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CNN Live At Daybreak

President Promising Immediate Financial Help to Everyone Displaced by Hurricane Rita; Head of New Orleans Police Department Says It's Time to Go

Aired September 28, 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 Wednesday, September 28.
Checks are coming. The president is promising immediate financial help to everyone displaced by hurricane Rita.

The head of the New Orleans Police Department says it's time to go, I'm retiring.

And the former head of FEMA says yes, he made mistakes, but Louisiana leaders made more serious gaffes.

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

COSTELLO: And good morning to you.

We'll have more on those stories in a moment.

Also ahead, she was thrown into the national spotlight in the Atlanta courthouse shooting. Now, Ashley Smith tells her story, with a twist.

But first, now in the news, a suicide bomber in Iraq has claimed at least five lives. It happened in Tal Afar, near the Syrian border. The bomber this time, a woman. At least 30 people were hurt.

Israel is firing back. It launched air strikes in central Gaza and in Gaza City today. The attacks are in retaliation for dozens of recent rocket attacks by Palestinian militants on Israeli targets.

President Bush will talk about the war on terror in Iraq this morning. CNN will bring that to you live at 10:20 Eastern.

To the Forecast Center -- good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: President Bush says he knows times are hard for the victims of hurricane Rita, but he wants them to hang tough. President Bush got a firsthand look at Rita's devastation and reviewed the relief efforts on the Gulf Coast. He also promised that FEMA would distribute $2,000 in emergency aid per household, the same amount Katrina victims got. The president says he understands that residents want to go back home, but he urged them to be patient.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I understand there's a lot of frustrations with the people who left this part of the country. People who are scattered around want to come back and see their homes and they want to come back to the communities they love. But it's very important for them to understand that now is not the time to come back, until they get the utilities up and running and until they can get the sewer systems running, and until they can get some water people can drink.

(END VIDEO CLIP)

COSTELLO: And speaking of going home, take a look at this. Here's what some residents of St. Bernard Parish in New Orleans, near New Orleans, are facing. Tomorrow marks a month since hurricane Katrina tore through, essentially destroying everything in its path. People returning to whatever is left of their homes say that even though they've seen the pictures on TV, nothing could prepare them for what they're finding. Some say dozens of neighborhoods will have to be bulldozed before there's even a chance for rebuilding.

In the meantime, next door, in New Orleans, some residents are making their way back to their neighborhoods. But for many, it sure doesn't feel like home.

Here's what one woman told Anderson Cooper about what hurricane Katrina has stolen from her.

(BEGIN VIDEO CLIP)

KATHY SINGLETON, NEW ORLEANS RESIDENT: It's gone. We have nothing. It's gone. It's just -- I don't know how to describe it. It's just, I don't want to go back to it. You know, last week we came in and were, I guess, like in a state of shock. We tried to retrieve everything.

ANDERSON COOPER, CNN CORRESPONDENT: You tried to pick up objects and...

SINGLETON: Objects, anything. Anything that was tangible that you could take with you, because it's gone. When I say we have nothing, I have nothing.

The house I can live with, but it's the content in the house. You know, it's just...

COOPER: And you tried to clean those objects and...

SINGLETON: I tried to take clothes and tried to wash and I have washed and washed and washed, and the stench is still in the clothing.

(END VIDEO CLIP) COSTELLO: The mold inside those homes is something else, and also the mud, which is, of course, toxic. So that's why they can't really save anything.

The aftermath of hurricane Rita could prove deadly to shellfish off the Texas coast. Scientists say Rita caused optimum conditions for red tide near South Padre Island. Dead fish have already started washing up onshore. Red tide chokes off oxygen in the water and can cause toxins to build up in shellfish.

Let's talk about finger pointing. It's certainly nothing new on Capitol Hill. But in House hearings on FEMA, the so-called blame game made for some very good television. The testimony and acrimony centered on former FEMA chief Michael Brown.

CNN congressional correspondent Ed Henry was there.

(BEGIN VIDEO TAPE)

ED HENRY, CNN CORRESPONDENT (voice-over): Michael Brown was grilled for over six hours and spent most of the time shifting blame.

MICHAEL BROWN, FORMER FEMA DIRECTOR: My biggest mistake was not recognizing by Saturday that Louisiana was dysfunctional.

HENRY: Brown was referring to the weekend before Katrina hit, when Louisiana Governor Katherine Blanco and New Orleans Mayor Ray Nagin were slow to call for a mandatory evacuation. The former FEMA director charged that delay was a tipping point for everything that went wrong.

MAYOR RAY NAGIN, NEW ORLEANS: I think it's unfortunate. I think that for a FEMA director to be, you know, in Washington and trying to deflect attention off of his performance is unbelievable to me.

HENRY: The reaction was just as rough in the hearing room, especially when Brown claimed he was merely a coordinator during the crisis.

REP. CHRISTOPHER SHAYS (R), CONNECTICUT: Well, and that's why I'm happy you left, because that kind of, you know, look in the lights like a deer tells me that you weren't capable to do the job. I would have liked if you do a (UNINTELLIGIBLE)...

BROWN: I take great umbrage to that comment, Congressman.

SHAYS: Why?

BROWN: Because FEMA did -- what people are missing in this entire conversation is the fact that FEMA did more in hurricane Katrina than it did in Charlie in Florida and the others.

SHAYS: Why is that relevant?

BROWN: We moved all of those in there.

SHAYS: Why is that relevant?

BROWN: We did all of those things and things were working in Mississippi and things were working in Alabama.

SHAYS: No, but see why I don't -- why...

BROWN: And so I guess you want me to be the superhero that is going to step in there and suddenly take everybody out of New Orleans.

SHAYS: No. No, what I wanted you to do was to do your job of coordinating.

HENRY: Brown claimed that before the storm, he privately warned the Bush administration and unnamed lawmakers that FEMA was not getting enough funding. This led a Republican to charge the reason Brown is still on the federal payroll for another month is that he's being paid back for not going public with the budget problems.

SHAYS: And so I'm left with the feeling like the administration feels they have to protect you because you warned them. But you didn't warn us.

BROWN: Well, you should come over here and sit in this chair and see how protected you feel, feel how it feels to be yanked out of where you were trying to do your damndest to make something work and told to go back home and make the decision that you're going to quit because you're no longer effective. And you're no longer effective because the media is spreading lies about a resume.

SHAYS: No, because you didn't do a good job is why you were let go, because you were clueless about what was happening.

HENRY: Only two Democrats showed up for the hearing, with most boycotting because they say the Republican led probe will let the White House off the hook. They want an investigation by an independent commission instead.

But Republicans did press Brown when he tried to dodge a question about his conversations with President Bush and top aides about Katrina.

UNIDENTIFIED MALE: Mr. Brown, excuse me.

Mr. Brown, you discussed it with the "New York Times."

BROWN: Yes.

UNIDENTIFIED MALE: So I think you -- at least what you shared with the "New York Times" I think you could share with this committee.

BROWN: I told them we needed help.

HENRY (on camera): Governor Blanco was blistering in her response, firing back that these falsehoods show that Mr. Brown is either out of touch with the truth or reality.

Ed Henry, CNN, Capitol Hill.

(END VIDEO TAPE)

COSTELLO: Another surprise out of New Orleans. It has a new acting police chief. The superintendent, Eddie Compass, says he is leaving his post to pursue other opportunities.

The big mystery this morning is why?

Compass faced some tough questions in the aftermath of hurricane Katrina when hundreds of police officers deserted the city.

His assistant will fill in as temporary chief.

As you know, about 250 officers face discipline for leaving their posts.

But at least one officer says it wasn't a case of cowardice.

(BEGIN VIDEO CLIP)

LT. HENRY WALLER, AWOL NEW ORLEANS POLICE OFFICER: We listened to the radio and we're hearing the things, the water's still rising, the water's still rising, the water's still rising, the looting is this, the looting is that. And I started thinking, I said, well, you know, we've been hearing this story about the levees breaching all day. What if they're right and I get stuck in this car? I'm no good dead.

I said we'll go back tonight, you know, and I'll head back in the morning once we have a better grasp of what's going on.

CYNTHEIA WALLER, WIFE OF AWOL COP: I need my husband. And if they want to blame somebody for him leaving, tell them to blame me, because it was me who was literally begging him to stay. Call me a crowd, call me selfish.

H. WALLER: In a time of ultimate crisis, who needs me more -- the police department or my wife? And it was a no brainer for me.

LT. TROY SAVAGE, NEW ORLEANS POLICE: Everybody had a wife. Everybody's got families. Everybody needed to see them. But we didn't. We all didn't flee. We all didn't run at a time of crisis. And, you know...

(END VIDEO CLIP)

COSTELLO: Those officers that did go away will face tribunals. We'll be talking more about that on AMERICAN MORNING.

Let's talk more now about the chief, Eddie Compass.

He stood up for his remaining officers several times, calling them heroes.

The New Orleans mayor, Ray Nagin, praised Compass and his decision to walk away.

(BEGIN VIDEO CLIP)

NAGIN: He's kind of like Jim Brown, who was a great football player. He won championships. He won the Russian titles. He did great things on the field. And then at the height of his career, when he had done and accomplished what most people only dream of, he decided to retire on top. And you have to respect someone who makes that kind of decision.

(END VIDEO CLIP)

COSTELLO: But, again, why? I mean does that really explain it?

For more on the change on the force, we're joined by CNN's J.J. Ramberg.

She's in New Orleans this morning -- what are you hearing there?

J.J. RAMBERG, CNN CORRESPONDENT: Good morning, Carol.

It's interesting, he didn't give a reason. We haven't heard an explanation as to why the superintendent resigned. But there are all sorts of surmises, people thinking about what they believe happened.

He was under a lot of criticism, as we know, one, because of the defections out of his police force. At least 250 of his officers deserted. They're under investigation right now, or they're going to be under investigation. Also, there was a lot of criticism for the things that he said in the wake of Katrina, things about thousands of people in their houses dead, about babies being raped in the Superdome and the convention center. And a lot of people have taken, or have been criticizing the chief for that.

But even before Katrina, there were reports that there was a strange relationship between Mayor Nagin and the superintendent. They said that they were good friends, but once they both got into this position, something was happening. There was a strange relationship. There were reports of a lot of corruption here, at mostly lower levels, but a lot of corruption. And, also, the death rate, the murder rate was rising. And so there are thoughts here that maybe he would have resigned even if Katrina hadn't happened.

COSTELLO: Well, you know, it's interesting, when I was in New Orleans last week, they really put the clamps down. The mayor put the clamps down on what Eddie Compass could say. In fact, he wasn't allowed to speak to the press on camera unless he got permission from Mayor Nagin. So despite all of those glowing things that Mayor Nagin said about Eddie Compass, maybe Mayor Nagin did have a role in pushing him out.

RAMBERG: Yes, it's very possible. And it's interesting that he put those reigns on him, because Eddie Compass was really all over the media in those days after Katrina. He was on "Oprah" even. You can't get much bigger than that.

And so to put the reigns on him certainly is sending a message.

COSTELLO: Yes, I saw him on "Oprah." I mean he was very theatrical. He was crying. It was very moving and emotional. But, again, as you said, he said things that turned out not to be true and it just only added to the panic and chaos in the city, at least according to some.

J.J. Ramberg live in New Orleans this morning.

Still to come on DAYBREAK, she was thrown into the spotlight for her role in the Atlanta courthouse shooting. Now, Ashley Smith reveals the story behind the story.

And later, the new Supreme Court session could get off to a good bit of controversy.

Plus, a shootout leads U.S. military forces to an al Qaeda leader.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 6:16 Eastern.

Here's what's all new this morning.

Twenty-two-year-old Army Reservist Lynndie England has been sentenced to three years behind bars. On Monday, a military jury convicted her of detainee abuse at Iraq's Abu Ghraib Prison.

In money news, health insurer Wellpoint has agreed to buy Wellchoice for almost $6.5 billion in cash and stock. The deal gives Wellpoint a stronger presence in the Northeast.

In culture, 10 years after it was written, a screenplay from rapper Tupac Shakur is in production. "Live To Tell" is about an inner city black youth who becomes a drug kingpin and later goes straight. The rapper was killed in 1996. His murder remains unsolved.

In sports, the Atlanta Braves have clinched their 14th consecutive division title, taking the National League East. It happened last night with a 12-3 victory over the Colorado Rockies.

And hey, Chad, before we get to weather...

MYERS: Yes?

COSTELLO: Yes, we have the AAA average for gas.

MYERS: Oh, yes, yes.

COSTELLO: Are you ready?

MYERS: Yes.

COSTELLO: OK.

MYERS: It went up.

COSTELLO: Yes. Just by 2/10 of a cent.

MYERS: Oh.

COSTELLO: It stands at $2.81 a gallon.

MYERS: Yes.

COSTELLO: Now you know.

MYERS: Well, that's not bad. Because my -- I drove by, it was $2.79. So that's right on the money. So, I love it. You know, that's up to date, Carol. I'm glad you read that every day.

(WEATHER REPORT)

COSTELLO: That's a look at the headlines for you this morning.

She's been called a hero and an angel, but Ashley Smith admits she's a former crack head. Smith gained fame when she turned in Atlanta courthouse shooting suspect Brian Nichols back in March. At the time, she said she read him the bible during their seven hour ordeal. Now in her new book, she admits she also gave him crystal meth, or ice.

In her book, "Unlikely Angel," Smith says, "I was not going to die tonight and stand before god having done a bunch of ice up my nose." And that means she gave the crystal meth to Nichols that night, but she did not take it herself. And that was the reason why.

She also says, "I haven't touched drugs since walking out of my apartment on March 12. Initially, I did not volunteer the information about the drugs. I was afraid. Later, I came forward and shared the details about the drugs with the appropriate authorities, but I regret not having done so at the very beginning."

The book, "The Unlikely Angel," is on bookstore shelves now and also on Amazon.com, if you're interested.

Still to come on DAYBREAK, an update in the case of a popular casino and accusations employees misused surveillance cameras.

Plus, some grim economic news has investors a bit skittish. Carrie Lee explains in three minutes.

But first, good morning Boston.

(COMMERCIAL BREAK)

COSTELLO: Time for a little "Business Buzz" right now.

A gamble by four security workers at Cesar's Atlantic City Hotel/Casino failed to pay off. The four were accused of using surveillance cameras to ogle women, you know, like shooting down their dresses and shirts. The case is now settled. They've agreed to pay out $185,000. The casino, that is. The four workers have been fired.

Consumer confidence takes a big hit in August.

Carrie Lee is here with more on what is worrying us and why that is worrying retailers.

CARRIE LEE, CNN CORRESPONDENT: It all comes together, Carol.

Consumer confidence yesterday falling to its lowest level in two years. Much weaker than expected. This according to the Conference Board's survey of 5,000 households. The index dropped by 19 points, and that is the biggest point decline since October of 1990. That was when gas prices spiked prior to the first Gulf War.

Twenty percent of those surveyed expect business conditions will get worse in the next six months. That's twice as much pessimism as last month.

So what is worrying people? Well, the two obvious factors, the recent hurricanes and high gas prices. But as winter approaches, people are also worried about the cost of heating their homes and the strength or weakness of the job market has people worried, as well, especially with nearly a quarter million people out of work due to Katrina.

A quarter of those surveyed said there will be fewer jobs available in the coming months and that jobs will be hard to get.

And this is worrying retailers, the pessimism is, because as Americans spend more to fill their cars and heat their homes, that means they'll spend less in the upcoming holiday shopping season.

COSTELLO: Well, they have no choice.

LEE: Exactly. And consumer spending is very important. It drives two thirds of our economy. So it all comes together and a rather pessimistic outlook.

The question is going to be will we see weakness next month? Is this a one time event or is this a bigger trend?

COSTELLO: We'll see.

LEE: Yes.

COSTELLO: A quick look at the futures?

LEE: Yes, futures looking up a bit today. We do get a look at durable goods orders, those big ticket expensive items like cars, refrigerators. But a mixed market yesterday. COSTELLO: Thanks, Carrie.

LEE: OK.

COSTELLO: Still to come on DAYBREAK, the U.S. military is chalking up a victory in their pursuit of a high profile al Qaeda man. We'll have more details on how he was killed and what he means to al Qaeda. I guess what his loss means. That's next.

Also, an emotional announcement from the head of the New Orleans Police Department. He quits.

All this and much more as DAYBREAK continues.

(COMMERCIAL BREAK)

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

COSTELLO: And good morning to you.

Thank you for waking up with us.

Chad will be along with your forecast in just a minute.

Also coming up this half hour, we've got much more on the Michael Brown testimony. Senior political analyst William Schneider will join us live from Washington with his take.

And the top cop in New Orleans is leaving. We'll hear what he had to say to the Crescent City and try to figure out why he's leaving.

But first, now in the news, a suicide bomber in Iraq has killed at least five people. It happened in Tal Afar near the Syrian border. The bomber was a woman. At least 30 people were injured. We'll get more on that in 15 minutes. We'll take you live to Baghdad.

President Bush is scheduled to talk about the war in Iraq in just about four hours. CNN will bring that to you live at 10:20 Eastern.

Former Bush adviser, now Undersecretary of State Karen Hughes, is in Turkey today. This is the last stop on her first Mideast mission to try to improve America's image in the region.

To the Forecast Center and Chad -- good morning.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Did FEMA fail the people of Louisiana? That's what they're trying to determine on Capitol Hill. The former FEMA director, Michael Brown, told his story to the House committee investigating the federal response to hurricane Katrina. Brown responded to his critics by saying it wasn't all my fault. He blamed officials in Louisiana for their failure to fully evacuate New Orleans and pointed to positive feedback in Alabama and Mississippi.

But Brown did admit that he could have done some things differently.

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