3/8/02

LC020308

VAL>> ON LIFE AND TIMES TONIGHT --

JESS>> BELIEVE IT OR NOT, COLD PILLS ARE THE NEWEST DRUG PROBLEM FACING SOUTHERN CALIFORNIA AND THE PEOPLE SMUGGLING THEM MAY HAVE TERRORIST CONNECTIONS.

WILLIAM RUZZAMENTI>> WE KNOW THAT A LOT OF THE MONEY THAT'S BEING GENERATED FROM THE SALE OF THE PSEUDOEPHEDRINE IS BEING DIVERTED TO BANKS IN YEMEN, THE BANKS IN THE UNITED ARAB EMIRATES AND TO A LOT OF BANKING INSTITUTIONS THAT HAVE DIRECT TIES TO SOME OF THESE TERRORIST ORGANIZATIONS.

VAL>> AND CALIFORNIA REPUBLICANS HOPE THEY'VE FINALLY GOT A WINNING CANDIDATE FOR GOVERNOR, BUT BILL SIMON IS SURE TO GET A POUNDING FROM THE DEMOCRATS. IS HE UP TO IT? TONIGHT WE'LL TALK STRATEGY WITH THE CHAIRMAN OF THE CALIFORNIA REPUBLICAN PARTY, SHAWN STEEL.

JESS>> WE'LL ALSO GO ON A ROAD TRIP AND MEET SOME OF THE COUNTRY'S FIRST MOTORISTS. THE YEAR WAS 1905 AND ONLY A FEW RICH PEOPLE HAD CARS. THERE WEREN'T MANY ROADS EITHER. TONIGHT A LOOK BACK AT THOSE EARLY DRIVERS, HOW THEY HIT THE PAVEMENT AND SOMETIMES THE DIRT ON SOMETHING CALLED THE GLIDDEN TOUR.

VAL>> THESE STORIES COMING UP NEXT ON LIFE AND TIMES.

LIFE AND TIMES TONIGHT IS MADE POSSIBLE BY THE FOLLOWING FOUNDATIONS:

THE L.K. WHITTIER FOUNDATION
DEDICATED TO IMPROVING THE QUALITY OF LIFE BY SUPPORTING INNOVATIVE ENDEAVORS IN THE FIELDS OF MEDICINE, HEALTH, SCIENCE AND EDUCATION.

THE CALIFORNIA ENDOWMENT
THE STATE'S LARGEST HEALTH FOUNDATION SUPPORTING ORGANIZATIONS THAT DIRECTLY IMPROVE THE HEALTH AND WELL-BEING OF CALIFORNIA'S DIVERSE COMMUNITIES. THE CALIFORNIA ENDOWMENT, A PARTNER FOR HEALTHIER COMMUNITIES.

VAL>> GOOD EVENING, I'M VAL ZAVALA.

JESS>> AND I'M JESS MARLOW.

YOU MAY NEVER HAVE HEARD OF PSEUDOEPHEDRINE, BUT CHANCES ARE YOU'VE TAKEN IT. IT'S A COMMON INGREDIENT FOUND IN MANY COLD PILLS AT YOUR LOCAL DRUGSTORE. BUT FOR CRIMINALS, PSEUDOEPHEDRINE HAS ANOTHER USE AND THAT IS AS A PRIME COMPONENT FOR MANUFACTURING ILLEGAL METH.

VAL>> CANADA IS THE MAIN SOURCE OF THOSE COLD PILLS AND CALIFORNIA HAS BECOME THE NEW HOTSPOT FOR SMUGGLING THEM IN. AND THIS EXCLUSIVE REPORT YOU'RE ABOUT TO SEE COMES FROM CHANNEL ONE, A NETWORK MADE UP OF YOUNG JOURNALISTS. JANET CHOI TAKES US ALONG AS AUTHORITIES SEIZE THOUSANDS OF PILLS ON A RECENT RAID IN ORANGE COUNTY.

JANET CHOI>> IN DECEMBER, I WAS INVITED TO GO ON A DRUG BUST IN SOUTHERN CALIFORNIA WITH STATE AND FEDERAL AGENTS.

WE'RE ENTERING THE STORAGE AREA THAT THE MINIVAN HAS ENTERED. OH MY GOSH, THEY'RE RIGHT THERE.

BUT THE MEN WE WERE FOLLOWING WEREN'T SUSPECTED OF TRAFFICKING IN HEROINE OR COCAINE.

SO WE'RE ACTUALLY WATCHING THE TWO LOAD THE BOXES FROM THE STORAGE CONTAINER INTO THE MINIVAN.

THE GUYS WE WERE WATCHING WERE SUSPECTED OF DEALING IN COLD MEDICINE. THAT'S RIGHT. PSEUDOEPHEDRINE, THE ACTIVE INGREDIENT IN COLD MEDICINES. BUT PSEUDOEPHEDRINE IS THE MAIN INGREDIENT USED TO MAKE METHAMPHETAMINE, A HIGHLY ILLEGAL STIMULATE ALSO KNOWN AS CRANK, CRYSTAL AND SPEED. AND UNLIKE DRUGS SUCH AS COCAINE AND HEROINE, METH IS MADE IN AMERICA.

THE DRUG AGENTS I WAS WITH WERE TRAILING A GROUP SUSPECTED OF SUPPLYING PSEUDOEPHEDRINE TO METH LABS. WE ENDED UP PARKED RIGHT NEXT TO THE SUSPECTS WHO, AMAZINGLY, DIDN'T SEEM TO NOTICE.

WE FOLLOWED THE SUSPECTS BACK TO A PARKING LOT WHERE AN INFORMANT, POSING AS THE BUYER, WENT TO TEST A SAMPLE OF THE PSEUDOEPHEDRINE.

THEY RAN THREE OF THESE TESTS. IF IT WAS REAL, IT WOULD HAVE TURNED PURPLE. THEY OBVIOUSLY -- IT'S BLUISH, LIGHT BLUISH COLOR.

THIS SHIPMENT TURNED OUT TO BE FAKE, A BAD DAY FOR THE AGENTS I WAS WITH. BUT LESS THAN A WEEK LATER, I GOT A CALL. THEY HAD JUST MADE THE LARGEST PSEUDOEPHEDRINE BUST IN HISTORY AND INVITED ME DOWN FOR AN EXCLUSIVE LOOK.

SO WHAT YOU'RE LOOKING AT IS A CONTAINER BIN IN A SECURE LOCATION FILLED WITH TEN TONS OF PSEUDOEPHEDRINE WHICH WAS PART OF THE LARGEST BUST OF PSEUDOEPHEDRINE.

>> WE HAVE ABOUT 80,000 PSEUDOEPHEDRINE TABLETS IN EACH BAG.

JANET CHOI>> DRUG AGENTS ARE ALARMED BY THE GROWING SIZE OF RECENT SEIZURES. BUT EVEN MORE TROUBLING TO THEM, AND THE REASON THEY WANT THIS STORY TOLD, IS WHERE THE PSEUDOEPHEDRINE IS COMING FROM.

>> IF WE WERE TO FLIP ONE OF THE BUCKETS OVER, YOU WOULD SEE "MADE IN CANADA" ON THE BOTTOM.

JANET CHOI>> THE U.S. HAS TOUGH LAWS REGULATING THE IMPORTATION OF PSEUDOEPHEDRINE FROM WHERE IT'S MADE IN PLACES LIKE CHINA OR INDIA, BUT CANADA HAS VIRTUALLY NO RESTRICTIONS.

GREG MCALLISTER>> BETWEEN 1994 AND 2001, PSEUDOEPHEDRINE IMPORTS TO CANADA INCREASED BY 969 PERCENT. DURING THIS SAME TIME, POPULATION IN CANADA INCREASED TWELVE PERCENT.

JANET CHOI>> AND SINCE CANADIANS AREN'T SUFFERING FROM THE WORLD'S LARGEST OUTBREAK OF HEAD COLDS, A LOT OF THE IMPORTED PSEUDOEPHEDRINE SEEMS TO GET SMUGGLED INTO THE U.S. AND DRUG AGENTS HAVE NOTICED THAT MOST OF THE GROUPS TRAFFICKING PSEUDOEPHEDRINE HAVE ONE THING IN COMMON.

GREG MCALLISTER>> BY AND LARGE, MIDDLE EASTERN GROUPS ARE TRAFFICKING PSEUDOEPHEDRINE FROM CANADA INTO THE UNITED STATES.

JANET CHOI>> AND DRUG AGENTS IN CALIFORNIA ARE SUSPICIOUS BECAUSE THEY'VE NOTICED A LOT OF DRUG MONEY BEING TRANSFERRED OUT OF THE U.S.

WILLIAM RUZZAMENTI>> MILLIONS AND MILLIONS OF DOLLARS ARE GOING AND, JUST IN THE PAST YEAR, WE CAN IDENTIFY HUNDREDS OF MILLIONS OF DOLLARS THAT HAVE BEEN TRANSFERRED FROM CALIFORNIA TO BANKS IN THE MIDDLE EAST.

JANET CHOI>> AND THE BIG QUESTION IS, WHAT HAPPENS TO THE MONEY WHEN IT GETS THERE?

WILLIAM RUZZAMENTI>> WE DON'T KNOW. I MEAN, THERE'S A LOT OF THINGS THAT ARE STILL BEING INVESTIGATED AND THAT ARE STILL GOING ON, BUT WE KNOW THAT A LOT OF THE MONEY THAT'S BEING GENERATED FROM THE SALE OF THE PSEUDOEPHEDRINE IS BEING DIVERTED TO BANKS IN YEMEN, TO BANKS IN THE UNITED ARAB EMIRATES AND TO A LOT OF BANKING INSTITUTIONS THAT HAVE DIRECT TIES TO SOME OF THESE TERRORIST ORGANIZATIONS.

JANET CHOI>> ON JANUARY 10, CHANNEL ONE, IN A JOINT REPORTING PROJECT WITH USA TODAY, BROKE THE STORY ABOUT CANADIAN PSEUDOEPHEDRINE SMUGGLING INTO THE U.S. BY MIDDLE EASTERN GROUPS. THAT SAME DAY, DRUG AGENTS LAUNCHED A NATIONWIDE SWEEP OF THE TRAFFICKING GROUPS. WE WENT ALONG FOR AN EXCLUSIVE LOOK AT THE OPERATION. WE STARTED AT DAWN.

THERE ARE ARRESTS AND SEIZURES GOING ON ALL OVER THE UNITED STATES, CHICAGO, DETROIT, CENTRAL CALIFORNIA. THIS IS PART OF THAT NATIONWIDE SWEEP.

IN AN UPSCALE NEIGHBORHOOD, WE WATCHED A RAID ON THE HOME OF AN ALLEGED PSEUDOEPHEDRINE TRAFFICKER.

OKAY, SO THEY'VE GOT THEIR GUNS UP AND THEY'RE APPROACHING THE HOUSE.

[FILM CLIP]

SO WE'RE STANDING IN FRONT OF THE HOUSE. THE TASKFORCE WENT IN, BROKE DOWN THE DOOR AND THE GUY'S NOT HOME. INSIDE THE HOUSE, THE DRUG AGENTS FOUND NINE SURVEILLANCE CAMERAS. WHEN THEY REVIEWED THE TAPE ON THE CAMERAS, THEY SAW THE SUSPECT DRIVE AWAY AT 4:13 A.M. APPARENTLY, HE HAD BEEN TIPPED OFF.

WILLIAM RUZZAMENTI>> THE THING ABOUT DRUG LAW ENFORCEMENT, IT'S LIKE IF YOU'RE GOING TO GO OUT AND TRY TO SHOOT A BIRD THAT'S FLYING. IF YOU AIM WHERE THE BIRD IS AT, YOU'RE GOING TO MISS IT. YOU HAVE TO BE OUT IN FRONT OF IT IN ORDER TO HAVE AN IMPACT, IN ORDER TO BE SUCCESSFUL. WE NEED TO SEE THE METH PROBLEM FOR WHAT IT IS. IT'S SOMETHING WE'D BETTER GET OUT IN FRONT OF OR WE'RE NEVER GOING TO CATCH UP WITH IT.

JESS>> YOU SAW THOSE HUGE CONTAINERS OF COLD PILLS FROM CANADA. AUTHORITIES SAY THAT'S PART OF THE PROBLEM. CANADA ALLOWS THE DRUGS TO BE SHIPPED IN BIG PLASTIC BUCKETS, BUCKETS THAT CONTAIN THOUSANDS OF TABLETS. THAT MAKES IT EASY FOR SMUGGLERS TO GET AWAY WITH A LARGE AMOUNT OF PSEUDOEPHEDRINE WITHOUT MUCH EFFORT. SO FAR, HOWEVER, CANADA HAS BEEN RELUCTANT TO CHANGE THE PACKAGING REQUIREMENTS.

VAL>> MONDAY ON LIFE AND TIMES, THE HIGH PRICE OF PROGRESS IN LOS ANGELES. WE'LL GO TO THE FARMERS MARKET AND SEE HOW A NEW SHOPPING CENTER NEXT DOOR MAY BE A CURSE AS WELL AS A BLESSING.

PHILIP BRUCE>> WHY WOULD RESIDENTS OF THE FAIRFAX DISTRICT BE ANGRY ABOUT A BEAUTIFUL NEW SHOPPING CENTER? JUST LOOK AT THE GRIDLOCK ON THEIR STREETS, THAT'S WHY.

>> YOU GOT TO GET THROUGH THESE STREETS. THEY ARE JAMMED TO CAPACITY AND THE DEPARTMENT OF TRANSPORTATION IS LIVING IN THE NINETEENTH CENTURY.

JESS>> CALIFORNIA REPUBLICANS HAVE BEEN IN THE POLITICAL WILDERNESS IN RECENT YEARS AND THEY'RE HUNGRY FOR A RETURN TO THE GOVERNOR'S OFFICE. BUT DOES A NEWCOMER LIKE BILL SIMON HAVE WHAT IT TAKES TO BEAT A VETERAN LIKE GRAY DAVIS?

VAL>> THE DAVIS CAMPS SAYS NOT ON YOUR LIFE. THEY'VE ALREADY REFERRED TO REPUBLICANS AS "ROAD KILL" AND DAVIS'S CHIEF STRATEGIST, GARRY SOUTH, IS PREPARING TO HIT SIMON WITH THE SAME KIND OF NEGATIVE ADS HE USED TO BATTER FORMER L.A. MAYOR, RICHARD RIORDAN.

RICHARD RIORDAN>> GARRY SOUTH AND GRAY DAVIS TALK ABOUT ROAD KILL. WELL, GRAY, I HAVE A MESSAGE FOR YOU. YOU HAVE FAILED EVERY CALIFORNIAN, REPUBLICANS, DEMOCRATS AND INDEPENDENTS.

JESS>> SO WHAT HAVE THE REPUBLICANS GOT UP THEIR SLEEVES TO MEET THE DAVIS CHALLENGE? WE'VE ASKED THE MAN IN CHARGE TO TELL US. SHAWN STEEL IS CHAIRMAN OF THE CALIFORNIA REPUBLICAN PARTY. ALSO JOINING US IS OUR REGULAR MAN ON POLITICS, KERMAN MADDOX.

WHAT DO YOU THINK, KERMAN? DO THEY STAND A CHANCE?

KERMAN>> ACTUALLY, I THINK THEY'RE DREAMING. ONE OF THE THINGS THAT REALLY TROUBLES ME IS, OF THE THREE CANDIDATES WHO RAN ON THE REPUBLICAN SIDE, RICHARD RIORDAN, BILL JONES AND BILL SIMON, IT SEEMS THE CANDIDATE THAT HAD THE LEAST CHANCE OF WINNING THE GOVERNORSHIP IN THE STATE OF CALIFORNIA WAS ELECTED BY THE REPUBLICAN PARTY. I'M DYING TO HEAR FROM SHAWN STEEL --

JESS>> -- HE'S BRISTLING TO MY LEFT EVEN AS WE SPEAK. (LAUGHTER)

KERMAN>> -- WHY THEY WOULD ELECT SOMEONE LIKE BILL SIMON WHO APPEARS TO BE A NICE GUY, BUT HE HAS NO EXPERIENCE AND GRAY DAVIS IS ALREADY TRYING TO PAINT HIM AS TO THE RIGHT OF THE MAINSTREAM OF VOTERS IN THE STATE OF CALIFORNIA. WHY BILL SIMON?

SHAWN STEEL>> YOU KNOW, THE BIG QUESTION IS THAT ALL THREE OF THE REPUBLICAN NOMINEES WERE PULLING AHEAD OF GRAY DAVIS, INCLUDING BILL SIMON, JUST A WEEK BEFORE THE PRIMARY. THE BIGGER QUESTION IS, WHY DO PEOPLE NOT LIKE GRAY DAVIS? HE'S EXTREMELY UNPOPULAR. HIS NEGATIVES ARE STILL HIGHER THAN HIS POSITIVE RATINGS. THIS $10 MILLION DOLLAR CAMPAIGN THAT HE HAD TO BEAT UP ONE OF OUR CANDIDATES DID HIM NO GOOD. IT HURT ONE OF THE REPUBLICANS, BUT IT MADE HIMSELF, ONCE AGAIN, MEAN-SPIRITED, SHORTSIGHTED, HOT-TEMPERED AND REALLY CRUDE. IT'S REALLY OFFENDED A LOT OF PEOPLE THAT HE WOULD GO IN AND TRY TO, YOU KNOW, BUY OUT AND TAKE CARE OF ANOTHER PARTY'S PRIMARY.

BUT BESIDES THAT, HE'S HIDING UNDER A ROCK. HE'S GOT THE ENERGY POLICY THAT HE AVOIDED FOR MONTHS AND FINALLY IT WAS TOO LATE. WE WERE ABOUT TO LOSE OUR POWER, THEN HE SIGNED US UP FOR TWENTY-YEAR CONTRACTS AND OUR UTILITY BILLS GO UP EVERY SINGLE MONTH. THAT'S PROBABLY GOING TO BE THE ULTIMATE END OF DAVIS, THAT ALONE. BUT THEN YOU THROW IN A LITTLE FACTOR ABOUT, YOU KNOW, A GROWING DEFICIT. HE CAME IN WITH $20 BILLION DOLLARS AND NOW WE'RE $14 BILLION DOLLARS SHORT. HE'S FALLING APART.

VAL>> OKAY. THIS IS A NICE RAMPAGE AGAINST DAVIS, BUT I WANT TO ECHO KERMAN'S QUESTION. WHY BILL SIMON, SINCE HE HAS PROBABLY NO CHANCE IN TERMS OF POLICY TO WIN THE ELECTION?

SHAWN STEEL>> WELL, YOU KNOW, WE'RE VERY HAPPY THAT DEMOCRATS -- WELL, NOT ALL DEMOCRATS BECAUSE WE NEED A LOT OF THEIR VOTES -- BUT THE HARD-CORE PROFESSIONAL DEMOCRATS ARE UNDER-ESTIMATING BILL SIMON. A LOT OF PEOPLE HAVE UNDER-ESTIMATED BILL SIMON AND HE WON WITH SUCH A STAGGERING AMOUNT OF VOTES, OVERWHELMING HIS MORE EXPERIENCED RIVALS.

VAL>> IN A RECORD LOW VOTER TURNOUT.

SHAWN STEEL>> WELL, ACTUALLY, THE REPUBLICAN TURNOUT WAS GOOD. THE DEMOCRAT TURNOUT WAS TERRIBLE. THAT WAS THE LOW TURNOUT BECAUSE THERE WASN'T ANY REAL CONTEST AGAINST GRAY DAVIS --

KERMAN>> -- NO REAL CHALLENGE --

SHAWN STEEL>> -- AND YET ONE OUT OF FIVE DEMOCRATS VOTED AGAINST GRAY DAVIS IN A LOW TURNOUT PRIMARY AS WELL.

KERMAN>> BUT LET ME ASK YOU THIS QUESTION, SHAWN. A LOT OF THE DEMOCRATS THAT I'VE TALKED TO SAID THAT, IF RICHARD RIORDAN GETS THE NOMINATION OR EVEN IF A BILL JONES GETS THE NOMINATION, THEY'RE SO UPSET WITH GRAY, THE POSSIBILITY OF LEAVING THE PARTY AND VOTING FOR RIORDAN WAS HIGH ON THEIR AGENDA. WHAT THEY HAVE TOLD ME NOW IS NOW THAT YOU GUYS HAVE ELECTED BILL SIMON WHO APPEARS TO BE OUT OF STEP WITH AVERAGE CALIFORNIANS, THOSE DEMOCRATS WHO WERE DISENFRANCHISED WITH GRAY DAVIS HAVE SAID WE'RE NOW COMING BACK HOME. BASED ON SHEER NUMBERS, IF THEY COME BACK HOME, HOW DO YOU WIN IT?

SHAWN STEEL>> KERMAN, THE NUMBERS DON'T JUSTIFY THAT. I THINK YOU'VE GOT TO EXPAND YOUR CIRCLE OF RELATIONSHIPS AND TALK TO A FEW MORE PEOPLE. THE FACT IS THAT THERE'S PLENTY OF DEMOCRATS, PLENTY OF INDEPENDENTS, WHO LOOK AT GRAY DAVIS AND THEY CAN'T STOMACH HIM. THEY DON'T WANT TO SEE HIM AROUND ANOTHER FOUR YEARS.

JESS>> BUT HOW ARE YOU GOING TO OVERCOME THE CHALLENGE ON CHOICE WHERE ABORTION IS CONCERNED, ON GUN CONTROL? IT'S MY UNDERSTANDING THAT THE SIMON CAMPAIGN IS, WHEN THAT QUESTION COMES UP, JUST CHANGE THE SUBJECT. YOU CAN'T DO THAT. HE HAS TO ADDRESS IT.

SHAWN STEEL>> YOU KNOW, YOU DON'T CHANGE THE SUBJECT, BUT YOU DON'T DWELL ON IT. NOW ALL GRAY DAVIS CAN DO IN HIS DESPERATE BATTLE -- AND HE'S A DESPERATE MAN. EVERY DAY HE'S ON THE PHONE RAISING MONEY, EVERY DAY --

JESS>> -- RICH DESPERATE MAN.

SHAWN STEEL>> YEAH, WELL, GRAY DAVIS ISN'T THAT RICH, BUT PERHAPS --

VAL>> -- NOT PERSONALLY, BUT HIS COFFERS --

SHAWN STEEL>> -- BUT HE CERTAINLY HAS A LOT OF MONEY IN THE BANK THAT HE'S TAKEN FROM ENRON AND OTHER CORPORATIONS. NOW GRAY DAVIS IS GOING TO HAVE TO TALK ABOUT ISSUES THAT WORKED FOR HIM FOUR YEARS AGO AND IT WORKED VERY NICELY. HE RAISED THE BANNER OF ALL THESE SOCIAL ISSUES WHICH, AT THE END OF THE DAY, MOST GOOD GOVERNORS DON'T GET INVOLVED IN. BILL SIMON, UNDERSTAND, HAS GOT A PERSONAL POINT OF VIEW ON LIFE ISSUES, BUT HE'S MADE IT VERY CLEAR. HE'S NOT GOING TO CHANGE HIS RELIGIOUS UPBRINGING, BUT HE CERTAINLY IS NOT GOING TO WEAR IT ON HIS SLEEVE. HE'S GOING TO TALK ABOUT THE ISSUES THAT CALIFORNIANS CARE ABOUT, POCKETBOOK ISSUES. GRAY DAVIS DOESN'T WANT TO TALK ABOUT ENERGY, BUT HE'LL TALK ABOUT GUNS --

KERMAN>> -- SHAWN, CAN YOU --

SHAWN STEEL>> -- GRAY DAVIS DOESN'T WANT TO TALK ABOUT, YOU KNOW, THE DEFICIT AND THE HORRENDOUS NEW TAXES THAT WE'RE ABOUT TO GET, BUT HE'LL TALK ABOUT SOMETHING IRRELEVANT ABOUT ABORTION WHEN IN FACT THE GOVERNOR DOESN'T HAVE MUCH TO DO --

JESS>> -- IRRELEVANT? WAIT A MINUTE. ABORTION IS IRRELEVANT?

SHAWN STEEL>> FOR THE GOVERNOR'S POINT OF VIEW, BECAUSE IT'S A FEDERAL LAW THAT HAS MANDATED THAT NOBODY IS GOING TO JAIL, NOBODY WANTS ANYBODY TO GO TO JAIL WITH ABORTION. IT'S A RED HERRING. WE ALL KNOW IT'S A RED HERRING AND --

KERMAN>> -- SHAWN, LET ME ASK YOU A STRATEGY QUESTION.

SHAWN STEEL>> FAIR ENOUGH, BUT STAY AWAY FROM THE RED HERRINGS.

KERMAN>> I THINK YOU'RE RIGHT. IF YOU GUYS CAN GET THE DEBATE FOCUSED ON THE STATE BUDGET, THE ECONOMY AND THE FACT THAT THE GOVERNOR KIND OF SCREWED UP THE WHOLE ENERGY MESS WITH THE ENERGY CONTRACTS AND STUFF LIKE THAT --

SHAWN STEEL>> -- THANK YOU FOR SAYING THAT --

KERMAN>> -- BUT THE PROBLEM IS, THE ONLY THING PEOPLE HAVE TALKED ABOUT SINCE ELECTION DAY SO FAR HAS BEEN ABORTION, GUNS AND THINGS LIKE THAT. SOCIAL ISSUES. MY QUESTION --

SHAWN STEEL>> -- KERMAN, YOU ARE SO WRONG.

KERMAN>> NO, NO. MY QUESTION TO YOU IS, HOW DO YOU GUYS GET THE FOCUS OF THE CAMPAIGN OFF THE SOCIAL ISSUES AND ONTO THE STATE BUDGET AND THE ECONOMY? BECAUSE THE AVERAGE PERSON THINKS THOSE THINGS ARE BORING.

SHAWN STEEL>> YOU KNOW, I'LL TELL YOU THIS. WELL, THE AVERAGE PERSON MIGHT -- I DON'T THINK -- WHAT'S BORING? THE L.A. TIMES HAS A POLL OF THE 28 MOST CRUCIAL ISSUES IN CALIFORNIA. ABORTION IS 26. PEOPLE DON'T WANT TO TALK ABOUT IT. THEY DON'T WANT TO ARGUE. THERE'S NO REAL POLITICAL SOLUTION TO THAT.

VAL>> WHAT'S NUMBER ONE OR TWO ON THAT POLL?

SHAWN STEEL>> OH, WE'RE TALKING CRIME, SCHOOLS, ECONOMY. LET'S TALK ABOUT SCHOOLS FOR A SECOND. THE NUMBER ONE ISSUE THAT CALIFORNIANS ARE CONCERNED ABOUT SCHOOLS, GRAY DAVIS MADE A PROMISE. HE SAID, IF THE SCHOOL GRADES DIDN'T IMPROVE, HE WOULD NOT RUN FOR RE-ELECTION. WELL, WE'RE STILL AT THE BOTTOM OF THE UNITED STATES. NUMBER FIFTY WHEN IT COMES TO SCIENCE. OUR READING SCORES AND OUR MATH SCORES ARE STILL PATHETIC. AND THE WORST PART IS OUR URBAN SCHOOLS ARE DETERIORATING ON HIS WATCH. THAT'S THE ISSUE CALIFORNIANS CAN TALK ABOUT.

NOW POLITICAL PUNDITS, PARTICULARLY IN CERTAIN BIG CITY NEWSPAPERS WHICH, YOU KNOW, MAYBE TEN PERCENT OF THE PEOPLE PAY ATTENTION TO, YOU KNOW, WE GET SO CAUGHT UP WITH THE BIG CITY REPORTERS, BUT AT THE END OF THE DAY, THE REAL ISSUES ARE SCHOOLS, TRANSPORTATION, INFRASTRUCTURE AND TAXES. NOW CLEVER LIBERALS ARE GOING TO TRY TO SAY, WELL, NO, IT'S REALLY THE SOCIAL ISSUES. THAT'S A RED HERRING. WE'RE NOT GOING TO BUY IT. CALIFORNIANS AREN'T GOING TO BUY IT AND THEY'RE GOING TO SEE IT AS A SMEAR CAMPAIGN.

KERMAN>> BUT IF IT WORKED IN 1998 WITH DAN LUNGREN WHO WAS A VERY FORMIDABLE CANDIDATE FOR THE REPUBLICAN PARTY, THE ATTORNEY GENERAL MUCH BETTER KNOWN THAN BILL SIMON, GRAY DAVIS EVISCERATED HIM ON THE SOCIAL ISSUES. WHY WOULD IT NOT WORK THIS YEAR?

SHAWN STEEL>> THAT'S A VERY GOOD QUESTION. I THINK DAN LUNGREN INVITED THAT. I THINK THE CAMPAIGN WAS A LANDMARK STUDY OF BAD MANAGEMENT. SIMON UNDERSTANDS THAT. HE'S A STUDENT OF BOXING. HE UNDERSTANDS THAT A BOXER MOVES AROUND. YOU DON'T LET YOUR OPPONENT GET INSIDE YOUR GAME. SIMON UNDERSTANDS THAT THAT'S PRECISELY THE DAVIS STRATEGY, TO DESTROY AND RUIN. HE'S NOT GOING TO BUY THAT. HE'S GOING TO BE A POSITIVE GUY AND PEOPLE LIKE HIM BECAUSE HE'S NICER. GRAY DAVIS ISN'T A NICE MAN.

VAL>> OH, I DON'T KNOW IF "NICE" COMES IN FIRST IN POLITICS, BUT WE'LL SEE. SHAWN STEEL, HEAD OF THE CALIFORNIA REPUBLICAN PARTY, THANK YOU SO MUCH FOR BEING WITH US. WE DO APPRECIATE IT.

SHAWN STEEL>> THANK YOU.

VAL>> KERMAN, ALWAYS GREAT TO SEE YOU.

KERMAN>> THANK YOU, VAL.

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JESS>> A HUNDRED YEARS AGO, THERE WERE NO SUV'S AND THAT'S WHEN MOTORISTS COULD HAVE REALLY USED THEM THEN. BACK THEN, MOST OF THE ROADS WERE MADE OF DIRT, NOT ASPHALT, BUT ONLY A FEW RICH PEOPLE EVEN HAD CARS.

VAL>> IN 1905, ONE OF THOSE EARLY WEALTHY DRIVERS WAS CHARLES GLIDDEN. HE STARTED A MAJOR CAMPAIGN FOR BETTER ROADS ACROSS AMERICA AND HE DID IT WITH SOMETHING CALLED THE GLIDDEN TOUR. IT WAS ONE OF THE FIRST EVER ROAD TRIPS AND IT WAS MEANT TO SHOW THAT CARS WERE A RELIABLE MEANS OF TRANSPORTATION. AAA, THE AUTO CLUB, ALSO SPONSORED THE TOUR. IN FACT, THE FILM YOU'RE SEEING IS PART OF THE AUTO CLUB'S ARCHIVES.

JESS>> JOINING US NOW TO TALK ABOUT THIS MILESTONE IN MOTORING IS OUR OLD FRIEND, MATT ROTH. HE'S THE HISTORIAN FOR THE AUTOMOBILE CLUB OF SOUTHERN CALIFORNIA.

THAT WAS SOME PERILOUS TRAVELING THEY WERE DOING THERE.

MATT ROTH>> WELL, THERE WERE NO ROADS, NO PAVEMENT, THE ROADS WEREN'T GRADED. THEY WERE SET UP FOR WAGONS AND RUBBER TIRES GOING AT HIGHER SPEEDS PULLED THE LITTLE BITS OF SAND OUT FROM BETWEEN THE ROCKS. THE WAGONS PRESSED THEM DOWN AND THE CARS PULLED THEM OUT, SO THEY ACTUALLY DESTROYED THE ROADS AS THEY WERE GOING ALONG.

VAL>> OH, SO THEY MADE THEM GO FROM BAD TO WORSE?

MATT ROTH>> YES, ABSOLUTELY.

JESS>> HOW MANY DO YOU SUPPOSE OF THESE RACERS IN THIS TOUR MADE IT TO THE END?

MATT ROTH>> WELL, THEY ALL DID, ONE WAY OR THE OTHER, I THINK.

VAL>> AND IT WENT FROM WHERE TO WHERE? LIKE WHAT CITY --

MATT ROTH>> -- WELL, IT STARTED IN NEW YORK AND IT WENT THROUGH --

JESS>> -- YOU CALLED THE AAA TOW TRUCK IF YOU BROKE DOWN. (LAUGHTER)

MATT ROTH>> (LAUGHTER) WELL, NOT QUITE YET. IT WENT ALL THROUGH NEW ENGLAND. WHAT WE'RE SEEING RIGHT HERE ON THE SCREEN IS GOING UP MOUNT WASHINGTON IN NEW HAMPSHIRE AND THIS WAS A PARTICULARLY PERILOUS RUN. YOU CAN SEE THESE CARS ARE STRIPPED DOWN, OKAY? THERE'S NO BODIES ON THEM, NO FENDERS, NO ROOFS.

VAL>> HARDLY ANYTHING.

MATT ROTH>> THEY'RE BASICALLY RACING. THEY'RE CHALLENGING THE TECHNOLOGY TO SEE IF THEY CAN GET UP THE HILL. SOME CARS THAT WERE NEVER HEARD OF, OF COURSE, AND --

VAL>> -- MOST OF THE CARS WERE NAMED AFTER THE MEN WHO DESIGNED THEM OR OWNED THEM.

JESS>> JACK BENNY MADE THE MAXWELL FAMOUS.

MATT ROTH>> YEAH, THAT'S RIGHT, AND LATER DISAPPEARED. BUT, YEAH, I MEAN, SOON AFTER THIS, THEY WERE CALLED THINGS LIKE, OH, THE PRESIDENT, THE IMPERIAL AND --

VAL>> -- THEN THEY GOT INTO ACTUAL NAMING WHICH HAS SURVIVED UNTIL TODAY.

MATT ROTH>> NAMING TO GIVE ASSOCIATION, ACTUALLY.

JESS>> THE THING THAT SEEMED TO WORK BEST IS THAT 1903 INDIAN MOTORCYCLE.

MATT ROTH>> YEAH, ANOTHER BRAND THAT'S NOT WITH US ANYMORE, ALTHOUGH THAT WAS ITS HOME TURF.

VAL>> SO, JACKSON, AGAIN, THAT'S THE NAME OF THE CAR COMING UP HERE.

MATT ROTH>> THAT'S THE CAR, YES.

VAL>> NOW THIS TOUR WAS NOT NECESSARILY POPULAR. I WAS READING THAT A NEW HAMPSHIRE NEWSPAPER WROTE AN EDITORIAL ABOUT THIS WHOLE TOUR AND THEY JUST SLAMMED IT AND THEY SAID, "THEY SEEM TO THINK THEY HAVE THE RIGHT TO USE THE ROAD TO THE EXCLUSION AND DISCOMFORT OF OTHER PEOPLE." AND THEY SAID, "TAKE, FOR INSTANCE, GOING EIGHTEEN MILES IN FORTY MINUTES." -- THAT'S ABOUT 22 MILES PER HOUR --

MATT ROTH>> RIGHT.

VAL>> -- "HOW DO THEY HAVE A RIGHT TO DO SUCH A THING?" (LAUGHTER)

MATT ROTH>> WELL, IT WAS AN OPEN QUESTION. YOU KNOW, WHAT'S THE DEFINITION OF PUBLIC SPACE? WE KNOW NOW THAT THE AUTOMOBILE CAUSED ITS REDEFINITION. BY THE WAY, NOW THEY'RE UP AT THE TOP OF THE HILL AT THE BRETTON WOODS RESORT AND THESE ARE SOME OF THE BIGGER CARS, THE TOURING CARS, SO-CALLED.

VAL>> BUT YOU'RE SAYING THE CARS REDEFINED, WHAT, PUBLIC SPACE?

MATT ROTH>> PUBLIC SPACE. YEAH, IT WAS AN OPEN QUESTION IF YOU HAD A RIGHT TO DRIVE A MOTOR VEHICLE ON THE ROADS. THERE WAS A SERIES OF COURT CASES AND, BY 1910, IT WAS PRETTY CLEAR THAT AN AUTOMOBILE OWNER HAD A RIGHT TO BE ON THE ROAD. THEN THE QUESTION BECAME WHAT IS SOCIETY GOING TO DO ABOUT ACCOMMODATING THEM?

VAL>> KIND OF LIKE SNOWBOARDERS ON THE SLOPES. DO THEY HAVE A RIGHT TO BE HERE? (LAUGHTER)

JESS>> AT BRETTON WOODS, THAT LOOKED PRETTY COMFORTABLE. YOU KNOW, THEY HAD A NICE PLACE TO DRIVE, THEY'RE ALL DRESSED RATHER NICELY.

MATT ROTH>> OH, YEAH.

JESS>> BUT EARLIER, WE SAW THEM WITH DUSTERS, APPROPRIATELY CALLED DUSTERS.

MATT ROTH>> WELL, THE TOUR HAD A DIVISION FOR ANYONE THAT WANTED TO BE IN IT, OKAY? THOSE STRIPPED-DOWN CARS WERE MANUFACTURERS' ENTRIES AND THEY WERE REALLY CHALLENGING THE TECHNOLOGY. HOW FAST CAN WE GET UP THE HILL? HOW FAST CAN WE COMPLETE THE RUN? THESE PEOPLE HERE ARE -- THOMAS FLYER, THAT WAS THE CAR THAT MADE THE AROUND-THE-WORLD RUN A COUPLE OF YEARS LATER -- THESE ARE GLIDDEN'S PEERS. THESE ARE THE WEALTHY, THE WELL-TO-DO, AND --

VAL>> -- SO THEY'RE DOING IT JUST FOR THE FUN OF IT AND NOT QUITE SO SERIOUS.

MATT ROTH>> WHICH WAS ALL THAT ANYBODY USED AN AUTOMOBILE FOR.

JESS>> WASN'T TRANSPORTATION THEN, HUH?

MATT ROTH>> NOT DAILY TRANSPORTATION, NO. IT WAS ADVENTURE. THERE'S A PACKARD, A NAME THAT'S SURVIVED A WHILE.

VAL>> NOT MANY OF THESE NAMES SURVIVED.

MATT ROTH>> NO, NOT A LOT DID.

JESS>> YOU DON'T SEE WHITE STEAMERS ON THE STREETS TOO MUCH.

MATT ROTH>> NO. AND WINTON. WINTON AT THE TIME --

JESS>> -- PIERCE ARROW.

MATT ROTH>> OH, LOOK AT THE SIZE OF THIS CAR. AT THE TIME, THE WINTON, WHICH WAS A COMPANY IN CLEVELAND THAT MADE SEWING MACHINES, GOT INTO AUTOMOBILES LATER. THEY MADE THE CARS THAT BARNEY OLFIELD SET THE WORLD RECORDS IN. THEY WERE SPECIAL-BUILT FOR JUST THAT PURPOSE.

VAL>> SO WERE THERE ANY TRAGEDIES ALONG THIS TOUR?

MATT ROTH>> WELL, IN THAT ACCOUNT FROM THE MANCHESTER UNION NEWSPAPER, IT TALKS ABOUT THE WOMAN WHO WAS CRUSHED UNDERNEATH HER CAR.

VAL>> OH, SHE'S THE ONE THAT WENT OFF THE BRIDGE INTO THE RIVER.

MATT ROTH>> YEAH, THAT'S RIGHT.

JESS>> AT THIS SPEED, YOU DON'T HAVE QUITE AS MANY ACCIDENTS, I GUESS.

MATT ROTH>> WELL, IF YOU GO OVER, YOU'RE GONE, YOU'RE GONE.

JESS>> NOT A SEATBELT IN SIGHT. (LAUGHTER)

MATT ROTH>> NO, NOT A SEATBELT, NO.

VAL>> (LAUGHTER) NOT QUITE. I ALSO UNDERSTAND THAT SOME OF THE STEERING WHEELS WERE ON THE LEFT, BUT A LOT OF THEM WERE STILL ON THE RIGHT. SO HAD IT NOT BEEN DECIDED YET WHICH SIDE OF THE CAR STEERING WHEELS WOULD BE ON IN AMERICA?

MATT ROTH>> CORRECT. I WAS AFRAID YOU WERE GOING TO ASK ME THAT TOO, BECAUSE WHY --

VAL>> -- WHY THE LEFT?

MATT ROTH>> OR THE RIGHT, IN CERTAIN CASES. AND WHY DO WE DRIVE ON THE RIGHT AND, IN OTHER CASES, ON THE LEFT? I HAVEN'T REALLY SEEN A DEFINITIVE ANSWER TO THAT. I'VE SEEN A LOT OF CRAZY ANSWERS. YOU KNOW, LIKE IT GOES BACK TO THE LANCE HAND THAT THE KNIGHTS USED, AND WE JUST DON'T KNOW. AS FAR AS THE LEFT HAND DRIVE IN THE U.S., I THINK IT'S PRETTY CLEAR THAT WHICH SIDE OF THE ROAD YOU DRIVE ON IS THE ONE THAT I DON'T THINK THERE'S A CLEAR ANSWER FOR.

AS FAR AS THE SELECTION ABOUT THE STEERING WHEEL, I MEAN, REALLY, LIKE SO MANY THINGS AUTOMOTIVE, I THINK HENRY FORD HAD THE BIGGEST ROLE IN STANDARDIZING THAT. THE IDEA WAS THAT, IF YOUR PASSENGER WAS GOING TO BE GETTING OUT, YOU'RE GOING TO BE DRIVING ON THE RIGHT, I MEAN, WE DRIVE ON THE RIGHT SIDE OF THE ROAD. THE DRIVER SHOULD BE ON THE LEFT SO THE PASSENGER COULD ACCESS THE CURB MORE EASILY.

VAL>> I SEE.

JESS>> AND THOSE OF US WHO ARE RIGHT-HANDED LIKE THE STICK SHIFT BEING ON THE RIGHT-HAND SIDE TOO.

MATT ROTH>> WELL, THERE'S THAT, YEAH.

VAL>> WELL, THAT'S TRUE. ON THE OTHER HAND, YOU DON'T ALWAYS HAVE A PASSENGER. YOU ALWAYS HAVE A DRIVER, SO IT MEANS A LOT OF PEOPLE ARE GETTING OUT OF THE DRIVER'S SIDE INTO TRAFFIC.

MATT ROTH>> INTO TRAFFIC. THAT'S TRUE.

JESS>> AND NEXT WE'LL ASK WHY DID THEY CALL IT A RUMBLE SEAT? (LAUGHTER)

MATT ROTH>> I DON'T KNOW. GOOD QUESTION. I WORK FOR THE AUTO CLUB. I'M NOT GETTING INTO THAT. (LAUGHTER)

JESS>> MATT ROTH, THANKS FOR BEING WITH US AND THANKS FOR SHARING THAT GREAT OLD FILM.

VAL>> THAT IS GREAT.

MATT ROTH>> APPRECIATE IT.

VAL>> THAT'S OUR PROGRAM FOR TONIGHT. REMEMBER, WE HAVE STREAMING AUDIO AND TRANSCRIPTS OF RECENT SHOWS ON OUR WEBSITE AT KCET.ORG.

JESS>> NOW FOR ALL OF US HERE AT LIFE AND TIMES, HAVE A GREAT WEEKEND.

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