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Children Found; Voting Fears; Inauguration Day

Aired January 19, 2005 - 14:00   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.


TONY HARRIS, CNN ANCHOR: This hour, the search has ended for two missing children and their parents who are accused of taking them from a foster home. Let's go straight to CNN's Randi Kaye with the latest from Boone, North Carolina.
And Randi, we don't like the circumstances, but we do like the way this has ended.

RANDI KAYE, CNN CORRESPONDENT: I think we do, and so do a lot of other people here in Boone -- in Boone, North Carolina, in Watauga County here. The sheriff, very, very happy with the results of this five-day manhunt for this North Carolina couple.

They lost their biological children eight months ago, the result of a meth lab raid on their home. They seized, according to the sheriff, the children early Saturday morning, 9:15 in the morning, at gunpoint, and have been on the run ever since. Well, this afternoon, they have been located. They are now in custody.

Sheriff Mark Shook from Watauga County here just briefed reporters. He tells us, once again, that James Lee Canter and Alisha Chambers are now in custody. They are being held in Whitetop, Virginia. Also in custody, Jeff Brown, who is a cousin of James Canter, and Sharon Woodards, who is a cousin by marriage.

They were in the car, just entered the picture today. They were in the car with the suspects and the two children, who we should tell you are fine, have been found safe and sound.

It turns out a tip from a family member last night, after watching the news, tipped off the sheriff's department here, led police to a relative's home in Ashe County, North Carolina. They missed them this morning by just about a half an hour. But other family members there told them that they were heading to Virginia, to Grayson County, Virginia, to be more specific.

The sheriff here alerted the highway patrol there and the sheriff's deputies, and they told us that they found the car there behind a residence. They found all four people inside.

The car was a black Ford 2000 two-door with a Tennessee plate. Found the car, it led them to police -- led them to the suspects there in the house. Arrest was made without incident.

Now, here is what the sheriff told us just a few minutes ago about the conversation he had and what it took to get in touch with the foster family here, and their reaction to the safe finding of the children that were taken from them five days ago.

(BEGIN VIDEO CLIP)

SHERIFF MARK SHOOK, WATAUGA COUNTY, NORTH CAROLINA: My first attempt, the phone was busy. So I had to contact the operator to do an emergency break-in to let them know. They were very, very relieved and excited.

(END VIDEO CLIP)

KAYE: We also want to tell you that no weapons were found. Earlier on Saturday, when their first car, the car they had used to take the children, according to the sheriff, was seized and located here, there were two weapons found in that car. But no weapons found on them in Virginia.

The sheriff did tell us that James Canter had changed his appearance. He had shaved his head, he was also using a different name, until finally telling them, he says, that he is, indeed, James Canter.

We can tell you the kids are on their way back now to Boone, North Carolina. They should be back here where we are at the sheriff's department about an hour from now.

Back to you.

HARRIS: Oh, very good. Randi Kaye from Boone, North Carolina. Randi, thank you.

CAROL LIN, CNN ANCHOR: All right. Well, while the U.S. is preparing to inaugurate a president, Iraqis are preparing to elect one. And security is the forefront in both countries.

Let's begin in Baghdad, where there were four suicide car bombings today, killing more than two dozen people. Militant Abu Musab al-Zarqawi's network has claimed responsibility.

The deadliest attack was near police headquarters in eastern Baghdad. Eighteen Iraqis were killed there. The bombings come despite heightened safety measures ahead of January 30 elections.

Now, in 11 days, polls are set to open across Iraq. But it's anyone's guess how many people will actually turn out. Some Iraqis are simply too afraid to vote. CNN senior international correspondent Nic Robertson is in Mosul, where some involved with the election have been threatened and killed.

(BEGIN VIDEOTAPE)

LT. COL. MIKE GIBLER, TASK FORCE OLYMPIA: They don't know where any of the law enforcement soldiers are.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): Lieutenant Colonel Mike Gibler's day is not going quite as he planned.

GIBLER: Why, isn't he an officer?

ROBERTSON: Indeed, the last few weeks were not exactly what he expected either. The recent mass resignation of Mosul's election, officials throwing an additional burden on him and his troops.

GIBLER: Where do they say he is now?

ROBERTSON: And now the Iraqi officer he had arranged to meet can't be found, costing him time he can ill afford.

UNIDENTIFIED MALE: Come on in.

GIBLER: How are you doing, sir?

ROBERTSON: Best of buddies when they do meet, but pressures mounting on both men to convince voters in their sizeable segment of this city of about 1.7 million people they should come out and vote on election day.

GIBLER: Reversing the perception that they can't go vote, and it's not secure to vote, I think is important. And we do that by showing that there is a secure environment.

ROBERTSON: That message boosted here on a radio call-in show.

GIBLER: I and people like Colonel Harris (ph) here will continue to fight this fight for you to help you have an opportunity to vote.

ROBERTSON: Callers mixing election queries with criticism of U.S. troops.

GIBLER: The events that are occurring that are causing the most injuries to Iraqi citizens are not being done by us. They're being done by the terrorists and the AIF.

ROBERTSON: A common thread in many questions, and particularly poignant at this radio station, where some staff say they've been kidnapped or threatened for what they assume is their support of the Iraqi government and elections, is how to rid the city of insurgents.

GIBLER: The answer to solving this problem is that we need your information to identify who these people are so we can take care of them and we can kill them.

ROBERTSON (on camera): And the message isn't just being broadcast over the airwaves. It's been taken out to the streets, to the mosques, to convince the religious leaders to encourage their people to vote.

(voice-over): A new approach also intended to stop insurgents using mosques as they did in Falluja. The U.S. outreach here finding fertile soil.

"People would like to vote," this mosque official says. "If the area was secure." Adding, "Though people are worried insurgents will kill them the following day." At other mosques and in other encounters we witnessed, the replies seem to be the same.

UNIDENTIFIED MALE: Tell him that I will make things safe for you to vote.

ROBERTSON: Perception of good security will enhance turnout.

UNIDENTIFIED MALE: To have a free Iraq...

ROBERTSON: Back at the radio station, one employee told me he thought 85 percent of people wanted to vote. Perception among U.S. troops, Lieutenant Colonel Gibler included, is that Iraqis will have to expect pain in this process.

GIBLER: As we go down this road, we continue to reinforce the security peace. And it's not going to be completely safe. And, you know, our nation has struggled through it and other nations have struggled through it.

ROBERTSON: And such are the security fears. Even the location of the polling stations have yet to be announced.

Nic Robertson, CNN, Mosul, Iraq.

(END VIDEOTAPE)

HARRIS: And here in the United States, a long Democratic tradition plays out again in Washington tomorrow. President Bush takes the oath of office to begin his second term after the swearing- in ceremony at the U.S. Capitol. The highlight of the day is the inaugural parade. It begins at the Capitol and moves on to Pennsylvania Avenue, past some of Washington's most notable landmarks.

While thousands of people are expected to turn out for the parade, vast sections of Pennsylvania Avenue are off limits to the public. They are reserved solely for guests, screened by the Bush inaugural committee.

Onlookers lucky enough to get a good spot will be treated to marching bands, military units and floats, plus units featuring horses and dogs. The roughly two-hour parade finally comes to an end at the White House.

We check in now with CNN senior White House correspondent John King with a look at what's going on now.

Hi, John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: A wintry look, Tony. Those who are participating in the ceremonies tomorrow at least will have some snow on the ground here in Washington. Unclear still as yet whether there will be snow falling during the festivities.

Already some evidence, though, that the weather is having an impact. One ceremony planned later today down at the Elipse has been cut back from a two-hour ceremony to a one-hour ceremony because of the weather. We are told that a military fly-over has been canceled, also a plan to drop some paratroopers from the sky on down to that even canceled because of the weather conditions here in Washington.

President Bush, of course, preparing for this big event. He says he hopes to soak it in and enjoy it more than he did four years ago, when he admits to being a little nervous.

The president trying to get a piece of that history today, taking a tour of the National Archives. You see him here with the first lady.

The president took a look at the Declaration of Independence, the Constitution. He also took a look at two pages from George Washington's handwritten inaugural address from back on April 30, 1789. The Capitol then was in New York City. That's where President Washington delivered his first inaugural address.

President Bush, of course, will deliver his here in Washington tomorrow. It comes at a time of the continuing war on terrorism. It comes at a time when the president has an ambitious domestic agenda.

But, again, the president told me yesterday in an interview that he hopes, yes, he'll discuss his agenda, yes, he knows there are concerns for the nation, but he says he wants to soak in this moment. He was a bit nervous the first time. This time the president says he will be a participant, giving a big speech, taking an important oath, but also he hopes to be a spectator as well.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'll be a better spectator than I was the first time. The first time I was pretty well overwhelmed by the moment and stayed focus on delivering the speech. I would hope that after four years as the president, I'll be not only be able to not only stay focused on delivering the speech, but will also be able to take in the sights and sounds of this glorious moment.

(END VIDEO CLIP)

KING: Now, the president's family here at the White House this afternoon. They had a luncheon here, the Bush family, in the residence. The president later today will take one more time to go through his full inaugural address. Aides say it runs about 17 minutes.

And as you watch the speech tomorrow, listen closely. It's interesting. The president's first term defined by terrorism. He, himself, has called himself the wartime president.

The White House says the president's speech will be very optimistic, talking about the power of liberty and democracy. An effort by this president as he starts his second term to have a bit of a softer term, if you will, to take that war definition out just a bit, at least the president hopes -- Tony.

HARRIS: Nice to hear that he's a little nervous. It is a big occasion. John King at the White House. John, we appreciate it. Thank you. LIN: And an expensive occasion as well.

This week's inauguration festivities cost a small fortune, but the money's not coming out of the U.S. Treasury. So who's picking up the tab? Some answers from CNN's Judy Woodruff.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN CORRESPONDENT (voice-over): Who's paying for this and this and this? No, it's not you, the taxpayer. Unless, of course, you wanted to be.

DAN BARTLETT, WHITE HOUSE COUNSELOR: We're a nation at war. But we do believe it's important that through privately raised money that we ought to go forward with the inaugural festivities.

WOODRUFF: The fact is, nearly half of the inaugural budget is made up of money from big business, huge companies and Wall Street rainmakers looking for an in with the administration. Under the campaign finance laws, these corporations are prohibited from giving directly to candidates. But there is no legal cap on the amount they can pump into the inaugural fund. And those who pony up likely expect a lot of bang for their bucks.

None of this is new. Corporations have funneled money into the inaugurations of past presidents, as well.

GEORGE HERBERT WALKER BUSH, FMR. PRESIDENT OF THE UNITED STATES: And I will faithfully execute the office of president...

WOODRUFF: But this is the first time the law requires the inaugural committee to disclose its list of donors.

THOMAS EDSALL, "WASHINGTON POST": It is an economic decision they're making. They're saying that it is worth the $250,000, $500,000, whatever, to do this, that the benefits flowing to their company or their trade association are well worth that investment.

WOODRUFF: So, let's follow the money. Team Bush is hoping to raise $40 million for this week's official festivities. As of Friday, it had nearly $30 million in its coffers.

On its Web site, the inaugural committee lists 200 donors. More than half are corporations or firms. Among those who've given $250,000, hotel giant Marriott International, communications titan AT&T, pharmaceutical goliath Pfizer, and TimeWarner, the parent company of CNN.

EDSALL: There are a whole group of network of donors, all of which, or almost all of which have various interests with government that they pursue, and find contributing to be a very beneficial part of the process.

WOODRUFF: And we're just talking about the official events here. All this week, lobbyists and corporations are wing and dining the powerful at a slew of private parties across Washington. And for shindigs like these, reporting requirements vary. Making that money trail a tough one to follow.

Judy Woodruff, CNN, Washington.

(END VIDEOTAPE)

LIN: CNN inauguration coverage begins at 3:30 today with Wolf Blitzer and Judy Woodruff. For the most complete coverage of tomorrow's presidential inauguration, of course you're going to want to stay with CNN because we've got live coverage all day.

HARRIS: President Bush's nominee for secretary of state has cleared a major hurdle in the confirmation process. The Senate Foreign Relations Committee voted 16-2 today in favor of Condoleezza Rice's nomination.

The two dissenting votes were from former Democratic presidential candidate John Kerry and Democratic Senator Barbara Boxer. During two days of hearings, Democrats on the committee pressed Rice to acknowledge the Bush administration has made mistakes and misled the American people regarding the war in Iraq. A full Senate vote on the nomination is expected tomorrow.

On this inauguration eve, the Democrats have a message for the president.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Mr. President, congratulations. Democrats are eager to work with you. But make no mistake, we will not abandon our long-held principles. On Social Security...

(END VIDEO CLIP)

HARRIS: It sounds nice, doesn't it? But the rest of the ad has some fighting words. We'll talk about it ahead on LIVE FROM.

And from Capitol Hill to Main Street, a police chief has his second-term wish list for help defending his town from terrorists.

And later, a new development for Martha Stewart, now conspicuously absent from the Internet. Details in our business report.

(COMMERCIAL BREAK)

LIN: Our weeklong series, "What's In It For Me," looks at President Bush's second-term agenda through the eyes of average Americans. Now, in part three, CNN national correspondent Kelly Wallace turns to homeland security.

(BEGIN VIDEOTAPE)

CHIEF JOHN POLLINGER, MIDDLETOWN, N.J. POLICE CHIEF: Is she coming in for a restraining order?

WALLACE (voice over): Spend time with Middletown's police chief, and you'll see John Pollinger is a no-nonsense kind of guy. He says he lost any tolerance for whining right after the September 11 attacks.

POLLINGER: If those people could somehow reach out from the grave and shake us and say, you don't have any complaints, you don't have problems, the world would be a better place.

WALLACE: The emotions still so raw in the community hardest hit by what happened just across the river three and a half years ago.

(on camera): Do you remember that day like it was yesterday?

POLLINGER: Oh, yes. And I along with everybody else.

WALLACE (voice over): At least once a month, Pollinger says he visits this memorial with tributes to the 37 residents of Middletown, New Jersey, who died in the attacks.

POLLINGER: And I guess the biggest thing that I faced that day was the sense that I couldn't protect them.

WALLACE: His main wish for the president's second term? Federal officials paying closer attention to local law enforcement.

POLLINGER: And we give you an honest, documented and valid opinion as to why we need what we need. Listen to us.

WALLACE: Because Pollinger says local communities like his are not getting the federal money they need. He blames the federal bureaucracy and special interest politics.

POLLINGER: Instead of whining about it anymore, I just come to realize that I don't think the answer is going to come from the federal government at all.

WALLACE: He says local police chiefs need to learn how to do more with less. For instance, he says when there were fears in 2003 a ferry could be used in a terror attack, he moved officers from the streets to the ferries.

POLLINGER: It could come from a ferry leaving my town. And I thought, 'No, I'm not going to let that happen. It's not going to be in my town.'

WALLACE: Frustrations over resources and a lower tolerance for what he now considers petty complaints are the reasons Pollinger says he'll retire this year after seven years as chief, 28 years in all with the force. But until then...

(on camera): How much do you worry about a terrorist attack happening in a place like Middletown?

POLLINGER: I worry about it every waking moment.

WALLACE (voice over): A worry not likely to ever go away in this community forever linked with September 11. Kelly Wallace, CNN, Middletown, New Jersey.

(END VIDEOTAPE)

LIN: Our series "What's In It For Me" takes up Social Security when it continues tomorrow on CNN's "AMERICAN MORNING," beginning at 7:00 a.m. Eastern.

HARRIS: Defending America against a terror attack. Ahead on LIVE FROM, why the oceanfront may be the port of call for a crippling strike.

(COMMERCIAL BREAK)

HARRIS: Big news in our household, that's for sure. Martha Stewart going offline, at least when it comes to selling her products.

LIN: All right. Susan Lisovicz joins us from New York with news on that.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

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Aired January 19, 2005 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: This hour, the search has ended for two missing children and their parents who are accused of taking them from a foster home. Let's go straight to CNN's Randi Kaye with the latest from Boone, North Carolina.
And Randi, we don't like the circumstances, but we do like the way this has ended.

RANDI KAYE, CNN CORRESPONDENT: I think we do, and so do a lot of other people here in Boone -- in Boone, North Carolina, in Watauga County here. The sheriff, very, very happy with the results of this five-day manhunt for this North Carolina couple.

They lost their biological children eight months ago, the result of a meth lab raid on their home. They seized, according to the sheriff, the children early Saturday morning, 9:15 in the morning, at gunpoint, and have been on the run ever since. Well, this afternoon, they have been located. They are now in custody.

Sheriff Mark Shook from Watauga County here just briefed reporters. He tells us, once again, that James Lee Canter and Alisha Chambers are now in custody. They are being held in Whitetop, Virginia. Also in custody, Jeff Brown, who is a cousin of James Canter, and Sharon Woodards, who is a cousin by marriage.

They were in the car, just entered the picture today. They were in the car with the suspects and the two children, who we should tell you are fine, have been found safe and sound.

It turns out a tip from a family member last night, after watching the news, tipped off the sheriff's department here, led police to a relative's home in Ashe County, North Carolina. They missed them this morning by just about a half an hour. But other family members there told them that they were heading to Virginia, to Grayson County, Virginia, to be more specific.

The sheriff here alerted the highway patrol there and the sheriff's deputies, and they told us that they found the car there behind a residence. They found all four people inside.

The car was a black Ford 2000 two-door with a Tennessee plate. Found the car, it led them to police -- led them to the suspects there in the house. Arrest was made without incident.

Now, here is what the sheriff told us just a few minutes ago about the conversation he had and what it took to get in touch with the foster family here, and their reaction to the safe finding of the children that were taken from them five days ago.

(BEGIN VIDEO CLIP)

SHERIFF MARK SHOOK, WATAUGA COUNTY, NORTH CAROLINA: My first attempt, the phone was busy. So I had to contact the operator to do an emergency break-in to let them know. They were very, very relieved and excited.

(END VIDEO CLIP)

KAYE: We also want to tell you that no weapons were found. Earlier on Saturday, when their first car, the car they had used to take the children, according to the sheriff, was seized and located here, there were two weapons found in that car. But no weapons found on them in Virginia.

The sheriff did tell us that James Canter had changed his appearance. He had shaved his head, he was also using a different name, until finally telling them, he says, that he is, indeed, James Canter.

We can tell you the kids are on their way back now to Boone, North Carolina. They should be back here where we are at the sheriff's department about an hour from now.

Back to you.

HARRIS: Oh, very good. Randi Kaye from Boone, North Carolina. Randi, thank you.

CAROL LIN, CNN ANCHOR: All right. Well, while the U.S. is preparing to inaugurate a president, Iraqis are preparing to elect one. And security is the forefront in both countries.

Let's begin in Baghdad, where there were four suicide car bombings today, killing more than two dozen people. Militant Abu Musab al-Zarqawi's network has claimed responsibility.

The deadliest attack was near police headquarters in eastern Baghdad. Eighteen Iraqis were killed there. The bombings come despite heightened safety measures ahead of January 30 elections.

Now, in 11 days, polls are set to open across Iraq. But it's anyone's guess how many people will actually turn out. Some Iraqis are simply too afraid to vote. CNN senior international correspondent Nic Robertson is in Mosul, where some involved with the election have been threatened and killed.

(BEGIN VIDEOTAPE)

LT. COL. MIKE GIBLER, TASK FORCE OLYMPIA: They don't know where any of the law enforcement soldiers are.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): Lieutenant Colonel Mike Gibler's day is not going quite as he planned.

GIBLER: Why, isn't he an officer?

ROBERTSON: Indeed, the last few weeks were not exactly what he expected either. The recent mass resignation of Mosul's election, officials throwing an additional burden on him and his troops.

GIBLER: Where do they say he is now?

ROBERTSON: And now the Iraqi officer he had arranged to meet can't be found, costing him time he can ill afford.

UNIDENTIFIED MALE: Come on in.

GIBLER: How are you doing, sir?

ROBERTSON: Best of buddies when they do meet, but pressures mounting on both men to convince voters in their sizeable segment of this city of about 1.7 million people they should come out and vote on election day.

GIBLER: Reversing the perception that they can't go vote, and it's not secure to vote, I think is important. And we do that by showing that there is a secure environment.

ROBERTSON: That message boosted here on a radio call-in show.

GIBLER: I and people like Colonel Harris (ph) here will continue to fight this fight for you to help you have an opportunity to vote.

ROBERTSON: Callers mixing election queries with criticism of U.S. troops.

GIBLER: The events that are occurring that are causing the most injuries to Iraqi citizens are not being done by us. They're being done by the terrorists and the AIF.

ROBERTSON: A common thread in many questions, and particularly poignant at this radio station, where some staff say they've been kidnapped or threatened for what they assume is their support of the Iraqi government and elections, is how to rid the city of insurgents.

GIBLER: The answer to solving this problem is that we need your information to identify who these people are so we can take care of them and we can kill them.

ROBERTSON (on camera): And the message isn't just being broadcast over the airwaves. It's been taken out to the streets, to the mosques, to convince the religious leaders to encourage their people to vote.

(voice-over): A new approach also intended to stop insurgents using mosques as they did in Falluja. The U.S. outreach here finding fertile soil.

"People would like to vote," this mosque official says. "If the area was secure." Adding, "Though people are worried insurgents will kill them the following day." At other mosques and in other encounters we witnessed, the replies seem to be the same.

UNIDENTIFIED MALE: Tell him that I will make things safe for you to vote.

ROBERTSON: Perception of good security will enhance turnout.

UNIDENTIFIED MALE: To have a free Iraq...

ROBERTSON: Back at the radio station, one employee told me he thought 85 percent of people wanted to vote. Perception among U.S. troops, Lieutenant Colonel Gibler included, is that Iraqis will have to expect pain in this process.

GIBLER: As we go down this road, we continue to reinforce the security peace. And it's not going to be completely safe. And, you know, our nation has struggled through it and other nations have struggled through it.

ROBERTSON: And such are the security fears. Even the location of the polling stations have yet to be announced.

Nic Robertson, CNN, Mosul, Iraq.

(END VIDEOTAPE)

HARRIS: And here in the United States, a long Democratic tradition plays out again in Washington tomorrow. President Bush takes the oath of office to begin his second term after the swearing- in ceremony at the U.S. Capitol. The highlight of the day is the inaugural parade. It begins at the Capitol and moves on to Pennsylvania Avenue, past some of Washington's most notable landmarks.

While thousands of people are expected to turn out for the parade, vast sections of Pennsylvania Avenue are off limits to the public. They are reserved solely for guests, screened by the Bush inaugural committee.

Onlookers lucky enough to get a good spot will be treated to marching bands, military units and floats, plus units featuring horses and dogs. The roughly two-hour parade finally comes to an end at the White House.

We check in now with CNN senior White House correspondent John King with a look at what's going on now.

Hi, John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: A wintry look, Tony. Those who are participating in the ceremonies tomorrow at least will have some snow on the ground here in Washington. Unclear still as yet whether there will be snow falling during the festivities.

Already some evidence, though, that the weather is having an impact. One ceremony planned later today down at the Elipse has been cut back from a two-hour ceremony to a one-hour ceremony because of the weather. We are told that a military fly-over has been canceled, also a plan to drop some paratroopers from the sky on down to that even canceled because of the weather conditions here in Washington.

President Bush, of course, preparing for this big event. He says he hopes to soak it in and enjoy it more than he did four years ago, when he admits to being a little nervous.

The president trying to get a piece of that history today, taking a tour of the National Archives. You see him here with the first lady.

The president took a look at the Declaration of Independence, the Constitution. He also took a look at two pages from George Washington's handwritten inaugural address from back on April 30, 1789. The Capitol then was in New York City. That's where President Washington delivered his first inaugural address.

President Bush, of course, will deliver his here in Washington tomorrow. It comes at a time of the continuing war on terrorism. It comes at a time when the president has an ambitious domestic agenda.

But, again, the president told me yesterday in an interview that he hopes, yes, he'll discuss his agenda, yes, he knows there are concerns for the nation, but he says he wants to soak in this moment. He was a bit nervous the first time. This time the president says he will be a participant, giving a big speech, taking an important oath, but also he hopes to be a spectator as well.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'll be a better spectator than I was the first time. The first time I was pretty well overwhelmed by the moment and stayed focus on delivering the speech. I would hope that after four years as the president, I'll be not only be able to not only stay focused on delivering the speech, but will also be able to take in the sights and sounds of this glorious moment.

(END VIDEO CLIP)

KING: Now, the president's family here at the White House this afternoon. They had a luncheon here, the Bush family, in the residence. The president later today will take one more time to go through his full inaugural address. Aides say it runs about 17 minutes.

And as you watch the speech tomorrow, listen closely. It's interesting. The president's first term defined by terrorism. He, himself, has called himself the wartime president.

The White House says the president's speech will be very optimistic, talking about the power of liberty and democracy. An effort by this president as he starts his second term to have a bit of a softer term, if you will, to take that war definition out just a bit, at least the president hopes -- Tony.

HARRIS: Nice to hear that he's a little nervous. It is a big occasion. John King at the White House. John, we appreciate it. Thank you. LIN: And an expensive occasion as well.

This week's inauguration festivities cost a small fortune, but the money's not coming out of the U.S. Treasury. So who's picking up the tab? Some answers from CNN's Judy Woodruff.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN CORRESPONDENT (voice-over): Who's paying for this and this and this? No, it's not you, the taxpayer. Unless, of course, you wanted to be.

DAN BARTLETT, WHITE HOUSE COUNSELOR: We're a nation at war. But we do believe it's important that through privately raised money that we ought to go forward with the inaugural festivities.

WOODRUFF: The fact is, nearly half of the inaugural budget is made up of money from big business, huge companies and Wall Street rainmakers looking for an in with the administration. Under the campaign finance laws, these corporations are prohibited from giving directly to candidates. But there is no legal cap on the amount they can pump into the inaugural fund. And those who pony up likely expect a lot of bang for their bucks.

None of this is new. Corporations have funneled money into the inaugurations of past presidents, as well.

GEORGE HERBERT WALKER BUSH, FMR. PRESIDENT OF THE UNITED STATES: And I will faithfully execute the office of president...

WOODRUFF: But this is the first time the law requires the inaugural committee to disclose its list of donors.

THOMAS EDSALL, "WASHINGTON POST": It is an economic decision they're making. They're saying that it is worth the $250,000, $500,000, whatever, to do this, that the benefits flowing to their company or their trade association are well worth that investment.

WOODRUFF: So, let's follow the money. Team Bush is hoping to raise $40 million for this week's official festivities. As of Friday, it had nearly $30 million in its coffers.

On its Web site, the inaugural committee lists 200 donors. More than half are corporations or firms. Among those who've given $250,000, hotel giant Marriott International, communications titan AT&T, pharmaceutical goliath Pfizer, and TimeWarner, the parent company of CNN.

EDSALL: There are a whole group of network of donors, all of which, or almost all of which have various interests with government that they pursue, and find contributing to be a very beneficial part of the process.

WOODRUFF: And we're just talking about the official events here. All this week, lobbyists and corporations are wing and dining the powerful at a slew of private parties across Washington. And for shindigs like these, reporting requirements vary. Making that money trail a tough one to follow.

Judy Woodruff, CNN, Washington.

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LIN: CNN inauguration coverage begins at 3:30 today with Wolf Blitzer and Judy Woodruff. For the most complete coverage of tomorrow's presidential inauguration, of course you're going to want to stay with CNN because we've got live coverage all day.

HARRIS: President Bush's nominee for secretary of state has cleared a major hurdle in the confirmation process. The Senate Foreign Relations Committee voted 16-2 today in favor of Condoleezza Rice's nomination.

The two dissenting votes were from former Democratic presidential candidate John Kerry and Democratic Senator Barbara Boxer. During two days of hearings, Democrats on the committee pressed Rice to acknowledge the Bush administration has made mistakes and misled the American people regarding the war in Iraq. A full Senate vote on the nomination is expected tomorrow.

On this inauguration eve, the Democrats have a message for the president.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Mr. President, congratulations. Democrats are eager to work with you. But make no mistake, we will not abandon our long-held principles. On Social Security...

(END VIDEO CLIP)

HARRIS: It sounds nice, doesn't it? But the rest of the ad has some fighting words. We'll talk about it ahead on LIVE FROM.

And from Capitol Hill to Main Street, a police chief has his second-term wish list for help defending his town from terrorists.

And later, a new development for Martha Stewart, now conspicuously absent from the Internet. Details in our business report.

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LIN: Our weeklong series, "What's In It For Me," looks at President Bush's second-term agenda through the eyes of average Americans. Now, in part three, CNN national correspondent Kelly Wallace turns to homeland security.

(BEGIN VIDEOTAPE)

CHIEF JOHN POLLINGER, MIDDLETOWN, N.J. POLICE CHIEF: Is she coming in for a restraining order?

WALLACE (voice over): Spend time with Middletown's police chief, and you'll see John Pollinger is a no-nonsense kind of guy. He says he lost any tolerance for whining right after the September 11 attacks.

POLLINGER: If those people could somehow reach out from the grave and shake us and say, you don't have any complaints, you don't have problems, the world would be a better place.

WALLACE: The emotions still so raw in the community hardest hit by what happened just across the river three and a half years ago.

(on camera): Do you remember that day like it was yesterday?

POLLINGER: Oh, yes. And I along with everybody else.

WALLACE (voice over): At least once a month, Pollinger says he visits this memorial with tributes to the 37 residents of Middletown, New Jersey, who died in the attacks.

POLLINGER: And I guess the biggest thing that I faced that day was the sense that I couldn't protect them.

WALLACE: His main wish for the president's second term? Federal officials paying closer attention to local law enforcement.

POLLINGER: And we give you an honest, documented and valid opinion as to why we need what we need. Listen to us.

WALLACE: Because Pollinger says local communities like his are not getting the federal money they need. He blames the federal bureaucracy and special interest politics.

POLLINGER: Instead of whining about it anymore, I just come to realize that I don't think the answer is going to come from the federal government at all.

WALLACE: He says local police chiefs need to learn how to do more with less. For instance, he says when there were fears in 2003 a ferry could be used in a terror attack, he moved officers from the streets to the ferries.

POLLINGER: It could come from a ferry leaving my town. And I thought, 'No, I'm not going to let that happen. It's not going to be in my town.'

WALLACE: Frustrations over resources and a lower tolerance for what he now considers petty complaints are the reasons Pollinger says he'll retire this year after seven years as chief, 28 years in all with the force. But until then...

(on camera): How much do you worry about a terrorist attack happening in a place like Middletown?

POLLINGER: I worry about it every waking moment.

WALLACE (voice over): A worry not likely to ever go away in this community forever linked with September 11. Kelly Wallace, CNN, Middletown, New Jersey.

(END VIDEOTAPE)

LIN: Our series "What's In It For Me" takes up Social Security when it continues tomorrow on CNN's "AMERICAN MORNING," beginning at 7:00 a.m. Eastern.

HARRIS: Defending America against a terror attack. Ahead on LIVE FROM, why the oceanfront may be the port of call for a crippling strike.

(COMMERCIAL BREAK)

HARRIS: Big news in our household, that's for sure. Martha Stewart going offline, at least when it comes to selling her products.

LIN: All right. Susan Lisovicz joins us from New York with news on that.

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