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The Situation Room

Harriet Miers Withdraws; Sources: Fitzgerald May Indict Rove

Aired October 27, 2005 - 17:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


WOLF BLITZER, CNN ANCHOR: You're in THE SITUATION ROOM, where news and information from around the world arrive in one place at the same time.
Happening now, it's 5:00 p.m. here in Washington, where White House officials might need their own situation room to handle multiple crises. The Supreme Court nominee Harriet Miers bows out. And we'll have a tick-tock of just how suspenseful the drama unfolded.

And sources say Patrick Fitzgerald is seriously thinking of bringing Karl Rove up for charges.

Also, 5:00 p.m. in south Florida, where food, water and gas are rare commodities right now. Many elderly and sick people are expressing their frustration.

And one newlywed couple isn't calling Wilma a home wrecker, but they are blaming the hurricane for ruining their honeymoon. It's a romantic Mexican getaway that turned into a nightmare.

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

We begin with two big stories here in Washington, the sudden announcement by Harriet Miers that she has withdrawn as nominee to the Supreme Court, and the looming likelihood of one or more indictments in the CIA leak investigation.

Our justice correspondent, Kelli Arena, is standing by for that, but let's start over at the White House with our correspondent there, Suzanne Malveaux -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, really this morning, the White House was bracing itself for possible indictments in the CIA investigation when the president was dealt this stunning blow. Now, what may have come as a surprise for some for today wasn't all that surprising.

(BEGIN VIDEOTAPE)

MALVEAUX (voice over): The stunning withdrawal comes after weeks of debilitating criticism of Harriet Miers from the right, who complained her credentials weren't conservative enough, and form some on the left who viewed her as an unqualified Bush crony. But insiders familiar with the campaign to push her nomination forward say a confluence of events Wednesday signaled her doom. The day began with a "Washington Post" report about a 1993 Miers speech, re-igniting a firestorm from conservatives who saw it s proof she supported abortion rights. By mid morning, Senate Majority Leader Bill Frist told the president face to face the Miers nomination was not looking good.

A flurry of meetings took place throughout the day to assess her status. On the Hill, Miers' support team, Ed Gillespie, Senator John Cornyn, and Federalist Society representative Leonard Leo huddled. There was talk that an exit strategy might be necessary.

Just before 6:00, the group Concerned Women for America, a key conservative organization, issued a press relief calling for Miers' withdrawal. Other conservative organizations considered following suit.

All through the day and into the evening, Miers worked to complete her 60-page Senate questionnaire. Then she sat down with senior White House staff, including chief of staff Andy Card, where she was given a reality check of difficulties she faced ahead. Insiders says Miers was not surprised by the news and made the decision to withdraw on her own.

At 8:30, she called the president and the White House residence to tell him. An hour later, Senator Frist called Card to tell him the Miers nomination was in trouble. Unbeknownst to him, Miers had already reached that conclusion.

(END VIDEOTAPE)

MALVEAUX: Wolf, of course the awkward situation with Miers is she returns to her White House counsel job, at least focusing on that, but she also is the one who will be vetting the potential candidates for the next round of nominees. I should let you know that I spoke with a White House insider who said that they were quite confident for some time up until yesterday afternoon that they'd be able to push this through. But he said the problem here is he believes people inside this building don't have a good sense of the political culture on the Hill, that they are essentially living in a bubble -- Wolf.

BLITZER: All right. Strong words. Thanks very much. Suzanne Malveaux.

Turning now to that CIA leak investigation here in Washington, the special prosecutor, Patrick Fitzgerald, may be getting ready to announce an indictment or two, maybe more. Top White House officials could find themselves in trouble.

Let's turn to our justice correspondent, Kelli Arena -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, it sounds weird, but there will probably be a big sigh of relief tomorrow. That is when we expect all of Washington will find out the results of Patrick Fitzgerald's two-year investigation.

(BEGIN VIDEOTAPE) ARENA (voice over): The president's top political adviser has been unable to escape the cameras for weeks now. Lawyers involved in the leak investigation tell CNN the special prosecutor is seriously considering a perjury charge against Karl Rove, who testified four times before the grand jury.

Former prosecutor Andrew McBride has been talking with lawyers familiar with the case.

ANDREW MCBRIDE, FMR. FEDERAL PROSECUTOR: I think right now what's happening is a very, very heated exchange between Mr. Rove's lawyers and Mr. Fitzgerald's team over whether or not Mr. Rove will be indicted for perjury and whether his last appearance before the grand jury was sufficient to correct any omission or false statement he might have made previously.

ARENA: Sources with knowledge of the investigation say the vice president's chief of staff, Scooter Libby, may also be in jeopardy for possibly making false statements. Former independent counsel Robert Ray says to bring those charges, Fitzgerald will have to prove that Rove and Libby intended to mislead investigators, a high legal bar.

ROBERT RAY, FMR. INDEPENDENT COUNSEL: It explains in part why this investigation has gone on so long. It also explains in part why he went to so much trouble to get the benefit of Judith Miller's testimony.

ARENA: Miller, "The New York Times" reporter, told the grand jury the source she went to jail to protect was Scooter Libby.

Both Rove and Libby's lawyers have refused to comment on their clients' status. But both men have denied repeatedly that they leaked CIA operative Valerie Plame's name.

(END VIDEOTAPE)

ARENA: Sources with knowledge of the investigation say that we will know for sure on Friday, when Fitzgerald is expected to announce his decision on whether to bring those criminal charges -- Wolf.

BLITZER: Thanks very much, Kelli. We'll be staying tuned for that.

Turning now to relief efforts in south Florida after Hurricane Wilma. Today the president toured the National Hurricane Center in Miami. Mr. Bush also got a firsthand look at the damage left behind. He toured parts of south Florida, stopping for a visit in Pompano Beach.

Some two million homes and businesses are still without power. The president says he's aware of the problem.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I know people are frustrated because they don't have power on yet, but I've been told by Jeb and others that there are at least 6,000 people from out of state working with their power people here in state to get people's lines up as quick as possible. Another words, it's a priority.

(END VIDEO CLIP)

BLITZER: Thousands of weary victims are waiting for that power to return, as well as for food, water and medicine. Our Rusty Dornin brings us a glimpse of their frustration from seniors at one retirement village in Boca Raton.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Hello. This is the refrigerator.

RUSTY DORNIN, CNN CORRESPONDENT (voice over): Many have little or no food in their homes. No power to their ovens or refrigerators, even if they did.

As tens of thousands around south Florida still deal with the unfortunate hand Hurricane Wilma dealt them, some 20,000 seniors at one retirement village in Boca Raton illustrate the frustration many are feeling across the region.

At the Century Village Retirement Community there is no electricity. Many need refrigeration for their medication, and some haven't eaten in days. But with lines even longer than the eye can see, the food is running out here. Another problem, many of the seniors were not told trucks with food were even coming, and other seniors homebound, so they can't get to the food anyway.

Rusty Dornin, CNN, Boca Raton, Florida.

(END VIDEOTAPE)

BLITZER: A sad story indeed in south Florida. Let's hope it gets better quickly.

Up ahead, it will be a honeymoon to remember, but for all the wrong reasons. We'll tell you how one couple's happiness was hit hard by Hurricane Wilma.

A scathing report on the Iraqi oil-for-food program. Just who was making payoffs and kickbacks? You might be surprised.

And Senator Ted Kennedy has some strong thoughts on the Harriet Miers' withdrawal. Coming up, I'll get his reaction.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: With the failure of the Harriet Miers' nomination, and with indictments possibly coming tomorrow in the CIA leak case, is the Bush White House in a state of crisis?

We turn now to our world affairs analyst, the former defense secretary, William Cohen. He's the chairman and CEO of The Cohen Group here in Washington.

Let's talk about the CIA leak investigation. First of all, you were a young congressman in the '70s during White Water during the investigation -- not White Water, Watergate...

WILLIAM COHEN, FMR. DEFENSE SECRETARY: Watergate.

BLITZER: ... and you of course remember in the '80s the Iran- Contra investigation.

Is this potentially similar?

COHEN: Well, there are some similarities in the sense that you have a -- if not a crisis mentality in the White House, certainly one of concern and even turmoil. And it's up to the White House now to get this past them as quickly as possible.

With the potential of indictments coming down tomorrow, the first thing the president has to do is to get rid of those people who are under that cloud. It would not be possible for him to say, well, I'm going to wait to see whether there is a conviction of those who are charged with a crime. That simply is not an option for him.

So, if he takes action quickly, if there are indictments, then those individuals, no doubt, will withdraw themselves voluntarily, much as Harriet Miers withdrew her nomination today. Then he can move forward with other issues.

BLITZER: You were in the House of Representatives when that 1982 statute was passed that -- that bars, makes it illegal to name a covert clandestine CIA officer. And you were very much in support of that.

COHEN: Indeed, I was. I was in the House back in the '70s, during the time when this really started to surface. Phillip Agee published...

BLITZER: He was a renegade CIA -- former CIA operative.

COHEN: Exactly. And he published a book, and he also named about a dozen covert operatives. One of those names in the book turned out to be Richard Welch, who was murdered. He was a CIA station chief in Athens at the time in Greece. He was murdered following the publication of his name.

That lead to the passage of the Intelligence Identity's Protection Act in 1982. There's some interesting facts involved in this. When Richard Welch was murdered...

BLITZER: Still in the '70s?

COHEN: This is back in the '70s, '75, as I recall. When he was murdered, the CIA director, Bill Colby, contacted my colleague, former colleague, Gary Hart, to ask him to help see to it that Welch could be buried in Arlington Cemetery. Gary Hart then placed a call to the White House, talking to Dick Cheney, who was on the chief of staff for President Ford. So there are some interesting ironies and twists and turns in our history.

BLITZER: And Dick Cheney then went ahead and voted for that legislation to make it illegal to pass -- to reveal the identity of a clandestine officer.

A former assistant attorney general writes in "The Wall Street Journal" -- a couple of former Justice Department officials write in "The Wall Street Journal" on the op-ed page this: "Nothing could be more damaging than an intelligence community that feels it cannot give information to the White House for fear of leaking sources and methods. That concern, always present, is at its apogee when high- level leaks go unpunished."

Presumably, that explains why the CIA referred this leak to the Justice Department for criminal investigation.

COHEN: Obviously the history behind this is that when you have any operative in the field, they have got to be protected. Sources and method, that's our code language, so to speak, for protecting those -- the identity of the people who are helping to give the information to the CIA agents.

If their identity becomes matter of public knowledge, if it's released, then they face the potentiality of being killed themselves, or having their sources in their respective countries murdered. So it's a very serious matter, it's no doubt why the CIA is very concerned about names being leaked by anyone in the executive or congressional branch, for that matter. Very serious, and that's why I'm sure the independent counsel, the special prosecutor, was interested in pursuing this as long and as vigorous as he had.

BLITZER: You served in government for a long time, including as defense secretary. There have been a lot of leak investigations over the years. Rarely, if ever, do they ever come up with anything given the nature of the confidentiality.

This particular case they may actually come up with something.

COHEN: It looks as if the special prosecutor really has a case. It would be very difficult at this point in time to simply walk away and say, well, I made an investigation.

Although, I must say, the toughest choice for a prosecutor -- and I used to be one in my younger years -- is not whether to get an indictment. Because it's almost -- I mean, it's almost impossible not to get one as you're presenting one side of the case.

The toughest decision for a prosecutor is when not to indict. In other words, when you're not sure you really have the case and put an individual through the criminal justice system. So easy to get an indictment, tougher decision not to indict. We'll have to wait and see what he's going to do.

BLITZER: So, in other words, if Patrick Fitzgerald does not indict anyone, that could be a profile encouraged. COHEN: That could be a real profile encouraged. If he doesn't feel that he has sufficient evidence that would warrant putting these individuals through the justice system, that takes a lot of courage on his part. But if he's satisfied there is sufficient evidence, they should stand trial, then he stood up to a lot of pressure in this city.

BLITZER: William Cohen, thanks very much.

COHEN: OK.

BLITZER: Coming up, hundreds of businesses around the world accused of doing illegal business with Saddam Hussein when he was in power. We'll bring you the stunning findings of a United Nations- backed investigation.

And the long wait for gas in Florida fueling frustrations after Hurricane Wilma. We're live at the gas lines.

All that coming up.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Some might call it oil-for-food for Saddam Hussein. An independent report backed by the United Nations says the former Iraqi leader manipulated that corruption-plagued humanitarian program, lining his pockets with nearly $2 billion in elicit payments. The report says some big-name businesses did business with Iraq under Saddam Hussein.

Let's go live to our senior U.N. correspondent, Richard Roth. He's been following all of these developments -- Richard.

RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Wolf, this was the final report by Paul Volcker's team, the U.N. approved investigation. And the conclusions were just as damaging as all of those that have come before.

(BEGIN VIDEOTAPE)

ROTH (voice over): More than 2,000 companies were accused of doing illegal business with Saddam Hussein, feasting on the oil-for- food program. One prominent American businessman, according to the Volcker report, was Texas oil trader Oscar Wyatt Jr., who in a case of bad timing for him was also arraigned in federal court, charged by the government with paying millions of dollars of secret kickbacks to win oil contracts with Iraq.

Wyatt often met with Saddam Hussein and opposed U.S. sanctions on Iraq. Wyatt pled not guilty and was released on bail set at $2.5 million.

The corporate corruption really started in 2000, when Saddam said, in effect, if you want to play, you have to pay. PAUL VOLCKER, COMMISSION CHAIRMAN: And there were no oil exports for awhile, and then other companies stepped in, other middlemen stepped in, front companies were made up, and it proceeded. But it seems to me at that point was where there was a real failure, that's where the program got corrupted.

ROTH: The investigators say it was a global looting of the humanitarian program. Companies from 66 nations, some household names.

The report says a DaimlerChrysler employee paid $7,000 extra to Iraq on a contract violating U.N. sanctions. Volcker said the firm was unaware of the payment. The company said it could not comment because of pending investigations.

A subsidiary of Volvo Group of Sweden, Volvo CE, a maker of heavy equipment, was listed as paying more than $300,000 in kickbacks in connection with contracts. The company told Volcker's panel the conclusions are wrong and the evidence is unfamiliar to the firm. The panel says three Siemens subsidiaries paid kickbacks to the Iraqi regime in order to get contracts. The company told Volcker's commission it's puzzled by the premature and unjustified findings.

(END VIDEOTAPE)

ROTH: A large majority of the companies, Wolf, French and Russian. Many of the companies by far failed to respond to Paul Volcker when he asked for their comment -- Wolf.

BLITZER: What, if anything, does the report say, Richard, about the notion that friendly Arab governments, western European governments, and maybe even the U.S. government knew what was going on but turned a blind eye to it?

ROTH: Well, that was covered mainly in the last report. But here, once again, Volcker today stressing everybody knew, why didn't the U.N. member countries do something to stop it? They control the contracts, the approval of who Saddam did business with, at least checking the contracts, and they didn't do it.

BLITZER: Richard Roth reporting. Thanks, Richard, very much.

Let's turn now to the issue of small businesses struggling to provide health insurance for their employees. Our Ali Velshi is joining us now live from New York with more on that -- Ali.

ALI VELSHI, CNN CORRESPONDENT: Hey, Wolf.

Something we all know, health care costs are rising fast, they're rising faster than inflation. And the smallest of small businesses, those with 10 employees or fewer, are finding it harder and harder to provide health care coverage to their workers.

Now, here's what a recent survey shows. Fifty-one percent of those small businesses say they don't currently offer or plan to offer a health insurance plan. Sixty-two percent say that cost is the biggest barrier to offering health care to their employees, and 85 percent who do offer health insurance plans say their premiums have increased over the past 12 months. The median, by the way, increase in health care coverage is about 17 percent.

(BEGIN VIDEO CLIP)

KRISTIE DARIEN, NATIONAL ASSOCIATION FOR THE SELF EMPLOYED: Larger businesses have more revenue, as well as more employees to spread the cost over. But a business with 10 or less employees has a smaller group of people to spread costs over. They also have small -- they don't have as many options in terms of health care as a large company.

(END VIDEO CLIP)

VELSHI: Now, some states are offering programs to help these very small, small businesses provide health care to their workers. Here's some examples.

In Oklahoma, starting on November 1, tobacco taxes and federal funds will be used to subsidize health insurance costs for small businesses. In Maryland, the state is allowing insurers to offer cheaper policies with fewer benefits to certain small businesses. And in Idaho, the state is going to pay up to $100 of worker's monthly premium for eligible companies.

Now, why is this all so important? Well, it's important because benefits like health care are a very big draw for workers. A company that can't offer benefits like health care or retirement plans has trouble attracting workers.

Now, a small business that can't offer health care can make up for it by paying their workers more. And as a result, the workers who do take those jobs at places that don't offer health care end up on a constant search for work in other places. You can't keep your workers if you can't offer them benefits -- Wolf.

BLITZER: And for millions of these potential workers out there, this is simply a huge, huge matter.

Ali, thank you very much for that.

VELSHI: OK.

BLITZER: Coming up, Senator Edward Kennedy on the Supreme Court battle ahead. Are Democrats pleased that Harriet Miers' nomination is a thing of the past, or are they sorry to see such a controversial choice go? Ted Kennedy in THE SITUATION ROOM, that's coming up.

Plus, a honeymoon nightmare. They had just a few days of wedded bliss before Wilma got in the way. The story one couple wishes they could forget.

Stay with us.

(COMMERCIAL BREAK) BLITZER: As President Bush faces yet another decision about a Supreme Court nominee, Democrats are warning him to consider the views of all Americans, not just the far right.

My colleague Jeff Greenfield and I spoke earlier with Senator Edward Kennedy, a top Democrat on the Judiciary Committee. I asked him if he was happy or disappointed that Miers is now out of the mix.

(BEGIN VIDEOTAPE)

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: Well, this has been a remarkable and troubling nominating procedure. The -- it appears that the only voices that have been heard are the voices are the extreme of the president's own party.

They established a litmus test and made a judgment decision that Harriet Miers didn't live up to that litmus test. That isn't really what the nominating procedures and process is really all about.

I believe that Harriet Miers would have gotten a fair hearing, we would have listened to the president's reasons for nominating her. And I think she would have had a fair hearing.

I think given where we are now, I think there is an extraordinary opportunity for the president to nominate someone that will bring the country together. The country is divided on so many different issues, on Iraq, on what's happening in the Gulf states, on the economy. Now is the real opportunity for the president to nominate someone that could bring the country together.

You know, the Senate has approved over 96 percent of the president's nominees. So we're not asking for much. The American people deserve someone that's going to be in the tradition of Sandra Day O'Connor.

Sandra Day O'Connor is a beloved figure in this nation and highly regarded and respected for her judicial competence and the contribution she's made to the protection of constitutional rights and liberties. That's the standard. That's the test that this president ought to use for the next nominee.

BLITZER: I assume, when she was making the rounds on Capitol Hill, you met with Harriet Miers, Senator Kennedy. Did you?

KENNEDY: No. I had requested earlier this week to meet with her and the White House said they were going to put it over until next week.

That might have sent a little signal to me that something was up, but I didn't conclude anything at that particular time.

BLITZER: Senator Kennedy, our senior analyst, Jeff Greenfield, is with us. He has a question for you -- Jeff.

JEFF GREENFIELD, CNN SENIOR ANALYST: Yes.

Good morning, Senator.

When a conservative president who says his models are Justices Scalia and Thomas twice gets elected by the people of the United States, doesn't that suggest something about what the public wants?

I mean, you voted, I believe, against Judge John Roberts whose credentials were nowhere in doubt.

Isn't the real story here that you and many of your liberal colleagues simply will not vote for any nominee who can fairly be considered conservative to the Supreme Court?

KENNEDY: No, that's not a correct assumption. I have voted for more Republican nominees for the Supreme Court than I have voted for the Democratic nominees.

What we're looking for are men, women, that are in the judicial mainstream. And I would hope that in this next nominee that we're going to have someone that's more reflective of our country and society as a whole.

That's why I think a woman, in this particular case, following Sandra Day O'Connor makes a good deal of sense, although there are highly qualified Hispanics and minorities.

What we're basically looking -- I don't establish a litmus test. I've never announced a litmus test.

But we have made remarkable progress in the last 50 years in knocking down walls of discrimination, in women's rights and environmental rights and worker's rights and civil rights. And we need a nominee that's going to continue that march toward progress.

Those are the general areas that I've questioned on and I think that's -- the American people don't want to go back. I don't think that's out of the mainstream.

GREENFIELD: You said, Senator, that this is, in effect, this is a victory for the right wing. Many of your Democratic colleagues said so.

But why shouldn't we consider this conservatives saying, with their own conservative president, "You didn't give us a credential nominee?" Why is this an ideological fight rather than what, to some people, looks like a principled stand by conservatives for a higher quality nominee?

KENNEDY: Well, because it's a litmus test fight, isn't it? I mean, that's -- really you can't listen to the comments that have been made by many of the president's principal supporters and not understand that this is a litmus test. They are either going to stand for certain positions and certain rights and liberties or otherwise they are going to have vigorous opposition.

I think establishing a litmus test is wrong. I'm opposed to a litmus test. But the president's own party has established a litmus test.

And I don't think that's what the American people are looking for. What they want is someone they can have a high regard and respect for, someone like Sandra Day O'Connor.

Sandra Day O'Connor was nominated by President Reagan, received unanimous support in the United States Senate.

Why is it so difficult to ask the president of the United States to follow that example of President Ronald Reagan and nominate someone that will have unanimous support and eventually have the support of all Americans and the respect and love of all Americans? I think the American people are entitled to it.

BLITZER: Senator Kennedy, do you see any connection between the withdrawal today of the Harriet Miers nomination and the possibility, the strong possibility that tomorrow there could be indictments against top Bush administration officials?

KENNEDY: You know, not really. This has been a gathering storm, so to speak, for the Republicans. I think people recognize that the president has a sense of loyalty to those that he is close to and so there wasn't really a sense and expectation that he was going to back off since we're really on the eve of the hearings themselves.

But it just became cumulative. And I think Americans are disappointed that a sort of an extreme view by the certain groups in the Republican party would have this kind of authority and this kind of power. That isn't what the nominating process is about. And we can expect better. We should expect better. The American people deserve better.

BLITZER: Did anyone from the White House, from the president on down, consult with you, ask you for your opinion before Harriet Miers' name was put forward?

KENNEDY: Well, yes. There's a process by which you get a phone call and you're given assurance that the president really is interested in your views. It isn't really a consultation because it's a one-way street, so to speak.

I've made recommendations to the president or to one of his assistants, but there's no real consultation. The consultation is something more than just a one-way street. That's what's been genuinely lacking. That existed in the past by Republican and Democratic presidents. The best way to get a first-rate nominee -- I hope the president would take true consultations with the leadership on both sides in the Senate.

(END VIDEOTAPE)

BLITZER: Senator Ted Kennedy here in THE SITUATION ROOM earlier today.

Still to come, life in Wilma's wake -- in South Florida, the lines for gasoline can still stretch for a mile or more, and the wait can be hours. As frustration mounts for Floridians, we will take you to the scene.

And, with thousands of Americans still stranded in Mexico, we will bring you the story of a couple who picked the wrong place and the wrong time for their honeymoon.

Stay with us.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Thousands of tourists flock to Maine each fall to catch a glimpse of nature's beauty. But how about calling the Pine Tree State Home? "Money" magazine selects Brunswick, Maine, as one of the best places to retire.

CYBELE WEISSER, WRITER, "MONEY": Having that sort of picturesque, small-town feel is very important to a lot of people. And you really get that community sense. It's great for retirees.

One of the slight deterrents is the cold. The taxes are probably higher than average for other retirement communities.

UNIDENTIFIED FEMALE: Brunswick is home to nationally renowned Bowdoin College, a small liberal arts school with plenty to offer seniors.

WEISSER: Bowdoin has the Bowdoin Friends organization. And, at a very low cost, senior citizens can join. And what they get out of that is free classes at the university, clubs, lectures, sporting events. It's kind of like a town pass.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: That's Marine One, the president's helicopter, taking him from Andrews Air Force Base, outside Washington, D.C., in Maryland, over to the White House -- the president having just returned from touring some of the devastation in South Florida, the result of Hurricane Wilma.

Our good friend Lou Dobbs is getting ready for his program. That comes up right at the top of the hour.

Lou, what are you working on?

LOU DOBBS, HOST, "LOU DOBBS TONIGHT": Wolf, thank you very much.

Coming up at the top of the hour here on CNN, we will be reporting on today's stunning political developments and setback for President Bush, withdrawing the Harriet Miers' nomination.

We will also be looking at the global struggle against radical Islamists. My special guest tonight is author Salman Rushdie.

And I will be talking with this country's toughest sheriff about his new crackdown on crime. And, by the way, the ACLU does not like my guest tonight. We will find out more about why.

And you will never guess which countries are at the top of the corruption list in the multibillion-dollar U.N. oil-for-food scandal. We will have that special report, a great deal more, at the top of the hour. Hope you will us -- now back to you, Wolf.

BLITZER: Thanks very much, Lou.

Three days after Hurricane Wilma hit, there still are long lines at the few gas stations that are actually open in South Florida. Some have fuel, but no power. Others have electricity, but no gas.

CNN's David Mattingly is watching all the frustration. He's joining us now live from North Miami.

How bad is it, David?

DAVID MATTINGLY, CNN CORRESPONDENT: Well, Wolf, I got something to show you.

This is a gas station that actually has gas for the moment. But take a look at the line. It is literally going around the block.

But, earlier today, it was five blocks long. Right now, it's only about two blocks long. That's because everybody has gotten word that the gas here is running out. The tanker truck arrived at about 11:30 this morning. And they believe that, by 6:00 Eastern time, that that gasoline will be gone and they'll have to start all over again.

People started lining up here this morning before dawn. Those people waited for hours. The people in line right now are waiting only about 40, 45 minutes.

Let's talk to a couple of them real quick.

Excuse me, sir. How close are you to running out of gas right now?

UNIDENTIFIED MALE: I have a quarter tank, about, yes, so a couple -- I don't know -- 60, 70 miles left.

MATTINGLY: If you didn't fill up today, what would happen to you?

UNIDENTIFIED MALE: I have to fill up today. I would be in trouble.

(LAUGHTER)

MATTINGLY: And that's the situation a lot of people, we are finding, are in right now, Wolf, because they're having to plan their day around these gas lines.

So many people are -- and this is the third day of the aftermath after the hurricane. They're finding that their gasoline supplies, whatever they had built up, are just about gone. And this side of the pump, you can see this is a very orderly situation. We have got cars on this side, people with gas tanks of their own on this side. A lot of these people are filling up for home generators.

Excuse me, sir. You're feeling up for a home generator?

UNIDENTIFIED MALE: Yes, and my car.

MATTINGLY: And, if you weren't able to get to this gas station today, what would be happening?

UNIDENTIFIED MALE: I would probably be sleeping at work tonight.

MATTINGLY: That's a -- again, Wolf, that's just one of the other personal situations, as so many people are finding themselves really in a tight spot, having to spend so much time looking for gas right now, finding those gas stations that actually have power -- Wolf.

BLITZER: But no price-gouging? Regular prices, is that right?

MATTINGLY: Well, if you want to call $3 a gallon price-gouging, well, I guess not.

BLITZER: All right, David, thank you very much -- David Mattingly watching this frustration develop. Thank you very much.

The State Department, meanwhile, estimates that several thousand Americans are still stranded on Mexico's hurricane-ravaged Yucatan Peninsula. More than 8,000 have been brought home from the region in the past three days.

CNN's Brian Todd is joining us once again with a story of a pair of newlyweds that had some hard luck -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, Todd Lester (ph) and his wife, Paige (ph), have been married less than two weeks now, but already another woman, named Wilma, has intruded.

(BEGIN VIDEOTAPE)

TODD (voice-over): Todd (ph) and Paige Lester (ph), married only a few days before their bond is put to the test. They thought they would be spending a few carefree days in Cozumel, Mexico, for their honeymoon.

But, just before Hurricane Wilma, their hotel staff decided it wasn't safe and evacuated them to Cancun. On the first luxurious night at an Intercontinental Hotel, it didn't seem so bad.

UNIDENTIFIED MALE: Here we are waiting for the hurricane.

TODD: But the hotel was deemed a little too risky. And, by the time Wilma swept in, on October 21, the Lesters (ph) had been taken to the darkened gym of a local school.

UNIDENTIFIED MALE: On our honeymoon. What a shot.

TODD: They say the hotel staff accompanied them to the school shelter, took care of them and even pampered them.

UNIDENTIFIED MALE: Here's Paige (ph) getting a massage at the shelter.

TODD: They got a little nervous as the storm swept over the school. But the challenge was in leaving.

A bus called to take them to a nearby town for a light out was stopped. The men got out to help a stranded motorist. Their bus moved around the corner, with the women and children inside, and overturned. No one was hurt. And Lester (ph) could only film the dazed aftermath.

UNIDENTIFIED MALE: We have just waded through waist-deep water after our bus flipped over. Nobody will believe this.

TODD: They made it to the next town and lucked out. An airline ticket office was right there. Nearly four days after Wilma's wrath, they were on their way back to Birmingham, Alabama.

UNIDENTIFIED MALE: That's our flight out of here.

(END VIDEOTAPE)

TODD: Todd Lester (ph) says this experience made them stronger as a couple. He says, they would definitely go back to Cancun or Cozumel, but, surprisingly, never during hurricane season -- Wolf.

BLITZER: All right. Brian, thanks very much -- tough honeymoon indeed.

Up next, the first lady was hoping for a woman candidate. And she got one, at least for a while. Now that Harriet Miers is out, will another woman take her place as the Supreme Court nominee?

And, later, when it rains, it pours. It's one storm cloud over the president after another.

We will be right back.

(COMMERCIAL BREAK)

BLITZER: Harriet Miers' resume, religion, and judicial philosophy were under scrutiny during her brief time as a Supreme Court nominee. But how might her being a woman have played a role?

And, for that matter, how might gender play a role in the search for another pick?

CNN's Mary Snow is joining us once again from New York with more on that.

Hi, Mary. MARY SNOW, CNN CORRESPONDENT: Hi there, Wolf.

And going forward, the question is, will the president feel extra pressure to name a woman. Everyone is saying that credentials are key for the next nominee, but many are also saying, they would like to see another woman.

(BEGIN VIDEOTAPE)

SNOW (voice-over): While critics questioned Harriet Miers' credentials, there was one characteristic many applauded, the fact she's a woman. Some lawmakers on both sides of the aisle support the idea of choosing another woman nominee to replace Sandra Day O'Connor, who is retiring.

SEN. DIANNE FEINSTEIN (D), CALIFORNIA: There are many who are women who would like to see another women. I took great pride in Sandra Day O'Connor. I take great pride in Ruth Ginsburg.

SEN. TRENT LOTT (R), MISSISSIPPI: The image of replacing Justice Sandra Day O'Connor with a woman I think would be very positive.

SNOW: Even first lady Laura Bush told reporters long before Miers was named:

LAURA BUSH, FIRST LADY: I let everyone know yesterday that I thought it should be a woman.

SNOW: Some legal scholars, while naming a woman to replace Justice Sandra Day O'Connor is symbolic, it may not make a big difference. That's because a lot has changed since 1981, when O'Connor became the first female on the high court at a time there were not many female judges and prominent lawyers.

CHARLES ROTHFELD, LEGAL SCHOLAR: In that sense, I think it becomes less important, because the law clerks are women. The lawyers who are appearing before the court are women. And, inevitably, you know, in 20 years, half the court will be women.

SNOW: Attorney Charles Rothfeld point out that there was much focus on Louis Brandeis when he became the first Jewish Supreme Court justice.

ROTHFELD: Now no one really pays any attention at all to whether or not -- you know, how many Jewish lawyers are on the Supreme Court.

But Justice Ruth Bader Ginsburg would argue, the court hasn't reached that point when it comes to women. Last week, she spoke to a group at West Virginia University, stressing the importance that not all judges be formed from the same mold.

JUSTICE RUTH BADER GINSBURG, SUPREME COURT: Our system of justice is surely richer for the diversity of background and experience of its judges.

SNOW: In recent weeks, Justice Ginsburg has said she would like to see another woman on the Supreme Court, but not just any women.

(END VIDEOTAPE)

SNOW: And we asked a legal scholar how crucial it would be to have women on the Supreme Court for issues such as abortion. And he reminded us that there were no women on the court when Roe v. Wade was decided -- Wolf.

BLITZER: Mary, thank you very much -- Mary Snow reporting.

Earlier here in THE SITUATION ROOM, the president's former speechwriter, David Frum, quoted Arlen Specter, the chairman of the Senate Judiciary Committee, as saying, at one point, that Harriet Miers, her nomination was unconfirmable.

We just got a statement from Specter's press conference, saying at no point did the senator ever say Ms. Miers was unconfirmable.

Wanted to update you on that.

With Miers out, Abbi Tatton has the Internet buzz on the latest Supreme Court candidates, along with some helpful online resources.

Abbi, what do you have?

ABBI TATTON, CNN INTERNET REPORTER: Yes, Wolf.

Who is next? That's what everyone is talking about. There's been lots of names thrown out there today. If you want to learn more about some of these possibles, go to CNN.com, where there are 17 potential nominees and biographies about each of them.

One name that we're seeing a lot in the conservative blogs today is Judge Michael McConnell. Bloggers like radio talk show host Hugh Hewitt, who has a popular blog, hughhewitt.com, he is a blogger who -- who actually supported the Miers' nomination, one of the few. He's calling McConnell a base uniter today. And lots of people seem to be rallying around that name on the right.

Another name we're seeing more and more this afternoon, especially in blogs around Washington, Maureen Mahoney, D.C. attorney, who is actually getting a lot of attention right now at The National Review Online, where there are a group of conservative columnists who blog incessantly who are talking a lot about Mahoney right now.

Again, go to CNN.com for a list of all these people who have been publicly mentioned today -- Wolf.

BLITZER: Maureen Mahoney, very much like -- Maureen Mahoney, very much like John Roberts, according to her supporters.

Thanks very much, Abbi, for that.

Up next, when it rains, it pours. Right now, it's raining trouble for the Bush administration. The Supreme Court and the CIA leak are just for starters. Can the White House recover from what is being called this perfect storm?

You're in THE SITUATION ROOM.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: This week in history, on October 24, 2002, dubbed as the D.C. snipers, John Allen Muhammad and Lee Boyd Malvo were arrested.

Two whales were freed in 1998 by Soviet and American icebreakers. The whales had been trapped for nearly three weeks.

And, on October 24, 1989, Reverend Jim Bakker was sentenced to 45 years in prison for his conviction on 24 counts of fraud.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Harriet Miers pulls her Supreme Court nomination just hours before an expected announcement in the CIA leak investigation.

Our Tom Foreman is here. He thinks the timing is hard to ignore -- Tom.

TOM FOREMAN, CNN CORRESPONDENT: The timing at the White House is just not good now. I'm not sure there's ever a bad day to be president, but think about this.

They have had to weather the hurricane. They have had to weather what's been happening in Iraq. They have had to weather this scandal. They have had to weather a lot of things.

(BEGIN VIDEOTAPE)

FOREMAN (voice-over): On the day President Bush is visiting hurricane-hit Florida, many Washington analysts say the perfect political storm around his administration is just getting worse and worse.

His pal Harriet Miers has now been forced to bow out, a significant blow to a president who rewards loyalty and who doesn't like to back down. His alter ego, Karl Rove, is being distracted by the possible threat of an indictment. The death toll for U.S. soldiers in Iraq has just hit 2,000, spurring new protests. And the almost magical powerful of the Oval Office, relied on by so many presidents in times of trouble, does not seem to be working now.

SEN. CHARLES SCHUMER (D), NEW YORK: The Houdini syndrome, where someone tied themselves in a knot and then said, I can't get out, I can't free myself, that is what sort of happened here.

FOREMAN: Part of the problem, political analysts say, is that the president's inner circle is under so much fire.

That CIA leak bombshell could explode tomorrow, when the grand jury's term runs out. And the legal peril is very real for Karl Rove, Scooter Libby, and others under the special prosecutor's microscope.

And the political peril for the president also is clear. Polls show his standing with the public is on very shaky ground, following one cloud after another, Iraq, Hurricane Katrina, the leak controversy and the Miers' debacle.

SEN. DICK DURBIN (D), ILLINOIS: I think it reflects the nominee. And it also reflects the standing of the president with the American people at this moment.

LOTT: It's kind of like having a sore. When it's healed, it surely feels better.

FOREMAN: That may be wishful thinking by Republicans with Miers out of the way.

But the GOP may be taking cues from the long-suffering White Sox fans. If Chicago's World Series curse can be lifted after 88 years, who is to say the Bush White House can't rebound?

UNIDENTIFIED MALE: Unbelievable.

UNIDENTIFIED FEMALE: I can't believe it!

(CHEERING)

(END VIDEOTAPE)

FOREMAN: The parents of the president were even at the game last night to watch the Astros lose. It's a very tough time.

But I have been talking to conservatives all over town all day today. They want to support him. They want this White House to get out of these problems. They're saying, let's just have a little give- and-take. Let's get back on board.

BLITZER: Listen to this. I want you to stick around for this.

Jack Cafferty must be a fortune teller. He's on vacation right now. But listen to what he said here in THE SITUATION ROOM some 15 days ago.

(BEGIN VIDEO CLIP)

JACK CAFFERTY, CNN ANCHOR: If she's confirmed as a Supreme Court justice, I'll eat this Time Warner Center one brick at a time. Ain't going to happen.

(END VIDEO CLIP)

BLITZER: Jack Cafferty. He also said he didn't even think she would get confirmation hearings. He was right. Good prediction from Jack.

FOREMAN: Yes. We were -- we were shipping bottles of salsa up to him. And now, look, he's off the hook. BLITZER: He's off -- doesn't have to eat those bricks.

(LAUGHTER)

BLITZER: Thanks very much.

We are here in THE SITUATION ROOM every weekday afternoon, 3:00 to 6:00 p.m. Eastern. I'm Wolf Blitzer.

"LOU DOBBS TONIGHT" starts right now -- Lou standing by in New York -- Lou.

DOBBS: Thank you, Wolf.

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