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John Kerry Under Fire; Florida Governor's Race Heats Up; Racial Tensions at Johns Hopkins?

Aired October 31, 2006 - 15:00   ET

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


DON LEMON, CNN ANCHOR: Well, was it all a jab at President Bush? That's what John Kerry says about his remark at Pasadena yesterday that's creating a political storm today.
(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D), MASSACHUSETTS: Well, you know, if you make the most of it, and you study hard, and you do your homework, and you make an effort to be smart, you -- you can do well. If you don't, you get stuck in Iraq.

(LAUGHTER)

(END VIDEO CLIP)

LEMON: And, a short time ago, Kerry said the remark was a botched joke intended only at the White House.

(BEGIN VIDEO CLIP)

KERRY: Let me make it crystal clear, as crystal clear as I know how. I apologize to no one for my criticism of the president and of his broken policy. If anyone owes our troops in the fields an apology, it is the president and his failed team, and a Republican majority in the Congress that has been willing to stamp, rubber-stamp, policies that have done injury to our troops and to their families.

My statement yesterday -- and the White House knows this full well -- was a botched joke about the president and the president's people, not about the troops. The White House's attempt to distort my true statement is a remarkable testament to their abject failure in making America safe.

It's a stunning statement about their willingness to reduce anything in America to raw politics.

(END VIDEO CLIP)

LEMON: Well, certainly, this will not be the end of it.

Ed Henry is watching the feeding frenzy that has erupted at the White House.

What are officials there saying?

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, as you know, as you can see, Senator Kerry there insisting that he was referring to student -- to -- to the president, rather, and that the president didn't study the lessons of war, along with some of his aides, that they wound up getting stuck in Iraq.

But what Tony Snow at the White House podium today, at his briefing, was insisting is that Kerry was really referring to the students there in California, and that, if they didn't study, they would end up in the military, and they would end up stuck in Iraq. Tony Snow called that an insult.

Take a listen.

(BEGIN VIDEO CLIP)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: An extraordinary thing has happened since September 11, which is, a lot of people, America's finest, have willingly agreed to volunteer their services in a mission that they know is dangerous, but is also important.

And, you know, Senator Kerry not only owes an apology to those who are serving, but also to the families of those who have given their lives in this.

This is an absolute insult.

(END VIDEO CLIP)

HENRY: Now, in addition to those comments from Kerry we saw a moment ago, he also put out a written statement, calling Tony Snow a -- quote -- "stuffed-suit White House mouthpiece," and calling Rush Limbaugh doughy, and -- and making fun at Limbaugh coming -- coming at Kerry.

No reaction yet from Tony Snow on that. But I think, when you -- when you peel back sort of the war of words on both sides, what's really at work here is, on the Democratic side, John Kerry is desperate to get back into the game. He wants to run for president again in 2008. He's really glad to get into a sparring match with this White House and to show that he's willing to stand up to the White House.

That's something that a lot of Democrats feel he failed to do in 2004 -- John Kerry, two years later, now trying to stand up to the White House.

And, the Republican side, it is pretty clear what they're doing as well -- Tony Snow delighted. I saw him at the podium when that question came in. He was looking at his notes. He was prepared and armed to go after John Kerry.

And that's because the conservatives feel, they will whip up their base if John Kerry is front and center in the final week of this campaign. He's somebody that raises the ire of conservatives.

And I can tell you, basically, the Kerry side's happy to get back in the game. The White House is glad he's back in the game -- both sides just basically trying to fire up their base -- their bases -- Don.

LEMON: Yes. And I'm glad you said that. Let's not take any sides here, not the Republican side, and not the Democratic side -- the voters side.

Isn't this what polls show that people are tired of, and that they're going -- going to vote on this coming Election Day? Isn't this the reason people say that they want someone who is going to unify people, like Barack Obama, instead of all this fighting about who is right, who said this, who said that?

HENRY: Well, certainly, some of the polls would suggest that people are tired of the sparring back and forth.

But you wouldn't really learn that from the politicians, because, on both sides, they continue to fire back and forth. I mean, today, you have Democratic Congressman Charlie Rangel basically referring to Vice President Cheney as an SOB.

I asked Tony Snow about that, not just about responding, but what will happen, as your question suggests, if the Democrats -- and that's a big if -- if the Democrats take control of Congress? With these words flying back and forth, the rhetoric, and not really dealing with problem -- problems on both sides, what will happen if it's Democratic Congress and a Republican president in the final two years?

Tony Snow insisted they're still hopeful they can get some -- some things done. But let's face it. If either the Democrats take control of Congress or the Republicans keep control, but with very thin majorities, based on this rhetoric flying around, it is going to be very hard to get a lot of stuff done -- Don.

LEMON: Ed Henry always on top of it -- thank you very much.

HENRY: Sure.

LEMON: Reporting from the White House.

And we are following this story very closely from the NEWSROOM. We will bring you more developments as they happen this hour.

And to read Senator Kerry's entire statement, go to CNN.com.

KYRA PHILLIPS, CNN ANCHOR: Talks over North Korea's nuclear weapons program could be back on by the end of this year. North Korea agreed to sit down again with five nations, including the U.S., after a seven-hour meeting among Pyongyang, Beijing, and Washington.

They north walked away from six-party talks nearly a year ago, and exploded some type of nuke earlier this month.

Well, earlier today, the president noted, there was a lot of work ahead on North Korea.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will be sending teams to the region to work with our partners, to make sure that the current United Nations Security Council resolution is enforced, but also to make sure that the talks are effective, that we achieve the results we want, which is a -- a North Korea that abandons her nuclear weapons programs and her nuclear weapons.

(END VIDEO CLIP)

PHILLIPS: United Nations economic sanctions imposed after North Korea's October test remain in place.

Forty-thousand-plus acres, 34 homes, and at least four lives, just some of what that wildfire outside Palm Springs, California, has claimed. After five tough days, firefighters managed to get it under control last night. Now investigators are tallying up the damage, so far estimated at nearly $10 million. And they're still on the hunt for whomever started that fire.

The arsonist faces a host of charges, including murder. These four firefighters were killed battling the flames that day -- their families confused about why anyone would deliberately set that fire.

Here's what the mother of the youngest fallen firefighter told CNN's Larry King.

(BEGIN VIDEO CLIP, "LARRY KING LIVE")

GLORIA AYALA, MOTHER OF KILLED FIREFIGHTER: You know, it's absolutely horrific to even think that anybody would play with matches. My goodness, are they children? Are they like little 2 or 3-year-olds? No, they were adults that did this. They were adults that did this, that -- that killed four men -- four men.

(END VIDEO CLIP)

PHILLIPS: One firefighter survived when that crew was overtaken by the flames. Pablo Cerda remains in critical condition, with burns over 90 percent of his body.

LEMON: Just one week to go until America votes, and, next Tuesday, on a national level, it's all about control. Which party will be in charge of the Senate, which will control the House?

Here's a map showing some key Senate races. They include some of the most at-risk Republican seats, one that could help Democrats take control of at least the House of Congress.

In Virginia, an already nasty Senate race is taking a novel turn. A candidate's writings have become part of the campaign.

CNN's congressional correspondent, Dana Bash, is in Alexandria.

(BEGIN VIDEOTAPE)

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: The Senate race here in Virginia was supposed to be a lock for the incumbent Republican, George Allen.

But things all changed over the summer, when Allen had what's known here in Virginia as his macaca moment, when he referred to an aide of his opponent, Jim Webb, by using what appeared to be a racial slur. Now, Allen has since apologized, and explained.

But what has happened in the past two-and-a-half months is, his 16- point lead has evaporated. In a new poll for CNN conducted by Opinion Research Corporation, Jim Webb, the Democrat, has 50 percent, and Allen has 46 percent. It's a statistical dead heat, but shows why this Senate race here in Virginia has become so rough and tumble.

Now, Jim Webb is a Republican-turned-Democrat. He is a former Navy secretary who wrote several things about women in the military, including the fact, at the time, he did not believe that women should be in combat.

Well, Republicans are airing an ad now in Virginia suggesting, not so subtly, that Webb has a problem with women. And, in fact, the Allen campaign, over the last several days, has -- have been pushing some sexually explicit passages in some novels that Webb wrote -- again, Senator Allen himself on the campaign trail, over and over, trying to make the case that Webb is -- has said some things, written some things that are degrading to women.

Now, this race has become quite nasty, when it comes to the personal attacks. But it also is about the issues. Iraq looms large over Virginia, as it does on the campaign trail across the country. And Senator Allen is a Republican who, for a long time, was very much supportive, in lockstep with the Bush policy, when it comes to Iraq.

But Democrat Jim Webb is a former Vietnam veteran. He has made Iraq, his opposition to the war, a primary part of his campaign. And now Senator Allen is one of several Republicans in trouble who has changed his tune when it comes to Iraq. He now says that the administration should think about changing its strategy, changing its tactics.

He told us, over the weekend, the results and progress in Iraq are insufficient.

Dana Bash, CNN, Alexandria, Virginia.

(END VIDEOTAPE)

PHILLIPS: Iraq, education and American soldiers -- more on the flap over Senator Kerry's comments.

You're watching CNN, the most trusted named in news.

(COMMERCIAL BREAK)

LEMON: Now to Florida, where the governor's race is getting hotter by the minute, as Republican Charlie Crist and Democrat Jim Davis pound the pavement and press the flesh. The winner may be determined by a written test. CNN's John Zarrella explains.

(BEGIN VIDEOTAPE)

LOU BATTISTA, PARENT: OK. Now, let's work on the sentence beforehand, OK?

JOHN ZARRELLA, CNN CORRESPONDENT (voice over): For Lou and Heather Battista, having three school-aged children means the three R's are their number one issue.

BATTISTA: So, how many more calories does it have?

ZARRELLA: Education will determine which of Florida's candidates for governor, Democrat Jim Davis or Republican Charlie Crist, they vote for.

BATTISTA: Education is swaying my vote, and I think you're going to find education is going to sway the votes of many people, not just the parents.

ZARRELLA: What rankles the Battistas is Florida's Comprehensive Assessment Test, called the FCAT, given to students in grades three to 11. It measures the performance of students, and determines whether students in certain grades are promoted. Teachers and schools are graded, too.

BATTISTA: You now force your teachers to teach to the test. So, instead of them having the ability to use their skills and teach as they have been taught to teach, they only teach to the examination.

ZARRELLA: The FCAT is so controversial that candidates squared off on it right out of the box in their first debate. And there may be no other issue on which the two disagree more.

CHARLIE CRIST (R), FLORIDA GUBERNATORIAL CANDIDATE: It's right to take a measure of what happens in the classroom on behalf of our children. And you know why? They don't get a second chance to go to elementary school or to middle school or to high school. And, if we let them down, we let them down forever.

JIM DAVIS (D), FLORIDA GUBERNATORIAL CANDIDATE: We can do better. And we will do better when we stop using the FCAT to punish children, teachers and schools, instead, use it as a learning tool.

ZARRELLA: In the past couple weeks, Davis has come on strong. His position on issues like the FCAT have helped him gain on Crist, erasing Crist's double-digit lead. Poll watchers say it was a lack of money that hurt Davis early.

SUSAN MACMANUS, POLITICAL SCIENTIST: He hasn't had the money to run television ads until recently. And this is a big state, and television is critical to being able to cover one end to the other. And that's probably been his biggest disadvantage.

ZARRELLA: Crist certainly has the money, party backing and name recognition to hold on. But it's suddenly become a test the Republicans could flunk.

John Zarrella, CNN, Miami.

(END VIDEOTAPE)

LEMON: John Zarrella is joining us live now from Davie, Florida.

John, there has got to be some other issues that Floridians are concerned about.

ZARRELLA: Don, no question about it.

The political experts will tell you that this is going to be a pocketbook election in Florida, besides education, property taxes and homeowner's insurance. The past couple of years, in the wake of all the hurricanes, homeowner's insurance has doubled and sometimes tripled for folks here in Florida. Those are two big issues.

And people are lining up voting on which of the two candidates they believe is going to be able to bring homeowner's insurance and property taxes under control -- Don.

LEMON: You know what, John? I want to ask you, what influence -- Governor Jeb Bush has a huge influence in Florida. He is the governor there.

ZARRELLA: Yes.

LEMON: What do you think the influence will be in this race so far? What influence has he had?

ZARRELLA: No question about it, Jeb Bush has been a very, very popular governor here, eight years, and Charlie Crist, serving as his attorney general here in -- in Florida.

And, you know, now, the -- the issue for the governor is that he has been out on the campaign trail, campaigning for Charlie Crist very heavily, and has even done a commercial for Charlie Crist. So, there's no question that that has been a very, very positive influence for Charlie Crist in his -- in his campaign, and for the Republicans in their effort to retain control of the governor's house in Tallahassee -- Don.

LEMON: All right, John Zarrella, in Davie, Florida, thank you so much for your report, sir.

PHILLIPS: Let's get straight to the NEWSROOM -- Betty Nguyen working details on a developing story.

Betty, what do you have?

BETTY NGUYEN, CNN CORRESPONDENT: Oh, this is something you have to see, Kyra.

We saw Dana Bash's story dealing with Senator George Allen. Well, he's making news yet again, this time involving a protester. Take a look at the video. He was campaigning in Charlottesville, and a protester came up on him, wanted to talk to him. And, well, you will see what happens next.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm a constituent. He's my senator. I'm asking a question.

UNIDENTIFIED MALE: (INAUDIBLE)

(CROSSTALK)

UNIDENTIFIED MALE: You are going to need to leave now. Get out the door.

UNIDENTIFIED MALE: Are you part of...

(CROSSTALK)

UNIDENTIFIED MALE: No, I'm not. No, I'm not at all. Let's move on.

UNIDENTIFIED MALE: Senator Allen, if you (INAUDIBLE) on your first wife...

UNIDENTIFIED MALE: Oh, now you're getting personal.

UNIDENTIFIED MALE: Get out of here.

UNIDENTIFIED MALE: Now you're getting personal. Now you're getting personal.

UNIDENTIFIED MALE: I didn't touch anybody, OK?

UNIDENTIFIED MALE: You need to move on out of here now.

UNIDENTIFIED MALE: If the hotel asked me to leave, I would leave.

UNIDENTIFIED MALE: You're getting personal.

(END VIDEO CLIP)

NGUYEN: So, there you have it, a protester trying to get close to Senator George Allen, as he was leaving a speaking event. In fact, he was leaving one part of the hotel, trying to get to another part to speak with the media, when that man approached him.

As you can see, Allen's people tackled him to the ground. Some may call it manhandling him. But, when asked a little bit later by one of our affiliates there in Charlottesville about what the senator thought about what had just happened, he says, things like that happen -- obviously, a very interesting day for him, no doubt -- and no word on any injuries or anything like that, but, obviously, something that you don't see all the time. And it just leads to more controversy surrounding Senator George Allen. And just one other little thing -- as you know, just in all fairness, he's running against Democrat James Webb, as that Election Day draws nearer -- back to you.

LEMON: All right, thank you very much for that, Betty.

Campus controversy at the elite Johns Hopkins.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It appears, unfortunately, quite apparent that you have, in fact, problems of blatant racism here in this campus. And it is not just this one incident.

(END VIDEO CLIP)

LEMON: Well, black students say they're offended, and a frat is suspended -- details ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: It was a frightening Halloween party, for all the wrong reasons. A fraternity at Johns Hopkins University has been suspended, amid charges of racism. The Baltimore school is known more for its curriculum than controversy.

But some students say the incident underscores an ugly undercurrent on campus.

Roosevelt Leftwich of affiliate WMAR reports.

(BEGIN VIDEOTAPE)

ROOSEVELT LEFTWICH, WMAR REPORTER (voice-over): The party invitation said it was being held in the ghetto, the hood, and at the HIV pit. Attendees were encouraged to wear bling-bling, ice-ice, grills, hoochie hoops, and white T's.

And, on the front porch of Sigma Chi house, a pirate was hanged. The e-mail author says he doesn't condone racism, but a lot of students thought otherwise.

DANA GORDON, STUDENT: Yes, this has been happening as long as the seniors have been here, for four years. It's nothing new, and we're just coming upon something big and blatant, but that it happens all the time.

LEFTWICH: The closed-door meeting was packed with students. They say the incident with Sigma Chi, although blatant, was only a small part of what many students say is an undercurrent of racial tensions, not just with the black students, but with all minority students on campus.

JUSTIN JONES, STUDENT: There is this current of not necessarily that we're not welcome, but we're here on false pretenses. UNIDENTIFIED FEMALE: Just, when talking to other students of other races, hearing little snippets of racial comments that are made and jokes that are made, and innuendoes, and just beginning to understand better.

LEFTWICH: In a statement, the university promised an investigation into the incident, and said that it was repugnant. President William Brody, in a statement, said -- quote -- "The adoption of racial stereotyping as a party theme is a repugnant act. And groups that want to consider themselves Johns Hopkins student organizations should understand that the university will not tolerate it."

An adult adviser to Sigma Chi also called the act intolerable.

JOHN MILLER, SIGMA CHI ADVISER: I know I support, and I know the general fraternity supports, getting to the bottom of this, and understanding it. I believe there's a large -- larger issue at -- at this university, and perhaps others, of things like this going on, and not being dealt with.

(END VIDEOTAPE)

PHILLIPS: Well, some of the most popular clips on YouTube may soon have to be taken down.

Susan Lisovicz joins us live from the New York Stock Exchange to tell us why.

Speaking of YouTube, Susan, just all -- from John Kerry clips, to other things that happened throughout the day, immediately on YouTube.

SUSAN LISOVICZ, CNN CORRESPONDENT: Absolutely. It is endless. You -- you just get lost in there.

And, you know, what's frightening about this, on this Halloween, is that the company involved is the parent company of MTV, Paramount Pictures, BET, Comedy Central. It's Viacom. And it has asked YouTube to take down some of its videos, as part of discussions about how the two companies can work together.

No word on exactly which videos could be removed, but Viacom says they include clips from the immensely popular "Daily Show With Jon Stewart," which you see there, and "The Colbert Report," which you see there, both on Comedy Central.

Colbert, in fact, once joked that YouTube owes him $700 million of the $1.65 billion Google paid for the company earlier this month, because it plays so many clips of his show.

YouTube has been negotiating with the big media companies, including Viacom, to post copyrighted material. NBC Universal and CBS have already inked ad deals with YouTube -- Kyra.

PHILLIPS: All right, another big Internet company also facing copyright issues, right? LISOVICZ: Right. I mean, this is quite normal.

The technology is always two steps ahead of the copyright laws. MySpace, in this case, has decided to filter music itself, rather than share ad revenue. To do that, MySpace will install something called audio fingerprinting technology to block users from uploading copyrighted music.

MySpace will review all music files uploaded to its online member profiles, and run the files through a music database from Gracenote. Users who repeatedly try to upload copyrighted music files will be barred from the social networking site, which is owned by News Corp. No one would want that, because it's so popular -- the move a response to threats and lawsuits by major record labels, who are trying to protect artists' rights and, of course, their own revenue.

Meanwhile, well, profits here on Wall Street -- we have had a terrific string of corporate profits. But we're not seeing much of a rally on Wall Street today -- negative territory, in fact, for much of the day. This morning, we saw a surprising drop of consumer confidence in October, despite declining gas prices.

Right now, the Dow industrials down for a third day, but just mildly, down 13 points -- the Nasdaq holding on, up three.

And that is the latest from Wall Street. I will be back in about 30 minutes with a wrap of the trading day -- more from the NEWSROOM straight ahead.

(COMMERCIAL BREAK)

LEMON: Well, we tell our kids not to take candy from strangers. Then, we send them out each Halloween to do just that.

In an effort to make trick-or-treating as safe as it can be, some authorities are restricting registered sex offenders' Halloween activities.

Liz Kennedy reports.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Yes.

LIZ KENNEDY, CNN CORRESPONDENT: As kids across the country get ready for a night of trick-or-treating, law enforcement officials in several states are planning to drop in on registered sex offenders. In some areas plainclothes officers will be walking the same routes as kids in costumes. Officials say they aren't taking any chances this Halloween.

WILLIAM PONDER, N.Y. STATE PAROLE DIVISION: I don't know if they would be out there committing crimes. We are in the business of preventing those things from happening.

KENNEDY: The Halloween crackdown applies to registered sex offenders who have been paroled or put on probation, including those whose crimes did not involve a minor.

Tennessee has banned offenders from hanging decorations. They've been warned not to interact with trick-or-treaters and to stay away from costume parties and haunted houses.

In some places offenders have to attend meetings during prime trick-or-treating hours. Other states, like New York, are enforcing curfews from 3:00 Tuesday afternoon until Wednesday morning. This offender says the curfew is too much.

UNIDENTIFIED MALE: I don't think it's necessary. I mean, we got stipulations to follow and everything like that. So if we do what we got to do, I don't think it's necessary to have us in at 3:00.

KENNEDY: Offenders caught violating community Halloween restrictions could lose their parole or probation and end up behind bars.

I'm Liz Kennedy reporting from Atlanta.

(END VIDEOTAPE)

PHILLIPS: It was a family business passed from generation to generation. But now it's resulted in 44 arrests in Arizona. Why?

Well, police say it was a people-smuggling business responsible for hauling hundreds of undocumented immigrants over the Mexican border. The federal agent says the man who started the ring passed it on to his two sons and their wives. Eleven suspects, reportedly, are still at large.

LEMON: Federal officials made fewer arrests last year of people trying to get into the U.S. illegally. They say it's a sign of stronger enforcement. There were 1.1 million arrests in the last fiscal year, down by 100,000 from the previous year.

Homeland Secretary Michael Chertoff more border patrol agents, fences and other security measures. Chertoff says the idea -- ideal is to stop illegal immigration from getting into the U.S. -- immigrants, rather, from getting in to the U.S. And fewer border crossings suggests that line of defense is working.

PHILLIPS: Well, his name may have been Red, but the man bled celtics green -- Celtics green, rather. Loved ones gathered this morning for the funeral of "Red" Auerbach, a Boston basketball legend. He died Saturday at the age of 89.

He coached the Celtics to nine NBA titles, adding seven more from the front office, in addition to innovations like the sixth man and fast break. He drafted the league's first black player, hired its first black coach and was the first NBA coach to send out five black starters. Celtics say that they dedicate their season to their longtime leader.

LEMON: Colorful and controversial, to say the least. Present at the start of the civil rights movement, a contender for the Oval Office. Ahead in the NEWSROOM I talk with Reverend Jesse Jackson about his long and interesting life.

(COMMERCIAL BREAK)

LEMON: Well, even he admits he's one of those people you either love him or you hate him. Is he a unifier? Is he a divider? Does he play the race card too much? Does his message still resonate?

With 40 years as a civil rights leader and 65 years under his belt, I sat down with the Reverend Jesse Jackson on the eve of his birthday celebration and we talked.

(BEGIN VIDEOTAPE)

REVEREND JESSE JACKSON, CIVIL RIGHTS ACTIVIST: The laws of convenience lead to collapse.

LEMON (voice-over): Whatever you think of the Reverend Jesse Jackson, there's no denying he's been there.

JACKSON: And when parents and teachers join hands together...

LEMON: In the company of kings.

JACKSON: Marcus Garvey, Malcolm X, Martin King.

LEMON: Even on the balcony when America's most famous King was assassinated. Now, nearly 40 years later, surrounded by family and some most influential friends, Jesse Jackson turns 65.

JACKSON: I didn't think I'd make it to 65 because this has been a difficult ride.

LEMON: And a dangerous one.

UNIDENTIFIED MALE: May I be admitted?

UNIDENTIFIED MALE: No, sir, you cannot be admitted.

UNIDENTIFIED MALE: Why?

UNIDENTIFIED MALE: I am not going to serve you.

UNIDENTIFIED MALE: Because of my race?

UNIDENTIFIED MALE: I'm not going to serve you.

LEMON: "How Soon We Forget" could be the theme of Jesse Jackson's last decade or so. After all, it was him marching or sitting with Dr. Martin Luther King, Jr. in all those civil rights photographs. But lately he's been called everything from an opportunist to a philanderer to an agitator.

(on camera): So when people say, Jesse Jackson plays the race card too much, your answer to them is?

JACKSON: Well, that it is not true. It is true that blacks have high infant mortality rates and shorter life expectancy. That's because of structures, conditions that must change.

LEMON: When people say, Jesse Jackson inserts himself into every big news story, that he's enamored with the media and publicity, you say?

JACKSON: The media is the outlet for ideas. No African-American leader or journalist has a primetime show to get ideas out. And so if I go to Syria or Iraq or Cuba or Yugoslavia to bring Americans back home, I didn't chase the ambulance, the ambulance chased me.

LEMON: People would say, well, what is his job? Does Jesse Jackson have a job? Has he gotten a job yet? And your answer is?

JACKSON: It's an attempt to demean our Rainbow/PUSH Coalition. It is a human rights organization. People who speak that way are speaking in pejorative, demeaning terms. You have to dismiss it. Consider the source.

LEMON: Jesse Jackson is a reverend, yet he had an affair. He's got a kid.

JACKSON: We all stand and fall for the glory of God. But if we are honest and open, God will forgive and redeem and allow us to move on and get back up again.

LEMON (voice-over): Even one of the largest black-owned publications, Ebony Magazine" recently asked the question, does Jesse Jackson still matter?

(on camera): Does Jesse Jackson still matter?

JACKSON: They didn't say that. They asked that.

LEMON: That's a question.

JACKSON: And the people answered.

LEMON: Answered, and many came to his defense.

UNIDENTIFIED FEMALE: Of course he still matters. He has always mattered. You cannot eradicate all the wonderful work that he has done throughout his career.

UNIDENTIFIED FEMALE: That's obvious. I mean, he is teaching us in everything he does and says. He still takes the kind of risks to say things that a lot of us can't. He's in a position to use his leverage and he does it every single time. I mean, we wouldn't be here if it weren't for Jesse Jackson. That's just a no brainer.

UNIDENTIFIED FEMALE: That's true.

LEMON: Even Michelle Obama's husband, Barack Obama agrees.

SEN. BARACK OBAMA, (D) ILLINOIS: Reverend Jackson continues to be one of the most powerful voices on behalf of the disaffected, the dispossessed. Wherever he goes, he makes news. LEMON: Before there was a Barack addressing a Democratic convention and hinting at a presidential run, there was a Jesse. Run, Jesse, run. Remember 1984? And then again in '88?

JACKSON: You hold on and hold out. We must never surrender. America will get better and better. Keep hope alive. Keep hope alive. Keep hope alive. Keep hope...

CROWD: Keep hope...

JACKSON: Alive.

CROWD: Alive.

JACKSON: Keep hope...

CROWD: Keep hope...

JACKSON: Alive.

CROWD: Alive.

JACKSON: Let me hear you scream. [ cheers ]

(APPLAUSE)

LEMON: Times have certainly...

(END VIDEOTAPE)

PHILLIPS: Had a little bit of an edit issue, but tell me about the rest of the piece.

LEMON: I was going to say times have certainly changed since then. But he says his message is still the same even though some people may say that it is outdated or that it no longer resonates. He will argue that it still does and he's still on the side of the people regardless of which race, country, creed or whatever.

PHILLIPS: And when that "Ebony" article came out, a lot of people wanted to hear more about does he really matter? Because Barack Obama has been getting a lot of attention as sort of the black leader right now. And they're actually really good friends.

LEMON: They are good friends. And we're going to talk to Michelle Obama tomorrow a little bit, and she actually talks about they communicate with the Jacksons a lot. And they would be open to any advice that he might have. So far he has not solicited advice -- at least Jesse Jackson says that Barack Obama has not solicited advice from him so far. But Michelle Obama says they're always watching and willing to learn from the Jackson family. So very interesting, I said to him, you're either one of those people you love or you hate. And so that was his 65th birthday and that's why we did it.

PHILLIPS: And you asked about pulling the race card -- a lot of people, it was interesting how he answered that. LEMON: Well, he says that he doesn't necessarily pull the race card, and that racism is so entrenched in our society, that there's systematic racism that whenever it is warranted, he has to do it.

A lot of people don't like to hear that. And he says, anyone who -- the people who are standing on the sidelines don't have wounds and don't have scars. So he's fighting. And so history will prove whether or not -- how he will be, I guess, remembered in history.

PHILLIPS: Great stuff.

LEMON: Thanks.

PHILLIPS: Well straight ahead, entertainment news with Sibila Vargas of "SHOWBIZ TONIGHT." Sibila, what's on tap?

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: Well, Will Ferrell was spooked last night when he was hearing voices. Oprah Winfrey has a treat for her audience and a singing legend who has a nasty trick. All ahead, when the NEWSROOM continues.

(COMMERCIAL BREAK)

PHILLIPS: The White House responding now to comments from Senator Kerry's -- what he said earlier. Let's go straight to the White House. White House correspondent Elaine Quijano on the phone, actually traveling with the president. Elaine, what are they saying?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT (on phone): Hello to you, Kyra. Well the White House has taken the unusual step of releasing excerpts of the president's remarks. He's set to deliver them later here in Georgia later this afternoon.

But already the White House quick to pounce on those comments by Senator Kerry releasing excerpts that include a direct addressing of what Senator Kerry said. I'll read you just a portion. Quote, "The senator's suggestion that the men and woman of our military are somehow uneducated is insulting and shameful." The statement goes on to say "the men and women who serve in our all-volunteer armed forces are plenty smart and are serving because they are patriots and Senator Kerry owes them an apology."

Now, as we've been hearing the back and forth on these comments, continuing to develop all day long. The president choosing to weigh in at a critical time, of course. We're now in the home stretch of the congressional midterm election campaign.

And here in Georgia, what's interesting to note, it's a very tight race here. What you have is the Republicans former Congressman Matt Collins challenging the incumbent Democrat Jim Marshall, who is a Vietnam war veteran. Somebody who has a very deep support among the military community here in Georgia's 8th congressional district.

So the president, at least judging by these excerpts, choosing to go directly for Senator Kerry, as opposed to tackling Jim Marshall and his record as a Democrat. President Bush, obviously, coming here hoping that his presence will help boost the Republican congressional candidate Matt Collins' chances of being elected here -- Kyra?

PHILLIPS: Elaine Quijano traveling with the president. Just to remind you about John Kerry's comments, he was speaking at the Pasadena City College in California. He said, "You know, education, if you make the most of it, you study hard, you do your homework and you make an effort to me smart, you can do well and if you don't you get stuck in Iraq."

A Kerry aide coming forward. You heard John Kerry's comments that that is not what he meant. His aide also saying that the senator had, quote, unquote, "mangled his prepared statement. That's not what he meant to say. The statement was actually designed to criticize President Bush and his policy in Iraq."

LEMON: All right, let's move on to entertainment news now. It seems "Stranger than Fiction." Every time Will Ferrell gets in front of a movie camera, conveniently that's the name of his new movie. And we were at the premiere. Also Oprah is handing out money. Get in line. And a member of Barbra Streisand's audience wanted to share something with the singer. So why don't we go live to L.A. where all the entertainment news comes from and get all the details from entertainment correspondent Sibila Vargas -- Hey, Sibila.

VARGAS: Hey, Don. Well let's start with a star-studded event. Will Ferrell, Dustin Hoffman and Emma Thompson seemed pretty ordinary for the premiere of their new film "Stranger than Fiction." It's about a man played by Ferrell who hears voices. And apparently they were still following the funny man on the red carpet.

(BEGIN VIDEO CLIP)

WILL FERRELL, ACTOR: I don't really hear -- hold on. Gotcha.

VARGAS: What were they telling you?

FERRELL: No. It was actually a Vietnamese family. Yes, yes. No, they're just friends of mine.

(END VIDEO CLIP)

VARGAS: Author Karen Eiffel (ph) played by Thompson is the voice Harold hears. He becomes a character in her book that she's ready to kill off, so he's not too happy about that. "Stranger than Fiction" opens nationwide on November 10th. It's a little strange, Don, but that's why they call it "Stranger than Fiction."

LEMON: All right, and you know what Sibila, I missed the cars, I missed the favorite things. She's handing out something again to her audience. Is it cash?

VARGAS: Oprah, you know, she's at it again. But this time she gave the gift that keeps on giving. All 310 members of her audience received $1,000 debit card. But here's the catch. They have to pay it forward by spending it on a charitable cause. They can give the bounty away, $1 to a 1,000 people or all of it to one person, but they cannot spend it on themselves or any relatives. Everyone also received a video camera to film their gift-giving adventure. So she's keeping track. Don?

LEMON: Apparently politics -- in other news, politics and music don't mix. What happened to Barbra Streisand? She had a little thing where she told someone to be quiet.

VARGAS: You remember that? Well, a little more than just being quiet. She actually told him earlier this month to -- right, she dropped the F-bomb at a heckler in New York City's Madison Square Garden. Well things got a little messy in Florida. As part of a show between songs, the legend traded barbs with a George W. Bush imitator.

But apparently some weren't too thrilled with her GOP riff. Reportedly, an audience member launched a beverage at the singer while another man who was shouting at her in the crowd was escorted out. But the show must go on. Ms. Streisand took all in stride and shrugged it all off and didn't miss a beat saying some would do better buying her records than coming to her shows, which also can cost about anywhere from $100 to $700, so if you don't like it, don't go to the show.

LEMON: A record might be cheaper, I don't know, but a live Barbara Streisand concert, that would be very nice to see. What else is coming up tonight, Sibila?

VARGAS: Well, tonight, on SHOWBIZ TONIGHT, the showbiz weight watch. A startling look at men with eating disorders. Does Hollywood share the blame for the obsession that men have with their bodies? A special report on TV's most provocative entertainment news show. SHOWBIZ TONIGHT, 11:00 p.m. eastern on CNN HEADLINE PRIME. By the way Don, happy Halloween.

LEMON: And happy Halloween to you or trick-or-treat as they say in my neck of the woods. We'll be watching tonight. Thank you Sibila.

VARGAS: Thank you.

PHILLIPS: Now, a little extra Halloween treat from Philadelphia. Eastern State Penitentiary claims to be America's most historic prison and even though it closed decades ago, it is said that some of the prisoners never left. Is the big house really a haunted house? CNN's Sumi Das goes looking for inmates who may be serving an after-life sentence.

(BEGIN VIDEO TAPE)

SUMI DAS, CNN CORRESPONDENT: From 1829 to 1971, Philadelphia's Eastern State Penitentiary housed roughly 75,000 inmates. Dark and imposing on the outside, its walls rise like a castle, but on the inside, it's a modern ruin. Paint peels, roofs are caved in. Sean Kelly has worked for the prison since it opened for public tours in 1984.

SEAN KELLY, PRISON PROGRAM DIRECTOR: You know, when you walk into the cell and the furniture is sitting on its side and there's sort of this disarray of papers on the floor. And you just can't help but feel there was someone just in that room before you walked in.

DAS: The most infamous inmate -- Chicago mobster Al Capone. This is how his cell was thought to have looked when he did time in 1929. Some say the people imprisoned here still linger.

UNIDENTIFIED FEMALE: I would say there's some actual souls trapped here.

DAS: Gary Johnson volunteers as a locksmith at the penitentiary. The first time he saw a ghost, Johnson says the back of his head turned to ice.

GARY JOHNSON, VOLUNTEER LOCKSMITH: He said, yes we exist. We always have and we're always going to be here at the prison. And then he actually winked at me, then he just faded back into the wall.

DAS: Even Kelly, a self-professed skeptic, admits if there's any place that would be haunted, it would be here.

KELLY: There's that quote from Edgar Allan Poe where he says, I don't believe in ghost, but I've been learning from them all my life.

DAS (on-camera): The locksmith Gary Johnson has grown so accustomed to the ghosts, he's actually named them, Mr. Shadow and Smiley.

Sumi Das, CNN, at Eastern State Penitentiary, Philadelphia.

(END VIDEOTAPE)

PHILLIPS: Surely it's just a coincidence that Eastern State Penitentiary goes by ESP for short. But no coincidence the historic site runs a brisk business at this time of year with special night- time Halloween tours.

LEMON: He names them -- okay. We'll check out some of your Halloween reports before we check out the closing bell. Don't go away.

(COMMERCIAL BREAK)

PHILLIPS: Get ready. Ghosts goblins, superheroes. Name some more.

LEMON: And the little cuties. They're so cute even when they're dressed up. They don't look scary, they just look adorable.

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LEMON: Time now to check in with Wolf Blitzer standing by in THE SITUATION ROOM in New York this week. Hey Wolf.

WOLF BLITZER, CNN ANCHOR: Hi guys, thanks very much. Happening now, the campaign to control Congress. One of the hottest races in the country is neck and neck, a dead heat. We're going to take you live to Missouri where voters could swing the balance of power in Washington. Also, John Kerry's war of words with the White House. We'll find out why he's trading insults with Tony Snow over a comment he says he didn't even mean to make. Also this -- dead men voting? Thousands of people still registered to vote in New York even after they passed away. We're going to have details on that story. And get this -- eyeballs on the podium. The Halloween prank interrupts serious talk about nuclear North Korea. All that coming up from CNN election headquarters right here in THE SITUATION ROOM. Back to you guys.

LEMON: Did you see that? That was weird. Alright, thanks Wolf.

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