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CNN LOU DOBBS MONEYLINE
Markets Rally; Hunt for Sniper Continues
Aired October 21, 2002 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
SHERIFF STUART COOK, HANOVER COUNTY, VA. POLICE: The ballistics evidence recovered during (UNINTELLIGIBLE) investigation has been matched with the other shooting cases.
LOU DOBBS, HOST (voice-over): The sniper who shot 12 people and killed nine, remains at large tonight. Police thought they had a break in the case today, but it turned out to be yet another frustration.
Suicide bombers killed at least 14 people and injured more than 50 in Northern Israel. The Islamic Jihad has claimed responsibility for the attack.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I have reviewed the FTC findings, and I have taken immediate action to ensure that lower-cost, effective generic drugs become available to Americans without any improper delays.
DOBBS: President Bush proposed new regulations that would put generic drugs into the hands of consumers faster.
Wall Street built on last week's gains as the major indexes soared. The Dow Jones Industrial's powered by strong earnings from manufacturing giant 3M.
(END VIDEOTAPE)
ANNOUNCER: From Los Angeles, this is a special edition of LOU DOBBS MONEYLINE for Monday, October 21. Here now, Lou Dobbs.
DOBBS: Good evening.
Police issued a message to the sniper saying, Call back, the first message was unclear. But police will not say what message they are talking about.
And all of that followed a flurry of police activity at a Virginia gas station. Two men there were taken into custody and a white van was seen being towed away. Hours later, optimism that the killer had been caught, disappeared. '
Gary Tuchman joins me now from Richmond, Virginia with the latest -- Gary.
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Well, Lou, it was a very chaotic morning here in Henrico County, Virginia just ten minutes away from the middle of capital of Virginia, Richmond.
Rush hour this morning, the center of the attention, this gas station right behind me, this Exxon station, specifically a pay telephone that's there. Up to 30 police cars and federal authorities swooped down upon this gas station. At about 8:30, they started going car to car. And then they ran very close to a van. Not the van that you see there right now, but another van, a white van, a Plymouth Voyager that was parked there.
They then -- then apprehended a man who was inside that van parked next to the phone booth. Shortly after, they apprehended another man. The thought was at that time, perhaps they had caught someone in connection with the sniper shooting.
But we have learned, sources tell CNN, these two men, who are still in custody, are undocumented workers from Guatemala and from Mexico. Sources telling us, they've now been brought to the detention of the Immigration and Naturalization Service. They are not believed to have any connection whatsoever to the sniper shootings, as one source telling CNN that these men were apparently in the wrong place at the wrong time. Very disappointing.
Now you may be wondering, why were the police here -- police helicopters, 30 vehicles here in the first place? They put this neighborhood under surveillance because a different pay phone near this one was the pay phone they received a call from -- a tip on the sniper tip line two days ago, saying that there was a note in the woods behind the Ponderosa steakhouse where the last shooting happened Saturday night. Indeed a note was found there.
But, anyway, that call came from a pay phone near here. They decided to put this area under surveillance. When the white van pulled up to this particular pay phone, they swooped down, and nothing apparently has happened with the two men in terms of connecting those two men to the sniper case.
We do want to tell you though, ballistics testing has been done. It's been done because a man's in the hospital, shot Saturday night at the Ponderosa. They took out bullet. The most important news, the man is still doing OK, he's in critical condition. But he survived two operations, that's good.
But they took out the bullet, they've compared the bullet to the other bullets, and they have confirmed that the shooting at the Ponderosa Saturday night was the 12th shooting that's either killed someone or injured someone. Nine people killed, three people wounded in the shootings that have taken place since October 2. And the sniper or snipers still believed to be at large.
Lou, back to you.
DOBBS: Gary, thank you very much. Gary Tuchman reporting from Richmond, Virginia.
Police are not talking about the contents of a letter found in the woods behind the restaurant where the latest victim was shot. Police Chief Charles Moose pleaded with the letter's author to call a prearranged telephone number. But later, Chief Moose says the caller was not clear and asked him to call again.
For more on this investigation, let's go to Kathleen Koch at the task force headquarters in Montgomery County, Maryland -- Kathleen.
KATHLEEN KOCH, CNN CORRESPONDENT: Lou, you know it was those words -- that the call for the person who wrote the message to -- that saying to them that police were trying to come up with a response.
Now, those words from the podium this morning were the very first that cast some doubt on whether or not these people who had been apprehended in Virginia were actually the shooter or shooters. Because, again, Moose delivered this message just over an hour after these people had been taken into custody.
And then this afternoon, Moose came to the podium again, rather unexpectedly, and put out the word that the communications, at least that were being established -- either with perhaps the killer, perhaps an accomplice, perhaps someone else -- the communications were garbled in some way.
(BEGIN VIDEO CLIP)
CHIEF CHARLES MOOSE, MONTGOMERY COUNTY, MD. POLICE: The person you called could not hear everything that you said. The audio was unclear, and we want to get it right. Call us back, so that we can clearly understand.
(END VIDEO CLIP)
KOCH: As all of this news broke here in the Washington area -- or in the Virginia area today, a funeral was held for the shooter's ninth victim. That was 47-year-old Linda Franklin. An FBI employee who was killed one week ago today outside the Home Depot in Falls Church, Virginia. Some 200 family members and friends gathered at a church in Arlington. They thanked law enforcement authorities for everything that they are doing in their efforts to try and solve this case. And also sent their sympathies to the families of the other victims who had been killed by the sniper.
Of course, Linda Franklin was not only a mother of two grown children, she was also a breast cancer survivor. And she and her husband were planning on moving into a new home when the shooting occurred.
Back to you, Lou.
DOBBS: Kathleen Koch from Montgomery County, Maryland.
As we said earlier, Wolf Blitzer was saying that we were expecting some developments from the Richmond, Virginia, authorities there, to hold a press conference, and we'll be going to that just as soon as that begins.
Turning to the Middle East, a car packed with explosives pulled alongside a bus on an Israeli highway, and blew up today. At least 14 people were killed in the terrorist attack, 50 others wounded. The radical Islamists group, Islamic Jihad, claimed responsibility for the suicide attack that took place Northern Israel.
CNN's Jerusalem bureau chief Mike Hanna was at scene and filed a report.
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MIKE HANNA, CNN JERUSALEM BUREAU CHIEF (voice-over): The shattered remnants of what was once a bus traveling along Israel's Route 65. According to police, a four-wheel drive vehicle laden with explosives drove into the side of the bus as it stopped to pick up passengers. The bus erupted in flames.
Many of those wounded in hospital, being treated for severe burns. Among the dead, two Palestinian suicide bombers, who were in the four-wheel drive vehicle. The militant Islamic Jihad movement has claimed responsibility for the terror attack.
(on camera): Route 65 has been the scene of a number of terror attacks in the past. And police say, that in recent weeks, there've been many warnings of another impending attack. Security has been stepped up in region, but the devastation, the destruction behind me, ample tragic evidence that those wanting to carry out these attacks still manage to so.
(voice-over): In the wake of this latest attack, the word from the Israeli government, that those responsible will pay the price.
Mike Hanna, CNN, Karkuh Junction, Northern Israel.
(END VIDEOTAPE)
DOBBS: Turning to Iraq, President Bush today suggested a peaceful solution might still be possible in the effort to disarm Saddam Hussein. President Bush said that if the Iraqi leader met all U.N. conditions, that would signal the regime had changed.
Suzanne Malveaux has the latest for us from the White House -- Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hello, Lou.
Well, President Bush earlier today hosted NATO Secretary General Lord Robertson at the Oval Office. They discussed NATO expansion, but also the growing threat of terrorism around the world, specifically, dealing with North Korea, with Iraq and other rogue states.
The Bush administration has been emphasizing the difference, the distinction between North Korea and Iraq saying that it would be willing to use military might against Iraq if Saddam Hussein did not disarm.
But today, the president seemed to take a softer discussion, emphasizing the importance of disarmament and not Saddam's ouster. (BEGIN VIDEO CLIP)
BUSH: We've tried diplomacy. We're trying it one more time. I believe the free world, if we make up our mind, too, can disarm this man peacefully. But if not, if not, there is -- we have the will and the desire, as do other nations, to disarm Saddam.
(END VIDEO CLIP)
MALVEAUX: Now, this is really the most conciliatory language that we have heard from the president in dealing with this. But as you know, there is a resolution before the U.N. Security Council and the United States and anxiously awaiting to see if the permanent five members will actually approve that resolution.
And, Lou, today, for the first time, the president reacted directly to North Korea's admission that it has weapons -- nuclear weapons rather, saying that the importance of using diplomatic channels as well as economic pressure and alliances to get North Korea to disarm.
(BEGIN VIDEO CLIP)
BUSH: I view this as an opportunity to work with our friends in the region and work with other countries in the region. To ally against the proliferation of serious weapons and to convince Kim Jong Il that he must disarm.
(END VIDEO CLIP)
MALVEAUX: The administration is considering using its economic might to get North Korea to disarm. Possibly economic sanctions or pulling a fuel assistance or that the U.S. funding for the power plant, but there have been no decisions that have been made yet -- Lou.
DOBBS: Suzanne, the president's somewhat more constrained language concerning Iraq, is that also a suggestion that we're going to have a resolution out of the U.N. Security Council in your judgment?
MALVEAUX: The administration is optimistic. They are hoping to see something this week, perhaps next week, but they are hoping that it's days, not weeks, that we will get that language worked out. They believe that they have the kind of compromise language that they hope that France will sign on to. France, of course, has really been the one ally that has been holding out here, but they think that they have a resolution, that is not two resolutions, rather, one resolution that gives them a sense to tell Saddam that there are consequences if he does not let those weapons inspectors back in. Does not necessarily authorize using military force, but again, does not require the United States to go back to the United Nations Security Council for authorization or permission to use military force if it decides that is necessary.
DOBBS: White House Correspondent Suzanne Malveaux. Time now for our MONEYLINE poll, the results of Friday's question -- that question: if Hollywood produced more family-oriented films, would you go to the movies more often? Fifty-two percent of you voted yes, 48 percent said no.
Now, turning to tonight's question: do you believe the United Nations is an effective organization? Please cast your vote at CNN.COM/MONEYLINE.
The question will be available there momentarily, and we will have the results for you later in the broadcast.
We are going now to that news conference in Richmond, Virginia, the site of the shooting of 12th victim of the sniper.
(JOINED IN PROGRESS)
TOM SHUMATE, SPOKESPERSON, HENRICO COUNTY POLICE: ... answer any questions. Thank you very much for your patience -- and I will give you my name. It's Tom Shumate, S-H-U-M-A-T-E. I am the Henrico Police spokesperson.
(CROSSTALK)
QUESTION: Tom, is anybody going to explain us to the rationale of why these apprehensions were made?
SHUMATE: I really can't answer any questions.
(CROSSTALK)
QUESTION: How come the sheriff didn't come out and tell us this?
DOBBS: That state trooper there, obviously, out to tell us that the sheriff will be out later to discuss the investigation there.
Again, that the site of the 12th shooting by this sniper that has terrorized the suburbs of Washington, D.C. We will have more for you on that later.
Turning now to the markets today, a powerful rally on Wall Street. The Dow Jones industrials rose to a new five-week high. 3M, Philip Morris, Coca-Cola, helping push the Dow higher. The Dow gaining 216 points, the Nasdaq rose 22 points. The S&P 500 up more than 15. We will have complete coverage of market later in the broadcast.
Now, new trouble tonight for Martha Stewart to tell you about. The securities and exchange commission is planning to file a civil frauds charge against Stewart in relation to her sale of ImClone Systems stock. That according to the "Financial Times." If those fraud charges go ahead, it would be the first time that Stewart has been charged with any wrongdoing in relation to her sale of ImClone shares late last year.
The "Financial Times'" Joshua Chaffin joins us now from New York with more on the story -- Josh, how are you?
JOSHUA CHAFFIN, "FINANCIAL TIMES": Good, Lou. Thanks for having me.
DOBBS: This is -- this will be reported in tomorrow's edition of the "Financial Times." What is the significance of this, that it is coming from the SEC rather than the Justice Department?
CHAFFIN: I think you have pointed at the biggest point right away, that these are the first substantial charges, or the first sign of substantial charges against Martha since this whole scandal erupted really over the summer.
The SEC has sent what is known as a Wells notice to Ms. Stewart and her lawyers. It basically is a -- it's an intention to file charges. It gives them a last chance to appeal, and try to dissuade them. It's very rare cases where that actually happens. I think the big question now is what this means to the criminal investigation, and we'll have to watch closely to see if criminal charges are forthcoming as well.
DOBBS: Joshua, as you point out, a Wells letter, or a target letter, usually is a notification that would suggest negotiations with the target, or at least a suggestion that those negotiations should get underway. Do we have any suggestion at all that that's occurring with Martha Stewart?
CHAFFIN: We don't yet know. There are some kind of tricky legal issues surrounding this. I have talked to a lot of defense lawyers, and their sense is that, unless you are very confident that you can reply in a Wells letter and dissuade the government from pressing charges, it is better not to apply at all, because any information included in the response can be used in court in criminal proceedings, or in civil proceedings. So that's a calculation that Martha's lawyers will have to make.
DOBBS: Do we have an indication as who to how soon those charges could come?
CHAFFIN: We don't know. We believe that the letter was sent more than a week ago. Usually after someone is informed, they have about ten days or two weeks to reply. So, by that calculation, it could be in the next -- in the next few weeks.
DOBBS: Joshua Chaffin of the "Financial Times." Thank you.
CHAFFIN: Thank you.
DOBBS: Just ahead here tonight, we will have the latest for you on the sniper manhunt in suburban Washington, D.C. We will also tell you how giving the death penalty to juveniles has split the Supreme Court.
And President Bush has taken on a very big campaign issue, keeping the cost of prescription drugs lower. We will have a full report for you, and we will be joined by Michael Eisner, the chairman and chief executive officer of Disney. His Anaheim Angels are tied up in the World Series. He will tell us how he intends to deal with all of the challenges facing his business, next. Stay with us.
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DOBBS: The Supreme Court will not take up the issue of minors facing the death penalty. Opponents of the death penalty say executing the very young violates the Constitution's ban on cruel and unusual punishment. The high court refused to examine the case of a man who kidnapped and then killed a gas station attendant when he was 17.
Any state currently that allows the death penalty may execute convicted killers who are 16 or 17 at the time they committed the crime. Despite passing on hearing the case, four justices bitterly oppose that decision. They wrote "executing such offenders is a relic of the past" -- end quote.
Pharmaceutical companies have moved to the center of the midterm election debate. At issue, the high cost of prescription drugs in this country, and efforts by their makers to shut generic drugs out of the market altogether.
Louise Schiavone has the report.
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LOUISE SCHIAVONE, CNN CORRESPONDENT: With Americans heading to the polls in just two week, President Bush is prodding drug makers to make generic drugs available more rapidly with a plan to limit the life of prescription drug patents.
BUSH: Over the next three years, about 200 drug patents are set to expire. By cutting out delays and maneuvering, our reforms will yield cost savings of more than $3 billion a year.
SCHIAVONE: Last year, Americans spent $154.5 billion on prescription drugs. Of 3.1 billion prescriptions written, 59 percent were brand-named, 41 percent were generic.
On average, a brand-name prescription runs about $69.50. A generic drug costs about $21. Some observers believe the Bush announcement is designed to give Republican candidates cover on a hot- button issue.
IRA LOSS, EXECUTIVE VICE PRESIDENT, WASHINGTON ANALYSIS: This was not part of the president's plan all along, unless it was part of the secret plan, because he never mentioned it before. There is no doubt in my mind this was engineered for the election year situation.
SCHIAVONE: Though well-aware of the public hue and cry, Congress this session failed to address the cost of prescription drugs, but that hasn't stopped them from campaigning on the issue.
COMMERCIAL ANNOUNCER: We are all concerned when a family member falls ill and needs help. COMMERCIAL ANNOUNCER: Prescription medicines help millions of seniors live longer, healthier lives. And that's why a bill to add prescription drug coverage to Medicare is so important.
SCHIAVONE: The big pharmaceuticals companies trade group was so shock by the announcement that by day's end, they were still working on a formal announcement, but told MONEYLINE: "We consider this to be a complex matter and major development. We are in the process of going over the details. We need more time to look at it. We had no advance knowledge of this development. We were surprised."
(END VIDEOTAPE)
SCHIAVONE: The financial impact on the industry may not come right away, say analysts. It may take generic manufacturers five to 10 years to siphon a significant amount of business away from brand- name drugmakers -- Lou.
DOBBS: Louise, thank you very much. Louise Schiavone from Washington.
Coming up next, we'll have the latest for you on the search of the sniper terrorizing the nation's capital.
We'll also be joined by Disney Chairman and CEO Michael Eisner. He's here to tell us how he plans to improve ratings and business at the Disney company. He'll also tell us what's being done to boost attendance at the company's theme parks.
Hollywood is known of rolling out the red carpet, but now it's ready to slam the door on the city of Los Angeles. We'll tell you why half of the city wants to split into two, next.
Stay with us.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Got it from watching a videotape.
Yes, show it to me.
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(COMMERCIAL BREAK)
ANNOUNCER: From Los Angeles, here again, Lou Dobbs.
DOBBS: stock have fallen about 60 percent from their peak on April 28 of 2000. Disney says the drop in theme park attendance, ABC's weak performance have hurt the bottom line. Today, there are more reports that ABC's news division and CNN are considering a partnership. Michael Eisner is the chairman and the chief executive officer of the Walt Disney Company, and he's here with us tonight.
Good to have you here.
MICHAEL EISNER, CHMN. & CEO, WALT DISNEY COMPANY: Thank you for inviting me.
DOBBS: The challenges facing Disney - I should point out at the outset, that the challenges facing the parent company of this network are somewhat significant as well, as it is for the media industry. But you are hit with a wide range: rating slumps, theme park attendance, governance issues and criticism. How's Michael Eisner feeling tonight?
EISNER: Well, actually, I feel good because mostly what you referred to is somewhat in the past. We were built up for a long time and the beginning of the recession, 9/11, ratings problems at ABC, we've taken some shots. But we have very, very strong brands in the Disney brand, the ESPN brand. I think we're differentiated. We have that competitive edge. We're relevant.
DOBBS: The Angels brand?
EISNER: Well, the Angels are certainly a great morale boost right now. We're happy. Actually, the Angels are almost like a metaphor for the way we look at our business, which is teamwork, everybody working together, trying to get something done. If you can get the Angel kind of synergy in our movie division, which I think we have, and in our television division. I went to the game with a bunch of our ABC stars yesterday, and each one of them, whether it was John Ritter or Damon Wayans, I say, you're as important as that whole Angel group together.
DOBBS: That sounds a bit like a hard working CEO to me. I did happen to see you there in that bright red Angels hat, looking resplendent as you cheered on one of your assets and of course favorite teams. But in terms of ABC itself, you have got a solid Tuesday night. You've done extraordinarily well there. Your ratings are still down significantly from two years ago. How troubled are you? What are you doing to fix it?
EISNER: Well, our ratings are coming back well. We are in the process of rebuilding. We've gone back to a strategy of family programming. We looked at Tuesday, Wednesday as a building block. We had unprecedented, in my opinion, success in the new comedies on Tuesday and Wednesday. We're very strong on Sunday. We're strong with our new booth on Monday. Actually, and I don't want to get too technical here, but we all sell on this 18 to 49 age group. And we are either number one or two today on five of the seven nights. So we're not all the way there yet.
We have some problems, too, with our dramas although "Alias" and the and "The Practice" and so forth are doing very well, our magazine shows. I think Susan Line (ph), who has come out and worked with Lloyd Braun (ph), two executives who have been written about quite a bit, are doing a spectacular job. So I've been there before. I was there in the '70s. And Bob Iger, who is the president of the company, was there in the '80s. And we've had to come back before. And I think the management of ABC, which is doing it with my cheerleading, and Bob's cheerleading, is doing well.
DOBBS: The studio itself? EISNER: The studio's had a terrific time. We were number two in the box office this summer, people counted us out. "Signs" was a big movie, "Lilo & Stitch." We now have a Reese Witherspoon movie that's big out there, going to be the big movie of the fall, "Sweet Home Alabama." We have Christmas movies, the "Santa Clause" movie, "Treasure Planet." We have all of the assets in place. We spent all of our capital in the last five years putting moats around our theme parks around the world, building four theme parks, differentiating that Disney brand. The next five years we don't have to spend that kind of capital, watch our cash flow increase. When the economy comes back and a little calmness...
DOBBS: Are the theme parks going to be a laggard for some time, here, given the conditions?
EISNER: Can't say exactly. Obviously people are afraid to travel still. International travel is way down, 25 percent of our business, for instance, Walt Disney World is international travel. At the same time our theme parks in Japan have never done better. Of course, this weekend we did fantastic out there at Disneyland. We are in position. We have the greatest assets in this sector of the business anybody could possibly have. We don't have to put more capital in it. We have terrific management. And we just have to like let it happen.
DOBBS: Let's talk about one of those assets, CNN, the rumors that ABC News and CNN would merge in what would be I suppose at first - at once an exercise in synergy and rationalizing and improving cost structures. What is the likelihood in your judgment that that's going to happen?
EISNER: I can't say that I know it's going to happen. I think I can say I'd like it to happen. I think the chairman of your company, CNN is part of AOL Time Warner, would like it to happen. These are two great news organizations, one in broadcast, and one in world wide cable. And it would give the Disney Company or the ABC News department, with tremendous talent, worldwide reach and would give CNN the reach of a very strong $110 million-home broadcast network.
DOBBS: Dick Parsons, the head of AOL Time Warner, Michael Eisner, the head of Disney, want it to happen. What's to stop it?
EISNER: Well, hopefully it will move forward. But it's complicated. It's...
DOBBS: Regulation?
EISNER: No, I think the regulation in the end won't be a problem. I think this is very pro consumer.
DOBBS: Financial split?
EISNER: No. I think we have to work it out. I think that, you know, you have a fantastic founder of CNN. And I look to Ted Turner as one of the major assets of CNN. And you have a great history of ABC News. And we all have to sit down at some point, and we're not sitting down yet, to figure out how this - how one and one adds up to four and not financially, but culturally.
DOBBS: Operating control?
EISNER: Well, we haven't gotten that far. I think that ABC has...
DOBBS: I'm just trying to help you through this.
EISNER: I'll take notes. Let's see, operating? Let's see...
(AUDIO GAP)
EISNER: ... control over what goes over the ABC television. CNN obviously has to have continuing control over what goes over CNN. And we just have to work together. We have correspondents that are very highly respected, personalities, news gathering people, as does CNN. And CNN has this worldwide reach. The Walt Disney Company is a worldwide company. And I think it makes great sense. That doesn't mean it's necessarily, absolutely going to happen.
DOBBS: Well, ABC News blessed with terrific talent and it will be interesting to see how it all works out. Let me turn quickly to the governance issues, whether it be in terms of independent board members, in terms of audit roles, in terms of greater transparency and disclosure, expensing stock options, what is your judgment about how you're going to improve things from here?
EISNER: Well, you start off with the fact that the Walt Disney Company has had no problems, zero, in transparency, in complicated business deals, in any kind of accounting, we've had zero problem, and don't anticipate any problems. In going forward, we think we were the first company of our size to separate accounting and consulting in doing business with people like that. We have an excellent accounting firm in Pricewaterhouse. And there has been some criticisms of some people on our board who have previous relationships with me; a fantastic woman, for instance, who is a teacher, who my son was taught by 25 years ago. But this is not be issue for our company, and it's...
DOBBS: Does Michael Eisner plan to go to greater independence on his board, go to expensing stock options, to begin to take a look at - serious look at not only meeting the basic standards of not having problems, but setting an example for the rest of corporate America?
EISNER: I think we will exceed the standard. We've already implemented procedures in governance that exceed the New York Stock Exchange requirements. We certainly are going toward a major - a majority-plus of independent directors on our board, and that includes the few management directors. This is not a problem. We want to lead in this area as we do in many other areas. And I'm confident that we will.
DOBBS: Michael Eisner, thanks for being here. Good to see you.
EISNER: Thank you. Just ahead here, we will have the very latest for you on the sniper investigation. We'll have a live report for you from Richmond, Virginia. It's coming right up.
Also tonight: Hollywood and San Fernando are tired of living in the shadows of Los Angeles. Now they want their own identities, their own cities, their own approaches to solving headaches in urban America. We will have a special report for you -- that and a great deal more still ahead.
Stay with us.
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DOBBS: Now for the latest on the search for the sniper who has shot 12 people in the Washington, D.C. area, we go back to Kathleen Koch at the sniper task force headquarters in Montgomery County, Maryland -- Kathleen.
KOCH: Lou, numerous new developments in the case today: the two men obviously apprehended by authorities in the Richmond, Virginia, area today, a lot of hope raised that it might be the killer or killers. That was not the case. It was two undocumented workers apparently in the wrong place at the wrong time. No charges are being filed against them. And they're being turned over to the Immigration and Naturalization Service.
Virginia authorities confirming today that the shooting there Saturday night was definitely linked to the previous shootings, now making 12 sniper shootings since this all began back on October 2. And the police today were trying to communicate at least twice with, we don't know who precisely, whether it is the sniper, perhaps the sniper's accomplice, perhaps someone else.
The first message saying that police were going to try to respond themselves at some point today to a message that this person or persons had sent them; and then, in the second message, saying that the audio was not clear, that the person -- then they wanted this person who was communicating with them to call back so that they could make sure that they would get it right, that they could understand.
And then another development: Bail was denied today to Matthew Dowdy. He was the man who, a week ago, when the woman was shot down outside that Home Depot, claimed to be an eyewitness and ended up leading police on quite a goose chase, looking for a light-colored Chevy Astro van with a roof rack and a broken taillight, apparently having fabricated the whole thing -- back to you, Lou.
DOBBS: Kathleen, thank you very much -- Kathleen Koch from Montgomery County.
The talent agency that one represented Clark Gable and Humphrey Bogart faces new challenges. These challenges include staying fresh and dynamic in the face of growing, changing competition.
Here now to talk about those challenges facing his industry and Hollywood is James Wiatt. He is the president of William Morris. And, as a point of disclosure, I should tell you that Larry King and I are represented by William Morris.
JAMES WIATT, PRESIDENT, WILLIAM MORRIS: Yes, sir.
DOBBS: How are you?
WIATT: Very well. Thank you. It's hard to follow Michael Eisner.
DOBBS: Well, we are delighted that you are here. And your business in this town is changing rather rapidly.
Let's turn to one of the issues right now. With the Screen Actors Guild and the Talent Agency Association not having an agreement, how is this affecting your business right now and how is it affecting Hollywood?
WIATT: I think it's not really affecting us that greatly. We really have been, in a sense, working at will without an agreement. I think there is every desire on both sides to try to get back together, under the leadership of Melissa Gilbert and Bob Pisano at the Screen Actors Guild and the ATA, the Association of Talent Agencies. I think that we will be sitting down again. And I think we'll probably come to some compromise agreement.
DOBBS: What is the primary stumbling block here?
WIATT: It has to do with financial interests, which is...
DOBBS: I am shocked.
(LAUGHTER)
WIATT: I know. It would be a shock.
I think what it has to do is really with the theory of somehow that the agents or the agency would somehow become the employer of its clients, the actors.
DOBBS: Aren't the agencies, aren't they perilously close to becoming just that?
WIATT: Not really. I think what we provide our clients and other agencies provide their clients is an opportunity to have access to the best material, the best directors, the best producers, the best access to the studios or the networks. So, in a sense, we are not functioning as producers, but we work closely with our actor clients and writer and director clients to put things together. So we are not really producers, but we assist in putting projects together.
DOBBS: Well, in the lexicon of the trade, you package. And packaging can be a very big deal, in some cases, one could argue broader than producing itself. How do you -- how do you assure the Screen Actors Guild, actors, your clients, that you are not overwhelming the economic interests? WIATT: Well, I think part of it -- I can only speak for our own company -- is full disclosure to our clients and to act and conduct ourselves as ethical, moral people. And I think, as long as we tell everybody exactly what the game plan is and what the rules are, I think we avoid any kind of conflict or problems.
DOBBS: How soon do you think you will have an agreement?
WIATT: Well, I think there's going to be hopefully a sit-down with the Screen Actors Guild in the next couple of months. And I think everybody is certainly optimistic that we can probably come to some conclusion.
DOBBS: And incentivized as well?
WIATT: I hope so.
DOBBS: Let's turn to another aspect of the business. And that is the idea that -- constant reports that the talent agencies are going to bring in funding from the advertising agencies, and that that is about to become a new channel in terms of both the business and the future. What does Jim Wiatt think?
WIATT: Well, I think, in terms of our own business -- which I can probably speak best about -- is that we are -- we have great relationships with the advertising agencies. We are not looking for their money. And we enjoy the relationship that we currently have.
And I think this has always been somehow theorized that the advertising agencies and the talent agencies somehow would be combined in some kind of interests, where everybody would benefit from that association. But I actually don't think in our case that's something that we are currently looking to do.
And, also, the agreement with SAG, the old agreement and the one potentially into the future, would prohibit SAG, under the theory of them being able to -- to be producing commercials, to have us actually be owned by them.
DOBBS: What about the notion in this town that managers are making a lot more money than the agents? Is it true?
WIATT: Well, I am not sure it's true.
We actually enjoy great relationships with managers and talent. And it's really not a provocative issue for us, really. It's something where we work very close together. But I think we all do very well. And I don't think any of us are really looking out with any kind of envy toward what they make vs. what we make. I think we all do pretty well.
DOBBS: There's no veil of tears out there on Sunset for either of you.
WIATT: No.
DOBBS: Where does the growth for William Morris come from in the next few years?
WIATT: Well, our core business, which is a very strong business, which is music, movies, television, publishing. I think we look at ourselves -- and we have an office in London, Nashville, New York and Los Angeles -- and we really look at ourselves as a gatekeeper to intelligence property and the ideas that come from it.
And I think that is certainly the core of our business. We do enjoy a very good corporate advisory business. And I think I was telling your producer before that, if 10 years ago, you had told me that we would be representing Fortune 500 companies, I would say you are crazy. But we do.
DOBBS: Well, Jim Wiatt, thank you very much for being here.
WIATT: Thank you. Thank you, Lou.
DOBBS: Good to have you here.
WIATT: OK.
DOBBS: A reminder now to vote in tonight's MONEYLINE poll. Our question: "Do you believe the United Nations is an effective organization?" Cast your vote at CNN.com/MONEYLINE." We'll have the results coming up for you in just a few minutes.
And Los Angeles has spent much of the last decade trying to recover from the riots of 1992 that deeply divided the city. Now some are again trying to divide the city, this time literally in half. Next month, voters go to the polls to decide whether the San Fernando Valley and Hollywood remain in Los Angeles or go out on their own.
Casey Wian has the story.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): Los Angeles, with 3.7 million residents spread over 472 square miles, is big enough to hold all of Boston, Pittsburgh, San Francisco, Minneapolis, Milwaukee, Cleveland, St. Louis, and the island of Manhattan. It's grown too big to adequately serve its resident, say supporters of secessionist movements in L.A.'s Hollywood and San Fernando Valley neighborhood.
Infamous for turning the word "like" into a place holder for shopping model-addled brains, the Valley is also home to 1.3 million Angelenos and would be the nation's seventh largest city by itself.
TOM HOGEN-ESCH, CALIFORNIA STATE UNIVERSITY: The Valley is really an archetype of American suburbia. This is a place in 1960 which was almost 100 percent single-family home, two-car garage, two cars. And so what you've had over the 1980s and 1990s is the really urbanization of the Valley. And it's really seen by the secessionists as a threat to the suburban lifestyle.
WIAN: Supporters say an independent San Fernando Valley would provide better police and fire services, cut taxes, and bring more efficient city government.
RICHARD KATZ, VALLEY INDEPENDENCE COMMITTEE: We have the resources. We have the people. We have the businesses. We believe that, with smaller government, elected officials would have to be more accountable and more responsive to local control, local concerns.
WIAN: Opponents say it would create a duplicate bureaucracy and not fix decades of social and economic change.
UNIDENTIFIED FEMALE: It isn't going to be solved overnight with the fairy tale, magic wand, wishful thinking, that we can turn the clock back and go back to small-town America in the San Fernando Valley, rural, agriculture, wide boulevards, no traffic, no gangs, no crime, no graffiti. It can't happen, not with the wave of the succession wand.
WIAN: If voters approve succession, the Valley would pay Los Angeles so-called alimony of some $2 billion over 20 years. But that appears unlikely. The latest "Los Angeles Times" polls show 56 percent of Angelenos oppose succession, with only 27 percent in favor. Hollywood succession effort trails by an even wider margin.
(END VIDEOTAPE)
WIAN: Even if both campaigns fail, supporters and opponents alike say they have succeeded in serving notice that elected officials in Los Angeles need to continue their efforts to reform the city's outdated government structure -- Lou.
DOBBS: The city -- that's a fascinating story, the idea that Hollywood and the San Fernando Valley -- any suggestion that we might see a shift in voter attitude between now and the 5th of November?
WIAN: It seems to be going other way. There seemed to be a lot of support initially for the Valley succession. Hollywood never had much support. But they seem to be losing. The city officials have been running ads, basically fear tactics, saying what would happen if another earthquake happened; no one would show up to help people out in the San Fernando Valley, which, of course, is not true. But it stoked the fears...
(CROSSTALK)
DOBBS: Little is truth, it seems, in these campaigns -- I have seen some of the commercials running out here against this issue. I mean, they are hysterical, in both senses of the word.
But this is a very big wakeup call, I would think, for the city of Los Angeles, which has not distinguished itself on a number of issues for this very broad metropolitan area.
WIAN: Absolutely.
One of the things that the supporters of breaking away point out is that there are 15 members of the city council Los Angeles, 3.5 million residents. When the city of Los Angeles was formed, with 10,000 residents, it had 15 council members. So they don't have enough people to answer all of the needs of the community.
DOBBS: The challenge is immense.
Casey Wian, thank you.
WIAN: Sure.
DOBBS: We will be right back here in just a moment. Stay with us.
(COMMERCIAL BREAK)
ANNOUNCER: Tomorrow, LOU DOBBS MONEYLINE is live from Los Angeles with the latest on California politics. Lou talks to Bill Simon, underdog candidate for governor, and California State Comptroller Kathleen Connell about pension reform -- tomorrow on LOU DOBBS MONEYLINE.
(COMMERCIAL BREAK)
DOBBS: The MONEYLINE poll question tonight: "Do you think the United Nations is an effective organization?" The preliminary results of voting: 44 percent of you said yes; 56 percent said no.
You can continue to vote, of course, over the next 23 hours. We will have the final results for you tomorrow evening on the broadcast.
Turning to Wall Street, stocks rallied across the board, the vote there decidedly positive. The Dow has now posted gains in seven of the past eight days.
Christine Romans joins me now with more on the market.
Christine, how are the earnings reports holding up?
CHRISTINE ROMANS, CNN CORRESPONDENT: A couple of examples of earnings growth rewarded: 3M earnings growth of 38 percent. The stock up 8 percent this year, and very strong here today. Lexmark, it's a printer seller, that one having 47 percent profit growth, a strong day for it as well.
After the bell, Texas Instruments reported profit growth. That's a reversal from a loss the same period a year ago. But it warned very sharply, cutting sales expectations and earnings expectations for the fourth quarter. That stock is down sharply here after hours, Lou.
DOBBS: Christine, how does this compare with recent bear market rallies?
ROMANS: Well, it's interesting: the Dow Jones industrial average up some 17 percent in just the past eight sessions. There have been five bear market rallies since the peak in 2000. And the shortest little example we can see is about a 14 percent six-day rally in the S&P 500. And that was followed by nine weeks of declines.
So some folks are starting to whether this particular rally is running its course. The Nasdaq, in just eight days, up 17.5 percent, S&P 500 up almost 16 percent. So it has been a very steep advance, Lou.
DOBBS: And, Christine, give us a sense, if you would, of the short interest right now, because, obviously, it's is important.
ROMANS: Absolutely.
And the most latest figures released just this afternoon: a record 8.2 billion shares in short interest, Lou, 8.2. We've only once seen something over eight billion. And so it's growing again. That's figures as of October 9, Lou.
DOBBS: And that is not exactly an overwhelming positive for this market.
ROMANS: Oh, no, it's not. It's showing that there are still a lot of people who are shorting stocks, particularly in tech and telecom.
DOBBS: Christine, thank you very much -- Christine Romans.
Well, as reported earlier, the SEC intends to file civil fraud charges against Martha Stewart, that according to "The Financial Times." This would be the first time the Stewart has been charged with any wrongdoing in connection with her sale of ImClone System shares late last year.
Allan Dodds Frank has the story in tonight's "Corporate Crime Watch" -- Allan.
ALLAN DODDS FRANK, CNN CORRESPONDENT: Lou, Martha Stewart has an opportunity to plead her case to the SEC's enforcement staff before they recommend charges be brought against her.
The SEC wants to know whether Stewart was tipped illegally to sell her ImClone stock. Separately, the prosecutors who got a guilty plea from ImClone founder Sam Waksal last week, sought to forfeit his father's and his daughter's accounts. The prosecutors asked a federal judge to confiscate $9.9 million in four accounts held by Waksal's father Jack and his daughter, Aliza.
Turning to the matter of analysts on Wall Street, Massachusetts regulators today accused Credit Suisse First Boston of misleading investors with false research reports. The company disputed the charges and claimed Massachusetts hastily-initiated action jeopardizes the so-called global settlement Wall Street is seeking from federal and state regulators -- Lou.
DOBBS: Allan, thank you very much -- Allan Dodds Frank.
Well, now let's take a look at our Enron corporate America criminal scoreboard. And the only number to update tonight is the number of days since Enron's collapse, and that is 323.
"CROSSFIRE" begins in a few moments. Let's go to Paul Begala and Tucker Carlson in Washington, D.C. -- Tucker.
TUCKER CARLSON, CO-HOST, "CROSSFIRE": Lou, free Martha Stewart. Actually, that's tomorrow night's show. Tonight, we are talking about the sniper who continues to hold the Washington region hostage to fear. We will get updates on the investigation from CNN reporters on the scene. And we'll ask about the investigation itself. Some of the comments coming out of it don't inspire confidence. How's it going? We will find out.
PAUL BEGALA, CO-HOST, "CROSSFIRE": And then, Lou, we'll go a little deeper into it, talk to some experts on criminology to try to get into the sick mind of this killer, and then ask some experts on security and risk whether we have crossed the line from prudence into panic here in our nation's capital, and then, of course, all the political news of the day, because, after all, it is still "CROSSFIRE" -- Lou.
DOBBS: All right, looking forward to it, Paul. Thank you. Tucker, thank you very much.
Coming up next here: Kevin Spacey's appearance here was a big hit with our audience. And so is the West Coast trip. We will share some of your thoughts and we will have the address of that Kevin Spacey Web site a lot of people seemed to miss as well.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Now a look at your thoughts. We received a tremendous amount of correspondence about our West Coast trip.
Bob Posey from Ohio wrote in to say: "I have been watching newscasts since 1955 and I've never seen more quality reporting than what Dobbs turned out at UCLA and Hollywood. The quality of the audience, quality of the questions, the sincerity of addressing issues were outstanding."
And, obviously, Bob Posey is not from USC.
Michael Ambrozewicz write from Bonn, Germany: "It was a pleasure to see that CNN and your show broke the East Coast-based media outlets reporting news form their side of the country."
Tylendal from Florida enjoyed our program Friday from atop the Renaissance Hollywood Hotel, but she had a special concern, writing to say: "Acrophobia, whoa, your Hollywood set makes my hands sweat."
And Steve from San Antonio, Texas, writes: "The Hollywood set location on the top of the building with Kevin Spacey was great, but I missed his Web site address."
You certainly were not alone, Steve. In fact, we had hundreds of request for the address of Kevin Spacey's Web site that has been set up to help aspiring actors and directors. And so here it is. Are you ready? TriggerStreet.com. Now, remember, that Web site does not launch until next month. But, again, when it does launch, it will be TriggerStreet.com.
We will welcome always your questions, your thoughts. E-mail us at MONEYLINE@CNN.com. Include your name and address.
And that is "MONEYLINE" for this Monday evening. Thanks for being with us.
Tomorrow night, please join us for our broadcast, when our guests include Bill Simon, the Republican gubernatorial candidate in California. California State Comptroller Kathleen Connell will also be here to talk about pension reform and budgetary problems affecting the state.
For all of us here, thanks for being with us. Good night from Los Angeles.
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