By Stuart Gorin
Washington File Special Correspondent

Washington -- Massachusetts Senator John Kerry captured the first stage in the long race to determine the 2004 Democratic presidential nominee January 19 by winning 38 percent of the votes cast in the Iowa precinct caucuses.

With this "Iowa bounce," Kerry has momentum going into the nation's first primary election, January 27 in New Hampshire.

Most political observers also note that North Carolina Senator John Edwards gained politically with his strong 32 percent of the vote in second place, and former Vermont Governor Howard Dean, the third-place finisher with 18 percent, lost momentum.

Just hours before the caucuses, pollsters said the race was too close to call among those three and Missouri Congressman Dick Gephardt. A disappointed Gephardt, who came in fourth with just 11 percent of the vote, is ending his presidential aspiration and dropping out of the race. He has stated that he would support the eventual Democratic nominee.

Another Democrat on the ballot who was not a factor with just one percent of the vote was Ohio Congressman Dennis Kucinich.

State officials said turnout for the caucuses exceeded 100,000, which was high but not the record. In 1988, there were 126,000 attendees.

Entrance polls taken by news organizations indicated that 40 percent of voters waited until the last week to make up their minds on who to support.

According to veteran political observer Morton Kondracke, the Iowa voting was "strategic," as citizens supported candidates they believed could beat President George W. Bush, the expected Republican nominee. Republican National Committee chairman Ed Gillespie said that while whomever the Democrats nominate will be a strong challenger, it won't matter who that will be and the president is prepared to run on his record.

Earlier in the year, Kerry was considered the Democratic favorite to challenge Bush's reelection bid. Kerry then faded in public opinion polls as Dean moved up to the front-runner position, but the Massachusetts senator started to climb again in Iowa as the battle between Dean and Gephardt turned negative with personal attacks in televison ads and on the campaign trail, and citizens were turned off.

As he campaigned furiously throughout Iowa, Kerry had the support of his Massachusetts colleague, Senator Ted Kennedy, a popular figure among Democratic voters. The bounce enabled the self-proclaimed "Comeback Kerry" to tell his cheering supporters he intends to "give America back its soul."

Dean, who also campaigned intensively in the state, brought in several thousand activist volunteers in his unsuccessful effort. The former Vermont governor stressed an anti-Iraq war theme in his speeches and that resonated well in the early days. But as political observer Michael Barone pointed out, the recent capture of former Iraqi leader Saddam Hussein undermined Dean's message.

Still, Dean pledged to continue his challenge and tried to put a positive spin on his third-place finish. In 1988, Republican George H.W. Bush and Democrat Michael Dukakis each finished third in their respective Iowa caucuses and both went on to win their parties' presidential nominations.

While most states hold primary elections to choose their convention delegates and determine candidates' popularity, Iowa is one of a few that uses the caucus system. It is part of the fabric of Iowa politics, dating back to 1846, when Iowa gained statehood. Iowa will send 56 delegates to the Democratic National Convention.

At each of the 1,993 precincts in the state, on the Democratic side a candidate needed to win the support of at least 15 percent of those in attendance in order to be viable. On the Republican side, where the Democrats' 15-percent rule does not apply, things were much more quiet as Bush did not have any primary opposition.

On January 13, Washington, D.C. held a non-binding Democrat primary which city leaders organized to be first in the nation. Most of the presidential candidates opted out of the popularity race however, in deference to the traditional roles played by Iowa and New Hampshire in the process. The District's 39 national convention delegates will be apportioned later in the year at a caucus.

Dean had a symbolic victory in Washington, gaining 43 percent of the vote, but only eight percent of registered voters showed up at the polls. The Reverend Al Sharpton came in second with 34 percent and former Illinois Senator and Ambassador Carol Moseley Braun was a distant third. Shortly before the Iowa caucuses, Moseley Braun, whose campaign never got off the ground due to debt and organizational difficulties, dropped out of the race, throwing her support to Dean.

The January 27 New Hampshire primary will be the next stop on the campaign trail. Joining the other Democratic hopefuls for the state's 27 convention delegates will be former Army General Wesley Clark, Connecticut Senator Joseph Lieberman and Sharpton, all of whom elected not to compete in Iowa.