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CNN Live At Daybreak

Gas Prices Out of Control; Stay the Course; Doping Questions; Pet Protection

Aired August 25, 2005 - 06:30   ET

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

KELLY WALLACE, CNN ANCHOR: Well, as we have been telling you throughout the week here on DAYBREAK, the price of crude oil is out of control, hitting another record high. That is $68 a barrel today. Many Americans are so fed up with skyrocketing gas prices some families are taking extreme measures to save a few bucks.
CNN's Kareen Wynter joining us live from Washington.

Kareen -- tell us about how folks are getting around having to pay those big prices at the pump.

KAREEN WYNTER, CNN CORRESPONDENT: Well, wait until you hear this, Kelly. Many people don't have the option, of course, of selling their cars, to get around town on foot, or even biking. But some families are having to make a certain sacrifice here just to cut a few costs with the high gas prices.

(BEGIN VIDEOTAPE)

WYNTER (voice over): This dad on the go starts each day by taking his daughter to school, a two-minute car ride.

JEFF JOHNSON, COMMUTER: Wait. Don't get on.

WYNTER: The trip has gotten a bit longer, because Jeff Johnson relies on this new set of wheels to get around town. He also sold his SUV and bought a scooter. The price of gas was eating away at this consumer's pocket.

JOHNSON: I just feel like, hey, I shouldn't be burning up all of this gas just to get back and forth.

WYNTER: Jay Wind also started biking to work this week, fed up with having to fill up his gas tank.

JAY WIND, COMMUTER: But really, it's the only way to go. You get fresh air, you get exercise and you save $2.50 a gallon.

JOHNSON: Oh, see these two women, we passed them yesterday.

WYNTER: Americans are spending more money on gasoline, and experts say it's hit working families the hardest.

ROBERT PUETES, THE BROOKINGS INSTITUTE: Nowadays with gasoline prices and all kinds of transportation costs getting much more expensive, we are beginning to look at transportation costs as a percentage of household budgets.

WYNTER: Puetes says while some people can afford to stop driving their cars, many commuters can't, such as those who live in suburbs or areas with minimal public transportation.

Jeff Johnson says while his scooter isn't ideal for road trips, it serves its purpose. For now, he's riding high on his new savings.

(END VIDEOTAPE)

Now that they've changing their driving habits, some families say they finally realized, Kelly, they really didn't need their cars that much after all, and that when they add up the savings it amounts to hundreds of dollars each month -- Kelly.

WALLACE: It's sort of amazing, Kareen, people on scooters and bikes. They're going to get good exercise, especially on their bicycles, right?

WYNTER: Absolutely. They say it's great exercise. And also, more importantly, it's great for the environment.

WALLACE: All right. Yes, absolutely. Kareen Wynter reporting live from Washington. We appreciate it.

CNN wants to give you an outlet for your gas gripes. You can visit cnnmoney.com to post yours.

Here is what a few people have written to us already.

The first one -- quote: "The current gas situation has caused me to park my Dodge pickup and take my motorcycle just about everywhere I go. You'd be quite surprised how many groceries you can carry on a bike." That's from Darcel D.

And take a listen to this one -- quote: "Due to these escalating gas prices, I've had to drastically change our spending patterns, as well as discontinue certain habits. Cigarette smoking was nixed a month ago." Well, that's very good. From an anonymous viewer.

And this last one: "Our weekends are now spent at home. Instead of going to the movie theaters, we buy plenty of microwavable popcorn. We order movies from the cable company's in-demand service to avoid having to drive to the local Blockbuster Video." And that's from Brian P.

Well, no one is exempt from paying big bucks to fill up, even President Bush. Well, OK, not exactly. Taxpayers like you and me, we are really paying the president's gas bill. Whether it's Air Force One, helicopter Marine One or the motorcade, getting the president around is very pricey. Almost every vehicle the president uses is specially outfitted, so it weighs more. And Mr. Bush is one of the nation's most well-traveled presidents ever. This year alone, the president has made 73 trips. And while on one of those trips in Idaho, President Bush called the constitution-writing process in Iraq -- quote -- "a landmark event in the history of the Middle East."

Speaking to National Guard families, Mr. Bush also vowed no retreat from the war in Iraq as long as he's president.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will stay on the offense. We'll complete our work in Afghanistan and Iraq. An immediate withdrawal of our troops in Iraq or the broader Middle East, as some have called for, would only embolden the terrorists and create a staging ground to launch more attacks against America and free nations. So long as I'm the president, we will stay, we will fight and we will win the war on terror.

(END VIDEO CLIP)

WALLACE: And coinciding with the president's vows, 1,500 more U.S. troops are headed to Iraq in the coming weeks.

CNN's Elaine Quijano joining us now on the phone from Washington.

Elaine, thanks for being here. My first question to you: How worried are White House officials about the poll numbers? I know the White House has always said that it never focuses on polls, but looking at declining support for the war in Iraq, a majority of Americans are saying the war is, in fact, a mistake.

ELAINE QUIJANO, CNN CORRESPONDENT: Well, absolutely, Kelly. That is certainly what is driving the president's message. In fact, if you look at just what the president has done, it was the second speech the second time in just a week that President Bush was delivering remarks aimed specifically at boosting that falling public support for the Iraq war.

And, of course, this time, as you mentioned, his audience members were mostly members of the Idaho National Guard. But also families, who have lost loved ones in the war on terrorism.

Now, as we just heard, the president reiterated his arguments for keeping U.S. forces in Iraq. He thanked troops as well for their service.

And in a move specifically designed to counter Cindy Sheehan, the antiwar demonstrator who has vowed to camp out near the president's ranch, Mr. Bush also discussed an Idaho family, Tammy and Leon Pruitt (ph). They have four sons serving in Iraq. And the Bush administration invited them to focus the spotlight on a family that is making sacrifices as well, but also a family that backs the president.

Now, Leon Pruitt (ph), we should mention, the father, as well as another brother, Aaron (ph), returned from their tours of duty in Iraq last year. But this clearly is an effort by the White House to put a human face on the president's message of resoluteness when it comes to Iraq and to serve as a contrast to the images of Cindy Sheehan and those who have rallied behind her.

Now, we should also mention that the president spent about three hours yesterday meeting with the families of 19 U.S. troops killed in Iraq and Afghanistan -- about 68 people total. We're also told that First Lady Laura Bush was also present for those meetings. But, of course, still no indication that the president plans to meet with Cindy Sheehan for a second time.

The president, meantime, is back at his Texas ranch today -- Kelly.

WALLACE: And, Elaine, very quickly, as you said, the president is back at his Texas ranch, expected to be there through early September. Any chance we'll see him out on the road again, giving these speeches to drum up support for the war?

QUIJANO: Well, that's certainly a possibility. Right now, they haven't made anything public. But with these numbers, as you mentioned, that's something the White House is quite concerned about. They continue to watch these numbers. The overall approval numbers, in fact, are being down by the Iraq conflict. And people are quite aware within the White House that Cindy Sheehan has really put a face and become sort of a rallying point for those who oppose the war.

So, certainly that is a possibility. We haven't heard of anything specific at this point, though -- Kelly.

WALLACE: Elaine, thanks for getting up early with us. Elaine Quijano reporting live from the White House this morning.

Still to come on this Thursday edition of DAYBREAK, fact or fiction? Accusations are flying about Lance Armstrong. We'll talk to an author who is tracking Armstrong's cycling career.

And a lot has changed in health care, including how we care for our pets. Is there anything your vet is not telling you? "SmartMoney" magazine fills us in.

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

(COMMERCIAL BREAK)

WALLACE: And welcome back.

A witch hunt -- excuse me -- or something more? Lance Armstrong is once again defending himself against allegations of taking performance-enhancing drugs. He says -- quote -- "absolutely not."

But the director of the Tour de France says Armstrong owes us all an explanation.

Don't get confused. Carol Costello is sitting in for Miles today on "AMERICAN MORNING," but doing triple duty here to fill us in on this story. CAROL COSTELLO, CNN ANCHOR: Well, you know, I've been following this Lance Armstrong story, because I'm really into sports, for one thing. And he's become such an icon. I mean, he was on "Oprah" not too long ago with his girlfriend, Sheryl Crowe, and the women in the audience were just going wild.

WALLACE: Screaming. I mean, he is...

COSTELLO: I mean...

WALLACE: He's a real rock star.

COSTELLO: He is. And he has incredible mass appeal. But these are serious allegations. The UCI, cycling's world governing body, is taking a wait-and-see attitude. But the president also says if this is true, he'll have to decide if any legal action could be taken.

(BEGIN VIDEO CLIP)

COSTELLO (voice over): He certainly seems superhuman, surviving cancer, surviving cancer, winning his seventh Tour de France, inspiring millions to buy his "live strong" bracelets. But now a coup from the French.

The headline in "L'Equipe" screamed "Armstrong's Lie." The story alleges that Armstrong's 1999 urine samples test positive for the performance-enhancing drug EPO. It says a French lab detected the chemical using new, more advanced tests in 2004.

In response to this charge, the director of the Tour de France says he is convinced Armstrong was doping, and that the cyclist owes the world an explanation.

For his part, Armstrong denies the allegations, saying on his Web site: "I will simply restate what I have said many times. I have never taken performance-enhancing drugs."

But this isn't the first time Armstrong has had to defend himself. Last year, he sued a British newspaper for reprinting a doping accusation.

LANCE ARMSTRONG, SEVEN-TIME TOUR DE FRANCE CHAMPION: We've sort of reached the point where we really can't tolerate it anymore, and we're sick and tired of these allegations. And we're going to do everything we can to fight them. They are absolutely untrue.

(END VIDEOTAPE)

COSTELLO: EPO, by the way, is a drug that increases the level of red blood cells and endurance. And despite the lab and the tests, there are many unanswered questions.

Joining us now, John Wilcockson, and he wrote "23 Days in July," a book about Lance Armstrong.

Welcome. JOHN WILCOCKSON, AUTHOR, "23 DAYS IN JULY": Nice to meet you.

COSTELLO: We're glad you're here, because we have questions for you. First off, this test was done in 2004 on a 1999 urine sample that's been frozen since then. Who kept it and why?

WILCOCKSON: It's tested because they've got a new analytical method for the EPO test, which wasn't invented until a year after these samples were taken. The test was invented in 2000. And they've got more sophisticated techniques now, and they were reanalyzing dozens of old samples.

COSTELLO: And not just Lance Armstrong's. You know, the other thing, this was supposed to be anonymous. Nobody was supposed to know who the sample belonged to. So, how does this French newspaper wind up not only finding out that this was Lance Armstrong's test, but they got documents from the lab?

WILCOCKSON: Well, that's one of the things that happens in journalism in France. And "L'Equipe" has been an expert of that of uncovering so-called doping scandals. And they put two and two together with their sources, and they're pretty convinced that these six samples, which were positive for EPO, were those of Lance.

COSTELLO: I know that you've known Lance Armstrong since he was 17 years old. And, you know, Lance Armstrong had this teleconference in Washington yesterday, and he said, you know, it's always been a love-hate relationship between me and the French. Is that what it really boils down to?

WILCOCKSON: It's been that since the very first year that Lance won the tour in 1999 when these samples were taken. And as the story in my book, I write about the stage he won on Cestria (ph), which was a big mountain stage in the Alps, the first one he had won. And there was a race (INAUDIBLE) standing next to me, and he was shaking his head as he was watching Lance win this stage. And he was saying in English, "doping, doping, doping."

So, there has been this skepticism in France from the very beginning.

COSTELLO: And I know you're a fan of Lance Armstrong. And I know that from the very beginning there has been jealousy, because he won the Tour de France seven times, for god's sake. But the president of the governing body of the Tour de France says there is now scientific evidence. If this is true, can any action be taken against Lance Armstrong?

WILCOCKSON: In theory, there is no action that can be taken, because the tests for EPO didn't even exist when these samples were originally taken. And under the UCI, which is the governing body's regulations, there has to be two samples. The sample that's taken has to be split into two. And the athlete concerned has to have the benefit of the doubt. So, if there is a positive on the first sample, they have to test the second. In this case, obviously there was no second test. So, legally, there's no action they can do unless it is retroactively, as they had done with certain other riders.

COSTELLO: So, this all boils down to another accusation that no one can really prove, but Lance Armstrong is out there defending himself.

WILCOCKSON: Exactly. And, you know, he said yesterday this whole thing is preposterous. And I think most people in this country and most people who have followed Lance's career from the very beginning will say exactly the same.

COSTELLO: John Wilcockson, author of "23 Days in July." Thanks for filling us in.

WILCOCKSON: It's been a pleasure.

COSTELLO: It's just -- but, you know, a lot more is going to come out about this, because Lance Armstrong has a couple of lawsuits out, because these allegations have been made before. He has one against a book that was written, like, detailing allegations of hormone use and steroid use. And that lawsuit is now pending.

WALLACE: And also, it's very interesting, because I think if you look at how the French respond, I think -- what is it? A majority think that these allegations are true. But if you look at, I think an ESPN poll said a majority of Americans think the allegations are totally false.

COSTELLO: Yes, because it all boils down to that French-American thing for Americans.

WALLACE: Exactly. Carol, great seeing you, for stopping by. We'll see you, what, in 13 minutes on "AMERICAN MORNING?"

COSTELLO: Yes. You will indeed.

WALLACE: All right, Carol, thanks so much.

And we want you to know that Lance Armstrong is speaking out against these charges. An exclusive interview tonight on "LARRY KING LIVE" right here on CNN at 9:00 p.m. Eastern.

But first, this is DAYBREAK for a Thursday morning. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: And welcome back. It is 51 minutes after the hour, and here is what will be making news today.

More decisions today from the commission considering military base closures and realignments. The panel will decide whether to close Walter Reed Army Hospital in Washington and then take on some potential controversial decisions affecting the airports. In Japan, they're battening down the hatches, getting ready for a typhoon. The storm is on course to slam Tokyo with heavy rain and gusty winds. Oil refiners say shipments could be disrupted since they're being forced to suspend some operations.

And a newly-released tape from the John F. Kennedy Presidential Library offers a look at delicate diplomacy back in 1963. Top advisors warned the president the U.S. might have to use nuclear weapons to defend India from China. In this photograph, JFK huddling with Defense Secretary Robert McNamara -- excuse me -- and Joint Chiefs Chairman General Maxwell Fuller.

That's what's making news today.

When it comes to our pets, we are picky people indeed. But are your furry friends getting the best treatment when you take them to the vet?

"SmartMoney" magazine got the story of "10 Things Your Vet Won't Tell You."

Russell Pearlman is a senior writer at "SmartMoney," and he is here now with all of the details. I'm closing my computer there.

We don't have time, of course, Russell, to go through all 10, but let's go through five of them. The first one is dealing with costs. You all write: "Good thing you love Schatzi like a son. His care could cost as much." What do you mean?

RUSSELL PEARLMAN, SENIOR WRITER, "SMARTMONEY": That's right. Americans are probably going to spend about $20 billion or more this year on veterinary care, which is about triple what they did back in the early '90s. Some of it is just simple inflation. Some of it is vets realize, you know, people care about their pets, so they can charge more.

But also, you know, people want their elderly cats and dogs and canaries to live longer, healthier lives. So, they're willing to do CAT-scans, kidney transplants. Things that, you know, cost a lot of money in humans also cost a lot of money in pets.

WALLACE: Incredible indeed. Your second one you say, "I have more complaints filed against me than a used car lot -- not that you'll ever know about it." No better business bureau for vets, I guess.

WILCOCKSON: That's right. There is -- it's very difficult for you as a consumer, there is no kind of overarching things that will say this veterinarian is bad. You usually have to check with a state board to see if there are any complaints lodged against them. But even then, some states, you know, unless the person has been charged and fined with a certain disciplinary action, you still can't find out about whether they have any problems.

WALLACE: I love this one: "Sure, I can do a root canal on your pup -- real dentists are for people." What do you mean by that? WILCOCKSON: Well, I mean, you know, a vet can say they have a specialty in perhaps dentistry or dermatology. But, you know, if you want someone to be certified, there are 20 different kind of certificates that someone can get to say, you know, we are specialists in internal medicine. So, if your cat or dog has that problem, you might want to look for a vet that has actually been certified by the American Veterinary Health Association.

WALLACE: And this one: "Go ahead and sue. It will hurt you more than it hurts me," meaning not many options if I want to sue my vet.

WILCOCKSON: That's right. Let's say you suspect malpractice on your pet. However, most courts will essentially treat your cat or dog as property. Now, you may think of them as a member of the family, but in the courts' eyes, they'll probably be property. So, even if you win the case, odds are you'll only get fair market value for your pet, which if it's a mutt that you got from the shelter, $10 unfortunately.

WALLACE: And the final one, which is connecting to what you're talking about, "Our technology may be state of the art, but our industry regulations are still in the dark ages." Not a lot of regulations.

WILCOCKSON: That's right. If it's hard to find out if a vet has had lodged complaints, veterinary hospitals are even more so. You know, there are some states that, you know, that don't even inspect their hospitals.

So, you just have to be careful. Try to find out as much as you can. And the best way to find a vet is to get a referral from someone you trust for a vet that they trust.

WALLACE: Important information, because we know pet owners want to do anything possible for their pets.

WILCOCKSON: That's right.

WALLACE: Russell Pearlman, senior writer at "SmartMoney" with "10 Things Your Vet Won't Tell You." Thanks for being here on DAYBREAK.

WILCOCKSON: Thanks for having me.

WALLACE: We appreciate it.

And when we come back, your chance to win a coffee mug and also a look at your travel forecast. This is DAYBREAK for a Thursday morning. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: Chad, I always love this moment every morning.

CHAD MYERS, CNN METEOROLOGIST: It's time to give away a coffee mug. I have the questions and the answers and the winner right here. Let's go to it right now.

What is the proposed mileage for new cars under the new fuel economy plan? And that answer was 27.5 miles per gallon. And who is the chairman of the BRAC panel? That's Anthony Principi.

And the winner, the winner from Florida, Winter Park, Florida, Drew Shackelford. Congratulations. Your mug is in the mail.

Now your chance to win one again today. Here are the questions. What state just set the first cap on wholesale gasoline prices? And number two, who is the director of the Tour de France?

Go to CNN.com/daybreak. It's on your left. There's a link there. Click on it. Give us your opinion. Give us your answers right there in the box where it says "comments." And we'll give you a coffee mug tomorrow if there is not breaking news with this thing behind me.

WALLACE: I think there might be, Chad. We might have a busy morning tomorrow.

MYERS: Katrina.

(WEATHER REPORT)

WALLACE: Have a great day, everyone. From the Time Warner center in New York, I'm Kelly Wallace in today for Carol Costello. "AMERICAN MORNING" starts right now.

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