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[
"``",
"The",
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"Crowd",
"''",
"by",
"Judith",
"Ramsey",
"Ehrlich",
"and",
"Barry",
"J.",
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"(",
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",",
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",",
"444",
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",",
"Carl",
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",",
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"Weill",
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".",
"Its",
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",",
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",",
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"soared",
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",",
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"the",
"not",
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"maneuvers",
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"the",
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"at",
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",",
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"``",
"When",
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",",
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",",
"''",
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"Glucksman",
".",
"The",
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"``",
"our",
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"''",
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",",
"Warburgs",
",",
"Lehmans",
",",
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",",
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"Jewish",
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"eggs",
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".",
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",",
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",",
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",",
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",",
"they",
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"just",
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"Japan",
".",
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"need",
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":",
"It",
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",",
"move",
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",",
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",",
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",",
"N.Y.",
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",",
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".",
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",",
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",",
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"However",
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",",
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"America",
".",
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"Martin",
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"Green",
",",
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"from",
"all",
"this",
".",
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",",
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"want",
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"in",
",",
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"a",
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"Some",
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"seamy",
"stuff",
"built",
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"'",
"Fifth",
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"palazzi",
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"weddings",
"to",
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".",
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",",
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"and",
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".",
"So",
"who",
"knows",
"?",
"In",
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[
"Probably",
"the",
"most",
"clear-cut",
"Soviet",
"violation",
",",
"for",
"example",
",",
"is",
"the",
"Krasnoyarsk",
"radar",
".",
"--",
"``",
"Arms",
"Control",
"Reality",
",",
"''",
"Nov.",
"20",
",",
"1984",
",",
"the",
"first",
"of",
"some",
"20",
"Journal",
"editorials",
"saying",
"that",
"Krasnoyarsk",
"violated",
"the",
"ABM",
"treaty",
".",
"--",
"``",
"Whether",
"the",
"installation",
"is",
"for",
"early",
"warning",
"or",
"space",
"track",
",",
"it",
"clearly",
"is",
"not",
"deployed",
",",
"''",
"the",
"lawmakers",
"said",
".",
"``",
"Thus",
"we",
"judge",
"it",
"to",
"be",
"not",
"a",
"violation",
"of",
"the",
"ABM",
"treaty",
"at",
"this",
"time",
".",
"''",
"The",
"delegation",
"included",
"a",
"reporter",
"from",
"the",
"New",
"York",
"Times",
",",
"aides",
"to",
"Sen.",
"Edward",
"M.",
"Kennedy",
"and",
"Rep.",
"Les",
"AuCoin",
",",
"and",
"Natural",
"Resources",
"Defense",
"Council",
"staff",
"members",
".",
"--",
"The",
"Washington",
"Post",
",",
"Sept.",
"9",
",",
"1987",
".",
"--",
"The",
"U.S.S.R.",
"has",
"taken",
"unprecedented",
"unilateral",
"measures",
"of",
"openness",
",",
"by",
"giving",
"American",
"representatives",
"a",
"possibility",
"to",
"inspect",
"the",
"building",
"site",
"of",
"the",
"Krasnoyarsk",
"radar",
"as",
"well",
"as",
"radar",
"vans",
"in",
"the",
"areas",
"of",
"Gomel",
"and",
"Moscow",
",",
"so",
"as",
"to",
"see",
"for",
"themselves",
"that",
"there",
"are",
"no",
"violations",
"of",
"the",
"ABM",
"treaty",
"of",
"1972",
"on",
"the",
"part",
"of",
"the",
"Soviet",
"Union",
".",
"--",
"Letter",
"from",
"Eduard",
"Shevardnadze",
"to",
"U.N.",
"Secretary-General",
"Perez",
"de",
"Cuellar",
",",
"reported",
"in",
"Tass",
",",
"June",
"10",
",",
"1988",
".",
"--",
"The",
"construction",
"of",
"this",
"station",
"equal",
"in",
"size",
"to",
"the",
"Egyptian",
"pyramids",
"constituted",
",",
"I",
"say",
"it",
"directly",
",",
"a",
"clear",
"violation",
"of",
"ABM",
".",
"--",
"Eduard",
"Shevardnadze",
",",
"Oct.",
"23",
",",
"1989",
".",
"We",
"'re",
"happy",
",",
"we",
"guess",
",",
"to",
"receive",
"confirmation",
"of",
"the",
"Krasnoyarsk",
"violation",
"from",
"the",
"Soviets",
",",
"five",
"years",
"after",
"we",
"started",
"writing",
"about",
"it",
".",
"Perhaps",
"even",
"the",
"American",
"apologists",
"will",
"now",
"accede",
".",
"Without",
"question",
",",
"something",
"intriguing",
"is",
"going",
"on",
"in",
"the",
"policy",
"chambers",
"of",
"the",
"Politburo",
".",
"As",
"it",
"bids",
"for",
"new",
"agreements",
",",
"new",
"loans",
"and",
"indeed",
"admission",
"to",
"the",
"civilized",
"world",
",",
"the",
"Soviet",
"government",
"has",
"recognized",
"it",
"has",
"a",
"credibility",
"problem",
".",
"So",
"after",
"70",
"years",
",",
"it",
"is",
"confessing",
"the",
"obvious",
",",
"hoping",
"to",
"be",
"believed",
"about",
"other",
"things",
".",
"It",
"'s",
"not",
"enough",
".",
"If",
"the",
"Soviets",
"want",
"to",
"be",
"believed",
",",
"they",
"need",
"to",
"start",
"telling",
"the",
"truth",
"about",
"more",
"than",
"the",
"totally",
"obvious",
".",
"Our",
"own",
"test",
"of",
"``",
"glasnost",
"'s",
"''",
"authenticity",
"would",
"be",
"a",
"Soviet",
"decision",
"to",
"open",
"itself",
"to",
"a",
"complete",
"international",
"examination",
"of",
"one",
"of",
"the",
"most",
"troubling",
"mysteries",
"in",
"U.S.-Soviet",
"relations",
"--",
"the",
"reported",
"1979",
"anthrax",
"outbreak",
"at",
"a",
"Soviet",
"military",
"facility",
"in",
"Sverdlovsk",
".",
"The",
"U.S.",
"government",
"has",
"never",
"waivered",
"in",
"its",
"assessment",
"of",
"this",
"incident",
"as",
"an",
"accident",
"at",
"a",
"biological",
"weapons",
"facility",
"there",
",",
"and",
"hence",
"a",
"violation",
"of",
"the",
"1972",
"Biological",
"Weapons",
"Convention",
".",
"The",
"Pentagon",
"'s",
"recently",
"issued",
"``",
"Soviet",
"Military",
"Power",
",",
"''",
"though",
"in",
"general",
"adopting",
"a",
"softer",
"line",
",",
"repeated",
"the",
"Sverdlovsk",
"assessment",
".",
"It",
"also",
"was",
"detailed",
"in",
"Congressional",
"testimony",
"this",
"past",
"February",
":",
"An",
"explosion",
"at",
"the",
"Microbiology",
"and",
"Virology",
"Institute",
"in",
"Sverdlovsk",
"released",
"anthrax",
"germs",
"that",
"caused",
"a",
"significant",
"number",
"of",
"deaths",
".",
"Since",
"Mr.",
"Shevardnadze",
"did",
"not",
"address",
"this",
"topic",
"before",
"the",
"Supreme",
"Soviet",
",",
"the",
"Soviet",
"Union",
"'s",
"official",
"position",
"remains",
"that",
"the",
"anthrax",
"deaths",
"were",
"caused",
"by",
"tainted",
"meat",
".",
"We",
"doubt",
"this",
"claim",
"just",
"as",
"we",
"doubted",
"Mr.",
"Shevardnadze",
"'s",
"assurance",
"last",
"year",
"that",
"Krasnoyarsk",
"did",
"n't",
"violate",
"the",
"ABM",
"treaty",
".",
"And",
"just",
"as",
"we",
"did",
"not",
"believe",
"the",
"tendentious",
"claims",
"of",
"the",
"Congressmen",
"and",
"arms-control",
"advocates",
"who",
"visited",
"Krasnoyarsk",
",",
"we",
"are",
"in",
"no",
"way",
"persuaded",
"by",
"the",
"assent",
"to",
"the",
"tainted-meat",
"theory",
"by",
"a",
"U.S.",
"team",
"of",
"scientists",
"who",
"met",
"with",
"Soviet",
"counterparts",
"in",
"Washington",
"last",
"year",
".",
"The",
"Soviets",
"'",
"explanation",
"is",
"that",
"the",
"anthrax",
"came",
"from",
"one",
"lot",
"of",
"animal",
"feed",
"made",
"from",
"the",
"bones",
"of",
"cattle",
"that",
"grazed",
"on",
"soil",
"that",
"was",
"naturally",
"infected",
"with",
"anthrax",
"spores",
".",
"Harvard",
"'s",
"Matthew",
"Meselson",
"--",
"who",
"we",
"read",
"has",
"sold",
"something",
"called",
"the",
"``",
"scientific",
"community",
"''",
"on",
"the",
"notion",
"that",
"``",
"yellow",
"rain",
"''",
"attacks",
"on",
"the",
"Laotian",
"Hmong",
"were",
"in",
"fact",
"the",
"result",
"of",
"fecal",
"showers",
"by",
"giant",
"bees",
"--",
"found",
"the",
"Soviet",
"anthrax",
"scenario",
"``",
"completely",
"plausible",
".",
"''",
"We",
"do",
"n't",
"believe",
"it",
".",
"And",
"we",
"certainly",
"do",
"not",
"believe",
"that",
"Mr.",
"Gorbachev",
"or",
"any",
"of",
"his",
"emissaries",
"yet",
"deserve",
"to",
"have",
"the",
"West",
"take",
"their",
"word",
"for",
"it",
".",
"Sverdlovsk",
"is",
"a",
"large",
"gray",
"cloud",
"over",
"glasnost",
"and",
"indeed",
"over",
"the",
"legitimacy",
"of",
"the",
"arms-control",
"process",
"itself",
".",
"The",
"U.S.",
"government",
"'s",
"Sverdlovsk",
"complaint",
",",
"as",
"with",
"Krasnoyarsk",
",",
"is",
"no",
"mere",
"political",
"posturing",
".",
"Biological",
"weapons",
"violations",
"have",
"figured",
"little",
"in",
"political",
"debate",
",",
"and",
"indeed",
"have",
"not",
"been",
"pressed",
"vigorously",
"enough",
"by",
"the",
"U.S.",
"government",
".",
"But",
"the",
"stated",
"U.S.",
"position",
"is",
"detailed",
"and",
"specific",
",",
"and",
"the",
"prospect",
"of",
"biological",
"warfare",
"is",
"profoundly",
"chilling",
".",
"The",
"Soviets",
"should",
"be",
"willing",
"to",
"set",
"in",
"motion",
"a",
"process",
"that",
"would",
"allow",
"them",
"to",
"acknowledge",
"that",
"Sverdlovsk",
"violated",
"the",
"1972",
"agreement",
"or",
",",
"alternatively",
",",
"that",
"would",
"give",
"U.S.",
"specialists",
"reasonable",
"confidence",
"that",
"this",
"was",
"a",
"wholly",
"civilian",
"accident",
".",
"Until",
"that",
"happens",
",",
"glasnost",
"can",
"not",
"begin",
"to",
"deserve",
"the",
"kind",
"of",
"credibility",
"Mr.",
"Shevardnadze",
"was",
"bidding",
"for",
"with",
"his",
"confessions",
"on",
"Monday",
"."
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[
"Du",
"Pont",
"Co.",
"reported",
"that",
"third-quarter",
"profit",
"grew",
"a",
"robust",
"19",
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"from",
"a",
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"on",
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"operations",
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"chemicals",
"and",
"fibers",
",",
"and",
"in",
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".",
"Du",
"Pont",
"also",
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"$",
"1.20",
"a",
"share",
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"$",
"1.05",
",",
"a",
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"the",
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"shareholders",
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"some",
"$",
"140",
"million",
".",
"Du",
"Pont",
",",
"unlike",
"companies",
"hurt",
"badly",
"by",
"sharp",
"price",
"declines",
"for",
"basic",
"chemicals",
"and",
"plastics",
",",
"is",
"benefiting",
"from",
"its",
"broad",
"range",
"of",
"businesses",
".",
"The",
"profit",
"gain",
"was",
"made",
"despite",
"a",
"weakening",
"in",
"the",
"housing",
"market",
",",
"for",
"which",
"the",
"company",
"is",
"a",
"supplier",
",",
"and",
"a",
"strengthening",
"in",
"the",
"dollar",
",",
"which",
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"the",
"value",
"of",
"overseas",
"earnings",
"when",
"they",
"are",
"translated",
"into",
"dollars",
".",
"The",
"Wilmington",
",",
"Del.",
",",
"company",
"reported",
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"$",
"547",
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",",
"or",
"$",
"2.36",
"a",
"share",
",",
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"line",
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"Wall",
"Street",
"estimates",
".",
"In",
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"year-earlier",
"period",
",",
"the",
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"earned",
"$",
"461",
"million",
",",
"or",
"$",
"1.91",
"a",
"share",
".",
"Sales",
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"latest",
"quarter",
"were",
"$",
"8.59",
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",",
"up",
"9.4",
"%",
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"$",
"7.85",
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".",
"The",
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"Du",
"Pont",
"'s",
"second",
"this",
"year",
",",
"an",
"affirmation",
"of",
"statements",
"by",
"top",
"executives",
"that",
"they",
"intend",
"to",
"increase",
"rewards",
"to",
"shareholders",
".",
"``",
"We",
"have",
"n't",
"benefited",
"the",
"shareholder",
"as",
"much",
"as",
"we",
"need",
"to",
",",
"''",
"said",
"Edgar",
"Woolard",
"Jr.",
",",
"Du",
"Pont",
"'s",
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"and",
"chief",
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"officer",
",",
"in",
"an",
"interview",
"several",
"months",
"before",
"he",
"entered",
"his",
"current",
"position",
"in",
"April",
".",
"The",
"largest",
"beneficiary",
"will",
"be",
"Seagram",
"Co.",
",",
"which",
"owns",
"about",
"23",
"%",
"of",
"Du",
"Pont",
".",
"A",
"spokesman",
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",",
"the",
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"wine",
"and",
"spirits",
"concern",
"controlled",
"by",
"the",
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"family",
",",
"said",
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"additional",
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"33",
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"a",
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"because",
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"the",
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"Du",
"Pont",
"dividends",
".",
"Du",
"Pont",
"also",
"announced",
"plans",
"for",
"a",
"3-for-1",
"stock",
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",",
"although",
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"paid",
"on",
"pre-split",
"shares",
".",
"Du",
"Pont",
"'s",
"stock",
"rose",
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"2.50",
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"to",
"close",
"at",
"$",
"117.375",
"in",
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"York",
"Stock",
"Exchange",
"composite",
"trading",
"yesterday",
".",
"Seagram",
"closed",
"at",
"$",
"84.75",
",",
"up",
"12.5",
"cents",
"a",
"share",
"in",
"Big",
"Board",
"trading",
".",
"Leading",
"the",
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"for",
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"Pont",
"in",
"the",
"latest",
"quarter",
"was",
"its",
"industrial",
"products",
"segment",
",",
"where",
"profit",
"soared",
"to",
"$",
"155",
"million",
"from",
"$",
"99",
"million",
"a",
"year",
"earlier",
".",
"The",
"company",
"benefited",
"from",
"continued",
"strong",
"demand",
"and",
"higher",
"selling",
"prices",
"for",
"titanium",
"dioxide",
",",
"a",
"white",
"pigment",
"used",
"in",
"paints",
",",
"paper",
"and",
"plastics",
".",
"James",
"Fallon",
",",
"a",
"New",
"Providence",
",",
"N.J.",
",",
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"consultant",
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"the",
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",",
"says",
"Du",
"Pont",
"still",
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"the",
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"the",
"company",
"was",
"``",
"first",
"in",
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"the",
"technology",
"''",
"to",
"lower",
"costs",
".",
"He",
"said",
"Du",
"Pont",
"holds",
"about",
"23",
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"the",
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"market",
",",
"the",
"largest",
"single",
"share",
",",
"at",
"a",
"time",
"when",
"growing",
"uses",
"for",
"the",
"pigment",
"have",
"kept",
"it",
"in",
"tight",
"supply",
",",
"although",
"others",
"are",
"now",
"adding",
"low-cost",
"production",
"capacity",
".",
"Profit",
"climbed",
"to",
"$",
"98",
"million",
"from",
"$",
"71",
"million",
"in",
"the",
"petroleum",
"segment",
",",
"as",
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"Pont",
"'s",
"Conoco",
"Inc.",
"oil",
"company",
"was",
"helped",
"by",
"crude",
"oil",
"prices",
"higher",
"than",
"a",
"year",
"ago",
"and",
"by",
"higher",
"natural",
"gas",
"prices",
"and",
"volume",
".",
"In",
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"diversifed",
"businesses",
"segment",
",",
"which",
"includes",
"herbicides",
",",
"profit",
"grew",
"to",
"$",
"64",
"million",
"from",
"$",
"27",
"million",
".",
"A",
"spokesman",
"said",
"herbicide",
"use",
"in",
"some",
"areas",
"of",
"the",
"U.S.",
"was",
"delayed",
"earlier",
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"the",
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] |
[
"Investors",
"in",
"the",
"over-the-counter",
"market",
"dumped",
"banking",
"and",
"insurance",
"issues",
",",
"sending",
"the",
"Nasdaq",
"composite",
"index",
"lower",
"for",
"the",
"third",
"consecutive",
"session",
".",
"All",
"Nasdaq",
"industry",
"indexes",
"finished",
"lower",
",",
"with",
"financial",
"issues",
"hit",
"the",
"hardest",
".",
"Despite",
"some",
"early",
"computer-guided",
"program",
"buying",
",",
"the",
"Nasdaq",
"composite",
"fell",
"1.39",
"to",
"451.37",
".",
"The",
"OTC",
"market",
"now",
"has",
"declined",
"in",
"eight",
"of",
"the",
"past",
"11",
"sessions",
".",
"The",
"Nasdaq",
"bank",
"index",
"fell",
"5.00",
"to",
"432.61",
",",
"while",
"the",
"insurance",
"index",
"fell",
"3.56",
"to",
"528.56",
",",
"and",
"the",
"``",
"other",
"finance",
"''",
"index",
"dropped",
"3.27",
"to",
"529.32",
".",
"The",
"largest",
"financial",
"issues",
",",
"as",
"measured",
"by",
"the",
"Nasdaq",
"financial",
"index",
",",
"tumbled",
"3.23",
"to",
"Meanwhile",
",",
"the",
"index",
"of",
"the",
"100",
"biggest",
"non-financial",
"stocks",
",",
"the",
"Nasdaq",
"100",
",",
"gained",
"0.47",
"to",
"438.15",
".",
"Profit-taking",
"accounted",
"for",
"much",
"of",
"the",
"slide",
"in",
"OTC",
"stock",
"prices",
",",
"according",
"to",
"David",
"Mills",
",",
"senior",
"vice",
"president",
"of",
"Boston",
"Company",
"Advisers",
".",
"He",
"said",
"many",
"portfolio",
"managers",
",",
"whose",
"year-end",
"bonuses",
"are",
"tied",
"to",
"annual",
"performance",
",",
"are",
"selling",
"now",
"rather",
"than",
"risk",
"seeing",
"their",
"gains",
"erode",
"further",
".",
"``",
"The",
"profit",
"locking-in",
"is",
"definitely",
"going",
"on",
",",
"''",
"said",
"Mr.",
"Mills",
",",
"whose",
"firm",
"manages",
"$",
"600",
"million",
"for",
"Boston",
"Co",
".",
"Tax-loss",
"sellers",
",",
"those",
"investors",
"who",
"sell",
"loss-making",
"stocks",
"so",
"they",
"can",
"deduct",
"their",
"losses",
"from",
"this",
"year",
"'s",
"income",
",",
"are",
"also",
"getting",
"out",
",",
"Mr.",
"Mills",
"said",
".",
"That",
"'s",
"helping",
"put",
"pressure",
"on",
"both",
"the",
"market",
"'s",
"winners",
"and",
"its",
"losers",
".",
"``",
"The",
"stocks",
"that",
"have",
"been",
"the",
"best",
"are",
"having",
"big",
"pullbacks",
",",
"and",
"the",
"ones",
"that",
"have",
"been",
"the",
"worst",
"are",
"getting",
"clobbered",
",",
"''",
"Mr.",
"Mills",
"said",
".",
"He",
"expects",
"the",
"market",
"to",
"sink",
"further",
"and",
"to",
"reach",
"a",
"low",
"sometime",
"next",
"month",
"or",
"in",
"December",
".",
"The",
"selling",
"by",
"money",
"managers",
"and",
"individual",
"investors",
"is",
"turning",
"traders",
"bearish",
"as",
"well",
".",
"``",
"We",
"are",
"advising",
"a",
"lot",
"of",
"our",
"clients",
"to",
"make",
"moves",
"that",
"make",
"sense",
"to",
"them",
",",
"rather",
"than",
"waiting",
"until",
"the",
"last",
"minute",
",",
"because",
"things",
"have",
"been",
"so",
"volatile",
",",
"''",
"said",
"William",
"Sulya",
",",
"head",
"of",
"OTC",
"trading",
"at",
"A.G.",
"Edwards",
"&",
"Sons",
"in",
"St.",
"Louis",
".",
"Ralph",
"Costanza",
",",
"head",
"of",
"the",
"OTC",
"trading",
"department",
"at",
"Smith",
"Barney",
",",
"Harris",
"Upham",
",",
"said",
"many",
"market",
"players",
"are",
"awaiting",
"some",
"resolution",
"of",
"the",
"current",
"debate",
"over",
"program",
"trading",
".",
"Much",
"of",
"the",
"market",
"'s",
"recent",
"volatility",
"has",
"been",
"blamed",
"on",
"this",
"large-scale",
"computerized",
"trading",
"technique",
"that",
"can",
"send",
"stock",
"prices",
"surging",
"or",
"plummeting",
"in",
"a",
"matter",
"of",
"minutes",
".",
"The",
"problem",
"has",
"been",
"particularly",
"damaging",
"to",
"the",
"OTC",
"market",
",",
"traditionally",
"a",
"base",
"for",
"the",
"small",
"investor",
".",
"Weisfield",
"'s",
"surged",
"14",
"to",
"53",
"after",
"agreeing",
"in",
"principle",
"to",
"be",
"acquired",
"by",
"a",
"unit",
"of",
"Ratners",
"Group",
"for",
"$",
"50",
"a",
"share",
".",
"The",
"stock",
"jumped",
"9",
"1/2",
"Friday",
",",
"when",
"the",
"company",
"announced",
"it",
"was",
"in",
"takeover",
"talks",
".",
"Ratners",
"and",
"Weisfield",
"'s",
"said",
"they",
"expect",
"to",
"sign",
"definitive",
"agreements",
"shortly",
"and",
"to",
"complete",
"the",
"transaction",
"by",
"Dec.",
"15",
".",
"Mid-State",
"Federal",
"Savings",
"Bank",
"advanced",
"1",
"1/2",
"to",
"20",
"1/4",
"after",
"it",
"said",
"it",
"is",
"in",
"talks",
"with",
"a",
"possible",
"acquirer",
".",
"The",
"bank",
"said",
"the",
"talks",
"resulted",
"from",
"solicitations",
"by",
"its",
"financial",
"adviser",
".",
"Jaguar",
"assumed",
"its",
"recently",
"customary",
"place",
"on",
"the",
"OTC",
"most",
"active",
"list",
"as",
"its",
"American",
"depository",
"receipts",
"gained",
"1/4",
"to",
"11",
"7/8",
"on",
"volume",
"of",
"1.2",
"million",
"shares",
"and",
"Daimler-Benz",
"joined",
"the",
"list",
"of",
"companies",
"interested",
"in",
"the",
"British",
"car",
"maker",
".",
"Daimler",
"said",
"it",
"has",
"had",
"talks",
"with",
"Jaguar",
"about",
"possible",
"joint",
"ventures",
".",
"Meanwhile",
",",
"General",
"Motors",
"and",
"Ford",
"Motor",
"continue",
"their",
"pursuit",
"of",
"the",
"company",
".",
"Ford",
"has",
"acquired",
"more",
"than",
"13",
"%",
"of",
"Jaguar",
"'s",
"shares",
",",
"and",
"GM",
"has",
"received",
"U.S.",
"regulatory",
"clearance",
"to",
"buy",
"15",
"%",
".",
"ShowBiz",
"Pizza",
"Time",
"gained",
"1",
"1/2",
"to",
"13",
".",
"The",
"company",
"reported",
"third-quarter",
"operating",
"profit",
"of",
"37",
"cents",
"a",
"share",
",",
"compared",
"with",
"12",
"cents",
"a",
"share",
"a",
"year",
"earlier",
".",
"A",
"third-quarter",
"charge",
"of",
"$",
"3.5",
"million",
"related",
"to",
"planned",
"restaurant",
"closings",
"resulted",
"in",
"a",
"net",
"loss",
"for",
"the",
"quarter",
".",
"Employers",
"Casualty",
",",
"which",
"reported",
"a",
"$",
"53.9",
"million",
"third-quarter",
"loss",
"late",
"Friday",
",",
"fell",
"2",
"1/4",
"to",
"13",
"3/4",
".",
"The",
"loss",
"was",
"largely",
"due",
"to",
"a",
"$",
"55.2",
"million",
"addition",
"to",
"reserves",
".",
"Employers",
"Casualty",
"had",
"a",
"loss",
"of",
"$",
"3.6",
"million",
"in",
"the",
"year-earlier",
"quarter",
".",
"Old",
"Stone",
"fell",
"1",
"5/8",
"to",
"13",
"1/2",
".",
"Late",
"Friday",
",",
"the",
"company",
"reported",
"a",
"loss",
"of",
"$",
"51.3",
"million",
"for",
"the",
"third",
"quarter",
"after",
"earning",
"$",
"9.2",
"million",
"a",
"year",
"before",
".",
"The",
"loss",
"came",
"after",
"a",
"$",
"23.3",
"million",
"addition",
"to",
"loan-loss",
"reserves",
".",
"The",
"bank",
"made",
"a",
"$",
"4.5",
"million",
"provision",
"in",
"the",
"1988",
"quarter",
".",
"Old",
"Stone",
"repeated",
"projections",
"that",
"it",
"will",
"be",
"profitable",
"for",
"the",
"fourth",
"quarter",
"and",
"will",
"about",
"break",
"even",
"for",
"the",
"year",
".",
"Abraham",
"Lincoln",
"Federal",
"Savings",
"Bank",
"sank",
"4",
"to",
"13",
"1/2",
"after",
"announcing",
"a",
"shakeup",
"that",
"will",
"change",
"senior",
"management",
"and",
"reorganize",
"the",
"bank",
"'s",
"mortgage",
"business",
"as",
"a",
"separate",
"unit",
".",
"The",
"bank",
"also",
"said",
"it",
"will",
"establish",
"a",
"loan-loss",
"reserve",
"of",
"$",
"2.5",
"million",
"to",
"$",
"4",
"million",
"against",
"a",
"construction",
"loan",
"that",
"is",
"in",
"default",
".",
"The",
"bank",
",",
"which",
"previously",
"said",
"it",
"was",
"for",
"sale",
",",
"said",
"it",
"has",
"received",
"no",
"offers",
"and",
"that",
"its",
"board",
"will",
"review",
"whether",
"to",
"continue",
"soliciting",
"bids",
"."
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[
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",",
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",",
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",",
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",",
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".",
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".",
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".",
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",",
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",",
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",",
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"''",
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".",
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",",
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",",
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".",
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",",
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"opening",
".",
"''",
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",",
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",",
"20",
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"15",
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[
"Time",
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".",
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",",
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",",
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",",
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",",
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",",
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"serving",
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"Tele-Communications",
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",",
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",",
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",",
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",",
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".",
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"Average",
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"Long-term",
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"German",
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".",
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".",
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"moves",
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"head",
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"prices",
",",
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"much",
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".",
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"investors",
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"attention",
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",",
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",",
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".",
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",",
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".",
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"an",
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"could",
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".",
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":",
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".",
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"141.52",
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[
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"apparently",
"has",
"n't",
"triggered",
"any",
"cash",
"crunch",
"--",
"yet",
".",
"Individual",
"investors",
",",
"investment",
"firms",
"and",
"arbitragers",
"who",
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"the",
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"of",
"takeover",
"candidates",
"can",
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"liquidity",
"and",
"payment",
"problems",
"when",
"stocks",
"dive",
";",
"those",
"investors",
"often",
"borrow",
"heavily",
"to",
"buy",
"their",
"holdings",
"and",
"use",
"the",
"stocks",
"as",
"collateral",
"for",
"loans",
".",
"But",
"several",
"large",
"banks",
"said",
"yesterday",
"they",
"detected",
"no",
"signs",
"of",
"unusual",
"demand",
"for",
"credit",
"that",
"would",
"signal",
"such",
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".",
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"We",
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"nothing",
"out",
"of",
"the",
"ordinary",
",",
"''",
"said",
"one",
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"a",
"Top",
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".",
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",",
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"we",
"all",
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"this",
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".",
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"Added",
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"a",
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":",
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"We",
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"all",
"a",
"little",
"goosey",
"over",
"the",
"weekend",
"trying",
"to",
"forecast",
"what",
"would",
"happen",
"-LCB-",
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"-RCB-",
",",
"but",
"it",
"'s",
"been",
"very",
"quiet",
".",
"Now",
",",
"as",
"for",
"tomorrow",
",",
"hell",
",",
"who",
"knows",
"?"
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[
"What",
"if",
"it",
"happened",
"to",
"us",
"?",
"In",
"the",
"wake",
"of",
"the",
"earthquake",
"in",
"California",
"and",
"the",
"devastation",
"of",
"Hurricane",
"Hugo",
",",
"many",
"companies",
"in",
"disaster-prone",
"areas",
"are",
"pondering",
"the",
"question",
"of",
"preparedness",
".",
"Some",
",",
"particularly",
"in",
"West",
"Coast",
"earthquake",
"zones",
",",
"are",
"dusting",
"off",
"their",
"evacuation",
"plans",
",",
"checking",
"food",
"stocks",
"and",
"reminding",
"employees",
"of",
"what",
"to",
"do",
"if",
"emergency",
"strikes",
".",
"Others",
"say",
"they",
"feel",
"confident",
"that",
"steps",
"they",
"'ve",
"already",
"taken",
"would",
"see",
"them",
"through",
"a",
"disaster",
".",
"Preparedness",
"involves",
"more",
"than",
"flashlights",
"and",
"fire",
"alarms",
"these",
"days",
".",
"Some",
"big",
"companies",
"have",
"teams",
"of",
"in-house",
"experts",
"focusing",
"on",
"safety",
"and",
"business",
"resumption",
".",
"Many",
"companies",
"in",
"the",
"path",
"of",
"potential",
"disaster",
"have",
"set",
"up",
"contingency",
"offices",
"in",
"safe",
"regions",
",",
"hoping",
"they",
"can",
"transport",
"employees",
"there",
"and",
"resume",
"operations",
"quickly",
".",
"That",
"means",
"making",
"sure",
"that",
"copies",
"of",
"vital",
"computer",
"software",
"and",
"company",
"records",
"are",
"out",
"of",
"harm",
"'s",
"way",
".",
"Some",
"businesses",
"--",
"like",
"Disneyland",
"--",
"claim",
"that",
"even",
"if",
"they",
"became",
"isolated",
"in",
"a",
"crisis",
",",
"they",
"would",
"be",
"able",
"to",
"feed",
"and",
"care",
"for",
"their",
"people",
"for",
"as",
"long",
"as",
"five",
"days",
".",
"``",
"Self-sufficiency",
"has",
"to",
"be",
"the",
"cornerstone",
"of",
"your",
"plan",
",",
"''",
"says",
"Stephanie",
"Masaki-Schatz",
",",
"manager",
"of",
"corporate",
"emergency",
"planning",
"at",
"Atlantic",
"Richfield",
"Co.",
"in",
"Los",
"Angeles",
".",
"``",
"If",
"you",
"do",
"n't",
"save",
"your",
"critical",
"people",
",",
"you",
"wo",
"n't",
"be",
"able",
"to",
"bring",
"up",
"your",
"vital",
"business",
"functions",
".",
"''",
"Although",
"ARCO",
"'s",
"head",
"office",
",",
"more",
"than",
"300",
"miles",
"from",
"the",
"epicenter",
",",
"was",
"n't",
"affected",
"by",
"this",
"week",
"'s",
"tremors",
",",
"Ms.",
"Masaki-Schatz",
"used",
"the",
"occasion",
"to",
"distribute",
"a",
"three-page",
"memo",
"of",
"``",
"Earthquake",
"Tips",
"''",
"to",
"1,200",
"ARCO",
"employees",
".",
"``",
"You",
"need",
"to",
"capitalize",
"on",
"these",
"moments",
"when",
"you",
"have",
"everyone",
"'s",
"attention",
",",
"''",
"she",
"says",
".",
"``",
"It",
"was",
"a",
"good",
"reminder",
"that",
"we",
"all",
"need",
"to",
"prepare",
"prior",
"to",
"an",
"event",
".",
"''",
"The",
"ARCO",
"memo",
"urges",
"employees",
"to",
"keep",
"certain",
"supplies",
"at",
"work",
",",
"such",
"as",
"solid",
"shoes",
"and",
"``",
"heavy",
"gloves",
"to",
"clear",
"debris",
".",
"''",
"It",
"also",
"recommends",
"that",
"employees",
"be",
"aware",
"of",
"everyday",
"office",
"items",
"that",
"could",
"be",
"used",
"for",
"emergency",
"care",
"or",
"shelter",
".",
"Among",
"the",
"suggestions",
":",
"Pantyhose",
"and",
"men",
"'s",
"ties",
"could",
"be",
"used",
"for",
"slings",
",",
"while",
"removable",
"wooden",
"shelves",
"might",
"aid",
"in",
"``",
"breaking",
"through",
"office",
"walls",
".",
"''",
"ARCO",
"maintains",
"an",
"office",
"in",
"Dallas",
"that",
"would",
"take",
"over",
"if",
"payroll",
"operations",
"in",
"Pasadena",
"were",
"disrupted",
".",
"Two",
"months",
"ago",
"the",
"company",
"set",
"up",
"a",
"toll-free",
"number",
",",
"based",
"outside",
"California",
",",
"to",
"handle",
"queries",
"from",
"employees",
"about",
"when",
"they",
"should",
"report",
"back",
"to",
"work",
"after",
"an",
"earthquake",
"or",
"other",
"disaster",
".",
"The",
"ARCO",
"plan",
"takes",
"into",
"account",
"such",
"details",
"as",
"which",
"aspects",
"of",
"business",
"are",
"busier",
"at",
"certain",
"times",
"of",
"the",
"year",
".",
"This",
"way",
",",
"depending",
"on",
"when",
"a",
"quake",
"might",
"strike",
",",
"priorities",
"can",
"be",
"assigned",
"to",
"departments",
"that",
"should",
"be",
"brought",
"back",
"on",
"line",
"first",
".",
"At",
"Hewlett-Packard",
"Co.",
",",
"the",
"earthquake",
"came",
"just",
"as",
"the",
"company",
"was",
"reviewing",
"its",
"own",
"emergency",
"procedures",
".",
"``",
"We",
"were",
"talking",
"about",
"scheduling",
"a",
"practice",
"drill",
"for",
"November",
",",
"''",
"says",
"Joan",
"Tharp",
",",
"a",
"spokeswoman",
".",
"``",
"Then",
"we",
"had",
"a",
"real",
"one",
"in",
"the",
"afternoon",
".",
"''",
"The",
"Palo",
"Alto",
",",
"Calif.",
",",
"computer",
"maker",
"scrambled",
"to",
"set",
"up",
"a",
"special",
"phone",
"line",
"to",
"tell",
"manufacturing",
"and",
"support",
"staff",
"to",
"stay",
"home",
"Wednesday",
".",
"Sales",
"and",
"service",
"employees",
"were",
"asked",
"to",
"report",
"to",
"work",
"to",
"help",
"Bay",
"area",
"clients",
"who",
"called",
"with",
"computer",
"problems",
".",
"Hewlett-Packard",
"also",
"called",
"in",
"its",
"systems",
"experts",
"to",
"restore",
"its",
"own",
"computer",
"operations",
".",
"``",
"That",
"means",
"we",
"can",
"accept",
"orders",
"''",
"and",
"begin",
"getting",
"back",
"to",
"normal",
",",
"says",
"Ms.",
"Tharp",
".",
"Prompted",
"by",
"an",
"earlier",
"California",
"earthquake",
",",
"as",
"well",
"as",
"a",
"fire",
"in",
"a",
"Los",
"Angeles",
"office",
"tower",
",",
"Great",
"Western",
"Bank",
"in",
"the",
"past",
"year",
"hired",
"three",
"emergency",
"planners",
"and",
"spent",
"$",
"75,000",
"equipping",
"a",
"trailer",
"with",
"communications",
"gear",
"to",
"serve",
"as",
"an",
"emergency",
"headquarters",
".",
"Although",
"officials",
"of",
"the",
"savings",
"and",
"loan",
",",
"a",
"unit",
"of",
"Great",
"Western",
"Financial",
"Corp.",
",",
"used",
"some",
"of",
"their",
"new",
"plans",
"and",
"equipment",
"during",
"this",
"week",
"'s",
"quake",
",",
"they",
"still",
"lost",
"touch",
"for",
"more",
"than",
"24",
"hours",
"with",
"15",
"branches",
"in",
"the",
"affected",
"areas",
",",
"not",
"knowing",
"if",
"employees",
"were",
"injured",
"or",
"vaults",
"were",
"broken",
"open",
".",
"``",
"Some",
"people",
"flat",
"out",
"did",
"n't",
"know",
"what",
"to",
"do",
",",
"''",
"says",
"Robert",
"G.",
"Lee",
",",
"vice",
"president",
"for",
"emergency",
"planning",
"and",
"corporate",
"security",
"at",
"Great",
"Western",
".",
"As",
"it",
"turned",
"out",
",",
"bank",
"employees",
"were",
"n't",
"hurt",
"and",
"the",
"vaults",
"withstood",
"the",
"jolts",
".",
"Still",
",",
"says",
"Mr.",
"Lee",
":",
"``",
"We",
"need",
"to",
"educate",
"people",
"that",
"they",
"need",
"to",
"get",
"to",
"a",
"phone",
"somehow",
",",
"some",
"way",
",",
"to",
"let",
"someone",
"know",
"what",
"their",
"status",
"is",
".",
"''",
"Some",
"companies",
"are",
"confident",
"that",
"they",
"'re",
"prepared",
".",
"Occidental",
"Petroleum",
"Corp.",
"holds",
"regular",
"evacuation",
"drills",
"and",
"stocks",
"food",
",",
"oxygen",
"and",
"non-prescription",
"drugs",
"at",
"checkpoints",
"in",
"its",
"16-story",
"headquarters",
".",
"The",
"company",
"also",
"maintains",
"rechargeable",
"flashlights",
"in",
"offices",
"and",
"changes",
"its",
"standby",
"supply",
"of",
"drinking",
"water",
"every",
"three",
"months",
".",
"``",
"We",
"feel",
"we",
"are",
"doing",
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[
"At",
"Lloyd",
"'s",
"of",
"London",
",",
"underwriters",
"still",
"scratch",
"out",
"policies",
"using",
"fountain",
"pens",
"and",
"blotting",
"paper",
".",
"Visitors",
"are",
"ushered",
"into",
"the",
"premises",
"by",
"red-frocked",
"doormen",
"known",
"as",
"waiters",
",",
"a",
"reminder",
"of",
"the",
"insurance",
"market",
"'s",
"origins",
"in",
"a",
"coffeehouse",
"in",
"17th",
"century",
"London",
".",
"Such",
"trappings",
"suggest",
"a",
"glorious",
"past",
"but",
"give",
"no",
"hint",
"of",
"a",
"troubled",
"present",
".",
"Lloyd",
"'s",
",",
"once",
"a",
"pillar",
"of",
"the",
"world",
"insurance",
"market",
",",
"is",
"being",
"shaken",
"to",
"its",
"very",
"foundation",
".",
"The",
"301-year-old",
"exchange",
"is",
"battered",
"by",
"enormous",
"claims",
"from",
"a",
"decade-long",
"run",
"of",
"unprecedented",
"disasters",
",",
"the",
"most",
"recent",
"of",
"which",
"is",
"last",
"week",
"'s",
"earthquake",
"in",
"California",
"'s",
"Bay",
"Area",
".",
"At",
"the",
"same",
"time",
",",
"Lloyd",
"'s",
"is",
"besieged",
"by",
"disgruntled",
"investors",
"and",
"hamstrung",
"by",
"inefficient",
"but",
"time-honored",
"ways",
"of",
"conducting",
"business",
".",
"The",
"exchange",
"is",
"gradually",
"being",
"squeezed",
"into",
"narrow",
",",
"less-profitable",
"segments",
"of",
"the",
"market",
"by",
"less",
"hidebound",
"competitors",
".",
"``",
"Lloyd",
"'s",
"is",
"on",
"the",
"ropes",
",",
"''",
"says",
"Peter",
"Nutting",
",",
"a",
"Lloyd",
"'s",
"investor",
"for",
"17",
"years",
"who",
"now",
"leads",
"a",
"dissident",
"group",
"threatening",
"to",
"sue",
"exchange",
"underwriters",
"for",
"alleged",
"mismanagement",
"and",
"negligence",
".",
"``",
"It",
"needs",
"more",
"discipline",
".",
"It",
"needs",
"to",
"sort",
"itself",
"out",
".",
"''",
"Most",
"troublesome",
"is",
"the",
"shrinking",
"pool",
"of",
"``",
"names",
",",
"''",
"the",
"well-heeled",
"investors",
"(",
"some",
"of",
"them",
"royal",
")",
"who",
",",
"as",
"members",
"of",
"about",
"360",
"syndicates",
",",
"underwrite",
"policies",
".",
"Some",
"1,750",
"members",
"quit",
"the",
"exchange",
"last",
"year",
",",
"more",
"than",
"triple",
"the",
"number",
"of",
"resignations",
"in",
"1987",
".",
"Names",
"are",
"resigning",
"at",
"an",
"even",
"faster",
"pace",
"this",
"year",
".",
"Lackluster",
"returns",
"are",
"one",
"reason",
".",
"The",
"average",
"after-tax",
"return",
"on",
"investment",
"in",
"1986",
",",
"the",
"most",
"recent",
"year",
"for",
"which",
"results",
"are",
"available",
",",
"was",
"6.5",
"%",
",",
"according",
"to",
"Chatset",
"Ltd.",
",",
"an",
"insurance",
"consulting",
"firm",
"in",
"London",
".",
"In",
"1985",
",",
"it",
"was",
"2.1",
"%",
".",
"Between",
"1981",
"and",
"1986",
",",
"the",
"most",
"recent",
"five-year",
"period",
"for",
"which",
"figures",
"are",
"available",
",",
"Lloyd",
"'s",
"reported",
"over",
"#",
"3.6",
"billion",
"in",
"claims",
"and",
"reserves",
"against",
"future",
"losses",
"(",
"$",
"5.7",
"billion",
"at",
"today",
"'s",
"exchange",
"rates",
")",
",",
"more",
"than",
"double",
"the",
"#",
"1.35",
"billion",
"posted",
"in",
"the",
"previous",
"five-year",
"period",
".",
"Many",
"of",
"the",
"31,329",
"investors",
"who",
"remain",
"are",
"beginning",
"to",
"question",
"one",
"of",
"the",
"exchange",
"'s",
"most",
"basic",
"tenets",
",",
"the",
"concept",
"of",
"unlimited",
"personal",
"liability",
".",
"Investors",
"may",
"reap",
"huge",
"profits",
"when",
"premiums",
"exceed",
"claims",
",",
"but",
"they",
"are",
"liable",
"to",
"their",
"last",
"pound",
"or",
"dollar",
"in",
"the",
"event",
"of",
"a",
"catastrophe",
".",
"And",
"catastrophes",
"are",
"getting",
"ever",
"more",
"costly",
".",
"Lloyd",
"'s",
"claims",
"for",
"the",
"1988",
"Piper",
"Alpha",
"oil-rig",
"disaster",
"in",
"the",
"North",
"Sea",
",",
"for",
"instance",
",",
"may",
"reach",
"$",
"1",
"billion",
".",
"During",
"the",
"five-year",
"period",
"ended",
"1986",
",",
"roughly",
"80",
"%",
"of",
"the",
"names",
"had",
"money",
"tied",
"up",
"in",
"money-losing",
"syndicates",
",",
"according",
"to",
"Chatset",
"consultants",
".",
"The",
"peril",
"of",
"unlimited",
"liability",
"looms",
"large",
"for",
"a",
"number",
"of",
"them",
"now",
".",
"``",
"I",
"have",
"wished",
"I",
"could",
"die",
"and",
"be",
"out",
"of",
"it",
"--",
"that",
"'s",
"how",
"bad",
"it",
"is",
",",
"''",
"Betty",
"Atkins",
",",
"a",
"secretary",
"from",
"suburban",
"London",
",",
"says",
".",
"Ms.",
"Atkins",
",",
"whose",
"Lloyd",
"'s",
"membership",
"was",
"a",
"bonus",
"from",
"a",
"former",
"employer",
"in",
"1981",
",",
"belongs",
"to",
"Mr.",
"Nutting",
"'s",
"dissident",
"group",
"on",
"the",
"Outhwaite",
"syndicate",
",",
"which",
"has",
"been",
"hard",
"hit",
"by",
"asbestos",
"reinsurance",
"claims",
".",
"Ms.",
"Atkins",
",",
"who",
"underwrote",
"#",
"20,000",
",",
"or",
"about",
"$",
"32,000",
",",
"of",
"insurance",
"coverage",
"on",
"that",
"syndicate",
",",
"now",
"faces",
"potential",
"losses",
"of",
"roughly",
"#",
"70,000",
",",
"or",
"$",
"111,000",
".",
"``",
"If",
"Lloyd",
"'s",
"wants",
"#",
"70,000",
"out",
"of",
"me",
"they",
"will",
"have",
"to",
"take",
"everything",
"I",
"'ve",
"got",
"--",
"and",
"even",
"then",
"I",
"do",
"n't",
"know",
"if",
"it",
"will",
"be",
"enough",
",",
"''",
"she",
"says",
".",
"Unease",
"is",
"widespread",
"among",
"exchange",
"members",
".",
"``",
"I",
"ca",
"n't",
"think",
"of",
"any",
"reason",
"to",
"join",
"Lloyd",
"'s",
"now",
",",
"''",
"says",
"Keith",
"Whitten",
",",
"a",
"British",
"businessman",
"and",
"a",
"Lloyd",
"'s",
"member",
"since",
"1979",
".",
"``",
"The",
"downside",
"is",
"very",
"considerable",
",",
"and",
"at",
"the",
"moment",
"the",
"upside",
"is",
"very",
"marginal",
".",
"''",
"If",
"profits",
"do",
"n't",
"improve",
",",
"Mr.",
"Whitten",
"says",
"he",
"may",
"quit",
"the",
"exchange",
".",
"Meanwhile",
",",
"competition",
"from",
"rivals",
"unencumbered",
"by",
"history",
"is",
"intensifying",
".",
"Lloyd",
"'s",
"is",
"being",
"squeezed",
"out",
"of",
"low-margin",
"but",
"more",
"consistently",
"profitable",
"product",
"lines",
"such",
"as",
"primary",
"property",
"and",
"marine",
"insurance",
".",
"Over",
"the",
"past",
"decade",
",",
"competitors",
"have",
"chipped",
"away",
"at",
"the",
"exchange",
"'s",
"share",
"of",
"the",
"#",
"2.5",
"billion",
"marine",
"market",
"in",
"London",
",",
"where",
"half",
"the",
"world",
"'s",
"ships",
"are",
"insured",
".",
"Lloyd",
"'s",
"66",
"%",
"stake",
"in",
"that",
"market",
"has",
"shrunk",
"to",
"50",
"%",
"in",
"that",
"period",
",",
"according",
"to",
"an",
"official",
"at",
"the",
"Institute",
"of",
"London",
"Underwriters",
",",
"a",
"Lloyd",
"'s",
"competitor",
".",
"(",
"The",
"official",
"asked",
"not",
"to",
"be",
"named",
".",
")",
"Much",
"of",
"the",
"business",
"has",
"gone",
"to",
"the",
"institute",
",",
"an",
"association",
"of",
"more",
"than",
"100",
"insurers",
",",
"including",
"Cigna",
"Corp.",
",",
"Allianz",
"Versicherungs",
"AG",
"of",
"West",
"Germany",
"and",
"Britain",
"'s",
"Commercial",
"Union",
"Assurance",
"PLC",
".",
"Lloyd",
"'s",
"has",
"endured",
"decades",
"of",
"genteel",
"decline",
".",
"At",
"the",
"peak",
"of",
"its",
"power",
"and",
"influence",
"a",
"century",
"ago",
",",
"Lloyd",
"'s",
"dominated",
"the",
"insurance",
"world",
"with",
"a",
"50",
"%",
"stake",
".",
"It",
"virtually",
"dictated",
"how",
"ships",
"were",
"to",
"be",
"built",
"and",
"it",
"monitored",
"commerce",
"through",
"a",
"unrivaled",
"intelligence",
"network",
"in",
"ports",
"around",
"the",
"globe",
".",
"Today",
",",
"Lloyd",
"'s",
"share",
"of",
"the",
"world",
"market",
",",
"excluding",
"life",
"insurance",
",",
"is",
"about",
"2",
"%",
".",
"(",
"Its",
"stake",
"is",
"even",
"smaller",
"if",
"life",
"insurance",
"is",
"included",
".",
")",
"Bigger",
"rivals",
",",
"such",
"as",
"Aetna",
"and",
"Allianz",
",",
"backed",
"by",
"armies",
"of",
"statisticians",
"using",
"computers",
"in",
"hundreds",
"of",
"branches",
",",
"operate",
"more",
"efficiently",
"and",
"often",
"can",
"offer",
"lower",
"rates",
",",
"brokers",
"say",
".",
"Though",
"Lloyd",
"'s",
"pioneered",
"such",
"now-standard",
"policies",
"as",
"worker",
"'s",
"compensation",
"insurance",
",",
"burglary",
"insurance",
"for",
"homeowners",
"and",
"businesses",
",",
"and",
"bankers",
"'",
"liability",
"insurance",
",",
"competitors",
"now",
"underwrite",
"most",
"of",
"that",
"business",
".",
"Beyond",
"that",
",",
"many",
"big",
"oil",
",",
"chemical",
"and",
"airline",
"companies",
"are",
"siphoning",
"off",
"big",
"chunks",
"of",
"the",
"market",
"by",
"insuring",
"themselves",
"through",
"``",
"captive",
"''",
"offshore",
"companies",
"for",
"industry-specific",
"coverage",
".",
"Even",
"Lloyd",
"'s",
"specialty",
"--",
"unusually",
"risky",
"ventures",
"--",
"is",
"being",
"challenged",
".",
"Only",
"10",
"years",
"ago",
",",
"for",
"instance",
",",
"Lloyd",
"'s",
"was",
"the",
"pre-eminent",
"insurer",
"of",
"thoroughbred",
"horses",
".",
"But",
"since",
"1981",
",",
"Kirk",
"Horse",
"Insurance",
"Inc.",
"of",
"Lexington",
",",
"Ky.",
"has",
"grabbed",
"a",
"20",
"%",
"stake",
"of",
"the",
"market",
".",
"Ronald",
"Kirk",
",",
"president",
",",
"says",
"Lloyd",
"'s",
"has",
"suffered",
"because",
"its",
"structure",
"does",
"n't",
"allow",
"underwriters",
"to",
"deal",
"directly",
"with",
"clients",
";",
"brokers",
"are",
"required",
"intermediaries",
".",
"Thus",
",",
"he",
"asserts",
",",
"Lloyd",
"'s",
"ca",
"n't",
"react",
"quickly",
"to",
"competition",
".",
"``",
"Lloyd",
"'s",
"has",
"lost",
"control",
"of",
"the",
"situation",
",",
"''",
"he",
"says",
".",
"``",
"They",
"are",
"n't",
"controlling",
"their",
"destiny",
"like",
"they",
"used",
"to",
".",
"''",
"Murray",
"Lawrence",
",",
"Lloyd",
"'s",
"chairman",
",",
"agrees",
"the",
"exchange",
"faces",
"big",
"challenges",
".",
"``",
"This",
"is",
"a",
"watershed",
"time",
",",
"and",
"we",
"are",
"trying",
"to",
"plot",
"our",
"way",
"ahead",
",",
"''",
"he",
"says",
".",
"``",
"We",
"have",
"been",
"a",
"great",
"market",
"for",
"inventing",
"risks",
"which",
"other",
"people",
"then",
"take",
",",
"copy",
"and",
"cut",
"rates",
".",
"''",
"Lloyd",
"'s",
",",
"he",
"says",
",",
"is",
"cut",
"off",
"from",
"``",
"the",
"vast",
"body",
"of",
"premium",
"down",
"at",
"the",
"bottom",
"end",
"which",
"acts",
"as",
"a",
"steadying",
"influence",
"''",
"against",
"catastrophic",
"losses",
".",
"By",
"that",
",",
"he",
"means",
"low-margin",
"but",
"low-risk",
"products",
"such",
"as",
"certain",
"types",
"of",
"primary",
"property",
"insurance",
".",
"The",
"exchange",
",",
"he",
"says",
",",
"must",
"find",
"new",
"products",
"and",
"new",
"markets",
".",
"That",
"wo",
"n't",
"be",
"an",
"easy",
"task",
".",
"Tradition",
"is",
"dictator",
"at",
"Lloyd",
"'s",
".",
"Three",
"years",
"ago",
",",
"the",
"exchange",
"took",
"up",
"residence",
"in",
"a",
"space-age",
"tower",
"of",
"steel",
"and",
"glass",
"--",
"evocative",
"of",
"the",
"kind",
"of",
"modern",
"architecture",
"that",
"Britain",
"'s",
"Prince",
"Charles",
"has",
"denounced",
".",
"(",
"Some",
"exchange",
"wags",
"call",
"the",
"building",
"``",
"the",
"oil",
"rig",
".",
"''",
")",
"But",
"along",
"with",
"such",
"treasured",
"artifacts",
"as",
"Lord",
"Nelson",
"'s",
"spyglass",
",",
"Lloyd",
"'s",
"also",
"brought",
"its",
"outmoded",
"ways",
"of",
"doing",
"business",
".",
"The",
"Lloyd",
"'s",
"market",
"actively",
"underwrites",
"insurance",
"just",
"4",
"1/2",
"hours",
"a",
"day",
",",
"brokers",
"say",
".",
"Underwriting",
"does",
"n't",
"get",
"under",
"way",
"until",
"after",
"morning",
"tea",
"at",
"10",
"a.m",
".",
"A",
"two-hour",
"lunch",
"break",
"follows",
".",
"Things",
"wind",
"down",
"at",
"about",
"4:30",
"p.m.",
",",
"just",
"in",
"time",
"for",
"afternoon",
"tea",
".",
"Lloyd",
"'s",
"vast",
"trading",
"hall",
"houses",
"a",
"warren",
"of",
"well-polished",
"desks",
".",
"The",
"hall",
"'s",
"few",
"computers",
"are",
"used",
"mostly",
"to",
"send",
"messages",
".",
"Sandwiched",
"between",
"desks",
",",
"underwriters",
"sit",
"on",
"benches",
"surrounded",
"by",
"stacks",
"of",
"policies",
".",
"Brokers",
"clutching",
"thick",
"folders",
"stand",
"in",
"lines",
",",
"waiting",
"their",
"turn",
"to",
"speak",
"to",
"the",
"underwriters",
".",
"A",
"broker",
"may",
"have",
"to",
"approach",
"as",
"many",
"as",
"20",
"underwriters",
"who",
"insure",
"the",
"endeavors",
"on",
"behalf",
"of",
"the",
"syndicates",
".",
"It",
"could",
"take",
"six",
"months",
"for",
"a",
"claim",
"to",
"be",
"paid",
".",
"``",
"The",
"system",
",",
"''",
"says",
"Nicholas",
"Samengo-Turner",
",",
"a",
"Lloyd",
"'s",
"broker",
"who",
"left",
"the",
"exchange",
"in",
"1985",
",",
"``",
"is",
"so",
"ludicrously",
"unprofessional",
"it",
"drives",
"you",
"mad",
".",
"''",
"Some",
"maintain",
"underwriters",
"also",
"have",
"been",
"inept",
".",
"John",
"Wetherell",
",",
"a",
"Lloyd",
"'s",
"underwriter",
",",
"says",
"he",
"and",
"his",
"fellow",
"underwriters",
"underestimated",
"by",
"as",
"much",
"as",
"50",
"%",
"the",
"premiums",
"they",
"should",
"have",
"charged",
"for",
"property",
"risks",
"from",
"1980",
"to",
"1985",
".",
"``",
"How",
"unprofessional",
"we",
"must",
"have",
"appeared",
"to",
"the",
"outside",
"world",
"--",
"how",
"incompetent",
"at",
"risk",
"assessment",
"and",
"evaluation",
",",
"''",
"he",
"says",
".",
"Lloyd",
"'s",
"officials",
"decline",
"to",
"comment",
"on",
"the",
"matter",
".",
"More",
"recently",
",",
"property",
"rates",
"have",
"increased",
".",
"Many",
"at",
"Lloyd",
"'s",
"expect",
"the",
"San",
"Francisco",
"earthquake",
"will",
"cause",
"the",
"industry",
"to",
"boost",
"rates",
"even",
"further",
".",
"But",
"it",
"will",
"be",
"years",
"before",
"it",
"is",
"clear",
"whether",
"higher",
"rates",
"will",
"offset",
"the",
"payouts",
"for",
"such",
"disasters",
".",
"The",
"magnitude",
"of",
"the",
"exchange",
"'s",
"problems",
"may",
"not",
"become",
"known",
"for",
"some",
"time",
"because",
"of",
"Lloyd",
"'s",
"practice",
"of",
"leaving",
"the",
"books",
"open",
"for",
"three",
"years",
"to",
"allow",
"for",
"the",
"settlement",
"of",
"claims",
".",
"Lloyd",
"'s",
"only",
"recently",
"reported",
"its",
"financial",
"results",
"for",
"1986",
".",
"That",
"year",
",",
"it",
"posted",
"record",
"pretax",
"profit",
"of",
"#",
"650",
"million",
",",
"a",
"gain",
"it",
"attributes",
"to",
"higher",
"rates",
"and",
"fewer",
"claims",
".",
"But",
"Mr.",
"Lawrence",
"says",
"reported",
"profit",
"will",
"be",
"down",
"in",
"1987",
",",
"1988",
"and",
"1989",
",",
"though",
"he",
"declines",
"to",
"specify",
"how",
"steep",
"the",
"decline",
"will",
"be",
".",
"Insurance",
"analysts",
"say",
"the",
"exchange",
"'s",
"downturn",
"in",
"profitability",
"is",
"likely",
"to",
"be",
"aggravated",
"by",
"more",
"than",
"$",
"600",
"million",
"in",
"aviation",
"losses",
"(",
"including",
"the",
"1988",
"Pan",
"Am",
"airline",
"disaster",
"over",
"Lockerbie",
",",
"Scotland",
")",
"and",
"a",
"still-uncalculated",
"chunk",
"of",
"claims",
"from",
"September",
"'s",
"Hurricane",
"Hugo",
".",
"Lloyd",
"'s",
"says",
"the",
"departures",
"of",
"names",
"is",
"n't",
"likely",
"to",
"hurt",
"its",
"underwriting",
"capacity",
",",
"currently",
"about",
"#",
"11",
"billion",
".",
"Mr.",
"Lawrence",
"says",
"the",
"drain",
"of",
"funds",
"has",
"been",
"offset",
"by",
"an",
"increase",
"in",
"investments",
"by",
"the",
"remaining",
"names",
".",
"Meanwhile",
",",
"the",
"exchange",
"has",
"been",
"trying",
"to",
"lower",
"costs",
".",
"(",
"It",
"recently",
"cut",
"its",
"work",
"force",
"by",
"9",
"%",
",",
"or",
"213",
".",
")",
"But",
"Lloyd",
"'s",
"is",
"hampered",
"in",
"its",
"efforts",
"to",
"overhaul",
"operations",
"by",
"its",
"reluctance",
"to",
"embrace",
"modern",
"technology",
".",
"Mr.",
"Wetherell",
",",
"the",
"underwriter",
",",
"reckons",
"half",
"of",
"his",
"business",
"could",
"be",
"transacted",
"by",
"computer",
",",
"cutting",
"costs",
"at",
"least",
"10",
"%",
".",
"Though",
"Lloyd",
"'s",
"has",
"talked",
"for",
"years",
"about",
"computerizing",
"underwriting",
"transactions",
",",
"the",
"effort",
"has",
"n't",
"gotten",
"very",
"far",
".",
"Competition",
"among",
"underwriters",
"and",
"brokers",
"makes",
"them",
"loath",
"to",
"centralize",
"price",
"and",
"policy",
"information",
".",
"Both",
"groups",
"cling",
"to",
"traditional",
"face-to-face",
"dealings",
",",
"even",
"for",
"routine",
"policies",
".",
"Lloyd",
"'s",
"overblown",
"bureaucracy",
"also",
"hampers",
"efforts",
"to",
"update",
"marketing",
"strategies",
".",
"Some",
"underwriters",
"have",
"been",
"pressing",
"for",
"years",
"to",
"tap",
"the",
"low-margin",
"business",
"by",
"selling",
"some",
"policies",
"directly",
"to",
"consumers",
".",
"Lloyd",
"'s",
"presently",
"sells",
"only",
"auto",
"insurance",
"directly",
"to",
"the",
"public",
",",
"and",
"such",
"policies",
"are",
"sold",
"only",
"in",
"limited",
"markets",
"such",
"as",
"the",
"U.K.",
"and",
"Canada",
".",
"But",
"such",
"changes",
"must",
"be",
"cleared",
"by",
"four",
"internal",
"committees",
"and",
"dozens",
"of",
"underwriters",
",",
"brokers",
"and",
"administrators",
"before",
"being",
"implemented",
".",
"The",
"proposal",
"to",
"sell",
"directly",
"to",
"the",
"public",
"remains",
"mired",
"in",
"bureaucratic",
"quicksand",
".",
"Lloyd",
"'s",
"is",
"moving",
"forward",
"on",
"some",
"fronts",
",",
"though",
".",
"Mr.",
"Lawrence",
"says",
"the",
"exchange",
"is",
"updating",
"some",
"procedures",
"to",
"make",
"speedier",
"payments",
"on",
"claims",
".",
"By",
"next",
"year",
",",
"all",
"underwriters",
"will",
"be",
"linked",
"to",
"a",
"communications",
"network",
"that",
"could",
"reduce",
"paper",
"work",
"on",
"claims",
"."
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",",
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",",
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