it was chaired by george schultz. and i became the second executive director on that construction and collective bargaining commission in 1970 and moved to the labor department. but by 1970, inflation was not improving. wage increases were still very high. and congress passed the economic stabilization act of 1970 which gave the president the authority to impose wage and price controls. no one ever thought that richard nixon would impose -- use that authority to impose controls. he was strongly opposed to wage and price controls. and spoke about that frequently. but this was a political move to make inflation an shp in the -- an issue in the next election. the democratic congress could say the president had the authority to do something about inflation. and he didn't do it. well, the construction -- at the same time, the leaders -- the national leaders of the construction unions were very concerned about inflation. very concerned about these large wage increases in construction. as were the unionized contractors. but

the worst villain is schultz. he does add mir mcqueary saying he grabbed the boy's genitals, sandusky, dhaz normal behavior? not only that, schultz admits he knew about the original incident in 1998, and now he knows about an incident in 2002. c'mon, two incidents against the same person in four years? you don't put it together? you don't ask yourself if there is something disturbing. >> tell the viewers who schultz is again. >> gary schultz is the executive vice president at penn state, who was in charge of the police. that's why he would have been in on the meetings, and mcqueary says, i thought i was going to the police, and schultz, in fact he's a d.a. in charge of the police. as i say, he knows about two incidents, not just one. he knows 1998, where no charges were filed, then he hears about this in 2002. >> so schultz knew about the '98 case, when he hears this about the guy grabbing the genitals, he not only hears something that i don't know how he considers it normal, but he also knows there's a history wi

and that schultz did all of his performance evaluations that schultz was the head of the university police, and that he, too, had investigated another report against sandusky being involved with a young boy in some sort of inappropriate behavior in the shower in 1998 and that schultz was involved in that investigation but he did not hear from schultz about this 2002 allegation. so by all accounts, schultz was the head of the university police. >> being the head of the university police, what are they alleging that he has done? i mean that he has made misstatements or that he dropped the ball and could have done more here? >> what they are alleging is that gary schultz as the head of the university police did not report the 2002 mcqueary allegations to the police department, to the university police department, nor did he report it to the district attorney's office. and they're also saying that he then lied in front of the grand jury about what was told to him about these sexual abuse allegations against jerry sandusky. so very serious charges against schultz. remember, today it was

mocked schultz. so schultz has criticized cooper saying is he kicking his butt in the ratings which is not true. the key demo category the two are just about tied. anyway, to the amusement of some, cooper addressed the situation on the air. >> just for reference, let's take a look at some of the other people who made gq's 25 least influential list. there is paul riser. princess beatrice the guy who predicted the rapture was going to happen this year and tila tequila. i wasn't going to say anything about mr. schultz's odd outburst about me. because this is probably the kind of thing ed schultz lives for. when you have less than sense of humor than the end of the world guy and less logic and strength that quilla. to welcome both you and your ass kicking to the ridiculous. >> bill: or whatever. one footnote i learned the hard way with al franken if you give gutter snipes publicity, they win. check 2. amazing conclusion to our auction for the wounded warrior project, this poster signed by the five living

police, because schultz oversaw the campus police. again, nothing happened. the grand jury found mcqueary a reliable witness. they called portion of curley and schultz's accounts not credible. they're now facing charges of perjury and failure to report abuse. and that's what today's hearing was about. at the end of it, the judge concluded there is enough evidence to go forward with a trial. hln's mike galanos was inside the courtroom. he joins us now. mike, what was mcqueary's demeanor like on the witness stand? >> reporter: you know, anderson, in a case like this, we've talked so much about mike mcqueary, so i watched him as he walked into that courtroom. because jerry sandusky was the same way a couple of days ago. you watch his every move. same with mcqueary, he's a big guy, about 6'4". he had this demeanor, took a deep breath, walked up to the stand. he was ready to tell his story. i thought he was very credible and very succinct in what he had to say, and very detailed, which makes him even more credible. >> and what kind of resp

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mcqueary claims he told schultz when he saw thinking that schultz would know what to do because schultz was in charge of campus police. sandusky is charged with 52 counts for allegedly abusing boys over 15 years. he waived his preliminary hearing tuesday. >> we waive the opportunity to present our side. we couldn't do that today. reporter: mcqueary has not been charged in the case but has been put on leave by the university. we're going to bring in legal analyst joe camaratta for some perspective here. it seemed like mike mcqueary described the shower scene differently to different people. so there are some inconsistencies in his story. >> that's true. the grand jury reported that mcqueary told them that sandusky was engaged in anal intercourse with this young boy. there's another report of a friend of mcqueary's father, a doctor, who testified before the grand jury that said mike came and told bus it, but i didn't think there -- told us about it, but i didn't think there was anything of a sexual nature. otherwise i would have reported it. >> how much does it help the against? >> it hel

police, because schultz oversaw the campus police. again, nothing happened. the grand jury found mcqueary a reliable witness. they called portions of curley and schultz's accounts not credible. they're now facing charges of perjury and failure to report abuse. and that's what today's hearing was about. at the end of it, the judge concluded there is enough evidence to go forward with a trial. hln's mike galanos was inside the courtroom. he joins us now. mike, what was mcqueary's demeanor like on the witness stand? >> reporter: you know, anderson, in a case like this, we've talked so much about mike mcqueary, so i watched him as he walked into that courtroom. because jerry sandusky was the same way a couple of days ago. you watch his every move. same with mcqueary, he's a big guy, about 6'4". he had this demeanor, took a deep breath, walked up to the stand. he was ready to tell his story. i thought he was very credible and very succinct in what he had to say, and very detailed, which makes him even more credible. >> and what kind of res

gary schultz and athletic director tim curley who denied charges they lied to authorities. again tonight fair warning, this is tough material. the whole case has been that way from the start. we begin tonight with our national investigative correspondent michael isikoff from state college, pennsylvania. >> reporter: once the starting penn state quarterback, now a star witness for the government, mike mcqueary took the witness stand today and graphically described seeing a naked jerry sandusky engaged in what he called extreme sexual activity with a young boy. "the boy was up against the wall" mcqueary testified. "jerry was directly behind him in a very, very close position. i believe jerry was sexually molesting him." mcqueary slammed his locker door shut, causing sandusky and the boy to separate and look him directly in the eye. mcqueary's testimony is key for the case against two former penn state officials, athletic director tim curley and senior vice president gary schultz, both charged with lying about what mcqueary told them about the incident and failing to report it

former penn state athletic director tim curley and former university vice president gary schultz are also at that hearing. they are facing one charge each of failure to report child abuse and perjury. nbc's michelle fran zen joins me now from harrisburg, pennsylvania, michelle, explain the testimony. we want to warn everybody, this is very difficult to hear, but explain what we were hearing from mike mcqueary this morning. >> well, it is, thomas, very graphic testimony, as you mentioned, from assistant football coach mike mcqueary, who back in 2002, was a graduate assistant at penn state. and what he told the grand jury in testimony, he was telling prosecutors today in detail about what he saw and what he said he heard on that day, accusing sandusky of molesting a boy in a penn state locker room, going into detail about how he had heard noises in the locker room and how he had looked in a mirror and saw sandusky with a boy he is under cross-examination right now from schultz and curley's lawyers. of course, the crux of this care the key witness, mcqueer ray a lot of his testimony, pe

noting schultz's position, "i thought i was talking to the police." late today judge william wenner ruled the testimony from mcqueary and others was enough to take the case to trial. >> we're joined by savannah guthrie, our nbc news chief legal correspondent, and other than the gross alleged details in this case, what changed materially today? >> well i think we really saw what may turn out to be some of the most powerful evidence against not these two penn state officials, them, of course, but also, jerry sandusky. it is so rare in a sexual assault case to have an eyewitness to an alleged crime and that's what mcqueary says he is. so we saw here he is giving a very vivid, detailed narrative. i would make one caution which this is the early stage, just the preliminary hearing. prosecutors only had to put on the barest of evidence to establish probable cause for the charges to go forward and defense attorneys were somewhat limited in their cross-examination, so we haven't really seen the full throttle attack on the testimony mcqueary gave that we will

tim curley and gary schultz are arrived at court this morning in harrisburg, facing perjury charges connected to the jerry sandusky de child sex abuse case. the former penn state athletic director and vice president are accused of lying to the grand jury, telling them that assistant football coach mike mcqueary did not inform them he witnessed sandusky having sex with a boy in a locker room shower in 2002. prosecutors' first witness today, mcqueary who appeared calm on the stand as he described in graphic detail what he saw and heard in the locker room that day. he said he first heard noises coming from the shower, looked in the mirror, saw sandusky behind the boy but he went on to tell the court, "i believe jersey -- i believe jerry was molesting him." his testimony is being contradicted by another grand jury witness, a family friend who said that on the night of the alleged abuse, mcqueary told him he only heard noises. the assistant coach told prosecutors he was shocked by what he saw and called his father for advice. he said his next call was to penn state head football coach jo

debbie wasserman-schultz was on with gretchen carlson on "fox and friends." she said the economy is better off. she said this. i said no, they are not by any nature what debbie wasserman schultz said. it's false. they are doing that. the other thing is smearing and besmirching and character assassination. that is their strategy. they can't run on their record. can they be success to feel pull it off? i don't see how the strategy could work? >> no. core strategy for 2012. no candidate defended obamacare or said the stimulus was good. there is one important thing going on now. our candidates are getting vetted. i use this metaphor at the end of the last shore. you grimaceed but is it the right metaphor. you had eight and you sprayed them all with roach spray. herman cain couldn't handle it. somebody else dropped out. tim pawlenty dropped out. the one that will emerge, the one that will survive is the one that is immune. the one that can't be hit with negatives. >>sean: newt? >> newt or romney certainly and see who he decides the roach spray the best. that is wh

that's a reference to schultz. what strikes me, kathleen and buzz, we have confirmation that schultz was in the loop in the 1998 incident that was not prosecuted by a local d.a. albeit he didn't know much about it but he was in the loop. it's 2002 when mcquery tells him about having seen the conduct in the shower. my point is a fog horn should have sounded at that point. it was four years after that first incident. you'd think schultz would have said, my god, it's sandusky again. instead, six more years go off the clock, all awhile more abuse is taking place. that's what i find significant. buzz, how about you, from friday, what was striking? >> that certainly was striking. i thought mcquery was an incredibly credible witness despite everything before. what was really intriging and disturbing to me actually were the notes of grand jury testimony read into the record, particularly from paterno. i found it fascinating that his first reaction to what mcquery told him which was clearly extremely sexual in nature, that'

curley was placed on leave and schultz returned to retirement. our scott broom is in harrisburg, apartment for today's proceedings and -- pennsylvania for today's proceedings and he'll have the latest at 9news now at 5:00 p.m. >>> the court-martial began today for army private bradley manning. manning is accused of engineering the massive wikileaks release of classified documents. his court-martial is being held in fort meade, maryland. this morning the defense asked the military judge hearing the case to remove himself because military judge lieutenant almonzo also is a prosecuting attorney in the federal case against wikileaks. manning is accused of -- manning is accused of downloading classified documents on iraq and then handing them over to the website. he could face life in prison if convicted. >>> authorities on the eastern shore of virginia are investigating how five people died in a trailer. sheriffs were called to a road in the county yesterday evening for a report of an attempted suicide. when deputies arrived, they found the five bodi

schultz called the encounter horseplay. neither man thought a crime had been committed, both admitting he was investigated four years before for another incident in the showers with a boy. >> if there are inconsistent statements and someone can produce them, i'm sure the witness will be confronted and he'll have to answer about them. we'll see what happens. >> the judge ruled swiftly. finding there is more than enough evidence to take these two administrators accused of not doing enough and then lying about it to trial. in harrisburg, scott broom, 9news now. >> and right now, the u.s. senate is debating a bill that would fund the government through next year and avoid the dreaded government shutdown. the house passed a trillion dollar plan earlier this afternoon and the senate leadership says senators will follow suit. with that done, lawmakers are focusing on extending that payroll tax cut and unemployment benefits. the two parties are divided and republicans insist on including language that would require approval for the

the hearing for curley and vice president gary schultz. remember, there was a report of abuse by sandusky that was investigated by penn state police and referred to a local d.a. back in 1998. the d.a. declined to prosecute. four years later is when mcqueary saw something in the showers. he told the athletic director about it and the vice president in charge of campus police. a man who was in the loop on the claim four years prior. no matter how mcqueary described it, you'd think a foghorn would have gone off, alarm bells would have sounded and an investigation launched at the time that he brought this to their attention in 2002. but that's not what happened. instead, six more years passed and it wasn't an adult who brought this to an end. it was a young man who had been victimized. he's paid a price for his courage and as "the patriot news" newspaper said this weekend, regarding victim number 1, his story gave others the strength to come forward to share their stories with authorities. together, their testimonies have built a mountain of e

prosecutors say tim curley and gary schultz lied to the grand jury about what mcqueary told them. >> most 6 or 7-year-olds understand what it is to tell the truth or lie. >> reporter: legal experts say mcqueary's testimony today was convincing and damaging. >> the only question is what he described to curley and schultz. did he describe something that was necessarily a sexual act? >> reporter: curley and schultz's lawyers maintain their clients were not told by mcqueary about the sexual details. >> had he heard from mike mcqueary that this boy in the shower was being in any way sexually assaulted or there was serious sexual conduct, he would have remembered that. >> reporter: mcqueary is facing criticism he didn't do enough to stop the abuse. mcqueary said he was shocked and distraught and turned to his father for advice but did not go to police. instead, he met with head football coach joe paterno and testified he conveyed to paterno what he saw. in a written statement read in court, paterno said mcqueary told him he saw an older person fondling a young person and identified the man

schultze, who was part of the original work. before we get to that, i want to introduce the current principal, martin gomez. this high school is named after one of san francisco's own labor champions, and john o'connell. i want to introduce to you the man leading the academic work in collaboration with all the wonderful teachers here at john o'connell high school. [applause] >> it is a lot more full than it was five minutes ago. as principal, i want to welcome everyone to this event. it is important, not only for o'connell students, but all of san francisco. the district is making a push to include, improve, and pushed toward education. today, we are here to celebrate another reason of how o'connell is supporting and encouraging all students to be prepared for college and for a career. while some people are spending their time looking at what students are going to college, which are going to a career, with this new tech 21 program, the courses will support students to be prepared for a career, and for college. that is the differ

why curly and schultz are being charged with perjury. this is a little complicated. i want to run through it. it goes back to what each told the grand jury. mcqueary says he told then athletic director tim curley and then administrator schultz he witnessed sandusky raping a boy in the shower. curley testified mcqueary only reported inappropriate conduct that made him uncomfortable. nothing more than horsing around. schultz then testified that there was inappropriate sexual conduct, groping essentially, but no sex. he also said the allegations made were not that serious and that he had no indication a crime occurred. we're hearing lots of different stories here. first of all, how common is a case like this, and is there a case here? >> it's very, very uncommon to see perjury charges lodged against anybody. i mean, we always hear about it on television. do you know that you're under oath? do you know what the penalties for perjury are? you always see that scene in a cross-examination in all of the tv shows. in truth, few lawyers have seen a perjury case. they're hard t

they didn't believe curley and schultz. so they may well have other evidence that supports mcquery's version of events. it's also worth pointing out dr. dranoff, the individual whose testimony is key here, also has his own self-interest in not saying he heard that sandusky was seen doing this because then he would have had an obligation to report it as well. >> we'll get this in court under oath. thank you, michael isikoff and buzz bissinger. >>> let me finish with the deal with the devil the republicans are on the verge of striking. you know what i'm talking about. [ female announcer ] that's the all-natural sugar she puts on her grapefruit. but is she eating sugar this week? maybe she wants the all natural, zero calorie stuff. but if you're wrong, you're insinuating she's fat. save yourself. it's only natural. with less chronic low back pain. imagine living your life with less chronic osteoarthritis pain. imagine you, with less pain. cymbalta can help. cymbalta is a non-narcotic treatment that's fda-approved to manage chr

you'd think that schultz would have said, my god, it's sandusky again. instead, six more years go off the clock, all the while, presumably, more abuse is taking place. that's what i found to be significant. buzz, how about you? from friday, what was striking? >> well, i mean, that certainly was striking. i thought mcqueary was an incredibly credible witness, despite all this dragged before. but what was really intriguing and disturbing to me, actually, were the notes of grand jury testimony read into the record, particularly from paterno. i find it fascinating that his first reaction to what mcqueary told him, which was clearly extremely sexual in nature, that's what mcqueary says, joe's first reaction is, look, there's not much i can do. he doesn't work for me anymore. and that seems to me it's really now a liability issue. it's a legal issue. he waits a day, because it's a saturday. doesn't want to disturb anyone on a weekend. says he wants to think about it. think about what? think about what? think about the fact that a former coach former coach has

are those two -- are curley and schultz going to be held for trial on friday? definitely. what puzzles me is why the prosecution would put on the victims. it's a very dangerous strategy. it is unnecessary because it gives the defense attorney another shot to drive a hole through their credibility. i don't know why they're doing it. >> let me ask you about paterno. do you have confidence he got a clear account of this horror? in the first instance? >> you know, we don't know. we don't know. we know what paterno said. he said it was something of a sexual nature. it may have been fondling, it may have been horseplay. i still find it hard to believe that if mcquery is telling the truth, i believe he is, that he wouldn't have said to joe, joe, you won't believe what i saw. >> but he didn't see it according to what he told his relatives, buzz. he says, we're getting this account in the first instance he didn't tell an eyewitness account. he wasn't an eyewitness. he was sort of an eyewitness but didn't see the rape, if you will, itself. let me go to mike on this. what do we know

they didn't believe curley and schultz. they may well have other evidence that supports mcqueary's version of events. it's also worth pointing out that dr. drainoff, the individual whose testimony is key here, also has his own self-interest in not saying that he heard that sandusky was seen doing this because then he would have had an obligation in this as well. >> thank you very much michael and buzz. >>> when we return, a faustan deal with the deal. you're watching "hardball" only on msnbc. ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. [ whooping ] ♪ it was the

two of them, curley as well as gary schultz. testimony here and riveting and graphic detail and 0 disturbing. >> due to the fact that a lot of people are sending out the tweet that according to what's being read in court, paterno said he knew sandusky had done something inappropriate with the child. is that a part of what we heard today? >> i think what's being read is paterno said he was made aware that mcqueary had said he had witnessed something inappropriate. he told mcqueary he would tell the appropriate people and the right people i believe is what was read in court. according to the deposition and he indeed told the court in that grand jury report he did tell tim curley at the time that mcqueary witnessed something that he felt was inappropriate. >> thank you very much. i know this is all happening in court and we are trying to get the information as it is being made available and again the details are so graphic from mike mcqueary and interesting information on what he told the grand jury. more breaking news out of iraq.

i don't really know who ed schultz is. i think i met him once in passing years ago, but i have never actually seen his show. i'm told he yells a lot, and i know he works at msnbc and i know he's moved around in various time slots. that is it. okay, also, writing this today i also found out that he makes a lot of inappropriate comments about other people that he then has to apologize for and/or get suspended for like this one from his radio show. >> do you know what they're talking about like this right-wing slut, what's her name, laura ingraham? yeah she's a talk slut. >> "gq" has written a satirical list of the 25 least influential people alive. he made the list. "do you watch the ed show on msnbc? of course you don't. no one does. the only reason people watch the ed show is they're working out in a hotel gym they can't find a staff member to change the channel to espn." why anyone, anyone would care what someone says about them in a humor column in "gq," i cannot understand. apparently he has a thin skin for because he t