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CNN LOU DOBBS MONEYLINE
Dow Declines to 7,872.15; Nasdaq Tumbles to 1,184.93
Aired September 23, 2002 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, HOST: A United Nations resolution that would require tough new demands against Saddam Hussein is gathering momentum at the United Nations. Today, the president urged the U.N. to show Saddam Hussein it won't tolerate any more of his lies. We begin with senior White House correspondent, John King.
JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Lou, more forceful words from the president today. Mr. Bush says the world must realize the United States will do whatever it takes to defend its freedom regardless of the cost and the timetable.
RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: American and British diplomats are working on a tough new resolution, but debates centers on what will trigger the use of force.
CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: In the markets today, the Nasdaq tumbled to its lowest level in six years. The Dow fell more than 100 points but it's still above its July lows.
JAN HOPKINS, CNN CORRESPONDENT: Market regulators fine Salomon Smith Barney and complain about former analyst Jack Grubman. Also today, Adelphia's founding families indicted for using that firm as a personal piggy bank.
ANNOUNCER: This is LOU DOBBS MONEYLINE for Monday, September 23. Here now, Lou Dobbs.
DOBBS: Good evening. President Bush today stepped up the pressure for tough United Nations resolutions against Iraq. The president said Saddam Hussein has misled the United Nations countless times. The president again said the United Nations must choose between being relevant or being weak. John King joins us from the White House with the story -- John.
KING: And Lou, we have heard that theme from the president consistently in recent days, but a bit more energy, a bit more urgency in the president's pitch today. U.S. and British diplomats preparing that resolution to present it at the United Nations. So Mr. Bush, while out on the road campaigning for a Republican Senate candidate today, said that the United Nations must step up to the challenge.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Soon they will tell the world whether or not they're going to be relevant or whether or not they're going to be weak. For the sake of world peace, I hope they're relevant. However, for the sake of freedom and peace, if the United Nations will not deal with Saddam Hussein, the United States and our friends will.
(END VIDEO CLIP)
KING: Vice President Cheney serving as an echo to the president. The vice president was out in Kansas also campaigning for Republican candidates. Mr. Cheney says anyone at the United Nations who does not believe there needs to be a tough resolution that makes it clear to Saddam Hussein that military strikes could follow any failure to comply with the United Nations -- Mr. Cheney says anyone who thinks that resolution is not necessary is simply ignoring Saddam's history.
(BEGIN VIDEO CLIP)
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Saddam Hussein promised the United Nations that he would destroy and cease further development of weapons of mass destruction and long range missiles and that he would submit to unrestricted inspections. He has flatly broken these pledges, producing chemical and biological weapons, aggressively pursuing a nuclear weapons program and working to develop long-range missiles. And for four years now, he has refused to admit U.N. inspectors, four years during which he has been able to plan, to build, and to test in secrecy.
(END VIDEO CLIP)
KING: Senior administration officials also on Capitol Hill negotiating with Congress over that resolution authorizing the president to use force against Iraq, but White House officials say they believe those talks are going quite well. Obviously, you can hear from both the president and the vice president, their focus on lobbying the United Nations. We should have a better sense, Lou, by the middle of the week as to whether the administration is correct as it tells us that private diplomacy has been much more encouraging so far than the public statements from some key Security Council members.
DOBBS: John, what is the White House reaction to the reelection of the German chancellor, Gerhard Schroeder? During the campaign, of course, Schroeder repeatedly criticizing the United States policy vis a vis Iraq.
KING: You might call it the cold shoulder, Lou. Germany, obviously, a key ally of the United States. The chancellor said today fresh from that reelection victory, he planned to call President Bush here at the White House. They say there are no plans for such a call. They also say they said no when the chancellor's office tried to call last week. In time, everyone believes there will there have to be some sort of a making up, if you will, but right now, the president still quite angry at the tone of the German chancellor's campaign and giving him the silent treatment for the moment.
DOBBS: Senior White House correspondent, John King, thank you.
U.N. officials could have a resolution on Iraq in days. That resolution is expected to back weapons inspectors and to endorse the use of force against Saddam Hussein should there be a failure to cooperate. But negotiations over what would trigger the use of that force are still underway. Richard Roth joins me from the United Nations with the story --Richard.
ROTH: Lou, tonight the U.S. ambassador to the U.N., John Negroponte tells CNN he expects a resolution on Iraq to be introduced in the Security Council within the next few days. The holdup apparently is still over language, especially a trigger over the use of force, should Iraq not comply with weapons inspectors.
The U.N. Security Council held a private lunch with Secretary General Kofi Annan, Hans Blix, a chief weapons inspector, the featured guest at that lunch. Earlier, Secretary General Kofi Annan was asked about President Saddam Hussein, saying over the weekend that Iraq would not accept a new council resolution if it was different from prior agreements between Annan and Iraq. Those agreements were about presidential palaces. Iraq says they're off limits except if international diplomats accompany the inspectors. Annan says if the council decides to change the resolutions, in effect, it's OK with him.
(BEGIN VIDEO CLIP)
KOFI ANNAN, UNITED NATIONS SECRETARY-GENERAL: What is important is we advise that Iraq is not to hedge their acceptance of the return of the inspectors, and that it has to be clear, that it is -- they are going back, without conditions, and they will cooperate with them to do their work.
(END VIDEO CLIP)
ROTH: Inside that Security Council lunch, France was believed to have said about the issue of force in a resolution, why do we need to get into this at this time? Secretary General Annan also denied any political rift between himself and the Bush administration -- Lou.
DOBBS: Richard Roth from the United Nations, thank you.
Federal health officials today issued guidelines for the vaccination of everyone in this country against small pox within days of an outbreak. The decision to publish the document reflects concerns that a terrorists or a state supporting terrorists might have access to the smallpox virus. Medical correspondent, Elizabeth Cohen, has the story for us -- Elizabeth.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Hi, Lou, I have here in my hands the CDC's plan. This is the plan for everybody, potentially, in the United States to get vaccinated against smallpox. As you said, the CDC decided to do this because they're worried that a terrorist might take some of the smallpox virus that is in reserve in the CDC here in Atlanta and in Russia and use it as a weapon of mass destruction.
Let's take a look at what this report says. It says, "Following a confirmed smallpox outbreak within the U.S., rapid voluntary vaccination of a large population may be required." Now, they emphasize the "may" and the reason for that is that the CDC is saying, you know what, if there's an attack, we may begin mass vaccinations. There's no need to do it before an attack, but we might do it if there is an attack.
Now, you might be asking yourself, well, gee, why wouldn't you want to vaccinate the public before an attack to prevent people from getting sick? The reason for that is that if they vaccinated the entire population of the United States, between 300 and 350 people would die. This is a very dangerous vaccine, so they don't want to start mass vaccinations unless they actual absolutely have to.
So again, the CDC says, "You know, we don't have, at this point, enough vaccine for everybody. We expect to by the end of the year." And if there's a smallpox attack in United States, they won't necessarily vaccinate absolutely everybody. First of all, it would be voluntary. Second of all, it may only need to be isolated areas where the attacks are -- Lou.
DOBBS: And Elizabeth, any particular reason for this document being released today?
COHEN: You know what, the CDC has been working on this for a long time. There were sort of two prevailing theories as to how do this. You could go to the site of an attack, just vaccinate people there and then, do what are called increasing concentric circles, to do the people who those people had contact with and so on and so on, sort of creating a larger and larger area. And the, there was another argument that says, you know, maybe we should just be doing mass vaccinations. So that argument has been going on for some time and that's what led up to this report coming out today.
DOBBS: Elizabeth Cohen, thank you.
COHEN: Thanks.
Turning to the Middle East, Palestinian gunmen today killed one Israeli and wounded three others in the West Bank city of Hebron. The victims were shot near the Cave of Patriarchs, a shrine holy to both Jews and Muslims. Finally, the Israelis decided to continue to surround Yasser Arafat's offices in Ramallah today. Israel stopped demolishing buildings in the complex yesterday. The only building still standing, however, is Arafat's headquarters. Israel has demanded the surrender of 50 terrorist suspects it says are riding within, but Arafat says there are no terrorists in that building and he's refusing to hand over any Palestinians to the Israelis.
On Wall Street today, stocks tumbled across the board. Grim earnings news and heightened tension over Iraq pushed the Nasdaq index to a six-year low. The Dow suffered its third triple digit loss over the past five sessions. The Dow today dropped 114 points. It had been down earlier almost twice that amount. The Nasdaq dropped 36 points on the day. The S&P 500 lost almost 12.
And later in the broadcast, we'll have a special report on airlines' latest request for another bailout. In tonight's "MONEYLINE" line poll, we ask -- should there be another federal bailout of the American airline industry? Cast your vote at CNN.com/MONEYLINE. We'll have the results for you coming up.
Next, Hurricane Isidore is once again a tropical storm, but forecasters now warn it is not going to stay that way for long. And we will have a report for you on what is next for Isidore and inhabitants along the Gulf Coast.
A disturbing new study reveals that some of our nation's most prized national parks are polluted and heavily polluted; some as heavily polluted as major cities. We'll have a special report on the key players in the West Coast port dispute. We'll tell you who's making the decisions that could affect billions of dollars in international trade.
And a remarkable September 11 tribute that you won't see anywhere else, an inspirational journey from Ground Zero to the Pentagon. More than a 1,000 people rode and we were there, every mile of the way. Stay with us.
(COMMERCIAL BREAK)
DOBBS: The former and, perhaps, future Hurricane Isidore continues to pound Mexico's Yucatan Peninsula tonight. Coastal residents in the United States are also now preparing for that storm's arrival. Isidore has weakened to a tropical storm, but forecasters expect the storm to regain strength as it moves back into the Gulf tonight. The eye of the storm crossed the Yucatan Peninsula earlier this morning. Ten to 20 inches of rain falling across the peninsula. Winds reached peaks of 125 miles an hour. Hundreds of thousands of people without power and at least two deaths have been reported.
Now, residents along the Louisiana Coast have been notified to make preparations for Isidore's arrival. It could happen as soon as Thursday. Residents there have been advised to stock up on supplies and many people moving north in preparation.
A stubborn wildfire in California tonight is burning out of control. The blaze in the Angeles National Forest has doubled to 2,500 acres over the past 24 hours. The fire has forced the evacuation of several campgrounds and several homes. The fire started Sunday. It's only about five percent controlled. Firefighting efforts have been hampered by record high temperatures and low humidity.
The air in Los Angeles is considered to be among the most polluted in the country, but a new study shows that some of our national parks are just as bad, if not worse. CNN's science correspondent Ann Kellan joins me and has the story -- Ann.
ANN KELLAN, CNN SCIENCE CORRESPONDENT: Well, Lou, if you go for a hike in a national park you may think you're getting away from city smog. Well, think again. A survey released by the National Parks Conservation Association finds that you won't be breathing easier going camping or going for that bike ride these days.
Take a look at the survey's top five most air polluted national parks in the U.S. -- The Great Smokey Mountains National Park in Tennessee and North Carolina. Nine people visit every year. Shenandoah National Park in Virginia, Mammoth Cave National Park in Kentucky, Sequoia and King's Canyon National Park in California and Acadia National Park in Maine. Not only can you breath it, you can see the difference.
Now, let's take a look. This is a good day versus a bad air pollution day in the Smokey's. Which day would you like to visit that park? Now, the cause of the pollution is different in the eastern versus the western U.S. According to the survey, in the east, the air pollution in the Smokey's, Shenandoah, Mammoth Caves, Arcadia, is largely blown in from old coal coal-fired power plants. These old plants are exempt from complying with certain conditions in the Clean Air Act, so they emit more pollution. That pollution moves like the weather from the coal burning plants downwind to the parks. And by the way, communities and homes near the parks are also breathing this air.
Now out west, Sequoia and King Canyon National Parks get most of its pollution from traffic, the tail pipe emissions from millions of vehicles blown into the parks from nearby cities and towns. Now, in Sequoia last year alone, ground ozone levels -- and that's pollution -- went above human health standards for 61 days in the summer, which puts people, especially the elderly and those with asthma at risk. Acadia National Park is in trouble mostly from the pollution blowing in from other states and that comes down as acid rain.
Now, get this -- the pollution in the parks surpasses most major cities. L.A., known for its smog, in the last five years of the study, ground ozone level in the Smokey Mountain National Park was worse than the ozone level in Los Angeles. And over 11 years, L.A. is the only city with air quality worse than these five parks. Worse than cities like Atlanta, Houston, Denver, New York City, Washington D.C., all have better air quality than these five national parks.
Now possible remedies, the National Parks Conservation Association wants tougher air quality regulations, especially for those old coal-burning plants. But Lou, that's, of course, an economical debate. Who pays to breathe better air and how much? And no, this group does not think the Bush administration is doing an adequate job pushing for tougher regulations -- Lou.
DOBBS: Ann, a fascinating story, a disturbing one not only for the national parks, but for those who must live and breathe the air near those parks. Could we ask you to do something over the course of this week, particularly in regard to the coal plants, those coal fired plants -- could we, please, report on the companies that own those plants, the utilities that operate them, and begin to take a serious look at this, what is obviously a very serious problem?
KELLAN: Sure, and I think it's a good idea to look and find out the reasons and the obstacles they face in meeting these emission regulations.
DOBBS: Anne Kellan, I think you're exactly right and we look forward to your next report here.
KELLAN: Thank you, Lou.
DOBBS: Still ahead, why pharmacy co-payments do not always offer consumers a good deal on prescription drugs. In fact, its opposite is often the case.
The airline industry wants billions of dollars of new help from the government. We'll tell you why the airlines say they deserve another bailout.
The threat of a shutdown continues to hang over West Coast ports. We'll have a special report on the key players involved in this dispute that could affect billions and billions of dollars in international trade.
And you may be pleased to know the Emmys are over. It's back to business in the television business and it's a cutthroat business. That story and a great deal more still ahead. Stay with us.
(COMMERCIAL BREAK)
DOBBS: The airline industry wants billions of dollars of extra money from Congress to recover from the September 11 terrorist attacks. The airline industry has already received $5 billion of taxpayer money. Now, it wants another bailout. Tim O'Brien reports.
(BEGIN VIDEOTAPE)
TIM O'BRIEN, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): The recession and 9/11 devastated the airline industry, but those who thought it couldn't get worse were wrong.
JIM CORRIDORE, S&P TRANSPORTATION ANALYST: Business travel has not improved. Yields have remained horrible in the industry and we've seen no positive indicators that anything is turning anytime soon. So it's starting to look like 2002 will be a very poor year and probably the worst year in history for the airline industry.
O'BRIEN: Jet fuel prices jumped as much as 30 percent last month. The increase in the cost of insurance has been staggering.
CAROL HALLETT, AIR TRANSPORT ASSOCIATION: Prior to 9/11, the entire industry was only paying $15 million a year. The day after 9/11, that jumped to $903 million a year being paid by the airlines for war risk insurance.
O'BRIEN: At the very least, the industry feels the government should pick up that insurance cost. The government is also taking a larger chunk of what the consumer pays to fly. Ten years ago, 15 percent of a single connection, $200 round trip ticket, went to taxes. Today, it's almost twice that.
Most of the stocks of the big carriers have plummeted far below the post 9/11 lows and analysts seem to agree that without government help some may follow U.S. Airways into bankruptcy. Free market advocates say that's not a sufficient basis for a bailout. FRED SMITH, COMPETITIVE ENTERPRISE INSTITUTE: What bankruptcy does is merely change the management structure. We don't blow up the airplanes; we don't shoot the pilot lots. We basically give them under a management team that gives a chance for them to provide more useful, more air friendly services.
(END VIDEOTAPE)
O'BRIEN: Congress is expected to be a little more sympathetic, but any relief is still likely to be linked to the added costs of the war against terrorism, rather than the inherent difficulty in running a successful airline in difficult economic times -- Lou.
DOBBS: Something that not many of the airlines have been able to demonstrate over the past years. Tim, thank you very much. Tim O'Brien from Washington.
And that brings us to our poll tonight. The question is should there be another federal bailout of the airline industry. Cast your vote at CNN.com/MONEYLINE. We'll have the results for you coming right up.
And negotiations on the West Coast port dispute resume today. Los Angeles, the country's largest port came within hours of a shutdown late last week. Too little known organizations are locked in what has been a five-month dispute that threatens the entire country's economy. Casey Wian has the report.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): The Pacific Maritime Association represents shipping lines from all over the world that move a quarter of a billion tons of cargo to the western United States each year. Cars, lumber, crops, clothes, and toys, PMA members handle goods worth $300 billion a year through 29 West Coast ports. Normally, fierce competitors, PMA members have joined forces to win concessions from the powerful union representing workers on the docks. With the volume of container traffic expected to double by 2020, shippers want more efficiency at increasingly crowded cargo terminals.
JOSEPH MINIACE, PRESIDENT, PACIFIC MARITIME ASSOCIATION: And this is not "Star Wars" technology and most people know that. This is the technology that we see and use every day when you go to the grocery store or when the UPS man drives up and gives you a package. So the issues are really not that complex.
WIAN: For the 10,000 member International Longshore and Warehouse Union, the issues are protecting 700 clerical jobs threatened by new technology and improved safety. Full-time ILWU workers earn $107,000 a year on average, even part-timers make about 80,000. Their contract expired July 1 and negotiations have dragged on nearly five months. Shippers want arbitration and a federal mediator is offering to help, but the union refuses.
JAMES SPINOSA, PRESIDENT, ILWU: We don't feel that any mediator or anybody from the outside can do a job better than we can do. Collectively, we know the industry. We've been able to put contracts together for over 30 years now without any type of strike or problem areas. And we should be able to get there this time.
WIAN: Shippers accuse the union of selective strikes and work slowdowns. The union says shippers are rushing cargo to port in anticipation of a strike. Ports are deploying additional security.
(on-camera): A strike would have a significant impact on the United States economy. Trades through West Coast ports represents seven percent of the U.S. Gross Domestic Product and it provides four million jobs.
Casey Wian, CNN, Long Beach, California.
(END VIDEOTAPE)
DOBBS: Coming up next, a new controversy over prescription drug costs. We'll have a special report on whether patients are being ripped off. Indictments handed down in the Adelphia case. Founder John Rigas and four other people charged with several counts of fraud and conspiracy.
Also tonight, a new season of television shows borrows heavily from the old. A special report there as well on a journey of hope and determination.
We ride along on a remarkable three-day journey from Ground Zero to the Pentagon. Stay with us.
(COMMERCIAL BREAK)
DOBBS: There were a few surprises at the Emmy Awards in Los Angeles last night. Old favorites like "Everybody Loves Raymond" and "The West Wing" took home several awards. There were some first time winners, including Ray Romano for "Best Actor in a Comedy." And NBC and HBO tied for the network with the most awards, 24 of them. CBS was second with eight awards. FOX won seven. A&E six, ABC five.
The new fall television season begins tonight. Like many shows honored at the Emmy's, the season appears to be dominated by what many might call familiar themes. Susan Lisovicz has the story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Well, you two move in here with us. That is if it's OK with your mother.
UNIDENTIFIED FEMALE: But you do your own laundry.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT, (voice-over): Not since "All in The Family" has a prime time sitcom revolved around a couple that moves in with the bride's parents.
UNIDENTIFIED FEMALE: More tuna casserole, please.
LISOVICZ: But then again, this is a season where tuna casserole and even "American Bandstand" make a comeback. The new fall TV lineup is a sort of comfort food in itself. So nostalgic that FOX is bringing back the variety show. UPN is resurrecting "Twilight Zone" and WB is updating "Family Affair." Some experts say it's TV's response to 9/11.
UNIDENTIFIED MALE: Why do you think you should have a belly button ring?
UNIDENTIFIED FEMALE: Well, I think that...
UNIDENTIFIED MALE: No!
STACY LYNN KOERNER, TV ANALYST, INITIATIVE MEDIA: We've taken a step back. We've thought about what's important to us. And so, I think the types of programming we're seeing are what I would call more "we" oriented. It's more about where do we fit in with the world, how important our families are to us.
LISOVICZ: ABC is offering an edgy mystery drama "Push, Nevada," but familiar faces like Bonnie Hunt and John Ritter define much of the rest of the slate.
JOHN RITTER, ACTOR: If you make her cry, I will make you cry.
JON MANDEL, CO-CEO, MEDIACOM: The problem is America isn't in the 70's and 80's anymore. So the John Ritter show, "Eight Simple Rules About Dating My Daughter," is very funny and very clever, but it sort of belongs on Nick at Night.
LISOVICZ: And the comparisons to cable don't end there. The network's fall lineup, described in many quarters as safe, is in sharp contrast to the risks taken at HBO.
STEPHEN BATTAGLIO, TV WRITER: The networks still have the restraints of being an advertiser supported medium. And when you have -- when you have -- so you not only have to please the viewer, but you've got to put something on that the advertiser is going to feel comfortable running their commercials in as well.
LISOVICZ: The majority of new shows don't even make it to the end of their first year. Even in a warm and fuzzy season, that is no laughing matter.
Susan Lisovicz, CNN Financial News, New York.
(END VIDEOTAPE)
DOBBS: Well, as television families return to more traditional models, we decided to take a look at what the typical American family actually looks like.
According to the latest census figures, married couples without children, in fact, make up the biggest percentage of American households: almost 29 percent. The group includes retired couples whose children have left home. The second biggest group is married couples with children. They account for 24 percent of households. Thirty years ago, married couples with children were the largest group. They made up 40 percent of households then. The percentage of households without children and those where men and women live alone, have increased dramatically since then.
Well, several developments in the fight against corporate crime to tell you about tonight. A grand jury indicted five former Adelphia executives on criminal charges, including securities fraud, wire fraud, and conspiracy. Separately, the NASD fined Salomon Smith Barney $5 million for issuing misleading research reports and it also filed a complaint against two of the firm's worst offenders.
Jan Hopkins is here now to keep us up-to-date on our corporate criminal crime watch.
HOPKINS: We have a lot of things going on this week and especially today. The NASD complaint is against Jack Grubman, the former Salomon analyst and his assistant. But the NASD says that it's looking at other analysts at the firm and their e-mails. This particular case is about Winstar, a telecom company that filed for bankruptcy last year.
DOBBS: A favorite of Jack Grubman.
HOPKINS: Yes, a favorite. In fact, he was recommending the stock as a target of 50. The stock actually went to 14 cents. Fifty dollars he thought, 14 cents and the company filed for bankruptcy.
DOBBS: Small margin of error.
HOPKINS: Yes, small margin of error. David Ruder, former SEC chairman, had this to say about a number of e-mails at Salomon.
(BEGIN VIDEO CLIP)
DAVID RUDER, FORMER SEC CHAIRMAN: What these e-mails show are not only that these analysts did not have a reasonable basis for making their recommendations but in some cases, the recommendations themselves were misleading.
(END VIDEO CLIP)
HOPKINS: Now, Lou, Salomon did settle with the NASD for $5 million on the Winstar case. Salomon wants to move on. But the NASD does say that it's going to look at other analysts at the firm.
Grubman did not settle, but he has a lot bigger issues. This is a civil case. He also is being investigated for criminal charges by the attorney general in New York and the Justice Department. So that might be part of the reason he's not settling with one, he doesn't want that to be used in the, you know, the possible cases that could land him in jail.
Speaking of jail, we have another case today. We have indictments against the Rigas family. The founding father of Rigas, John Rigas and his two sons, Michael and Timothy, also two former executives at Adelphia were charged in a 24-count indictment on securities, wire and mail fraud. The prosecutors are saying that basically these executives used Adelphia as a personal piggy bank.
For example, $50 million in cash advances, $13 million of that went for a golf course on land that was owned by the Rigas family. So that's -- and, in fact, there is $2 billion that they're trying to get back from the Rigases and other executives.
DOBBS: It's an amazing story. You find yourself trying to put in balance and proportion, $13 million for a golf course or $2 million for your wife's birthday party in Sardinia, as Dennis Kozlowski did at Tyco.
Actually, the golf course sounds like a better and more permanent deal, doesn't it?
HOPKINS: Maybe. Kozlowski is in court tomorrow. We'll tell you about that.
DOBBS: Look forward to it. Thank you very much, Jan.
Well, the charges against the five former Adelphia executives are already included in our Enron corporate America criminal scoreboard. They account for five of the 21 executives who have been charged in all of corporate America. Still, one Enron executive has been charged. The update tonight, 295 days since Enron filed for bankruptcy.
Well, stocks suffered a broad-based decline today, nearly $140 billion in market cap was wiped out. The Nasdaq down, falling below 1200 for the first time, in fact, since September of 1996.
Christine Romans has been following the day's sell off and is here now. Christine, a tough day again.
ROMANS: A really tough day. September 1996 for the Nasdaq. Those July lows, they're completely out of the picture, at least for the Nasdaq. The S&P and the Dow though, holding in those lows. Now -- barely.
The Dow, at 7702, was the closing low from July. So some people still, Lou, think that oh, That's going to hold. That will hold for the broader market.
DOBBS: They were saying that last week about the Nasdaq low as well.
ROMANS: Yes, they were. And now, you know, 1996, I remind you, that the No. 1 song in this nation was the "Macarena."
DOBBS: "The Macarena?"
ROMANS: "The Macarena." Remember how long ago that was? That's the last time we had the Nasdaq at these levels.
DOBBS: I kind of like "The Macarena." I don't like 1996 levels. Do you know the big movie of the year?
ROMANS: Yes, "The First Wives Club." Remember that one?
DOBBS: (UNINTELLIGIBLE). . even financially related. Jack Welch?
ROMANS: Yes, so you know, these are the kind of days we're in right now. But...
DOBBS: I suppose the six-year sequel to something like that could be something like "Second Wives Club" and also be relevant.
ROMANS: Or it could be "Widows of the Market Boom" or something like that. We could -- we could make it something like that.
DOBBS: As we all grieve.
ROMANS: Most of the most active stocks on the big board were lower today, substantially lower, except for Citigroup was a little bit higher, interestingly enough.
Also, Fed meeting tomorrow.
Have you heard anybody talking about the Fed the last few days?
DOBBS: The Fed's meeting about what?
ROMANS: Yes, exactly. The Fed's meeting tomorrow. No change in interest rates expected.
Meanwhile, bond yields at 44-year lows.
Still watching these pre-announcements coming in. Maytag the latest casualty there, NYG down about a dollar in post market. So, we expect that one to be weak tomorrow.
DOBBS: This is -- this is really ugly. As we look back to those July lows, we've now penetrated those here in the end of September.
I don't know what to say. There's just no strength in earnings to speak of.
ROMANS: No.
DOBBS: What's it going to take to move this market out?
ROMANS: I have no idea, but no one is expecting anything out of the Fed tomorrow.
DOBBS: Well I didn't know that you'd mind. But I was wondering if you heard...
ROMANS: I'll tell you after the show.
DOBBS: I was wondering if you might know somebody who did. ROMANS: No, I really know a lot of people who have a lot of different opinions about this market. They don't think there's going to be a double dip recession, but a lot of opinions about this market and it continues to just trek lower.
DOBBS: Of course, we do hear about asset allocation, people willing to say that we should raise the amount of money you want to put in stocks now.
ROMANS: What about cash?
DOBBS: We don't hear about them here, however. Thank you very much, Christine.
ROMANS: Sure.
DOBBS: More and more, consumers are saying they're paying far too much for prescription drugs. Consumers are squeezed now between massive drug chains, pharmaceutical middlemen who work on behalf of insurance companies, the big insurance companies, of course, and the big drug companies themselves.
And many of those drugs cost significantly less than the co- payments that you are paying.
Steve Young reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: It's an antihistamine and decongestant combination.
UNIDENTIFIED WOMAN: And a decongestant?
UNIDENTIFIED MALE: Usually, I recommend taking them separately.
STEVE YOUNG, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): More than 200 million Americans with drug insurance fill their prescriptions at drug stores that work with middlemen known as pharmacy benefit managers, or PBMs.
Three huge PBMs and some others have negotiated pharmacy chains into selling a month's supply of certain drugs for as little as a buck, while PBM co-payments typically run $5 to $20.
Thirty days of the heart drug furosemide was negotiated down to an incredible 76 cents by a PBM working for Harvard Pilgrim Health Care.
Saying Pilgrim did not disclose the discount and charged a $5 co- pay, two Massachusetts customers sued. They lost the case. It's on appeal.
One of the biggest PBMs, Express Scripts, says it gets below co- pay deep discounts on only 4 percent of the its contracts. Critics disagree. STUART ROSSMAN, NATIONAL CONSUMER LAW CENTER: We're not just talking about a couple of minor generic drugs. We're talking about a whole raft of commonly prescribed drugs, both generic and non-generic, that cost less than the co-payments.
YOUNG: When PBMs do negotiate a price of a dollar or less for a drug, they often give the up to $20 co-pay to the pharmacy.
CRAIG FULLER, NATIONAL ASSOCIATION OF CHAIN DRUG STORES: The pharmacy is interested in capturing both the cost they're paying for that medication as well as the cost that's associated with stocking the drug, hiring the pharmacist, keeping the lights on in the pharmacy.
YOUNG: One pharmacist said it's a trade-off in an industry forced by PBMs to operate on less than a 1 percent profit margin.
TOM KELLEY, OWNER, THE MEDICINE SHOPPER: There are a significant number of prescriptions at retail pharmacies where they actually lose money.
YOUNG: In the "Alice and Wonderland" world of health care economics, some PBMs let you choose between the co-pay and the cost of the drug, whichever is less, but they're in the minority.
Steve Young, CNN Financial News, New York.
(END VIDEOTAPE)
DOBBS: Coming up next, Philip Howard will be here to tell us why lawsuits arising from September 11 should not be allowed.
And a remarkable story of determination. A three-day journey of tribute from Ground Zero to the Pentagon. That and a great deal more still ahead.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: We want to give you the results of our MONEYLINE poll tonight. The question, as the air carriers are asking for more federal money, should there be another federal bailout of the airline industry? And while this is not a scientific poll, it is our poll and we're very proud of it, and we're pleased at your participation. Only 17 percent of you say yes, that there should be another bailout of the airline industry. An overwhelming 83 percent saying no.
Well, let's turn to our weekly look at the law. That means it's time to talk to Phil Howard. The issue is the victims of September 11 and whether they should be allowed to sue.
I thought this had been resolved through the special master and that these families were being compensated through the overall fund.
PHILIP HOWARD, AUTHOR, "COLLAPSE OF THE COMMON GOOD": Well, Congress foresaw a potential legal nightmare, and so imposed one condition on the victim compensation fund, which is to get money from this fund, which is much more generous than soldiers in war get if they lose their lives, for example, they had to agree not to sue anyone other than somebody who was willfully involved, like the terrorists.
But as it turns out, the anger is so great and the need to place blame and to find satisfaction is so great that hundreds of families are considering suing. Very few have accepted the funds. And 30 families have already sued the airlines, the Port Authority and a variety of other parties they seek to blame.
DOBBS: They seek to blame them, and how much is the fund offering the victims of September 11?
HOWARD: It's an average of about $1.5 million per family, compared to, in war, what a family of a soldier is killed in the course of duty gets is a $6,000 death gratuity, it's called, a $250,000 life insurance policy, and an American flag.
DOBBS: Well, this is a very difficult, a very difficult issue, $1.5 million on average. That seems at first to be reasonable. What is the basis for the suit or for the reluctance to accept it?
HOWARD: Well, I think for some families, it's just the magnitude of the tragedy. And it's very understandable. Money can't satisfy the loss, and some families simply will give up the money in order to litigate. And the litigation could, literally, go on forever.
DOBBS: Who would they sue? Certainly it's not the airlines' fault. The terrorists had taken the airlines. It was not the World Trade Center's fault. Who do they sue?
HOWARD: Well, they can say if the airlines had done this differently, if the Port Authority had better procedures for evacuating the World Trade Center -- they'll come up with arguments. Lawyers can always come up with arguments.
DOBBS: What do you recommend here?
HOWARD: I think that the special master should be given absolutely authority, you know, subject to administrative appeal to make the decision and all lawsuits should be barred, except against the terrorists.
DOBBS: What's required to do that?
HOWARD: Congress has to change the law to bar the lawsuits, because we're on the verge, literally, of a legal implosion. These lawsuits could go on forever.
DOBBS: Firefighters, the policemen?
HOWARD: Yeah, other -- 1,200 firefighters have now made a claim that their equipment was inadequate during those frantic days of the cleanup, and so they breathed too many toxins. They're suing the city of New York for $9 billion. Who is going to pay for that? It comes out of schools, health care. And under their deal, because firefighting is a dangerous occupation, they get a three-quarters disability tax-free, so it's built into the deal, the danger, but that's not satisfying them either.
DOBBS: This is becoming -- it's moving to the verge of becoming obscene for all of the wrong reasons. We know the clear and unequivocal overt ones of September 11. This is...
HOWARD: Well, what will happen is it will never get to a point of true fairness. Every time one person gets one amount of money, somebody else will be unhappy and bitter.
DOBBS: Phil Howard, thank you very much.
HOWARD: Thanks, Lou.
DOBBS: "CROSSFIRE" begins in just a few minutes. Let's go to James Carville and Tucker Carlson in Washington -- Tucker.
TUCKER CARLSON, CO-HOST, "CROSSFIRE": Lou Dobbs. Democrats still can't figure out what they think about the coming war with Iraq, but they do have a new slogan, "give peace a chance." "Free be you and me" was the close runner-up. We'll talk to one of the people espousing this new bumper sticker tonight.
JAMES CARVILLE, CO-HOST, "CROSSFIRE": And Lou, there's two things Americans love more than anything else, food and television, and we'll be talking about that, because there seems to be more bad television and more bad food out there. So here on "CROSSFIRE," we'll give you some good television and hope they're eating some good food while they watch it. It's sweet Lou Dobbs.
DOBBS: James, thank you for that. Tucker, we look forward to watching you tonight.
CARVILLE: We will be looking forward to the Playboy too.
DOBBS: There you go again. Thank you very much, James. "CROSSFIRE" is coming right up.
Well, last week here, we told you about a tribute to the victims of the September 11 terrorist attacks. That tribute caught our eye because it shows so much determination and hope. A sports charity, World Team Sports, organized a bicycle ride from Ground Zero in New York to the Pentagon. More than 1,200 people made that trip over this past weekend. Many of them were relatives of those who died on September 11, including John Morrella (ph), who lost his son. Our Peter Viles rode along, and this is his story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: It gives me something to do, which I guess I need. I can't dwell on the negative of it. He's gone. He's never coming back.
UNIDENTIFIED MALE: One, two, three.
UNIDENTIFIED MALE: I'm riding for Maria Bare (ph), she was at Cantor Fitzgerald, friend of mine.
UNIDENTIFIED MALE: I'm riding for my friend, Damien Picassio (ph), who worked for Cantor Fitzgerald as well.
UNIDENTIFIED MALE: What really tore me up this morning was that ferry light. You're sitting on the back of that boat, looking out over the water and looking at the skyline. And you -- it's impossible not to see what's missing. It's just...
UNIDENTIFIED MALE: Like a hole in the sky.
UNIDENTIFIED MALE: I just sat on that seat at the back of the ferry and started crying. I just -- I couldn't help it.
UNIDENTIFIED MALE: (UNINTELLIGIBLE) on the table inside the camp. Bring your plate back for seconds.
UNIDENTIFIED FEMALE: God bless you. Good luck.
UNIDENTIFIED MALE: Thank you.
UNIDENTIFIED MALE: All the firefighters in New York who lost their lives that night, that day, I'm riding for them. I'm a Bayonne firefighter. So my way of saying, you know, you're not going to be forgotten. Thanks.
UNIDENTIFIED MALE: The old (UNINTELLIGIBLE) about I was crying because I had no shoes until I saw a guy that didn't have any feet -- it's true. And you look at these guys. They're living proof.
UNIDENTIFIED FEMALE: Hello. Enter to your right.
UNIDENTIFIED MALE: We did it, brother. We did it.
UNIDENTIFIED MALE: We're here!
UNIDENTIFIED FEMALE: We did it.
UNIDENTIFIED MALE: It has been a long day. Twelve hours, but I feel great. Feel great to be here. It's worth every mile. Every mile.
UNIDENTIFIED MALE: Day three, on our way.
UNIDENTIFIED MALE: Beautiful morning, man. How you doing?
UNIDENTIFIED FEMALE: I'm riding for Lieutenant Ronny Keith (ph), FDNY squad 288. It's really been a fantastic ride. Everybody helping each other, (UNINTELLIGIBLE) together. It's great to see America the way it should be.
UNIDENTIFIED MALE: People got to speak about their loved ones in ways of positiveness and happiness and not so much sadness. It was a real positive and enthusiastic spirit throughout the ride.
UNIDENTIFIED MALE: It's a great thing for the house. It's tremendous. The guys need something like just to put them together. And this was perfect.
(END VIDEOTAPE)
DOBBS: They weren't raising money. They were just raising spirits, and what a wonderful tribute. We'll continue here in just a moment.
(COMMERCIAL BREAK)
DOBBS: A few thoughts tonight on Treasury Secretary O'Neill's statement today that the worst of the corporate scandals is behind us. While I thank the secretary for his reassurance, I'm not entirely sure why he's offering it. He made his comment, he said, based on the fact that the August 14 deadline for CEO and CFO certification for financial statements is past.
Now, Secretary O'Neill is responsible for many things, but corporate governance isn't one of them. That's the purview of SEC Chairman Harvey Pitt, and I'll wait for Mr. Pitt's version.
As far as criminal investigations of corporations, that's the purview of the Justice Department, not the Treasury Department. And it's clear that the Justice Department is in the early stages of many investigations, not at the end. For example, the Enron investigation. We've been told by the Justice Department it's far too complex for a ready resolution. That we'll have to be patient, and we will be, of course. But we'll also be paying close attention to the course of all the investigations to see whether in the course of that investigation, whether the banks that put together roundtrip financing that looked a lot like debt and more or less like some kind of revenue, to see what the Justice Department view is of the law firms that gave professional opinions, on both the legality and propriety of the partnerships and the financing that were used to manipulate Enron's financial statements.
So Secretary O'Neill, I'm not entirely sure what you know about these investigations and where they're leading, but I sure hope you're not overpromising, and I sure hope the Justice Department and the SEC won't be underdelivering.
Let's take a look at your thoughts. The situation with Saddam Hussein in Iraq continues to dominate viewer response. Patrick in Fort Madison, Iowa, wrote in to say: "I feel the American way of life is threatened much more by the corporate malfeasance and Wall Street betrayal of public trust than from some third-rate dictator in Iraq."
Ron Wambolt of Woodway, Washington, however, supports the president's position on Iraq. He writes to say: "I'm surprised and disappointed that I'm part of an audience having so many pacifists."
Many of you wrote in about our new feature, the CEO of the week, which we'll air here every Friday. This past week, we featured Aaron Feuerstein, who continued to pay his employees after his factory burned down. Janet Hubner of Roanoke, Virginia wrote to say: "Your new segment, noting a CEO with honorable character and good values is one of the best new segments on TV."
Huck Mosher in New York City writes to say: "What a sensational idea. I find it brilliant for these times we're in, and I applaud you for your thoughtful leadership."
Maryann Rothert of Ormond Beach, Florida says: "Lou, bravo. After all the depressing lack of ethics in business lately, it's great to see your new "CEO of the Week." Very nice to know there are still men out there like Malden Mills' executive Aaron Feuerstein. There may be hope for this old world yet."
And that news crawl at the bottom of your screen continues to generate a lot of passion among our viewers. Edward Ditterline of Nashville, Tennessee wrote to say: "The only preemptive strike that our country has any business launching is one against the CNN creepy crawler." I think he worked in a few issues on that view.
And Winston Ellerbeck of Rocklin, California says simply: "The crawl gives me the creeps."
As always, we enjoy hearing from you. E-mail us at moneyline@cnn.com. Please include your name and address. Now, "In Their Words."
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I want to send a signal to the world, to both friend and foe alike, that when it comes to the defense of our freedoms, we're in this for the long pull. We're in for the long haul. There's no calendar on my desk that says because we're getting tired, we're going to quit. When it comes to freedoms, no matter how much the cost, no matter how long it takes, we will defend the freedoms of the United States of America.
MAX MAYFIELD, NATIONAL HURRICANE CENTER: Our track right now has it moving very, very slowly here off the Yucatan for the next 24 hours, and then headed generally more toward the north/northwest. And by Thursday morning, be somewhere here in the northwest or in the Gulf of Mexico, threatening both Texas and Louisiana. This is still something we need to watch carefully.
CONAN O'BRIEN, HOST, "LATE NIGHT WITH CONAN O'BRIEN": Now it's time for that annual tradition we all cherish, time to meet the gentlemen who tabulated tonight's results. Please welcome, from the accounting firm of Stern & Meyer (ph), Mark Lipitz (ph), Jordan Schlensky (ph) and Jeff Patio (ph). And now, to arrest them for cooking the books, please welcome federal agents Brent Fowler (ph), Ian Roberts (ph) and John Hefter (ph).
(END VIDEO CLIP)
DOBBS: A certain theme.
That's MONEYLINE for this Monday evening. Thanks for being with us. For all of us here, good night from New York City.
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