5/7/02

LC020507

VAL>> ON LIFE AND TIMES TONIGHT --

JESS>> SLAVERY WAS CLEARLY AN UNSPEAKABLE CRIME, BUT ARE AMENDS 200 YEARS LATER APPROPRIATE AND WHO SHOULD PAY?

NEVADA LANGFORD>> I'VE OFTEN THOUGHT THAT ALL OF THE OLD MONEY AND ALL CAME FROM SLAVE LABOR AND OTHER PEOPLE HAVE BEEN COMPENSATED.

VAL>> A MAJOR SCANDAL IS BREWING IN SACRAMENTO. IT INVOLVES GOVERNOR DAVIS'S ADMINISTRATION, ORACLE CORPORATION AND A HUGE SOFTWARE CONTRACT THAT IS NOW UNDER INVESTIGATION. WHAT'S THE DAMAGE AND WHO WILL TAKE THE FALL? WE'LL SORT IT OUT WITH TWO POLITICAL ANALYSTS.

JESS>> PATT MORRISON'S BAGS ARE PACKED AND SHE'S READY TO GO. SO WHAT'S THE DELAY?

PATT MORRISON>> FEARLESS FLYING OR THE AIRPORT STRIPTEASE -- ON TONIGHT'S INFINITELY MORRISON.

VAL>> BEFORE THERE WAS STARBUCKS AND THE COFFEE BEANS, THERE WERE GOOGIES. WE'RE SERVING UP THE 50'S. COFFEE SHOPS BUILT IN A STYLE THAT PROVED MODERN ARCHITECTURE DOES INDEED HAVE A SENSE OF HUMOR.

JESS>> 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.

AND 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.

SHOULD THE DESCENDANTS OF SLAVES BE COMPENSATED FOR EVENTS THAT HAPPENED 200 YEARS AGO? CALIFORNIA HAS NOW PUT ITSELF AT THE CENTER OF THAT DEBATE AND THE STATE DID SO BY RELEASING A SLAVE REGISTRY LISTING THE NAMES OF MORE THAN 600 AFRICAN-AMERICANS AND THE PEOPLE WHO OWNED THEM.

VAL>> THE LIST RESULTED FROM A NEW STATE LAW. THE LAW SAYS THAT ALL INSURANCE COMPANIES DOING BUSINESS IN CALIFORNIA MUST DISCLOSE ANY POLICIES THEY ISSUED ON SLAVES. BEFORE THE CIVIL WAR, MANY SLAVES WERE INSURED LIKE LIVESTOCK, EVEN THOUGH SLAVERY WAS NOT ALLOWED IN CALIFORNIA. THE LIST IS NOT ONLY FUELING THE DEBATE OVER SLAVE REPARATIONS, IT MAY HELP SOME PEOPLE FILL IN THE BLANKS ABOUT THEIR ANCESTRY. GAY YEE HAS THIS REPORT.

NEVADA LANGFORD>> MY GRANDMOTHER'S NAME WAS ISABEL PARKER. MY GRANDMOTHER WAS A SLAVE. SHE WAS BORN A SLAVE. SHE WAS BORN TO A SLAVE BY HER SLAVE OWNER. HE WAS A MINISTER AND HIS NAME WAS PARKER.

GAY YEE>> NEVADA LANGFORD GREW UP WITH HER GRANDMOTHER'S STORIES ABOUT BEING A SLAVE IN TENNESSEE. LANGFORD IS 85. HER GRANDMOTHER WAS 103 WHEN SHE DIED IN 1941.

NEVADA LANGFORD>> I CAN REMEMBER HER SAYING THAT SHE AND HER MOTHER LIVED IN THE BIG HOUSE BECAUSE HER MOTHER WAS THE COOK AND SHE DID ERRANDS FOR HER SLAVE MASTER'S WIFE.

GAY YEE>> ARMED WITH THOSE STORIES, A HANDFUL OF NAMES AND NOT MUCH ELSE, LANGFORD HOPES TO TAKE ADVANTAGE OF A NEW STATE PROGRAM. THE CALIFORNIA DEPARTMENT OF INSURANCE IS RELEASING A LIST OF FORMER SLAVES AND SLAVE OWNERS. THE INFORMATION IS AVAILABLE ON THE INTERNET OR AT THE DEPARTMENT'S OFFICE IN DOWNTOWN L.A.

CALIFORNIA IS THE FIRST STATE TO RELEASE THIS INFORMATION AND YOU CAN ACCESS IT IN YOUR OWN HOME. SIMPLY TYPE IN "WWW.INSURANCE.CA.GOV." HIT "WHAT'S NEW", "SLAVERY ERA INSURANCE", AND YOU'RE IN.

DOUG BARKER>> WELL, WE HAVE A REGISTRY OF SLAVE NAMES. YOU'LL NOTICE THAT MOST OF THE NAMES JUST HAVE THE FIRST NAME OF THE SLAVE.

GAY YEE>> THE INFORMATION DATES BACK MORE THAN A CENTURY AGO. THE LISTS ARE BASED ON RECORDS OF INSURANCE COMPANIES THAT SOLD POLICIES TO SLAVE OWNERS INSURING THE LIVES OF THEIR SLAVES THE SAME WAY THEY INSURED OTHER TYPES OF PROPERTY. CALIFORNIA NEVER ALLOWED SLAVERY, BUT BECAUSE SOME COMPANIES THAT DO BUSINESS HERE NOW HAVE HISTORICAL LINKS WITH THE SLAVE INSURERS, CALIFORNIA ORDERED THE RELEASE OF THE SLAVE RECORDS.

DOUG BARKER>> WE HAVE A JOHN PARKER IN FAYETTE, KENTUCKY, SO THAT WOULDN'T MATCH EITHER.

GAY YEE>> NEVADA LANGFORD COULDN'T FIND HER GRANDMOTHER ON THE LIST. IF SHE HAD, SHE SAYS SHE WOULD HAVE SOUGHT REPARATIONS.

NEVADA LANGFORD>> I FEEL THAT SHE WAS ROBBED OF HER CHILDHOOD, FREEDOM, OWNED, AND I WOULD TAKE THAT STEP.

GAY YEE>> LANGFORD SAYS OTHERS SUCH AS HOLOCAUST SURVIVORS AND JAPANESE-AMERICANS HAVE BEEN COMPENSATED FOR THE WAY THEY WERE TREATED DURING WORLD WAR II, SO WHY NOT SLAVES? CAL STATE NORTHRIDGE BLACK STUDIES PROFESSOR, DAVID HORNE, SAYS THERE IS A BASIS FOR LAWSUITS FILED RECENTLY AGAINST INSURANCE COMPANIES AND OTHER BUSINESSES THAT PROFITED FROM SLAVERY AND CONTINUE TO BENEFIT TODAY.

DR. DAVID HORNE>> YOU ARE ENJOYING BENEFITS THAT CAME FROM THE UNPAID LABOR OF AFRICAN-AMERICANS EARLY ON. IF YOUR BENEFITS STOPPED AND SLAVERY STOPPED, WE WOULD NOT BE HAVING THIS CONVERSATION.

GAY YEE>> L.A.'S FORMER HUMAN RELATIONS DIRECTOR, JOE HICKS, CRITICIZES THE RELEASE OF SLAVERY DOCUMENTS. HE SAYS THE STATE IS CREATING DIVISIVENESS OVER ACTIONS THAT WERE LEGAL AT THE TIME.

JOE HICKS>> WE KNEW THAT SOMEONE WAS IN FACT INSURING THAT PROPERTY. PEOPLE WERE HUMAN BEINGS. IN SOME PARTS OF THE NATION, IT WAS LEGAL TO DO THAT. IMMORAL, WRONG AS HELL, BUT NONETHELESS IT WAS LEGAL IN MANY PARTS OF AMERICA TO DO THAT.

GAY YEE>> NEVADA LANGFORD SAYS HER GRANDMOTHER WAS NEVER BITTER ABOUT BEING A SLAVE. SHE WAS TREATED KINDLY BY HER MASTER, WHO WAS ALSO HER FATHER.

NEVADA LANGFORD>> HER FATHER WAS KIND TO HER. THEY WERE NEVER BEATEN AS SOME OF THEM WERE. SHE TOLD SOME SAD STORIES OF THINGS THAT SHE SAW, BUT IT DIDN'T COME, AS WE SHALL SAY, NYE UNTO HER.

GAY YEE>> LANGFORD SAYS THERE IS JUST ONE REASON THAT SHE MIGHT SEEK REPARATIONS ONE DAY.

NEVADA LANGFORD>> SHE WAS A VERY BEAUTIFUL PERSON AND WE DEARLY LOVED HER. OF COURSE, UNEDUCATED, BUT BEAUTIFUL, AND I FEEL IT WOULD BE JUSTICE.

JESS>> WITH US NOW IS GAY YEE. A VERY ARTICULATE SPOKESMAN FOR REPARATIONS, BUT CRITICS ARE GOING TO SAY YOU CAN'T EQUATE THAT TO THE HOLOCAUST SURVIVORS OR THE JAPANESE-AMERICAN SURVIVORS WHO WERE SENT TO THE CAMPS. WE'RE TALKING NOW NOT ABOUT SURVIVORS, BUT DESCENDANTS OF SURVIVORS.

GAY YEE>> THAT'S RIGHT, AND THAT'S WHAT MAKES IT SO VERY, VERY DIFFICULT. IT'S BEEN 150 YEARS. WE'RE TALKING ABOUT A LONG EXPANSE OF TIME AND THAT'S WHAT THE INSURANCE COMPANIES ARE SAYING. HOW CAN THEY BE HELD ACCOUNTABLE FOR SOMETHING SO LONG AGO AND ALSO THE FACT THAT, YOU KNOW, IT WAS A LEGAL THING SANCTIONED BY OUR GOVERNMENT. HOW CAN THEY BE HELD ACCOUNTABLE FOR SOMETHING LIKE THAT?

VAL>> SO THE INSURANCE COMPANIES, NO DOUBT, ARE RESISTING GOING TO COURT, BUT SOME OF THEM STILL ARE CONSIDERING, WHAT, AN APOLOGY? OR THERE ARE DIFFERENT REACTIONS FROM VARIOUS INSURANCE COMPANIES, NO?

GAY YEE>> YOU KNOW, FOR THE MOST PART, THERE IS A LOT OF SILENCE. THEY ARE ISSUING SOME SORT OF APOLOGY, BUT NOT GOING MUCH FURTHER BEYOND THAT. IT'S A DIFFICULT HOT-BUTTON ISSUE RIGHT NOW ON BOTH SIDES.

VAL>> AND A LOT OF THE TIME, THE INSURANCE COMPANIES THAT ISSUED THE POLICIES THEN DON'T REALLY EXIST NOW. THEY'VE CHANGED AND BEEN MERGED AND BOUGHT AND SO FORTH.

GAY YEE>> THAT'S EXACTLY RIGHT. THE COMPANIES HAVE MORPHED INTO COMPANIES THAT WE HAVE TODAY AND SO THESE WERE THEIR PREDECESSORS THAT ISSUED THESE POLICIES THAT WERE IN OTHER STATES THAT ARE NOW IN OUR STATE. BUT, AGAIN, THIS STATE NEVER HAD SLAVERY.

VAL>> ANOTHER INTERESTING THING WAS WHAT THE INSURANCE COMPANIES WOULD AND WOULD NOT PAY OFF ON --

GAY YEE>> -- SUICIDES WERE NOT PAID FOR.

VAL>> THEY WOULDN'T PAY OFF FOR SUICIDE.

GAY YEE>> LYNCHINGS, AND BEING WORKED --

VAL>> -- WORKED TO DEATH.

GAY YEE>> TO DEATH.

VAL>> THEY WOULD NOT PAY OFF ON. INTERESTING INSIGHT INTO OUR HISTORY. THANK YOU, GAY.

TOMORROW ON LIFE AND TIMES, CHARGES OF BIAS, SELLING OUT TO ADVERTISERS, AND AN ADDICTION TO HIGH-SPEED CHASES. WHAT IS HAPPENING TO JOURNALISM? TOMORROW NIGHT IN THE SECOND INSTALLMENT OF LIFE AND TIMES "THE ETHICS PROJECT", WE EXAMINE THE ETHICS OF JOURNALISM. CAN YOU TRUST THE PEOPLE WHO BRING YOU THE NEWS?

>> IT'S NOT AS IMPORTANT THAT THE NEWS LACKS RACIAL DIVERSITY OR ETHNIC DIVERSITY. WHAT'S REALLY IMPORTANT IS THE NEWS IS UNBELIEVABLY BIASED IDEOLOGICALLY WHERE YOU HAVE LIBERAL PERSPECTIVES GET VOICED AND CONSERVATIVE PERSPECTIVES DON'T.

JESS>> A $95 MILLION DOLLAR SOFTWARE CONTRACT IS TURNING INTO A MAJOR NIGHTMARE FOR GOVERNOR GRAY DAVIS. ORACLE CORPORATION, THE SOFTWARE GIANT, SIGNED A LUCRATIVE CONTRACT WITH THE STATE OF CALIFORNIA BY PROMISING TO SAVE TAXPAYERS MILLIONS, BUT NOW A STATE AUDITOR SAYS THAT SOFTWARE DEAL MAY ACTUALLY COST THE STATE AN EVEN BIGGER FORTUNE.

VAL>> THE CONTRACT HAD NO COMPETITORS. IT WAS FAST-TRACKED WITH HELP FROM KEY POLITICIANS IN SACRAMENTO, AND ORACLE CORPORATION ALSO MADE A $25,000 CONTRIBUTION TO GOVERNOR DAVIS, WHO'S NOW TRYING TO DODGE THE POLITICAL FALLOUT.

JESS>> IS THIS A GENUINE SCANDAL? JOINING US NOW TO EXPLAIN MORE IS POLITICAL ANALYST, PROFESSOR SHERRY BEBITCH JEFFE FROM USC, AND ORANGE COUNTY LAW PROFESSOR, JAMES HIRSEN. AN HONEST-TO-GOODNESS SCANDAL OR IS THIS JUST CAMPAIGN RHETORIC?

JAMES HIRSEN>> I THINK IT IS A SCANDAL. I THINK IT HAS SOME JUICY ELEMENTS THAT MAY KEEP IT ALIVE. YOU KNOW, WE'VE GOT ALLEGATIONS OF SHREDDING, WE HAVE A PAYMENT THAT'S MADE IN A BAR, WE HAVE THESE WARNINGS THAT WERE IGNORED, WE HAVE A CONFLICT WITH A CONSULTANT AND, OF COURSE, WE HAVE THIS ATTEMPT BY THE CHIEF EXECUTIVE OF THE STATE TO ASSERT PLAUSIBLE DENIABILITY. IT HAS ALL THE SORT OF SOAP OPERA ELEMENTS THAT WE FIND IN A SCANDAL AND, OF COURSE, WE'RE IN A CAMPAIGN SEASON WHICH ADDS TO THAT --

SHERRY BEBITCH JEFFE>> -- WHICH, I THINK, IS CRITICAL. YEAH, I THINK THAT IS CRITICAL. I MEAN, FIRST OF ALL, JIM'S RIGHT. ANYTHING THAT COMES EQUIPPED WITH A SHREDDER THESE DAYS IS IMMEDIATELY A SCANDAL. (LAUGHTER)

JESS>> AND A BARROOM PAYMENT IS GOOD, TOO. (LAUGHTER)

SHERRY BEBITCH JEFFE>> WELL, THAT'S BEEN GOING ON FOR A LONG TIME. YOU AND I BOTH KNOW THAT, JESS. (LAUGHTER) NO BIG DEAL ON THAT ONE. (LAUGHTER)

VAL>> LET'S TAKE TWO STEPS BACK. FOR THOSE PEOPLE WHO HAVEN'T BEEN READING THE PAPER, GIVE US THE CLIFFS' NOTES' VERSION OF WHAT THE ALLEGATIONS ARE HERE.

SHERRY BEBITCH JEFFE>> GO AHEAD, LAWYER.

JAMES HIRSEN>> WELL, ESSENTIALLY, AND YOU SUMMARIZED IT VERY WELL, I MEAN, WE HAVE A CONTRACT THAT WAS ENTERED INTO RATHER HASTILY AND WE HAVE --

VAL>> -- A BIG CONTRACT FOR SOFTWARE.

JAMES HIRSEN>> RIGHT, WITH NO COMPETITIVE BIDDING --

SHERRY BEBITCH JEFFE>> -- $95 MILLION DOLLARS WORTH.

JAMES HIRSEN>> YEAH, $95 MILLION DOLLARS.

VAL>> BUT I UNDERSTAND THAT, WHERE COMPUTER SOFTWARE IS CONCERNED, COMPETITIVE BIDDING WAS NOT REQUIRED.

SHERRY BEBITCH JEFFE>> FOR THIS CONTRACT, THERE WAS NO COMPETITIVE BIDDING. THAT'S EXACTLY RIGHT.

VAL>> BUT THAT IN ITSELF WASN'T ILLEGAL.

SHERRY BEBITCH JEFFE>> NO.

JAMES HIRSEN>> RIGHT, BUT --

VAL>> -- SO WHAT'S THE SUSPICIOUS PART?

JAMES HIRSEN>> WELL, THE SUSPICIOUS PART, OF COURSE, IS THAT FIVE DAYS AFTER THE CONTRACT WAS FINALIZED -- AND THERE WAS A PUSH TO MAKE THIS GO THROUGH VERY QUICKLY -- FIVE DAYS AFTER IT WAS FINALIZED, $25,000 IN CAMPAIGN CONTRIBUTIONS WERE ACCEPTED BY AN APPOINTEE OF GRAY DAVIS WHO HAS NOW SINCE RESIGNED.

SO WE HAVE, YOU KNOW, WHAT IS ALSO PART OF A SCANDAL SOME SCAPEGOATS BASICALLY NOW TAKING THE HEAT FOR THE SCANDAL AND THE DAVIS CAMP IS ESSENTIALLY USING THE IDEA THAT THEY HAD NO IDEA THIS WAS GOING ON. OF COURSE, THIS IS FROM A MAN WHO IS A PRODIGIOUS MICRO-MANAGING FUNDRAISER, SO THE SACRAMENTO BEE SAID PARDON ME IF I'M SKEPTICAL.

VAL>> SO DAVIS SAYING HE DIDN'T KNOW ABOUT IS -- AHEM.

JAMES HIRSEN>> IT'S DIFFICULT TO SELL.

SHERRY BEBITCH JEFFE>> WELL, IT COULD HAPPEN. I HAVE TO TELL YOU, IF YOU'RE A SHARP POLITICIAN AND YOU HAPPEN TO BE GOVERNOR OF THIS STATE, YOU ARE GOING TO TAKE STEPS TO INSULATE YOURSELF FROM THE POLITICAL END OF YOUR OPERATION. YOU CAN DO IT WITH SIGNALS. YOU DON'T NEED WORDS. I THINK WHAT WE'RE SEEING HERE AS MUCH AS ANYTHING ELSE, AND I'VE BEEN THINKING A LOT ABOUT THIS IN THE WAKE OF ENRON, IS SOMETHING THAT WAS PARTIALLY BORN AT LEAST OUT OF THE CULTURE OF THE NEW ECONOMY.

THEY PLAY IT FAST AND LOOSE. THEY DON'T WANT TO WAIT. YOU KNOW, INSTANT GRATIFICATION. THEY'RE MOVING INTO THE POLITICAL ARENA. YOU'VE GOT A GUY WHO'S ABOUT THE THIRD LEVEL DOWN WHO WANTS TO INGRATIATE HIMSELF WITH THE GOVERNOR AND THE GOVERNOR'S PEOPLE, SO HE DOES THE OLD POLITICAL THING AND HE GOES TO A BAR AND HE GETS HIMSELF A $25,000 CHECK. I WANT TO TELL YOU --

VAL>> -- THAT'S WHERE THE CONTRIBUTION WAS HANDED OUT?

SHERRY BEBITCH JEFFE>> YEAH.

JAMES HIRSEN>> YEAH, IT WAS IN A BAR IN SACRAMENTO. (LAUGHTER)

SHERRY BEBITCH JEFFE>> I WANT TO TELL YOU, LISTEN, $20,000 HERE, $25,000 HERE, PRETTY SOON, IN CALIFORNIA POLITICS, YOU'RE TALKING REAL MONEY. (LAUGHTER)

JAMES HIRSEN>> (LAUGHTER) THAT'S RIGHT, THAT'S RIGHT.

JESS>> BUT IT'S ALL GOING TO BE RESOLVED BECAUSE THE ATTORNEY GENERAL IS GOING TO INVESTIGATE. IS THIS THE SAME ATTORNEY GENERAL WHO ACCEPTED $50,000 FROM ORACLE?

JAMES HIRSEN>> SEE, THIS IS ENOUGH TO MAKE JANET RENO BLUSH. HERE'S A GUY THAT IS THE HIGHEST LAW ENFORCEMENT OFFICIAL --

VAL>> -- AND YOU'RE TALKING ABOUT ...

JAMES HIRSEN>> BILL LOCKYER WHO, AS JESS HAS POINTED OUT, ACCEPTED $50,000. HE'S AN ELECTED OFFICIAL. HE'S PART OF THE SAME PARTY THAT THE GOVERNOR IS AND, AT THIS POINT, HE REFUSES TO RECUSE HIMSELF. THERE IS POTENTIAL --

VAL>> -- I'M SORRY, HE ACCEPTED $50,000 FROM ORACLE?

JAMES HIRSEN>> FROM ORACLE.

SHERRY BEBITCH JEFFE>> FROM ORACLE.

JAMES HIRSEN>> THE HIGHEST AMOUNT OF MONEY PAID TO ANY POLITICIAN FROM ORACLE.

VAL>> AND NOW HE'S IN CHARGE OF THE INVESTIGATION OF ORACLE?

SHERRY BEBITCH JEFFE>> ONE OF THEM. THE LEGISLATURE IS ALSO INVESTIGATING.

JAMES HIRSEN>> THE CRIMINAL PORTION, AND THERE IS POTENTIAL CRIMINALITY. SO SOME MEMBERS OF THE GOP HAVE SAID THAT HE SHOULD RECUSE HIMSELF. HE SO FAR HAS NOT. HE'S BEEN INTRANSIGENT, AND THERE'S TALK OF MAYBE HAVING A FEDERAL INVESTIGATION BECAUSE OF THE LACK OF IMPARTIALITY THAT IS APPARENT FROM THIS KIND OF CONFLICT, AND IT IS A CONFLICT.

JESS>> MEANWHILE, IT'S CONCEDED PRETTY MUCH THAT THE SYSTEM WASN'T NECESSARY, THAT IT'S BARELY BEING USED --

SHERRY BEBITCH JEFFE>> -- THERE DIDN'T SEEM TO BE A NEED FOR IT --

JESS>> -- AND WILL WASTE A LOT OF MONEY.

SHERRY BEBITCH JEFFE>> YEAH.

VAL>> RIGHT. I THINK THE $95 MILLION WAS SUPPOSED TO BUY SOMETHING LIKE 270,000 COPIES OF THIS SOFTWARE, BUT NOBODY BOTHERED TO NOTICE THAT NO ONE WAS INTERESTED IN SIGNING UP FOR IT OR USING IT. THERE AREN'T EVEN THAT MANY STATE EMPLOYEES.

SHERRY BEBITCH JEFFE>> AT THIS STAGE OF THE GAME --

JAMES HIRSEN>> -- THAT BRINGS UP LOGICON'S ROLE. LOGICON WAS A CONSULTANT THAT CLAIMED THAT DOING THIS DEAL WOULD SAVE THE TAXPAYERS $111 MILLION DOLLARS, BUT APPARENTLY THEY HAD A SIDE ARRANGEMENT. THEY HAD A SIDE ARRANGEMENT WITH ORACLE WHERE THEY WERE GOING TO BE PAID $28 MILLION DOLLARS. THE STATE AUDIT REVEALS THAT THE TAXPAYERS, INSTEAD OF SAVING $111 MILLION DOLLARS, ARE GOING TO LOSE $41 MILLION DOLLARS, ACCORDING TO THAT STATE AUDIT.

VAL>> AND LOGICON, THE CONSULTANT WHO RECOMMENDED THE ORACLE CONTRACT, ALSO STOOD TO GAIN BY ORACLE GETTING THE CONTRACT.

JAMES HIRSEN>> $28 MILLION DOLLARS WORTH OF GAIN.

SHERRY BEBITCH JEFFE>> WHERE HAVE WE SEEN THIS BEFORE, GUYS? (LAUGHTER) WHAT IS THE CONFLICT OF INTEREST BETWEEN CONSULTING AND ACCOUNTING?

VAL>> SOUNDS FAMILIAR.

JAMES HIRSEN>> ARTHUR ANDERSEN.

SHERRY BEBITCH JEFFE>> IT'S SOUNDING FAMILIAR. I THINK WHEN ALL IS SAID AND DONE, IF THERE IS NOT ANYTHING CRIMINAL, AND I'M NOT SURE THERE IS ANYTHING CRIMINAL. AS I MENTIONED EARLIER, IT'S NOT THE CRIMINALITY. IT IS CRIMINALLY STUPID, AND THAT COULD GET YOU IN AS MUCH TROUBLE AS EVADING THE LAW.

VAL>> WELL, HERE'S THE OTHER ASPECT. WASN'T THERE A PROPOSED LAW THAT GOVERNOR DAVIS DIDN'T SIGN THAT WOULD HAVE PREVENTED THIS?

SHERRY BEBITCH JEFFE>> BOTH HE AND GOVERNOR WILSON BEFORE HIM VETOED A BILL THAT WOULD HAVE PUT IN PLACE THE SAME KIND OF CONFLICT OF INTEREST STANDARDS FOR TECHNOLOGY CONTRACTS, AND IT'S BACK AGAIN. I THINK, THIS TIME, LIKE CAMPAIGN FINANCING IN THE WAKE OF ENRON, LIKE ACCOUNTING FORMS IN THE WAKE OF ENRON, IT WILL BE PASSED.

JESS>> WILL THAT WIPE EVERYTHING OUT THEN AND, BY NOVEMBER, THIS SCANDAL WILL BE FORGOTTEN?

SHERRY BEBITCH JEFFE>> WELL, GOOD NEWS FOR GRAY DAVIS IS, A, IT'S EARLY SUMMER AND HE'S GOT SOME TIME TO REPOSITION AND RECOUP AND, B, THE ENRON SCANDAL HAS RAISED ITS HEAD AGAIN AND IT'S SORT OF VINDICATING SOME OF THE THINGS THAT HE SAID, --

JESS>> -- YEAH, ENRON WORKS IN HIS FAVOR NOW.

SHERRY BEBITCH JEFFE>> -- BUT COME THE FALL, WHEN PEOPLE BEGIN TO LOOK AT WHAT'S GOING ON, I CAN GUARANTEE YOU IT WILL BE BACK. I CAN GUARANTEE YOU RIGHT NOW THAT SIMON IS CLIPPING AWAY AT THOSE HEADLINES (LAUGHTER), JUST AS DAVIS DID CLIPPING AWAY AT THE FACT THAT SIMON WOULD NOT RELEASE HIS TAXES, AND WE'RE GOING TO SEE NEGATIVE ADS.

JAMES HIRSEN>> YEAH, THEY'RE GOING TO USE THIS. THEY'RE GOING TO KEEP THIS ALIVE IN THE ADS, ABSOLUTELY.

SHERRY BEBITCH JEFFE>> WAIT UNTIL AFTER LABOR DAY.

VAL>> SHERRY BEBITCH JEFFE FROM USC AND JAMES HIRSEN, ORANGE COUNTY ATTORNEY, THANK YOU. GREAT JOB, GUYS.

JAMES HIRSEN>> THANK YOU.

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JESS>> PATT MORRISON IS ALWAYS ON THE GO, BUT LATELY SHE'S FOUND THE GOING ISN'T ALWAYS SO EASY. HERE'S TONIGHT'S INFINITELY MORRISON.

PATT MORRISON>> IN NEW ORLEANS THIS WEEK, A FELLOW GOT THROUGH AIRPORT SECURITY AND ONTO HIS PLANE CARRYING TWO LOADED HANDGUNS. IN LOS ANGELES THIS WEEK, THE TIMES REPORTS THAT PRIVATE GUARDS HIRED BY MAJOR AIRLINES TO SUPERVISE FOREIGN PASSENGERS ON STOPOVERS LASTING A FEW HOURS MAY IN FACT HAVE BEEN ALLOWING THOSE PASSENGERS, MANY OF THEM FROM THE MIDEAST, TO VANISH INTO THE UNITED STATES. BUT, BOY, I CAN CERTAINLY SLEEP EASIER AT NIGHT KNOWING THAT THE CRACK SECURITY FORCES AT ONE OF OUR NATION'S AIRPORTS WEREN'T ABOUT TO LET MY PLASTIC BUTTONS COATED WITH SILVER PAINT GET ONTO AN AIRPLANE WITHOUT THREE SEPARATE SECURITY SCREENINGS.

YES, SECURITY PROCEDURES NEED MORE MONEY. THEY NEED MORE AND BETTER TECHNOLOGY, BUT HAVING PASSED THIS PAST WEEKEND THROUGH THREE DIFFERENT AIRPORTS A TOTAL OF SIX TIMES, I CAN SAY THIS: MOSTLY THEY NEED CONSISTENCY. AT EACH AIRPORT, SOME DIFFERENT ITEM GOT A DIFFERENT SECURITY RESPONSE. SHOES THAT RAISED NO EYEBROWS OR ALARMS AT THE BURBANK AIRPORT HAD TO BE REMOVED IN OAKLAND THE VERY NEXT DAY AND SENT THROUGH A SECURITY SCANNER WHILE I STOOD BAREFOOT ON A DIRTY CARPET. THE SILVER PAINTED PLASTIC BUTTONS THAT DIDN'T BOTHER ANYONE IN PHOENIX FREAKED OUT A BURBANK WORKER, AND IN TUCSON, CASUAL SHOES I'VE WORN THROUGH MANY AIRPORTS SINCE SEPTEMBER 11 WERE TAKEN AWAY FOR INSPECTION WHILE THE SOLES OF MY BARE FEET WERE BEING -- AND HERE'S A NEW VERB IN OUR VOCABULARY -- WANDED. IT ALMOST TICKLED.

THAT MAN WITH HANDGUNS BREEZED ONTO HIS PLANE AND I WAS TAKEN ASIDE AND WANDED, THEN PATTED DOWN FOR A SMALL METAL HOOK-AND-EYE IN MY BRA, A DEVICE THAT A FEW FRUSTRATED YOUNG MEN OF MY PAST ACQUAINTANCE WOULD TESTIFY THEY COULDN'T FIND, LET ALONE UNHOOK.

WHAT AIRPORTS NEED, WHAT AIRLINES NEED, TO BRING PASSENGERS BACK IS CONSISTENCY. PASSENGERS ARE TRYING TO COOPERATE, DRESSING TO MINIMIZE DELAYS, BUT THE INCONSISTENCIES FROM AIRPORT TO AIRPORT AND FROM SCREENER TO SCREENER MAKE THIS JUST ABOUT IMPOSSIBLE. WHEN I POINTED THIS OUT, ONE WORKER SAID, "AREN'T YOU CONCERNED ABOUT YOUR PERSONAL SAFETY?" "MY DEAR WOMAN," SAYS I, "IF I WERE ALL THAT CONCERNED ABOUT MY PERSONAL SAFETY, I WOULD NOT BE LIVING IN SOUTHERN CALIFORNIA."

VAL>> THEY ARE A SOUTHERN CALIFORNIA ICON, THOSE POST-WAR RESTAURANTS AND COFFEE SHOPS WITH NAMES LIKE "BOB'S BIG BOY", "PANN'S" AND "NORM'S". THE FEW REMAINING EXAMPLES OF THIS STYLE ARE GAINING NEW-FOUND APPRECIATION.

JESS>> ARCHITECTURE BUFFS SAY THEY'VE GONE FROM KITSCH TO CLASSIC. CONSERVANCY GROUPS ARE NOW PUTTING THESE LOCAL LANDMARKS ON A LIST OF PLACES TO BE PROTECTED. TONIGHT SAUL GONZALEZ GIVES US A REFILL OF THE 50'S.

[FILM CLIP]

SAUL GONZALEZ>> SOUTHERN CALIFORNIA IN THE 1950'S. FROM NEW-FANGLED FREEWAYS TO NEWLY-BUILT SUBDIVISIONS, SIGNS OF PROGRESS AND PROSPERITY ARE EVERYWHERE AND PEOPLE ARE ENJOYING THE POST-WAR GOOD LIFE WITH GUSTO. AND IT'S IN THIS PROMISED LAND OF FUN AND FROLIC THAT A NEW STYLE OF ARCHITECTURE IS BORN, AT THE NEIGHBORHOOD COFFEE SHOP. NICKNAMED "GOOGIES" AFTER ONE RESTAURANT CHAIN, IT'S A DESIGN MOVEMENT THAT CELEBRATES FLAMBOYANCE AND EMBRACES EXUBERANCE, TURNING HUMBLE HAMBURGER JOINTS INTO ARCHITECTURAL SHOWPIECES THAT STILL CAPTURE THE EYE AND IMAGINATION HALF A CENTURY LATER.

CHRIS NICHOLS>> IT'S FRANK LLOYD WRIGHT MEETS SCIENCE FICTION MEETS WORLD'S FAIR. THEY'RE SO UNLIKE ANYTHING ELSE AND THEY JUST DEMAND THAT YOU STOP AND PAY ATTENTION.

JOHN ENGLISH>> THEY ARE MORE L.A. IN SOME WAYS THAN ALMOST ANY OTHER BUILDING. THEY ARE QUINTESSENTIALLY LOS ANGELES. THE GOOGIE ARCHITECTS KNEW WHAT NEEDED TO HAPPEN IN A BUILDING, WHAT WOULD WORK FOR THE AMERICAN PUBLIC, FOR THE FAMILIES, FOR WORKING CLASS FAMILIES, MIDDLE-CLASS FAMILIES. THEY KNEW THAT THEY NEEDED TO MAKE THEM COMFORTABLE, MAKE THEM WARM, MAKE THEM INVITING.

SAUL GONZALEZ>> INGLEWOOD'S PANN'S RESTAURANT IS A GEM OF GOOGIE-STYLE ARCHITECTURE. ITS LUSH LANDSCAPING, BOLD ABSTRACT SHAPES AND PAVILION-LIKE INTERIOR ARE ALL HALLMARKS OF COFFEE SHOP MODERN.

CHRIS NICHOLS>> HERE, EVERYTHING'S IN MOTION, EVERYTHING'S MOVING AROUND, EVERYTHING'S ALIVE AND ORGANIC. THE ROCK WALLS AND THE TERRAZZO FLOORS, AND IT FEELS LIKE IT'S JUST NATURALLY GROWN OUT OF THIS ISLAND LIKE A TURTLE MUSHROOM OR SOMETHING, YOU KNOW? IT KIND OF APPEARS HERE AND YET IT'S NOT JUST ORGANIC, BUT IT'S DYNAMIC AND MODERN.

SAUL GONZALEZ>> PANN'S ALSO SHOWCASES HOW COFFEE SHOP ARCHITECTURE OF THE 1950'S MARRIED FORM AND FUNCTION, BEAUTY AND UTILITY.

JOHN ENGLISH>> THEY WERE THOROUGHLY THOUGHT OUT. NOTHING WAS LEFT TO CHANCE IN THESE BUILDINGS. EVERY BIT OF SPACE WAS REALLY MEASURED OUT AND THOUGHT HOW CAN WE GET A MAXIMUM AMOUNT OF SEATING? TECHNOLOGICALLY AND AESTHETICALLY, THEY ARE DESIGNED TO BE EXTREMELY EFFICIENT TO WORK 24 HOURS A DAY.

SAUL GONZALEZ>> OTHER GOOGIES MASTERPIECES INCLUDE NORM'S RESTAURANT ON LA CIENEGA. ITS ALLURES ARE A STRIKING CANTILEVERED ROOF AND LAVISH USE OF GLASS THAT INVITES YOU TO LOOK AT THE PARADE OF PEOPLE WITHIN. IN TOLUCA LAKE, BOB'S BIG BOY GETS ATTENTION WITH ITS TOWERING SIGNS, ITS SOFT CURVES AND NEON GLOW. COFFEE SHOPS LIKE THESE WERE BUILT, OF COURSE, NOT TO BE ADMIRED LIKE A WORK OF ART. THEY WERE MADE TO CAPTURE THE ATTENTION AND CASH OF POTENTIAL CUSTOMERS SPEEDING BY.

JOHN ENGLISH>> THESE BUILDINGS SITTING OUT ON THE COMMERCIAL STRIP NEEDED TO STAND OUT. THE BUILDING AS SIGN, THE BUILDING AS BILLBOARD. IT WASN'T ENOUGH JUST TO HAVE A NEON SIGN. THE BUILDING ITSELF HAD TO CATCH THE MOTORISTS TRAVELING 35 TO 40 MILES PER HOUR, TRAVELING DOWN THE BOULEVARDS OF GREATER LOS ANGELES.

SAUL GONZALEZ>> LOUIE ARMET AND ELDON DAVIS KEENLY UNDERSTOOD THAT COFFEE SHOP DESIGN WAS AS MUCH ABOUT ADVERTISING AS AESTHETICS. THEY WERE THE ARCHITECTS WHO CREATED SOME OF L.A.'S MOST STRIKING AND SUCCESSFUL GOOGIE-STYLE RESTAURANTS. ONE OF THEIR MASTERPIECES WAS PANN'S.

ELDON DAVIS>> FIRST OF ALL, IT HAD TO BE COMMERCIALLY SUCCESSFUL. I MEAN, YOU HAVE A CLIENT. HE NEEDS SOMETHING TO SELL AND THAT WOULD BE NOT HIGH ARCHITECTURE. IN FACT, A LOT OF THE OTHER ARCHITECTS CALLED THE THINGS WE DID "GOOGIE" ARCHITECTURE.

JOHN ENGLISH>> REMEMBER, THESE ARE CRITICISMS COMING FROM THE HIGHER ARCHITECTURE ESTABLISHMENT WHICH WAS VERY ONE-SIDED AND WAS LOOKING DOWN AT ANYTHING THAT DIDN'T FIT INTO THEIR PICTURE OF HIGH ART, OF PURE ARTISTIC EXPRESSION. ANYTHING COMMERCIAL, FOR THE MOST PART, WAS SUSPECT.

SAUL GONZALEZ>> THE GOOGIE STYLE MIGHT HAVE SURVIVED THE SLINGS AND ARROWS OF ARCHITECTURAL CRITICS, BUT NOT THE WRECKING BALL. MANY OF SOUTHERN CALIFORNIA'S MOST MEMORABLE COFFEE SHOPS ARE GONE FOR GOOD. COFFEE SHOP AFICIONADOS SAY IT'S IMPORTANT TO PRESERVE THOSE RESTAURANTS THAT STILL STAND AND NOT JUST OUT OF RESPECT FOR ARCHITECTURAL HISTORY. TO THEIR FANS, THESE RESTAURANTS ARE PROFOUNDLY DEMOCRATIC PLACES WHERE PEOPLE FROM DIFFERENT BACKGROUNDS AND COMMUNITIES CAN COME TOGETHER FOR FOOD AND FELLOWSHIP.

CHRIS NICHOLS>> PEOPLE HAVE BEEN COMING INTO THIS PLACE FOR FIFTY YEARS AND THEY KNOW THEIR SONS AND THEIR GRANDCHILDREN AND THEY KNOW THE FAMILY HISTORIES AND THEY'VE BUILT RELATIONSHIPS HERE THAT HAVE LASTED FOR DECADES. I UNDERSTAND THAT CHURCHES AND CIVIC CENTERS SERVE THEIR PURPOSE AND THEY DRAW PEOPLE TO THEM. YOU KNOW, THAT'S BEEN THAT WAY FOREVER. BUT A COFFEE SHOP OR A BOWLING ALLEY IS AN AUTHENTIC CROSSROADS. EVERYBODY CAN COME HERE. EVERYBODY CAN GET TOGETHER HERE AND TRY TO FIND COMMON GROUND.

SAUL GONZALEZ>> THE GOOGIES PHENOMENON SHOWS THAT, AT ITS BEST, ARCHITECTURE CAN SATISFY A CRAVING FOR COMMUNITY AS WELL AS STYLE.

JESS>> THE BURBANK BOB'S BIG BOY? FIRST MEAL I HAD IN SOUTHERN CALIFORNIA. SOME FORTY YEARS AGO, ARRIVING HERE WAS THAT COFFEE SHOP.

VAL>> IS THERE A PLAQUE "JESS MARLOW ATE HERE"?

JESS>> I DON'T THINK SO. I POSED FOR BIG BOY (LAUGHTER), BUT THAT'S ANOTHER STORY.

VAL>> (LAUGHTER) THAT IS OUR PROGRAM TONIGHT. THANK YOU SO MUCH FOR WATCHING.

JESS>> GOOD NIGHT.

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