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The Situation Room

President Bush Chooses White House Insider to Replace Sandra Day O'Connor; Authorities Investigate New York Boating Accident; Will New Orleans Levees Hold?

Aired October 03, 2005 - 15:00   ET

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

WOLF BLITZER, CNN ANCHOR: I'm Wolf Blitzer. And you're in THE SITUATION ROOM, where news and information arrive at one place simultaneously. Standing by, CNN reporters across the United States and around the world to bring you the day's top stories.
Happening now, it's 3:00 p.m. in Washington, where the new chief justice takes his seat, perhaps for decades to come. But attention is already shifting to the president's pick for another Supreme Court seat, a White House insider, a veteran lawyer, but never a judge. Is she the right pick?

It's 2:00 p.m. Central in New Orleans. As residents return to the city, can the levees hold?

And it's 3:00 p.m. in Lake George, New York, where we're waiting to find out if investigators will raise a sunken tour boat, trying to learn why it capsized, killing 20 elderly passengers.

You're in THE SITUATION ROOM.

First Monday in October, it's a very big day at the U.S. Supreme Court, a new term, a new chief justice, and a new nominee. Chief Justice John Roberts took the bench today. He may be there for a generation. He'll preside over an agenda that already includes key cases on abortion, assisted suicide, the death penalty.

For all the -- for the all-important swing seat now held by the independent-minded Sandra Day O'Connor, the president has named Harriet Miers, his trusted White House counsel, his former personal lawyer, and an outspoken loyalist. With no judicial experience, she presents a blank slate of sort for Senate scrutiny.

Up first, the president's pick.

Let's go to the White House. Our correspondent Suzanne Malveaux is standing by with the latest. Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Wolf, this is really classic President Bush.

Of course, he says he's known her for more than a decade. He knows her heart. He knows her character, essentially, White House aides saying that he feels very comfortable with her, that he trusts her. This is somebody who has been giving him legal advice since the days that he was Texas governor. Now, of course, President Bush making this announcement today, but it was just last night in the White House residence, he had dinner with her and the first lady, making that offer official to her. And then, before that, of course, it was Miers who was in charge of the search committee to help find the president, of course, the nominee, the pick here. And that is why people are kind of scratching their heads wondering, well, some people even saying, is this cronyism?

Now, President Bush and White House aides say it was over the summer when she was actually instrumental in trying to vet some of these candidates that President Bush himself began to see her as a possibility.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: This is not a position that Harriet sought. She was someone, who, as I mentioned, was involved in the selection process. But as others on this committee were looking at credentials and qualifications, and the president as well, they recognized that she was someone who had the kind of qualifications and experience and judgment that was needed to serve on the nation's highest court.

(END VIDEO CLIP)

MALVEAUX: Now, Wolf, I just talked to Dan Bartlett, White House counsel here of course, who said that she was not even aware that she was being considered for this post for months. It was not until 12 days ago, when the president sat down face to face with her for an interview, when this initial process began.

There is quite a bit of criticism, but the White House very much ready for that criticism, the fact that she does not have any experience as a judge, the fact that some see this as a potential cronyism with the Bush administration. They say, take a look at her record and take a look at fact that the president trusts her. They believe already, with some of the comments from Democratic leadership, that they're going to be able to push her through.

Wolf.

BLITZER: Suzanne Malveaux at the White House. Thanks very much, Suzanne.

A vast majority of Americans heard Harriet Miers' name for the first time this morning when President Bush introduced her.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I have known Harriet for more than a decade. I know her heart. I know her character.

BLITZER (voice-over): She's well-known to President Bush. But to the rest of us, she's a virtual stranger. The picture is much less clear. Harriet Miers is a product of Texas. She was born in Dallas in 1945. She graduated from Southern Methodist University with a mathematics degree and then stayed there to get her law degree as well. Her White House bio is full of a lot of firsts. In 1972, she was the first woman hired at a top Dallas law firm. Twenty-four years later, she became that firm's first woman president.

Miers became the first woman president of the Dallas Bar Association in 1985. And seven years later, she became the first woman to lead the state bar the Texas.

BUSH: For the past five years, Harriet Miers has served in critical roles in our nation's government, including one of the most important legal positions in the country, White House counsel.

BLITZER: Miers' relationship with the president goes back decades. She was his personal lawyer back in Texas and served as general counsel for the transition team for then-governor-elect George W. Bush in 1994.

The next year, Governor Bush appointed her chair of the Texas Lottery Commission. Miers came to Washington with President Bush in January 2001, rising from a presidential assistant to her current job as White House counsel. Through it all, Miers says she was motivated by a love of the law.

HARRIET MIERS, SUPREME COURT JUSTICE NOMINEE: From my early days as a clerk in the federal district court and throughout almost three decades of legal practice, bar service and community service, I have always had a great respect and admiration for the genius that inspired our Constitution and our system of government.

(END VIDEOTAPE)

BLITZER: Two other interesting notes by Harriet Miers.

She's run for office. In 1989, she was elected to a two-year term on the Dallas City Council. She chose not to run for reelection.

And on a personal note, Miers has never married. Her mother and three brothers live in Texas.

It's one of the deadliest boating accidents in recent memory. In Upstate New York, federal officials are now trying to pinpoint what caused a tour boat full of elderly passengers to overturn and sink, killing 20 people.

And we're getting news in just now. CNN's Susan Lisovicz is joining us from Lake George in Upstate New York. And she has more. Susan, what do you got?

SUSAN LISOVICZ, CNN CORRESPONDENT: Good afternoon, Wolf. Well, all day long, we have seen a steady progression of activity here in Lake George behind me, but that pace has certainly picked up in the last hour or so. And now CNN has learned that we expect the Ethan Allen to be raised within the next two hours or so, that source coming from the Department of Environmental Conservation.

Many officials here on the scene today. And if you just look behind me, only about 600 feet offshore, now you can see that this very narrow sliver of water has been cordoned off. Oranges buoys, we believe, mark the spot where the Ethan Allen lies submerged in 70 feet of water, and a handful of divers nearby.

This is a very tedious, very delicate operation. And what they are trying to do is get some inflatable devices and very slowly and carefully raise the Ethan Allen, obviously a critical piece of the investigation. It's one of the worst tragedies on Lake George, an accident which caused the death of 20 people.

Among the many parties talking about this investigation today was the NTSB. Earlier today, officials said that divers were going to go down to the bottom of the lake and chart, if you will, where the Ethan Allen lies to check the condition and position of the boat, a very tedious, sort of a time-honored process. And they apparently have done that.

In the last hour or so, we have seen them converge on the spot, operating in very clear, calm conditions, and, Wolf, very reminiscent of the conditions that were seen here yesterday, an ideal day for boating and a very helpful day for these divers to do their very difficult job.

Back to you.

BLITZER: So the divers are there now. And they're basically marking off where this boat is. They'll raise the boat. I assume, Susan, they've recovered all the bodies.

LISOVICZ: That's right. I mean, we have -- that figure has been a pretty hard, fast figure since yesterday, since last evening, 20 people dead, 27 survivors. A handful of those people were hospitalized and only one crew member, the captain of the boat -- who, by the way, is a retired state trooper, highly regarded, well-liked, who was described today by officials as devastated by this accident that occurred yesterday in picture-perfect conditions.

BLITZER: We will stand by and we will watch that. We will have live cameras, presumably, there, Susan, and we will bring that to our viewers throughout the next couple hours.

Susan Lisovicz is on the scene for us in Lake George, a horrific accident yesterday.

Still to come here in THE SITUATION ROOM, supreme pick. Will Harriet Miers get the support of the U.S. Senate? Or is she in for a fierce battle?

And a little bit later, a suicide bombing in Bali caught on tape. Police take drastic measures to find out who's responsible.

Also, disrupting hurricanes. Scientists seeking ways to change bad weather before it hits hand. But is that really possible? We will take a closer look.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back. You're back in THE SITUATION ROOM.

The president has made clear his opinion of Harriet Miers, his newest pick for the U.S. Supreme Court, saying she's a trailblazer, even once calling her a pit bull in size six shoes. But how are Senate leaders reacting?

Joining us now is one of the top Republican members of the Judiciary Committee, Orrin Hatch of Utah, a former chairman himself. Senator, thanks very much for joining us.

SEN. ORRIN HATCH (R), UTAH: Nice to be with you.

BLITZER: You said, on September 23 -- and I will read this -- you were quoted in the "New York Times," speaking about Sandra Day O'Connor's seat that was still vacant, obviously, you said, "It's Armageddon, because I don't think the president is going to be bullied into putting somebody up that he doesn't believe in."

You think he's been bullied as a result of Harriet Miers' selection?

HATCH: No, I really don't. But he does believe in her. And I believe she's basically conservative. She's a very good person and, of course, has been a pioneer for women, especially in the law. So she's somebody I think women will like and frankly everybody else who gets to know her.

BLITZER: I heard the Senate Democratic leader, the minority leader, Harry Reid, just a few minutes ago praising her lavishly and saying he wants to get through the hearings and all of that. But it doesn't sound like, if he's the leader of the Democrats, this is going to be Armageddon.

HATCH: Well, it doesn't. And, frankly, I think it's a very, very wise choice by the president, because he may very well avoid Armageddon, because this appointment is causing some -- some type of epigastric distress to some of the conservatives, you know, in the country, because they just don't know what she stands for.

But I -- I know her quite well. I have had a lot of time with her in the office. And she's a very, very top-notch lawyer. I think she's paved the way for women. She became the partner and managing director of a large law firm with 400 lawyers in it.

You know, at a time -- when she started there, there were very few jobs that women could have. Remember what Sandra -- Sandra Day O'Connor said. She said that, when she came out of law school, graduating third in her class, they would offer her a job as secretary, but they wouldn't offer her a job as an attorney. Well, this is pretty similar for Harriet Miers as well. And I think, if you look at her record and you look at how she rose through the ranks and how she became the head of the Dallas Bar, the head of the Texas State Bar, and probably had a good chance of becoming head of the -- president of the American Bar Association, I think you have got to have nothing but respect for her.

BLITZER: As you know, there are plenty of conservatives out there who aren't necessarily thrilled with the ABA, the American Bar Association.

It's also interesting. We're getting some reaction from conservatives, real staunch conservatives, who don't sound very happy about Harriet Miers. William Kristol, the editor of the conservative "Weekly Standard" magazine, a publication you're familiar with, says he's disappointed, depressed, demoralized. He goes on to say, it is very hard to avoid the conclusion that President Bush flinched from a fight on constitutional philosophy.

Should they be that concerned?

HATCH: Well, I think you're always concerned when you have a nominee for the high court, because it's a lifetime appointment.

And of course, these high court officials make a lot of determinations that nobody else in society can make. But yes, I think they're concerned because they don't know Harriet Miers like I do and like the president does. And you know, they had been expecting -- when he said he'd like to get somebody along the orders of Antonin Scalia or Clarence Thomas, you know, she doesn't sound like she's that way, because they don't know who she is.

BLITZER: Well, you think she could be another David Souter?

HATCH: I don't think so. I really don't think so. I think she's going to be to be a solid, decent strict constructionist on the court who will really abide by the law. She has a great love for the law and has risen pretty high in the law up to this point.

BLITZER: But -- but there's no judicial experience that she has. Is that a problem?

HATCH: Not at all. There have been at least 40 justices on the Supreme Court who had no prior judicial experience. Just -- just to mention some, you go from Frankfurter to Rehnquist, with Byron White, Hugo Black, William O. Douglas. You go right down the line, Powell. None of them had prior experience. And I think two of the three of the last three Supreme Court chief justices were -- came not from the bench, but from the private sector.

BLITZER: Interestingly, she's drawing more fire from the right than she is from the left right now.

Listen to Mark Moller, who is the editor of the "Supreme Court Review" at the Cato Institute, which, as you know, is a conservative think tank here in Washington. "Here's what we do know," he says. "Polls are driving President Bush's court picks at a low ebb in his presidency. The president has passed over well-known, if controversial, constitutionalists and chosen a sphinx-like presidential pal."

Those are pretty strong words.

HATCH: Well, and I think -- you know, the Cato Institute is a good institute, but it's more of a libertarian institute. And frankly, you know -- and very highly respected, by the way, by conservatives. But to make a long story short, I think they should reserve judgment, because I think they're going to be very well pleased with Harriet Miers. And you know, knowing her like I do, she's a solid, dependable, decent, honorable person who has really stuck with the president and I don't think is going to embarrass the president when she's on the court.

BLITZER: Senator Hatch, listen to what your liberal Democratic colleague, Senator Schumer of the Judiciary Committee, said a little while ago, earlier this morning.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: We know less about this nominee than we knew about John Roberts in terms of judicial philosophy, in terms of legal background. And because this nomination is for the swing seat on the Supreme Court, it means learning the nominee's judicial philosophy is going to be even more important than it was for John Roberts.

(END VIDEO CLIP)

BLITZER: You want to respond to that?

HATCH: Well, you know, the vice president headed the committee to select the vice president, and he became the vice president. Harriet Miers headed the committee to select the Supreme Court justice, and she's going become a justice on the court. I think Senator Schumer wants to head the next committee. That's my opinion.

(LAUGHTER)

BLITZER: All right. Senator Hatch, you used to head that committee, so you know what it feels like.

HATCH: I do.

BLITZER: Thanks very much for joining us, Senator Orrin Hatch of Utah. He's the ranking Republican on the Judiciary Committee.

Still to come, suicide bombings caught on tape. Now police go to extreme measures to track down those responsible.

Plus, disrupting hurricanes. Is it really possible to stop a monster storm before it strikes? We will take a closer look.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

We're standing by to see something very dramatic and very sad happen in Lake George, New York. That's in Upstate New York. It's about an hour north of the state capital in Albany.

They're going to raise this 44-foot excursion, the Ethan Allen, which -- which simply capsized yesterday. There were 47 people on board. Twenty of them, mostly elderly people on a tourism cruise from Michigan, have been -- been found dead. And they're going to be raising this boat within the next hour or two. We're standing by to bring you that live. You'll see that boat come from these waters of Lake George. We will go there as soon as that happens.

In the meantime, let's go to CNN's Zain Verjee. She's joining us from the CNN Center in Atlanta with a closer look at other important stories making news. Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, Wolf.

Investigators in Bali are hoping to identify three suicide bombers from photographs of their remains. The bombers killed themselves and 19 others in attacks on a popular tourist destination in Bali on Saturday. At least 130 more people were injured. Several of the casualties were Western tourists. It was three years ago this month that terror attacks on two nightclubs in Bali killed 202 people.

Palestinian police, fed up with their inability to control Hamas militants in Gaza, stormed the legislature today to demand more support. The policemen say they are outgunned and more poorly equipped than Hamas. The legislature, meanwhile, set a two-week deadline for Palestinian Authority President Mahmoud Abbas to form a new government or face a no-confidence vote.

Vice President Dick Cheney traveled to North Carolina today with a message of support for Marines at Camp Lejeune. One hard-hit unit based there has lost 48 troops in Iraq, 14 of them killed in back-to- back attacks over the summer. Cheney told the Marines that their losses are irreplaceable and that the United States will honor the dead by completing the mission.

An outbreak of E. coli in Minnesota is prompting a recall of certain Dole Foods packaged salads. The Food and Drug Administration says at least 11 people have been sickened after eating the salads and two of them hospitalized. The suspect packages of Classic Romaine, American Blend and Greener Selection carried best-if-used-by dates of September 22 or 23.

Wolf.

BLITZER: Getting back to that terrorist suicide bombing in Bali, Zain, what are the Indonesians and other countries in the region doing to bolster their security? VERJEE: Well, obviously, in the wake of the attacks, they have all bolstered their security. Look at Thailand, for example. Specifically, what they have done is said, let's have more vigilance over at some of the tourist resorts we have.

Australia is on alert. Indonesia also on high alert. The Philippines is saying what we're going to do is try and do a much better job of intelligence gathering on all the militant groups in the region. And Malaysia has increased its defenses at embassies at and the border.

Suspicion, Wolf, falling on a group known as Jemaah Islamiyah in Indonesia. They have been linked to al Qaeda before. And local and regional officials say the reason it's so important for the whole region to be on alert is because Jemaah Islamiyah has contacts throughout the region. And it's very, very easy for them to move from country to country. Some of them have been to school with each other and they -- they can get around quite easily.

Wolf.

BLITZER: All right, Zain. Thanks very much. We will check back with you soon.

Are high gas prices having a ripple effect on auto sales?

CNN's Ali Velshi is joining us now live from New York with the "Bottom Line." What's the answer, Ali?

ALI VELSHI, CNN ANCHOR: Well, Wolf, as we get further and further away from Hurricane Katrina, the numbers start to pour in that kind of play out what we thought would happen.

Gas prices are in fact having an impact on auto sales. With the auto sales numbers that all come in today for the month of September, we're seeing U.S. automakers taking a bit of a hit on this. And I will tell you what a bit of a hit means.

Ford's numbers down 19 percent -- that's overall numbers. When you take into account the trucks and SUVs, the light trucks and SUVs, which lead this market, down 27 percent.

General Motors down 24 percent, although some people think that General Motors may have had an inflated number through the course of the summer because they had that employee discount for everyone. That came off in August. And they already saw numbers, you know, sales turning down on those.

Chrysler, the American division, doing not as badly. They're actually up 4 percent, after having a good month in August.

Now, non-U.S. manufacturers seem to be doing a little bit better in this environment. Nissan doing a lot better, actually, 10 percent -- 16 percent higher for the month of September, in terms of car sales. However, they did say that the last 20 days of September slowed down compared to the summer. Toyota, up 10 percent. And BMW up 1.6 percent.

Now, with Nissan in particular, the winner here, Nissan has been introducing a lot of smaller vehicles recently. And a little while ago we sat down with the CEO of Nissan, Carlos Ghosn, who is very well known in the auto industry as a bit of a visionary. And he said that he could feel the slowdown in car sales coming.

Here's what he had to say.

(BEGIN VIDEO CLIP)

CARLOS GHOSN, CEO, NISSAN: For the first time since the oil price started getting up, we're seeing a slowing down in the market during the month of September. And on top of the fact that the total market went down, we're seeing a shift in the kind of cars consumers are buying, stabilization in the SUVs and large pickup truck, much stronger demand into the lower end of the market and normal sedans.

(END VIDEO CLIP)

VELSHI: And that's big, Wolf, because if -- if -- if somebody like Carlos Ghosn is saying that, you know what, we are seeing people shift towards smaller cars and you're not going to see that continued growth in SUVs and trucks, that's kind of interesting. That means that maybe Americans are getting the message about high gas prices.

Wolf.

BLITZER: Well, some of those SUVs are hybrids though, and they do have better gas mileage.

VELSHI: Yes.

BLITZER: Presumably. So, maybe those cars will pick up.

VELSHI: That might be the compromise, that -- that people want to keep their big cars, but you start getting into hybrids and more fuel- efficient vehicles. That may be the way to survive these -- the prices that they are -- that we are seeing now.

BLITZER: All right, Ali, thanks very much. We will get back to you at the top of the hour.

A month after Hurricane Katrina, new concerns about some of those New Orleans levees. We will show you what has engineers worried right now.

Plus, all eyes on the sky for a rare spectacle, a solar eclipse. We will show you what millions of people saw.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. In New Orleans, crews are patching broken levees and pumping out what water remains. Now the U.S. Army Corps of Engineers says it expects to declare the city dry by tomorrow or Wednesday.

Let's get an update on what's happening in New Orleans. For that, we'll turn to CNN's Lisa Sylvester. She's on the scene for us today. What's the latest, Lisa?

LISA SYLVESTER, CNN CORRESPONDENT: Well, Wolf, we're in one of the neighborhoods where you can see that the debris removal has been going on in earnest. They've been trying to remove a lot of these trees in this area.

But even as residents start to filter and make their way back into the city, there's new concerns -- another problem, and that is, you've got a storm headed this way. Some thunderstorms are expected as the week goes on. That, coupled with rising tides, is creating quite a bit of a problem. And the Army Corps of Engineers is very concerned in that they might have an overtopping of some of the levee systems. They've been trying to shore up those breached levees, those levees that were breached in Hurricane Katrina, using sandbags and such, just as a precautionary measure at this time.

But as residents are beginning to come back, we're finding that they don't have a whole lot to come back to.

Take a look at this, Wolf. You can see, this is essentially the contents of someone's home, 36 years worth of household goods that have been accumulated, just completely ruined. We want to talk to one of the residents, Reggie Sam. Reggie's mother actually lives -- lives in this house. And what is the condition like inside the house?

REGGIE SAM, NEW ORLEANS RESIDENT: Deplorable. Really bad. Messed up. Nothing worth saving. Very little, if possible.

SYLVESTER: You grew up in this house, right? I mean, for you -- this is your childhood home. And to see it in the condition that is it now, what does that do for you? What kind of feelings does that bring out?

SAM: We had so much stuff here, it's heartbreaking. Really don't know what to say.

SYLVESTER: How long are you planning on staying in the area? Did you just come to check it out and then you're planning on leaving again?

SAM: No, we're going to come back. My life is here is everything, my work, my job, my family, home, business, everything.

SYLVESTER: Now, when you go inside, you're working on your house today, trying to do what? Pulling out carpet and such?

SAM: Well, we are doing that. But right now, this is my parents' home. And my home is on 30th Street, a couple blocks further up. And then we're going to be doing that afterwards.

SYLVESTER: How much of a concern is -- all the health concerns and everything? SAM: It's pretty much serious, between Mayor Ray Nagin and the EPA, the testing area of the land, seeing if it's OK for bathing and drinking.

SYLVESTER: OK, thank you very much, Reggie. Thanks for sharing your story.

SAM: And this is a picture of my parents' 25th wedding anniversary, what's left of it.

SYLVESTER: There's not much left there, is there?

SAM: No. They was like toasting to each other.

SYLVESTER: All of these very sad memories. And you know, this is a story that, Wolf, that we should tell you has been repeated again and again. You can just drive through these streets and see block after block where entire households have been essentially emptied out. So it's going to be a long while before the city gets back on its feet.

Wolf.

BLITZER: Very sad indeed. Lisa, thank you very much. We'll get back to you in New Orleans. Our Lisa Sylvester on the scene, in Louisiana.

There are new details in the death of an Oklahoma University student, but there are many questions about the incident that took his life and caused fear and confusion on campus.

Let's bring in our Brian Todd. He's watching this story. What's going on, Brian?

BRIAN TODD, CNN CORRESPONDENT: Wolf, officials are still giving very little information on the kind of explosive device this was, and where it was in relation to this student. But we are getting insight from his own family into this young man's state of mind.

(BEGIN VIDEOTAPE)

TODD (voice-over): Joel Hinrichs' father tells CNN his son had not responded to recent treatment for depression and had been -- quote -- "living his life without optimism for a long time." When the 21- year-old's life ended, authorities say, he was sitting a bench not far from Oklahoma University's football stadium during Saturday night's game against Kansas State.

Law enforcement and school officials will only say an explosive device went off where Hinrichs was sitting, without injuring anyone else.

DAVID BOREN, PRES., UNIVERSITY OF OKLAHOMA: This device went off when others were not around. He was there by himself. He was quite some distance from the stadium or any location of groups on people. It did not occur prior to the game when a large group of people might have been there.

TODD: But the incident did cause confusion after the game and prompted school officials and local law enforcement to evacuate campus housing complexes nearby.

UNIDENTIFIED MALE: Everybody go back, please. For your own safety, please go back.

TODD: The FBI has taken the lead on the investigation. Joel Hinrichs, III, was a junior from Colorado Springs, majoring in mechanical engineering at Oklahoma. His parents are going through a divorce, but his father tells CNN he does not believe that had any bearing on Joel's apparent suicide. He says his son had no friends at all, had an inability to form attachments to people, and was very stubborn.

Joel Hinrichs wanted to live life on his own terms, his father says, and he believes his son had concluded that those terms were not going to bring him happiness.

(END VIDEOTAPE)

TODD: School officials say students have begun moving back into those evacuated housing complexes, one of which was Joel Hinrichs' apartment building. Classes resumed those morning as scheduled. Joel Hinrichs' father says he still wants to believe this might have been some kind of accident -- Wolf.

BLITZER: What a sad story that is. Brian, thank you very much. Brian Todd reporting.

We're standing by for the raising of the Ethan Allen. That's that ship, that little cruise ship that was in Lake George in Upstate New York. It capsized yesterday, killing 20 people. That boat is about to come up. We'll show it to you once that happens.

Also, it's the national conversation over energy conservation. Coming up, forget Smokey Bear, Smokey the Bear. The Energy Department introducing a new mascot to try to drive home the need for energy efficiency. He's called the Energy Hog, and he wants you save energy and to save money this winter.

And those deadly bombings in Bali. Before they happened, there were warnings that terror attacks were highly possible. Coming up, we'll discuss if those warnings were heeded.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Those deadly suicide bombings over the weekend in Bali came amid warnings by several governments including the United States that the threat of another terror attack there was high. So what does that say about terror readiness?

Joining us now discuss to this and other questions including Iraq, our world affairs analyst William Cohen. He's the president of the Cohen Group here in Washington and CEO of the Cohen Group as well. Thank you, Mr. Secretary for joining us.

, this is the same group that has done several other major terrorist attacks in that part of the world including in Bali, there were warnings. What lessons should we learn from what happened observe the weekend?

WILLIAM COHEN, THE COHEN GROUP: Well first, it's very clear that the cancer of terror has metastasized. It's no longer a single concentrated mass, but rather it is spreading throughout the body politic in many parts of the world, especially in Southeast Asia. You have this particular group maybe related to al Qaeda -- it certainly is associated with it -- trying to establish an Islamic radicalism that would run from Brunei, south Philippines, Thailand, southern part of Thailand through Indonesia into Singapore and even Malaysia.

So, that is the threat that they face. What comes -- some good news out of this is at least there was some sort of advanced warning that this was coming. Now, that means there's been some kind of improvement of intelligence, although obviously it failed here in order to prevent it from taking place.

BLITZER: Is the Indonesian government on board? Are they doing everything they should be doing?

COHEN: The question is, is everyone doing everything they should be? How do you protect yourself against someone who is willing to destroy him or herself? This is going to be a threat that we have to face in this country certainly in the future as far as suicide bombers are concerned. So the question is, how do you maintain something resembling a Democratic form of government at the same time trying to be so security conscious you preempt an attack of those that can attack you. It's going to present a real challenge to democratic forms of government in order to get the kind of intelligence, identify the individuals, track them down before they can take action it's a challenge for all of us.

BLITZER: This Jemaah Islamiyah, this group that is sort of home ground over there, it may have links to al Qaeda, but it seems to operate on its on agenda with its own objectives. What, if any, lessons, should we learn about al Qaeda as a result of what happened at Bali.

COHEN: Well, Tom Friedman, who writes for the "New York Times" and has the best selling book out, "The World Was Flat," he says technology has flattened the world, that's the good news. The bad news is technology has flattened the world. That means that Bill Gates has access to technology, so does bin Laden, so does every other follower, advocate of terrorism. They all have access to technology which can bring about catastrophic destruction.

So what we have to do is to put in place those kinds of intelligence-gathering mechanism, share that intelligence, act as quickly as we can to shut down those extremist groups. BLITZER: The vice president, Dick Cheney was at Camp Lejeune, North Carolina, today speaking with marines. He says there's been -- and I'm quoting now -- "superb progress in Iraq." Superb progress, his words. But he also goes on and he says this. Listen.

(BEGIN VIDEO CLIP)

RICHARD CHENEY, VICE PRESIDENT OF THE UNITED STATES: There's still difficult work ahead, because the terrorists regard Iraq as the central front in a war against the civilized world. We're dealing with enemies that recognize no rule of warfare and accept no standard of morality. They have declared their intention to bring great harm to any nation that opposes their aims. Their prime target is the United States. And so we have a responsibility to lead in this fight.

(END VIDEO CLIP)

BLITZER: What do you think?

COHEN: Well, I'm not sure their prime target is the United States. As we just learned, Bali became subject to attack again. We've seen attacks in Madrid. We've seen attacks in London. We've seen attacks all over the world. We happen to be the most active participant right now by being in Iraq.

Secondly, the question is superb progress? That would seem to be a bit optimistic compared to the kind of testimony that was given by the two generals basically running the campaign in Iraq right now.

But nonetheless, I think we have to see what exactly is the metric. This war cannot be won militarily. Our generals have said this. It must be won politically. That war has to be won politically in Iraq. It also has to be won politically here at home. Support has been slipping. So I think the vice president is trying to shore up that support. But we need to win it on both fronts Iraq and here.

BLITZER: I'm going to wrap it up -- slipping indeed. The "Newsweek" poll that came out yesterday, "How is Bush handling the situation in Iraq?" Thirty-three percent approve of the way he's handling the situation. Sixty-two percent disapprove. We'll leave it there, Mr. Secretary. Thanks, as usual, for joining us.

We're following this important story, a very sad story in Upstate New York, north of Albany, the state capital. Lake George, yesterday a boat capsized, 47 passengers and a captain onboard, 20 bodies have been recovered. Very soon, they're going to be raising that boat, the Ethan Allen, a glass enclosed boat.

Mark Rosenker of the -- the acting chairman of the NTSB, the National Transportation Safety Board is in Lake George, New York. He's watching this. He's joining us on the phone. Mr. Rosenker, thanks for joining us. What's the latest?

MARK ROSENKER, ACTING CHAIRMAN, NTSB: Wolf, it's a pleasure to be with you today. And before I begin, I just want to say on behalf of the members of the staff of National Transportation Safety Board, we want to offer our condolences to those families that lost their loved ones yesterday. And particularly our thoughts and prayers to go to the survivors of everyone that was on the boat today.

So, I want to also thank the governor, Government Pataki, and his state and local officials, and particularly the Warren County sheriff and Larry Cleveland for the great work these people have done.

Lives were saved because of the great work of the local first responders and the people that lived around Lake George to help people survive. There were 27 survivors because of that great work.

BLITZER: Twenty seven survivors and the captain, is that right?

ROSENKER: That's correct.

BLITZER: So, you're about to raise the Ethan Allen now. What are we waiting to see?

ROSENKER: Well, the New York State Police, their dive unit, along with the Warren County Sheriff's Department Dive Unit, they're actually doing work of beginning the process of raising the Ethan Allen. And what they'll do is put some buoyancy collars under the vessel to begin the process of having it go to the surface.

Once it begins to surface, they'll be able to pump it out. We will tow it to a launch area. And then they'll put it on a trailer and we will take it to a secure facility where the NTSB investigators will go through that vessel with a fine-toothed comb.

BLITZER: When do you expect us to see that boat come up from the water?

ROSENKER: Well, it's going to take a number of hours. If things go well, perhaps as early as 6:00, 6:30, maybe 7:00 this evening. If not, it could be that they'll hold the process, and then we'll begin the process tomorrow. But plan is to try to surface this vessel this evening.

BLITZER: Because it gets dark around that time. Is that a problem?

ROSENKER: It could be a problem, because we don't have all of the lights that may well be necessary to do the job safely.

These folks are doing a great job right now. And they're working very, very hard, and very -- as quickly as possible to make this thing as safe and effective surface.

BLITZER: This is such a sad story. What is the working assumption right now, based on all of the evidence that you've collected so far, what happened?

ROSENKER: Wolf, it is too early to tell. We just know the facts in this. We do know that the vessel capsized. We don't know why the vessel capsized. But we will find that out. When we begin the process of examining all of the issues as far as how the operator was operating the vessel at the time, what the water conditions were, the condition of the vessel, the history of the maintenance of the vessel. All of the human factors that go in there, the survival factor along with the actual engineering aspects of the vessel and its design. We will learn a great deal about weight and balance of this particular vessel at the same time.

But there are so many things that we have to look at that it is much, much too early to be a to give you any type of even attempt to give you some idea of what in fact happened here yesterday.

BLITZER: Was there a wake, a huge wave, from another big bigger vessel in Lake George that may have caused this smaller boat to capsize?

ROSENKER: Wolf, it is not clear what was out there that caused this capsize. Some witnesses say there was no wake, some say there was. We have to do this assessment in a very scientific and methodical way if we're going to get the right answer.

BLITZER: Mark Rosenker is the acting chairman of the NTSB, the National Transportation Safety Board. Mr. Rosenker, we'll check back with you. Thank you very much for joining us.

ROSENKER: Wolf, it was a pleasure to be with you today. Thank you.

BLITZER: Thank you.

Despite his name, he wants to help you save money. Coming up, the Energy Hog, introduced today by the Energy Department. He wants you to cut off those unnecessary lights, insulate your home and find other ways to save.

And it's literally where the buffalo do roam. This is the second story we're following, in South Dakota, specifically a big buffalo round-up. We'll tell you what's going on.

(COMMERCIAL BREAK)

BLITZER: We've been talking about those deadly and horrific bomb blasts in Bali. Now, many Indonesians are recording their reactions.

Our Internet reporter Jacki Schechner is checking the situation online. She's joining us now live. Hi, Jacki.

JACKI SCHECHNER, CNN INTERNET CORRESONDENT: Hi, Wolf. There actually is a significant Indonesian blogging community. But as you might imagine, many of those bloggers do not do so in English. So as we were scrolling through, we wanted to show you one site that can help you navigate international blogs. It's called Global Voices Online. It was co-founded by Ethan Zuckerman and Rebecca MacKinnon through an Internet center at Harvard Law.

And what they do is they have a set of translators that can go through international blogs and help you tell what they're saying. For example, in the Indonesia section and also on their front page, they have a round-up of what the Bali blogs are saying. Most offering condolences for victims; many very angry with the cowardly terrorist act.

Wanted to show you a little more a little more about this site. It's a very good site to go to when there are international events. They have a world blog aggregator along the side of the site. If you click on it, it will give you a menu. And it's got a list of the blogs that they have in those countries.

For example, the Bali blog talking about the aftermath of those bombings, that there were not lines of people trying to leave at the airport. Instead, the advice that Nick (ph), he's bloging from Bali has, is that stay away from heavily populated areas right now. That would be his safest bet. If you are on holiday, don't go onto the crowded streets at crowded times.

And, finally, a tourist site that he links to. Wolf, wanted to show, just the oneness of Bali. A lot of people visiting that site right now to try to cleanse it and to make themselves feel a little bit better.

BLITZER: Jacki, thank you very much. Jacki Schechner's our Internet reporter.

You remember him from the controversy over displaying the Ten Commandments in a courthouse. Roy Moore lost his job as Alabama chief justice. Now, he's setting his sights on a new job. We'll tell you what that is.

And as we've seen so dramatically in the past few weeks, powerful hurricanes can really pack a punch, and they're deadly. So how might we fight back? We'll tell you about some new and novel ideas being considered. That will come up in our 5:00 p.m. Eastern hour. Stay with us.

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BLITZER: It's almost time for the markets to close, and the closing bell. Let's check in again with our Ali Velshi. He's in New York following all of this and more. Ali?

VELSHI: I spend a lot of time on energy, some say too much time. And as a result of that, I know things that other people don't know about energy. And while a lot of people were covering a press conference by Energy Secretary Samuel Bodman today, talking about energy efficiency, they felt that this hog, the Energy Hog, was first unveiled today. I know that the Energy Hog was unveiled in 2004, designed to make kids and their parents aware of energy efficient behavior.

The Energy Hog is a spokesvillain. It's a computer-generated creature that appears in the homes of families who aren't using energy efficiently. And this is what the Energy Department has had to resort to, Wolf, in a campaign to tell people, give people some tips on how to save energy.

Samuel Bodman today making some comments about using insulation, repairing weather-stripping, installing a thermostat. He's saying that Energy Department will, in fact, go to businesses and help them become more efficient. They're looking at ways in the government to make things more efficient. He says high gas prices are here to stay and he had some tips for drivers. Let's listen in.

(BEGIN VIDEO CLIP)

SAMUEL BODMAN, ENERGY SECRETARY: There are substantial savings that can be made, for example, in driving an automobile. If one reduces the speed that one is driving from 65 to 55, you can save 10 percent on gasoline mileage. If one inflates the tires to the recommended amounts, if one gets -- makes sure that the engine on the car is tuned. All these things are relatively simple, straightforward things that, frankly, we all ought to be doing.

(END VIDEO CLIP)

VELSHI: I, for one, probably would have not gone with the Energy Hog.

(STOCK MARKET REPORT)

BLITZER: Ali, thank you very much. It's 4:00 p.m. here in Washington.

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