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CNN Sunday Morning

Crude Reality of Gas Prices; Rice to Go on '60 Minutes'

Aired March 28, 2004 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


FREDRICKA WHITFIELD, CNN ANCHOR: Now, the prices keep going up at the pump, but is there an end in sight? We'll take a look at the crude reality of gas prices, coming up.
And just imagine how much it would cost to fill up this tank. What is it, and where is it going? When we come right back.

(COMMERCIAL BREAK)

CATHERINE CALLAWAY, CNN ANCHOR: Well, the high price of winning in the Major Leagues has the Yankees looking for nothing short of a championship. Hello everyone, and welcome back to this final half hour of "CNN SUNDAY MORNING." We have that story for you coming up. I'm Catherine Callaway.

WHITFIELD: And I'm Fredricka Whitfield. First, let's look at what's happening at this hour.

National Security Adviser Condoleezza Rice appears in a "60 Minutes" interview tonight defending the administration's handling of terror threats. John Kerry says if Rice has time to go on national television, she should find time to testify publicly, under oath, before the 9/11 commission.

A strong earthquake shaked eastern Turkey today, injuring at least a dozen people. The quake, with a magnitude of 5.3, brought down dozens of homes and other buildings. Ten people were killed by a quake in the same area, just days ago.

A huge storm lashes the coast of southern Brazil, killing two people. At least 30 others are injured and hundreds of homes destroyed. The U.S. National Hurricane Center says it was Category One hurricane, making it the first ever spotted in the south Atlantic. Brazilian scientists say the winds weren't strong enough to classify as a hurricane.

CALLAWAY: Well, if you feel like your gas pains are getting worse, it's not your imagination.

That was very clever, wasn't it?

We told you last week to expect prices at the pumps to reach record levels. Well, that's exactly what happened. Nationwide, the average price of a gallon of regular hit a record $1.74 a gallon Tuesday. AAA says the prices did inch down a little as the week wore on. That's the good news. The Department of Energy warns a gallon of regular could reach an average $1.83 a gallon some time next month. That is the bad news.

All right. Here is some more news for you. It is still a lot less than the inflation adjusted price of $2.94 a gallon, which of course was set back in 1981.

And so, what's going on, you ask? Why the big jump in prices? Everybody blames the oil industry. And to find out if that's true and to find the source of these spiraling prices you're paying at the pump, we turn to the senior editor of "Energy Intelligence," Karen Matusic, joining us from our bureau in Washington this morning. Thanks for being with us.

KAREN MATUSIC, SENIOR EDITOR, "ENERGY INTELLIGENCE": No problem.

CALLAWAY: Three issues here that play into this, as far as I know. You're here to set us straight, I guess. But you've got the crude oil, which is regulated by OPEC, refinery prices, and then you have all the new environmental regulations.

Let's start with OPEC and crude oil. Are they really to blame, and what is going to happen to this proposal by OPEC to cut output by something like a billion barrels a day, supposed to start April first? What is that going to do to costs?

MATUSIC: OK, first of all, it's a million barrels a day that they've proposed to cut. OPEC can take some of the blame, because in their efforts to maximize prices to increase their own revenues, they have been talking up the price. But in reality, their production levels are far over their quotas. I mean, they haven't even implemented the cuts that they were proposing to make in November 1st.

So globally -- I mean, collectively, OPEC production, including Iraq, is about 28 million barrels a day, which is pretty high. But I think that they have contributed to keeping oil traders from selling the market lower. But right now you're seeing $36 a barrel, crude prices, although last week we saw them come off quite a bit. I think that was one of the reasons OPEC had proposed to cut production, was because they were worried that market speculators, future speculators, were going to sell off the market in a big way. Already we saw $3 price fall in futures prices in the last week.

CALLAWAY: So, no shortage in oil. What about refinery prices?

MATUSIC: OK. What's happening with refineries is there are two things, why gasoline prices are high. One, demand this year is well above last year's levels. U.S. are consuming maybe two to three to four percent, depending on the period you're looking at, more gasoline than what we saw last year. Another thing is that there are a number of regulations, stringent regulations mostly having to do with the environment, that were imposed, which is also contributing to the higher prices, because it sort of lowers the supply base we can use in some of the states.

CALLAWAY: Where are you seeing the worst problem? I know California prices are enormously high, as compared to, say, in the south. MATUSIC: Right. California is sort of a unique position. One, by far, they are the biggest consumers of gasoline. I think they consume about 10 percent of the gasoline, that we consume in the country is consumed in California. Another thing is that they have higher environmental regulations in California than in most other states. And the third thing is that California, along with New York and Connecticut this year, become the first states to ban an oxygenated additive to gasoline called MTBE, and they have to burn ethanol, or blend ethanol in the gasoline. Well, ethanol is produced from corn there. And there are not enough farms in California to feed into that supply, so they have to import it, that ethanol, from the Midwest states.

CALLAWAY: So what's it going to take to start bringing the prices down?

MATUSIC: One I think you're already going to see, I think there's going to be relief at the pumps, maybe not next week, but soon, because the crude oil prices are starting to come off. Another thing you're going to have to look at is Wednesday, OPEC meets, and to see what they say about implementing this production cut. They're going to have to really convince the market this time, because twice the market has took them at their word, and still they have not cut production. So I think a lot depends on what's happening with OPEC on Wednesday.

CALLAWAY: All right, Karen, thank you very much. We'll be checking in with you by the end of next week to see where we are. Thank you very much.

MATUSIC: Thank you very much.

WHITFIELD: One way to cut your gas cost is to drive a vehicle with high fuel efficiency. We went looking for the cars with the best ratings and found a list on the Environmental Protection Agency's Web site.

Here goes. Among SUVs, the Toyota RAV4 is about $1,000 a year cheaper than the Land Rover Range Rover. The Ford Ranger Pickup truck could save you more than $1,300 annually over the Dodge Ram. But the best value out there could be the hybrid gas and electric cars by Honda and Toyota. The Toyota Prius is almost four times cheaper to run than the Volkswagen Passat.

And you can see the entire list of the best and worst gas mileage cars at CNNfn.com, and link to the EPA Web site to see how your car measures up.

OK, so maybe a brand new car isn't in the budget. You can still find ways to save on gas with the help of a Web site, another Web site. It's gaspricewatch.com. Just plug in your zip code, and up pops the list of the lowest prices where you live. The information comes from volunteers across the nation, who send in lowest prices from their own neighborhoods. That's gaspricewatch.com. Also check out gasbuddy.com; it works pretty much the same way. People all over the nation report the lowest prices in their areas, and it goes on the web for all to see.

CALLAWAY: Well, the Yankees are looking for a big win this season. We'll have an update, coming up.

(COMMERCIAL BREAK)

CALLAWAY: Yesterday, we looked ahead to the coming baseball season with a look at the Boston Red Sox and their never-ending quest to unseat the perennial powerhouse New York Yankees. What about those Yanks? Josie Burke takes a look at the team that everyone is hoping to sabotage.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN CORRESPONDENT (voice-over): The New York Yankees lineup resembles a modern day murderer's row.

DEREK JETER, SHORTSTOP, NEW YORK YANKEES: Some former teammates called, and even some teammates now called to say how excited we are, not just Alex, but Sheffield, Kevin Brown, Vasquez, Gordon. I'm probably leaving some people out, but that's a big list.

JOE TORRE, MANAGER, NEW YORK YANKEES: You can't take for granted, because you have, say, the most talent, or more talent than a lot of other teams, that you're going to get there.

BURKE: There is the last game of the World Series, holding the trophy. Torre is exercising caution because New York hasn't won at all since 2000. The games best player has never been there, period. And changing that is the main reason Alex Rodriguez welcomed a trade to the Yankees. It's also why the all-star shortstop switched to third base. It allowed New York captain, Derek Jeter, a mainstay shortstop, to stay put.

ALEX RODRIGUEZ, THIRD BASEMAN, NEW YORK YANKEES: To me, I'm excited to be playing with one of my favorite players and one of my greatest friends. So hopefully, some day to win a championship together will be magical.

TORRE: You come here for one reason, and that's because you want to get to the World Series. We've been able to deliver, six of the eight years, to get to the World Series.

BURKE: With a roster that lists four players with $100 million contracts, and a total payroll approaching $190 million, winning is also expected.

PAUL QUANTRUL, RELIEF PITCHER, NEW YORK YANKEES: It isn't about competing, it's not about getting to the playoffs, or winning a wild card, with many teams, that is what are you looking to do. Here, it's very clear, very precise. It's to win the World Series, and I love it.

BURKE: What could derail the Yankees? New York returns only one regular starting pitcher from last year's rotation. And with so many big names and egos now in the same clubhouse, team chemistry could be an issue.

JETER: We have to make sure that we stay -- chemistry-wise, we play together. We play with, like they say, the names on the front of our jerseys, not on the back of our jerseys.

JASON GIAMBI, FIRST BASEMAN, NEW YORK YANKEES: You look around and see Derek Jeter's got four World Series. And what we're all looking for, a lot of us, for our first. Everybody comes here to win. So it really doesn't matter where you hit or where you play, it's all about winning around here.

BURKE: Josie Burke, CNN.

(END VIDEOTAPE)

CALLAWAY: And for all of your baseball and spring training needs, just log on to CNN.com, click on sports, and link up with SI.com. Has everything you'll need to stay in the game.

WHITFIELD: Well, up next, what do you think? Is eight months too long for a presidential campaign? We'll see what you think, next.

(COMMERCIAL BREAK)

(WEATHER REPORT)

CALLAWAY: Time now to check the top stories. The new leader of Hamas today denounced President Bush as, quote, an "enemy of God." Abdul Aziz Rantisi gave the fiery speech at a memorial service in Gaza city for Hamas founder Sheik Ahmed Yassin, who was assassinated by Israel last Monday. The U.N. is threatening to suspend some humanitarian operations in Gaza, due to what it says are Israeli policies.

And CNN has confirmed a legal development in Israel that could cost the prime minister his job. The country's chief prosecutor has formally recommended that Prime Minister Ariel Sharon be indicted in a bribery scandal. A decision isn't expected, however, until next month. Mr. Sharon and others are alleged to have accepted bribes from and Israeli businessman in the 1990s, when Sharon was foreign minister.

Time now to take a look at this morning's e-mail question. Is eight months too long for a presidential campaign? We have a couple of e-mails. Do we have time to read those?

WHITFIELD: Yes, yes we do.

Carl, Berlin, in New Hampshire said, "I enjoy the entire political process. It's like no other process in the world, and evidence that it works is the peaceful transition of power at the end."

CALLAWAY: And this is from Al in Arlington, Virginia. "It borders on the criminally insane. England has the right idea. Campaigns for political offices are limited to 6 weeks. That's weeks, folks. Sounds a little like heaven."

WHITFIELD: Well, it's the place where legends have played for 70 years, and the hits keep coming, Ella Fitzgerald, Marvin Gaye, Stevie Wonder, and more. A look back at the Apollo Theater when CNN Sunday morning continues.

(COMMERCIAL BREAK)

CALLAWAY: Plenty more ahead on CNN today. Up next, it's "INSIDE POLITICS SUNDAY," with more on the fallout from the 9/11 hearings and Condoleezza Rice's appearance later tonight on national television. Coming up at 11:00 a.m., it is on "CNN LIVE SUNDAY," with the latest on the day's top stories. And at 11:30, join us for "RELIABLE SOURCES."

WHITFIELD: Well, it's still early spring, March 28, but it will be a hot night in Harlem tonight as the famous Apollo Theater celebrates its 70th birthday with the taping of a special performance. On the stage, a galaxy of stars ranging from Ashanti to Bob Dylan, from Monique to Willie Nelson. CNN's Adaora Udoji visits a grand old theater with a grand old tradition.

(BEGIN VIDEOTAPE)

ADAORA UDOJI, CNN CORRESPONDENT (voice-over): From the beginning, the Apollo Theater catapulted young unknowns to stardom. The legend, beginning with the life of Ella Fitzgerald, who brought down the house in 1934.

OSSIE DAVIS, ACTOR: Oh, my God, how many times did I go to heaven sitting in those seats out there, how many times?

UDOJI: Celebrated artist Ossie Davis began his pilgrimages in 1939. He recalls electrifying performances that inspired new dreams. The theater became a focal point nation-wide, the first time African- Americans performed for African-American audiences, both in the seats and on radio.

DAVIS: There was this beautiful man, Willie Bryant, who was the MC at that time. And it seems to me, as I remember now, that Willie's job was to convert us from country hicks and rubes, whoever we were, wherever we come from, into people who, at the flick of a finger were on top of the heap.

UDOJI: Never before had the door opened so widely for the country to experience treasures few realized it had. The tap-dancing wonders of the Nicholas brothers, the Hines brothers, Stevie Wonder, James Brown, Lena Horn and so many others.

DAVIS: It was here in Harlem, that we began to establish a sense of who we were as Americans. Who we were, now that we were no longer Africans, now that we were no longer slaves.

UDOJI: But like all great blues singers, the theater has had its share of troubles. CHRISTOPHER MOORE, THE SCHOMBURG CENTER: It persevered through the turmoil in the 30s and 40s, and also the 60s, some of the financial problems in the 70s. But it hasn't closed down; it just persevered, which is really part of Harlem, itself.

UDOJI: Its fans have never forgotten. Nearly half a million visit the theater every year, making it one of New York City's most popular tourist attractions. The performers still come, the names are just different. Chris Rock, Tom Jones, already famous before they got here.

UDOJI (on camera): And these streets, where the Apollo has outlived its original neighbors, have also changed. Today, among others, there are Starbucks and Disney stores. But still, if you listen closely, you can almost hear the voices of the past.

Adaora Udoji, CNN, New York.

(END VIDEOTAPE)

CALLAWAY: Now, Fred, you said you actually went to an amateur show there.

WHITFIELD: We went to an amateur night. I embraced all the talents. That's kind of the fun of it. It was a good time, but if anything, it's just great, you know, we enjoyed the real nostalgia of the theater, knowing the history of it.

CALLAWAY: I had fun anchoring with you. We're done.

WHITFIELD: I had fun anchoring with you, too.

CALLAWAY: Headlines coming up. Have a great Sunday.

Hello, everyone. I'm Catherine Callaway at CNN center. Here are the headlines at this hour.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired March 28, 2004 - 09:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Now, the prices keep going up at the pump, but is there an end in sight? We'll take a look at the crude reality of gas prices, coming up.
And just imagine how much it would cost to fill up this tank. What is it, and where is it going? When we come right back.

(COMMERCIAL BREAK)

CATHERINE CALLAWAY, CNN ANCHOR: Well, the high price of winning in the Major Leagues has the Yankees looking for nothing short of a championship. Hello everyone, and welcome back to this final half hour of "CNN SUNDAY MORNING." We have that story for you coming up. I'm Catherine Callaway.

WHITFIELD: And I'm Fredricka Whitfield. First, let's look at what's happening at this hour.

National Security Adviser Condoleezza Rice appears in a "60 Minutes" interview tonight defending the administration's handling of terror threats. John Kerry says if Rice has time to go on national television, she should find time to testify publicly, under oath, before the 9/11 commission.

A strong earthquake shaked eastern Turkey today, injuring at least a dozen people. The quake, with a magnitude of 5.3, brought down dozens of homes and other buildings. Ten people were killed by a quake in the same area, just days ago.

A huge storm lashes the coast of southern Brazil, killing two people. At least 30 others are injured and hundreds of homes destroyed. The U.S. National Hurricane Center says it was Category One hurricane, making it the first ever spotted in the south Atlantic. Brazilian scientists say the winds weren't strong enough to classify as a hurricane.

CALLAWAY: Well, if you feel like your gas pains are getting worse, it's not your imagination.

That was very clever, wasn't it?

We told you last week to expect prices at the pumps to reach record levels. Well, that's exactly what happened. Nationwide, the average price of a gallon of regular hit a record $1.74 a gallon Tuesday. AAA says the prices did inch down a little as the week wore on. That's the good news. The Department of Energy warns a gallon of regular could reach an average $1.83 a gallon some time next month. That is the bad news.

All right. Here is some more news for you. It is still a lot less than the inflation adjusted price of $2.94 a gallon, which of course was set back in 1981.

And so, what's going on, you ask? Why the big jump in prices? Everybody blames the oil industry. And to find out if that's true and to find the source of these spiraling prices you're paying at the pump, we turn to the senior editor of "Energy Intelligence," Karen Matusic, joining us from our bureau in Washington this morning. Thanks for being with us.

KAREN MATUSIC, SENIOR EDITOR, "ENERGY INTELLIGENCE": No problem.

CALLAWAY: Three issues here that play into this, as far as I know. You're here to set us straight, I guess. But you've got the crude oil, which is regulated by OPEC, refinery prices, and then you have all the new environmental regulations.

Let's start with OPEC and crude oil. Are they really to blame, and what is going to happen to this proposal by OPEC to cut output by something like a billion barrels a day, supposed to start April first? What is that going to do to costs?

MATUSIC: OK, first of all, it's a million barrels a day that they've proposed to cut. OPEC can take some of the blame, because in their efforts to maximize prices to increase their own revenues, they have been talking up the price. But in reality, their production levels are far over their quotas. I mean, they haven't even implemented the cuts that they were proposing to make in November 1st.

So globally -- I mean, collectively, OPEC production, including Iraq, is about 28 million barrels a day, which is pretty high. But I think that they have contributed to keeping oil traders from selling the market lower. But right now you're seeing $36 a barrel, crude prices, although last week we saw them come off quite a bit. I think that was one of the reasons OPEC had proposed to cut production, was because they were worried that market speculators, future speculators, were going to sell off the market in a big way. Already we saw $3 price fall in futures prices in the last week.

CALLAWAY: So, no shortage in oil. What about refinery prices?

MATUSIC: OK. What's happening with refineries is there are two things, why gasoline prices are high. One, demand this year is well above last year's levels. U.S. are consuming maybe two to three to four percent, depending on the period you're looking at, more gasoline than what we saw last year. Another thing is that there are a number of regulations, stringent regulations mostly having to do with the environment, that were imposed, which is also contributing to the higher prices, because it sort of lowers the supply base we can use in some of the states.

CALLAWAY: Where are you seeing the worst problem? I know California prices are enormously high, as compared to, say, in the south. MATUSIC: Right. California is sort of a unique position. One, by far, they are the biggest consumers of gasoline. I think they consume about 10 percent of the gasoline, that we consume in the country is consumed in California. Another thing is that they have higher environmental regulations in California than in most other states. And the third thing is that California, along with New York and Connecticut this year, become the first states to ban an oxygenated additive to gasoline called MTBE, and they have to burn ethanol, or blend ethanol in the gasoline. Well, ethanol is produced from corn there. And there are not enough farms in California to feed into that supply, so they have to import it, that ethanol, from the Midwest states.

CALLAWAY: So what's it going to take to start bringing the prices down?

MATUSIC: One I think you're already going to see, I think there's going to be relief at the pumps, maybe not next week, but soon, because the crude oil prices are starting to come off. Another thing you're going to have to look at is Wednesday, OPEC meets, and to see what they say about implementing this production cut. They're going to have to really convince the market this time, because twice the market has took them at their word, and still they have not cut production. So I think a lot depends on what's happening with OPEC on Wednesday.

CALLAWAY: All right, Karen, thank you very much. We'll be checking in with you by the end of next week to see where we are. Thank you very much.

MATUSIC: Thank you very much.

WHITFIELD: One way to cut your gas cost is to drive a vehicle with high fuel efficiency. We went looking for the cars with the best ratings and found a list on the Environmental Protection Agency's Web site.

Here goes. Among SUVs, the Toyota RAV4 is about $1,000 a year cheaper than the Land Rover Range Rover. The Ford Ranger Pickup truck could save you more than $1,300 annually over the Dodge Ram. But the best value out there could be the hybrid gas and electric cars by Honda and Toyota. The Toyota Prius is almost four times cheaper to run than the Volkswagen Passat.

And you can see the entire list of the best and worst gas mileage cars at CNNfn.com, and link to the EPA Web site to see how your car measures up.

OK, so maybe a brand new car isn't in the budget. You can still find ways to save on gas with the help of a Web site, another Web site. It's gaspricewatch.com. Just plug in your zip code, and up pops the list of the lowest prices where you live. The information comes from volunteers across the nation, who send in lowest prices from their own neighborhoods. That's gaspricewatch.com. Also check out gasbuddy.com; it works pretty much the same way. People all over the nation report the lowest prices in their areas, and it goes on the web for all to see.

CALLAWAY: Well, the Yankees are looking for a big win this season. We'll have an update, coming up.

(COMMERCIAL BREAK)

CALLAWAY: Yesterday, we looked ahead to the coming baseball season with a look at the Boston Red Sox and their never-ending quest to unseat the perennial powerhouse New York Yankees. What about those Yanks? Josie Burke takes a look at the team that everyone is hoping to sabotage.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN CORRESPONDENT (voice-over): The New York Yankees lineup resembles a modern day murderer's row.

DEREK JETER, SHORTSTOP, NEW YORK YANKEES: Some former teammates called, and even some teammates now called to say how excited we are, not just Alex, but Sheffield, Kevin Brown, Vasquez, Gordon. I'm probably leaving some people out, but that's a big list.

JOE TORRE, MANAGER, NEW YORK YANKEES: You can't take for granted, because you have, say, the most talent, or more talent than a lot of other teams, that you're going to get there.

BURKE: There is the last game of the World Series, holding the trophy. Torre is exercising caution because New York hasn't won at all since 2000. The games best player has never been there, period. And changing that is the main reason Alex Rodriguez welcomed a trade to the Yankees. It's also why the all-star shortstop switched to third base. It allowed New York captain, Derek Jeter, a mainstay shortstop, to stay put.

ALEX RODRIGUEZ, THIRD BASEMAN, NEW YORK YANKEES: To me, I'm excited to be playing with one of my favorite players and one of my greatest friends. So hopefully, some day to win a championship together will be magical.

TORRE: You come here for one reason, and that's because you want to get to the World Series. We've been able to deliver, six of the eight years, to get to the World Series.

BURKE: With a roster that lists four players with $100 million contracts, and a total payroll approaching $190 million, winning is also expected.

PAUL QUANTRUL, RELIEF PITCHER, NEW YORK YANKEES: It isn't about competing, it's not about getting to the playoffs, or winning a wild card, with many teams, that is what are you looking to do. Here, it's very clear, very precise. It's to win the World Series, and I love it.

BURKE: What could derail the Yankees? New York returns only one regular starting pitcher from last year's rotation. And with so many big names and egos now in the same clubhouse, team chemistry could be an issue.

JETER: We have to make sure that we stay -- chemistry-wise, we play together. We play with, like they say, the names on the front of our jerseys, not on the back of our jerseys.

JASON GIAMBI, FIRST BASEMAN, NEW YORK YANKEES: You look around and see Derek Jeter's got four World Series. And what we're all looking for, a lot of us, for our first. Everybody comes here to win. So it really doesn't matter where you hit or where you play, it's all about winning around here.

BURKE: Josie Burke, CNN.

(END VIDEOTAPE)

CALLAWAY: And for all of your baseball and spring training needs, just log on to CNN.com, click on sports, and link up with SI.com. Has everything you'll need to stay in the game.

WHITFIELD: Well, up next, what do you think? Is eight months too long for a presidential campaign? We'll see what you think, next.

(COMMERCIAL BREAK)

(WEATHER REPORT)

CALLAWAY: Time now to check the top stories. The new leader of Hamas today denounced President Bush as, quote, an "enemy of God." Abdul Aziz Rantisi gave the fiery speech at a memorial service in Gaza city for Hamas founder Sheik Ahmed Yassin, who was assassinated by Israel last Monday. The U.N. is threatening to suspend some humanitarian operations in Gaza, due to what it says are Israeli policies.

And CNN has confirmed a legal development in Israel that could cost the prime minister his job. The country's chief prosecutor has formally recommended that Prime Minister Ariel Sharon be indicted in a bribery scandal. A decision isn't expected, however, until next month. Mr. Sharon and others are alleged to have accepted bribes from and Israeli businessman in the 1990s, when Sharon was foreign minister.

Time now to take a look at this morning's e-mail question. Is eight months too long for a presidential campaign? We have a couple of e-mails. Do we have time to read those?

WHITFIELD: Yes, yes we do.

Carl, Berlin, in New Hampshire said, "I enjoy the entire political process. It's like no other process in the world, and evidence that it works is the peaceful transition of power at the end."

CALLAWAY: And this is from Al in Arlington, Virginia. "It borders on the criminally insane. England has the right idea. Campaigns for political offices are limited to 6 weeks. That's weeks, folks. Sounds a little like heaven."

WHITFIELD: Well, it's the place where legends have played for 70 years, and the hits keep coming, Ella Fitzgerald, Marvin Gaye, Stevie Wonder, and more. A look back at the Apollo Theater when CNN Sunday morning continues.

(COMMERCIAL BREAK)

CALLAWAY: Plenty more ahead on CNN today. Up next, it's "INSIDE POLITICS SUNDAY," with more on the fallout from the 9/11 hearings and Condoleezza Rice's appearance later tonight on national television. Coming up at 11:00 a.m., it is on "CNN LIVE SUNDAY," with the latest on the day's top stories. And at 11:30, join us for "RELIABLE SOURCES."

WHITFIELD: Well, it's still early spring, March 28, but it will be a hot night in Harlem tonight as the famous Apollo Theater celebrates its 70th birthday with the taping of a special performance. On the stage, a galaxy of stars ranging from Ashanti to Bob Dylan, from Monique to Willie Nelson. CNN's Adaora Udoji visits a grand old theater with a grand old tradition.

(BEGIN VIDEOTAPE)

ADAORA UDOJI, CNN CORRESPONDENT (voice-over): From the beginning, the Apollo Theater catapulted young unknowns to stardom. The legend, beginning with the life of Ella Fitzgerald, who brought down the house in 1934.

OSSIE DAVIS, ACTOR: Oh, my God, how many times did I go to heaven sitting in those seats out there, how many times?

UDOJI: Celebrated artist Ossie Davis began his pilgrimages in 1939. He recalls electrifying performances that inspired new dreams. The theater became a focal point nation-wide, the first time African- Americans performed for African-American audiences, both in the seats and on radio.

DAVIS: There was this beautiful man, Willie Bryant, who was the MC at that time. And it seems to me, as I remember now, that Willie's job was to convert us from country hicks and rubes, whoever we were, wherever we come from, into people who, at the flick of a finger were on top of the heap.

UDOJI: Never before had the door opened so widely for the country to experience treasures few realized it had. The tap-dancing wonders of the Nicholas brothers, the Hines brothers, Stevie Wonder, James Brown, Lena Horn and so many others.

DAVIS: It was here in Harlem, that we began to establish a sense of who we were as Americans. Who we were, now that we were no longer Africans, now that we were no longer slaves.

UDOJI: But like all great blues singers, the theater has had its share of troubles. CHRISTOPHER MOORE, THE SCHOMBURG CENTER: It persevered through the turmoil in the 30s and 40s, and also the 60s, some of the financial problems in the 70s. But it hasn't closed down; it just persevered, which is really part of Harlem, itself.

UDOJI: Its fans have never forgotten. Nearly half a million visit the theater every year, making it one of New York City's most popular tourist attractions. The performers still come, the names are just different. Chris Rock, Tom Jones, already famous before they got here.

UDOJI (on camera): And these streets, where the Apollo has outlived its original neighbors, have also changed. Today, among others, there are Starbucks and Disney stores. But still, if you listen closely, you can almost hear the voices of the past.

Adaora Udoji, CNN, New York.

(END VIDEOTAPE)

CALLAWAY: Now, Fred, you said you actually went to an amateur show there.

WHITFIELD: We went to an amateur night. I embraced all the talents. That's kind of the fun of it. It was a good time, but if anything, it's just great, you know, we enjoyed the real nostalgia of the theater, knowing the history of it.

CALLAWAY: I had fun anchoring with you. We're done.

WHITFIELD: I had fun anchoring with you, too.

CALLAWAY: Headlines coming up. Have a great Sunday.

Hello, everyone. I'm Catherine Callaway at CNN center. Here are the headlines at this hour.

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