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CNN Live At Daybreak

Will Tom DeLay Finally Go Before Ethics Committee?

Aired April 21, 2005 - 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.


KELLY WALLACE, CNN CORRESPONDENT: The deadlock over an ethics investigation into the House majority leader. Will Tom DeLay finally go before the Ethics Committee? A live report from Washington coming up.
Plus, a US Airways-America West merger? What does it mean to you and your wallet? We'll talk with an expert.

And Muslim-Americans at the border -- are they being treated like second class citizens?

It is Thursday, April 21, and you are watching DAYBREAK.

And good Thursday morning to you.

From the Time Warner Center in New York, I'm Kelly Wallace, in today for Carol Costello.

Some of the stories now in the news.

Five children from three different families have died in a mobile home fire in Humphrey, Arkansas. A woman who also died was babysitting the boys. School officials canceled classes for today.

After months of protests, Ecuador's congress has removed President Gutierrez and replaced him with the vice president. The protests were sparked by a shakeup of the country's supreme court.

The White House is blasting Senate Democrats for delaying approval of John Bolton, the man President Bush has nominated for U.N. ambassador. Members of the Senate Foreign Relations Committee are looking into new allegations that Bolton abused his authority and mistreated subordinates.

And hail in Kansas damaging some cars. Take a look at this. The hail also had an impact at the Denver airport. Sixteen flights headed for Denver were diverted after a strong storm system moved to the area.

And -- Chad, you're saying that they're still going to have some severe weather today, too.

CHAD MYERS, CNN METEOROLOGIST: Absolutely. Nebraska, Kansas, Iowa, Missouri, Oklahoma, Arkansas, maybe even down to the Gulf Coast, all part of the same spinning storm that's going to bring the potential for hail, wind, and, yes, probably dozens, maybe -- it could be an outbreak of tornadoes today setting up in that way. So if you're going to be outside or around, make sure you keep the TV on. We'll certainly have it here for you.

(WEATHER REPORT)

WALLACE: And up first this hour, more deadly violence in Iraq. Iraqi police say at least two people were killed this morning when a homemade bomb exploded on a road leading to the Baghdad airport. Police say they saw three SUVs passing as the blast went off. Officials just south of Baghdad had recovered more than 50 bodies from the Tigris River. Now, subsequently, we've gotten some clarity on that from Iraqi police. They are telling CNN that they have recovered a total of 57 bodies over the course of two weeks.

Basically, according to the police, these bodies were floating in the Tigris River and got caught up on a portable dam. That's where they've been recovering them. Among the 57 bodies, they say there are women and children. What they don't know at this point is whether these people were killed at the hands of insurgents and terrorists or whether they were killed simply by criminal groups. Of course, there is no shortage of those either in Iraq -- Kelly.

WALLACE: And we also know about another violent incident, reports of 20 Iraqi soldiers shot to death in the northwest part of the country.

What can you tell us about that?

CHILCOTE: That's right. Iraqi police telling us that in the northwestern city of Haditha, 20 Iraqi soldiers were shot dead by insurgents. These soldiers were on leave in civilian dress when they were abducted by these insurgents on the highway. They were brought to a soccer stadium. And that's where their bodies were later found, lined up against a bloodstained wall, apparently executed there -- Kelly.

WALLACE: And, also, Ryan, we understood we were going to get or possibly could get an announcement today on the formation of the new Iraqi government. It appears to be delayed.

What's the holdup?

CHILCOTE: That's correct. Well, President Jalal Talabani yesterday also said he thought that -- or he hoped that a government could be announced today. Today he's saying maybe not. He is expecting a delay. He told our sister network, CNN Turk, that it could be as late as Sunday, perhaps, that there's more negotiating to do, that the government wants to include more Sunni Arabs and that there is still some haggling to do over posts in the government -- Kelly.

WALLACE: All right, Ryan, you covered a lot of ground for us today.

Thanks so much.

Ryan Chilcote reporting from Baghdad. And Defense Secretary Donald Rumsfeld sticking with Iraq. He says he can't predict exactly when U.S. troop levels in Iraq will go down. In testimony before a House committee, Secretary Rumsfeld said it all depends on when Iraqis can handle their own security and when the insurgency subsides. Another critical factor, Rumsfeld says, is whether neighboring countries stop insurgents from crossing the border into Iraq.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: It would be foolhardy for me to make projections like that. I can't predict, for example, what the behavior of Syria will be, what the behavior of Iran will be. Will they behave better? They haven't yet. If they do, that could be helpful, that Iraq would have a better chance then.

(END VIDEO CLIP)

WALLACE: And the defense secretary adds, he thinks ordinary Iraqis will be able to help defeat the insurgency by providing more intelligence to security forces.

Drilling for oil in the Alaskan wilderness, tax breaks for energy companies, just some of the highlights of a sweeping energy bill. It is expected to pass the Republican dominated House today. In the Senate, Democrats are threatening a filibuster over opening Anwar -- that's the Alaskan National Wildlife Refuge -- to oil drilling. And one of those Democrats who is opposing it, Senator Charles Schumer of New York.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: The bill that the administration is supporting is a great gift if you're a big energy company. It's a loser to the taxpayers and to every American who is spending more and more on gas and oil.

(END VIDEO CLIP)

WALLACE: And another provision of the energy bill is developing the use of hydrogen fuels. Overheard by a CNN reporter was Republican Congressman Richard Pombo. The House Resources Committee chairman called the provision on hydrogen powered vehicles: "As Radar O'Reilly used to say, "horse hockey." We can't say exactly what he said hereon television.

Well, look for new bankruptcy rules on the horizon. President Bush has signed the new law that requires most bankrupt consumers to adhere to repayment plans. The law takes effect in six months. Until then, people can file under the old law. The new law changes who qualifies for Chapter VII, which erases debt. And it requires everyone filing for bankruptcy to pay for credit counseling. It also makes child support the first thing that gets paid by someone in bankruptcy.

House Republicans are pressuring Democrats to allow an ethics investigation of House Majority Leader Tom DeLay to proceed. And this whole mess is not without some threats.

CNN's Kareen Wynter is live in Washington -- good morning, Kareen.

What's the latest from there?

KAREEN WYNTER, CNN CORRESPONDENT: Good morning to you, Kelly.

Well, the head of the House Ethics Committee says they've had to resort to unusual and extraordinary steps because of what they believe has been a lack of cooperation by Democrats. But the big question still remains -- will this investigation move forward?

(BEGIN VIDEO TAPE)

WYNTER (voice-over): There was pressure from both sides of the aisle. Some Republicans urged House Majority Leader Tom DeLay to lay out his case on allegations he violated House ethics rules, whether lobbyists improperly paid for overseas trips.

At least one thinks he should go.

REP. CHRISTOPHER SHAYS (R), CONNECTICUT: He's still the leader, but if I think -- but that's what I think. I think he should step down.

WYNTER: Democrats continued to demand an investigation, but at the same time are blocking the work of the Ethics Committee. They accuse the Republicans of changing the rules to protect DeLay. Under the amended rules, one Republican on the evenly divided committee would now have to vote for a full probe of DeLay's fundraising.

In an effort to break the deadlock, this announcement yesterday from House Ethics Committee Chairman Hastings.

REP. DOC HASTINGS (R), WASHINGTON: But because the Democrats have refused to let the Committee operate, we are prepared to move directly to an investigation subcommittee.

WYNTER: Hastings said that would allow an investigation of DeLay's conduct to move forward and "remove any doubt about the true intent of these rule changes."

But the ranking Democrat on the committee shot down the proposal. Representative Alan Mollohan said it was "not an approach that adequately addresses all the concerns expressed."

REP. ALAN MOLLOHAN (D-WV), HOUSE ETHICS COMMITTEE: It is an effort to impose, because the majority can impose, through a majority vote, rules upon the Ethics Committee.

(END VIDEO TAPE)

WYNTER: DeLay has repeatedly denied the allegations. In a statement yesterday he said he wants to appear before the Committee to get the facts out and set the record straight -- Kelly. WALLACE: Kareen, thanks.

Kareen Wynter reporting for us from Washington.

Other stories across America this Thursday, the last brutal hours of Jessica Lunsford's young life are revealed in court documents. The 292 pages include details such as the 9-year-old was clutching a stuffed dolphin her father had recently given her. Jessica was bound and buried only a few hundred yards from her home, possibly while she was still alive. Convicted sex offender John Couey is charged in her death.

An amber alert is posted in Kentucky for a missing teenaged girl. Authorities say 16-year-old Janet Quijano was abducted at her school bus stop by five Hispanic men about 24 hours ago.

And a first in the nation. Connecticut law makers legalize same- sex civil unions. The state senate voted 26-8 to approve the house bill. And Republican Governor Jodi Rell signed it immediately. The new law takes effect October 1.

Still to come today on DAYBREAK, from cars to cigarettes to online shopping, if it's popular in America, you can bet it is making money in China.

And bad breaks, bad for business. Or are they? We'll see how Amtrak's financial tragedies make for airline strategies.

And a Vietnam vet gets his chance at revenge. We'll tell you what happened when he came face-to-face with Jane Fonda.

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

We'll be right back.

(COMMERCIAL BREAK)

WALLACE: Your news, money, weather and sports.

It's just about 14 minutes after the hour.

And here is what is all new this morning.

Several deadly incidents in Iraq. A roadside bomb on the highway leading to the Baghdad airport killed at least two people today. A three car convoy was the target of that attack.

In money news, the New York Stock Exchange announces plans to merge with electronic trading firm Archipelago. The merger, approved by both boards, means the combined entity would be publicly traded, ending the long-time not for profit status of the New York Stock Exchange.

In culture news, fans of Marilyn Monroe can buy at an auction some of her more personal items. You can bid on her personal phone book and her Joe DiMaggio divorce papers. That takes place in June.

In sports, the New Jersey Nets are heading to the NBA playoffs. The Nets beat the Celtics, to secure the last spot in the Eastern Conference. And they will play top seeded Miami Heat in the first round.

Chad in Atlanta -- Chad, what is it looking like for today?

(WEATHER REPORT)

WALLACE: Still to come on DAYBREAK, what would happen to the airline industry if America West and US Airways combined forces? Some theories about the so-called Project Barbell. That's when DAYBREAK continues.

Don't go away.

(COMMERCIAL BREAK)

WALLACE: Pictures of Central Park and other parts of Manhattan on this Thursday.

Well, news about CNN's parent company, Time Warner. Time Warner and Comcast Corporation have reportedly reached a deal to buy Adelphia Communications Corporation. The joint bidders will pay more than $17.5 billion in cash and stock for the bankrupt cable operator. It will create a new number two pay TV operator in the United States.

EBay is reporting a 28 percent rise in first quarter earnings. The Internet auctioneer says profits rose to more than $256 million, from about $200 million last year. The company credits strong international sales and the success of its online payment service.

And eBay looking to keep the profit growth going by expanding into China.

Carrie Lee tells us eBay isn't the only company with its eye on China -- good morning to you.

CARRIE LEE, CNN CORRESPONDENT: It's certainly not, Kelly.

In fact, it seems like every major U.S. company is trying to go East, trying to get into the Chinese market. Part of the reason, they have well over a billion people, about four times the people in the U.S. And they're really growing. Their economy is growing at a very fast clip. So eBay is saying in the latest quarter it added more new users in China than anywhere else. It's now the number one e-commerce company there and eBay is soon going to debut its popular e-payment site, Pay Pal, very soon coming to China.

Ford also getting more aggressive in China, establishing a joint venture with a Chinese auto company for a factory to make engines and increasing its dealership base, building its popular Ford Focus in China, as well.

And Philip Morris' parent Altria reportedly close to a deal with the Chinese government to manufacture and sell Marlboro cigarettes there. China is the world's largest cigarette market, accounting for about one third of all cigarettes smoked worldwide. And the Chinese market for cigarettes is still growing, compared to the U.S., where health concerns have hurt sales.

So a lot of companies getting in. And that's where a lot of U.S. companies are seeing their growth.

WALLACE: Is it set in or has sort of been an ongoing thing that we're seeing U.S. companies really trying to sort of explore the Chinese market?

LEE: Trying to explore the Chinese market because it's growing at such a fast clip. A lot of things are -- a lot of areas are seeing at least some level of saturation here, or, if not saturation, at least not the strong growth potential that other overseas opportunities offer.

WALLACE: And looking at futures, what's it looking like today?

LEE: Futures are looking very strong. We saw the Dow down over 100 points yesterday, hitting right at that 10,000 mark at the low point. We did finish a little bit above that. But futures are looking very strong for today's session.

I'm going to have more on that NYSE merger you were touching on in about 20 minutes.

WALLACE: OK, we'll see you then.

LEE: Great.

WALLACE: Carrie, thanks so much.

Well, California's governor does some fancy footwork, you can say, after putting his foot in his mouth. Did he really just get lost in translation? We'll tell you what the Governator has to say about the country's borders.

And Amtrak puts the brakes on high speed train service. But for how long? We'll let you know and let you know what it means for you and for the airlines.

That's when DAYBREAK continues.

We'll be right back.

(COMMERCIAL BREAK)

WALLACE: Amtrak's Acela high speed train has come to a complete stop. And that stoppage could last -- get this -- until the summer. Problems with brake systems on the trains were found last week. Now a shortage of replacement parts has led to a lengthy delay in repairing the 20 train fleet. But Amtrak officials say they're offering alternatives for travelers along the Northeastern Corridor.

(BEGIN VIDEO CLIP)

WILLIAM CROSBIE, SENIOR VICE PRESIDENT OF OPERATIONS, AMTRAK: Starting Monday, April 25, during the weekdays, Metroliners will provide nearly every hour on the hour service between 6:00 a.m. to 6:00 p.m. between New York and Washington. This fills 13 of the 15 round trips that were previously served by the Acela.

(END VIDEO CLIP)

WALLACE: But here's the question -- will the train troubles have an impact on the airlines?

Joining us to talk about that and more, "USA Today" airline reporter, Ben Mutzabaugh.

Ben, thanks for being here today. BEN MUTZABAUGH, "USA TODAY" AIRLINE REPORTER: Oh, it's good to be here.

WALLACE: So, first question, will the problems with the Acela trains have an impact on the airlines?

MUTZABAUGH: It does seem like it's already had an impact. Delta, for example, said they saw a 10 percent spike in passengers on their shuttle routes, which fly the same routes that the Acela trains take. Now, they didn't say that they could necessarily pinpoint that that was related to Acela's problem, but it seems more than anecdotal for the reasons for the increase.

US Airways has also seen a big spike, what they call a big spike, in a number of people on their shuttle routes.

WALLACE: Talk to us, Ben, a little bit more about the problems surrounding Amtrak. Obviously problems with the Acela train fleet. You have the Senate subcommittee planning to debate President Bush's proposal to really eliminate federal funding for Amtrak, privatize it.

Give us a sense of how the problems with Acela could impact a movement in Congress to eliminate funding for Amtrak.

MUTZABAUGH: Well, you know, there are two sides of it. The critics of Amtrak are going to say see, this is exactly why we shouldn't be funding Amtrak -- they can't get their act together, there's no need for a national railroad.

Now, the other side of the coin, they're going to say you should have expected this to happen. If they -- proponents of Amtrak say Amtrak is under funded. And, you know, it's just like the schools, if you don't fund the schools, your kids aren't going to get good test results. And you can make the same analysis to Amtrak, if it's under funded, the proponents say of course it's not going to perform very well.

WALLACE: Talk to us about the airlines. We were talking throughout the morning on DAYBREAK, a possible merger between US Airways and America West.

What would this mean for the flying public?

MUTZABAUGH: Yes, the whole airline industry is abuzz with talk about this right now, about whether it's, you know, rumors or fact. And they say discussions are, in fact, underway. How far remains to be seen.

But what this would mean for travelers is you would now have an airline, a discount airline, that, if this goes through -- and that's a big if -- it would rival Southwest in size. It would be the country's, if not the world's, biggest discounter. And it would have a reach that goes from New England to Florida to pretty much all of the West Coast. And it would even have international routes, as well. That would be a pretty big -- it would be groundbreaking for a discount carrier to have such a reach.

WALLACE: I understand the merger talks reportedly nicknamed "Project Barbell."

Why is that?

MUTZABAUGH: That's right. It's because US Airways has a huge concentration of flights within the East. Their cross country flights are limited. And the same thing for America West, except, of course, they're on the West Coast. So if you look at their, at the areas where they're strong and where their flights operate, you have a big mass in the East for US Airways, a big mass in the West for America West and a few lines connecting their areas of dominance in between.

So if you draw it on the map, it roughly looks like a barbell.

WALLACE: Oh, that's so interesting.

All right, Ben, well, we'll be watching to see what happens.

Ben Mutzabaugh, "USA Today" airline reporter.

Thanks for being here today on DAYBREAK.

We appreciate it.

MUTZABAUGH: Good to see you.

WALLACE: And we want you to know you can read Ben's column, "Today In the Sky," online at www.usatoday.com/travel.

Still to come on DAYBREAK on this day, they went to Canada for a religious conference. And that's exactly why they say they were targeted when they tried to return. Burned up about border security. We'll tell you about that.

Also, the ethics battle brewing on Capitol Hill. Are the rules getting in the way of clearing Tom DeLay's name?

Much more ahead.

Stay with us. (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I felt like a little worm under the ground. I felt like a second class citizen. I felt hopeless. You know, I felt like who are we going to call?

(END VIDEO CLIP)

WALLACE: Americans boiling at the border. Is it profiling in the name of homeland security?

And a Vietnam vet gets his own style of revenge on Hanoi Jane.

It is Thursday, April 21, and you are watching DAYBREAK.

Good Thursday morning to you.

From the Time Warner Center in New York, I'm Kelly Wallace, in for Carol Costello.

Now in the news, escalating violence in Iraq. Police say a car bomb killed two people on the road to the Baghdad airport today. This comes one day after more than 50 bodies were found in the Tigris River and 20 Iraqi soldiers were found shot to death.

The full Senate votes today on John Negroponte's nomination to be the nation's first director of national intelligence. He is expected to be easily confirmed and will oversee 15 intelligence agencies.

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Aired April 21, 2005 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KELLY WALLACE, CNN CORRESPONDENT: The deadlock over an ethics investigation into the House majority leader. Will Tom DeLay finally go before the Ethics Committee? A live report from Washington coming up.
Plus, a US Airways-America West merger? What does it mean to you and your wallet? We'll talk with an expert.

And Muslim-Americans at the border -- are they being treated like second class citizens?

It is Thursday, April 21, and you are watching DAYBREAK.

And good Thursday morning to you.

From the Time Warner Center in New York, I'm Kelly Wallace, in today for Carol Costello.

Some of the stories now in the news.

Five children from three different families have died in a mobile home fire in Humphrey, Arkansas. A woman who also died was babysitting the boys. School officials canceled classes for today.

After months of protests, Ecuador's congress has removed President Gutierrez and replaced him with the vice president. The protests were sparked by a shakeup of the country's supreme court.

The White House is blasting Senate Democrats for delaying approval of John Bolton, the man President Bush has nominated for U.N. ambassador. Members of the Senate Foreign Relations Committee are looking into new allegations that Bolton abused his authority and mistreated subordinates.

And hail in Kansas damaging some cars. Take a look at this. The hail also had an impact at the Denver airport. Sixteen flights headed for Denver were diverted after a strong storm system moved to the area.

And -- Chad, you're saying that they're still going to have some severe weather today, too.

CHAD MYERS, CNN METEOROLOGIST: Absolutely. Nebraska, Kansas, Iowa, Missouri, Oklahoma, Arkansas, maybe even down to the Gulf Coast, all part of the same spinning storm that's going to bring the potential for hail, wind, and, yes, probably dozens, maybe -- it could be an outbreak of tornadoes today setting up in that way. So if you're going to be outside or around, make sure you keep the TV on. We'll certainly have it here for you.

(WEATHER REPORT)

WALLACE: And up first this hour, more deadly violence in Iraq. Iraqi police say at least two people were killed this morning when a homemade bomb exploded on a road leading to the Baghdad airport. Police say they saw three SUVs passing as the blast went off. Officials just south of Baghdad had recovered more than 50 bodies from the Tigris River. Now, subsequently, we've gotten some clarity on that from Iraqi police. They are telling CNN that they have recovered a total of 57 bodies over the course of two weeks.

Basically, according to the police, these bodies were floating in the Tigris River and got caught up on a portable dam. That's where they've been recovering them. Among the 57 bodies, they say there are women and children. What they don't know at this point is whether these people were killed at the hands of insurgents and terrorists or whether they were killed simply by criminal groups. Of course, there is no shortage of those either in Iraq -- Kelly.

WALLACE: And we also know about another violent incident, reports of 20 Iraqi soldiers shot to death in the northwest part of the country.

What can you tell us about that?

CHILCOTE: That's right. Iraqi police telling us that in the northwestern city of Haditha, 20 Iraqi soldiers were shot dead by insurgents. These soldiers were on leave in civilian dress when they were abducted by these insurgents on the highway. They were brought to a soccer stadium. And that's where their bodies were later found, lined up against a bloodstained wall, apparently executed there -- Kelly.

WALLACE: And, also, Ryan, we understood we were going to get or possibly could get an announcement today on the formation of the new Iraqi government. It appears to be delayed.

What's the holdup?

CHILCOTE: That's correct. Well, President Jalal Talabani yesterday also said he thought that -- or he hoped that a government could be announced today. Today he's saying maybe not. He is expecting a delay. He told our sister network, CNN Turk, that it could be as late as Sunday, perhaps, that there's more negotiating to do, that the government wants to include more Sunni Arabs and that there is still some haggling to do over posts in the government -- Kelly.

WALLACE: All right, Ryan, you covered a lot of ground for us today.

Thanks so much.

Ryan Chilcote reporting from Baghdad. And Defense Secretary Donald Rumsfeld sticking with Iraq. He says he can't predict exactly when U.S. troop levels in Iraq will go down. In testimony before a House committee, Secretary Rumsfeld said it all depends on when Iraqis can handle their own security and when the insurgency subsides. Another critical factor, Rumsfeld says, is whether neighboring countries stop insurgents from crossing the border into Iraq.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: It would be foolhardy for me to make projections like that. I can't predict, for example, what the behavior of Syria will be, what the behavior of Iran will be. Will they behave better? They haven't yet. If they do, that could be helpful, that Iraq would have a better chance then.

(END VIDEO CLIP)

WALLACE: And the defense secretary adds, he thinks ordinary Iraqis will be able to help defeat the insurgency by providing more intelligence to security forces.

Drilling for oil in the Alaskan wilderness, tax breaks for energy companies, just some of the highlights of a sweeping energy bill. It is expected to pass the Republican dominated House today. In the Senate, Democrats are threatening a filibuster over opening Anwar -- that's the Alaskan National Wildlife Refuge -- to oil drilling. And one of those Democrats who is opposing it, Senator Charles Schumer of New York.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: The bill that the administration is supporting is a great gift if you're a big energy company. It's a loser to the taxpayers and to every American who is spending more and more on gas and oil.

(END VIDEO CLIP)

WALLACE: And another provision of the energy bill is developing the use of hydrogen fuels. Overheard by a CNN reporter was Republican Congressman Richard Pombo. The House Resources Committee chairman called the provision on hydrogen powered vehicles: "As Radar O'Reilly used to say, "horse hockey." We can't say exactly what he said hereon television.

Well, look for new bankruptcy rules on the horizon. President Bush has signed the new law that requires most bankrupt consumers to adhere to repayment plans. The law takes effect in six months. Until then, people can file under the old law. The new law changes who qualifies for Chapter VII, which erases debt. And it requires everyone filing for bankruptcy to pay for credit counseling. It also makes child support the first thing that gets paid by someone in bankruptcy.

House Republicans are pressuring Democrats to allow an ethics investigation of House Majority Leader Tom DeLay to proceed. And this whole mess is not without some threats.

CNN's Kareen Wynter is live in Washington -- good morning, Kareen.

What's the latest from there?

KAREEN WYNTER, CNN CORRESPONDENT: Good morning to you, Kelly.

Well, the head of the House Ethics Committee says they've had to resort to unusual and extraordinary steps because of what they believe has been a lack of cooperation by Democrats. But the big question still remains -- will this investigation move forward?

(BEGIN VIDEO TAPE)

WYNTER (voice-over): There was pressure from both sides of the aisle. Some Republicans urged House Majority Leader Tom DeLay to lay out his case on allegations he violated House ethics rules, whether lobbyists improperly paid for overseas trips.

At least one thinks he should go.

REP. CHRISTOPHER SHAYS (R), CONNECTICUT: He's still the leader, but if I think -- but that's what I think. I think he should step down.

WYNTER: Democrats continued to demand an investigation, but at the same time are blocking the work of the Ethics Committee. They accuse the Republicans of changing the rules to protect DeLay. Under the amended rules, one Republican on the evenly divided committee would now have to vote for a full probe of DeLay's fundraising.

In an effort to break the deadlock, this announcement yesterday from House Ethics Committee Chairman Hastings.

REP. DOC HASTINGS (R), WASHINGTON: But because the Democrats have refused to let the Committee operate, we are prepared to move directly to an investigation subcommittee.

WYNTER: Hastings said that would allow an investigation of DeLay's conduct to move forward and "remove any doubt about the true intent of these rule changes."

But the ranking Democrat on the committee shot down the proposal. Representative Alan Mollohan said it was "not an approach that adequately addresses all the concerns expressed."

REP. ALAN MOLLOHAN (D-WV), HOUSE ETHICS COMMITTEE: It is an effort to impose, because the majority can impose, through a majority vote, rules upon the Ethics Committee.

(END VIDEO TAPE)

WYNTER: DeLay has repeatedly denied the allegations. In a statement yesterday he said he wants to appear before the Committee to get the facts out and set the record straight -- Kelly. WALLACE: Kareen, thanks.

Kareen Wynter reporting for us from Washington.

Other stories across America this Thursday, the last brutal hours of Jessica Lunsford's young life are revealed in court documents. The 292 pages include details such as the 9-year-old was clutching a stuffed dolphin her father had recently given her. Jessica was bound and buried only a few hundred yards from her home, possibly while she was still alive. Convicted sex offender John Couey is charged in her death.

An amber alert is posted in Kentucky for a missing teenaged girl. Authorities say 16-year-old Janet Quijano was abducted at her school bus stop by five Hispanic men about 24 hours ago.

And a first in the nation. Connecticut law makers legalize same- sex civil unions. The state senate voted 26-8 to approve the house bill. And Republican Governor Jodi Rell signed it immediately. The new law takes effect October 1.

Still to come today on DAYBREAK, from cars to cigarettes to online shopping, if it's popular in America, you can bet it is making money in China.

And bad breaks, bad for business. Or are they? We'll see how Amtrak's financial tragedies make for airline strategies.

And a Vietnam vet gets his chance at revenge. We'll tell you what happened when he came face-to-face with Jane Fonda.

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

We'll be right back.

(COMMERCIAL BREAK)

WALLACE: Your news, money, weather and sports.

It's just about 14 minutes after the hour.

And here is what is all new this morning.

Several deadly incidents in Iraq. A roadside bomb on the highway leading to the Baghdad airport killed at least two people today. A three car convoy was the target of that attack.

In money news, the New York Stock Exchange announces plans to merge with electronic trading firm Archipelago. The merger, approved by both boards, means the combined entity would be publicly traded, ending the long-time not for profit status of the New York Stock Exchange.

In culture news, fans of Marilyn Monroe can buy at an auction some of her more personal items. You can bid on her personal phone book and her Joe DiMaggio divorce papers. That takes place in June.

In sports, the New Jersey Nets are heading to the NBA playoffs. The Nets beat the Celtics, to secure the last spot in the Eastern Conference. And they will play top seeded Miami Heat in the first round.

Chad in Atlanta -- Chad, what is it looking like for today?

(WEATHER REPORT)

WALLACE: Still to come on DAYBREAK, what would happen to the airline industry if America West and US Airways combined forces? Some theories about the so-called Project Barbell. That's when DAYBREAK continues.

Don't go away.

(COMMERCIAL BREAK)

WALLACE: Pictures of Central Park and other parts of Manhattan on this Thursday.

Well, news about CNN's parent company, Time Warner. Time Warner and Comcast Corporation have reportedly reached a deal to buy Adelphia Communications Corporation. The joint bidders will pay more than $17.5 billion in cash and stock for the bankrupt cable operator. It will create a new number two pay TV operator in the United States.

EBay is reporting a 28 percent rise in first quarter earnings. The Internet auctioneer says profits rose to more than $256 million, from about $200 million last year. The company credits strong international sales and the success of its online payment service.

And eBay looking to keep the profit growth going by expanding into China.

Carrie Lee tells us eBay isn't the only company with its eye on China -- good morning to you.

CARRIE LEE, CNN CORRESPONDENT: It's certainly not, Kelly.

In fact, it seems like every major U.S. company is trying to go East, trying to get into the Chinese market. Part of the reason, they have well over a billion people, about four times the people in the U.S. And they're really growing. Their economy is growing at a very fast clip. So eBay is saying in the latest quarter it added more new users in China than anywhere else. It's now the number one e-commerce company there and eBay is soon going to debut its popular e-payment site, Pay Pal, very soon coming to China.

Ford also getting more aggressive in China, establishing a joint venture with a Chinese auto company for a factory to make engines and increasing its dealership base, building its popular Ford Focus in China, as well.

And Philip Morris' parent Altria reportedly close to a deal with the Chinese government to manufacture and sell Marlboro cigarettes there. China is the world's largest cigarette market, accounting for about one third of all cigarettes smoked worldwide. And the Chinese market for cigarettes is still growing, compared to the U.S., where health concerns have hurt sales.

So a lot of companies getting in. And that's where a lot of U.S. companies are seeing their growth.

WALLACE: Is it set in or has sort of been an ongoing thing that we're seeing U.S. companies really trying to sort of explore the Chinese market?

LEE: Trying to explore the Chinese market because it's growing at such a fast clip. A lot of things are -- a lot of areas are seeing at least some level of saturation here, or, if not saturation, at least not the strong growth potential that other overseas opportunities offer.

WALLACE: And looking at futures, what's it looking like today?

LEE: Futures are looking very strong. We saw the Dow down over 100 points yesterday, hitting right at that 10,000 mark at the low point. We did finish a little bit above that. But futures are looking very strong for today's session.

I'm going to have more on that NYSE merger you were touching on in about 20 minutes.

WALLACE: OK, we'll see you then.

LEE: Great.

WALLACE: Carrie, thanks so much.

Well, California's governor does some fancy footwork, you can say, after putting his foot in his mouth. Did he really just get lost in translation? We'll tell you what the Governator has to say about the country's borders.

And Amtrak puts the brakes on high speed train service. But for how long? We'll let you know and let you know what it means for you and for the airlines.

That's when DAYBREAK continues.

We'll be right back.

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WALLACE: Amtrak's Acela high speed train has come to a complete stop. And that stoppage could last -- get this -- until the summer. Problems with brake systems on the trains were found last week. Now a shortage of replacement parts has led to a lengthy delay in repairing the 20 train fleet. But Amtrak officials say they're offering alternatives for travelers along the Northeastern Corridor.

(BEGIN VIDEO CLIP)

WILLIAM CROSBIE, SENIOR VICE PRESIDENT OF OPERATIONS, AMTRAK: Starting Monday, April 25, during the weekdays, Metroliners will provide nearly every hour on the hour service between 6:00 a.m. to 6:00 p.m. between New York and Washington. This fills 13 of the 15 round trips that were previously served by the Acela.

(END VIDEO CLIP)

WALLACE: But here's the question -- will the train troubles have an impact on the airlines?

Joining us to talk about that and more, "USA Today" airline reporter, Ben Mutzabaugh.

Ben, thanks for being here today. BEN MUTZABAUGH, "USA TODAY" AIRLINE REPORTER: Oh, it's good to be here.

WALLACE: So, first question, will the problems with the Acela trains have an impact on the airlines?

MUTZABAUGH: It does seem like it's already had an impact. Delta, for example, said they saw a 10 percent spike in passengers on their shuttle routes, which fly the same routes that the Acela trains take. Now, they didn't say that they could necessarily pinpoint that that was related to Acela's problem, but it seems more than anecdotal for the reasons for the increase.

US Airways has also seen a big spike, what they call a big spike, in a number of people on their shuttle routes.

WALLACE: Talk to us, Ben, a little bit more about the problems surrounding Amtrak. Obviously problems with the Acela train fleet. You have the Senate subcommittee planning to debate President Bush's proposal to really eliminate federal funding for Amtrak, privatize it.

Give us a sense of how the problems with Acela could impact a movement in Congress to eliminate funding for Amtrak.

MUTZABAUGH: Well, you know, there are two sides of it. The critics of Amtrak are going to say see, this is exactly why we shouldn't be funding Amtrak -- they can't get their act together, there's no need for a national railroad.

Now, the other side of the coin, they're going to say you should have expected this to happen. If they -- proponents of Amtrak say Amtrak is under funded. And, you know, it's just like the schools, if you don't fund the schools, your kids aren't going to get good test results. And you can make the same analysis to Amtrak, if it's under funded, the proponents say of course it's not going to perform very well.

WALLACE: Talk to us about the airlines. We were talking throughout the morning on DAYBREAK, a possible merger between US Airways and America West.

What would this mean for the flying public?

MUTZABAUGH: Yes, the whole airline industry is abuzz with talk about this right now, about whether it's, you know, rumors or fact. And they say discussions are, in fact, underway. How far remains to be seen.

But what this would mean for travelers is you would now have an airline, a discount airline, that, if this goes through -- and that's a big if -- it would rival Southwest in size. It would be the country's, if not the world's, biggest discounter. And it would have a reach that goes from New England to Florida to pretty much all of the West Coast. And it would even have international routes, as well. That would be a pretty big -- it would be groundbreaking for a discount carrier to have such a reach.

WALLACE: I understand the merger talks reportedly nicknamed "Project Barbell."

Why is that?

MUTZABAUGH: That's right. It's because US Airways has a huge concentration of flights within the East. Their cross country flights are limited. And the same thing for America West, except, of course, they're on the West Coast. So if you look at their, at the areas where they're strong and where their flights operate, you have a big mass in the East for US Airways, a big mass in the West for America West and a few lines connecting their areas of dominance in between.

So if you draw it on the map, it roughly looks like a barbell.

WALLACE: Oh, that's so interesting.

All right, Ben, well, we'll be watching to see what happens.

Ben Mutzabaugh, "USA Today" airline reporter.

Thanks for being here today on DAYBREAK.

We appreciate it.

MUTZABAUGH: Good to see you.

WALLACE: And we want you to know you can read Ben's column, "Today In the Sky," online at www.usatoday.com/travel.

Still to come on DAYBREAK on this day, they went to Canada for a religious conference. And that's exactly why they say they were targeted when they tried to return. Burned up about border security. We'll tell you about that.

Also, the ethics battle brewing on Capitol Hill. Are the rules getting in the way of clearing Tom DeLay's name?

Much more ahead.

Stay with us. (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I felt like a little worm under the ground. I felt like a second class citizen. I felt hopeless. You know, I felt like who are we going to call?

(END VIDEO CLIP)

WALLACE: Americans boiling at the border. Is it profiling in the name of homeland security?

And a Vietnam vet gets his own style of revenge on Hanoi Jane.

It is Thursday, April 21, and you are watching DAYBREAK.

Good Thursday morning to you.

From the Time Warner Center in New York, I'm Kelly Wallace, in for Carol Costello.

Now in the news, escalating violence in Iraq. Police say a car bomb killed two people on the road to the Baghdad airport today. This comes one day after more than 50 bodies were found in the Tigris River and 20 Iraqi soldiers were found shot to death.

The full Senate votes today on John Negroponte's nomination to be the nation's first director of national intelligence. He is expected to be easily confirmed and will oversee 15 intelligence agencies.

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