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CNN Live At Daybreak

Big Arson Probe in Maryland Gets Even Bigger; Big Changes for Intelligence Community

Aired December 08, 2004 - 06:00   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.


CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, what sparked these flames? The big arson probe in Maryland gets even bigger.
Also, it is not the kind of campaigning President Bush wants to do, but that's not stopping his image from popping up overseas.

Is it near that time already? We'll tell you how to make your 2004 tax filing less taxing.

And holy sandwich! You have not seen the last of this grilled cheese.

It is Wednesday, December 8.

You are watching DAYBREAK.

And good morning to you.

Thank you for waking up with us.

I'm Carol Costello live from the Time Warner Center in New York.

Let's get right to the headlines now, shall we?

Congress moves forward on intelligence reform. The House has passed a sweeping reform bill. The Senate is expected to approve it today. The voting ends a two week deadlock.

Asked, answered and angry -- U.S. troops take issue with how the war in Iraq is being fought, many expressing their concerns in Kuwait this morning during a Q&A session with Defense Secretary Donald Rumsfeld.

They've worked on it for more than a year. Now the wraps come off. Today, the British and Irish prime ministers unveil a peace plan for Northern Ireland. But a dispute over disarming the IRA could threaten it.

Desperate for aid, in the northern Philippines, U.S. Navy helicopters are rushing relief to villages ravaged by storms. Recent storms have left hundreds dead. The survivors are short on water and medicine.

Rob Marciano in for Chad this morning -- good morning, Rob.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Big time changes for the intelligence community, with the Senate expected to sign off on a measure today that will dramatically change how the nation's 15 spy agencies do business. An identical bill cleared the House last night, with a vote of 336-75. It includes creating a post for a national intelligence director, tightening airport baggage screening procedures, boosting the ranks of Border Patrol agents and toughening drivers license stands. The bill could be on the president's desk as early as today, but not every Republican is behind it.

CNN's Kareen Wynter explains.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Three hundred thirty-six, the nays are 75. The conference report is adopted.

KAREEN WYNTER, CNN CORRESPONDENT (voice-over): The intelligence reforms President Bush pushed are on their way to his desk. The House of Representatives voted in favor of the amended 9/11 bill that swayed some critics this week.

REP. DUNCAN HUNTER (R), CALIFORNIA: I'm supporting this bill. I'm going to vote for this bill.

WYNTER: House Armed Services Chairman Duncan Hunter, who initially opposed the overhaul legislation, paved the way for a vote on the floor. Provisions in the revised bill now ensure the new director of national intelligence would not interfere with the military chain of command and its access to timely U.S. spy satellite data.

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: We've gotten to exactly where we wanted to be, which is on the verge of adopting legislation that will reform America's intelligence.

WYNTER: The bill cleared the House, but not without division in the GOP. Republican Congressman James Sensenbrenner shot down the reform, citing security concerns over illegal immigrants and their access to drivers licenses.

REP. JAMES SENSENBRENNER (R), WISCONSIN: This may be the most divided the Republican House Conference is on any major Bush initiative in the last four years.

WYNTER: The bill does include some immigration changes, such as stiffer criminal penalties on alien smuggling. But some House conservatives argue the bill is still incomplete.

(on camera): It may be on the back burner for now, but President Bush says immigration reform will be a major issue next year, when the new Congress reconvenes.

Kareen Wynter, CNN, Washington.

(END VIDEO TAPE)

COSTELLO: The intelligence reform measure isn't the only unfinished business on Capitol Hill. The president has until midnight to sign a $388 billion congressional spending package. That's when a temporary stopgap measure expires. The spending plan encompasses every federal department except the Pentagon and homeland security. It includes $59.7 billion for education, $59 billion for transportation and $19.5 billion for foreign aid.

Defense Secretary Donald Rumsfeld came to answer questions. Instead, he left with an earful. Rumsfeld held a town hall style meeting this morning with U.S. troops in Kuwait. These men and women are getting ready to leave for Iraq and some voiced their concern about how the war there is being fought.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Our soldiers have been fighting in Iraq for coming up on three years. A lot of us are getting ready to move north relatively soon. Our vehicles are not armored. We're digging pieces of rusted scrap metal and compromised ballistic glass that's already been shot up, dropped, busted, picking the best out of this scrap to put on our vehicles to take into combat. We do not have proper armament vehicles to carry with us north.

RUMSFELD: I talked to the general coming out here about the pace at which the vehicles are being armored. They have been brought from all over the world, wherever they're not needed, to a place here where they are needed. I'm told that they're being, the Army is -- I think it's something like 400 a month are being done. And it's essentially a matter of physics. It isn't a matter of money.

(END VIDEO CLIP)

COSTELLO: Rumsfeld goes on to say it's a matter of production and the capability of doing it. The dialogue originally started as a pep talk.

In other stories across America this Wednesday, the Pentagon is criticizing top brass at the U.S. Air Force Academy. Inspectors have wrapped up a probe into a sexual abuse scandal involving cadets and they found that commanders didn't take the problem seriously enough over the last decade.

Four or five more witnesses will testify today in the penalty phase of the Scott Peterson trial. Family members and friends have been relaying personal anecdotes and memories of Peterson and his wife. At one point, Laci Peterson's mother broke into tears. Peterson is facing either life in prison without parole or the death penalty. The jury is expected to begin deliberations tomorrow.

LaSalle Bank officials now say at least part of a world class art collection was destroyed this week when the corporate headquarters caught on fire in Chicago. Part of the company's multi-million dollar rare photography collection was housed on the 29th floor, which is where the fire burned for hours.

Now to another fire and a major arson investigation in Charles County, Maryland. Twelve homes were destroyed and 14 others damaged in the Hunters Brook subdivision. It's located near an ecologically sensitive bog.

Live from Baltimore, Maryland, Faron Taylor, the deputy state fire marshal.

Good morning.

FARON TAYLOR, MARYLAND DEPUTY STATE FIRE MARSHAL: Good morning.

COSTELLO: How many investigators are now involved in this investigation?

TAYLOR: As of yesterday afternoon, we have been able to assemble over 100 investigators and specialists to help us determine the origin and cause of each and every one of these home fires.

COSTELLO: Have you found any new clues as to what was used to start the fires or where exactly they started in which house?

TAYLOR: Thus far, we've been able to determine that seven of the 26 homes, the fires in them were the result of arson. Regarding the methods that were used, however, investigators aren't going to be releasing that information.

COSTELLO: So, but you do know what was used?

TAYLOR: We know specifically how, how it was done.

COSTELLO: I know that arsonists often leave a calling card behind.

Any calling card left behind?

TAYLOR: Thus far, no evidence has been found indicating who or who may be responsible for these fires.

COSTELLO: I know that eco-terrorists, you know, are suspected in this. But many of those homes that caught on fire were owned by African-Americans. In the "Washington Post" this morning, they brought up the issue of possible hate crimes.

Can you expound on that?

TAYLOR: We know that in the investigation of the crime of arson, there are seven generally accepted motivations, seven different kinds. And at this stage of the investigation, we have not ruled out any of those possible seven motives.

COSTELLO: Do you find it strange, though, that there was no message left behind or, you know, if it was eco-terrorists, certainly there were no tree sitters around before these fires broke out.

Is that strange, in your eyes?

TAYLOR: We have found over the years that in doing fire investigations, each building, each fire, each investigation truly is unique unto itself. So to classify anything as strange or unusual truly wouldn't be representative. There are different nuances to every investigation that we deal with.

COSTELLO: I know that a blue van was spotted in the wee hours on the morning of the fires.

Any word on that blue van?

TAYLOR: This far, investigators are still seeking to find the operator of that vehicle. And hopefully they might be able, once found, they may be able to provide us some information or of any suspicious activity that they may have seen in the area.

COSTELLO: Do you have any better description of that van?

TAYLOR: Unfortunately at this time we just have a blue van. Hopefully some of our listeners may have, in the area, may have seen something and they can contact us so that we can hopefully get a better description.

COSTELLO: How difficult will this be for you to solve?

TAYLOR: It's certainly problematic in that we have so many dwellings to examine. But our system hopefully will be able to get us a lot of information very soon and we'll be able to make even greater progress as the days go on.

COSTELLO: Oh, we hope so.

Faron Taylor from the Maryland State Fire Marshal's office, thank you for joining DAYBREAK this morning.

Can't wait to see the next incredible animated hit movie from Pixar? Well, you're going to have to. We will explain why at 15 minutes past.

At 18 minutes past, politics and the media, not here, but in the Ukraine. We'll tell you how spin works there and how America is involved.

And a New York politician stakes his next claim. We'll explain through his blog at 33 minutes past.

But first, here's a look at what else is making news this morning.

(COMMERCIAL BREAK)

COSTELLO: Time now for a little "Business Buzz."

We'll have to wait a little longer to see Paul Newman take the wheel in Disney/Pixar's new animated film, "Cars." Yes, he is a character who gets his kicks on Route 66.

Carrie Lee joins us live from the Nasdaq market site with more on this -- good morning, Carrie.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

It's not going to be a speedy race to the theater for "Cars." This is the final film in the Disney/Pixar relationship. The studios are postponing their release of the animated film until June of 2006. The film was expected to come out in November 2005.

Pixar's animated films "Toy Story," "A Bug's Life," "Monsters, Inc.," "Finding Nemo" have had worldwide box office totals of $2.6 billion. And smash office hit "The Incredibles" is adding to that, raking in $226 million after just five weeks in theaters.

Now, Disney's standing partnership with Pixar entitles it to half of the profit plus a distribution fee, not to mention Disney also cashes in on DVD and video releases of the films.

So why the postponement? Well, insiders say the delay buys Pixar time to find a new distributor for its films. Warner Brothers Studio, by the way, owned by the parent of CNN, is likely a contender. We'll see what happens -- Carol.

COSTELLO: Oh. We'll see.

Thank you.

LEE: OK.

COSTELLO: Carrie Lee live from the NASDAQ market site.

Your news, money, weather and sports.

It's 6:16 Eastern.

Here's what's all new this morning.

Major changes to the nation's intelligence system are a step closer to reality. The House passed a compromise version of the reform bill after a lot of political wrangling. Senate approval is expected later today.

The Pentagon is sending more Marines into Saudi Arabia. An anti- terrorism team is moving into Jeddah after Monday's consulate attack. A spokesman says the teams typically include 50 Marines.

In money news, IBM has sold the majority of its personal computer business to Lenovo, China's biggest computer maker. Lenovo will take over manufacturing and development in a deal worth nearly $2 billion. IBM will retain a small stake in the PC business.

In culture, the legendary La Scala Opera House has reopened in Milan after an $80 million renovation. Oh, how beautiful is that? The 226-year-old venue has hosted such greats as singer Maria Callas and composers Verdi and Puccini.

In sports, the Dallas Mavericks beat the short-handed Minnesota Timberwolves 97-87, even though Wolves star Kevin Garnett had 32 points. The Wolves were without starting guard Latrell Sprewell, by the way, because Sprewell has been suspended for a game after shouting an obscenity at a female fan during a game last week. And it's so foul, Rob, we cannot repeat it on the air because, you know, this is family hour.

MARCIANO: His mother must be so proud.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Constitutional changes are being made in Ukraine as a result of their failed election. Within the hour, Ukraine's parliament also agreed to change the makeup of the central election commission. That was the main point of contention demanded by the opposition party before the December 26 re-vote takes place. The compromise also includes changes in absentee voting rules and deals with interference by government officials.

The new laws also deal with media obligations for fair reporting on the candidates and the election, and we were intrigued by this.

For more on how the political process is playing out in Kiev, we turn to Moscow bureau chief Jill Dougherty -- good morning.

JILL DOUGHERTY, CNN CORRESPONDENT: Good morning, Carol.

COSTELLO: You know, we were struck by some of the campaign ads that were out in the Ukraine and we were hoping that you could clarify some for us, because a lot of it involves the United States.

So let's put one up for people to see right now. This one...

DOUGHERTY: Some of it actually did.

COSTELLO: Yes. We're going to put one of those ads up right now and I'll describe it for you. It's President Bush shouting something in front of an American flag.

DOUGHERTY: That was the one, Carol, that was supposed to show that George Bush is supporting Yushchenko. And that was the claim all along, that essentially Yushchenko, who was, who is the opposition candidate, was a toady for the United States, and essentially behind everything the United States was trying to manipulate. So you saw a lot of that not only in this poster, you saw it on TV ads. And certainly this was kind of the subtext. Don't forget, also, that Mr. Yushchenko has an American wife and that played into this, too. Not a whole lot, but it was there.

COSTELLO: Well, we're looking at another one now with the candidate dressed up like Uncle Sam. DOUGHERTY: Right. Well, that's the one -- the candidate happens to be Viktor Yushchenko, the opposition candidate. And he's saying "Bosnia, Herzegovina, Kosovo, Iraq -- you're next," a number of places where, of course, the U.S. has used some military force. And that was the other fear, that it's like a house of cards, that if the United States has had its hands on other countries, it's after the Ukraine, too. Another anti-American poster, obviously.

COSTELLO: Well, educate us, Jill. I mean is the United States really involved in Ukraine? Has President Bush ever met with that candidate?

DOUGHERTY: Well, the United States supported, certainly, proper elections. That was one thing. And then you'd have to say that Yushchenko fits the profile of the type of candidate that the United States would like. After all, he's Western leaning. He wants to get more integrated with Europe, the World Trade Organization and ultimately NATO.

But he doesn't completely fit the profile, either, because he was against having troops in Iraq, for example, Ukrainian troops in Iraq.

But you'd have to say that the United States, not deliberately and overtly support him, certainly made it clear that he was the type of candidate they liked. And then when all the corruption came up in the election campaign, it was quite obvious that the United States, as Colin Powell said, couldn't abide and couldn't accept the results of those elections that they thought were skewed.

COSTELLO: Fascinating.

Jill Dougherty live from Moscow.

Thank you for joining DAYBREAK this morning.

He'll be coming around before you know it. Not Santa, the tax man. What you can do to keep him off your back. We'll tell you later this hour.

And it looks like this cheese sandwich won't be melting away any time soon. Yes, it's going on tour.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Whether you call it silly or blasphemous, the Virgin Mary grilled cheese sandwich is here to stay. The sandwich was bought by an Internet gambling company on eBay for $28,000. It was moved from Hollywood, Florida to Las Vegas in a custom made case and a slick white Cadillac.

Jim Defede of the "Miami Herald" rode along with the holy grill as it made its way across country.

Good morning. JIM DEFEDE, "MIAMI HERALD": Good morning, Carol.

COSTELLO: Why?

DEFEDE: Well, why not, really? I just thought it would be interesting to sort of take the Virgin Mary grilled cheese sandwich on a cross country ride and stop along the way and show it to people and get their reaction. The alternative was that the owner was going to mail it and I just thought this was far too valuable a cargo to trust to the post office.

COSTELLO: So what did you do? Did you just stop like at a restaurant and bring in the grilled cheese sandwich and show them? Did you pick out specific places?

DEFEDE: Yes, I went to a number of places. Waffle houses were very popular for the Virgin Mary grilled cheese sandwich. But also I stopped in New Orleans and casinos in Biloxi. And I took it up to the ranch in Crawford and took it to strip clubs in Austin and even a quick jaunt down to Juarez, Mexico.

COSTELLO: Unbelievable.

DEFEDE: So I tried to give her the full -- I tried to give her the full panoramic view of the southern U.S.

COSTELLO: So, let's show a picture that you took of a couple renewing their marriage vows in Vegas with the cheese sandwich as witness. Oh, this is the Crawford, Texas. Those were the hunters. This is the people getting married in Las Vegas, and you can see the grilled cheese sandwich there in its little case. It just seems so silly, but according to your article, some people were quite touched by this.

DEFEDE: Well, I think it's true. I think that, I mean, there were -- most people were skeptical when I talked to them about it. Some people believed in it. But nobody, whether they were skeptical or not, would ever completely rule it out. I would ask people, do you believe it's the Virgin Mary? Like I said, a couple people would, some would say they didn't really know, but nobody was quite really ready to say no, absolutely not.

And it's in that little margin of error. It's in that little margin of uncertainty is that, I think, we find faith. And that's what I found fascinating about this. I took it to a Laundromat, for instance, in Tucson. And while I was doing my laundry -- because I had been on the road for a week and was out of clean underwear -- and while I'm in this Laundromat, I happened to show it to some of the women there and they got all excited. And one woman came over to me and touched it and made the sign of the cross and touched it again and then started to say a little prayer. And I asked her why or what was she praying for? And she talked about how her son was in trouble and she hoped that by seeing this image, that it would bring her luck.

And, you know, if it brought her a little bit of comfort, a little bit of piece of mind, if it gave her a little bit of a spiritual feeling then, you know, who am I to joke, you know? Who...

COSTELLO: Well, you know, and you say in your article about this woman, she whispers in your ear after seeing this, "God bless you for bringing this here."

DEFEDE: Yes, that one sort of caught me off guard, too. I mean it's -- the range of emotions that I saw were quite amazing. I think, one of the things that I thought was most interesting was, as I said, I took it to a strip club in Austin. And the next morning I took it to the supreme court building, the supreme court -- the Texas Supreme Court in Austin, as well. And the reaction among the dancers at the strip club and the reaction among the workers at the Supreme Court Center, including a couple of justices of the Texas Supreme Court, were almost identical, the only difference being nobody at the Texas Supreme Court took off their clothes in front of me.

COSTELLO: At least we hope not.

Jim Defede from the "Miami Herald," thank you for joining DAYBREAK this morning.

DEFEDE: Thank you, Carol.

COSTELLO: You remember the scream and the fizzled out campaign. But can Howard Dean bounce back? We'll take a look into his future this hour.

And what you see is what you pay. And G.M. wants you to see red.

(COMMERCIAL BREAK)

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 December 8, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, what sparked these flames? The big arson probe in Maryland gets even bigger.
Also, it is not the kind of campaigning President Bush wants to do, but that's not stopping his image from popping up overseas.

Is it near that time already? We'll tell you how to make your 2004 tax filing less taxing.

And holy sandwich! You have not seen the last of this grilled cheese.

It is Wednesday, December 8.

You are watching DAYBREAK.

And good morning to you.

Thank you for waking up with us.

I'm Carol Costello live from the Time Warner Center in New York.

Let's get right to the headlines now, shall we?

Congress moves forward on intelligence reform. The House has passed a sweeping reform bill. The Senate is expected to approve it today. The voting ends a two week deadlock.

Asked, answered and angry -- U.S. troops take issue with how the war in Iraq is being fought, many expressing their concerns in Kuwait this morning during a Q&A session with Defense Secretary Donald Rumsfeld.

They've worked on it for more than a year. Now the wraps come off. Today, the British and Irish prime ministers unveil a peace plan for Northern Ireland. But a dispute over disarming the IRA could threaten it.

Desperate for aid, in the northern Philippines, U.S. Navy helicopters are rushing relief to villages ravaged by storms. Recent storms have left hundreds dead. The survivors are short on water and medicine.

Rob Marciano in for Chad this morning -- good morning, Rob.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Big time changes for the intelligence community, with the Senate expected to sign off on a measure today that will dramatically change how the nation's 15 spy agencies do business. An identical bill cleared the House last night, with a vote of 336-75. It includes creating a post for a national intelligence director, tightening airport baggage screening procedures, boosting the ranks of Border Patrol agents and toughening drivers license stands. The bill could be on the president's desk as early as today, but not every Republican is behind it.

CNN's Kareen Wynter explains.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Three hundred thirty-six, the nays are 75. The conference report is adopted.

KAREEN WYNTER, CNN CORRESPONDENT (voice-over): The intelligence reforms President Bush pushed are on their way to his desk. The House of Representatives voted in favor of the amended 9/11 bill that swayed some critics this week.

REP. DUNCAN HUNTER (R), CALIFORNIA: I'm supporting this bill. I'm going to vote for this bill.

WYNTER: House Armed Services Chairman Duncan Hunter, who initially opposed the overhaul legislation, paved the way for a vote on the floor. Provisions in the revised bill now ensure the new director of national intelligence would not interfere with the military chain of command and its access to timely U.S. spy satellite data.

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: We've gotten to exactly where we wanted to be, which is on the verge of adopting legislation that will reform America's intelligence.

WYNTER: The bill cleared the House, but not without division in the GOP. Republican Congressman James Sensenbrenner shot down the reform, citing security concerns over illegal immigrants and their access to drivers licenses.

REP. JAMES SENSENBRENNER (R), WISCONSIN: This may be the most divided the Republican House Conference is on any major Bush initiative in the last four years.

WYNTER: The bill does include some immigration changes, such as stiffer criminal penalties on alien smuggling. But some House conservatives argue the bill is still incomplete.

(on camera): It may be on the back burner for now, but President Bush says immigration reform will be a major issue next year, when the new Congress reconvenes.

Kareen Wynter, CNN, Washington.

(END VIDEO TAPE)

COSTELLO: The intelligence reform measure isn't the only unfinished business on Capitol Hill. The president has until midnight to sign a $388 billion congressional spending package. That's when a temporary stopgap measure expires. The spending plan encompasses every federal department except the Pentagon and homeland security. It includes $59.7 billion for education, $59 billion for transportation and $19.5 billion for foreign aid.

Defense Secretary Donald Rumsfeld came to answer questions. Instead, he left with an earful. Rumsfeld held a town hall style meeting this morning with U.S. troops in Kuwait. These men and women are getting ready to leave for Iraq and some voiced their concern about how the war there is being fought.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Our soldiers have been fighting in Iraq for coming up on three years. A lot of us are getting ready to move north relatively soon. Our vehicles are not armored. We're digging pieces of rusted scrap metal and compromised ballistic glass that's already been shot up, dropped, busted, picking the best out of this scrap to put on our vehicles to take into combat. We do not have proper armament vehicles to carry with us north.

RUMSFELD: I talked to the general coming out here about the pace at which the vehicles are being armored. They have been brought from all over the world, wherever they're not needed, to a place here where they are needed. I'm told that they're being, the Army is -- I think it's something like 400 a month are being done. And it's essentially a matter of physics. It isn't a matter of money.

(END VIDEO CLIP)

COSTELLO: Rumsfeld goes on to say it's a matter of production and the capability of doing it. The dialogue originally started as a pep talk.

In other stories across America this Wednesday, the Pentagon is criticizing top brass at the U.S. Air Force Academy. Inspectors have wrapped up a probe into a sexual abuse scandal involving cadets and they found that commanders didn't take the problem seriously enough over the last decade.

Four or five more witnesses will testify today in the penalty phase of the Scott Peterson trial. Family members and friends have been relaying personal anecdotes and memories of Peterson and his wife. At one point, Laci Peterson's mother broke into tears. Peterson is facing either life in prison without parole or the death penalty. The jury is expected to begin deliberations tomorrow.

LaSalle Bank officials now say at least part of a world class art collection was destroyed this week when the corporate headquarters caught on fire in Chicago. Part of the company's multi-million dollar rare photography collection was housed on the 29th floor, which is where the fire burned for hours.

Now to another fire and a major arson investigation in Charles County, Maryland. Twelve homes were destroyed and 14 others damaged in the Hunters Brook subdivision. It's located near an ecologically sensitive bog.

Live from Baltimore, Maryland, Faron Taylor, the deputy state fire marshal.

Good morning.

FARON TAYLOR, MARYLAND DEPUTY STATE FIRE MARSHAL: Good morning.

COSTELLO: How many investigators are now involved in this investigation?

TAYLOR: As of yesterday afternoon, we have been able to assemble over 100 investigators and specialists to help us determine the origin and cause of each and every one of these home fires.

COSTELLO: Have you found any new clues as to what was used to start the fires or where exactly they started in which house?

TAYLOR: Thus far, we've been able to determine that seven of the 26 homes, the fires in them were the result of arson. Regarding the methods that were used, however, investigators aren't going to be releasing that information.

COSTELLO: So, but you do know what was used?

TAYLOR: We know specifically how, how it was done.

COSTELLO: I know that arsonists often leave a calling card behind.

Any calling card left behind?

TAYLOR: Thus far, no evidence has been found indicating who or who may be responsible for these fires.

COSTELLO: I know that eco-terrorists, you know, are suspected in this. But many of those homes that caught on fire were owned by African-Americans. In the "Washington Post" this morning, they brought up the issue of possible hate crimes.

Can you expound on that?

TAYLOR: We know that in the investigation of the crime of arson, there are seven generally accepted motivations, seven different kinds. And at this stage of the investigation, we have not ruled out any of those possible seven motives.

COSTELLO: Do you find it strange, though, that there was no message left behind or, you know, if it was eco-terrorists, certainly there were no tree sitters around before these fires broke out.

Is that strange, in your eyes?

TAYLOR: We have found over the years that in doing fire investigations, each building, each fire, each investigation truly is unique unto itself. So to classify anything as strange or unusual truly wouldn't be representative. There are different nuances to every investigation that we deal with.

COSTELLO: I know that a blue van was spotted in the wee hours on the morning of the fires.

Any word on that blue van?

TAYLOR: This far, investigators are still seeking to find the operator of that vehicle. And hopefully they might be able, once found, they may be able to provide us some information or of any suspicious activity that they may have seen in the area.

COSTELLO: Do you have any better description of that van?

TAYLOR: Unfortunately at this time we just have a blue van. Hopefully some of our listeners may have, in the area, may have seen something and they can contact us so that we can hopefully get a better description.

COSTELLO: How difficult will this be for you to solve?

TAYLOR: It's certainly problematic in that we have so many dwellings to examine. But our system hopefully will be able to get us a lot of information very soon and we'll be able to make even greater progress as the days go on.

COSTELLO: Oh, we hope so.

Faron Taylor from the Maryland State Fire Marshal's office, thank you for joining DAYBREAK this morning.

Can't wait to see the next incredible animated hit movie from Pixar? Well, you're going to have to. We will explain why at 15 minutes past.

At 18 minutes past, politics and the media, not here, but in the Ukraine. We'll tell you how spin works there and how America is involved.

And a New York politician stakes his next claim. We'll explain through his blog at 33 minutes past.

But first, here's a look at what else is making news this morning.

(COMMERCIAL BREAK)

COSTELLO: Time now for a little "Business Buzz."

We'll have to wait a little longer to see Paul Newman take the wheel in Disney/Pixar's new animated film, "Cars." Yes, he is a character who gets his kicks on Route 66.

Carrie Lee joins us live from the Nasdaq market site with more on this -- good morning, Carrie.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

It's not going to be a speedy race to the theater for "Cars." This is the final film in the Disney/Pixar relationship. The studios are postponing their release of the animated film until June of 2006. The film was expected to come out in November 2005.

Pixar's animated films "Toy Story," "A Bug's Life," "Monsters, Inc.," "Finding Nemo" have had worldwide box office totals of $2.6 billion. And smash office hit "The Incredibles" is adding to that, raking in $226 million after just five weeks in theaters.

Now, Disney's standing partnership with Pixar entitles it to half of the profit plus a distribution fee, not to mention Disney also cashes in on DVD and video releases of the films.

So why the postponement? Well, insiders say the delay buys Pixar time to find a new distributor for its films. Warner Brothers Studio, by the way, owned by the parent of CNN, is likely a contender. We'll see what happens -- Carol.

COSTELLO: Oh. We'll see.

Thank you.

LEE: OK.

COSTELLO: Carrie Lee live from the NASDAQ market site.

Your news, money, weather and sports.

It's 6:16 Eastern.

Here's what's all new this morning.

Major changes to the nation's intelligence system are a step closer to reality. The House passed a compromise version of the reform bill after a lot of political wrangling. Senate approval is expected later today.

The Pentagon is sending more Marines into Saudi Arabia. An anti- terrorism team is moving into Jeddah after Monday's consulate attack. A spokesman says the teams typically include 50 Marines.

In money news, IBM has sold the majority of its personal computer business to Lenovo, China's biggest computer maker. Lenovo will take over manufacturing and development in a deal worth nearly $2 billion. IBM will retain a small stake in the PC business.

In culture, the legendary La Scala Opera House has reopened in Milan after an $80 million renovation. Oh, how beautiful is that? The 226-year-old venue has hosted such greats as singer Maria Callas and composers Verdi and Puccini.

In sports, the Dallas Mavericks beat the short-handed Minnesota Timberwolves 97-87, even though Wolves star Kevin Garnett had 32 points. The Wolves were without starting guard Latrell Sprewell, by the way, because Sprewell has been suspended for a game after shouting an obscenity at a female fan during a game last week. And it's so foul, Rob, we cannot repeat it on the air because, you know, this is family hour.

MARCIANO: His mother must be so proud.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Constitutional changes are being made in Ukraine as a result of their failed election. Within the hour, Ukraine's parliament also agreed to change the makeup of the central election commission. That was the main point of contention demanded by the opposition party before the December 26 re-vote takes place. The compromise also includes changes in absentee voting rules and deals with interference by government officials.

The new laws also deal with media obligations for fair reporting on the candidates and the election, and we were intrigued by this.

For more on how the political process is playing out in Kiev, we turn to Moscow bureau chief Jill Dougherty -- good morning.

JILL DOUGHERTY, CNN CORRESPONDENT: Good morning, Carol.

COSTELLO: You know, we were struck by some of the campaign ads that were out in the Ukraine and we were hoping that you could clarify some for us, because a lot of it involves the United States.

So let's put one up for people to see right now. This one...

DOUGHERTY: Some of it actually did.

COSTELLO: Yes. We're going to put one of those ads up right now and I'll describe it for you. It's President Bush shouting something in front of an American flag.

DOUGHERTY: That was the one, Carol, that was supposed to show that George Bush is supporting Yushchenko. And that was the claim all along, that essentially Yushchenko, who was, who is the opposition candidate, was a toady for the United States, and essentially behind everything the United States was trying to manipulate. So you saw a lot of that not only in this poster, you saw it on TV ads. And certainly this was kind of the subtext. Don't forget, also, that Mr. Yushchenko has an American wife and that played into this, too. Not a whole lot, but it was there.

COSTELLO: Well, we're looking at another one now with the candidate dressed up like Uncle Sam. DOUGHERTY: Right. Well, that's the one -- the candidate happens to be Viktor Yushchenko, the opposition candidate. And he's saying "Bosnia, Herzegovina, Kosovo, Iraq -- you're next," a number of places where, of course, the U.S. has used some military force. And that was the other fear, that it's like a house of cards, that if the United States has had its hands on other countries, it's after the Ukraine, too. Another anti-American poster, obviously.

COSTELLO: Well, educate us, Jill. I mean is the United States really involved in Ukraine? Has President Bush ever met with that candidate?

DOUGHERTY: Well, the United States supported, certainly, proper elections. That was one thing. And then you'd have to say that Yushchenko fits the profile of the type of candidate that the United States would like. After all, he's Western leaning. He wants to get more integrated with Europe, the World Trade Organization and ultimately NATO.

But he doesn't completely fit the profile, either, because he was against having troops in Iraq, for example, Ukrainian troops in Iraq.

But you'd have to say that the United States, not deliberately and overtly support him, certainly made it clear that he was the type of candidate they liked. And then when all the corruption came up in the election campaign, it was quite obvious that the United States, as Colin Powell said, couldn't abide and couldn't accept the results of those elections that they thought were skewed.

COSTELLO: Fascinating.

Jill Dougherty live from Moscow.

Thank you for joining DAYBREAK this morning.

He'll be coming around before you know it. Not Santa, the tax man. What you can do to keep him off your back. We'll tell you later this hour.

And it looks like this cheese sandwich won't be melting away any time soon. Yes, it's going on tour.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Whether you call it silly or blasphemous, the Virgin Mary grilled cheese sandwich is here to stay. The sandwich was bought by an Internet gambling company on eBay for $28,000. It was moved from Hollywood, Florida to Las Vegas in a custom made case and a slick white Cadillac.

Jim Defede of the "Miami Herald" rode along with the holy grill as it made its way across country.

Good morning. JIM DEFEDE, "MIAMI HERALD": Good morning, Carol.

COSTELLO: Why?

DEFEDE: Well, why not, really? I just thought it would be interesting to sort of take the Virgin Mary grilled cheese sandwich on a cross country ride and stop along the way and show it to people and get their reaction. The alternative was that the owner was going to mail it and I just thought this was far too valuable a cargo to trust to the post office.

COSTELLO: So what did you do? Did you just stop like at a restaurant and bring in the grilled cheese sandwich and show them? Did you pick out specific places?

DEFEDE: Yes, I went to a number of places. Waffle houses were very popular for the Virgin Mary grilled cheese sandwich. But also I stopped in New Orleans and casinos in Biloxi. And I took it up to the ranch in Crawford and took it to strip clubs in Austin and even a quick jaunt down to Juarez, Mexico.

COSTELLO: Unbelievable.

DEFEDE: So I tried to give her the full -- I tried to give her the full panoramic view of the southern U.S.

COSTELLO: So, let's show a picture that you took of a couple renewing their marriage vows in Vegas with the cheese sandwich as witness. Oh, this is the Crawford, Texas. Those were the hunters. This is the people getting married in Las Vegas, and you can see the grilled cheese sandwich there in its little case. It just seems so silly, but according to your article, some people were quite touched by this.

DEFEDE: Well, I think it's true. I think that, I mean, there were -- most people were skeptical when I talked to them about it. Some people believed in it. But nobody, whether they were skeptical or not, would ever completely rule it out. I would ask people, do you believe it's the Virgin Mary? Like I said, a couple people would, some would say they didn't really know, but nobody was quite really ready to say no, absolutely not.

And it's in that little margin of error. It's in that little margin of uncertainty is that, I think, we find faith. And that's what I found fascinating about this. I took it to a Laundromat, for instance, in Tucson. And while I was doing my laundry -- because I had been on the road for a week and was out of clean underwear -- and while I'm in this Laundromat, I happened to show it to some of the women there and they got all excited. And one woman came over to me and touched it and made the sign of the cross and touched it again and then started to say a little prayer. And I asked her why or what was she praying for? And she talked about how her son was in trouble and she hoped that by seeing this image, that it would bring her luck.

And, you know, if it brought her a little bit of comfort, a little bit of piece of mind, if it gave her a little bit of a spiritual feeling then, you know, who am I to joke, you know? Who...

COSTELLO: Well, you know, and you say in your article about this woman, she whispers in your ear after seeing this, "God bless you for bringing this here."

DEFEDE: Yes, that one sort of caught me off guard, too. I mean it's -- the range of emotions that I saw were quite amazing. I think, one of the things that I thought was most interesting was, as I said, I took it to a strip club in Austin. And the next morning I took it to the supreme court building, the supreme court -- the Texas Supreme Court in Austin, as well. And the reaction among the dancers at the strip club and the reaction among the workers at the Supreme Court Center, including a couple of justices of the Texas Supreme Court, were almost identical, the only difference being nobody at the Texas Supreme Court took off their clothes in front of me.

COSTELLO: At least we hope not.

Jim Defede from the "Miami Herald," thank you for joining DAYBREAK this morning.

DEFEDE: Thank you, Carol.

COSTELLO: You remember the scream and the fizzled out campaign. But can Howard Dean bounce back? We'll take a look into his future this hour.

And what you see is what you pay. And G.M. wants you to see red.

(COMMERCIAL BREAK)

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