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American Morning
President in Prime Time; Serial Arson Arrest; Safety in the Skies
Aired April 28, 2005 - 07:29 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning, everybody. It's 7:30 here in New York. Good to have you along with us today. Good morning to you as well.
SOLEDAD O'BRIEN, CNN ANCHOR: And you.
HEMMER: Did you hear about this thing at the White House yesterday? They had a scare down there. They put the president down in that secret bunker below the White House. They put the vice president in a secure undisclosed location for a time. It did not last for long, just a couple of minutes. But still, it got our attention. And we're going to try and sort things out with our correspondent, Elaine Quijano, down at the White House in a moment here, why this happened, what did they hear, how serious was it. So, we'll get to that.
Also, the president later tonight, a prime time news conference for just the fourth time in his presidency. Two major issues on his mind. We'll look at the message the president plans to deliver. One certainly will be the news out of Iraq and why that is important today. So, we'll get to it.
O'BRIEN: Also this morning, a "CNN Security Watch." We're taking a look at whether airport security has actually taken a step backward since the days after 9/11. Mark Hatfield, the spokesman for the Transportation Security Administration, is joining us this morning, answering some of the critics' charges.
HEMMER: All right.
O'BRIEN: First, though, a look at the headlines with Carol Costello.
Good morning.
CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to all of you.
"Now in the News."
After three months of debate, Iraq has a new government. The National Assembly approving a transitional cabinet just a short time ago. The new government includes seven women. Some disputes over key ministry positions remain, though.
Palestinian leader Mahmoud Abbas is threatening to use an iron fist against anyone who violates a cease-fire with Israel. Abbas, who took office earlier this year, has been under pressure from Israel to control militants. This the toughest warning from the Palestinian leader so far.
In Washington, a dramatic step by House Republicans, clearing the way for an ethics probe of Majority Leader Tom DeLay. The House voted overwhelmingly last night to roll back changes they made in January to the Ethics Committee rules. Democrats charge they were designed to protect Republican leader DeLay from any investigation. A probe is expected to begin next week.
I told you about this missing Florida girl. Well, there is a happy ending this morning. The 12-year-old is being reunited with her family today. Margarita Aguilar Lopez was found in a Wal-Mart parking lot in South Carolina. Her apparent abductor is now being held for questioning. Police say details are sketchy, and it is possible the girl may have left willingly.
And a new celebrity romance is apparently blossoming. It is official. Forty-two-year-old actor Tom Cruise is dating Katie Holmes. She's 26. She is the former star of "Dawson's Creek." You do the math. She's 16 years younger. The actress reps confirms the two have been an item for a few weeks. Just enough for that icky factor.
HEMMER: Come on!
O'BRIEN: What? What's icky?
HEMMER: What's icky about that?
COSTELLO: What if it were the other way around? Well, I guess Demi Moore.
(CROSSTALK)
O'BRIEN: With Ashton Kutcher. He's like 20 minutes old.
HEMMER: Forty-two is the new 29, by the way, Carol.
COSTELLO: I find that icky, too. Pardon?
HEMMER: Forty-two is the new 29.
O'BRIEN: Why?
HEMMER: Go, Tom.
O'BRIEN: The closer I get to 42, the more I'm, like, practically a baby.
HEMMER: We'll be back with you in a moment. Thank you, Carol.
COSTELLO: I wonder what they talk about.
HEMMER: There's a lot to talk about. They're actors in Hollywood. They're very rich, successful people. COSTELLO: Yes.
HEMMER: See you.
President Bush right now is going prime time later tonight. All of this is coming as new poll numbers show sagging support for policies at the White House.
Our Elaine Quijano is live there from the North Lawn there.
What do we expect later tonight, Elaine? Good morning.
ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Bill.
Officials say that President Bush tonight will focus on energy and Social Security.
Now, of course, it was just yesterday that President Bush in a speech unveiled some new initiatives on the energy front, part of what the Bush administration says is a comprehensive energy strategy. At the same time, though, officials here acknowledge none of those proposals are designed to provide any immediate price relief, that they insist these high prices didn't happen overnight and can't be brought down overnight.
Now, also, we are expecting to hear the president talk more in- depth than he has in the past about Social Security. Of course, the president just this past week was in Galveston, Texas, stumping for changes to the Social Security system. And, in fact, on Sunday, that will mark the end of the official 60 cities in 60 days tour. And officials say that they are moving now away from the education phase, telling people about the problems facing Social Security, and the issue itself now moving into a legislative phase with lawmakers on Capitol Hill taking up the issue.
Tonight, White House spokesman Scott McClellan says that the president is expected to lay out in more detail ways that he thinks the problems of insolvency facing Social Security can be fixed.
The president, by the way, is holding this news conference, only the fourth prime time news conference in the White House East Room since he took office -- Bill.
HEMMER: Elaine, this thing that got our attention yesterday, the security scare, what can you tell us about it?
QUIJANO: Some tense moments yesterday. It was around 11:00 yesterday morning. And we have seen really nothing like this, the Secret Service uniformed agents taking up what appeared to be sort of positions and bringing their weapons out.
Apparently all this was prompted by a report of a possible airspace violation. They scrambled out, as you see here. Some tense moments. And inside the White House itself, both President Bush as well as Vice President Cheney were moved to secure locations. The president to the secure bunker. But we are told by military officials that there appeared to be some sort of anomaly on the radar, which prompted all of this. It turns out it was a false alarm. White House spokesman Scott McClellan saying that the president was only in the bunker for a short time, for a few minutes, but certainly some tense moments here yesterday -- Bill.
HEMMER: And it got our attention, as I mentioned, too. Elaine, thanks. Elaine Quijano there at the White House.
Later tonight, that press conference officially begins at 8:30 in the evening. We, however, have complete coverage and analysis throughout the evening tonight in prime time here on CNN -- Soledad.
O'BRIEN: In Maryland, charges have been filed in a serial arson case that had gone unsolved for nearly two years. The 50-year-old suspect was taken into custody on Wednesday. And a law enforcement official tells CNN that he confessed to setting at least 33 fires in the D.C. area.
Bob Franken has our report.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice over): Investigators say 50-year-old Thomas Sweatt is the one they've been looking for, for more than two years. Early last evening, he made a brief appearance in a suburban Maryland courtroom.
He is charged with setting five fires so far, suspected as being the man who had terrorized the three-state D.C. metropolitan area since at least as far back as March 2003. During that span, there were more than 40 arson cases unsolved, even after a special federal local task force was created.
MAYOR ANTHONY WILLIAMS, WASHINGTON: If you threaten, if you terrorize, if you turn lives upside down in our communities, we're going to hunt you down.
FRANKEN: Investigators swarmed over the Washington fast-food restaurant, where Sweatt worked, looking for more clues. The big break came when DNA evidence was collected from a pair of U.S. Marine trousers, recovered at the scene of a fire in suburban Virginia. It was compared to DNA from other locations.
THERESA STOOP, BUREAU OF ALCOHOL, TOBACCO AND FIREARMS: Nothing was overlooked from any of the scenes ever.
FRANKEN: In the last week, detectives focused on Sweatt, who voluntarily provided a DNA sample. And yesterday morning, the arrest. He has not been charged with murder -- yet, although in June of 2003, an elderly woman was killed in one of the fires.
CHIEF CHARLES RAMSEY, WASHINGTON POLICE: But it's also fortunate that we only had one fatality. We could have very easily had multiple fatalities. FRANKEN (on camera): All together, rewards added up to $100,000. No word on that yet. But officials that if they're right about their suspect, the reward is a safer community.
Bob Franken, CNN, Washington.
(END VIDEOTAPE)
O'BRIEN: The arson suspect, Thomas Sweatt, is due back in court on Friday for a detention hearing -- Bill.
HEMMER: It's about 23 minutes before the hour. A check of the weather now.
(WEATHER REPORT)
HEMMER: A great story here from Boston, this dog owner. He spent hours negotiating the return of his puppy, dog nap. Timothy Connors left Dakota in his pickup truck outside of a store on Monday. The truck and the pup were gone when he came out. He called his cell phone inside the truck, and guess what? The thief answered...
O'BRIEN: His first mistake.
HEMMER: Yes. Demanding 500 bucks or he'd kill the dog. Connors arranged a meeting, with police hiding out nearby. The dog-napper is nabbed by the detectives. No such thing as a smart criminal, right, Soledad? The whole story coming up in our 9:00 hour.
O'BRIEN: Oh, what a cute, little puppy.
HEMMER: We'll bring the dog on and talk to his owner. He probably wanted the dog back more than he wanted the pickup truck. Keep the car, give me the dog. Dakota is safe now.
O'BRIEN: What a happy ending. All good.
Well, it's going to be a dead-end for a herd of wandering buffaloes. Remember these pictures we showed you yesterday? Those are lawn chairs they were using to try to keep the buffalo back. It didn't work that well. Anyway, we told you about the bison. They escaped from that Maryland farm. They disrupted traffic. They were eventually brought to that tennis court where they were kind of rounded up. Their annoyed owner now says he's now fed up, and now he's going to send them to the slaughterhouse.
HEMMER: Whoa!
O'BRIEN: That's set up.
HEMMER: What happened to the tennis match? I guess that's over. We will find out very soon.
O'BRIEN: Yes.
HEMMER: Wow! In a moment here, a former CEO accused of looting his company of $600 million is now taking the stand. And the big buzz was over a special guest at the courthouse. Andy has that.
O'BRIEN: And do security screeners have the equipment they need to keep us all safe when we fly? We're going to talk to the TSA. That's up next on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: A jury has convicted a British man of trying to sell 50 shoulder-fire missiles to undercover agent he thought were terrorists. Hemuth Lakhani (ph) was found guilty of all charges stemming from a sting operation in 2003 involving several countries. The jury reached its verdict after a second day of deliberation. Lakhani's (ph) attorney claims his client was a victim of entrapment. Lakhani (ph) said he will appeal. The most serious charges carry up to 20 years in prison. He will be sentenced on the 8th of August.
O'BRIEN: Well, our "CNN Security Watch" this morning, turbulent times for the agency that is charged with -protecting our safety in this skies. A new government report criticizes the Transportation Security Administration, saying airport weapons screening is no more effective today than it was before 9/11. And a report to be released as soon as today reportedly says that private airport screeners do a better job than government screeners.
Joining us this morning is Mark Hatfield. He's the TSA spokesman.
Nice to see you. Thanks for joining us in person.
MARK HATFIELD, SPOKESMAN, TRANSPORTATION SECURITY ADMINISTRATION: It's good to be here.
O'BRIEN: Usually we're talking from a little bit of a distance. This new report, we've got a lot of reports to talk about this morning. Someone who has seen it, Congressman Mica, says that private screeners do a better job than the government screeners. Are you surprised by that? And what do you make of that report?
HATFIELD: Well, if you're referring to the GAO report, which is yet to be released -- it may come out tomorrow or next Monday -- every indicator that I have heard directly from GAO is that that is not the conclusion they make. So, I think that once the report comes out, we'll be able to see through all of the smoke and fog.
And I image that their report will be very consistent with the inspector general from homeland security's report, our own internal testing, all of which point to the fact that what we saw in the first year-and-a-half a lot measurable increase in screener performance, we see now a leveling off.
And so, the conclusions, which seem to be shared by all, are that the technology is now the issue we've got to address, because using the current tools at their disposal, we've hit sort of a ceiling in terms of the performance that we can expect out of screeners.
O'BRIEN: Before we talk about the tools, because there's a $30 million investment I know you want to talk about...
HATFIELD: Sure.
O'BRIEN: ... I want to talk about a report from last week which said that it was kind of a wash that government screeners and private screeners were not significantly better.
HATFIELD: Well, I think the key message here is that the federal screeners, those federal employees who are being directed by TSA management staff, as well as the private workforce at five airports across the country, are performing equally well, I would say.
In fact, the good news here is that we've created an option for airports that they can either choose to have the federal screeners, which the majority of them have, or they can take the model that we created in five airports and say, give us our private workforce provider under federal management. And the key thing here is the consistency you get from TSA federal security directors, who are the ones in charge and responsible and accountable to each of these airports.
O'BRIEN: Thirty million dollars in technology upgrades. What's being updated and how?
HATFIELD: Well, this 30 million that you're referring to is really the first full-scale deployment commitment that we have to the new trace portals. Those are the puff portals that you walk through that are high-tech and can detect the most insignificant, minute trace particles of explosives. We tested them at about 5 airports last year, went to another 10 airports. The results were good. We now have the ability to put them into the 40 largest airports in the country. About 150 more of these trace portals will go out in the next year.
O'BRIEN: Certainly TSA is not the only government agency that is counting every dime.
HATFIELD: Right.
O'BRIEN: And then you look at this other report called "Wasteful Spending" from the GAO as well. A $19 million crisis center. Let me just run down some of the costs. Half-a-million dollars for artwork and silk plants, $3,000 refrigerators, a gym, a fitness center. How does something like this happen when this is a government agency where somebody is trying to watch literally every penny, I think it's fair to say?
HATFIELD: Well, indeed. And we share that same frugality. And in the creation of that operation center, which was done on a very short timeframe, don't let some of these, I would say, embarrassing misspending throw you off. It's a critical center. It's very vital to the command and control capability that we have to react to a...
O'BRIEN: But the silk plants, I'm going to assume...
HATFIELD: Unnecessary. Unnecessary, a bad choice. And if you look at the way this was uncovered, it was our own internal audits that discovered we had a crook and a couple of jerks out there. Bad choices. The remediation was done internally. We brought in the inspector general to validate our findings. And, in fact, this one individual has been referred to the Justice Department for prosecution.
O'BRIEN: A quick last question for you. In the change in security, the most recent one that they now have posted on all of the airport, no more lighters, but you can bring matches. Why the difference? And what's been the reaction?
HATFIELD: Yes, that sounds like a bit of a disconnect. What it is...
O'BRIEN: A complete disconnect.
HATFIELD: ... it's a leftover from Hazmat, a hazardous material rule that the FAA imposed years ago which said that you can't put any matches or lighters in a checked bag. But, well, let's see, what's an acceptable level? That's four matchbooks and two lighters. That's a Hazmat rule. We now have a security rule that says no lighters at all. And we're considering banning the matches as an addition to that. So, it does make sense if you kind of peel through the top layer.
O'BRIEN: Mark Hatfield, nice to see you, as always. Thanks for talking with us. Appreciate it.
HATFIELD: Thanks.
O'BRIEN: You want to stay tuned to CNN day and night for the most reliable news about your security -- Bill.
HEMMER: In a moment here, if you're worried about maybe goofing up on your tax returns this year, try explaining how you missed a $25 million bonus. Andy has that in "Minding Your Business" right after this.
(COMMERCIAL BREAK)
O'BRIEN: Welcome back, everybody.
Former Tyco chief Dennis Kozlowski takes the stand in his retrial, tries to explain a $25 million hole in his 1999 tax return.
Andy Serwer is "Minding Your Business."
He obviously just forget. It's a slight mistake, right?
ANDY SERWER, "FORTUNE" MAGAZINE: It's always a tough thing to explain, though, Soledad, that you didn't pay taxes on a $25 million bonus. Dennis Kozlowski rolling the dice. What is he thinking? What are his attorneys thinking? I guess he thinks he has no choice, but I think it's also a matter of ego. There is Dennis Kozlowski coming into court yesterday.
He is taking the stand today as well when prosecutors have a go at him. Yesterday was his own attorneys, and I thought some of the stuff was rather damning. They asked him just one point about, what about that computer on your desk? Did you use it? He goes, no, that was just for show. Well, that kind of makes you look like a phony, doesn't it?
And here comes the real salient point that Soledad was alluded to. They asked him about a $25 million payment to forgive a loan. And he said -- quote -- "I was just not thinking when I signed my tax return."
You know, it boggles the mind. And blame it on the accountant. That's like saying, I bought a house this year and I forgot. I just forget about it. I mean, it's the biggest thing of the year.
O'BRIEN: Why are they putting him on the stand?
JACK CAFFERTY, CNN ANCHOR: His attorney is doing that. It's what they call inoculating the jury, right?
SERWER: Yes.
CAFFERTY: Because you know when the prosecutor...
SERWER: That's true.
CAFFERTY: ... takes a shot at him, these are all going to be the first items of their list of things to have him explain. So, his lawyers want to bring them up first.
SERWER: And try to preempt it, in other words.
CAFFERTY: Exactly.
SERWER: Yes.
CAFFERTY: Maybe lesson the effect a little bit.
SERWER: Well, they might bring up the shower curtain and the party in Sardinia, because his attorneys did not do that.
O'BRIEN: Why are they putting him on the stand at all?
SERWER: I think he's insisting on it, and I think it's, you know, rolling the dice and it's a matter of ego. Ruth Jordan also showed up yesterday as well, juror number four, remember her?
CAFFERTY: Yes.
SERWER: Insisting on his innocence.
CAFFERTY: Why do they let her in the courtroom?
SERWER: I wondered about that as well. The judge was not delighted to see her there.
HEMMER: I bet.
CAFFERTY: I mean, who lets this woman in the courtroom?
SERWER: Yes.
O'BRIEN: A circus. All of these people are just a big, old circus. Andy, thank you very much.
CAFFERTY: He's toast.
SERWER: I think you're right.
HEMMER: We'll see.
CAFFERTY: Dennis Kozlowski is toast, just like Bernie Ebbers and the rest of those guys. Hopefully the same thing will happen to Ken Lay and that bunch.
President Bush holds a prime time news conference tonight to talk about Social Security and energy. Yesterday, he said the U.S. needs more nuclear power plants and more oil refineries. He suggested using closed military bases to build those oil refineries. Permits for the last nuclear power plant built in the United States were issued in 1979, and it's been three decades since the last refinery was built as well.
The question is: Will new oil refineries and nuclear power plants solve the United States' energy problems? We are getting a bunch of mail.
V. in Pine Bush, New York: "Such steps are crucial to our future. At least we have a president who is finally trying to do something about a major problem. Energy independence for America will change the entire world dynamic."
Phil in Oxnard, California: "It may be a start, but developing new sources of energy is a must. And what do you think those big energy companies think of that? Yes, we're screwed. We pay for costs, losses and CEO bonuses."
Jack in Louisiana: "The technology to eliminate fossil fuels already exists. Convert everything to use either vegetable oil in diesel engines and diesel generators, or develop cars that run on plain alcohol. The pollution generated by both of those fuels is mainly carbon dioxide, which be trapped in the steam emissions and recycled for other uses."
We're going to have a quiz on this stuff in the 9:00 hour.
O'BRIEN: That was good.
CAFFERTY: Tom in Minnesota: "Nice thought, but from the inception to the first drop of gasoline coming out seven years. Once again, we're behind the power curve. Whatever happened to pro-active management? Whoops, sorry about that. I realized we're talking about the federal bureaucracy."
And Doug in New Jersey writes: "New nukes and oil refineries feed the old energy business beast, and there is no substitute for conservation and new technology. It is time to move on."
HEMMER: On the subject of refineries, how many do we have in this country?
SERWER: A hundred and seventy something.
HEMMER: A 100? Boy, that's more than I thought.
SERWER: We had 300 about 20 or 30 years ago. We cut it in half. A hundred and forty-nine actually now.
HEMMER: And your point, Jack, a half-hour ago is that the refineries are running at capacity, right?
SERWER: Yes.
HEMMER: Which means if you get a fire at one of these refineries, that's where you see all of...
(CROSSTALK)
HEMMER: Ripple right through the market.
SERWER: And you know, they have been expanding these refineries. That's what they do, because they can't build new ones, as you were saying, Jack. So, they make them slightly bigger every year, all of them. They try to do that, but still that's...
HEMMER: A hundred and seventy?
SERWER: A hundred and forty-nine, I believe. We'll check. It's around 150.
HEMMER: Google. Google.
SERWER: No, I had it yesterday.
CAFFERTY: And one of the readers brought up, remember when Reagan took away the tax subsidies for solar energy? They had a huge solar energy plan, I think it was in Alabama.
SERWER: Yes.
CAFFERTY: And under Reagan, they said no more tax subsidies for those guys, and it killed the solar industry just like that. This particular person, I don't remember who it was, said, you know, maybe that's something Bush could look at, you know, providing tax incentives to develop that stuff.
SERWER: Right. We need to spend as much money on new sources as old sources. I think that's a good plan.
O'BRIEN: Right. Refineries can't be the be all, end all answers.
SERWER: Right.
O'BRIEN: It's not going to work. Jack thank you very much.
Well, it's never too late to plan for your retirement, but you know what? It's never too early either. Today in our special retirement series, some tips on what young people should do right now so they don't have to worry when they're older. That's ahead on AMERICAN MORNING.
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Aired April 28, 2005 - 07:29 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning, everybody. It's 7:30 here in New York. Good to have you along with us today. Good morning to you as well.
SOLEDAD O'BRIEN, CNN ANCHOR: And you.
HEMMER: Did you hear about this thing at the White House yesterday? They had a scare down there. They put the president down in that secret bunker below the White House. They put the vice president in a secure undisclosed location for a time. It did not last for long, just a couple of minutes. But still, it got our attention. And we're going to try and sort things out with our correspondent, Elaine Quijano, down at the White House in a moment here, why this happened, what did they hear, how serious was it. So, we'll get to that.
Also, the president later tonight, a prime time news conference for just the fourth time in his presidency. Two major issues on his mind. We'll look at the message the president plans to deliver. One certainly will be the news out of Iraq and why that is important today. So, we'll get to it.
O'BRIEN: Also this morning, a "CNN Security Watch." We're taking a look at whether airport security has actually taken a step backward since the days after 9/11. Mark Hatfield, the spokesman for the Transportation Security Administration, is joining us this morning, answering some of the critics' charges.
HEMMER: All right.
O'BRIEN: First, though, a look at the headlines with Carol Costello.
Good morning.
CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to all of you.
"Now in the News."
After three months of debate, Iraq has a new government. The National Assembly approving a transitional cabinet just a short time ago. The new government includes seven women. Some disputes over key ministry positions remain, though.
Palestinian leader Mahmoud Abbas is threatening to use an iron fist against anyone who violates a cease-fire with Israel. Abbas, who took office earlier this year, has been under pressure from Israel to control militants. This the toughest warning from the Palestinian leader so far.
In Washington, a dramatic step by House Republicans, clearing the way for an ethics probe of Majority Leader Tom DeLay. The House voted overwhelmingly last night to roll back changes they made in January to the Ethics Committee rules. Democrats charge they were designed to protect Republican leader DeLay from any investigation. A probe is expected to begin next week.
I told you about this missing Florida girl. Well, there is a happy ending this morning. The 12-year-old is being reunited with her family today. Margarita Aguilar Lopez was found in a Wal-Mart parking lot in South Carolina. Her apparent abductor is now being held for questioning. Police say details are sketchy, and it is possible the girl may have left willingly.
And a new celebrity romance is apparently blossoming. It is official. Forty-two-year-old actor Tom Cruise is dating Katie Holmes. She's 26. She is the former star of "Dawson's Creek." You do the math. She's 16 years younger. The actress reps confirms the two have been an item for a few weeks. Just enough for that icky factor.
HEMMER: Come on!
O'BRIEN: What? What's icky?
HEMMER: What's icky about that?
COSTELLO: What if it were the other way around? Well, I guess Demi Moore.
(CROSSTALK)
O'BRIEN: With Ashton Kutcher. He's like 20 minutes old.
HEMMER: Forty-two is the new 29, by the way, Carol.
COSTELLO: I find that icky, too. Pardon?
HEMMER: Forty-two is the new 29.
O'BRIEN: Why?
HEMMER: Go, Tom.
O'BRIEN: The closer I get to 42, the more I'm, like, practically a baby.
HEMMER: We'll be back with you in a moment. Thank you, Carol.
COSTELLO: I wonder what they talk about.
HEMMER: There's a lot to talk about. They're actors in Hollywood. They're very rich, successful people. COSTELLO: Yes.
HEMMER: See you.
President Bush right now is going prime time later tonight. All of this is coming as new poll numbers show sagging support for policies at the White House.
Our Elaine Quijano is live there from the North Lawn there.
What do we expect later tonight, Elaine? Good morning.
ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Bill.
Officials say that President Bush tonight will focus on energy and Social Security.
Now, of course, it was just yesterday that President Bush in a speech unveiled some new initiatives on the energy front, part of what the Bush administration says is a comprehensive energy strategy. At the same time, though, officials here acknowledge none of those proposals are designed to provide any immediate price relief, that they insist these high prices didn't happen overnight and can't be brought down overnight.
Now, also, we are expecting to hear the president talk more in- depth than he has in the past about Social Security. Of course, the president just this past week was in Galveston, Texas, stumping for changes to the Social Security system. And, in fact, on Sunday, that will mark the end of the official 60 cities in 60 days tour. And officials say that they are moving now away from the education phase, telling people about the problems facing Social Security, and the issue itself now moving into a legislative phase with lawmakers on Capitol Hill taking up the issue.
Tonight, White House spokesman Scott McClellan says that the president is expected to lay out in more detail ways that he thinks the problems of insolvency facing Social Security can be fixed.
The president, by the way, is holding this news conference, only the fourth prime time news conference in the White House East Room since he took office -- Bill.
HEMMER: Elaine, this thing that got our attention yesterday, the security scare, what can you tell us about it?
QUIJANO: Some tense moments yesterday. It was around 11:00 yesterday morning. And we have seen really nothing like this, the Secret Service uniformed agents taking up what appeared to be sort of positions and bringing their weapons out.
Apparently all this was prompted by a report of a possible airspace violation. They scrambled out, as you see here. Some tense moments. And inside the White House itself, both President Bush as well as Vice President Cheney were moved to secure locations. The president to the secure bunker. But we are told by military officials that there appeared to be some sort of anomaly on the radar, which prompted all of this. It turns out it was a false alarm. White House spokesman Scott McClellan saying that the president was only in the bunker for a short time, for a few minutes, but certainly some tense moments here yesterday -- Bill.
HEMMER: And it got our attention, as I mentioned, too. Elaine, thanks. Elaine Quijano there at the White House.
Later tonight, that press conference officially begins at 8:30 in the evening. We, however, have complete coverage and analysis throughout the evening tonight in prime time here on CNN -- Soledad.
O'BRIEN: In Maryland, charges have been filed in a serial arson case that had gone unsolved for nearly two years. The 50-year-old suspect was taken into custody on Wednesday. And a law enforcement official tells CNN that he confessed to setting at least 33 fires in the D.C. area.
Bob Franken has our report.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice over): Investigators say 50-year-old Thomas Sweatt is the one they've been looking for, for more than two years. Early last evening, he made a brief appearance in a suburban Maryland courtroom.
He is charged with setting five fires so far, suspected as being the man who had terrorized the three-state D.C. metropolitan area since at least as far back as March 2003. During that span, there were more than 40 arson cases unsolved, even after a special federal local task force was created.
MAYOR ANTHONY WILLIAMS, WASHINGTON: If you threaten, if you terrorize, if you turn lives upside down in our communities, we're going to hunt you down.
FRANKEN: Investigators swarmed over the Washington fast-food restaurant, where Sweatt worked, looking for more clues. The big break came when DNA evidence was collected from a pair of U.S. Marine trousers, recovered at the scene of a fire in suburban Virginia. It was compared to DNA from other locations.
THERESA STOOP, BUREAU OF ALCOHOL, TOBACCO AND FIREARMS: Nothing was overlooked from any of the scenes ever.
FRANKEN: In the last week, detectives focused on Sweatt, who voluntarily provided a DNA sample. And yesterday morning, the arrest. He has not been charged with murder -- yet, although in June of 2003, an elderly woman was killed in one of the fires.
CHIEF CHARLES RAMSEY, WASHINGTON POLICE: But it's also fortunate that we only had one fatality. We could have very easily had multiple fatalities. FRANKEN (on camera): All together, rewards added up to $100,000. No word on that yet. But officials that if they're right about their suspect, the reward is a safer community.
Bob Franken, CNN, Washington.
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O'BRIEN: The arson suspect, Thomas Sweatt, is due back in court on Friday for a detention hearing -- Bill.
HEMMER: It's about 23 minutes before the hour. A check of the weather now.
(WEATHER REPORT)
HEMMER: A great story here from Boston, this dog owner. He spent hours negotiating the return of his puppy, dog nap. Timothy Connors left Dakota in his pickup truck outside of a store on Monday. The truck and the pup were gone when he came out. He called his cell phone inside the truck, and guess what? The thief answered...
O'BRIEN: His first mistake.
HEMMER: Yes. Demanding 500 bucks or he'd kill the dog. Connors arranged a meeting, with police hiding out nearby. The dog-napper is nabbed by the detectives. No such thing as a smart criminal, right, Soledad? The whole story coming up in our 9:00 hour.
O'BRIEN: Oh, what a cute, little puppy.
HEMMER: We'll bring the dog on and talk to his owner. He probably wanted the dog back more than he wanted the pickup truck. Keep the car, give me the dog. Dakota is safe now.
O'BRIEN: What a happy ending. All good.
Well, it's going to be a dead-end for a herd of wandering buffaloes. Remember these pictures we showed you yesterday? Those are lawn chairs they were using to try to keep the buffalo back. It didn't work that well. Anyway, we told you about the bison. They escaped from that Maryland farm. They disrupted traffic. They were eventually brought to that tennis court where they were kind of rounded up. Their annoyed owner now says he's now fed up, and now he's going to send them to the slaughterhouse.
HEMMER: Whoa!
O'BRIEN: That's set up.
HEMMER: What happened to the tennis match? I guess that's over. We will find out very soon.
O'BRIEN: Yes.
HEMMER: Wow! In a moment here, a former CEO accused of looting his company of $600 million is now taking the stand. And the big buzz was over a special guest at the courthouse. Andy has that.
O'BRIEN: And do security screeners have the equipment they need to keep us all safe when we fly? We're going to talk to the TSA. That's up next on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: A jury has convicted a British man of trying to sell 50 shoulder-fire missiles to undercover agent he thought were terrorists. Hemuth Lakhani (ph) was found guilty of all charges stemming from a sting operation in 2003 involving several countries. The jury reached its verdict after a second day of deliberation. Lakhani's (ph) attorney claims his client was a victim of entrapment. Lakhani (ph) said he will appeal. The most serious charges carry up to 20 years in prison. He will be sentenced on the 8th of August.
O'BRIEN: Well, our "CNN Security Watch" this morning, turbulent times for the agency that is charged with -protecting our safety in this skies. A new government report criticizes the Transportation Security Administration, saying airport weapons screening is no more effective today than it was before 9/11. And a report to be released as soon as today reportedly says that private airport screeners do a better job than government screeners.
Joining us this morning is Mark Hatfield. He's the TSA spokesman.
Nice to see you. Thanks for joining us in person.
MARK HATFIELD, SPOKESMAN, TRANSPORTATION SECURITY ADMINISTRATION: It's good to be here.
O'BRIEN: Usually we're talking from a little bit of a distance. This new report, we've got a lot of reports to talk about this morning. Someone who has seen it, Congressman Mica, says that private screeners do a better job than the government screeners. Are you surprised by that? And what do you make of that report?
HATFIELD: Well, if you're referring to the GAO report, which is yet to be released -- it may come out tomorrow or next Monday -- every indicator that I have heard directly from GAO is that that is not the conclusion they make. So, I think that once the report comes out, we'll be able to see through all of the smoke and fog.
And I image that their report will be very consistent with the inspector general from homeland security's report, our own internal testing, all of which point to the fact that what we saw in the first year-and-a-half a lot measurable increase in screener performance, we see now a leveling off.
And so, the conclusions, which seem to be shared by all, are that the technology is now the issue we've got to address, because using the current tools at their disposal, we've hit sort of a ceiling in terms of the performance that we can expect out of screeners.
O'BRIEN: Before we talk about the tools, because there's a $30 million investment I know you want to talk about...
HATFIELD: Sure.
O'BRIEN: ... I want to talk about a report from last week which said that it was kind of a wash that government screeners and private screeners were not significantly better.
HATFIELD: Well, I think the key message here is that the federal screeners, those federal employees who are being directed by TSA management staff, as well as the private workforce at five airports across the country, are performing equally well, I would say.
In fact, the good news here is that we've created an option for airports that they can either choose to have the federal screeners, which the majority of them have, or they can take the model that we created in five airports and say, give us our private workforce provider under federal management. And the key thing here is the consistency you get from TSA federal security directors, who are the ones in charge and responsible and accountable to each of these airports.
O'BRIEN: Thirty million dollars in technology upgrades. What's being updated and how?
HATFIELD: Well, this 30 million that you're referring to is really the first full-scale deployment commitment that we have to the new trace portals. Those are the puff portals that you walk through that are high-tech and can detect the most insignificant, minute trace particles of explosives. We tested them at about 5 airports last year, went to another 10 airports. The results were good. We now have the ability to put them into the 40 largest airports in the country. About 150 more of these trace portals will go out in the next year.
O'BRIEN: Certainly TSA is not the only government agency that is counting every dime.
HATFIELD: Right.
O'BRIEN: And then you look at this other report called "Wasteful Spending" from the GAO as well. A $19 million crisis center. Let me just run down some of the costs. Half-a-million dollars for artwork and silk plants, $3,000 refrigerators, a gym, a fitness center. How does something like this happen when this is a government agency where somebody is trying to watch literally every penny, I think it's fair to say?
HATFIELD: Well, indeed. And we share that same frugality. And in the creation of that operation center, which was done on a very short timeframe, don't let some of these, I would say, embarrassing misspending throw you off. It's a critical center. It's very vital to the command and control capability that we have to react to a...
O'BRIEN: But the silk plants, I'm going to assume...
HATFIELD: Unnecessary. Unnecessary, a bad choice. And if you look at the way this was uncovered, it was our own internal audits that discovered we had a crook and a couple of jerks out there. Bad choices. The remediation was done internally. We brought in the inspector general to validate our findings. And, in fact, this one individual has been referred to the Justice Department for prosecution.
O'BRIEN: A quick last question for you. In the change in security, the most recent one that they now have posted on all of the airport, no more lighters, but you can bring matches. Why the difference? And what's been the reaction?
HATFIELD: Yes, that sounds like a bit of a disconnect. What it is...
O'BRIEN: A complete disconnect.
HATFIELD: ... it's a leftover from Hazmat, a hazardous material rule that the FAA imposed years ago which said that you can't put any matches or lighters in a checked bag. But, well, let's see, what's an acceptable level? That's four matchbooks and two lighters. That's a Hazmat rule. We now have a security rule that says no lighters at all. And we're considering banning the matches as an addition to that. So, it does make sense if you kind of peel through the top layer.
O'BRIEN: Mark Hatfield, nice to see you, as always. Thanks for talking with us. Appreciate it.
HATFIELD: Thanks.
O'BRIEN: You want to stay tuned to CNN day and night for the most reliable news about your security -- Bill.
HEMMER: In a moment here, if you're worried about maybe goofing up on your tax returns this year, try explaining how you missed a $25 million bonus. Andy has that in "Minding Your Business" right after this.
(COMMERCIAL BREAK)
O'BRIEN: Welcome back, everybody.
Former Tyco chief Dennis Kozlowski takes the stand in his retrial, tries to explain a $25 million hole in his 1999 tax return.
Andy Serwer is "Minding Your Business."
He obviously just forget. It's a slight mistake, right?
ANDY SERWER, "FORTUNE" MAGAZINE: It's always a tough thing to explain, though, Soledad, that you didn't pay taxes on a $25 million bonus. Dennis Kozlowski rolling the dice. What is he thinking? What are his attorneys thinking? I guess he thinks he has no choice, but I think it's also a matter of ego. There is Dennis Kozlowski coming into court yesterday.
He is taking the stand today as well when prosecutors have a go at him. Yesterday was his own attorneys, and I thought some of the stuff was rather damning. They asked him just one point about, what about that computer on your desk? Did you use it? He goes, no, that was just for show. Well, that kind of makes you look like a phony, doesn't it?
And here comes the real salient point that Soledad was alluded to. They asked him about a $25 million payment to forgive a loan. And he said -- quote -- "I was just not thinking when I signed my tax return."
You know, it boggles the mind. And blame it on the accountant. That's like saying, I bought a house this year and I forgot. I just forget about it. I mean, it's the biggest thing of the year.
O'BRIEN: Why are they putting him on the stand?
JACK CAFFERTY, CNN ANCHOR: His attorney is doing that. It's what they call inoculating the jury, right?
SERWER: Yes.
CAFFERTY: Because you know when the prosecutor...
SERWER: That's true.
CAFFERTY: ... takes a shot at him, these are all going to be the first items of their list of things to have him explain. So, his lawyers want to bring them up first.
SERWER: And try to preempt it, in other words.
CAFFERTY: Exactly.
SERWER: Yes.
CAFFERTY: Maybe lesson the effect a little bit.
SERWER: Well, they might bring up the shower curtain and the party in Sardinia, because his attorneys did not do that.
O'BRIEN: Why are they putting him on the stand at all?
SERWER: I think he's insisting on it, and I think it's, you know, rolling the dice and it's a matter of ego. Ruth Jordan also showed up yesterday as well, juror number four, remember her?
CAFFERTY: Yes.
SERWER: Insisting on his innocence.
CAFFERTY: Why do they let her in the courtroom?
SERWER: I wondered about that as well. The judge was not delighted to see her there.
HEMMER: I bet.
CAFFERTY: I mean, who lets this woman in the courtroom?
SERWER: Yes.
O'BRIEN: A circus. All of these people are just a big, old circus. Andy, thank you very much.
CAFFERTY: He's toast.
SERWER: I think you're right.
HEMMER: We'll see.
CAFFERTY: Dennis Kozlowski is toast, just like Bernie Ebbers and the rest of those guys. Hopefully the same thing will happen to Ken Lay and that bunch.
President Bush holds a prime time news conference tonight to talk about Social Security and energy. Yesterday, he said the U.S. needs more nuclear power plants and more oil refineries. He suggested using closed military bases to build those oil refineries. Permits for the last nuclear power plant built in the United States were issued in 1979, and it's been three decades since the last refinery was built as well.
The question is: Will new oil refineries and nuclear power plants solve the United States' energy problems? We are getting a bunch of mail.
V. in Pine Bush, New York: "Such steps are crucial to our future. At least we have a president who is finally trying to do something about a major problem. Energy independence for America will change the entire world dynamic."
Phil in Oxnard, California: "It may be a start, but developing new sources of energy is a must. And what do you think those big energy companies think of that? Yes, we're screwed. We pay for costs, losses and CEO bonuses."
Jack in Louisiana: "The technology to eliminate fossil fuels already exists. Convert everything to use either vegetable oil in diesel engines and diesel generators, or develop cars that run on plain alcohol. The pollution generated by both of those fuels is mainly carbon dioxide, which be trapped in the steam emissions and recycled for other uses."
We're going to have a quiz on this stuff in the 9:00 hour.
O'BRIEN: That was good.
CAFFERTY: Tom in Minnesota: "Nice thought, but from the inception to the first drop of gasoline coming out seven years. Once again, we're behind the power curve. Whatever happened to pro-active management? Whoops, sorry about that. I realized we're talking about the federal bureaucracy."
And Doug in New Jersey writes: "New nukes and oil refineries feed the old energy business beast, and there is no substitute for conservation and new technology. It is time to move on."
HEMMER: On the subject of refineries, how many do we have in this country?
SERWER: A hundred and seventy something.
HEMMER: A 100? Boy, that's more than I thought.
SERWER: We had 300 about 20 or 30 years ago. We cut it in half. A hundred and forty-nine actually now.
HEMMER: And your point, Jack, a half-hour ago is that the refineries are running at capacity, right?
SERWER: Yes.
HEMMER: Which means if you get a fire at one of these refineries, that's where you see all of...
(CROSSTALK)
HEMMER: Ripple right through the market.
SERWER: And you know, they have been expanding these refineries. That's what they do, because they can't build new ones, as you were saying, Jack. So, they make them slightly bigger every year, all of them. They try to do that, but still that's...
HEMMER: A hundred and seventy?
SERWER: A hundred and forty-nine, I believe. We'll check. It's around 150.
HEMMER: Google. Google.
SERWER: No, I had it yesterday.
CAFFERTY: And one of the readers brought up, remember when Reagan took away the tax subsidies for solar energy? They had a huge solar energy plan, I think it was in Alabama.
SERWER: Yes.
CAFFERTY: And under Reagan, they said no more tax subsidies for those guys, and it killed the solar industry just like that. This particular person, I don't remember who it was, said, you know, maybe that's something Bush could look at, you know, providing tax incentives to develop that stuff.
SERWER: Right. We need to spend as much money on new sources as old sources. I think that's a good plan.
O'BRIEN: Right. Refineries can't be the be all, end all answers.
SERWER: Right.
O'BRIEN: It's not going to work. Jack thank you very much.
Well, it's never too late to plan for your retirement, but you know what? It's never too early either. Today in our special retirement series, some tips on what young people should do right now so they don't have to worry when they're older. That's ahead on AMERICAN MORNING.
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