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American Morning

Mortar Strike in Samarra Kills four U.S. Soldiers; Kidnapped Marine Reported Safe in Lebanon

Aired July 08, 2004 - 07:30   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.


BILL HEMMER, CNN ANCHOR: Welcome back, everybody. Good morning. 7:30 here in New York. Heidi Collins is working for Soledad. Hope she's getting some good sleep, huh?
HEIDI COLLINS, CNN ANCHOR: Yes, definitely.

HEMMER: She could use it.

Also, if you're just with us now, moments ago you saw the videotape in Houston, former Enron CEO Ken Lay turning himself in to prosecutors to face charges stemming from the collapse of the energy company he used to run. Lay maintains his innocence. A big story that we will continue to track throughout the morning here.

COLLINS: It's been a long time, too.

HEMMER: Yes.

COLLINS: Two and a half years for that.

Also, the family of Wassef Hassoun, who was apparently kidnapped in Iraq, now says the Marine corporal is safe in Lebanon, and the military is saying there are indications that is true. We'll go live to Hassoun's hometown in Utah in a few minutes to get a report on what exactly what his family knows.

HEMMER: That has been a roller coaster ride.

COLLINS: Yes.

HEMMER: Jurors in the Scott Peterson trial have some dramatic testimony now to consider. Prosecutors showing the jury their theory of how they think Laci Peterson's body was taken and then dumped in the waters of northern California. A report in that coming up in a moment from California.

COLLINS: All right. But now to the situation in Iraq, where a mortar strike north of Baghdad has killed four U.S. soldiers. The new violence comes as the U.S. embassy in Lebanon says it has what it calls credible evidence that missing Marine Wassef Hassoun is now in that country.

We have two reports this morning. Jane Arraf is live in Baghdad and Miguel Marquez is live from Hassoun's hometown of West Jordan, Utah. We begin, though, with Jane Arraf.

Jane -- hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Hi, Heidi.

It sounds like a direct hit from a mortar attack in the town of Samarra, about 70 miles northwest of Baghdad, where mortars early this morning were fired at an Iraqi National Guard headquarters, also used by U.S. soldiers. According to the 1st Infantry Division, four soldiers are dead, along with one Iraqi National Guardsman. Another American soldier is still unaccounted for and 20 more wounded.

Now, a military spokesman says that they figured out by radar where the mortars were coming from, and fired mortar rounds back. But, again, a mortar attack on what sounds like a joint center for the U.S. military and the Iraqi National Guard north of Baghdad has killed four American soldiers -- Heidi.

COLLINS: Jane, we know you'll keep your eye on that situation for us.

Also now to Miguel Marquez, who is coming to us live from Corporal Wassef's hometown of West Jordan, Utah.

Miguel -- what's the latest there now?

MIGUEL MARQUEZ, CNN CORRESPONDENT: Well, the latest is, is that a source close to the family tells CNN that the corporal is with his family in Lebanon, and they expect that he will make contact and will be in U.S. hands within the next 24 hours.

Now, that bit of information came about 12 hours ago. So, we expect in the hours ahead that this thing may come to some sort of rapid conclusion. But there have been so many twists in the story.

One more twist. I just got off the phone a short time ago with a public information officer with the Marine Corps in Washington, D.C. And she does, in fact, confirm that the Naval Criminal Investigations Service is looking into the matter of the corporal's disappearance, saying that they are treating it as a missing person at this point. And the Criminal Investigation Service, even though it has criminal in the name, isn't necessarily -- it doesn't mean that there's a criminal investigation ongoing. But they are definitely looking into questions as to why that person may have disappeared.

He is still officially listed as captured on the Pentagon's Web site, but the family here in suburban Salt Lake hopes that all of this mystery soon comes to an end.

(BEGIN VIDEO CLIP)

TAREK NOSSEIR, FAMILY SPOKESMAN: The family really wants a little bit of peace and to have an opportunity to spend time with their family and kind of, you know, gather their emotions and thoughts.

(END VIDEO CLIP) MARQUEZ: The next step now for the family here is to hopefully get more information from him. That source telling CNN yesterday as well that the family had been contacted by Corporal Hassoun here in Utah and his family in Tripoli, and that he had told them he had contacted the embassy, the U.S. embassy, in Beirut, Lebanon.

All of that, though, is still somewhat unconfirmed, although U.S. State Department officials are saying that they do have pretty good information that he is in Lebanon. The question is: Where is he, and how did he get there -- Heidi.

COLLINS: And maybe we'll find out today. A very complicated story. All right, Miguel Marquez coming to us from West Jordan, Utah, this morning. Thanks, Miguel.

HEMMER: It's about 25 minutes now before the hour.

In the Scott Peterson murder trial, prosecutors showed some new pictures of the victims' remains yesterday, and they used an unusual re-enactment to try and prove their theory.

CNN's Ted Rowlands reports from Redwood City this morning.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): For the second straight day, graphic photographs of the remains of both Laci and Connor Peterson were shown in court as prosecutors laid out one of the most important parts of their case.

Jurors heard the details of how the two sets of remains were found and then processed by law enforcement. At one point, when a photograph of Connor Peterson's tiny femur bone was displayed, Scott Peterson's mother broke down. Laci Peterson's family did not attend the morning session because of the graphic nature of the testimony.

For prosecutors, it was also a chance to remind jurors that the bodies were found along the shore of the San Francisco Bay, where Peterson also was the day his wife disappeared.

Some legal analysts say the prosecution should have done more with this opportunity.

DEAN JOHNSON, LEGAL ANALYST: They didn't bring it home to say, yes, this was a horrible thing that did. Now the second piece of the puzzle, Scott Peterson did it, and here's why we think so. And they squandered, I think, another large opportunity.

ROWLANDS: Laci Peterson's family returned to court when the graphic testimony finished. Prosecutors brought up witnesses from the Berkeley Marina to testify on Christmas Eve, there were relatively few people fishing, trying to establish that Peterson could have dumped his wife's body without being detected.

But on cross-examination, Peterson's attorney, Pat Harris, brought up the fact that besides the people fishing, there were others in the area, and more than 100 people actually live in boats docked at that marina.

(on camera): Late in the day, over defense objections, prosecutors showed the jury photographs of a pregnant woman the same size and weight as Laci Peterson, inside Peterson's truck and boat, trying to show jurors that Peterson could have used both his truck and boat to dispose of his pregnant wife's body.

Ted Rowlands, CNN, Redwood City, California.

(END VIDEOTAPE)

HEMMER: Lawyers are not in court today. Apparently the death of a relative for one of the attorneys now will postpone that case until Monday of next week.

Back to Houston, Texas, we'll show you some videotape. Moments ago, Ken Lay now checking out after he checked in at the prosecutors (UNINTELLIGIBLE) offices there in Houston, Texas, surrendering now, and we are told at the age of 62 that an indictment has been returned against him, according to Justice Department officials and sources -- connected, rather, to that case. A brief appearance.

Jeff Toobin -- what happens in matters like these?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Well, he'll be arraigned. That means he'll appear before a federal judge or a federal magistrate. He will be asked if he understands the charges again him. He'll enter a plea of not guilty. He will say the words, "not guilty." And then the scheduling of his case will begin.

One of the interesting things that we'll learn today is whether prosecutors want to charge -- want to try Ken Lay and Jeffrey Skilling, the former CEO, together. Will they try to make it one trial? Usually they will. Usually prosecutors want everybody tried together. Defense attorneys tend to want the trial separate. That's one of the legal dramas that will start to be played out today.

COLLINS: Any indication at this point, Jeff, when it could go to trial?

TOOBIN: The relevant fact, I think, is that it certainly won't be before November. I don't think there is virtually any way a trial of this complexity could be tried before November. I think six, eight months is more likely.

COLLINS: You're talking about before the elections.

TOOBIN: Before the elections, right. I don't thinks that is within the realm of possibility. But it will be in the news during that period.

COLLINS: Yes, it will indeed. All right, Jeffrey Toobin, thanks so much.

TOOBIN: OK. COLLINS: And still to come on AMERICAN MORNING, an update on the Tour De France, or the "tour de Lance" as we've heard it called, Lance, Lance. Lance Armstrong's team had a banner day. But was it enough for Armstrong to pick up some ground in the standings? I think it was.

HEMMER: Also in a moment here, why John Kerry and John Edwards might want to start worrying about the (UNINTELLIGIBLE) vote? "Political Pop" still to come this hour.

(COMMERCIAL BREAK)

(WEATHER BREAK)

COLLINS: And I can't believe what I just heard, something about Jack saying that he's not always right.

JACK CAFFERTY, CNN ANCHOR: No, but on this particular item we were discussing, I am absolutely correct.

HEMMER: We call it an off-line discussion.

CAFFERTY: Yes, we were having a little in-house situation. "The Cafferty File," is that new? I guess that's new. Was that up there yesterday?

HEMMER: That's our fancy new graphics package there, Jack.

COLLINS: Do you like it?

CAFFERTY: We must have gone to the hip for a bundle on that. How much of Ted Turner's money did we blow buying that deal?

Dick Cheney can be president. Next? That was President Bush answering a question about the qualifications of John Edwards versus Dick Cheney talking to reporters yesterday. But not everybody agrees with the president.

Al D'Amato, a former New York senator, was on New York 1 yesterday, and he suggested that Bush should consider replacing Cheney on the ticket with either Colin Powell or Senator John McCain or perhaps even Rudy Giuliani.

The question this morning: Should President Bush consider replacing Dick Cheney?

Ben in Minneapolis, Minnesota: "For all those who have had a boss take credit for their work, I say, yes. George Bush should replace Dick Cheney with himself, and Dick Cheney should run for president."

Robin in Fort White, Florida: "Don't you mean, will Cheney replace Bush?"

Brenda in Townsend, Georgia: "No. I'm originally from Vermont. I'd like Mr. Cheney to remain at vice president, if for no other reason that I approve of his words to Patrick Leahy. I've wanted to say those words to Mr. Leahy myself for years."

We can't, unfortunately, tell you what those words are, because I would lose my job immediately, and I have four children.

Tony in Roscoe, Illinois: "George Bush replacing Dick Cheney would be like Charlie McCarthy replacing Edgar Bergen."

That would -- see, the puppet and the puppeteer as Charlie McCarthy and Edgar Bergen.

We spent as much for that as we did for the little (UNINTELLIGIBLE).

HEMMER: Got it. I was there with you the whole time.

CAFFERTY: Huh? You got it, right?

HEMMER: (UNINTELLIGIBLE) my apartment, by the way.

CAFFERTY: What's that?

HEMMER: "The Cafferty File," just for you.

CAFFERTY: Yes?

HEMMER: You're my guy. Thank you, Jack. Much more throughout the morning.

CAFFERTY: I've got this lifesaver now.

HEMMER: Enjoy that.

Let's get a break here. In a moment, we're going to get you back to Iraq and the story there developing in Samarra. Apparently a mortar round was fired into a U.S. area. There are casualties. Top stories after the break here.

(COMMERCIAL BREAK)

COLLINS: Just about 47 minutes past the hour. Time for a look at some of today's other news with Daryn Kagan this morning.

Hey -- Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, we have a developing story now. Just about 20 minutes ago, former Enron chief Ken Lay surrendering to authorities in Houston the day after he was indicted by a grand jury. The indictment, currently sealed, may be unsealed sometime today. Lay has said that he committed no crimes while at the helm of the energy company.

Let's turn overseas now, where there has been more violence in Iraq. Word of a deadly mortar attack on the National Guard headquarters in Samarra coming in about an hour ago. We're showing you now some pictures that are just coming in from the scene there. A U.S. military spokesman says that at least four American soldiers and one Iraqi Guard were killed, and one other U.S. soldier is unaccounted for. Some 20 other soldiers were wounded in this Samarra attack, which is just north of Baghdad.

Israeli troops and Palestinian fighters have been clashing in northern Gaza. A Palestinian source is saying that at least 10 Palestinians were killed overnight, including some militants. The firefight is part of an ongoing military operation in the area. More than a dozen people have been injured.

And on a much, much lighter note, Lance Armstrong is wearing the leader's yellow jersey in the Tour de France. Armstrong grabbing the jersey yesterday despite some very wet conditions, leading his U.S. Postal Service squad at an average speed of 33.3 miles per hour. That is the third fastest pace in a team sport.

Today, the fifth leg of the tour, a 125-mile ride. More rains are expected.

And, Heidi, I don't know how carefully you're watching this tour, but a big controversial rule change this year. Even though Lance Armstrong and his team won big yesterday, they won't get as much credit as they would have in years past.

COLLINS: Right.

KAGAN: Tour officials are trying to keep this tight...

COLLINS: Yes.

KAGAN: ... and they're trying to keep it competitive until the end.

COLLINS: It's a very complicated scoring system, that's for sure.

KAGAN: Yes.

COLLINS: He's still 55 seconds ahead, though, of his rival there, Yan Urie (ph) of Germany.

HEMMER: Hey, Daryn?

KAGAN: Yes.

HEMMER: Heidi is wearing the yellow jersey for us today.

COLLINS: I love that.

KAGAN: She's our winner today!

HEMMER: She's our girl.

KAGAN: Yes.

COLLINS: He's quick, isn't he? All right, Daryn, thanks so much. We'll chat again soon. And still to come this morning, "Political Pop." What does Dick Cheney have that John Edwards doesn't? President Bush takes a big swipe at the Democratic running mate. That's ahead in "Political Pop" -- Andy.

ANDY SERWER, "FORTUNE" MAGAZINE: We'll check in on the markets a little bit here. Yesterday, we broke a string of three down days in a row, just barely. Stocks eked out a small gain. Also, we'll bring you the latest developments in the Ken Lay indictment. It's a big day that investors and employees of Enron have been waiting for, for a long time. Stay tuned.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. Time for a segment we call "Political Pop," sometimes serious, sometimes not. The panel decides that.

On the left, Democratic strategist Karen Finney back with us today.

Good morning, Karen.

KAREN FINNEY, DEMOCRATIC STRATEGIST: Good morning.

HEMMER: Holding the middle, John DeVore, political satirist from "Maxim" magazine.

John, how are you?

JOHN DEVORE, "MAXIM" MAGAZINE: Good morning, Bill.

HEMMER: Excellent.

Mark Simone, WABC radio talk show host back with us as well.

How are you doing?

MARK SIMONE, WABC RADIO HOST: Good.

HEMMER: Let's start with you, huh?

SIMONE: Uh-oh.

HEMMER: Yesterday the president says the difference between John Edwards and Dick Cheney is that -- quote -- "Dick Cheney can be president. Next." That was the quote. What did you think when you heard that?

SIMONE: Well, remember, Kerry basically said the same thing in January and February. Over and over again he said the guy has not got the experience, he's not qualified. And then in the mother of all flip-flops, he nominates him for vice president. And remember, this is his second choice. McCain was his choice. McCain had to practically get a restraining order to get Kerry to stop calling him. FINNEY: I don't know that the Republicans actually want to go down the slippery slope of talking about experience, because before George Bush was appointed to the post of president by the Supreme Court, he had been a failed oilman and a baseball team owner.

SIMON: Well, he was also the...

FINNEY: So, how does that qualify you to be president?

SIMONE: Well, let's just point out. He was the governor of Texas and did so well. He was the only one re-elected.

FINNEY: And about the same amount of time as governor of Texas, Edwards would be in the Senate.

DEVORE: What Bush said, I think puts him kind of like on the defensive, because he's defending Cheney with this statement. It's not the normal sort of like tough guy bluster that...

HEMMER: What, you don't think he was being a statesman with that response?

DEVORE: He was -- ideally, he would have cussed the reporter out the way that Cheney cussed out Pat Leahy.

(CROSSTALK)

DEVORE: I think that's what we need more of in politics.

HEMMER: Another thing he said, though: I will do well in the South this time, because the senator from Massachusetts does not share their values -- talking about people in the South. Is this a sore spot for Democrats?

FINNEY: I don't think it's going to be a sore spot at all. I mean, look at particularly North Carolina. I mean, I have family there. They've lost jobs. It's been a tough economy there. People are opposed to the war. Those are Southern values. What about the squeeze on the middle class? They share those values in terms of making sure that health care is affordable, education...

SIMONE: I think he meant the gay marriage and that sort of stuff are not big Southern values.

DEVORE: Well, North Carolina isn't really in love with Edwards either. I mean, I think it's a little typical...

FINNEY: Hey now!

DEVORE: ... for the Democrats to (UNINTELLIGIBLE) get the Southern vote.

HEMMER: Next topic here. Where's the charm gap, by the way? Where is Al Gore, by the way? That's our next topic.

FINNEY: Al Gore has finally gotten in touch with his inner alpha male, I'm happy to say actually.

DEVORE: It's not very pretty though.

FINNEY: Well, but you know what? It's important, because, you know, every time he's out there, he's firing up the base, which is important. He's reminding voters that every vote counts. Certainly anybody who is even thinking about voting for Nader has to look at Al Gore and realize that that would just be a waste.

DEVORE: Gore has made an amazing flip-flop, too, the poor man's Howard Dean, I think. You know, after Gore's endorsement of Dean, Gore has turned into this turnip-faced, like rabid pit bull that Dean does better than he does.

FINNEY: It's kind of ironic actually, given that the guy who used to be the most boring guy in Democratic politics is now like the wild card of the Democratic Party.

(CROSSTALK)

SIMONE: Gore has become the Kramer of politics. Nobody know what's he does for a living or what he's going say next.

FINNEY: But he keeps popping up!

SIMONE: Well, no.

HEMMER: The rumor is he's still in that undisclosed location. I think he may have switched there.

Next topic. Who's got better hair, John? Before you answer that, listen to this sound byte yesterday from the stump.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: We've got real plans. We've got a better sense of what's happening to America. And we've got better hair! And I'll tell you, that goes a long way.

(END VIDEO CLIP)

HEMMER: You're shaking your head, John!

DEVORE: Well, look, first of all, my big problem with Edwards, I think, for Kerry is that Edwards will accentuate what a long, wet noodle John Kerry is. I don't think he's going to fill the charisma gap, per se. And who has better hair? Well, it's obvious that Kerry spends more money on his hair.

HEMMER: Take a serious point. Does he have a point? Does he highlight the deficiencies of Kerry on the stump?

FINNEY: You know, I think a couple of things. I think they balance each other out. I don't think it's about deficiencies. I mean, that's what you're looking for when you choose your vice presidential person. You know, who is going to balance it out? So, George Bush needed somebody to bring in a little bit of intelligence and leadership, and John Kerry needed a little bit of charm. I mean, it will balance out in the end.

HEMMER: Mark?

SIMONE: The last guy to brag about his hair was Sam Malone on "Cheers." It's not a good sign. I mean, if you're talking about two people with great hair, you've got Paris Hilton and Nicole Richie, so nominate them.

HEMMER: I think we know who fills the charm gap now, huh? Vidal Sassoon. right? Mark and John, thanks. Karen great to see you.

FINNEY: Good to see you.

HEMMER: All right, back over to Heidi now -- Heidi.

COLLINS: Next hour, the fed's net has finally has dropped on Ken Lay. The latest on the Enron saga ahead on AMERICAN MORNING.

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 July 8, 2004 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Welcome back, everybody. Good morning. 7:30 here in New York. Heidi Collins is working for Soledad. Hope she's getting some good sleep, huh?
HEIDI COLLINS, CNN ANCHOR: Yes, definitely.

HEMMER: She could use it.

Also, if you're just with us now, moments ago you saw the videotape in Houston, former Enron CEO Ken Lay turning himself in to prosecutors to face charges stemming from the collapse of the energy company he used to run. Lay maintains his innocence. A big story that we will continue to track throughout the morning here.

COLLINS: It's been a long time, too.

HEMMER: Yes.

COLLINS: Two and a half years for that.

Also, the family of Wassef Hassoun, who was apparently kidnapped in Iraq, now says the Marine corporal is safe in Lebanon, and the military is saying there are indications that is true. We'll go live to Hassoun's hometown in Utah in a few minutes to get a report on what exactly what his family knows.

HEMMER: That has been a roller coaster ride.

COLLINS: Yes.

HEMMER: Jurors in the Scott Peterson trial have some dramatic testimony now to consider. Prosecutors showing the jury their theory of how they think Laci Peterson's body was taken and then dumped in the waters of northern California. A report in that coming up in a moment from California.

COLLINS: All right. But now to the situation in Iraq, where a mortar strike north of Baghdad has killed four U.S. soldiers. The new violence comes as the U.S. embassy in Lebanon says it has what it calls credible evidence that missing Marine Wassef Hassoun is now in that country.

We have two reports this morning. Jane Arraf is live in Baghdad and Miguel Marquez is live from Hassoun's hometown of West Jordan, Utah. We begin, though, with Jane Arraf.

Jane -- hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Hi, Heidi.

It sounds like a direct hit from a mortar attack in the town of Samarra, about 70 miles northwest of Baghdad, where mortars early this morning were fired at an Iraqi National Guard headquarters, also used by U.S. soldiers. According to the 1st Infantry Division, four soldiers are dead, along with one Iraqi National Guardsman. Another American soldier is still unaccounted for and 20 more wounded.

Now, a military spokesman says that they figured out by radar where the mortars were coming from, and fired mortar rounds back. But, again, a mortar attack on what sounds like a joint center for the U.S. military and the Iraqi National Guard north of Baghdad has killed four American soldiers -- Heidi.

COLLINS: Jane, we know you'll keep your eye on that situation for us.

Also now to Miguel Marquez, who is coming to us live from Corporal Wassef's hometown of West Jordan, Utah.

Miguel -- what's the latest there now?

MIGUEL MARQUEZ, CNN CORRESPONDENT: Well, the latest is, is that a source close to the family tells CNN that the corporal is with his family in Lebanon, and they expect that he will make contact and will be in U.S. hands within the next 24 hours.

Now, that bit of information came about 12 hours ago. So, we expect in the hours ahead that this thing may come to some sort of rapid conclusion. But there have been so many twists in the story.

One more twist. I just got off the phone a short time ago with a public information officer with the Marine Corps in Washington, D.C. And she does, in fact, confirm that the Naval Criminal Investigations Service is looking into the matter of the corporal's disappearance, saying that they are treating it as a missing person at this point. And the Criminal Investigation Service, even though it has criminal in the name, isn't necessarily -- it doesn't mean that there's a criminal investigation ongoing. But they are definitely looking into questions as to why that person may have disappeared.

He is still officially listed as captured on the Pentagon's Web site, but the family here in suburban Salt Lake hopes that all of this mystery soon comes to an end.

(BEGIN VIDEO CLIP)

TAREK NOSSEIR, FAMILY SPOKESMAN: The family really wants a little bit of peace and to have an opportunity to spend time with their family and kind of, you know, gather their emotions and thoughts.

(END VIDEO CLIP) MARQUEZ: The next step now for the family here is to hopefully get more information from him. That source telling CNN yesterday as well that the family had been contacted by Corporal Hassoun here in Utah and his family in Tripoli, and that he had told them he had contacted the embassy, the U.S. embassy, in Beirut, Lebanon.

All of that, though, is still somewhat unconfirmed, although U.S. State Department officials are saying that they do have pretty good information that he is in Lebanon. The question is: Where is he, and how did he get there -- Heidi.

COLLINS: And maybe we'll find out today. A very complicated story. All right, Miguel Marquez coming to us from West Jordan, Utah, this morning. Thanks, Miguel.

HEMMER: It's about 25 minutes now before the hour.

In the Scott Peterson murder trial, prosecutors showed some new pictures of the victims' remains yesterday, and they used an unusual re-enactment to try and prove their theory.

CNN's Ted Rowlands reports from Redwood City this morning.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): For the second straight day, graphic photographs of the remains of both Laci and Connor Peterson were shown in court as prosecutors laid out one of the most important parts of their case.

Jurors heard the details of how the two sets of remains were found and then processed by law enforcement. At one point, when a photograph of Connor Peterson's tiny femur bone was displayed, Scott Peterson's mother broke down. Laci Peterson's family did not attend the morning session because of the graphic nature of the testimony.

For prosecutors, it was also a chance to remind jurors that the bodies were found along the shore of the San Francisco Bay, where Peterson also was the day his wife disappeared.

Some legal analysts say the prosecution should have done more with this opportunity.

DEAN JOHNSON, LEGAL ANALYST: They didn't bring it home to say, yes, this was a horrible thing that did. Now the second piece of the puzzle, Scott Peterson did it, and here's why we think so. And they squandered, I think, another large opportunity.

ROWLANDS: Laci Peterson's family returned to court when the graphic testimony finished. Prosecutors brought up witnesses from the Berkeley Marina to testify on Christmas Eve, there were relatively few people fishing, trying to establish that Peterson could have dumped his wife's body without being detected.

But on cross-examination, Peterson's attorney, Pat Harris, brought up the fact that besides the people fishing, there were others in the area, and more than 100 people actually live in boats docked at that marina.

(on camera): Late in the day, over defense objections, prosecutors showed the jury photographs of a pregnant woman the same size and weight as Laci Peterson, inside Peterson's truck and boat, trying to show jurors that Peterson could have used both his truck and boat to dispose of his pregnant wife's body.

Ted Rowlands, CNN, Redwood City, California.

(END VIDEOTAPE)

HEMMER: Lawyers are not in court today. Apparently the death of a relative for one of the attorneys now will postpone that case until Monday of next week.

Back to Houston, Texas, we'll show you some videotape. Moments ago, Ken Lay now checking out after he checked in at the prosecutors (UNINTELLIGIBLE) offices there in Houston, Texas, surrendering now, and we are told at the age of 62 that an indictment has been returned against him, according to Justice Department officials and sources -- connected, rather, to that case. A brief appearance.

Jeff Toobin -- what happens in matters like these?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Well, he'll be arraigned. That means he'll appear before a federal judge or a federal magistrate. He will be asked if he understands the charges again him. He'll enter a plea of not guilty. He will say the words, "not guilty." And then the scheduling of his case will begin.

One of the interesting things that we'll learn today is whether prosecutors want to charge -- want to try Ken Lay and Jeffrey Skilling, the former CEO, together. Will they try to make it one trial? Usually they will. Usually prosecutors want everybody tried together. Defense attorneys tend to want the trial separate. That's one of the legal dramas that will start to be played out today.

COLLINS: Any indication at this point, Jeff, when it could go to trial?

TOOBIN: The relevant fact, I think, is that it certainly won't be before November. I don't think there is virtually any way a trial of this complexity could be tried before November. I think six, eight months is more likely.

COLLINS: You're talking about before the elections.

TOOBIN: Before the elections, right. I don't thinks that is within the realm of possibility. But it will be in the news during that period.

COLLINS: Yes, it will indeed. All right, Jeffrey Toobin, thanks so much.

TOOBIN: OK. COLLINS: And still to come on AMERICAN MORNING, an update on the Tour De France, or the "tour de Lance" as we've heard it called, Lance, Lance. Lance Armstrong's team had a banner day. But was it enough for Armstrong to pick up some ground in the standings? I think it was.

HEMMER: Also in a moment here, why John Kerry and John Edwards might want to start worrying about the (UNINTELLIGIBLE) vote? "Political Pop" still to come this hour.

(COMMERCIAL BREAK)

(WEATHER BREAK)

COLLINS: And I can't believe what I just heard, something about Jack saying that he's not always right.

JACK CAFFERTY, CNN ANCHOR: No, but on this particular item we were discussing, I am absolutely correct.

HEMMER: We call it an off-line discussion.

CAFFERTY: Yes, we were having a little in-house situation. "The Cafferty File," is that new? I guess that's new. Was that up there yesterday?

HEMMER: That's our fancy new graphics package there, Jack.

COLLINS: Do you like it?

CAFFERTY: We must have gone to the hip for a bundle on that. How much of Ted Turner's money did we blow buying that deal?

Dick Cheney can be president. Next? That was President Bush answering a question about the qualifications of John Edwards versus Dick Cheney talking to reporters yesterday. But not everybody agrees with the president.

Al D'Amato, a former New York senator, was on New York 1 yesterday, and he suggested that Bush should consider replacing Cheney on the ticket with either Colin Powell or Senator John McCain or perhaps even Rudy Giuliani.

The question this morning: Should President Bush consider replacing Dick Cheney?

Ben in Minneapolis, Minnesota: "For all those who have had a boss take credit for their work, I say, yes. George Bush should replace Dick Cheney with himself, and Dick Cheney should run for president."

Robin in Fort White, Florida: "Don't you mean, will Cheney replace Bush?"

Brenda in Townsend, Georgia: "No. I'm originally from Vermont. I'd like Mr. Cheney to remain at vice president, if for no other reason that I approve of his words to Patrick Leahy. I've wanted to say those words to Mr. Leahy myself for years."

We can't, unfortunately, tell you what those words are, because I would lose my job immediately, and I have four children.

Tony in Roscoe, Illinois: "George Bush replacing Dick Cheney would be like Charlie McCarthy replacing Edgar Bergen."

That would -- see, the puppet and the puppeteer as Charlie McCarthy and Edgar Bergen.

We spent as much for that as we did for the little (UNINTELLIGIBLE).

HEMMER: Got it. I was there with you the whole time.

CAFFERTY: Huh? You got it, right?

HEMMER: (UNINTELLIGIBLE) my apartment, by the way.

CAFFERTY: What's that?

HEMMER: "The Cafferty File," just for you.

CAFFERTY: Yes?

HEMMER: You're my guy. Thank you, Jack. Much more throughout the morning.

CAFFERTY: I've got this lifesaver now.

HEMMER: Enjoy that.

Let's get a break here. In a moment, we're going to get you back to Iraq and the story there developing in Samarra. Apparently a mortar round was fired into a U.S. area. There are casualties. Top stories after the break here.

(COMMERCIAL BREAK)

COLLINS: Just about 47 minutes past the hour. Time for a look at some of today's other news with Daryn Kagan this morning.

Hey -- Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, we have a developing story now. Just about 20 minutes ago, former Enron chief Ken Lay surrendering to authorities in Houston the day after he was indicted by a grand jury. The indictment, currently sealed, may be unsealed sometime today. Lay has said that he committed no crimes while at the helm of the energy company.

Let's turn overseas now, where there has been more violence in Iraq. Word of a deadly mortar attack on the National Guard headquarters in Samarra coming in about an hour ago. We're showing you now some pictures that are just coming in from the scene there. A U.S. military spokesman says that at least four American soldiers and one Iraqi Guard were killed, and one other U.S. soldier is unaccounted for. Some 20 other soldiers were wounded in this Samarra attack, which is just north of Baghdad.

Israeli troops and Palestinian fighters have been clashing in northern Gaza. A Palestinian source is saying that at least 10 Palestinians were killed overnight, including some militants. The firefight is part of an ongoing military operation in the area. More than a dozen people have been injured.

And on a much, much lighter note, Lance Armstrong is wearing the leader's yellow jersey in the Tour de France. Armstrong grabbing the jersey yesterday despite some very wet conditions, leading his U.S. Postal Service squad at an average speed of 33.3 miles per hour. That is the third fastest pace in a team sport.

Today, the fifth leg of the tour, a 125-mile ride. More rains are expected.

And, Heidi, I don't know how carefully you're watching this tour, but a big controversial rule change this year. Even though Lance Armstrong and his team won big yesterday, they won't get as much credit as they would have in years past.

COLLINS: Right.

KAGAN: Tour officials are trying to keep this tight...

COLLINS: Yes.

KAGAN: ... and they're trying to keep it competitive until the end.

COLLINS: It's a very complicated scoring system, that's for sure.

KAGAN: Yes.

COLLINS: He's still 55 seconds ahead, though, of his rival there, Yan Urie (ph) of Germany.

HEMMER: Hey, Daryn?

KAGAN: Yes.

HEMMER: Heidi is wearing the yellow jersey for us today.

COLLINS: I love that.

KAGAN: She's our winner today!

HEMMER: She's our girl.

KAGAN: Yes.

COLLINS: He's quick, isn't he? All right, Daryn, thanks so much. We'll chat again soon. And still to come this morning, "Political Pop." What does Dick Cheney have that John Edwards doesn't? President Bush takes a big swipe at the Democratic running mate. That's ahead in "Political Pop" -- Andy.

ANDY SERWER, "FORTUNE" MAGAZINE: We'll check in on the markets a little bit here. Yesterday, we broke a string of three down days in a row, just barely. Stocks eked out a small gain. Also, we'll bring you the latest developments in the Ken Lay indictment. It's a big day that investors and employees of Enron have been waiting for, for a long time. Stay tuned.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. Time for a segment we call "Political Pop," sometimes serious, sometimes not. The panel decides that.

On the left, Democratic strategist Karen Finney back with us today.

Good morning, Karen.

KAREN FINNEY, DEMOCRATIC STRATEGIST: Good morning.

HEMMER: Holding the middle, John DeVore, political satirist from "Maxim" magazine.

John, how are you?

JOHN DEVORE, "MAXIM" MAGAZINE: Good morning, Bill.

HEMMER: Excellent.

Mark Simone, WABC radio talk show host back with us as well.

How are you doing?

MARK SIMONE, WABC RADIO HOST: Good.

HEMMER: Let's start with you, huh?

SIMONE: Uh-oh.

HEMMER: Yesterday the president says the difference between John Edwards and Dick Cheney is that -- quote -- "Dick Cheney can be president. Next." That was the quote. What did you think when you heard that?

SIMONE: Well, remember, Kerry basically said the same thing in January and February. Over and over again he said the guy has not got the experience, he's not qualified. And then in the mother of all flip-flops, he nominates him for vice president. And remember, this is his second choice. McCain was his choice. McCain had to practically get a restraining order to get Kerry to stop calling him. FINNEY: I don't know that the Republicans actually want to go down the slippery slope of talking about experience, because before George Bush was appointed to the post of president by the Supreme Court, he had been a failed oilman and a baseball team owner.

SIMON: Well, he was also the...

FINNEY: So, how does that qualify you to be president?

SIMONE: Well, let's just point out. He was the governor of Texas and did so well. He was the only one re-elected.

FINNEY: And about the same amount of time as governor of Texas, Edwards would be in the Senate.

DEVORE: What Bush said, I think puts him kind of like on the defensive, because he's defending Cheney with this statement. It's not the normal sort of like tough guy bluster that...

HEMMER: What, you don't think he was being a statesman with that response?

DEVORE: He was -- ideally, he would have cussed the reporter out the way that Cheney cussed out Pat Leahy.

(CROSSTALK)

DEVORE: I think that's what we need more of in politics.

HEMMER: Another thing he said, though: I will do well in the South this time, because the senator from Massachusetts does not share their values -- talking about people in the South. Is this a sore spot for Democrats?

FINNEY: I don't think it's going to be a sore spot at all. I mean, look at particularly North Carolina. I mean, I have family there. They've lost jobs. It's been a tough economy there. People are opposed to the war. Those are Southern values. What about the squeeze on the middle class? They share those values in terms of making sure that health care is affordable, education...

SIMONE: I think he meant the gay marriage and that sort of stuff are not big Southern values.

DEVORE: Well, North Carolina isn't really in love with Edwards either. I mean, I think it's a little typical...

FINNEY: Hey now!

DEVORE: ... for the Democrats to (UNINTELLIGIBLE) get the Southern vote.

HEMMER: Next topic here. Where's the charm gap, by the way? Where is Al Gore, by the way? That's our next topic.

FINNEY: Al Gore has finally gotten in touch with his inner alpha male, I'm happy to say actually.

DEVORE: It's not very pretty though.

FINNEY: Well, but you know what? It's important, because, you know, every time he's out there, he's firing up the base, which is important. He's reminding voters that every vote counts. Certainly anybody who is even thinking about voting for Nader has to look at Al Gore and realize that that would just be a waste.

DEVORE: Gore has made an amazing flip-flop, too, the poor man's Howard Dean, I think. You know, after Gore's endorsement of Dean, Gore has turned into this turnip-faced, like rabid pit bull that Dean does better than he does.

FINNEY: It's kind of ironic actually, given that the guy who used to be the most boring guy in Democratic politics is now like the wild card of the Democratic Party.

(CROSSTALK)

SIMONE: Gore has become the Kramer of politics. Nobody know what's he does for a living or what he's going say next.

FINNEY: But he keeps popping up!

SIMONE: Well, no.

HEMMER: The rumor is he's still in that undisclosed location. I think he may have switched there.

Next topic. Who's got better hair, John? Before you answer that, listen to this sound byte yesterday from the stump.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: We've got real plans. We've got a better sense of what's happening to America. And we've got better hair! And I'll tell you, that goes a long way.

(END VIDEO CLIP)

HEMMER: You're shaking your head, John!

DEVORE: Well, look, first of all, my big problem with Edwards, I think, for Kerry is that Edwards will accentuate what a long, wet noodle John Kerry is. I don't think he's going to fill the charisma gap, per se. And who has better hair? Well, it's obvious that Kerry spends more money on his hair.

HEMMER: Take a serious point. Does he have a point? Does he highlight the deficiencies of Kerry on the stump?

FINNEY: You know, I think a couple of things. I think they balance each other out. I don't think it's about deficiencies. I mean, that's what you're looking for when you choose your vice presidential person. You know, who is going to balance it out? So, George Bush needed somebody to bring in a little bit of intelligence and leadership, and John Kerry needed a little bit of charm. I mean, it will balance out in the end.

HEMMER: Mark?

SIMONE: The last guy to brag about his hair was Sam Malone on "Cheers." It's not a good sign. I mean, if you're talking about two people with great hair, you've got Paris Hilton and Nicole Richie, so nominate them.

HEMMER: I think we know who fills the charm gap now, huh? Vidal Sassoon. right? Mark and John, thanks. Karen great to see you.

FINNEY: Good to see you.

HEMMER: All right, back over to Heidi now -- Heidi.

COLLINS: Next hour, the fed's net has finally has dropped on Ken Lay. The latest on the Enron saga ahead on AMERICAN MORNING.

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