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American Morning

New York City Strike Day Three; Saddam Hussein On Trial; Senate Showdowns

Aired December 22, 2005 - 06:29   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: It is day three, and there may be some movement this morning in the New York City transit strike. We're going to bring you the very latest in just a moment.
Saddam speaks out in court, the defiant dictator lashing out against his accusers and the U.S.

And have you seen this, this little baby penguin? Zookeepers believe he's been kidnapped and may only have days to live. We've got that story ahead.

ANNOUNCER: You're watching AMERICAN MORNING with Soledad O'Brien and Miles O'Brien.

S. O'BRIEN: Welcome back, everybody. The sun is not even up and look, millions of commuters are on the road here in New York City -- on the road because they can't be on the subways and the buses. That transit strike is still on.

RICK SANCHEZ, CNN ANCHOR: Yes. And it's getting nasty, too, isn't it? There are threats of people -- well...

S. O'BRIEN: Jail time.

SANCHEZ: ... being put in jail now.

S. O'BRIEN: Absolutely. Let's get right to our top story this morning as we look at pictures of the Brooklyn Bridge. Bitter words between parties in the New York City transit strike. One word of hope, though, to report. All sides spent the night at the hotel, where negotiations would take place.

Let's get right to Allan Chernoff. He's at the Brooklyn end of the Brooklyn Bridge this morning, which is one of the main points of entry into Manhattan.

Hey, Allan, good morning.

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Good morning to you, Soledad.

And let's hope that maybe there was some talking overnight at that hotel and not just the leaders sleeping at the hotel.

As you can see behind me, the line extends all the way down. The Brooklyn Bridge itself starts about two blocks down from where I'm standing. And this has been a steady line for at least 90 minutes here. All of these cars are supposed to be packed with at least four passengers, although I see a few people actually are looking to pick folks up. There are a few cars here that don't have the full compliment of at least four passengers.

But, Soledad, at the moment it looks like this is going to be this situation for a while, because unless something big did happen overnight, we still have a standoff in this transit strike in New York.

S. O'BRIEN: Lots of legal issues now are looming, Allan. Why don't you tell us what's happening on that front?

CHERNOFF: Yes, the labor leaders are supposed to show up actually in that building right behind me. That's the Supreme Court of the state of New York. And a judge there has actually threatened to throw the labor leaders into jail, finding them in contempt of court.

They were supposed to show up yesterday. They didn't. The judge is pretty furious about the situation.

On top of that, the city is pursuing further legal action, possibly to increase fines against the striking workers. And all of this would come on top of the fact that the union already is being fined $1 million a day for every day of the strike. And the workers are going to lose at least two days of pay for every day that they're on strike -- Soledad.

S. O'BRIEN: And New Yorkers are truly losing their patience as well. Allan Chernoff for us this morning. Allan, thanks.

Lots of other stories making news this morning. Let's get right to Kelly Wallace. She's filling in for Carol.

Hey, Kelly, good morning.

KELLY WALLACE, CNN ANCHOR: Good morning, Soledad. And hello, everyone.

We begin with news about the Patriot Act. Parts of the act could be extended for at least another six months. Senate leaders approved the move last night. It now goes on to the House. This extension is meant to give lawmakers more time to address concerns over protecting civil rights. President Bush says he appreciates the extension and calls the bill vital in the war on terror.

Saddam Hussein calling the White House a liar. This after U.S. embassy officials in Iraq denied claims that Hussein and seven co- defendants were tortured while in custody. Hussein retaliated earlier today, saying the U.S. also lied about weapons of mass destruction in Iraq.

Meanwhile, more witness testimony against Hussein and his regime. The witness gave details of the 1982 massacre, and gave those details from behind a curtain to protect his identity. A full-scale manhunt under way this morning in Miami for a suspected serial rapist. Police say Reynaldo Rapalo escaped from prison Tuesday, climbing down from a roof on bed sheets he had tied together. A second prisoner was involved in the escape but was caught. Police are hoping to question him today. We'll learn much more about this when we talk to Miami Police Chief John Timoney in the next hour.

Here in New York state, Republican Jeanine Pirro, who is campaigning to unseat Democratic Senator Hillary Rodham Clinton, now has a new political battle. She is giving up the Senate rate to run for attorney general. The high-profile district attorney had been under pressure from members of her own party to make the switch. A Democratic strategist predicts the move will now boost Senator Clinton's standing as a possible contender for the 2008 presidential race.

And you could call it an extreme case of house cleaning. It seems a mother fed up with her sloppy family is selling the mess on eBay. She packed up everything that was not in its proper place. And the winning bidder got the box; also a videotape of the family's reaction when they found out their things had been sold behind their backs. The winning bid, $300. And get this: The mom says the family just didn't learn its lesson the first time, so she is collecting a second box and apparently giving all of the money to charity.

I don't know, Bonnie. It seems like a very interesting measure to try and get your household a little bit more tidier.

BONNIE SCHNEIDER, CNN METEOROLOGIST: Very cleansing for the mother as well.

WALLACE: Exactly.

SCHNEIDER: It's probably giving a lot of other mothers some good ideas.

WALLACE: Yes, I think so.

(WEATHER REPORT)

S. O'BRIEN: Still to come on AMERICAN MORNING, Congress scrambles to wrap up business. It leads to a big victory for Democrats in the Senate. We'll explain.

SANCHEZ: Also some new anti-American outbursts from Saddam Hussein at his trial. He talks about chemical weapons, and he talks about terrorism. We'll tell you what he has to say and break it down for you on AMERICAN MORNING.

(COMMERCIAL BREAK)

SANCHEZ: In Iraq this morning, another courtroom tirade from Saddam Hussein. The former Iraqi dictator passing up a chance to question a witness, instead leveling charges directly at the Bush White House. (BEGIN VIDEO CLIP)

SADDAM HUSSEIN, FORMER IRAQI DICTATOR (through translator): The White House lies once more. The number one liar in the world that they said in Iraq there is chemicals and the relationship to terrorism, and then they announced later that we couldn't find any of that in Iraq.

(END VIDEO CLIP)

SANCHEZ: One does tend to wonder if this is some form of legal strategy.

Joining us now, a legal advisor to the court, Vanderbilt University, Professor Michael Newton, who is good enough to talk to us from Nashville, Tennessee.

Professor, thanks so much for being with us.

Who is Saddam Hussein talking to when he says this?

PROF. MICHAEL NEWTON, LEGAL ADVISOR TO HUSSEIN TRIBUNAL: Well, obviously he's attempting to portray himself as the victim here. Remember that we're here and he's there because of over a decade of defiance and denial and deceit. And, in fact, this is just the same pattern continuing.

SANCHEZ: But will he score some points given the fact that many people around the world recognize that the United States may have gone into this invasion without being able to nail down that there was a tide (ph) of terrorists and that there were chemical weapons? Is that why he's saying this, because he's trying to get those people to listen?

NEWTON: Well, Rick, you've come full circle, because originally a lot of the people, those same people were saying, can he get a fair trial? It's impossible to get a fair trial. If you define a fair trial as being one based on the evidence in the courtroom, not based on politics, not based on prejudice, not based on emotion, so far it's been the defense trying to deflect attention away from the very powerful testimony in this case thus far.

SANCHEZ: So, you're saying in a sense that what they're doing has been effective.

NEWTON: Well, in the sense that it has deflected attention, but I don't think that it's not a secret. I think people around the world are seeing this. They're hearing the very graphic testimony.

One witness yesterday described having hot plastic poured on his skin, and then having it ripped off. One witness described being a 14-year-old boy who was deported unlawfully away from Dujail and imprisoned along with his family. That's very powerful testimony. And so far in legal terms it's been very effective in building the case of crimes against humanity.

SANCHEZ: But it doesn't...

NEWTON: And that's precisely why they want to deflect attention away from it.

SANCHEZ: Exactly, professor. But it seems like their intent here is not to win the legal arguments, not even to answer the charges that are being put before them. It seems like their legal argument is to talk to another court, the court of public opinion all over the world and perhaps specifically in Iraq. Is that, in fact, what they're doing? And are they being effective with that? And what's it going to lead to?

NEWTON: Well, ultimately it's inconceivable to me that there's any substantial evidence of beatings or torture as has been alleged. And this is...

SANCHEZ: You're alluding now to the fact that he came into the courtroom yesterday and said it again this morning that he was being beaten by Americans, something that doesn't seem like it makes any sense to most of us. But will it to Iraqis?

NEWTON: I don't think so, because the International Committee of the Red Cross defense lawyers have been there. There is no evidence whatsoever. I think Iraqis and everybody in that region will see it for what it is, as simply being dishonest grandstanding.

And, again, what they have paid incredibly close attention to is the actual presentation of evidence, the live Iraqis who have the courage to come into that courtroom, to look those accused in the eyes. Every one of those witnesses is sitting there, in essence, representing on behalf of hundreds of thousands of Iraqis. That's what Iraqis are riveted on.

SANCHEZ: Let me ask you a question about something...

NEWTON: And the quicker they get back to that the better.

SANCHEZ: Let me ask you a question about something Saddam Hussein said yesterday, and I'm wondering whether it might be effective, where he said, yes, this happened 23 years ago, to the judge. Why am I being told about things that happened 23 years ago when there are other things that have happened? Does he have a point there? Will there be other people coming forward with things that perhaps happened more recently?

NEWTON: Well, there are at least 12 other cases under investigation. This particular incident, again, is focused on a narrow geographic area in a fairly discreet temporal time. The crimes against humanity overall charge requires a showing of a systematic campaign against civilians. That's why it's important that you've had more than dozen civilian witnesses coming in, and then they are documenting the various aspects of crimes against humanity, some murders.

Yesterday, the testimony was about unlawful deportation. And it's important, because you're showing the involvement of the Baath Party as a party against those civilians.

SANCHEZ: Yes.

NEWTON: It's been very effective in legal terms.

SANCHEZ: Professor Michael Newton, you're very good to join us. We certainly appreciate your information on this. Thanks.

NEWTON: Thanks, Rick. Have a good day.

SANCHEZ: All right.

Soledad, over to you.

S. O'BRIEN: A look at business is just ahead. And Andy is "Minding Your Business."

What you got coming up?

ANDY SERWER, "FORTUNE" MAGAZINE: Soledad, is it the ultimate Christmas gift or more like a lump of coal? We'll let you decide, coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Oh, yes, that's what it looks like in a nutshell here in New York City this morning, where it is 6:47 a.m. And what we can see is traffic, traffic, traffic, and in some cases moving traffic. A little more hopeful over there. That must be a Midtown shot, because everything else is...

SERWER: Gridlocked.

S. O'BRIEN: ... is pretty much gridlocked if you're trying to get into the city this morning. People realizing that the cops will turn you away if you don't have four people in your vehicle. At 5:00 a.m., they shut it down at 96th Street, and they turn you back to wherever you came from.

SANCHEZ: We were in that situation the other day. We were in a car trying to cover the story about the gridlock. And we got caught in the gridlock, 45 minutes to go half a block.

S. O'BRIEN: Yes, it's a mess. I walk home every day.

SANCHEZ: That's nuts.

SERWER: You should have walked.

S. O'BRIEN: Let's talk about business. Oh, do you know what? Actually before we get to business, let's throw it back to Kelly and get a check of the headlines.

SERWER: Yes.

S. O'BRIEN: Hey, Kelly. WALLACE: Hello again, Soledad.

And we're beginning with the transit strike. It is going to be another day of aching muscles, calluses and blisters for New Yorkers, because this is day three of that transit strike. The mayor of New York City will try to get those subway gates back open when the city asks for a temporary restraining order.

Also in court today, the union's chief and two deputies, who are now facing criminal contempt charges for the walkout. That's on top of the $1 million a day fine ordered against the union. Both sides are said to be at a hotel, but no word yet on whether they're even talking.

If you have an airline ticket, be prepared for changes in those security lines. New screening procedures take effect today. Passengers can now carry small scissors and tools on planes, but they can also expect more random passenger checks. And those pat-down searches also will be more thorough. Federal officials hope the new procedures allow screeners to focus more on finding explosives and dangerous items in baggage.

It looks like parts of the Patriot Act, due to expire in just a few days, won't. The Senate agreed to a six-month extension Wednesday. The matter now goes to the House. President Bush wanted the provisions made permanent, but he is expected to sign the legislation with those temporary extensions.

A setback for the Bush administration's efforts involving the so- called enemy combatant, Jose Padilla. A federal appeals court rules that the administration can't move Padilla to civilian law enforcement custody from a Navy brig. The ruling questions the administration's credibility before the courts. Padilla's attorneys accuse the administration of manipulating the courts to avoid judicial review of that case.

And it looks like H&R Block is going to be taking a big hit. It has agreed to pay $62.5 million to settle class-action lawsuits over its use of tax refund loans. Critics accused the company of taking advantage of poor families, immigrants and unsophisticated taxpayers. Today, a judge will consider whether the settlement is fair.

So, are you doing some last-minute holiday shopping? What's it going to look like for you out there? Bonnie Schneider in Atlanta with the latest.

(WEATHER REPORT)

SANCHEZ: Well, a lot of people like giving practical Christmas presents. And Andy Serwer may have found the most practical one of all.

Now, that's a tease.

SERWER: Yes, not very romantic, but it could be the perfect present to a loved one, a freezing cold loved one this holiday season, the gift of warmth, the gift of heat: energy gift certificates from your local utility. That's right. Utilities across the northern tier of this country are offering gift certificates where you can pay someone's energy bill. They come in denominations of $50, $75, $100.

For instance, the Madison, Wisconsin-based Alliant Energy (ph) has sold about 280 of these, $19,000 worth.

They don't really advertise these, but they are out there. Utilities say you can, of course, also just simply pay someone's utility bill. Wouldn't that be nice, especially with prices up like they are this winter?

I want to talk a little bit about the markets. We ended a four- day skid yesterday on Wall Street. The Dow was up 28 points, you can see here. Light trading, but not unusually so for this time of year. Traders were able to get to work. And we're still looking for a Santa Claus rally. It looks like we may have started it. Futures are up this morning. But, of course, things will taper off as we get towards the end of the week, strike or no strike, because we're getting to Christmas.

S. O'BRIEN: Yes, we are. All right, Andy, thank you.

SERWER: Thank you.

S. O'BRIEN: Coming up in just a moment, we're going to update the situation on the strike, and also talk to you about some of the provisions of the Patriot Act. Some of those provisions are now extended. But why aren't Republicans thrilled about it? We're going to explain. That's up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

SANCHEZ: We want you to be sure to check out our Web site, CNN.com, for the very latest on this morning's top stories, which, by the way, include, first of all, the transit strike, which everyone seems to want to know what's going on with that. And the latest is that there are threats going back and forth. As you can see, the effect it's having on New Yorkers is dismal. People are literally stuck in traffic for hours.

Whether or not both sides are talking is really hard to figure out. But that's what we're going to be trying to figure out for you throughout a big part of this morning.

Also this story coming out of Baltimore. Two Baltimore police officers, a man and a woman, found shot to death Wednesday at a home in the suburbs, and it's a state employee that's suspected in the killings. Apparently he turned himself in. We'll be following this story as well for you to get you the very latest.

And if you're about to head out the door for work or school, you can stay in touch with CNN and AMERICAN MORNING by logging on to CNN.com and our pipeline video service. You can catch live commercial-free news updates all day. It's all there at CNN.com/pipeline. S. O'BRIEN: Well, it was a furious final hours in the Senate last night. Here is a list of what they got done.

Senators agreed to extend the Patriot Act for another six months. Parts of it would have expired at the end of the year. Vice President Dick Cheney cast the tie-breaking vote on $40 billion worth of spending cuts. And Democrats successfully fought off drilling in the Arctic National Wildlife Refuge.

Let's get right to Jennifer Duffy from the "Cook Political Report." She joins us from Capitol Hill.

Hey, Jennifer, good morning to you.

JENNIFER DUFFY, "COOK POLITICAL REPORT" Good morning, Soledad.

S. O'BRIEN: Let's begin with the Patriot Act. What happens now?

DUFFY: Well, what happens now is they've extended it for six months, allowing the House and the Senate to try and iron out some differences on civil liberties issues, how much the government has leeway to look at your business records, your phone records. This is not exactly what the Republican leadership wanted. It's not what the president wanted. But it is better than having this act expire.

S. O'BRIEN: It's being read as a big victory for Democrats; that is, this provision that blocked drilling in the Arctic Wildlife Refuge. How big a defeat is it really for Republicans?

DUFFY: This is a huge defeat for Senator Stevens of Alaska. He has been working on this issue for more than 20 years. This is as close as he's ever gotten to getting it through. He threatened to keep the Senate here through Christmas. But, you know, with the help of a couple of moderate Republicans, the Democrats prevailed in keeping this out of the bill.

S. O'BRIEN: And then we've got the budget cuts to talk about. Really, it barely passed. In fact, it was the vice president who cast the final vote and swayed the vote. How big a defeat was this for the Democrats?

DUFFY: Well, I think it's a double-edged sword for Democrats. They didn't want to see this bill passed. On the other hand, they have been handed a huge issue -- election issue for next year that they will use. They say that Republicans did nothing but create an opportunity to do more tax cuts next year at the expense of seniors, students and the poor.

S. O'BRIEN: Let me ask you one final quick question, Jennifer. Is there an indication that the Democrats or a sense the Democrats with their victory over this Arctic drilling have their act more together than maybe they did six months ago or even a year ago?

DUFFY: They have shown some incredible unity. On the budget bill, every Democrat voted against it. On Anwar (ph), they needed the help of some moderate Republicans, and they got it. S. O'BRIEN: Jennifer Duffy is with the "Cook Political Report." Jennifer, thanks.

DUFFY: Thank you.

SANCHEZ: You know, a lot of Americans would ask, what does drilling in Alaska have to do with a defense bill? What do the two have in common? So why was that placed there? Was there another way perhaps of getting it passed?

S. O'BRIEN: You saw Senator Stevens as he was on the floor, and he almost immediately sounded like he was near tears and also clearly furious with some of his colleagues, who, as he looked around to say, I will remember those of you who did not support me on this bill.

SANCHEZ: And what he expected was for the Democrats to oppose him, but it was actually Republicans, some of them moderate, some of them not, who had opposed him. That's what he's probably most upset about, wouldn't you say?

S. O'BRIEN: Yes. He had threatened, as Jennifer said, to hold people right through the holidays. That did not happen. He did not have the ability to do that.

Much more on that story, in fact, is ahead with Ron Brownstein. We're going to talk to him in just a little bit.

And as we approach the top of the hour, let's get a look at your forecast this morning. Bonnie Schneider has that. She's at the CNN center.

(WEATHER REPORT)

SCHNEIDER: Stay tuned. The next hour of AMERICAN MORNING starts right now.

S. O'BRIEN: Good morning. I'm Soledad O'Brien.

New information on the New York transit strike. Both sides are at least in the same building. But are they going to sit down and talk? We're live on the strike watch this morning.

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