[Daryn Kagan, Host, "live Today":] This story just developing. And just breaking. What you heard here, by the way, first on CNN. Kyra Phillips takes over with LIVE FROM. I'm Daryn Kagan, and I will see you tomorrow.
[Announcer:] This is CNN breaking news.
[Kyra Phillips:] And our breaking news coverage continues. Indicted in Austin, sidelined at least temporarily in Washington. As CNN just told you minutes ago, House Majority Leader Tom DeLay now accused of conspiring to violate campaign finance laws in his home state of Texas. That single count indictment is the latest product of a long investigation swirling around DeLay's political action committee, Texans for Republican Majority. And it's already cost him his leadership role in Congress. We get the latest now from CNN congressional correspondent Joe Johns. He's on Capitol Hill. Joe, what do you know?
[Joe Johns, Cnn Correspondent:] Well, Kyra, this is basically an indictment about what we've been covering for some time, and that is the allegation that associates of Tom DeLay and, according to this indictment, an allegation that Tom DeLay himself, may have conspired to get corporate contributions, which is against Texas law, and funneled them through the Republican National Committee in Washington, D.C., back to Texas in sort of what's been called a Texas two-step, in order to help pay for, among other things, elections to the state house, the legislature, in Texas. Tom DeLay, of course, has been under this cloud for sometime here on Capitol Hill, because of this investigation being run by Ronnie Earle, the Democrat prosecutor in Travis County, Texas. He's come under tremendous pressure, Earle has, from Republicans who say he's simply running a political prosecution here and causing a lot of trouble for Republicans, while Republicans say they were just playing politics as usual. So this indictment now could be, of course, big trouble for Tom DeLay. He has said he will step aside from his leadership position, at least while they go through this charge. And it could take sometime, of course. Kyra, back to you.
[Phillips:] All right, Joe. Stay with us. Jeff Toobin on the line, which is also our legal analyst. Jeff, I guess a lot of people wondering could this mean jail time?
[Jeff Toobin, Cnn Legal Analyst:] It could. I'd say it's unlikely. And we're a long, long way from that. But this is a felony, under Texas law. And I've now had a chance to read the indictment. There's $190,000 at stake, in contributions that, according to the indictment, corporate contributions were laundered essentially by DeLay and his associates from a federal fund into a state fund where corporate contributions are prohibited. That's the charge in the case. And I we'll see how the case proceeds.
[Phillips:] Joe, are you still with us? Joe Johns, you still with us?
[Johns:] Yes.
[Phillips:] You've got a law degree, also, and then you've got also the political perspective there on the Hill. When you've seen situations like this happen in the past, with regard to these type of allegations, what do you think? Is this the end of his political career?
[Johns:] You know, it has a lot to do with the personalities. And we have two very powerful personalities at the center of this conflict. Myself and Steve Turnim, the Senate producer, actually went down to Texas a few months ago and spent some time with Ronnie Earle. And here you have a Democrat prosecutor who, in a lot of ways, is a true believer in trying to make politics a little bit more pure, trying to get some of the cash influence out of politics. He's indicted a lot of political figures across the spectrum. And very many of them, in fact, have been Democrats. But what he's best remembered for is going after Kay Bailey Hutchison, the senator from Texas, of course. That was an indictment that went down in flames, because they realized they were going to have a very hard time trying to get a conviction on that. So now he's indicted Tom DeLay. Of course, a very powerful figure in Washington, somebody who is a real fighter, known to be a real fighter. And certainly doesn't seem to be backing down on all of this. So it's hard to say the end result of it. But what's very clear is that Tom DeLay has never, to my knowledge, ever before, backed down from a fight. And his lawyers at least what they've all told us is they think this is the kind of fight they can win, Kyra.
[Phillips:] OK, Joe Johns, on the Hill, thank you so much. And of course, if you're just tuning in, as CNN first told you just a few moments ago, House Majority Leader Tom DeLay now accused of conspiring to violate campaign finance laws in his home state of Texas. Bill Schneider also joining us, getting of course the legal and political perspectives. Bill Schneider, what do you think? Is this going to hurt the president?
[Bill Schneider, Cnn Political Analyst:] Well, look, there are corruption scandals in Washington all the time. There are a number of them now that surround Republicans. There's a controversy over Bill Frist, the leader of the Senate. There was a member of the president's Office of Management and Budget who was recently arrested for his criminal activities associated with Jack Abramoff, who's under investigation. I think we can say that the Democrats are looking forward to raising the corruption issue, the scandal issue, in the midterm election next year. And of course Tom DeLay, the majority leader of the House of Representatives, could not be a juicier target for Democrats.
[Phillips:] Bill Schneider, thank you so much. We'll continue, of course, to follow this breaking news as we get more information. We'll be talking with our legal and political experts. Now, we're going to move along and talk about a new direction for Eddie Compass, new disarray for the NOPD. Well, a police department, as you know, racked by desertions and maybe worse in its darkest hour is in transitional leadership now as its superintendent, a man described by New Orleans' mayor as a hero, steps aside.
[Superintendent Eddie Compass, New Orleans Police:] I've served this department for over 26 years, and I've had the pleasure to be superintendent over 3 12 years. I've taken this department through some of the toughest times in its history. And every man in leadership positions must know when it's time to hand over the reins to someone else.
[Phillips:] And for now, that someone else is Assistant Superintendent Warren Riley. We'll talk about him in just a minute. Now, leading the New Orleans Police Department was an all- consuming job, even before the monster hurricanes. The ranks were already thin, compared with other big cities. Violent crime was high. And corruption, real or imagined, alleged or assumed, was always in the air. Under Compass, some believe the department went further astray, while others wonder whether anybody could have handled what Katrina had in store. Joining me with his perspective is John Casbon, chairman of the New Orleans Police Foundation, a private nonprofit group that supports the work of the NOPD. John, good to have you with us. I sure appreciate your time today.
[John Casbon, Chairman, New Orleans Police Foundation:] Hi, Kyra, nice talking to you again.
[Phillips:] Well, let's talk about Eddie Compass for a moment. He's out. What do you think is going on? You've known him for a number of years, John.
[Casbon:] Number of years, and I agree, he is a hero. He was a decorated officer. He served New Orleans beautifully. No one has worn a badge any prouder than Compass. I've my heart goes out to he and family. And he's going to do fine. And my view, my personal view, is he will land a police chief job in another location. And we're going to move on fine. Warren Riley is an excellent police officer. The New Orleans Police Department is just going to move forward like they've done. We've got nothing but heroes here. And it's up to us and, really, the country, to support these officers right now. Kyra, we've got 85 percent of our officers are homeless. Eighty- five percent of the officers' families are scattered all over the United States. And so it's time for everyone to understand the crisis that's down here and what the pressures that we have to bear.
[Phillips:] John, you have my word we'll talk about those other officers and what they're struggling with right now. We're going to talk about the foundation and what you're doing. But let's get back to Eddie Compass just for a minute. You know, obviously, this has been a very difficult time for him. A new baby, also in his arms. I know he's spending time with his wife today. But a lot of people saying, why now? Why is he stepping out now? Why is this happening? The fact that he is doing this adds a lot of questions to the mix, and people are questioning his credibility. But from what you know, with his background, his reputation, his sheet of experience, this is someone who's pretty much remained unscathed, correct?
[Casbon:] Oh, he his history and his whole career in 26 years, is unscathed. He's one of the very top, top he was one of the finest street cops that America could have ever had. So, you know, Chief Compass, Eddie Compass is going to do fine. And this department is going to do fine. There is no, and should not be, any scandals around this man whatsoever. And really, we need to have no scandals around the entire 1,600 police officers that we have in the city that have really done such an amazing job under a tremendous disaster.
[Phillips:] And you know I need to ask you about the looting and what has come forward in the past couple of days. And you and I have known each other for awhile. When I was there 10 years ago, I had to cover those stories of the cops protecting drugs in warehouses and the corruption that existed then. It still exists, obviously. How do you respond to the looting? Is it is it the minority, still, like it was 10 years ago? And what's being done to deal with that, John?
[Casbon:] Well, I think that when all the facts are laid out this is a this is a handful of officers. And let me tell you one thing: there is always two sides to a story. And our department will get to the bottom of this and find out what really, really happened. But like you said, this is such a small component of the police department when we really need to be focusing on 1,600 officers that are 247 that have lost every single thing they own. I think this looting component, we'll find out the facts here soon, Kyra, as we wade through and investigate exactly what happened. It's just a little too soon to get this piece really understood.
[Phillips:] That's true. And you know, I've talked to a number of those officers that stayed in the fight. They tried to save everything from DNA evidence in the evidence room to members of the SWAT team.
[Casbon:] Right.
[Phillips:] And I know it's a tough time for them. And also, those officers need a voice, John. We've been hearing a lot from Mayor Ray Nagin. We haven't heard a lot from Compass in a couple of weeks. And we'll talk about Warren Riley stepping in as the acting superintendent. He's going to need to have a voice. We're going to need to hear from leadership within the NOPD, right?
[Casbon:] Well, I absolutely agree with you. And let me tell you there was a ground-breaking move yesterday, as the mayor and the city council we had a city council meeting yesterday at the airport. And we agreed, all of us, to communicate. You know, our communications were completely shattered. And we're just now really getting back a full line of communications. And I expect that the mayor's office and the city council and the police department will be hand-in-hand from this point on, daily briefings and we're going to move together. This is one of the greatest cities in America, and it will be rebuilt. And we're going to build a middle class here, Kyra. We're going to we're not going to have the poverty we had in the past. We're going to make this a much better city.
[Phillips:] And that means that it's important to have police officers, of course, on the straight and narrow. And I think the officers that are still staying in the fight want to know that Eddie Compass was not corrupt in any way and this was a decision he's making for other reasons.
[Casbon:] That's exactly right. Believe me, Eddie Compass is not corrupt. This was his decision. He's made it. And we wish him a great deal of good will and luck, and he's going to do fine. He will do fine, and the department will do fine. Chief Riley is an excellent, excellent officer. And he will lead this department and we're going to move on from here.
[Phillips:] And you finally you said Eddie Compass, you're encouraging him to move on to be a police chief in another area. What I know you briefed him this morning. How does he plan to do that?
[Casbon:] Well, I think that although he is retired, I think that he's going to lay low for awhile. But I think deep down, I know this man. I know that there's a part of him that would like to come back and lead again. And for any city across America that needs a really fine police officer and a chief, this is a great one to interview. He'll do well no matter where he goes.
[Phillips:] John Casbon, chairman...
[Casbon:] Yes.
[Phillips:] Forgive me, John, I'm sorry. We have to get to a White House briefing. But as we do that, I just want to let our viewers know about New OrleansPoliceFoundation.org. You can log on, you can give to that foundation. I promised John to talk more about this. You can actually click onto the web site, click onto how to donate. John is chairman of this organization, and it goes to a good cause. It helps those good cops. It helps their families, and it helps make the NOPD exactly what it needs to be with regard to a good reputation and a strong force. We'll talk more with John. Let's go straight to Scott McClellan at the White House now, talking about New Orleans. Also wait to hear if he has anything to say about Tom DeLay.
[Scott Mcclellan, White House Press Secy:] ... fourth day, I guess I should say, of the seven-day phased plan of return of people to the region. And this is all an update as of this morning. In terms of Katrina, the latest update there: You have nearly 1.5 million people who have registered to receive immediate cash assistance and well over $2.2 billion that has been distributed. There are some 188,539 housing damage inspections that have been done in the region as well. The president participated in an additional update this morning with Secretary Chertoff and the vice president and senior White House officials to talk about how we can make sure that we're moving forward on some of the concerns that were expressed to him yesterday in some of the meetings and that we're moving as quickly as we can to get people the benefits and the help that they need. Today, the president had a good discussion with his commanders in the field in Iraq and the broader Middle East, General Abizaid and General Casey. They had a good discussion about the progress made in the war on terrorism and the challenges ahead. You heard from the president in the Rose Garden, and General Casey and General Abizaid are briefing the Hill today and tomorrow to update them on our strategy for succeeding in Iraq.
[Mcclellan:] One announcement: The president looks forward to welcoming President Kwasniewski of Poland to the White House for a farewell meeting and lunch on October 12. Poland remains one of America's closest friends and allies. And we will be putting out a statement on that a little bit later today. And with that, I will be glad to go to questions.
[Question:] The president earlier this year, in April, called Tom DeLay a very effective leader. In May, he called him a fine majority leader. Does he still hold those opinions...
[Mcclellan:] Yes. Congressman DeLay is a good ally, a leader who we have worked closely with to get things done for the American people.
[Question:] Has the president spoken with Speaker Hastert or other Republican leaders on the Hill today to talk about this interim time with DeLay stepping aside?
[Mcclellan:] Well, when I left him just a short time ago, he was having lunch with his national security adviser and secretary of state and the vice president and Chief of Staff Andy Card. I don't believe he's had any conversations with those individuals. I think White House staff certainly has been in contact with members of Congress, as we are on a regular basis. What was the president's reaction? You said you were with him... Let me come back to you.
[Question:] Can you characterize the president's reaction, especially when you have so many legislative things you want to move forward? Sure. I think the president's view is that we need to let the legal process work. There is a process in place and we'll let that work. Go ahead, Helen. The papers have been satiated in the last few days, again, with another round of our abuse of prisoners and detainees and torture. Has the president ever issued a directive to all military prisons under our control that they should not torture and they should abide by the Geneva Accord.
[Mcclellan:] Yes. Yes, in fact, we did that quite some time ago.
[Question:] There is an actual directive?
[Mcclellan:] If people are involved in wrongdoing, they're going to be held to account. And that's exactly what this administration has done.
[Question:] I asked you if the president has issued any executive order against torture...
[Mcclellan:] The president made it very clear that we do not torture and we do not condone torture. And if people and if people break the law, they are brought to account. And that's exactly what we've done in the instances that you're referring to.
[Question:] But why don't they know it, then? Why has there been this continued abuse?
[Mcclellan:] They do know it. And the secretary of defense and military leaders have taken steps to prevent such horrible atrocities from happening again.
[Question:] But it goes beyond [inaudible]. Why is that?
[Mcclellan:] You might want to talk to the Department of Defense because they can brief you...
[Question:] No, I think this is something at the presidential level...
[Mcclellan:] No, but I think it's important...
[Question:] ... and has to do something with our reputation.
[Mcclellan:] I think it's important for the American people to know the facts. And if you look at the facts, people have been brought to justice that are involved in wrongdoing, and any allegation of wrongdoing is taken very seriously by this administration. We have an outstanding military: 99.9 percent of the men and women in uniform do an outstanding job and represent the American people in the best possible way. They uphold our standards and our values.
[Question:] Is there any paper showing the president has issued a directive saying...
[Mcclellan:] We've actually put out paper previously about the directives that he's made.
[Question:] An actual order?
[Mcclellan:] And he has publicly stated it very clearly to everyone in his administration and to the American people...
[Question:] Well, why is it still going on? Does the president take the allegation of wrongdoing seriously that Tom DeLay used the Republican National Committee as a money-laundering operation to fund local elections in Texas? That's what the grand jury is indicting him for.
[Mcclellan:] That's what the legal process will proceed to address and...
[Question:] How seriously does the president take that allegation?
[Mcclellan:] Leader DeLay's office has put out a statement...
[Question:] I'm not asking...
[Mcclellan:] ... disputing the assertions. We need to let the legal process proceed, and that's what the president believes.
[Question:] You just made a very strong statement about some acts of wrongdoing alleged. Here we have alleged acts of wrongdoing. How seriously does the president take...
[Mcclellan:] This is a different circumstance. And we're going to let the legal process work.
[Question:] Do you think this is politically motivated?
[Mcclellan:] We're going to let the legal process work. I've stated our views when it come to Congressman DeLay. The president has stated them previously, and we continue to hold those views.
[Question:] Is the president concerned that there's a stench of corruption around the Republican establishment in Washington?
[Mcclellan:] I don't think you can make such a broad characterization. There are some instances, individual situations, and we'll let those the legal process proceed in those instances.
[Question:] But he doesn't take it as seriously as he takes other allegations of wrongdoing?
[Mcclellan:] I didn't say that, you said that. Go ahead.
[Question:] You didn't say that he did take it seriously.
[Mcclellan:] There's a legal process in place to address these matters. Go ahead.
[Question:] Does he still have confidence in Leader DeLay, and what does he think the impact of this will be on the...
[Mcclellan:] Yes, I just expressed his views. Again, the president considers him a good ally and a friend who we have worked with very closely to get things done for the American people.
[Question:] Does he still have confidence in him?
[Mcclellan:] I'm sorry?
[Question:] Does he still have confidence...
[Mcclellan:] Well, Leader DeLay is going to work to address this issue. He has put out a statement by his office. I think our views are very clear in terms of our relationship with the congressman. And the president continues to hold those views.
[Question:] Follow up on an aspect of what Terry just asked you. Even before DeLay was indicted, there were a lot of Democrats who were making an argument that the Republican Party, by virtue of having controlled Congress for more than a decade now, the White House for almost five years now, had grown arrogant in its use of power and was flouting rules and sometimes laws. What's the president's view?
[Mcclellan:] Welcome to Washington, D.C. That's the kind of politics that go on in this town. The Republican Party, particularly under this president, has worked to get things done for the American people. We have advanced an agenda that has helped to improve the quality of life for all Americans, and we stand very firmly behind that record and that agenda. In terms of the question you just asked, we can sit here and try to rush to judgment, but I don't think that's a fair thing to do. We need to let the legal process work. When it come to the instances that Helen brought up, there's a legal process at work, a legal process in place. And you know what? That process proceeded and some people have been found guilty; some have not been found guilty.
[Question:] But you said that you take those allegations very seriously. I ask: Do you take these allegations very seriously?
[Mcclellan:] Any such allegations are always taken seriously.
[Question:] Scott, before the president and before you have made these strong statements in support of Tom DeLay, did the president ever talk to him about these allegations, about whether or not they're true or false?
[Mcclellan:] I don't have any discussions to update you on, on the two of them. They have talked in the past on many occasions about how we advance an agenda for the American people.
[Question:] Can I follow up on a different issue?
[Mcclellan:] Sure.
[Question:] Michael Brown: He said yesterday among the many things he said was that he had warned the president, warned the White House, about the fact that this was going to be a, quote, "bad one," and also suggested that the things that he asked for from the White House, some of them were not answered in the timeline that was requested.
[Mcclellan:] I think he indicated that the needs he was requesting were being addressed, were being met.
[Question:] Well, he also indicated another point, that perhaps some...
[Mcclellan:] I thought he said he couldn't say the timeliness of it; he couldn't address that. Am I correct? I saw some of the testimony.
[Question:] Well, my quote here is that some of the things were not answered in a...
[Mcclellan:] Well, we can go back and look at the transcript. I'll be glad to do that.
[Question:] Let me ask just a broader question about this. Some of the things that he said also were about the local leaders, about the Louisiana leaders, that they essentially were dysfunctional.
[Mcclellan:] Before you get to that question, let me address something on your first question. We were very focused and engaged when it came to preparing for Hurricane Katrina. We were talking to the American people and providing them updates, starting on that Thursday before the storm hit, about the discussions and meetings that the president was involved in. We were keeping people updated about the discussions that Mr. Brown and others were having with state and local officials. If you'll recall, the head of the storm center or the Hurricane Center, Max Mayfield, was in touch with governors on that Saturday, urging that steps be taken. The president issued an emergency declaration on Saturday for Louisiana. He issued an emergency declaration for Mississippi and, I believe, Alabama on Sunday morning. The president urged the governors in those states to evacuate people out of the path that morning and the president participated in a video conference with state and local officials in the Gulf Coast states to make sure that the preparations were being taken to be able to respond quickly, once the storm has passed, and you could get the search and rescue teams in there and you could get the supplies in there. Now there are things that went right and there are things that went wrong. And we've got to fix what went wrong. The president is very interested in making sure that we understand the facts and that we take steps to prevent what happened what went wrong from happening again. And that's what we're doing. And the second question, I think you were coming to some of the comments go ahead.
[Question:] [OFF-MIKE] just sort of alluded to it. Sounds almost as if you were concurring with what Mike Brown said, that a mistake was not recognizing that the Louisiana officials, local officials were dysfunctional.
[Mcclellan:] Let me make a couple points. Washington tends to get caught up in bickering and finger- pointing. The president is focused on problem-solving. We're focused on how we can work together with state and local officials to meet the needs of the people in the region who have been affected, the people who have lost their homes, who have seen their communities destroyed. We want to help them get back up on their feet and rebuild their lives... The White House, under the president, has moved forward on a comprehensive lessons-learned review of Hurricane Katrina. All cabinet secretaries are participating in that. It's of the highest priority. But we've also got to keep our focus where it's most needed. And that is on the people in the region who are trying to rebuild their lives...
[Phillips:] Secretary McClellan, briefing reporter, talking about the response to Hurricane Katrina. But just a few minutes ago, talked about House Majority Leader Tom DeLay, now accused of conspiring to violate campaign finance laws in his home state of Texas. Scott McClellan saying let the legal process work. That's it. We're going to keep following it. Take a quick break. More LIVE FROM right after this.