this is the "cbs evening news" with scott pelley. >> pelley: good evening. late today, the poison spreading in one of the world's largest media empires reached america. the c.e.o. of dow jones, publisher of america's largest newspaper, the "wall street journal," has resigned. less hinton is one of two top executives forced out of rupert murdoch's news corporation today. murdoch owns the "journal," fox television, and many other networks and newspapers all around the world. it was sleazy reporting techniques by a murdoch-owned british tabloid covering the disappearance of a 13-year-old girl that triggered the cascading scandal. we have reports tonight from both sides of the atlantic. first, liz palmer in london. >> reporter: yes, scott, for the last ten days people in this country have been talking about little else, and today we saw the murdoch damage control effort really kick into high gear. a mob of reporters fought to see firsthand the tycoon humbled. >> if you'll just keep silent for a minute. i want to say it was a totally private meeting. >> did you apologize? >> of course i did. of course i did. i'm the founder of the company. i was appalled to find out what had happened. >> reporter: rupert murdoch had just met the family of milley dowler, the murdered teenager whose cell phone lies at the heart of this scandal. in 2002, her voice mail was hacked by murdoch journalists, they listened to and deleted messages which give milley's parents false hope that she was still alive. afterwards, the dowler family lawyer said the meeting had been more than just a p.r. gesture. >> yes, he did apologize. he apologized many times. i don't think somebody could have held their head in their hands so many times to say that they were sorry. >> reporter: if so, it's a stunning reversal for a man who just yesterday told the "wall street journal" that his company had handled the crisis extremely well. now he seems to have decided or maybe been advised that stonewalling was just making things worse. so tomorrow, full-page apologies will appear in all of britain's newspapers signed by murdoch saying he's sorry for serious wrongdoing. and his british c.e.o., rebekah brooks, apologized, too. with murdoch's support, she toughed out almost two weeks of angry calls for her resignation. finally today she stepped down. but no display of public remorse by murdoch can stop the investigations under way. nine people have now been arrested, including a reporter and several editors. now, next week, on tuesday, we're going to see rupert murdoch, his son and heir apparent james, and rebekah brooks appear before a parliamentary investigation into hacking as witnesses. of course, the question to them will be "what did you know? did you know what was going on at the paper? and if you didn't, why not?" scott? >> pelley: thanks, liz. news corporation has a value of $41 billion but its stock has plummeted since july 1 when the scandal broke. it has lost $6 billion in market value so far. the resignation of les hinton, the c.e.o. overseeing the "wall street journal," was announced after the market closed today. elaine quijano joins us now the late-breaking developments. >> reporter: scott, people wondered if the scandal overseas would head here. well, today it finally did. les hinton was one of rupert murdoch's most loyal lieutenants, but in the end, his more than 50 years of service to murdoch was not enough to save him. hinton resigned friday as head of dow jones and company, which publishes the "wall street journal" and is part of news corporation's media empire. but it is not his tenure at dow jones that has drawn attention. no one has questioned the reporting of the "wall street journal." instead, it's his 12 years-- from 1995 to 2007-- as chairman of murdoch's news international that's under scrutiny, amid scandalous and possibly criminal reporting tactics, including voice mail hacking by company employees, one of them, andy coleson, who went on to become an aide to the british prime minister. >> i believe absolutely that andy did not have knowledge of what was going on. >> reporter: this may be why hinton is in trouble. in 2007, he told members of a british parliamentary committee he believed only one journalist- - clive goodman-- have been involved in any wrongdoing. >> the police obviously carried out pretty thorough investigations and the result of their investigation was against clive and the private detective. clive went to prison, the "news of the world" paid a substantial amount to charities nominated by prince harry and prince william. >> reporter: jeff jarvis worked for hinton and knows his management style. >> les hinton, i think, was also a very, very loyal executive. and in the end he threw himself on the sword for murdoch. >> reporter: now, as liz palmer just reported, at least nine journalists are being investigated. as for les hinton, in his resignation letter to rupert murdoch, he said he was ignorant of what happened but felt he had to resign anyway. >> pelley: thanks, elaine. for the first time in six days, there was no meeting at the white house today among the leadership trying to find a way to head off a u.s. government default. the president tried one more time today to persuade republicans to raise taxes, and our chief white house correspondent chip reid was there. chip? >> reporter: well, scott, five straight days of meetings failed to produce an agreement, so today the president made one last plea for a grand bargain. >> we have a unique opportunity to do something big. we have a chance to stabilize america's finances for a decade. >> reporter: if the republicans continue to refuse to compromise on taxes, the president said voters will remember in next year's elections. >> i think what the american people are paying attention to is who seems to be trying to get something done? and who seems to be just posturing and trying to score political points? >> reporter: the president said he's willing to put everything on the table, including democratic sacred cows like social security and medicare, even raising the possibility of higher medicare premiums for upper-income seniors. in return, he called on republicans to agree to tax hikes on corporations and wealthy americans as part of a deal to cut deficits by $4 trillion over the next decade. republican speaker john boehner says there is no chance of that. >> there can be no tax hikes because tax hikes destroy jobs. >> reporter: boehner blamed the president for the impasse. >> we ask the president to lead, we ask him to put forward a plan. not a speech, a real plan. >> reporter: with economic catastrophe looming, the president said he's now open to the possibility of what some in congress call plan "b", a deal to raise the debt limit first and work on a debt deal later. >> if washington operates as usual and can't get anything done, let's at least avert armageddon. >> reporter: but it's not clear even that plan can pass the house where conservative freshmen like alan west of florida say it's dead on arrival because it doesn't slash spending. >> like i said, that dog don't hunt. >> reporter: despite obstacles at every turn, the president says he's still hopeful the logjam will break over the weekend. >> i always have hope. don't you remember my campaign? (laughter) >> reporter: the president said he still has hope because of the common sense of the american people. but, scott, with the two sides so deeply divided, it's going to take a lot more than hope and common sense to get a deal. >> pelley: chief white house correspondent chip reid. thanks, chip. you know, a lot of folks have asked us why they're going after medicare and social security to cut spending. well, have a look at this. medicare and medicaid are 21% of the federal budget. social security is 20%. together they're nearly half. add defense at 20% and interest on the debt at 6%, and both democrats and republicans agree that you can't get the savings you need from what's left. two planes go bump in the night. we'll talk to captain sully sullenberger about america's crowded airports. the u.s. gives libya's rebels a big boost today. mark phillips is with them on the front lines. and the children of heroes come to visit the fathers they've lost, when the "cbs evening news" continues. hey, the new guy is loaded with protein! really? 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? 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[ major nutrition ] new ensure high protein. ensure! nutrition in charge! restraining order in one bay area city next on cbs 5 the impact of court layoffs in one bay area city... at 6 >> pelley: as we go about our daily lives, it is all too easy to forget that this country is still fighting two wars. and then a story comes along that grabs us and jolts us back to reality, and reminds us of the extraordinary sacrifice many of our neighbors are making, including the youngest of children. david martin has brought us such a story. >> reporter: children don't belong in graveyards. they're too full of life. but this is a very different graveyard. this is section 60 at arlington national cemetery, where the dead from iraq and afghanistan lie buried. nikki bunting brings her sons connor and cooper here every sunday. >> section 60 is very unique. it's not like any other cemetery you'll ever see. this specific section. there's so many young people, young kids so we kind of try to keep it a joyous place. >> reporter: her husband brian's headstone, like so many in section 60, marks a life cut short, a young family torn apart. but two-year-old cooper is proof life is stronger than death. i'm doing the math on cooper. explain that to me. >> he was our little r&r baby. he's the spitting image of my husband. it's really nice. >> reporter: brian was home on a so-called rest and recreation tour in february of 2009. shortly after he returned to afghanistan, he and three others were killed by a roadside bomber. >> at the time he was killed we didn't know that we were pregnant. so four days after i was notified of his death is when i found out that we were pregnant, so it was just such a miracle. it was the best news i could have ever received. >> reporter: cooper actually took his first step at his father's grave. >> right here, yup. he held on and just stepped. uh-huh, it was amazing. it was absolutely remarkable. i couldn't believe it. >> reporter: connor is old enough to have some memory of his father, and to understand a little bit about what this place means. >> connor calls arlington heaven. so he's obviously a little confused with what's going on. but, you know, if he wants to think this is heaven, that's fine. >> the first time i brought him here, i told him that we were going to visit his dad and he came to the grave and he started knocking and saying, "come out, daddy, i'm here." >> reporter: veronica ortiz's children are a little older. their extended family drives six hours from north carolina to spread out around the grave of her husband, sergeant javier ortiz rivera. what do you get out of bringing your children here? >> um, it's as close as i'm going to get to him. >> reporter: do you think bringing them here helps them deal with it? >> i do. we've been here before where there's other funerals going on. so they know they're not the only ones. they know that they're not the only kids in the world who have gone through what we have. >> reporter: ashley cutsforth drives four hours to bring her infant son sean, jr., to visit his father's grave. >> he was born exactly four months after sean died. >> reporter: you bring him for a reason? >> yeah. i want him to be able to know that his dad's among the best. so i bring him here. >> reporter: sean, jr., doesn't know it yet, but he's been among the best since the moment he was born. >> my husband's entire platoon showed up when he was born. so we had 30 plus soldiers in a delivery room. >> reporter: (laughs) 30 in the delivery room? >> well, as soon as he was born they came right on in. >> reporter: section 60 is surely the most solemn place in america. but children do belong here. their fathers couldn't defy death, but there is no more perfect expression of life than a baby's cry. david martin, cbs news, arlington national cemetery. >> pelley: arlington national cemetery was established near the end of the civil war, but veterans of all of america's wars-- from the revolution to iraq and afghanistan-- are buried there now. more than 300,000 in all. that's the "cbs evening news." for all of us at cbs news all around the world, i'll see you on sunday on "60 minutes." good night. captioning sponsored by cbs captioned by media access group at wgbh access.wgbh.org if you thought the lines were , just wait: the bay justice is going to be delayed. it's going to be denied. no getting around that. >> if you thought the lines were long, just wait. the bay area city where it's about to become almost impossible to pay a traffic ticket. to be honest with you, i don't trust the police. a new crime-fighting tool in the city where the murder rate is spiking. why some people are afraid to call 911. >> tragic story over the years. >> a bay area road so dangerous the chp calls it blood alley. the extra harsh tactics to get drivers it slow down. good evening, i'm ken bastida. >> i'm elizabeth cook. dana and

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