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American Morning

9/11 Recommendations; Interview With General Tommy Franks; Swing State Showdown

Aired August 04, 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: Good morning. Five financial buildings named in a government terror warning, but how many others were mentioned as possible targets?
Police lay out the evidence against Mark Hacking, including an alleged confession that he killed his wife.

And the twisted love affair that sent a teacher to jail. Will it begin again now that Mary Kay Letourneau is now free?

All ahead this hour on AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

HEMMER: Good morning, everyone. Soledad is off. Heidi Collins is in.

Good morning to you.

HEIDI COLLINS, CNN ANCHOR: Good morning.

HEMMER: Last hour.

COLLINS: Yes.

HEMMER: Yes.

In a few minutes, we're going to go inside the story in the war on Iraq for the man who planned it. Retired General Tommy Franks talking about the strategy and the challenges and surprises the U.S. faced there. Some remarkable insight from the guy at the very top. He has a book out, he's making the rounds. We'll get to him in a couple minutes this morning.

COLLINS: A great interview there.

Also, voters in Davenport, Iowa, are truly pulled in both directions. President Bush is campaigning there today; Senator Kerry, too. We'll get a report on this town at the political crossroads.

HEMMER: Also, a football hazing scandal that cost four high school coaches their jobs. They're fighting back by going after the players and the players' parents. We'll talk to two of them this hour here.

COLLINS: And Jack Cafferty is here as well.

Hello.

JACK CAFFERTY, CNN ANCHOR: How you doing, Heidi?

"Question of the Day": these terror warnings, do you want to know about them, or do you trust the government to just take care of business without interrupting your daily life? Am@cnn.com. If you have some thoughts, we'll read some of your mail a bit later. Davenport is not one of the (UNINTELLIGIBLE).

COLLINS: It is not. Indeed. All right, Jack. Thanks.

We are learning more today about the intelligence the government used to raise the terror threat level for financial institutions. Law enforcement sources tell CNN there are 20 potential targets, not just the five reported earlier.

The targets are broken down into three categories. The order of priority depending on how much and how detailed the information is. Officials here and in Pakistan say the suspected al Qaeda computer expert, Mohammed Nayin Nortan (ph), captured last month, is the key link in this chain of intelligence.

(BEGIN VIDEO CLIP)

KEN PIERNICK, FMR. FBI COUNTERTERRORISM OFFICIAL: I think he was profoundly significant. That we penetrated into their communications node is just an utter -- an absolute coup.

(END VIDEO CLIP)

COLLINS: The government says additional source corroborated his information, leading them to go to threat level orange for those financial targets.

A number of key witnesses now have dropped off the list of people testifying before the House Intelligence Committee today, but the members will still go ahead with their hearings on the 9/11 Commission's recommendations. Ed Henry is at the Capitol this morning with more on this.

So a lot of people not going to be there.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: That's right. Good morning, Heidi.

The bottom line here is there is some confusion as the House Intelligence Committee kicks off their fourth congressional hearing on the 9/11 Commission's final report. The bottom line is that we were expecting -- the chairman of the committee, Porter Goss, had announced that Tom Kean, Lee Hamilton, the co-chairs of the 9/11 Commission, as well as George Tenet, the former CIA director, they were going to be among many witnesses, including, in fact, three panels of high-level witnesses coming before this committee. But we now understand that all of those high-level witnesses have actually pulled out. They're not going to be there. Some confusion about who actually will show up.

We're expecting some sort of a statement at the top of the hearing explaining what has happened. But the bottom line here is that, so far, it appears to be some sort of a scheduling mix-up, some sort of a mishap. Not necessarily people protesting or pulling out, out of anger.

In fact, 9/11 Commission staffers have been saying that Mr. Kean and Mr. Hamilton want to testify before this committee but their schedule is extremely busy. They've been testifying before a number of committees, traveling around the country. They also have day jobs in addition to that.

But this is coming at a time when the Democratic ranking member of this committee, Jane Harman of California, last week wrote a very sharp letter to Chairman Goss, claiming that he was throwing this hearing together at the last minute and was basically alluding to the fact that she felt there was no consultation with the Democrats and that maybe Republicans were trying to show a lot of activity at a lot -- at a time when there's a lot of pressure on Republicans to act on these 9/11 Commission recommendations.

In fact, a Democratic staffer telling me this morning that -- that they feel, the Democrats feel that this is an illusion of activity and that they're not actually following through on the reform. This comes also at a time when yesterday these 9/11 Commission recommendations hit -- hit a few speed bumps.

The bottom line is that Democrats start saying yesterday at some congressional hearings that they feel that President Bush's call for a national director of intelligence, this official will not have enough power, will not have budget authority, and will just be a figure head. Also, 9/11 commissioner, Bob Kerrey, testified yesterday that he thinks there will be major turf battles as people like Defense Secretary Donald Rumsfeld will not want to cede authority to this new director of national intelligence.

(BEGIN VIDEO CLIP)

BOB KERREY, 9/11 COMMISSION MEMBER: I know that Secretary Rumsfeld is going to oppose this. And I just -- if they win one more time, if DOD wins one more time, the next time there's a dustup and there's a failure, don't call the director of Central Intelligence up here. Kick the crap out of DOD.

(END VIDEO CLIP)

HENRY: So the bottom line here is that there is still some confusion about who will actually testify, but there are at least a dozen more hearings coming this month, a flurry of activity on Capitol Hill. And even though there have been -- there's been a little bit of pushback on these recommendations, you can bet it's very likely that Congress is going to be acting this fall on a lot of the recommendations -- Heidi.

COLLINS: Wow. A lot going on. All right. Ed Henry, thanks so much for that -- Bill.

HEMMER: Heidi, General Tommy Franks knows something about taking the fight to terrorists. As CENTCOM commander, he led the military campaigns first in Afghanistan, then later in Iraq. He retired last year after 38 years in an Army uniform.

Now he's written a book, his own memoir, "American Soldier." General Franks on a book tour now, taking a number of questions, too, about WMD.

(BEGIN VIDEOTAPE)

HEMMER: Why is there no discovery to this point of weapons of mass destruction?

GEN. TOMMY FRANKS, U.S. ARMY (RET.): I think the first thing that I tell everybody is, I, for one, was wrong. I mean, I absolutely believed that he had weaponized WMD at hand in Iraq, Saddam Hussein. And -- and I was wrong about that. I told a lot of people no one was more surprised than I.

HEMMER: Let me stop you just there.

FRANKS: Sure.

HEMMER: Where did you get your information?

FRANKS: Oh, the same place that the Congress got their information...

HEMMER: CIA?

FRANKS: ... from our intelligence services.

HEMMER: Did that include Russians? Did that include British intelligence as well?

FRANKS: You bet. International -- international intelligence organizations and our ability to -- to associate with them, lots and lots of sources of that kind.

HEMMER: General, knowing what we know today, or perhaps what we don't know today, was this war a mistake?

FRANKS: No, absolutely not with respect to WMD. People -- I've had a couple reporters ask me the same question, "Do you think that since we didn't find this WMD, do you think it's a mistake?" And I -- and I look and hopefully give a wry smile and say, "Do you think it would be better to have left this regime to -- to build it?"

I think we're far better served that the regime of Saddam Hussein no longer stands in Iraq. Far better served. HEMMER: When you speak to military families, if you get the opportunity, for those who have lost men and sometime women in Iraq, what do you tell them as to why their son or daughter...

FRANKS: I think that's -- I think it's a great question. You tell them the same thing that you tell the people walking the streets here in New York as they walk by the -- the recent threats down in the financial district and they see -- they law enforcement people carrying their -- you know, carrying these automatic weapons.

You tell them, "Thanks a lot. Thanks a lot for your service. Thanks a lot for giving my grandkids a chance to grow up in the same kind of world that I grew up in."

And for those moms and dads and aunts and uncles and husbands and wives who have lost -- who have lost someone, you say, "Thanks a lot." Thanks for their service and thanks for loving them.

This book is dedicated to all who serve. You know, NYPD, the fire departments, local responders, and the military. And it's also dedicated to all those who love them. It's a corny book.

HEMMER: Corny?

FRANKS: Corny book.

HEMMER: It's a thick corny book.

(CROSSTALK)

FRANKS: If there were a subtitle to this book, it would be "Ain't This a Great Country?"

HEMMER: Go back to the war. When you were finding piles of Army uniforms on the Iraqi side, laying on the sides of the roads and the highways there in Iraq, was your reaction there quitting and going home? Was your reaction at the time, they're going to hide and they're going to come out and fight another day?

FRANKS: Initially -- initially, didn't know. You have to plan on maybe they're going to come out and fight another day. As our troops got further and further and further into this, without a doubt, they're walking home, they're going home. And it's a double-edged sword.

On the one hand you say, "Gosh, it's great. We don't have to kill all these people because they're voluntarily leaving." On the other hand -- excuse me -- on the other hand, it creates a horrendous problem -- 250,000, 300,000 people who were wearing the uniform of service of Saddam Hussein, and now they've gone home and they have to be taken care of.

They have no jobs, they have been disenfranchised by the war. And so that is the problem with which Jay Garner and Jerry Bremer have to deal, and now Negponte, have had to deal in Iraq as we try to get the Iraqis and take charge of their country. HEMMER: And the critics would say they took all the intellectual capital in that country and sent them home. And in a day they were unemployed...

FRANKS: Sure.

HEMMER: ... and out of work, and questioning their own future.

FRANKS: Of course.

(END VIDEOTAPE)

HEMMER: Much more, part two of my interview with Tommy Franks tomorrow here on AMERICAN MORNING. We'll get into the whole issue of Afghanistan and Osama bin Laden. We'll talk about that tomorrow. Also, the one common thing he has with the first lady. You'll be surprised to find that answer.

More with Tommy Franks later. Paula Zahn will have more with Tommy Franks a bit later in the week at 8:00 Eastern Time.

Now Heidi.

COLLINS: To politics now, where today in Iowa there will be a rare convergence of campaigns. The president and his challenger will be in Davenport, Iowa, holding dueling events just blocks apart. Candy Crowley is live in Davenport.

Candy, it kind of sounds like a wrestling match of sorts.

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: I was going to say it's like the summer slam political style. You know, what we have here is a convergence in a battleground state. It shouldn't be all that surprising to us, because of out of 50 states there are about 18, 19 states that the two contenders are actually vying for.

Iowa is one of them. We're here in the Quad Cities, which is actually two cities that are in Illinois and two cities in Iowa right along the Mississippi. It is here where these two campaigns converge. The president coming up from the South. The senator coming down from the North.

(BEGIN VIDEOTAPE)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I am determined that as president, I'm not going to be responsible for piling debt on our children.

CROWLEY (voice-over): Painting himself as a fiscal conservative, John Kerry talked deficits, health care, et cetera.

KERRY: I'm going to have a press conference at least once a month to talk to the nation about what I'm doing, because I don't have anything to hide.

CROWLEY: Of all the towns and all the states in all the country, he walks into Beloit, Wisconsin. Ever wonder why?

KERRY: My priority, first and foremost, is putting America back to work.

CROWLEY: It is blue collar, rural and has one of the highest unemployment rates in a state Al Gore barely won. Beloit popped up on what's called a deficit map. It begins with a universe of about 19 battleground states, mostly Midwestern and Southwestern states, along with Florida.

Both campaigns have a deficit map which mathematically calculates various things, including unemployment, military presence and political makeup. The deficit map is why the Kerry and the Bush campaigns find themselves in Davenport, Iowa.

Within Davenport's city limits, the campaigns' two major issues play out up close and personal. Culturally conservative, Davenport has Iowa's highest unemployment rate. It is home to the state's Air National Guard unit. Some of its troops remain in Iraq on extended stay. The city has experienced a high Iraq casualty rate.

Davenport is also one of only two big media markets in Iowa where polls show a dead heat race.

(END VIDEOTAPE)

CROWLEY: And here in the Quad Cities, a new poll by one of the newspapers says that, despite all the problems I just talked about in the package, the president has about a two-point lead here in the Quad Cities. I want to give you an idea of what a big deal this is today, Heidi.

We have obviously President Bush, Mr. Kerry. But look whose pictures get above the fold: the voters. Seems probably just about right.

COLLINS: Yes, I guess so. All right. Candy Crowley, thanks so much for that from Davenport this morning -- Bill.

HEMMER: Thirteen minutes past the hour now. To Daryn Kagan again, looking at the other news at the CNN Center.

Good morning, Daryn.

DARYN KAGAN, CNN ANCHOR: Good morning, Bill.

Let's begin with British police. They are questioning 12 men in connection with possible terrorist activities. The suspects were picked up in raids yesterday across the country. Pakistani authorities say that at least one of the arrests was made after Pakistani intelligence officials shared information with British authorities. A 13th man also picked up in the raid has since been released.

Missouri is a step closer to barring same-sex marriage. Voters yesterday approved a state constitutional amendment banning such unions. Ten other states will put out similar ballot measures in the coming months.

Officials in Salt Lake City, Utah, are searching for Lori Hacking's body. A district attorney says Mark Hacking told a witness that he killed his wife while she slept and then tossed her body into a garbage dumpster. Formal charges against him are expected later this week.

There's a report in "Sports Illustrated" which could mean new testimony in the Kobe Bryant case. It says that a Florida waitress claims that Kobe Bryant groped her. It reportedly happened at the home of his former Los Angeles Lakers teammate, Shaquille O'Neal. Now, Shaq could possibly be called as a witness in Bryant's upcoming sexual assault trial.

Workers are combing Hatteras Island this morning. They're trying to determine the damage estimates. This, after Hurricane Alex tore through North Carolina's Outer Banks. The storm knocked out power to thousands, and the surge flooded Hatteras Island only linked to the mainland.

Winds near the hurricane's eye rose to 100 miles an hour. But Alex spared the Outer Banks a direct hit and is now well out to sea.

So looking at weather for today along the Carolina coast, and clear across the country, Rob Marciano in for Chad Myers, who is still drying off from covering Hurricane Alex.

(WEATHER REPORT)

COLLINS: Still to come this morning, the fallout from a high school football hazing scandal. Some coaches say their lives were ruined because of what their players did. And now they want someone to pay. We'll talk to them live.

HEMMER: Also, in a moment, Mary Kay Letourneau says it was love. A court says it was rape. And now the teacher who seduced a 12-year- old student is now free. A live report on that story when we continue in a moment.

(COMMERCIAL BREAK)

HEMMER: Mary Kay Letourneau, the teacher who served seven years in prison for having a sexual relationship with a sixth grade student, is now free. Released earlier, Kimberly Osias watching this live from Gig Harbor in the state of Washington.

And good morning there, Kimberly.

KIMBERLY OSIAS, CNN CORRESPONDENT: And good morning to you, Bill.

They called it love, prosecutors called it rape. But today, Mary Kay Letourneau can be called an ex-convict, out of jail and free again.

(BEGIN VIDEOTAPE) OSIAS (voice-over): Vili Fualaau was a sixth grader from a broken home. Mary Kay Letourneau was his teacher, a married mother of four, a congressman's daughter, who, by many accounts, defied sensibilities and crossed what many considered sacred boundaries.

GREGG OLSEN, CRIME AUTHOR: So many people see this as a love story, and they want to see them together. I do want to remind people that he was 12 and 13 years old when this happened, and his life has been profoundly impacted by what she did.

OSIAS: Pregnant by Fualaau, Mary Kay Letourneau pleaded guilty in August of 1997 to two counts of child rape. She begged the judge to give her a second chance.

MARY KAY LETOURNEAU, IMPRISONED FOR CHILD RAPE: Your honor, I did something that I had no right to do, morally or legally.

UNIDENTIFIED MALE: Mary Letourneau -- Mary, do you have any comment?

OSIAS: Right after her release, following five months in jail, she defied a court order by getting together with Fualaau. The pair was spotted having sex in a van with $6,000 in their possession. Letourneau landed back in jail, pregnant with their second child. Now, after spending more than seven years in prison, Letourneau is getting out and starting again.

OLSEN: Beyond a book, beyond a movie, beyond anything like that, she's got to focus on what good she can do for the world, and maybe she'll try something like Mothers Behind Bars.

OSIAS: Letourneau now has to register as a convicted sex offender. Although there is a restraining order keeping the two apart, Fualaau is 21 now and can go to court to ask a judge to rescind the ban.

(END VIDEOTAPE)

OSIAS: For the next three years, Mary Kay Letourneau will be under very, very close watch. Any kind of work, where she lives will all have to be reported to authorities. And Bill, any kind of relationship at all, romantic, will also have to be reported.

HEMMER: What about a relationship with the kids she had with him?

OSIAS: Well, you know, she does have two with Fualaau. Those children have been visiting her here about twice a month. We are told by people close to this case that she may even try to go for custody.

HEMMER: Kimberly Osias in Washington State, thanks -- Heidi.

COLLINS: Still to come, a look at what may have been one of the last times anyone saw Lori Hacking alive. There's a new surveillance tape and what appears to be a stunning confession from Lori's husband, Mark. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Checking with Jack once again and the "Question of the Day."

CAFFERTY: Yes. Do you want to -- do you want to be told about the terrorist threats, or do you want to just trust the government to handle them, if, in fact, they are real threats, is the question this morning. We're getting a lot of mail.

Larry in Lexington Park, Maryland, "You're assuming a terrorist attack will occur regardless if the public is warned or not. This is probably not so. Public warnings also reach the potential terrorists, which may change their plans or timetables knowing their targets are now being watched. Thus, public warnings may, in fact, be preventing terrorist attacks. Please warn me always."

Rena in Reston, Virginia, "If intelligence indicates that security should be stepped up, then so be it. But give us the contextual protection and spare us the political back slapping. Tom ridge omitted the contextual information and skip the political backslapping."

"Tom Ridge omitted the context last Sunday and spent the last part of his press conference praising the president and the administration. That we don't need."

And Madge in Pine Knoll Shores, North Carolina, "The Bush alert system reminds me of the young fellow on the street corner beating a drum to keep the elephants away. 'There are no elephants within 100 miles,' he was told. 'I'm doing a good job then, aren't I?' he said."

COLLINS: All right, Jack.

CAFFERTY: A little joke there.

COLLINS: Yes, we got that.

CAFFERTY: Get that?

COLLINS: All right. Thank you, sir.

CAFFERTY: No elephants within 100 miles.

COLLINS: Still to come this morning...

CAFFERTY: Taxi?

COLLINS: ... we are halfway through the work week. We want to get you over the hump with some "90-Second Pop." This is for you, Jack.

Don't hate her because she's beautiful. Halle Berry says being pretty is anything but easy. Plus, "Sports Illustrated" goes looking for the girl next door, and you get to watch. "90-Second Pop" ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: There's the opening bell as we get things started here on a Wednesday morning, 4th day in the month of August. Dow starting at 10120. And Yankees outfielder Gary Sheffield with the honors today. He's going to have to get a better performance today than yesterday.

Dow 30, off about 59 points in trading yesterday. Nasdaq market site, no Yankees in sight there -- 1859 is your opening mark, off about 32 points in trading yesterday on the tech-heavy Nasdaq.

Welcome back, everybody. 9:30 in New York. Half past the hour on this AMERICAN MORNING.

Police claim they have evidence directly linking Mark Hacking with the killing of his wife, including a bloody knife and even a confession. We'll go to a report in a moment here on what authorities in Salt Lake say they've uncovered since Lori Hacking's disappearance. We continue to learn a bit more every day as this story unfolds.

COLLINS: Right. We sure do.

Also, four high school football coaches fired in the fallout of a hazing scandal. They will not go quietly. They're suing now. We'll talk to two of them about their case against former players.

HEMMER: All right. In the meantime, though, back to Salt Lake City. Authorities there say they've been told that Mark Hacking confessed to killing his wife. Detectives say Hacking told a reliable citizen in the psychiatric ward that he murdered his wife while she slept and then threw her body into a trash bin. Miguel Marquez again from Salt Lake this morning there.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): In the document police used to charge Mark Hacking with murder, police lay out their case. David Yocom, the Salt Lake City district attorney, the man who will prosecute Mark Hacking, reads from the report. It lays out what police say Mark Hacking told a witness while at a Salt Lake City psychiatric hospital just days after reporting his wife missing.

DAVID YOCOM, DISTRICT ATTORNEY: Mark Hacking told this reliable citizen witness that he killed Lori while she was asleep in bed and disposed of her body in a dumpster.

MARQUEZ: The report also indicates that police found a mattress in a dumpster near the Hacking residence and that the tags on it matched those on a box spring in the Hackings' bedroom. Mark Hacking purchased a new mattress the day he reported his wife missing.

And there is other evidence. Security cam video from a Salt Lake City convenience store shows Mark Hacking entering the store at 1:18 a.m. on Monday July 19, hours before he reported his wife missing. Hacking enters, along with an unrelated customer, and buys a pack of Camel Lime Twist (ph) cigarettes.

The store's management says the clerk reported that there was nothing strange about Mark Hacking's demeanor or the transaction. Hacking is seen examining his hands, sighing heavily, then purchasing the Camels. He walks off and returns after forgetting his change.

When he leaves, security cameras catch one more glimpse of Mark Hacking driving away in his wife's car. The company's spokesman says the entire transaction lasted two to three minutes.

(on camera): In another piece of video from that same store, Mark and Lori Hacking are seen entering just hours before Mark Hacking purchased those cigarettes, about 9:30 p.m. on Sunday, July 18. It may be the last glimpse we have of Lori Hacking alive.

Mark's Hacking's attorney, Gil Athay (ph), will not comment on how he will defend this case until he sees all the evidence. But he does say an insanity plea is possible.

Miguel Marquez, Salt Lake City, Utah.

(END VIDEOTAPE)

HEMMER: And Miguel, thanks for that. Search dogs will start looking for Lori Hacking's body again tonight. We're told investigators believe she's buried beneath 3,000 tons of trash at a county landfill outside of Salt Lake -- Heidi.

COLLINS: A football hazing scandal cost them their jobs. Now, four former coaches at Long Island's Mepham High School are suing the principal players involved in sexually abusing teammates at a training camp last summer. Joining us now, two of the plaintiffs., Kevin McElroy and Art Canestro, along with their attorney, Thomas Liotti.

I want to begin with you, Mr. Liotti, if I could. This is a $20 million suit. Why sue the parents and the boys in this?

THOMAS LIOTTI, ATTORNEY: Well, because the parents are responsible for the acts of their of children. And that's the bottom line.

My clients have had their lives and careers totally ruined by everything that's happened over the last year. And it's payback time. Somebody has to be responsible for this. My coaches have been taken off the athletic fields and out of classroom, and something's got to be done.

COLLINS: Are you planning to sue the school district as well?

LIOTTI: Yes, and that is already in the work. That's already happening.

COLLINS: All right. And I want to tell you, we did try to get reaction from three of the boys involved in this suit, as well as their parents. Not able to speak with them, but we were able to speak with the attorney, Mark Alter, who represents one of those football players.

I want to show you what he said and get your reaction on the backside. You see it on the screen.

"The parents of the boys accused in this suit also sent their kids to football camp in the care and custody of the school district and the coaches. And somebody didn't appropriately supervise the children. They've had a terrible outcome, too."

Does he make a good point here?

LIOTTI: Well, I gave him -- I gave his name to you, so that's how you got that quote.

COLLINS: Right.

LIOTTI: You know, I think Mr. Alter is just doing what any lawyer would do under the circumstances. The parents are ultimately responsible here. Everyone knows that.

They raised these kids, they nurtured these kids. They had a duty and responsibility to let the district know about any problems with these kids in their past that would indicate that they had any dangerous propensities whatsoever. And they failed to do that, and they are responsible as a result.

COLLINS: Mr. Canestro, the grand jury did not find you criminally negligent. Do you think you watched these kids closely enough?

ART CANESTRO, FMR. MEPHAM HIGH SCHOOL FOOTBALL COACH: That's a good question. We thought about this many times. And we went to the grand jury.

They were looking to charge us with negligence. And believe you me, if they had this much evidence against us, we would be charged. So there was not a shred of evidence that they had to charge us with any type of negligence or lack of supervision.

COLLINS: But how do you feel about it now inside, looking back? Would have you done anything differently?

CANESTRO: Well, we talk about this many times, we've thought about this 100 times, 1,000 times. The only thing you could have done different is to have an adult sleep in the room with the kids. And that was against district policy. We followed the policies and procedures of the district and the protocols. That's the only thing we could have done different.

COLLINS: Kevin McElroy, we heard your attorney here say that your lives are ruined. What do you have to say about that?

KEVIN MCELROY, FMR. MEPHAM HIGH SCHOOL HEAD FOOTBALL COACH: Well, I've been in this profession for close to 30 years. I've been a teacher and a coach for 28 years now.

When I was removed from all my coaching jobs in this district, I spoke to some friends about possibly getting coaching jobs in other districts, and the word that they used is "untouchable." There's no way that they can even bring my name up in front of their principal, their superintendent or their board because of what's happened at Mepham High School.

So, basically, at this particular point, it looks like my coaching career is over. And this is what I've dedicated my life to.

I gave my heart and soul to these kids at Mepham High School. I had them over my house for barbecues. We have barbecues at the end of the two -- two weeks of summer practice, where the families all get together with the coaches and we talk about what's going to happen during that season. We do so much for the kids, and that's all gone.

COLLINS: You must have been absolutely crushed when you heard about the details from this. And let me just remind everyone. Sodomizing the younger boys with broom sticks, pine cones, golf balls. How did it make you feel when you heard this about these kids that you say you were so close to?

MCELROY: Well, first of all, I was in shock when I heard that it happen, period. The second reaction was I can't believe that they have done this, and what about the trust and bond that we had had as coaches and players?

And we always talk about team camaraderie and making sure we take care of each other. So all of that trust and betrayal is now the way I feel about what happened.

COLLINS: But there is a history here, is there not, with this high school football team and its hazing, if you will? Who's responsible for a climate like that?

MCELROY: There's no history. First of all, you have to distinguish between what hazing is and what a crime is. OK?

There is no way that there has ever been any instance of sexual crimes committed in this football program. There is no history.

CANESTRO: Let me add something. We did some research on hazing, and most of the time, if not all, hazing is never reported to coaches. So if you don't know it's happening, how do you stop it? And that's the question I posed to millions of people across the country.

COLLINS: And gentlemen, we have to leave it there. Thank you again to all three of you for coming with (ph) us today.

LIOTTI: Thank you, Heidi.

MCELROY: Thank you.

CANESTRO: Thank you.

COLLINS: Kevin McElroy, Art Canestro and Thomas Liotti, again, thanks -- Bill.

HEMMER: All right, Heidi. Twenty-two minutes before the hour. Back to Daryn Kagan at the CNN Center.

Good morning, Daryn.

KAGAN: Good morning, Bill.

Our headlines begin with heavy fighting in the northern Iraqi city of Mosul. Clashes between police and insurgents there have killed at least a dozen people.

And four Jordanian truck drivers have apparently returned home. The hostages were apparently freed during a raid on their captor's hideout. There are also reports that two Turkish hostages have been freed. That's according to the Arabic language network Al-Jazeera.

A tough day for the prosecution in Scott Peterson's double murder trial. A move by prosecutors prompted the judge yesterday to strike some testimony that the jury had just heard because of inconsistencies. Today, testimony on what investigators found while searching Scott Peterson's computer hard drives should take place.

You've heard of black boxes on airplanes and trains. Now there's a move to get them in your car. The NTSB says that the boxes would even record your speed and seatbelt use. The move comes after an elderly man plowed into a market last July in California, killing 10 people. Investigators say they would have had better information if the car had had a black box.

And finally, a surprising sight for one California household. A big rig careening off of a freeway and smashing through a backyard fence, nobody was hurt. The cause of the crash is under investigation.

What does Mother Nature plan on delivering for the weather picture? Let's check in with Rob Marciano, in for Chad Myers.

Hey, Rob.

(WEATHER REPORT)

COLLINS: Hey, Rob, quickly, when they decide on the hurricane names, always female names, isn't that right?

ROB MARCIANO, CNN METEOROLOGIST: Used to be the case.

COLLINS: Oh.

MARCIANO: Then the girls got angry.

COLLINS: What about Hurricane Bill instead of Bonnie?

MARCIANO: I think there was a Bill several years ago. They rotate them every...

(CROSSTALK)

HEMMER: The list was out.

MARCIANO: Exactly. Yes, Alex, boy, Bonnie, girl. Every other. We give equal time.

COLLINS: I see. OK. Very good.

HEMMER: And when we get on "H?"

COLLINS: All hell will break loose.

MARCIANO: Yes, all hell will break loose.

COLLINS: OK. Rob, thanks so much for that.

Still to come this morning, some significant progress against the leading cause of cancer deaths among women. Dr. Sanjay Gupta has more on that.

HEMMER: Also, in a moment here, Andy is back, "Minding Your Business." If you've got the blues over gas prices, one car company thinks it has the answer.

Back in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Breast cancer is the leading cause of cancer deaths among women. But as Dr. Sanjay Gupta tells us, there are signs researchers may be catching up with the disease.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): There's been significant progress in the fight against breast cancer both in the way it's diagnosed and the way we treat it. First, new treatment options.

Typically, after a lump is removed, women undergo weeks of radiation therapy which often causes nausea and fatigue. With Brachytherapy, small radiation seeds are implanted around the tumor site to destroy any remaining cancer cells. In just five days the treatment is done.

Now, Brachytherapy is not standard for patients because there aren't enough long-term studies. But doctors say up to 80 percent may benefit from it.

Another new technology may make invasive surgery for breast tumors a thing of the past. It's called Ablation Therapy. A thermal device literally zaps the breast cancer away either by electrical currents, lasers, or as we see here, by freezing the tissue. Although limited to gumball-size tumors, ablation for breast tumors is promising, and several studies are already under way to measure its effectiveness compared to surgical tumor removal. While mammograms are still the standard for breast cancer detection, a recent study in the "New England Journal of Medicine" finds that magnetic resonance imaging, or MRIs, are twice as sensitive than mammograms in detecting breast cancer. They are more sensitive, but also much more expensive. Currently, insurance may only cover higher-risk patients, such as young women with a genetic vulnerability to developing breast cancer, or with strong family histories.

Even with advances on the treatment and detection front, none is more important than early detection. At age 20, women should begin monthly self-exams and doctor exams every three years. At age 35, all women should have a baseline mammogram. And starting at 40, an annual breast exam and mammogram is still the gold standard.

Breast cancer is still a devastating disease. But in the past 20 years, the survival rate has improved by 10 percent, and new technology may lead to fewer patients and longer healthier lives.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

COLLINS: On a related note now, a Norwegian study has found lower levels of HDL cholesterol -- that's the good cholesterol -- can actually increase the risk for breast cancer in overweight women. So keeping your cholesterol in check could help stave off breast cancer, in addition to improving your heart health.

Still to come this morning, the Wednesday addition of "90-Second Pop": the hard life of the rich and beautiful. Halle Berry says it isn't easy being pretty.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: OK. Time now for another all new chapter of "90-Second Pop." Introducing the cast for this racy subject today, B.J. Sigesmund, staff editor for "US Weekly"; Sarah Bernard, contributing editor for "New York" Magzine; and Andy Borowitz of borowitzreports.com. Wow, no like CEO, somebody in charge stuff today.

(CROSSTALK)

ANDY BOROWITZ, BOROWITZREPORTS.COM: Keeping it real, Heidi.

COLLINS: Sarah, let's start with you. Halle Berry saying, you know, it is not easy to be gorgeous. But she also says beauty is meaningless. She's beautiful, so...

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Yes, this bothers me.

COLLINS: Isn't it easy for her to say? BERNARD: I don't know. It really is easy for her to say. And the thing about some -- an actress saying this is that it's completely related to her salary.

I mean, if she was not beautiful and the way she, she would not have $12.5 million that she recently got for "Catwoman." I mean, it's kind of like people who have a lot of money saying, you know, "Money isn't everything." But it is essentially -- you know, for people who are not actresses it is really upsetting.

B.J. SIGESMUND, STAFF EDITOR, "US WEEKLY": Well, still, Halle Berry has had a tough time. You know, her first boyfriend beat her so hard, he punctured her left eardrum.

When she was married to David Justice, she took out a restraining order against him. And then we all know that 10 days after she won that Oscar, a couple years ago, she discovered that her husband was a sex addict. So it has not been easy for Halle Berry, even though she's beautiful.

BERNARD: It hasn't, but I'm sure she will be fine. And I'm sure she will have another boyfriend if she wants one.

BOROWITZ: Look, it's not easy being beautiful. I mean, I hear Jack Cafferty saying this all the time. And I just -- the thing was, you know, with Halle Berry, though, is that she says that beauty is a terrible burden. But that still is no excuse to put on a cat mask.

I'm sorry, I just don't think it is. It doesn't excuse that.

COLLINS: You're right. Well, let's stick with you on this next one now.

BOROWITZ: OK.

COLLINS: I know this is a topic you've been waiting to talk about. The swimsuit models for "Sports Illustrated," they are now going to be -- NBC, I should say -- dipping into the reality TV waters...

BOROWITZ: Right.

COLLINS: ... if you will. And they're going to capture this whole thing on tape.

BOROWITZ: The search for America's greatest swimsuit model? Is that...

BERNARD: Right, exactly.

BOROWITZ: Forget about bin Laden. Let's get on the swimsuit model thing. That's what we really have to find. I mean, I guess there's a sense that there is a shortage of swimsuit models and we need to find more?

BERNARD: We need more. I think this is (UNINTELLIGIBLE). I actually think this is -- of all the new reality shows, I think this one is a definite hit.

COLLINS: Really?

BERNARD: I mean, they've been filming the making of the "Sports illustrated" swimsuit issue for years. So really, the only difference is that they're putting the models, the sort of four contestants to live together for a little while so that you have the kind of "Big Brother" reality show element.

BOROWITZ: "Real World."

BERNARD: "Real World."

SIGESMUND: The question is, is it going to be more like "America's Next Top Model"...

COLLINS: Yes.

SIGESMUND: ... which has been a huge hit for UPN, or a lot like "Are You Hot," the Lorenzo Lamas thing.

COLLINS: Oh, that wasn't good at all.

SIGESMUND: With the laser pointer.

BOROWITZ: I'm sorry, that was a classic.

SIGESMUND: Keep the laser pointers away.

BOROWITZ: I did not miss an episode.

COLLINS: I had forgotten all about that.

SIGESMUND: No laser pointers allowed.

COLLINS: It was so well done.

SIGESMUND: No, I think it's very smart for old cultural institutions like the "SI" swimsuit issue to be revamping themselves for the reality TV world.

BOROWITZ: But if NBC really wants to find like the great swimsuit model, couldn't they just look in Trump's rolodex? I mean, why do they actually have to have like a whole show? It seems crazy.

BERNARD: Yes.

COLLINS: All right, guys. Thanks so much for that this morning, B.J., Sarah and Andy. As always, thanks -- Bill.

HEMMER: All right, Heidi. Thanks for that.

Gas prices getting you down? If so, Andy Serwer is "Minding Your Business" with a suggestion today to lift your spirits. How about a new car, maybe?

Good morning.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Buy me one.

Gas prices, oil prices, specifically, getting the markets down. Let's go to the Big Board and check it out.

Dow is down 36 points. And if someone doesn't watch out down there, Bill Hemmer...

HEMMER: Yes?

SERWER: ... we're going to get down below 10000 again. So someone better be paying attention at the NYSE today.

Price of oil at $44.28. That's another new record. If it does go up towards $50, that's a real problem for the U.S. economy. In fact, for economies around the globe.

Tommy Hilfiger active today. The company lost $7 million in the latest quarter. Tommy, Tommy, Tommy.

Did you know this company is based in Hong Kong? I did not know that.

HEMMER: I did not know that either. But now I do.

SERWER: Now you do.

HEMMER: What's happening with the Prius? Toyota is coming out, going to do what with that?

SERWER: They're boosting production, and that's no surprise, Bill, because these things have been rolling off the lots. In fact, there's a huge back order.

They're looking to up production in the U.S. 50 percent. Got about 50,000 of these cars in the United States this year. They're looking to go to 80,000 next year.

It sells for around $21,000, the Prius does. Does about 55 miles per gallon. That's combined city, country. Some people saying they don't quite get that.

Honda is also making these things. Ford is, too. Honda says they're completely out of these thing. So cars are very hot with gas at $1.89 a gallon.

HEMMER: That will do it, too.

SERWER: You're right.

HEMMER: Thank you, Andy.

Coming up next hour on CNN, you keep hearing about these terror warnings. What steps can you take if any to keep your -- your own self safe at home? Some tips on emergency planning with Daryn Kagan next hour on "CNN LIVE TODAY."

We're back in a moment on AMERICAN MORNING after this.

(COMMERCIAL BREAK)

HEMMER: Before -- before we check out of here for the day, here's Aaron Brown, a preview of what's coming up later tonight on "NEWSNIGHT." Here's Aaron.

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on "NEWSNIGHT," the terror alert issued over the weekend has raised an awful lot of questions. Chief among them, how concerned should we be? Is there a political motivation with the campaign on? Lots of others.

Tonight on the program we'll talk to Tom Ridge, the man in charge of Homeland Security, and get some answers. We'll have that, plus all of the day's top news, of course, morning papers, and everything else that makes "NEWSNIGHT" "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern -- Bill.

HEMMER: Twelve hours from now, Aaron. Thanks for that.

Now Heidi.

COLLINS: Jack, one last time with the responses to the "Question of the Day."

CAFFERTY: Yes. Now, about these terror alerts, do you want to be informed, or do you trust the government to keep you safe, just let them do their thing?

Glinda in Upper Marlboro, Maryland, "Homeland Security has a duty to alert the American public about security threats, but the office loses credibility when it becomes another arena to launch Busy administration rhetoric."

Russ in Middletown, Maryland, "Chatter and information that's three years old? We should not give the terrorists any power to manipulate the press and the government. Just do your job. We're all aware of the potential. We all remember September 11."

And R. Ramirez, Cape Canaveral, "I equate the terror alerts with those old eight balls. You ask the question, then you shake it and turn it upside down to get the answer. The point is that everything is a best guess, and quite the opposite of intelligence."

HEMMER: It is decidedly so.

CAFFERTY: And thank you for straightening out that Quad City situation for us.

(CROSSTALK)

COLLINS: Big time. CAFFERTY: The biggest mistake I ever made was bringing that up this morning.

(LAUGHTER)

COLLINS: Thanks, Jack.

HEMMER: We've got to run. Here's Daryn at the CNN Center.

Daryn, good morning to you.

KAGAN: Good morning, you guys. Continue to have a great day in New York City. And we'll get started here.

At CNN headquarters in Atlanta, I'm Daryn Kagan.

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 August 4, 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: Good morning. Five financial buildings named in a government terror warning, but how many others were mentioned as possible targets?
Police lay out the evidence against Mark Hacking, including an alleged confession that he killed his wife.

And the twisted love affair that sent a teacher to jail. Will it begin again now that Mary Kay Letourneau is now free?

All ahead this hour on AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

HEMMER: Good morning, everyone. Soledad is off. Heidi Collins is in.

Good morning to you.

HEIDI COLLINS, CNN ANCHOR: Good morning.

HEMMER: Last hour.

COLLINS: Yes.

HEMMER: Yes.

In a few minutes, we're going to go inside the story in the war on Iraq for the man who planned it. Retired General Tommy Franks talking about the strategy and the challenges and surprises the U.S. faced there. Some remarkable insight from the guy at the very top. He has a book out, he's making the rounds. We'll get to him in a couple minutes this morning.

COLLINS: A great interview there.

Also, voters in Davenport, Iowa, are truly pulled in both directions. President Bush is campaigning there today; Senator Kerry, too. We'll get a report on this town at the political crossroads.

HEMMER: Also, a football hazing scandal that cost four high school coaches their jobs. They're fighting back by going after the players and the players' parents. We'll talk to two of them this hour here.

COLLINS: And Jack Cafferty is here as well.

Hello.

JACK CAFFERTY, CNN ANCHOR: How you doing, Heidi?

"Question of the Day": these terror warnings, do you want to know about them, or do you trust the government to just take care of business without interrupting your daily life? Am@cnn.com. If you have some thoughts, we'll read some of your mail a bit later. Davenport is not one of the (UNINTELLIGIBLE).

COLLINS: It is not. Indeed. All right, Jack. Thanks.

We are learning more today about the intelligence the government used to raise the terror threat level for financial institutions. Law enforcement sources tell CNN there are 20 potential targets, not just the five reported earlier.

The targets are broken down into three categories. The order of priority depending on how much and how detailed the information is. Officials here and in Pakistan say the suspected al Qaeda computer expert, Mohammed Nayin Nortan (ph), captured last month, is the key link in this chain of intelligence.

(BEGIN VIDEO CLIP)

KEN PIERNICK, FMR. FBI COUNTERTERRORISM OFFICIAL: I think he was profoundly significant. That we penetrated into their communications node is just an utter -- an absolute coup.

(END VIDEO CLIP)

COLLINS: The government says additional source corroborated his information, leading them to go to threat level orange for those financial targets.

A number of key witnesses now have dropped off the list of people testifying before the House Intelligence Committee today, but the members will still go ahead with their hearings on the 9/11 Commission's recommendations. Ed Henry is at the Capitol this morning with more on this.

So a lot of people not going to be there.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: That's right. Good morning, Heidi.

The bottom line here is there is some confusion as the House Intelligence Committee kicks off their fourth congressional hearing on the 9/11 Commission's final report. The bottom line is that we were expecting -- the chairman of the committee, Porter Goss, had announced that Tom Kean, Lee Hamilton, the co-chairs of the 9/11 Commission, as well as George Tenet, the former CIA director, they were going to be among many witnesses, including, in fact, three panels of high-level witnesses coming before this committee. But we now understand that all of those high-level witnesses have actually pulled out. They're not going to be there. Some confusion about who actually will show up.

We're expecting some sort of a statement at the top of the hearing explaining what has happened. But the bottom line here is that, so far, it appears to be some sort of a scheduling mix-up, some sort of a mishap. Not necessarily people protesting or pulling out, out of anger.

In fact, 9/11 Commission staffers have been saying that Mr. Kean and Mr. Hamilton want to testify before this committee but their schedule is extremely busy. They've been testifying before a number of committees, traveling around the country. They also have day jobs in addition to that.

But this is coming at a time when the Democratic ranking member of this committee, Jane Harman of California, last week wrote a very sharp letter to Chairman Goss, claiming that he was throwing this hearing together at the last minute and was basically alluding to the fact that she felt there was no consultation with the Democrats and that maybe Republicans were trying to show a lot of activity at a lot -- at a time when there's a lot of pressure on Republicans to act on these 9/11 Commission recommendations.

In fact, a Democratic staffer telling me this morning that -- that they feel, the Democrats feel that this is an illusion of activity and that they're not actually following through on the reform. This comes also at a time when yesterday these 9/11 Commission recommendations hit -- hit a few speed bumps.

The bottom line is that Democrats start saying yesterday at some congressional hearings that they feel that President Bush's call for a national director of intelligence, this official will not have enough power, will not have budget authority, and will just be a figure head. Also, 9/11 commissioner, Bob Kerrey, testified yesterday that he thinks there will be major turf battles as people like Defense Secretary Donald Rumsfeld will not want to cede authority to this new director of national intelligence.

(BEGIN VIDEO CLIP)

BOB KERREY, 9/11 COMMISSION MEMBER: I know that Secretary Rumsfeld is going to oppose this. And I just -- if they win one more time, if DOD wins one more time, the next time there's a dustup and there's a failure, don't call the director of Central Intelligence up here. Kick the crap out of DOD.

(END VIDEO CLIP)

HENRY: So the bottom line here is that there is still some confusion about who will actually testify, but there are at least a dozen more hearings coming this month, a flurry of activity on Capitol Hill. And even though there have been -- there's been a little bit of pushback on these recommendations, you can bet it's very likely that Congress is going to be acting this fall on a lot of the recommendations -- Heidi.

COLLINS: Wow. A lot going on. All right. Ed Henry, thanks so much for that -- Bill.

HEMMER: Heidi, General Tommy Franks knows something about taking the fight to terrorists. As CENTCOM commander, he led the military campaigns first in Afghanistan, then later in Iraq. He retired last year after 38 years in an Army uniform.

Now he's written a book, his own memoir, "American Soldier." General Franks on a book tour now, taking a number of questions, too, about WMD.

(BEGIN VIDEOTAPE)

HEMMER: Why is there no discovery to this point of weapons of mass destruction?

GEN. TOMMY FRANKS, U.S. ARMY (RET.): I think the first thing that I tell everybody is, I, for one, was wrong. I mean, I absolutely believed that he had weaponized WMD at hand in Iraq, Saddam Hussein. And -- and I was wrong about that. I told a lot of people no one was more surprised than I.

HEMMER: Let me stop you just there.

FRANKS: Sure.

HEMMER: Where did you get your information?

FRANKS: Oh, the same place that the Congress got their information...

HEMMER: CIA?

FRANKS: ... from our intelligence services.

HEMMER: Did that include Russians? Did that include British intelligence as well?

FRANKS: You bet. International -- international intelligence organizations and our ability to -- to associate with them, lots and lots of sources of that kind.

HEMMER: General, knowing what we know today, or perhaps what we don't know today, was this war a mistake?

FRANKS: No, absolutely not with respect to WMD. People -- I've had a couple reporters ask me the same question, "Do you think that since we didn't find this WMD, do you think it's a mistake?" And I -- and I look and hopefully give a wry smile and say, "Do you think it would be better to have left this regime to -- to build it?"

I think we're far better served that the regime of Saddam Hussein no longer stands in Iraq. Far better served. HEMMER: When you speak to military families, if you get the opportunity, for those who have lost men and sometime women in Iraq, what do you tell them as to why their son or daughter...

FRANKS: I think that's -- I think it's a great question. You tell them the same thing that you tell the people walking the streets here in New York as they walk by the -- the recent threats down in the financial district and they see -- they law enforcement people carrying their -- you know, carrying these automatic weapons.

You tell them, "Thanks a lot. Thanks a lot for your service. Thanks a lot for giving my grandkids a chance to grow up in the same kind of world that I grew up in."

And for those moms and dads and aunts and uncles and husbands and wives who have lost -- who have lost someone, you say, "Thanks a lot." Thanks for their service and thanks for loving them.

This book is dedicated to all who serve. You know, NYPD, the fire departments, local responders, and the military. And it's also dedicated to all those who love them. It's a corny book.

HEMMER: Corny?

FRANKS: Corny book.

HEMMER: It's a thick corny book.

(CROSSTALK)

FRANKS: If there were a subtitle to this book, it would be "Ain't This a Great Country?"

HEMMER: Go back to the war. When you were finding piles of Army uniforms on the Iraqi side, laying on the sides of the roads and the highways there in Iraq, was your reaction there quitting and going home? Was your reaction at the time, they're going to hide and they're going to come out and fight another day?

FRANKS: Initially -- initially, didn't know. You have to plan on maybe they're going to come out and fight another day. As our troops got further and further and further into this, without a doubt, they're walking home, they're going home. And it's a double-edged sword.

On the one hand you say, "Gosh, it's great. We don't have to kill all these people because they're voluntarily leaving." On the other hand -- excuse me -- on the other hand, it creates a horrendous problem -- 250,000, 300,000 people who were wearing the uniform of service of Saddam Hussein, and now they've gone home and they have to be taken care of.

They have no jobs, they have been disenfranchised by the war. And so that is the problem with which Jay Garner and Jerry Bremer have to deal, and now Negponte, have had to deal in Iraq as we try to get the Iraqis and take charge of their country. HEMMER: And the critics would say they took all the intellectual capital in that country and sent them home. And in a day they were unemployed...

FRANKS: Sure.

HEMMER: ... and out of work, and questioning their own future.

FRANKS: Of course.

(END VIDEOTAPE)

HEMMER: Much more, part two of my interview with Tommy Franks tomorrow here on AMERICAN MORNING. We'll get into the whole issue of Afghanistan and Osama bin Laden. We'll talk about that tomorrow. Also, the one common thing he has with the first lady. You'll be surprised to find that answer.

More with Tommy Franks later. Paula Zahn will have more with Tommy Franks a bit later in the week at 8:00 Eastern Time.

Now Heidi.

COLLINS: To politics now, where today in Iowa there will be a rare convergence of campaigns. The president and his challenger will be in Davenport, Iowa, holding dueling events just blocks apart. Candy Crowley is live in Davenport.

Candy, it kind of sounds like a wrestling match of sorts.

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: I was going to say it's like the summer slam political style. You know, what we have here is a convergence in a battleground state. It shouldn't be all that surprising to us, because of out of 50 states there are about 18, 19 states that the two contenders are actually vying for.

Iowa is one of them. We're here in the Quad Cities, which is actually two cities that are in Illinois and two cities in Iowa right along the Mississippi. It is here where these two campaigns converge. The president coming up from the South. The senator coming down from the North.

(BEGIN VIDEOTAPE)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I am determined that as president, I'm not going to be responsible for piling debt on our children.

CROWLEY (voice-over): Painting himself as a fiscal conservative, John Kerry talked deficits, health care, et cetera.

KERRY: I'm going to have a press conference at least once a month to talk to the nation about what I'm doing, because I don't have anything to hide.

CROWLEY: Of all the towns and all the states in all the country, he walks into Beloit, Wisconsin. Ever wonder why?

KERRY: My priority, first and foremost, is putting America back to work.

CROWLEY: It is blue collar, rural and has one of the highest unemployment rates in a state Al Gore barely won. Beloit popped up on what's called a deficit map. It begins with a universe of about 19 battleground states, mostly Midwestern and Southwestern states, along with Florida.

Both campaigns have a deficit map which mathematically calculates various things, including unemployment, military presence and political makeup. The deficit map is why the Kerry and the Bush campaigns find themselves in Davenport, Iowa.

Within Davenport's city limits, the campaigns' two major issues play out up close and personal. Culturally conservative, Davenport has Iowa's highest unemployment rate. It is home to the state's Air National Guard unit. Some of its troops remain in Iraq on extended stay. The city has experienced a high Iraq casualty rate.

Davenport is also one of only two big media markets in Iowa where polls show a dead heat race.

(END VIDEOTAPE)

CROWLEY: And here in the Quad Cities, a new poll by one of the newspapers says that, despite all the problems I just talked about in the package, the president has about a two-point lead here in the Quad Cities. I want to give you an idea of what a big deal this is today, Heidi.

We have obviously President Bush, Mr. Kerry. But look whose pictures get above the fold: the voters. Seems probably just about right.

COLLINS: Yes, I guess so. All right. Candy Crowley, thanks so much for that from Davenport this morning -- Bill.

HEMMER: Thirteen minutes past the hour now. To Daryn Kagan again, looking at the other news at the CNN Center.

Good morning, Daryn.

DARYN KAGAN, CNN ANCHOR: Good morning, Bill.

Let's begin with British police. They are questioning 12 men in connection with possible terrorist activities. The suspects were picked up in raids yesterday across the country. Pakistani authorities say that at least one of the arrests was made after Pakistani intelligence officials shared information with British authorities. A 13th man also picked up in the raid has since been released.

Missouri is a step closer to barring same-sex marriage. Voters yesterday approved a state constitutional amendment banning such unions. Ten other states will put out similar ballot measures in the coming months.

Officials in Salt Lake City, Utah, are searching for Lori Hacking's body. A district attorney says Mark Hacking told a witness that he killed his wife while she slept and then tossed her body into a garbage dumpster. Formal charges against him are expected later this week.

There's a report in "Sports Illustrated" which could mean new testimony in the Kobe Bryant case. It says that a Florida waitress claims that Kobe Bryant groped her. It reportedly happened at the home of his former Los Angeles Lakers teammate, Shaquille O'Neal. Now, Shaq could possibly be called as a witness in Bryant's upcoming sexual assault trial.

Workers are combing Hatteras Island this morning. They're trying to determine the damage estimates. This, after Hurricane Alex tore through North Carolina's Outer Banks. The storm knocked out power to thousands, and the surge flooded Hatteras Island only linked to the mainland.

Winds near the hurricane's eye rose to 100 miles an hour. But Alex spared the Outer Banks a direct hit and is now well out to sea.

So looking at weather for today along the Carolina coast, and clear across the country, Rob Marciano in for Chad Myers, who is still drying off from covering Hurricane Alex.

(WEATHER REPORT)

COLLINS: Still to come this morning, the fallout from a high school football hazing scandal. Some coaches say their lives were ruined because of what their players did. And now they want someone to pay. We'll talk to them live.

HEMMER: Also, in a moment, Mary Kay Letourneau says it was love. A court says it was rape. And now the teacher who seduced a 12-year- old student is now free. A live report on that story when we continue in a moment.

(COMMERCIAL BREAK)

HEMMER: Mary Kay Letourneau, the teacher who served seven years in prison for having a sexual relationship with a sixth grade student, is now free. Released earlier, Kimberly Osias watching this live from Gig Harbor in the state of Washington.

And good morning there, Kimberly.

KIMBERLY OSIAS, CNN CORRESPONDENT: And good morning to you, Bill.

They called it love, prosecutors called it rape. But today, Mary Kay Letourneau can be called an ex-convict, out of jail and free again.

(BEGIN VIDEOTAPE) OSIAS (voice-over): Vili Fualaau was a sixth grader from a broken home. Mary Kay Letourneau was his teacher, a married mother of four, a congressman's daughter, who, by many accounts, defied sensibilities and crossed what many considered sacred boundaries.

GREGG OLSEN, CRIME AUTHOR: So many people see this as a love story, and they want to see them together. I do want to remind people that he was 12 and 13 years old when this happened, and his life has been profoundly impacted by what she did.

OSIAS: Pregnant by Fualaau, Mary Kay Letourneau pleaded guilty in August of 1997 to two counts of child rape. She begged the judge to give her a second chance.

MARY KAY LETOURNEAU, IMPRISONED FOR CHILD RAPE: Your honor, I did something that I had no right to do, morally or legally.

UNIDENTIFIED MALE: Mary Letourneau -- Mary, do you have any comment?

OSIAS: Right after her release, following five months in jail, she defied a court order by getting together with Fualaau. The pair was spotted having sex in a van with $6,000 in their possession. Letourneau landed back in jail, pregnant with their second child. Now, after spending more than seven years in prison, Letourneau is getting out and starting again.

OLSEN: Beyond a book, beyond a movie, beyond anything like that, she's got to focus on what good she can do for the world, and maybe she'll try something like Mothers Behind Bars.

OSIAS: Letourneau now has to register as a convicted sex offender. Although there is a restraining order keeping the two apart, Fualaau is 21 now and can go to court to ask a judge to rescind the ban.

(END VIDEOTAPE)

OSIAS: For the next three years, Mary Kay Letourneau will be under very, very close watch. Any kind of work, where she lives will all have to be reported to authorities. And Bill, any kind of relationship at all, romantic, will also have to be reported.

HEMMER: What about a relationship with the kids she had with him?

OSIAS: Well, you know, she does have two with Fualaau. Those children have been visiting her here about twice a month. We are told by people close to this case that she may even try to go for custody.

HEMMER: Kimberly Osias in Washington State, thanks -- Heidi.

COLLINS: Still to come, a look at what may have been one of the last times anyone saw Lori Hacking alive. There's a new surveillance tape and what appears to be a stunning confession from Lori's husband, Mark. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Checking with Jack once again and the "Question of the Day."

CAFFERTY: Yes. Do you want to -- do you want to be told about the terrorist threats, or do you want to just trust the government to handle them, if, in fact, they are real threats, is the question this morning. We're getting a lot of mail.

Larry in Lexington Park, Maryland, "You're assuming a terrorist attack will occur regardless if the public is warned or not. This is probably not so. Public warnings also reach the potential terrorists, which may change their plans or timetables knowing their targets are now being watched. Thus, public warnings may, in fact, be preventing terrorist attacks. Please warn me always."

Rena in Reston, Virginia, "If intelligence indicates that security should be stepped up, then so be it. But give us the contextual protection and spare us the political back slapping. Tom ridge omitted the contextual information and skip the political backslapping."

"Tom Ridge omitted the context last Sunday and spent the last part of his press conference praising the president and the administration. That we don't need."

And Madge in Pine Knoll Shores, North Carolina, "The Bush alert system reminds me of the young fellow on the street corner beating a drum to keep the elephants away. 'There are no elephants within 100 miles,' he was told. 'I'm doing a good job then, aren't I?' he said."

COLLINS: All right, Jack.

CAFFERTY: A little joke there.

COLLINS: Yes, we got that.

CAFFERTY: Get that?

COLLINS: All right. Thank you, sir.

CAFFERTY: No elephants within 100 miles.

COLLINS: Still to come this morning...

CAFFERTY: Taxi?

COLLINS: ... we are halfway through the work week. We want to get you over the hump with some "90-Second Pop." This is for you, Jack.

Don't hate her because she's beautiful. Halle Berry says being pretty is anything but easy. Plus, "Sports Illustrated" goes looking for the girl next door, and you get to watch. "90-Second Pop" ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: There's the opening bell as we get things started here on a Wednesday morning, 4th day in the month of August. Dow starting at 10120. And Yankees outfielder Gary Sheffield with the honors today. He's going to have to get a better performance today than yesterday.

Dow 30, off about 59 points in trading yesterday. Nasdaq market site, no Yankees in sight there -- 1859 is your opening mark, off about 32 points in trading yesterday on the tech-heavy Nasdaq.

Welcome back, everybody. 9:30 in New York. Half past the hour on this AMERICAN MORNING.

Police claim they have evidence directly linking Mark Hacking with the killing of his wife, including a bloody knife and even a confession. We'll go to a report in a moment here on what authorities in Salt Lake say they've uncovered since Lori Hacking's disappearance. We continue to learn a bit more every day as this story unfolds.

COLLINS: Right. We sure do.

Also, four high school football coaches fired in the fallout of a hazing scandal. They will not go quietly. They're suing now. We'll talk to two of them about their case against former players.

HEMMER: All right. In the meantime, though, back to Salt Lake City. Authorities there say they've been told that Mark Hacking confessed to killing his wife. Detectives say Hacking told a reliable citizen in the psychiatric ward that he murdered his wife while she slept and then threw her body into a trash bin. Miguel Marquez again from Salt Lake this morning there.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): In the document police used to charge Mark Hacking with murder, police lay out their case. David Yocom, the Salt Lake City district attorney, the man who will prosecute Mark Hacking, reads from the report. It lays out what police say Mark Hacking told a witness while at a Salt Lake City psychiatric hospital just days after reporting his wife missing.

DAVID YOCOM, DISTRICT ATTORNEY: Mark Hacking told this reliable citizen witness that he killed Lori while she was asleep in bed and disposed of her body in a dumpster.

MARQUEZ: The report also indicates that police found a mattress in a dumpster near the Hacking residence and that the tags on it matched those on a box spring in the Hackings' bedroom. Mark Hacking purchased a new mattress the day he reported his wife missing.

And there is other evidence. Security cam video from a Salt Lake City convenience store shows Mark Hacking entering the store at 1:18 a.m. on Monday July 19, hours before he reported his wife missing. Hacking enters, along with an unrelated customer, and buys a pack of Camel Lime Twist (ph) cigarettes.

The store's management says the clerk reported that there was nothing strange about Mark Hacking's demeanor or the transaction. Hacking is seen examining his hands, sighing heavily, then purchasing the Camels. He walks off and returns after forgetting his change.

When he leaves, security cameras catch one more glimpse of Mark Hacking driving away in his wife's car. The company's spokesman says the entire transaction lasted two to three minutes.

(on camera): In another piece of video from that same store, Mark and Lori Hacking are seen entering just hours before Mark Hacking purchased those cigarettes, about 9:30 p.m. on Sunday, July 18. It may be the last glimpse we have of Lori Hacking alive.

Mark's Hacking's attorney, Gil Athay (ph), will not comment on how he will defend this case until he sees all the evidence. But he does say an insanity plea is possible.

Miguel Marquez, Salt Lake City, Utah.

(END VIDEOTAPE)

HEMMER: And Miguel, thanks for that. Search dogs will start looking for Lori Hacking's body again tonight. We're told investigators believe she's buried beneath 3,000 tons of trash at a county landfill outside of Salt Lake -- Heidi.

COLLINS: A football hazing scandal cost them their jobs. Now, four former coaches at Long Island's Mepham High School are suing the principal players involved in sexually abusing teammates at a training camp last summer. Joining us now, two of the plaintiffs., Kevin McElroy and Art Canestro, along with their attorney, Thomas Liotti.

I want to begin with you, Mr. Liotti, if I could. This is a $20 million suit. Why sue the parents and the boys in this?

THOMAS LIOTTI, ATTORNEY: Well, because the parents are responsible for the acts of their of children. And that's the bottom line.

My clients have had their lives and careers totally ruined by everything that's happened over the last year. And it's payback time. Somebody has to be responsible for this. My coaches have been taken off the athletic fields and out of classroom, and something's got to be done.

COLLINS: Are you planning to sue the school district as well?

LIOTTI: Yes, and that is already in the work. That's already happening.

COLLINS: All right. And I want to tell you, we did try to get reaction from three of the boys involved in this suit, as well as their parents. Not able to speak with them, but we were able to speak with the attorney, Mark Alter, who represents one of those football players.

I want to show you what he said and get your reaction on the backside. You see it on the screen.

"The parents of the boys accused in this suit also sent their kids to football camp in the care and custody of the school district and the coaches. And somebody didn't appropriately supervise the children. They've had a terrible outcome, too."

Does he make a good point here?

LIOTTI: Well, I gave him -- I gave his name to you, so that's how you got that quote.

COLLINS: Right.

LIOTTI: You know, I think Mr. Alter is just doing what any lawyer would do under the circumstances. The parents are ultimately responsible here. Everyone knows that.

They raised these kids, they nurtured these kids. They had a duty and responsibility to let the district know about any problems with these kids in their past that would indicate that they had any dangerous propensities whatsoever. And they failed to do that, and they are responsible as a result.

COLLINS: Mr. Canestro, the grand jury did not find you criminally negligent. Do you think you watched these kids closely enough?

ART CANESTRO, FMR. MEPHAM HIGH SCHOOL FOOTBALL COACH: That's a good question. We thought about this many times. And we went to the grand jury.

They were looking to charge us with negligence. And believe you me, if they had this much evidence against us, we would be charged. So there was not a shred of evidence that they had to charge us with any type of negligence or lack of supervision.

COLLINS: But how do you feel about it now inside, looking back? Would have you done anything differently?

CANESTRO: Well, we talk about this many times, we've thought about this 100 times, 1,000 times. The only thing you could have done different is to have an adult sleep in the room with the kids. And that was against district policy. We followed the policies and procedures of the district and the protocols. That's the only thing we could have done different.

COLLINS: Kevin McElroy, we heard your attorney here say that your lives are ruined. What do you have to say about that?

KEVIN MCELROY, FMR. MEPHAM HIGH SCHOOL HEAD FOOTBALL COACH: Well, I've been in this profession for close to 30 years. I've been a teacher and a coach for 28 years now.

When I was removed from all my coaching jobs in this district, I spoke to some friends about possibly getting coaching jobs in other districts, and the word that they used is "untouchable." There's no way that they can even bring my name up in front of their principal, their superintendent or their board because of what's happened at Mepham High School.

So, basically, at this particular point, it looks like my coaching career is over. And this is what I've dedicated my life to.

I gave my heart and soul to these kids at Mepham High School. I had them over my house for barbecues. We have barbecues at the end of the two -- two weeks of summer practice, where the families all get together with the coaches and we talk about what's going to happen during that season. We do so much for the kids, and that's all gone.

COLLINS: You must have been absolutely crushed when you heard about the details from this. And let me just remind everyone. Sodomizing the younger boys with broom sticks, pine cones, golf balls. How did it make you feel when you heard this about these kids that you say you were so close to?

MCELROY: Well, first of all, I was in shock when I heard that it happen, period. The second reaction was I can't believe that they have done this, and what about the trust and bond that we had had as coaches and players?

And we always talk about team camaraderie and making sure we take care of each other. So all of that trust and betrayal is now the way I feel about what happened.

COLLINS: But there is a history here, is there not, with this high school football team and its hazing, if you will? Who's responsible for a climate like that?

MCELROY: There's no history. First of all, you have to distinguish between what hazing is and what a crime is. OK?

There is no way that there has ever been any instance of sexual crimes committed in this football program. There is no history.

CANESTRO: Let me add something. We did some research on hazing, and most of the time, if not all, hazing is never reported to coaches. So if you don't know it's happening, how do you stop it? And that's the question I posed to millions of people across the country.

COLLINS: And gentlemen, we have to leave it there. Thank you again to all three of you for coming with (ph) us today.

LIOTTI: Thank you, Heidi.

MCELROY: Thank you.

CANESTRO: Thank you.

COLLINS: Kevin McElroy, Art Canestro and Thomas Liotti, again, thanks -- Bill.

HEMMER: All right, Heidi. Twenty-two minutes before the hour. Back to Daryn Kagan at the CNN Center.

Good morning, Daryn.

KAGAN: Good morning, Bill.

Our headlines begin with heavy fighting in the northern Iraqi city of Mosul. Clashes between police and insurgents there have killed at least a dozen people.

And four Jordanian truck drivers have apparently returned home. The hostages were apparently freed during a raid on their captor's hideout. There are also reports that two Turkish hostages have been freed. That's according to the Arabic language network Al-Jazeera.

A tough day for the prosecution in Scott Peterson's double murder trial. A move by prosecutors prompted the judge yesterday to strike some testimony that the jury had just heard because of inconsistencies. Today, testimony on what investigators found while searching Scott Peterson's computer hard drives should take place.

You've heard of black boxes on airplanes and trains. Now there's a move to get them in your car. The NTSB says that the boxes would even record your speed and seatbelt use. The move comes after an elderly man plowed into a market last July in California, killing 10 people. Investigators say they would have had better information if the car had had a black box.

And finally, a surprising sight for one California household. A big rig careening off of a freeway and smashing through a backyard fence, nobody was hurt. The cause of the crash is under investigation.

What does Mother Nature plan on delivering for the weather picture? Let's check in with Rob Marciano, in for Chad Myers.

Hey, Rob.

(WEATHER REPORT)

COLLINS: Hey, Rob, quickly, when they decide on the hurricane names, always female names, isn't that right?

ROB MARCIANO, CNN METEOROLOGIST: Used to be the case.

COLLINS: Oh.

MARCIANO: Then the girls got angry.

COLLINS: What about Hurricane Bill instead of Bonnie?

MARCIANO: I think there was a Bill several years ago. They rotate them every...

(CROSSTALK)

HEMMER: The list was out.

MARCIANO: Exactly. Yes, Alex, boy, Bonnie, girl. Every other. We give equal time.

COLLINS: I see. OK. Very good.

HEMMER: And when we get on "H?"

COLLINS: All hell will break loose.

MARCIANO: Yes, all hell will break loose.

COLLINS: OK. Rob, thanks so much for that.

Still to come this morning, some significant progress against the leading cause of cancer deaths among women. Dr. Sanjay Gupta has more on that.

HEMMER: Also, in a moment here, Andy is back, "Minding Your Business." If you've got the blues over gas prices, one car company thinks it has the answer.

Back in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Breast cancer is the leading cause of cancer deaths among women. But as Dr. Sanjay Gupta tells us, there are signs researchers may be catching up with the disease.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): There's been significant progress in the fight against breast cancer both in the way it's diagnosed and the way we treat it. First, new treatment options.

Typically, after a lump is removed, women undergo weeks of radiation therapy which often causes nausea and fatigue. With Brachytherapy, small radiation seeds are implanted around the tumor site to destroy any remaining cancer cells. In just five days the treatment is done.

Now, Brachytherapy is not standard for patients because there aren't enough long-term studies. But doctors say up to 80 percent may benefit from it.

Another new technology may make invasive surgery for breast tumors a thing of the past. It's called Ablation Therapy. A thermal device literally zaps the breast cancer away either by electrical currents, lasers, or as we see here, by freezing the tissue. Although limited to gumball-size tumors, ablation for breast tumors is promising, and several studies are already under way to measure its effectiveness compared to surgical tumor removal. While mammograms are still the standard for breast cancer detection, a recent study in the "New England Journal of Medicine" finds that magnetic resonance imaging, or MRIs, are twice as sensitive than mammograms in detecting breast cancer. They are more sensitive, but also much more expensive. Currently, insurance may only cover higher-risk patients, such as young women with a genetic vulnerability to developing breast cancer, or with strong family histories.

Even with advances on the treatment and detection front, none is more important than early detection. At age 20, women should begin monthly self-exams and doctor exams every three years. At age 35, all women should have a baseline mammogram. And starting at 40, an annual breast exam and mammogram is still the gold standard.

Breast cancer is still a devastating disease. But in the past 20 years, the survival rate has improved by 10 percent, and new technology may lead to fewer patients and longer healthier lives.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

COLLINS: On a related note now, a Norwegian study has found lower levels of HDL cholesterol -- that's the good cholesterol -- can actually increase the risk for breast cancer in overweight women. So keeping your cholesterol in check could help stave off breast cancer, in addition to improving your heart health.

Still to come this morning, the Wednesday addition of "90-Second Pop": the hard life of the rich and beautiful. Halle Berry says it isn't easy being pretty.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: OK. Time now for another all new chapter of "90-Second Pop." Introducing the cast for this racy subject today, B.J. Sigesmund, staff editor for "US Weekly"; Sarah Bernard, contributing editor for "New York" Magzine; and Andy Borowitz of borowitzreports.com. Wow, no like CEO, somebody in charge stuff today.

(CROSSTALK)

ANDY BOROWITZ, BOROWITZREPORTS.COM: Keeping it real, Heidi.

COLLINS: Sarah, let's start with you. Halle Berry saying, you know, it is not easy to be gorgeous. But she also says beauty is meaningless. She's beautiful, so...

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Yes, this bothers me.

COLLINS: Isn't it easy for her to say? BERNARD: I don't know. It really is easy for her to say. And the thing about some -- an actress saying this is that it's completely related to her salary.

I mean, if she was not beautiful and the way she, she would not have $12.5 million that she recently got for "Catwoman." I mean, it's kind of like people who have a lot of money saying, you know, "Money isn't everything." But it is essentially -- you know, for people who are not actresses it is really upsetting.

B.J. SIGESMUND, STAFF EDITOR, "US WEEKLY": Well, still, Halle Berry has had a tough time. You know, her first boyfriend beat her so hard, he punctured her left eardrum.

When she was married to David Justice, she took out a restraining order against him. And then we all know that 10 days after she won that Oscar, a couple years ago, she discovered that her husband was a sex addict. So it has not been easy for Halle Berry, even though she's beautiful.

BERNARD: It hasn't, but I'm sure she will be fine. And I'm sure she will have another boyfriend if she wants one.

BOROWITZ: Look, it's not easy being beautiful. I mean, I hear Jack Cafferty saying this all the time. And I just -- the thing was, you know, with Halle Berry, though, is that she says that beauty is a terrible burden. But that still is no excuse to put on a cat mask.

I'm sorry, I just don't think it is. It doesn't excuse that.

COLLINS: You're right. Well, let's stick with you on this next one now.

BOROWITZ: OK.

COLLINS: I know this is a topic you've been waiting to talk about. The swimsuit models for "Sports Illustrated," they are now going to be -- NBC, I should say -- dipping into the reality TV waters...

BOROWITZ: Right.

COLLINS: ... if you will. And they're going to capture this whole thing on tape.

BOROWITZ: The search for America's greatest swimsuit model? Is that...

BERNARD: Right, exactly.

BOROWITZ: Forget about bin Laden. Let's get on the swimsuit model thing. That's what we really have to find. I mean, I guess there's a sense that there is a shortage of swimsuit models and we need to find more?

BERNARD: We need more. I think this is (UNINTELLIGIBLE). I actually think this is -- of all the new reality shows, I think this one is a definite hit.

COLLINS: Really?

BERNARD: I mean, they've been filming the making of the "Sports illustrated" swimsuit issue for years. So really, the only difference is that they're putting the models, the sort of four contestants to live together for a little while so that you have the kind of "Big Brother" reality show element.

BOROWITZ: "Real World."

BERNARD: "Real World."

SIGESMUND: The question is, is it going to be more like "America's Next Top Model"...

COLLINS: Yes.

SIGESMUND: ... which has been a huge hit for UPN, or a lot like "Are You Hot," the Lorenzo Lamas thing.

COLLINS: Oh, that wasn't good at all.

SIGESMUND: With the laser pointer.

BOROWITZ: I'm sorry, that was a classic.

SIGESMUND: Keep the laser pointers away.

BOROWITZ: I did not miss an episode.

COLLINS: I had forgotten all about that.

SIGESMUND: No laser pointers allowed.

COLLINS: It was so well done.

SIGESMUND: No, I think it's very smart for old cultural institutions like the "SI" swimsuit issue to be revamping themselves for the reality TV world.

BOROWITZ: But if NBC really wants to find like the great swimsuit model, couldn't they just look in Trump's rolodex? I mean, why do they actually have to have like a whole show? It seems crazy.

BERNARD: Yes.

COLLINS: All right, guys. Thanks so much for that this morning, B.J., Sarah and Andy. As always, thanks -- Bill.

HEMMER: All right, Heidi. Thanks for that.

Gas prices getting you down? If so, Andy Serwer is "Minding Your Business" with a suggestion today to lift your spirits. How about a new car, maybe?

Good morning.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Buy me one.

Gas prices, oil prices, specifically, getting the markets down. Let's go to the Big Board and check it out.

Dow is down 36 points. And if someone doesn't watch out down there, Bill Hemmer...

HEMMER: Yes?

SERWER: ... we're going to get down below 10000 again. So someone better be paying attention at the NYSE today.

Price of oil at $44.28. That's another new record. If it does go up towards $50, that's a real problem for the U.S. economy. In fact, for economies around the globe.

Tommy Hilfiger active today. The company lost $7 million in the latest quarter. Tommy, Tommy, Tommy.

Did you know this company is based in Hong Kong? I did not know that.

HEMMER: I did not know that either. But now I do.

SERWER: Now you do.

HEMMER: What's happening with the Prius? Toyota is coming out, going to do what with that?

SERWER: They're boosting production, and that's no surprise, Bill, because these things have been rolling off the lots. In fact, there's a huge back order.

They're looking to up production in the U.S. 50 percent. Got about 50,000 of these cars in the United States this year. They're looking to go to 80,000 next year.

It sells for around $21,000, the Prius does. Does about 55 miles per gallon. That's combined city, country. Some people saying they don't quite get that.

Honda is also making these things. Ford is, too. Honda says they're completely out of these thing. So cars are very hot with gas at $1.89 a gallon.

HEMMER: That will do it, too.

SERWER: You're right.

HEMMER: Thank you, Andy.

Coming up next hour on CNN, you keep hearing about these terror warnings. What steps can you take if any to keep your -- your own self safe at home? Some tips on emergency planning with Daryn Kagan next hour on "CNN LIVE TODAY."

We're back in a moment on AMERICAN MORNING after this.

(COMMERCIAL BREAK)

HEMMER: Before -- before we check out of here for the day, here's Aaron Brown, a preview of what's coming up later tonight on "NEWSNIGHT." Here's Aaron.

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on "NEWSNIGHT," the terror alert issued over the weekend has raised an awful lot of questions. Chief among them, how concerned should we be? Is there a political motivation with the campaign on? Lots of others.

Tonight on the program we'll talk to Tom Ridge, the man in charge of Homeland Security, and get some answers. We'll have that, plus all of the day's top news, of course, morning papers, and everything else that makes "NEWSNIGHT" "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern -- Bill.

HEMMER: Twelve hours from now, Aaron. Thanks for that.

Now Heidi.

COLLINS: Jack, one last time with the responses to the "Question of the Day."

CAFFERTY: Yes. Now, about these terror alerts, do you want to be informed, or do you trust the government to keep you safe, just let them do their thing?

Glinda in Upper Marlboro, Maryland, "Homeland Security has a duty to alert the American public about security threats, but the office loses credibility when it becomes another arena to launch Busy administration rhetoric."

Russ in Middletown, Maryland, "Chatter and information that's three years old? We should not give the terrorists any power to manipulate the press and the government. Just do your job. We're all aware of the potential. We all remember September 11."

And R. Ramirez, Cape Canaveral, "I equate the terror alerts with those old eight balls. You ask the question, then you shake it and turn it upside down to get the answer. The point is that everything is a best guess, and quite the opposite of intelligence."

HEMMER: It is decidedly so.

CAFFERTY: And thank you for straightening out that Quad City situation for us.

(CROSSTALK)

COLLINS: Big time. CAFFERTY: The biggest mistake I ever made was bringing that up this morning.

(LAUGHTER)

COLLINS: Thanks, Jack.

HEMMER: We've got to run. Here's Daryn at the CNN Center.

Daryn, good morning to you.

KAGAN: Good morning, you guys. Continue to have a great day in New York City. And we'll get started here.

At CNN headquarters in Atlanta, I'm Daryn Kagan.

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