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Walter Reed Medical Center to be Closed; Cindy Sheehan Returns to Bush's Crawford Ranch; Peru Plane Crash Under Investigation

Aired August 25, 2005 - 09:30   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back, everybody. It is exactly half past the hour on this AMERICAN MORNING. I'm Soledad O'Brien.
CAROL COSTELLO, CNN ANCHOR: And I'm Carol Costello, in for Miles this morning.

Coming up, a federal commission deciding which military facilities to close is back at work this morning.

O'BRIEN: Washington's Walter Reed Hospital, one of the most well-known facilities -- it actually could be shut down. Some very important decisions are expected very soon. We're going to take a look at that just ahead.

First, though, Tropical Storm Katrina. She's inching closer to southern Florida, expected to reach hurricane strength. Residents are taking no chances. They're boarding things up, just in case Katrina hits. The storm is expected to bring, at the very least, a whole lot of rain.

(WEATHER REPORT)

O'BRIEN: There are other stories making news this morning. Let's get right to Kelly Wallace. She's got the other headlines. Hey, Kel.

KELLY WALLACE, CNN CORRESPONDENT: Hello there, Soledad, and good morning everyone.

Now in the news, new developments to tell you about out of Baghdad this hour. Authorities say they have found 36 bodies in a small river south of the Iraqi capital. They all appear to have been shot in the head. Police say the bodies may have been there for as long as five days. Meantime, it looks like Iraqi lawmakers may not make another deadline for the country's draft constitution. A meeting of parliament has been called off for today and no new date has been set. The Iraqi people are expected to vote on that document by October 15.

Meantime, more American troops will be heading to Iraq. The Pentagon says it is sending 1,500 more paratroopers ahead of fall elections in Iraq. They will be from the 82nd Airborne Division out of Ft. Bragg in North Carolina, and those troops are expected to deploy in mid-September. Hawaii has become the first U.S. state to put a cap on gas prices. The state public utilities commission says wholesalers cannot charge more than a total of about $2.67 for a gallon of regular gasoline in Honolulu. Wednesday's average price there was $2.76, a record high.

And soul legend Ray Charles getting a unique gift for what would have been his 75th birthday. A post office is now named after him. The Ray Charles Station is just blocks away from the recording studio where Charles produced "Georgia On My Mind" and his final album. Ray Charles died in June of last year from liver disease. Good for him and his family.

Now to Soledad and Carol.

O'BRIEN: That's a nice honor for him. Kelly, thanks.

WALLACE: Sure.

O'BRIEN: Some new developments to tell you about in that story on base closings. A federal commission voting to close down Walter Reed Hospital in Bethesda, Maryland.

David Ensor is live at the Pentagon for us. David, what's the significance of this vote today?

DAVID ENSOR, CNN CORRESPONDENT: Well, Soledad, this is a pretty important vote. It just took place moments ago. This is one of a very, very large number of bases and facilities that the base commission is looking at, and they just voted to close the Walter Reed Army Hospital here in Washington, D.C.

This is a hospital full of history. It is the largest army medical facility in the country. And it is a major move here. Now, most of these people, 5,630 personnel, are affected by this action. The majority of them will be moving to the Bethesda Naval Hospital, also in this area. But there are quite a few people being laid off as well.

This is a hospital that was built back in 1909. And as I say, it's a part of history, really, both in this area and for the country. So this is just one of the many fairly dramatic changes that the base commission is looking at making in the -- we are expecting later today that they will look at some quite dramatic changes in the Air Force structure, including possibly closing Ellsworth Air Force Base in South Dakota and Canon Air Force Base in New Mexico. Those are very closely watched, obviously, by the senators, governors and others from the delegations from those states.

Very much hoping that the base commission can be talked out of those moves. And, of course, yesterday you may recall the base commission did decide to go against Pentagon recommendations and keep a couple of major facilities in New England open. So it could happen -- Soledad?

O'BRIEN: Wow. Yes, but pretty shocking information. Walter Reed, as you mentioned, not only because more than 5,000 people are employed there, but the history as well. That's pretty big news.

ENSOR: It's a big development, yes.

O'BRIEN: Yes, a huge development, I think it's fair to say. David Ensor for us. We're going to monitor that, of course, too -- Carol?

COSTELLO: Cindy Sheehan is back at her camp outside of President Bush's ranch in Crawford, Texas, today. The president is also back at the ranch this morning.

Ed Lavandera is, too. Ed, will Sheehan be back in front of the cameras and the microphones today?

ED LAVANDERA, CNN CORRESPONDENT: She will. We expect her to speak with us in a few hours. She only spoke briefly yesterday when she arrived at the airport in Waco. But again, reiterating that now that she is back, she is here to stay. President Bush, as well, reiterating that he doesn't really have any intentions to meet again with Cindy Sheehan. Both sides are determined.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): The cheering and jeering says it all. Cindy Sheehan left Crawford last week, as the central figure in the protests that have taken over Crawford, Texas. She returned part hero, part villain. After a six-day absence because of her mother's illness, Sheehan say she's back to accomplish her mission, meet with President Bush and demand that American troops be brought home.

CINDY SHEEHAN, WAR PROTESTER: This is where I belong, so until August 31st, like I told the president.

LAVANDERA: The friction in Crawford is sizzling. President Bush supporters have set up competing camps. They lined the country road leading to the president's ranch, reminding Sheehan as she drove by, this is Bush country. For several days, Cindy Sheehan's protest sites were quiet, but her return has re-energized fellow anti-war activists. Under the big tent, supporters put up a banner-sized painting of Sheehan's son. And for a moment politics and protest seemed to vanish. This was about a mother grieving the loss of her son.

Sheehan has only met a few of the people who have camped here for days to support her cause. Some take her picture. Others try to make her laugh.

UNIDENTIFIED MALE: You know what this is here? this is the Jedi camp. Because if that ain't the evil empire, I don't know what is.

LAVANDERA: The debate has escalated, each side seeing the other as evil and anti-American.

Supporters of President Bush are caravanning from California to Texas. They clashed with anti-war protesters along the way in Phoenix Wednesday. They're coming to Crawford, because they say Cindy Sheehan does not speak for them.

UNIDENTIFIED MALE: It's outrageous that a mother would protest her son's death like she's doing. She's completely off base.

(END VIDEOTAPE)

LAVANDERA: Now, those supporters of President Bush, who are caravanning from California to Texas, are expected to arrive here in Crawford sometime this weekend -- Carol.

COSTELLO: Ed Lavandera, live in Crawford, Texas this morning.

O'BRIEN: Flight recorders from a plane crash in Peru have been recovered and are being sent to Washington D.C. to be analyzed. The TANS Airline flight went down in the jungle on Tuesday, just two miles short of the runway. It was headed to Pucallpa from Lima. Airline officials said 57 of the 98 people on board survived, 31 killed, 10 are kill unaccounted for.

Harris Whitbeck has more for us on the survivors.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN ANCHOR: A young girl describes her experience after surviving Tuesday's crash of the airline 737.

JOSHELYN VIVAS, CRASH SURVIVOR: To me, it was like a shocking present. Like I was so scared, but at least I came flew. And if this present gave me a lot of bravery now, a lot, to me like to worship actually to god, like I now really trust that and I still believe that god is still exists.

WHITBECK: In Lima, Peruvian Air Force planes land at a military base carrying 11 survivors. The survivors on stretchers are immediately taken to area hospitals.

Anez Vivada (ph) and her husband sat outside the air force base Wednesday afternoon, waiting to find out if family members were alive. Their infant nephew, nine-year-old niece and three other family members were passengers on the TANS airliner that crashed into the jungle of northern Peru Tuesday afternoon. Anez was able to talk to a doctor at the crash site who told them the two children and their mother survived. But they still have no information on the fate of the children's grandparents.

Anez says she first heard of the crash on the local news on Tuesday evening. At first, she says, she refused to believe her family was onboard the plane.

"At first I thought it couldn't be true," she says. Now she refuses to lose hope.

WHITBECK: Even with the arrival of first group of survivors, the uncertainly is palpable. Family members say they have received little news from either the airline or from Peruvian officials, and weather conditions at the site have made recovery efforts difficult. (on camera): Many survivors have They have decided to stay near the crash site to try to retrieve luggage and personal items, first steps toward piecing together lives that were shattered in the jungle crash.

Harris Whitbeck, CNN, Lima, Peru.

(END VIDEOTAPE)

O'BRIEN: Authorities believe the plane might have gone down as a result of heavy crosswinds.

Still to come this morning, she is a mother on a mission to get her mayor booted out of office. Is it going to work? We're going to meet her up next, on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: We are your hurricane headquarters. We have the radar loop going for you right now. Katrina has been a confounding storm. It's -- really the computer models are confused by it. But Chad is saying it probably will hit between Broward and Dade County about five to six hours from now. So if you're living there, please be prepared.

We're also going to tell you about the box we have to your right, at the bottom of the screen. We're going to leave this up all day long. Let's put it up right now. We're going to leave it up all day long so you can keep track of Katrina for yourself, because CNN is your hurricane headquarters.

O'BRIEN: That's pretty cool. You can monitor even when we're talking about other things.

COSTELLO: I like that.

O'BRIEN: Looks good. That box right there.

Another story this morning, the mayor of Spokane, Washington, might be facing a recall vote this fall. It's due to a single mom who's on a one-woman crusade to, in her words, give the people of Spokane a voice.

(BEGIN VIDEOTAPE)

SHANNON SULLIVAN, SPOKANE RESIDENT: The trust, I believe, of our good city has been violated. That is why I put in the petition...

O'BRIEN (voice-over): Spokane resident Shannon Sullivan, an unemployed mother with no legal training, has been leading the charge to remove the city's mayor, James West.

On Wednesday, the Washington State Supreme Court ruled her recall petition can go forward.

SULLIVAN: I want the people of Spokane to have a voice and to be heard. O'BRIEN: Sullivan filed the petition in may, after newspaper reports accused West of offering a city internship to a decoy hired by the paper. A decoy Sullivan allegedly met in a gay online chat room. The newspaper published the story after an 18-year-old high school student said he met the mayor online, and later met him for consensual sex. The mayor denies any misuse of his office. In court, his attorneys argued, unsuccessfully, that Sullivan's petition was without merit.

UNIDENTIFIED FEMALE: The constitution says that the right of recall has to be based on cause. It is not a recall at will.

O'BRIEN: West is rejecting calls from the city council and fellow Republican leaders to resign. Shannon Sullivan's attorney says the ruling by state's highest court is important to the people of Spokane.

JERRY DAVIS, SULLIVAN'S ATTORNEY: So we finally get a chance to know the real Jim West and decide whether he should stay or whether he goes.

O'BRIEN: As for Sullivan who washed cars to raise enough money to take the legal action, she says it was all worth it.

SULLIVAN: Awesome. Wonderful. The justice system did not let me down.

QUESTION: Now what?

SULLIVAN: Now what? Now we wait five days and the petitions hit the streets.

(END VIDEOTAPE)

O'BRIEN: Shannon Sullivan needs 12,600 signatures to get the measure on a ballot.

COSTELLO: CNN LIVE TODAY coming up next.

Daryn, what are you working on this morning?

DARYN KAGAN, CNN ANCHOR: Well, because we are the hurricane headquarters, Carol, we are going to continue -- you didn't know that, did you? You did not know that, of course. We're going to continue our hurricane watch. Imagine this opportunity, flying into the eye of the storm. We'll talk live with a hurricane hunter just back from a sky-high view of Katrina.

Plus, with booming home prices, it's a fast and easy way to get much-need cash. We're talking about home equity loans. Can it come back to bite you in the budget? It's a must-see top five tip for homeowners. It's all ahead at the top of the hour.

O'BRIEN: Did she say bite you in the budget?

KAGAN: Yes, I did. COSTELLO: I love that.

O'BRIEN: I like it, like it.

COSTELLO: Thank, you Daryn. We'll see you at 10:00.

Coming up, a popular video game character is heading to the big screen. We're "Minding Your Business."

O'BRIEN: Who?

COSTELLO: Well, you'll have to wait to find out. That's coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back, everybody. An Internet phone company gets ready for a big debut and another popular video game makes its way to Hollywood.

With those stories, plus a look at Wall Street this morning, Ali Velshi's in for Andy Serwer. He's "Minding Your Business." Good morning.

ALI VELSHI, CNN CORRESPONDENT: Good morning.

O'BRIEN: What do you want to start with?

VELSHI: Well, let's start with the markets. Quick look at the markets. Oil prices have come back a little bit, so markets have opened up a little bit higher. Jobless claims came in today, which put them at the lowest level in four years right now. So you're seeing a slightly higher Dow.

Now, let's talk about VoIP for a second. This Internet telephone service.

O'BRIEN: Voice-over Internet Protocol.

VELSHI: Voice-over Internet Protocol Some people don't -- still don't realize, this isn't computer to computer talking. This is your regular phone. You just get a little thing, you plug it in, and you're -- you make phone calls over your Internet line. But it doesn't mean -- you dial and you answer the same way. Now, you've tried this out.

O'BRIEN: Uh-huh.

VELSHI: Some people say the quality's not as clear as a regular phone.

O'BRIEN: It's way better than it used to be, but it's...

VELSHI: But it's way better than it used to be, and it's a lot cheaper. Now the biggest company in this game is Vonage. Sort of the sleeper success. 800,000 people use their service. 600,000 use Time Warner and Cablevision has about 500,000. This is going to be big. Four million users by the end of the year. Vonage hasn't announced -- we have it from sources over at the "Daily Deal" -- that they're going to come out with an IPO, and that should be pretty hot.

O'BRIEN: Yes, that will be really interesting.

VELSHI: Yes.

O'BRIEN: I mean, it's clearly the wave of the future.

VELSHI: It absolutely is.

O'BRIEN: Just a matter of when it really catches on. You were talking about the move to the big screen from video game.

VELSHI: Yes. "Halo." "Halo 2" last year when it came out -- this is Microsoft's video game -- I don't play much in the way of video games, but made $125 -- million dollars on its first day.

O'BRIEN: I was going to say, only a $125? That's not so good.

VELSHI: Yes, $125 per, I think. This is the master chief, is their main character. That may or may not be master chief, because I wouldn't know. But they made a deal with Universal Pictures and 20th Century Fox to make a movie of this. It's not going to be animated. It will be live action, and it should be out in about 2007. Microsoft made $40 billion last year. They don't need the revenue. It's about the brand.

O'BRIEN: And who's going to star in it, is what I want to know?

VELSHI: That's a good question. Because it's not animated. That means I have a chance.

O'BRIEN: Uh-huh.

VELSHI: Uh-huh.

O'BRIEN: Sure. Ali, thanks -- Carol.

COSTELLO: Right. Let's talk about high gas prices now, shall we? They're affecting many, including the president. It turns out it's getting pretty darned expensive to escort the president around. With all the heavy armor and thick bullet-proof gas, filling the tank on President Bush's limo ain't cheap. Not to mention the dozen or so vehicles that travel in the motorcade. And the Air Force says it now costs about $6,000 an hour -- $6,000 bucks an hour to keep Air Force One flying. And, of course, you know who pays that bill. That would be you and me.

"CNN LIVE TODAY" is up next. And tomorrow on AMERICAN MORNING, our special series "School Days." How you can make sure your kids make smart decisions when it comes to sex, drugs and alcohol. We'll talk to Dr. Drew Pinsky. That's tomorrow morning at 7:00 Eastern.

We're back in a minute.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back, everybody. Before we leave you for the morning, we want to show you something that Kelly showed you a little bit earlier. Take a look at this. This is a 400-pound butter -- 400 pounds of butter, roughly two kagillion (ph) calories of butter. It's a sculpture, believe it or not, feature a family. They're drinking milk at the breakfast table. I wonder why they're drinking milk? I mean, why did he sculpt this?

COSTELLO: They're churning it into more butter.

WALLACE: It's all American!

O'BRIEN: Oh, really? She's making that up. Anyway, the artist is a guy named Jim Victor. He's used seven 55-pound blocks of butter to make the sculpture. The buttery masterpiece is being displayed, of course, in a refrigerated case because to do otherwise would be a big mistake.

COSTELLO: I love those. Haven't you ever seen that before?

O'BRIEN: I've never been to a state fair in my life.

WALLACE: Get out!

COSTELLO: We're going to have to take you.

O'BRIEN: We were talking about off-camera, and I guess this is typical...

COSTELLO: I love state fairs.

O'BRIEN: ... to do butter sculptures?

COSTELLO: You've never eaten elephant ears at a state fair?

O'BRIEN: Is that a food? Seriously. That's not really...

WALLACE: I can't say I've eaten elephant ears. I've been to a state fair, Carol. Haven't eaten elephant ears.

O'BRIEN: I haven't lived if you haven't had an elephant ear.

COSTELLO: Well, we're going to the state fair this year, Soledad.

(CROSSTALK)

WALLACE: A week-long series on AMERICAN MORNING. We're going to the fair!

O'BRIEN: I like it, girls.

WALLACE: Love it. O'BRIEN: Let's get right to Daryn Kagan. She's at the CNN Center. Going to take you through the next couple of hours on "CNN LIVE TODAY."

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