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CNN Live At Daybreak

Earthquake in Northern California; Privacy in the Workplace

Aired June 15, 2005 - 06:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: It is June 15.
A powerful earthquake jolts northern California. It wasn't the big one, but it was big enough to set off sirens and send people to higher ground.

Also, they've searched high and low, but are police in Aruba any closer to finding Natalee Holloway?

And should young children get on a ride that makes even adults scream? Tragedy at an amusement park has parents asking that question this morning.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

And good morning, everyone.

We'll have more on the California quakes in just a minute.

Also ahead, the boss is watching what you do online. Oh, you won't believe this story.

And then, taxing the tank -- we'll hear about one solution for gas guzzlers.

But first, now in the news, a new development this morning in a hostage drama in Iraq. Australia's leader says an Australian contractor has been freed. The U.S. military says a military operation was involved, but few details are being released. Insurgents abducted Douglas Wood six weeks ago.

President Bush is selling his energy policy today. He'll speak to an industry group in Washington. His plan to reduce high energy prices includes pushing for conservation, more oil production in the United States and alternative energy resources.

Live pictures for you this morning. NASA is in the process of rolling out the Space Shuttle Discovery this morning. The long, four mile trip began after midnight. The launch is planned for some time in mid to late July. That's such a beautiful shot -- Chad.

CHAD MYERS, CNN METEOROLOGIST: It certainly is. Yes, it's been a really couple of good days in Florida.

(WEATHER REPORT) COSTELLO: Up first this hour, geologists say an earthquake strikes in this spot only about once a decade and last night a magnitude 7.0 quake hit near Crescent City. That's about 90 miles off the coast of northern California. A tsunami warning for the region from the California-Mexico border to Vancouver Island, British Columbia, was in effect for about an hour. But so far, there are no reports of injuries or damage from the quake.

An expert explains to us what happened.

(BEGIN VIDEO CLIP)

KATE HUTTON, USGS SEISMOLOGIST: It was a strike slip earthquake, which means one side slipped horizontally past the other. This is very good because that means it didn't raise or lower the ocean floor and a tsunami would be very unlikely in this situation.

(END VIDEO CLIP)

COSTELLO: Oh, but Crescent City was the site of a 1964 tsunami that killed 11 people and four others in Oregon.

In Aruba, still no sign of missing American teenager Natalee Holloway. FBI agents and local police have taken down barricades near a beachfront Marriott Hotel after searching there Tuesday. Investigators were apparently led to the area, which is known as a lover's lane, based on a tip from a security guard who's been detained in the case. He said three young men still in custody may have lied about what happened on May 30, the night Holloway disappeared.

We'll have the latest details and a live update from Aruba. That will happen at the half hour.

His visit was a long time in coming, but not everyone is happy to see him. For the first time in 40 years, Charles Jenkins is back in the country he abandoned. As an Army sergeant in 1965, he deserted his unit and crossed into North Korea while on patrol in South Korea.

Now, he is back in the United States to visit his ailing mother.

(BEGIN VIDEO CLIP)

CHARLES JENKINS, ARMY DESERTER: After 40 years, I was very happy to go visit my mother and my family in Atlanta. But only one weekend and I'm going back to Sado, Japan to live with my dear wife and (INAUDIBLE).

(END VIDEO CLIP)

COSTELLO: And veterans in his rural North Carolina community say Jenkins owes his mother a visit. And after that, they say, he should get out of the United States and stay out.

Police in Spain say they have arrested 16 suspected Islamic terrorists, including five believed linked to last year's Madrid train bombing. Authorities say 11 of the suspects are linked to the terrorist group headed by Abu Musab al-Zarqawi. As you know, he's al Qaeda's main operative in Iraq.

Here in the United States, Defense Secretary Donald Rumsfeld is defending the Guantanamo Bay prison camp. At a Pentagon briefing on Tuesday, Rumsfeld said the facility has been more scrutinized than any other in military history and that numerous reforms have been carried out. He also talked about the kinds of prisoners being held there.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: The kind of people held at Guantanamo include terrorist trainers, bomb makers, extremist recruiters and financiers, bodyguards of Osama bin Laden and would-be suicide bombers. They are not common car thieves. They are believed to be determined to kill us.

(END VIDEO CLIP)

COSTELLO: Some in Congress, including several Republicans, have called for GITMO to be closed following reports of prisoner mistreatment.

Chemical plants across the nation may be at risk for a terrorist attack. And at two congressional hearings today, the Homeland Security Department is pushing for tighter federal regulations at private chemical companies. The acting undersecretary says while most companies have been eager to cooperate, it has become clear that the entirely voluntary efforts of these companies alone will not sufficiently address security for the entire sector protecting chemical plants. He says it's time for federal regulations to address emerging threats. He adds: "We now have greater clarity about the tasks ahead, tested tools and a more considerable knowledge base that will help close potential security gaps."

The industry has resisted regulations, saying voluntary measures are protecting the nation's 15,000 privately operated chemical plants from terrorists.

The Bush administration is revamping its plans for tighter passport restrictions. Now visitors from 27 so-called friendly countries will need to carry passports with tamper-proof digitized photos. The original plan included fingerprint and iris scan information on passports.

And this reminder, stay tuned to CNN day and night for the most reliable news about your security.

Still to come on DAYBREAK, half of all the bosses in this country are reading your e-mail. Oh, we'll delve into the myths of workplace privacy, just ahead.

And before you take Fido or Fifi on your summer vacation, hear which airlines are the best bet for your beloved pet.

And you've already laid out big cash for a big SUV and now you're paying big bucks for gas. But some lawmakers want you to keep on paying. But first, here's a look at what else is making news this Wednesday.

(COMMERCIAL BREAK)

COSTELLO: Privacy. It's a nice thought, but don't expect to find it at work. In fact, if you think your e-mail box is safe from your boss' prying eyes, you are dreaming. A new study out shows 76 percent of companies monitor employee Web use. Fifty-five percent of companies monitor e-mail messages. Twenty-one percent of companies have had e-mails subpoenaed.

Surprised? Well, maybe you shouldn't be.

Let's head live to Columbus, Ohio and Nancy Flynn, the executive director of the E-Policy Institute and author of "E-mail Rules."

Good morning, Nancy.

NANCY FLYNN, EPOLICY INSTITUTE: Good morning, Carol.

COSTELLO: This all sounds so big brother to me.

Do companies have the right to monitor your e-mail?

FLYNN: Absolutely. The federal government gives all employers in the U.S. the right to monitor their employees' e-mail and to track their employees' Internet activity. So employers, or, rather, employees really need to be aware that big brother is reading over their electronic shoulder when they're working on the office computer.

COSTELLO: How exactly do companies monitor employees' e-mail?

FLYNN: Well, it varies. One of the most common ways is employers will use software to ensure that employees' e-mail communication is in keeping with the company's e-mail policy. And then with Web usage, we know that 65 percent of companies are actually blocking the sites that employees may be visiting.

COSTELLO: OK, so here's the question. If you don't want your boss to read your e-mail, is there any way to get around this? Can you use a Yahoo! account on your computer at work?

FLYNN: Right. Well, what we recommend here at the E-Policy Institute is that employers ban the use of those private e-mail accounts because, as surveys from American Management Association and the E-Policy Institute have indicated, as you mentioned earlier, e- mail today is the electronic equivalent of DNA evidence. If you wind up in a workplace lawsuit, you're probably going to be like one in five companies that has e-mails subpoenaed.

So you want to hold onto those e-mail business records. You don't want your employees using their own e-mail tools that will get those messages outside of your retention capabilities.

COSTELLO: Wow! And it could also be a danger to your own employment. I guess a good example of that is the head of Boeing, who was supposedly having an affair with an employee. He was fired for it. He was actually writing her love letters via e-mail.

FLYNN: Yes, you're absolutely right. And as this year's survey from AMA and E-Policy indicates, 25 percent of companies have actually fired employees for violating their e-mail policy. So your viewers need to be mindful of the fact that if they violate their company's e- mail policy, they could end up out of their job. So this is pretty serious business these days.

COSTELLO: Nancy Flynn, thank you very much.

FLYNN: Thank you, Carol.

COSTELLO: E-mail, well, I don't even know what ours is. Maybe I should read my employee handbook. Maybe you should, too.

Your news, money, weather and sports.

It's 6:14 Eastern.

Here's what's all new this morning.

No reports of damage or injuries after a magnitude seven earthquake strikes about 90 miles off the northern California coast. A tsunami warning was issued, but later canceled.

In money news, satellite radio is coming to your cell phone. Sirius Radio signed a deal with Sprint to provide music channels to phone users. It will cost about $6 a month for the music service.

In culture, eBay has banned sales of tickets for the Live Eight charity concert in London. Tickets are free, but some of them popped up on the Internet auction site.

In sports, the Detroit Pistons stormed back into contention against the San Antonio Spurs. The Pistons won game three of the NBA finals 96-79. Game four tomorrow -- Chad.

MYERS: Carol, good morning.

(WEATHER REPORT)

COSTELLO: Still to come on DAYBREAK, devastating memories for one family after a trip to Disney World. We'll have the story for u.

And later, lawmakers in one state considering changing automobile taxes. The more gas you guzzle, the more taxes you pay.

But first, it's time to say good morning to Atlanta, Georgia.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

COSTELLO: Oh, the kind of air you can just slice through this morning in New York. But it's going to get better, people of the Northeast. It's going to get cooler, we promise. At least Chad does.

Time for "Business Buzz."

And usually Carrie Lee is a pretty serious business reporter. But not so this morning. In fact, she's brought a lot of really wacky stuff with her.

CARRIE LEE, CNN CORRESPONDENT: This is when business and pleasure really comes together, Carol.

We have an array of candy here, new products. And that's because this week is the 2005 National Confectioners Association All Candy Expo.

COSTELLO: Where?

LEE: It's going on in Chicago this week. Yes. And you probably also don't know, candy is a worldwide business, $100 billion a year in sales. So you can imagine these companies are always trying to do what they can to stay ahead of the curve.

We have some new products here. Let's start with Sports Beans. These are energized jelly beans and they're supposed to contain things like electrolytes that give you a little bit of an energy boost. I have to say, I'm a runner. I tried some of these last night. They taste pretty good. They taste kind of like Gatorade. So, I don't know if it was a sugar boost or something else, but I would give these the thumbs up.

There's also something called the Warp Hyper Charged Mint. These are flavored. They're supposed to be a little bit of a substitute for coffee. So, something also to give you an energy boost.

COSTELLO: Oh, I'll have one right now.

LEE: Yes, I know. Good for the morning shift, right?

And then here's something that might appeal to young guys, a lollipop. And if you get a close look at this, look at what's inside. This is an actual...

COSTELLO: Wait, we're zooming in.

LEE: ... scorpion. This kind of throws a little fear factor into the idea. I'm getting this as close as I can here to the screen.

COSTELLO: Well...

LEE: It may be a good idea for Halloween.

COSTELLO: ... that is a real scorpion in the lollipop?

LEE: It's a real scorpion. The company says it's safe. I'm not giving this one a try.

COSTELLO: Oh, come on. Hey, wait, can't you eat a real scorpion?

LEE: Yes, yes.

COSTELLO: You want them to (INAUDIBLE).

LEE: I'm not sure how much these are going to cost. But, anyway, so that's something that might appeal to the young guys.

If you have a 'tween daughter, look out. Make Out Mints.

COSTELLO: Oh, great.

LEE: You can't get precocious enough, right? A little keychain, maybe attach it to your jeans or whatever.

And then a couple of other things here. Tire Tread Licorice, again, something that might appeal to the young guys; Pez dispensers, R2D2, Chubaka, the old favorite.

COSTELLO: Something normal, finally.

LEE: Yes, exactly.

Mallow Pizza, a pizza -- it looks like a pizza. It's actually a giant marshmallow.

And here's something that didn't get a very good bill from our very informal CNN poll. Our producer tried this. These are flavor boosters for gum. So you take your chewed gum, you stick it on here, shake it up. You're supposed to get some flavor crystals stuck on your gum. You put it back in your mouth. It's supposed to reboost the flavor of your gum. Well, they said it was really not tasting very good at all. A lot of different flavors going on here at once and...

COSTELLO: It just sounds sort of unsanitary.

LEE: Yes, yes. So, you know, some of it gimmicky. Some of them, the Chubaka and everything, tried and true.

COSTELLO: I want this. Can I have the Chubaka?

LEE: You can have it. You can have it. You can have the scorpion.

COSTELLO: No, I don't want the scorpion.

LEE: You can have the Make Out Mints.

COSTELLO: I don't want the scorpion.

I'll take the Make Out Mints.

LEE: But we'll see how many of these are successful. We'll see how many actually make it to store shelves. But some exciting stuff.

COSTELLO: Like Wal-Mart?

LEE: Yes.

COSTELLO: Because you have an update on Wal-Mart, as well.

LEE: Wal-Mart yesterday, remember? We talked about the company saying it's going to pull, reportedly, VHS tapes from its store shelves. Well, now a spokesperson telling CNN not true. They're going to keep the VHS tapes as long as customers buy them. That original report was from the "Hollywood Reporter."

So, VHS is here to stay, at least for the time being.

COSTELLO: Yes, at least until they go out of vogue, what, in a couple of months? till h ng. tay, atls ull, rptdl,ing vrgd tay ahead of t

LEE: Exactly.

COSTELLO: Yes.

A look at the futures?

LEE: The futures looking up this morning. We did see a little bit of buying at the close yesterday. It looks like that's going to continue. A lot of economic news today. That's really going to drive the session.

COSTELLO: Thank you, Carrie Lee.

We appreciate it.

LEE: My pleasure.

COSTELLO: OK.

We still don't know what killed a 4-year-old boy who died after riding an attraction at Walt Disney World. Early results of an autopsy are inconclusive. Police say the boy was limp and unresponsive after riding Mission Space at Disney's Epcot Center. He later died at the hospital.

The ride recreates a ride into space.

And as Catherine Callaway reports, it is very realistic.

(BEGIN VIDEO TAPE)

CATHERINE CALLAWAY, CNN CORRESPONDENT (voice-over): Recreating the feeling of a rocket launch into space was the goal of Disney Imagineering.

UNIDENTIFIED CHILD: We're going to blast off into outer space.

CALLAWAY: We rode along with a family of five as they experienced Mission: SPACE. After reading the caution signs...

UNIDENTIFIED FEMALE: Are you sure you all want to go?

UNIDENTIFIED CHILD: Yes.

UNIDENTIFIED CHILD: Yes.

CALLAWAY: ... and meeting requirements...

UNIDENTIFIED MALE: He's good.

CALLAWAY: ... the family steps into the capsule that will mimic the G force of a rocket launch. The father loved it. But it was too much for other members of this family.

UNIDENTIFIED FEMALE: I just feel shaky right now. It was all right. It was just the liftoff that got me.

UNIDENTIFIED CHILD: I feel like my stomach just dropped.

UNIDENTIFIED CHILD: I told him not to get on.

UNIDENTIFIED MALE: Oh, it was great. It was wonderful, for real. I didn't think he was going to ever stop screaming.

CALLAWAY: There are clear warnings that this ride is not for everyone. NASA advisers, astronauts and scientists worked with Disney on the centrifuge, basing the ride on a training tool NASA uses to prepare astronauts for the intense pressure of G forces.

SEAN O'KEEFE, FORMER NASA ADMINISTRATOR: This is a pretty intensive five minute experience. It's one that's very, very close to giving you a sense of the reality of what the training and the simulation environment really is in the astronaut corps. It's pretty impressive.

CALLAWAY: Disney wouldn't say the exact G force of the ride, but did say it's less than a shuttle launch.

There is a minimum height requirement of 44 inches, but no age restriction.

Dr. Ronald Tusa, an Emory neurologist who's ridden Mission: SPACE, says the warning should be taken seriously.

DR. RONALD TUSA, EMORY UNIVERSITY HOSPITAL: I would advise certain people not to go on them because they can be -- they can cause too much sickness for the individual. But they're not going to cause death.

CALLAWAY: Disney reports that since the ride opened in 2003, at least half a dozen people have been hospitalized after experiencing Mission: SPACE. However, it's worth noting that during that time, more than 8.6 million people have safely taken the ride.

Catherine Callaway, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: Joining us now with more insight into the designs behind amusement park rides is Richard McClary with the amusement industry.

He's on the phone from Memphis.

Good morning.

RICHARD MCCLARY, SAFETY CONSULTANT: Good morning, Carol.

COSTELLO: We don't know how this child died, but when you design a ride, do you take into account how it will affect small children?

MCCLARY: Yes, you do. You take in how the size, the shape, body build, these type of things are taken into consideration.

COSTELLO: Knowing what you know about this ride, Mission: SPACE, should a 4-year-old have been riding this particular ride?

MCCLARY: That's hard to say. I have not ridden the ride. I'm not that familiar with it. But the engineers who designed it certainly must have agreed that, you know, that size and age is all right.

COSTELLO: Well, the Disney Web site specifics this ride is for big kids. It doesn't say at what age, you know, a kid becomes a big kid.

Should it?

MCCLARY: Yes, I think it should. Definitely. You know, more rides are dependent on software now and computer systems. They control the rides. And there's been no standard set for computer systems, nor have there been standards set for gravitational forces which mark subject rides, you know, persons, too. And I think these need to be settled or looked at very seriously. Undoubtedly, gravitational forces came into play here.

COSTELLO: Right.

I was going to ask you about these gravitational forces because, you know, the 4-year-old fit the height requirement. And I believe we have a graphic of the height requirement, 44 inches. But just because a 4-year-old is tall enough, does that necessarily mean he's physically ready for something like that?

MCCLARY: I don't agree with that. I think that, you know, that -- there's more things to consider than just the age of the person. Of course, there were height restrictions on this ride and he met those height restrictions, also. But these were established. But in so many cases in new extreme rides like this, the bugs are worked out as the ride develops, and changes are made. So undoubtedly this one has had injuries prior, but this is a situation that I just am not familiar with and cannot get into.

COSTELLO: I understand. I understand.

I want to read you what Disney is saying. Disney says: "We are saddened by this highly unusual event. Our first concern is for the family. We are doing everything we can to help them during this difficult time."

It also says its ride is safe in its current configuration.

Now, I understand the State of Florida allows theme parks like Disney to have voluntary inspections.

So how do you know if any ride is safe for your child?

MCCLARY: Well, this is the problem. We do not have any standards for inspection procedures in the United States at all. Some states have inspections, some states don't. Some require local inspections, some don't require any inspections. Most theme parks say, well, we do our own inspections, we do a good job, so we don't need state inspectors or federal inspectors or anybody else.

So there's no standardization in this country on rides, extreme rides, even the basics on rides for children.

COSTELLO: And before you go, a word of advice for parents?

MCCLARY: A word of advice, look at the ride, watch the people that get on, watch the people when they get off, watch the operators. Just observe. I mean just don't turn the kids loose and let them ride or, you know, rush up to a ride and say hey, let's get on as fast as we can. Look at it and see how it may affect you physically and mentally.

COSTELLO: Richard McClary, thank you for joining DAYBREAK this morning.

This news just in to CNN.

Seventeen Iraqi soldiers were killed after an explosion at a restaurant north of Baghdad. At least 28 others are injured. It happened at an Iraqi military base. The blast was apparently caused by a suicide bomber. Of course, we'll bring you more details on this developing story as we get them throughout the morning.

Still to come on DAYBREAK, a new search but the same result. No sign of Natalee Holloway. So what happens now? Details on the search for the missing woman.

And the skies are not always friendly for man's best friend. What you need to know to protect your pets on planes.

(COMMERCIAL BREAK)

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Aired June 15, 2005 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It is June 15.
A powerful earthquake jolts northern California. It wasn't the big one, but it was big enough to set off sirens and send people to higher ground.

Also, they've searched high and low, but are police in Aruba any closer to finding Natalee Holloway?

And should young children get on a ride that makes even adults scream? Tragedy at an amusement park has parents asking that question this morning.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

And good morning, everyone.

We'll have more on the California quakes in just a minute.

Also ahead, the boss is watching what you do online. Oh, you won't believe this story.

And then, taxing the tank -- we'll hear about one solution for gas guzzlers.

But first, now in the news, a new development this morning in a hostage drama in Iraq. Australia's leader says an Australian contractor has been freed. The U.S. military says a military operation was involved, but few details are being released. Insurgents abducted Douglas Wood six weeks ago.

President Bush is selling his energy policy today. He'll speak to an industry group in Washington. His plan to reduce high energy prices includes pushing for conservation, more oil production in the United States and alternative energy resources.

Live pictures for you this morning. NASA is in the process of rolling out the Space Shuttle Discovery this morning. The long, four mile trip began after midnight. The launch is planned for some time in mid to late July. That's such a beautiful shot -- Chad.

CHAD MYERS, CNN METEOROLOGIST: It certainly is. Yes, it's been a really couple of good days in Florida.

(WEATHER REPORT) COSTELLO: Up first this hour, geologists say an earthquake strikes in this spot only about once a decade and last night a magnitude 7.0 quake hit near Crescent City. That's about 90 miles off the coast of northern California. A tsunami warning for the region from the California-Mexico border to Vancouver Island, British Columbia, was in effect for about an hour. But so far, there are no reports of injuries or damage from the quake.

An expert explains to us what happened.

(BEGIN VIDEO CLIP)

KATE HUTTON, USGS SEISMOLOGIST: It was a strike slip earthquake, which means one side slipped horizontally past the other. This is very good because that means it didn't raise or lower the ocean floor and a tsunami would be very unlikely in this situation.

(END VIDEO CLIP)

COSTELLO: Oh, but Crescent City was the site of a 1964 tsunami that killed 11 people and four others in Oregon.

In Aruba, still no sign of missing American teenager Natalee Holloway. FBI agents and local police have taken down barricades near a beachfront Marriott Hotel after searching there Tuesday. Investigators were apparently led to the area, which is known as a lover's lane, based on a tip from a security guard who's been detained in the case. He said three young men still in custody may have lied about what happened on May 30, the night Holloway disappeared.

We'll have the latest details and a live update from Aruba. That will happen at the half hour.

His visit was a long time in coming, but not everyone is happy to see him. For the first time in 40 years, Charles Jenkins is back in the country he abandoned. As an Army sergeant in 1965, he deserted his unit and crossed into North Korea while on patrol in South Korea.

Now, he is back in the United States to visit his ailing mother.

(BEGIN VIDEO CLIP)

CHARLES JENKINS, ARMY DESERTER: After 40 years, I was very happy to go visit my mother and my family in Atlanta. But only one weekend and I'm going back to Sado, Japan to live with my dear wife and (INAUDIBLE).

(END VIDEO CLIP)

COSTELLO: And veterans in his rural North Carolina community say Jenkins owes his mother a visit. And after that, they say, he should get out of the United States and stay out.

Police in Spain say they have arrested 16 suspected Islamic terrorists, including five believed linked to last year's Madrid train bombing. Authorities say 11 of the suspects are linked to the terrorist group headed by Abu Musab al-Zarqawi. As you know, he's al Qaeda's main operative in Iraq.

Here in the United States, Defense Secretary Donald Rumsfeld is defending the Guantanamo Bay prison camp. At a Pentagon briefing on Tuesday, Rumsfeld said the facility has been more scrutinized than any other in military history and that numerous reforms have been carried out. He also talked about the kinds of prisoners being held there.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: The kind of people held at Guantanamo include terrorist trainers, bomb makers, extremist recruiters and financiers, bodyguards of Osama bin Laden and would-be suicide bombers. They are not common car thieves. They are believed to be determined to kill us.

(END VIDEO CLIP)

COSTELLO: Some in Congress, including several Republicans, have called for GITMO to be closed following reports of prisoner mistreatment.

Chemical plants across the nation may be at risk for a terrorist attack. And at two congressional hearings today, the Homeland Security Department is pushing for tighter federal regulations at private chemical companies. The acting undersecretary says while most companies have been eager to cooperate, it has become clear that the entirely voluntary efforts of these companies alone will not sufficiently address security for the entire sector protecting chemical plants. He says it's time for federal regulations to address emerging threats. He adds: "We now have greater clarity about the tasks ahead, tested tools and a more considerable knowledge base that will help close potential security gaps."

The industry has resisted regulations, saying voluntary measures are protecting the nation's 15,000 privately operated chemical plants from terrorists.

The Bush administration is revamping its plans for tighter passport restrictions. Now visitors from 27 so-called friendly countries will need to carry passports with tamper-proof digitized photos. The original plan included fingerprint and iris scan information on passports.

And this reminder, stay tuned to CNN day and night for the most reliable news about your security.

Still to come on DAYBREAK, half of all the bosses in this country are reading your e-mail. Oh, we'll delve into the myths of workplace privacy, just ahead.

And before you take Fido or Fifi on your summer vacation, hear which airlines are the best bet for your beloved pet.

And you've already laid out big cash for a big SUV and now you're paying big bucks for gas. But some lawmakers want you to keep on paying. But first, here's a look at what else is making news this Wednesday.

(COMMERCIAL BREAK)

COSTELLO: Privacy. It's a nice thought, but don't expect to find it at work. In fact, if you think your e-mail box is safe from your boss' prying eyes, you are dreaming. A new study out shows 76 percent of companies monitor employee Web use. Fifty-five percent of companies monitor e-mail messages. Twenty-one percent of companies have had e-mails subpoenaed.

Surprised? Well, maybe you shouldn't be.

Let's head live to Columbus, Ohio and Nancy Flynn, the executive director of the E-Policy Institute and author of "E-mail Rules."

Good morning, Nancy.

NANCY FLYNN, EPOLICY INSTITUTE: Good morning, Carol.

COSTELLO: This all sounds so big brother to me.

Do companies have the right to monitor your e-mail?

FLYNN: Absolutely. The federal government gives all employers in the U.S. the right to monitor their employees' e-mail and to track their employees' Internet activity. So employers, or, rather, employees really need to be aware that big brother is reading over their electronic shoulder when they're working on the office computer.

COSTELLO: How exactly do companies monitor employees' e-mail?

FLYNN: Well, it varies. One of the most common ways is employers will use software to ensure that employees' e-mail communication is in keeping with the company's e-mail policy. And then with Web usage, we know that 65 percent of companies are actually blocking the sites that employees may be visiting.

COSTELLO: OK, so here's the question. If you don't want your boss to read your e-mail, is there any way to get around this? Can you use a Yahoo! account on your computer at work?

FLYNN: Right. Well, what we recommend here at the E-Policy Institute is that employers ban the use of those private e-mail accounts because, as surveys from American Management Association and the E-Policy Institute have indicated, as you mentioned earlier, e- mail today is the electronic equivalent of DNA evidence. If you wind up in a workplace lawsuit, you're probably going to be like one in five companies that has e-mails subpoenaed.

So you want to hold onto those e-mail business records. You don't want your employees using their own e-mail tools that will get those messages outside of your retention capabilities.

COSTELLO: Wow! And it could also be a danger to your own employment. I guess a good example of that is the head of Boeing, who was supposedly having an affair with an employee. He was fired for it. He was actually writing her love letters via e-mail.

FLYNN: Yes, you're absolutely right. And as this year's survey from AMA and E-Policy indicates, 25 percent of companies have actually fired employees for violating their e-mail policy. So your viewers need to be mindful of the fact that if they violate their company's e- mail policy, they could end up out of their job. So this is pretty serious business these days.

COSTELLO: Nancy Flynn, thank you very much.

FLYNN: Thank you, Carol.

COSTELLO: E-mail, well, I don't even know what ours is. Maybe I should read my employee handbook. Maybe you should, too.

Your news, money, weather and sports.

It's 6:14 Eastern.

Here's what's all new this morning.

No reports of damage or injuries after a magnitude seven earthquake strikes about 90 miles off the northern California coast. A tsunami warning was issued, but later canceled.

In money news, satellite radio is coming to your cell phone. Sirius Radio signed a deal with Sprint to provide music channels to phone users. It will cost about $6 a month for the music service.

In culture, eBay has banned sales of tickets for the Live Eight charity concert in London. Tickets are free, but some of them popped up on the Internet auction site.

In sports, the Detroit Pistons stormed back into contention against the San Antonio Spurs. The Pistons won game three of the NBA finals 96-79. Game four tomorrow -- Chad.

MYERS: Carol, good morning.

(WEATHER REPORT)

COSTELLO: Still to come on DAYBREAK, devastating memories for one family after a trip to Disney World. We'll have the story for u.

And later, lawmakers in one state considering changing automobile taxes. The more gas you guzzle, the more taxes you pay.

But first, it's time to say good morning to Atlanta, Georgia.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

COSTELLO: Oh, the kind of air you can just slice through this morning in New York. But it's going to get better, people of the Northeast. It's going to get cooler, we promise. At least Chad does.

Time for "Business Buzz."

And usually Carrie Lee is a pretty serious business reporter. But not so this morning. In fact, she's brought a lot of really wacky stuff with her.

CARRIE LEE, CNN CORRESPONDENT: This is when business and pleasure really comes together, Carol.

We have an array of candy here, new products. And that's because this week is the 2005 National Confectioners Association All Candy Expo.

COSTELLO: Where?

LEE: It's going on in Chicago this week. Yes. And you probably also don't know, candy is a worldwide business, $100 billion a year in sales. So you can imagine these companies are always trying to do what they can to stay ahead of the curve.

We have some new products here. Let's start with Sports Beans. These are energized jelly beans and they're supposed to contain things like electrolytes that give you a little bit of an energy boost. I have to say, I'm a runner. I tried some of these last night. They taste pretty good. They taste kind of like Gatorade. So, I don't know if it was a sugar boost or something else, but I would give these the thumbs up.

There's also something called the Warp Hyper Charged Mint. These are flavored. They're supposed to be a little bit of a substitute for coffee. So, something also to give you an energy boost.

COSTELLO: Oh, I'll have one right now.

LEE: Yes, I know. Good for the morning shift, right?

And then here's something that might appeal to young guys, a lollipop. And if you get a close look at this, look at what's inside. This is an actual...

COSTELLO: Wait, we're zooming in.

LEE: ... scorpion. This kind of throws a little fear factor into the idea. I'm getting this as close as I can here to the screen.

COSTELLO: Well...

LEE: It may be a good idea for Halloween.

COSTELLO: ... that is a real scorpion in the lollipop?

LEE: It's a real scorpion. The company says it's safe. I'm not giving this one a try.

COSTELLO: Oh, come on. Hey, wait, can't you eat a real scorpion?

LEE: Yes, yes.

COSTELLO: You want them to (INAUDIBLE).

LEE: I'm not sure how much these are going to cost. But, anyway, so that's something that might appeal to the young guys.

If you have a 'tween daughter, look out. Make Out Mints.

COSTELLO: Oh, great.

LEE: You can't get precocious enough, right? A little keychain, maybe attach it to your jeans or whatever.

And then a couple of other things here. Tire Tread Licorice, again, something that might appeal to the young guys; Pez dispensers, R2D2, Chubaka, the old favorite.

COSTELLO: Something normal, finally.

LEE: Yes, exactly.

Mallow Pizza, a pizza -- it looks like a pizza. It's actually a giant marshmallow.

And here's something that didn't get a very good bill from our very informal CNN poll. Our producer tried this. These are flavor boosters for gum. So you take your chewed gum, you stick it on here, shake it up. You're supposed to get some flavor crystals stuck on your gum. You put it back in your mouth. It's supposed to reboost the flavor of your gum. Well, they said it was really not tasting very good at all. A lot of different flavors going on here at once and...

COSTELLO: It just sounds sort of unsanitary.

LEE: Yes, yes. So, you know, some of it gimmicky. Some of them, the Chubaka and everything, tried and true.

COSTELLO: I want this. Can I have the Chubaka?

LEE: You can have it. You can have it. You can have the scorpion.

COSTELLO: No, I don't want the scorpion.

LEE: You can have the Make Out Mints.

COSTELLO: I don't want the scorpion.

I'll take the Make Out Mints.

LEE: But we'll see how many of these are successful. We'll see how many actually make it to store shelves. But some exciting stuff.

COSTELLO: Like Wal-Mart?

LEE: Yes.

COSTELLO: Because you have an update on Wal-Mart, as well.

LEE: Wal-Mart yesterday, remember? We talked about the company saying it's going to pull, reportedly, VHS tapes from its store shelves. Well, now a spokesperson telling CNN not true. They're going to keep the VHS tapes as long as customers buy them. That original report was from the "Hollywood Reporter."

So, VHS is here to stay, at least for the time being.

COSTELLO: Yes, at least until they go out of vogue, what, in a couple of months? till h ng. tay, atls ull, rptdl,ing vrgd tay ahead of t

LEE: Exactly.

COSTELLO: Yes.

A look at the futures?

LEE: The futures looking up this morning. We did see a little bit of buying at the close yesterday. It looks like that's going to continue. A lot of economic news today. That's really going to drive the session.

COSTELLO: Thank you, Carrie Lee.

We appreciate it.

LEE: My pleasure.

COSTELLO: OK.

We still don't know what killed a 4-year-old boy who died after riding an attraction at Walt Disney World. Early results of an autopsy are inconclusive. Police say the boy was limp and unresponsive after riding Mission Space at Disney's Epcot Center. He later died at the hospital.

The ride recreates a ride into space.

And as Catherine Callaway reports, it is very realistic.

(BEGIN VIDEO TAPE)

CATHERINE CALLAWAY, CNN CORRESPONDENT (voice-over): Recreating the feeling of a rocket launch into space was the goal of Disney Imagineering.

UNIDENTIFIED CHILD: We're going to blast off into outer space.

CALLAWAY: We rode along with a family of five as they experienced Mission: SPACE. After reading the caution signs...

UNIDENTIFIED FEMALE: Are you sure you all want to go?

UNIDENTIFIED CHILD: Yes.

UNIDENTIFIED CHILD: Yes.

CALLAWAY: ... and meeting requirements...

UNIDENTIFIED MALE: He's good.

CALLAWAY: ... the family steps into the capsule that will mimic the G force of a rocket launch. The father loved it. But it was too much for other members of this family.

UNIDENTIFIED FEMALE: I just feel shaky right now. It was all right. It was just the liftoff that got me.

UNIDENTIFIED CHILD: I feel like my stomach just dropped.

UNIDENTIFIED CHILD: I told him not to get on.

UNIDENTIFIED MALE: Oh, it was great. It was wonderful, for real. I didn't think he was going to ever stop screaming.

CALLAWAY: There are clear warnings that this ride is not for everyone. NASA advisers, astronauts and scientists worked with Disney on the centrifuge, basing the ride on a training tool NASA uses to prepare astronauts for the intense pressure of G forces.

SEAN O'KEEFE, FORMER NASA ADMINISTRATOR: This is a pretty intensive five minute experience. It's one that's very, very close to giving you a sense of the reality of what the training and the simulation environment really is in the astronaut corps. It's pretty impressive.

CALLAWAY: Disney wouldn't say the exact G force of the ride, but did say it's less than a shuttle launch.

There is a minimum height requirement of 44 inches, but no age restriction.

Dr. Ronald Tusa, an Emory neurologist who's ridden Mission: SPACE, says the warning should be taken seriously.

DR. RONALD TUSA, EMORY UNIVERSITY HOSPITAL: I would advise certain people not to go on them because they can be -- they can cause too much sickness for the individual. But they're not going to cause death.

CALLAWAY: Disney reports that since the ride opened in 2003, at least half a dozen people have been hospitalized after experiencing Mission: SPACE. However, it's worth noting that during that time, more than 8.6 million people have safely taken the ride.

Catherine Callaway, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: Joining us now with more insight into the designs behind amusement park rides is Richard McClary with the amusement industry.

He's on the phone from Memphis.

Good morning.

RICHARD MCCLARY, SAFETY CONSULTANT: Good morning, Carol.

COSTELLO: We don't know how this child died, but when you design a ride, do you take into account how it will affect small children?

MCCLARY: Yes, you do. You take in how the size, the shape, body build, these type of things are taken into consideration.

COSTELLO: Knowing what you know about this ride, Mission: SPACE, should a 4-year-old have been riding this particular ride?

MCCLARY: That's hard to say. I have not ridden the ride. I'm not that familiar with it. But the engineers who designed it certainly must have agreed that, you know, that size and age is all right.

COSTELLO: Well, the Disney Web site specifics this ride is for big kids. It doesn't say at what age, you know, a kid becomes a big kid.

Should it?

MCCLARY: Yes, I think it should. Definitely. You know, more rides are dependent on software now and computer systems. They control the rides. And there's been no standard set for computer systems, nor have there been standards set for gravitational forces which mark subject rides, you know, persons, too. And I think these need to be settled or looked at very seriously. Undoubtedly, gravitational forces came into play here.

COSTELLO: Right.

I was going to ask you about these gravitational forces because, you know, the 4-year-old fit the height requirement. And I believe we have a graphic of the height requirement, 44 inches. But just because a 4-year-old is tall enough, does that necessarily mean he's physically ready for something like that?

MCCLARY: I don't agree with that. I think that, you know, that -- there's more things to consider than just the age of the person. Of course, there were height restrictions on this ride and he met those height restrictions, also. But these were established. But in so many cases in new extreme rides like this, the bugs are worked out as the ride develops, and changes are made. So undoubtedly this one has had injuries prior, but this is a situation that I just am not familiar with and cannot get into.

COSTELLO: I understand. I understand.

I want to read you what Disney is saying. Disney says: "We are saddened by this highly unusual event. Our first concern is for the family. We are doing everything we can to help them during this difficult time."

It also says its ride is safe in its current configuration.

Now, I understand the State of Florida allows theme parks like Disney to have voluntary inspections.

So how do you know if any ride is safe for your child?

MCCLARY: Well, this is the problem. We do not have any standards for inspection procedures in the United States at all. Some states have inspections, some states don't. Some require local inspections, some don't require any inspections. Most theme parks say, well, we do our own inspections, we do a good job, so we don't need state inspectors or federal inspectors or anybody else.

So there's no standardization in this country on rides, extreme rides, even the basics on rides for children.

COSTELLO: And before you go, a word of advice for parents?

MCCLARY: A word of advice, look at the ride, watch the people that get on, watch the people when they get off, watch the operators. Just observe. I mean just don't turn the kids loose and let them ride or, you know, rush up to a ride and say hey, let's get on as fast as we can. Look at it and see how it may affect you physically and mentally.

COSTELLO: Richard McClary, thank you for joining DAYBREAK this morning.

This news just in to CNN.

Seventeen Iraqi soldiers were killed after an explosion at a restaurant north of Baghdad. At least 28 others are injured. It happened at an Iraqi military base. The blast was apparently caused by a suicide bomber. Of course, we'll bring you more details on this developing story as we get them throughout the morning.

Still to come on DAYBREAK, a new search but the same result. No sign of Natalee Holloway. So what happens now? Details on the search for the missing woman.

And the skies are not always friendly for man's best friend. What you need to know to protect your pets on planes.

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