7/30/02

LC020730

VAL ZAVALA>> ON LIFE AND TIMES TONIGHT --

JESS MARLOW>> WE ARE WHAT WE EAT, SO GOES THE SAYING, BUT THAT'S TAKING ON A WHOLE NEW MEANING AS SCIENTISTS BEGIN INJECTING PLANTS WITH HUMAN GENES.

MICH HEIN>> I DON'T KNOW THAT IT CAME OVER A CUP OF COFFEE OR OVER A BEER AT ONE POINT, BUT WE JUST DECIDED THAT WE WOULD TRY IT. IT WAS THE DISCOVERY THAT PLANT CELLS DO THE SAME THINGS WITH THOSE MOLECULES THAT YOU AND I DO THAT REALLY ALLOWED THIS TO HAPPEN.

VAL>> ARE THE GOLDEN YEARS OF RETIREMENT TURNING TO LEAD? TONIGHT A FINANCIAL EXPERT HAS SOME TIPS ON HOW TO SAVE THAT RETIREMENT NEST EGG EVEN WHEN THE STOCK MARKET IS TAKING A NOSEDIVE.

JESS>> AND PATT MORRISON WANTS US ALL TO MAINTAIN A HEALTHY AMOUNT OF SKEPTICISM WHEN IT COMES TO A NEW CRIME-FIGHTING TOOL.

PATT MORRISON>> WHAT A TANGLED WEBSITE WE WEAVE. NAMING NAMES OF SEX OFFENDERS ON THE INTERNET -- ON TONIGHT'S INFINITELY MORRISON.

VAL>> BEFORE TELEVISION AND THE 24-HOUR NEWS CHANNELS, THEY BROUGHT THE WORLD TO A THEATER NEAR YOU.

[FILM CLIP]

VAL>> NEWSREELS CAPTURED SOME PRICELESS MOMENTS IN HISTORY, BUT MANY OF THESE OLD FILMS ARE LITERALLY MELTING AWAY. TONIGHT A LOOK AT ONE LOCAL EFFORT TO SAVE THEM.

JESS>> THESE STORIES ALL AHEAD ON TONIGHT'S 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.

WHEN YOUR MOTHER TOLD YOU TO EAT YOUR VEGETABLES, SHE NEVER DREAMED WHAT SOME PEOPLE MIGHT START PUTTING INTO THEM. TONIGHT WE'RE TAKING YOU TO A CALIFORNIA LABORATORY WHERE SCIENTISTS HAVE FOUND A WAY TO INJECT CORN AND OTHER PLANTS WITH HUMAN GENES.

VAL>> IT MAY SOUND LIKE THE PLOT OF A HORROR MOVIE, BUT THE EXPERIMENT WITH PLANTS AND HUMAN GENES COULD CREATE SCORES OF NEW VACCINES AND MEDICINES. THE QUESTION IS, ARE BIOTECH COMPANIES PUTTING US AT RISK BY MEDDLING WITH NATURE? ANNE MARIE RUFF HAS OUR STORY.

ANNE MARIE RUFF>> BY ALL APPEARANCES, THESE ARE JUST ORDINARY CORN SEEDS. BUT TO SOME CALIFORNIA SCIENTISTS, THEY'RE SOMETHING MUCH MORE: THE SEEDS OF A MEDICAL REVOLUTION. THEY'RE EXTRAORDINARY NOT FOR THE WAY THEY LOOK, BUT FOR WHAT THE SEEDS CONTAIN: TRACES OF HUMAN GENES, THE VERY FABRIC OF WHAT WE ALL ARE, AND THE GENES DIDN'T GET THERE BY ACCIDENT. THEY WERE INJECTED IN A LAB OUTSIDE SAN DIEGO AS PART OF A CUTTING EDGE EXPERIMENT.

MICH HEIN>> THE CORN PLANTS THAT WE'RE USING ARE CORN PLANTS THAT HAVE PLANTED INTO THEIR GENOME THE SEQUENCE TO MAKE HUMAN ANTIBODIES.

ANNE MARIE RUFF>> MICH HEIN AND HIS PARTNER, ANDY HIATT, WERE WITH THE SCRIPPS RESEARCH INSTITUTE WHEN THEY GOT THE IDEA TO PRODUCE DRUGS BY INSERTING HUMAN GENES INTO A PLANT'S DNA.

MICH HEIN>> NOW I DON'T KNOW THAT IT CAME OVER A CUP OF COFFEE OR OVER A BEER AT ONE POINT, BUT WE JUST DECIDED THAT WE WOULD TRY IT. THERE WAS THE DISCOVERY THAT PLANT CELLS DO THE SAME THINGS WITH THOSE MOLECULES THAT YOU AND I DO THAT REALLY ALLOWED THIS TO HAPPEN.

ANNE MARIE RUFF>> THE RESULT? THEIR FOUR-YEAR-OLD COMPANY, EPICYTE, HAS ENGINEERED CORN PLANTS TO PRODUCE HUMAN ANTIBODIES. THOSE ANTIBODIES CAN BE EXTRACTED FROM CORN KERNELS AND MADE INTO MEDICINES. ANDREW HIATT OVERSEES THE COMPANY'S LABS IN LA JOLLA WHERE THEY'VE TURNED CORN INTO A PHARMACEUTICAL MACHINE. THE PROCESS STARTS WITH A SEQUENCE OF HUMAN DNA WHICH IS THEN MULTIPLIED, OR AMPLIFIED.

ANDREW HIATT>> THIS IS THE SPOT WHERE WE AMPLIFY DNA AND WE CAN AMPLIFY DNA FROM VERY SMALL AMOUNTS INTO AMOUNTS THAT WE CAN THEN USE FOR REAL CLONING EXPERIMENTS AND FOR EXPERIMENTS THAT TRANSFORM PLANT CELLS.

ANNE MARIE RUFF>> THE DNA IS THEN PUT INTO A MACHINE AND LITERALLY SHOT INTO CELLS. THOSE TRANSFORMED CELLS ARE GROWN IN PETRI DISHES UNTIL THEY PRODUCE ROOTS AND SPROUT MINIATURE GREEN LEAVES.

ANDREW HIATT>> AS SOON AS THEY PRODUCE ROOTS, THEY'RE ABLE TO GO INTO POTTING SOIL AND THAT'S WHEN THEY REALLY START TO DEVELOP INTO REAL PLANTS.

ANNE MARIE RUFF>> RAISED IN THE LAB, THESE CORN PLANTS ARE TRANSGENIC, MEANING THEY CONTAIN FOREIGN GENES. AFTER THEY'RE PLANTED IN SOIL, THEY START TO LOOK LIKE REGULAR CORN PLANTS.

ANDREW HIATT>> SO THESE ARE ALL CORN PLANTS THAT ARE ABOUT TO PRODUCE ANTIBODIES. IN OUR SYSTEM, WE DON'T DIRECT ANTIBODY PRODUCTION TO THE LEAF MATERIAL. THE ANTIBODY ITSELF WILL ONLY BE PRODUCED IN THE SEED.

ANNE MARIE RUFF>> WHEN A KERNEL OF CORN CAN BE ENGINEERED TO PRODUCE HUMAN ANTIBODIES, A CORNFIELD CAN BE DESIGNED TO FUNCTION AS A PHARMACEUTICAL FACTORY. THAT MEANS AN ALMOST UNLIMITED SUPPLY OF ANTIBODIES CAN BE GROWN CHEAPLY. ANTIBODIES USUALLY ARE PRODUCED IN GIANT STEEL VATS WHICH ARE EXPENSIVE TO BUILD AND OPERATE. MICH HEIN CLAIMS EPICYTE'S TECHNOLOGY TAPS INTO A MUCH MORE EFFICIENT AND CHEAPER METHOD, A FARMING SYSTEM THAT RUNS ON SOIL AND SUN AND, TO EXPAND PRODUCTION, ALL YOU NEED TO DO IS PLANT MORE CROPS.

MICH HEIN>> IT'S ONE OF THE GREAT ADVANTAGES OF THE CORN SYSTEM. WE CAN USE A ROBUST AGRICULTURAL PRODUCTION TECHNOLOGY TO PRODUCE A MATERIAL THAT WE CAN MOVE THROUGH THE PROCESSING CHAIN MUCH LIKE TODAY'S PHARMACEUTICALS.

ANNE MARIE RUFF>> BUT THAT'S WHERE EPICYTE COULD RUN INTO PROBLEMS. IF PLANTS WITH HUMAN ANTIBODIES ARE PLANTED IN OPEN FIELDS, THEIR POLLEN NOW LACED WITH HUMAN DNA COULD DRIFT BEYOND THE FARM. AND IF THE POLLEN DROPS ONTO ANOTHER CORNFIELD, THAT HUMAN DNA COULD SPREAD INTO REGULAR FOOD CORN. MICH HEIN SAYS HE'S ALREADY CONSIDERED WHAT COULD HAPPEN AND IS READY TO TAKE PRECAUTIONS.

MICH HEIN>> WE DON'T HAVE ANYTHING OUT IN THE FIELD RIGHT NOW, YOU KNOW, TODAY, BUT THE AREAS THAT WE WOULD CONSIDER FOR GROWING AND WHERE WE'LL LIKELY WORK WOULD BE IN CALIFORNIA, ARIZONA, MAYBE SOME PLACES IN OREGON OR IDAHO. YOU KNOW, WESTERN STATES WHERE YOU FIND AREAS THAT ARE ISOLATED, NOT NORMAL CORN PRODUCTION, WELL-SUITED TO THE CROP.

ANNE MARIE RUFF>> ANOTHER DANGER? WHAT IF THE PHARMACEUTICAL CORN IS PROCESSED LIKE REGULAR CORN AND ACCIDENTALLY GETS MIXED WITH THE FOOD SUPPLY? ANTIBODIES ARE SAFE FOR HUMANS. WE PRODUCE THEM IN OUR BODIES ALL THE TIME. BUT THE EFFECTS OF INGESTING THEM IN OUR FOOD ARE UNKNOWN. HEIN ACKNOWLEDGES THE RISKS, BUT HE THINKS THE BENEFITS ARE FAR GREATER.

MICH HEIN>> THE REAL VALUE, I THINK, WITH THIS TECHNOLOGY IS THAT IT PROVIDES THE OPPORTUNITY FOR A SCOPE OF PRODUCTS THAT PEOPLE HAVEN'T THOUGHT ABOUT BEFORE THAT ARE MADE OUT OF ANTIBODIES.

ANNE MARIE RUFF>> EPICYTE'S FIRST ANTIBODY WILL PRODUCE MEDICINE FOR TREATING THE HERPES VIRUS. ANTIBODIES FOR INFLAMMATORY DISEASES, INTESTINAL DISEASES AND EVEN HIV ARE IN THE PIPELINE, BUT STILL YEARS AWAY. IN THE MEANTIME, EPICYTE'S DOLLAR VALUE IS RISING EVEN BEFORE IT HAS A PRODUCT. THE COMPANY HAS RECENTLY BEEN AWARDED A BROAD PATENT ON THE NEW GENE TECHNOLOGY AND THAT PUTS THEM AHEAD OF THE PACK IN THIS GROWING PART OF THE BIOTECH INDUSTRY.

MICH HEIN>> OBVIOUSLY WE BELIEVE, AS DO OUR INVESTORS, THAT THE MARKET POTENTIAL IS VERY LARGE FOR THE TECHNOLOGY. ANTIBODIES ARE THE FASTEST-GROWING CLASS OF BIOLOGICAL DRUGS TODAY.

ANNE MARIE RUFF>> AND IF EPICYTE'S HARVEST IS GOOD, THE COMPANY'S PROFITS MAY GROW AS FAST AS ITS CROPS. IN LA JOLLA, THIS IS ANNE MARIE RUFF FOR LIFE AND TIMES.

JESS>> IN SPITE OF THE ASSURANCES FROM BIOTECH COMPANIES, MANY CRITICS AREN'T CONVINCED THAT PUTTING HUMAN GENES IN PLANTS IS SAFE. FOR ONE THING, COMPANIES RARELY DISCLOSE WHERE THEY'RE GROWING THOSE GENETICALLY-ALTERED CROPS. A SPOKESMAN FOR FRIENDS OF THE EARTH, AN ENVIRONMENTAL GROUP, SAYS ONE MISTAKE AND WE'LL BE EATING OTHER PEOPLE'S PRESCRIPTION DRUGS IN OUR CORN FLAKES.

VAL>> TOMORROW ON LIFE AND TIMES, YOU MAY HATE YOUR CABLE COMPANY, BUT WILL YOU MISS THEM IF THEY'RE GONE? WE'LL LOOK AT THE IMPACT OF THE ADELPHIA SCANDAL ON LOCAL CABLE TV SUBSCRIBERS.

>> IN LOS ANGELES, IN PARTICULAR, WE HAVE 250,000 SUBSCRIBERS WHO ARE WONDERING WHETHER OR NOT THEIR CABLE'S GOING TO BE ON TOMORROW.

>> WE HAVE NO OPTION CABLE-WISE, BUT IT'S JUST BEEN TERRIBLE RECEPTION FOR YEARS. YOU KNOW, IN AND OUT, IT'S JUST A NIGHTMARE.

JESS>> THERE HAVE BEEN ENCOURAGING SIGNS ON WALL STREET IN RECENT DAYS, SIGNS THAT THE MARKET MELTDOWN MAY BE COMING TO AN END. STOCKS WENT ON A HUGE RALLY YESTERDAY, BUT TODAY THE MARKET BACKED OFF JUST A BIT. STILL, MANY INVESTORS ARE WONDERING WHETHER THEY'LL EVER TRULY RECOVER THEIR RECENT LOSSES.

VAL>> AND JOINING US NOW IS KATHY KRISTOF. SHE WRITES THE "YOUR MONEY" COLUMN IN THE LOS ANGELES TIMES AND SHE'S ALSO AUTHOR OF "INVESTING 101: A GUIDE FOR SURVIVING THE STOCK MARKET UPS AND DOWNS". COULDN'T BE MORE RELEVANT FOR TODAY.

KATHY KRISTOF>> (LAUGHTER) SURE FEELS LIKE IT, DOESN'T IT?

JESS>> WE'VE SEEN MORE UPS AND DOWNS IN RECENT YEARS, IT SEEMS IN THE LAST TWO OR THREE YEARS. IT'S LIKE A YO-YO.

KATHY KRISTOF>> WELL, I MEAN, WE'VE PARTICULARLY FELT THEM BECAUSE RECENTLY IT'S BEEN NOTHING BUT DOWNS, RIGHT? WE'VE HAD THIS BRIEF RALLY SO FAR, BUT FOR THE PAST TWO AND A HALF YEARS, ALL THE MARKET HAS REALLY DONE IS FALL.

VAL>> BUT THEY ALWAYS SAY LOOK LONG-TERM. EVEN TWO AND A HALF YEARS IS TOO SHORT A TIME FRAME TO BASE YOUR STRATEGY ON, NO?

KATHY KRISTOF>> EXACTLY. YOU KNOW, ONE OF THE REASONS WHY THE MARKET FELL SO MUCH OVER THE PAST TWO AND A HALF YEARS IS THE PREVIOUS YEARS, IT WENT GANGBUSTERS.

JESS>> WE LIKED THAT.

KATHY KRISTOF>> YES, EXACTLY. WE ALL ENJOYED IT SO MUCH THAT WE WANTED TO FORGET THAT THE MARKET EVER WAS GOING TO FALL. BUT IN FACT, ONE IN EVERY FOUR YEARS, THE MARKET DOES DECLINE IN VALUE. SO WE JUST SKIPPED A COUPLE OF YEARS AND NOW WE'RE MAKING UP FOR IT.

JESS>> THERE ARE INVESTORS AND THEN THERE ARE INVESTORS. THOSE WHO NEED THAT MONEY FOR THEIR IMMEDIATE NEEDS ARE SUFFERING, AREN'T THEY?

KATHY KRISTOF>> OH, YOU BET THEY ARE. THEY SHOULDN'T HAVE HAD SO MUCH MONEY IN STOCKS. ONE OF THE PROBLEMS IS THAT BECAUSE THE MARKET WENT UP SO MUCH AND FOR SUCH A LONG PERIOD OF TIME, PEOPLE FORGOT THAT IT WAS RISKY. SO INSTEAD OF DIVERSIFYING THEIR ASSETS INTO DIFFERENT CLASSES, SOME IN CASH, SOME IN BONDS, THEY PUT IT ALL IN STOCKS. SO THOSE PEOPLE ARE SEEING THIRTY AND FORTY PERCENT LOSSES THAT, IF YOU'RE CLOSE TO RETIREMENT, YOU'RE JUST NEVER GOING TO RECOVER.

JESS>> ESPECIALLY THOSE WHO PUT IT IN TECH STOCKS.

KATHY KRISTOF>> OH, YEAH. REALLY BAD.

VAL>> SO WHAT IS YOUR ADVICE? LET'S SAY YOU ARE LOOKING AT YOUR RETIREMENT AND YOU'RE REALLY CONCERNED THAT THERE'S NOT GOING TO BE ENOUGH THERE. IS THERE ANYTHING PEOPLE SHOULD DO OR CONSIDER DOING?

KATHY KRISTOF>> WELL, IT DEPENDS ON HOW OLD YOU ARE. IF YOU'RE REALLY CLOSE TO RETIREMENT, THERE'S NOT MUCH YOU CAN DO OTHER THAN ADJUST AND --

VAL>> -- YOU COULD WORK LONGER, RIGHT? JUST CONTINUE WORKING?

KATHY KRISTOF>> EXACTLY. THAT'S HOW YOU ADJUST. YOU SAY, OKAY, I DON'T HAVE AS MUCH MONEY SAVED AS I WANTED, SO I'M JUST GOING TO WORK A LITTLE BIT LONGER, OR I'M GOING TO SPEND A LITTLE LESS, OR I'M GOING TO DO SOME OTHER LITTLE THING TO ADJUST MY PLANS.

VAL>> BUT I WAS SURPRISED, THOUGH. I WAS READING YOUR ARTICLE. I WAS AMAZED AT WHAT THE IMPACT OF CUTTING DOWN ON SPENDING BY EVEN FIFTY DOLLARS A MONTH IS ON THE RETIREMENT --

KATHY KRISTOF>> -- IT'S HUGE. IT'S ABSOLUTELY HUGE. WHAT NOBODY WANTS TO TALK TO YOU ABOUT IS THAT, IF YOU SPEND LESS, YOU NEED SO MUCH LESS SAVED. BUT, YOU KNOW, IT'S MORE FUN TO TALK ABOUT, OH, WELL, YOU KNOW, IF YOU HAVE A MILLION DOLLARS, YOU CAN DO WHATEVER YOU WANT IN RETIREMENT, AND THAT IS SO TRUE. BUT IF YOU DON'T HAVE A MILLION DOLLARS, IT DOESN'T MEAN YOU'RE GOING TO BE LIVING ON THE STREET.

VAL>> WHAT DOES IT TRANSLATE TO? I THINK, IF YOU CUT DOWN BY FIFTY DOLLARS A MONTH, IT'S SAVES SOMETHING LIKE $10,000 WORTH OF RETIREMENT SAVINGS?

KATHY KRISTOF>> YES. YOU NEED $10,000 LESS, YES.

VAL>> LESS.

KATHY KRISTOF>> YES. YOU'VE BEEN READING (LAUGHTER).

JESS>> WHAT ABOUT THE OLD RULE THAT WE ALL LIVED UNDER THAT YOU BUY BLUE CHIP STOCKS AND YOU HANG ONTO THEM BECAUSE THE MARKET WILL GO UP AND IT'LL GO DOWN AND IT WILL COME BACK, SO JUST HANG IN THERE.

KATHY KRISTOF>> WELL, ABSOLUTELY. FOR LONG-TERM GOALS, YOU DO JUST HANG IN THERE. IT'S NOT THAT YOU BUY BLUE CHIP STOCKS. I THINK IT'S THAT YOU BUY STOCKS, LOTS OF STOCKS, A WHOLE BROAD DIVERSIFIED BASKET OF ALL TYPES OF COMPANIES AND YOU HANG ONTO THAT. BUT YOU DON'T PUT NEAR-TERM MONEY, MONEY THAT YOU NEED IN THE NEXT FIVE YEARS, IN STOCKS BECAUSE, IN A SHORT PERIOD OF TIME, STOCKS ARE A GAMBLE.

JESS>> MOST PEOPLE PREDICTED THOSE APPROACHING RETIREMENT AGE HAVE THE BULK OF THEIR INVESTMENT, AND MY GUESS IS, IN THEIR HOMES. IS THAT ANOTHER ALTERNATIVE? SELLING THE HOME?

KATHY KRISTOF>> OH, ABSOLUTELY. YOU KNOW, YOU CAN SELL --

JESS>> -- MOVING TO THE HOME. NO, JUST SELLING THE HOME (LAUGHTER).

KATHY KRISTOF>> (LAUGHTER) THAT'S RIGHT. A LOT OF CALIFORNIANS, IN PARTICULAR, HAVE A LOT OF EQUITY IN THEIR HOMES. THEY CAN EITHER SELL THEIR HOME AND SCALE BACK TO SOMETHING SMALLER AND USE THAT MONEY BUILT UP TO FINANCE A RETIREMENT OR THEY CAN EVEN GET A REVERSE MORTGAGE, WHICH ESSENTIALLY A LENDER GIVES YOU MONEY. THEY BUY YOU OUT OVER A LONG PERIOD OF TIME AND THAT PERIOD OF TIME YOU CAN SET AT ANY INTERVAL, INCLUDING FOR THE REST OF YOUR LIFE.

VAL>> THE ONLY DISADVANTAGE BEING THAT, AT THE END, YOU DON'T HAVE YOUR HOME TO WILL TO YOUR CHILDREN. OH, FORGET THE KIDS (LAUGHTER).

KATHY KRISTOF>> THAT'S RIGHT (LAUGHTER). AT SOME POINT, YOU HAVE TO SAY, HEY, IT'S MY MONEY. IF I REALLY NEED IT, THAT'S WHAT I NEED TO DO.

VAL>> NOW WHAT IF PEOPLE LIVE A LOT LONGER THAN THEY THINK? I MEAN, PEOPLE ARE LIVING TO BE -- WELL, LOOK AT JESS (LAUGHTER).

JESS>> 105 AND STILL GOING STRONG (LAUGHTER).

VAL>> (LAUGHTER) REALLY, WE MAY JUST, YOU KNOW, PLAN FOR RETIREMENT FOR A CERTAIN LENGTH OF TIME AND, LO AND BEHOLD, WE'RE LIVING TEN YEARS LONGER. IS THERE ANY INSURANCE THAT WE CAN TAKE?

KATHY KRISTOF>> YES. I MEAN, PEOPLE CAN BUY IMMEDIATE ANNUITIES. WHAT THESE ARE ARE A PRODUCT WHERE YOU GIVE SOMEBODY $100,000 AND THEY PROMISE TO PAY YOU BACK YOUR MONEY PLUS INTEREST OVER THE REST OF YOUR LIFE.

VAL>> $100,000? THAT'S A LOT.

KATHY KRISTOF>> SURE, IT'S A LOT OF MONEY.

JESS>> I KNOW A COUPLE WHO BOUGHT BONDS, BUT THEY DISCOVERED THAT THEY WERE SUPPOSED TO DIE AT 82, REGARDLESS. THAT'S WHEN YOUR MONEY RUNS OUT (LAUGHTER).

KATHY KRISTOF>> (LAUGHTER) WELL, THAT'S ALWAYS THE OPTION. YOU KNOW, YOU EITHER LIVE ON LESS OR YOU LIVE SHORTER. IT'S ONE OF THOSE THINGS, YOU KNOW? (LAUGHTER) I'M THINKING THAT TO LIVE ON LESS IS A BETTER OPTION.

JESS>> CONSUMER CONFIDENCE IS A BIG FACTOR IN THE MARKET TODAY, PARTICULARLY TODAY. ARE YOU CONFIDENT?

KATHY KRISTOF>> YOU KNOW, THAT'S A REALLY GOOD QUESTION. ONE OF THE PROBLEMS THAT EVERYBODY HAS IS REALIZING THAT THE MARKET NORMALLY ANTICIPATES WHAT'S GOING ON IN THE ECONOMY AS A WHOLE. WHEN THE MARKET WAS GOING DOWN, DOWN, DOWN AND THE ECONOMY SEEMED TO BE GOING UP, THAT LEFT A LOT OF PEOPLE WORRYING THAT THE ECONOMY COULD DROP AGAIN. I'M NOT CONVINCED THAT THAT CAN'T HAPPEN. I THINK IT STILL COULD HAPPEN. I THINK THAT, IF PEOPLE DON'T GET THEIR SPENDING IN CONTROL, IT WILL HAPPEN.

VAL>> KATHY KRISTOF, THE PERSONAL FINANCE WRITER FROM THE LOS ANGELES TIMES, THANK YOU SO MUCH, AND AUTHOR OF -- WHAT IS IT CALLED?

KATHY KRISTOF>> "INVESTING 101".

VAL>> "INVESTING 101". THANKS SO MUCH FOR BEING HERE.

KATHY KRISTOF>> THANK YOU.

LIFEANDTIMES@KCET.ORG
WWW.KCET.ORG
LIFE AND TIMES TONIGHT
4401 SUNSET BLVD.
LOS ANGELES, CA 90027
(323) 953-5555

JESS>> POLICE CAN TAKE ADVANTAGE OF A GROWING ARRAY OF HIGH-TECH TOOLS TO TRACK, CAPTURE AND CONVICT CRIMINALS, BUT CRITICS ARE POINTING OUT THAT THOSE TOOLS CAN BE COSTLY AND THEY ARE NOT INFALLIBLE. THAT'S THE SUBJECT OF TONIGHT'S INFINITELY MORRISON.

PATT MORRISON>> IT'S GOOD POLITICS AND IT'S GOOD PR AND MAYBE IT'S GOOD PUBLIC POLICY, BUT LOOK FAST BECAUSE IT MAY NOT LAST LONG. THE LOS ANGELES COUNTY BOARD OF SUPERVISORS HAS OKAYED PUTTING ON THE COUNTY'S WEBSITE A MAP SHOWING WHERE CONVICTED SEX OFFENDERS LIVE. THE COUNTY REASONS THAT PARENTS AND SCHOOLS, GUIDED BY THE MAP, CAN USE EXISTING LAW TO GO TO THE LOCAL POLICE STATION FOR A NAME, A PHOTO, A DESCRIPTION AND RAP SHEET OF THE FELON IN QUESTION. EVERY STATE HAS DONE THIS IN ONE FASHION OR ANOTHER SINCE THE 1996 MEGAN'S LAW, NAMED FOR A SEVEN-YEAR-OLD NEW JERSEY GIRL RAPED AND MURDERED BY A PAROLED SEX OFFENDER IN HER NEIGHBORHOOD.

IN CALIFORNIA, ANYONE CAN GO DOWN TO THE POLICE STATION AND CHECK OUT WHETHER DAYCARE OPERATORS OR SPORTS COACHES OR EVEN PRIESTS ARE SERIOUS SEX OFFENDERS. THERE IS NEW IMPETUS TO TRACK SEX OFFENDERS SINCE SAMANTHA RUNNION WAS KIDNAPPED AND MURDERED FROM HER ORANGE COUNTY HOME EARLIER THIS MONTH, BUT THERE ARE COMPLICATIONS. ON AVERAGE, FIFTEEN OF ONE HUNDRED OF THE NAMES AND WHEREABOUTS ARE OUTDATED OR JUST WRONG, AND THAT WRONG ADDRESS MIGHT BE YOURS. SAMANTHA RUNNION'S ACCUSED KILLER WASN'T EVEN A CANDIDATE FOR THAT LIST AND THE SUPREME COURT WILL DECIDE THIS FALL WHETHER STATES ACT CONSTITUTIONALLY WHEN THEY POST NAMES AND PHOTOS OF CONVICTED OFFENDERS ON WEBSITES.

A CONNECTICUT COURT RULED THAT NO NAMES AND PHOTOS COULD BE POSTED WITHOUT INDIVIDUAL HEARINGS INTO WHETHER THE FELON WAS STILL A DANGER TO THE COMMUNITY. HAWAII DID MUCH THE SAME THING. ONE CALIFORNIA CONVICTED RAPIST WAS LISTED AND HARASSED TWENTY-TWO YEARS AFTER HE HAD BEEN PAROLED WITH NO FURTHER OFFENSES. CALIFORNIA LAW EVEN REQUIRES ANYONE SELLING A HOUSE TO LET THE BUYERS KNOW THAT THERE IS A DATABASE OF REGISTERED SEX OFFENDERS SO THEY CAN CHECK OUT THE NEIGHBORS IF THEY WISH. THAT LAW SEEMS TO BE AS MUCH ABOUT BULLET-PROOFING SELLERS FROM LIABILITY AS IT IS ABOUT PUBLIC SAFETY, AND THE COUNTY'S DECISION ACCOMPLISHES THE SAME.

IT COULD COST, PERHAPS, $50,000 TO GET SUCH A MAP ON THE COUNTY'S WEBSITE AND IF, BY THE AUTUMN, THE SUPREME COURT SAYS IT'S UNCONSTITUTIONAL, DOWN IT WILL HAVE TO COME.

VAL>> THERE WAS A DAY NOT SO LONG AGO WHEN A TICKET TO A MOVIE GOT YOU A DOUBLE FEATURE, A CARTOON AND A NEWSREEL. FOR MANY, THE NEWSREELS WERE THE BEST PART.

JESS>> BACK THEN IN THAT ERA BEFORE TELEVISION, NEWSREELS PROVIDED MORE THAN JUST THE HEADLINES. THEY TOOK US TO PLACES WHERE HISTORY WAS BEING MADE. ONE SUCH PLACE, THE 1932 OLYMPIC GAMES AT THE LOS ANGELES COLISEUM.

[FILM CLIP]>> "THE GREEKS STARTED THE OLYMPICS TWENTY-FIVE CENTURIES AGO, BUT THEY NEVER GOT A VIEW LIKE WE'RE GIVING YOU AS THE 1932 EDITION GETS UNDERWAY."

JESS>> PRESIDENT HERBERT HOOVER COULDN'T MAKE IT, SO HE SENT THE VICE PRESIDENT TO THE OPENING CEREMONIES AND THE HEARST NEWSREEL CAMERAS CAPTURED ALL THE ACTION. NOW THESE OLD FILMS ARE IN THE TENDER LOVING HANDS OF PRESERVATIONISTS AT UCLA.

VAL>> AND JOINING US IS TIM KITTLESON. HE IS DIRECTOR OF FILM AND TELEVISION ARCHIVE AT UCLA AND HE'S IN CHARGE OF THE EFFORT TO PRESERVE THE HEARST METROTONE NEWSREEL COLLECTION. WELCOME TO LIFE AND TIMES.

JESS>> AND IT'S MORE THAN JUST HAVING THEM IN A COOL, DARK PLACE. PRESERVATION OF FILM IS REALLY DIFFICULT, ISN'T IT?

TIM KITTLESON>> IT'S DIFFICULT, TIME-CONSUMING, EXPENSIVE AND YOU'LL NEVER CATCH UP.

VAL>> SO HOW MUCH NEWSREEL FILM DO YOU HAVE?

TIM KITTLESON>> NEWSREEL FILM, THE HEARST COLLECTION, IS ENORMOUS. IT'S ONE OF THE JEWELS IN THE CROWN OF THE COLLECTION. IT'S TWENTY-SEVEN MILLION FEET, 5,000 HOURS --

VAL>> -- 5,000 HOURS?

TIM KITTLESON>> -- OF NEWSREELS FROM 1911 TO 1968, SO VIRTUALLY THE MOVIE IMAGE HISTORY OF THE ENTIRE CENTURY.

JESS>> AND THERE WAS SOMETHING UNIQUE ABUT THE HEARST NEWSREELS?

TIM KITTLESON>> HEARST WAS -- THE NEWSREELS WERE BEING DONE BY STUDIOS AND HEARST GOT IN VERY EARLY AND HE DID HIS NEWSREELS AS A JOURNALIST RATHER THAN A MOTION PICTURE STUDIO, SO THEY WERE BETTER COVERAGE AND NOT JUST POLITICS AND ECONOMICS. HE HAD A REAL TAKE ON THE HUMAN CONDITION.

VAL>> AND SPEAKING OF YOUR BENEFACTOR, WE'RE GOING TO TAKE A LOOK AT A CLIP THAT FEATURES PUBLISHER WILLIAM RANDOLPH HEARST. HERE IT IS.

WILLIAM RANDOLPH HEARST>> "GOVERNMENT SHOULD NOT INTERFERE IN BUSINESS EXCEPT TO PROTECT THE NINETY-NINE PERCENT OF HONEST BUSINESSMEN FROM THE DEGRADATIONS OF THE ONE PERCENT OF WRECKERS AND RACKETEERS. THAT'S THE CLOSE-UP."

JESS>> HOW TIMELY, HOW TIMELY. NINETY-NINE PERCENT OF THE BUSINESSMEN WHO ARE THIEVES.

TIM KITTLESON>> HISTORY REPEATS ITSELF.

VAL>> THAT IS SO FUNNY. SO WHEN HEARST BEQUEATHED THE COLLECTION TO UCLA --

TIM KITTLESON>> -- ACTUALLY IT WAS THE HEARST CORPORATION. IN 1983 THEY GAVE US THE ENTIRE COLLECTION AND THE COPYRIGHT, WHICH WAS VERY UNUSUAL.

VAL>> LAWYERS WILL UNDERSTAND THE SIGNIFICANCE OF THAT. THE COPYRIGHT REALLY GIVES YOU CONTROL TO DO WITH THE COLLECTION WHAT YOU WILL.

TIM KITTLESON>> WE HAVE THE RIGHT TO LICENSE ALL THE FOOTAGE IN THE COLLECTION AND WE DO THAT THROUGH OUR COMMERCIAL SERVICES DIVISION. THAT MONEY IS USED TO PAY FOR THE PRESERVATION.

JESS>> THE PRESERVATION IS THE GOAL, BUT THERE ARE USES MADE OF THIS ARCHIVE TOO?

TIM KITTLESON>> OH, ABSOLUTELY. WELL, BESIDES THE FACT THAT WE LICENSE IT TO MOTION PICTURES. IF YOU'VE SEEN "L.A. CONFIDENTIAL" OR "PEARL HARBOR" OR "FORREST GUMP", MOST OF THAT FOOTAGE WAS FROM US. ALSO A&E, THE HISTORY CHANNEL, ARE BIG CUSTOMERS, BUT WE ALSO MAKE IT AVAILABLE AT OUR ARCHIVE RESEARCH AND STUDY CENTER ON THE UCLA CAMPUS TO RESEARCHERS AND INDUSTRY PROFESSIONALS OR ANYBODY WHO'S GOT A REASON TO SEE IT.

VAL>> WE HAVE PLENTY MORE CLIPS HERE, SO LET'S GO TO THE NEXT ONE. THIS IS FROM LONG BEACH IN 1933.

[FILM CLIP]

VAL>> OH, THIS IS THE FAMOUS EARTHQUAKE. I DIDN'T REALIZE THAT SO MUCH FILM WAS TAKEN OF THAT. DO YOU KNOW EXACTLY WHERE THIS IS IN LONG BEACH?

TIM KITTLESON>> I'M NOT SURE.

JESS>> NEAR THE EPICENTER, ONE WOULD ASSUME.

TIM KITTLESON>> WELL, WHEN YOU SEE THE AERIAL SHOT, IT WAS PRETTY DEVASTATING. YOU KNOW, WE HEAR ABOUT THE LONG BEACH EARTHQUAKE, BUT UNTIL YOU SEE THIS FOOTAGE, YOU DON'T REALIZE QUITE --

VAL>> -- THE CONDITION OF THIS LOOKS GREAT. I MEAN, THE CONDITION OF THE --

JESS>> -- VERY LITTLE FLASH TO THIS FILM.

TIM KITTLESON>> WELL, THIS IS -- I MEAN, UCLA IS KNOWN AS A PRESERVING ARCHIVE AND WE DO IT AMAZINGLY WELL.

VAL>> AND WAS IT -- WE'RE JUST HEARING THE NATURAL SOUND. THERE'S NO NARRATOR OR ANYTHING, SO IS THIS JUST RAW FOOTAGE?

TIM KITTLESON>> THIS IS VERY INTERESTING BECAUSE THIS IS A PERIOD WHERE NEWSREELS WENT FROM THE SILENTS TO THE TALKIES AND THEY WEREN'T QUITE INTO OFF-CAMERA NARRATION YET. THAT DIDN'T HAPPEN UNTIL THE EARLY THIRTIES.

VAL>> SO THEY WOULD JUST SHOW PICTURES WITH --

TIM KITTLESON>> -- WITH AMBIENT SOUND AND SOMETIMES MUSIC.

VAL>> AND THAT WAS CONSIDERED A NEWS REPORT?

TIM KITTLESON>> TALKIE.

VAL>> TALKIE. WOW, THAT'S GREAT. THIS NEXT ONE, I HEAR, IS JUST PRICELESS. IT'S NOT RELATED TO SOUTHERN CALIFORNIA, BUT IT IS SO ENTERTAINING THAT YOU BROUGHT IT WITH YOU.

TIM KITTLESON>> IT'S PRICELESS.

VAL>> OKAY, LET'S TAKE A LOOK.

TIM KITTLESON>> AND NEVER TO BE REPEATED.

JESS>> AS WELL AS HISTORY, THEY DID FEATURES TOO (LAUGHTER).

TIM KITTLESON>> (LAUGHTER) RIGHT.

VAL>> THAT'S RIGHT. TELL US ABOUT THIS ONE.

TIM KITTLESON>> I'M SPEECHLESS. IT'S THE TOP OF THE SHANNON BUILDING. IT'S 1932. YOU'LL SEE THE CHRYSLER BUILDING IN THE BACKGROUND AND I THINK THAT'S WHAT INSPIRED THE COSTUMES.

JESS>> WHY, THESE ARE THE CHESTER HALE DANCERS (LAUGHTER).

TIM KITTLESON>> (LAUGHTER) ABSOLUTELY.

VAL>> WHAT WAS THIS, THOUGH? WAS IT JUST A PERFORMANCE? DID THEY DECIDE TO --

TIM KITTLESON>> -- NO ONE HAS -- IN THE EARLY THIRTIES, THERE WAS A REASON TO DO THINGS ON TOP OF UNFINISHED SKYSCRAPERS, ADAGIO DANCERS. THERE'S ONE ON TOP OF THE EMPIRE STATE BUILDING, 160-STRONG CHORUS, BUT THIS IS THE BEST.

VAL>> I THINK MICHAEL JACKSON GOT HIS INSPIRATION FROM THESE PEOPLE, OR MADONNA (LAUGHTER).

JESS>> AND BOB FOSSE CHOREOGRAPHED THIS (LAUGHTER).

VAL>> (LAUGHTER) THAT IS SO WILD. AND THIS WAS SHOWN IN THE THEATER?

TIM KITTLESON>> YES. USUALLY ABOUT EIGHT MINUTES OF NEWSREEL FOOTAGE WAS SHOWN BEFORE A FEATURE.

JESS>> THERE'S THE CHRYSLER BUILDING.

VAL>> OH, THAT'S A GOOD SHOT.

TIM KITTLESON>> DEFINITELY INSPIRING THE COSTUMES.

VAL>> (LAUGHTER) AND YOU'RE SAYING IT WAS A TRADITION TO DO THINGS ON TOP OF UNFINISHED --

TIM KITTLESON>> -- IT WAS IN THE EARLY THIRTIES. IT WAS THE DEPRESSION AND THIS WAS THE TYPE OF THING THAT HEARST COVERED BECAUSE HE THOUGHT WE SHOULD HAVE A LITTLE LEVITY ALSO AT THE SAME TIME.

VAL>> SO NOW WE HAVE, YOU KNOW, SKIING SQUIRRELS ON THE NEWSCASTS AND, THEN, THEY HAD PEOPLE DANCING ON TOP OF SKYSCRAPERS.

JESS>> THOSE WERE THE GOOD OLD DAYS.

VAL>> THAT'S RIGHT. LET'S SEE WHAT'S THE NEXT ONE HERE. THIS IS FROM SILENT STARS. THEY MEET TO SIGN THEIR CONTRACTS IN --

TIM KITTLESON>> -- THIS IS A VERY IMPORTANT PIECE OF HOLLYWOOD HISTORY. THIS IS WHEN MARY PICKFORD, CHARLIE CHAPLIN, D.W. GRIFFITH AND DOUGLAS FAIRBANKS GOT TOGETHER TO SIGN THE FORMATION OF UNITED ARTISTS. UA WAS THEIR STUDIO.

JESS>> THAT IS A BIT OF MOVIE HISTORY.

TIM KITTLESON>> AND THIS WAS KIND OF CLOWNING AROUND BEFORE THEY GOT INTO IT.

VAL>> NOW THIS ONE DOES LOOK MUCH MORE SCRATCHED UP.

TIM KITTLESON>> SOMETIMES THEY'RE IN A STATE WHERE WE JUST CAN'T GET THEM BACK TO WHERE THEY SHOULD BE, BUT THIS IS SO IMPORTANT THAT WE WOULD HAVE -- THIS LOOKS LIKE AN OUTTAKE OR A TRIM TO ME.

VAL>> THAT'S RIGHT. YOU HAVE DIFFERENT CATEGORIES.

TIM KITTLESON>> OH, YES. ONLY FIFTEEN PERCENT OF THAT 5,000 HOURS ARE ACTUALLY EDITED NEWSREELS. THE OTHER EIGHTY-FIVE PERCENT ARE TRIMS AND OUTTAKES. THEY'VE NEVER BEEN SEEN BY ANYBODY. THIS IS THE WEALTH OF THE COLLECTION.

JESS>> THIS WAS CLEARLY SILENT.

TIM KITTLESON>> YEAH.

VAL>> WOW, THAT'S AMAZING. NEXT ONE UP, ACADEMY AWARDS ARRIVAL. THIS IS FROM 1943.

TIM KITTLESON>> A DIFFERENT ACADEMY AWARD FROM TODAY.

VAL>> "MOVIEWORLD, FILM OF CHAMPIONS", OKAY.

[FILM CLIP]

VAL>> WHERE DID THIS TAKE PLACE?

TIM KITTLESON>> AT THE ROOSEVELT HOTEL. THEY WERE AT THE BILTMORE FOR A COUPLE OF YEARS.

JESS>> THIS WAS "NEWS OF THE DAY". WAS THAT ALSO HEARST?

TIM KITTLESON>> YES. THE NAME CHANGED ABOUT FOUR TIMES.

[FILM CLIP]

JESS>> JAMES CAGNEY, AM I RIGHT?

TIM KITTLESON>> YEP.

JESS>> RIGHT IN THE MIDST OF WORLD WAR II.

VAL>> WOW. ACTUALLY, I JUST RENTED THAT A FEW MONTHS AGO. IT WAS A GREAT MOVIE, GREAT MOVIE.

TIM KITTLESON>> IT WAS A WONDERFUL FILM.

VAL>> SO IS THERE ANY WAY TO PUT A DOLLAR VALUE ON WHAT YOU'VE GOT?

TIM KITTLESON>> THE WHOLE COLLECTION?

VAL>> YEAH.

TIM KITTLESON>> NO, IT'S PRICELESS. WE HAVE OVER 85,000 MOTION PICTURES, OVER 200,000 TELEVISION BROADCASTS AND THEN THE HEARST METROTONE NEWSREEL COLLECTION.

JESS>> WE WISH WE COULD SEE MORE. YOU CAN SEE HIGHLIGHTS FROM THE NEWSREEL COLLECTION FOR YOURSELF TOMORROW NIGHT AT THE ELEVENTH FESTIVAL OF PRESERVATION AT THE UCLA FILM AND TELEVISION ARCHIVE. FOR MORE INFORMATION ON THAT PROGRAM OR FOR THE ENTIRE FESTIVAL, LOG ONTO WWW.CINEMA.UCLA.EDU OR CALL THE PHONE NUMBER ON YOUR SCREEN. THE FESTIVAL RUNS THROUGH AUGUST 24.

[310-206-FILM]

VAL>> LOOKS FANTASTIC. THANK YOU SO MUCH FOR COMING. THAT'S OUR PROGRAM FOR TONIGHT. A REMINDER THAT YOU CAN GO TO WWW.KCET.ORG FOR FREE TRANSCRIPTS OR STREAMING AUDIO OF LIFE AND TIMES.

JESS>> THANK YOU FOR JOINING US, AND GOODNIGHT FROM ALL OF US HERE AT LIFE AND TIMES.

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