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The Situation Room
Help Wanted at the White House; Shooting the Messenger?; Giuliani and the Religious Right; Exxon CEO Granted Enormous Retirement Package
Aired April 19, 2006 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: And to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time.
Standing by, CNN reporters across the United States and around the world to bring you tonight's top stories.
Happening now, help wanted over at the White House. The press secretary, Scott McClellan, calling it quits. And adviser Karl Rove giving up policymaking.
It's 7:00 p.m. here in Washington, where the president's team is getting more of a makeover. But will it help? And who might be next?
Also this hour, anger at the oil industry. With gas prices soaring, should Exxon's former CEO be getting a rich retirement package, hugely rich? Tonight, "The Bottom Line" on where your fuel dollars are going.
And new information coming out now about a congresswoman's controversial encounter with Capitol Police. Did Cynthia McKinney hit an officer with a closed fist? We now have the police report in hand. We'll tell you what it says.
I'm Wolf Blitzer. You're in THE SITUATION ROOM.
Tonight, President Bush is looking for a new messenger after a critical day of house cleaning over at the White House. Press Secretary Scott McClellan did what many people thought he might do. He handed in his resignation.
A less expected move, though, the deputy White House chief of staff, Karl Rove, now has a new job description. More politics, no more policy for one of the administration's biggest lightning rods.
Our Candy Crowley is standing by. So is our Ed Henry.
Let's go to Suzanne Malveaux first at the White House -- Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, the president's new chiefs of staff, Josh Bolten, is making it very clear that he has broad authority. He is making recommendations to the president, and the president is accepting them.
As two weeks ago, when we reported, Republican sources saying Josh Bolten is focusing on making changes in White House communications. Specifically, starting at the podium.
(BEGIN VIDEOTAPE)
MALVEAUX (voice over): White House Press Secretary Scott McClellan announced his departure very much like his arrival, shoulder to shoulder with the president, clearly emotional.
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I have given it my all, sir, and I have given you my all.
MALVEAUX: Promoted from deputy press secretary nearly three years ago, McClellan knew he had inherited a political firestorm. The U.S. had just invaded Iraq a couple of months before and McClellan was faced with an increasingly skeptical press corps over faulty prewar intelligence.
MCCLELLAN: I think we've made it very clear that we are confident that we will uncover the full extent of Saddam Hussein's weapons of mass destruction program.
MALVEAUX: In the words of McClellan's predecessor, he would become the human pinata, as the most visible face of the White House, second only to the president. He religiously stuck to his talking points, but also used humor.
MCCLELLAN: It may not look like it, but there's a little flesh that's been taken out of me the last few days.
(LAUGHTER)
MALVEAUX: But McClellan got stuck over some inconsistencies; namely, over the involvement of top advisers Karl Rove and Scooter Libby in the CIA leak case.
UNIDENTIFIED MALE: You've got a public record out there. Do you stand by your remarks from that podium or not?
MCCLELLAN: And again, David, I'm well aware, like you, of what was previously said. And I will be glad to be talk about it at the appropriate time.
MALVEAUX: The president remained loyal to his spokesman. McClellan was a member of Mr. Bush's inner circle from his days as Texas governor, serving as his press secretary there in 1999 before following Mr. Bush to Washington.
But now with just two and a half years remaining to get anything done, Mr. Bush's agenda has stalled, his poll numbers plummeted, and his relations with Congress, controlled by his own party, strained. As CNN first reported two weeks ago, Mr. Bush's new chiefs of staff was looking for a fresh face at the podium to signal change.
Monday, McClellan spoke to the president about moving on.
(END VIDEOTAPE) MALVEAUX: And Republican sources say possible people to replace McClellan include FOX News anchor Tony Snow, as well as former Bush administration spokespeople Torie Clarke, Dan Senor and Rob Nichols. I also, Wolf, spoke with White House counselor Dan Bartlett late in the day, who says White House Communications Director Nicolle Wallace will be looking to move on as well in her own timetable. And as far as the rest of the week, no more personnel announcements -- Wolf.
BLITZER: Some people see the Karl Rove job description, the title changing the losing of the policy portfolio as a slap in his face. Others see it as actually something that he might want to do given his strength in politics. The Republicans are in deep trouble going into the November elections.
What are you hearing?
MALVEAUX: Well, it certainly is a very significant move considering that part of his portfolio has been removed when it comes to policy issues. But, of course, focusing on politics, many people saying that is, of course, his greatest strength, is to make sure members of Congress maintain those majorities. Republicans in both the House and the Senate, they want to make sure that he's very active on that front -- Wolf.
BLITZER: Thanks very much, Suzanne, for that.
Suzanne Malveaux reporting.
After the Scott McClellan announcement, the president and his press secretary traveled to Alabama. Our White House Correspondent Ed Henry went along. Ed's now back at the White House.
You came back on Air Force One with the president, with Scott McClellan. What was it like on that plane heading back to Washington?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, it's interesting, because, you know, the image the public sees of Scott McClellan normally is of someone who is tight-lipped, maybe a little uncomfortable sometimes at that podium, and also someone who doesn't really want to talk all the time. And instead, today we saw him on that plane, beaming, smiling, you know, grinning ear to ear, and was talking about basically the weight being off his shoulders.
You know, you saw him get emotional there when he announced it this morning, but now he realizes that after two and a half years or so, it's time to move on. And he feels loose all of a sudden and was sort of joking with reporters.
He told us he's finally looking forward to being able to wake up in the morning and look at the sports section first, instead of the politics and news sections. Those little things you normally don't get to see in the public.
BLITZER: Are you getting any sense that this is just the beginning, that a lot more changes over at the White House in the administration are in the works? HENRY: Absolutely. There are certainly still a lot of talk that this is just the beginning. Certainly not the end.
I mean, let's look at it. A lot of the jobs that have already been filled weren't really people who were pushed out. It was really -- like, the budget director job, for example, with Rob Portman, that job was open since Josh Bolten had moved over to White House chief of staff. So it had to be filled.
It's not really much of a shake-up there. So there are probably going to be other moves as well -- Wolf.
BLITZER: Ed, thank you very much.
Let's bring in our senior political correspondent, Candy Crowley. She's watching all of this and she's got some good historic perspective on these White House press secretaries -- Candy.
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Wolf, the fact that Scott McClellan might be leaving has been in Washington's groundwater for several weeks. His departure is not particularly surprising, and probably given the requirements on of the job, pretty predictable.
(BEGIN VIDEOTAPE)
MCCLELLAN: Good afternoon, everyone. And happy Friday.
The employment report shows that our economy is strong and growing.
CROWLEY (voice-over): The job of a White House press secretary is to talk about good stuff to people looking for bad stuff.
DAVID GREGORY, NBC NEWS CORRESPONDENT: Where this White House, where this administration went wrong in its response to Katrina?
MCCLELLAN: You know, David, there are some that are interested in playing the blame game.
CROWLEY: When everybody else is busy or at lunch or in a meeting or ducking calls, this job requires you show up for battle sometimes unarmed, wearing a smile, throwing out tidbits, refusing to take the bait. It was easiest the first day.
MCCLELLAN: That friendly response there is a trap.
CROWLEY: It was July of '03, the president's approval rating was 62 percent. The war was four months old.
MCCLELLAN: We are confident that we will uncover the full extent of Saddam Hussein's weapons of mass destruction program.
CROWLEY: Since then, McClellan has talked, argued, cajoled and quick-stepped his way through a war gone sour, Abu Ghraib prison abuses, the CIA leak, Katrina, the indictment of a top aide to the vice president and every et cetera in between.
UNIDENTIFIED FEMALE: Is that his gun, that shotgun?
MCCLELLAN: I'm sorry?
UNIDENTIFIED FEMALE: Was the device...
MCCLELLAN: You'll have to talk to the vice president's office and check that fact. You can check with their office.
CROWLEY: In the end you are a juggler of facts as you think you know them and facts as they turn out to be, serving at the pleasure of the president and mostly the displeasure of the media. You carry water, even when you're hung out to dry.
UNIDENTIFIED MALE: You have said that you personally went to Scooter Libby, Karl Rove and Elliott Abrams to ask them if they were the leakers.
MCCLELLAN: I spoke with them so that I could come back to you and say that they were not involved.
CROWLEY: Karl Rove and Scooter Libby did discuss the identity of a CIA agent with reporters. Katrina was an inarguable disaster. And there were no weapons of mass destruction. In the end, you can drown carrying all that water.
MCCLELLAN: I'm ready to move on. I've been in this position a long time.
(END VIDEOTAPE)
CROWLEY: He has served as press secretary for two years and nine months, but this is a job more accurately measured in dog years and headlines. One imagines McClellan would be the first one to say it was time for him to go -- Wolf.
BLITZER: Candy, as you know, and our viewers know, as important as Scott McClellan has been for the president, Karl Rove is so much more important. Democrats are saying he's got a demotion in his job, and it's a slap not only on his wrist, but maybe slap in his face.
What do you pick up having covered these guys, this administration for so long?
CROWLEY: Well, look, there's -- there's public signals. And what's the public signal here? Karl Rove, who has been a lightning rod, as you mentioned, has been moved sort of out of the policy realm. He's going to focus on politics.
What's the other signal? It says Josh Bolten is in charge here. He brought in his deputy, sort of deluded some of Karl's power.
Well, what's the reality of it? In Washington, access is what you're looking for. That's where the power is. It is difficult for me to believe that anyone with as longstanding relationship with the president of the United States as Karl Rove has, if he wants to call up and say something about policy in China or the immigration bill, I imagine the president's going to listen to him. I also think that when you talk to people, they say, look, you know, let's look at the immigration bill, you tell me where the policy stops and where the politics begin.
In Washington, they tend to be one in the same, or at least very intermingled. So, it's difficult to see that, in reality, Karl Rove still doesn't have the ear of the president as he had for some time.
BLITZER: Candy, Ed, Suzanne, three of the best in the business, thanks to all of you for joining us.
Coming up, much more on our story. Would our own political analyst, Torie Clarke, replace Scott McClellan if the president of the United States asked her to take the job? We're going to ask Torie. She's standing by. She and Paul Begala will bring their considerable White House insights to our SITUATION ROOM "Strategy Session."
That's coming up.
Also, Jack Cafferty. That's coming up right now, in fact. Jack's standing by with "The Cafferty File.
Hi, Jack.
JACK CAFFERTY, CNN ANCHOR: I'll tell you about a little deal that your agent should look into for yourself there, Wolf.
Oil and gas prices soaring around the United States. We've got a gas station in Brooklyn, New York, this clown is charging $4.50 a gallon for gasoline.
Oil giant Exxon's former CEO is retiring. And he is going to walk away from the company with his pockets bulging.
It's estimated when you add it all together, stock options, retirement package, all of the compensation, that he will have something in the neighborhood of $400 million with which to live out his golden years. But he says he's worth it. He's got no problem with it.
His name is Lee Raymond. And instead of taking any blame for this rather large separation from the company, he blasts politicians, the auto industry, Wall Street, environmentalists, and other critics for what he says is their failure to understand the nature of the energy business.
Raymond says it was Exxon's policy for employees' pay to reflect the performance of the company. And boy, has Exxon performed. Record net income of $36 billion last year.
And not everybody agrees with Mr. Raymond. Democratic Senator Byron Dorgan says the retirement package is "a shameful display of greed." He says it should be reviewed by Congress.
That would be the first thing Congress has done that amounts to anything. And it's just lip service. It won't happen. He also said it should be investigated by federal regulators. That won't happen either.
This is just talk coming out of our elected officials.
Anyway, here's the question: What's an appropriate retirement package for Exxon's CEO?
E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile.
I don't know how well CNN is doing, but I'll bet you when you and I pack up and walk out of here, we won't be looking at that kind of jingle in our jeans.
BLITZER: Maybe we should see who is agent is. And I have a very good agent. I can't complain.
Thanks, Jack.
CAFFERTY: Yes, you do.
BLITZER: We'll get back to you later.
Coming up, we're taking you behind the headlines of our top story, shake-up over at the White House.
Plus, Rudy Giuliani, get this, reaching out to the religious right, right now. We'll find out why he's teaming up with the former leader of the Christian Coalition. What does it mean? Is Rudy running for president?
Also, more on the Exxon outrage? The former CEO retired with that multimillion-dollar payoff is firing back at the critics. We'll find out why he's blasting those for blasting the oil industry.
And congressional scuffle. There's new information coming out right now about Cynthia McKinney's run-in with Capitol Hill security. We have the police report. Brian Todd has the story.
Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Let's check in with Zain Verjee. She's joining us from the CNN Center in Atlanta with a quick look at some other stories making headlines right now -- Zain.
ZAIN VERJEE, CNN ANCHOR: Wolf, today a tour of a Boeing plant in Seattle. Tomorrow a summit with President Bush. Chinese President Hu Jintao says he will not bow to U.S. demands that his country drastically revalue its currency. He stood firm on the issue during a speech at Boeing today. The U.S. wants China to revalue its currency to reduce its trade surplus.
Investigators at Atlanta's Hartsfield-Jackson International Airport are stymied after a security scare at the facility today. Checkpoints were closed and temporarily evacuated when a screener noticed a suspicious device and x-rays of a carry-on bag. Manual searches turned up nothing and operations resumed after a couple of hours. The shutdown at the busy airport caused flight delays of two hours or more
And this today. Even though more Americans are aging and getting fatter, most of us are living through it.
Preliminary government statistics show that the annual number of deaths dropped in the U.S. dropped by nearly 50,000 in 2004. Now, that's really the biggest decline in almost 70 years. Some experts don't really think that the numbers will hold up when a final report is released a little bit later this year -- Wolf.
BLITZER: Zain, thanks very much for that.
Tonight, there are new signs that Rudy Giuliani may be laying the groundwork for a White House bid. Even though he supports abortion rights, gay rights, the former New York City mayor is trying to make friends within the Christian right, a critical voting group for any GOP presidential contender.
Let's bring in our Mary Snow. She's watching Rudy Giuliani's latest moves -- Mary.
MARY SNOW, CNN CORRESPONDENT: Well, Wolf, Rudy Giuliani is campaigning for some Republicans who share very different views than he does on social issues. And it's raising questions about what it may signal for Giuliani's own political future.
(BEGIN VIDEOTAPE)
SNOW (voice-over): Just two days after Rudy Giuliani was publicly snubbed by Christian conservative leader the Reverend Jerry Falwell, Ralph Reed, former leader of the Christian Coalition, is aligning himself with the former New York City mayor. Reed is running for Georgia's lieutenant governor. And Giuliani will speak at a fund- raiser for him next month.
ARNOLD STEINBERG, REPUBLICAN STRATEGIST: It sure seems like strange bedfellows. It's sort of the material for a great "Saturday Night Live" skit.
SNOW: Reed has galvanized voters against issues such as abortion and gay rights. Those are two issues Giuliani publicly supports, and the reason why the Reverend Falwell said he could not back Giuliani, if he runs for president.
REVEREND JERRY FALWELL, CHANCELLOR, LIBERTY UNIVERSITY: We have probably irreconcilable differences on life and family and that kind of thing.
SNOW: Republican political strategist Arnold Steinberg says for Giuliani to have allies like Ralph Reed is significant.
STEINBERG: What Rudy Giuliani is doing is paying respects to the conservative base of the Republican Party and trying to diffuse their energetic, passionate opposition against him.
SNOW: And, at a campaign event for conservative Senator Rick Santorum of Pennsylvania, Giuliani made a joke at the expense of a Democrat Republicans love to hate, Senator Hillary Clinton, who was serving as New York senator at the end of Giuliani's terms as mayor of New York City.
RUDOLPH GIULIANI (R), FORMER MAYOR OF NEW YORK: And, for one year, I had Hillary.
(LAUGHTER)
GIULIANI: There's a book that just came out, Michael, that -- that does point out the one thing that Hillary and I do have in common. We are both Yankee fans.
(LAUGHTER)
SNOW: When asked at a campaign event if she expected to see more jokes at her expense, she didn't take the bait.
SEN. HILLARY CLINTON (D), NEW YORK: Oh, I have no idea. I'm running for reelection. And I'm doing the best I can to represent the people of New York.
(END VIDEOTAPE)
SNOW: And political observers note that paying respect to the conservative base takes on added importance since Giuliani's potential contender, Republican John McCain, recently mended fences with Jerry Falwell -- Wolf.
BLITZER: Thanks very much.
Mary Snow in New York.
And remember, you're in THE SITUATION ROOM, where political news is arriving all the time. CNN, America's campaign headquarters.
Still to come tonight in THE SITUATION ROOM, more on the White House shake-up. Who's in, who's out? We'll ask one woman who may be up for a job, Torie Clarke. Would she take it if offered?
I'll ask her that question. She'll join Paul Begala in our "Strategy Session."
And Congresswoman Cynthia McKinney's run-in with Capitol Hill security. We now have the police report. It says she packs a punch.
Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK) BLITZER: There are new details coming out tonight about that angry confrontation between Congresswoman Cynthia McKinney and a Capitol Hill Police officer.
Let's bring in our Brian Todd. He's now actually seen the police report of the incident. He's joining us live with an update -- Brian.
BRIAN TODD, CNN CORRESPONDENT: Wolf, the world "assault" is mentioned in this report twice. It's a short but telling account from the officer in question, and we have new information on that officer himself.
(BEGIN VIDEOTAPE)
TODD (voice over): The report does not list Congresswoman Cynthia McKinney by name. Only as S-1 for suspect. But the document obtained by CNN does name the officer she allegedly hit last month. He's listed as Paul McKenna, also as C-1 or complainant.
The report says Officer McKenna "... stated that he was physically assaulted by S-1. S-1 struck C-1 in his chest with a closed fist."
CHIEF LOU CANNON, FRATERNAL ORDER OF POLICE: I don't think that he's going to suffer any permanent damage from this physically, but I'm sure that there's -- you know, there's an emotional impact that this will always have upon him.
TODD: Lou Cannon of the Fraternal Order of Police, along with one source in the Capitol Hill Police, say Officer McKenna, who is white, is a three-year veteran with the force, is known as a very professional officer, has no disciplinary record, and has a good reputation with African-American colleagues.
CANNON: The African-American officers say that they like him. He's an incredibly nice guy and would "give you the shirt off his back."
TODD: Capitol Hill Police would not discuss McKenna's record. Contacted by CNN, McKinney's attorneys would not comment on the police report but stressed she's not been charged with a crime. McKinney's aides also would not comment.
Earlier, McKinney accused an officer of inappropriately touching her and the Capitol Hill Police of racial profiling. This, after McKinney went around a metal detector.
Capitol Hill Police deny both accusations. And even McKinney has toned down her rhetoric.
REP. CYNTHIA MCKINNEY (D), GEORGIA: I am sorry that this misunderstanding happened at all and I regret its escalation. And I apologize.
(END VIDEOTAPE) TODD: Will that apology be enough to avoid charges? A grand jury here in Washington is still considering whether to indict Cynthia McKinney -- Wolf.
BLITZER: What a story. Brian Todd, thank you very much for that.
Up ahead tonight in THE SITUATION ROOM, big changes in the Bush White House. The press secretary is out. Karl Rove is reassigned. We'll talk about that with Paul Begala and Torie Clarke. Some say she could be up for a job over at the White House. I'll ask her if she's interested.
That's coming up in our "Strategy Session."
Also, how much is too much? We have new details of the out rage over the retirement package for one oil company's CEO. Stay with us for that.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer.
Reporting more now on our top story, Bush administration shake- ups, including the resignation of the White House press secretary, Scott McClellan. Might McClellan's departure help steady what many say is shaky ship?
For some insight, we'll turn to CNN senior analyst Jeff Greenfield. He'll look back at some prior dealings between presidents and the press -- Jeff.
(BEGIN VIDEOTAPE)
JEFF GREENFIELD, CNN SR. ANALYST: Wolf, there may be a less important story than who will replace Scott McClellan as press secretary, but offhand, I can't imagine what that is. Who is at the podium just doesn't matter that much. But how the White House deals with the press and what that signifies, that is a very different matter.
(voice over): It was McClellan's misfortune to hold the job all through President Bush's steady decline in public approval. And while his robotic performances didn't help, except with his face time on "The Daily Show"...
MCCLELLAN: There is an ongoing legal proceeding...
... leading to an ongoing legal proceeding...
... an ongoing legal proceeding...
... an ongoing legal proceeding...
... an ongoing legal proceeding.
But you can't separate that question from the legal proceeding.
GREENFIELD: It is impossible to argue that this was the cause of Bush's woes. And as far as the hostility between the White House and the press corps goes, this is pretty much par for the course.
President Kennedy charmed the press with his manner and his wit. But he was angry enough with poor coverage to publicly cancel his subscription to "The New York Herald Tribune."
President Johnson doled out leaks and inside dope to favored reporters but wound up seeing the presses hopelessly addicted to the Kennedy memory.
President Nixon tried threats, promising to challenge the lucrative broadcast licenses of "The Washington Post" and dispatching his vice president, Spiro Agnew, to attack the media as a band of unelected, snobbish, biased elites.
SPIRO AGNEW, FMR. VICE PRESIDENT OF THE UNITED STATES: This goes on daily in the editorial pages of some very large, reputable newspapers in this country.
GREENFIELD: Ronald Reagan offered a kind of benign neglect, often suggesting he couldn't even hear the questions and relying on his communications skills to reach the electorate directly.
And President Clinton, seen by many conservatives as the beneficiary of a liberal press, actually got much more negative coverage in his first six months in office than did his GOP predecessor, even before the Monica Lewinsky affair turned coverage especially tough.
As for President Bush, he's governed at a time when the rise of an alternative media, radio talk shows, FOX News, the bloggers, have offered the public a steady challenge to what conservatives see as the political bias of the mainstream press. Think of what happened to Dan Rather and CBS News over its Bush and the National Guard story.
(END VIDEOTAPE)
GREENFIELD: So why then have the president's numbers dropped so dramatically? In large part, it is because on a host of issues -- Iraq, Harriet Miers' Supreme Court nomination, immigration, port security and spending -- it has been conservatives who have raised strenuous dissents. And that is something a new face at the press podium will not fix -- Wolf.
BLITZER: Jeff Greenfield, thank you very much. So does changing the messenger do anything to change the message coming out of the White House? Let's find out.
(BEGIN VIDEOTAPE)
BLITZER: Joining us now, our CNN political analysts, the Democratic strategist Paul Begala and the former Pentagon spokeswoman Torie Clarke.
Torie, I promised our viewers I would ask you head on. If the president of the United States says to you, "Torie, I need your help; the country needs you to be the press secretary at the White House," what would you say to that?
VICTORIA CLARKE, CNN CONTRIBUTOR: I don't think your viewers were asking you to ask that.
(LAUGHTER)
BLITZER: I was asking myself to ask that.
(LAUGHTER)
CLARKE: I honestly don't. You know, I was talking to my friends in the press corps today. And they weren't saying, boy, Wolf has got to ask this question.
BLITZER: The country wants to know, will Torie Clarke go back and serve this administration if asked?
CLARKE: Not happening. It's not -- it's not under consideration. They're not going to ask. I'm not going to do it. And I'm getting a little insulted. The last several times I have seen you two: "Torie, go. Go. Get out of here."
(LAUGHTER)
BLITZER: They would be smart, don't you think, Paul, to ask her?
CLARKE: I'm a little insulted.
PAUL BEGALA, CNN CONTRIBUTOR: They would.
And I do know. I have enough friends in the Republican Party that -- and this is not a shameless plug, but they're reading Torie's book.
(LAUGHTER)
BEGALA: She wrote a book called "Lipstick on a Pig..."
CLARKE: God bless you.
BEGALA: ... right, which I bought because I thought...
(CROSSTALK)
CLARKE: ... take it back.
BEGALA: "Lipstick on a Pig" was my dating strategy growing up in Texas, OK?
(LAUGHTER)
BEGALA: But, apparently, it has got a different meaning in non- agricultural areas.
(LAUGHTER)
BEGALA: And it's a terrific book about how to manage the press.
And whoever takes that job, our country would be well served -- I would rather have Torie stay here with us...
CLARKE: Thank you.
BEGALA: ... but our country would be well served, because she came through an administration I did not support, but she came through with her credibility intact. It's the most important thing you can have in that job.
BLITZER: Here's how Scott McClellan explained, in part, why he decided to resign. Listen to this.
(BEGIN VIDEO CLIP)
MCCLELLAN: The White House is going through a period of transition. Change can be helpful. And this is a good time and good position to help bring about change.
(END VIDEO CLIP)
BLITZER: He did an honorable thing by announcing ...
CLARKE: Right.
BLITZER: ... his own resignation.
I'm sure the president would like to see some other people resign who haven't announced their resignations. But he came forward. And ...
CLARKE: Right.
BLITZER: ... by all accounts, he made some blunders, but he's a very decent guy.
CLARKE: Absolutely. And I have had countless phone calls today, in talking about Scott. And I wish we had enough time to spend on it, because, whether you like or dislike him, or like or dislike this administration, he's dedicated. He's committed.
He loves this country. He would do anything that he thinks will help. And if he thinks him stepping aside is going to help the administration move forward and help the country, he will do it, so, hats off to him.
BLITZER: But it's -- he's just one messenger. And there's another bigger problem that you see, Paul.
BEGALA: Well, they don't have a communications problem. I like Scott as a guy, too, but he leaves with his credibility in tatters, because the president's credibility is in tatters. That's the problem, is that they don't have a communications problem. They have a reality problem.
They need to change the facts on the ground in Iraq. Now, I think they should change the staff in the West Wing, too. But they need to change direction. They need to change policies. And a new flack is not going to do that.
I mean, I think it's funny -- frankly, in terms of personnel, the more interesting thing is that Karl Rove, the very powerful deputy chief of staff, has been forced to give up some of that power. Now, I worked in the West Wing. Never in American history has anybody walked into the president's office and said ...
(LAUGHTER)
BEGALA: ... sir, I need less power. Sir, you need to give up -- I need to give up some of my power.
It was taken from him, presumably by Mr. Bolten, the new chief of staff. And that's an interesting West Wing power play. For Karl Rove, the most powerful person in Washington, to lose power tells you, at least, that Mr. Bush is giving Bolten a strong hand.
BLITZER: Here's how the Democratic National Committee put it in a statement they released today: "After having his hand in nearly every bad Bush policy decision and nearly every scandal that has consumed the Bush White House, it is not surprising that Karl Rove was demoted this morning. But a demotion is not enough. The president," the statement goes on to say, "has abundant reason to fire Karl Rove" -- the DNC not mincing any words.
CLARKE: There's that DNC, positive as ever.
(LAUGHTER)
CLARKE: Boy, let's do what's good for the country.
BLITZER: But do you see -- you have worked in the administration.
CLARKE: No, I think -- I -- this -- we...
BLITZER: Do you see this as a slap in his face?
CLARKE: This gets -- no. I see this, again, as a lot of people who care more about the White House and the administration than their personal agendas.
But it is significant, in that inside-baseball way. A lot of people said, is Josh Bolten really in charge? Can he really take on the big dogs?
He has. So, I think it's significant, in that regard. BLITZER: Because there was a lot of speculation in recent weeks that the president, in his own way, would trim some of the power, not only of Karl Rove, but of the vice president, Dick Cheney, as well, given the state of his political standing right now.
BEGALA: Wolf, that's the big question.
And, you know, you covered the Clinton White House when I worked there. And I thought Al Gore was a very powerful vice president. And he was. But, by all accounts, Dick Cheney is even more powerful. And, that, we won't be able to know.
It's not like they are going to release to the press that Dick Cheney has been demoted in some way. But that will be an interesting thing. Has the president lost confidence in Dick Cheney, as well as Mr. Rove?
BLITZER: Here's a -- how Scott Reed, a good Republican strategist -- worked on Bob Dole's campaign a few year ago -- didn't work out so well, that particular campaign, as you remember.
CLARKE: But they had fun.
BEGALA: He's a very smart guy.
CLARKE: They had fun.
BLITZER: He put it today -- Scott Reed is a very smart guy.
"Rove is a smart guy and knows when the winds of change are blowing. This was a clever move to restructure and make the White House functional."
That's a pretty honest assessment.
CLARKE: Sure.
And, in very cynical terms, you are going to have Karl Rove out there concentrating on nothing but political races, which he does very, very well. So, I think a few Democrats are going to sleep a little less -- a little less well tonight, knowing he's out there really focusing in on them.
BLITZER: Is that true? Are you going to be a little bit more nervous, knowing he can ...
(CROSSTALK)
BLITZER: ... devote 100 percent of his energy to getting Republicans elected in November?
BEGALA: Sure. He had been so effective on Katrina rebuilding. The president put him in charge of that. It's the biggest disaster we have seen in years. I hope he runs every Republican race.
I like Karl. I know I'm not allowed to say that as a Democrat. I go back a long, long ways with him. But, you know, he's not the alpha and the omega. What did de Gaulle say, that "the graveyards are filled with indispensable men"? I think the Democrats are going to do quite well.
And, you know, if I may quote our president, bring it on, Karl.
BLITZER: We're glad you're going to be in THE SITUATION ROOM for a long time to come. This one, not the one over at the White House.
Paul Begala, thanks very much to you as well.
(END VIDEOTAPE)
BLITZER: Did graffiti artists break into Andrews Air Force Base and deface the president's plan, Air Force One? That's what a video circulating online seems to suggest.
Let's bring in our Internet reporter, Jacki Schechner. She's watching this story. Jacki, what is going on?
JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, it's a fake. It's a complete hoax. It was a video created by Marc Ecko, a fashion designer and graffiti artist. And while a spokesperson tells me that they're very up front about what this is, that's not exactly what we found.
If you go to the Web site and you take a look, the front page has two videos. The second of these videos right here says "Marc Ecko, why I tagged or graffitied Air Force One." Take a closer look at what that looks like. It's only when you get into the little fine print at the bottom of the page that you pull up this window that explains what this is, and in this print it says this video does not depict a real event.
Not only is this not real, it's not even possible. We spoke to Andrews Air Force Base today, and a spokesperson tells me they aren't at all concerned about this video. They knew immediately that it was fake, and while they've had some 15 to 20 calls today of people who were concerned, they say their security is so heavy on all their planes, nobody could get in to do this.
And, Wolf, I asked what would happen in someone tried? And the man told me I would hate to be him. We are authorized to use deadly force.
BLITZER: They would probably shoot them. Thanks very much for that, Jacki. Appreciate it.
Up ahead tonight, platinum parachute. Exxon's former CEO retires with hundreds of millions of dollars. We'll find out why he's blasting critics now for blasting him.
And we'll also watch U.S. troops in action training Iraqi forces, trying to convince the Iraqi people they'll be safe and secure. This is a story you'll only see on CNN. While all the political bickering is going on in Washington, the troops are fighting and dying in Iraq. This is a story you should see.
(COMMERCIAL BREAK)
BLITZER: With the price of gas soaring, the retirement package recently handed out the world's largest publicly traded oil company is sparking outrage at Exxon. Some say it's shameless greed, others say it's well-deserved. Let's bring in our Ali Velshi, he's got the bottom line on this story.
ALI VELSHI, CNN ANCHOR: It is not just that Lee Raymond is taking home a lot of money. It's that he's been getting mad at people who are whining about gas prices.
(BEGIN VIDEOTAPE)
(voice-over): You probably don't know this man. For years he was the face of big oil. If you're a driver, he might be the face you want on your dartboard. Lee Raymond retired in January as the head of ExxonMobil, the most profitable oil company in the world.
American drivers currently shell out $212 million more per day for gasoline than they did a year ago, a lot of money right. So is $168 million. That's the about the value of Lee Raymond's compensation as he retired from Exxon-Mobile after 42 years. The last 12 of them as chairman. Justified or not it makes Raymond and ExxonMobil easy targets.
With unleaded gas averaging about $2.80 a gallon. Drivers are looking to someone to blame. Renewed frustrations about gas prices have led to renewed calls in Washington for investigations into the oil industry and for a wind fall tax on oil companies. Lee Raymond doesn't want to hear it.
LEE RAYMOND, FORMER CEO, EXXONMOBIL: Back in 1998, when prices went down to $10, I don't recall anybody in Washington calling me up and saying, are you guys having a hard time, what can we do to help. I'm not interested in hearing from them when prices are $10. And I'm not interested in hearing from them when prices are $40, $50.
VELSHI: Most oil execs have down played the prophets. Raymond's not so much for the low profile. He called the criticism short- sighted and politically motivated.
RAYMOND: A single quarter or a single year, which may be interesting from a political circus point, is not really all that significant in the time frame that we operate in.
(END VIDEOTAPE)
VELSHI: Well, maybe ten years is a better time frame to consider. ExxonMobil shareholders have more than doubled their investment twice in the last decade. That's good for investors. For drivers it feels like your wallet might be running on empty.
BLITZER: When you add up the all of the stock options he took as well, it comes to a lot more than the figure you have in your piece. VELSHI: When you add it all up, it's in excess of $300 million. The guy has been at the company for 42 years. There's a defense to offer. He was definitely considered as a good CEO of ExxonMobil, which is the gold standard of oil companies. It's a lot of money any way you cut it.
BLITZER: Thanks very much. Let's bring in Jack Cafferty's. He's been looking at the story as well.
CAFFERTY: We asked the people who watch this program, what they thought an appropriate retirement package for Exxon's CEO should be. Carl from Cookeville, Tennessee, "I think the gentleman from Exxon deserves the same benefits package most Americans get, a small retirement if any and his social security. As for me, I will now buy discount gas when I can until the fine folks at Exxon change their ways."
Lynn in Jamul, California. "Exxon's CEO retirement should be whatever is left after he refunds a dollar a gallon to every Exxon customer in the United States who has had to pay gas increases over the last three years."
John in Everett, Washington. "I don't know what the Exxon CEO's retirement package should be, but I do think they should serve blackened duck from the waters of Valdez, Alaska, at his retirement dinner."
Vic writes, "A new hummer he can afford to buy gas for."
Bill in Bethpage, New York. "I'm 66, I've worked all my life. I am now retired. What's a retirement package? I never saw one. Can you tell me what one looks like? Maybe mine got lost in the mail somewhere?"
Alayne in Ithaca, New York. "How about a Toyota Prius and a conscience."
Terry in Castle Rock, Colorado. "Exxon's chief should get a decent retirement, 50 percent of his salary would be more than enough. The big packages, in the neighborhood of half a billion dollars, should be reserved for those who really earn it like sports heroes."
BLITZER: Jack, thanks very much. I'll see you tomorrow here in the THE SITUATION ROOM.
Up ahead -- U.S. troops fighting to win the hearts and minds of Iraqis. It's a very dangerous job. Life and death consequences on the line. We have a reporter embedded with U.S. Marines in Ramadi. She has an incredible story. We're going to go there for a story you'll only see here on CNN. Stay with us.
(COMMERCIAL BREAK)
BLITZER: Tonight, a rare and moving look at the United States military mission in Iraq. This is a look you're going to see only here on CNN. Back here in Washington, the Bush White House is being forced to regroup in part because of the fallout from the war. On the ground in Iraq it is still a fierce battle every single day. American troops aren't just fighting against insurgents, they're trying to do their best to try to create a fledgling democracy in Iraq and to win the hearts and minds of its people. CNN's Arwa Damon is embedded with U.S. Marines in Iraq.
(BEGIN VIDEOTAPE)
ARWA DAMON, CNN CORRESPONDENT, (voice over): It's hard to imagine that people still live here among the devastated buildings in the heart of Ramadi. Each building bears the scars of the daily pitched battles. Like the one we experienced earlier this week between Marines guarding the governor's compound and insurgents.
UNIDENTIFIED MALE: They're bugging out.
DAMON: But on a joint Iraqi/American military operation, we met some of the families who have no choice but to stick it out right near the compound.
Akmed (ph), who was also a soldier under Saddam, tries to tell Joaheda (ph) that they won't leave until there is stability. Her son, Mohamed (ph), shows the bullet holes that scar their walls.
Mohamed's house is right in the crossfire. He and his family are caught between the Marines at the government center and the insurgents who are trying to fire at them.
This operation is to look for weapons caches used by insurgents who frequently launch their attacks from this area. The actual searches are carried out by Iraqis and a small number of American advisers. U.S. Marines set up a protective parameter.
MAJ. DAVID RICHARDSON, U.S. MARINE CORPS: But it's also important at my level because we're training Jundi (ph) to do this, the Iraqi army, and we train with them and they see how we do it and they do it like we do it in the future.
DAMON: It's these men's jobs to convince the people of Ramadi that they can keep them safe and to be able to keep that promise. The process of training the Iraqi army moves forward, one small step at a time.
RICHARDSON: This is an operation that's driven by intelligence. The Iraqi army goes through that process with their staff and they plan this thing. And when we go back today, we'll sit down and we'll say, how did the planning go? And we'll say, how did the execution go? And we'll say, what can we do better, you know, next time?
DAMON: The weapons they are looking for today are still out there, but at least they all made it back alive. Slightly better prepared to deal with the next time.
Arwa Damon, CNN, Ramadi, Iraq.
(END VIDEOTAPE) BLITZER: And this footnote, Ramadi is the capital of the Iraq's sprawling Anbar Province. It's about 70 miles west of Baghdad. It's been the scene of some of the worst fighting over the last three years. We're going to continue Arwa Damon's special reports right here in THE SITUATION ROOM.
Now to the war on terror. In court today, the defense is using 9/11 conspirator Zacarias Moussaoui, his own words to try to prove he's mentally ill and preventing him from receiving the death penalty. Our Internet reporter Abbi Tatton is standing by with the latest details. Abbi?
ABBI TATTON, CNN INTERNET REPORTER: Wolf, Moussaoui, while he was acting as his own attorney in 2002, 2003, filed frequent rambling hand-scrawled motions in court, citing Allah, frequently talking about the U.S. god-less government.
And now defense attorneys are using these hand-written motions to try and show that Moussaoui is mentally unstable. Like this one from July 2002, where Moussaoui talks about wanting his bug fan. This is a reference, they say, to a paranoid delusion that Moussaoui had that the FBI was bugging a fan in his possession.
In another one, Moussaoui talks about my table, a separate table in the courtroom that he wanted to sit at, for fear that marshals would kill him. The same psychologist says that this was psychotic behavior. There are hundreds and hundreds of documents that the public can see online at the U.S. district court Web site. Wolf?
BLITZER: Abbi, thank you very much for that.
Let's find out what's coming up right at the top of the hour, Paula's standing by. Hi, Paula.
PAULA ZAHN, CNN ANCHOR: Hi, Wolf, thanks so much. We will be talking about Scott McClellan heading for the West Wing door. We're going to look back at some of the moments he would probably like to forget and what means that he's going have a replacement soon. And will do anything to lift up the president's sagging poll numbers?
Also ahead, a twisted tale that's straight out of Hollywood. A man named, no joke here, Jesse James Hollywood at the center of a bizarre murder and an international man hunt. And because it is Hollywood, it's already been turned into a movie, and we're going to have much more for you on that as well, Wolf?
BLITZER: Thanks very much, Paula, we'll be watching. Still ahead, breaking the addiction to oil. A cheap alternative that could keep Americans on the road. We're going to find out why the future may be closer than you think. Stay with us, Miles O'Brien has that story.
(COMMERCIAL BREAK)
BLITZER: Well, price have set another record high today, the third straight day, finishing above $72 a barrel. There's no sign of relief at the pump at all. Is there a cheaper though alternative down the road? CNN's Miles O'Brien shows one possibility in today's edition of "Welcome to the Future." Miles?
MILES O'BRIEN, CNN ANCHOR: Well Wolf, as you may know, Earth Day is coming up this Saturday, April 22nd. And the focus on reducing pollution this year is coupled with a grim economic fact. The price of gasoline is rising rapidly as we begin to run out of oil. Solving both problems is prompting a lot of smart thinking about what else we can use to fuel our economy.
(BEGIN VIDEOTAPE)
O'BRIEN (voice-over): By now you've probably heard of alternative fuels. From hydrogen gas to biodiesels, the list of energy sources is long.
Nathaniel Greene of the Natural Resources Defense Council says his money is on ethanol, an Earth-friendly fuel that's cost effective, too.
NATHANIEL GREENE, NATURAL RESOURCES DEFENSE COUNCIL: There are so many ways that we can make it, switchgrass, corn kernels, wood chips. One of the exciting things about this next generation of ethanol technology is that they have the potential to be not just cost competitive with gasoline, but actually cheaper.
O'BRIEN: Something Brazil is already embracing -- in fact, 75 percent of Brazil's new cars burn both gasoline and ethanol. And Greene says it can happen here, too.
GREENE: Ethanol is great, but it's not a silver bullet. We need to have more efficient vehicles as well that we're putting this fuel in. We need a government commitment to do this and do it in a smart way.
(END VIDEOTAPE)
O'BRIEN: Nathaniel Greene says the transition from gasoline to ethanol is a relatively easy one, because ethanol is a liquid fuel. We are already putting small amounts of it in our gasoline. And it's not toxic or hard to transport, like hydrogen gas would be -- Wolf.
BLITZER: Miles, thanks very much for that. Don't forget, tomorrow in THE SITUATION ROOM, among my guests, the president's national security adviser Stephen Hadley. Also Donald Trump, he'll be here in THE SITUATION ROOM. We're on weekdays 4:00-to-6:00, 7:00 p.m. Eastern as well. Until tomorrow, thanks for joining us. Let's go to "PAULA ZAHN NOW," Paula's in New York. Paula?
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