a refund check Now you can buy your living room set from an area store Tirewear My two front tires are wearing terribly They have only 11000 miles on them and they look ready for the trash heap The salesman at the tire shop says it has noth ing to do with the tires He says to blame for keep ing my car in bad condi tion Have you ever heard! of anything so silly? WK Absecon XX not silly at all In fact the reason your tires are wearing the way they are is that you have front end prob lems better have it taken care of quickly Otherwise chew through even the most expensive tires in no time flat Quite a card The major credit card I depend on the most has been invalidated I have no'X idea why this was done I never have allowedX charges to build up on it always paid upon re ceipt of the statement Now all of a sudden this has happened called the company about this and promised to look into it I heard back from them since this call I need the credit card when I go on my next busi ness trip next week Can you see to it that I have it? Margate A computer error caused! you all this aggravation It was straightened out a few days! ago and you received a call) from the credit card main headquarters assuring you of this Good luck on your business trip Reading course I sent $7999 to a com pany for a reading im provement course they ad vertised on late night TV They cashed my check but have yet to send me anything in return very upset by this Please help me get something A Pleasantville Send a copy of your can celed check to the customer relations department take it from there Just in case something goes wrong given you the toll free phone number Mr column appears every day except riday and Saturday If you have a problem you think he can solve write to Mr Action The Press Devins Lane Pleasantville NJ 08232 Be sure to include your name' address and telephone number' Please do not send original doc uments you want returned Mr Action reads each letter he receives He prints only those that are the most interesting or helpful He regrets that he cannot respond individually to those let ters not used 41 1929 30.