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American Morning

Interview with Governor Bill Richardson; Red Cross Troubles

Aired November 04, 2005 - 08:30   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: The park looks so nice, doesn't it? A beautiful day here in New York. Welcome back, everybody. Good morning. What are you working on this morning?
KELLY WALLACE, CNN ANCHOR: Hello. Well, you know, we have done a story on the Red Cross. It has received a lot of criticism over its handling of the Katrina disaster. And then, Soledad, for the first time ever in its 124-year history, it has had to take out a loan for disaster relief to continue providing emergency aid to the Wilma, Rita and Katrina victims. So we take a look what's going on and what some of the critics are saying.

S. O'BRIEN: Clearly, it's been a devastating hurricane season. So, obviously, they've just been walloped in that front. But as Miles was just talking with those mayors, there seems to be, even with everybody understanding the devastating circumstances, there seems to be a lack of a plan on a lot of fronts -- Miles?

MILES O'BRIEN, CNN ANCHOR: Yes, there does. Yes, I'm sorry. I was JUST sitting here thinking about what those mayors had to say. And it really takes me back that here we are, nine weeks out. And there's -- you know, Shirley Franklin (ph) still hasn't gotten a dime from FEMA to help with upwards of a hundred thousand Katrina evacuees. And, you know, I think we heard their frustration. And I am -- I'm sort of taken aback by all of that. Hey, by the way, did you hear about the royals going to New Orleans today?

S. O'BRIEN: Yes. You guys left just as they're going in.

WALLACE: I know!

S. O'BRIEN: What's that about?

WALLACE: You could have been following Charles and Camilla all throughout New Orleans, Miles.

M. O'BRIEN: Yes, they insisted I go to Mississippi. I wasn't on the A-list. I'm a D-lister. But they're going tour the Lower Ninth Ward. It's interesting, Prince Charles and Camilla will be there today, and a delegation from France. Suddenly, New Orleans is getting a lot of international attention. And we're going to check in with the curator, the man who heads the D-Day museum in New Orleans. And, of course, England, France being a big part of that picture. In a little bit.

S. O'BRIEN: Interesting. Looking forward to that.

(NEWSBREAK)

(WEATHER REPORT)

S. O'BRIEN: Well, as the bad news piles up for the White House, with bad poll numbers and, of course, the indictment yesterday of Scooter Libby, Democrats are hoping that they can leverage some of their own good news off of that.

What does Governor Bill Richardson think? He's got a new book. It's called "Between Worlds." He writes about straddling the split between his American -- Mexican, rather, and American roots. And also talked to us this morning about what's happening politically today.

(BEGIN VIDEOTAPE)

S. O'BRIEN: Governor Bill Richardson joins us this morning. Nice to see you.

GOV. BILL RICHARDSON (D), NEW MEXICO: Thank you.

S. O'BRIEN: Congratulations on the book. We'll talk about that in just a moment. First, though, the week in Washington. There's a lot to cover.

RICHARDSON: A lot.

S. O'BRIEN: In Iraq, arguments over pre-war intelligence, who knew what when, the future of the troops now. We're certainly hearing Democratic senators come out and ask for troops to be withdrawn. Scooter Libby indicted. We saw the court pictures yesterday. The Senate closed for Senate rules. I mean, the list kind of goes on and on and on. Overall, though, do you think Democrats make big gains from the rough week some of the Republicans had?

RICHARDSON: Yes, I do. Because you see the Republicans leadership in turmoil. You see the situation at the White House with Libby. That's not good. That's historically, one of the first. The situation in Iraq, it's over 2,000 troops, American troops, that are dead. No end in sight. No policy.

I think what this does in the whole body politick -- and I hear this in New Mexico -- is it says, who's in charge? What's happening? Things are out of control. And it hurts, especially at a time when we're about to have some midterm elections this Tuesday. I think you're going to see some substantial Democratic gain.

S. O'BRIEN: On the other side of that, though, you have Judge Alito. Democrats coming out with many questions, but really, I think a lot of people feel he's going to be confirmed. You have Karl Rove, who's got a cloud over his head, but, you know what, he wasn't indicted. Can Democrats gain strength from not necessarily their own method but from somebody else's fumbles?

RICHARDSON: What you want to do is, you want to send a message, one, that there's turmoil and that brings political gain. Although the best way to get political gain is to govern responsibly. So I think what Democrats need to do with Judge Alito is -- first of all, he is most likely going to be confirmed, but that doesn't mean you don't take about his philosophy, the direction of the court. Democrats want to see the court be a moderate one. No losses in civil rights. Concerns about some extremist positions. So you don't attack, obviously, his character and his qualifications, which he has. But there's no reason why, in a democracy, you don't bring to the American people these differences.

S. O'BRIEN: Your book is a great read. You write about negotiating with Saddam Hussein. You write about the crisis in North Korea, as well . But sort of the more personal part, you write about being a guy with a very Anglo name who speaks fluent Spanish, because it's your first language, who kind of lives -- looks like a Native American in the population that you represent in New Mexico. Has that helpful politically by but confusing personally ever?

RICHARDSON: Well, I think the book -- and the reason I wrote it is book is to show how a Hispanic in America can do reasonably well in this wonderful country. It's a nation of opportunity. But, at the same time, you -- when you're growing up, you're conflicted. My mother, who's Mexican, would speak to me in Spanish; my father in English. Actually sometimes my father wouldn't talk to me at all! But the point being that bicultural experiences in America are very common. And America is a country that not just allows that, but fosters that.

Now, on the diplomatic side, I've had some great experiences negotiating with the North Koreans, with Saddam Hussein, very scary moment. And the whole point of the book is that if you respect your adversary, if you dialogue, if you negotiate, if you engage, if you respect other points of view, you can get something done. And it's sort of a boost to diplomacy and a boost to talking things out.

And, in politics, yes, it's helped me because I have a very diverse district: Hispanic, Native American, Anglo, conservative. And by talking things through and bringing cultures together, you can do well in politics.

S. O'BRIEN: The book is called "Between Worlds: The Making of an American Life." Thanks for talking with us -- Miles.

(END VIDEOTAPE)

M. O'BRIEN: Thank you very much, Soledad. The royals are coming to New Orleans today, about 60 miles west of where I stand in Pass Christian, Mississippi. Now, two months since Katrina, they're in the United States. Of course, you've heard about that.

And they will visit some of the hardest-hit areas of New Orleans, including the Lower Ninth Ward, where I had a chance to visit just yesterday. Tremendous devastation there. They're still finding bodies in the Lower Ninth Ward. It's an extraordinary day for New Orleans because as they come, so will a high-ranking French delegation. Dr. Nick Mueller is the president of the National D-Day Museum in New Orleans. Dr. Mueller, good to have you with us. I called you the curator a moment ago. Sorry for the demotion. You are the man in charge. An extraordinary day...

DR. NICK MUELLER, PRES., NATIONAL D-DAY MUSEUM: Curators are more important.

M. O'BRIEN: ... in New Orleans to have the royals and the French delegation at the same time.

MUELLER: That's correct. It's a historic day for New Orleans, I suppose.

M. O'BRIEN: Well, you know a little bit the history there, as well.

MUELLER: We're delighted to have them with us. This is a milestone event.

M. O'BRIEN: Tell me, what's the significance of this in the city though? You've seen the devastation of the Lower Ninth Ward. To have Prince Charles and the Duchess of Cornwall visit. Does that really mean anything to the people who've been affected?

MUELLER: It's a great lift for us. It's a boost of -- a morale boost for a city that's -- we're down, but we're not out. And, of course, to see our oldest friends and allies here, the royalty and the French ambassador, it's just a great thing for our city. I guess you could saw the -- our oldest friends are our best friends.

Of course, our two countries and certainly this region, has had a long historic connection to France. The French ambassador is here today to visit the city and -- but it's also coming to specifically to the support the great National D-Day Museum here in New Orleans. But you know, the French came to help us several centuries ago during the American Revolution, when Lafayette came, and other French, and helped to give us our democracy and our freedom.

And just about 60 years ago, we returned the favor and many Americans lost their lives and a lot of blood was lost, American blood, on the shores of Normandy and Omaha Beach and Utah Beach when we went to liberate their country.

And, of course, this city has a great historic connection to France. The settlement of the French in South Louisiana, the building of the French Opera House. The Louisiana Purchase, of course, which changed the destination -- the destiny of our nation. All goes back to our French allies. And our British allies, of course, with us in World War II, and they're here with us.

M. O'BRIEN: Dr. Mueller -- all right, Dr. Mueller, I'm sorry. We're out of time. Thank you for your time this morning. And we wish you well as the French ambassador, Prince Charles, and the Duchess of Cornwall all visit one day. A lot of high level visiting there in the city of New Orleans. We're going to take a break. When we come back, I don't know if you can see that house behind me over there very well, but it's about the only thing standing on this beach. We're going to talk to the owner, a structure engineer, and we'll find out his secrets to building a fortress on the beach -- Soledad.

S. O'BRIEN: Miles, another question for you. Is the Red Cross in serious trouble? For years, it's been helping disaster victims around the world. Now, though, it's in need of some help itself. That story's ahead on AMERICAN MORNING. We're back in just a moment.

(COMMERCIAL BREAK)

M. O'BRIEN: Welcome back. Pass Christian, Mississippi, is our location this morning, and it's a remarkable site. There's one house -- one house -- that has survived on this beach here, and survived actually in a pretty healthy fashion.

Scott Sundberg is the owner of the house. Probably will not surprise you if I told you he is a structural engineer. Scott, you built a fortress here. It's all poured concrete. I bet when you were building, you were thinking maybe I'm overdoing it. Not so, huh?

SCOTT SUNDBERG, PASS CHRISTIAN HOMEOWNER: Not a lot. A lot of people would like to tell me that. That would like to tell me that in my normal practice. However, what I did with this house is I designed it for Camille. And I actually took the whole house and modeled it in 3-D on an analytical model to make sure it would survive a Camille. A Camille would be -- the storm surge on a Camille event would the bottom of this beam right up here.

M. O'BRIEN: Right at the bottom of that beam. So where was the surge for this storm, above that? .

SUNDBERG: It certainly was. It was about six feet above this second floor here.

M. O'BRIEN: Wow.

SUNDBERG: And I can tell that by the damage on the inside of the home.

M. O'BRIEN: Let's go underneath here. We got to show people, if we can. Walter, can you get under here? Just take a look at these beams and supports that you put in here. This truly is built like a fortress. And I guess it should be no surprise that it survived. Must have cost you a lot more money to build this.

SUNDBERG: No, it did not. Actually, you can build a concrete home for approximately 10 percent more than conventional construction. Actually, there is an organization -- PCA, Portland Cement Association -- that has a home -- concrete home program. And actually concrete homes are taking a great inroad to the market.

M. O'BRIEN: So concrete homes are not as expensive as might suspect? SUNDBERG: No.

M. O'BRIEN: And, obviously there's an advantage on the beach to the classic wood timber framing?

SUNDBERG: Oh, absolutely. Not only that, but they're much more resistant to fire. They don't -- they're not as susceptible to termite damage.

M. O'BRIEN: Right.

SUNDBERG: And actually, I wouldn't want to point them out, but there were numerous homes immediately adjacent to us that had extensive termite problems.

M. O'BRIEN: Oh, really?

SUNDBERG: Oh, absolutely.

M. O'BRIEN: So there's a lesson here, I guess, as people think about rebuilding...

SUNDBERG: Yes.

M. O'BRIEN: ... along the coast, do you think?

SUNDBERG: Oh, absolutely. It's time to build higher. It's time to build stronger. And it's time to pay much more attention to the building codes that are already in place. If not actually adopting the Florida state building code.

M. O'BRIEN: Which are tough, yes.

SUNDBERG: They're a little bit tougher.

M. O'BRIEN: Hey, by the way, you got two beautiful Thunderbirds here. And, of course, your lovely wife, Carolyn (ph). But those I know were not here, right?

SUNDBERG: They were not. Unfortunately, their predecessors were and they are damaged and they were over there. Because they're going out of production and because we lost so much at the home we were renting while we built this place, I felt we had to go out and get something back immediately.

M. O'BRIEN: So you bought your two...

SUNDBERG: So, without even knowing...

M. O'BRIEN: So you lost two T-Birds and you replaced them?

SUNDBERG: Not only that, but a truck and a boat and every single bit of our belongings, our clothing, our books, things that we'd collected over 30 years. And we needed something to bring us back.

M. O'BRIEN: All right. SUNDBERG: You know, a vote of confidence in ourselves and the country that we knew we could rebuild.

M. O'BRIEN: Scott, thank you very much. Scott Sundberg, wife Carolyn. Old Glory flying there, and the T-Birds back underneath. We wish you well.

SUNDBERG: Thank you very much.

M. O'BRIEN: Back to you, Soledad.

S. O'BRIEN: All right, Miles, thanks. Tough times for the folks there. Tough times, too, for the American Red Cross, stung by criticism of the hurricane relief effort. The agency is now forced to do something it's never done before.

AMERICAN MORNING's Kelly Wallace joins us with that story. Good morning.

WALLACE: Good morning, Soledad. Well, the Red Cross saying it needs about $2.2 billion for hurricane emergency relief, and that it has raised just about $1.3 billion so far. So now, for the first time ever, it must borrow to make up for some of that shortfall. And this all more fodder for critics who say the agency could be doing a much better job.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): In Fairfield, Connecticut, Helen Dodson wonders when her children's substantial contribution will actually be processed by the Red Cross.

HELEN DODSON, CHILDREN RAISED MONEY: It's a little frustrating, mostly because the children had hoped to have a more immediate impact.

WALLACE: She says her two kids and their friends raised $500 for Katrina victims at a bake sale Labor Day weekend. Helen then called the Red Cross and told the fastest way to get the money to the organization was using her credit card, which she did.

DODSON: I kept checking my American Express account online. And day after day after day, it did not show up. So it still has not shown up and it's two months later.

WALLACE: Professor Paul Light of New York University studies the Red Cross and other charitable groups. He says Helen's story is not likely an isolated case.

PAUL LIGHT, NEW YORK UNIVERSITY: Here we have a system, an accounting system, that just can't move the money fast you enough. It's like the Internal Revenue Service on April 15th.

WALLACE: It's not as if the agency doesn't need the cash. Despite its emotional appeals...

UNIDENTIFIED MALE: Hope, it's more powerful than a hurricane. WALLACE: ... and fundraising help from President Bush...

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If you want to help, please call the Red Cros.

WALLACE: ... the Red Cross, for the first time in its 124-year history, has taken out a loan for disaster relief, $340 million. This, after a steady stream of complaints, long waits for Red Cross debit cards and charges it was slow to respond in rural areas and did not work well with local groups already on the ground.

VERNON JONES, CEO, DEKALB CO., GEORGIA: I'm just disappointed that they don't want to address the issues. They want to sweep it under the rug.

WALLACE: A survey by Professor Light found the number of people who had a great deal of confidence in the Red Cross dropped 5 percent from July through October, compared to no change in confidence for most other charitable groups.

Marty Evans is the Red Cross' president and CEO.

MARTY EVANS, PRES. & CEO, RED CROSS: We're always concerned about maintaining the trust of the American public. And we know that that trust is based on a whole range of things, of issues. I will be the first to tell you, we have not been everywhere we wanted to be as quickly as could -- as we would like to have been.

WALLACE: The agency is now facing greater scrutiny with the Senate Finance Committee, which has oversight of nonprofit agencies, asking for more information on the Red Cross' response to Katrina.

SEN. CHARLES GRASSLEY (R), FINANCE CMTE. CHAIRMAN: It's important for them to be accountable for the money -- taxpayers' money they spend.

WALLACE: Evans says she welcomes any inquiries, but expresses frustration about the attacks against her agency.

(on camera): Do you feel some of this criticism is unfair?

EVANS: Well, I think that some of the criticism doesn't balance the extraordinary good that the American Red Cross and our volunteer -- our tireless volunteers, our staff, accomplish every day.

(END VIDEOTAPE)

WALLACE: And back to Helen Dodson and her children' donation. The Red Cross says is looking into this case and any others that are brought to its attention. Marty Evans says the Red Cross is working with a number of vendors to process the millions of contributions it has received. She also says, Soledad, that they have made, in her words, significant process in processing donations, because there was a real backlog that donors were seeing after September 11. She says things are better, but obviously, looking into any cases brought to her attention. S. O'BRIEN: Yes, clearly. And if you've given money, you'd like to see that it's been -- and you want to help and you see people who need help, it must be, very obviously, is very frustrating for people.

WALLACE: And I should probably say, if anyone out there is in the situation of Helen Dodson, they can call 1-800-help-now, the American Red Cross number, to find out where things stand with their donation.

S. O'BRIEN: Kelly, thank you, great spot.

Coming up this morning, big jobs report for October just come out. Andy breaks it down just ahead as he minds our business. That's up next.

(COMMERCIAL BREAK)

S. O'BRIEN: Big jobs report in. Andy's crunching the numbers for us. Good morning.

ANDY SERWER, "FORTUNE" COLUMNIST: Good morning, Soledad.

Let's get right to it. Just crossing the tape at 8:30 Eastern. I guess the word is tepid. We added 56,000 jobs in October. Unemployment rate ticks down to 5 percent. That's good news. But we were looking to add 124,000 jobs. And, September was revised lower. Remember, earlier, it looked like we gained 35,000 jobs. We actually lost 8,000 jobs, according to the latest numbers.

It looks weak. It is a little weak. The good news is, however, we did add jobs. September, of course, a big anomaly because of the hurricanes. I think the two big issues though, Soledad, overall are, number one, will gasoline prices continue to decline? And number two, will consumers shop this holiday season? That's going to be more important when you're talking about the overall economy at this point.

S. O'BRIEN: What do analysts say about both of those? Gas prices going to continue to go down? Yes or no?

SERWER: I think so. I think you're going to get yes on both of those, quite frankly. I'm a little optimistic. We were talking about this yesterday, and I see some good signs out there.

S. O'BRIEN: And what about shopping? Predictions on that?

SERWER: I think people are going to be shopping because gas prices are down. That's more money in their wallets.

S. O'BRIEN: OK. Andy, thanks.

Let's take a look at President Bush. As we've been mentioning all morning, the Summit of the Americas is getting underway in Mar Del Plata, Argentina. The president is making his way to the podiums here that you can see in this live picture. And he's going to be meeting with the Argentinian Nester Kirchner. That meeting is expected to start, really in just a few minutes, and then taking questions. We're going to monitor this meeting and bring you any news that comes out of it, just ahead this morning.

A short break first, though. AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

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