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CNN Live At Daybreak
Galveston Alternative; Stewart Investigation; Can You Help?; Mob Crackdown; Doggy Bling-Bling
Aired April 26, 2005 - 05:30 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.
CAROL COSTELLO, CNN ANCHOR: Good morning to you, welcome to the second half-hour of DAYBREAK. From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."
Autopsies are planned for two Georgia toddlers who were found dead in a sanitation pond after being missing for two days. Investigators found the bodies of the 3-year-old boy and his 2-year- old sister just a few hundred yards from their home. There are no immediate indications of foul play.
Syria completes its troop withdrawal from Lebanon today. It ends 29 years of military and political domination. Formal farewell ceremonies, some would say good riddance ceremonies, have just ended in the Bekaa Valley.
Funeral services will be held this morning for former Israeli President Ezer Weizman. He's being remembered as one of the architects of Israel's first peace treaty with an Arab country. He died Sunday at the age of 80.
Seven hundred thousand dollars, that's what a Miami jury says former baseball star Jose Canseco and his twin brother will have to shell out for a bar fight. That settles the compensatory damage phase of a lawsuit filed by two California men. A hearing is today to determine punitive damages.
To the Forecast Center and -- Chad.
CHAD MYERS, CNN METEOROLOGIST: Do they look scarily alike? Did you see them?
COSTELLO: They're twins.
MYERS: They looked exactly -- I couldn't tell one from the other.
COSTELLO: They're twins.
MYERS: Well there you go. So maybe you're not in error (ph).
Good morning, everybody.
(WEATHER REPORT)
Thank you -- Chad.
MYERS: You're welcome.
COSTELLO: President Bush heads to Galveston, Texas today to pitch his plan to add private investment accounts to Social Security. Privatized accounts have been a way of life for local workers in Galveston County, Texas for more than two decades. Did you know that?
CNN's Ed Lavandera takes a look at how it's working.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Ray Holbrook is enjoying retirement chopping wood, but he wonders how long he would have had to work if he had not been a county judge in Galveston, Texas.
RAY HOLBROOK, FMR. GALVESTON COUNTY JUDGE: At my age, 77, I would probably still be working. I hope I wouldn't be splitting wood, but I might be working at something else.
LAVANDERA: Holbrook gets about $1,300 a month from Social Security. For 10 years, he also was getting an extra $3,000 monthly check from the county.
HOLBROOK: People ought to save for their own retirement and not count on the next generation paying for it.
LAVANDERA: Galveston County was one of three Texas counties that bailed out of the federal Social Security plan 23 years ago and created what's known as the alternate plan for county employees. The program creates individual retirement accounts that workers and the county pay in, just like Social Security, but the money is invested in secure bonds or annuities, guaranteeing at least a 4 percent return.
HOLBROOK: It's like taking my money to the local bank down here. I know I have that account in that bank and I can draw on it each month as I need it. And I know where it is. I know how much is there.
LAVANDERA: Rick Gornto runs the retirement program for Galveston County. He says the investment plan has averaged a return of more than 6 percent since it was started in 1981, far better, he says, than the 1 to 2 percent return from Social Security. He says the country should take notice.
RICK GORNTO, FIRST FINANCIAL BENEFITS: We didn't know how it would work. I mean, we knew in our heads, but we had never lived it. And now we have lived it, and we've seen it work. We have seen real people receive real money and real returns.
LAVANDERA: The county plan also pays four times a worker's salary as a death benefit. Social Security pays $225. The county's private retirement accounts can also be passed on to your children. Social Security payments cannot. (on camera): The U.S. General Accounting Office analyzed Galveston's retirement plan 6 years ago. That report says that the alternate plan worked well in just a few cases, but that generally, workers would receive more money if they were in the federal Social Security program.
ROBERT HUTCHINS, GALVESTON COUNTY RESIDENT: I think it's terrible.
LAVANDERA (voice-over): Retirement planner Robert Hutchins is one of the few voices of dissent to the alternate plan in Galveston. He says the program isn't as profitable for low-income workers, as it is for judges, like Holbrook, and hurts employees who leave the county before reaching retirement age.
HUTCHINS: If the national plan were similar, if they used the Galveston alternate plan as their model, it is going to be a tragedy.
LAVANDERA: Galveston officials question the numbers used in the government's report, but they acknowledge the alternate plan needs some tweaking. Workers can take money out of their personal accounts at any time, which they see as a dangerous option, if it leaves people with less money to retire with.
Ray Holbrook doesn't question the plan's success. He just looks at the checks he has received since retiring to remind himself why private investments have paid off.
Ed Lavandera, CNN, Dallas.
(END VIDEOTAPE)
COSTELLO: House Majority Leader Tom DeLay will pitch in and help President Bush sell his Social Security plan in Galveston today. DeLay is also scheduled to fly back to Washington with the president aboard Air Force One, and that may end any speculation the White House is trying to distance President Bush from the House leader. DeLay has been trying to fend off various allegations of ethical improprieties.
Your Social Security benefits may be in danger if you still owe money on student loans. The Supreme Court will decide if the federal government can garnish those benefits from your paycheck. The Bush administration wants to go after debts that have been delinquent for more than 10 years. More than half the overall student loan debt is more than a decade old. That amounts to $3.6 billion.
Another day, another black eye for John Bolton. "Newsweek" reports top British officials once complained about Bolton's uncompromising ways when he was an undersecretary to Colin Powell. Still, Secretary of State Condoleezza Rice has renewed her push for Bolton's confirmation as U.S. Ambassador to the United Nations.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: I believe, along with the president, that John Bolton is the right person for this job. We need a strong voice at the United Nations who can participate in and indeed lead in an extremely important reform debate that is going on now in the United Nations.
(END VIDEO CLIP)
COSTELLO: A Senate committee is due to meet again on Bolton's nomination on May 12.
New York wants a bigger piece of the pie when it comes to funds to fight terrorism. That's the message Homeland Security Chief Michael Chertoff got while visiting New York. He met with the mayor and other political types as he toured the rail system.
Today, Chertoff will speak to the business leaders about the private sector's involvement in anti-terror efforts.
And the hunt for weapons of mass destruction in Iraq has gone as far as it can, and the 18-month search has found nothing. That's according to U.S. weapons inspectors who have issued their final report. As you well remember the Bush administration assertion that Iraq had those weapons was the premise upon which the U.S.-led invasion of Iraq was based.
Domestic diva Martha Stewart is being investigated again. This time parole officers are trying to determine if she violated the terms of her house arrest.
CNN's Mary Snow has our report.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): Six weeks out of prison, Martha Stewart was all smiles at "TIME" magazine's gala last Tuesday honoring the 100 most influential people. She hobnobbed with movers and shakers, and she even gave a toast.
MARTHA STEWART, DOMESTIC DIVA: This is a toast to my inspiration.
SNOW: She drew attention, not just from photographers, but from the probation department, as well. The chief U.S. probation officer of New York's Southern District says his office is now looking into whether Martha Stewart violated conditions of her supervised release. The probation office says she did get permission to attend.
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: What may be uncertain is what the probation officer really understood about what was going to go on here, because she was photographed at this very lavish dinner. And you could see how the probation officer might be a little embarrassed that he approved this.
SNOW: Stewart left prison in March and returned to her New York estate to begin five months of home confinement. Since then, her movements have been restricted. Stewart has to wear an electronic ankle bracelet to monitor her whereabouts. She's allowed to leave her home for 48 hours a week, mostly to go to work. JOHN LAWRENCE ALLEN, SECURITIES ATTORNEY: I think that they're concerned that the event that she attended had a direct relationship to her work.
SNOW: In a statement, her company said, "When 'TIME' magazine recognizes Martha Stewart, MSLO's founder, as one of the 100 most influential people in the world, our company benefits from that honor."
Because Stewart's work is so public, she's been seen at events like last week's announcement of a radio deal. One former probation officer says going to a big event, for Stewart, is not out of the ordinary.
LISA KUCA, FMR, FEDERAL PROBATION OFFICER: The "TIME" event is probably very consistent with what other people of a similar profession would do in their job duties.
SNOW: Mary Snow, CNN, New York.
(END VIDEOTAPE)
COSTELLO: CNN's parent company, Time Warner, sponsored the "TIME" magazine event at which Stewart attended.
When you have a problem, usually ask a friend to help. But things aren't as easy as they seem, even when President Bush asks a favor. The bottom line on the prince, oil profits and gas prices next.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports. It's 5:41 Eastern. Here's what's all new this morning.
President Bush is in the homestretch. He's in the final days of a 60-day push for Social Security reform. He's hosting a Social Security roundtable in Galveston, Texas today.
And as for some of the president's judicial nominees, top lawmakers are working on ways to end the standoff over them. Their goals: ending current Democratic filibusters and defusing Republican threats to ban such tactics outright.
In money news, Toyota has a message for Detroit, let the market decide. The world's second largest automaker says it won't raise prices in order to help the U.S. auto industry.
In culture, there will be no honeymoon, but there will be a civil ceremony. The publicist for Elton John says the singer intends to enter a civil partnership this year or next with his long-time partner David Furnish. In sports, the Atlanta Braves have been streaking, until last night. The New York Mets beat them 5-4, ending a four-game streak. The two are now tied in the NL East.
To the Forecast Center and -- Chad.
MYERS: Carol, that game was on NHD last night. And let me tell you, you've never seen anything like you've seen a baseball game on high definition. That's the first one I've ever seen, and it was phenomenal. It's worth buying a TV for, if you can get one cheap. But I don't own any TV stock, so I'm not going to tell you which one to buy.
Good morning.
(WEATHER REPORT)
COSTELLO: All right, thank you -- Chad.
MYERS: You bet.
COSTELLO: That's a look at the latest headlines for you.
With gas prices at record highs, what's a president to do? For President Bush it's a simple matter of asking Saudi Arabia's leaders to increase production, but nothing is simple when it comes to gas prices.
Chris Huntington has more on that for you.
(BEGIN VIDEOTAPE)
CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): President Bush reached out to Saudi Crown Prince Abdullah hoping to squeeze a little more oil production out of the world's biggest supplier and ease prices, particularly at U.S. gas pumps. But many oil market veterans say today's meeting at the president's ranch was little more than a photo-op and that the Saudi's plan to invest more on future capacity will have little impact on oil prices in the near term.
JOHN KILDUFF, ENERGY ANALYST: Unfortunately, probably for the first time, maybe ever, but certainly in a long time, the Saudi's hands are almost tied, as are President Bush's at this point, because they are pumping as much oil as they realistically can.
HUNTINGTON: Saudi Arabia currently produces close to 9.5 million barrels of oil each day and could potentially pump that up to about 10.5 million to 11 million barrels, but that would still only be about 12 percent of total world output. Saudi Arabia's oil is so-called sour crude, less desirable in the U.S. market because it is difficult to refine into gasoline. Still, more crude on the world markets should help ease prices.
The United States currently burns through about 20 million barrels of oil a day, 10 million of which are imported. One-and-a- half million barrels a day come from Saudi Arabia, roughly the same as the United States gets from Canada and Mexico. While Saudi Arabia is still the top dog in the world oil market, the fact that it is already near full output means that it is not as dominant as it once was.
FADEL GHEIT, OIL ANALYST: Saudi Arabia and OPEC, in general, is now like an old dog that can only bark but doesn't bite anymore. They really have no outside potential from here. The spare capacity is very limited, if at all.
HUNTINGTON: But even if the Saudis do boost production in the near term to the absolute maximum, there is fear in the oil markets of a potential backfire effect. And that is that oil prices might rise instead of fall because there would be no more spare production capacity in the world to handle any unforeseen supply disruption.
Chris Huntington, CNN, New York.
(END VIDEOTAPE)
COSTELLO: Still ahead on DAYBREAK, shopping for canine glam Hollywood style. We'll take you to a benefit that had tails wagging.
And remember our e-mail "Question of the Day," it's about dog laws in Turin, Italy, where you are required to walk your dog three times a day or face a fine of more than $600. And there's more. Is this law taking too big a bite out of dog owner's rights or do you think it'd be a good idea here in the United States? We wondered. E- mail us, DAYBREAK@CNN.com.
(COMMERCIAL BREAK)
COSTELLO: Murder plots stretching back for decades, that's the focus of a major mob crackdown in Chicago.
Paul Meincke of our affiliate WLS has more details for you.
(BEGIN VIDEOTAPE)
ROBERT GRANT, FBI: This is the first investigation that I can recall and indictment I can recall that involved so many murders, which really gets to the heart of what the LCN is, and that is a bunch of murderous thugs.
PAUL MEINCKE, WLS-TV REPORTER (voice-over): They are big outfit names: Jimmy Marcello, reputed boss of the Chicago mob, now back in custody; Joey "The Clown" Lombardo; Frank "The German" Schweihs; Frank Calabrese, shown here running from the camera.
They are among 14 outfit leaders and their associates indicted for loan sharking, book making and most significantly, for conspiracy to commit murder. Seven of the men are charged in a total of 18 unsolved gangland murders going back to 1970 and the disappearance of Michael "Hambone" Albergo (ph), an alleged mob enforcer, and leading through the mid-'80s with the 1986 murders of Tony and Michael Spilotro who were buried in an Indiana cornfield.
Prosecutors believe they have the evidence to prove who the killer was in each of the hits, but that detail is not part of this indictment, so they're not discussing it.
PATRICK FITZGERALD, U.S. ATTORNEY: Obviously we intend to prove all 18 murders at trial that these murders were committed and the evidentiary detail of who did what will come out at that time.
TOM KIRKPATRICK, CHICAGO CRIME COMMISSION: It's far reaching. It covers a broad timeframe. It nails key players and leaders in the mob who probably thought they were immune by this time from the Feds.
MEINCKE: This blow to the Chicago outfit came about because of imprisoned outfit member Nick Calabrese, who, according to sources, became a government informant. DNA of crime scene evidence then reportedly linked the murders to the outfit members.
The FBI went to Joey Lombardo's home today. He wasn't there. They're still looking for him. His attorney doesn't know where he is.
(on camera): Have you had any conversation with Mr. Lombardo?
RICK HALPRIN, JOEY LOMBARDO'S ATTORNEY: I'd rather not comment on that.
MEINCKE: Can we expect that he would be turning himself in pretty soon?
HALPRIN: I don't really know. We haven't spoken recently, let's let it at that.
(END VIDEOTAPE)
COSTELLO: Paul Meincke from our Chicago affiliate WLS.
Another hour of DAYBREAK just around the corner.
A new generation of high school grads shunning the party schools, opting instead for religious-based universities. A closer look at the trend of higher learning all new in our next hour.
DAYBREAK will be right back.
(COMMERCIAL BREAK)
COSTELLO: Entertainment headlines for you this morning.
Bruce Springsteen debuted his solo talent for the first time in nearly 10 years. He's playing a 13-city solo acoustic tour in support of his new album "Devils & Dust." That's a bit of it for you this morning. The album hits store shelves today.
The force is going strong and "Star Wars" creator George Lucas is amazed. Lucas talked to fans in Indianapolis last weekend at the largest official "Star Wars" convention. The latest installment of the film series, "Revenge of the Sith," opens on May 19.
Spanish soccer fans will start hearing goal on Satellite Radio this summer. XM is launching a Spanish language sports network in partnership with sports announcer Andre Canter (ph). The Satellite Radio Company will also broadcast Latin-American baseball and boxing.
How do you turn your mangy mutt into a pooch player? There are all kinds of ways to put bling-bling in your doggy's bark.
CNN's Brooke Anderson has more.
(BEGIN VIDEOTAPE)
REESE WITHERSPOON, ACTRESS: Hi, I'm Elle Woods and this is Bruiser Woods, and we're both Gemini vegetarian.
BROOKE ANDERSON, CNN CORRESPONDENT (voice-over): No worries, Bruiser, "ShowBiz Tonight" has got you covered. Farm fresh food, doggy delicacies, stairmasters, personalized plates, a dog mag and patour (ph) galore all in Hollywood this weekend at an event for L.A.'s most pampered pets.
MELISSA RIVERS, ENTERTAINMENT HOST: I'm Melissa Rivers. This is Birthday. She's a rescue dog. And I thought it would be fun to take her shopping today. So let's go check this out, come on.
ANDERSON: It was a birthday for Birthday.
RIVERS: Scarves. Dog scarves. You think, is that her color? I think that looks good.
ANDERSON: Perfume.
UNIDENTIFIED FEMALE: It's Stinky Butt Spritz.
ANDERSON: Got to wear some Birthday blitz.
RIVERS: Jewelry.
ANDERSON: No interest in the birthday treat.
RIVERS: Typical Hollywood girl, watching her weight.
ANDERSON: But loving the fashions, Chinese silk. A valor tracksuit, perfect for both coasts. Sam and tweed (ph), that will get some dates. Got to wear the Von Dutch. Maybe this color is better. Not so sure about the carrying case. The poncho and matching hat are a winning combination.
We run into Oscar nominee Virginia Madsen once again. She was there checking out the scene with her handsome pooch.
VIRGINIA MADSEN, ACTRESS: This is Spike. He is a French Bulldog; therefore, he is a man of love. I took him to one of these tables and they had like all-natural dog treats, just made with all natural ingredients and no pesticide. And I was like, Spike, check this out, and he almost wretched. He was not into the health food thing at all. He's a steak and potato guy.
ANDERSON: Sorry, Bruiser Woods, not everyone is so finicky. MADSEN: One time I got him a sweatshirt and I tried to dress him up, and he just sat there trembling, looking so humiliated. So like, yes, I've never been able to dress him up.
ANDERSON: But it looks like Spike decided to wear some Von Dutch in the end.
Justin Berfield, from "Malcolm in the Middle," brought his two dogs, Beans (ph) and Fuse (ph).
JUSTIN BERFIELD, ACTOR: Fuse loves going to the spa. Once a week I take her to go to the spa and she'll like, you know, get her nails done, not color, but just like trimmed. And then she'll get spa treatment. She'll get a cut. I get her a puppy cut.
ANDERSON: And, like Spike, Beans prefers Von Dutch.
Dogs in Hollywood have long gotten the star treatment. Here's Frank the Pug from "Men in Black." Britney Spears' pooch joined her on the carpet at the Billboard Music Awards. Paris Hilton's Tinkerbell is practically a household name. But the common dog deserves some love, too. Luckily, Birthday the rescue dog did OK.
RIVERS: Birthday looks amazing for her debut on "ShowBiz Tonight." What do you guys think? I think she looks great. Red carpet ready, if I do say so myself. Man, we scored some good stuff. We scored some good stuff, huh, huh, huh. You know, generally, she doesn't talk to press.
(END VIDEOTAPE)
COSTELLO: You can get more entertainment news every night on "ShowBiz Tonight." That's at 7:00 p.m. Eastern on Headline News.
It is time to head to our e-mail question this morning, because in Turin, Italy, they're going to fine people if they put like funky clothes on their dogs or dye their dog's hair pink. If you don't walk your dog three times a day, they're going to fine you the equivalent of 650 bucks. So we're asking you this question, does this law take too big a bite out of the dog owner's rights or is it good for the dog?
Chad, you have some e-mails?
MYERS: Yes, I have a few. From Bonnie (ph) in Kingston, Ontario, in Hollywood it seems that they purchase a new dog like a new key tag (ph). Dying the color of a dog pink should merit the owner a psychological review. Dogs lead the blind, help the deaf, work for police, find missing people, save lives, have been shown to add years to the owner's lives and have a fierce sense of loyalty rarely seen in a human being, is it really so much to ask to just walk them?
COSTELLO: Wow that's a good one.
This is from Linda (ph) in California. My dog is a member of my family. I wouldn't dye my niece's hair pink, so why would I be foolish enough to dye my dog's hair pink? It's an attention getter for the owners who are so deprived they would even use an innocent animal to gain them some attention. Pathetic.
MYERS: Tom (ph) in Philadelphia says I'm a Sicilian and I can't believe this new law. Anyway, it seems to me that dogs in Italy are better protected now than the children. It seems to me the priorities are a little messed up.
COSTELLO: This is from Sandy (ph) from Deerfield Beach, Florida. I get the law about dying your animal that is potentially dangerous. I advocate for animals. But how many times a day do you walk the dog, please, this is ridiculous. I want to know who's going to check on this? Is this the way we create jobs for the economy? This is just too big brother for me.
I know. Are they going to have the dog police checking if you walk your dog three times a day?
MYERS: Have the dog walker police, exactly.
And from Aaron (ph) in Dallas, well a walk before lunch, before breakfast, during lunch and even after work could really only help people lose weight. I say let's not have the dogs dyed to match your shoes and they shouldn't be groomed to look like some odd doll either.
COSTELLO: I so agree. Thank you for your e-mails this morning. We always find them fascinating and always funny.
The next hour of DAYBREAK starts right now.
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 April 26, 2005 - 05:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning to you, welcome to the second half-hour of DAYBREAK. From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."
Autopsies are planned for two Georgia toddlers who were found dead in a sanitation pond after being missing for two days. Investigators found the bodies of the 3-year-old boy and his 2-year- old sister just a few hundred yards from their home. There are no immediate indications of foul play.
Syria completes its troop withdrawal from Lebanon today. It ends 29 years of military and political domination. Formal farewell ceremonies, some would say good riddance ceremonies, have just ended in the Bekaa Valley.
Funeral services will be held this morning for former Israeli President Ezer Weizman. He's being remembered as one of the architects of Israel's first peace treaty with an Arab country. He died Sunday at the age of 80.
Seven hundred thousand dollars, that's what a Miami jury says former baseball star Jose Canseco and his twin brother will have to shell out for a bar fight. That settles the compensatory damage phase of a lawsuit filed by two California men. A hearing is today to determine punitive damages.
To the Forecast Center and -- Chad.
CHAD MYERS, CNN METEOROLOGIST: Do they look scarily alike? Did you see them?
COSTELLO: They're twins.
MYERS: They looked exactly -- I couldn't tell one from the other.
COSTELLO: They're twins.
MYERS: Well there you go. So maybe you're not in error (ph).
Good morning, everybody.
(WEATHER REPORT)
Thank you -- Chad.
MYERS: You're welcome.
COSTELLO: President Bush heads to Galveston, Texas today to pitch his plan to add private investment accounts to Social Security. Privatized accounts have been a way of life for local workers in Galveston County, Texas for more than two decades. Did you know that?
CNN's Ed Lavandera takes a look at how it's working.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Ray Holbrook is enjoying retirement chopping wood, but he wonders how long he would have had to work if he had not been a county judge in Galveston, Texas.
RAY HOLBROOK, FMR. GALVESTON COUNTY JUDGE: At my age, 77, I would probably still be working. I hope I wouldn't be splitting wood, but I might be working at something else.
LAVANDERA: Holbrook gets about $1,300 a month from Social Security. For 10 years, he also was getting an extra $3,000 monthly check from the county.
HOLBROOK: People ought to save for their own retirement and not count on the next generation paying for it.
LAVANDERA: Galveston County was one of three Texas counties that bailed out of the federal Social Security plan 23 years ago and created what's known as the alternate plan for county employees. The program creates individual retirement accounts that workers and the county pay in, just like Social Security, but the money is invested in secure bonds or annuities, guaranteeing at least a 4 percent return.
HOLBROOK: It's like taking my money to the local bank down here. I know I have that account in that bank and I can draw on it each month as I need it. And I know where it is. I know how much is there.
LAVANDERA: Rick Gornto runs the retirement program for Galveston County. He says the investment plan has averaged a return of more than 6 percent since it was started in 1981, far better, he says, than the 1 to 2 percent return from Social Security. He says the country should take notice.
RICK GORNTO, FIRST FINANCIAL BENEFITS: We didn't know how it would work. I mean, we knew in our heads, but we had never lived it. And now we have lived it, and we've seen it work. We have seen real people receive real money and real returns.
LAVANDERA: The county plan also pays four times a worker's salary as a death benefit. Social Security pays $225. The county's private retirement accounts can also be passed on to your children. Social Security payments cannot. (on camera): The U.S. General Accounting Office analyzed Galveston's retirement plan 6 years ago. That report says that the alternate plan worked well in just a few cases, but that generally, workers would receive more money if they were in the federal Social Security program.
ROBERT HUTCHINS, GALVESTON COUNTY RESIDENT: I think it's terrible.
LAVANDERA (voice-over): Retirement planner Robert Hutchins is one of the few voices of dissent to the alternate plan in Galveston. He says the program isn't as profitable for low-income workers, as it is for judges, like Holbrook, and hurts employees who leave the county before reaching retirement age.
HUTCHINS: If the national plan were similar, if they used the Galveston alternate plan as their model, it is going to be a tragedy.
LAVANDERA: Galveston officials question the numbers used in the government's report, but they acknowledge the alternate plan needs some tweaking. Workers can take money out of their personal accounts at any time, which they see as a dangerous option, if it leaves people with less money to retire with.
Ray Holbrook doesn't question the plan's success. He just looks at the checks he has received since retiring to remind himself why private investments have paid off.
Ed Lavandera, CNN, Dallas.
(END VIDEOTAPE)
COSTELLO: House Majority Leader Tom DeLay will pitch in and help President Bush sell his Social Security plan in Galveston today. DeLay is also scheduled to fly back to Washington with the president aboard Air Force One, and that may end any speculation the White House is trying to distance President Bush from the House leader. DeLay has been trying to fend off various allegations of ethical improprieties.
Your Social Security benefits may be in danger if you still owe money on student loans. The Supreme Court will decide if the federal government can garnish those benefits from your paycheck. The Bush administration wants to go after debts that have been delinquent for more than 10 years. More than half the overall student loan debt is more than a decade old. That amounts to $3.6 billion.
Another day, another black eye for John Bolton. "Newsweek" reports top British officials once complained about Bolton's uncompromising ways when he was an undersecretary to Colin Powell. Still, Secretary of State Condoleezza Rice has renewed her push for Bolton's confirmation as U.S. Ambassador to the United Nations.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: I believe, along with the president, that John Bolton is the right person for this job. We need a strong voice at the United Nations who can participate in and indeed lead in an extremely important reform debate that is going on now in the United Nations.
(END VIDEO CLIP)
COSTELLO: A Senate committee is due to meet again on Bolton's nomination on May 12.
New York wants a bigger piece of the pie when it comes to funds to fight terrorism. That's the message Homeland Security Chief Michael Chertoff got while visiting New York. He met with the mayor and other political types as he toured the rail system.
Today, Chertoff will speak to the business leaders about the private sector's involvement in anti-terror efforts.
And the hunt for weapons of mass destruction in Iraq has gone as far as it can, and the 18-month search has found nothing. That's according to U.S. weapons inspectors who have issued their final report. As you well remember the Bush administration assertion that Iraq had those weapons was the premise upon which the U.S.-led invasion of Iraq was based.
Domestic diva Martha Stewart is being investigated again. This time parole officers are trying to determine if she violated the terms of her house arrest.
CNN's Mary Snow has our report.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): Six weeks out of prison, Martha Stewart was all smiles at "TIME" magazine's gala last Tuesday honoring the 100 most influential people. She hobnobbed with movers and shakers, and she even gave a toast.
MARTHA STEWART, DOMESTIC DIVA: This is a toast to my inspiration.
SNOW: She drew attention, not just from photographers, but from the probation department, as well. The chief U.S. probation officer of New York's Southern District says his office is now looking into whether Martha Stewart violated conditions of her supervised release. The probation office says she did get permission to attend.
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: What may be uncertain is what the probation officer really understood about what was going to go on here, because she was photographed at this very lavish dinner. And you could see how the probation officer might be a little embarrassed that he approved this.
SNOW: Stewart left prison in March and returned to her New York estate to begin five months of home confinement. Since then, her movements have been restricted. Stewart has to wear an electronic ankle bracelet to monitor her whereabouts. She's allowed to leave her home for 48 hours a week, mostly to go to work. JOHN LAWRENCE ALLEN, SECURITIES ATTORNEY: I think that they're concerned that the event that she attended had a direct relationship to her work.
SNOW: In a statement, her company said, "When 'TIME' magazine recognizes Martha Stewart, MSLO's founder, as one of the 100 most influential people in the world, our company benefits from that honor."
Because Stewart's work is so public, she's been seen at events like last week's announcement of a radio deal. One former probation officer says going to a big event, for Stewart, is not out of the ordinary.
LISA KUCA, FMR, FEDERAL PROBATION OFFICER: The "TIME" event is probably very consistent with what other people of a similar profession would do in their job duties.
SNOW: Mary Snow, CNN, New York.
(END VIDEOTAPE)
COSTELLO: CNN's parent company, Time Warner, sponsored the "TIME" magazine event at which Stewart attended.
When you have a problem, usually ask a friend to help. But things aren't as easy as they seem, even when President Bush asks a favor. The bottom line on the prince, oil profits and gas prices next.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports. It's 5:41 Eastern. Here's what's all new this morning.
President Bush is in the homestretch. He's in the final days of a 60-day push for Social Security reform. He's hosting a Social Security roundtable in Galveston, Texas today.
And as for some of the president's judicial nominees, top lawmakers are working on ways to end the standoff over them. Their goals: ending current Democratic filibusters and defusing Republican threats to ban such tactics outright.
In money news, Toyota has a message for Detroit, let the market decide. The world's second largest automaker says it won't raise prices in order to help the U.S. auto industry.
In culture, there will be no honeymoon, but there will be a civil ceremony. The publicist for Elton John says the singer intends to enter a civil partnership this year or next with his long-time partner David Furnish. In sports, the Atlanta Braves have been streaking, until last night. The New York Mets beat them 5-4, ending a four-game streak. The two are now tied in the NL East.
To the Forecast Center and -- Chad.
MYERS: Carol, that game was on NHD last night. And let me tell you, you've never seen anything like you've seen a baseball game on high definition. That's the first one I've ever seen, and it was phenomenal. It's worth buying a TV for, if you can get one cheap. But I don't own any TV stock, so I'm not going to tell you which one to buy.
Good morning.
(WEATHER REPORT)
COSTELLO: All right, thank you -- Chad.
MYERS: You bet.
COSTELLO: That's a look at the latest headlines for you.
With gas prices at record highs, what's a president to do? For President Bush it's a simple matter of asking Saudi Arabia's leaders to increase production, but nothing is simple when it comes to gas prices.
Chris Huntington has more on that for you.
(BEGIN VIDEOTAPE)
CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): President Bush reached out to Saudi Crown Prince Abdullah hoping to squeeze a little more oil production out of the world's biggest supplier and ease prices, particularly at U.S. gas pumps. But many oil market veterans say today's meeting at the president's ranch was little more than a photo-op and that the Saudi's plan to invest more on future capacity will have little impact on oil prices in the near term.
JOHN KILDUFF, ENERGY ANALYST: Unfortunately, probably for the first time, maybe ever, but certainly in a long time, the Saudi's hands are almost tied, as are President Bush's at this point, because they are pumping as much oil as they realistically can.
HUNTINGTON: Saudi Arabia currently produces close to 9.5 million barrels of oil each day and could potentially pump that up to about 10.5 million to 11 million barrels, but that would still only be about 12 percent of total world output. Saudi Arabia's oil is so-called sour crude, less desirable in the U.S. market because it is difficult to refine into gasoline. Still, more crude on the world markets should help ease prices.
The United States currently burns through about 20 million barrels of oil a day, 10 million of which are imported. One-and-a- half million barrels a day come from Saudi Arabia, roughly the same as the United States gets from Canada and Mexico. While Saudi Arabia is still the top dog in the world oil market, the fact that it is already near full output means that it is not as dominant as it once was.
FADEL GHEIT, OIL ANALYST: Saudi Arabia and OPEC, in general, is now like an old dog that can only bark but doesn't bite anymore. They really have no outside potential from here. The spare capacity is very limited, if at all.
HUNTINGTON: But even if the Saudis do boost production in the near term to the absolute maximum, there is fear in the oil markets of a potential backfire effect. And that is that oil prices might rise instead of fall because there would be no more spare production capacity in the world to handle any unforeseen supply disruption.
Chris Huntington, CNN, New York.
(END VIDEOTAPE)
COSTELLO: Still ahead on DAYBREAK, shopping for canine glam Hollywood style. We'll take you to a benefit that had tails wagging.
And remember our e-mail "Question of the Day," it's about dog laws in Turin, Italy, where you are required to walk your dog three times a day or face a fine of more than $600. And there's more. Is this law taking too big a bite out of dog owner's rights or do you think it'd be a good idea here in the United States? We wondered. E- mail us, DAYBREAK@CNN.com.
(COMMERCIAL BREAK)
COSTELLO: Murder plots stretching back for decades, that's the focus of a major mob crackdown in Chicago.
Paul Meincke of our affiliate WLS has more details for you.
(BEGIN VIDEOTAPE)
ROBERT GRANT, FBI: This is the first investigation that I can recall and indictment I can recall that involved so many murders, which really gets to the heart of what the LCN is, and that is a bunch of murderous thugs.
PAUL MEINCKE, WLS-TV REPORTER (voice-over): They are big outfit names: Jimmy Marcello, reputed boss of the Chicago mob, now back in custody; Joey "The Clown" Lombardo; Frank "The German" Schweihs; Frank Calabrese, shown here running from the camera.
They are among 14 outfit leaders and their associates indicted for loan sharking, book making and most significantly, for conspiracy to commit murder. Seven of the men are charged in a total of 18 unsolved gangland murders going back to 1970 and the disappearance of Michael "Hambone" Albergo (ph), an alleged mob enforcer, and leading through the mid-'80s with the 1986 murders of Tony and Michael Spilotro who were buried in an Indiana cornfield.
Prosecutors believe they have the evidence to prove who the killer was in each of the hits, but that detail is not part of this indictment, so they're not discussing it.
PATRICK FITZGERALD, U.S. ATTORNEY: Obviously we intend to prove all 18 murders at trial that these murders were committed and the evidentiary detail of who did what will come out at that time.
TOM KIRKPATRICK, CHICAGO CRIME COMMISSION: It's far reaching. It covers a broad timeframe. It nails key players and leaders in the mob who probably thought they were immune by this time from the Feds.
MEINCKE: This blow to the Chicago outfit came about because of imprisoned outfit member Nick Calabrese, who, according to sources, became a government informant. DNA of crime scene evidence then reportedly linked the murders to the outfit members.
The FBI went to Joey Lombardo's home today. He wasn't there. They're still looking for him. His attorney doesn't know where he is.
(on camera): Have you had any conversation with Mr. Lombardo?
RICK HALPRIN, JOEY LOMBARDO'S ATTORNEY: I'd rather not comment on that.
MEINCKE: Can we expect that he would be turning himself in pretty soon?
HALPRIN: I don't really know. We haven't spoken recently, let's let it at that.
(END VIDEOTAPE)
COSTELLO: Paul Meincke from our Chicago affiliate WLS.
Another hour of DAYBREAK just around the corner.
A new generation of high school grads shunning the party schools, opting instead for religious-based universities. A closer look at the trend of higher learning all new in our next hour.
DAYBREAK will be right back.
(COMMERCIAL BREAK)
COSTELLO: Entertainment headlines for you this morning.
Bruce Springsteen debuted his solo talent for the first time in nearly 10 years. He's playing a 13-city solo acoustic tour in support of his new album "Devils & Dust." That's a bit of it for you this morning. The album hits store shelves today.
The force is going strong and "Star Wars" creator George Lucas is amazed. Lucas talked to fans in Indianapolis last weekend at the largest official "Star Wars" convention. The latest installment of the film series, "Revenge of the Sith," opens on May 19.
Spanish soccer fans will start hearing goal on Satellite Radio this summer. XM is launching a Spanish language sports network in partnership with sports announcer Andre Canter (ph). The Satellite Radio Company will also broadcast Latin-American baseball and boxing.
How do you turn your mangy mutt into a pooch player? There are all kinds of ways to put bling-bling in your doggy's bark.
CNN's Brooke Anderson has more.
(BEGIN VIDEOTAPE)
REESE WITHERSPOON, ACTRESS: Hi, I'm Elle Woods and this is Bruiser Woods, and we're both Gemini vegetarian.
BROOKE ANDERSON, CNN CORRESPONDENT (voice-over): No worries, Bruiser, "ShowBiz Tonight" has got you covered. Farm fresh food, doggy delicacies, stairmasters, personalized plates, a dog mag and patour (ph) galore all in Hollywood this weekend at an event for L.A.'s most pampered pets.
MELISSA RIVERS, ENTERTAINMENT HOST: I'm Melissa Rivers. This is Birthday. She's a rescue dog. And I thought it would be fun to take her shopping today. So let's go check this out, come on.
ANDERSON: It was a birthday for Birthday.
RIVERS: Scarves. Dog scarves. You think, is that her color? I think that looks good.
ANDERSON: Perfume.
UNIDENTIFIED FEMALE: It's Stinky Butt Spritz.
ANDERSON: Got to wear some Birthday blitz.
RIVERS: Jewelry.
ANDERSON: No interest in the birthday treat.
RIVERS: Typical Hollywood girl, watching her weight.
ANDERSON: But loving the fashions, Chinese silk. A valor tracksuit, perfect for both coasts. Sam and tweed (ph), that will get some dates. Got to wear the Von Dutch. Maybe this color is better. Not so sure about the carrying case. The poncho and matching hat are a winning combination.
We run into Oscar nominee Virginia Madsen once again. She was there checking out the scene with her handsome pooch.
VIRGINIA MADSEN, ACTRESS: This is Spike. He is a French Bulldog; therefore, he is a man of love. I took him to one of these tables and they had like all-natural dog treats, just made with all natural ingredients and no pesticide. And I was like, Spike, check this out, and he almost wretched. He was not into the health food thing at all. He's a steak and potato guy.
ANDERSON: Sorry, Bruiser Woods, not everyone is so finicky. MADSEN: One time I got him a sweatshirt and I tried to dress him up, and he just sat there trembling, looking so humiliated. So like, yes, I've never been able to dress him up.
ANDERSON: But it looks like Spike decided to wear some Von Dutch in the end.
Justin Berfield, from "Malcolm in the Middle," brought his two dogs, Beans (ph) and Fuse (ph).
JUSTIN BERFIELD, ACTOR: Fuse loves going to the spa. Once a week I take her to go to the spa and she'll like, you know, get her nails done, not color, but just like trimmed. And then she'll get spa treatment. She'll get a cut. I get her a puppy cut.
ANDERSON: And, like Spike, Beans prefers Von Dutch.
Dogs in Hollywood have long gotten the star treatment. Here's Frank the Pug from "Men in Black." Britney Spears' pooch joined her on the carpet at the Billboard Music Awards. Paris Hilton's Tinkerbell is practically a household name. But the common dog deserves some love, too. Luckily, Birthday the rescue dog did OK.
RIVERS: Birthday looks amazing for her debut on "ShowBiz Tonight." What do you guys think? I think she looks great. Red carpet ready, if I do say so myself. Man, we scored some good stuff. We scored some good stuff, huh, huh, huh. You know, generally, she doesn't talk to press.
(END VIDEOTAPE)
COSTELLO: You can get more entertainment news every night on "ShowBiz Tonight." That's at 7:00 p.m. Eastern on Headline News.
It is time to head to our e-mail question this morning, because in Turin, Italy, they're going to fine people if they put like funky clothes on their dogs or dye their dog's hair pink. If you don't walk your dog three times a day, they're going to fine you the equivalent of 650 bucks. So we're asking you this question, does this law take too big a bite out of the dog owner's rights or is it good for the dog?
Chad, you have some e-mails?
MYERS: Yes, I have a few. From Bonnie (ph) in Kingston, Ontario, in Hollywood it seems that they purchase a new dog like a new key tag (ph). Dying the color of a dog pink should merit the owner a psychological review. Dogs lead the blind, help the deaf, work for police, find missing people, save lives, have been shown to add years to the owner's lives and have a fierce sense of loyalty rarely seen in a human being, is it really so much to ask to just walk them?
COSTELLO: Wow that's a good one.
This is from Linda (ph) in California. My dog is a member of my family. I wouldn't dye my niece's hair pink, so why would I be foolish enough to dye my dog's hair pink? It's an attention getter for the owners who are so deprived they would even use an innocent animal to gain them some attention. Pathetic.
MYERS: Tom (ph) in Philadelphia says I'm a Sicilian and I can't believe this new law. Anyway, it seems to me that dogs in Italy are better protected now than the children. It seems to me the priorities are a little messed up.
COSTELLO: This is from Sandy (ph) from Deerfield Beach, Florida. I get the law about dying your animal that is potentially dangerous. I advocate for animals. But how many times a day do you walk the dog, please, this is ridiculous. I want to know who's going to check on this? Is this the way we create jobs for the economy? This is just too big brother for me.
I know. Are they going to have the dog police checking if you walk your dog three times a day?
MYERS: Have the dog walker police, exactly.
And from Aaron (ph) in Dallas, well a walk before lunch, before breakfast, during lunch and even after work could really only help people lose weight. I say let's not have the dogs dyed to match your shoes and they shouldn't be groomed to look like some odd doll either.
COSTELLO: I so agree. Thank you for your e-mails this morning. We always find them fascinating and always funny.
The next hour of DAYBREAK starts right now.
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