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9/11 Commission Asks White House to Make Sure It Turned Over Counterterrorism Documents; Danger on the Tracks

Aired April 02, 2004 - 15:00   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.


MILES O'BRIEN, CNN ANCHOR: Security departments have sent a warning to law enforcement agencies all across the country. It says terrorists may try to plant bombs in luggage and carry on bags in major U.S. cities this summer. The warning is based on uncorroborated information.
Following the paper trial: the 9/11 Commission is asking the Bush White House to make sure it has turned over all relevant counterterrorism documents from the Clinton administration. Former Clinton White House deputy counsel Bruce Lindsay charges the White House has withheld about 75 percent of those Clinton records.

Danger on the tracks: in Spain, train traffic is suspended along a high-speed rail line from Madrid to Seville. A bomb was found under the tracks today. Authorities say it appears to be made of the same explosives as what was used in last month's Madrid bombings.

It's back to square one in the Tyco corruption trial on day 12 of troubled deliberations to be described that way at best. It all ends in a mistrial. CNN's Allan Chernoff, live with today's dramatic developments for us -- Allan.

ALLAN CHERNOFF, CNN FINANCIAL NEWS CORRESPONDENT: Judge Michael Obus said he has no choice but to declare a mistrial, but he didn't reveal exactly the reason.

However, a source inside of the judge's chambers tells CNN that apparently juror number four, the apparent holdout among the 12 men and women, had received a coercive letter. The judge questioned her this morning and based upon her answers, the judge decided to declare a mistrial.

Judge Obus told the jury that this is a shame. He also apologized for imposing on your time, he said to the jurors, and he said he's concerned about the implications for jury selection in the future.

District Attorney Robert Morgenthau said he intends to bring a new case against Dennis Kozlowski and Mark Schwartz, the former top two executives of Tyco, and Mr. Schwartz's attorney said they'll be ready to retry the case.

(BEGIN VIDEO CLIP)

CHARLES STILLMAN, SWARTZ'S ATTORNEY: We are disappointed that we were not able to finish the mission that we started six months ago. Having said that, you all are familiar with the events that occurred over the last several days -- they are events that were obviously beyond anyone's expectation.

(END VIDEO CLIP)

CHERNOFF: Kozlowski and Schwartz were charged with stealing $600 million from Tyco through unapproved bonuses, for giving loans and also illicit stock sales.

Now one of the jurors told CNN that the jury was very close to a resolution.

(BEGIN AUDIO CLIP)

PETER MCENTEGART, JUROR: It's just a pressure thing because literally we virtually had a verdict yesterday afternoon. We even -- someone said, you know, why don't we just stay an extra half hour, because we were that close, and then to come in this morning and we thought it would be another ten minutes -- well, nothing takes ten minutes in this trial, but half hour, an hour and we would have been done, I mean literally were not allowed to deliberate today at all.

(END AUDIO CLIP)

CHERNOFF: The judge has set May 7 for a hearing to talk about a new trial -- Miles.

O'BRIEN: CNN's Allan Chernoff in Manhattan -- thanks. Kyra.

KYRA PHILLIPS, CNN ANCHOR: Well, the crime never happened, the suspect doesn't exist, and the evidence points to the alleged victim.

So conclude police in Madison, Wisconsin, who spent a week investigating the purported kidnapping of a 20-year-old college student.

CNN's Eric Phillips connects the dots -- Eric.

ERIC PHILLIPS, CNN CORRESPONDENT: Kyra, it's a very wild story. We will do our best to connect the dots for you.

There were two different press conferences today, and I will tell you about those in a minute, but first, just a little bit of background.

Of course, we know that Audrey Seiler, a 20-year-old college sophomore, had been missing since Saturday -- last seen leaving her complex around 2:30 in the morning.

Surveillance cameras caught her on tape leaving without any type of purse or coat.

She had been missing for days. A hundred and fifty officers out searching with dogs and choppers and infrared technology, not to mention hundreds from her hometown also helping in the search. They were out looking for her. She was finally spotted on Wednesday in a marshy field about two miles away from her home by a passerby.

Police were starting to look for a suspect. She had given them a description; they had created a composite sketch. They had started on an all-out search for the suspect but today police tell us that they don't believe there is a suspect at all.

(BEGIN VIDEO CLIP)

ASST. CHIEF NOBEL WRAY, MADISON, WIS. POLICE: Due to continuing inconsistencies with this investigation and lack of any evidence to support her allegations of being abducted, we do not believe that there is a suspect at large related to the second reported abduction, so we do not believe that there is a suspect at large, period.

(END VIDEO CLIP)

E. PHILLIPS: Now, you heard the assistant chief there mention a second abduction. Initially, today, during that first press conference, authorities said that although she was not abducted from her apartment, that she had reported that she had been abducted by the person she had drawn in the composite sketch.

At a -- from a different location in the city. Then police came back in a second press conference and said no, she hadn't been abducted from her apartment, nor had she been abducted at all, period. There is no suspect, they say.

Some of those inconsistencies that led them to that conclusion -- first of all, she said that had been used against her gum, rope, duck tape, and cold medicine had been used against her in this abduction.

And those items were found, or at least some of those items were found, at the crime scene, but then authorities were able to obtain videotape from a store showing Audrey Seiler going into a local store and purchasing those very items.

Also, two other people -- two other witnesses said they saw Audrey Seiler walking around freely in the city of Madison, Wisconsin during the time that she said that she was being held, and, lastly, on her computer authorities searched her computer and found that someone had been using it during the time that she says that she was abducted and that they had been searching for weather forecasts in wooded areas and local parks in the Madison area stretching out for a five-day forecast.

So, all of those things and also other investigative tools they say led them to believe that there is no suspect at all -- Kyra.

PHILLIPS: And, Eric, of course questions being asked on why she did it. Is her mental state being looked at now?

E. PHILLIPS: I think that all things are being looked at in this case. That very question was asked during this second and final press conference today and the assistant chief Wray said that he was not able to speculate about that. She did give a statement earlier today saying that she wanted to, quote, "just be alone" and he said perhaps that speaks to her mental state.

PHILLIPS: Eric Phillips from Madison Wisconsin -- thanks Eric. Miles.

O'BRIEN: As grand jurors deliberate whether to indict Michael Jackson on charges of child molestation, his attorneys say they may seek to have any indictment thrown out if, in fact, one is handed down.

Jackson maintains his innocence. Jackson's legal team and prosecutors met today to hammer out pre-trial issues in the case against the pop star. Lawyer Mark Geragos said the defense has subpoenaed school and psychiatric reports involving Jackson's accuser and his family.

PHILLIPS: More violence and unrest in Iraq. Three people killed near Kirkuk when a bomb they were planting blew up prematurely. Police say they were trying to place the bomb at the entrance to a town hall.

And in Baghdad tens of thousands of demonstrators chanting anti- American slogans protested the closing of a newspaper. U.S. officials accused its publishers of inciting violence against coalition troops.

Well you may be wondering why anyone would be willing to work in Iraq, especially after the gruesome deaths of four U.S. security contractors in Fallujah. But for some, the reward is worth the risk. CNN national correspondent Bob Franken reports.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: The grisly images from the attack on civilian contractors are disturbing, but for some they are simply another reminder.

GEORGE SINGARELLA, KROLL CRUCIBLE SECURITY: It gives me the -- I would say the incentive to want to do things better, to bring more reality to everything that's being done.

FRANKEN: By the thousands, civilians continue to risk their lives in Iraq, like these ex-military security experts.

CHRIS BOYD, KROLL CRUCIBLE SECURITY: It pays quite well; there's a lot of contracts that pay anywhere from $350 a day to $1500 a day.

FRANKEN: So they come from many countries. Private bodyguards like the ones killed in Fallujah from Blackwater Security, the company which protects coalition chief Paul Bremer.

And plant operators.

TOM BRUDENELL-BRUCE, CONTRACTOR: When I first came here, my car was shot at quite a few times, and that's when I realized that you were going to have to be pretty quick on your feet.

FRANKEN: Kelly McCann is a CNN consultant whose full time job is recruiting qualified tough guys.

KELLY MCCANN, KROLL CRUCIBLE SECURITY: It's not as if someone looks at a mall security job as eight to five. These are pretty intense individuals.

FRANKEN: Halliburton, the largest contractor, has a Web site which currently lists more than 450 openings in Iraq. When the company threw a jobs fair last week in Houston, hundreds showed up.

BOBBY JOHNSON, DRIVER: You know, to me there's not that many jobs here now.

FRANKEN: Halliburton goes out of its way to let potential workers know the danger.

CARLOS AQUINAS, CRAFTSMAN: I don't know -- mind too much. I mean, I'm not afraid.

BRUDENELL-BRUCE: My philosophy on life is that you know if your time is up, it's up.

(END VIDEOTAPE)

FRANKEN (on camera): Sources tell CNN the Pentagon is urging companies not to speak to the news media about the dangers in Iraq, saying it will only make things more dangerous for their workers willing to take the risk and there are plenty workers and risk. Bob Franken, CNN, Washington.

PHILLIPS: Well, next, having to secure America's capitol.

O'BRIEN: At the capitol itself is the historic monument to American democracy perhaps too vulnerable to a possible terrorist attack?

PHILLIPS: Whitney and Bobby, the reality TV show, oh boy. It's in the works.

O'BRIEN: Oh, gosh. And, ask the dream doctor. You've got a dream you can't figure out? You'll want to see this. Stay awake now.

(COMMERCIAL BREAK)

O'BRIEN: The government is urging transit systems to beef up security after warning of possible plans to attack buses and trains here in the U.S.

Meantime, new life for an old controversial idea to protect the capitol building in Washington. Here's Jean Meserve.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, HOMELAND SECURITY CORRESPONDENT: A golf course around the U.S. Capitol? That was the April Fool's joke 11 years ago in the "Roll Call" newspaper. This year a different proposal involving the capitol, and no one is laughing.

CHIEF TERRANCE GAINER, CAPITOL POLICE: The one way to guarantee that we can keep suicide bombers from walking up to this building is to have a fence.

MESERVE: A fence enclosing the capitol building and grounds. Visitors who pass through magnetometers would have access to parts of the capitol now closed.

GAINER: In some respects, I really think it would open it up a little bit more.

ELEANOR HOLMES NORTON (D) D.C. DELEGATE: Not going to happen if I have anything to do with it.

MESERVE: In fact, D.C. delegate Eleanor Holmes Norton says over her dead body.

NORTON: Makes a mockery of the notion of the people's house. Whose house would we become then? I think then we become the terrorist's house because they have fenced us in.

MESERVE: The shooting of two Capitol Hill police officers in 1998 made it clear the capitol and its occupants are vulnerable. And many believe the building was an intended target on September 11.

A fence wouldn't prevent an attack with a plane or a missile and fences can be jumped and are even at the White House although they do slow down intruders.

Washington is already chockablock with barricades and bulwarks, some aesthetically pleasing, some not. Plenty of them surrounding the capitol and the capitol welcome center now under construction will screen visitors.

Critics say enough.

JUDY SCOTT FELDMAN, NATIONAL COALITION TO SAVE OUR MALL: The question is how far do we go? Do we then fortify the entire city? Do we put a wall around the entire nation's capitol because of this threat?

MESERVE: Capitol Police Chief Gainer says he welcomes debate about how to balance security and symbolism, but he wants to have that debate before there's another incident, not afterwards. Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: All right, let's check in on Wall Street reacting in wake of today's surprisingly strong jobs report.

O'BRIEN: Fred Katayama keeping track from his perch at the stock exchange. One question for you, Fred, these jobs that have been created, are they low-paying jobs? What kind of jobs are they?

FRED KATAYAMA, FINANCIAL NEWS: Well some of them are the services jobs, Miles, and as you know services jobs pay a lot less than manufacturing jobs.

When I asked for that jobs report and the reaction -- investors are cheering the much-better-than-expected report, which showed more than 300,000 new jobs were created last month, but the major market averages are retreating from their highest levels of the session.

The Dow industrials right now are gaining a little bit more -- they're at 60 points; they had been up more than 120 earlier in the day. And the Nasdaq composite is jumping one and three-quarters percent.

Now, there is some concern that a strong jobs growth last month may prompt the federal reserve to raise interest rates sooner rather than later.

Many people will already have jobs may not be at their best next Monday. The outplacer (ph) (UNINTELLIGIBLE) says productivity on April 5 may fall by 30 percent. That's because workers will be getting one less hour of sleep this weekend when the clocks spring ahead for daylight savings time.

The National Sleep Foundation says the quality and quantity of work drops when workers are overly tired. That's the latest from Wall Street.

You know, Miles and Kyra, I don't know about you, but I think the way to remedy that is to just go to bed one hour earlier.

PHILLIPS: Hey, there you go.

O'BRIEN: If you have that luxury. Now for me, I always get up at 2 in the morning to change my clock. You don't have to do that?

PHILLIPS: Oh, gee.

O'BRIEN: You can do it beforehand?

PHILLIPS: All right, Frank, did you say he was smarter than you were or something in the last segment?

O'BRIEN: No, he didn't say that, he said just the opposite.

KATAYAMA: Oh, go to bed. I don't know about you guys but...

O'BRIEN: Oh, what a great idea. That's brilliant.

KATAYAMA: I'm supposed to be joining you guys tomorrow from the New York Stock Exchange so if I peter off in the afternoon, you know what my problem is.

PHILLIPS: Thanks, Fred.

O'BRIEN: All right, Fred, see you.

He must have been looking at our rundown, because we're talking sleep. Do you have the same dream over and over again? I have one about sitting here and anchoring with Kyra.

PHILLIPS: You dream about me?

O'BRIEN: I call it a newsmare.

PHILLIPS: Well you can try asking a dream doctor what does that mean? Is he in love with Kyra?

Nationally syndicated radio host Charles McPhee in the house and is going to take some of your e-mails and you know tell you if you're crazy, normal, have issues. Did he tell you you have issues Miles?

O'BRIEN: I'm sorry, I dozed off there.

(COMMERCIAL BREAK)

O'BRIEN: News across America now, fisticuffs over a Little Debbie. Authorities say 9-year-old Kevin Logan was knocked unconscious during a school bus fight with a fifth grader.

They say the fifth grader hit Kevin in the face with a stuffed Tweety Bird and then slammed him against a window when Kevin wouldn't hand over some of his delicious snack cake.

Police have charged the other child with assault.

In New York, an openly gay teenager has been awarded $35,000 in a settlement. 15-year-old Natalie Hodges sued the city and the school system when she was suspended for wearing a T-shirt saying "Barbie is a Lesbian."

Not that there's anything wrong with that.

And the adventures of Whitney Houston and Bobby Brown -- this is must-see TV, isn't it? No, it isn't. The couple is trying to sell a reality show about their lives as glamorous as they may be.

Houston's attorney says the show is Brown's project and that is all we have for you at this moment to bring you up to date across America.

PHILLIPS: Well we hope you're caught up on sleep because you're about to lose an hour. Daylight savings time starts this weekend in most parts of the country you'll have to set your clocks ahead one hour Sunday at 2 a.m.

Miles always sets his alarm at 2 a.m. as you all know. Speaking of sleep ever wonder what your dreams really mean? We're joined now by dream doctor Charles McPhee.

His radio show nationally syndicated airs weeknights from 7 p.m. to midnight. Hopefully you help a lot of people sleep.

CHARLES MCPHEE, DREAM DOCTOR: OH, we do. We do. You know we spend 25 years of our lives sleeping and of those 25 years, five years are spent dreaming.

PHILLIPS: All right, let's talk about dreams. The most common dreams. I'm sure people call in with all kinds of very wacky stories, but what do you hear usually?

MCPHEE: Well there are lots of things that people are concerned about if you have a dream about a car accident for example maybe the car is out of control you can't hit the brakes, become very nervous.

What's going to happen tomorrow morning on the way to work? Am I going to have an accident? Or you dream that someone you know dies or if you die, that'll make you nervous also and there are lots of classic dreams like falling and flying and being naked in public, your teeth fall out.

PHILLIPS: So what do these mean?

MCPHEE: Well they all have different meanings and they all occur in different contexts. If you have that dream where you're driving your car and it's out of control you're feeling out of control in your waking life. You're going hey I need to put on the brakes; I need to slow things down.

Teeth falling out dreams it's a very common dream but it reflects concerns about our appearance and our presentation in public.

PHILLIPS: All right you know I have to ask you this one, married couples having dreams about other men or women.

MCPHEE: Right and it's a very helpful dream because it lets us know that your attention isn't staying focused at home.

PHILLIPS: time to get cracking; time to go to the counselor.

MCPHEE: Right and the flip side of the -- of that dream is if you dream that your partner is cheating on you, which will often make you think hey maybe I'm picking up on something that is going on around the house and that's an upsetting dream, but it really -- the dreams actually are common if your spouse is working a lot -- if you don't get to see them or if you just feel like the attention is somewhere other than you.

PHILLIPS: What about those that when someone close to you dies and you have these reoccurring dreams with that person that has passed, some people would say well they're visiting you, they're coming to comfort you and talk to you, do you believe in that necessarily?

MCPHEE: Actually no I think that because and I'll tell you why. Because a lot of times when we have these dreams that someone close to us dies; we have dreams that actually aren't so nice and they aren't so comforting. We -- a very common dream when you lose someone is maybe you're trying to talk to them and they ignore you and you may be running after them but they will never come close to you or things like this and the dream is really reflecting back that frustration that we all feel when we lose someone close to us that we can't communicate, we can't talk to them and so that dream should not be misinterpreted as they're mad at me, I didn't take care of them well enough when they were in the hospital -- there's some unfinished business that they're not communicating with me.

The real meaning is that you miss some -- you wish you could communicate the barrier between life and death you can't.

PHILLIPS: We have a lot of e-mails as you can imagine. Let's get right to them and then I have another question for you because I want to talk about dreams and sleeping disorders and -- because clinically you have a lot of experience with that.

But let's get to these e-mails real quickly. Kat in Long Island, tell us what you think this means.

Hi, I've had dreams where I've been a ghost and recently I had one where a mobster shot me in the head. I knew I was dead and then I woke up. Aren't you supposed to wake up before you die in your dreams?

What do you think it means that I have died in dreams and stayed asleep?

MCPHEE: Right. Do you remember the old mythology that the reason -- if you died in a dream you die in real life? And that's the reason why you always hit the ground? You always wake up before you hit the ground.

PHILLIPS: Right.

MCPHEE: Right, true or false?

PHILLIPS: Oh, boy. I don't know.

MCPHEE: Well, it's obviously false as our person who just wrote us that e-mail lets us know. She's alive. But she had the dream that she died and dreams about dying are actually very common and they come at times in our lives when we're going through big transitions. We may have just had a divorce, our marriage is dead.

Maybe we got fired from a job. That part of our career has come to an end and so death is a common symbol in dreams that it shouldn't -- don't get spooked out by it. It just means you're going through a big change in your life.

PHILLIPS: Interesting. This one from J. Barney. I have recurrent dreams of a house that is unique as it has a house hidden within a house. You cannot tell from outside or inside either. You just have to go around the back to a door or there is a hallway that leads to more bedrooms. I have this setting recurring in many dreams, different story but setting almost always the same.

Lots of rooms, the house is a style I have never lived in before.

MCPHEE: Right, it's a very common dream and usually this is an exciting dream because you're going through the house and you open up a door and go oh, my gosh, I've got so much space. This is great I never knew I had all this room.

And these dreams are most common actually in women after the kids leave the house and you've been a stay at home mom for a long time and now all of a sudden wow I've got all this time on my hands and I've got all this room to grow in which is the metaphor of opening the doors and going into new rooms and you may want to start a new business, pick up an old hobby but they are pleasant dreams.

If you are going into the rooms and you don't like what you find you may be encountering difficulty in the new project and the door that you're opening in your life.

PHILLIPS: Unfortunately we've only got about 30 seconds but I've got to ask you so a lot of time working in the hospitals. Dreams and sleep disorders. Explain the connection because we've talked about sleep walking and talking in our sleep.

MCPHEE: Right the field of sleep disorders didn't exist 25 years ago. Today it's a very healthy mature field of sleep medicine and one things that's exciting about what we've learned is that a lot of the kids nightmares these are really night terrors and it's related to sleepwalking and sleep talking.

This doesn't mean that your child is traumatized or having a problem at school or things like this. Put a light in the bedroom when they sleep. If your child has recurring nightmares and you'll watch those nightmares go away. Those night terrors they come early in the night so we're learning all sorts of stuff from sleep medicine that's helping us understand what we used to think in the past or dreams but they're not.

PHILLIPS: Wow. Charles McPhee, the book once again "Ask The Dream Doctor: The A to Z Guide to Figuring out What All This Is."

Thank you so much for your time today. Pretty interesting.

PHILLIPS: All right, so when Miles chases me with a knife what exactly does that mean when Id ream that?

Oh, if you only knew.

O'BRIEN: Oh, my career.

PHILLIPS: All right that wraps up this edition of Friday LIVE FROM.

O'BRIEN: Yes, you think we've got more time? You're dreaming. All right, Candy Crowley is up next with INSIDE POLITICS. Hello, Candy.

CANDY CROWLEY, HOST, INSIDE POLITICS: Hi, thanks Miles. Who's winning the battle for the battleground states? New polls are out today from the southwest to the northeast; we'll make sense of the numbers.

And, he's a Republican but sometimes John McCain sounds a bit like a Democrat. We'll tell you the latest thing he's had to say.

All this and more when I go INSIDE POLITICS in two minutes.

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Aired April 2, 2004 - 15:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Security departments have sent a warning to law enforcement agencies all across the country. It says terrorists may try to plant bombs in luggage and carry on bags in major U.S. cities this summer. The warning is based on uncorroborated information.
Following the paper trial: the 9/11 Commission is asking the Bush White House to make sure it has turned over all relevant counterterrorism documents from the Clinton administration. Former Clinton White House deputy counsel Bruce Lindsay charges the White House has withheld about 75 percent of those Clinton records.

Danger on the tracks: in Spain, train traffic is suspended along a high-speed rail line from Madrid to Seville. A bomb was found under the tracks today. Authorities say it appears to be made of the same explosives as what was used in last month's Madrid bombings.

It's back to square one in the Tyco corruption trial on day 12 of troubled deliberations to be described that way at best. It all ends in a mistrial. CNN's Allan Chernoff, live with today's dramatic developments for us -- Allan.

ALLAN CHERNOFF, CNN FINANCIAL NEWS CORRESPONDENT: Judge Michael Obus said he has no choice but to declare a mistrial, but he didn't reveal exactly the reason.

However, a source inside of the judge's chambers tells CNN that apparently juror number four, the apparent holdout among the 12 men and women, had received a coercive letter. The judge questioned her this morning and based upon her answers, the judge decided to declare a mistrial.

Judge Obus told the jury that this is a shame. He also apologized for imposing on your time, he said to the jurors, and he said he's concerned about the implications for jury selection in the future.

District Attorney Robert Morgenthau said he intends to bring a new case against Dennis Kozlowski and Mark Schwartz, the former top two executives of Tyco, and Mr. Schwartz's attorney said they'll be ready to retry the case.

(BEGIN VIDEO CLIP)

CHARLES STILLMAN, SWARTZ'S ATTORNEY: We are disappointed that we were not able to finish the mission that we started six months ago. Having said that, you all are familiar with the events that occurred over the last several days -- they are events that were obviously beyond anyone's expectation.

(END VIDEO CLIP)

CHERNOFF: Kozlowski and Schwartz were charged with stealing $600 million from Tyco through unapproved bonuses, for giving loans and also illicit stock sales.

Now one of the jurors told CNN that the jury was very close to a resolution.

(BEGIN AUDIO CLIP)

PETER MCENTEGART, JUROR: It's just a pressure thing because literally we virtually had a verdict yesterday afternoon. We even -- someone said, you know, why don't we just stay an extra half hour, because we were that close, and then to come in this morning and we thought it would be another ten minutes -- well, nothing takes ten minutes in this trial, but half hour, an hour and we would have been done, I mean literally were not allowed to deliberate today at all.

(END AUDIO CLIP)

CHERNOFF: The judge has set May 7 for a hearing to talk about a new trial -- Miles.

O'BRIEN: CNN's Allan Chernoff in Manhattan -- thanks. Kyra.

KYRA PHILLIPS, CNN ANCHOR: Well, the crime never happened, the suspect doesn't exist, and the evidence points to the alleged victim.

So conclude police in Madison, Wisconsin, who spent a week investigating the purported kidnapping of a 20-year-old college student.

CNN's Eric Phillips connects the dots -- Eric.

ERIC PHILLIPS, CNN CORRESPONDENT: Kyra, it's a very wild story. We will do our best to connect the dots for you.

There were two different press conferences today, and I will tell you about those in a minute, but first, just a little bit of background.

Of course, we know that Audrey Seiler, a 20-year-old college sophomore, had been missing since Saturday -- last seen leaving her complex around 2:30 in the morning.

Surveillance cameras caught her on tape leaving without any type of purse or coat.

She had been missing for days. A hundred and fifty officers out searching with dogs and choppers and infrared technology, not to mention hundreds from her hometown also helping in the search. They were out looking for her. She was finally spotted on Wednesday in a marshy field about two miles away from her home by a passerby.

Police were starting to look for a suspect. She had given them a description; they had created a composite sketch. They had started on an all-out search for the suspect but today police tell us that they don't believe there is a suspect at all.

(BEGIN VIDEO CLIP)

ASST. CHIEF NOBEL WRAY, MADISON, WIS. POLICE: Due to continuing inconsistencies with this investigation and lack of any evidence to support her allegations of being abducted, we do not believe that there is a suspect at large related to the second reported abduction, so we do not believe that there is a suspect at large, period.

(END VIDEO CLIP)

E. PHILLIPS: Now, you heard the assistant chief there mention a second abduction. Initially, today, during that first press conference, authorities said that although she was not abducted from her apartment, that she had reported that she had been abducted by the person she had drawn in the composite sketch.

At a -- from a different location in the city. Then police came back in a second press conference and said no, she hadn't been abducted from her apartment, nor had she been abducted at all, period. There is no suspect, they say.

Some of those inconsistencies that led them to that conclusion -- first of all, she said that had been used against her gum, rope, duck tape, and cold medicine had been used against her in this abduction.

And those items were found, or at least some of those items were found, at the crime scene, but then authorities were able to obtain videotape from a store showing Audrey Seiler going into a local store and purchasing those very items.

Also, two other people -- two other witnesses said they saw Audrey Seiler walking around freely in the city of Madison, Wisconsin during the time that she said that she was being held, and, lastly, on her computer authorities searched her computer and found that someone had been using it during the time that she says that she was abducted and that they had been searching for weather forecasts in wooded areas and local parks in the Madison area stretching out for a five-day forecast.

So, all of those things and also other investigative tools they say led them to believe that there is no suspect at all -- Kyra.

PHILLIPS: And, Eric, of course questions being asked on why she did it. Is her mental state being looked at now?

E. PHILLIPS: I think that all things are being looked at in this case. That very question was asked during this second and final press conference today and the assistant chief Wray said that he was not able to speculate about that. She did give a statement earlier today saying that she wanted to, quote, "just be alone" and he said perhaps that speaks to her mental state.

PHILLIPS: Eric Phillips from Madison Wisconsin -- thanks Eric. Miles.

O'BRIEN: As grand jurors deliberate whether to indict Michael Jackson on charges of child molestation, his attorneys say they may seek to have any indictment thrown out if, in fact, one is handed down.

Jackson maintains his innocence. Jackson's legal team and prosecutors met today to hammer out pre-trial issues in the case against the pop star. Lawyer Mark Geragos said the defense has subpoenaed school and psychiatric reports involving Jackson's accuser and his family.

PHILLIPS: More violence and unrest in Iraq. Three people killed near Kirkuk when a bomb they were planting blew up prematurely. Police say they were trying to place the bomb at the entrance to a town hall.

And in Baghdad tens of thousands of demonstrators chanting anti- American slogans protested the closing of a newspaper. U.S. officials accused its publishers of inciting violence against coalition troops.

Well you may be wondering why anyone would be willing to work in Iraq, especially after the gruesome deaths of four U.S. security contractors in Fallujah. But for some, the reward is worth the risk. CNN national correspondent Bob Franken reports.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: The grisly images from the attack on civilian contractors are disturbing, but for some they are simply another reminder.

GEORGE SINGARELLA, KROLL CRUCIBLE SECURITY: It gives me the -- I would say the incentive to want to do things better, to bring more reality to everything that's being done.

FRANKEN: By the thousands, civilians continue to risk their lives in Iraq, like these ex-military security experts.

CHRIS BOYD, KROLL CRUCIBLE SECURITY: It pays quite well; there's a lot of contracts that pay anywhere from $350 a day to $1500 a day.

FRANKEN: So they come from many countries. Private bodyguards like the ones killed in Fallujah from Blackwater Security, the company which protects coalition chief Paul Bremer.

And plant operators.

TOM BRUDENELL-BRUCE, CONTRACTOR: When I first came here, my car was shot at quite a few times, and that's when I realized that you were going to have to be pretty quick on your feet.

FRANKEN: Kelly McCann is a CNN consultant whose full time job is recruiting qualified tough guys.

KELLY MCCANN, KROLL CRUCIBLE SECURITY: It's not as if someone looks at a mall security job as eight to five. These are pretty intense individuals.

FRANKEN: Halliburton, the largest contractor, has a Web site which currently lists more than 450 openings in Iraq. When the company threw a jobs fair last week in Houston, hundreds showed up.

BOBBY JOHNSON, DRIVER: You know, to me there's not that many jobs here now.

FRANKEN: Halliburton goes out of its way to let potential workers know the danger.

CARLOS AQUINAS, CRAFTSMAN: I don't know -- mind too much. I mean, I'm not afraid.

BRUDENELL-BRUCE: My philosophy on life is that you know if your time is up, it's up.

(END VIDEOTAPE)

FRANKEN (on camera): Sources tell CNN the Pentagon is urging companies not to speak to the news media about the dangers in Iraq, saying it will only make things more dangerous for their workers willing to take the risk and there are plenty workers and risk. Bob Franken, CNN, Washington.

PHILLIPS: Well, next, having to secure America's capitol.

O'BRIEN: At the capitol itself is the historic monument to American democracy perhaps too vulnerable to a possible terrorist attack?

PHILLIPS: Whitney and Bobby, the reality TV show, oh boy. It's in the works.

O'BRIEN: Oh, gosh. And, ask the dream doctor. You've got a dream you can't figure out? You'll want to see this. Stay awake now.

(COMMERCIAL BREAK)

O'BRIEN: The government is urging transit systems to beef up security after warning of possible plans to attack buses and trains here in the U.S.

Meantime, new life for an old controversial idea to protect the capitol building in Washington. Here's Jean Meserve.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, HOMELAND SECURITY CORRESPONDENT: A golf course around the U.S. Capitol? That was the April Fool's joke 11 years ago in the "Roll Call" newspaper. This year a different proposal involving the capitol, and no one is laughing.

CHIEF TERRANCE GAINER, CAPITOL POLICE: The one way to guarantee that we can keep suicide bombers from walking up to this building is to have a fence.

MESERVE: A fence enclosing the capitol building and grounds. Visitors who pass through magnetometers would have access to parts of the capitol now closed.

GAINER: In some respects, I really think it would open it up a little bit more.

ELEANOR HOLMES NORTON (D) D.C. DELEGATE: Not going to happen if I have anything to do with it.

MESERVE: In fact, D.C. delegate Eleanor Holmes Norton says over her dead body.

NORTON: Makes a mockery of the notion of the people's house. Whose house would we become then? I think then we become the terrorist's house because they have fenced us in.

MESERVE: The shooting of two Capitol Hill police officers in 1998 made it clear the capitol and its occupants are vulnerable. And many believe the building was an intended target on September 11.

A fence wouldn't prevent an attack with a plane or a missile and fences can be jumped and are even at the White House although they do slow down intruders.

Washington is already chockablock with barricades and bulwarks, some aesthetically pleasing, some not. Plenty of them surrounding the capitol and the capitol welcome center now under construction will screen visitors.

Critics say enough.

JUDY SCOTT FELDMAN, NATIONAL COALITION TO SAVE OUR MALL: The question is how far do we go? Do we then fortify the entire city? Do we put a wall around the entire nation's capitol because of this threat?

MESERVE: Capitol Police Chief Gainer says he welcomes debate about how to balance security and symbolism, but he wants to have that debate before there's another incident, not afterwards. Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: All right, let's check in on Wall Street reacting in wake of today's surprisingly strong jobs report.

O'BRIEN: Fred Katayama keeping track from his perch at the stock exchange. One question for you, Fred, these jobs that have been created, are they low-paying jobs? What kind of jobs are they?

FRED KATAYAMA, FINANCIAL NEWS: Well some of them are the services jobs, Miles, and as you know services jobs pay a lot less than manufacturing jobs.

When I asked for that jobs report and the reaction -- investors are cheering the much-better-than-expected report, which showed more than 300,000 new jobs were created last month, but the major market averages are retreating from their highest levels of the session.

The Dow industrials right now are gaining a little bit more -- they're at 60 points; they had been up more than 120 earlier in the day. And the Nasdaq composite is jumping one and three-quarters percent.

Now, there is some concern that a strong jobs growth last month may prompt the federal reserve to raise interest rates sooner rather than later.

Many people will already have jobs may not be at their best next Monday. The outplacer (ph) (UNINTELLIGIBLE) says productivity on April 5 may fall by 30 percent. That's because workers will be getting one less hour of sleep this weekend when the clocks spring ahead for daylight savings time.

The National Sleep Foundation says the quality and quantity of work drops when workers are overly tired. That's the latest from Wall Street.

You know, Miles and Kyra, I don't know about you, but I think the way to remedy that is to just go to bed one hour earlier.

PHILLIPS: Hey, there you go.

O'BRIEN: If you have that luxury. Now for me, I always get up at 2 in the morning to change my clock. You don't have to do that?

PHILLIPS: Oh, gee.

O'BRIEN: You can do it beforehand?

PHILLIPS: All right, Frank, did you say he was smarter than you were or something in the last segment?

O'BRIEN: No, he didn't say that, he said just the opposite.

KATAYAMA: Oh, go to bed. I don't know about you guys but...

O'BRIEN: Oh, what a great idea. That's brilliant.

KATAYAMA: I'm supposed to be joining you guys tomorrow from the New York Stock Exchange so if I peter off in the afternoon, you know what my problem is.

PHILLIPS: Thanks, Fred.

O'BRIEN: All right, Fred, see you.

He must have been looking at our rundown, because we're talking sleep. Do you have the same dream over and over again? I have one about sitting here and anchoring with Kyra.

PHILLIPS: You dream about me?

O'BRIEN: I call it a newsmare.

PHILLIPS: Well you can try asking a dream doctor what does that mean? Is he in love with Kyra?

Nationally syndicated radio host Charles McPhee in the house and is going to take some of your e-mails and you know tell you if you're crazy, normal, have issues. Did he tell you you have issues Miles?

O'BRIEN: I'm sorry, I dozed off there.

(COMMERCIAL BREAK)

O'BRIEN: News across America now, fisticuffs over a Little Debbie. Authorities say 9-year-old Kevin Logan was knocked unconscious during a school bus fight with a fifth grader.

They say the fifth grader hit Kevin in the face with a stuffed Tweety Bird and then slammed him against a window when Kevin wouldn't hand over some of his delicious snack cake.

Police have charged the other child with assault.

In New York, an openly gay teenager has been awarded $35,000 in a settlement. 15-year-old Natalie Hodges sued the city and the school system when she was suspended for wearing a T-shirt saying "Barbie is a Lesbian."

Not that there's anything wrong with that.

And the adventures of Whitney Houston and Bobby Brown -- this is must-see TV, isn't it? No, it isn't. The couple is trying to sell a reality show about their lives as glamorous as they may be.

Houston's attorney says the show is Brown's project and that is all we have for you at this moment to bring you up to date across America.

PHILLIPS: Well we hope you're caught up on sleep because you're about to lose an hour. Daylight savings time starts this weekend in most parts of the country you'll have to set your clocks ahead one hour Sunday at 2 a.m.

Miles always sets his alarm at 2 a.m. as you all know. Speaking of sleep ever wonder what your dreams really mean? We're joined now by dream doctor Charles McPhee.

His radio show nationally syndicated airs weeknights from 7 p.m. to midnight. Hopefully you help a lot of people sleep.

CHARLES MCPHEE, DREAM DOCTOR: OH, we do. We do. You know we spend 25 years of our lives sleeping and of those 25 years, five years are spent dreaming.

PHILLIPS: All right, let's talk about dreams. The most common dreams. I'm sure people call in with all kinds of very wacky stories, but what do you hear usually?

MCPHEE: Well there are lots of things that people are concerned about if you have a dream about a car accident for example maybe the car is out of control you can't hit the brakes, become very nervous.

What's going to happen tomorrow morning on the way to work? Am I going to have an accident? Or you dream that someone you know dies or if you die, that'll make you nervous also and there are lots of classic dreams like falling and flying and being naked in public, your teeth fall out.

PHILLIPS: So what do these mean?

MCPHEE: Well they all have different meanings and they all occur in different contexts. If you have that dream where you're driving your car and it's out of control you're feeling out of control in your waking life. You're going hey I need to put on the brakes; I need to slow things down.

Teeth falling out dreams it's a very common dream but it reflects concerns about our appearance and our presentation in public.

PHILLIPS: All right you know I have to ask you this one, married couples having dreams about other men or women.

MCPHEE: Right and it's a very helpful dream because it lets us know that your attention isn't staying focused at home.

PHILLIPS: time to get cracking; time to go to the counselor.

MCPHEE: Right and the flip side of the -- of that dream is if you dream that your partner is cheating on you, which will often make you think hey maybe I'm picking up on something that is going on around the house and that's an upsetting dream, but it really -- the dreams actually are common if your spouse is working a lot -- if you don't get to see them or if you just feel like the attention is somewhere other than you.

PHILLIPS: What about those that when someone close to you dies and you have these reoccurring dreams with that person that has passed, some people would say well they're visiting you, they're coming to comfort you and talk to you, do you believe in that necessarily?

MCPHEE: Actually no I think that because and I'll tell you why. Because a lot of times when we have these dreams that someone close to us dies; we have dreams that actually aren't so nice and they aren't so comforting. We -- a very common dream when you lose someone is maybe you're trying to talk to them and they ignore you and you may be running after them but they will never come close to you or things like this and the dream is really reflecting back that frustration that we all feel when we lose someone close to us that we can't communicate, we can't talk to them and so that dream should not be misinterpreted as they're mad at me, I didn't take care of them well enough when they were in the hospital -- there's some unfinished business that they're not communicating with me.

The real meaning is that you miss some -- you wish you could communicate the barrier between life and death you can't.

PHILLIPS: We have a lot of e-mails as you can imagine. Let's get right to them and then I have another question for you because I want to talk about dreams and sleeping disorders and -- because clinically you have a lot of experience with that.

But let's get to these e-mails real quickly. Kat in Long Island, tell us what you think this means.

Hi, I've had dreams where I've been a ghost and recently I had one where a mobster shot me in the head. I knew I was dead and then I woke up. Aren't you supposed to wake up before you die in your dreams?

What do you think it means that I have died in dreams and stayed asleep?

MCPHEE: Right. Do you remember the old mythology that the reason -- if you died in a dream you die in real life? And that's the reason why you always hit the ground? You always wake up before you hit the ground.

PHILLIPS: Right.

MCPHEE: Right, true or false?

PHILLIPS: Oh, boy. I don't know.

MCPHEE: Well, it's obviously false as our person who just wrote us that e-mail lets us know. She's alive. But she had the dream that she died and dreams about dying are actually very common and they come at times in our lives when we're going through big transitions. We may have just had a divorce, our marriage is dead.

Maybe we got fired from a job. That part of our career has come to an end and so death is a common symbol in dreams that it shouldn't -- don't get spooked out by it. It just means you're going through a big change in your life.

PHILLIPS: Interesting. This one from J. Barney. I have recurrent dreams of a house that is unique as it has a house hidden within a house. You cannot tell from outside or inside either. You just have to go around the back to a door or there is a hallway that leads to more bedrooms. I have this setting recurring in many dreams, different story but setting almost always the same.

Lots of rooms, the house is a style I have never lived in before.

MCPHEE: Right, it's a very common dream and usually this is an exciting dream because you're going through the house and you open up a door and go oh, my gosh, I've got so much space. This is great I never knew I had all this room.

And these dreams are most common actually in women after the kids leave the house and you've been a stay at home mom for a long time and now all of a sudden wow I've got all this time on my hands and I've got all this room to grow in which is the metaphor of opening the doors and going into new rooms and you may want to start a new business, pick up an old hobby but they are pleasant dreams.

If you are going into the rooms and you don't like what you find you may be encountering difficulty in the new project and the door that you're opening in your life.

PHILLIPS: Unfortunately we've only got about 30 seconds but I've got to ask you so a lot of time working in the hospitals. Dreams and sleep disorders. Explain the connection because we've talked about sleep walking and talking in our sleep.

MCPHEE: Right the field of sleep disorders didn't exist 25 years ago. Today it's a very healthy mature field of sleep medicine and one things that's exciting about what we've learned is that a lot of the kids nightmares these are really night terrors and it's related to sleepwalking and sleep talking.

This doesn't mean that your child is traumatized or having a problem at school or things like this. Put a light in the bedroom when they sleep. If your child has recurring nightmares and you'll watch those nightmares go away. Those night terrors they come early in the night so we're learning all sorts of stuff from sleep medicine that's helping us understand what we used to think in the past or dreams but they're not.

PHILLIPS: Wow. Charles McPhee, the book once again "Ask The Dream Doctor: The A to Z Guide to Figuring out What All This Is."

Thank you so much for your time today. Pretty interesting.

PHILLIPS: All right, so when Miles chases me with a knife what exactly does that mean when Id ream that?

Oh, if you only knew.

O'BRIEN: Oh, my career.

PHILLIPS: All right that wraps up this edition of Friday LIVE FROM.

O'BRIEN: Yes, you think we've got more time? You're dreaming. All right, Candy Crowley is up next with INSIDE POLITICS. Hello, Candy.

CANDY CROWLEY, HOST, INSIDE POLITICS: Hi, thanks Miles. Who's winning the battle for the battleground states? New polls are out today from the southwest to the northeast; we'll make sense of the numbers.

And, he's a Republican but sometimes John McCain sounds a bit like a Democrat. We'll tell you the latest thing he's had to say.

All this and more when I go INSIDE POLITICS in two minutes.

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