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American Morning

Out of Control in Iraq?; Interview With Senator Dianne Feinstein; Michael Jackson Case

Aired April 02, 2004 - 9:00   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.


BILL HEMMER, CNN ANCHOR: Let's start this hour in Spain. We broke this news about an hour and 15 minutes ago. More details now about that bomb found along a high-speed rail line south of Madrid. Again, 40 miles south of Madrid.
Experts say the bomb contained 22 to 24 pounds of explosives, possibly dynamite. Bullet train service between Madrid has now stopped as a result. That incident comes only three weeks to the day after those deadly train attacks in Madrid that killed 190 and wounded more than 1,400 others. More on this throughout the morning here.

Back in the U.S., National Security Adviser Condoleezza Rice testifies before that commission next Thursday, the 8th of April on the calendar. Commission members interested in learning more about the transition between the Clinton and the Bush administration and what information was share between the two about al Qaeda. According to reports, the White House has blocked some of those documents from the Clinton administration being turned over to that 9/11 panel.

A former U.S. Marine has been sentenced today in a British court after pleading guilty to abducting a 12-year-old girl he met online. Toby Studabaker was reportedly sentenced to four-and-a-half years in prison today. This coming through the AP. Prosecutors say Studabaker and the 12-year-old traveled to France and Germany before police arrested him in July, last summer.

Colorado, a wildfire already destroying one home, now forcing dozens of families to get out. According to officials, that blaze doubled in size just yesterday, consuming about 3,500 acres. The wildfire started Tuesday after a yard fire got out of control. Record high temperatures so far in Colorado.

Sunday morning will come an hour earlier for most Americans this week, and officially for most of the country. Daylight Savings Time starts at 2:00 a.m. early Sunday morning, late Saturday night. Spring forward, a good reminder.

Set the clocks an hour ahead. Change the batteries in your smoke alarms at home and regret that you lose an hour of sleep. So that comes again late Saturday night, early Sunday morning.

You're up to date now, 9:02 in New York.

(WEATHER REPORT)

COLLINS: Once again, the U.S. military death toll is on the way up in Iraq. Meanwhile, the U.S. promised an overwhelming response to the killings of the four American contractors.

Walter Rodgers is live in Baghdad now for us this morning.

Walter, hello.

WALTER RODGERS, CNN SR. INTERNATIONAL CORRESPONDENT: Good morning, Heidi.

First, another headline. A few minutes ago, there was a very, very loud explosion here in Baghdad. The U.S. military did not have an immediate explanation.

Iraqi police say that the explosion was about six to 10 miles southeast of the city in the Al Rashid area. This is an area where there was an old military airport. We're not sure who's there now. Again, the Iraqi police are investigating that explosion.

And, as you pointed out, the military announced the deaths of two more American soldiers just a short while ago. This morning, in the Al Mansor district of Baghdad, two U.S. soldiers from the 1st Armored Division were riding along. There was yet another improvised explosive device beside the road, a roadside bomb

One soldier from the 1st Armored Division was killed. Another is in the hospital, again in stable condition.

And another announcement, somewhat belated. On Thursday night, a member of the United States Marine Corps, 1st Marine Division, also killed west of the city. Again, what the Marines are calling enemy action. They were not more specific -- Heidi.

COLLINS: Walter, certainly a lot going on where you are today. I want to get back to Fallujah for a moment, though. As you know, more tough talk from the U.S. military regarding the incident in Fallujah. What are you hearing there now?

RODGERS: Well, what we're hearing from U.S. officials here in Baghdad is cold fury and a thinly veiled threat of vengeance. That is, those who perpetrated that crime, according to a top U.S. general here, will be hunted down.

The U.S. Marine Corps is poised to go into Fallujah, where, of course, the four civilian contractors were killed, butchered on Wednesday of this week. And the Marine unit which will go in will almost certainly lock down that city.

One general said, "We are going in. We are going to retake Fallujah." That indicates the U.S. has lost control of that. And he said the city will be pacified.

The problem with Fallujah, of course, is the U.S. is getting no cooperation from the local civilian officials. So they have to wait a little bit to decide what their targets will be when they go in -- Heidi.

COLLINS: And, as they say, will be on the terms of the Americans. All right. Thanks so much. Walter Rodgers, live in Baghdad this morning.

HEMMER: Outrage continues to grow after the brutal attacks in Fallujah. A bit earlier today -- in fact, last hour here on AMERICAN MORNING, talked with the brother of one of the contractors killed in that attack. I asked Tom Zodco about his brother, Jerry, age 32, about what his brother said about the work he was doing in Iraq today.

(BEGIN VIDEOTAPE)

TOM ZOVKO, BROTHER OF CONTRACTOR MURDERED IN IRAQ: He was there doing what needed to be done. He was, you know, in the military. And when he left, got out of the military, I believe it was '97, he continued in a military-type career in special security, consulting, contracting.

He was a bodyguard. And among other things, he went there in September. He spent a lot of time in the Middle East when he was in the service, and when he got out of the service he had some connections, met some friends there, and worked internationally really.

And this last time when he left in September, he came to see me and my family before he left, when we had a chance to take a vacation, and he -- when he left, he said, you know, he wanted to go and do what he could to make it a better place.

HEMMER: Wow. How has the pictures and the coverage influenced you this past week?

ZOVKO: It's -- I have mixed emotions. Extremely mixed emotions. I try not to think about them, but I think they're necessary to show everyone what's going on and what -- he went there to prevent something like this.

HEMMER: The pictures are one thing, Tom, and the brutality and the details of the story are another. Have you had time to reflect on that?

ZOVKO: No. No. No. It still hasn't sunk in.

HEMMER: Do you blame the Iraqi people?

ZOVKO: No, no.

HEMMER: What do you consider now about the situation of what you hear Fallujah?

ZOVKO: I firmly agree with most of the officials that this is a small percentage, you know, of the people that want to keep it the way it was, you know? And these are the type of people that would do something like this. And that's how they kept it the way it was, by keeping control over the people, by doing stuff like this.

I firmly believe that. And so did my brother. You know, he was for freedom and, you know, for human rights for everybody. Equality for everybody. (END VIDEOTAPE)

HEMMER: Jerry Zovko, age 32, died earlier this week. Also, three other American contractors killed in that same attack in Fallujah. A bit later this hour, in fact, at the half-hour, Kelly McCann, security analyst here. He's been to Baghdad, he's been throughout Iraq. He'll talk about the security process and the forces there now operating throughout that country.

In the meantime, and nine minutes past the hour, the issue of rising gas prices now front and center both on the campaign trail and among lawmakers in Washington. According to the Energy Information Administration, the national average for a regular gallon of gasoline now at $1.75. In California, the average much higher, $2.16 a gallon.

Is there a short-term solution to the problem? A question for California Senator Dianne Feinstein, with us now from Capitol Hill.

Senator, good morning to you. Welcome back to AMERICAN MORNING.

SEN. DIANNE FIENSTEIN (D), CALIFORNIA: Good morning.

HEMMER: Take that first question, first. Is there a short-term solution? If so, when do you see it?

FEINSTEIN: I think there are two. The first is, if the administration would grant a temporary waiver to the oxygenate requirement. This is the requirement that we have to use 2 percent of ethanol right now. And what that means is you need 10 to 11 percent more volume of gasoline.

And we can meet our clean air requirements at this time of the year without any oxygenate. So if there were a temporary waiver...

HEMMER: I'm sorry, Senator. If you do your solution, though, you're saying it will not harm pollution in your home state.

FEINSTEIN: That's correct. Right now, a temporary waiver would work very well, and it would increase gasoline volume by 10 to 11 percent.

The second immediate solution is Californians car pool. We have the longest commutes in the nation. And I can tell you, just by my observation, that five out of every six cars have one person in them. So if you car pool on your way to work, you split the price of gasoline.

I think those are two immediate solutions that could reap real dividends. Now, futures on the hint that the administration might do a temporary waiver actually dropped the prices 4 percent yesterday. So I think this would show that a temporary waiver would, in fact, work.

HEMMER: Senator, there are those who suggest that we, as the United States, we should take on OPEC, to paraphrase a comment from earlier in the week. Are you in that camp? And if so, how do you do it?

FEINSTEIN: Well, I think this is not as simple. I know everybody wants to take on OPEC. But I also believe, at least the strategists at Deutsche Bank have said, that the Saudi shipments to the United States in April are very high. Now, if this is true, I think before we take on OPEC, we ought to have a real understanding of what future shipments of oil really are in the United States.

HEMMER: This is quickly becoming a pretty hot button issue in this political campaign season. The White House is saying Democrats have held up the energy plan proposed by this president. Listen to how Scott McClellan phrased it yesterday here.

(BEGIN VIDEO CLIP)

SCOTT MCLELLAN, WHITE HOUSE PRESS SECRETARY: We continue to go from crisis to crisis when it comes to -- whether it's electricity or whether it's gas prices. We need comprehensive solutions, not patchwork crisis management. We wouldn't be in this situation today if Senate Democrats were not holding up the national energy plan that the president proposed back in May of 2001.

(END VIDEO CLIP)

HEMMER: All right. That was yesterday, three days ago. Here's what we saw in our survey, Senator: a major problem about rising gasoline prices, 56 percent say yes. How significant is this issue in a campaign season?

FEINSTEIN: Well, sure, it's very significant, because people plan when they go to work how many they spend. Particularly if you're a regular car commuter. And if you have the costs go up 40, 50, 60 percent, and you're into, let's say, $50 tanks of gas, that's a big deal in California.

Now, let me respond to Mr. McClellan. The reason Democrats oppose the energy bill is because it's a bad energy bill. It's same old, same old.

It's giving more tax breaks to oil companies. It's not thinking outside of the box. It's not utilizing what we know can be with modern energy technology: development of hybrid automobiles, creating incentives for Detroit to move much more forcefully in that area. Closing the SUV gas loophole, which if you just bring SUVs up to the mileage requirements of sedans, you save 10 percent on oil imports, a million gallons of gas a day, and about 240 million tons of carbon dioxide, which is the number one greenhouse gas.

These are some of the things you can do. Now, it's a $16 billion bill to give oil companies a bunch of tax breaks. Democrats aren't going to go for that. You know, been there, done that. We want something different, something New, something that speaks to what the future of energy is.

HEMMER: Right. Senator, we have to leave it there. We're out of time. Appreciate your thoughts on this. FEINSTEIN: Thank you very much, Bill.

HEMMER: Clearly, a partisan issue that we've talked about throughout the entire week. And it's not going away. Dianne Feinstein there from Capitol Hill on that.

COLLINS: Still to come this morning, how dangerous is it for private security forces in Iraq? We're going to take a look at the issue.

HEMMER: Also, Michael Jackson's accuser set to testify before a grand jury. What impact will it have? We'll talk to the lead investigator in the '93 case in a moment.

COLLINS: And the latest on the case of the missing Wisconsin student found alive and where the investigation stands now.

It's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Turning now to the latest on Michael Jackson. A source familiar with the case tells CNN that Jackson's 14-year-old accuser has testified before a grand jury. The boy said the pop star molested him when he was 12.

Joining us from our L.A. bureau this morning is Bill Dworin, a retired LAPD detective who was assigned to the sexually exploited child unit for more than 22 years. He was the lead investigator in the 1993 child molestation case as well against Michael Jackson.

Hello to you, sir. Thanks for being with us this morning.

I want to begin with, as we've been saying, Jackson's young accuser and the fact that he testified Tuesday. What do you think was discussed?

BILL DWORIN, RETIRED LAPD DETECTIVE: Well, the boy would have been asked about the sexual abuse, but not only the abuse. He's been asked about what led up to the abuse, the seduction process that Mr. Jackson used to gain sexual favors from this boy.

COLLINS: Well, on that note, you have said that you believe Michael Jackson was a threat to children back in 1993 and still is today. How important is it to establish a pattern of pedophiliac behavior?

DWORIN: It's very important. It's going to show that Jackson does have a sexual interest in children, which will support this child's allegations that he was sexually abused by Jackson.

COLLINS: And, as we just mentioned, you did investigate this case in 1993.

DWORIN: Yes, I did.

COLLINS: Any idea if any other witnesses will come forward now this time around?

DWORIN: It's very possible that other children from the 1993 case will come forward. Again, it will describe the pattern of behavior that Jackson used to befriend the child, to build up a relationship to abuse the child.

COLLINS: And, also, the lawyer who represented the 1993 accuser also faced questions. Again, you know this person as well. What type of information would he be able to provide?

DWORIN: It's hard to say. There's an attorney-client relationship. But he will, again, support the belief that Jackson sexually abused a child in 1993, and that this abuse continues today in 2003.

COLLINS: But some of this is a little bit complicated. I mean, how can facts and witnesses from that 1993 case be actually used in this case now if there was a confidential civil settlement?

DWORIN: The civil settlement has nothing to do with criminal activity. If the victim from 1993 agrees to testify, then that information can and will be used in the criminal matter that's ongoing today.

COLLINS: I have got to ask you, Mr. Dworin, I'm not sure if you saw it or not, but we would be curious to know what you made of Jackson's appearance on Capitol Hill this week.

DWORIN: Public relations appearance. That's the only thing I could think about.

COLLINS: You don't think he was trying to distract public attention from the child molestation charges against him?

DWORIN: It's hard to say. He craves publicity one way or another. And this is his way of gaining publicity.

COLLINS: All right. Bill Dworin, we appreciate your time so much this morning, sir.

We want to remind everyone, of course, that Michael Jackson has pleaded not guilty to all of the charges against him -- Bill.

HEMMER: We're at 20 minutes past the hour, 10 minutes from the opening bell on Wall Street. It should be a significant day, too. A sizzling jobs report is out. Is the economy turning a corner?

Andy has that. Back in a moment with Andy and Jack after this.

(COMMERCIAL BREAK)

HEMMER: Six minutes from the opening bell. Talking about jobs this morning. Talking about cars, too. Andy Serer is "Minding Your Business," back with us here.

What did you say, off the charts last hour? ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Absolutely. Off-the-charts report crossed the table a little while ago. We're talking about job creation in the month of March.

Fantastic; 318,000 jobs created. We were only looking for 120,000. That's 188,000 more than anticipated.

As you might expect, stock futures are surging at this point. Bond futures are plunging, however. The bond market hurting right now because some people thinking this might make the fed have to raise interest rates. The dollar is really strong as well.

We'll be watching this. But great news for the White House. And, of course, the economy as well.

HEMMER: I bet it is. Listen, if you want to get a vacation and a car, FedEx is going to do it for you, delivery?

SERWER: Yes. I mean, this is a company who will deliver anything. And now they're really putting it to the test. They're going to deliver your car for your vacation. Say you want to bring your car with you...

HEMMER: You're own car?

SERWER: You're own car with you when you go on vacation. FedEx is now saying they'll do it for you. And it will cost you a little bit of money, as you might expect. And they won't do it overnight.

Here's what you got: it will take about a week. And you can see, $1,750 to go to L.A. and New York, each way, or Miami to New York is $1,000.

Now, what this is really for, you guys, though, is snowbirds. Say people who live in the northeast go to Florida for half the year. Elderly people don't want to drive, but they love their wheels, love their cars. FedEx will get it down there for them.

HEMMER: You could rent a plane for that price. Couldn't you?

SERWER: You can go to Venezuela and get gas...

HEMMER: That is true, too. Do we have time for the Lincoln Town Car?

SERWER: Yes. This is a New ballistic protection system. Lincoln's rolling out 300 of these babies, if you really need the extra security. Only $144,000, though.

It's not bulletproof, they say, but, you know, basically you're not going to get anything through there -- 6,200 pounds. That compares to about 4,000 pounds.

HEMMER: Who's buying that thing?

SERWER: People who really need security. CEOs, things like that.

HEMMER: Yes. And have cash.

SERWER: Yes.

HEMMER: All right. Thanks, Andy.

SERWER: You're welcome.

JACK CAFFERTY, CNN ANCHOR: I understand a fleet of them have been ordered for the CNN management. That's just a rumor.

SERWER: Not confirmed.

CAFFERTY: No.

COLLINS: Question of the Day, Jack?

CAFFERTY: Thank you.

COLLINS: You're welcome.

CAFFERTY: The newest reality show stars the British billionaire Sir Richard Branson. It airs on the "F" word network. And it will follow the CEO of The Virgin Group and the contestants on a six-week tour of the world. Every week, they'll eliminate one contestant, literally leaving them on the airport tarmac while the rest of them get on the plane and fly away.

We thought that was a good idea for the Question of the Day. The whole thing following the success of Trump's "The Apprentice." So the question we asked this morning is, who should host a reality show and who shouldn't?

And we've gotten quite a few e-mails, beginning with Lance from Chapel Hill, North Carolina. "Our society's become enamored with seeing others in embarrassing positions. We seem to relish at the misfortune of others, and there are those willing to put themselves in awkward situations for the money. I wish we could get rid of them all and curb your appetite for this type of feel good at other's expense type of programming."

I love to feel good at other people's expense, don't you?

SERWER: That's us.

CAFFERTY: Murray in Baton Rouge, Louisiana: "Jack, great idea for one episode of a reality show, and as much as he'll be there to hold his hand, the September 11 Commission could show Bush testifying while Dick Cheney drinks a glass of water."

That's terrible.

Hal in Missouri: "I like the show "When Good Times go Bad." The most compelling reality TV involves disasters that are caught on video. In that spirit, why not a show for Donald Trump's barber?" And Tom in West Virginia, he writes in conjunction with something that actually happened on this program a couple of days ago. "The best reality TV show I have seen in a long time is the one where this girl put her hand over this guy's mouth and infected him with a virus."

HEMMER: Come on.

CAFFERTY: It should go a long way in persuading people to stay home when they're sick, or at least to wash their hands. Hope the guy doesn't get pregnant, too."

Boy, me, too.

HEMMER: She was putting a muzzle on you is what she was doing.

CAFFERTY: Yes. And I do have a cold. And I think that's where I caught it.

HEMMER: Come on.

SERWER: You having a little morning sickness, though?

CAFFERTY: No morning sickness, no. I don't have that.

SERWER: Yes, OK.

HEMMER: He's got to drink water. And three times as much as you think you need. You'll get all that stuff out of your body.

SERWER: He's sick. You've been trying to tell him that for days. He's sick. It didn't work.

HEMMER: I know, because he's not doing it. By the time you come in here on Monday, you will say, Hemmer, you are so right.

CAFFERTY: Even if I felt better, I wouldn't say that.

SERWER: No, because he's getting mileage here big time.

CAFFERTY: You've been hanging out with Gupta.

HEMMER: And I know better.

CAFFERTY: Take three of these and call me sometime.

HEMMER: Thank you, Jack. "PEOPLE IN THE NEWS," by the way, this weekend on Donald Trump, if you're so inclined. After the "IN THE MONEY" program.

CAFFERTY: What's that?

HEMMER: "PEOPLE IN THE NEWS" this weekend is doing Donald Trump. It's a good show, too.

CAFFERTY: Oh, they are? HEMMER: In a moment here, the Fallujah fallout. This week's brutal attacks with security contractors in the spotlight. What's their role in the midst of continuing violence? We'll get to that.

Bottom of the hour, opening bell, too. Just a minute away.

(COMMERCIAL BREAK)

HEMMER: Welcome back. Good morning, again -- 9:30 in New York. Heidi Collins in today for Soledad O'Brien.

We taking care of you?

COLLINS: Oh, yes.

HEMMER: Yes, so far?

COLLINS: Yes. The throat lozenges and all.

HEMMER: Twenty-nine minutes to go.

COLLINS: That's right.

The news, though, this morning, the four men killed in Fallujah this week were civilian contractors, as you know. There is a surprising number of private security forces in Iraq. We're going to hear about the dangers and what these civilians are doing there.

This morning, though, with the news, we begin in Spain. More details now about the bomb found along the high-speed rail line south of Madrid just hours ago. Experts reportedly said the bomb contained 22 to 24 pounds of explosives, possibly dynamite.

Bullet train service between Madrid and Seville has been stopped as a result. The incident comes three weeks after those deadly Madrid train attacks that killed nearly 200 people.

Israeli police say troops have stormed a disputed holy site in Jerusalem. Soldiers used stun grenades to pacify Palestinians throwing rocks at the Al Aqsa mosques. There were a number of injuries. At least 14 people have now been taken into custody.

Police in Madison, Wisconsin, continuing to search for Audrey Seiler's suspected abductor and are expected to release some new information at 11:00 a.m. Eastern this morning. CNN will have live coverage of that news conference.

A police stet sketch shows him to be a white man in his late 20s or early 30s. The Wisconsin student says the man led her away at knife point this past weekend. She was later found alive after a four-day disappearance.

And Massachusetts residents continue to fight floodwaters as the rains finally tapers off. The worst of the slow-moving storm is over, after dumping up to six inches of rain in some areas. Flooding has shut down schools and highways. Some firefighters used wraps (ph) to assist stranded motorists. Wow.

(WEATHER REPORT)

HEMMER: Back to Iraq now, where coalition officials investigating a loud explosion ringing out in the capital city of Baghdad a bit earlier today. Also, the military confirming with us here at CNN the deaths of two more soldiers in Iraq.

A roadside bomb killed a member of the 1st Armored Division in Baghdad today. And yesterday, the military says enemy action caused a Marine's death in a province known for insurgent activity. Meanwhile, the U.S. promises to respond to the killings of those four security contractors in Fallujah on Wednesday.

CNN contributor and security terrorism expert Kelly McCann with us now. His company supplies security for clients in Iraq. And he's back with us from D.C.

Kelly, welcome back to AMERICAN MORNING. I know you've been in Baghdad yourself. You know the country quite well. How important is the security detail for these private contractors to the work that's going under way in Iraq today?

KELLY MCCANN, SECURITY TERRORISM EXPERT: Infrastructure couldn't happen without contractors, Bill. I mean, contractors on the battlefield is nothing new. I mean, it's happened in every hostile area.

I mean, the bottom line is, infrastructure won't be attained without contractors. Military can't do it.

HEMMER: How would you gauge their ability to keep safe, when they're driving around in SUVS and they're wearing thing vests, and they're facing literally RPGs coming at them.

MCCANN: Targeting is a problem. And it's primarily a problem based on time and place predictability of routine events. In other words, milk runs, where you have to do things at a particular time based on the work schedule.

And, secondly, the high visibility vehicle signature that you saw yourself when you were in Iraq. I mean, a white SUV late model is probably not going to be an Iraqi. It's going to be an American contractor, a westerner, a Department of Defense civilian. And that is a big problem.

HEMMER: Don't know if you saw the story in The New York Times this morning. The title of the story is "Need an Army? Just Pick up the Phone."

In the body of that story, they write -- I'm quoting now -- "Shouldn't war be a government function? Why rely on the private sector for our national defense even if it's largely a supporting role."

Now, you suggest it's always gone on in the history of warfare. How do you defend an article that makes an allegation like that?

MCCANN: Well, I can't defend it. And I wouldn't even -- they've got it wrong. And the reason they've got it wrong is, the contractors that are there are not engaged in combat. In other words, they're not listed as combatants.

Actually, the DD form 248 that you get and have in your possession allows you to accompany force and basically -- accompany forces, and that's for two purposes. One is combat support and one is combat services support. But you are not to engage in battlefield activity.

That doesn't mean that you don't have the inherent right to self- defense or provide security that the military otherwise wouldn't for dignitaries. So, again, there's always a knee-jerk reaction. The term "mercenaries" comes up, et cetera, and people just get it wrong.

The bottom line is, the contractors over there are professional men that come from special operations community, are former police officers, et cetera, and have appropriate training. They know the risks before they go into countries. Again, a little bit of hyperbole I think there, Bill.

HEMMER: How well do you know the company Black Water? We spoke with a member of the -- family member -- brother who had lost his own brother there this week. This company responsible for Paul Bremer's security. How reputable?

MCCANN: Very reputable. Good company. They draw largely from the former SEAL community. They have an excellent training facility, excellent training regiment. They have a good reputation.

Again, Bill, what happened is not an indication of anything that those gentlemen might have done differently or wrong. It's an indication of the single tenet that Iraq is a very dangerous place.

It's dangerous to you if you are a terrorist because you could get killed by coalition forces. It's dangerous if you're a contractor. You could be targeted.

It's dangerous if you're in the military, as we say. There was just another incident this morning. It's just a bad place.

HEMMER: Thanks, Kelly, for sharing your thoughts. Appreciate it. Kelly McCann...

MCCANN: Thanks, Bill.

HEMMER: You got it.

COLLINS: We're watching the markets. There's a rally. Dow up about 120 points or so. Andy is going to be back with more on that in just a few minutes.

(COMMERCIAL BREAK) COLLINS: Hey, a lot going on in the market. We want to get straight to it with Andy Serwer. We haven't talked too much about it, but now good numbers, right?

SERWER: Yes, that's right. Of course, the stock market responding to that jobs report this morning. We created over 300,000 jobs.

Last month, look here. Dow Jones industrials up over 90 points. Was up over 100. We're still hanging in there. That's real good news.

Nasdaq really flying, up over 30 points. Bond may be easing back a little bit. Kind of a broad rally across the board.

Of course that 300,000 number, biggest number since April of 2000, going back to the Clinton administration. Obviously, the people in the White House delighted with that.

And manufacturing sector, also, at least not losing jobs, Heidi. For the first time in 43 months we didn't lose any jobs in that sector. So that's the big headline today. And Wall Street's responding.

COLLINS: All right. Good headlines they are.

SERWER: Yes, they are.

COLLINS: Thanks, Andy.

HEMMER: Back with Jack and the Question of the Day.

CAFFERTY: Thank you, sir.

The question is this: Who should and who should not host a reality TV show, given the success of "The Apprentice" that Mr. Trump is doing over on NBC?

Gene in Buffalo, Oklahoma writes: "I have spent 35 years as an educator in Texas and Oklahoma. If the public wants reality, then someone should film a series which reflects the real lives of many American students. Maybe we could see why so many children are left behind."

And, finally, Rick says, "Jack should host a show. The person who could best pretend to be a Yankee curmudgeon-type news anchor while really pushing forward a left wing agenda would get Jack's job."

SERWER: Wow. I didn't know you were that complicated.

CAFFERTY: I didn't either.

SERWER: You know what's interesting? Richard Branson, who we were talking about with this show, I mean, he is the biggest publicity hound in the world.

CAFFERTY: Oh, yes.

SERWER: I mean, the guy jumps off, skydives. But he does get the job done in terms of generating interest in his companies, right?

CAFFERTY: Indeed he do. I mean, we gave him a little bit of free publicity right here this morning.

SERWER: Yes, that's right.

Nice to have you with us, Heidi. Stop in any time.

COLLINS: Hey, thanks.

HEMMER: Are you going to read this (UNINTELLIGIBLE) right here?

COLLINS: Don't forget about "IN THE MONEY?" Come on. This is your moment.

CAFFERTY: Oh, excuse me. Yes.

HEMMER: It's gone now.

CAFFERTY: It's gone. Are we doing "IN THE MONEY?" This -- here's what we're going to do quickly on "IN THE MONEY"...

If you live in a county that has a casino, statistics are you're more likely to go bankrupt. The gambling industry insists there's no connection. Other people disagree. We'll take a look at that issue.

Oh, you know who we're also going to have on? We have the CEO of Air America on, the new liberal radio network. Going to join us on "IN THE MONEY."

COLLINS: All right, Jack. Look forward to that.

CAFFERTY: We get all the cool guests.

COLLINS: Yes, you do.

All right. Speaking about cool guests, talk about going the extra mile. Charlie Hamilton will cover more than 11,000 miles in a cross-country trip that includes two of his favorite things: baseball and bicycling.

His goal is to visit all 30 major league ballparks and raise $125,000 for cancer research. Charlie's mission is worthy of our weekly "Extra Effort" segment.

He joins us from Turner Field in Atlanta, where his journey will begin tomorrow.

So, Charlie, did you get a good night's sleep?

CHARLIE HAMILTON, BICYCLING CROSS COUNTRY FOR CANCER RESEARCH: I'm sorry. Could you repeat that? COLLINS: It's a little loud behind you there, isn't it? I'm just wondering if you're going to get a good night's sleep tonight, because you have a long way and a long journey ahead of you.

HAMILTON: Yes, I sure do. It's 11,000 miles, six months. A whole baseball season.

COLLINS: So, are you looking forward to this? I mean, we are looking at a map now of how far you are going to go. Quite the agenda that you have. How did you come up with this idea? Why do you want to do it?

HAMILTON: Well, I have always been a huge baseball fan, and I have also done some cycle touring in the past. And I thought I'd combine the two together.

It was actually -- my wife kind of inspired me when she asked me what I would do if I could do anything. And I came up with this.

COLLINS: Tell us a little bit about the charity that you will be riding for.

HAMILTON: It's a great charity. I'm trying to raise money for the Dana-Farber Cancer Institute, which helps treat people locally in Boston, but also does research that's been used all around the world. And I'm riding for the Pan-Mass Challenge, which is a group that raises money that goes through the Jimmy Fund to the Dana-Farber Cancer Institute. So it's really a great cause.

COLLINS: I understand you won't be riding alone. You get a little bit of motivation from a pedal partner that you have, a 15- year-old guy. Tell us a little bit about him.

HAMILTON: He's a great kid. I got to meet him last week in Boston. And he is really going through a tough time, but he's also pretty upbeat.

And hopefully -- well, his treatment should be done soon. And it sounds like his prognosis is really good. So it's just another example of the great work that Dana-Farber does.

COLLINS: What do you think about when you ride all those miles, after mile, after mile?

HAMILTON: You can get pretty crazy sometimes. Sometimes you get a song stuck in your head and you just want to cut your head off. But that's...

COLLINS: Don't do that. All right. Charlie, we certainly appreciate you being with us today. We wish you the best of luck with a very long journey.

And a great idea that you came up with. Thanks so much, Charlie. Good luck to you.

HAMILTON: OK. Yes. Thank you very much. COLLINS: And you can learn more about Pam-Massachusetts Challenge at pmc.org. And to help Charlie reach his goal of raising $125,000, you can go to his personal Web site at hitforthecycle.org.

HEMMER: Good for him. Best of luck to you, $125,000.

COLLINS: Yes. I hope he has good weather.

HEMMER: Yes. And get that music out of his head. AMERICAN MORNING theme music probably.

COLLINS: I bet that's what it is.

HEMMER: Let's get a break here.

In a moment, coming up on CNN next hour, a developing story in Madison, Wisconsin, involving that university student found after a four-day disappearance. What are the details? What are police saying today? Daryn Kagan has that next.

We're back in a moment here on AMERICAN MORNING right now.

(COMMERCIAL BREAK)

HEMMER: We've got to run. Have a great weekend.

COLLINS: Little basketball this weekend, possibly?

HEMMER: Yes. A little hoops this weekend. Who do you like, Heidi?

COLLINS: I would say Duke, but they beat Maryland, so...

HEMMER: Yes. So you don't like Duke.

COLLINS: Yes.

CAFFERTY: Well, Duke's in the final four. They can run it all.

COLLINS: Yes, I know. But Maryland's not.

SERWER: She can't root for them.

CAFFERTY: Yes. OK. Well.

COLLINS: Oh well. Moving right along.

HEMMER: Here's Daryn Kagan at the CNN Center.

SERWER: Well, Soledad's not even here...

(CROSSTALK)

HEMMER: Have a great weekend, Daryn. Good morning to you.

DARYN KAGAN, CNN ANCHOR: This inside tip, Billy: Connecticut. HEMMER: Yes? You like it?

KAGAN: You can't be the size, depth.

HEMMER: I like the Huskies, too.

KAGAN: Yes.

HEMMER: But what's interesting about the women from UConn are playing at the same time of the final four on the ladies' side, too. So that' school's got a lot to cheer about.

KAGAN: Yes. Good tradition there.

HEMMER: Have a good weekend.

KAGAN: You guys have a great weekend, the first one of April in New York City. We'll get started here at CNN headquarters in Atlanta. I'm Daryn Kagan.

Let's go ahead and check the headlines at this hour.

Spanish authorities confirm to CNN the discovery of dynamite and detonation cord along the high-speed rail line linking Madrid with Seville. Bullet train service has been halted, affecting thousands of travelers. Spanish media reports the 20 to 25-pound package was discovered by a railway worker.

Iraqi police are the latest targets of the insurgency. An attack in Baquba against a police convoy killed at least two officers and wounded others. And in Fallujah, the U.S. military is vowing to get those responsible for the butchering of four American civilians. More on that story in just a moment.

In Jerusalem, Israeli police and Palestinians clashed today outside of a holy site. It apparently began with Palestinians throwing rocks at Jews at the Western Wall. Israeli police rushed in with stun grenades and rubber bullets. The site is sacred to both Muslims and Jews, and is a scene of frequent confrontation.

And mark your calendars.


Aired April 2, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Let's start this hour in Spain. We broke this news about an hour and 15 minutes ago. More details now about that bomb found along a high-speed rail line south of Madrid. Again, 40 miles south of Madrid.
Experts say the bomb contained 22 to 24 pounds of explosives, possibly dynamite. Bullet train service between Madrid has now stopped as a result. That incident comes only three weeks to the day after those deadly train attacks in Madrid that killed 190 and wounded more than 1,400 others. More on this throughout the morning here.

Back in the U.S., National Security Adviser Condoleezza Rice testifies before that commission next Thursday, the 8th of April on the calendar. Commission members interested in learning more about the transition between the Clinton and the Bush administration and what information was share between the two about al Qaeda. According to reports, the White House has blocked some of those documents from the Clinton administration being turned over to that 9/11 panel.

A former U.S. Marine has been sentenced today in a British court after pleading guilty to abducting a 12-year-old girl he met online. Toby Studabaker was reportedly sentenced to four-and-a-half years in prison today. This coming through the AP. Prosecutors say Studabaker and the 12-year-old traveled to France and Germany before police arrested him in July, last summer.

Colorado, a wildfire already destroying one home, now forcing dozens of families to get out. According to officials, that blaze doubled in size just yesterday, consuming about 3,500 acres. The wildfire started Tuesday after a yard fire got out of control. Record high temperatures so far in Colorado.

Sunday morning will come an hour earlier for most Americans this week, and officially for most of the country. Daylight Savings Time starts at 2:00 a.m. early Sunday morning, late Saturday night. Spring forward, a good reminder.

Set the clocks an hour ahead. Change the batteries in your smoke alarms at home and regret that you lose an hour of sleep. So that comes again late Saturday night, early Sunday morning.

You're up to date now, 9:02 in New York.

(WEATHER REPORT)

COLLINS: Once again, the U.S. military death toll is on the way up in Iraq. Meanwhile, the U.S. promised an overwhelming response to the killings of the four American contractors.

Walter Rodgers is live in Baghdad now for us this morning.

Walter, hello.

WALTER RODGERS, CNN SR. INTERNATIONAL CORRESPONDENT: Good morning, Heidi.

First, another headline. A few minutes ago, there was a very, very loud explosion here in Baghdad. The U.S. military did not have an immediate explanation.

Iraqi police say that the explosion was about six to 10 miles southeast of the city in the Al Rashid area. This is an area where there was an old military airport. We're not sure who's there now. Again, the Iraqi police are investigating that explosion.

And, as you pointed out, the military announced the deaths of two more American soldiers just a short while ago. This morning, in the Al Mansor district of Baghdad, two U.S. soldiers from the 1st Armored Division were riding along. There was yet another improvised explosive device beside the road, a roadside bomb

One soldier from the 1st Armored Division was killed. Another is in the hospital, again in stable condition.

And another announcement, somewhat belated. On Thursday night, a member of the United States Marine Corps, 1st Marine Division, also killed west of the city. Again, what the Marines are calling enemy action. They were not more specific -- Heidi.

COLLINS: Walter, certainly a lot going on where you are today. I want to get back to Fallujah for a moment, though. As you know, more tough talk from the U.S. military regarding the incident in Fallujah. What are you hearing there now?

RODGERS: Well, what we're hearing from U.S. officials here in Baghdad is cold fury and a thinly veiled threat of vengeance. That is, those who perpetrated that crime, according to a top U.S. general here, will be hunted down.

The U.S. Marine Corps is poised to go into Fallujah, where, of course, the four civilian contractors were killed, butchered on Wednesday of this week. And the Marine unit which will go in will almost certainly lock down that city.

One general said, "We are going in. We are going to retake Fallujah." That indicates the U.S. has lost control of that. And he said the city will be pacified.

The problem with Fallujah, of course, is the U.S. is getting no cooperation from the local civilian officials. So they have to wait a little bit to decide what their targets will be when they go in -- Heidi.

COLLINS: And, as they say, will be on the terms of the Americans. All right. Thanks so much. Walter Rodgers, live in Baghdad this morning.

HEMMER: Outrage continues to grow after the brutal attacks in Fallujah. A bit earlier today -- in fact, last hour here on AMERICAN MORNING, talked with the brother of one of the contractors killed in that attack. I asked Tom Zodco about his brother, Jerry, age 32, about what his brother said about the work he was doing in Iraq today.

(BEGIN VIDEOTAPE)

TOM ZOVKO, BROTHER OF CONTRACTOR MURDERED IN IRAQ: He was there doing what needed to be done. He was, you know, in the military. And when he left, got out of the military, I believe it was '97, he continued in a military-type career in special security, consulting, contracting.

He was a bodyguard. And among other things, he went there in September. He spent a lot of time in the Middle East when he was in the service, and when he got out of the service he had some connections, met some friends there, and worked internationally really.

And this last time when he left in September, he came to see me and my family before he left, when we had a chance to take a vacation, and he -- when he left, he said, you know, he wanted to go and do what he could to make it a better place.

HEMMER: Wow. How has the pictures and the coverage influenced you this past week?

ZOVKO: It's -- I have mixed emotions. Extremely mixed emotions. I try not to think about them, but I think they're necessary to show everyone what's going on and what -- he went there to prevent something like this.

HEMMER: The pictures are one thing, Tom, and the brutality and the details of the story are another. Have you had time to reflect on that?

ZOVKO: No. No. No. It still hasn't sunk in.

HEMMER: Do you blame the Iraqi people?

ZOVKO: No, no.

HEMMER: What do you consider now about the situation of what you hear Fallujah?

ZOVKO: I firmly agree with most of the officials that this is a small percentage, you know, of the people that want to keep it the way it was, you know? And these are the type of people that would do something like this. And that's how they kept it the way it was, by keeping control over the people, by doing stuff like this.

I firmly believe that. And so did my brother. You know, he was for freedom and, you know, for human rights for everybody. Equality for everybody. (END VIDEOTAPE)

HEMMER: Jerry Zovko, age 32, died earlier this week. Also, three other American contractors killed in that same attack in Fallujah. A bit later this hour, in fact, at the half-hour, Kelly McCann, security analyst here. He's been to Baghdad, he's been throughout Iraq. He'll talk about the security process and the forces there now operating throughout that country.

In the meantime, and nine minutes past the hour, the issue of rising gas prices now front and center both on the campaign trail and among lawmakers in Washington. According to the Energy Information Administration, the national average for a regular gallon of gasoline now at $1.75. In California, the average much higher, $2.16 a gallon.

Is there a short-term solution to the problem? A question for California Senator Dianne Feinstein, with us now from Capitol Hill.

Senator, good morning to you. Welcome back to AMERICAN MORNING.

SEN. DIANNE FIENSTEIN (D), CALIFORNIA: Good morning.

HEMMER: Take that first question, first. Is there a short-term solution? If so, when do you see it?

FEINSTEIN: I think there are two. The first is, if the administration would grant a temporary waiver to the oxygenate requirement. This is the requirement that we have to use 2 percent of ethanol right now. And what that means is you need 10 to 11 percent more volume of gasoline.

And we can meet our clean air requirements at this time of the year without any oxygenate. So if there were a temporary waiver...

HEMMER: I'm sorry, Senator. If you do your solution, though, you're saying it will not harm pollution in your home state.

FEINSTEIN: That's correct. Right now, a temporary waiver would work very well, and it would increase gasoline volume by 10 to 11 percent.

The second immediate solution is Californians car pool. We have the longest commutes in the nation. And I can tell you, just by my observation, that five out of every six cars have one person in them. So if you car pool on your way to work, you split the price of gasoline.

I think those are two immediate solutions that could reap real dividends. Now, futures on the hint that the administration might do a temporary waiver actually dropped the prices 4 percent yesterday. So I think this would show that a temporary waiver would, in fact, work.

HEMMER: Senator, there are those who suggest that we, as the United States, we should take on OPEC, to paraphrase a comment from earlier in the week. Are you in that camp? And if so, how do you do it?

FEINSTEIN: Well, I think this is not as simple. I know everybody wants to take on OPEC. But I also believe, at least the strategists at Deutsche Bank have said, that the Saudi shipments to the United States in April are very high. Now, if this is true, I think before we take on OPEC, we ought to have a real understanding of what future shipments of oil really are in the United States.

HEMMER: This is quickly becoming a pretty hot button issue in this political campaign season. The White House is saying Democrats have held up the energy plan proposed by this president. Listen to how Scott McClellan phrased it yesterday here.

(BEGIN VIDEO CLIP)

SCOTT MCLELLAN, WHITE HOUSE PRESS SECRETARY: We continue to go from crisis to crisis when it comes to -- whether it's electricity or whether it's gas prices. We need comprehensive solutions, not patchwork crisis management. We wouldn't be in this situation today if Senate Democrats were not holding up the national energy plan that the president proposed back in May of 2001.

(END VIDEO CLIP)

HEMMER: All right. That was yesterday, three days ago. Here's what we saw in our survey, Senator: a major problem about rising gasoline prices, 56 percent say yes. How significant is this issue in a campaign season?

FEINSTEIN: Well, sure, it's very significant, because people plan when they go to work how many they spend. Particularly if you're a regular car commuter. And if you have the costs go up 40, 50, 60 percent, and you're into, let's say, $50 tanks of gas, that's a big deal in California.

Now, let me respond to Mr. McClellan. The reason Democrats oppose the energy bill is because it's a bad energy bill. It's same old, same old.

It's giving more tax breaks to oil companies. It's not thinking outside of the box. It's not utilizing what we know can be with modern energy technology: development of hybrid automobiles, creating incentives for Detroit to move much more forcefully in that area. Closing the SUV gas loophole, which if you just bring SUVs up to the mileage requirements of sedans, you save 10 percent on oil imports, a million gallons of gas a day, and about 240 million tons of carbon dioxide, which is the number one greenhouse gas.

These are some of the things you can do. Now, it's a $16 billion bill to give oil companies a bunch of tax breaks. Democrats aren't going to go for that. You know, been there, done that. We want something different, something New, something that speaks to what the future of energy is.

HEMMER: Right. Senator, we have to leave it there. We're out of time. Appreciate your thoughts on this. FEINSTEIN: Thank you very much, Bill.

HEMMER: Clearly, a partisan issue that we've talked about throughout the entire week. And it's not going away. Dianne Feinstein there from Capitol Hill on that.

COLLINS: Still to come this morning, how dangerous is it for private security forces in Iraq? We're going to take a look at the issue.

HEMMER: Also, Michael Jackson's accuser set to testify before a grand jury. What impact will it have? We'll talk to the lead investigator in the '93 case in a moment.

COLLINS: And the latest on the case of the missing Wisconsin student found alive and where the investigation stands now.

It's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Turning now to the latest on Michael Jackson. A source familiar with the case tells CNN that Jackson's 14-year-old accuser has testified before a grand jury. The boy said the pop star molested him when he was 12.

Joining us from our L.A. bureau this morning is Bill Dworin, a retired LAPD detective who was assigned to the sexually exploited child unit for more than 22 years. He was the lead investigator in the 1993 child molestation case as well against Michael Jackson.

Hello to you, sir. Thanks for being with us this morning.

I want to begin with, as we've been saying, Jackson's young accuser and the fact that he testified Tuesday. What do you think was discussed?

BILL DWORIN, RETIRED LAPD DETECTIVE: Well, the boy would have been asked about the sexual abuse, but not only the abuse. He's been asked about what led up to the abuse, the seduction process that Mr. Jackson used to gain sexual favors from this boy.

COLLINS: Well, on that note, you have said that you believe Michael Jackson was a threat to children back in 1993 and still is today. How important is it to establish a pattern of pedophiliac behavior?

DWORIN: It's very important. It's going to show that Jackson does have a sexual interest in children, which will support this child's allegations that he was sexually abused by Jackson.

COLLINS: And, as we just mentioned, you did investigate this case in 1993.

DWORIN: Yes, I did.

COLLINS: Any idea if any other witnesses will come forward now this time around?

DWORIN: It's very possible that other children from the 1993 case will come forward. Again, it will describe the pattern of behavior that Jackson used to befriend the child, to build up a relationship to abuse the child.

COLLINS: And, also, the lawyer who represented the 1993 accuser also faced questions. Again, you know this person as well. What type of information would he be able to provide?

DWORIN: It's hard to say. There's an attorney-client relationship. But he will, again, support the belief that Jackson sexually abused a child in 1993, and that this abuse continues today in 2003.

COLLINS: But some of this is a little bit complicated. I mean, how can facts and witnesses from that 1993 case be actually used in this case now if there was a confidential civil settlement?

DWORIN: The civil settlement has nothing to do with criminal activity. If the victim from 1993 agrees to testify, then that information can and will be used in the criminal matter that's ongoing today.

COLLINS: I have got to ask you, Mr. Dworin, I'm not sure if you saw it or not, but we would be curious to know what you made of Jackson's appearance on Capitol Hill this week.

DWORIN: Public relations appearance. That's the only thing I could think about.

COLLINS: You don't think he was trying to distract public attention from the child molestation charges against him?

DWORIN: It's hard to say. He craves publicity one way or another. And this is his way of gaining publicity.

COLLINS: All right. Bill Dworin, we appreciate your time so much this morning, sir.

We want to remind everyone, of course, that Michael Jackson has pleaded not guilty to all of the charges against him -- Bill.

HEMMER: We're at 20 minutes past the hour, 10 minutes from the opening bell on Wall Street. It should be a significant day, too. A sizzling jobs report is out. Is the economy turning a corner?

Andy has that. Back in a moment with Andy and Jack after this.

(COMMERCIAL BREAK)

HEMMER: Six minutes from the opening bell. Talking about jobs this morning. Talking about cars, too. Andy Serer is "Minding Your Business," back with us here.

What did you say, off the charts last hour? ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Absolutely. Off-the-charts report crossed the table a little while ago. We're talking about job creation in the month of March.

Fantastic; 318,000 jobs created. We were only looking for 120,000. That's 188,000 more than anticipated.

As you might expect, stock futures are surging at this point. Bond futures are plunging, however. The bond market hurting right now because some people thinking this might make the fed have to raise interest rates. The dollar is really strong as well.

We'll be watching this. But great news for the White House. And, of course, the economy as well.

HEMMER: I bet it is. Listen, if you want to get a vacation and a car, FedEx is going to do it for you, delivery?

SERWER: Yes. I mean, this is a company who will deliver anything. And now they're really putting it to the test. They're going to deliver your car for your vacation. Say you want to bring your car with you...

HEMMER: You're own car?

SERWER: You're own car with you when you go on vacation. FedEx is now saying they'll do it for you. And it will cost you a little bit of money, as you might expect. And they won't do it overnight.

Here's what you got: it will take about a week. And you can see, $1,750 to go to L.A. and New York, each way, or Miami to New York is $1,000.

Now, what this is really for, you guys, though, is snowbirds. Say people who live in the northeast go to Florida for half the year. Elderly people don't want to drive, but they love their wheels, love their cars. FedEx will get it down there for them.

HEMMER: You could rent a plane for that price. Couldn't you?

SERWER: You can go to Venezuela and get gas...

HEMMER: That is true, too. Do we have time for the Lincoln Town Car?

SERWER: Yes. This is a New ballistic protection system. Lincoln's rolling out 300 of these babies, if you really need the extra security. Only $144,000, though.

It's not bulletproof, they say, but, you know, basically you're not going to get anything through there -- 6,200 pounds. That compares to about 4,000 pounds.

HEMMER: Who's buying that thing?

SERWER: People who really need security. CEOs, things like that.

HEMMER: Yes. And have cash.

SERWER: Yes.

HEMMER: All right. Thanks, Andy.

SERWER: You're welcome.

JACK CAFFERTY, CNN ANCHOR: I understand a fleet of them have been ordered for the CNN management. That's just a rumor.

SERWER: Not confirmed.

CAFFERTY: No.

COLLINS: Question of the Day, Jack?

CAFFERTY: Thank you.

COLLINS: You're welcome.

CAFFERTY: The newest reality show stars the British billionaire Sir Richard Branson. It airs on the "F" word network. And it will follow the CEO of The Virgin Group and the contestants on a six-week tour of the world. Every week, they'll eliminate one contestant, literally leaving them on the airport tarmac while the rest of them get on the plane and fly away.

We thought that was a good idea for the Question of the Day. The whole thing following the success of Trump's "The Apprentice." So the question we asked this morning is, who should host a reality show and who shouldn't?

And we've gotten quite a few e-mails, beginning with Lance from Chapel Hill, North Carolina. "Our society's become enamored with seeing others in embarrassing positions. We seem to relish at the misfortune of others, and there are those willing to put themselves in awkward situations for the money. I wish we could get rid of them all and curb your appetite for this type of feel good at other's expense type of programming."

I love to feel good at other people's expense, don't you?

SERWER: That's us.

CAFFERTY: Murray in Baton Rouge, Louisiana: "Jack, great idea for one episode of a reality show, and as much as he'll be there to hold his hand, the September 11 Commission could show Bush testifying while Dick Cheney drinks a glass of water."

That's terrible.

Hal in Missouri: "I like the show "When Good Times go Bad." The most compelling reality TV involves disasters that are caught on video. In that spirit, why not a show for Donald Trump's barber?" And Tom in West Virginia, he writes in conjunction with something that actually happened on this program a couple of days ago. "The best reality TV show I have seen in a long time is the one where this girl put her hand over this guy's mouth and infected him with a virus."

HEMMER: Come on.

CAFFERTY: It should go a long way in persuading people to stay home when they're sick, or at least to wash their hands. Hope the guy doesn't get pregnant, too."

Boy, me, too.

HEMMER: She was putting a muzzle on you is what she was doing.

CAFFERTY: Yes. And I do have a cold. And I think that's where I caught it.

HEMMER: Come on.

SERWER: You having a little morning sickness, though?

CAFFERTY: No morning sickness, no. I don't have that.

SERWER: Yes, OK.

HEMMER: He's got to drink water. And three times as much as you think you need. You'll get all that stuff out of your body.

SERWER: He's sick. You've been trying to tell him that for days. He's sick. It didn't work.

HEMMER: I know, because he's not doing it. By the time you come in here on Monday, you will say, Hemmer, you are so right.

CAFFERTY: Even if I felt better, I wouldn't say that.

SERWER: No, because he's getting mileage here big time.

CAFFERTY: You've been hanging out with Gupta.

HEMMER: And I know better.

CAFFERTY: Take three of these and call me sometime.

HEMMER: Thank you, Jack. "PEOPLE IN THE NEWS," by the way, this weekend on Donald Trump, if you're so inclined. After the "IN THE MONEY" program.

CAFFERTY: What's that?

HEMMER: "PEOPLE IN THE NEWS" this weekend is doing Donald Trump. It's a good show, too.

CAFFERTY: Oh, they are? HEMMER: In a moment here, the Fallujah fallout. This week's brutal attacks with security contractors in the spotlight. What's their role in the midst of continuing violence? We'll get to that.

Bottom of the hour, opening bell, too. Just a minute away.

(COMMERCIAL BREAK)

HEMMER: Welcome back. Good morning, again -- 9:30 in New York. Heidi Collins in today for Soledad O'Brien.

We taking care of you?

COLLINS: Oh, yes.

HEMMER: Yes, so far?

COLLINS: Yes. The throat lozenges and all.

HEMMER: Twenty-nine minutes to go.

COLLINS: That's right.

The news, though, this morning, the four men killed in Fallujah this week were civilian contractors, as you know. There is a surprising number of private security forces in Iraq. We're going to hear about the dangers and what these civilians are doing there.

This morning, though, with the news, we begin in Spain. More details now about the bomb found along the high-speed rail line south of Madrid just hours ago. Experts reportedly said the bomb contained 22 to 24 pounds of explosives, possibly dynamite.

Bullet train service between Madrid and Seville has been stopped as a result. The incident comes three weeks after those deadly Madrid train attacks that killed nearly 200 people.

Israeli police say troops have stormed a disputed holy site in Jerusalem. Soldiers used stun grenades to pacify Palestinians throwing rocks at the Al Aqsa mosques. There were a number of injuries. At least 14 people have now been taken into custody.

Police in Madison, Wisconsin, continuing to search for Audrey Seiler's suspected abductor and are expected to release some new information at 11:00 a.m. Eastern this morning. CNN will have live coverage of that news conference.

A police stet sketch shows him to be a white man in his late 20s or early 30s. The Wisconsin student says the man led her away at knife point this past weekend. She was later found alive after a four-day disappearance.

And Massachusetts residents continue to fight floodwaters as the rains finally tapers off. The worst of the slow-moving storm is over, after dumping up to six inches of rain in some areas. Flooding has shut down schools and highways. Some firefighters used wraps (ph) to assist stranded motorists. Wow.

(WEATHER REPORT)

HEMMER: Back to Iraq now, where coalition officials investigating a loud explosion ringing out in the capital city of Baghdad a bit earlier today. Also, the military confirming with us here at CNN the deaths of two more soldiers in Iraq.

A roadside bomb killed a member of the 1st Armored Division in Baghdad today. And yesterday, the military says enemy action caused a Marine's death in a province known for insurgent activity. Meanwhile, the U.S. promises to respond to the killings of those four security contractors in Fallujah on Wednesday.

CNN contributor and security terrorism expert Kelly McCann with us now. His company supplies security for clients in Iraq. And he's back with us from D.C.

Kelly, welcome back to AMERICAN MORNING. I know you've been in Baghdad yourself. You know the country quite well. How important is the security detail for these private contractors to the work that's going under way in Iraq today?

KELLY MCCANN, SECURITY TERRORISM EXPERT: Infrastructure couldn't happen without contractors, Bill. I mean, contractors on the battlefield is nothing new. I mean, it's happened in every hostile area.

I mean, the bottom line is, infrastructure won't be attained without contractors. Military can't do it.

HEMMER: How would you gauge their ability to keep safe, when they're driving around in SUVS and they're wearing thing vests, and they're facing literally RPGs coming at them.

MCCANN: Targeting is a problem. And it's primarily a problem based on time and place predictability of routine events. In other words, milk runs, where you have to do things at a particular time based on the work schedule.

And, secondly, the high visibility vehicle signature that you saw yourself when you were in Iraq. I mean, a white SUV late model is probably not going to be an Iraqi. It's going to be an American contractor, a westerner, a Department of Defense civilian. And that is a big problem.

HEMMER: Don't know if you saw the story in The New York Times this morning. The title of the story is "Need an Army? Just Pick up the Phone."

In the body of that story, they write -- I'm quoting now -- "Shouldn't war be a government function? Why rely on the private sector for our national defense even if it's largely a supporting role."

Now, you suggest it's always gone on in the history of warfare. How do you defend an article that makes an allegation like that?

MCCANN: Well, I can't defend it. And I wouldn't even -- they've got it wrong. And the reason they've got it wrong is, the contractors that are there are not engaged in combat. In other words, they're not listed as combatants.

Actually, the DD form 248 that you get and have in your possession allows you to accompany force and basically -- accompany forces, and that's for two purposes. One is combat support and one is combat services support. But you are not to engage in battlefield activity.

That doesn't mean that you don't have the inherent right to self- defense or provide security that the military otherwise wouldn't for dignitaries. So, again, there's always a knee-jerk reaction. The term "mercenaries" comes up, et cetera, and people just get it wrong.

The bottom line is, the contractors over there are professional men that come from special operations community, are former police officers, et cetera, and have appropriate training. They know the risks before they go into countries. Again, a little bit of hyperbole I think there, Bill.

HEMMER: How well do you know the company Black Water? We spoke with a member of the -- family member -- brother who had lost his own brother there this week. This company responsible for Paul Bremer's security. How reputable?

MCCANN: Very reputable. Good company. They draw largely from the former SEAL community. They have an excellent training facility, excellent training regiment. They have a good reputation.

Again, Bill, what happened is not an indication of anything that those gentlemen might have done differently or wrong. It's an indication of the single tenet that Iraq is a very dangerous place.

It's dangerous to you if you are a terrorist because you could get killed by coalition forces. It's dangerous if you're a contractor. You could be targeted.

It's dangerous if you're in the military, as we say. There was just another incident this morning. It's just a bad place.

HEMMER: Thanks, Kelly, for sharing your thoughts. Appreciate it. Kelly McCann...

MCCANN: Thanks, Bill.

HEMMER: You got it.

COLLINS: We're watching the markets. There's a rally. Dow up about 120 points or so. Andy is going to be back with more on that in just a few minutes.

(COMMERCIAL BREAK) COLLINS: Hey, a lot going on in the market. We want to get straight to it with Andy Serwer. We haven't talked too much about it, but now good numbers, right?

SERWER: Yes, that's right. Of course, the stock market responding to that jobs report this morning. We created over 300,000 jobs.

Last month, look here. Dow Jones industrials up over 90 points. Was up over 100. We're still hanging in there. That's real good news.

Nasdaq really flying, up over 30 points. Bond may be easing back a little bit. Kind of a broad rally across the board.

Of course that 300,000 number, biggest number since April of 2000, going back to the Clinton administration. Obviously, the people in the White House delighted with that.

And manufacturing sector, also, at least not losing jobs, Heidi. For the first time in 43 months we didn't lose any jobs in that sector. So that's the big headline today. And Wall Street's responding.

COLLINS: All right. Good headlines they are.

SERWER: Yes, they are.

COLLINS: Thanks, Andy.

HEMMER: Back with Jack and the Question of the Day.

CAFFERTY: Thank you, sir.

The question is this: Who should and who should not host a reality TV show, given the success of "The Apprentice" that Mr. Trump is doing over on NBC?

Gene in Buffalo, Oklahoma writes: "I have spent 35 years as an educator in Texas and Oklahoma. If the public wants reality, then someone should film a series which reflects the real lives of many American students. Maybe we could see why so many children are left behind."

And, finally, Rick says, "Jack should host a show. The person who could best pretend to be a Yankee curmudgeon-type news anchor while really pushing forward a left wing agenda would get Jack's job."

SERWER: Wow. I didn't know you were that complicated.

CAFFERTY: I didn't either.

SERWER: You know what's interesting? Richard Branson, who we were talking about with this show, I mean, he is the biggest publicity hound in the world.

CAFFERTY: Oh, yes.

SERWER: I mean, the guy jumps off, skydives. But he does get the job done in terms of generating interest in his companies, right?

CAFFERTY: Indeed he do. I mean, we gave him a little bit of free publicity right here this morning.

SERWER: Yes, that's right.

Nice to have you with us, Heidi. Stop in any time.

COLLINS: Hey, thanks.

HEMMER: Are you going to read this (UNINTELLIGIBLE) right here?

COLLINS: Don't forget about "IN THE MONEY?" Come on. This is your moment.

CAFFERTY: Oh, excuse me. Yes.

HEMMER: It's gone now.

CAFFERTY: It's gone. Are we doing "IN THE MONEY?" This -- here's what we're going to do quickly on "IN THE MONEY"...

If you live in a county that has a casino, statistics are you're more likely to go bankrupt. The gambling industry insists there's no connection. Other people disagree. We'll take a look at that issue.

Oh, you know who we're also going to have on? We have the CEO of Air America on, the new liberal radio network. Going to join us on "IN THE MONEY."

COLLINS: All right, Jack. Look forward to that.

CAFFERTY: We get all the cool guests.

COLLINS: Yes, you do.

All right. Speaking about cool guests, talk about going the extra mile. Charlie Hamilton will cover more than 11,000 miles in a cross-country trip that includes two of his favorite things: baseball and bicycling.

His goal is to visit all 30 major league ballparks and raise $125,000 for cancer research. Charlie's mission is worthy of our weekly "Extra Effort" segment.

He joins us from Turner Field in Atlanta, where his journey will begin tomorrow.

So, Charlie, did you get a good night's sleep?

CHARLIE HAMILTON, BICYCLING CROSS COUNTRY FOR CANCER RESEARCH: I'm sorry. Could you repeat that? COLLINS: It's a little loud behind you there, isn't it? I'm just wondering if you're going to get a good night's sleep tonight, because you have a long way and a long journey ahead of you.

HAMILTON: Yes, I sure do. It's 11,000 miles, six months. A whole baseball season.

COLLINS: So, are you looking forward to this? I mean, we are looking at a map now of how far you are going to go. Quite the agenda that you have. How did you come up with this idea? Why do you want to do it?

HAMILTON: Well, I have always been a huge baseball fan, and I have also done some cycle touring in the past. And I thought I'd combine the two together.

It was actually -- my wife kind of inspired me when she asked me what I would do if I could do anything. And I came up with this.

COLLINS: Tell us a little bit about the charity that you will be riding for.

HAMILTON: It's a great charity. I'm trying to raise money for the Dana-Farber Cancer Institute, which helps treat people locally in Boston, but also does research that's been used all around the world. And I'm riding for the Pan-Mass Challenge, which is a group that raises money that goes through the Jimmy Fund to the Dana-Farber Cancer Institute. So it's really a great cause.

COLLINS: I understand you won't be riding alone. You get a little bit of motivation from a pedal partner that you have, a 15- year-old guy. Tell us a little bit about him.

HAMILTON: He's a great kid. I got to meet him last week in Boston. And he is really going through a tough time, but he's also pretty upbeat.

And hopefully -- well, his treatment should be done soon. And it sounds like his prognosis is really good. So it's just another example of the great work that Dana-Farber does.

COLLINS: What do you think about when you ride all those miles, after mile, after mile?

HAMILTON: You can get pretty crazy sometimes. Sometimes you get a song stuck in your head and you just want to cut your head off. But that's...

COLLINS: Don't do that. All right. Charlie, we certainly appreciate you being with us today. We wish you the best of luck with a very long journey.

And a great idea that you came up with. Thanks so much, Charlie. Good luck to you.

HAMILTON: OK. Yes. Thank you very much. COLLINS: And you can learn more about Pam-Massachusetts Challenge at pmc.org. And to help Charlie reach his goal of raising $125,000, you can go to his personal Web site at hitforthecycle.org.

HEMMER: Good for him. Best of luck to you, $125,000.

COLLINS: Yes. I hope he has good weather.

HEMMER: Yes. And get that music out of his head. AMERICAN MORNING theme music probably.

COLLINS: I bet that's what it is.

HEMMER: Let's get a break here.

In a moment, coming up on CNN next hour, a developing story in Madison, Wisconsin, involving that university student found after a four-day disappearance. What are the details? What are police saying today? Daryn Kagan has that next.

We're back in a moment here on AMERICAN MORNING right now.

(COMMERCIAL BREAK)

HEMMER: We've got to run. Have a great weekend.

COLLINS: Little basketball this weekend, possibly?

HEMMER: Yes. A little hoops this weekend. Who do you like, Heidi?

COLLINS: I would say Duke, but they beat Maryland, so...

HEMMER: Yes. So you don't like Duke.

COLLINS: Yes.

CAFFERTY: Well, Duke's in the final four. They can run it all.

COLLINS: Yes, I know. But Maryland's not.

SERWER: She can't root for them.

CAFFERTY: Yes. OK. Well.

COLLINS: Oh well. Moving right along.

HEMMER: Here's Daryn Kagan at the CNN Center.

SERWER: Well, Soledad's not even here...

(CROSSTALK)

HEMMER: Have a great weekend, Daryn. Good morning to you.

DARYN KAGAN, CNN ANCHOR: This inside tip, Billy: Connecticut. HEMMER: Yes? You like it?

KAGAN: You can't be the size, depth.

HEMMER: I like the Huskies, too.

KAGAN: Yes.

HEMMER: But what's interesting about the women from UConn are playing at the same time of the final four on the ladies' side, too. So that' school's got a lot to cheer about.

KAGAN: Yes. Good tradition there.

HEMMER: Have a good weekend.

KAGAN: You guys have a great weekend, the first one of April in New York City. We'll get started here at CNN headquarters in Atlanta. I'm Daryn Kagan.

Let's go ahead and check the headlines at this hour.

Spanish authorities confirm to CNN the discovery of dynamite and detonation cord along the high-speed rail line linking Madrid with Seville. Bullet train service has been halted, affecting thousands of travelers. Spanish media reports the 20 to 25-pound package was discovered by a railway worker.

Iraqi police are the latest targets of the insurgency. An attack in Baquba against a police convoy killed at least two officers and wounded others. And in Fallujah, the U.S. military is vowing to get those responsible for the butchering of four American civilians. More on that story in just a moment.

In Jerusalem, Israeli police and Palestinians clashed today outside of a holy site. It apparently began with Palestinians throwing rocks at Jews at the Western Wall. Israeli police rushed in with stun grenades and rubber bullets. The site is sacred to both Muslims and Jews, and is a scene of frequent confrontation.

And mark your calendars.