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CNN Newsnight Aaron Brown

Tracking the Hurricane; 3 U.S. Soldiers Dead in Iraq

Aired September 18, 2003 - 22:00   ET

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

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


AARON BROWN, CNN ANCHOR: Good evening again, everyone.
This page tonight will be our shortest ever, not because we have nothing much to say. Some would argue that's never stopped us before. It will be short because we have waiting a team of correspondents who have been rained upon, blown about and worked to death. We want to get them out of the weather before we lose them.

So, on to the whip or the whip saw as the case may be, the first stop Virginia Beach, Virginia. All afternoon and evening CNN's Jeanne Meserve has been doing her best simply to keep from becoming airborne, Jeanne a headline from you.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, Isabel is blowing on by but she has left behind some unwelcome presents, flooding, a lot of damage in this state alone, more than a million customers without power. One public safety official in Virginia called the situation unprecedented in recent memory -- Aaron.

BROWN: Jeanne, thank you.

Down the coast a bit now to CNN's Susan Candiotti, Susan, a headline from you in North Carolina.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hi, Aaron. Well, at times it felt like you were floating not driving down Route 12 here on the Outer Banks. We'll show you what it was like when Hurricane Isabel sailed on through.

BROWN: Susan, thank you.

Next on to Iraq and again today a deadly ambush, CNN's Jason Bellini joins us on the videophone from Tikrit, Jason a headline tonight.

JASON BELLINI, CNN CORRESPONDENT: Aaron, three U.S. soldiers dead, two injured. It all happened across the river from us just a few hours ago. Now the details are sketchy at this point but early indications are this was a coordinated, premeditated attack -- Aaron.

BROWN: Jason, thank you.

In California finally, the recall race and a controversy tonight over an enormous campaign contribution from what must seem to many as a surprising source. CNN's Frank Buckley has been reporting the story, Frank a headline. FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Well, Aaron, the donation comes from an American Indian tribe, the amount $1.5 million. Was it illegal? The candidate who took the money says no. Tonight we take you to the reservation to hear from the leaders of the tribe -- Aaron.

BROWN: Frank, thank you, back to you and the rest shortly.

Also coming up on the program tonight, one man's fight against the company that fired him, after 22 years on the job for what the company said he did off the job. He'll take the case to the U.S. Supreme Court if he has to and tonight it looks like he will.

And, when it lands on the front page we'll bring it to you the night before, of course. Morning papers close out the evening as they always do, all that and more in the hour ahead.

We begin tonight with the storm, a shadow of a category five hurricane it used to be but a pretty fair size shadow just the same. When Hurricane Isabel, now Tropical Storm Isabel, came ashore this afternoon most of the homes and buildings in its way were up to the challenge. Many of the trees and power lines and river beds were not and the concern is they won't do any better tonight.

By tomorrow morning, forecasters expect millions of people from Norfolk to New York City to be soaking wet and without power, millions more than the million or so who already are.

(BEGIN VIDEOTAPE)

BROWN (voice-over): By the time Isabel moved over land it had weakened some but was still plenty powerful enough. Trees were upended. There are reports of more than a million people without power tonight across North Carolina and Virginia, even as far north as New Jersey and the flooding has started and will likely continue.

GOV. MARK WARNER (R), VIRGINIA: Judging on the number of people who have gone into shelters about 6,300, and that's just usually a small percent of the actual people evacuated. It shows that people are taking this very seriously.

BROWN: While the property damage was wide ranging, it appears so far to have been fairly minor. Authorities in coastal towns still have to remind those who did decide to stay to be extremely careful.

OFFICER SCOTT HUMPHREY, VIRGINIA BEACH, VIRGINIA: Signs are starting to fall down. We've got trees coming down now already so people need to really think twice about coming outdoors.

BROWN: Because of Isabel's sheer size, rain and wind spread over 600 miles up and down the eastern seaboard. Hundreds of flights were canceled today which made for crowds at the train station in Washington grow by the hour.

DON STESSEL, AMTRAK SPOKESMAN: In thunderstorms and in blizzards what we see is when the airports shut down passengers tend to migrate over to Amtrak and we are able to continue operations in the northeast on a limited basis.

BROWN: In the capital, not only did the subway service close, pretty much the whole town shut down as well and even well known politicians had to find a different way home.

SEN. GEORGE MITCHELL (D), MAINE (RET.): I commute regularly between New York and Washington and with the storm coming I was scheduled to leave later today but I decided to move it up as was everyone else leaving town.

BROWN: Even though the governors of five states declared emergencies today, for some reason baseball games went on, including this one between the Yankees and the Orioles at Camden Yards in Baltimore. The game was played in a steady rain.

ANNOUNCER: And now the tarp is going to be put on the field.

BROWN: For five innings, the score tied when it was canceled.

(END VIDEOTAPE)

BROWN: Well, in between the sheets of rain the governor of Virginia put it quite simply. This isn't our first rodeo, he said, but it is one of the messiest in memories; once again, CNN's Jeanne Meserve from Virginia Beach.

(BEGIN VIDEOTAPE)

MESERVE (voice-over): The latest extreme sport dancing with hurricanes. All day daredevils frolicked in ferocious waves, the super-charged surf so powerful it yanked down 50 feet of a fishing pier.

The water obliterated the beach usually about 50 yards wide and swept right over the boardwalk and onto seaside properties. The wind wheedled its way under roofs tearing them off, sending them flying and then there was the rain. The low-lying communities of Hampton Roads got exactly what they expected, extensive flooding.

UNIDENTIFIED MALE: We're moving from our old house. Tonight was going to be our first night staying in our new house and it looks like Mother Nature's kind of taken care of that. To get to it we're going to have to swim a little bit.

MESERVE: Wind took down trees. Trees and wind took down power lines leaving hundreds of thousands of homes and businesses without electricity. Even some shelters were left in the dark.

The weather was so rough Virginia Beach emergency personnel were taken off the street for a time. Even life and death emergencies were being evaluated on a case-by-case basis. Some good Samaritans did what they could pulling down trees from roadways.

UNIDENTIFIED MALE: There's nothing else to do. The power is out, you know, can't do anything else. The waves are too big to surf. MESERVE: But not too big to watch though we found one couple sitting in their car by the edge of the beach for a totally novel reason.

UNIDENTIFIED MALE: We were told that low pressure will help induce labor so we're bringing her up here hoping that she'll give birth soon.

(END VIDEOTAPE)

MESERVE: Across the state of Virginia, the winds are still blowing. The rain is still coming down and because it's dark officials really can't get a handle on how much damage they're dealing with but they have told me a few things. In this area bridges and tunnels which are a vital part of the transportation network shut down.

One tunnel here in the Hampton Roads area is flooded. Up near Richmond there are two counties whose water systems are not working. The situation is so bad state troopers have been pulled off the road. One state official tells me trees are coming down everywhere and we'll see what the morning holds -- Aaron, back to you.

BROWN: I'll make it blessedly short. Is anyone out tonight or are there curfews in effect? What's the state of that?

MESERVE: Here in Virginia Beach there is a curfew. It went into effect just a few minutes ago, will be in effect until 7:00 a.m. tomorrow morning. They want people to stay in their homes and stay off the streets while this calms down -- Aaron.

BROWN: Jeanne, go join them. Thank you. Your work is done, Jeanne Meserve in Virginia Beach tonight.

BROWN: President Bush today declared parts of North Carolina major disaster areas freeing up federal money for home repairs and temporary housing and the rest. No one quite knows how much this is going to cost when all is said and done, millions certainly, billions perhaps, more than a little no doubt especially along the islands on the Outer Banks where we hear once again from CNN's Susan Candiotti.

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): Surf pounding over sand dunes and sea walls as Isabel makes landfall south of Kill Devil Hills.

UNIDENTIFIED MALE: A lot of debris here.

CANDIOTTI: All right.

CHIEF RAY DAVIS, KILL DEVIL HILLS POLICE DEPARTMENT: (Unintelligible) have actually washed out into the road.

CANDIOTTI: Police chief Ray Davis out in the middle of it.

DAVIS: Areas that have a low dune lines are really going to take a beating I'm afraid.

CANDIOTTI (on camera): We're getting certainly those outer bands of Hurricane Isabel the wash coming over the sea wall and down the street washing over here to Route 12. This street now completely flooded.

(voice-over): Route 12 along the oceanfront under more than a foot of water. Cars couldn't make it. Four-wheel drives had better luck inching along through high water trying to avoid debris. At this motel (AUDIO GAP) pieces of the building and insulation with it. The pool behind this motel broke away and the building itself was flooding.

DAVIS: It's really taking a beating right now. We actually have sea water washing through the back of the hotel (unintelligible).

CANDIOTTI: Through it all some couldn't resist seeing what conditions were like at their peril.

(on camera): Why are you out here I mean really literally in the middle of a hurricane?

UNIDENTIFIED MALE: Have to check it out. After you live here for a while you like to get out and see what it's looking like. That's part of the reason you stay.

CANDIOTTI: And what does it look like?

UNIDENTIFIED MALE: It's pretty bad.

CANDIOTTI (voice-over): Also pretty bad at the Avalon fishing pier built back in the 1960s, the storm surge pounding into the pilings almost as if it was trying to swallow the pier into the sea. Despite an evacuation order on the Outer Banks about half its residents rode out the storm refusing to leave.

UNIDENTIFIED FEMALE: It's more dangerous sometimes to leave (unintelligible).

CANDIOTTI: This is not what police ever want to see in the middle of a hurricane but this young man was determined to get from Point A to Point B and Isabel wasn't going to stop him.

(END VIDEOTAPE)

CANDIOTTI: Most of the roads are passable now we are told but we are still experiencing tropical storm force winds. That is Route 12 behind me and (unintelligible) are trying to keep people off it. There is a curfew in effect until noontime tomorrow. Of course one of the big problems right now electricity is out for at least 25,000 customers and there's no telling how long it will take to restore it.

And, as you just saw, if you pan off me just a bit you can see it is just pitch dark out there. They are talking about major structural damage to a lot of buildings here but, of course, again they won't know more until the morning when they get these damage assessment teams out there -- Aaron.

BROWN: Susan, out of the rain for you too tonight, thank you, Susan Candiotti in North Carolina tonight.

Now the facts and the figures and perhaps, most importantly, the forecast, where things go from here, who is still at risk, we go to Rob Marciano at CNN Center in Atlanta, welcome.

ROB MARCIANO, CNN METEOROLOGIST: Thank you, nice to be here.

I hope it was a better situation but luckily this storm wasn't as bad as it could have been, Aaron, Isabel now downgraded to tropical storm status. You can kind of see the back half of this thing beginning to fall apart, although winds are still gusty and will continue to be tonight and it will continue to rain heavily overnight tonight in through the early part of tomorrow morning.

Winds gusting over 90 miles an hour, in Ocracoke 100 mile-an-hour wind gusts, so North Carolina getting hit the hardest, also the coastline of Virginia getting hit the hardest. The other flipside of this system, of course, has been the rainfall and we continue to see that as we go on through tonight and tomorrow.

Six to ten inches across the Carolinas that will lessen as we head towards morning and then the central part of Richmond, Virginia and the surrounding areas have seen Doppler estimates of over six inches and the rain is still falling there. That will taper off a little bit later on.

The right side of this system, as you may know, the most powerful part. We had a storm tornado threat. That will lessen a little bit tonight. Flooding will continue to be an issue because of a lot of that tropical moisture with this and some of the low-lying areas and some of the rivers during high tide could back up with this system even overnight tonight in through the early part of tomorrow morning.

Then, as we head through tomorrow, we do expect things to continue to weaken. That's what these things do as they head over land. It will head up into the Great Lakes and eventually into Canada.

Everybody across the northeast, although not seeing the strong winds as they did across the Carolinas today they'll feel that tropical moisture and that tropical air, Aaron, so everybody, millions of people getting a taste of this soon. Like I said, it could have been a lot worse so we're lucky in some regards.

BROWN: We'll take it that way. Rob thank you, nice job tonight.

What it looks like in the morning, tune in to "AMERICAN MORNING." Bill and Soledad will have all of that as first light comes up. It's going to be quite a scene in North Carolina and up into Virginia as well.

We received a note from a viewer today, not an especially nice note it's fair to say. Your people are idiots, he wrote, standing out in that hurricane just waiting to be hit by a tree. So much for Reporter Appreciation Day I guess.

Today was a day reporters earned their money, not just finding the story, in most cases the story found them, but just trying to tell it which isn't easy to do with 90 mile-an-hour winds, I assure you.

So, our reporters and theirs, local and national, all did their work today and here is how it looked.

(BEGIN VIDEOTAPE)

JEFF FLOCK, CNN CORRESPONDENT: They say this is really where the worst of it is going to come based on the current track and so we think we're in a good place. (Unintelligible) 30 or 40 yards will give you an idea of what happens (unintelligible). Now it will come and start rolling back.

KATHLEEN KOCH, CNN CORRESPONDENT: Can you hear me? Yes, I'm hanging onto a planter. There's a heavy tree planter right here and that's the only reason I'm not blowing away. I don't know if you can see this thing but it probably weighs about 300 pounds.

FLOCK: You should see the winds coming this way. The ocean is out that way, Rob (ph). Oops, excuse me. I know you're going to get wet. I'm going to try to keep it up as best I can. What was the worst you got on the other side as you went to check?

UNIDENTIFIED MALE: We're getting close to 60 miles an hour now with this heavy rain coming in.

FLOCK: I'm sorry.

UNIDENTIFIED MALE: It's going to get even worse.

KRIS OSBORN, CNN CORRESPONDENT: This hurricane is generating a lot of power and, as you can hear, it's generating a lot of interest. What's up fellows?

UNIDENTIFIED MALE: I'm going to get my football before it rolls into the ocean.

KOCH: Things have gotten worse since you last saw me hugging that planter out front. The area where I was standing just then is now covered with the debris of the roof next door.

OSBORN: We're still shooting this from our hotel room. I'm standing on one of the tall dunes that hopefully will protect where we are from the storm surge as it's said to come in a little bit later on today.

FLOCK: I'm telling you it is not the rain that is the issue right now. It is the (unintelligible) from the strong winds literally pelting you into the head feeling like needles.

UNIDENTIFIED MALE: As you can see the seas are chopping up pretty good. Right now a storm surge (unintelligible).

FLOCK: I think the precipitation for a portion of our show is definitely over here so just a lot of wind left.

(END VIDEOTAPE)

BROWN: My mother told me to get inside work. Now I understand why.

Ahead on NEWSNIGHT, a tough day in Iraq, more Americans hurt in the country and concerns the situation there is getting worse not better.

And later in Segment 7 tonight can you be fired for just attending a meeting? Michael Edmondson (ph) was, the story tonight of his fight to get his job back, a break first.

From CNN, this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: In Iraq, a day that began ugly and ended worse. There were a number of incidents including sabotage and a pair of ambushes. One of them, near Tikrit, took the lives of three American soldiers, soldiers with the 4th Infantry Division.

CNN's Jason Bellini was nearby when the ambush happened and joins us once again tonight on the videophone. Jason, what can you tell us?

BELLINI (via videophone): Well, Aaron, it's first light here in Tikrit after a very rough night here. Let me tell you where we are first of all. We're at one of Saddam's palaces on the Tigris River.

Now right across the river from us is where this ambush attack took place late last night and we can also tell you that during that attack there were helicopters flying overhead. We heard RPG rounds. We heard small arms fire, a very large fight that went on.

Now the early details that we have, Aaron, are that there was a response by U.S. soldiers to RPG attack and there were several attacks going on simultaneously. When they responded and they were on the hunt that's when they were ambushed and that's when three U.S. soldiers were killed and two injured -- Aaron.

BROWN: Well, that doesn't sound like some spontaneous event. That sounds almost like a setup.

BELLINI: Early indications are that may be what it is. Now we're still waiting for further details on how all of this went down. The Army is only giving us just the very basics at this point. They were reluctantly telling us about these casualties last night.

There were other events yesterday bad news for the same people we're embedded with here. Those involved oil fires that were burning all day yesterday. On the ground at these oil fires we were told that it was likely sabotage. We spoke with one of the chief engineers for the Northern Iraq Oil Company. He said he couldn't imagine it being anything but that. The coalition and the people we are speaking with here told us to reserve judgment on that. They won't know until the fires are put out and they're not out yet -- Aaron.

BROWN: Jason, thank you, full day there, Jason Bellini in Tikrit.

More now on the disturbing backdrop to the attacks like the ones today, the sight of cheering Iraqis, there is a growing concern that in the Sunni Triangle, at least, American forces have managed to put themselves so much at odds with local sensibilities and sensitivities that ordinary Iraqis have now turned against them.

No one here is suggesting that it's true of most of the people in the country. We don't know that but we do know that it's not as simple as just a few criminals, Ba'athists, and outside agitators.

Here's CNN's Nic Robertson.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): On fire and taking fire, a rare glimpse of a now common event, a U.S. convoy under attack in the so-called Sunni Triangle.

Hours later after a rescue, reinforcements pull out of the town of Khaldiyah. Immediately after with pictures of Saddam Hussein carried aloft, young men rushed forward to claim victory although not in the name of Saddam Hussein.

"These attacks are not from outside the country and are not from Saddam's army" local resident Shakir (ph) says. "They are by honorable people from around this area."

From firing weapons to showing charred remains of U.S. trucks, everyone finding their own way to celebrate.

(on camera): Over the last few weeks, incident after incident appear to have fueled an already volatile situation making it increasingly tense. Just a few days ago the police chief in this town was murdered.

(voice-over): Those in the crowd claim several U.S. soldiers died in this firefight but the coalition says only two soldiers were wounded. This attack on the convoy apparently sophisticated.

Fithal Hison's (ph) truck was damaged in the firefight. He says there were several explosions.

"After 15 minutes" he says "I tried to move. Then the soldiers were hit again and that's when they started to shoot at everybody."

From high on a bank providing a vantage point over the site of the ambush, more jubilation, the townspeople, the rationale of the attack simple.

"When the occupying force came they promised a lot" says Sheikh Ali (ph) "but it was all lies."

Such is the mood in the heart of the Sunni Triangle.

Nic Robertson CNN, Khaldiyah, Iraq.

(END VIDEOTAPE)

BROWN: The Iraq story today.

On to the Israeli-Palestinian question, tonight Yasser Arafat and his chosen prime minister today trying to put together a new government which may include a cabinet member from Hamas. Mr. Arafat reportedly is in ceasefire talks with militant groups. Israel for its part is having none of it. Israeli troops today moved into Gaza killing a Hamas leader and prompting new calls for revenge and so it goes in the region.

And, as you might expect with all that on the table when Jordan's King Abdullah met with President Bush today expectations were low. Here's CNN's Dana Bash.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We'll have a nice lunch and then we'll batten down the hatches.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): Hurricane Isabel forced the president and the king to start Camp David talks early, a stark contrast to a sunny day just three months ago in Jordan, a new Palestinian partner, a new hope for peace. Mr. Bush admitted the process is now stalled and bluntly assigned blame.

BUSH: Prime Minister Abbas was undermined at all turns by the old order. That was -- that meant Mr. Arafat.

BASH: Using the toughest words for Arafat since Mahmoud Abbas resigned earlier this month.

BUSH: Mr. Arafat has failed as a leader.

BASH: Warning a Palestinian state can't be achieved unless a new prime minister cracks down on terrorism.

BUSH: Hopefully at some point in time a leadership of the Palestinian Authority will emerge which will then commit itself 100 percent to fighting off terror.

BASH: The president said all sides, including Israel, must live up to their commitments but Bush officials have been disappointed Arab leaders have not done enough to sideline Arafat and stop terrorism.

Notably absent criticism of Arafat from the king and the president made no mention of Jordan's refusal to free some Hamas assets, a U.S. concern he was expected to broach in private.

Terrorism has hit Jordan in Iraq. Its embassy there was bombed this summer. Mr. Bush said he hopes King Abdullah can convince European leaders to help secure that country. And, despite some reluctance from around the globe he said talks with allies for more troops and money are making progress.

BUSH: We'll continue to make the case that reconstruction aid is necessary.

BASH (on camera): But the president said a new U.N. resolution to get more international support in Iraq is not likely to pass before his speech there next Tuesday as the White House had hoped so Mr. Bush said he'll use the New York visit for some high level negotiations.

Dana Bash, CNN, the White House.

(END VIDEOTAPE)

BROWN: Coming up on NEWSNIGHT tonight, the casino effect, how California Indian tribes and their casinos have become an issue in the gubernatorial recall.

From New York, this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Well, it may turn out to be the debate that wasn't. Four of the major candidates in the California recall say they will likely boycott the only debate Arnold Schwarzenegger has agreed to attend if the format isn't changed. The questions for the debate were released yesterday.

A format the Schwarzenegger campaign defended on this program a couple of weeks back one day before asking that it be changed. It hasn't, hence the boycott, though Mr. Schwarzenegger indicates he will show up anyway.

If seeing the questions before the debate is a bit unusual accusations of improper fund-raising and politics are not. Mr. Schwarzenegger faced those when he said he wouldn't take special interest money and then did.

And then now his principal Democratic rival, Lieutenant Governor Cruz Bustamante, is dealing with those questions too, a lot of them, in this case a lot of money from a source that used to have very little money at all.

Here's CNN's Frank Buckley.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT (voice-over): Just beyond the quiet of this pasture, you can see and hear 24 hours a day what helped to transform this Indian reservation from what was a pocket of poverty just a few years ago to a source of millions of dollars in campaign contributions today.

The Viejas Casino, operated by the Viejas Band of Kumeyaay Indians. It is among the more than 50 casinos operated by Indian tribes in California, that, last year, generated more than $3.5 billion in revenue.

ANTHONY PICO, CHAIRMAN, VIEJAS COUNCIL: Indian gaming is a means. To us, it's just a means to an end.

BUCKLEY: Anthony Pico points to the improvements on the reservation and the investments the tribe has been able to make, like the outlet shopping center it owns, as an example of how gaming money has helped the Viejas Band.

But it's the money the tribe gave away, $1.5 million to California's lieutenant governor, Cruz Bustamante, that brought Bustamante a rush of negative publicity.

BOBBY BARRETT, VICE CHAIRMAN, VIEJAS BAND: He's been here and he's heard our stories. And he's -- we taught him or values.

BUCKLEY (on camera): The huge donation also highlighted a trend in California politics. Indian tribes have become the largest contributors to California campaigns. Since 1988, when Indian gaming was approved here, they've given more than $120 million. Politicians who may have once ignored their plight now take their calls and their money.

(voice-over): Viejas leaders say sovereignty is their primary issue. But watchdogs are worried that voters aren't getting accurate information about Indian gaming money because some tribes cite sovereignty in saying they can't be forced to report their campaign contributions.

JOHN ULIN, COMMON CAUSE: You may think that's a good idea, you may think that's a bad idea for candidates to be allied with Indian gaming interests, but you ought to know who they're allied with.

BUCKLEY: Most tribes do conform to contribution laws. Viejas leaders say they do. And they say it is their right, as Indian Americans, to contribute to campaigns, just like anyone else.

PICO: I am a citizen of the Viejas Band of Kumeyaay. I am a citizen of the United States of America. I'm also a citizen of the state of California. I have an obligation and I have a right to be part of the mix.

(END VIDEOTAPE)

BUCKLEY: Now, today, a judge heard arguments in a lawsuit filed against Mr. Bustamante over the money he accepted from the Viejas Tribe and on other contributions. Bustamante accepted $1.75 million from the Viejas Tribe into an old campaign account from 2002 that wasn't subject to new limits on contributions.

A state senator says in his lawsuit that that was illegal. Bustamante says it wasn't. Still, Aaron, after a great deal of criticism, Bustamante did shift that money out of his campaign and into a different account. This opposes another initiative on the ballot, Proposition 54. Interestingly, the star of the campaign commercials against Proposition 54, Cruz Bustamante -- Aaron. BROWN: Funny how that works.

Just because I'm somewhat cynical, generally, when people give $1.5 million, they want something. What is it the state can do for the tribes if they get the right ear and the right legislation?

BUCKLEY: When you talk to the tribal leaders, they say sovereignty is the most important issues, that is, making sure that the Indian governments are respected as governments.

But the reality is that the governor has a great deal of impact on Indian gaming. He negotiates the gaming compacts. And that regulates how many slot machines, for example, that each individual casino can have, the amount of revenue sharing that takes place. These are the kind of issues that the governor, in a negotiation with these tribes, enters into this compact.

So the governor has a great deal of impact on each one of these tribes.

BROWN: Frank, thank you very much -- Frank Buckley in Los Angeles tonight.

Quickly, a few other stories from around the country, starting in Washington. The Bush administration today said it plans to spend $100 million to develop a missile defense system for commercial airliners. The money would go to research on adapting existing military systems, like the one used to keep Air Force One says from shoulder-fired anti- aircraft missiles.

Western Pennsylvania next, where it was decided that no charges will be filed in connection with last year's mining accident. The grand jury found insufficient evidence of criminal wrongdoing to hand up any indictments. The accident surely, you'll recall, trapped nine men deep underground for three days, seemed longer. It's been blamed on poor maps of the area.

And our parent company has an old name. AOL Time Warner's board went into the meeting today. And, when all was said and down, Time Warner's board came out. AOL will be dropped from the corporate name.

Still to come on NEWSNIGHT tonight: Are the foxes guarding the henhouse? Why the downfall of the head of the New York Stock Exchange exposes what's wrong with Wall Street, if it does.

A break first. Around the world, this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Well, this may be the first day that former New York Stock Exchange head Dick Grasso is forced to get by on a $140 million retirement fund, but the temple of capitalism has a lot of cleaning up to do, it seems, in the wake of the scandal that forced him out.

Serious questions are being raised about whether the companies the exchange is supposed to regulate on the exchange should have any say in who runs it and how much he is paid. One of those who thinks some housecleaning is in store is our guest tonight, Shawn Tully, who is the senior writer for "Fortune" magazine.

Nice to see you.

What did Mr. Grasso do wrong?

SHAWN TULLY, "FORTUNE": It's actually a little complicated, because he took all of this money that was essentially given to him by the board and now he's being fired by the same directors who gave him this enormous pay package.

But he really exercised, I think, poor judgment in taking the money. And that sounds incredible, since most people could never turn that kind of money. But it's shareholders' money -- or his seat- holders' money, in this case. And, essentially, he just took too much of it. Given the profits of the company and the size of the company, it was completely inappropriate to pay him that kind of money.

BROWN: Just quickly on this, because I really want to move off this a little bit. But there is no suggestion that he strong-armed them into giving him this money, that he had the goods on somebody? They just offered him a lot of dough and he said yes.

TULLY: Right.

And the same people he's regulating are the people who are on his board and gave him the money, which is where the problem is.

BROWN: Right.

TULLY: So they want to curry favor with him, obviously. They're big customers of his. They're regulated by him. So it doesn't look good.

BROWN: OK.

Now I think we're into the nut here, if you will. The problem, as a lot of people see it, is, the people who would have something to worry about if the director of the stock exchange were upset with them controlled how much he was being paid. And there is, whether there was a reality or not, a perception that that's bad.

TULLY: That's correct.

BROWN: Yes.

Now, this is not the same as the Enron bookkeeping sort of thing. They're not regulating the companies in that respect, are they?

TULLY: Well, the New York Stock Exchange, Aaron, sets the rules for companies. They determine things like how many independent directors a company has to have. They set rules on proxy battles, on issuance of stock options. And if you want to be listed on the New York Stock Exchange, you have to follow the rules of the New York Stock Exchange. The SEC has essentially outsourced all of that regulation and oversight to the New York Stock Exchange. So, all of the companies that are represented by people on the board, of which there are a dozen or so, have to adhere to the rules of the exchange and are regulated by the exchange. So you should not have the people who are being regulated setting the pay of the regulator, or the policeman.

BROWN: And there are obviously -- in the view of some companies, you don't have to be listed on the New York Stock Exchange. You can have your stock traded on other exchanges. So there's some benefit to big companies, at least, to being on the New York Stock Exchange?

TULLY: Yes. It's an enormous exchange. The liquidity is tremendous. And the prestige is tremendous, also, of being there. The Nasdaq is a competitor, for example.

BROWN: Is it an anachronism?

TULLY: Frankly, it is.

BROWN: Why?

TULLY: Because there is no reason why human beings should be in the middle of every trade.

And what the New York Stock Exchange essentially says is that a specialist or a -- quote -- "market-maker" is going to be taking an order and filling an order. And it's a slow system. There are special rules that enable those specialists or market-makers to take about 10 or 15 seconds to clear a trade, whereas the new computers -- not even that new anymore -- can clear a trade in fraction of a second.

BROWN: Why hasn't it changed?

TULLY: It hasn't changed because there is a special rule that says that the specialists can always match the best bid and has a lot of seconds to do that. It's called the trade-through rule. It's been around for a long time. It should be eliminated, not to discriminate against the specialists, but just to put them on an equal footing with the computers and see who wins. And that's going to benefit computers and reduce the cost of trading, which is what we all want.

BROWN: All right, and that leads to the sort of final area here, which is -- let me just do this simply -- why should I care? This may be just a bunch of rich people fighting about something, but does it affect me? Does it affect the people watching the program?

TULLY: Well, the pay that Grasso makes and the expenses of the exchange are indirectly paid by you and me, because our commissions are higher because all the trades go through the exchange.

So the brokerage commissions you're paying reflect the expenses of the trading patterns on the stock exchange, because the company you trade through, whether it's Merrill or Smith Barney, or whoever it may be, has to pay those expenses. And they're billing them to you. So the lower those expenses are and the more efficient trading is, the lower our commissions are going to be.

BROWN: Just very briefly, do you expect that this is the first of a number of changes we're going to see downtown?

TULLY: I do. I do.

We have a battle between old Wall Street and new Wall Street. And old Wall Street is symbolized by the New York Stock Exchange. I think it's going to go public. They're going to split off the regulatory function, so it will be a public company. And we'll see if the SEC really has the guts to put it on the same footing as the ECNs, or the computerized trading systems. I doubt it, but I'm hopeful.

BROWN: Thank you for coming in. You're a guy with a lot of enthusiasm for what you do. Thank you. Nice to meet you.

TULLY: You, too, Aaron.

BROWN: Thank you very much.

Quickly, a number of items from around the world before we send it off to break. About 40 -- 450 -- there we go, Aaron -- miles southeast of Moscow, a Russian air force bomber went down today. A Tu-160, resembling an American B-1 bomber, crashed during a test flight. Four crew members died.

Big controversy at the Bolshoi ballet. What is this, Russia night? A ballerina fired because the company say she's too heavy. She weighs all of 109 pounds, or so she claims. Some disagree. In any case, the ballet claims she was simply too much for her partners to carry. She says it's nonsense, threatening to sue. Imagine that in the old Soviet Union.

And here is one for New Yorkers. Mayor Bloomberg, who recently declared a war on the city's rodent population, should consider himself lucky he never had to face one of these, a three-quarter-ton rat. This, by the way, is a drawing. In a picture published in the journal "Science," researchers say they have uncovered the bones of one in Venezuela. It lived six million to eight million years ago, to which we say, thank goodness. Yikes.

NEWSNIGHT continues.

Taking company loyalty a step too far? The story of an Idaho man who was fired because his company didn't like the meeting he attended.

A break first. This is NEWSNIGHT on CNN.

(COMMERCIAL BREAK)

BROWN: The First Amendment to the Constitution, of course, guarantees the right of free speech and free assembly. And while free speech, in the famous language of Justice Oliver Wendell Holmes, does not mean you can yell "Fire" in a crowded theater, over the years, courts have been very sympathetic to free speech lawsuits, which brings us to a very small town in a most beautiful state, where one man says all he did was show up at a public meeting his employer, his longtime employer, did not like.

He says he didn't even say a single word, yet the consequences were dire.

(BEGIN VIDEOTAPE)

BROWN (voice-over): Michael Edmondson has spent much of his summer here, in Idaho's Bitterroot Mountains. He's an emergency medical technician, listening to the squawk of his radio, on alert to assist any injured firefighters. But he would much rather be here, at the sawmill where he worked for 22 years.

MICHAEL EDMONDSON, FORMER SAWMILL WORKER: I was the guy that was down there at 3:00 in the morning if there was a broken pipe. I was the person who missed all the family time because I lived and breathed my job.

BROWN: Three and a half years ago, Mike Edmondson's bosses at Bennett Forest Industries fired him. They fired him for what they said were -- quote -- "public criticisms and efforts to undermine the company." It was news to him.

EDMONDSON: I had never talked to any fellow workers, as far as an opinion one way or the other as far as the process.

BROWN: In this case, that process meant a series of meetings in the small town of Elk City, Idaho, home to the sawmill. Those meetings were supposed to come up with a plan to allow additional timber to be cut from federally owned land, which is about all there is in this part of the state.

Mike Edmondson says he went to a single meeting of a citizens group about those decisions and, while there, did not utter a single word.

EDMONDSON: When I was terminated, it was like somebody had, I guess, shot me. I felt that I gave 200 percent as far as to make my employer successful. I was shocked.

BROWN: But under Idaho law, Bennett Forest Industries had and still has the right to fire anyone it chooses any time it chooses. Idaho is a so-called at-will state, meaning private employers can fire whomever they wish, as long as the firing doesn't violate what's termed public policy.

Mike Edmondson's firing, his attorneys say, violated public policy.

STARR KELSO, ATTORNEY FOR EDMONDSON: Look at it in the light that you would go to church on Sunday and be fired or church on Saturday and be fired. Look at it going to the Fourth of July parade on a day off and be fired.

BROWN: Edmondson's case wound up in the Idaho Supreme Court, which ruled 4-1 against him, a ruling so unexpected that every major newspaper in the state editorialized against it, "The Idaho Statesman" saying, "The Supreme Court is going down a frightful path with this ruling."

KELSO: You have small towns and communities with one employer. To allow that employer to dictate your political beliefs, your -- whether you attend a meeting or a basketball game is unconscionable.

BROWN: After first agreeing to an interview, Bennett Forest Industries would not provide anyone to talk about all of this on camera. In an e-mail to a newspaper, the company president, John Bennett, said Edmondson was "actively promoting the adoption of a forest management policy that would deprive his employers of raw material that was critical to its survival."

Mike Edmondson says he's determined to take his case all the way to the U.S. Supreme Court to fight for what he believes in.

EDMONDSON: I believed in my company. I felt that we had a good company. And I say "my company" because I believed I had a piece in it, in the context that I had given a lot of me to make my company successful.

(END VIDEOTAPE)

BROWN: From Idaho tonight.

Still ahead: morning papers. Will take a break first.

(COMMERCIAL BREAK)

(ROOSTER CROWING)

BROWN: Time to do morning papers from around the country, around the country. Tonight -- man, I got the nastiest letter about morning papers today. Bummed me out.

"New York Times" -- just don't watch if you don't like it, OK? "New York Times" -- no, watch. "Hurricane Hits U.S., Lashing North Carolina," very cool picture. I don't know how well you can see it. Without my glasses, I can't see it at all. The other story on the front page, I like a lot. "Late-Arriving Candidate Got Push From Clintons." This would be General Clark and his relationship with the former president and Senator Clinton.

What made that particularly interesting to me was all the chatter on talk radio today, conservative talk radio, as if there's any other kind, was that Mrs. Clinton, Senator Clinton, was coming back into the race. And that finds its way on the front page of "The Washington Times," coincidentally. "Remarks by Clinton Reignite Hillary Buzz." And, in this case, it was remarks by former President Clinton. Anyway, and they put -- obviously, put the hurricane on the front page, too. "Isabel Clobbers Region," a pretty straightforward headline there in Washington, "The Washington Times."

"The Boston Herald." "Three Deadly Errors. Children's Hospital Procedures Blasted," one of those stories that is guaranteed to break your heart. Maybe the most intriguing story up top, though. "Ted K.:" -- that would be Ted Kennedy, Senator Kennedy -- "Bush's War a Fraud," a very hard-hitting speech by Senator Kennedy that will end up being thrashed around by both parties a fair amount, I suspect, in the days and weeks ahead.

"The Press of Atlantic City," where the hurricane is of some concern. "Isabel Hammers North Carolina, Sends Wind, Rain to New Jersey Coast." But, hey, don't worry, because the Miss America parade is still on. So life will be back to normal by them.

This is upstate New York. I just like the headline here. "The Times Herald-Record." "Wet and Wild: Isabel Rips Coast." This is a nice picture, too, isn't it?

How we doing on time? Forty-two. Not bad.

"The Richmond Times-Dispatch," Richmond, Virginia, "1.4 Million in the Dark." They're probably not watching this. I'm putting up their paper and they're not able to see it. "After Isabel Hits, Large Area Without Water." What else? And then, three, four stories down at the bottom, including this headline. "Many Trees Falling Like Dominoes." OK, that's the cliche story.

I bet we're almost out of time, aren't we? Do "The Chicago Sun- Times." "We Done Hit the Lottery. At least, that's what cops thought when they allegedly ripped off drug dealers. Too bad the money was part of an FBI sting." The weather tomorrow, "kind of chilly, dog" in Chicago.

Good to see you tonight. We'll see you again tomorrow at 10:00 Eastern time.

Until then, good night for all of us at NEWSNIGHT.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired September 18, 2003 - 22:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
AARON BROWN, CNN ANCHOR: Good evening again, everyone.
This page tonight will be our shortest ever, not because we have nothing much to say. Some would argue that's never stopped us before. It will be short because we have waiting a team of correspondents who have been rained upon, blown about and worked to death. We want to get them out of the weather before we lose them.

So, on to the whip or the whip saw as the case may be, the first stop Virginia Beach, Virginia. All afternoon and evening CNN's Jeanne Meserve has been doing her best simply to keep from becoming airborne, Jeanne a headline from you.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, Isabel is blowing on by but she has left behind some unwelcome presents, flooding, a lot of damage in this state alone, more than a million customers without power. One public safety official in Virginia called the situation unprecedented in recent memory -- Aaron.

BROWN: Jeanne, thank you.

Down the coast a bit now to CNN's Susan Candiotti, Susan, a headline from you in North Carolina.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hi, Aaron. Well, at times it felt like you were floating not driving down Route 12 here on the Outer Banks. We'll show you what it was like when Hurricane Isabel sailed on through.

BROWN: Susan, thank you.

Next on to Iraq and again today a deadly ambush, CNN's Jason Bellini joins us on the videophone from Tikrit, Jason a headline tonight.

JASON BELLINI, CNN CORRESPONDENT: Aaron, three U.S. soldiers dead, two injured. It all happened across the river from us just a few hours ago. Now the details are sketchy at this point but early indications are this was a coordinated, premeditated attack -- Aaron.

BROWN: Jason, thank you.

In California finally, the recall race and a controversy tonight over an enormous campaign contribution from what must seem to many as a surprising source. CNN's Frank Buckley has been reporting the story, Frank a headline. FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Well, Aaron, the donation comes from an American Indian tribe, the amount $1.5 million. Was it illegal? The candidate who took the money says no. Tonight we take you to the reservation to hear from the leaders of the tribe -- Aaron.

BROWN: Frank, thank you, back to you and the rest shortly.

Also coming up on the program tonight, one man's fight against the company that fired him, after 22 years on the job for what the company said he did off the job. He'll take the case to the U.S. Supreme Court if he has to and tonight it looks like he will.

And, when it lands on the front page we'll bring it to you the night before, of course. Morning papers close out the evening as they always do, all that and more in the hour ahead.

We begin tonight with the storm, a shadow of a category five hurricane it used to be but a pretty fair size shadow just the same. When Hurricane Isabel, now Tropical Storm Isabel, came ashore this afternoon most of the homes and buildings in its way were up to the challenge. Many of the trees and power lines and river beds were not and the concern is they won't do any better tonight.

By tomorrow morning, forecasters expect millions of people from Norfolk to New York City to be soaking wet and without power, millions more than the million or so who already are.

(BEGIN VIDEOTAPE)

BROWN (voice-over): By the time Isabel moved over land it had weakened some but was still plenty powerful enough. Trees were upended. There are reports of more than a million people without power tonight across North Carolina and Virginia, even as far north as New Jersey and the flooding has started and will likely continue.

GOV. MARK WARNER (R), VIRGINIA: Judging on the number of people who have gone into shelters about 6,300, and that's just usually a small percent of the actual people evacuated. It shows that people are taking this very seriously.

BROWN: While the property damage was wide ranging, it appears so far to have been fairly minor. Authorities in coastal towns still have to remind those who did decide to stay to be extremely careful.

OFFICER SCOTT HUMPHREY, VIRGINIA BEACH, VIRGINIA: Signs are starting to fall down. We've got trees coming down now already so people need to really think twice about coming outdoors.

BROWN: Because of Isabel's sheer size, rain and wind spread over 600 miles up and down the eastern seaboard. Hundreds of flights were canceled today which made for crowds at the train station in Washington grow by the hour.

DON STESSEL, AMTRAK SPOKESMAN: In thunderstorms and in blizzards what we see is when the airports shut down passengers tend to migrate over to Amtrak and we are able to continue operations in the northeast on a limited basis.

BROWN: In the capital, not only did the subway service close, pretty much the whole town shut down as well and even well known politicians had to find a different way home.

SEN. GEORGE MITCHELL (D), MAINE (RET.): I commute regularly between New York and Washington and with the storm coming I was scheduled to leave later today but I decided to move it up as was everyone else leaving town.

BROWN: Even though the governors of five states declared emergencies today, for some reason baseball games went on, including this one between the Yankees and the Orioles at Camden Yards in Baltimore. The game was played in a steady rain.

ANNOUNCER: And now the tarp is going to be put on the field.

BROWN: For five innings, the score tied when it was canceled.

(END VIDEOTAPE)

BROWN: Well, in between the sheets of rain the governor of Virginia put it quite simply. This isn't our first rodeo, he said, but it is one of the messiest in memories; once again, CNN's Jeanne Meserve from Virginia Beach.

(BEGIN VIDEOTAPE)

MESERVE (voice-over): The latest extreme sport dancing with hurricanes. All day daredevils frolicked in ferocious waves, the super-charged surf so powerful it yanked down 50 feet of a fishing pier.

The water obliterated the beach usually about 50 yards wide and swept right over the boardwalk and onto seaside properties. The wind wheedled its way under roofs tearing them off, sending them flying and then there was the rain. The low-lying communities of Hampton Roads got exactly what they expected, extensive flooding.

UNIDENTIFIED MALE: We're moving from our old house. Tonight was going to be our first night staying in our new house and it looks like Mother Nature's kind of taken care of that. To get to it we're going to have to swim a little bit.

MESERVE: Wind took down trees. Trees and wind took down power lines leaving hundreds of thousands of homes and businesses without electricity. Even some shelters were left in the dark.

The weather was so rough Virginia Beach emergency personnel were taken off the street for a time. Even life and death emergencies were being evaluated on a case-by-case basis. Some good Samaritans did what they could pulling down trees from roadways.

UNIDENTIFIED MALE: There's nothing else to do. The power is out, you know, can't do anything else. The waves are too big to surf. MESERVE: But not too big to watch though we found one couple sitting in their car by the edge of the beach for a totally novel reason.

UNIDENTIFIED MALE: We were told that low pressure will help induce labor so we're bringing her up here hoping that she'll give birth soon.

(END VIDEOTAPE)

MESERVE: Across the state of Virginia, the winds are still blowing. The rain is still coming down and because it's dark officials really can't get a handle on how much damage they're dealing with but they have told me a few things. In this area bridges and tunnels which are a vital part of the transportation network shut down.

One tunnel here in the Hampton Roads area is flooded. Up near Richmond there are two counties whose water systems are not working. The situation is so bad state troopers have been pulled off the road. One state official tells me trees are coming down everywhere and we'll see what the morning holds -- Aaron, back to you.

BROWN: I'll make it blessedly short. Is anyone out tonight or are there curfews in effect? What's the state of that?

MESERVE: Here in Virginia Beach there is a curfew. It went into effect just a few minutes ago, will be in effect until 7:00 a.m. tomorrow morning. They want people to stay in their homes and stay off the streets while this calms down -- Aaron.

BROWN: Jeanne, go join them. Thank you. Your work is done, Jeanne Meserve in Virginia Beach tonight.

BROWN: President Bush today declared parts of North Carolina major disaster areas freeing up federal money for home repairs and temporary housing and the rest. No one quite knows how much this is going to cost when all is said and done, millions certainly, billions perhaps, more than a little no doubt especially along the islands on the Outer Banks where we hear once again from CNN's Susan Candiotti.

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): Surf pounding over sand dunes and sea walls as Isabel makes landfall south of Kill Devil Hills.

UNIDENTIFIED MALE: A lot of debris here.

CANDIOTTI: All right.

CHIEF RAY DAVIS, KILL DEVIL HILLS POLICE DEPARTMENT: (Unintelligible) have actually washed out into the road.

CANDIOTTI: Police chief Ray Davis out in the middle of it.

DAVIS: Areas that have a low dune lines are really going to take a beating I'm afraid.

CANDIOTTI (on camera): We're getting certainly those outer bands of Hurricane Isabel the wash coming over the sea wall and down the street washing over here to Route 12. This street now completely flooded.

(voice-over): Route 12 along the oceanfront under more than a foot of water. Cars couldn't make it. Four-wheel drives had better luck inching along through high water trying to avoid debris. At this motel (AUDIO GAP) pieces of the building and insulation with it. The pool behind this motel broke away and the building itself was flooding.

DAVIS: It's really taking a beating right now. We actually have sea water washing through the back of the hotel (unintelligible).

CANDIOTTI: Through it all some couldn't resist seeing what conditions were like at their peril.

(on camera): Why are you out here I mean really literally in the middle of a hurricane?

UNIDENTIFIED MALE: Have to check it out. After you live here for a while you like to get out and see what it's looking like. That's part of the reason you stay.

CANDIOTTI: And what does it look like?

UNIDENTIFIED MALE: It's pretty bad.

CANDIOTTI (voice-over): Also pretty bad at the Avalon fishing pier built back in the 1960s, the storm surge pounding into the pilings almost as if it was trying to swallow the pier into the sea. Despite an evacuation order on the Outer Banks about half its residents rode out the storm refusing to leave.

UNIDENTIFIED FEMALE: It's more dangerous sometimes to leave (unintelligible).

CANDIOTTI: This is not what police ever want to see in the middle of a hurricane but this young man was determined to get from Point A to Point B and Isabel wasn't going to stop him.

(END VIDEOTAPE)

CANDIOTTI: Most of the roads are passable now we are told but we are still experiencing tropical storm force winds. That is Route 12 behind me and (unintelligible) are trying to keep people off it. There is a curfew in effect until noontime tomorrow. Of course one of the big problems right now electricity is out for at least 25,000 customers and there's no telling how long it will take to restore it.

And, as you just saw, if you pan off me just a bit you can see it is just pitch dark out there. They are talking about major structural damage to a lot of buildings here but, of course, again they won't know more until the morning when they get these damage assessment teams out there -- Aaron.

BROWN: Susan, out of the rain for you too tonight, thank you, Susan Candiotti in North Carolina tonight.

Now the facts and the figures and perhaps, most importantly, the forecast, where things go from here, who is still at risk, we go to Rob Marciano at CNN Center in Atlanta, welcome.

ROB MARCIANO, CNN METEOROLOGIST: Thank you, nice to be here.

I hope it was a better situation but luckily this storm wasn't as bad as it could have been, Aaron, Isabel now downgraded to tropical storm status. You can kind of see the back half of this thing beginning to fall apart, although winds are still gusty and will continue to be tonight and it will continue to rain heavily overnight tonight in through the early part of tomorrow morning.

Winds gusting over 90 miles an hour, in Ocracoke 100 mile-an-hour wind gusts, so North Carolina getting hit the hardest, also the coastline of Virginia getting hit the hardest. The other flipside of this system, of course, has been the rainfall and we continue to see that as we go on through tonight and tomorrow.

Six to ten inches across the Carolinas that will lessen as we head towards morning and then the central part of Richmond, Virginia and the surrounding areas have seen Doppler estimates of over six inches and the rain is still falling there. That will taper off a little bit later on.

The right side of this system, as you may know, the most powerful part. We had a storm tornado threat. That will lessen a little bit tonight. Flooding will continue to be an issue because of a lot of that tropical moisture with this and some of the low-lying areas and some of the rivers during high tide could back up with this system even overnight tonight in through the early part of tomorrow morning.

Then, as we head through tomorrow, we do expect things to continue to weaken. That's what these things do as they head over land. It will head up into the Great Lakes and eventually into Canada.

Everybody across the northeast, although not seeing the strong winds as they did across the Carolinas today they'll feel that tropical moisture and that tropical air, Aaron, so everybody, millions of people getting a taste of this soon. Like I said, it could have been a lot worse so we're lucky in some regards.

BROWN: We'll take it that way. Rob thank you, nice job tonight.

What it looks like in the morning, tune in to "AMERICAN MORNING." Bill and Soledad will have all of that as first light comes up. It's going to be quite a scene in North Carolina and up into Virginia as well.

We received a note from a viewer today, not an especially nice note it's fair to say. Your people are idiots, he wrote, standing out in that hurricane just waiting to be hit by a tree. So much for Reporter Appreciation Day I guess.

Today was a day reporters earned their money, not just finding the story, in most cases the story found them, but just trying to tell it which isn't easy to do with 90 mile-an-hour winds, I assure you.

So, our reporters and theirs, local and national, all did their work today and here is how it looked.

(BEGIN VIDEOTAPE)

JEFF FLOCK, CNN CORRESPONDENT: They say this is really where the worst of it is going to come based on the current track and so we think we're in a good place. (Unintelligible) 30 or 40 yards will give you an idea of what happens (unintelligible). Now it will come and start rolling back.

KATHLEEN KOCH, CNN CORRESPONDENT: Can you hear me? Yes, I'm hanging onto a planter. There's a heavy tree planter right here and that's the only reason I'm not blowing away. I don't know if you can see this thing but it probably weighs about 300 pounds.

FLOCK: You should see the winds coming this way. The ocean is out that way, Rob (ph). Oops, excuse me. I know you're going to get wet. I'm going to try to keep it up as best I can. What was the worst you got on the other side as you went to check?

UNIDENTIFIED MALE: We're getting close to 60 miles an hour now with this heavy rain coming in.

FLOCK: I'm sorry.

UNIDENTIFIED MALE: It's going to get even worse.

KRIS OSBORN, CNN CORRESPONDENT: This hurricane is generating a lot of power and, as you can hear, it's generating a lot of interest. What's up fellows?

UNIDENTIFIED MALE: I'm going to get my football before it rolls into the ocean.

KOCH: Things have gotten worse since you last saw me hugging that planter out front. The area where I was standing just then is now covered with the debris of the roof next door.

OSBORN: We're still shooting this from our hotel room. I'm standing on one of the tall dunes that hopefully will protect where we are from the storm surge as it's said to come in a little bit later on today.

FLOCK: I'm telling you it is not the rain that is the issue right now. It is the (unintelligible) from the strong winds literally pelting you into the head feeling like needles.

UNIDENTIFIED MALE: As you can see the seas are chopping up pretty good. Right now a storm surge (unintelligible).

FLOCK: I think the precipitation for a portion of our show is definitely over here so just a lot of wind left.

(END VIDEOTAPE)

BROWN: My mother told me to get inside work. Now I understand why.

Ahead on NEWSNIGHT, a tough day in Iraq, more Americans hurt in the country and concerns the situation there is getting worse not better.

And later in Segment 7 tonight can you be fired for just attending a meeting? Michael Edmondson (ph) was, the story tonight of his fight to get his job back, a break first.

From CNN, this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: In Iraq, a day that began ugly and ended worse. There were a number of incidents including sabotage and a pair of ambushes. One of them, near Tikrit, took the lives of three American soldiers, soldiers with the 4th Infantry Division.

CNN's Jason Bellini was nearby when the ambush happened and joins us once again tonight on the videophone. Jason, what can you tell us?

BELLINI (via videophone): Well, Aaron, it's first light here in Tikrit after a very rough night here. Let me tell you where we are first of all. We're at one of Saddam's palaces on the Tigris River.

Now right across the river from us is where this ambush attack took place late last night and we can also tell you that during that attack there were helicopters flying overhead. We heard RPG rounds. We heard small arms fire, a very large fight that went on.

Now the early details that we have, Aaron, are that there was a response by U.S. soldiers to RPG attack and there were several attacks going on simultaneously. When they responded and they were on the hunt that's when they were ambushed and that's when three U.S. soldiers were killed and two injured -- Aaron.

BROWN: Well, that doesn't sound like some spontaneous event. That sounds almost like a setup.

BELLINI: Early indications are that may be what it is. Now we're still waiting for further details on how all of this went down. The Army is only giving us just the very basics at this point. They were reluctantly telling us about these casualties last night.

There were other events yesterday bad news for the same people we're embedded with here. Those involved oil fires that were burning all day yesterday. On the ground at these oil fires we were told that it was likely sabotage. We spoke with one of the chief engineers for the Northern Iraq Oil Company. He said he couldn't imagine it being anything but that. The coalition and the people we are speaking with here told us to reserve judgment on that. They won't know until the fires are put out and they're not out yet -- Aaron.

BROWN: Jason, thank you, full day there, Jason Bellini in Tikrit.

More now on the disturbing backdrop to the attacks like the ones today, the sight of cheering Iraqis, there is a growing concern that in the Sunni Triangle, at least, American forces have managed to put themselves so much at odds with local sensibilities and sensitivities that ordinary Iraqis have now turned against them.

No one here is suggesting that it's true of most of the people in the country. We don't know that but we do know that it's not as simple as just a few criminals, Ba'athists, and outside agitators.

Here's CNN's Nic Robertson.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): On fire and taking fire, a rare glimpse of a now common event, a U.S. convoy under attack in the so-called Sunni Triangle.

Hours later after a rescue, reinforcements pull out of the town of Khaldiyah. Immediately after with pictures of Saddam Hussein carried aloft, young men rushed forward to claim victory although not in the name of Saddam Hussein.

"These attacks are not from outside the country and are not from Saddam's army" local resident Shakir (ph) says. "They are by honorable people from around this area."

From firing weapons to showing charred remains of U.S. trucks, everyone finding their own way to celebrate.

(on camera): Over the last few weeks, incident after incident appear to have fueled an already volatile situation making it increasingly tense. Just a few days ago the police chief in this town was murdered.

(voice-over): Those in the crowd claim several U.S. soldiers died in this firefight but the coalition says only two soldiers were wounded. This attack on the convoy apparently sophisticated.

Fithal Hison's (ph) truck was damaged in the firefight. He says there were several explosions.

"After 15 minutes" he says "I tried to move. Then the soldiers were hit again and that's when they started to shoot at everybody."

From high on a bank providing a vantage point over the site of the ambush, more jubilation, the townspeople, the rationale of the attack simple.

"When the occupying force came they promised a lot" says Sheikh Ali (ph) "but it was all lies."

Such is the mood in the heart of the Sunni Triangle.

Nic Robertson CNN, Khaldiyah, Iraq.

(END VIDEOTAPE)

BROWN: The Iraq story today.

On to the Israeli-Palestinian question, tonight Yasser Arafat and his chosen prime minister today trying to put together a new government which may include a cabinet member from Hamas. Mr. Arafat reportedly is in ceasefire talks with militant groups. Israel for its part is having none of it. Israeli troops today moved into Gaza killing a Hamas leader and prompting new calls for revenge and so it goes in the region.

And, as you might expect with all that on the table when Jordan's King Abdullah met with President Bush today expectations were low. Here's CNN's Dana Bash.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We'll have a nice lunch and then we'll batten down the hatches.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): Hurricane Isabel forced the president and the king to start Camp David talks early, a stark contrast to a sunny day just three months ago in Jordan, a new Palestinian partner, a new hope for peace. Mr. Bush admitted the process is now stalled and bluntly assigned blame.

BUSH: Prime Minister Abbas was undermined at all turns by the old order. That was -- that meant Mr. Arafat.

BASH: Using the toughest words for Arafat since Mahmoud Abbas resigned earlier this month.

BUSH: Mr. Arafat has failed as a leader.

BASH: Warning a Palestinian state can't be achieved unless a new prime minister cracks down on terrorism.

BUSH: Hopefully at some point in time a leadership of the Palestinian Authority will emerge which will then commit itself 100 percent to fighting off terror.

BASH: The president said all sides, including Israel, must live up to their commitments but Bush officials have been disappointed Arab leaders have not done enough to sideline Arafat and stop terrorism.

Notably absent criticism of Arafat from the king and the president made no mention of Jordan's refusal to free some Hamas assets, a U.S. concern he was expected to broach in private.

Terrorism has hit Jordan in Iraq. Its embassy there was bombed this summer. Mr. Bush said he hopes King Abdullah can convince European leaders to help secure that country. And, despite some reluctance from around the globe he said talks with allies for more troops and money are making progress.

BUSH: We'll continue to make the case that reconstruction aid is necessary.

BASH (on camera): But the president said a new U.N. resolution to get more international support in Iraq is not likely to pass before his speech there next Tuesday as the White House had hoped so Mr. Bush said he'll use the New York visit for some high level negotiations.

Dana Bash, CNN, the White House.

(END VIDEOTAPE)

BROWN: Coming up on NEWSNIGHT tonight, the casino effect, how California Indian tribes and their casinos have become an issue in the gubernatorial recall.

From New York, this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Well, it may turn out to be the debate that wasn't. Four of the major candidates in the California recall say they will likely boycott the only debate Arnold Schwarzenegger has agreed to attend if the format isn't changed. The questions for the debate were released yesterday.

A format the Schwarzenegger campaign defended on this program a couple of weeks back one day before asking that it be changed. It hasn't, hence the boycott, though Mr. Schwarzenegger indicates he will show up anyway.

If seeing the questions before the debate is a bit unusual accusations of improper fund-raising and politics are not. Mr. Schwarzenegger faced those when he said he wouldn't take special interest money and then did.

And then now his principal Democratic rival, Lieutenant Governor Cruz Bustamante, is dealing with those questions too, a lot of them, in this case a lot of money from a source that used to have very little money at all.

Here's CNN's Frank Buckley.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT (voice-over): Just beyond the quiet of this pasture, you can see and hear 24 hours a day what helped to transform this Indian reservation from what was a pocket of poverty just a few years ago to a source of millions of dollars in campaign contributions today.

The Viejas Casino, operated by the Viejas Band of Kumeyaay Indians. It is among the more than 50 casinos operated by Indian tribes in California, that, last year, generated more than $3.5 billion in revenue.

ANTHONY PICO, CHAIRMAN, VIEJAS COUNCIL: Indian gaming is a means. To us, it's just a means to an end.

BUCKLEY: Anthony Pico points to the improvements on the reservation and the investments the tribe has been able to make, like the outlet shopping center it owns, as an example of how gaming money has helped the Viejas Band.

But it's the money the tribe gave away, $1.5 million to California's lieutenant governor, Cruz Bustamante, that brought Bustamante a rush of negative publicity.

BOBBY BARRETT, VICE CHAIRMAN, VIEJAS BAND: He's been here and he's heard our stories. And he's -- we taught him or values.

BUCKLEY (on camera): The huge donation also highlighted a trend in California politics. Indian tribes have become the largest contributors to California campaigns. Since 1988, when Indian gaming was approved here, they've given more than $120 million. Politicians who may have once ignored their plight now take their calls and their money.

(voice-over): Viejas leaders say sovereignty is their primary issue. But watchdogs are worried that voters aren't getting accurate information about Indian gaming money because some tribes cite sovereignty in saying they can't be forced to report their campaign contributions.

JOHN ULIN, COMMON CAUSE: You may think that's a good idea, you may think that's a bad idea for candidates to be allied with Indian gaming interests, but you ought to know who they're allied with.

BUCKLEY: Most tribes do conform to contribution laws. Viejas leaders say they do. And they say it is their right, as Indian Americans, to contribute to campaigns, just like anyone else.

PICO: I am a citizen of the Viejas Band of Kumeyaay. I am a citizen of the United States of America. I'm also a citizen of the state of California. I have an obligation and I have a right to be part of the mix.

(END VIDEOTAPE)

BUCKLEY: Now, today, a judge heard arguments in a lawsuit filed against Mr. Bustamante over the money he accepted from the Viejas Tribe and on other contributions. Bustamante accepted $1.75 million from the Viejas Tribe into an old campaign account from 2002 that wasn't subject to new limits on contributions.

A state senator says in his lawsuit that that was illegal. Bustamante says it wasn't. Still, Aaron, after a great deal of criticism, Bustamante did shift that money out of his campaign and into a different account. This opposes another initiative on the ballot, Proposition 54. Interestingly, the star of the campaign commercials against Proposition 54, Cruz Bustamante -- Aaron. BROWN: Funny how that works.

Just because I'm somewhat cynical, generally, when people give $1.5 million, they want something. What is it the state can do for the tribes if they get the right ear and the right legislation?

BUCKLEY: When you talk to the tribal leaders, they say sovereignty is the most important issues, that is, making sure that the Indian governments are respected as governments.

But the reality is that the governor has a great deal of impact on Indian gaming. He negotiates the gaming compacts. And that regulates how many slot machines, for example, that each individual casino can have, the amount of revenue sharing that takes place. These are the kind of issues that the governor, in a negotiation with these tribes, enters into this compact.

So the governor has a great deal of impact on each one of these tribes.

BROWN: Frank, thank you very much -- Frank Buckley in Los Angeles tonight.

Quickly, a few other stories from around the country, starting in Washington. The Bush administration today said it plans to spend $100 million to develop a missile defense system for commercial airliners. The money would go to research on adapting existing military systems, like the one used to keep Air Force One says from shoulder-fired anti- aircraft missiles.

Western Pennsylvania next, where it was decided that no charges will be filed in connection with last year's mining accident. The grand jury found insufficient evidence of criminal wrongdoing to hand up any indictments. The accident surely, you'll recall, trapped nine men deep underground for three days, seemed longer. It's been blamed on poor maps of the area.

And our parent company has an old name. AOL Time Warner's board went into the meeting today. And, when all was said and down, Time Warner's board came out. AOL will be dropped from the corporate name.

Still to come on NEWSNIGHT tonight: Are the foxes guarding the henhouse? Why the downfall of the head of the New York Stock Exchange exposes what's wrong with Wall Street, if it does.

A break first. Around the world, this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Well, this may be the first day that former New York Stock Exchange head Dick Grasso is forced to get by on a $140 million retirement fund, but the temple of capitalism has a lot of cleaning up to do, it seems, in the wake of the scandal that forced him out.

Serious questions are being raised about whether the companies the exchange is supposed to regulate on the exchange should have any say in who runs it and how much he is paid. One of those who thinks some housecleaning is in store is our guest tonight, Shawn Tully, who is the senior writer for "Fortune" magazine.

Nice to see you.

What did Mr. Grasso do wrong?

SHAWN TULLY, "FORTUNE": It's actually a little complicated, because he took all of this money that was essentially given to him by the board and now he's being fired by the same directors who gave him this enormous pay package.

But he really exercised, I think, poor judgment in taking the money. And that sounds incredible, since most people could never turn that kind of money. But it's shareholders' money -- or his seat- holders' money, in this case. And, essentially, he just took too much of it. Given the profits of the company and the size of the company, it was completely inappropriate to pay him that kind of money.

BROWN: Just quickly on this, because I really want to move off this a little bit. But there is no suggestion that he strong-armed them into giving him this money, that he had the goods on somebody? They just offered him a lot of dough and he said yes.

TULLY: Right.

And the same people he's regulating are the people who are on his board and gave him the money, which is where the problem is.

BROWN: Right.

TULLY: So they want to curry favor with him, obviously. They're big customers of his. They're regulated by him. So it doesn't look good.

BROWN: OK.

Now I think we're into the nut here, if you will. The problem, as a lot of people see it, is, the people who would have something to worry about if the director of the stock exchange were upset with them controlled how much he was being paid. And there is, whether there was a reality or not, a perception that that's bad.

TULLY: That's correct.

BROWN: Yes.

Now, this is not the same as the Enron bookkeeping sort of thing. They're not regulating the companies in that respect, are they?

TULLY: Well, the New York Stock Exchange, Aaron, sets the rules for companies. They determine things like how many independent directors a company has to have. They set rules on proxy battles, on issuance of stock options. And if you want to be listed on the New York Stock Exchange, you have to follow the rules of the New York Stock Exchange. The SEC has essentially outsourced all of that regulation and oversight to the New York Stock Exchange. So, all of the companies that are represented by people on the board, of which there are a dozen or so, have to adhere to the rules of the exchange and are regulated by the exchange. So you should not have the people who are being regulated setting the pay of the regulator, or the policeman.

BROWN: And there are obviously -- in the view of some companies, you don't have to be listed on the New York Stock Exchange. You can have your stock traded on other exchanges. So there's some benefit to big companies, at least, to being on the New York Stock Exchange?

TULLY: Yes. It's an enormous exchange. The liquidity is tremendous. And the prestige is tremendous, also, of being there. The Nasdaq is a competitor, for example.

BROWN: Is it an anachronism?

TULLY: Frankly, it is.

BROWN: Why?

TULLY: Because there is no reason why human beings should be in the middle of every trade.

And what the New York Stock Exchange essentially says is that a specialist or a -- quote -- "market-maker" is going to be taking an order and filling an order. And it's a slow system. There are special rules that enable those specialists or market-makers to take about 10 or 15 seconds to clear a trade, whereas the new computers -- not even that new anymore -- can clear a trade in fraction of a second.

BROWN: Why hasn't it changed?

TULLY: It hasn't changed because there is a special rule that says that the specialists can always match the best bid and has a lot of seconds to do that. It's called the trade-through rule. It's been around for a long time. It should be eliminated, not to discriminate against the specialists, but just to put them on an equal footing with the computers and see who wins. And that's going to benefit computers and reduce the cost of trading, which is what we all want.

BROWN: All right, and that leads to the sort of final area here, which is -- let me just do this simply -- why should I care? This may be just a bunch of rich people fighting about something, but does it affect me? Does it affect the people watching the program?

TULLY: Well, the pay that Grasso makes and the expenses of the exchange are indirectly paid by you and me, because our commissions are higher because all the trades go through the exchange.

So the brokerage commissions you're paying reflect the expenses of the trading patterns on the stock exchange, because the company you trade through, whether it's Merrill or Smith Barney, or whoever it may be, has to pay those expenses. And they're billing them to you. So the lower those expenses are and the more efficient trading is, the lower our commissions are going to be.

BROWN: Just very briefly, do you expect that this is the first of a number of changes we're going to see downtown?

TULLY: I do. I do.

We have a battle between old Wall Street and new Wall Street. And old Wall Street is symbolized by the New York Stock Exchange. I think it's going to go public. They're going to split off the regulatory function, so it will be a public company. And we'll see if the SEC really has the guts to put it on the same footing as the ECNs, or the computerized trading systems. I doubt it, but I'm hopeful.

BROWN: Thank you for coming in. You're a guy with a lot of enthusiasm for what you do. Thank you. Nice to meet you.

TULLY: You, too, Aaron.

BROWN: Thank you very much.

Quickly, a number of items from around the world before we send it off to break. About 40 -- 450 -- there we go, Aaron -- miles southeast of Moscow, a Russian air force bomber went down today. A Tu-160, resembling an American B-1 bomber, crashed during a test flight. Four crew members died.

Big controversy at the Bolshoi ballet. What is this, Russia night? A ballerina fired because the company say she's too heavy. She weighs all of 109 pounds, or so she claims. Some disagree. In any case, the ballet claims she was simply too much for her partners to carry. She says it's nonsense, threatening to sue. Imagine that in the old Soviet Union.

And here is one for New Yorkers. Mayor Bloomberg, who recently declared a war on the city's rodent population, should consider himself lucky he never had to face one of these, a three-quarter-ton rat. This, by the way, is a drawing. In a picture published in the journal "Science," researchers say they have uncovered the bones of one in Venezuela. It lived six million to eight million years ago, to which we say, thank goodness. Yikes.

NEWSNIGHT continues.

Taking company loyalty a step too far? The story of an Idaho man who was fired because his company didn't like the meeting he attended.

A break first. This is NEWSNIGHT on CNN.

(COMMERCIAL BREAK)

BROWN: The First Amendment to the Constitution, of course, guarantees the right of free speech and free assembly. And while free speech, in the famous language of Justice Oliver Wendell Holmes, does not mean you can yell "Fire" in a crowded theater, over the years, courts have been very sympathetic to free speech lawsuits, which brings us to a very small town in a most beautiful state, where one man says all he did was show up at a public meeting his employer, his longtime employer, did not like.

He says he didn't even say a single word, yet the consequences were dire.

(BEGIN VIDEOTAPE)

BROWN (voice-over): Michael Edmondson has spent much of his summer here, in Idaho's Bitterroot Mountains. He's an emergency medical technician, listening to the squawk of his radio, on alert to assist any injured firefighters. But he would much rather be here, at the sawmill where he worked for 22 years.

MICHAEL EDMONDSON, FORMER SAWMILL WORKER: I was the guy that was down there at 3:00 in the morning if there was a broken pipe. I was the person who missed all the family time because I lived and breathed my job.

BROWN: Three and a half years ago, Mike Edmondson's bosses at Bennett Forest Industries fired him. They fired him for what they said were -- quote -- "public criticisms and efforts to undermine the company." It was news to him.

EDMONDSON: I had never talked to any fellow workers, as far as an opinion one way or the other as far as the process.

BROWN: In this case, that process meant a series of meetings in the small town of Elk City, Idaho, home to the sawmill. Those meetings were supposed to come up with a plan to allow additional timber to be cut from federally owned land, which is about all there is in this part of the state.

Mike Edmondson says he went to a single meeting of a citizens group about those decisions and, while there, did not utter a single word.

EDMONDSON: When I was terminated, it was like somebody had, I guess, shot me. I felt that I gave 200 percent as far as to make my employer successful. I was shocked.

BROWN: But under Idaho law, Bennett Forest Industries had and still has the right to fire anyone it chooses any time it chooses. Idaho is a so-called at-will state, meaning private employers can fire whomever they wish, as long as the firing doesn't violate what's termed public policy.

Mike Edmondson's firing, his attorneys say, violated public policy.

STARR KELSO, ATTORNEY FOR EDMONDSON: Look at it in the light that you would go to church on Sunday and be fired or church on Saturday and be fired. Look at it going to the Fourth of July parade on a day off and be fired.

BROWN: Edmondson's case wound up in the Idaho Supreme Court, which ruled 4-1 against him, a ruling so unexpected that every major newspaper in the state editorialized against it, "The Idaho Statesman" saying, "The Supreme Court is going down a frightful path with this ruling."

KELSO: You have small towns and communities with one employer. To allow that employer to dictate your political beliefs, your -- whether you attend a meeting or a basketball game is unconscionable.

BROWN: After first agreeing to an interview, Bennett Forest Industries would not provide anyone to talk about all of this on camera. In an e-mail to a newspaper, the company president, John Bennett, said Edmondson was "actively promoting the adoption of a forest management policy that would deprive his employers of raw material that was critical to its survival."

Mike Edmondson says he's determined to take his case all the way to the U.S. Supreme Court to fight for what he believes in.

EDMONDSON: I believed in my company. I felt that we had a good company. And I say "my company" because I believed I had a piece in it, in the context that I had given a lot of me to make my company successful.

(END VIDEOTAPE)

BROWN: From Idaho tonight.

Still ahead: morning papers. Will take a break first.

(COMMERCIAL BREAK)

(ROOSTER CROWING)

BROWN: Time to do morning papers from around the country, around the country. Tonight -- man, I got the nastiest letter about morning papers today. Bummed me out.

"New York Times" -- just don't watch if you don't like it, OK? "New York Times" -- no, watch. "Hurricane Hits U.S., Lashing North Carolina," very cool picture. I don't know how well you can see it. Without my glasses, I can't see it at all. The other story on the front page, I like a lot. "Late-Arriving Candidate Got Push From Clintons." This would be General Clark and his relationship with the former president and Senator Clinton.

What made that particularly interesting to me was all the chatter on talk radio today, conservative talk radio, as if there's any other kind, was that Mrs. Clinton, Senator Clinton, was coming back into the race. And that finds its way on the front page of "The Washington Times," coincidentally. "Remarks by Clinton Reignite Hillary Buzz." And, in this case, it was remarks by former President Clinton. Anyway, and they put -- obviously, put the hurricane on the front page, too. "Isabel Clobbers Region," a pretty straightforward headline there in Washington, "The Washington Times."

"The Boston Herald." "Three Deadly Errors. Children's Hospital Procedures Blasted," one of those stories that is guaranteed to break your heart. Maybe the most intriguing story up top, though. "Ted K.:" -- that would be Ted Kennedy, Senator Kennedy -- "Bush's War a Fraud," a very hard-hitting speech by Senator Kennedy that will end up being thrashed around by both parties a fair amount, I suspect, in the days and weeks ahead.

"The Press of Atlantic City," where the hurricane is of some concern. "Isabel Hammers North Carolina, Sends Wind, Rain to New Jersey Coast." But, hey, don't worry, because the Miss America parade is still on. So life will be back to normal by them.

This is upstate New York. I just like the headline here. "The Times Herald-Record." "Wet and Wild: Isabel Rips Coast." This is a nice picture, too, isn't it?

How we doing on time? Forty-two. Not bad.

"The Richmond Times-Dispatch," Richmond, Virginia, "1.4 Million in the Dark." They're probably not watching this. I'm putting up their paper and they're not able to see it. "After Isabel Hits, Large Area Without Water." What else? And then, three, four stories down at the bottom, including this headline. "Many Trees Falling Like Dominoes." OK, that's the cliche story.

I bet we're almost out of time, aren't we? Do "The Chicago Sun- Times." "We Done Hit the Lottery. At least, that's what cops thought when they allegedly ripped off drug dealers. Too bad the money was part of an FBI sting." The weather tomorrow, "kind of chilly, dog" in Chicago.

Good to see you tonight. We'll see you again tomorrow at 10:00 Eastern time.

Until then, good night for all of us at NEWSNIGHT.

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