Caught in The Cross Fire

By Richard Zoglin

Shuttling between hot spots in the Middle East for the past three weeks, CBS News anchorman Dan Rather has been just where he likes to be: at the center of the action. But last week he missed a big story back on his home turf. In another spasm of turmoil at the angst-ridden House of Murrow, CBS News president David Burke, 54, was forced to resign after two years on the job. Eric Ober, 48, a 24-year veteran of CBS who currently runs the five local stations that the network owns, will become the fourth news president since Laurence Tisch took over the network four years ago. Although CBS executives denied that Burke was ousted because of budget disputes, the move appeared to mark another chapter in the continuing struggle between CBS News and its cost- conscious corporate chiefs.

Burke, who had been an aide to Senator Edward Kennedy and the right hand to Roone Arledge at ABC News, was respected by CBS colleagues for his intelligence and integrity, and for fighting to boost CBS News' presence in prime time with new shows like 48 Hours. "I think he did an extremely good job there," says Arledge. "A lot of the problems he inherited he did a great job of fixing."

But there were problems he couldn't fix. The CBS Evening News has tumbled in the ratings from first place into a battle with NBC to stay out of last. CBS This Morning floundered at No. 3 despite Burke's decision, in a move that took his corporate overseers by surprise, to replace Kathleen Sullivan with Paula Zahn. High expectations for a new prime-time show, Face to Face with Connie Chung, were dashed when Chung decided to cut back on her workload in an effort to conceive a child, forcing CBS to pull the show from its fall schedule.

Burke alienated many at CBS News with his aloof management style. He also drew a barrage of in-house criticism last January for his suspension of Andy Rooney after the 60 Minutes commentator made remarks that were offensive to blacks and gays. Burke was forced to reinstate Rooney after just three weeks, a turnabout that was seen as a blow to his autonomy.

But his downfall, according to insiders, can be traced primarily to his tense relationship with his corporate superiors, particularly over their growing pressure to cut costs. The timing of his resignation led some to speculate that the network chiefs were unhappy about Rather & Co.'s $1 million-a-week road show in the Persian Gulf. Despite some scoops (including the first videotaped interview with U.S. hostages in Baghdad), Rather was upstaged by ABC's Ted Koppel, who beat him into Iraq. Nor has Rather's globe- trotting improved the ratings: the CBS Evening News has been No. 3 for the past three weeks. Broadcast-group president Howard Stringer insisted that the costly Iraq coverage was not a factor in Burke's ouster. "I have not had a | single discussion with the news division about the cost of the Iraq coverage," he said. "The footage Dan got from Baghdad was worth its weight in gold." He also denied the reports of impending budget cuts, asserting that the network's news budget would increase this year.

Some CBS News veterans are fearful that Ober, who is close to Tisch, will enforce a more aggressive bottom-line approach. But most staffers are relieved that a familiar and generally well-liked executive has taken over. "The corporate bosses didn't feel comfortable with Burke," said one well-placed insider. "We're better off with someone who has a good relationship with them." Don Hewitt, executive producer of 60 Minutes (which Ober oversaw during a stint as vice president of public-affairs broadcasts), was among those praising Ober. "Maybe he's the guy who can steady the horse," he said.

While denying that major cutbacks are in the offing, Ober indicated that saving money will be on his mind. "Is there an opportunity to operate less expensively in some areas? Sure," he said. But he gave a strong vote of confidence to the network's all-out coverage of the gulf crisis. "Covering Iraq is an expensive proposition, and it will continue to be an expensive proposition. We're not going to back off the coverage." At the weekend, Rather was still the only network anchor broadcasting from the Middle East.

CBS sources say, however, that Rather may ultimately be a loser in the shake-up. He and Ober are reportedly not close, and the anchorman may find his power reduced. Both principals disputed that notion last week. "I am an Eric Ober fan and have a great relationship with him," said Rather from Amman. Ober, meanwhile, praised Rather as a "consummate journalist and a great anchorman" and said no major revamping of the CBS Evening News is being planned. But one thing is certain: when Rather returns to the office, he will find himself still in the cross fire.

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CREDIT: TIME Chart

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With reporting by James Wilde/Amman and Linda Williams/New York