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American Morning
Rumsfeld Under Fire; Rape Investigation; The Great Quake; Preparing For Disaster; Maine Shootings; Breast Cancer Drug
Aired April 18, 2006 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Homeowners losing insurance coverage over the threat of hurricanes, but they don't live where you might expect.
CHAD MYERS, CNN METEOROLOGIST: They ran out of power in parts of Texas yesterday, and here's why, Dallas was 101. Electric companies weren't ready for that. Maybe more blackouts and brownouts today. We'll see.
Back to you.
MILES O'BRIEN, CNN ANCHOR: And 100 years after the big one in San Francisco, we shudder to think what would happen if an earthquake like that hit today. We are live as the city looks back and ahead, on this AMERICAN MORNING.
Good morning. I'm Miles O'Brien.
Good morning, Betty.
NGUYEN: Good morning, Miles.
And I'm Betty Nguyen, in for Soledad O'Brien today.
We have breaking news this morning out of Durham, North Carolina. We are talking about the Duke University rape investigation. Two lacrosse players arrested earlier this morning at the police station now, each facing three counts, including rape and kidnapping. AMERICAN MORNING's Alina Cho live now from Durham with the latest -- Alina.
ALINA CHO, CNN CORRESPONDENT: Miles, good morning. We have in our possession the mugshots, and we now know definitively from a jail official the identities of the two suspects. They are as follows, Reade Seligmann. He is a 20-year-old sophomore, an all America pick from Essex Fells (ph), New Jersey. And Collin Finnerty, also a 20- year-old sophomore from Garden City, New Jersey. Incidentally, his brother is a senior at Duke. Both are charged, as you mentioned, with first-degree rape, first-degree forcible rape and kidnapping. Bond has been set at $400,000.
Now, the suspects arrived at the jail about two hours ago, 5:00 a.m. Eastern Time. They arrived in the same squad car. One suspect wearing a yellow shirt, the other in jacket and tie. Both in handcuffs. Neither made any statement to reporters. This morning, they are being processed at the jail. That means they are being fingerprinted and photographed. They will also appear before a local magistrate. We do understand that attorneys for the suspects have arrived, as well.
And late yesterday, one of the defense attorneys did release this following statement: "Today two young men have been charged with crimes they did not commit. This is a tragedy. For the two young men, an ordeal lies ahead. They do not face it alone. They face it with the love of family and friends, and strengthened by the truth." And this statement ends by saying, "They are both innocent."
Again, the headline, the identities of the two suspects Read Seligmann Collin Finnerty, both 20-year-old sophomores. Both lacrosse players at Duke University. They are being processed at the jail as we speak. Miles, as we get more information, we certainly will bring it to you.
O'BRIEN: Alina, did you say there will be a court appearance today, is that right?
CHO: We understand that they are being processed at the jail as we speak, fingerprinted and photographed. Perhaps that has already happened. We simply don't know, because, Miles, this is a closed proceeding. But yes, it is our understanding they will appear before a local magistrate this morning. The indictment will be officially unsealed, and then the arraignment will occur in a day or so. After that, they'll be talking about a trial date, which could be months away.
O'BRIEN: Alina Cho in Durham, thank you -- Betty.
NGUYEN: The defense secretary mounts his defense. Today Donald Rumsfeld meets with some retired generals. It's all part of his campaign to take on critics of way he handled the war in Iraq.
Barbara Starr is live at the Pentagon, she and joins us this morning with the latest on this.
Good morning, Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Betty.
Well, things change around here in the Pentagon all the time, but at this hour, it is now expected that Secretary Rumsfeld will meet also with reporters and possibly have a press briefing at midday.
(BEGIN VIDEOTAPE)
STARR (voice-over): In Iraq, a five-month decline in U.S. casualties is over; 48 American troops killed in the first two weeks of April, compared to 31 for the entire month of March.
In Baghdad, a seven-hour firefight after 50 insurgents attacked a checkpoint. U.S. forces rushed to respond. In Ramadi, multiple attacks on U.S. and Iraqi positions.
The reality on the ground for U.S. troops is they are still fighting for their lives, as the political firestorm rages. All of this fueling disenchantment over the war, and those who run it, particularly Defense Secretary Donald Rumsfeld. The generals who fought in Iraq and think Rumsfeld should go are not backing down.
BRIG. GEN. JAMES MARKS, U.S. ARMY (RET.): It's a matter of accountability and competency.
STARR: Rumsfeld's political operatives continue to organize supporters. A "Wall Street Journal" op-ed written by four long- retired generals uses talking points provided by the Pentagon, including the number of meetings Rumsfeld had with his commanders.
Even retired generals, who say it's not their business to call for Rumsfeld's resignation, say mistakes have been made, and are calling now for more troops.
MARKS: You can't prosecute a global war on terrorism as aggressively, and as thoroughly and as broadly, as the United States is doing right now, and correctly with the number that is you have in uniform.
STARR: The former chairman of the joint chiefs of staff say the problems in Iraq may be emboldening the critics.
UNIDENTIFIED MALE: Political progress in Iraq is not going as well as we had hoped and planned, and maybe there's frustration over that as well.
(END VIDEOTAPE)
STARR: So, Betty, as the operation defend Donald Rumsfeld continues, what the Bush administration clearly hopes is political progress in Iraq: a new national unity government, a new prime minister, that that will happen, and that will maybe quell the political criticism here at home -- Betty.
NGUYEN: OK, Barbara, let's get a preview, if you can, of this meeting today with military analysts. How's it going to go, and what's going to be discussed?
STARR: Well, it will not just with Secretary Rumsfeld. They have set up a number of briefings, including they tell us some video briefings from commanders in the field in Iraq. They will tell these analysts that there is progress being made in Iraq. They will walk through it in some detail. And as we understand it, at the moment, there isn't even a definitive time for the secretary. When there is a window on his schedule this afternoon, he will walk into the meeting room and talk with them.
They do expect a very civil reception. It's a very polite group of people. The question, of course, will be once these analysts come out of room, what will they have to say? Will they all be supporters of Don Rumsfeld, or will there be some other thinking out of that meeting, Betty?
NGUYEN: We'll be watching. Barbara Starr at the Pentagon, thank you, Barbara. And CNN will have continuing live coverage all day long of the pressure on Defense Secretary Rumsfeld.
Next hour, we will talk with analyst Major General Don Sheppard. He is attending today's meeting.
O'BRIEN: If you take what's being said at face value, Donald Rumsfeld is one of the few certainties in the highest levels of the Bush administration right now. The president's approval rating hovering in the mid-30s. His new chief of staff is setting the stage for some spring staff cleaning.
White House correspondent Ed Henry live now from the North Lawn with that.
Ed, what can you tell us about a possible shake-up there?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Miles.
The new White House Chief of Staff Josh Bolten immediately signaled yesterday, he's planning to make potentially big changes. He sees that as a way to reenergize this administration, struggling with low poll numbers. The clock ticking on the president's second term.
So at his first meeting with senior aides yesterday, Bolten talked about involuntary changes, but also told staffers that if they're planning to leave voluntarily, he wants to know sooner rather than later. He wants them to go now basically, because he wants some stability. He wants to make all these changes at once. He doesn't want it to happen in dribs and drabs. All that has sparked speculation there is going to be a shake-up. White House spokesman Scott Mcclellan would not basically address how extensive these changes will be, but said Bolten is planning to put the stamp on this administration.
(BEGIN VIDEO CLIP)
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECY.: This is a time to reenergize and renew our commitments, to help the president advance his agenda, and so that's the way he was looking at it, as a time to reenergize ourselves and to really refresh ourselves. This is a time for a little bit of a fresh start, with a new chief of staff in place.
(END VIDEO CLIP)
HENRY: A fresh start is exactly what congressional Republicans have been demanding, some way to change things up. The Republicans on the Hill looking at those low poll numbers, and are very nervous that it's going to hurt them in the midterm elections -- Miles.
O'BRIEN: All right, Ed. The first step is to hold the door open. The next step would be potentially to start kicking people out the door. When is that likely to happen? Will it happen? HENRY: Well, Scott Mcclellan yesterday basically gave a timeframe of about seven to 10 days for Josh Bolten to evaluate all the personnel and then maybe move forward with some changes.
But we're also getting some rumblings that at least one or two of these moves could happen sooner, as early as today even -- Miles.
O'BRIEN: Ed Henry, we'll be watching that. Thank you very much.
(NEWSBREAK)
(WEATHER REPORT)
NGUYEN: Well, there is some potentially good news for millions of women worried about breast cancer, and it comes in the form of an old drug used to treat another disease. We'll tell you why doctors are so optimistic.
O'BRIEN: King of a two-fer for one. That's good.
Also, 100 years ago today, San Francisco rocked by the Great Quake. Is the city headed for an even bigger disaster potentially now, though?
NGUYEN: Here's another question for you. What do you do if you need hurricane insurance and no one will sell it to you? The dilemma for some folks along the East Coast. That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
NGUYEN: There is sorrow and anger today over the horrific killing of a 10-year-old girl. Purcell, Oklahoma is mourning Jamie Rose Bolin, and calling for the death penalty for the man suspected in her killing.
CNN's Ed Lavandera is live in Purcell this morning with the latest on this.
Hi, Ed.
ED LAVANDERA, CNN CORRESPONDENT: Hi, Betty.
This town has been so moved by what happened to Jamie Rose Bolin, that a vigil was held last night in her honor, and funeral services have been set for Thursday morning. So many people expected that it will be held at the high school gym.
(BEGIN VIDEOTAPE)
(CROSSTALK)
UNIDENTIFIED MALE: (INAUDIBLE) Let's string him up! Let's string him up! Let's string him up! Baby killer!
LAVANDERA (voice-over): Armed with a lasso and a bucket, this man expressed his anger just outside the courtroom where Kevin Ray Underwood was making his first court appearance.
UNIDENTIFIED MALE: It could have been one of my kids. Let's string him up! String him up! Hang him!
LAVANDERA: Tension was running high in this small Oklahoma town, as prosecutors revealed the horrifying details of how 10-year-old Jamie Rose Bolin was murdered, and promised to seek the death penalty for the accused killer.
The target of this anger was a 26-year-old man, who has described himself as troubled. In a brief court appearance, Kevin Ray Underwood was shackled around the waist and wrists and around his ankles. The judge entered a not-guilty plea on his behalf and appointed defense attorneys.
Jamie Rose Bolin's relatives said, seeing Underwood made them sick.
LINDA CHILES, AUNT OF JAMIE ROSE BOLIN: My stomach started to turn. I went numb. I just -- I -- I wanted to look at him. I didn't want to look at him. I wanted to see if he was sad. I wanted to see if he was proud. I -- I just -- I wanted a lot of things.
LAVANDERA: Underwood sat emotionless, a hollow look on his face. Internet diaries written by Underwood paint a picture of a man who struggled with depression and isolation. The online blogs date back several years.
In them, Underwood writes that he is single, bored, and lonely. In 2004 he wrote: "My fantasies are getting weirder and weirder, dangerously weird. If people knew the kind of things I have been thinking about, I would probably be locked away."
And, in perhaps the most chilling entry, he writes, "If you were a cannibal, what would you wear to dinner?"
Underwood's family did not appear at the court hearing, but the Purcell police chief says, they had a tearful meeting on Easter Sunday at the jail.
DAVID TOMPKINS, PURCELL, OKLAHOMA, POLICE CHIEF: The father and the mother got to speak with Kevin yesterday for about 20, 25 minutes. It seemed to help them out, the family out, a lot. Both of them were emotional to each other, you know, from what I could see.
LAVANDERA: Jamie Rose Bolin's family say they hold no ill will toward Kevin Underwood's family. In the meantime, the man accused of committing this small town's most gruesome and heinous murder is on suicide watch while he sits in a jail cell all by himself.
(END VIDEOTAPE)
LAVANDERA: A not-guilty plea was entered on Kevin Ray Underwood's behalf yesterday, and the judge in the case so far has appointed two court-appointed attorneys to represent him, because he says he doesn't have enough money to represent himself -- Betty. NGUYEN: Ed, this is just so horrific. Have we heard at all from underwood? Do we know anything as to why?
LAVANDERA: No, we haven't, outside of what we've been able to kind of wean from the many of the blog entries that he had written over the Internet, but his family hasn't accepted any requests for interviews, and he hasn't either.
NGUYEN: Well, keep watching. Ed Lavandera, thank you for that.
O'BRIEN: Coming up, a mystery in Maine. Two sex offenders found shot to death in their homes. We'll tell why a lot of people believe they may have been on someone's hit list.
Plus, oil prices skyrocket, another all-time high.
Andy Serwer will explain what it means to you. But you know, of course, the answer.
Stay with us.
(COMMERCIAL BREAK)
NGUYEN: Well, are you logging for some vacation time this summer? We have some good ideas, assuming you want to spend some bucks. The most expensive U.S. destination? Hawaii, of course. A AAA survey says a family of four should expect to pay about $559 a day on food, lodging and other stuff. We told you it's expensive. Washington D.C. Is number two at $518. Nevada, Rhode Island and New York are next. And if you're looking for a bargain, North Dakota, Nebraska are the least expensive at $191 a day.
(MARKET REPORT)
O'BRIEN: All right. We're following some breaking news out of Durham, North Carolina this morning. Two lacrosse players arrested in that Duke rape investigation. Jeff Toobin is in the house. He will walk us through what is next in this investigation and in this case.
And today, 100 years ago, almost at this moment, coming up on it, the Great Quake of 1906, San Francisco devastated. We'll tell you why one expert thinks another huge quake could wipe San Francisco off the map again.
Stay with us.
(COMMERCIAL BREAK)
(NEWSBREAK)
O'BRIEN: Good morning to you. I'm Miles O'Brien. We're glad you're with us this morning.
NGUYEN: And I'm Betty Nguyen, in for Soledad today.
Defense Secretary Donald Rumsfeld under fire and fighting back. Today, he is meeting with a group of retired generals.
Live now to CNN's senior political analyst Bill Schneider with the latest on this. What's this meeting all about?
WILLIAM SCHNEIDER, CNN SR. POL. ANALYST: Well, you know, we asked, why is the White House closing ranks behind Donald Rumsfeld? Stubbornness? Unwillingness to admit a mistake? Or is more of a political reason?
(BEGIN VIDEOTAPE)
SCHNEIDER (voice-over): For the past four and a half months, President Bush has been pursuing a political strategy on Iraq. The president said in December...
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We'll accept nothing less than complete victory.
SCHNEIDER: And in February...
BUSH: This country has one option and that's victory in Iraq.
SCHNEIDER: And this month...
BUSH: Victory is necessary and victory will be achieved.
SCHNEIDER: It's all based on a political reality: Americans do not want to fight an unwinnable war, not in Vietnam 40 years ago, not in Iraq now.
This month, 58 percent of the public said they thought things were going badly for the United States in Iraq. But 58 percent also believed the U.S. is likely to succeed in Iraq. People still think the war is winnable. Rumsfeld's removal would undermine that argument and reinforce the view that the military has lost confidence in the administration's policy.
GEN. ANTHONY ZINNI (RET.), FORMER CENTCOM COMMANDER: Poor military judgment has been used throughout this mission.
MAJ. GEN. PAUL EATON (RET.), U.S. ARMY: What I've got a problem with is a number of decisions that the secretary of defense made and I think that we need to change him out so that we don't repeat it in the future.
SCHNEIDER: So President Bush issued a statement praising Rumsfeld for relying on military advice about, quote, "how best to complete these missions."
MCCLELLAN: The secretary has led the Department of Defense during two wars. Wars that resulted in the liberation of 25 million people in Afghanistan and 25 million people in Iraq.
SCHNEIDER: The message is, Rumsfeld knows how to win.
(END VIDEOTAPE) SCHNEIDER: Americans want to change the course in Iraq. If the administration won't do it, well, the people can try to do it themselves at the ballot box.
Betty.
BETTY NGUYEN, CNN ANCHOR: Bill, let's talk some more about these numbers. Polls show only 23 percent of Americans approve of the job that Congress is doing. Now is Iraq driving down these numbers?
SCHNEIDER: That's certainly part of it but that's not all of it. Those are the lowest numbers -- 23 percent approve of Congress' job. That's the lowest figure since, huh oh, 1994. And a lot of people remember what happened. That was the last time there was a congressional revolution and the Democratic majority was then overthrown.
What's driving it isn't just Iraq and anger at Bush, it's also exasperation with Congress. People hear stories about corruption in Congress. And they don't believe Congress is doing its job. The House can't pass a budget. The Senate can't pass immigration reform. What that means is to a lot of voters out there, it's time to, well, throw the bums out.
NGUYEN: Frustration equals low numbers. We know that. Bill Schneider, thank you.
SCHNEIDER: Sure.
NGUYEN: Well CNN will have continuing live coverage all day long on the pressure on Defense Secretary Rumsfeld. Next hour we'll talk to CNN Analyst Major General Don Shepard (ph). He's attending that briefing at the Pentagon today.
Miles.
MILES O'BRIEN, CNN ANCHOR: Thank you, Betty.
This morning, a pair of Duke University lacrosse players are in custody facing rape and kidnapping charges. Twenty-year-old sophomores Reade Seligmann and Collin Finnerty arrived at the police station for booking about 4:00 this morning Eastern time. What lies ahead for them? Joining me now for some analysis on that is Jeff Toobin, our legal analyst.
Jeff, good to have you with us this morning.
Reade Seligmann and Collin Finnerty. Let's talk about Mr. Finnerty first. He apparently has a prior fracas on his record here according to "News Day." What do we know about that and how would that impact the way he is treated as opposed to his co-defendant here?
JEFFREY TOOBIN, CNN CORRESPONDENT: Well, in November, he was arrested in Georgetown, Washington, D.C., in an apparent gay baiting fracas, as you say, on the street outside a hotel. He was put in what's called a diversionary program, which is one of these things where if you stay out of trouble for a year your record is clear. Well, I think it's safe to say he did not stay out of trouble for a year. So he may have a problem with that case coming to life as an actual, you know, prosecution.
Plus, there will be the issue of is that admissible in the rape trial if and when the rape trial happens? Strong arguments will be made on both sides. Just show the guy's in a lot of trouble in more than one way.
MILES O'BRIEN: Yes. The indictment will be unsealed or is in the process of being unsealed. We'll learn a lot more about what kind of case the prosecutor has. But we talked about quite a bit the fact that there was not a DNA link established -- at least as far as we know publicly -- between the accuser and the suspects in this case. Now we're in this "CSI" world where we assume if there's not a DNA link, you know, it's kind of like a magic connection. Legally speaking, in the real world, what does that mean?
TOOBIN: Well, you know, it's interesting. This case, because it's so high profile, will be a very good example of what's called sometimes the "CSI" effect. Which is the jurors conditioned by watching "CSI" and related shows on TV come to expect DNA-type evidence.
The prisons are full of rapists who were convicted without DNA evidence. What did the alleged victims say? What marks are on the bodies of the alleged accuser -- of the defendants? What admissions did they make? What did other witnesses see? This is how rape cases are made all the time without DNA. But there apparently is no DNA evidence conclusively linking these defendants to the crime. Obviously the defense will do what they can with that absence of evidence.
MILES O'BRIEN: Jeff Toobin, thanks for coming in.
TOOBIN: All right, man.
MILES O'BRIEN: Betty.
NGUYEN: In about 45 minutes, people in San Francisco will mark the exact moment a devastating earthquake struck that city 100 years ago. Ceremonies are just getting underway to remember the tragedy. Here's a live look at one of them. The 1906 quake is blamed for about 3,000 deaths. CNN's Chris Lawrence is live in San Francisco this morning.
Good morning to you, Chris.
CHRIS LAWRENCE, CNN CORRESPONDENT: Hey, good morning, Betty. You know it's only 4:30 in the morning here, but the big earthquake hit while most people were sleeping. Of course this morning thousands of them have come out here downtown to mark the occasion. And emergency management officials are using the anniversary to remind people here you better be prepared to be on your own for up to three days when the next big disaster hits.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: People are standing around dazed and confused.
LAWRENCE, (voice over): Almost like clockwork, disaster strikes again and again. Same cities. Same furious weather.
SEN. DIANNE FEINSTEIN: We can't keep putting homes in plains (ph) that you know are going to be inundated with water.
LAWRENCE: That's Senator Dianne Feinstein talking about torrential rains that flooded northern California.
Are there certain places we just shouldn't live?
SIMON WINCHESTER, AUTHOR: I'm afraid there are. And I'm thinking New Orleans is one of them.
LAWRENCE: Simon Winchester says a city under sea level doesn't make sense. The same goes for a bay area built on fault lines or desert towns so dry they have to import water. He's written about the 1906 earthquake that destroyed San Francisco.
WINCHESTER: Everyone in California is in this blissful state of denial. An earthquake? Well, it might happen.
LAWRENCE: Winchester says Europe is littered with the ruins of once great cities.
WINCHESTER: And I wouldn't be surprised if in 100 or 200 years' time if you look to the map of America you'll see the ruins of New Orleans, the ruins of Tucson, the ruins some towns in southern Florida where we simply should not have built cities and we just look at them as tourists and say crazy for people to have live there.
LAWRENCE: Yet millions of people keep moving to coastal communities. From south Florida to San Francisco.
FRED STUDER, SAN FRANCISCO RESIDENT: We built in an impossible place. You know, the bridge, the Golden Gate Bridge was built so that people could go back and forth between these two impossible places. But the fact that the quality of life was just so spectacular just far outweighs the impossibility.
LAWRENCE: There are signs all over the city to remind residents what's coming. Next century. Next year. Next week.
ANNEMARIE CONROY, DIRECTOR, EMERGENCY SERVICES: A major rupture of the Hayward fault would cause catastrophic damage throughout San Francisco and also throughout the East Bay.
LAWRENCE: Annemarie Conroy runs the office of Emergency Services. She recently revamped its entire plan to better deal with the disaster.
CONROY: For San Francisco it's not a question of if, it's a question of when.
(END VIDEOTAPE)
LAWRENCE: Yes, in fact, experts say sometime in the next 25 years there's a 62 percent chance that another big quake will hit the bay area. But a recent Red Cross survey found only 6 percent of residents have some kind of disaster plan. Betty, those numbers just don't add up.
NGUYEN: No, they don't. I guess a theme is to remember and to prepare. Chris Lawrence, thank you for that.
Well, we heard a little from author Simon Winchester in Chris' piece. Coming up in the next hour of AMERICAN MORNING, he will join us live to talk much more about his prediction of disaster.
MILES O'BRIEN: Well, speaking of disaster, let's talk about hurricanes. This prospect of looming disaster in the form of hurricanes certainly has changed the way insurance companies do business in this country. In some cases they've bailed out on whole parts of the country. In other cases, they're raising premiums. In other cases they're denying people coverage. AMERICAN MORNING's Dan Lothian now with the fallout of Katrina but in an unlikely place.
(BEGIN VIDEOTAPE)
DAN LOTHIAN, CNN CORRESPONDENT, (voice over): Diane Powers and her family live in the town of Sandwich on Massachusetts' Cape Cod. They never worried about hurricanes.
DIANE POWERS, HOMEOWNER: But we're at one of the highest elevation points in Sandwich and at least two and a half miles away from the water.
LOTHIAN: Still, their insurance company refused to renew their homeowners coverage over fears of a possible destructive and costly hurricane.
POWERS: We were extremely surprised.
LOTHIAN: The Powers are not alone. Homeowners up and down the Atlantic coastline are either being dropped by their insurance companies or facing huge increases in their premiums.
GEOFFREY GORDON, INSURANCE AGENT: For the person who chooses to, you know, live on the ocean and smell the ocean breeze in the summer, they're going to pay more to live there than the person that lives 10 miles inland.
LOTHIAN: This all started happening before Katrina when insurance companies began using new storm models which showed the northeast was long overdue for a major hurricane. That meant anyone living anywhere near the water might be impacted.
Even though some criticize the legitimacy of new storm models, the insurance industry is convinced, believing that something like the devastating 1938 hurricane that killed 600 people in New England and New York could hit again.
ROBERT HARTWIG, INSURANCE INFORMATION INSTITUTE: So New England and the northeast really is living on borrowed time.
LOTHIAN: Experts say recent record breaking hurricanes in Florida and the Gulf Coast left the people who insure the insurance companies looking for a way out.
HARTWIG: Insurers are adjusting their rates so that they are commensurate with the increased level of risk.
LOTHIAN: Some companies, like the one that insured the Powers' home, are pulling out of these high risk areas altogether.
POWERS: A lot of the talk is where did you do go? Where did you find insurance? Do you know of some place that I can go?
LOTHIAN: The Powers have signed on with a state plan but for $500 more a year than they had been paying.
POWERS: I mean, I have four children, so it definitely is a strain.
LOTHIAN: But they're covered if dire predictions prove accurate and a big hurricane hits.
Dan Lothian, CNN, Cape Cod, Massachusetts.
(END VIDEOTAPE)
MILES O'BRIEN: This just into us. Breaking news from Durham, North Carolina.
We've been telling you about the arrest and the appearance at the police station of two Duke University lacrosse players, Reade Seligmann and Collin Finnerty. Both 20-year-old sophomore players. Now facing felony charges of rape and kidnapping.
According to the Associated Press, Reade Seligmann just about 10 minutes ago successfully posted the $400,000 bond to allow him to be freed pending further hearings and, of course, potentially a trial and will avoid that first appearance that was scheduled for later today. We're told the other defendant in this case, Collin Finnerty, is in the process of making that same $400,000 bond and thus it's quite possible we will not see them at an initial appearance today. The arraignment, according to Alina Cho, will be a little later, a couple of days from now, in Durham, North Carolina. We'll keep you posted on all that.
Betty.
NGUYEN: We're also staying on top of the weather outside today. Severe weather possibly. Chad Myers joins us from the CNN Center with a look at that.
Hi, Chad. (WEATHER REPORT)
MILES O'BRIEN: We'll be back with more AMERICAN MORNING. Andy is here in just a little bit. Stay with us.
(COMMERCIAL BREAK)
MILES O'BRIEN: All right. Let's talk about health insurance with Andy Serwer this morning.
ANDY SERWER, CNN CORRESPONDENT: Good to see you guys.
A new study out by the American Medical Association, the AMA, is charging that the health insurance business has turned into a monopoly situation. In 43 states, it says, a handful of insurers is highly concentrated, according to a Department of Justice guidelines. So over half of nearly 300 metropolitan areas. One insurer has over 50 percent market share.
NGUYEN: Wow.
SERWER: So just a few companies have incredible power, pricing power, the ability to keep other companies out. There have been 400 mergers in this business over the past decade. So now there's just a few giants. And it means premiums are going up and up and it helps explain why they have been going up, averaging double digits this decade.
North Dakota, we talked about North Dakota earlier in this broadcast.
NGUYEN: Yes, we did.
SERWER: In the news today. Listen to this. North Dakota, according to some studies, Blue Cross Blue Shield, the regional Blue Cross Blue Shield there, which is a non-profit organization, has a 90 percent market share. So basically that means everyone in North Dakota, their insurance is provided by Blue Cross Blue Shield, which doesn't do a lot for competition.
MILES O'BRIEN: No, but now if you're a non-profit entity, are there exemptions to anti-trust rules at all?
SERWER: That's a good question. I would think there would not be in this situation when you're competing in a for-profit marketplace like that.
MILES O'BRIEN: Interesting. Interesting. All right.
NGUYEN: Very interesting.
MILES O'BRIEN: Thank you, Andy Serwer.
NGUYEN: Thanks, Andy. See you soon.
SERWER: You're welcome. MILES O'BRIEN: A mystery in Maine to tell you about. What drove a Canadian man to murder two sex offenders and then take his own life? It's a story we first told you about on Monday. Carol Costello with further details for us from the newsroom.
Hello, Carol.
CAROL COSTELLO, CNN CORRESPONDENT: Yes, I have a follow-up for you, Miles.
Two registered sex offenders and a 20-year-old man with no criminal record. Why did he kill? Was it a case of vigilante justice?
(BEGIN VIDEOTAPE)
COSTELLO, (voice over): It started early on Easter Sunday, about 3:30 in the morning in Milo, Maine, the dogs at Joseph Gray's house start barking. His wife sees a shadowy figure at the front door. Two shots ring out. Inside, 57-year-old Joseph Gray falls to the floor dead. Five hours later, some 20 miles away, 24-year-old William Elliot answers his door, more shots ring out. Elliot becomes victim number two.
NANCY BOND, WILLIAM ELLIOT'S NEIGHBOR: Well it's terrible any time but, you know, especially on a holiday or Easter. Supposed to be about resurrection, not death.
COSTELLO: Police say the only connection so far between the two victims is this, both were listed on Maine's sex offender registry.
SGT. STEPHEN PICKERING, MAINE STATE POLICE: Nothing like this has ever happened since I've been working. But nothing surprises me anymore either.
COSTELLO: Police believe the suspect in both shootings, 20-year- old Stephen Marshall, a Canadian, used the state's sex offender website to find information on the two victims and more than two dozen other sex offenders. Maine's registry provides names, pictures and addresses of more than 2,200 sex offenders throughout the state.
MICHAEL VAUGHN, MAINE STATE REP.: It sets them up. It makes them sitting ducks. They have a name and their face on the Internet.
COSTELLO: The online registry was taken down during a day long, three state manhunt for Marshall. The manhunt ended Sunday night. Police had tracked Marshall to Boston. He was on a bus. As police entered the bus, another gunshot. Marshall had shot himself in the head. The D.A.'s office says he had a laptop and two handguns. News of the shootings has other registered sex offenders concerned they, too, could be on someone else's hit list.
UNIDENTIFIED MALE: We're all at risk. But some people do feel like we're threatening to their kids or themselves so they have to act upon us.
(END VIDEOTAPE) COSTELLO: And the real mystery surrounding this is why would this guy Marshall do this? Just 20-years-old, had absolutely no criminal record. He was in Maine visiting his father. They were sitting the day before having ice cream cones, laughing and talking. And it's the old cliche, he was quiet and nice. So police are still trying to sort it all out this morning, Betty.
NGUYEN: Scratching our heads. We've heard that before, though. Never a word out of him. He was just a nice guy. All right, Carol, we'll wait and see.
Well, new worries this morning about bird flu readiness in this country. Seems a lot of hospitals aren't ready for an outbreak. We'll look at what's being done to avoid a potential crisis.
And an old drug used to treat osteoporosis may have a new use. It could lower the risk of breast cancer. What that means for millions of women. That's next on AMERICAN MORNING.
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NGUYEN: In this morning's "House Call," a major new study shows a drug designed to treat osteoporosis could actually be the best medicine for post menopausal women at risk for breast cancer. Joining us now to talk about the exciting new research is Dr. Carolyn Runowicz, president of the American Cancer Society, and yourself a breast cancer survivor.
DR. CAROLYN RUNOWICZ, PRESIDENT, AMERICAN CANCER SOCIETY: I am. And I'm so excited about this study because of my leadership role in the American Cancer Society and with the group that did the study.
NGUYEN: Well, this study is really remarkable. It looked at two drugs and tell us what it found.
RUNOWICZ: Well, about 20,000 women enrolled in the study and we really have to thank those women for doing this. And half the women were randomized to Tamoxifen and half the women were randomized to Raloxifene or Evista. And what it showed is that we can prevent breast cancer by 50 percent in both groups, but the Raloxifene or Evista group had fewer side effects. Fewer uterine cancers, fewer side effects with respect to hot flashes and fewer side effects with respect to clots and pulmonary embolism.
NGUYEN: Now the Raloxifene, it's used for osteoporosis, right?
RUNOWICZ: It currently is on the market for the prevention and treatment of osteoporosis. So how you can determine if you're at risk is your physician can give you a little questionnaire. You fill it out. And based on that number, you would be eligible for the next breast cancer prevention trial or to go on Raloxifene or Evista.
NGUYEN: So both drugs equal when it comes to prevention for breast cancer, right?
RUNOWICZ: Absolutely. (INAUDIBLE). NGUYEN: It's the side effects which is the key here.
RUNOWICZ: The side effects were the key. And side effects for Raloxifene were less than the side effects for Tamoxifen. So in post menopausal women, they would probably elect to take the Raloxifene but . . .
NGUYEN: It's a two for one.
RUNOWICZ: Right. But in pre-menopausal women, you would still go for Tamoxifen. Fever side effects and Raloxifene has not been tested in that group of patients.
NGUYEN: I see. So when it comes to this drug, I mean, what does this mean for prevention? I mean how remarkable is this study?
RUNOWICZ: It's truly remarkable. As a breast cancer survivor, an ounce of prevention, the answer to cancer is prevention. We have entered a new era. These are going to be more drugs rolling out and some day I'd like to be out of a job. I treat patients with cancer.
NGUYEN: We hope you are. I mean no offense or anything. But for people looking at this drug and what it can do, especially with the two for one benefits, the Raloxifene, is it completely definitive? Has this study answered all questions? I mean I know we're talking about 20,000 women went through the study, but does that mean it's the end all and be all or is there more research that needs to be done?
RUNOWICZ: They'll absolutely do more research because better drugs will be developed. But the take home message is, we can prevent breast cancers. Fifty percent of the breast cancers were prevented in this trial by both drugs. And the Evista had fewer side effects.
Now we'll go to the next study and again the group, the National Surgical Adjuvant Breast and Bowel Project . . .
NGUYEN: That's a mouth full.
RUNOWICZ: It is a mouth full. And I run their GYN committee. And we will be rolling out the next breast cancer prevention trial which will look at the aroma taste inhibitors as compared to Raloxifene. So we are marching ahead in a world called prevention. And for me this is very exciting and this is a real landmark study.
NGUYEN: It truly is. Carolyn, we appreciate your time today. What an amazing bit of information that you have been able to find with this study. Thank you.
RUNOWICZ: My pleasure.
NGUYEN: Miles.
MILES O'BRIEN: Thanks very much, Betty.
Coming up on the program, two Duke University sophomores now facing felony charges of kidnap and rape in the wake of those accusations of sexual assault at a lacrosse party. We'll have details for you in just a moment. Stay with us.
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ALINA CHO, CNN CORRESPONDENT: Developing story in the Duke Rape investigation. Two lacrosse players were arrested just hours ago. I'm Alina Cho in Durham, North Carolina with that story.
BARBARA STARR, CNN CORRESPONDENT: I'm Barbara Starr at the Pentagon with details of Operation Defend Donald Rumsfeld.
CHRIS LAWRENCE, CNN CORRESPONDENT: I'm Chris Lawrence live in San Francisco where the city is marking 100 years since the 1906 earthquake. Is it ready for the next big one?
CHAD MYERS, CNN METEOROLOGIST: And record heat yesterday in Texas and more record heat today. Dallas reached 101. There were rolling blackouts. Will there be more today. That's coming up.
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