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Lou Dobbs Tonight

California Votes; Interview With Senator Pat Roberts

Aired October 07, 2003 - 18:00   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.


ANNOUNCER: This is LOU DOBBS TONIGHT for Tuesday, October 7. Here now, Lou Dobbs.
LOU DOBBS, CNN ANCHOR: Good evening.

Tonight in California, it is all over but the voting. Throughout this day, it appears to be a record turnout for a nonpresidential election. The polls will be open for another five hours. Out of 135 candidates, only four managed to establish themselves in the polls, Arnold Schwarzenegger taking the lead for the Republicans, Lieutenant Governor Cruz Bustamante for the Democrats.

But the most important issue of all, will Californians vote yes or no to recall their governor? We'll be covering this election, as you would expect, throughout the evening and the early hours of tomorrow.

We begin our coverage tonight with correspondent Candy Crowley, with the Davis campaign at the Biltmore Hotel in Los Angeles -- Candy.

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Lou, you can tell that this has not been a usual campaign for Gray Davis.

In fact, just about 11 months ago, he won a four-year term. No trappings of an election night in here, simply a couple of flags and a big "no recall" superimposed on the wall, a very low-key place and low-key stage from which to do whatever he will do at the end of the evening.

The fact of the matter is that, when Gray Davis went to vote, as all of them did, he was followed by a pack of reporters and remained very upbeat.

(BEGIN VIDEO CLIP)

GOV. GRAY DAVIS (D), CALIFORNIA: I feel absolutely terrific. I have always trusted the voters of California. I know they're going to do the right thing today. This is a big day for California. It's particularly a big day for working families. And I ask everyone to make an effort to go out and vote.

(END VIDEO CLIP)

CROWLEY: It is cheery and it is upbeat. And, indeed, as you mentioned, Lou, quite a few people, a record number for a nonpresidential year, appear to be going to the polls. I will tell you, though, that, privately, they are a lot less upbeat in the Gray Davis camp. Many of them believe that this is still a very, very tough uphill battle. They are not very optimistic -- Lou.

DOBBS: Candy, thank you very much -- Candy Crowley.

Should California voters approve this recall, Arnold Schwarzenegger is the front-runner to replace Governor Davis. Schwarzenegger appeared to be in an upbeat mood as he voted near his home in Pacific Palisades.

Kelly Wallace is with the Schwarzenegger campaign at its headquarters in Los Angeles -- Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Lou, there's a great deal of spinning going on.

But I can tell you that aides to Arnold Schwarzenegger are very upbeat, because they're doing something they haven't done over the past few days. They are giving us the specific overnight internal tracking poll numbers, numbers which they say show this recall passing and Arnold Schwarzenegger winning. They also say they are not seeing damage to the candidate's support after a few days of very tough allegations concerning Schwarzenegger's conduct.

Polls aside, though, no one knows ultimately what these voters will decide to do. So, when Schwarzenegger and his wife, Maria Shriver, were voting today, the candidate saying he's not paying attention to the polls, that he's focused on getting his message out. He also was a bit more spiritual than we've seen in the past. He said this decision is now in the hands of God.

After he and his wife voted, well, he was mobbed by a pack of reporters, local, national, international, and entertainment reporters following his every move. It has been an unconventional campaign from the start, the day Arnold Schwarzenegger announced his candidacy on "The Tonight Show." But, Lou, it is wrapping up the old-fashioned way, because Arnold Schwarzenegger is like every other political candidate around. He must now wait to see what the voters decide -- Lou.

DOBBS: Kelly, thank you very much -- Kelly Wallace.

Schwarzenegger's closest rival in the polls is Lieutenant Governor Cruz Bustamante. He said today this election will determine the leadership of California for the next decade.

Dan Lothian is covering the Bustamante campaign and joins us now from Sacramento -- Dan.

DAN LOTHIAN, CNN CORRESPONDENT: Well, Lou, aides for Cruz Bustamante say that he will be spending the day with his family. He will be here in Sacramento, where he will be watching the numbers coming in tonight. Early in the day, this morning, he was at an elementary school here in Sacramento casting his vote. He was speaking in both English and Spanish. And he said, after this hard battle, this recall battle, this is the only day that counts, Election Day.

(BEGIN VIDEO CLIP)

LT. GOV. CRUZ BUSTAMANTE (D-CA), CALIFORNIA GUBERNATORIAL CANDIDATE: In the end, this is a real serious issue. It's a very serious vote. It's going to determine the leadership for California for the next decade. You have to be able to decide.

(END VIDEO CLIP)

LOTHIAN: Over the past few weeks, the polls have showed that he has been losing a lot of ground. Yesterday, he was in East Los Angeles, a mostly Latino community.

He was talking to folks there, voters there, and telling them that he needs their help in order to win -- Lou.

DOBBS: Dan, thank you very much -- Dan Lothian.

State Senator Tom McClintock has, as we have been reporting, for the most part, stayed above the fray and certainly trash politics. That may be in part because he's well behind Schwarzenegger and Bustamante in the polls. Today, McClintock predicted an election surprise as he voted at a community center in Los Angeles.

Miguel Marquez reports from the McClintock headquarters in Sacramento -- Miguel.

MIGUEL MARQUEZ, CNN CORRESPONDENT: And what politician wouldn't predict an election surprise there, Lou?

He cast his vote in his home district of Thousand Oaks today, right north of Los Angeles. And he was seen as somebody who might be a spoiler in this thing for Schwarzenegger -- he's a little more conservative -- and that would split the conservative votes with Schwarzenegger, causing Bustamante, then, to win the election. He's sunk back down in the polls as of late. And he told supporters gathered at the polling station today to vote their conscience, and, by this evening, he, McClintock, would be governor.

We just have a few more hours to find out if he's right -- Lou.

DOBBS: Miguel, thank you very much.

Joining me now are our analytical heavyweights. They are three of the best in the business, "Los Angeles Times" columnist, CNN analyst Ron Brownstein, CNN senior political Bill Schneider and CNN senior analyst Jeff Greenfield.

Bill, let's start, if we may, with you.

Just how heavy does it appear this turnout will be today? WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, it looks like it's going to be very heavy, especially for a special election, probably as high as most governor's elections and much higher than the election last year. Last year brought out about 7.7 million. The early estimates are this could be as many as 10 million voters.

DOBBS: And, Ron, you have been watching these polls very carefully. The sexual harassment charges, all that has been directed at Schwarzenegger, the apparent late surge by Governor Davis, where is it, in your judgment, that we stand tonight, besides at Election Day?

RON BROWNSTEIN, CNN POLITICAL ANALYST: We're at the end of the road, Lou, or maybe not.

I think this race looks a lot, to me, like many races where you have an incumbent with a low approval rating. The one thing that's been constant from the beginning, as Bill well knows, is that most voters in California think Gray Davis is not doing a good job as governor. And their inclination in that circumstance is to replace the incumbent.

Now, what's happened in the last couple weeks is that they have had growing doubts about the most likely replacement, Arnold Schwarzenegger. So you see turbulence in the polls as a result of that. But I do think that, unless Davis really is able to change the perception of voters about his performance, in the end, that is the fact that weighs the most. And it's still a very uphill climb to win an election when two-thirds of the people think you're doing a bad job.

DOBBS: Jeff your thoughts as to what are the best indicators for the outcome right now. What are you looking for?

JEFF GREENFIELD, CNN SR. ANALYST: Well, I think, in normal elections, they say a high turnout benefits Democrats, because people who vote less often tend to be Democrats, lower income, less educated.

In this election, unusually, by most calculations -- and I certainly think this is right -- a high turnout, if there is one, is very good news for Schwarzenegger and bad news for Davis.

DOBBS: Really?

GREENFIELD: Because it suggests that Schwarzenegger will have tapped into a kind of discontent, in sort of the same way Jesse Ventura did in Minnesota a few years ago, and said to people, I know you think the system is broken; it's all fixed; the politicians run everything. But here is a recall system, a mechanism, that gives you the power to take a two-by-four to those guys you don't like.

So, in my view, a high turnout -- and it's all anecdotal so far. We don't really know.

DOBBS: Sure.

GREENFIELD: ... is, I think, going to help Arnold. DOBBS: Let me turn this question to each of you. What is your best assessment of the prospects of a surprise here, the idea that it appears the latest polls showing that the recall's going to succeed? How confident are you gentlemen in these polls right now?

And I'll start with you, Bill.

SCHNEIDER: Well, I'm supposed to be confident in the polls. And I think the question about the polls is very simple.

The polls were very clear about two weeks ago, after the one debate that Arnold Schwarzenegger participated in, that he had momentum, that the recall would succeed, that he would be elected. Suddenly, these allegations came out from "The L.A. Times," "The New York Times" and other sources about his past sexual misconduct, some of which he acknowledged, and about other charges.

Did those last-minute charges make a difference? That's always the big question. There are good reasons to believe they may not make a difference, because, they came so late in the game, a lot of voters suspected that they came out for political reasons, that the media were in cahoots somehow with the Democrats. And they tended to discount them because of the timing.

So these charges probably would have made an enormous difference early on. The question is, did they make a difference coming as late as they did? Did they turn those polls around?

DOBBS: Ron, your thoughts?

BROWNSTEIN: Well, I was just going to say, even if the recall result itself may be pretty clear -- I think most -- look, we have to wait and see what the voters do, but most Democrats, I think, were concerned last night that, while support for the recall had eroded, it has stabilized above 50 percent.

Even if Davis is recalled, I think there are some interesting questions out there tonight, in particular what kind of mandate and what kind of leverage Arnold Schwarzenegger comes in with? I think he would be in a much stronger position if he can pull more votes, in effect, than vote to keep Davis in office. Davis is the only one that needs to get 50 percent. And it's possible that more people will vote to keep Davis than to elect Schwarzenegger as governor. That would make it hard for him to deal with the Democratic-controlled legislature. The bigger the total he can get, the bigger the total for the recall, the stronger the position he's going to be in.

DOBBS: Jeff, I'm one of those people who, when I hear mandate, whether we're talking about Republicans or Democrats, I start getting a little uncomfortable.

To me, there are elections and people are elected. When I hear mandate, I get nervous. Is mandate important in the outcome here?

GREENFIELD: Well, I think there are times when, in fact, you do see it. I agree with your that it's more elusive than that. I think you can argue that Ronald Reagan had a mandate in 1980 to change course, that Lyndon Johnson had a mandate in 1964 to build a great society. The problem is, what Schwarzenegger has been given a mandate -- and it was very interesting how he ran this campaign. He was in eff -- not in effect, in so many words, he was saying remember to people, remember how I dealt with the bad guys in the movies? That's what I'm going to do as governor.

So if his voters, particularly these first-time, disaffected, angry voters expect Schwarzenegger, whatever the number he gets, to go up to Sacramento and terminate the car tax, for instance, without a whole lot of complexity, deal with a Democratic legislature and wipe away their discontent, he's going to find a very disappointed electorate.

DOBBS: Cruz Bustamante today said that the outcome of this election will determine leadership in California for the next decade. Do you agree with that, Ron?

BROWNSTEIN: Well, candidates often say, this is the most important election that they've ever been in. And it's because they're in it and it's the most important to them.

I'm not sure. I think that, if Schwarzenegger is elected governor, as I said, he will probably not have majority support going in. He will have to consolidate support, expand his base, show voters who do not support him that he's worthy of staying as governor. And in a Democratic-leaning state, Lou, I think you have a very competitive gubernatorial election in 2006, even if he is elected.

So I'm not sure that Bustamante, apart from trying to fire up his troops, is really accurately reflecting that this really sets the course for a sustained period.

DOBBS: Bill, Ron, Jeff, we thank you, gentlemen. I know you're going to be busy working tirelessly throughout the evening and the morning. So we thank you very much for your time here. Thank you, gentlemen.

And, as you know, CNN will be covering this election throughout the night and the early hours of tomorrow. We will begin by reporting the first exit polls as soon as the polling booths close. Those polling booths close at 11:00 Eastern time, 8:00 p.m. Pacific.

Wolf Blitzer, who is anchoring our election coverage tonight, joined by the CNN election team, including Ron and Bill and Jeff, of course -- Wolf will also be joining us on this show in just about 20 minutes with his analysis of events on this Election Day and what we can expect this evening.

Still ahead, I'll be joined by Senator Pat Roberts, the chairman of the Senate Intelligence Committee. We'll be talking about the latest developments in the Department of Justice investigation into the leak of a CIA officer's name, truth or consequences -- and it is truth or consequences -- as the deadline has passed for White House staffers to turn over all relevant documents related to that leak. Senior White House correspondent John King will report.

"The Great American Giveaway," our special report. Tonight, a look at how much medical aid the United States sends to other countries and what, if anything, we receive in return.

And later in the show: The Supreme Court has opened its fall term. We're joined by our legal analyst, Jeffrey Toobin. We'll take a look at what the court will be hearing and deciding, including a challenge to campaign finance reform.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: The war goes on in Iraq. Terrorists killed another three American soldiers in the past 24 hours; 321 American troops have now been killed since the start of the war against Saddam Hussein; 202 were killed in combat, 119 in accidents. Another 1,749 have been wounded in Iraq, most of them by hostile fire. Three soldiers were today wounded in Tikrit as well when a bomb exploded under their Humvee.

High drama at the White House tonight. The deadline for the staff to hand over documents in the CIA investigation passed just over one hour ago. Investigators, Justice Department investigators, are trying to find out who leaked the name of a CIA officer to nationally syndicated newspaper columnist Robert Novak.

Senior White House correspondent John King has the report -- John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: And, Lou, it is the Justice Department that wants those documents. The actual Justice Department deadline is two weeks away from tonight.

But White House counsel Alberto Gonzales set a 5:00 p.m. deadline tonight, because the White House wants to get this over with as quickly as possible. Many aides at the White House still gathering those documents an hour after the deadline. They say they are trying to comply by as soon as possible, hopefully this evening.

The president was asked about this a bit earlier today at a Cabinet meeting. He said he wants to get to the bottom of this and find out the truth as much as anyone. But when asked if he was confident the leaker would in fact be found, the president voiced some skepticism.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Now, this is a large administration and there's a lot of senior officials. I don't have any idea. I'd like to. I want to know the truth. That's why I've instructed this staff of mine to cooperate fully with the investigators.

(END VIDEO CLIP) KING: You heard the president say there are a lot of senior officials. His press secretary today conceded that he went to three of them and asked them directly if they had any role in the leak at all, Karl Rove, the president's top political adviser, Lewis Libby -- he is the vice president's chief of staff and a key member of the national security team here at the White House -- and Elliott Abrams, who is a top Middle East adviser on the National Security Council staff.

Scott McClellan explained his reasons at the White House briefing of why he specifically asked these three aides if they had anything to do with the leak.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: Unfortunately, in Washington, D.C., at a time like this, there are a lot of rumor and innuendo. They're unsubstantiated accusations that are made. And that's exactly what happened in the case of these three individuals.

They're good individuals. They're important members of our White House team. And that's why I spoke with them, so that I could come back to you and say that they were not involved.

(END VIDEO CLIP)

KING: Now, Lou, some Democrats complaining tonight about the president's lawyer looking at all these documents before they are turned over to investigators. White House officials say that is standard operating procedure, although they will not flatly rule out here at the White House of invoking executive privilege and keeping some classified material out of the hand of Justice Department investigators, if they determine here at the White House that it is sensitive information with regards to national security, but not relevant to the ongoing investigation -- Lou.

DOBBS: Obviously, this White House filled with historians, as well as the entire city of Washington. Executive privilege here is an explosive concept and a privilege to assert. How concerned are they about even bringing up the issue in this important investigation?

KING: Well, reporters brought it up.

And that is one of the reasons you have the 5:00 deadline tonight, even though the Justice Department says, take two more weeks, if you want. The White House views this, increasingly, as both a serious legal investigation, but also a distracting political debate. Reporters asked, is it possible you would invoke executive privilege? Scott McClellan, the press secretary, saying it's premature to even ask that question. But he did acknowledge much of the information being collected is likely to be classified. And he said he could not rule it out, Lou.

DOBBS: And what is unusual about that is that this information will be turned over to the Justice Department, of course, part of the administration. Thank you very much, John King, our senior White House correspondent.

Well, coming up shortly, I'll be talking with Senator Pat Roberts. Senator Roberts is the chairman of the Intelligence Committee. We'll be talking about the progress of this investigation into the leak of the CIA officer's name.

Turkey's Parliament today voted to allow sending peacekeepers to Iraq. However, Iraq's Governing Council made clear that those Turkish troops would not be welcome. The U.S.-appointed council released a statement today saying any interference from a neighboring country to Iraq is simply unacceptable. The United States has requested Turkey's help in Iraq and agreed to loan Turkey $8.5 billion for its support.

An uncompromising threat from Israel today. Prime Minister Ariel Sharon said Israel is prepared to strike its enemies anywhere it finds them and with any means available to the state of Israel. Sharon's comments come two days after an Israeli airstrike on a suspected terrorist camp in Syria. And, today, the Israeli army released a map purporting to show the homes and offices of Palestinian terrorists in the Syrian capital of Damascus. Syria says radical Islamists maintain only media offices in Damascus.

Still ahead here: Hanging chads haven't held up this election. Frank Buckley will have a report from the polling booths in California, Burbank, California, to be specific. And our Wolf Blitzer will be joining us live from Los Angeles.

Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Joining me now for more on the White House leak is the chairman of the Senate Select Committee on Intelligence. Senator Pat Roberts joins us tonight from Capitol Hill.

Senator, good to have you with us.

SEN. PAT ROBERTS (R), KANSAS: Always good to be with you, Lou. Thank you very much.

DOBBS: The White House deadline passed. That information is now being looked over by the general counsel. The Justice Department investigation is under way. Give us your best assessment as to where this is going to lead.

ROBERTS: Well, I hope it leads, as the president wants, to find out who actually leaked this information, and there will be a prosecution, a criminal prosecution.

This is an old story, Lou. It came in the front door. We were aware of this a month ago in the Intelligence Committee, out the back door, back in the front door again, and, so, consequently, is a very serious matter. If you reveal the name of somebody who has a covert mission in any one of our agencies involved with intelligence, it's a very serious matter, as well as revealing anything in terms of national intelligence.

DOBBS: Senator, have you, as the chairman of the committee, part of the Republican leadership, called up the White House at any time during that point and just said, what in the world are these people thinking about?

ROBERTS: Well, maybe we had those thoughts privately.

But I think it's a better judgment not to be calling the White House in the middle of a criminal prosecution. They do have a unit, a task force, a section, in the FBI who does this. It's the counterespionage section. They're very good at it. They are simply career employees who have been doing it a long time.

And, you know, in this town, a leak is not a leak until you get wet. And we're all swimming here, whether it's an agency, or whether it's the White House, or whether it's members of Congress. But this is a very professional outfit. I think they'll get to the bottom of it. But, no, there's been no contact, other than some members have made very strong personal statements. But I'm sure they haven't contacted the White House.

DOBBS: Well, I was talking about before last Friday, when the Justice Department made its decision.

There's so much involved here. There's legal process. There is the investigation. But going back to the incident itself, are you surprised, as a man as knowledgeable and experienced in intelligence as anyone in the Capitol, that apparently the vice president's office asked an ambassador in the Clinton administration to go to Niger to find out if Iraqis were looking for uranium?

ROBERTS: In a word, yes.

And in the inquiry that we are conducting, we are looking at the total picture of simply how this was handled. It was handled in a very unique way. You would have thought, under the circumstances, with the seriousness of this, that there would have been a team probe, if you will, in regards to the mixed reporting that was there, and, by the way, is still there. And this process leaves a lot of question.

And so we're going to be dealing with that in regards to exactly how the CIA really did handle this. And it's very puzzling to me and very troubling to me.

DOBBS: Senator, we're now well beyond two years in the war against terror that this nation declared, involved in hostilities against Saddam Hussein, against the Taliban and Afghanistan.

And yet someone in this administration, at least two individuals, but certainly one -- perhaps two individuals, but certainly one -- leaked the name of a CIA officer to a journalist. What does that say about the environment right now in Washington and obviously within some parts of this administration?

ROBERTS: Well, basically you've got to figure out whether this was on purpose or for revenge or for some strange political motive, which I can't figure out, or if it was simply inadvertent.

If in fact somebody in the press asked the question you just asked of me, isn't this a little strange -- a strange way to handle it from the standpoint of the CIA or the administration, perhaps somebody said, "Well, yes it is, and, as a matter of fact, let me tell you how he got selected," not knowing, of course, at that particular time that this was a person who had a covert mission.

That was my original take on this, not from anything I've learned in the Intelligence Committee, but just plain common sense. I don't see any political gain to this whatsoever. As a matter of fact, we have a firestorm on our hands. And if anybody was that just plain dumb, I just can't really figure it out.

DOBBS: The administration today, the president's counsel, suggesting that perhaps executive privilege might come in to play in this investigation, if certain classified material had to be shared with the Justice Department, leading the inquiry. What is your reaction to even the suggestion, the intimation that executive privilege might be exerted here?

ROBERTS: Well, it depends on the information. I doubt very seriously if that's the case.

But if that is information, they have every right to exert the executive privilege. But you and I both know that that will stir up a brouhaha on top of a brouhaha.

DOBBS: Senator Pat Roberts, we thank you very much for being with us.

ROBERTS: OK. Always a pleasure, Lou. Thank you.

DOBBS: Senator Pat Roberts, chairman of the Senate Select Committee on Intelligence.

Back to California now. As the recall election is in its final hours, today's vote is taking place despite some complaints about punch card voting machines, those machines used in six of California's biggest counties. And there are even some complaints about the automated computer machines as well. We shouldn't neglect those either.

Frank Buckley is in Burbank, California and has more -- Frank.

FRANK BUCKLEY, CNN CORRESPONDENT: Well, Lou, you're right, Los Angeles County, where we are, Burbank, the city, one of the counties where for the last time these punch card machines are being used and we want the viewers to see exactly what we're talking about so that you see how the vote is taking place here in California.

This is a demonstration ballot. And what you do is you stick it in here and you have it lined up on the red dots and then you open your ballot and the first question here that voters are seeing is, shall Gray Davis be recalled, removed from the office of governor? What a person does is go there with their stylus and they vote yes or no, and then begins seven pages of candidates. All of these people are running for replacement governor ....

DOBBS: Frank.

BUCKLEY ...if Gray Davis, is in, fact recalled. So those are all of the people who are on the ballot.

We're told that voter turnout right now is fairly heavy anecdotally in Los Angeles County. There are 25.9 percent of the registered voters as of this hour have cast their ballots. That compares to about 20.71 percent at the same time last year.

Lou, I wanted to let you hear at least the voice of one voter today who already cast her ballot. This is Michelle Pietrantonio. And Michelle, you were telling me you are a union member. You have cast your ballot and you're willing to share with us who you voted for.

MICHELLE PIETRANTONIO, VOTER: I voted for no recall, as well because Gray Davis is a union supporter and I voted for Bustamante.

BUCKLEY: And you were saying that your union affiliation, and that's one of the groups that Gray Davis was lobbying hard, that did influence your vote?

DOBBS: What...

PIETRANTONIO: Yes, somewhat it did. I did see it come in the mail. And I knew he supported our unions and I'm right there with him.

BUCKLEY: OK. Well, thank you very much, Michelle.

And that's just one voice, obviously, Lou. Many others with different views on this election. But you can see behind me here a fairly heavy turnout here at this location. Statewide, we're told that at least they're expecting a 60 percent turnout, perhaps as much as a 65 percent turnout -- Lou.

DOBBS: And impressive turnout. I have to tell you, Frank, as you were showing us that ballot, all I can think of -- I don't know I could speak for even a sizable number of our viewers, but I've just about seen all of the ballots on television I want to for a while going back perhaps three years.

Frank, thank you. Frank Buckley.

As we said, Wolf Blitzer is anchoring our election coverage this evening and through tomorrow. The polls close tonight at 11:00 p.m. Eastern and 8:00 p.m. Pacific and joins us now from Los Angeles.

Wolf, this -- this has the makings of being a long night for you, for voters and for our viewers.

WOLF BLITZER, CNN ANCHOR: It certainly does, Lou. Potentially could be a very long night, although since I got out here, speaking to average Californians, not only Republicans but a lot of Democrats and independents, it's been surprising, somewhat surprising, to hear the kind of animosity toward the incumbent governor, Gray Davis. There's a lot of hard feelings here from a state that in recent years has been very Democratic. If that kind of animosity continues to grow, despite the allegations of sexual misconduct that came out in the last few days by "The Los Angeles Times" against Arnold Schwarzenegger, Gray Davis could be in trouble. But a lot depends on how those voters, those union, the Democratic base managed to get that vote out. It could be a short night, could be a long night.

DOBBS: And I know which one you're pulling for, I suspect I know, Wolf.

As we look at these polls close, I thought it was interesting in talking with Ron Brownstein and with Bill Schneider and, of course, Jeff Greenfield, who will be with you throughout the evening, they're look at this as though the polls are pretty good indicators right now. Ron Brownstein in particular thinks that -- going to the point that you were making, that Davis is simply so unpopular that he just can't overcome that. Your thoughts?

BLITZER: I think they're right. I think the polls have been very consistent, at least until the last few days. There's no doubt that Gray Davis is very unpopular in this state and Arnold Schwarzenegger seems to a lot of people, including some Democrats almost like a breath of fresh air, despite the allegations that came out in the last few days.

One of the factors that a lot of the polls may not necessarily have -- there's really no precedent in this election, with 135 candidates, so some of the base numbers, some of the parameters may be off somewhat. But the polls have been very consistent and the polls may turn out to be right tonight, they may turn out to be not so right. We'll just have to wait until 11:00 Eastern to find out.

DOBBS: That's why we'll all be watching you tonight, Wolf. Drink some coffee. I know you're going to have a long evening and I know you're more than strong enough for those wee hours looking forward.

Wolf, thank you very much. Wolf Blitzer leading CNN's election coverage tonight along with the entire CNN election team.

Tonight's thought is on voting. "Always vote for principle. Though you may vote alone, and you may cherish that your vote is never lost." That from John Quincy Adams, sixth president of the United States.

In tonight's poll, we want to know what you think of the media coverage of the California election. Our question for you tonight -- "In general, do you believe coverage of the California recall election has been biased? Yes, pro-Republican? Yes, pro-Democratic? No, unbiased." Please vote on our Web site, cnn.com/lou. We'll have the results later in the show.

Coming up next, our series of special reports, "The Great American Giveaway, " Tonight, healing the world. Bill Tucker reports on what happens to the billions of dollars this country sends overseas every year in medical aid and medical care and where the money is spent. That's next.

Stay with us.

(COMMERCIAL BREAK)

ANNOUNCER: LOU DOBBS TONIGHT continues. Now, "The Great American Giveaway."

DOBBS: "The Great American Giveaway." Tonight, focusing on healing the world.

The United States sends more than $14 billion of medical aid and care around the world every year. Some of that from the government, even more from private sources.

Bill Tucker is here with the story -- Bill.

BILL TUCKER, CNNfn CORRESPONDENT: Lou, the money that we give to fund medial and health causes around the world is by far and away the least controversial of all our foreign aid. And in anyone's book, it is a staggering amount of money.

(BEGIN VIDEOTAPE)

TUCKER (voice-over): The United States spends more money to help the world's sick than any other country. This year, that means $3 billion and that's just the government's side of the story. Officials in the U.S. Agency for International Development estimate that American businesses, foundations, faith-based groups and individuals will give another $11 billion this year alone.

DR. ANNE PETERSON, ASSISTANT ADMINISTRATOR, GLOBAL HEALTH, USAID: The absolute driving force is that the American people are a compassionate people and if they believe that giving in health areas can make a real difference, then they want to do that.

TUCKER: Africa is the continent where much of that aid gets focused. The money goes to fund HIV-AIDS prevention, malaria, tuberculosis, research and treatment, basic health programs like prenatal care, child vaccinations. And if you need a reason beyond humanitarian for all our giving, there is a simple economic argument...

LAEL BRAINERD, BROOKINGS INSTITUTE: The research here is pretty breathtaking in its conclusion. The reduction of malaria in an economy can actually be seen in 1 percent higher growth over several years.

TUCKER: Here's the budget breakdown. USAID for global health program is a 1.5 billion. The Department of Health and Human Services will distribute $752 million. And U.S. government funding for international organizations has a budget of $617 million. Part of that money to fund the World Health Organization where we're the biggest donor. We're also the biggest sponsor of the International Red Cross another $150 million there. But because we don't advertise our generosity or perhaps because the aid is not distributed by Americans in uniform, Americans, despite the enormous generosity, don't always get the credit they deserve.

MARC MILES, HERITAGE FOUNDATION: It may be partially that or may be partially that it's like the rich guy in town, everybody knows he's rich, everybody expects him to hand out money to all of the charities. And when he hands money out to all of the charities people say, of course, he has all of the money. So he doesn't really get credit for he does.

(END VIDEOTAPE)

TUCKER: Some examples of giving in the private sector include, Lou, the pharmaceutical industry which from 1998 to 2001 gave nearly $2 billion in drugs and cash donations to the developing countries.

DOBBS: In absolute dollars how much do other developing nations, Japan, Germany, France, the U.K. give?

TUCKER: The United States is the leading giver. Japan comes in second, they give half of what we do. The United Kingdom is right next in a close third. You, talk about France and Germany, France gave in 1998 about a seventh of what the United States did.

DOBBS: All right, Bill Tucker, thank you. Tomorrow on our special report "The Great American Giveaway," policing the world.

Just how much does this country spend to help the world keep the peace?

And we'll be asking another question.

Just whether or not we should be the world's policeman?

That's tomorrow night. Please join us.

U.S. monetary aid isn't the only item flowing to other countries. Many U.S. companies tonight send jobs overseas because of cheap labor. For months we have been reporting on the "Exporting of America." Tonight we add two more companies to the list. Cooper Tires saying it will transfer the production of some 300,000 tires a year to a company in China. And Ford Motor is expanding its plant in Mexico. The move will add, 2,000 jobs to that plant. Ford, by the way, said it would build a supplier park in Mexico, creating an additional 3,000 jobs. Ford recently announced it will close four U.S. factories and a truck assembly plant in Canada. Those closings to result in the loss of 5,000 jobs. The "Exporting of America."

Still ahead here, the Supreme Court is about to begin a new term. Its decisions could well affect the next big political race next year's presidential election.

Jeffrey Toobin our CNN legal analyst joins me next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The California recall election still continuing., and of course, overriding even the California recall election is the political race for the White House 2004. A decision that could affect that campaign greatly is expected in the coming months from the Supreme Court. Campaign finance only one of several key issues the court is expected to decide during its new term which is now under way.

Joining me, CNN legal analyst Jeffrey Toobin. Jeff, good to have you here.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Hi, Lou.

DOBBS: I noticed in going through the cases a lot are emanating, appropriately it seems, from the state of California on whether or not the state of California can require a company to invest in a certain way, that's one of the issues. Going back to the 9th Circuit Court on a host of issues, the Pledge of Allegiance, all of that coming out of California. Lets start the Pledge of Allegiance. Your turn.

TOOBIN: The case that won't go away. If you remember it more then a year ago now that the 9th Circuit Court of appeals ruled that the Pledge of Allegiance, including the words "under god" was unconstitutional. That widely decision denounced, widely expected to be overturned, but it has not yet been overturned and the court has not decided whether to review it. We should hear any day whether they will. It's widely believe they'd will try to overturn it quickly.

DOBBS: And a special session on campaign finance, the court hearing arguments. Should we then infer we'll hear a court decision on that?

TOOBIN: Probably not. This is one of the most complicated area of constitutional law. The issue that they are reviewing is the McCain Feingold finance bill debated for years. Its principal holding was that it ban soft money in these major elections. But think about this...

DOBBS: Everybody was cheering.

TOOBIN: Everybody was cheering. The lower court opinion that the supreme court is reviewing is 1,600 pages long. That's just the opinion, forget the briefs. That gives you an idea...

DOBBS: They need an a good editor.

TOOBIN: ... of the complexity of the issue. I think given that it will take several months to figure that out.

DOBBS: Do you want to hazard a guess as to the outcome?

TOOBIN: I don't think it will be so fractured. Let me guess on the Pledge of Allegiance, that's what I can guess on. That's the easy one.

(CROSSTALK)

DOBBS: The idea that -- well, recovered drug users are to be considered disabled, at least in California I believe, and they're going to decide that as whether or not there can be discrimination or not on that.

TOOBIN: The first Bush administration, Americans with Disabilities Act has turned into one of the biggest litigation factories in the world. That law has generated a tremendous amount of litigation. And the issue of whether I -- someone addicted to drugs is disabled, whether people who are overweight are disabled, those are the cases working their way through the courts now.

DOBBS: School vouchers, giving choice, that has bumped up against in a lot of states some resistance.

TOOBIN: The court has been sympatheticc to school choice. They are likely to allow school choice. But it's a real paradox there because you have the establishment of religion, which is prohibited, but what there plaintiffs are arguing prohibit prohibiting school vouchers you're prohibiting the free exercise of religion. So that's the struggle of court in that case

DOBBS: And you think will we have a decision?

TOOBIN: Certainly, that one by the end of the year.

DOBBS: One that is of pair amount importance of me and those in my age group, reverse age discrimination, that is where company can pay out employees who are older but now some are charging young employees that's reverse age discrimination.

TOOBIN: This is a court of largely senior citizens and the justices are sympathetic to the senior citizens and their issues, not that you're one. They are...

Probably so.

TOOBIN: They -- look for a win on that side in that case.

DOBBS: Miranda, still Miranda.

TOOBIN: Every year there's a Miranda case, one way or the other. They have been protective of the Miranda rule. They have defended it in recent years and they are likely to stay the course on that one, too.

DOBBS: Jeffrey Toobin, as always, we thank you for your insight, analysis and even forecast where you so moved as to the outcome.

Jeffrey Toobin.

A reminder to vote in our poll tonight. The question is obviously on the California recall election. In general do you believe the coverage of the California recall election been biased. Yes, pro-Republican, yes, pro-Democratic, no, unbiased. You can please vote on our Web site cnn.com/lou. We'll have the results for you in just a few moments.

Coming up next, prosecutors say Former Tyco CEO Dennis Kozlowski didn't win the jackpot, he just stole it. We'll have that story, and Christine Romans will have the market for us. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Former Tyco top executives Dennis Kozlowski and Mark Swartz will be found guilty of lying, cheating and stealing, at least that's the view of the prosecutors, that's what they said as their case began in New York State Supreme Court. Tyco's former CEO and chief financial officer standing trial for stealing $600 million from the company through illicit stock sales and unauthorized compensation. Tonight's quote is, by the way, from the proceedings. Quote -- "They were the bosses. They spent a lot of time together. They spent a lot of money together. They stole a lot of money together." Those are the words of Manhattan Assistant District Attorney Kenneth Chaliloux (ph).

Stocks today turned around, scored their fifth straight winning session, in fact. The Dow up almost 60, the Nasdaq up 14, the S&P up almost 5. Christine Romans is here to tell us all about the market.

CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: Well, Lou, the dollar fell to a three-year low versus the yen. And the stock market shook that off finally and decided...

DOBBS: Shook that off.

ROMANS: ... shook it off and decided to choose optimism over third quarter profit. The major averages now within a whisker of their highs for the year. And happy birthday to the bull. Stocks hit five-year lows a year ago today. Since then the Dow and the S&P are up 30 percent. Semiconductors have more than doubled, and the broadest stock market gauge, the Wilshire 5,000 is up 34 percent.

Now, Martha Stewart shares up today 6 percent. Her lawyers filed a motion to drop the obstruction of justice and securities fraud charges against her. Meanwhile, Bank of America hired a special adviser to lead an independent review of its mutual fund trading practices. It promised to pay back more shareholders harmed by improper trading. Also, Franklin Resources confirmed it has been subpoenaed in that mutual fund probe we've been telling you about. The New York Attorney General's Office began this probe just over a month ago, and says it is continuing its investigation. At this point, the focus has been on market timing, and late trading, Lou. But all eyes are on a lot of other parts of the mutual fund business and this expanding probe.

DOBBS: OK. Attorney General Eliot Spitzer, cleaning it up.

ROMANS: Cleaning it up.

DOBBS: And the mutual fund industry apparently trying to get a little bit of a head start on the process. Christine, thanks, Christine Romans. The results now of our poll. The question -- In general, do you believe the media coverage of the California recall election has been biased? Seventy-five percent of you said yes, pro-Republican. Sixteen percent said yes, pro-Democratic; 9 percent said no, unbiased.

Taking a look now at your thoughts. From Louisville, North Carolina, on "The Great American Giveaway" reports here: "Please tell us again what the point is of sending our kids to college? Has anyone considered that without our tax dollars, our U.S. colleges may not be able to continue teaching our technology to foreign students so our management and government can outsource our jobs?" That from Peggy Robbins.

From Palouse, Washington, illegal aliens. "If we are serious about curbing illegal immigration, we have to stop hiring them. Then they will stop coming." That from Charlotte Omoto.

From Bayshore, New York: "I am from Germany. I became a citizen of this country. I did not expect to be catered to. I also learned the language of this country: English! Love your show, Lou." Sandy O'Hara.

Sandy, we try to speak the language every once in a while here, too.

On the carrier job cuts: "Those jobs take with them federal and New York State income taxes, corporate and person Social Security taxes, local sales taxes and corporation property taxes. I find it comforting that none of these government agencies need these or any other resources from companies that it allows to leave the USA." That from Ron Buckley.

From San Francisco tonight on the California recall election: "As a California Democrat, I must observe that "The New York Times," "The Los Angeles Times" and the Democrats seem to have found WMDs: Weapons of Mass Defamation." Douglas Smith.

From Lompoc, California, on nursing: "Until nursing is given the respect it deserves, there will continue to be a shortage of nurses. It is time to increase wages, decrease patient loads and recognize the value of nurses." That from Debbie Eckles.

We enjoy hearing from you always. Please e-mail us at loudobbs@cnn.com.

That's our show for tonight. Thanks for being with us. Tomorrow in our special report, "The Great American Giveaway," we take a look at how America is policing the world. Ron Brownstein will be here to help us sort through the results of the California recall election.

For all of us here, good night from New York. "ANDERSON COOPER 360" is next.

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 October 7, 2003 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is LOU DOBBS TONIGHT for Tuesday, October 7. Here now, Lou Dobbs.
LOU DOBBS, CNN ANCHOR: Good evening.

Tonight in California, it is all over but the voting. Throughout this day, it appears to be a record turnout for a nonpresidential election. The polls will be open for another five hours. Out of 135 candidates, only four managed to establish themselves in the polls, Arnold Schwarzenegger taking the lead for the Republicans, Lieutenant Governor Cruz Bustamante for the Democrats.

But the most important issue of all, will Californians vote yes or no to recall their governor? We'll be covering this election, as you would expect, throughout the evening and the early hours of tomorrow.

We begin our coverage tonight with correspondent Candy Crowley, with the Davis campaign at the Biltmore Hotel in Los Angeles -- Candy.

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Lou, you can tell that this has not been a usual campaign for Gray Davis.

In fact, just about 11 months ago, he won a four-year term. No trappings of an election night in here, simply a couple of flags and a big "no recall" superimposed on the wall, a very low-key place and low-key stage from which to do whatever he will do at the end of the evening.

The fact of the matter is that, when Gray Davis went to vote, as all of them did, he was followed by a pack of reporters and remained very upbeat.

(BEGIN VIDEO CLIP)

GOV. GRAY DAVIS (D), CALIFORNIA: I feel absolutely terrific. I have always trusted the voters of California. I know they're going to do the right thing today. This is a big day for California. It's particularly a big day for working families. And I ask everyone to make an effort to go out and vote.

(END VIDEO CLIP)

CROWLEY: It is cheery and it is upbeat. And, indeed, as you mentioned, Lou, quite a few people, a record number for a nonpresidential year, appear to be going to the polls. I will tell you, though, that, privately, they are a lot less upbeat in the Gray Davis camp. Many of them believe that this is still a very, very tough uphill battle. They are not very optimistic -- Lou.

DOBBS: Candy, thank you very much -- Candy Crowley.

Should California voters approve this recall, Arnold Schwarzenegger is the front-runner to replace Governor Davis. Schwarzenegger appeared to be in an upbeat mood as he voted near his home in Pacific Palisades.

Kelly Wallace is with the Schwarzenegger campaign at its headquarters in Los Angeles -- Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Lou, there's a great deal of spinning going on.

But I can tell you that aides to Arnold Schwarzenegger are very upbeat, because they're doing something they haven't done over the past few days. They are giving us the specific overnight internal tracking poll numbers, numbers which they say show this recall passing and Arnold Schwarzenegger winning. They also say they are not seeing damage to the candidate's support after a few days of very tough allegations concerning Schwarzenegger's conduct.

Polls aside, though, no one knows ultimately what these voters will decide to do. So, when Schwarzenegger and his wife, Maria Shriver, were voting today, the candidate saying he's not paying attention to the polls, that he's focused on getting his message out. He also was a bit more spiritual than we've seen in the past. He said this decision is now in the hands of God.

After he and his wife voted, well, he was mobbed by a pack of reporters, local, national, international, and entertainment reporters following his every move. It has been an unconventional campaign from the start, the day Arnold Schwarzenegger announced his candidacy on "The Tonight Show." But, Lou, it is wrapping up the old-fashioned way, because Arnold Schwarzenegger is like every other political candidate around. He must now wait to see what the voters decide -- Lou.

DOBBS: Kelly, thank you very much -- Kelly Wallace.

Schwarzenegger's closest rival in the polls is Lieutenant Governor Cruz Bustamante. He said today this election will determine the leadership of California for the next decade.

Dan Lothian is covering the Bustamante campaign and joins us now from Sacramento -- Dan.

DAN LOTHIAN, CNN CORRESPONDENT: Well, Lou, aides for Cruz Bustamante say that he will be spending the day with his family. He will be here in Sacramento, where he will be watching the numbers coming in tonight. Early in the day, this morning, he was at an elementary school here in Sacramento casting his vote. He was speaking in both English and Spanish. And he said, after this hard battle, this recall battle, this is the only day that counts, Election Day.

(BEGIN VIDEO CLIP)

LT. GOV. CRUZ BUSTAMANTE (D-CA), CALIFORNIA GUBERNATORIAL CANDIDATE: In the end, this is a real serious issue. It's a very serious vote. It's going to determine the leadership for California for the next decade. You have to be able to decide.

(END VIDEO CLIP)

LOTHIAN: Over the past few weeks, the polls have showed that he has been losing a lot of ground. Yesterday, he was in East Los Angeles, a mostly Latino community.

He was talking to folks there, voters there, and telling them that he needs their help in order to win -- Lou.

DOBBS: Dan, thank you very much -- Dan Lothian.

State Senator Tom McClintock has, as we have been reporting, for the most part, stayed above the fray and certainly trash politics. That may be in part because he's well behind Schwarzenegger and Bustamante in the polls. Today, McClintock predicted an election surprise as he voted at a community center in Los Angeles.

Miguel Marquez reports from the McClintock headquarters in Sacramento -- Miguel.

MIGUEL MARQUEZ, CNN CORRESPONDENT: And what politician wouldn't predict an election surprise there, Lou?

He cast his vote in his home district of Thousand Oaks today, right north of Los Angeles. And he was seen as somebody who might be a spoiler in this thing for Schwarzenegger -- he's a little more conservative -- and that would split the conservative votes with Schwarzenegger, causing Bustamante, then, to win the election. He's sunk back down in the polls as of late. And he told supporters gathered at the polling station today to vote their conscience, and, by this evening, he, McClintock, would be governor.

We just have a few more hours to find out if he's right -- Lou.

DOBBS: Miguel, thank you very much.

Joining me now are our analytical heavyweights. They are three of the best in the business, "Los Angeles Times" columnist, CNN analyst Ron Brownstein, CNN senior political Bill Schneider and CNN senior analyst Jeff Greenfield.

Bill, let's start, if we may, with you.

Just how heavy does it appear this turnout will be today? WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, it looks like it's going to be very heavy, especially for a special election, probably as high as most governor's elections and much higher than the election last year. Last year brought out about 7.7 million. The early estimates are this could be as many as 10 million voters.

DOBBS: And, Ron, you have been watching these polls very carefully. The sexual harassment charges, all that has been directed at Schwarzenegger, the apparent late surge by Governor Davis, where is it, in your judgment, that we stand tonight, besides at Election Day?

RON BROWNSTEIN, CNN POLITICAL ANALYST: We're at the end of the road, Lou, or maybe not.

I think this race looks a lot, to me, like many races where you have an incumbent with a low approval rating. The one thing that's been constant from the beginning, as Bill well knows, is that most voters in California think Gray Davis is not doing a good job as governor. And their inclination in that circumstance is to replace the incumbent.

Now, what's happened in the last couple weeks is that they have had growing doubts about the most likely replacement, Arnold Schwarzenegger. So you see turbulence in the polls as a result of that. But I do think that, unless Davis really is able to change the perception of voters about his performance, in the end, that is the fact that weighs the most. And it's still a very uphill climb to win an election when two-thirds of the people think you're doing a bad job.

DOBBS: Jeff your thoughts as to what are the best indicators for the outcome right now. What are you looking for?

JEFF GREENFIELD, CNN SR. ANALYST: Well, I think, in normal elections, they say a high turnout benefits Democrats, because people who vote less often tend to be Democrats, lower income, less educated.

In this election, unusually, by most calculations -- and I certainly think this is right -- a high turnout, if there is one, is very good news for Schwarzenegger and bad news for Davis.

DOBBS: Really?

GREENFIELD: Because it suggests that Schwarzenegger will have tapped into a kind of discontent, in sort of the same way Jesse Ventura did in Minnesota a few years ago, and said to people, I know you think the system is broken; it's all fixed; the politicians run everything. But here is a recall system, a mechanism, that gives you the power to take a two-by-four to those guys you don't like.

So, in my view, a high turnout -- and it's all anecdotal so far. We don't really know.

DOBBS: Sure.

GREENFIELD: ... is, I think, going to help Arnold. DOBBS: Let me turn this question to each of you. What is your best assessment of the prospects of a surprise here, the idea that it appears the latest polls showing that the recall's going to succeed? How confident are you gentlemen in these polls right now?

And I'll start with you, Bill.

SCHNEIDER: Well, I'm supposed to be confident in the polls. And I think the question about the polls is very simple.

The polls were very clear about two weeks ago, after the one debate that Arnold Schwarzenegger participated in, that he had momentum, that the recall would succeed, that he would be elected. Suddenly, these allegations came out from "The L.A. Times," "The New York Times" and other sources about his past sexual misconduct, some of which he acknowledged, and about other charges.

Did those last-minute charges make a difference? That's always the big question. There are good reasons to believe they may not make a difference, because, they came so late in the game, a lot of voters suspected that they came out for political reasons, that the media were in cahoots somehow with the Democrats. And they tended to discount them because of the timing.

So these charges probably would have made an enormous difference early on. The question is, did they make a difference coming as late as they did? Did they turn those polls around?

DOBBS: Ron, your thoughts?

BROWNSTEIN: Well, I was just going to say, even if the recall result itself may be pretty clear -- I think most -- look, we have to wait and see what the voters do, but most Democrats, I think, were concerned last night that, while support for the recall had eroded, it has stabilized above 50 percent.

Even if Davis is recalled, I think there are some interesting questions out there tonight, in particular what kind of mandate and what kind of leverage Arnold Schwarzenegger comes in with? I think he would be in a much stronger position if he can pull more votes, in effect, than vote to keep Davis in office. Davis is the only one that needs to get 50 percent. And it's possible that more people will vote to keep Davis than to elect Schwarzenegger as governor. That would make it hard for him to deal with the Democratic-controlled legislature. The bigger the total he can get, the bigger the total for the recall, the stronger the position he's going to be in.

DOBBS: Jeff, I'm one of those people who, when I hear mandate, whether we're talking about Republicans or Democrats, I start getting a little uncomfortable.

To me, there are elections and people are elected. When I hear mandate, I get nervous. Is mandate important in the outcome here?

GREENFIELD: Well, I think there are times when, in fact, you do see it. I agree with your that it's more elusive than that. I think you can argue that Ronald Reagan had a mandate in 1980 to change course, that Lyndon Johnson had a mandate in 1964 to build a great society. The problem is, what Schwarzenegger has been given a mandate -- and it was very interesting how he ran this campaign. He was in eff -- not in effect, in so many words, he was saying remember to people, remember how I dealt with the bad guys in the movies? That's what I'm going to do as governor.

So if his voters, particularly these first-time, disaffected, angry voters expect Schwarzenegger, whatever the number he gets, to go up to Sacramento and terminate the car tax, for instance, without a whole lot of complexity, deal with a Democratic legislature and wipe away their discontent, he's going to find a very disappointed electorate.

DOBBS: Cruz Bustamante today said that the outcome of this election will determine leadership in California for the next decade. Do you agree with that, Ron?

BROWNSTEIN: Well, candidates often say, this is the most important election that they've ever been in. And it's because they're in it and it's the most important to them.

I'm not sure. I think that, if Schwarzenegger is elected governor, as I said, he will probably not have majority support going in. He will have to consolidate support, expand his base, show voters who do not support him that he's worthy of staying as governor. And in a Democratic-leaning state, Lou, I think you have a very competitive gubernatorial election in 2006, even if he is elected.

So I'm not sure that Bustamante, apart from trying to fire up his troops, is really accurately reflecting that this really sets the course for a sustained period.

DOBBS: Bill, Ron, Jeff, we thank you, gentlemen. I know you're going to be busy working tirelessly throughout the evening and the morning. So we thank you very much for your time here. Thank you, gentlemen.

And, as you know, CNN will be covering this election throughout the night and the early hours of tomorrow. We will begin by reporting the first exit polls as soon as the polling booths close. Those polling booths close at 11:00 Eastern time, 8:00 p.m. Pacific.

Wolf Blitzer, who is anchoring our election coverage tonight, joined by the CNN election team, including Ron and Bill and Jeff, of course -- Wolf will also be joining us on this show in just about 20 minutes with his analysis of events on this Election Day and what we can expect this evening.

Still ahead, I'll be joined by Senator Pat Roberts, the chairman of the Senate Intelligence Committee. We'll be talking about the latest developments in the Department of Justice investigation into the leak of a CIA officer's name, truth or consequences -- and it is truth or consequences -- as the deadline has passed for White House staffers to turn over all relevant documents related to that leak. Senior White House correspondent John King will report.

"The Great American Giveaway," our special report. Tonight, a look at how much medical aid the United States sends to other countries and what, if anything, we receive in return.

And later in the show: The Supreme Court has opened its fall term. We're joined by our legal analyst, Jeffrey Toobin. We'll take a look at what the court will be hearing and deciding, including a challenge to campaign finance reform.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: The war goes on in Iraq. Terrorists killed another three American soldiers in the past 24 hours; 321 American troops have now been killed since the start of the war against Saddam Hussein; 202 were killed in combat, 119 in accidents. Another 1,749 have been wounded in Iraq, most of them by hostile fire. Three soldiers were today wounded in Tikrit as well when a bomb exploded under their Humvee.

High drama at the White House tonight. The deadline for the staff to hand over documents in the CIA investigation passed just over one hour ago. Investigators, Justice Department investigators, are trying to find out who leaked the name of a CIA officer to nationally syndicated newspaper columnist Robert Novak.

Senior White House correspondent John King has the report -- John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: And, Lou, it is the Justice Department that wants those documents. The actual Justice Department deadline is two weeks away from tonight.

But White House counsel Alberto Gonzales set a 5:00 p.m. deadline tonight, because the White House wants to get this over with as quickly as possible. Many aides at the White House still gathering those documents an hour after the deadline. They say they are trying to comply by as soon as possible, hopefully this evening.

The president was asked about this a bit earlier today at a Cabinet meeting. He said he wants to get to the bottom of this and find out the truth as much as anyone. But when asked if he was confident the leaker would in fact be found, the president voiced some skepticism.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Now, this is a large administration and there's a lot of senior officials. I don't have any idea. I'd like to. I want to know the truth. That's why I've instructed this staff of mine to cooperate fully with the investigators.

(END VIDEO CLIP) KING: You heard the president say there are a lot of senior officials. His press secretary today conceded that he went to three of them and asked them directly if they had any role in the leak at all, Karl Rove, the president's top political adviser, Lewis Libby -- he is the vice president's chief of staff and a key member of the national security team here at the White House -- and Elliott Abrams, who is a top Middle East adviser on the National Security Council staff.

Scott McClellan explained his reasons at the White House briefing of why he specifically asked these three aides if they had anything to do with the leak.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: Unfortunately, in Washington, D.C., at a time like this, there are a lot of rumor and innuendo. They're unsubstantiated accusations that are made. And that's exactly what happened in the case of these three individuals.

They're good individuals. They're important members of our White House team. And that's why I spoke with them, so that I could come back to you and say that they were not involved.

(END VIDEO CLIP)

KING: Now, Lou, some Democrats complaining tonight about the president's lawyer looking at all these documents before they are turned over to investigators. White House officials say that is standard operating procedure, although they will not flatly rule out here at the White House of invoking executive privilege and keeping some classified material out of the hand of Justice Department investigators, if they determine here at the White House that it is sensitive information with regards to national security, but not relevant to the ongoing investigation -- Lou.

DOBBS: Obviously, this White House filled with historians, as well as the entire city of Washington. Executive privilege here is an explosive concept and a privilege to assert. How concerned are they about even bringing up the issue in this important investigation?

KING: Well, reporters brought it up.

And that is one of the reasons you have the 5:00 deadline tonight, even though the Justice Department says, take two more weeks, if you want. The White House views this, increasingly, as both a serious legal investigation, but also a distracting political debate. Reporters asked, is it possible you would invoke executive privilege? Scott McClellan, the press secretary, saying it's premature to even ask that question. But he did acknowledge much of the information being collected is likely to be classified. And he said he could not rule it out, Lou.

DOBBS: And what is unusual about that is that this information will be turned over to the Justice Department, of course, part of the administration. Thank you very much, John King, our senior White House correspondent.

Well, coming up shortly, I'll be talking with Senator Pat Roberts. Senator Roberts is the chairman of the Intelligence Committee. We'll be talking about the progress of this investigation into the leak of the CIA officer's name.

Turkey's Parliament today voted to allow sending peacekeepers to Iraq. However, Iraq's Governing Council made clear that those Turkish troops would not be welcome. The U.S.-appointed council released a statement today saying any interference from a neighboring country to Iraq is simply unacceptable. The United States has requested Turkey's help in Iraq and agreed to loan Turkey $8.5 billion for its support.

An uncompromising threat from Israel today. Prime Minister Ariel Sharon said Israel is prepared to strike its enemies anywhere it finds them and with any means available to the state of Israel. Sharon's comments come two days after an Israeli airstrike on a suspected terrorist camp in Syria. And, today, the Israeli army released a map purporting to show the homes and offices of Palestinian terrorists in the Syrian capital of Damascus. Syria says radical Islamists maintain only media offices in Damascus.

Still ahead here: Hanging chads haven't held up this election. Frank Buckley will have a report from the polling booths in California, Burbank, California, to be specific. And our Wolf Blitzer will be joining us live from Los Angeles.

Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Joining me now for more on the White House leak is the chairman of the Senate Select Committee on Intelligence. Senator Pat Roberts joins us tonight from Capitol Hill.

Senator, good to have you with us.

SEN. PAT ROBERTS (R), KANSAS: Always good to be with you, Lou. Thank you very much.

DOBBS: The White House deadline passed. That information is now being looked over by the general counsel. The Justice Department investigation is under way. Give us your best assessment as to where this is going to lead.

ROBERTS: Well, I hope it leads, as the president wants, to find out who actually leaked this information, and there will be a prosecution, a criminal prosecution.

This is an old story, Lou. It came in the front door. We were aware of this a month ago in the Intelligence Committee, out the back door, back in the front door again, and, so, consequently, is a very serious matter. If you reveal the name of somebody who has a covert mission in any one of our agencies involved with intelligence, it's a very serious matter, as well as revealing anything in terms of national intelligence.

DOBBS: Senator, have you, as the chairman of the committee, part of the Republican leadership, called up the White House at any time during that point and just said, what in the world are these people thinking about?

ROBERTS: Well, maybe we had those thoughts privately.

But I think it's a better judgment not to be calling the White House in the middle of a criminal prosecution. They do have a unit, a task force, a section, in the FBI who does this. It's the counterespionage section. They're very good at it. They are simply career employees who have been doing it a long time.

And, you know, in this town, a leak is not a leak until you get wet. And we're all swimming here, whether it's an agency, or whether it's the White House, or whether it's members of Congress. But this is a very professional outfit. I think they'll get to the bottom of it. But, no, there's been no contact, other than some members have made very strong personal statements. But I'm sure they haven't contacted the White House.

DOBBS: Well, I was talking about before last Friday, when the Justice Department made its decision.

There's so much involved here. There's legal process. There is the investigation. But going back to the incident itself, are you surprised, as a man as knowledgeable and experienced in intelligence as anyone in the Capitol, that apparently the vice president's office asked an ambassador in the Clinton administration to go to Niger to find out if Iraqis were looking for uranium?

ROBERTS: In a word, yes.

And in the inquiry that we are conducting, we are looking at the total picture of simply how this was handled. It was handled in a very unique way. You would have thought, under the circumstances, with the seriousness of this, that there would have been a team probe, if you will, in regards to the mixed reporting that was there, and, by the way, is still there. And this process leaves a lot of question.

And so we're going to be dealing with that in regards to exactly how the CIA really did handle this. And it's very puzzling to me and very troubling to me.

DOBBS: Senator, we're now well beyond two years in the war against terror that this nation declared, involved in hostilities against Saddam Hussein, against the Taliban and Afghanistan.

And yet someone in this administration, at least two individuals, but certainly one -- perhaps two individuals, but certainly one -- leaked the name of a CIA officer to a journalist. What does that say about the environment right now in Washington and obviously within some parts of this administration?

ROBERTS: Well, basically you've got to figure out whether this was on purpose or for revenge or for some strange political motive, which I can't figure out, or if it was simply inadvertent.

If in fact somebody in the press asked the question you just asked of me, isn't this a little strange -- a strange way to handle it from the standpoint of the CIA or the administration, perhaps somebody said, "Well, yes it is, and, as a matter of fact, let me tell you how he got selected," not knowing, of course, at that particular time that this was a person who had a covert mission.

That was my original take on this, not from anything I've learned in the Intelligence Committee, but just plain common sense. I don't see any political gain to this whatsoever. As a matter of fact, we have a firestorm on our hands. And if anybody was that just plain dumb, I just can't really figure it out.

DOBBS: The administration today, the president's counsel, suggesting that perhaps executive privilege might come in to play in this investigation, if certain classified material had to be shared with the Justice Department, leading the inquiry. What is your reaction to even the suggestion, the intimation that executive privilege might be exerted here?

ROBERTS: Well, it depends on the information. I doubt very seriously if that's the case.

But if that is information, they have every right to exert the executive privilege. But you and I both know that that will stir up a brouhaha on top of a brouhaha.

DOBBS: Senator Pat Roberts, we thank you very much for being with us.

ROBERTS: OK. Always a pleasure, Lou. Thank you.

DOBBS: Senator Pat Roberts, chairman of the Senate Select Committee on Intelligence.

Back to California now. As the recall election is in its final hours, today's vote is taking place despite some complaints about punch card voting machines, those machines used in six of California's biggest counties. And there are even some complaints about the automated computer machines as well. We shouldn't neglect those either.

Frank Buckley is in Burbank, California and has more -- Frank.

FRANK BUCKLEY, CNN CORRESPONDENT: Well, Lou, you're right, Los Angeles County, where we are, Burbank, the city, one of the counties where for the last time these punch card machines are being used and we want the viewers to see exactly what we're talking about so that you see how the vote is taking place here in California.

This is a demonstration ballot. And what you do is you stick it in here and you have it lined up on the red dots and then you open your ballot and the first question here that voters are seeing is, shall Gray Davis be recalled, removed from the office of governor? What a person does is go there with their stylus and they vote yes or no, and then begins seven pages of candidates. All of these people are running for replacement governor ....

DOBBS: Frank.

BUCKLEY ...if Gray Davis, is in, fact recalled. So those are all of the people who are on the ballot.

We're told that voter turnout right now is fairly heavy anecdotally in Los Angeles County. There are 25.9 percent of the registered voters as of this hour have cast their ballots. That compares to about 20.71 percent at the same time last year.

Lou, I wanted to let you hear at least the voice of one voter today who already cast her ballot. This is Michelle Pietrantonio. And Michelle, you were telling me you are a union member. You have cast your ballot and you're willing to share with us who you voted for.

MICHELLE PIETRANTONIO, VOTER: I voted for no recall, as well because Gray Davis is a union supporter and I voted for Bustamante.

BUCKLEY: And you were saying that your union affiliation, and that's one of the groups that Gray Davis was lobbying hard, that did influence your vote?

DOBBS: What...

PIETRANTONIO: Yes, somewhat it did. I did see it come in the mail. And I knew he supported our unions and I'm right there with him.

BUCKLEY: OK. Well, thank you very much, Michelle.

And that's just one voice, obviously, Lou. Many others with different views on this election. But you can see behind me here a fairly heavy turnout here at this location. Statewide, we're told that at least they're expecting a 60 percent turnout, perhaps as much as a 65 percent turnout -- Lou.

DOBBS: And impressive turnout. I have to tell you, Frank, as you were showing us that ballot, all I can think of -- I don't know I could speak for even a sizable number of our viewers, but I've just about seen all of the ballots on television I want to for a while going back perhaps three years.

Frank, thank you. Frank Buckley.

As we said, Wolf Blitzer is anchoring our election coverage this evening and through tomorrow. The polls close tonight at 11:00 p.m. Eastern and 8:00 p.m. Pacific and joins us now from Los Angeles.

Wolf, this -- this has the makings of being a long night for you, for voters and for our viewers.

WOLF BLITZER, CNN ANCHOR: It certainly does, Lou. Potentially could be a very long night, although since I got out here, speaking to average Californians, not only Republicans but a lot of Democrats and independents, it's been surprising, somewhat surprising, to hear the kind of animosity toward the incumbent governor, Gray Davis. There's a lot of hard feelings here from a state that in recent years has been very Democratic. If that kind of animosity continues to grow, despite the allegations of sexual misconduct that came out in the last few days by "The Los Angeles Times" against Arnold Schwarzenegger, Gray Davis could be in trouble. But a lot depends on how those voters, those union, the Democratic base managed to get that vote out. It could be a short night, could be a long night.

DOBBS: And I know which one you're pulling for, I suspect I know, Wolf.

As we look at these polls close, I thought it was interesting in talking with Ron Brownstein and with Bill Schneider and, of course, Jeff Greenfield, who will be with you throughout the evening, they're look at this as though the polls are pretty good indicators right now. Ron Brownstein in particular thinks that -- going to the point that you were making, that Davis is simply so unpopular that he just can't overcome that. Your thoughts?

BLITZER: I think they're right. I think the polls have been very consistent, at least until the last few days. There's no doubt that Gray Davis is very unpopular in this state and Arnold Schwarzenegger seems to a lot of people, including some Democrats almost like a breath of fresh air, despite the allegations that came out in the last few days.

One of the factors that a lot of the polls may not necessarily have -- there's really no precedent in this election, with 135 candidates, so some of the base numbers, some of the parameters may be off somewhat. But the polls have been very consistent and the polls may turn out to be right tonight, they may turn out to be not so right. We'll just have to wait until 11:00 Eastern to find out.

DOBBS: That's why we'll all be watching you tonight, Wolf. Drink some coffee. I know you're going to have a long evening and I know you're more than strong enough for those wee hours looking forward.

Wolf, thank you very much. Wolf Blitzer leading CNN's election coverage tonight along with the entire CNN election team.

Tonight's thought is on voting. "Always vote for principle. Though you may vote alone, and you may cherish that your vote is never lost." That from John Quincy Adams, sixth president of the United States.

In tonight's poll, we want to know what you think of the media coverage of the California election. Our question for you tonight -- "In general, do you believe coverage of the California recall election has been biased? Yes, pro-Republican? Yes, pro-Democratic? No, unbiased." Please vote on our Web site, cnn.com/lou. We'll have the results later in the show.

Coming up next, our series of special reports, "The Great American Giveaway, " Tonight, healing the world. Bill Tucker reports on what happens to the billions of dollars this country sends overseas every year in medical aid and medical care and where the money is spent. That's next.

Stay with us.

(COMMERCIAL BREAK)

ANNOUNCER: LOU DOBBS TONIGHT continues. Now, "The Great American Giveaway."

DOBBS: "The Great American Giveaway." Tonight, focusing on healing the world.

The United States sends more than $14 billion of medical aid and care around the world every year. Some of that from the government, even more from private sources.

Bill Tucker is here with the story -- Bill.

BILL TUCKER, CNNfn CORRESPONDENT: Lou, the money that we give to fund medial and health causes around the world is by far and away the least controversial of all our foreign aid. And in anyone's book, it is a staggering amount of money.

(BEGIN VIDEOTAPE)

TUCKER (voice-over): The United States spends more money to help the world's sick than any other country. This year, that means $3 billion and that's just the government's side of the story. Officials in the U.S. Agency for International Development estimate that American businesses, foundations, faith-based groups and individuals will give another $11 billion this year alone.

DR. ANNE PETERSON, ASSISTANT ADMINISTRATOR, GLOBAL HEALTH, USAID: The absolute driving force is that the American people are a compassionate people and if they believe that giving in health areas can make a real difference, then they want to do that.

TUCKER: Africa is the continent where much of that aid gets focused. The money goes to fund HIV-AIDS prevention, malaria, tuberculosis, research and treatment, basic health programs like prenatal care, child vaccinations. And if you need a reason beyond humanitarian for all our giving, there is a simple economic argument...

LAEL BRAINERD, BROOKINGS INSTITUTE: The research here is pretty breathtaking in its conclusion. The reduction of malaria in an economy can actually be seen in 1 percent higher growth over several years.

TUCKER: Here's the budget breakdown. USAID for global health program is a 1.5 billion. The Department of Health and Human Services will distribute $752 million. And U.S. government funding for international organizations has a budget of $617 million. Part of that money to fund the World Health Organization where we're the biggest donor. We're also the biggest sponsor of the International Red Cross another $150 million there. But because we don't advertise our generosity or perhaps because the aid is not distributed by Americans in uniform, Americans, despite the enormous generosity, don't always get the credit they deserve.

MARC MILES, HERITAGE FOUNDATION: It may be partially that or may be partially that it's like the rich guy in town, everybody knows he's rich, everybody expects him to hand out money to all of the charities. And when he hands money out to all of the charities people say, of course, he has all of the money. So he doesn't really get credit for he does.

(END VIDEOTAPE)

TUCKER: Some examples of giving in the private sector include, Lou, the pharmaceutical industry which from 1998 to 2001 gave nearly $2 billion in drugs and cash donations to the developing countries.

DOBBS: In absolute dollars how much do other developing nations, Japan, Germany, France, the U.K. give?

TUCKER: The United States is the leading giver. Japan comes in second, they give half of what we do. The United Kingdom is right next in a close third. You, talk about France and Germany, France gave in 1998 about a seventh of what the United States did.

DOBBS: All right, Bill Tucker, thank you. Tomorrow on our special report "The Great American Giveaway," policing the world.

Just how much does this country spend to help the world keep the peace?

And we'll be asking another question.

Just whether or not we should be the world's policeman?

That's tomorrow night. Please join us.

U.S. monetary aid isn't the only item flowing to other countries. Many U.S. companies tonight send jobs overseas because of cheap labor. For months we have been reporting on the "Exporting of America." Tonight we add two more companies to the list. Cooper Tires saying it will transfer the production of some 300,000 tires a year to a company in China. And Ford Motor is expanding its plant in Mexico. The move will add, 2,000 jobs to that plant. Ford, by the way, said it would build a supplier park in Mexico, creating an additional 3,000 jobs. Ford recently announced it will close four U.S. factories and a truck assembly plant in Canada. Those closings to result in the loss of 5,000 jobs. The "Exporting of America."

Still ahead here, the Supreme Court is about to begin a new term. Its decisions could well affect the next big political race next year's presidential election.

Jeffrey Toobin our CNN legal analyst joins me next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The California recall election still continuing., and of course, overriding even the California recall election is the political race for the White House 2004. A decision that could affect that campaign greatly is expected in the coming months from the Supreme Court. Campaign finance only one of several key issues the court is expected to decide during its new term which is now under way.

Joining me, CNN legal analyst Jeffrey Toobin. Jeff, good to have you here.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Hi, Lou.

DOBBS: I noticed in going through the cases a lot are emanating, appropriately it seems, from the state of California on whether or not the state of California can require a company to invest in a certain way, that's one of the issues. Going back to the 9th Circuit Court on a host of issues, the Pledge of Allegiance, all of that coming out of California. Lets start the Pledge of Allegiance. Your turn.

TOOBIN: The case that won't go away. If you remember it more then a year ago now that the 9th Circuit Court of appeals ruled that the Pledge of Allegiance, including the words "under god" was unconstitutional. That widely decision denounced, widely expected to be overturned, but it has not yet been overturned and the court has not decided whether to review it. We should hear any day whether they will. It's widely believe they'd will try to overturn it quickly.

DOBBS: And a special session on campaign finance, the court hearing arguments. Should we then infer we'll hear a court decision on that?

TOOBIN: Probably not. This is one of the most complicated area of constitutional law. The issue that they are reviewing is the McCain Feingold finance bill debated for years. Its principal holding was that it ban soft money in these major elections. But think about this...

DOBBS: Everybody was cheering.

TOOBIN: Everybody was cheering. The lower court opinion that the supreme court is reviewing is 1,600 pages long. That's just the opinion, forget the briefs. That gives you an idea...

DOBBS: They need an a good editor.

TOOBIN: ... of the complexity of the issue. I think given that it will take several months to figure that out.

DOBBS: Do you want to hazard a guess as to the outcome?

TOOBIN: I don't think it will be so fractured. Let me guess on the Pledge of Allegiance, that's what I can guess on. That's the easy one.

(CROSSTALK)

DOBBS: The idea that -- well, recovered drug users are to be considered disabled, at least in California I believe, and they're going to decide that as whether or not there can be discrimination or not on that.

TOOBIN: The first Bush administration, Americans with Disabilities Act has turned into one of the biggest litigation factories in the world. That law has generated a tremendous amount of litigation. And the issue of whether I -- someone addicted to drugs is disabled, whether people who are overweight are disabled, those are the cases working their way through the courts now.

DOBBS: School vouchers, giving choice, that has bumped up against in a lot of states some resistance.

TOOBIN: The court has been sympatheticc to school choice. They are likely to allow school choice. But it's a real paradox there because you have the establishment of religion, which is prohibited, but what there plaintiffs are arguing prohibit prohibiting school vouchers you're prohibiting the free exercise of religion. So that's the struggle of court in that case

DOBBS: And you think will we have a decision?

TOOBIN: Certainly, that one by the end of the year.

DOBBS: One that is of pair amount importance of me and those in my age group, reverse age discrimination, that is where company can pay out employees who are older but now some are charging young employees that's reverse age discrimination.

TOOBIN: This is a court of largely senior citizens and the justices are sympathetic to the senior citizens and their issues, not that you're one. They are...

Probably so.

TOOBIN: They -- look for a win on that side in that case.

DOBBS: Miranda, still Miranda.

TOOBIN: Every year there's a Miranda case, one way or the other. They have been protective of the Miranda rule. They have defended it in recent years and they are likely to stay the course on that one, too.

DOBBS: Jeffrey Toobin, as always, we thank you for your insight, analysis and even forecast where you so moved as to the outcome.

Jeffrey Toobin.

A reminder to vote in our poll tonight. The question is obviously on the California recall election. In general do you believe the coverage of the California recall election been biased. Yes, pro-Republican, yes, pro-Democratic, no, unbiased. You can please vote on our Web site cnn.com/lou. We'll have the results for you in just a few moments.

Coming up next, prosecutors say Former Tyco CEO Dennis Kozlowski didn't win the jackpot, he just stole it. We'll have that story, and Christine Romans will have the market for us. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Former Tyco top executives Dennis Kozlowski and Mark Swartz will be found guilty of lying, cheating and stealing, at least that's the view of the prosecutors, that's what they said as their case began in New York State Supreme Court. Tyco's former CEO and chief financial officer standing trial for stealing $600 million from the company through illicit stock sales and unauthorized compensation. Tonight's quote is, by the way, from the proceedings. Quote -- "They were the bosses. They spent a lot of time together. They spent a lot of money together. They stole a lot of money together." Those are the words of Manhattan Assistant District Attorney Kenneth Chaliloux (ph).

Stocks today turned around, scored their fifth straight winning session, in fact. The Dow up almost 60, the Nasdaq up 14, the S&P up almost 5. Christine Romans is here to tell us all about the market.

CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: Well, Lou, the dollar fell to a three-year low versus the yen. And the stock market shook that off finally and decided...

DOBBS: Shook that off.

ROMANS: ... shook it off and decided to choose optimism over third quarter profit. The major averages now within a whisker of their highs for the year. And happy birthday to the bull. Stocks hit five-year lows a year ago today. Since then the Dow and the S&P are up 30 percent. Semiconductors have more than doubled, and the broadest stock market gauge, the Wilshire 5,000 is up 34 percent.

Now, Martha Stewart shares up today 6 percent. Her lawyers filed a motion to drop the obstruction of justice and securities fraud charges against her. Meanwhile, Bank of America hired a special adviser to lead an independent review of its mutual fund trading practices. It promised to pay back more shareholders harmed by improper trading. Also, Franklin Resources confirmed it has been subpoenaed in that mutual fund probe we've been telling you about. The New York Attorney General's Office began this probe just over a month ago, and says it is continuing its investigation. At this point, the focus has been on market timing, and late trading, Lou. But all eyes are on a lot of other parts of the mutual fund business and this expanding probe.

DOBBS: OK. Attorney General Eliot Spitzer, cleaning it up.

ROMANS: Cleaning it up.

DOBBS: And the mutual fund industry apparently trying to get a little bit of a head start on the process. Christine, thanks, Christine Romans. The results now of our poll. The question -- In general, do you believe the media coverage of the California recall election has been biased? Seventy-five percent of you said yes, pro-Republican. Sixteen percent said yes, pro-Democratic; 9 percent said no, unbiased.

Taking a look now at your thoughts. From Louisville, North Carolina, on "The Great American Giveaway" reports here: "Please tell us again what the point is of sending our kids to college? Has anyone considered that without our tax dollars, our U.S. colleges may not be able to continue teaching our technology to foreign students so our management and government can outsource our jobs?" That from Peggy Robbins.

From Palouse, Washington, illegal aliens. "If we are serious about curbing illegal immigration, we have to stop hiring them. Then they will stop coming." That from Charlotte Omoto.

From Bayshore, New York: "I am from Germany. I became a citizen of this country. I did not expect to be catered to. I also learned the language of this country: English! Love your show, Lou." Sandy O'Hara.

Sandy, we try to speak the language every once in a while here, too.

On the carrier job cuts: "Those jobs take with them federal and New York State income taxes, corporate and person Social Security taxes, local sales taxes and corporation property taxes. I find it comforting that none of these government agencies need these or any other resources from companies that it allows to leave the USA." That from Ron Buckley.

From San Francisco tonight on the California recall election: "As a California Democrat, I must observe that "The New York Times," "The Los Angeles Times" and the Democrats seem to have found WMDs: Weapons of Mass Defamation." Douglas Smith.

From Lompoc, California, on nursing: "Until nursing is given the respect it deserves, there will continue to be a shortage of nurses. It is time to increase wages, decrease patient loads and recognize the value of nurses." That from Debbie Eckles.

We enjoy hearing from you always. Please e-mail us at loudobbs@cnn.com.

That's our show for tonight. Thanks for being with us. Tomorrow in our special report, "The Great American Giveaway," we take a look at how America is policing the world. Ron Brownstein will be here to help us sort through the results of the California recall election.

For all of us here, good night from New York. "ANDERSON COOPER 360" is next.

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