3/21/02

LC020321

VAL>> ON LIFE AND TIMES TONIGHT --

GLITZ AND GLAMOUR ARE FINALLY STARTING TO REPLACE POTHOLES AND PROSTITUTES IN THE NEIGHBORHOOD, BUT HOLLYWOOD MAY STILL DECIDE TO BREAK AWAY FROM LOS ANGELES.

GENE LA PIETRA>> THE CITY SAYS THAT HOLLYWOOD IS THE HEART OF THE CITY. WELL, IF THAT'S THE CASE, WE'VE BEEN ON A PACEMAKER FOR AN AWFUL LONG TIME.

VAL>> HOUSTON HAS ENRON AND WE'VE GOT GLOBAL CROSSING. TONIGHT A LOOK AT THE HUMAN CARNAGE LEFT IN THE WAKE OF A CALIFORNIA CORPORATE MELTDOWN AND WHY WORKERS ARE BLAMING THE EXECUTIVES.

>> SO PLEASE DON'T MAKE IT A CUSHY PRISON. BUT IF THEY COULD BRING BACK THE CHAIN GANG, I'D HOPE TO SEE ALL THOSE EXECUTIVES IN ORANGE SUITS AND CHAINED TOGETHER.

VAL>> AND PATT MORRISON IS TAKING A GLOBAL PERSPECTIVE TONIGHT. SHE'S FOCUSING ON POTATO POLITICS.

PATT>> IDAHO. SURE, IT CAN MAKE GREAT FRENCH FRIES, BUT CAN IT MAKE FOREIGN POLICY? ON TONIGHT'S INFINITELY MORRISON.

VAL>> PLUS, A NEW FACE AND A NEW LIFE FOR A LOS ANGELES ICON. THE OLD CINERAMADOME IS ALL FIXED UP AND READY FOR BUSINESS. BUT HOW DOES THE NEW CINERAMADOME COMPARE WITH THE OLD MOVIE PALACE YOUR FOLKS REMEMBER FROM DATE NIGHT FORTY YEARS AGO? TONIGHT WE'LL GET A SNEAK PEEK.

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 HAS THE NIGHT OFF.

OSCAR FEVER MAY HAVE GRIPPED THE MOTION PICTURE INDUSTRY, BUT HOLLYWOOD IS ALSO BUZZING ABOUT SOMETHING ELSE AND THAT'S SECESSION. A NEW REPORT SAYS HOLLYWOOD COULD INDEED SURVIVE ON ITS OWN IF IT DECIDES TO BREAK AWAY FROM LOS ANGELES. IT'S ONE OF THREE L.A. COMMUNITIES THAT ARE NOW CONSIDERING SECESSION AND, AS GAY YEE REPORTS, THE BREAK-AWAY CAMPAIGN MAY BE GAINING STEAM JUST AS HOLLYWOOD IS RECLAIMING SOME OF ITS PAST GLORY.

GAY>> A GIANT OSCAR IS PULLED FROM HIS YEAR-LONG SLUMBER. WORKERS ROLL OUT THE RED CARPET AND READY THE VIEWING STANDS. THE ACADEMY AWARDS SHOW IS ONLY THREE DAYS AWAY AND, THIS TIME, OSCAR IS FINALLY COMING HOME.

DAMIAN BONA>> I THINK HAVING THE OSCARS BACK IN HOLLYWOOD IS A GREAT THING AND IT DOES SYMBOLIZE ALMOST THE PLACE COMING FULL CIRCLE. HAVING IT BACK HERE REALLY, I THINK, IS THE ACADEMY'S WAY OF SAYING, YOU KNOW, WE'RE ALL ABOUT HOLLYWOOD AND THAT'S WHERE WE SHOULD BE FOR THE AWARDS.

GAY>> BUT AS OSCAR COMES HOME, HOLLYWOOD MAY BE ABOUT TO LEAVE. THE NEIGHBORHOOD THAT'S AN ICON FOR THE MOVIE BUSINESS HAS LAUNCHED A CAMPAIGN TO SECEDE FROM LOS ANGELES.

GENE LA PIETRA>> MAYBE IT'S TIME TO LET US STAND ON OUR OWN. MAYBE IT'S TIME FOR HOLLYWOOD TO TAKE RESPONSIBILITY FOR HOLLYWOOD, FOR HOLLYWOOD TO DO THE THINGS IT KNOWS IT HAS TO DO TO BRING BACK THE GLORY AND THE GLAMOUR THAT IS HOLLYWOOD.

GAY>> DOWN THROUGH THE YEARS, HOLLYWOOD HAS HAD ITS UPS AND DOWNS. THE LAST OSCAR CEREMONY IN HOLLYWOOD WAS IN 1959 AT THE PANTAGES THEATRE. BACK THEN, THE NEIGHBORHOOD WAS STILL SWANK AND SOPHISTICATED, FILLED WITH PRESTIGIOUS OFFICE BUILDINGS, EXPENSIVE BOUTIQUES AND GRAND MOVIE PALACES. BUT OVER THE YEARS, IT DETERIORATED, BECOMING A HOME FOR RUNAWAYS, PROSTITUTES AND CHEAP SOUVENIR SHOPS.

NOW THE BATTLE TO TURN IT AROUND IS CENTERED HERE AT THE CORNER OF HOLLYWOOD AND HIGHLAND, A $385 MILLION DOLLAR ENTERTAINMENT, RETAIL AND HOTEL COMPLEX WHICH INCLUDES THE KODAK THEATRE, THE NEW PERMANENT HOME FOR THE OSCAR CEREMONIES. HOLLYWOOD HASN'T LOOKED THIS GOOD IN DECADES, BOTH COSMETICALLY AND ECONOMICALLY, AND THE SECESSIONISTS SAY THAT'S EXACTLY THEIR POINT. WHAT BETTER TIME IS THERE TO LEAVE L.A.?

GENE LA PIETRA>> THE OSCARS NEVER SHOULD HAVE LEFT HOLLYWOOD IN THE FIRST PLACE. IF THEY WERE ON TOP OF THEIR JOBS, IT NEVER WOULD HAVE LEFT HOLLYWOOD.

GAY>> LA PIETRA IS A HOLLYWOOD RESIDENT AND BUSINESSMAN. HE OWNS THE "CIRCUS" AND "ARENA", TWO HUGE NIGHTCLUBS OFF SANTA MONICA BOULEVARD. HE SAYS LOS ANGELES HAS SHORTCHANGED HOLLYWOOD FOR TOO LONG WITH TOO FEW POLICE OFFICERS, POTHOLES AND POOR TRASH PICKUPS. LA PIETRA SAYS A RECENT GOVERNMENT REPORT SAYS HOLLYWOOD WOULD BE FINANCIALLY VIABLE ON ITS OWN.

GENE LA PIETRA>> THE CITY SAYS THAT HOLLYWOOD IS THE HEART OF THE CITY. WELL, IF THAT'S THE CASE, WE'VE BEEN ON A PACEMAKER FOR AN AWFUL LONG TIME.

GAY>> THE HOLLYWOOD SECESSION ISSUE COULD WIND UP ON THE BALLOT AS EARLY AS NOVEMBER, ALONG WITH THE OTHER SECESSION MEASURES FOR THE HARBOR AREA AND THE SAN FERNANDO VALLEY. THE QUESTION IS, CAN EVEN A NEWLY-REVIVED HOLLYWOOD GET ALONG ON ITS OWN WITHOUT LOS ANGELES?

JOHNNY GRANT>> HOLLYWOOD AND L.A. HAVE HAD A GREAT MARRIAGE AND I'M NOT SURE IT'S TIME FOR A DIVORCE. I THINK THERE ARE VERY SERIOUS QUESTIONS AND PROBLEMS ON BOTH SIDES.

GAY>> JOHNNY GRANT IS THE UNOFFICIAL MAYOR OF THIS TOWN. THERE'S EVEN A STREET NAMED AFTER HIM OUTSIDE THE HOLLYWOOD AND HIGHLAND COMPLEX. HE LIVES DOWN THE BLOCK AT THE FAMOUS ROOSEVELT HOTEL, SITE OF THE VERY FIRST ACADEMY AWARDS CEREMONY. IT HAPPENED IN THE HOTEL'S "BLOSSOM ROOM". GRANT STILL HASN'T MADE UP HIS MIND WHETHER HOLLYWOOD SHOULD STAY OR LEAVE, BUT IF IT GOES, GRANT SAYS IT WILL BE A BIG LOSS FOR L.A.

JOHNNY GRANT>> TOM BRADLEY USED TO TELL ME HE'D GO AROUND THE WORLD AND SAY HE WAS THE MAYOR OF L.A. AND THE FIRST THING PEOPLE WOULD SAY, "IS THAT NEAR HOLLYWOOD?"

GAY>> BUT THERE'S A HARD EDGE TO THE BATTLE OVER TINSELTOWN.

JOHNNY GRANT>> THIS IS NOT GOING TO BE A MILD-MANNERED CAMPAIGN, I CAN TELL YOU THAT. THERE WILL BE BLOODSHED. I DON'T MEAN, YOU KNOW, CUTTING NECKS AND STUFF LIKE THAT, BUT I MEAN -- I'D BETTER SAY THAT THERE WILL BE BRUISED FEELINGS.

GAY>> FOR NOW, THE SECESSION DRIVE HAS TAKEN A BACK SEAT TO THE OSCAR BUZZ THAT'S CONSUMED HOLLYWOOD, BUT THE CELEBRATION MAY NOT LAST LONG. THE SHRINERS ARE VOWING TO UPGRADE THEIR DOWNTOWN AUDITORIUM, OSCAR'S HOME IN RECENT YEARS, AND BRING THE TROPHY BACK NEXT YEAR.

VAL>> GAY YEE JOINS US NOW. IS THAT RIGHT? THE SHRINE AUDITORIUM IS GOING TO MAKE A PLAY TO GET THE OSCARS BACK?

GAY>> SURE LOOKS LIKE IT. THERE WAS JUST AN ARTICLE TODAY IN THE PAPER THAT SAID THEY'RE POURING $3 MILLION DOLLARS TO REVITALIZE THE PLACE, EXPAND, CLOSE OFF THE STREET, PUT OUT A PLAZA, REFURBISH THE INSIDE. THEY'RE MAKING A DEFINITE PLAY FOR IT, I'M SURE.

VAL>> BUT THE HOLLYWOOD AND HIGHLAND COMPLEX WAS DESIGNED, I THOUGHT, SPECIFICALLY FOR THE OSCARS.

GAY>> IT WAS. IT IS A STATE OF THE ART FACILITY SPECIFICALLY FOR AIRING THE ACADEMY AWARDS. IT IS STATE OF THE ART. HOWEVER, THERE IS ABOUT HALF THE SEATS THAT THERE ARE AT THE SHRINE AUDITORIUM. A LOT OF MEMBERS ARE MAD. THEY HAVE TO GO TO A LOTTERY SYSTEM THIS YEAR SO THOSE PEOPLE COULD GO, AND THERE ARE A LOT OF PEOPLE LEFT OUT AND A LOT OF BRUISED EGOS.

VAL>> SO A LOT OF HOLLYWOOD FOLKS WILL NOT ACTUALLY BE ABLE TO BE IN THE OSCARS WHERE THEY WOULD HAVE BEEN ABLE TO BE THERE IF THEY WERE AT THE SHRINE.

GAY>> RIGHT. GOING TO PARTIES AND WATCHING IT THERE.

VAL>> NOW IN REGARDS TO THE SECESSION, WHAT'S THE STATUS ON THAT? WHEN IS THE NEXT MAJOR STEP?

GAY>> LAVCO IS THE PARTY THAT DID THE STORY, THE AGENCY THAT ACTUALLY DID THE STUDY. THEY BELIEVE THAT IT'S VIABLE FOR HOLLYWOOD TO BE ABLE TO SUSTAIN ITSELF. ONE OF THE THINGS THEY SAID WAS THEY WERE LOOKING AT THE TERRITORY FROM THE HOLLYWOOD HILLS TO MELROSE, TALKING ABOUT 180,000 PEOPLE TO 200,000, COULD PROBABLY HAVE A FIVE-MEMBER CITY COUNCIL AND HAVE A BUDGET OF ABOUT $176 MILLION DOLLARS AND, WITHIN FOUR YEARS, HAVE SOME SORT OF PROFIT OF ABOUT $6 MILLION, BUT THEY COULD DO IT.

VAL>> SO THAT PAVES THE WAY FOR THE ELECTION IN NOVEMBER.

GAY>> POSSIBLY NOVEMBER, OR ANOTHER COUPLE OF YEARS DOWN THE ROAD. WE'LL HAVE TO SEE.

VAL>> GAY YEE, THANK YOU SO MUCH.

TOMORROW ON LIFE AND TIMES, IT'S THE LATEST THING IN AIRPORT SECURITY, A BODY SCANNER THAT GOES WHERE NO MACHINE HAS GONE BEFORE, BUT SOME SAY IT'S AN INVASION OF PRIVACY.

GAY YEE>> THE SAME TECHNOLOGY THAT PENETRATES CLOTHING TO REVEAL WEAPONS ALSO REVEALS INTIMATE DETAILS OF THE HUMAN BODY. CRITICS SAY THE SCAN GOES TOO FAR.

>> IF WE WERE CLOAKING THIS AREA BECAUSE OF PRIVACY CONCERNS AND BASICALLY KOWTOWING TO THE ACLU, WE PROBABLY WOULD NOT HAVE IDENTIFIED, AND THAT PLASTIC EXPLOSIVE SIMULATE WOULD HAVE GOTTEN ON A PLANE.

VAL>> TONIGHT WE'RE GOING TO LOOK AT A MAJOR NATIONAL STORY THAT'S ALSO A HUGE LOCAL STORY, THE FINANCIAL MELTDOWN OF A BEVERLY HILLS COMPANY CALLED GLOBAL CROSSING. JUST A MONTHS AGO, GLOBAL CROSSING WAS A TELECOMMUNICATIONS GIANT AND A BUILDER OF A FIBER-OPTIC NETWORK. NOW IT'S AT THE CENTER OF THE FOURTH LARGEST BANKRUPTCY CASE IN U.S. HISTORY.

THE FOUNDING CHAIRMAN, GARY WINNICK, BECAME ONE OF THE RICHEST MEN IN THE WORLD WITH A PERSONAL FORTUNE ESTIMATED AT $6 BILLION DOLLARS. PART OF WINNICK'S HOLDINGS INCLUDE TWO BEACHFRONT HOUSES IN MALIBU PLUS A $94 MILLION DOLLAR BEL AIR ESTATE NOW UNDER RENOVATION. BUT WHEN GLOBAL CROSSING WENT UNDER, MANY OF WINNICK'S EMPLOYEES WERE LEFT WITH NOTHING.

>> I DO BELIEVE THAT GARY WINNICK SHOULD GO TO JAIL, THE BOARD OF DIRECTORS SHOULD GO TO JAIL AND THEY SHOULD BE TREATED AS A DRUG DEALER. THEY SHOULD HAVE THEIR PROPERTY, THEIR MONEY, THEIR STOCK, ALL CONFISCATED BY THE GOVERNMENT.

VAL>> TONIGHT'S NEWSHOUR WITH JIM LEHRER TOOK A LOOK AT THE GLOBAL CROSSING STORY IN DEPTH AND JOINING US NOW IS THE JOURNALIST WHO DID THAT REPORT, NEWSHOUR CORRESPONDENT JEFFREY KAYE. WELCOME TO LIFE AND TIMES.

JEFFREY KAYE>> GOOD TO BE HERE.

VAL>> KEN LAY AND ENRON. IS IT VIRTUALLY A PARALLEL UNIVERSE WITH WINNICK AND GLOBAL CROSSING?

JEFFREY KAYE>> WELL, YEAH, THERE ARE SIMILARITIES, THERE ARE DIFFERENCES. THE BIG DIFFERENCE, OF COURSE, IS GLOBAL CROSSING -- ENRON MADE MONEY THROUGH PAPER DEALS, A LOT OF PAPER TRANSACTIONS. GLOBAL CROSSING BUILT SOMETHING. THEY WERE ABLE TO FIND INVESTORS TO BRING IN $15 BILLION DOLLARS IN STOCK AND VENTURE CAPITAL AND BUILD A FIBER-OPTIC NETWORK AROUND THE WORLD, SO THERE WAS SOMETHING TANGIBLE THERE.

VAL>> WELL, IF THERE IS SOMETHING TANGIBLE THERE, THEN WHY ARE THEY IN BANKRUPTCY?

JEFFREY KAYE>> THEY'RE IN BANKRUPTCY BECAUSE LOTS OF PEOPLE WERE BUILDING NETWORKS. THERE WAS AN INTERNET BUBBLE THAT BURST, FRANKLY. AS YOU KNOW, MANY DOT COMS WENT UNDER AND THE TELECOMMUNICATIONS INDUSTRY SUFFERED GREATLY AND GLOBAL CROSSING IS THE SINGLE LARGEST TELECOM BUSINESS TO GO BANKRUPT. THEY BASICALLY OVER-BUILT. THE DEMAND WASN'T THERE. THEY HAD INCREDIBLE DEBT THEY WERE UNABLE TO PAY OFF. THEY COULDN'T SUSTAIN THE COMPANY.

VAL>> SO, AS YOU SAID I THINK IN YOUR PIECE, IT WAS AN INFORMATION HIGHWAY THAT JUST DIDN'T HAVE ENOUGH TRAFFIC.

JEFFREY KAYE>> DIDN'T HAVE ENOUGH TRAFFIC. NOW THE QUESTION, OF COURSE, THE BIG QUESTION, IS ACCOUNTABILITY. THERE WAS AN ENORMOUS AMOUNT OF MONEY THAT PASSED THROUGH THE HANDS OF THE PEOPLE WHO FOUNDED THE COMPANY AND PEOPLE WHO RAN THE COMPANY. WHAT DID THEY DO WITH THAT MONEY, HOW DID THEY SPEND IT AND WERE THEY RESPONSIBLE? THERE ARE MANY SHAREHOLDERS WHO ARE SAYING THESE GUYS CASHED IN AT A TIME WHEN THE COMPANY WAS GOING DOWNHILL. THEY TOOK THEIR MONEY AND RAN AND THEY KNEW BETTER.

VAL>> SO THAT IS VERY FAMILIAR. LIKE ENRON, THE TOP EXECUTIVES WERE SAYING THAT THINGS WERE, YOU KNOW, LOOKING GREAT, BUT KNOWING HOWEVER THAT THE STOCK WAS GOING DOWN, AND THEY THEMSELVES -- WERE THE GLOBAL CROSSING PEOPLE CASHING OUT AT A TIME WHEN THE COMPANY WAS GOING --

JEFFREY KAYE>> -- THEY WERE CASHING OUT AT A TIME WHEN THE COMPANY WAS GOING DOWN. THERE'S NO QUESTION ABOUT THAT.

VAL>> LIKE TO THE TUNE OF HOW MUCH MONEY?

JEFFREY KAYE>> GARY WINNICK MADE, I THINK, IT WAS $154 MILLION DOLLARS HIMSELF BY CASHING STOCK IN MAY, IN ONE MONTH ALONE.

VAL>> $154 MILLION?

JEFFREY KAYE>> YEAH, YEAH, HE HAD STOCK OPTIONS, AND HE WAS THE FOUNDER OF THE COMPANY. SO THAT'S NOT UNUSUAL THAT SOMEONE WHO FOUNDED A COMPANY WOULD GET THOSE KINDS OF STOCK OPTIONS AND BE ABLE TO CASH THEM IN.

VAL>> BUT WHAT'S UNUSUAL IS THE FACT THAT HE WAS CASHING OUT WHEN THE COMPANY WAS SLIDING.

JEFFREY KAYE>> WHEN THE COMPANY WAS SLIDING, WHEN LAYOFFS WERE EMINENT AND THE PEOPLE WERE RAISING QUESTIONS ABOUT THE FINANCIAL VIABILITY OF THE COMPANY, AT THE SAME TIME THEY'RE BRINGING ON NEW PEOPLE AND GIVING THEM SIGNING BONUSES AND ALL KINDS OF THINGS --

VAL>> -- AT THE HIGHER LEVEL.

JEFFREY KAYE>> AT THE HIGHER LEVEL, LAYING OFF PEOPLE, CUTTING OFF THEIR SEVERANCES WHEN THEY WENT BANKRUPT AND LEAVING SHAREHOLDERS WITH WORTHLESS STOCK.

VAL>> SO WHAT RECOURSE DO THESE EMPLOYEES HAVE? THE RANK AND FILE WHO LOST SO MUCH?

JEFFREY KAYE>> WELL, THEY'RE SUING THEM. MANY HAVE -- THERE ARE CLASS ACTION SUITS PENDING. CERTAINLY THEY HOPE TO BE ABLE TO RECOUP SOME OF WHAT THEY'VE LOST. I'M SURE THEY'LL GO AFTER THE ASSETS OF SOME OF THESE GUYS IF THEY CAN FIND SOME KIND OF WRONGDOING, AND THAT'S A BIG QUESTION. THESE GUYS MADE OUT LIKE BANDITS. A LOT OF PEOPLE WANT TO KNOW WERE THEY BANDITS.

VAL>> WELL, CONGRESSIONAL HEARINGS ARE HAPPENING TODAY?

JEFFREY KAYE>> STARTED TODAY, AND THERE WERE LOTS OF QUESTIONS RAISED IN THAT CONGRESSIONAL HEARING ABOUT WHETHER OR NOT THEY ARTIFICIALLY RAISED THE VALUE OF THE COMPANY. ONE OF THE REASONS THEY WOULD DO THAT, IF THEY DID THAT, WAS OBVIOUSLY THEY COULD MAKE MORE IF THE COMPANY IS WORTH MORE. THEN THE OTHER QUESTIONS WERE ABOUT THE ACCOUNTING PRACTICES.

INTERESTINGLY, ONE OF THE SIMILARITIES BETWEEN GLOBAL CROSSING AND ENRON WAS THAT THEY HAD THE SAME ACCOUNTING FIRM, ARTHUR ANDERSEN. IN FACT, THE CHIEF AUDITOR FROM ARTHUR ANDERSEN WENT TO WORK FOR GLOBAL CROSSING, RAISING SUSPICIONS AND QUESTIONS IN THE MINDS OF MANY ABOUT HOW FAIR AND REALISTIC THOSE AUDITS WERE AND WHAT THE ANALYSTS KNEW AND WHETHER THEY WERE GIVEN THE CORRECT INFORMATION.

VAL>> NOW WE SAW THESE EMPLOYEES WHO WERE BASICALLY CLAMBERING TO SEE THE EXECUTIVES IN JAIL. THEY WANT THEM BEHIND BARS. WHAT ARE THE CHANCES THAT WINNICK AND OTHERS WILL ACTUALLY GET BEHIND BARS OR WILL THEY COME OUT UNSCATHED?

JEFFREY KAYE>> WELL, THAT'S A GOOD QUESTION. THE FBI IS INVESTIGATING, THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING, PEOPLE ARE LOOKING FOR INFORMATION, FOR EVIDENCE. THERE ARE MANY PEOPLE WHO DON'T LIKE WHAT THEY DID. WHETHER OR NOT THOSE ALLEGED MISDEEDS RISE TO THE LEVEL OF CRIMINAL WRONGDOING IS A QUESTION. PEOPLE OBVIOUSLY HAVE DEEP MISGIVINGS ABOUT WHETHER OR NOT -- QUESTIONS ABOUT WHETHER IT WAS ETHICAL OR NOT.

VAL>> THE REFORMS THAT ENRON IS TRIGGERING, OR AT LEAST SEEMS TO BE TRIGGERING, WOULD IT ALSO COVER THE KIND OF THINGS THAT WENT WRONG WITH GLOBAL CROSSING? OR IS GLOBAL CROSSING A SEPARATE KIND OF CASE?

JEFFREY KAYE>> WELL, IT'S A SEPARATE KIND OF CASE IN MANY WAYS, BUT I THINK THE GENERAL ISSUE OF HOW ACCOUNTABLE EXECUTIVES SHOULD BE TO THE PEOPLE WHO WORK FOR THOSE COMPANIES, FOR PEOPLE WHO HAVE 401(K) PLANS. A LOT OF PEOPLE LOST A LOT OF MONEY IN THEIR PENSION PLANS. THOSE GENERAL QUESTIONS ARE CERTAINLY QUESTIONS THAT ARE BEING RAISED ALIKE IN THE GLOBAL CROSSING CASE. I THINK HAD IT NOT BEEN FOR ENRON, GLOBAL CROSSING WOULD HAVE GOTTEN ALL THE PUBLICITY SINCE IT'S SUCH A HUGE CASE.

VAL>> GLOBAL CROSSING DID ACTUALLY BENEFIT FROM ENRON'S PUBLICITY IN THAT THEY WENT --

JEFFREY KAYE>> -- UNDER THE RADAR SCREEN, ABSOLUTELY, BUT I DON'T THINK THEY ARE GOING TO BE FOR MUCH LONGER.

VAL>> HOPE NOT. JEFFREY, THANK YOU SO MUCH. SUPERB REPORT. THANKS SO MUCH.

JEFFREY KAYE>> PLEASURE TO BE HERE.

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VAL>> BUDDING WRITERS ARE ADVISED TO "STICK TO WHAT YOU KNOW". WELL, PATT MORRISON SAYS THAT ALSO HOLDS TRUE FOR LOCAL GOVERNMENT. HERE'S TONIGHT'S INFINITELY MORRISON.

PATT>> MY FAVORITE FOREIGN NEWS STORY THIS WEEK IS OUT OF THAT STRANGE COUNTRY CALLED IDAHO. THE FEDERAL GOVERNMENT IS SMACKING DOWN THE GEM STATE FOR DARING TO MAKE FOREIGN POLICY. THE IDAHO HOUSE DECLARED ITS SUPPORT FOR SELF-DETERMINATION FOR SPAIN'S BASQUE MINORITY. THIS IS A HOMETOWN FAVORITE IN IDAHO, WHICH IS HOME TO THE LARGEST BASQUE POPULATION IN NORTH AMERICA, BUT IT DID NOT SIT WELL WITH THE SPANISH GOVERNMENT OR THE AMERICAN ONE, THAT THE RESOLUTION DID NOT CONDEMN A BASQUE MILITANT GROUP THAT BOTH NATIONS REGARD AS TERRORISTS. "AHEM," SAID THE COLIN POWELL-ITES, "FOREIGN POLICY IS THE PROVINCE OF THE EXECUTIVE BRANCH, NOT THE STATE WHOSE LICENSE PLATE SAYS 'FAMOUS POTATOES'."

FOR ALL THE QUOTIENT OF ABSURDITY -- AND YOU CAN BET THAT THE LENO-LETTERMAN WRITING TEAMS GOT RIGHT TO WORK ON IT -- THERE IS UNDERLYING AND SOBERING SUBSTANCE. LAST YEAR, GLENDALE, WHERE ONE OF EVERY THREE RESIDENTS IS ARMENIAN, FOUND ITSELF IN THE EYE OF A POLITICAL HURRICANE FOR LOWERING THE STARS AND STRIPES TO COMMEMORATE THE ARMENIAN HOLOCAUST. A FEW YEARS EARLIER, THE HEAVILY-VIETNAMESE CITY OF WESTMINSTER IN ORANGE COUNTY HAD CONSIDERED HANGING SOUTH VIETNAMESE FLAGS FROM THE CITY'S LIGHT POLES TO MARK THE ANNIVERSARY OF THE FALL OF SAIGON. IT WAS AMERICAN VETERANS OF THE VIETNAM WAR WHO PUT THE KIBOSH ON THAT ONE.

LAST FALL, A DADE COUNTY ORDINANCE BANNING OFFICIAL BUSINESS WITH ANYONE WHO DEALT WITH CASTRO'S CUBA THREATENED TO KEEP THE GRAMMY AWARDS OUT OF MIAMI. LONG BEFORE WORLD WAR II, SOME AMERICANS PROTESTED THE PERILS OF HITLER AND FASCISM. EVEN THOUGH THE U.S. FINALLY CAME AROUND TO THE IDEA THAT NAZISM IS BAD, THE FBI NONETHELESS KEPT FILES ON SUCH PEOPLE AND LABELED THEM "P.A.F.", PREMATURE ANTI-FASCIST. IN OTHER WORDS, DON'T TRY TO BE SMARTER THAN YOUR OWN GOVERNMENT - OR ELSE.

BACK TO IDAHO. RATHER THAN THE U.S. GOVERNMENT HAVING TO STEP IN AND TAKE A SWAT AT THE STATE, SPAIN SHOULD HAVE FOUGHT BACK ITSELF. "FINE", MADRID WOULD SAY. "YOU SUPPORT A BASQUE STATE, WE'LL JACK UP THE DUTIES ON IDAHO POTATOES", AND MCDONALDS FROM BILBAO TO BARCELONA WOULD HAVE GONE FRY-LESS AND IDAHO WOULD EVENTUALLY HAVE CRIED UNCLE - OR TEAL.

VAL>> IT'S ONE OF HOLLYWOOD'S MOST FAMILIAR LANDMARKS AND IT OPENED FOR BUSINESS NEARLY FORTY YEARS AGO ON SUNSET BOULEVARD, A BIG GIANT-SCREEN MOVIE THEATER BUILT IN THE SHAPE OF A GEODESIC DOME. THE NAME SEEMED OBVIOUS. THEY CALLED IT THE "CINERAMADOME" AND IT BECAME THE SITE OF COUNTLESS MOVIE PREMIERS. WELL, THE THEATER CLOSED FOR RENOVATION IN AUGUST OF 2000, BUT THE FACELIFT IS NOW COMPLETE AND THE CINERAMADOME IS ABOUT TO REOPEN AS THE FOCAL POINT OF A BRAND NEW ENTERTAINMENT COMPLEX CALLED ARC LIGHT. JOINING US NOW IS CHRISTOPHER FORMAN. HE IS CEO OF PACIFIC THEATRES.

YOUR FAMILY BUILT THE CINERAMADOME AND HAS OWNED IT ALL THIS TIME, SO YOU HAVE -- THIS GOES WAY BACK IN THE HISTORY OF YOUR FAMILY. WHAT DO YOU THINK OF THE NEW ONE? ARE YOU HAPPY WITH IT? IS IT TRUE TO THE ORIGINAL?

CHRISTOPHER FORMAN>> VERY MUCH SO. IN FACT, WE'VE PRESERVED THE GIANT CURVED SCREEN. I THINK IT'S 89 FEET WIDE, IT'S 33 FEET HIGH AND WE'VE IMPROVED IT. WE'VE IMPROVED THE SOUND, WE'VE IMPROVED THE SIGHT, THERE'S MORE LIGHT ON THE SCREEN THAN EVER BEFORE. WE'VE REPLACED THE EIGHT SURROUND SPEAKERS WITH 44 SURROUND SPEAKERS. THE DOME IS BACK AND IT'S BETTER THAN EVER.

VAL>> NOW THERE WAS A TIME WHEN YOU -- I'M NOT SURE IF IT WAS YOU PERSONALLY -- BUT THERE WAS TALK ABOUT RAZING THE DOME AND THERE WAS THIS HUE AND CRY ABOUT SAVING IT.

CHRISTOPHER FORMAN>> WELL, YOU CAN'T BELIEVE EVERYTHING YOU READ. IT WAS NEVER OUR INTENTION TO KNOCK THE DOME DOWN.

VAL>> YOU NEVER CONSIDERED THAT?

CHRISTOPHER FORMAN>> NO. I MEAN, THE FACT OF THE MATTER IS THAT SINGLE SCREENS DON'T WORK ANYMORE. THE ECONOMICS DON'T WORK. SO WHAT WE WANTED TO DO WAS TO ADD TO THE DOME, TO ADD ADDITIONAL SCREENS, BUT IT WAS NEVER OUR INTENTION TO KNOCK THE DOME DOWN.

VAL>> BUT WE SHOULD MAKE IT CLEAR THAT THE CINERAMADOME ITSELF IS STILL A SINGLE SCREEN, BUT YOU'VE ADDED FOURTEEN OTHER SCREENS. WE'LL GET TO THAT IN A MINUTE, BUT LET'S GO TO THE PAST FIRST AND SEE WHAT IT LOOKED LIKE BACK, I THINK, IT WAS 1963, CORRECT?

CHRISTOPHER FORMAN>> 1963.

VAL>> OKAY. LET'S TAKE A LOOK. THIS IS 1963. TELL US WHAT WE'RE SEEING HERE. THESE ARE SKETCHES?

CHRISTOPHER FORMAN>> WELL, IT OPENED ON NOVEMBER 7, 1963. THESE ARE SOME OF THE ORIGINAL DRAWINGS. IT OPENED FOR "MAD, MAD, MAD, MAD WORLD". THERE WE'RE JUST PASSING MY GRANDFATHER --

VAL>> -- WHERE? OH, I SAW --

CHRISTOPHER FORMAN>> -- THAT'S RIGHT. HE WAS SITTING TO THE RIGHT OF STANLEY KRAMER, THE FILM'S DIRECTOR. THERE'S A GREAT STORY ABOUT THIS. MY GRANDFATHER MADE THE FILM DEAL TO SHOW "MAD, MAD WORLD" IN HOLLYWOOD BEFORE HE OWNED A PIECE OF PROPERTY IN HOLLYWOOD.

VAL>> SO HE WANTED TO -- HE BASICALLY WANTED IT TO BE THE PLACE WHERE THE PREMIER OF THE FILM WOULD HAPPEN EVEN BEFORE THE PLACE WAS BUILT?

CHRISTOPHER FORMAN>> THAT'S RIGHT, BEFORE HE OWNED ANY PROPERTY IN HOLLYWOOD. SO HE BOUGHT SIX ACRES HERE NEAR THE CORNER OF SUNSET AND VINE -- IT'S ACTUALLY SUNSET AND IVAR -- AND BUILT THE DOME IN SIXTEEN WEEKS.

VAL>> WOW, THAT'S AMAZING, AND IT'S HAD GREAT PREMIERS. "MAD, MAD, MAD, MAD WORLD", OF COURSE, "CAMELOT", "DELIVERANCE", CLOSE ENCOUNTERS OF THE THIRD KIND", ALL OF THEM OPENED AT THE CINERAMADOME.

CHRISTOPHER FORMAN>> AT THE DOME AND, OF COURSE, "E.T." I'M DELIGHTED THAT TOMORROW "E.T." COMES HOME.

VAL>> AND THIS IS THE RE-RELEASE OF "E.T.", WHICH WILL BE THE VERY FIRST FILM THAT YOU PREMIER IN THE NEW CINERAMADOME.

CHRISTOPHER FORMAN>> THAT'S CORRECT.

VAL>> THAT IS GREAT STUFF. NOW THERE ARE SOME PEOPLE -- I'M GOING TO BRING THIS UP -- WHO SAY THAT THE NEW CINERAMADOME -- AND IT'S GOT SOME VERY COMPLICATED TECHNOLOGY AND PROJECTORS AND SO FORTH -- NEVERTHELESS, LEAVES SOMETHING TO BE DESIRED IN TERMS OF THE SCREEN AND THE ACOUSTICS.

CHRISTOPHER FORMAN>> RIGHT.

VAL>> THAT THEY ARE NOT AS GOOD AS PROMISED.

CHRISTOPHER FORMAN>> RIGHT. THE ACOUSTICS? NOT AN ISSUE. BY PUTTING ACOUSTICAL MATERIAL WITHIN EACH OF THE GEODESIC SHAPES, WE'VE SIGNIFICANTLY IMPROVED THE ACOUSTICS AND I DON'T THINK ANYONE WOULD DISAGREE WITH THAT. SOME PEOPLE WERE LOOKING FOR US TO PUT A LOUVERED SCREENING. THAT'S A SCREEN THAT CONSISTS OF ABOUT 2,200 LITTLE STRIPS OF MATERIAL. WE TALKED TO A NUMBER OF CONSULTANTS. I MEAN, WE LOVE THE DOME. I LOVE THE DOME AND SO WE DID OUR ABSOLUTE BEST TO FIND OUT WHAT WOULD WORK.

EVERYONE WE TALKED TO SAID WE'RE GOING TO HAVE TROUBLE WITH THE LOUVERED SCREENS. WITH THE NEW SOUND SYSTEMS, THE NEW SPEAKERS, WITH THE VENTILATION SYSTEMS, YOU'LL GET VIBRATION AND YOU'LL SEE BLACK LINES. SO WE PUT A LIGHT-GAIN PERFORATED SCREEN, JUST AS IT ALWAYS WAS. I SAW "E.T." THERE A COUPLE OF DAYS AGO WITH THE DIRECTOR OF PHOTOGRAPHY WHO MADE THE FILM AND IT LOOKS GREAT.

VAL>> SO YOU'RE HAPPY. ALL RIGHT, WE'LL HAVE TO SET THE CRITICS ASIDE OR THEY'LL HAVE TO COME AND WATCH AND DECIDE FOR THEMSELVES.

CHRISTOPHER FORMAN>> THEY WILL HAVE TO COME AND SEE.

VAL>> NOW LET'S TAKE A LOOK AT WHAT THE NEW CINERAMADOME DOES LOOK LIKE. OF COURSE, WE SHOULD MENTION THAT THE CINERAMADOME IS STILL A SINGLE-SCREEN THEATER, BUT IT HAS ALL SORTS OF THINGS ADDED AROUND IT. NOT JUST FOURTEEN OTHER SCREENS, BUT, WHAT, RETAIL SPACE?

CHRISTOPHER FORMAN>> RIGHT. THERE'S RETAIL SPACE AND WHAT WE'VE ACTUALLY DONE ON THE PROPERTY IS WE'RE INTRODUCING A NEW CONCEPT IN MOVIEGOING THAT WE CALL ARC LIGHT. THE IDEA BEHIND ARC LIGHT -- ARC LIGHT IS BASED ON THE PREMISE THAT THE ENVIRONMENT WITHIN WHICH ONE SEES A FILM AFFECTS THE EXTENT OF THAT FILM'S POWER. SO THE IDEA BEHIND ARC LIGHT IS TO EXTEND AND ENHANCE THE MOVIEGOING EXPERIENCE.

VAL>> OKAY, WHAT DOES THAT MEAN IN CONCRETE TERMS?

CHRISTOPHER FORMAN>> WELL, WHAT THAT MEANS IS -- HERE WE SEE ARC LIGHT -- WHAT IT MEANS IN CONCRETE TERMS, WE'VE ADDED A NUMBER OF THINGS WE THINK WILL BE ATTRACTIVE TO MOVIEGOERS. THERE'S A CAFÉ BAR, WHICH WE'RE LOOKING AT NOW, WHERE YOU CAN GET A BITE TO EAT BEFOREHAND, A FULL MEAL. WE HAVE A SMALL RETAIL AREA IF YOU WANT TO BUY BOOKS ABOUT THE MOVIES, ABOUT MOVIEMAKERS, A SOUND TRACK PERHAPS.

VAL>> NOW THIS DOESN'T COME AT $7.50. I UNDERSTAND THE TICKETS ARE $14?

CHRISTOPHER FORMAN>> $14 AT PEAK TIMES ONLY. SO AT CERTAIN TIMES ON THE WEEKEND, THE ADULT PRICE IS $14. THAT'S JUST ON THE WEEKENDS. THERE IS MEMBER PRICING AVAILABLE AT NON-PEAK TIMES ON THE WEEKEND AND DURING THE WEEK. BUT INCLUDED IN THAT $14 IS THREE HOUR'S VALIDATED PARKING, THERE'S NO ADDITIONAL FEE IF YOU WANT TO BOOK YOUR TICKET ON THE INTERNET OR OVER THE TELEPHONE, THERE IS NO ADVERTISING OF ANY SORT IN THE THEATER.

VAL>> NO KIDDING? WE DON'T HAVE TO SIT THROUGH THOSE L.A. TIMES ADS OR WHATEVER ELSE COMES UP?

CHRISTOPHER FORMAN>> RIGHT. NO SLIDES, NO ROLLING STOCK ADVERTISING.

VAL>> BUT THERE ARE STILL PREVIEWS, RIGHT?

CHRISTOPHER FORMAN>> THERE ARE ABSOLUTELY. THAT'S PART OF THE MOVIEGOING EXPERIENCE. SO SOME OF THE OTHER THINGS, WE WILL HAVE EXHIBITS. WE'VE CURRENTLY GOT FIGURES FROM MADAME TUSSAUDS, VERY REALISTIC LIFELIKE FIGURES, A POSTER EXHIBIT FROM THE TORONTO INTERNATIONAL FILM FESTIVAL --

VAL>> -- AND THERE'S RESERVE SEATING SO I ACTUALLY -- HOW DO I KNOW WHAT SEAT I'M GETTING?

CHRISTOPHER FORMAN>> WELL, EVERY SEAT IS RESERVED. THAT'S THE WAY THE DOME OPENED ORIGINALLY. ALL 4,000 SEATS ARE RESERVED. YOU WILL CHOOSE THE SECTION OF THE AUDITORIUM THAT YOU PREFER AND THEN YOU'LL BE ISSUED WITH A RESERVED SEAT TICKET.

VAL>> WOW, THAT IS A DIFFERENT WAY TO SEE A MOVIE. WE'LL SEE IF IT WORKS. WELL, THANK YOU SO MUCH FOR COMING IN. IT'S JUST FANTASTIC TO HAVE YOU HERE, CHRIS FORMAN.

CHRISTOPHER FORMAN>> IT'S MY PLEASURE.

VAL>> CONGRATULATIONS AND GOOD LUCK ON TOMORROW'S BIG PREMIER.

CHRISTOPHER FORMAN>> THANK YOU VERY MUCH.

VAL>> THE NEW AND IMPROVED CINERAMADOME OPENS TOMORROW, AS WE MENTIONED, WITH THE RE-RELEASED VERSION OF THE CLASSIC FILM, "E.T."

THAT IS OUR PROGRAM FOR TONIGHT. REMEMBER, YOU CAN CHECK OUT TRANSCRIPTS OR LISTEN TO AUDIO OF RECENT SHOWS OF LIFE AND TIMES. YOU CAN DO THAT SIMPLY BY LOGGING ONTO OUR WEBSITE AT KCET.ORG. FOR ALL OF HERE AT LIFE AND TIMES, THANKS SO MUCH FOR WATCHING. HAVE A GREAT EVENING.

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