border. >> ifill: and a second mexico story ... an update on the drug violence which has killed hundreds in the last week ... and thousands in the last four years ...ray suarez reports >> plus jeffrey brown tells the story of tap dance great maurice hines passing the torch and tradition to a new generation >> ifill: that's all ahead... on tonight's newshour. major funding for the pbs newshour has been provided by: this is the engine that connects zero emission technologies to breathing a little easier, while taking 4.6 million truckloads off the road every year. bnsf, the engine that connects us. and by the alfred p. sloan foundation. supporting science, technology, and improved economic performance and financial literacy in the 21st century. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. substantial insurance the claims business and people have will be honored. it is important to emphasize this is not a cap. the people of the gulf have my commitment that b.p. will meet its obligations to them. >> kenneth feinberg will oversee the payments. he ran the 9/11 victims' compensation fund and is currently the government's pay-czar, setting salary limits for bailedded out companies. in addition, b.p. upon contribute $100 million to help oil industry workers who have been idled by the federal moratorium on democratsea drilling. after today's talks, the b.p. chairman also announced the oil giant will suspend dividend payments to its shareholders for the rest of the year to ensure it meets commitments to the gulf coast. >> i would like to take this opportunity to apologize to the american people on behalf of all the employees in b.p. many of whom are living on the gulf coast. i hear comment sometimes that large oil companies are greedy companies or don't care. but that is not the case in b.p. we care about the small people. >> woodruff: since the spill began 58 days ago, b.p.'s stock has been hammered down to half its previous value, and in recent days, talk of a claims fund raised new concerns in britain. prime minister david cameron warned today that b.p. sneaded a level of certainty that there won't be claims entertained that are three or four times removed from the oil spill. but president obama's tough talk about b.p. in his televised address last night earned him plaudits from some leading democrats, including senator dick durbin of illinois. >> this president has been very firm and resolute that british petroleum, this oil company, is going to be held responsible for the damage that's been done. it will be at their expense and not at the expense of american taxpayers that we will help the businesses that are affected and do everything within our power to restore the devastation which has occur to the environment. >> woodruff: on the other hand, senate republican leader mirb mcconnell criticized the president for citing the spill in a renewed appeal for energy and climate legislation >> fact that the white house wants to use this crisis as an excuse to push more of its legislate agenda on the american people with the same kind of arguments it used to push health care is really nothing short of startling. >> woodruff: along the gulf coast, reaction to last night's address was decidedly mixed, including this sampling at a marina in southern louisiana. >> in my opinion , he didn't talk enough about stopping the oil. >> he's president, and there's only so much he can do. everything is really in b.p.'s hands. >> woodruff: in the gulf today, b.p. cranked up a new system to burn up to 400,000 gallons of oil a day. the oil burning is part of b.p.'s larger plan to capture or burn 2.2 million gallons a day by the end of the month. that would be roughly 90% of the estimated total flow from the damaged well. bob dudley is managing director of b.p. and one of the company's executives who met with the president earlier today. mr. dudley, thank you for being with us again. >> good evening, judy. >> woodruff: the meeting at the white house today, the president last night used the term "reckless" in speaking of b.p. he earlier talked about wanting to fire your c.e.o., tony hayward. what was the tone of today's discussion. >> judy, the tone today, the president was very direct, expressed his great concern for the people along the gulf coast, and businesses operating in the gulf coast, wants to make it clear his expectations were that b.p. would meet their obligation. we assured him that we would not only meet those obligations. we'd set aside $20 billion, put assets aside to make sure we can meet those obligations and transition the claims process we've set up to an independent claims producer. i think it was a-- it was a good meeting of the mind. it's what people on the gulf coast need and want to hear. it helps us put-- provide some certainty around what we're putting aside to move forward, and it was a very workman-like meeting that lasted about four and a half hours. >> woodruff: just to be clear about this claims fund, this money is not going to be money that is capped. is that right? >> well, that's right. i mean, we have a well that continues to flow in the dwufl, and we're doing everything we can to shut off the flow of that well, but it would not be realistic to say anything can be capped yet. we have a plan to shut that off by august and contain the flow. but what this does is it provides real ashurps for people along the gulf coast that the money will be there to meet these claims. >> woodruff: and give us an example of that. because we understand it does not include cleanup costs. >> well, the fund does not, but b.p. will continue to fund what's called removal costs or cleanup costs out of our own cash flow in addition to the fund. but the majority of what we see of the claims and expense going forward will come out of that fund, so we'll have both. examples out of the fund would, of course, be small businesses, and we started writing checks this week for estimated projections of small-business losses as well as the individual claims we've had in place for some time now. it will include the-- the fund would include state claims that may also come forward. it's a comprehensive fund. it does not-- setting up this esk row account does not preclude anybody else's legal rights to also come forward as well. but it does begin to provide the certainty, both for b.p. in being able to set aside these. we made a very, very difficult decision to stop dividend payments for the rest of the year, including a payment that was to be made on monday to shareholders that we had already promised. that's difficult because people were expecting those payments. but we think we need to do this to ensure we have the funding, the liquidity, and the certainty for the united states and the people of the gulf coast. we will meet our obligations. >> woodruff: the leak itself, we learned yesterday that the amount of oil escaping is much more than originally thought. it's now said to be up to 2.5 million gallons a day. that number has changed so often mr. dudley, how can the american people trust what they're hearing from b.p.? >> well, as the summer has gone on, last month and a half, it's really a government estimate. it's a team of skifts led by the u.s. geological survey, and as we've continued to move forward on these containment devices, new estimates come forward, new data comes forward. we're revising our containment plans on that. it's a range. it's an estimate. and so we're going to respond to that, increasing the size of the containment by the end of the month before we eventually kill this thing in august. >> woodruff: and just briefly, what can you tell us is the latest on how much is being siphoned off or burned off versus how much is still flowing into the gulf. >> well, because we don't know. there's a range on the flow rates. but we have around 16,000 barrels a day coming out of the first containment flow path, and we've start off the second one yesterday. that is up to about 5,000 barrels a day. total, we believe we can capture with this system that's in place now around 28,000 barrels a day. it's hard to say. it ranges now-- its ranges now are higher than that so there will be some additional flow. by the end of the month we're going to build a system that has redundancy up to 80,000 barrels a day, should it be need ed. >> woodruff: congressional hearings yesterday eye know you're aware there was information that came out of those hearings that indicates b.p. took a number of risky shortcuts in building this deep water horizon well. after seeing that information, how can the public believe anything other than that b.p. took risks it should not have? >> i don't know, jude y, this is an investigation of a very complicated action. it's been that way from the beginning. that's lots of conflicting information that comes out. the tone that implies we've many shortcuts that somehow company policy we put in place over the last three years, programs that focus on safety, number one priority for the company. all of us would be deeply disturbed if that were the findings of the investigation. but it's early. it's too early to draw those conclusions and i think it's best the investigators conclude the process. >> woodruff: are you saying what we've seen, coming out of the hearings and e-mails and so forth that you can't already draw a conclusion that risky shortcuts were taken. >> jid, i don't know. circumstantial evidence, you can draw a single conclusion. i think this is a very complicated accident that happened with a series of decisions that were made and equipment failures that have led to this catastrophic combination of things that led not only to a rig burning but then second, an oil spill that -- it's a combination of accidents here. i think we can't draw any conclusion. it's about as complicated an industrial investigation i think i have ever seen. >> woodruff: several of the things i want to ask you about. one is we heard president obama today say b.p. is a strong and viable company. and yet, we also learned today the bank of america has now told its traders not to engage in any long-term trades with b.p. does that not suggest there is concern about the long-term viability of b.p.? >> well, judy, i think that's one of the things that came out of this today. the markets don't like uncertainty. shareholders don't like uncertainty. there's been wide swings in both the share price of b.p. and the cost of its debt, and one of the things that should come out of it today, which is good for the country and good for b.p. is certainty about a stream of cash flows that we will put into this escrow account, and i think that's going to settle things down. that's what we want. that's what the president wants. b.p. is a strong company, and should be able to fund and weather what will be a very large set of claims and liabilities in the u.s. but that was the outcome today. >> woodruff: the last thing i want to ask you about, is the people on the gulf coast. we had two officials, one from louisiana, one of florida , critical of b.p. one said we can't count on b.p. for what we need, the other said b.p. is not protecting our coasts, our shorlz. what do you say to these officials? >> i have been down there and i spent a lot of time on the coast. i've seen the oil on parts of the louisiana shore. i've been in the claims centers. i think people are uncertain. they'd like this well stopped. they'd like it cleaned up. i think the economic concern is clearly there. we've set up 33 of these claims offices across the gulf. this is not our core competency, and yet i spent time speaking with ken feinberg, it will form the infrastructure for the independent claims process. i absolutely understand. i grew up on the gulf coast. i know those beaches down there, and this is a very difficult time for people. and it's very difficult-- a lot of b.p. people live and their families are down there on the gulf coast as well. it's very personal for all of us. >> woodruff: finally, your chairman, mr. sonberg today, at the white house, in speaking to reporters, referred to the people who live in the gulf region as "small people." there's already been reaction to that, people taking offense. how can you-- what do you have to say about that? well, judy, i know how he feels. i know exactly what his intent was. english is his second language. his native language is swede expeditious what he was talking about is small businesses, and he's absolutely understanding of the way people feel. he's on his way to the gulf shortly. i think he just misspoke a little bit, but his intent was very clear. >> woodruff: bob dudley, managing director of b.p., we thank you very much. >> thank you, judy. >> woodruff: we'll get an assessment of how the white house is handling the crisis later in the program. also still to come, harnessing the wind in baja, california. cracking down on drug cartels in mexico, and a tap dancing tradition alive and well. first, with the other news of the day here . >> the monthly u.s. death toll in afghanistan reached 30 when two americans died nay roadside bombing. congress scrutinized president obama's war strategy. senators like ted kaufman of delaware questioned david petraeus about the withdrawal timeline of july , 2011. >> the point at which, again, the term responsible drawdown of the surge forces begins at a rate to be determined by the conditions. >> so it's not whether we're going to draw down. it's the rate determined by the conditions on the ground. >> that's correct. >> there will be no more new introductions of troops. >> that is not the intention right now. i would never rule out coming back and asking for something more. i think that would be irresponsible. >> also today, defense secretary robert gates cautioned against getting overly negative about the afghan war. he said while the current narrative among politicians and the media may be negative that progress is being made. the military in krygyzstan tried to regain control of osh after days of ethnic killing. the death toll grew to 189. at least 1900 others have been wounded but other estimates range far higher. most of the victims were minority uzbeks, and thousands tried to flee but they've been denied entry into uzbekistan and huddling in makeshift camps along the border. the head of a bankrupt u.s. mortgage lender has been indied d.c. unitedded for allegedly a huge fraud against. tarp. he was the chief executive of t.b.w.. he and coconspirators carried out a scheme, part of a failed teempt save their company and a major bank. >> court documents allege mr. farkas and others carried out a massive fraud that resulted in losses of more than $1.9 billion and contributed to the failure of t.b.w., along with colonial bank. one of the 50 largest banks in the united states in 2009. the alleged is stunning in its scale and complexity. >> investigators alerted the u.s. treasury before the money was paid out. the government sponsored mortgage lenders fannie mae and freddie mac will no longer be trade on the new york stock exchange. an announcement today said they're being delisted after their average stock price fell below $1 a share. as for the rest of the wall street, it was a relatively flat day. the dow jones industrial average gained more than four points. the nasdaq rose a fraction of a point. a federal judge in san francisco heard closing arguments today in a landmark challenge to california's ban on gay marriage. two same-sex couples are suing to overturn the proposition 8 ballot measure that voters approved back in 2008. regardless of the outcome, the case is expected to go before an appeals court and will likely reach the u.s. supreme court. those are some of the day's major stories. now back to gwen. >> ifill: the president has received mixed reviews for his handling of what has become an unprecedented and chaotic trang dee with no end or clear solution in sight. he acknowledged as much last night. >> all right this oil spill is the worst environmental disaster america has ever faced. unlike an earthquake or hurricane it's not a single event that does its damage in a matter of minutes or days. it is more like an epidemic, one we will be fighting months and even years sglaen as polls show confidence in the president fading and after today's b.p. apology, does last night's speech and today's announcement represent a pivot point in the ongoing crisis? to explore that question we turn to ellen fitzpatrick from the university of new hampshire. cynthia tucker, and "washington post" columnist michael gerson, former chief speech right for president george w. book. ellen fitzpatrick, i want to start with you. what about the pivot point question, last night and today feel like a pivot point to you? >> i don't think so, gwen, in the sense that it may be a pivot point in president obama's handling of the crisis. i think his follow-up today and the arrangements he's made with british petroleum are very important to secure the promises he made last night but many previous presidents have had to deal with absolutely terrible environmental disasters, and visually all of them have suffered and struggled with the same kinds of responses, the frustration, the anger that president obama is facing today. and he is proceeding, it seems to me, and nv a constructive manner as have most of these presidents attempted to. >> give me an example, ellen, of what you mean when you say other presidents have dealt with disasters like this. >> we could go back to the 1930s and look at the drought , the devastated that country, that franklin roosevelt had to cope with, and what struck me in president obama's speech last night was how much his plan resembled the three r.s of the new deal-- relief, recovery, and reform, which is what president roosevelt attempted to carry out as well. in 1969, a week after his inauguration, president nixon faced an oil spill off the coast of california near santa barbara that ultimately led to the creation of the environmental protection agency . 20 years later, george herbert walker bush faced the exxon "valdez" crisis in which his response was widely condemned as late and lame and that also led him to pursue regulatory reforms as well. so this is not new by any means. >> michael gerson, you were working for george w. bush when he had to deliver these big kind of oval office speech moments. how did last night compare? how does the entire handling of this compare? >> well, i was a little bit concerned about last night. using the oval office as a setting as a high-rofile setting that spotlights the presidenciy. in the past you had john kennedy announcing a quarantine of cuba. and last night, the president seemed much more passive, much more input-oriented, he announced a czar. he announced a commission. when i was -- you know in the white house, we viewed these things as fairly weak policy inputs. you always want to push back, do something more active, more executive oriented as far as action are concerned. i thought proot had a pretty bad day yesterday, although actually a pretty good day today. i think the b.p. announcement was a good follow-up to the speech, but the speech itself was quite weak. >> when you were working for president bush you were the author of the speech delivered during katrina which was also widely-- how shall i say-- not embraced? how do the two compare from the inside and the outside? >> well, they compare-- i think in a lot of ways. the reality is, during that process, for example, we had people within the bureaucracy proposing a commission to study the problem. i pushed back hard against that. presidents don't go on national television at-- in an evening address to the nation and announce co