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American Morning

President Bush Visiting Georgia Today; Police Searching for Leads in Murder of Two Little Girls in Illinois

Aired May 10, 2005 - 07:00   ET

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


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


BILL HEMMER, CNN ANCHOR: Good morning. Just about an hour ago, history was made in the country of Georgia.
(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: As you build freedom in this country, you must know that seeds of liberty you're planting in Georgian soil are flowering across the globe.

(END VIDEO CLIP)

HEMMER: President Bush talking to a massive crowd there, delivering one message to Georgia and a different one to Russia.

Police searching for any leads in the murder of two little girls in Illinois. This morning, new details in that gruesome investigation there.

And two people are dead, 23 kids hurt, in this school bus accident from Monday. Now, there are serious new questions about school bus safety, on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, welcome everybody.

The president just departing Tbilisi. We have much more on his trip ahead this morning.

Also a lot more to tell you about those murders that shocked the town of Zion, Illinois. Two little girls, there were aged eight and nine, and they stabbed to death. Their bodies were found in a park after they went on a bike ride. We're going to have the latest on that investigation also, talk to the school superintendent about the reaction in the community. Heartbreak there.

HEMMER: Stunning, stunning story.

O'BRIEN: Oh, terrible.

HEMMER: Also coming up here, we showed these pictures on Monday. Police opening fire on a suspect in Compton, California. They shot like 80 or 90 bullets in this case. Some tough questions being asked today. The man was not armed. His SUV apparently was stopped. We'll talk to an L.A. County sheriff about what he's learning right now about this investigation. Got our attention yesterday, huh? Got it again today. More in a moment.

O'BRIEN: Hey, Jack.

JACK CAFFERTY, CNN ANCHOR: Good morning.

There are currently 47 million Americans who have no health insurance. You probably already knew that. What you may not know is beginning today, the federal government is going to make $1 billion available over the next three years for free medical care for illegal immigrants. Stuff defies gravity. We'll take a look.

O'BRIEN: Jack, thanks.

President Bush, as mentioned, visiting Georgia today, calling that once communist nation a beacon of liberty and democracy. Georgia's capital Tbilisi the last stop of Mr. Bush's four-country tour. His visit coming a day after attending Victory Day celebrations in Moscow, underscored tensions over Russian influence in former Soviet countries.

CNN's John King is in the Georgia capital this morning.

John, good morning to you.

Diplomatically a very delicate situation for the president. How did it go?

JOHN KING, CNN CORRESPONDENT: Well, make no mistake, Soledad, a president who often encounters protests when he travels, especially in Europe, was thrilled by the overwhelmingly positive welcome here.

Here is Liberty Square, 18 months ago the site of the Rose Revolution that toppled the corrupt government here in Georgia and brought to power what the president called today a model new democracy.

Now, as Mr. Bush delivered his remarks here, the government said the crowd was in the area of perhaps as many as 150,000 people. In celebrating this new democracy here on Russia's doorstep, Mr. Bush said the reformers were an example, not only in other countries once part of the Soviet Union, but, Mr. Bush said, the example set here was being seen and inspiring people as far away as the Middle East.

(BEGIN VIDEO CLIP)

BUSH: You're making many important contributions to freedom's cause, but your most important contribution is your example. In recent months, the world has marveled at the hopeful changes taking place from Baghdad to Beirut to Bisquet (ph). But before there was a purple revolution in Iraq, or an Orange Revolution in Ukraine, or a Cedar Revolution in Lebanon, there was the Rose Revolution in Georgia.

(END VIDEO CLIP)

KING: Now, Russia made perfectly clear it didn't like the fact that Mr. Bush ended his trip here in a former Soviet occupied state, began his trip in Latvia, another country once behind the Iron Curtain. Mr. Bush says it is his duty as the president of the United States to celebrate and promote young democracies around the world. Russia viewed it is a meddling in its backyard.

Mr. Bush while here also waded, but careful, into a lingering dispute between Georgia and Russia. There are still two Soviet-era military bases in this country. Russia has refused to honor an agreement, the Georgians say, to take its troops home. Mr. Bush saying he hopes Vladimir Putin eventually keeps that commitment, but he chose his words very carefully, saying only that Georgia's sovereignty should be respected.

So tension, Soledad, a bit of tension at least, between Mr. Bush and Mr. Putin. Although when he was in Moscow, Mr. Bush making the case that the two leaders have such a close personal bond, they can overcome those differences. White House officials say the key looking forward is whether President Putin delivers with deeds on recent promises of more democratic reforms in his country as well -- Soledad.

O'BRIEN: Yes, many people watching for that.

John King is in the Georgian capital this morning.

John, thanks.

Continuing overseas now, in Baghdad, more deadly insurgent attacks and more U.S. casualties. Two car bombs exploded just about an hour and a half apart. In the most serious attack, at least seven people, including three U.S. soldiers, were killed; 14 others were injured. It was a suicide mission that appears to have targeted a U.S. military convoy.

Meanwhile, coalition forces battle insurgents in western Iraq's Anbar province for a third day. The fighting is taking place near the Syrian border, where foreign insurgents are said to be hiding out. At least three Marines have died in that offensive so far. More than 100 insurgents, though, have reportedly been killed -- Bill.

HEMMER: Back in this country now at five minutes past the hour, searching for clues today in a small town north of Chicago. Two little girls there have been murdered. "The Chicago Tribune" reporting today that police have interviewed a relative of one of the victims. And they're also taking clothing worn by some of the family members.

However, they also add that they still do not have any solid leads in this case. The bodies of 8-year-old Laura Hobbs and 9-year- old Crystal Tobias were found Monday morning in a park in Zion, Illinois, and police say they were stabbed to death, after possibly headed to the park for a picnic.

Chris Lawrence is live in Zion this morning. What a tough, tough story it is there -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: It is indeed, Bill. And we now know that police have questioned and are continuing to question several people, including several members of both families. Now, that in and of itself is not that unusual in a case like this.

We also know that the park where the girls were found was a place that some parents warned their kids to avoid.

It's a pretty scary and nervous time here. When the kids arrived here at school in a couple hours, a lot of their parents will be personally walking them in.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): As late as Sunday afternoon, neighbors saw Laura Hobbs and Crystal Tobias riding their books through the small town of Zion. But they never came home. On Monday morning, their bodies were found in a nearby park, stabbed to death, an 8-year-old and a 9-year-old murdered.

EMILY HOLLABAUGH, EMILY'S GRANDMOTHER: I have a lot of questions, but it's just mostly rage at whoever could do this to two little girls?

LAWRENCE: Laura's grandmother says the little girls were second- graders. Their friends never had to deal with something like this.

This little girl couldn't help crying as she left some flowers where the two bodies were found.

UNIDENTIFIED FEMALE: I knew Crystal like she was my own daughter.

LAWRENCE: Dora Florek says neighbors saw both girls in her yard Sunday, swinging in a hammock. They were waiting to play with Dora's daughter, but finally left when she didn't come home.

DORA FLOREK, NEIGHBOR: I'm just thinking what if, if we were home. The girls would have been safe.

LAWRENCE: Police say a man out for a walk discovered the bodies at this park, way off the bike path where the woods are thick. Since then, other parents have been escorting their kids to and from school. Right now, Zion Police have no leads.

CHIEF DOUG MALCOLM, ZION POLICE: We do have two murdered children and we don't have anybody in custody, I'll say that.

LAWRENCE: That's why Laura's grandmother holds up her picture.

HOLLABAUGH: Find the bastards that done this. Hopefully, somebody saw him.

LAWRENCE: She couldn't finish her sentence. And so far, nobody can tell her who did this or why.

(END VIDEOTAPE) LAWRENCE: Now, there is a meeting tonight where the police will update the community on what they know, and parents can ask some more of the questions. One of the biggest has already been answered by the coroner who yesterday said that there was no evidence of sexual assault -- Bill.

HEMMER: Chris Lawrence live in Zion, Illinois. Chris, thanks.

(BEGIN VIDEOTAPE)

HEMMER: Connie Collins, a superintendent at Elementary School Six in Zion, Illinois. That's where Laura and Crystal were students.

And how are we to even begin to understand this tragedy, Connie?

CONNIE COLLINS: It's very difficult to begin to understand something like this. It's something that was not expected. In a community like this, we have never had this type of experience, so it's been very difficult for everyone.

HEMMER: Your town has 23,000 people. In the year 2003, not a single person was reported murdered in your town. Yet, it's my understanding that this part of Zion, it's a ravine or its a wooded area. Kids were told to stay away from that area. Why would that be?

COLLINS: Well, just because of the safety reasons. It's out of sight of many adults who might possibly be around the kids or monitoring them. So therefore, just wanting them to be in a safe environment. We try to keep them in the open.

HEMMER: How far away from the school is this area?

COLLINS: It's not very far. Probably a few blocks.

HEMMER: Had there been crimes commit there had in the past? Is that why the warnings would go out?

COLLINS: I'm not aware of any crimes that have been committed there.

HEMMER: Yesterday, we were told the children were kept at school until adults came to pick them up. Does that same rule apply today?

COLLINS: The same rule does apply today. Many of our parents here, again, because they are concerned and really don't know what's happening with the person who committed the crimes, and they are anxious to come and pick their children up at the end of the day.

HEMMER: Boy, I can only imagine that. Is school open today, by the way?

COLLINS: Yes, school is open.

HEMMER: I understand later tonight, there's some sort of community-wide meeting where parents can come and ask questions. How will that work later tonight? COLLINS: We will have a meeting at 6:00 p.m. tonight, and we will have community resources, as well as faith-based organizations, as well as school personnel, members of our crisis team, who will be available to answer questions, to share techniques, what to look for, when children are dealing with a difficult situation like this. We will also have a member of the Zion Police Department who will be here to give an update to the parents and the community.

HEMMER: Could you even begin to make sense of this? I imagine this community must be in terrible shock.

COLLINS: It is in terrible shock. And when you think in terms of something like this occurring with children, I think it's difficult for everybody to understand. With innocent young girls, no one would expect anything like this to occur.

HEMMER: What can you, as superintendent, tell the classmates?

COLLINS: We can tell the classmates -- fortunately, in talking with the classroom teacher, she shared with me that the children recently read a couple of books on loss. "Charlotte's Web," as well as "The Taste of Blackberries." And the children had an opportunity to discuss their feelings and talk about what it meant to lose someone and to share with each other. I think it's wonderful that they have had that experience already, and I think that they will be able to use those books as a tool to help the children to understand what has occurred now.

HEMMER: My best to you, and everyone up there in Zion, Illinois.

COLLINS: Thank you.

HEMMER: Connie Collins, the superintendent. Thank you.

(END VIDEOTAPE)

(WEATHER REPORT)

HEMMER: In a moment here, a follow-up to the shootout in Compton, California. Police fired more than 90 times. The suspect apparently unarmed in the end. The latest in that investigation out of California.

O'BRIEN: Also, three school bus accidents in less than 24 hours, two of them deadly. We're going to take a look at renewed concerns over children's safety.

HEMMER: Also the inside scoop on those falling gas prices. One expert revealing the factors behind the drop and the role that politics played in it. All that's ahead on AMERICAN MORNING. Back in a moment.

(COMMERCIAL BREAK)

O'BRIEN: We first showed you this shocking videotape Monday, the sounds of rapid gunfire on a street in Los Angeles. One police official saying as many as 95 gunshots were fired. Well, today, an investigators are trying to find out how a car chase ended with an unarmed suspect and a deputy sheriff wounded in the barrage. The suspect, shot at least four times, is now hospitalized in stable condition. The injured deputy, only slightly hurt, most likely by friendly fire.

L.A. County Sheriff Lee Baca is in Monterey Park, in California this morning.

Nice to see you, Sheriff Baca. Thanks for talking with us this morning.

SHERIFF LEE BACA, L.A. COUNTY: Yes, good morning, Soledad.

O'BRIEN: Can you walk me through the circumstances? What actually brought the deputies to the scene?

BACA: Well, what brought the deputies to the scene were gunshots fired in the neighborhood where eventually the suspect ended up. He had been circling the block for about four hours in a strange manner. Calls came in in that respect. Gunshots were heard. Twelve minutes later after deputies chased him for about 10 minutes, you saw what we saw in the video.

O'BRIEN: The deputies opened fire on the vehicle. When I look at that videotape, it looks to me as if the vehicle vehicle's actually stopped. Was that the case, that they were opening fire on a vehicle that was stopped?

BACA: Well, the video has a segment that shows the vehicle stopped. The explanation that I'm receiving preliminarily is that the vehicle was moving backward toward the deputies, and that the vehicle had been attempting earlier, prior to that stopped position shown, to get out of that containment that it was in.

O'BRIEN: How many shots were fired? We heard some reports of 95 shots. Is that about right?

BACA: No, I think it's more in the area of about 120 shots.

It's interesting to note that even as the video shows, there are simultaneous shots being fired independently, meaning the noise that you were hearing implies there might be even less, but the reality is it's around 120.

O'BRIEN: Yesterday when you were briefing reporters, you talked about the conditions under which deputies are trained to shoot, and you said, obviously, in self-defense and in the protection of citizens. Do you feel now -- and I know there's an investigation under way, obviously -- do you feel right now, though, that those conditions were met to open fire in an urban neighborhood?

BACA: Well, I have to say this, that we have an extensive evaluation process. The district attorney's office is looking at this, our Office of Independent Review. We have a training component regarding tactics. Clearly, there's questions that need to be answered.

I'll say this, though. In our system, in Los Angeles County, we have one-person cars. Once a person is contained, and in this case this vehicle was not fully contained, the communications questions have to be answered. How do people who work in one-person cars coordinate with each other verbally in an ongoing scenario that has high intensity? That's the biggest question that I want to get the answer to.

O'BRIEN: As we mentioned...

BACA: I don't think it's very easy, is what I'm saying.

O'BRIEN: As we mentioned, deputy injured. The suspect injured. Homeowners were showing off bullet holes in their homes. Nobody was killed. Pretty remarkable, you have to say.

BACA: Very remarkable, and thank God for that. And I'm glad that the suspect is not seriously injured, and his wounds appear to be minor.

O'BRIEN: And what's he being charged with, or is he being charged with anything at this point?

BACA: Well, I think first of all, evading the police is a charge in itself. The vehicle backing into three deputies, which started the gunfire, is another aspect of a charge.

The man has already admitted to us that he was under crack methamphetamine and had smoked it and was under the influence as driving his vehicle.

It doesn't appear that the gunshots at the location -- there were .40 caliber shell casings on the street, about 12 of them -- was related to his circling the block. So more will be found out as we get further into the investigation.

O'BRIEN: Sheriff Baca, thanks for talking with us this morning. Certainly appreciate your time.

BACA: You're welcome.

O'BRIEN: Police identify the injured suspect as 44-year-old Winston Hayes, who they say has an arrest record for drug and assaults -- Bill.

HEMMER: In a moment here, Soledad, a new report on the big mistake you could be making with your own 401(k). Andy's "Minding Your Business" in a moment here.

Back after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Time to take stock in your retirement plan. Sounds like a pretty good idea right now, especially with the way the markets have been going lately, up and down.

Market preview with Andy Serwer, "Minding Your Business."

Good morning, Drew.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, Bill.

The good news is that more and more of us are participating in 401(k)s. Seventy percent of those eligible are now putting money into their retirement plans. And you can see here, that's up, up and up over the past couple years. This according to Hewitt Associates.

The bad news is, despite Enron in 2001 and WorldCom in 2002, more than one in four workers have 50 percent or more in their company's stock, and that is not a good thing. Because if your company has a downturn and you get fired, and then the company goes bankrupt, well then you're in really bad shape. The folks at Hewett suggest, for instance, and other experts say, that only 10 percent to 20 percent of your assets should be in your own company's stock. These plans now allow you to diversify out of your company's stock, and you really should take a look at that and do that.

O'BRIEN: All those high school students e-mailing Jack yesterday, start this thing as young as you can.

SERWER: That's right.

O'BRIEN: Age 25, or even less if you can.

CAFFERTY: And you're go out to their house and help them with their financial planning if they need it, right, Andy?

SERWER: Oh, no, no, no. Bill will. I mean, he's the one who suggested it.

CAFFERTY: Let's talk about the markets yesterday another good day for investors yesterday. We've been up and up over the past couple of days and weeks, despite higher oil prices. Markets rallied a bit yesterday. Merger news boosting stocks.

This morning, however, futures are lower. So we'll be watching that for you.

HEMMER: Oh, it's early. Optimism springs.

Thank you, Andy.

SERWER: All right, we'll try. You're welcome.

O'BRIEN: I love when Jack's talking about illegal immigration. You get so angry. By the end of the morning, you're going to be -- you're starting here; you're going to be here. What are you talking about? CAFFERTY: Here's a little item that will burn your breakfast toast.

O'BRIEN: You see?

CAFFERTY: Beginning today, the federal government -- that would be us, the taxpayers -- will pay hospitals and doctors $1 billion over the next three years to provide free emergency medical care to illegal immigrants. This is in addition to the money that individual states already spend for medical care for illegals. States requested the additional federal funds because providing medical care for illegal immigrants has become a huge financial burden for many hospitals. California alone, for example, spends $500 million per year on medical care for illegal aliens.

This comes at a time when 47 million of our own citizens have no medical insurance. Makes a lot of sense to me. Here's the question: Should the government pay hospitals and doctors for providing emergency care to illegal immigrants? AM@CNN.com.

O'BRIEN: May I throw something out there now, or should I wait till next time? Here's a thought, illegal immigrants, often obviously the poorest members of society, spread disease. And there is an upside to having medical treatment for people who can pass along tuberculosis on the subway trains, SARS.

CAFFERTY: Can I throw in a thought?

O'BRIEN: Of course you may.

CAFFERTY: What if we didn't let them into the country to begin with? Then they wouldn't be here to spread anything, would they?

O'BRIEN: Absolutely true.

CAFFERTY: There you go.

O'BRIEN: That's a whole other issue.

CAFFERTY: No, it's not. No, it's not another issue.

O'BRIEN: People who are here in this country. SARS is a way.

CAFFERTY: The failure to enforce immigration laws that exist in this country is what's contributing to the very thing that we're sitting here talking about. It's not another issue at all.

O'BRIEN: I think it is. I dare to disagree with you.

HEMMER: How brown is the toast, Andy?

SERWER: It's burning. I can smell it.

HEMMER: It's only 7:30. Plenty of time.

O'BRIEN: Looking forward to this debate with Mr. Cafferty. Still to come this morning, an inside look at the real reasons for falling gas prices. Just how much is political? A look at that ahead on AMERICAN MORNING.

Stay with us.

(COMMERCIAL BREAK)

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Aired May 10, 2005 - 07:00   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. Just about an hour ago, history was made in the country of Georgia.
(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: As you build freedom in this country, you must know that seeds of liberty you're planting in Georgian soil are flowering across the globe.

(END VIDEO CLIP)

HEMMER: President Bush talking to a massive crowd there, delivering one message to Georgia and a different one to Russia.

Police searching for any leads in the murder of two little girls in Illinois. This morning, new details in that gruesome investigation there.

And two people are dead, 23 kids hurt, in this school bus accident from Monday. Now, there are serious new questions about school bus safety, on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, welcome everybody.

The president just departing Tbilisi. We have much more on his trip ahead this morning.

Also a lot more to tell you about those murders that shocked the town of Zion, Illinois. Two little girls, there were aged eight and nine, and they stabbed to death. Their bodies were found in a park after they went on a bike ride. We're going to have the latest on that investigation also, talk to the school superintendent about the reaction in the community. Heartbreak there.

HEMMER: Stunning, stunning story.

O'BRIEN: Oh, terrible.

HEMMER: Also coming up here, we showed these pictures on Monday. Police opening fire on a suspect in Compton, California. They shot like 80 or 90 bullets in this case. Some tough questions being asked today. The man was not armed. His SUV apparently was stopped. We'll talk to an L.A. County sheriff about what he's learning right now about this investigation. Got our attention yesterday, huh? Got it again today. More in a moment.

O'BRIEN: Hey, Jack.

JACK CAFFERTY, CNN ANCHOR: Good morning.

There are currently 47 million Americans who have no health insurance. You probably already knew that. What you may not know is beginning today, the federal government is going to make $1 billion available over the next three years for free medical care for illegal immigrants. Stuff defies gravity. We'll take a look.

O'BRIEN: Jack, thanks.

President Bush, as mentioned, visiting Georgia today, calling that once communist nation a beacon of liberty and democracy. Georgia's capital Tbilisi the last stop of Mr. Bush's four-country tour. His visit coming a day after attending Victory Day celebrations in Moscow, underscored tensions over Russian influence in former Soviet countries.

CNN's John King is in the Georgia capital this morning.

John, good morning to you.

Diplomatically a very delicate situation for the president. How did it go?

JOHN KING, CNN CORRESPONDENT: Well, make no mistake, Soledad, a president who often encounters protests when he travels, especially in Europe, was thrilled by the overwhelmingly positive welcome here.

Here is Liberty Square, 18 months ago the site of the Rose Revolution that toppled the corrupt government here in Georgia and brought to power what the president called today a model new democracy.

Now, as Mr. Bush delivered his remarks here, the government said the crowd was in the area of perhaps as many as 150,000 people. In celebrating this new democracy here on Russia's doorstep, Mr. Bush said the reformers were an example, not only in other countries once part of the Soviet Union, but, Mr. Bush said, the example set here was being seen and inspiring people as far away as the Middle East.

(BEGIN VIDEO CLIP)

BUSH: You're making many important contributions to freedom's cause, but your most important contribution is your example. In recent months, the world has marveled at the hopeful changes taking place from Baghdad to Beirut to Bisquet (ph). But before there was a purple revolution in Iraq, or an Orange Revolution in Ukraine, or a Cedar Revolution in Lebanon, there was the Rose Revolution in Georgia.

(END VIDEO CLIP)

KING: Now, Russia made perfectly clear it didn't like the fact that Mr. Bush ended his trip here in a former Soviet occupied state, began his trip in Latvia, another country once behind the Iron Curtain. Mr. Bush says it is his duty as the president of the United States to celebrate and promote young democracies around the world. Russia viewed it is a meddling in its backyard.

Mr. Bush while here also waded, but careful, into a lingering dispute between Georgia and Russia. There are still two Soviet-era military bases in this country. Russia has refused to honor an agreement, the Georgians say, to take its troops home. Mr. Bush saying he hopes Vladimir Putin eventually keeps that commitment, but he chose his words very carefully, saying only that Georgia's sovereignty should be respected.

So tension, Soledad, a bit of tension at least, between Mr. Bush and Mr. Putin. Although when he was in Moscow, Mr. Bush making the case that the two leaders have such a close personal bond, they can overcome those differences. White House officials say the key looking forward is whether President Putin delivers with deeds on recent promises of more democratic reforms in his country as well -- Soledad.

O'BRIEN: Yes, many people watching for that.

John King is in the Georgian capital this morning.

John, thanks.

Continuing overseas now, in Baghdad, more deadly insurgent attacks and more U.S. casualties. Two car bombs exploded just about an hour and a half apart. In the most serious attack, at least seven people, including three U.S. soldiers, were killed; 14 others were injured. It was a suicide mission that appears to have targeted a U.S. military convoy.

Meanwhile, coalition forces battle insurgents in western Iraq's Anbar province for a third day. The fighting is taking place near the Syrian border, where foreign insurgents are said to be hiding out. At least three Marines have died in that offensive so far. More than 100 insurgents, though, have reportedly been killed -- Bill.

HEMMER: Back in this country now at five minutes past the hour, searching for clues today in a small town north of Chicago. Two little girls there have been murdered. "The Chicago Tribune" reporting today that police have interviewed a relative of one of the victims. And they're also taking clothing worn by some of the family members.

However, they also add that they still do not have any solid leads in this case. The bodies of 8-year-old Laura Hobbs and 9-year- old Crystal Tobias were found Monday morning in a park in Zion, Illinois, and police say they were stabbed to death, after possibly headed to the park for a picnic.

Chris Lawrence is live in Zion this morning. What a tough, tough story it is there -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: It is indeed, Bill. And we now know that police have questioned and are continuing to question several people, including several members of both families. Now, that in and of itself is not that unusual in a case like this.

We also know that the park where the girls were found was a place that some parents warned their kids to avoid.

It's a pretty scary and nervous time here. When the kids arrived here at school in a couple hours, a lot of their parents will be personally walking them in.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): As late as Sunday afternoon, neighbors saw Laura Hobbs and Crystal Tobias riding their books through the small town of Zion. But they never came home. On Monday morning, their bodies were found in a nearby park, stabbed to death, an 8-year-old and a 9-year-old murdered.

EMILY HOLLABAUGH, EMILY'S GRANDMOTHER: I have a lot of questions, but it's just mostly rage at whoever could do this to two little girls?

LAWRENCE: Laura's grandmother says the little girls were second- graders. Their friends never had to deal with something like this.

This little girl couldn't help crying as she left some flowers where the two bodies were found.

UNIDENTIFIED FEMALE: I knew Crystal like she was my own daughter.

LAWRENCE: Dora Florek says neighbors saw both girls in her yard Sunday, swinging in a hammock. They were waiting to play with Dora's daughter, but finally left when she didn't come home.

DORA FLOREK, NEIGHBOR: I'm just thinking what if, if we were home. The girls would have been safe.

LAWRENCE: Police say a man out for a walk discovered the bodies at this park, way off the bike path where the woods are thick. Since then, other parents have been escorting their kids to and from school. Right now, Zion Police have no leads.

CHIEF DOUG MALCOLM, ZION POLICE: We do have two murdered children and we don't have anybody in custody, I'll say that.

LAWRENCE: That's why Laura's grandmother holds up her picture.

HOLLABAUGH: Find the bastards that done this. Hopefully, somebody saw him.

LAWRENCE: She couldn't finish her sentence. And so far, nobody can tell her who did this or why.

(END VIDEOTAPE) LAWRENCE: Now, there is a meeting tonight where the police will update the community on what they know, and parents can ask some more of the questions. One of the biggest has already been answered by the coroner who yesterday said that there was no evidence of sexual assault -- Bill.

HEMMER: Chris Lawrence live in Zion, Illinois. Chris, thanks.

(BEGIN VIDEOTAPE)

HEMMER: Connie Collins, a superintendent at Elementary School Six in Zion, Illinois. That's where Laura and Crystal were students.

And how are we to even begin to understand this tragedy, Connie?

CONNIE COLLINS: It's very difficult to begin to understand something like this. It's something that was not expected. In a community like this, we have never had this type of experience, so it's been very difficult for everyone.

HEMMER: Your town has 23,000 people. In the year 2003, not a single person was reported murdered in your town. Yet, it's my understanding that this part of Zion, it's a ravine or its a wooded area. Kids were told to stay away from that area. Why would that be?

COLLINS: Well, just because of the safety reasons. It's out of sight of many adults who might possibly be around the kids or monitoring them. So therefore, just wanting them to be in a safe environment. We try to keep them in the open.

HEMMER: How far away from the school is this area?

COLLINS: It's not very far. Probably a few blocks.

HEMMER: Had there been crimes commit there had in the past? Is that why the warnings would go out?

COLLINS: I'm not aware of any crimes that have been committed there.

HEMMER: Yesterday, we were told the children were kept at school until adults came to pick them up. Does that same rule apply today?

COLLINS: The same rule does apply today. Many of our parents here, again, because they are concerned and really don't know what's happening with the person who committed the crimes, and they are anxious to come and pick their children up at the end of the day.

HEMMER: Boy, I can only imagine that. Is school open today, by the way?

COLLINS: Yes, school is open.

HEMMER: I understand later tonight, there's some sort of community-wide meeting where parents can come and ask questions. How will that work later tonight? COLLINS: We will have a meeting at 6:00 p.m. tonight, and we will have community resources, as well as faith-based organizations, as well as school personnel, members of our crisis team, who will be available to answer questions, to share techniques, what to look for, when children are dealing with a difficult situation like this. We will also have a member of the Zion Police Department who will be here to give an update to the parents and the community.

HEMMER: Could you even begin to make sense of this? I imagine this community must be in terrible shock.

COLLINS: It is in terrible shock. And when you think in terms of something like this occurring with children, I think it's difficult for everybody to understand. With innocent young girls, no one would expect anything like this to occur.

HEMMER: What can you, as superintendent, tell the classmates?

COLLINS: We can tell the classmates -- fortunately, in talking with the classroom teacher, she shared with me that the children recently read a couple of books on loss. "Charlotte's Web," as well as "The Taste of Blackberries." And the children had an opportunity to discuss their feelings and talk about what it meant to lose someone and to share with each other. I think it's wonderful that they have had that experience already, and I think that they will be able to use those books as a tool to help the children to understand what has occurred now.

HEMMER: My best to you, and everyone up there in Zion, Illinois.

COLLINS: Thank you.

HEMMER: Connie Collins, the superintendent. Thank you.

(END VIDEOTAPE)

(WEATHER REPORT)

HEMMER: In a moment here, a follow-up to the shootout in Compton, California. Police fired more than 90 times. The suspect apparently unarmed in the end. The latest in that investigation out of California.

O'BRIEN: Also, three school bus accidents in less than 24 hours, two of them deadly. We're going to take a look at renewed concerns over children's safety.

HEMMER: Also the inside scoop on those falling gas prices. One expert revealing the factors behind the drop and the role that politics played in it. All that's ahead on AMERICAN MORNING. Back in a moment.

(COMMERCIAL BREAK)

O'BRIEN: We first showed you this shocking videotape Monday, the sounds of rapid gunfire on a street in Los Angeles. One police official saying as many as 95 gunshots were fired. Well, today, an investigators are trying to find out how a car chase ended with an unarmed suspect and a deputy sheriff wounded in the barrage. The suspect, shot at least four times, is now hospitalized in stable condition. The injured deputy, only slightly hurt, most likely by friendly fire.

L.A. County Sheriff Lee Baca is in Monterey Park, in California this morning.

Nice to see you, Sheriff Baca. Thanks for talking with us this morning.

SHERIFF LEE BACA, L.A. COUNTY: Yes, good morning, Soledad.

O'BRIEN: Can you walk me through the circumstances? What actually brought the deputies to the scene?

BACA: Well, what brought the deputies to the scene were gunshots fired in the neighborhood where eventually the suspect ended up. He had been circling the block for about four hours in a strange manner. Calls came in in that respect. Gunshots were heard. Twelve minutes later after deputies chased him for about 10 minutes, you saw what we saw in the video.

O'BRIEN: The deputies opened fire on the vehicle. When I look at that videotape, it looks to me as if the vehicle vehicle's actually stopped. Was that the case, that they were opening fire on a vehicle that was stopped?

BACA: Well, the video has a segment that shows the vehicle stopped. The explanation that I'm receiving preliminarily is that the vehicle was moving backward toward the deputies, and that the vehicle had been attempting earlier, prior to that stopped position shown, to get out of that containment that it was in.

O'BRIEN: How many shots were fired? We heard some reports of 95 shots. Is that about right?

BACA: No, I think it's more in the area of about 120 shots.

It's interesting to note that even as the video shows, there are simultaneous shots being fired independently, meaning the noise that you were hearing implies there might be even less, but the reality is it's around 120.

O'BRIEN: Yesterday when you were briefing reporters, you talked about the conditions under which deputies are trained to shoot, and you said, obviously, in self-defense and in the protection of citizens. Do you feel now -- and I know there's an investigation under way, obviously -- do you feel right now, though, that those conditions were met to open fire in an urban neighborhood?

BACA: Well, I have to say this, that we have an extensive evaluation process. The district attorney's office is looking at this, our Office of Independent Review. We have a training component regarding tactics. Clearly, there's questions that need to be answered.

I'll say this, though. In our system, in Los Angeles County, we have one-person cars. Once a person is contained, and in this case this vehicle was not fully contained, the communications questions have to be answered. How do people who work in one-person cars coordinate with each other verbally in an ongoing scenario that has high intensity? That's the biggest question that I want to get the answer to.

O'BRIEN: As we mentioned...

BACA: I don't think it's very easy, is what I'm saying.

O'BRIEN: As we mentioned, deputy injured. The suspect injured. Homeowners were showing off bullet holes in their homes. Nobody was killed. Pretty remarkable, you have to say.

BACA: Very remarkable, and thank God for that. And I'm glad that the suspect is not seriously injured, and his wounds appear to be minor.

O'BRIEN: And what's he being charged with, or is he being charged with anything at this point?

BACA: Well, I think first of all, evading the police is a charge in itself. The vehicle backing into three deputies, which started the gunfire, is another aspect of a charge.

The man has already admitted to us that he was under crack methamphetamine and had smoked it and was under the influence as driving his vehicle.

It doesn't appear that the gunshots at the location -- there were .40 caliber shell casings on the street, about 12 of them -- was related to his circling the block. So more will be found out as we get further into the investigation.

O'BRIEN: Sheriff Baca, thanks for talking with us this morning. Certainly appreciate your time.

BACA: You're welcome.

O'BRIEN: Police identify the injured suspect as 44-year-old Winston Hayes, who they say has an arrest record for drug and assaults -- Bill.

HEMMER: In a moment here, Soledad, a new report on the big mistake you could be making with your own 401(k). Andy's "Minding Your Business" in a moment here.

Back after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Time to take stock in your retirement plan. Sounds like a pretty good idea right now, especially with the way the markets have been going lately, up and down.

Market preview with Andy Serwer, "Minding Your Business."

Good morning, Drew.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, Bill.

The good news is that more and more of us are participating in 401(k)s. Seventy percent of those eligible are now putting money into their retirement plans. And you can see here, that's up, up and up over the past couple years. This according to Hewitt Associates.

The bad news is, despite Enron in 2001 and WorldCom in 2002, more than one in four workers have 50 percent or more in their company's stock, and that is not a good thing. Because if your company has a downturn and you get fired, and then the company goes bankrupt, well then you're in really bad shape. The folks at Hewett suggest, for instance, and other experts say, that only 10 percent to 20 percent of your assets should be in your own company's stock. These plans now allow you to diversify out of your company's stock, and you really should take a look at that and do that.

O'BRIEN: All those high school students e-mailing Jack yesterday, start this thing as young as you can.

SERWER: That's right.

O'BRIEN: Age 25, or even less if you can.

CAFFERTY: And you're go out to their house and help them with their financial planning if they need it, right, Andy?

SERWER: Oh, no, no, no. Bill will. I mean, he's the one who suggested it.

CAFFERTY: Let's talk about the markets yesterday another good day for investors yesterday. We've been up and up over the past couple of days and weeks, despite higher oil prices. Markets rallied a bit yesterday. Merger news boosting stocks.

This morning, however, futures are lower. So we'll be watching that for you.

HEMMER: Oh, it's early. Optimism springs.

Thank you, Andy.

SERWER: All right, we'll try. You're welcome.

O'BRIEN: I love when Jack's talking about illegal immigration. You get so angry. By the end of the morning, you're going to be -- you're starting here; you're going to be here. What are you talking about? CAFFERTY: Here's a little item that will burn your breakfast toast.

O'BRIEN: You see?

CAFFERTY: Beginning today, the federal government -- that would be us, the taxpayers -- will pay hospitals and doctors $1 billion over the next three years to provide free emergency medical care to illegal immigrants. This is in addition to the money that individual states already spend for medical care for illegals. States requested the additional federal funds because providing medical care for illegal immigrants has become a huge financial burden for many hospitals. California alone, for example, spends $500 million per year on medical care for illegal aliens.

This comes at a time when 47 million of our own citizens have no medical insurance. Makes a lot of sense to me. Here's the question: Should the government pay hospitals and doctors for providing emergency care to illegal immigrants? AM@CNN.com.

O'BRIEN: May I throw something out there now, or should I wait till next time? Here's a thought, illegal immigrants, often obviously the poorest members of society, spread disease. And there is an upside to having medical treatment for people who can pass along tuberculosis on the subway trains, SARS.

CAFFERTY: Can I throw in a thought?

O'BRIEN: Of course you may.

CAFFERTY: What if we didn't let them into the country to begin with? Then they wouldn't be here to spread anything, would they?

O'BRIEN: Absolutely true.

CAFFERTY: There you go.

O'BRIEN: That's a whole other issue.

CAFFERTY: No, it's not. No, it's not another issue.

O'BRIEN: People who are here in this country. SARS is a way.

CAFFERTY: The failure to enforce immigration laws that exist in this country is what's contributing to the very thing that we're sitting here talking about. It's not another issue at all.

O'BRIEN: I think it is. I dare to disagree with you.

HEMMER: How brown is the toast, Andy?

SERWER: It's burning. I can smell it.

HEMMER: It's only 7:30. Plenty of time.

O'BRIEN: Looking forward to this debate with Mr. Cafferty. Still to come this morning, an inside look at the real reasons for falling gas prices. Just how much is political? A look at that ahead on AMERICAN MORNING.

Stay with us.

(COMMERCIAL BREAK)

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