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CNN Live At Daybreak

Convoy Investigation; Update on Scott Peterson Case; Interview With Bill Rancic

Aired October 18, 2004 - 07:30   ET

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


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


BILL HEMMER, CNN ANCHOR: Back in New York. Welcome and good morning again. We are here in Chicago. Do you remember how to do this?
SOLEDAD O'BRIEN, CNN ANCHOR: Yes, you know, read off the teleprompter. Try not to interrupt your co-anchor.

HEMMER: That's right.

O'BRIEN: What else is there to know?

HEMMER: Only two rules. Welcome back, everyone. Great to have you along with us today.

What's going to happen now to those 18 soldiers in Iraq who refused to make that fuel delivery, saying they did not have the proper protection needed for that mission? We'll talk to General David Grange about that in a few moments. He makes his home here in Chicago, by the way. We'll talk about the punishment possibilities and that perhaps the commander could be held responsible. So we'll get to that story this morning.

O'BRIEN: Also this morning, we're going to talk with Bill Rancic. He, of course, was the last person standing after that first season of "The Apprentice". Remember all of the nastiness, the back- fighting, the general drama across the board? Well, he is here, of course, in Chicago. He's working on Donald Trump's new hotel project. We're going to find out just what kind of job is it, and is he really in charge? We'll find out what he's doing, all of the dirt on the Donald, too.

HEMMER: I want to know what the Donald is up to.

O'BRIEN: Yes.

HEMMER: Did he finish that building yet?

O'BRIEN: Yes, it's done, a quick three days.

HEMMER: Quick work.

Heidi Collins with us here as well here.

Good morning to you with the headlines here.

HEIDI COLLINS, CNN ANCHOR: Good morning. Hey, it's windy in the Windy City.

HEMMER: That's right.

COLLINS: Well, I've been noticing that today. All right, we want to keep going to the news now this morning.

With just over two weeks to go before the election, Senator John Kerry appears to be losing ground to President Bush. A new CNN/"USA Today"/Gallup poll shows the president with an 8-point lead among likely voters. The spread is slightly smaller in other polls. "TIME" puts the president ahead by just 2 points. Those surveys were taken between last Wednesday and Saturday.

Election offices opened in Florida this morning. It's a chance for busy voters to avoid waiting in line on November 2. Early voting will continue in the battleground state until the end of the month.

More people are being released from the hospital after Saturday's massive pileup on Interstate 95 near Baltimore. It was started during an intense thunderstorms there. The crashes involved 92 cars. There were 17 separate accidents along the 11-mile stretch of the highway. About 50 people were hurt, most though with minor injuries. One patient does remain hospitalized in serious but stable condition now.

And Martha Stewart speaks out for the first time about her life in prison. Stewart says everyone in the West Virginia prison where she is spending the next five months is -- quote -- "nice." In a message posted on her Web site, Stewart says she is adjusting well to the prison and describes it as an old-fashioned college campus without the freedom.

Isn't that nice?

HEMMER: Then there's that.

O'BRIEN: That's interesting.

HEMMER: Hey, I've got some tribute for the Chicago River over here, OK?

COLLINS: Really?

HEMMER: Yes, as a matter of fact.

COLLINS: We thought at first that the smell wasn't so good. But then we realized that it's chocolate. It's a lovely chocolate factory that's right around the corner, and I believe that the whole city of Chicago actually smells like chocolate.

O'BRIEN: It does! Like that smell when you get out of the car at the hotel.

COLLINS: Yes.

O'BRIEN: Oh, it smells so good.

COLLINS: It's awesome, yes.

O'BRIEN: Like someone is baking cookies.

COLLINS: Yes. And they are.

O'BRIEN: I love it.

COLLINS: Just for you.

HEMMER: Thank you, Heidi.

I want to get to this story out of Iraq now. A group of American soldiers in Iraq are under investigation now after refusing to follow orders. The soldiers were supposed to take part in a supply convoy, where explosive devices had already killed dozens of others.

(BEGIN VIDEO CLIP)

BRIG. GEN. JAMES E. CHAMBERS, 13TH CORPS SUPPORT COMMAND: Preliminary findings indicate that the soldiers involved expressed concerns regarding maintenance and safety. As a result, I have directed that the 343rd conduct a maintenance and safety stand-down, during which time vehicles will be thoroughly inspected and the unit will retrain and certify for their mission.

(END VIDEO CLIP)

HEMMER: Now retired Army Brigadier General David Grange, a CNN military analyst, also makes his home here in Chicago.

(BEGIN VIDEOTAPE)

HEMMER: The military is downplaying the story in Iraq. How serious is it with the 18 who refused to do that re-supply mission?

BRIG. GEN. DAVID GRANGE, U.S. ARMY (RET.): Well, it's unusual. Normally you don't have soldiers refuse to conduct a mission once the order is given. Soldiers all have a right to question with their chain of command, hey, sir, hey, sergeant, there's another way to do this. You know, we need to get this vehicle fixed. Can we wait 24 hours, 8 hours, whatever? But to refuse an order, that's serious.

HEMMER: What kind of punishment could be there for them?

GRANGE: There's a spectrum of punishment that one could receive for disobeying an order from the Uniform Code of Military Justice, Article 15, all the way up to court-martial, which is where you have, you know, a jury, you have a lawyer present. So it is quite a spectrum, yes.

HEMMER: In the bigger picture, does this suggest anything to you about the maintenance ability for the U.S. Army today? Does it suggest anything about the armor that is said to be retrofitting these cabs so that the U.S. soldiers and the Marines can stay safe on the ground in Iraq? GRANGE: Maintenance is tough. Maintenance in the military is just as important as training. In other words, they're both readiness requirements to conduct combat. And maintenance is very strict. Let's say you're going in and do a 60,000 mile check-up on your car. You may do it this month, you may do it next month. In the military, if it's scheduled for that week, that day, you do it. You don't have any choice.

Now retrofitting vehicles with armored kits to give them enhanced protection takes a while. What you see in Iraq today did not start when the Iraq war started. These are problems the military has had since Vietnam.

And when I guess during the '80s is when the military really started fixing some of the problems that they've had that we know from the Korean War and other places, and it's we're playing catch-up basically to get these things squared away.

HEMMER: There's another story out today, similar to this, in "The Washington Post." Apparently Ricardo Sanchez last winter sent a letter, saying that he did not have the proper equipment on the ground to conduct various missions. Now apparently now it is much better, substantially better as the article points out. What do you make, though, when Sanchez writes an article like that?

GRANGE: Sure. I think when General Sanchez wrote that article, it was during the transition after April. In other words, the transition from maneuver warfare to SASO, security and stability operations. And what happened is he needed different types of equipment in order to do sustained counter-insurgency operations. And I'm sure he did not have what he need at that time.

HEMMER: Is this the similar problem you talk about relate to the other story, though, that goes back to Vietnam and 35-plus years?

GRANGE: Sure. I mean, you know, there were no armored trucks years ago. Only recently have they started using up-armored kits. You used to put sand bags on the floor and just scrounge for things to give you some added protection. Highway 1 in Vietnam was a convoy nightmare. People were ambushed all the time. But the transportation units got very good at counter-ambushing the enemy forces. And it's part of combat. It's dangerous.

(END VIDEO CLIP)

HEMMER: Again CNN military analyst David Grange with the U.S. Army on the latest news out of Iraq we're getting today -- Soledad.

O'BRIEN: Turning now to Scott Peterson's double-murder trial. This week at long last, the defense gets to present its case.

CNN's Rusty Dornin now on what we can expect in the week ahead.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice over): The trial came to a halt last week over the concrete used to make this anchor found at the bottom of Scott Peterson's boat.

Sources tell CNN prosecutors needed more time to counter testimony by a defense witness, an engineer who is an expert in concrete. The defense claims Peterson made the anchor and used the remainder of a 90-pound bag of cement to do a back yard project. The prosecution contends Peterson used the bag of cement to make five anchors, four of them to weight down Laci Peterson's body in San Francisco Bay, anchors that were never found.

A prosecution witness said the concrete in the anchor did not match the concrete in the back yard. The defense expect is expected to say the concrete is the same.

The defense can point to this wire-tapped conversation between Scott Peterson and Laci Peterson's brother, Brent Rocha.

BRENT ROCHA, BROTHER OF LACI PETERSON: They talk about cement in your shop that you used for, I don't know, anchors or something.

SCOTT PETERSON, ACCUSED OF MURDER: Yes, I made a boat anchor with some cement and then I put some in the driveway here.

DORNIN: Analysts foresee a battle of the experts. Key could be a pathologist expected to testify Laci Peterson's fetus survived past December 24. If jurors believe that, it could exonerate Scott Peterson, who was under surveillance after his wife's disappearance.

The defense may also call a witness to cast doubt on prosecution claims that the dog, Trimble (ph), picked up Laci Peterson's scent at the Berkeley marina.

(on camera): Defense attorney Mark Geragos is expected to take six to eight days to present his case. The judge has told the jury he hopes they will begin deliberations November 3.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

O'BRIEN: Thirty-one-year-old Scott Peterson, if he is convicted, could face the death penalty.

HEMMER: It's about 20 minutes now before the hour.

(WEATHER REPORT)

O'BRIEN: Still to come on AMERICAN MORNING this morning, it looks like one of the biggest names in the candy business is on the block. Andy Serwer is "Minding Your Business" for us this morning. He's going to have that.

HEMMER: Also, along the Chicago River this morning, the man who impressed Donald Trump so much he hired him. Bill Rancic from "The Apprentice" tells us how he really did learn some business lessons out of reality TV. And that's his building next to the "Sun-Times" building in downtown Chicago. Back in a moment. AMERICAN MORNING on the road in Chicago.

(COMMERCIAL BREAK)

HEMMER: We are on the move all week. In fact, we're going to change locations Monday through Friday here. Tomorrow on Tuesday, our visit takes us to Loyola University, along Chicago's famous Magnificent Mile. Among the many, yes, you see on the screen, Barak Obama, Alan Keyes, Scott Turow, the author, Ebert and Roeper, the film critics. Also the history of Chicago politics. It has been volatile for decades and the spirited campaign of 2004. We'll check in on all of that tomorrow, Tuesday, in the Windy City.

Back to Soledad now.

O'BRIEN: Bill, I look forward to that.

Well, fueled by Donald Trump's signature sayonara, "The Apprentice" now in its second season has become one of television's hottest shows. Last year you'll recall Bill Rancic's fantasy became a reality when he was the show's sole survivor. He is now a newly- minted celebrity in this town, which is his town, born and raised here.

(BEGIN VIDEOTAPE)

DONALD TRUMP, HOST, "THE APPRENTICE": Bill, you are hired.

O'BRIEN (voice over): Bill Rancic is going to the top, to the top of Chicago's skyline that is. This local Chicago boy, Donald Trump's newest apprentice, has come home.

BILL RANCIC, "THE APPRENTICE" WINNER: All right, I'm on top of it.

O'BRIEN: He'll be the supervisor-in-training of Trump's latest skyscraper project, a 90-story luxury hotel and condominium tower named what else? Trump International Hotel and Tower in Chicago.

RANCIC: I'm kind of the eyes and ears for Donald Trump here in Chicago. So it's, you know, just making sure that everything is done and conducted in the right way.

O'BRIEN: It's not like Chicago doesn't have tall buildings. It already has America's tallest, the Sears Tower, along with the Aon Building and John Hancock Center. Trump's building will be the city's fourth tallest.

Is the Donald OK with not being first?

TRUMP: I build better buildings. I usually get the best location. And, you know, that is something really that can't be duplicated.

O'BRIEN: With condominiums starting around $640,000 and a top floor penthouse going for about 16 million, this will be one of the priciest places to live in the city. Construction for the site will begin this fall when they demolish the seven-story Chicago "Sun-Times" building, a location where boats used to pull up to deliver newsprint. Now it looks like yachts may be pulling up instead.

(END VIDEOTAPE)

And we're showing you a picture now this morning of that building. That is Bill Rancic's big project ahead. He's got a new book out as well. It's called "You're Hired: How to Succeed in Business and Life From the Winner of 'The Apprentice.'"

Joining us out here in your hometown. Later, we'll chat about all of the things we need to do in this city while we're here.

RANCIC: Definitely.

O'BRIEN: But first I want to talk to you a little bit about your boss. I mean, you laughed when you heard that sound bite. I always have the best location.

RANCIC: Yes.

O'BRIEN: How's it been?

RANCIC: It's been great. I mean...

O'BRIEN: Pick one.

RANCIC: You know, it's remarkable how much time I have actually spent with Donald Trump.

O'BRIEN: Really?

RANCIC: The amount of access that I have to him. You know, I was the biggest skeptic of them all after this was over. I thought I was never going to see him again.

O'BRIEN: It was reality TV...

(CROSSTALK)

RANCIC: Well, I thought this was a show and, you know, that's going to be it. But I have -- you know, I see him, you know, several times a week. He calls me almost every day. I mean, to have Donald Trump as your mentor is pretty remarkable.

O'BRIEN: How about to have Donald Trump as your boss? Because I've got to imagine, he could be tough and testy?

RANCIC: Well, he's tough, but it's more of a learning experience for me. So I'm watching him, you know, kind of work in the zone every day. And I've been really enjoying that the most out of the whole process.

O'BRIEN: We mentioned that you've got a new book. And I guess this is... RANCIC: That's the book on tape.

O'BRIEN: ... the book on tape. Look at you prepare here. Tell me a little bit about why you decided to write a book. I mean, you've only been working really on this project for six months essentially.

RANCIC: Well, the book is more about, you know, business in general. And I've been an entrepreneurs my whole life. And I had cigars around the world. I started that 10 years ago. And I wanted to write a book, which was based on practical experience rather than theories. So many of these business books out there, they're written in theory by people who have never left the classroom.

And I'm a guy who has been out there and put my life savings on the line and had to worry, you know, about the payroll each week and didn't take a paycheck for a year. So this is a book I think that everyone can relate to, and it's not filled with business school jargon. It's more an everyday man's business book and woman's business book.

O'BRIEN: You dedicate a number of chapters to your experiences on "The Apprentice," which, of course, as we all know, was like a snake pit, the back-biting.

RANCIC: That's right. Right.

O'BRIEN: The back-stabbing, the general nastiness and meanness. What did you learn? What did you get out of that experience?

RANCIC: Well, I think the show, you know, is definitely a parallel to corporate America. There are so...

O'BRIEN: It's that bad?

RANCIC: No, no, but does some of that exist in corporate America? Yes it does. But the people who really get ahead I don't think participate in the back-stabbing and being cutthroat and all of the politics.

It came down to Kwame and myself in the end, and we were two guys who didn't back-stab, who didn't, you know, back-fight. We played the game I think with integrity and we took the high road the whole way. And I think it was, you know, very true to life. And I think people who play the corporate America game that way are the ones who are truly successful and are in it for the long haul.

O'BRIEN: One quick thing. You won a book at the end of -- a book! A car.

RANCIC: I won a car.

O'BRIEN: You're going to auction it off.

RANCIC: I'm auctioning it. I won a 2005 Chrysler convertible, and I'm auctioning it off. And as you know, I'm the spokesman for Advanta MasterCard. So people can go to Avanta.com and bid on the car. So it's a great car.

O'BRIEN: And the money goes to your charity in your dad's name.

RANCIC: A 100 percent of the money goes to charity. So Advanta.com they can go to that and bid on it.

O'BRIEN: Nice to see you, Bill Rancic. Thanks for being with us.

RANCIC: Thank you.

O'BRIEN: Bill.

HEMMER: Good to see you, too.

RANCIC: Thanks, Bill.

HEMMER: Get back to work, all right?

O'BRIEN: It's time to start, back on the job.

RANCIC: Well, everyone is my boss now that I've won. It's funny.

HEMMER: Well done. Let's get a break here. In a moment, one of the big name businesses here in Chicago is putting one of the most famous brands up for sale. Andy is back "Minding Your Business" and he explains after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. We want to get back over to the Cartan's (ph) Restaurant and check on in again with Jack and Andy.

How are you guys doing? Good morning again.

JACK CAFFERTY, CNN ANCHOR: We're warmer than you are actually.

HEMMER: It's icy.

(CROSSTALK)

CAFFERTY: In the heart of the great big city of Chicago. Andy Serwer is here "Minding Your Business." Kraft Foods is going to unload a couple of things that don't exactly fit with the macs and cheese.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes, that's right, Jack. We're tracking the price of oil. But let's talk about another very important commodity this morning, that being candy.

As Jack said, Kraft Foods is looking to sell a couple of its big name brands; that being Lifesavers and Altoids, those breath mints. And as Jack can tell you, I might use some Altoids this morning.

Anyway, Kraft is looking to sell this business for over a billion dollars. These two companies do about 300 million in sales. You know, Jack, Altoids is kind of a sleepy-nothing brand there for a while until Kraft really made this thing big. Kraft is headquartered in Northfield, Illinois, which is about 20 minutes to the north of where we sit.

CAFFERTY: Which is probably why they call it Northfield.

SERWER: Because it's in the north.

CAFFERTY: Now, there's a rumor on the street that you and I are possibly the worst two football gamblers in the entire state of Illinois this morning.

SERWER: Yes, that's right. I was 0 for 3 in my picks and overall I'm not so good.

First of all the Bears did not -- here are the picks. You can see here. Look at that. Bill Hemmer doing very well. And, Jack, hey, I've got some stocks you might want to buy.

CAFFERTY: I'm sure you do.

SERWER: Now all right let's talk about my three games. First of all, yes, the Patriots continue to win. I didn't pick that game. Also the Lions did not beat the Packers. And here, the Redskins beat the Bears.

CAFFERTY: That's the first thing they've won all year.

SERWER: You know, I was trying to go for the Bears, and the Bears let me down. I come to this town and try to root for this team and got nothing out of it. My home team, the Redskins...

CAFFERTY: But up until this point, you rooted for the Redskins, and they've lost every game, too, right?

SERWER: I keep raising my flag of convenience, and it's not working out very well.

CAFFERTY: All right, thanks, Andy.

SERWER: You're welcome.

CAFFERTY: I love this town. I've been in I think every big city in America, and Chicago is one of my favorites. Soldier Field, Lincoln Park, Wrigley Field, Kaminski (ph), the Stockyards, the Blackhawks, the theater, the jazz, the blues, the comedy, the best barbecue around. But mostly it's the people. These are just good folks out here. There is a Midwestern something or other that crept into this third biggest city in the United States, and it gives it kind of a unique charm.

So what comes to mind when you hear the name Chicago? That's the e-mail "Question of the Day."

David writes from Ames, Iowa, which is just down the road apiece: "Who can think of Chicago without thinking of the Chicago Blues Festival? If you only go to one musical festival in your lifetime, you've got to make it this one."

Bill from here Chicago: "Welcome to the home of Carl Sandburg, Frank Lloyd Wright and the University of Chicago, where there have been a record 69 Nobel Prize winners. You're going to love our city."

Doug in Bloomfield, New Jersey, writes: "The lyrics of 'Chicago' by Crosby, Stills and Nash from 1970 come to mind. Don't ask Jack to help you, because he'll turn the other ear. Won't you please come to Chicago or else join the other side. We can change the world."

And finally James in Glenview, Illinois: "I'm biased as I live in a Chicago suburb. But simply put, it's a city that works."

Amen to that. AM@CNN.com. We'll be back with more of this a bit later.

Let's go back to Soledad and Bill.

HEMMER: How about Harry Kerry (ph), Sears Tower?

O'BRIEN: Oh, yes, there's lots to love.

HEMMER: (UNINTELLIGIBLE) building?

O'BRIEN: Absolutely.

HEMMER: Two more hours here.

O'BRIEN: I want to know the best barbecue place. Well, I'm feeling like a little barbecue maybe a little dinner tonight, some barbecue?

HEMMER: I'd love that.

O'BRIEN: You'll work on that? All right, get on that for us, Jack.

Still to come this morning, John Kerry says that if elected Bush -- rather, if President Bush is re-elected, the incumbent has a January surprise in store for the voters. We're going to get a look at what he's talking about as AMERICAN MORNING rolls on from Chicago. Stay with us. We're back in just a moment.

(COMMERCIAL BREAK)

HEMMER: In a moment, there's a flu shot shortage here in the U.S. Now some states are taking action to make sure the right people get the right vaccine. We're paging the good doctor on this Monday morning to find out what's being done. Back in a moment live in Chicago on this AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired October 18, 2004 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Back in New York. Welcome and good morning again. We are here in Chicago. Do you remember how to do this?
SOLEDAD O'BRIEN, CNN ANCHOR: Yes, you know, read off the teleprompter. Try not to interrupt your co-anchor.

HEMMER: That's right.

O'BRIEN: What else is there to know?

HEMMER: Only two rules. Welcome back, everyone. Great to have you along with us today.

What's going to happen now to those 18 soldiers in Iraq who refused to make that fuel delivery, saying they did not have the proper protection needed for that mission? We'll talk to General David Grange about that in a few moments. He makes his home here in Chicago, by the way. We'll talk about the punishment possibilities and that perhaps the commander could be held responsible. So we'll get to that story this morning.

O'BRIEN: Also this morning, we're going to talk with Bill Rancic. He, of course, was the last person standing after that first season of "The Apprentice". Remember all of the nastiness, the back- fighting, the general drama across the board? Well, he is here, of course, in Chicago. He's working on Donald Trump's new hotel project. We're going to find out just what kind of job is it, and is he really in charge? We'll find out what he's doing, all of the dirt on the Donald, too.

HEMMER: I want to know what the Donald is up to.

O'BRIEN: Yes.

HEMMER: Did he finish that building yet?

O'BRIEN: Yes, it's done, a quick three days.

HEMMER: Quick work.

Heidi Collins with us here as well here.

Good morning to you with the headlines here.

HEIDI COLLINS, CNN ANCHOR: Good morning. Hey, it's windy in the Windy City.

HEMMER: That's right.

COLLINS: Well, I've been noticing that today. All right, we want to keep going to the news now this morning.

With just over two weeks to go before the election, Senator John Kerry appears to be losing ground to President Bush. A new CNN/"USA Today"/Gallup poll shows the president with an 8-point lead among likely voters. The spread is slightly smaller in other polls. "TIME" puts the president ahead by just 2 points. Those surveys were taken between last Wednesday and Saturday.

Election offices opened in Florida this morning. It's a chance for busy voters to avoid waiting in line on November 2. Early voting will continue in the battleground state until the end of the month.

More people are being released from the hospital after Saturday's massive pileup on Interstate 95 near Baltimore. It was started during an intense thunderstorms there. The crashes involved 92 cars. There were 17 separate accidents along the 11-mile stretch of the highway. About 50 people were hurt, most though with minor injuries. One patient does remain hospitalized in serious but stable condition now.

And Martha Stewart speaks out for the first time about her life in prison. Stewart says everyone in the West Virginia prison where she is spending the next five months is -- quote -- "nice." In a message posted on her Web site, Stewart says she is adjusting well to the prison and describes it as an old-fashioned college campus without the freedom.

Isn't that nice?

HEMMER: Then there's that.

O'BRIEN: That's interesting.

HEMMER: Hey, I've got some tribute for the Chicago River over here, OK?

COLLINS: Really?

HEMMER: Yes, as a matter of fact.

COLLINS: We thought at first that the smell wasn't so good. But then we realized that it's chocolate. It's a lovely chocolate factory that's right around the corner, and I believe that the whole city of Chicago actually smells like chocolate.

O'BRIEN: It does! Like that smell when you get out of the car at the hotel.

COLLINS: Yes.

O'BRIEN: Oh, it smells so good.

COLLINS: It's awesome, yes.

O'BRIEN: Like someone is baking cookies.

COLLINS: Yes. And they are.

O'BRIEN: I love it.

COLLINS: Just for you.

HEMMER: Thank you, Heidi.

I want to get to this story out of Iraq now. A group of American soldiers in Iraq are under investigation now after refusing to follow orders. The soldiers were supposed to take part in a supply convoy, where explosive devices had already killed dozens of others.

(BEGIN VIDEO CLIP)

BRIG. GEN. JAMES E. CHAMBERS, 13TH CORPS SUPPORT COMMAND: Preliminary findings indicate that the soldiers involved expressed concerns regarding maintenance and safety. As a result, I have directed that the 343rd conduct a maintenance and safety stand-down, during which time vehicles will be thoroughly inspected and the unit will retrain and certify for their mission.

(END VIDEO CLIP)

HEMMER: Now retired Army Brigadier General David Grange, a CNN military analyst, also makes his home here in Chicago.

(BEGIN VIDEOTAPE)

HEMMER: The military is downplaying the story in Iraq. How serious is it with the 18 who refused to do that re-supply mission?

BRIG. GEN. DAVID GRANGE, U.S. ARMY (RET.): Well, it's unusual. Normally you don't have soldiers refuse to conduct a mission once the order is given. Soldiers all have a right to question with their chain of command, hey, sir, hey, sergeant, there's another way to do this. You know, we need to get this vehicle fixed. Can we wait 24 hours, 8 hours, whatever? But to refuse an order, that's serious.

HEMMER: What kind of punishment could be there for them?

GRANGE: There's a spectrum of punishment that one could receive for disobeying an order from the Uniform Code of Military Justice, Article 15, all the way up to court-martial, which is where you have, you know, a jury, you have a lawyer present. So it is quite a spectrum, yes.

HEMMER: In the bigger picture, does this suggest anything to you about the maintenance ability for the U.S. Army today? Does it suggest anything about the armor that is said to be retrofitting these cabs so that the U.S. soldiers and the Marines can stay safe on the ground in Iraq? GRANGE: Maintenance is tough. Maintenance in the military is just as important as training. In other words, they're both readiness requirements to conduct combat. And maintenance is very strict. Let's say you're going in and do a 60,000 mile check-up on your car. You may do it this month, you may do it next month. In the military, if it's scheduled for that week, that day, you do it. You don't have any choice.

Now retrofitting vehicles with armored kits to give them enhanced protection takes a while. What you see in Iraq today did not start when the Iraq war started. These are problems the military has had since Vietnam.

And when I guess during the '80s is when the military really started fixing some of the problems that they've had that we know from the Korean War and other places, and it's we're playing catch-up basically to get these things squared away.

HEMMER: There's another story out today, similar to this, in "The Washington Post." Apparently Ricardo Sanchez last winter sent a letter, saying that he did not have the proper equipment on the ground to conduct various missions. Now apparently now it is much better, substantially better as the article points out. What do you make, though, when Sanchez writes an article like that?

GRANGE: Sure. I think when General Sanchez wrote that article, it was during the transition after April. In other words, the transition from maneuver warfare to SASO, security and stability operations. And what happened is he needed different types of equipment in order to do sustained counter-insurgency operations. And I'm sure he did not have what he need at that time.

HEMMER: Is this the similar problem you talk about relate to the other story, though, that goes back to Vietnam and 35-plus years?

GRANGE: Sure. I mean, you know, there were no armored trucks years ago. Only recently have they started using up-armored kits. You used to put sand bags on the floor and just scrounge for things to give you some added protection. Highway 1 in Vietnam was a convoy nightmare. People were ambushed all the time. But the transportation units got very good at counter-ambushing the enemy forces. And it's part of combat. It's dangerous.

(END VIDEO CLIP)

HEMMER: Again CNN military analyst David Grange with the U.S. Army on the latest news out of Iraq we're getting today -- Soledad.

O'BRIEN: Turning now to Scott Peterson's double-murder trial. This week at long last, the defense gets to present its case.

CNN's Rusty Dornin now on what we can expect in the week ahead.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice over): The trial came to a halt last week over the concrete used to make this anchor found at the bottom of Scott Peterson's boat.

Sources tell CNN prosecutors needed more time to counter testimony by a defense witness, an engineer who is an expert in concrete. The defense claims Peterson made the anchor and used the remainder of a 90-pound bag of cement to do a back yard project. The prosecution contends Peterson used the bag of cement to make five anchors, four of them to weight down Laci Peterson's body in San Francisco Bay, anchors that were never found.

A prosecution witness said the concrete in the anchor did not match the concrete in the back yard. The defense expect is expected to say the concrete is the same.

The defense can point to this wire-tapped conversation between Scott Peterson and Laci Peterson's brother, Brent Rocha.

BRENT ROCHA, BROTHER OF LACI PETERSON: They talk about cement in your shop that you used for, I don't know, anchors or something.

SCOTT PETERSON, ACCUSED OF MURDER: Yes, I made a boat anchor with some cement and then I put some in the driveway here.

DORNIN: Analysts foresee a battle of the experts. Key could be a pathologist expected to testify Laci Peterson's fetus survived past December 24. If jurors believe that, it could exonerate Scott Peterson, who was under surveillance after his wife's disappearance.

The defense may also call a witness to cast doubt on prosecution claims that the dog, Trimble (ph), picked up Laci Peterson's scent at the Berkeley marina.

(on camera): Defense attorney Mark Geragos is expected to take six to eight days to present his case. The judge has told the jury he hopes they will begin deliberations November 3.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

O'BRIEN: Thirty-one-year-old Scott Peterson, if he is convicted, could face the death penalty.

HEMMER: It's about 20 minutes now before the hour.

(WEATHER REPORT)

O'BRIEN: Still to come on AMERICAN MORNING this morning, it looks like one of the biggest names in the candy business is on the block. Andy Serwer is "Minding Your Business" for us this morning. He's going to have that.

HEMMER: Also, along the Chicago River this morning, the man who impressed Donald Trump so much he hired him. Bill Rancic from "The Apprentice" tells us how he really did learn some business lessons out of reality TV. And that's his building next to the "Sun-Times" building in downtown Chicago. Back in a moment. AMERICAN MORNING on the road in Chicago.

(COMMERCIAL BREAK)

HEMMER: We are on the move all week. In fact, we're going to change locations Monday through Friday here. Tomorrow on Tuesday, our visit takes us to Loyola University, along Chicago's famous Magnificent Mile. Among the many, yes, you see on the screen, Barak Obama, Alan Keyes, Scott Turow, the author, Ebert and Roeper, the film critics. Also the history of Chicago politics. It has been volatile for decades and the spirited campaign of 2004. We'll check in on all of that tomorrow, Tuesday, in the Windy City.

Back to Soledad now.

O'BRIEN: Bill, I look forward to that.

Well, fueled by Donald Trump's signature sayonara, "The Apprentice" now in its second season has become one of television's hottest shows. Last year you'll recall Bill Rancic's fantasy became a reality when he was the show's sole survivor. He is now a newly- minted celebrity in this town, which is his town, born and raised here.

(BEGIN VIDEOTAPE)

DONALD TRUMP, HOST, "THE APPRENTICE": Bill, you are hired.

O'BRIEN (voice over): Bill Rancic is going to the top, to the top of Chicago's skyline that is. This local Chicago boy, Donald Trump's newest apprentice, has come home.

BILL RANCIC, "THE APPRENTICE" WINNER: All right, I'm on top of it.

O'BRIEN: He'll be the supervisor-in-training of Trump's latest skyscraper project, a 90-story luxury hotel and condominium tower named what else? Trump International Hotel and Tower in Chicago.

RANCIC: I'm kind of the eyes and ears for Donald Trump here in Chicago. So it's, you know, just making sure that everything is done and conducted in the right way.

O'BRIEN: It's not like Chicago doesn't have tall buildings. It already has America's tallest, the Sears Tower, along with the Aon Building and John Hancock Center. Trump's building will be the city's fourth tallest.

Is the Donald OK with not being first?

TRUMP: I build better buildings. I usually get the best location. And, you know, that is something really that can't be duplicated.

O'BRIEN: With condominiums starting around $640,000 and a top floor penthouse going for about 16 million, this will be one of the priciest places to live in the city. Construction for the site will begin this fall when they demolish the seven-story Chicago "Sun-Times" building, a location where boats used to pull up to deliver newsprint. Now it looks like yachts may be pulling up instead.

(END VIDEOTAPE)

And we're showing you a picture now this morning of that building. That is Bill Rancic's big project ahead. He's got a new book out as well. It's called "You're Hired: How to Succeed in Business and Life From the Winner of 'The Apprentice.'"

Joining us out here in your hometown. Later, we'll chat about all of the things we need to do in this city while we're here.

RANCIC: Definitely.

O'BRIEN: But first I want to talk to you a little bit about your boss. I mean, you laughed when you heard that sound bite. I always have the best location.

RANCIC: Yes.

O'BRIEN: How's it been?

RANCIC: It's been great. I mean...

O'BRIEN: Pick one.

RANCIC: You know, it's remarkable how much time I have actually spent with Donald Trump.

O'BRIEN: Really?

RANCIC: The amount of access that I have to him. You know, I was the biggest skeptic of them all after this was over. I thought I was never going to see him again.

O'BRIEN: It was reality TV...

(CROSSTALK)

RANCIC: Well, I thought this was a show and, you know, that's going to be it. But I have -- you know, I see him, you know, several times a week. He calls me almost every day. I mean, to have Donald Trump as your mentor is pretty remarkable.

O'BRIEN: How about to have Donald Trump as your boss? Because I've got to imagine, he could be tough and testy?

RANCIC: Well, he's tough, but it's more of a learning experience for me. So I'm watching him, you know, kind of work in the zone every day. And I've been really enjoying that the most out of the whole process.

O'BRIEN: We mentioned that you've got a new book. And I guess this is... RANCIC: That's the book on tape.

O'BRIEN: ... the book on tape. Look at you prepare here. Tell me a little bit about why you decided to write a book. I mean, you've only been working really on this project for six months essentially.

RANCIC: Well, the book is more about, you know, business in general. And I've been an entrepreneurs my whole life. And I had cigars around the world. I started that 10 years ago. And I wanted to write a book, which was based on practical experience rather than theories. So many of these business books out there, they're written in theory by people who have never left the classroom.

And I'm a guy who has been out there and put my life savings on the line and had to worry, you know, about the payroll each week and didn't take a paycheck for a year. So this is a book I think that everyone can relate to, and it's not filled with business school jargon. It's more an everyday man's business book and woman's business book.

O'BRIEN: You dedicate a number of chapters to your experiences on "The Apprentice," which, of course, as we all know, was like a snake pit, the back-biting.

RANCIC: That's right. Right.

O'BRIEN: The back-stabbing, the general nastiness and meanness. What did you learn? What did you get out of that experience?

RANCIC: Well, I think the show, you know, is definitely a parallel to corporate America. There are so...

O'BRIEN: It's that bad?

RANCIC: No, no, but does some of that exist in corporate America? Yes it does. But the people who really get ahead I don't think participate in the back-stabbing and being cutthroat and all of the politics.

It came down to Kwame and myself in the end, and we were two guys who didn't back-stab, who didn't, you know, back-fight. We played the game I think with integrity and we took the high road the whole way. And I think it was, you know, very true to life. And I think people who play the corporate America game that way are the ones who are truly successful and are in it for the long haul.

O'BRIEN: One quick thing. You won a book at the end of -- a book! A car.

RANCIC: I won a car.

O'BRIEN: You're going to auction it off.

RANCIC: I'm auctioning it. I won a 2005 Chrysler convertible, and I'm auctioning it off. And as you know, I'm the spokesman for Advanta MasterCard. So people can go to Avanta.com and bid on the car. So it's a great car.

O'BRIEN: And the money goes to your charity in your dad's name.

RANCIC: A 100 percent of the money goes to charity. So Advanta.com they can go to that and bid on it.

O'BRIEN: Nice to see you, Bill Rancic. Thanks for being with us.

RANCIC: Thank you.

O'BRIEN: Bill.

HEMMER: Good to see you, too.

RANCIC: Thanks, Bill.

HEMMER: Get back to work, all right?

O'BRIEN: It's time to start, back on the job.

RANCIC: Well, everyone is my boss now that I've won. It's funny.

HEMMER: Well done. Let's get a break here. In a moment, one of the big name businesses here in Chicago is putting one of the most famous brands up for sale. Andy is back "Minding Your Business" and he explains after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. We want to get back over to the Cartan's (ph) Restaurant and check on in again with Jack and Andy.

How are you guys doing? Good morning again.

JACK CAFFERTY, CNN ANCHOR: We're warmer than you are actually.

HEMMER: It's icy.

(CROSSTALK)

CAFFERTY: In the heart of the great big city of Chicago. Andy Serwer is here "Minding Your Business." Kraft Foods is going to unload a couple of things that don't exactly fit with the macs and cheese.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes, that's right, Jack. We're tracking the price of oil. But let's talk about another very important commodity this morning, that being candy.

As Jack said, Kraft Foods is looking to sell a couple of its big name brands; that being Lifesavers and Altoids, those breath mints. And as Jack can tell you, I might use some Altoids this morning.

Anyway, Kraft is looking to sell this business for over a billion dollars. These two companies do about 300 million in sales. You know, Jack, Altoids is kind of a sleepy-nothing brand there for a while until Kraft really made this thing big. Kraft is headquartered in Northfield, Illinois, which is about 20 minutes to the north of where we sit.

CAFFERTY: Which is probably why they call it Northfield.

SERWER: Because it's in the north.

CAFFERTY: Now, there's a rumor on the street that you and I are possibly the worst two football gamblers in the entire state of Illinois this morning.

SERWER: Yes, that's right. I was 0 for 3 in my picks and overall I'm not so good.

First of all the Bears did not -- here are the picks. You can see here. Look at that. Bill Hemmer doing very well. And, Jack, hey, I've got some stocks you might want to buy.

CAFFERTY: I'm sure you do.

SERWER: Now all right let's talk about my three games. First of all, yes, the Patriots continue to win. I didn't pick that game. Also the Lions did not beat the Packers. And here, the Redskins beat the Bears.

CAFFERTY: That's the first thing they've won all year.

SERWER: You know, I was trying to go for the Bears, and the Bears let me down. I come to this town and try to root for this team and got nothing out of it. My home team, the Redskins...

CAFFERTY: But up until this point, you rooted for the Redskins, and they've lost every game, too, right?

SERWER: I keep raising my flag of convenience, and it's not working out very well.

CAFFERTY: All right, thanks, Andy.

SERWER: You're welcome.

CAFFERTY: I love this town. I've been in I think every big city in America, and Chicago is one of my favorites. Soldier Field, Lincoln Park, Wrigley Field, Kaminski (ph), the Stockyards, the Blackhawks, the theater, the jazz, the blues, the comedy, the best barbecue around. But mostly it's the people. These are just good folks out here. There is a Midwestern something or other that crept into this third biggest city in the United States, and it gives it kind of a unique charm.

So what comes to mind when you hear the name Chicago? That's the e-mail "Question of the Day."

David writes from Ames, Iowa, which is just down the road apiece: "Who can think of Chicago without thinking of the Chicago Blues Festival? If you only go to one musical festival in your lifetime, you've got to make it this one."

Bill from here Chicago: "Welcome to the home of Carl Sandburg, Frank Lloyd Wright and the University of Chicago, where there have been a record 69 Nobel Prize winners. You're going to love our city."

Doug in Bloomfield, New Jersey, writes: "The lyrics of 'Chicago' by Crosby, Stills and Nash from 1970 come to mind. Don't ask Jack to help you, because he'll turn the other ear. Won't you please come to Chicago or else join the other side. We can change the world."

And finally James in Glenview, Illinois: "I'm biased as I live in a Chicago suburb. But simply put, it's a city that works."

Amen to that. AM@CNN.com. We'll be back with more of this a bit later.

Let's go back to Soledad and Bill.

HEMMER: How about Harry Kerry (ph), Sears Tower?

O'BRIEN: Oh, yes, there's lots to love.

HEMMER: (UNINTELLIGIBLE) building?

O'BRIEN: Absolutely.

HEMMER: Two more hours here.

O'BRIEN: I want to know the best barbecue place. Well, I'm feeling like a little barbecue maybe a little dinner tonight, some barbecue?

HEMMER: I'd love that.

O'BRIEN: You'll work on that? All right, get on that for us, Jack.

Still to come this morning, John Kerry says that if elected Bush -- rather, if President Bush is re-elected, the incumbent has a January surprise in store for the voters. We're going to get a look at what he's talking about as AMERICAN MORNING rolls on from Chicago. Stay with us. We're back in just a moment.

(COMMERCIAL BREAK)

HEMMER: In a moment, there's a flu shot shortage here in the U.S. Now some states are taking action to make sure the right people get the right vaccine. We're paging the good doctor on this Monday morning to find out what's being done. Back in a moment live in Chicago on this AMERICAN MORNING.

(COMMERCIAL BREAK)

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