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CNN Live At Daybreak

NTSB Plans Boating Accident Re-Enactment; Bush Comments Aimed at Conservatives Opposed To Miers; Sun Microsoft, Google Announce Multi-Year Alliance

Aired October 05, 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, DAYBREAK: It is Wednesday, October 5. Looking for answers with a re-enactment. That is the next step for investigators to find out what went wrong on an Upstate New York lake.
The bottom line forces New Orleans' mayor to do something he calls horrible.

And Americans weigh in on the president's new Supreme Court nominee.

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 the president asks Congress for new powers over the military, not because of terrorism but a medical threat.

And she went to jail because she would not reveal her sources. Now the "New York Times" journalist is speaking her mind.

But first, "Now in the News": An alleged Mexican drug kingpin wakes up in a federal jail this morning. Agustin Haro-Rodriguez is accused of smuggling cocaine valued at more than $85 million into the United States. He was arrested Sunday night allegedly trying to enter the States illegally.

Six Pakistani air force officers have been convicted for their role in the 2003 assassination attempt on President Pervez Musharraf; four have been sentenced to death, two other to life in prison.

The Supreme Court hears arguments this morning on an Oregon law that allows doctors to assist terminally ill patients wanting to end their lives. The law lets dying patients get lethal doses of medication from their doctors.

To the Forecast Center and Chad. Another tropical depression?

(WEATHER FORECAST)

COSTELLO: A first this hour, efforts to find out what went wrong on that tour boat on a lake in Upstate New York. Federal officials will be doing tests today hoping to determine whey the boat capsized on Sunday, killing 20 people. In the meantime, those who witnessed the aftermath of the accident are sharing what they saw.

(BEGIN AUDIO CLIP)

UNIDENTIFIED FEMALE: Oh, my god. Oh, my god. A boat, a boat, a boat went over. Just outside, the Ethan Allen, just outside of Green Harbor.

9/11 OPERATOR: Green Harbor?

UNIDENTIFIED FEMALE: It tipped right over.

9/11 OPERATOR: How many people in the boat?

UNIDENTIFIED FEMALE: Oh, a lot of people. They're hanging onto the bottom because it went right over. Oh, please hurry.

9/11 OPERATOR: Green Harbor?

UNIDENTIFIED FEMALE: Yeah, Green Harbor in Lake George. You know Lake George?

9/11 OPERATOR: Yes, Ma'am.

UNIDENTIFIED FEMALE: Oh, please send somebody, really quick.

9/11 OPERATOR: Yes, Ma'am, will do.

(END AUDIO CLIP)

COSTELLO: For more on the investigation here is Regina Waldruff (ph) of our affiliate WXXA in Albany.

(BEGIN VIDEOTAPE)

REGINA WALDRUFF (ph), REPORTER WXXA TV (voice over): Divers searched the depth of Lake George as the attempt to uncover clues as to why the Ethan Allen capsized Sunday taking the lives of 20 elderly tourists.

The National Transportation Safety Board will conduct a series of scientific tests on its sister boat the De Champlain, which could give them some very good clues as to what went wrong.

MARK ROSENKER, ACTING NTSB CHAIRMAN: It is believed that they are close enough that they will give us the same type of results that we would expect from the same vessel. They are twin hulled vessels and canopies are identical.

WALDRUFF (ph): Federal investigators say one of the tests will look at how stable the vessel is in water with weight equivalent to 50 passengers.

ROSENKER: These tests that will performed are going to be extremely helpful in understanding how this vessel handles.

WALDRUFF (ph): While on board the Ethan Allen investigators say they learned that the boat did not have an automatic bilge pump. Investigators also say that once the Ethan Allen is cleaned up, they'll put it back in the water again to look for clues as to what caused the accident.

ROSENKER: We're going to look for, when we put her in the water, any leaks that we might find, in any areas where in fact she may be taking on water.

WALDRUFF (ph): State officials also say that the vessel was operating without the required crew.

UNIDENTIFIED MALE: The permit indicates that there was a captain required and one crew, that one crew being in addition to the captain. The only crew on that vessel was the captain, therefore he was in violation of that permit.

WALDRUFF (ph): As for boat captain Richard Paris, he was interviewed by federal investigators again, and he will undergo a human factor study.

ROSENKER: We're basically looking at 72 hours leading right up to the moment of the accident.

(END VIDEOTAPE)

COSTELLO: That report was from Regina Waldruff (ph) of our affiliate WXXA.

A memorial service for the victims, being held tonight at a church in Lake George.

Supreme Court Nominee Harriet Miers heads back to Capitol Hill this morning for her photo ops and informal meetings with lawmakers. The initial public reaction to the White House counsel turned court nominee is less favorable than it was for John Roberts when he was nominated.

A CNN/"USA Today"/Gallup poll reflects a 42 percent favorable opinion for Miers. Roberts, when he was nominated, had a 54 percent positive rating; 34 percent of you are neutral about Miers, 14 percent of you are negative.

Asked about Miers lack of judicial experience, 46 percent of you say that makes you less likely to support her; 42 percent say it doesn't matter. The polling was done earlier this week.

Back in 1989 Miers told a Texas gay rights group, she believed gay men and lesbians should have the same civil rights as others, but she opposed repeal of the state's sodomy law, that made same-sex sexual conduct a crime. That law was declared unconstitutional by the Supreme Court back in 2003. That ruling also struck down sodomy laws in 13 other states.

Let's talk about New Orleans now. The mayor there, Ray Nagin, says the city is flat out broke. That is his reason for announcing that up to 3,000 city employees are being laid off. Police officers, firefighters and sanitation workers are exempt from those job cuts.

(BEGIN VIDEO CLIP)

MAYOR RAY NAGIN, NEW ORLEANS: But unfortunately, we have searched high and low. We've checked with federal sources, we've checked with state sources. We've talked to local banks and other financial institutions. And we are just not able to put together the financing necessary to continue to maintain our city hall staffing at its current levels.

(END VIDEO CLIP)

COSTELLO: Are small businesses being left out of the recovery and rebuilding process in New Orleans? Senate and House leaders want to know if small businesses are getting a fair chance at government contracts. At issue is whether smaller companies are being used subcontractors in clean up and rebuilding efforts in hurricane damaged states.

An elite search and rescue team has been ordered to leave Louisiana. The team from Phoenix, Arizona is credited with saving more than 400 people in New Orleans following Hurricane Katrina. It redeployed for Hurricane Rita. FEMA says the team is being dismissed because four police officers carried guns to protect the rescuers and that is against FEMA's rules.

The mayor of Phoenix calls the dismissal, stunning.

As many as 20 people could be arrested in connection with a hurricane relief scam in Bakersfield, California. Nine people have been charged so far. The FBI says workers at a Red Cross call center passed along confidential codes to friends, and those pin numbers were used to get Red Cross emergency funds. The nine are charged with taking at least $25,000.

Former President Bill Clinton visited with hurricane victims in Louisiana. He saw first hand the flooding damage in New Orleans' Ninth Ward. Then he met with residents who are still sleeping in shelters.

(BEGIN VIDEO CLIP)

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: I'm glad to be down here, and I really thank you for taking time to meet with me.

But my concern here is just to do -- to listen to you, and talk about your problems and try to figure out how we can best spend this money we've got, to help the largest number of people who would not otherwise be helped by the government programs, or by the incredible work that the Red Cross has been doing. So that's all I'd like to say, except I'm really sorry for what you've been through and honored to be here.

(END VIDEO CLIP)

COSTELLO: CNN's Kelly Wallace made that trip with President Clinton. She'll join us at the bottom of the hour for more on what he saw.

Spent nearly three months in jail on contempt charges, now a "New York Times" reporter says it was definitely hard time. Judith Miller was jailed for refusing to testify before a grand jury, which is investigating the leak of undercover CIA operative's name. Miller finally did testify on Friday, a day after getting released. She didn't reveal details but she did talk with us.

(BEGIN VIDEO CLIP)

JUDITH MILLER, REPORTER, "THE NEW YORK TIMES": It was the most soulless place I've ever been. I think we don't realize how much we take things for granted like color, silence, the right to take two aspirin when you feel you have a headache. It was a demeaning. It was degrading. It was very lonely.

But it has to be put in perspective. It is not a deadly illness. I knew I was going to get through it, one day. I didn't know how long it was going to last, and I learned a lot from it. So, all experiences in life teach you something.

(END VIDEO CLIP)

COSTELLO: Miller says she hopes the federal probe into the CIA leak produces some results or else she'll wonder why she had to go to jail in the first place.

Still to come this hour on DAYBREAK, the medical threat that has President Bush asking for more powers from Congress. We'll talk to a doctor about the risk of bird flu. Should you be concerned?

And remember that diet plan endorsed by Doctor Phil? Well, it seems a lot of people think it don't work. I mean, it doesn't work. Let me get my grammar straight. We'll tell you about a possible class action suit in a second.

And later, those with Delta reservations, you'd better call ahead. A number of flights are being canceled. But first, here's what else is making news this Wednesday.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports, it is 6:13 Eastern. Here's what's all new this morning.

We are expecting an update from Indonesian police today. They've been seeking the masterminds behind a string of suicide bombings in Bali this weekend. Twenty-two people were killed.

In money news, Harry Potter has conjured up a milestone. The wildly popular series about the boy wizard has now sold more than 300 million books.

In pop culture, Rolling Stones keyboardist Chuck Leavell and his wife have been named outstanding citizen stewards. They met with Interior Secretary Gail Norton in Washington. Leavells own a tree farm near Macon, Georgia. That's why.

In sports, the Yankees will try to take a two-game lead over the Angels in the American League playoff series tonight. New York beat California last night, 4-2.

St. Louis Cardinals over San Diego -- we have to update that game as well -- Cardinals won 8-5.

To the Forecast Center and Chad.

(WEATHER FORECAST)

COSTELLO: Harriet Miers, President Bush's Supreme Court nominee, is heading to Capitol Hill today for more meetings. We have some more CNN/"USA Today"/Gallup polling numbers to show you.

When asked, does Miers gender make you more likely to support her 19 percent of men say it makes them more likely; for women it is 37 percent. But most say gender makes absolutely no difference. Asked about her ties to the president, 16 percent say it makes them more likely to support her; 44 percent say it makes them less likely, while almost 40 percent say it makes no difference.

Our Candy Crowley has more on the nomination.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN WASHINGTON CORRESPONDENT (voice over): The president's Supreme Court nominee has gone from an unknown quantity to an unknown quantity in the bright lights.

HARRIET MIERS, SUPREME COURT JUSTICE NOMINEE: So far, people here, you know, people have been wonderful. People have been really great just with their time and ...

CROWLEY: As Harriet Miers exchanged pleasantries on Capitol Hill, the president was fending off the unpleasant little reaction got from conservatives who wanted a known.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There should be no doubt in anybody's mind what I believe a judge -- the philosophy of a judge. And Harriet Miers shares that philosophy.

CROWLEY: In a news conference coded with messages, the president sought to soothe the anxiety inside his bedrock constituency.

BUSH: I know her heart. I know what she believes.

CROWLEY: Translation, she is one of us.

BUSH: I'm interested in people that will be strict constructionists.

CROWLEY: Translation, she thinks judges should interpret not make law.

Some conservatives think the Supreme Court made law in the Roe V. Wade decision which legalized abortion.

BUSH: She is plenty bright. She -- as I mentioned earlier, she was a pioneer in Texas. She just didn't kind of opine about things, she actually lead.

CROWLEY: Translation, she can hold her own, will be a forceful conservative voice among intellectual powerhouses on the Supreme Court.

But what conservatives wanted was all of this in writing. Well-documented proof of judicial conservatism, somebody to count on for the ages.

BUSH: I don't want to put somebody on the bench who is this way today, and changes. That's not what I'm interested in. I interested in finding somebody who shares my philosophy today, and will have that same philosophy 20 years from now.

CROWLEY: Translation, she's no David Souter; a former unknown, with no paper trail, thought at the time to be a judicial conservative, Justice Souter is counted on now as a reliably liberal court vote.

On the Miers watch, the bright lights are beginning to shine on the tidbits of her paper trail. Including this 1989 questionnaire circulated by a pro-gay and lesbian rights group. Running for Dallas City council at the time, Miers indicated her support for gay civil rights and AIDS education. Positions similar to the president's if not all of his supporters.

BUSH: Am I what? Am I still a conservative? Proudly so, proudly so.

CROWLEY: At this point the president's concern is not that Miers will be rejected. He is concerned the Right is so upset it won't show up to help with the rest of his agenda. Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Still to come, legal problems for Doctor Phil, and you know his diet plan? We'll have details ahead in "Business Buzz". Also, two powerhouse companies are combining forces to take on Microsoft.

But first, ah, good morning, Washington.

(COMMERCIAL BREAK)

COSTELLO: Time now for a little "Business Buzz". A federal judge has ruled against McGraw-Hill in a First Amendment case. The judge says the publishing company has to turn over some data to government regulators in an energy probe.

They believe an energy company tried to manipulate natural gas prices by giving false data to a division of McGraw-Hill. That division puts out a monthly energy report.

It looks like Dr. Phil McGraw might need some counseling. Three people are suing the TV psychologist over his now-defunct plan, saying it just didn't work. And they want the judge to give the lawsuit class action status. McGraw shape-up diet, called for dieters to exercise and take 22 pills a day, costing around 120 bucks a month. No comment yet from Dr. Phil.

Before we get to Carrie Lee, because you know I like this segment of our show. I always like to tell people what the average price for a gallon of gas is. And we just got word from the AAA, it reports overnight, it stayed the same, $2.94 a gallon. So, now you know.

OK, now let's get to Carrie Lee. She's going to talk about two giants of the computer world who are teaming up.

CARRIE LEE, CNN FINANCIAL CORRESPONDENT: And one giant, not really in the limelight much lately, but they are now. Sun Microsystems and Google are teaming up. Now, anything Google related, you know, gets a lot of play. It's a big deal. The two are going to offer alternatives to some popular Microsoft products, so some competition here.

The company announced yesterday that they have agree to distribute each other's software. So, in the future, this alliance could directly threaten Microsoft's dominance in word processing and spreadsheet programs such as Excel. The announcement of the multi- year agreement didn't include a lot of specifics. But what we do know is that it is a multi-year agreement.

So, analysts expect the move is going to increase exposure for Sun's free office programs. Also, the company taking advantage of millions of Google users. Basically, Sun has free software. When you download it, you'll be able to download Google's toolbar as well. And I'm sure they have some other things in works that they're not being so up front about, just yet.

COSTELLO: Google is just going to take over the world.

LEE: They really are. You know, they started as a search company and now they're making all these acquisitions, expanding into other areas. Sun was a big mover this week, so far. Google shares as well, a little bit of profit taking yesterday. You know that stock has done so well, since its IPO last August.

COSTELLO: Oh, yeah. I only wish I had bought it a long time ago, but alas.

LEE: Hindsight, 20/20.

COSTELLO: Exactly. I'd be out of here by now.

(LAUGHTER)

Thank you, Carrie Lee. Appreciate it.

LEE: Sure.

COSTELLO: President Bush wants to see more oil refineries in America. He says the construction of more refineries will help alleviate the recent record high gas prices. Easing regulations on the construction of new refineries has been the part of the president's energy plan for several months now. He also wants Congress to allow refineries to expand.

Still to come on DAYBREAK. If you have Delta reservations, you'd better call ahead. Some flights are simply disappearing.

Also, a familiar face shares prayers and hugs with hard-hit Gulf Coast residents struggling to recover.

(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, Delta is cutting flights to save fuel. Does that mean you'll be grounded?

But first "Now in the News": These British Navy sailors are getting a special thank you this morning. Russian President Vladimir Putin is at 10 Downing Street with Prime Minister Tony Blair. The sailors rescued the crew of a Russian mini-sub when it got trapped off the Russian coast back in August.

We are awaiting an update today from Indonesian police as they investigate those deadly bombings in Bali. The suicide blast on Saturday killed 22 people. Police have been seeking the masterminds behind the attack.

Two Americans and a Frenchman have won the 2005 Nobel Prize in Chemistry this morning. Americans Robert Grubbs and Richard Schrock share the prize with the Frenchman. They developed a key method for producing chemical reactions.

To the Forecast Center and Chad.

(WEATHER FORECAST)

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