Return to Transcripts main page
CNN Newsroom
Iraqi Assassination; British Marines Seized; House Debates Iraq Spending Bill; Iraq Bill & Port Projects; Gerri's Top Tips
Aired March 23, 2007 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Animals dying after eating bad pet food. Now angry pet lovers taking matters to the courthouse.
It is Friday, March 23rd, and you are in the NEWSROOM.
HEIDI COLLINS, CNN ANCHOR: An assassination attempt in Iraq. A suicide bomber targets one of the country's deputy prime ministers. Let's go ahead and get right to Baghdad and CNN's Kyra Phillips.
Kyra, what's the latest on all of this now?
KYRA PHILLIPS, CNN CORRESPONDENT: Well, I'm getting more about who that possible suicide bomber was. There's been reports it could have been a cook that was working for the deputy prime minister. It could have been a friend of the bodyguard. It even could have been the bodyguard, we're told, that might have been work for al Qaeda. Also word out there that it might have been his advisor. We can tell you that in this blast an advisor was killed, security members of the deputy prime minister's team were killed and also his brother.
Now, that suicide vest, just to give you an idea, this is a ball bearing from that vest, Heidi. It has a plastic explosive inside the vest and thousands of these little ball bearings basically shoot out from this vest once it's detonated. That's what causes such massive destruction. You could even see where those ball bearings hit in the walls inside that compound.
Something else that we're learning. You know, today's Friday. It's Friday prayer. In Arabic it's Salaat-ul-Jumma. And there is a curfew that takes place from 11:00 in the morning all the way to 3:00 p.m. So families stay home. It's a day off. And we're being told now the deputy prime minister in a special room praying when this all happened. So for a suicide bomber, for any attack to happen when they know a specific time, location that somebody like the deputy prime minister would be following a day like Friday prayer, it would make sense that it would happen in this time frame.
Now how did that suicide bomber get to the compound? That is life here in Baghdad. This is the reality of Iraq. Nothing is secure. You can get through armed compounds, tons of guns, a number of checkpoints and still, if you are working on the inside, you have special access versus those that don't. However, you don't know if it's a good guy or a bad guy that's working these checkpoints. So right now it looks like it was an inside job, someone working for the deputy prime minister. COLLINS: Kyra, tell us a little bit more, if possible, about the deputy prime minister's background and if there's any information on his condition at this time.
PHILLIPS: Absolutely. We're told that he is still in surgery in a U.S. military hospital, Heidi, inside the green zone. As soon as this happened, he was taken there. Now according to the prime minister, Nuri al-Maliki, he is coming out saying that he visited the deputy prime minister and that he's fine. But we're getting conflicting reports. Some sources are saying, no, he's in surgery, don't know if he's going to make it. But now the prime minister coming forward saying, I visited him, he seems to be doing OK.
Here's what's interesting. The deputy prime minister is from a district called Zorba (ph). And right now, in his home district, there's a tremendous battle going on between Sunnis and al Qaeda. So when you hear the talk that possibly his bodyguard or a friend of the bodyguard who works for al Qaeda might have been the suicide bomber, it's an interesting correlation between what's happening in his home district and what we saw happen here today.
Heidi.
COLLINS: Yes, certainly is. All right, Kyra Phillips coming to us live from Baghdad.
Kyra, thanks.
HARRIS: International incident in the Persian Gulf this morning. Britain saying 15 of its marines have been seized by Iran's navy. What does this all mean? Our Jamie McIntyre is following the story from the Pentagon.
Good morning, Jamie.
What's the latest?
JAMIE MCINTYRE, CNN CORRESPONDENT: Well, good morning, Tony.
This incident happened morning Iraq time in this area right between Iraq and Iran, in the northern part of the Persian Gulf. The British navy ship, the HMS Cornwall, was on routine patrol when it spotted a suspect vessel, according to a U.S. military official, that it believed it might be smuggling automobiles. It dispatched two smaller craft -- two small ribbed inflatable hull boats. Sometimes referred to as zodiacs in the U.S. Navy -- to go out and board the ship and inspect it.
This is right in the area, again, where the Shatt al-Arab waterway is. Right in the place where Iraq and Iran come together at the top of the northern Persian Gulf. It's an area where there's been a lot of disputes about where the water is.
They completed the inspection of the ship and they had gotten off, according to British ministry officials, when six vessels from the Iranian revolutionary guard naval corp showed up. Not part of the regular Iranian navy. Said that the British marines were violating international waters and then took them back to Iran, along with those two boats. Now the British commander of the maritime task force there insists that his marines were in Iraqi territorial waters.
(BEGIN VIDEO CLIP)
COMMODORE NICK LAMBERT, HMS CORNWALL, TASK FORCE 158: The normal routine boarding took place fairly early this morning, about 9:00 local time, under the auspices of UNSCR 1723 and under the instructions of the Iraqi government to patrol on their behalf their territory waters. So we were boarding a vessel that was trading in the area, which had passed one or two trip wires that we were concerned about. For example, its flag and its call sign and so forth. So the boarding party went in to carry out a routine boarding approach (ph).
(END VIDEO CLIP)
MCINTYRE: Now the British government is taking this very seriously. They've called the Iranian ambassador into the British foreign office in London to lodge a protest. A statement from the British ministry of defense says, "we are urgently pursuing this matter with Iranian authorities at the highest level. The British government is demanding the immediate and safe return of our people and equipment."
And, Tony, you may recall back in June of 2004, six British marines, two sailors were seized by Iran in the Shatt al-Arab waterway between Iraq and Iran. They were presented blindfolded on television but eventually were released several days later.
Tony.
HARRIS: And, Jamie, anything from Iranian officials on this particular episode?
MCINTYRE: We have not heard anything here, nor has anyone in the U.S. military monitored what the Iranian response has been so far. But based on past experience, it may be the case that they will say that these Iranian revolutionary guard naval corp is not acting on behest of the central government. But we'll have to wait and see what they really say.
HARRIS: Yes. Our senior Pentagon correspondent Jamie McIntyre for us this morning.
Jamie, thank you.
COLLINS: CNN also has the story covered from Iran now. Our Aneesh Raman is in the capital, Tehran.
Aneesh, we want to know if there is any reaction from the government there yet to this situation?
ANEESH RAMAN, CNN CORRESPONDENT: Yes, Heidi, good morning. No reaction yet. Not even a mention so far on Iranian state-run television. If the past is any predictor, it could be a matter of days, perhaps a day or two, before we get an official statement from the Iranian government.
Part of that delay is that the Iranian new year has come to the country. The celebrations are now in place. Holidays throughout the country. So government officials are hard to get. We have put a number of calls in to ministry officials. Those have gone unanswered.
As Jamie mentioned, a couple of points to provide some context here. The first, again, to look to the past to indicate what Iran might say. Is that incident two years ago, in June 2004, in and around this same area where today's incident took place, which is itself a river that feeds into the northern part of the Persian Gulf. The Arabs call it Shatt al-Arab. That's what the Iraqis call it. The Iranians called it Arvonrug (ph).
In that area two years ago, the Iranians seized a number of British military personnel, held them for three days. Their contention was that the British military personnel had illegally crossed into Iranian waters. The British denied that. Said they were in Iraqi waters.
The similar situation playing out today. The British are saying they were in Iraqi territorial waters. We haven't heard from the Iran, but it could be that they say they crossed into Iranian waters. The river, essentially, is the border. In the middle of that river is the border between Iran and Iraq. So you get a sense of how tense the situation is there trying to define whose water someone is in.
But again, we wait to hear any word from the Iranian government. None so far, Heidi.
COLLINS: Interesting, too, as Jamie was saying, that this is not a section or the boats that went in on the Brits was not a group associated with the regular Iranian navy. So interesting if we can find out more information about all of that.
Aneesh, thanks so much. Let us know what you find out.
HARRIS: Time for a quick check of weather across the nation. Rob Marciano standing by in the Weather Center for us.
Good morning, Rob.
(WEATHER REPORT)
COLLINS: Getting the story first, but getting it wrong. Big scoop backfires. We're minding the media, coming up in the NEWSROOM.
HARRIS: Also, what do Iraq and spinach have in common. It is a question only Congress can answer. Your tax dollars at work, in the NEWSROOM.
COLLINS: Billions of dollars coughed up by cigarette makers in an historic legal battle.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Most states have taken their money, forgot about what the fight was about and spent it on highways or a bad deficit that they might have or something else.
(END VIDEO CLIP)
COLLINS: Golf courses, pet projects. We'll show you the money in the NEWSROOM.
HARRIS: A healthy dog suddenly is sedate.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Do you think she could have eaten anything? He goes, it's toxic. Everything's coming up toxic.
(END VIDEO CLIP)
HARRIS: Pet owners' nightmare turns to outrage. That story in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: And good morning again, everyone. You're in the NEWSROOM. I'm Tony Harris.
Coming up, the war in Iraq. Dollars and deadlines and a heated debate on Capitol Hill. Stay tuned.
You're watching CNN, the most trusted name in news.
(COMMERCIAL BREAK)
COLLINS: Welcome back to the NEWSROOM, everybody. I'm Heidi Collins.
Bombs, bullets and bucks. They are the weapons of war in both Iraq and Afghanistan. And also in Congress. This morning, House Democrats trying to pass their first binding challenge to the fighting in Iraq. The bill provides more funding, but also demands that combat troops come home by September of next year. CNN congressional correspondent Andrea Koppel has the latest now from Capitol Hill.
Andrea, do Democrats have the votes to approve this emergency Iraq War funding bill, $124 billion worth?
ANDREA KOPPEL, CNN CORRESPONDENT: Well, CNN put that question directly to the majority leader, Steny Hoyer, just a short time ago. And he told producer Deidre Walsh that he thinks they do. In fact, Heidi, other Democrats that I had spoken to in the last day or so admitted they would not have brought the bill to the floor today for a vote if they didn't think they had the 218 needed to pass it. The debate is now underway. It is supposed to last for two hours before the vote happens. And we knew going into today that there were a couple of hold-outs. A couple of undecided Democrats in the anti- war camp. That may not make sense to a lot of people, considering, as you just said, for the first time this would be binding language setting a date certain for all U.S. combat troops to leave Iraq.
Why don't they support it? Well, because people like Dennis Kucinich, who himself is run for president, is saying that the war -- we shouldn't be adding any more money for this war. This bill has over $100 billion to fund the emergency spending for the wars in Iraq and Afghanistan. When he came out of the Democratic caucus meeting this morning, Dennis Kucinich was fuming.
(BEGIN VIDEO CLIP)
REP. DENNIS KUCINICH, (D) OHIO: OK, follow this. Four years ago we were told we had no alternative but to go to war. Now we're being told we have no alternative but to continue the war for another year or two. Well, the fact of the matter is, we do have alternatives. It was wrong four years ago to go to war. It's wrong today to continue the war. Congress has the power to stop funding the war. That's what we should do. That's what we should have done. And that's what I'm going to continue to work towards. We have to get out of Iraq, period.
(END VIDEO CLIP)
KOPPEL: Now what has Republicans up in arms, in addition to the fact that they feel that by setting a date certain that ties the hands of commanders on the ground, they have been raising holy heck about the fact that there are $21 billion of what they say are sweeteners. Unnecessary money. Things like $25 million for peanut farmers. $74 million for other agricultural concerns. But there's also billions of dollars for things like Walter Reed and for Hurricane Katrina clean- up.
We heard again on the floor just a few minutes ago from the Democratic chairman of the Appropriations Committee, David Obey, who was fighting back against those charges.
(BEGIN VIDEO CLIP)
REP. DAVE OBEY, (D) WISCONSIN: We're in the arena. They're not. And this is the best we can do given the tools we have. And I make absolutely no apology for it.
(END VIDEO CLIP)
KOPPEL: As you can see, tremendous emotion among Democrats, as well as Republicans. But, Heidi, the biggest challenge for Speaker Nancy Pelosi has been not getting Republicans to cross over, but to get members of her own caucus to support this bill, which they expect will pass in the next couple of hours on the floor of the House.
COLLINS: But we also know that President Bush has been threatening to veto this no matter what happens or what comes out of it to his desk. What will then happen with this legislation?
KOPPEL: Well, very few people, if any, expect it would even end up on the president's desk. Once it passes the House, if it does later today, the action and the attention will focus on the Senate next week. The Senate Appropriations Committee just passed out a similar bill yesterday out of committee which will land on the Senate floor as soon as next week for debate. But, Heidi, over there, the Democrats' majority is even slimmer. Just one vote. They would need 60 votes to pass it. And no one at this stage of the game believes they have those votes.
COLLINS: All right. CNN's Andrea Koppel.
Thank you, Andrea.
HARRIS: The emergency spending bill for Iraq. It is not all about war funding. Your tax dollars earmarked for some other things. CNN's Bob Franken pulls the lid off a pork barrel.
(BEGIN VIDEOTAPE)
REP. NANCY PELOSI, (D) HOUSE SPEAKER: With today's convening of the 110th Congress, we begin anew.
BOB FRANKEN, CNN CORRESPONDENT, (voice over): That was the rallying cry from the newly in charge Democrats, the wheeling and dealing and hidden pork barrel spending would be no more. Fast forward just 10 weeks. Democratic leaders face their biggest challenge so far. The legislation providing $124 billion in war funding, combined with a troop pullout from Iraq next year. And they're using every tool at their command. The same tools they criticized the Republicans for using -- good, old fashioned pork.
REP. DAVID DREIER, (R) CALIFORNIA: It enjoys such limited support on the other side of the aisle that it had to be laden with unrelated, unrelated pork in order to win enough votes to have any hope of passing.
REP. MARK KIRK, (R) ILLINOIS: It would provide $25 million in a bailout for spinach farmers. Another $74 million in taxpayer dollars for peanut storage. And $283 million for milk producers.
FRANKEN: And farm relief, which creates quite a dilemma for many members, even Republicans.
REP. MARILYN MUSGRAVE, (R) COLORADO: Shame on the Democrats for playing politics with people's lives.
FRANKEN: Marilyn Musgrave normally wouldn't even consider supporting a troop pullout, but her district really needs relief. Put her in the undecided column.
MUSGRAVE: And, of course, my heart is always with our troops. So as it comes down to the wire, I'm just going to make the very best decision I can.
FRANKEN: Democratic leaders insist this is not pork.
REP. STENY HOYER, (D) MARYLAND: The pure vote is national security here at home and national security aborad. The president has not funded properly either the war or domestic programs. This is a bill that will have add-ons, yes. But add-ons for what we believe to be emergency objectives. Now children are going to start being kicked off health care roles in the richest county on the face of the earth. We think that is a priority.
FRANKEN: The domestic money in the bill is tempting, but the White House warns that members should resist temptation.
TONY SNOW, WHITE HOUSE PRESS SECRETARY: The one they're considering has zero chance of being enacted into law. It's bad legislation. The president's going to veto it and Congress will sustain that veto.
FRANKEN: So this is anything but a done deal. It is not time, yet, for the members to count on bringing home the bacon.
Bob Franken, CNN, New York.
(END VIDEOTAPE)
COLLINS: A legendary coach is dead. Police call it murder. A live report from Jamaica.
You're in the NEWSROOM.
GERRI WILLIS, CNN CORRESPONDENT: I'm Gerri Willis. From your mortgage to your home price, how to handle the mortgage meltdown.
(COMMERCIAL BREAK)
HARRIS: Heidi, we're trying to get some traction on this business day. Getaway day Friday.
COLLINS: Well, bring it. Make it happen.
HARRIS: Trying to. Flat so far, wouldn't you say? The Dow up just, you know, eight points. We're keeping a close eye on the energy sector this morning, specifically oil prices. We're following all of the business news this morning with Susan Lisovicz right here in the NEWSROOM.
COLLINS: It's Friday, which means Gerri's "Top Tips" answers e- mails from viewers. And today they're all about one topic, mortgages. Let's turn to CNN personal finance editor Gerri Willis.
Hi, Gerri.
WILLIS: Happy Friday, Heidi.
COLLINS: Hey, happy Friday. That's right. Joining us from Washington today, too. I know that you've been really looking at all of these mortgage-type issues. In fact, we have our first question coming to us from Dina in Rhode Island. She says this. "What is going to happen to all these buyers, including myself, who purchased at the wrong time? What is your take on it?"
WILLIS: Well, there's no doubt it's a scary time for people who bought in the last couple of years and maybe they paid top dollar for their house. The good news is, if you bought your home with the idea of staying put for a while, you really don't have much to worry about. Markets, even real estate markets, are cyclical. If prices go down in your area, they will eventually turn higher unless, of course, your local economy is hit by major job losses.
However, if you plan to sell this year or next, you could be in trouble getting the price you want. You'll need to be aggressively marketing your home and possibly be flexible on the price you're willing to take. Your best off delaying your move if you can until the market stabilizes.
COLLINS: OK. All right. Let's look at our second question here now coming in from Billy. "I am planning to buy a home this summer. What interest rate should I expect if I have a credit score of 720" -- pretty darn good -- "and a down payment of 20 percent?" This is great, yes?
WILLIS: That's pretty impressive. Well, Billy, we can't predict what interest rates will be. If I could do that, I'd have an island somewhere in the Caribbean.
COLLINS: Me, too.
WILLIS: But the good news is this, 720 is a pretty good credit score. It's not perfect, but you'll still qualify for very good rates. And you'll be able to compare offers, of course, from a number of lenders.
Now, if you were buying that home today, you'd qualify for a rate of 6 percent on a $300,000, 30-year fixed mortgage. That according to Fair Isaac. You want to keep that score up because if you fall below 700, you would have paid 6.3 percent for that same loan.
The good news is your down payment. Lenders love it when buyers have some skin in the game and they reward them with better loan terms.
COLLINS: All right. Sounds good. Let's go do this one now from Mark in North Carolina. "I recently received an unsolicited refinancing offer. It appeared to be from my mortgage lender. However, the fine print indicates the information was from 'an estimated public record source.' I consider this an invasion of privacy. How can I block these inquiries?" I guess it depends on how much information of his, his personal information, that they had.
WILLIS: Well, I mean, the answer's really pretty simple. It seems like everybody's getting these solicitations these days. And, sad to say, but, you know, public records are public. We checked with the Federal Trade Commission on this one and the worst thing is that you can't do anything about it really. Most municipalities have tax records and public documents that are available to anyone free from mortgage companies to your next door neighbor.
The take-away, though, is that you should be extra special cautious with unsolicited offers. Even if something looks authentic, never take any marketing material at face value. And if you have any question or you want to verify something, get in touch with your original lender. Rest assured they probably don't want your information going to the competition.
Bottom line, though, you know, you just want to make sure that you really take a hard look at anything coming through the mail. You're better off shopping on your own.
COLLINS: Yes, I bet. All right, Gerri.
Hey, you have a show coming up this weekend?
WILLIS: That's right. Saturday morning 9:30 a.m. Eastern right here on CNN. "Open House." We're going to talk more about mortgage meltdown. We'll show you the hearings that took place this week on Capitol Hill. And we'll also show you how to cut your taxes.
COLLINS: That is a show not to miss, no question about it.
Gerri Willis, thank you.
WILLIS: Thank you, Heidi.
HARRIS: Getting the story first, but getting it wrong. Man, big scoop backfires. A couple of times for this outfit this week. We're minding the media in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: The war in Iraq, the battle on Capitol Hill. Live pictures now of the debate as it continues. House Democrats say they're about to pass the first binding challenge to the fighting in Iraq. A vote expected today on a landmark piece of bill, legislation funding the war. It provides $124 billion for the wars in Afghanistan and Iraq and it mandates U.S. combat troops return home by late summer 2008. Changes to the bill are likely in the senate where lawmakers oppose a firm deadline for troop withdrawals and President Bush vows to veto the bill if it ever reaches his desk.
COLLINS: Fighting cancer, forging ahead in the presidential race. John and Elizabeth Edwards back on the campaign trail today. They're heading to California for a fundraiser. In North Carolina yesterday they revealed her cancer is back. But she says she's prepared for the demands of the campaign and her cancer treatment.
(BEGIN VIDEO CLIP)
ELIZABETH EDWARDS, JOHN EDWARDS' WIFE: I'm absolutely ready for this. I'm ready for that. Honestly, I have all the energy. One of the reasons to do a press conference as opposed to a press release, so that you can see, I don't look sickly, Ii don't feel sickly. And you know, I'm as ready as any person can be for that. You know how grueling it is in general. There is a likelihood that some of the medications that I will be taking will at some times make me tired. I have, as you all well know and a lot of you actually know my younger children, 6 and an 8-year-old, if I get tired, I actually expect they're going to be the reason as opposed to the medications that Dr. Carrie is going to be giving me. But there's a chance that both of them will make me tired sometimes and so sometimes I'll step back to sort of regain my energy. But I'm also 57, you know, so I might get a little tired. But right now I don't feel any of that.
(END OF VIDEO CLIP)
COLLINS: Elizabeth Edwards was treated for breast cancer back in 2004. Now doctors say they found cancer in her right rib. It's described as treatable but not curable.
Media mistakes. We're taking a closer look at coverage of the fired prosecutor story and one website's big blunder on John and Elizabeth Edwards. Joining us now in the NEWSROOM, Howard Kurtz from "The Washington Post" and CNN's "RELIABLE SOUCES." Howard, so nice to see you. Thanks for being on the program today.
HOWARD KURTZ, WASHINGTON POST: Thank you.
COLLINS: So what do you make of all this? We're talking of course about politoco.com who apparently put a story out there pretty quickly that yes, indeed, John Edwards would be suspending his campaign or possibly dropping out entirely because his wife Elizabeth's cancer had returned.
KURTZ: What I absolutely fail to understand is why you would risk the reputation of your publication to get a, quote, scoop 45 minutes before the rest of the world is going to find out what John and Elizabeth Edwards is going to do. And to take that risk based on a single unnamed source described as a friend of John Edwards who said that not only was he suspending his campaign but he might drop out entirely made that website look bad. They did immediately apologize when it turned out they were wrong, but also made the television networks who picked up the story, including CNN, repeat the error.
COLLINS: Well, we also, you know, we always got to make sure that we do attribution, which is of course what we did according to politoco.com but then pretty quickly after that our sources on the ground and also in Washington were saying, well no wait a minute, that's really not what they're saying, they're backing away from that so we also reported that. Why the pressure, you think, Howard, to get something first as opposed to getting it right? There's a lot of stuff going on. A lot of stuff happening very immediately now in this business.
KURTZ: Well, look, I'm a very competitive journalist, I like to get scoops. But scoops are basically stories that no one else is going to get. In order to find out 30, 40, 45 minutes before a press conference what somebody is going to say is not a great scoop but we all live in this sort of wired digital world right now where you're checking the Internet every five minutes. I suppose in that universe you get kind of bragging rights if you can be fist. It also helps if you're right. In this case unfortunately politico.com was wrong and realizes that it should not have run with that story based on a single unnamed source who as it turned out didn't know what he was talking about.
COLLINS: Yeah and it seems like you have one negative or one mistake and it kind of really blows it for you for at least, you know, the short term. What about the long term effects here for politoco.com?
KURTZ: Well you know nobody wants to be associated with something that reminds us all of that famous 1948 "Chicago Tribune" headline Dooey Defeats Cooney." And I would say that it's great to be first, but you know, people are going to remember this. It's only a two-month-old publication and they have some good reporters and they do some good work. Unfortunately they took a flier on this story and fell flat on their face.
COLLINS: Howard, let's change topics for a moment here. There's another story that has been out there, it's been interesting to follow the media, quote, frenzy, some people would call it that, about the U.S. attorneys that were fired, eight of them. And Alberto Gonzales who we're seeing here now. Has the media done a good enough job in your assessment of explaining why this story is important to the American people?
KURTZ: I think so. This was primarily a newspaper story first broken by the "Wall Street Journal" for about two months before television finally clued into it. I think there's been some very, very good both investigative reporting and explanatory reporting having to do with why this is unusual and how come -- how it was that Attorney General Gonzales provided what many considered to be misleading testimony to Congress about why these prosecutors were fired and all of that. But here's where I am worried. I am worried that in the last week as the president has offered to make Karl Rove and other White House officials available, not under oath, no transcripts, the press clearly thinks that's a terrible idea. The questioning of Tony Snow both in the news conferences and on the television appearances he's made has come pretty close to badgering. It looks I think to a lot of people like the press is taking sides here and beating up on the White House when we have to be very, very careful to report both sides in this dispute.
COLLINS: And then interesting, too now, as you say, it seems like this story really only got serious traction anyway just last week. I imagine this is the reason why.
KURTZ: This is the reason why. And also another example of media excess here while clearly, you know, you have to wonder about how much longer Alberto Gonzales can remain in his job, there were some news outlets, CBS News was one of them, went out and just said, he's gone, he's toast, his resignation is inevitable. And so far that doesn't appear to be the case. President Bush seems to be standing by him. So good story, important story dug out by the media but once we get into that speculation frenzy, sometimes there are mistakes in excesses and that's what I think we're seeing particularly here in the last week.
COLLINS: Yeah and we are going to be watching it very closely now of course that the House and Senate have both voted to issue those subpoenas should they need to. So the story goes on. Howard Kurtz, a pleasure having you. Thank you much.
KURTZ: Thank you.
HARRIS: Well, it was a shocker for sports fans around the world. The death of Bob Wolmer, today another jolt, police say the legendary cricket coach was murdered. An initial pathology report finds Wolmer died by manual strangulation. The 58-year-old coach of a Pakistan team was found unconscious in his Jamaican hotel on Sunday. His team had just been eliminated from the World Cup cricket competition by a relatively unknown Irish team. All members of Wolmer's team were fingerprinted then cleared and allowed to leave Jamaica.
COLLINS: Billions of dollars coughed up by cigarette makers in an historic legal battle.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Most states have taken their money, forgot about what the fight was about and spent it on highways or a bad deficit that they might have or something else.
(END OF VIDEO CLIP)
COLLINS: Golf courses, pet projects? We'll show you the money in the NEWSROOM.
SUSAN LISOVICZ: I'm Susan Lisovicz at the New York Stock Exchange. When NEWSROOM returns, I'll tell you about an agreement that could bring air travelers lower fares and more options. Details on "open skies" coming up. You're watching CNN, the most trusted name in news.
(COMMERCIAL BREAK)
HARRIS: Hundreds of billions of dollars, money from cigarette makers. It was supposed to be used to help treat sick smokers and keep kids from lighting up. But that's not what most states did with the money. Where did it go? Investigative correspondent Drew Griffin takes a look.
(BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN CORRESPONDENT (voice-over): It was one of the biggest legal battles in history, big tobacco against just about every state in the nation. And these two men were on opposite sides. Haley Barber, a Republican operative, was lobbying Congress for the tobacco companies. Mike Moore, then Mississippi's Democratic attorney general, was leading the nation's attorneys general in the fight against big tobacco. In the end, Moore won and the tobacco companies lost. Cigarette makers agreed to pay the states a total of $246 billion over 25 years. Just part of the cost of treating people for tobacco-related illnesses.
UNIDENTIFIED MALE: So what we thought is, could we recover some money to try to help repay that cost but also take a portion of the money and prevent young people from ever smoking in the first place.
GRIFFIN: But instead of spending the money on preventing and treating tobacco addiction, most states, according to the non-profit Campaign for Tobacco-Free Kids, spent it on regular bills. Jumping the money year after year into their general funds. Some states even used the money for pet projects, sprinklers for a golf course in New York, college scholarships in Michigan, a horse park in North Carolina.
One state that year after year has used some of the money to fight tobacco use was Mississippi. Now that former tobacco lobbyist is Mississippi's governor and he wants to change how his state spends its tobacco money.
UNIDENTIFIED MALE: Now, raise your hand if you know what the word addicted means.
(END OF VIDEOTAPE)
HARRIS: You know what, Drew, whenever you come up with these reports I end up with 100 other different questions than the one we talked about discussing. So I watch your piece and the first thing I want to know is how do the states get away with it? Irrigation systems for golf course? Come on.
GRIFFIN: Here's the tobacco money comes year after year Tony, it flops in the lap of the legislature and the legislature goes, whoa-oh, what can we do with this money, not how can we best use this money to stop smoking.
HARRIS: And they're throwing it in many cases into the general fund for the state.
GRIFFIN: Not in many cases, in almost every case. You know, the studies have been done, less than 3 percent of this money nationwide, less than 3 percent actually has gone into reducing smoking programs.
HARRIS: Let's talk about teen smokers. Has the money that has found its way to these teen smoking programs, has it been effective?
GRIFFIN: It has been effective, everywhere it's been tried in a comprehensive manner. In other words, in teaching in schools, the billboards, re-enforcing at home on television, it has reduced smoking. But as we see less and less of the money being spent on anti-tobacco programs, guess what happens --
HARRIS: It goes the other way.
GRIFFIN: Yeah. Teen smoking is on the rise for the first time in eight years.
HARRIS: Ok, so your piece tonight, "ANDERSON COOPER 360" at 10:00 tonight, will focus on Mississippi. Why Mississippi?
GRIFFIN: Mississippi is a some what odd case. They settled their case first. And in the settlement in Mississippi they said, ok, we're going to take this money from you, the tobacco companies, but we're also going to set aside $20 million a year, right, for the anti- tobacco program. It's been very, very successful. Teen smoking down in Mississippi by some 40 percent. But guess what? There's a new boss in town. There's new politics going on in Mississippi. And that anti-smoking program has gone away.
HARRIS: Mr. Haley Barber. That's right, the governor of Mississippi, can't wait to see it tonight, investigative reporter Drew Griffin with us. Drew great to see you, thanks.
COLLINS: In business news now, a landmark deal called open skies aims to do just that. Open Trans Atlantic air travel to more competition. Susan Lisovicz is at the New York Stock Exchange with details on all of this. Hi Susan, this has been something talked about for a very long time.
LISOVICZ: Decades actually. It's amazing that you can buy German cars in the U.S. but you can't -- a German carrier can't fly into the U.S. The bottom line is that prices on some flights to Europe should decline next year after years of negotiations, the European Union and the U.S. have agreed to deregulate air travel. Called open skies, the pact will give more U.S. carriers access to fly directly to key European airports and more European carriers will be able to do the same here as well. The deal will take affect next March. Key to the agreement is London's Heathrow Airport, currently only British Airways, Virgin Atlantic, American and United Airlines are allowed to fly Trans Atlantic routes there. But the new rules will abolish those restrictions. Heidi?
COLLINS: So then, can we expect to see more carriers flying between the U.S. and Heathrow? I would imagine yeah.
LISOVICZ: Right, exactly. It's an important gateway certainly to Europe. The deal will open the door for competition, but getting the rights to fly to and from Heathrow is expensive and difficult. "The Wall Street Journal" says just one landing or departing time slot costs as much as $25 million. But then again it may be worth it, 50 million passengers currently fly across the Atlantic every year and the new deal could increase that by another 25 million people within five years. Continental reportedly seeking authority to operate in all EU countries. United hopes to boost its service to Europe, too and for travelers more competition could translate into cheaper ticket prices.
On Wall Street, housing is in focus once again. Sales of previously owned homes rose in February by the highest amount in nearly three years. But other numbers in the report show that the housing market remains in trouble. Realtors Trade Group says home prices fell for a seventh straight month and the inventory of unsold homes on the market now 25 percent higher than it was a year ago. But on Wall Street, the Dow is rallying for the fifth day and guess what? It is above the level where it ended December -- the end of December '06. So it means we're up for the year just fractionally, Heidi. The NASDAQ composite is down.
COLLINS: Up is better than down any time.
LISOVICZ: That's right. That's the latest from here, Heidi and Tony. Back to you.
COLLINS: All right Susan, thanks.
HARRIS: It's only Friday. Saying it all day because it's Friday. But that doesn't mean that the news stops for the weekend. Betty and T.J. are here now with a look ahead to "CNN SATURDAY MORNING."
BETTY NGUYEN, CNN ANCHOR: This weekend we continue to follow Elizabeth Edwards' battle against breast cancer. We're going to explore treatment options and her chances of survival. A leading cancer specialist will join us live.
T.J. HOLMES, CNN ANCHOR: Plus, facing down a killer in the face of this killer campaign. We'll talk about the impact on John Edwards' race for the White House.
NGUYEN: Also we are tracking those pink slips and of course the e-mails. Congress trying to get to the bottom of the firings of eight federal prosecutors.
HOLMES: And speaking of e-mails, some important lessons for everybody to learn. We'll tell you the three things you should never ever include in a work e-mail. Who can actually see that e-mail before and after you hit that delete button.
NGUYEN: CNN SATURDAY and SUNDAY MORNING, beginning tomorrow at 7:00 eastern.
COLLINS: A top Iraqi politician targeted. A suicide attacker makes a bold strike inside his compound. Assassination attempt in the NEWSROOM.
HARRIS: Chef Wolfgang Puck standing up for the average duck. It is a story that has Daffy and Donald high fiving this morning and it is coming up for you here in the NEWSROOM.
COLLINS: 80-year-old mystery. An escapee artist relative takes steps to prove it was murder. Houdini, who done it, in the NEWSROOM.
(COMMERCIAL BREAK)
COLLINS: Well, we all have our limits, don't we? So does Wolfgang Puck. The celebrity chef is drawing his personal line in the (INAUDIBLE). He's taking the liver pate off the menu in his restaurants because he objects to the way it's made. Ducks and geese are force fed with tubes to fatten up their liver. Other animals also getting a break, Puck will no longer use pork or veal from animals that have been kept in crates. And no more eggs from caged hens.
HARRIS: A big pet food recall to tell you about. Cat and dog owners around the country are left a bit confused and worried today. More than a dozen animals have died. Some people are demanding accountability. CNN's Alina Cho reports.
(BEGIN VIDEOTAPE)
ALINA CHO, CNN CORRESPONDENT (voice-over): Two-year-old Princess a 90-pound bull mastiff was always healthy. So when owner Sandy Bobb found her usually feisty dog suddenly sedate, she started to worry.
SANDY BOBB, SUING PET FOOD MANUFACTURER: She was at the bottom of my basement stairs, just laid out, with her nose in a corner. I said, this isn't right.
CHO: Her husband immediately took Princess to the vet.
BOBB: He kept saying, do you think she could have eaten anything? He goes, it's toxic. Everything is coming up toxic.
CHO: The next day Princess's kidneys failed and she died. The Bobb family was stunned. So was Jackie Johnson, her cat Gumby got sick a month ago.
JACKIE JOHNSON, CAT HAS KIDNEY DISEASE: She immediately vomited, which is not usual. And during the week she progressively got worse.
CHO: Gumby, like Princess, was diagnosed with kidney failure but the 14-year-old cat survived and a month later is still on an IV. Johnson gave Gumby IAMS brand select bites, Bobb fed Princess Natural Choice Pouches. Two of the 95 brands of cuts and gravy styled dog and cat food recalled last week. 60 million cans and pouches in all. While pet owners everywhere are worried, Johnson and Bobb are taking action, both have filed lawsuits against manufacture Menu Foods.
BOBB: Sick to my stomach at how a company like that could, you know, where is their quality control, how does something like this happen?
CHO: Menu Foods would not comment on the lawsuits but a spokesman said the company is working on finding the root of the problem. The FDA believes wheat gluten, a thickening agent, may be the culprit. To date, at least 14 animals have died. Veterinarian Cathy Langston who has treated a dozen cases linked to the recall including Bunky, says she's never seen anything like this.
DR. CATHY LANGSTON, THE ANIMAL MEDICAL CENTER: I'll admit that I was almost crying as I walked home last night thinking about all the animals that are effected by this.
JOHNSON: The goal is not retribution, per se, it's justice. We need to find out what happened.
CHO: Alina Cho, CNN, Merrick, New York.
(END OF VIDEOTAPE) COLLINS: International incident on the high seas. Iran seizes 15 British marines in the Persian Gulf. It's a developing story in the NEWSROOM.
HARRIS: House Democrats warming up for a vote on Iraq today. It is a direct challenge to President Bush. We follow this developing story in the NEWSROOM.
(COMMERCIAL BREAK)
COLLINS: The mystery has fascinated Americans since the 1920s. This morning, relatives of legendary escape artist Harry Houdini talk about a plan to exhume the magician's body. Houdini died in 1926. At the time, it was said he died of a burst appendix. But there are persistent theories now that Houdini might have been poisoned, possibly by mediums and physics he was fond of debunking.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxant.com
