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Inmate Kills Corrections Officer During Medical Transfer; Suspicious Fire Devastate Homes Around Lake Tahoe; Police Officer Charged in Murder of Jessie Davis; Baghdad Hotel Lobby Blown Up; Video Released of Kidnapped British Journalist.

Aired June 25, 2007 - 13:00   ET

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

KYRA PHILLIPS, CO-HOST: Hello, everyone. I'm Kyra Phillips at the CNN world headquarters in Atlanta.
DON LEMON, CO-HOST: And I'm Don Lemon.

Tahoe in June, ordinarily heaven on earth. Today, hellfire and devastation.

PHILLIPS: A wild fire of suspicious origin consumes more than 200 homes, and hundreds more may be at risk.

You're live in the CNN NEWSROOM.

Happening right now live from Washington, D.C. He says that he lost his pants, and he wants $54 million from his dry cleaner.

Well, we're just getting word that a judge has thrown out this claim for $54 million in the case of the missing pants. We're talking about Roy Pearson, himself a judge. He's the one who came forward with this case.

We're expected to hear from the Chung family, the owners of this dry cleaner's very soon. When that happens we'll take it live.

LEMON: We're also following another developing story here in the CNN newsroom. Let's get to the newsroom and the breaking news desk. T.J. Holmes working on a developing story out of Utah.

What do you have, T.J.

T.J. HOLMES, CNN ANCHOR: We have a corrections officer that has been shot and killed today. According to authorities, he was transferring a prison inmate to a medical facility at the University of Utah. When that person right there -- is prison inmate.

And you can see, he is well padded up on his face. If you take a closer look, it actually has a swastika on there. And says "Skinhead" on his forehead. But he has them all throughout his neck and over his body. But yes, on his face, as well. That is Curtis Allgier, a 27- year-old inmate.

Now, I'll tell you what happened earlier. He was taken to a medical facility, where he had a medical appointment. There he is, actually, after his arrest, after all of this transpired. But he was able to get a hold of the corrections officer who was escorting him, get a hold of that officer's gun. According to police, he shot that officer, killed that corrections officer, then fled.

He led police then on a high-speed chase after carjacking a car and then, they finally got the spike strip down and he was able to pull over. Went into an Arby's restaurant, where he then shot someone, according to police, in the Arby's restaurant. That person is OK.

A lot more details we're getting on this story. We're watching this, expecting a press conference, as well, in a little while. And expecting to get a lot more whole information.

But a sad story, a strange story, even. And certainly, this gentleman has an interesting background. We hope to get into that a little more -- with you guys a little later.

LEMON: Interesting background. Very interesting to look at, with all that stuff on his face. T.J., thank you.

PHILLIPS: Now to California where a wildfires is raging near one of the most popular vacation spots in the country. More than 200 homes are already lost just south of Lake Tahoe. Hundreds of firefighters right now trying to protect more.

CNN's Ted Rowlands is in Meyers, California, to tell us how it all happened.

Ted, do they believe it was arson?

TED ROWLANDS, CNN CORRESPONDENT: Well, they believe that it is suspicious. And that would lead one to speculate that it most likely could be arson. They're not saying arson at this point. But calling it suspicious is a bad sign. They do have investigators now concentrating on the start point of this fire. And are looking into the exact cause.

The devastation is really horrific and heartbreaking when you look at the amount homes this fire ran through. And just look down the street here, the street that we're on. There's many other streets, just the exact same scenario. Home after home completely leveled by this fire.

People had stuck around here yesterday, trying to save their homes. We see a lot of garden hoses, actually out in the street, where people were just trying to hang on. They had to give up. Some people actually fled on foot. And you can see why, because the fire was so hot and being propelled by 35-plus mile-per-hour winds.

Over 220 structures, they believe, mostly homes, have been lost. It's just an unbelievable scene here, a very depressing scene.

We're on the back end of the fire. The front end is still raging. They have not been able to attack it thus far this morning by the air because of this smoke layer that is impeding the flights. They are hoping to get out the first helicopter drops at 10 a.m. Pacific Time. That was five minutes ago. We haven't heard the helicopters yet. But we are expecting that to start the very important fight against this fire.

Meanwhile, about 500 more homes are threatened at this hour. A thousands-plus residents have been evacuated. Many of those people have lost their homes. They're still waiting to see what has happened to their homes. They are awaiting patiently.

And meanwhile, we've talked to some residents here. Some of them, even city workers, saying that it is just devastating as word trickles throughout the community that people, so many people, have lost their homes.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is a small community. So names, you know, all of a sudden you're hearing that so-and-so lost their home and so-and-so lost their home. Some of the contractors that do work for us, we've heard a couple of them have lost their homes. It's -- it's going to hit hard, I think, once all the final accounting is done here.

The good news is, I guess, to my knowledge, no lives have been lost, which is absolutely amazing.

(END VIDEO CLIP)

ROWLANDS: And we're planning on talking with more people at the residents -- all the residents that have evacuated. We're going to be interviewing a lot of those folks, and we'll have those throughout the morning here.

Good news: Mother Nature is, as hard as it was last night with the winds -- the winds have dropped out. So Mother Nature actually helping out. And the fire officials and firefighters hoping to take advantage of that window of opportunity to get control of this fire, which right now is less than 5 percent contained -- Kyra.

PHILLIPS: All right. Ted Rowlands, appreciate it.

And wind and temperature will either fuel or foil the Tahoe wildfire. Our meteorologist, Reynolds Wolf, tracking conditions from the CNN weather center.

What do you think, Reynolds?

REYNOLDS WOLF, CNN METEOROLOGIST: I'll tell you, things are looking much better now than they were yesterday at this time. Let me -- let me set the stage and tell you what -- how it was yesterday afternoon.

Yesterday afternoon we had humidity that was right at 15 percent or lower, with winds mainly out the south-southeast and southwest. The dry one helped fan those flames. Now, today Mother Nature is helping out just a little bit, getting more of a northerly breeze. And with that, we're also getting a little bit more moisture back into the area, as well, in excess of 40 percent. And that will make a world of difference.

A couple of things to think about when it comes to these wildfires, though. The flames themselves can move up to 14 miles per hour. Just the flames. Not talking about the wind. But the flames moving from tree to tree and house to house. That's faster than most people can run.

That's one of the reasons why they try to get you to evacuate much sooner than you see some of the flames enforced. Before you deal with the heavy, heavy smoke.

But right now they have smoke all over much of the Sierra Nevada. And it is going to be a mess those firefighters are going to have to deal with. Again, as Ted mentioned moments ago, less than 5 percent contained. So it's going to be a big mess.

That's not the only troubled spot we're seeing. Take a look at this. We're going to go from Lake Tahoe, with our Google Earth. We're going to zoom out a little bit and show you a few other trouble spots.

Right now, with the humidity coming back to parts of the Sierra, that's good news. But we're going to have another critical fire danger area back into portions of Wyoming, as well as Idaho. Even a little sliver of Utah, where you have that humidity less than 15 percent and the breezy conditions.

We'll watch it for you. Back to you at the news desk.

PHILLIPS: All right, Reynolds. Appreciate it.

WOLF: You bet.

LEMON: Two arrests, plenty of unanswered questions. What happened to 26-year-old Jessie Davis in the last moments of her life and the life of her unborn baby?

The body of the Ohio woman, 9 months pregnant, was found in a national park over the weekend. Now two people are due in court shortly, one charged with murder, the other with obstructing justice.

Let's go straight to Canton, Ohio, and CNN's Jim Acosta.

What's the latest, Jim?

JIM ACOSTA, CNN CORRESPONDENT: Well, Don, both Bobby Cutts Jr. and Myisha Ferrell have court appearances set for this afternoon at 3 p.m. today. And in advance of those court appearances, authorities have filed some charging documents in this case. And from reading these documents there is some information that -- some new information that we can pass along. According to authorities, what they're stating in these charging documents is that Bobby Cutts Jr., they now believe, according to authorities, did kill Jessie Marie Davis at her home. They do not believe that she was abducted or kidnapped.

That's important, because all last week, they were being asked time and again -- time and again as to whether or not Jessie Davis was abducted from her home. And now this charging document, at least, answers the question as to what authorities believe happened on that night that Jessie disappeared.

They believe that Bobby Cutts Jr., the Canton police officer, the father of her 2-year-old son Blake, possibly the father of her unborn child, did kill Jessie Marie Davis at that home and also caused the death of her unborn baby.

Now, also in the court documents that were filed today were charging papers also for Myisha Ferrell. She is Cutts' associate. She's also been described as a former high school classmate. Her home was searched over the weekend, and then one day later, she was arrested by authorities.

According to these charging documents, she's now being accused of failing, basically, to tell investigators everything that she knows, falsifying information to authorities. Obstructing justice is the official charge.

That's important, because there have been many questions as to whether or not Bobby Cutts Jr. had assistance in moving the body from the home, the body of Jessie Marie Davis. And there was some speculation, some questions being asked as to whether Myisha Ferrell was a part of that. And according to these documents, at least the authorities are not saying so at this point -- Don.

LEMON: CNN's Jim Acosta. Thank you, Jim.

And we are waiting for Bobby Cutts and Myisha Ferrell to make initial court appearances in the Jessie Davis murder case. They are scheduled for 3 p.m. Eastern. CNN will bring you live coverage, of course.

PHILLIPS: The lobby of a bustling hotel blown to bits today in the heart of Baghdad. At least a dozen people are dead, including several Iraqi tribal leaders, meeting at the Mansour Hotel to talk about reconciliation.

Joining us live from Baghdad now, CNN's Hala Gorani.

Hala, tell us how it all went down.

HALA GORANI, CNN CORRESPONDENT: Well, it was a brash suicide attack that happened in the middle of the day at one of the most famous hotels of Baghdad.

(BEGIN VIDEOTAPE) GORANI (voice-over): The aftermath of a devastating suicide attack on a downtown Baghdad hotel. This is what is left of the Mansour lobby after a bomber managed to penetrate several layers of security and detonate himself in the crowd.

The hotel houses several western organizations and the Chinese embassy, but it seems the target this time was a conference of tribal leaders. At least seven of them were killed.

The significance: these are some of the sheikhs who recently allied themselves with American forces to combat al Qaeda in the western Iraqi province of Anbar.

Many fingers are now pointing at al Qaeda as being behind the attack.

Also among those killed, Raheem al-Maliki, an anchor for al- Iraqiya television, where there was a black band on the upper left of the screen in sign of mourning.

The questions now: how will this impact fighting in key areas of Iraq where Sunni tribal leaders have turned against al Qaeda with American help? And how did a suicide bomber manage to carry out such a bloody attack on what was thought to be one of the most secure buildings in Baghdad?

(END VIDEOTAPE)

GORANI: And it was a very violent day across Iraq, not just in Baghdad. In Mosul in the north all the way down to south of Baghdad, more than 40 people were killed in suicide attacks and mortar attacks, as well -- Kyra.

PHILLIPS: Hala, you talked about the security, specifically there at that hotel, whether it's Palestine or Mansour. What kind of security was taken over at that time? Was it private security for the networks, the embassy? Was it the hotel security? Do we know?

GORANI: Well, you have several cordons of security in all these buildings that house western organizations. There was also the China embassy in there, of course. So all these layers of security. First you have security staff that search your car. Then you're searched yourself.

So this is really the big question, is how did an individual wearing an explosive belt manage to penetrate all these layers of security? The questions being asked right now are, was this simply a security lapse? Or perhaps did this individual have inside help? All these questions are being asked.

And the incident, of course, is under investigation as we speak, Kyra.

PHILLIPS: Hala Gorani, live from Baghdad. Thanks, Hala.

LEMON: Well, they faced a $54 million lawsuit over what one man claims was the wrong pants. Those pants are in question right now. A judge throws that lawsuit out.

That's the family that was facing the lawsuit, the owners of Custom Cleaners. Why did the judge throw it out? And what happened next? We'll tell you, coming up in the CNN NEWSROOM.

A chilling image. A dire warning. A message from a BBC reporter kidnapped in Gaza.

PHILLIPS: Also, the limits of free speech at school. The Supreme Court rules that a one student's silly poster went one toke over the line.

LEMON: And Tinseltown's most colorful jailbird is about to fly free. It's almost springtime for you know who. We don't even have to say the name.

You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

LEMON: Possibly the most expensive pants in history. No slack for a man who tried to claim $54 million for a pair of missing pants.

A Washington judge has dismissed Roy Pearson's case against a dry cleaner. They dismissed it. Pearson himself, a judge -- believe that or not -- sued for millions in punitive damages. Well, today the judge threw that out.

And the Chungs, the owners of Custom Cleaners, spoke out just moments ago. It was translated by their daughter-in-law. Here's what they had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She's very, very pleased with the results today. The only thing is it's been such a hard past two years. It's been such a difficult time. All of that emotionally came back to her today. But she's very, very pleased with the results today.

(END VIDEO CLIP)

LEMON: Very pleased with the results. They faced a $54 million lawsuit, because the man claimed they returned to him the wrong pants. He wanted his lucky pants back. But a judge said no; threw it out today. Details to come in the CNN NEWSROOM.

PHILLIPS: Well, it's 1:16 now Eastern Time. Here's two more stories that we're working on for you in the CNN NEWSROOM.

Court appearances this afternoon in the case of Jessie Davis, the pregnant Ohio woman, whose body was found in a park over the weekend. Canton, Ohio, policeman Bobby Cutts is accused of killing Davis, who was apparently carrying his baby.

Cutts's former high school classmate is accused of obstructing justice. A dangerous Utah inmate back in custody. Police say that this man, Curtis Allgier, shot and killed a prison guard with the guard's own gun at a medical center. Police later caught him after a high- speed chase.

Now Sharm El-Sheikh, a Red Sea resort town in Egypt, today the site of an all-important Mideast summit. Leaders from Israel, Palestinian West Bank, Egypt and Jordan are searching for ways to support Palestinian President Mahmoud Abbas.

The four-way talks come less than two weeks after Hamas forces seized Gaza, forcing Abbas to form an emergency government in the West Bank.

Arab leaders are especially curious at Israeli plans to help bolster the Palestinian leader. They're also pressing for progress on the overall Middle East peace process. Israel is downplaying expectations.

Now for the first time the world gets word from a kidnapped Israeli soldier. It's an audiotape posted on a Hamas web site, apparently, from 20-year-old Gilad Shalit.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: (speaking foreign language)

(END AUDIO CLIP)

PHILLIPS: It aired on Israeli TV on the first anniversary of Shalit's capture by Hamas militants.

Shalit says he's disappointed in what he calls the lack of interest in his fate by the Israeli government. He also says his health is deteriorating. Hamas says it's willing to release him in exchange for Palestinian prisoners.

LEMON: Well, word now on another kidnapped journalist, frightened for his life, clad in explosives. A kidnapped BBC journalist is pleading with his would-be rescuers not to try. And our Ben Wedeman is in Jerusalem with details on that.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN CORRESPONDENT (voice-over): A chilling message from kidnapped BBC journalist Alan Johnston.

ALAN JOHNSTON, KIDNAPPED BBC JOURNALIST: As you can see, I've been dressed in what is an explosive belt, which the kidnappers say will be detonated if there's any attempts to storm this area.

WEDEMAN: This is the second video released by Johnston's captors, the shadowy Jeish al-Islam, or Army of Islam, which captured the Gaza-based reporter on March 12.

Since Hamas' takeover of Gaza earlier this month, Hamas leaders have expressed their desire to win Johnston's freedom and have issued thinly veiled threats that if talks fail, they may pursue other tactics.

JOHNSTON: Captors tell me that the very promising negotiations were ruined when the Hamas movement and the British government decided to press for a military solution to this kidnapping, and the situation is now very serious.

WEDEMAN: Hamas' patience does seem to be running out.

"The issue of the journalist must end, must end," declared Ismail Haniya, the dismissed Hamas prime minister who still runs Gaza. "We will never accept a continued kidnapping of the British journalist."

Following the broadcast of the latest video, the BBC issued the following statement: "It is very distressing for Alan's family and colleagues to see him being threatened in this way. We ask those holding Alan to avoid him being harmed by releasing him immediately."

After months of anarchy and factional fighting, calm is returning to Gaza. Hamas's executive force, the group's de facto militia, is policing Gaza's crowded and busy streets.

But Johnston's continued captivity means their grip on the strip is incomplete.

(on camera) Sources in Gaza tells CNN the kidnappers want guarantees they won't be punished, or worse, by Hamas if they free Johnston. Hamas leaders claim they've made those guarantees, but still the Army of Islam won't free him.

Ben Wedeman, CNN, Jerusalem.

(END VIDEOTAPE)

PHILLIPS: Kentucky crash. A charter bus slams into a bridge, bringing a family reunion to a tragic end. We'll tell you more right after the break.

(COMMERCIAL BREAK)

LEMON: Plenty of Americans apparently practice the old saying it's better to give than receive. And charitable causes of every stripe are the beneficiaries. That's what we are told, at least by Susan Lisovicz at the New York Stock Exchange, with a giving story.

Hi, Susan. Welcome back. I missed you.

SUSAN LISOVICZ, CNN CORRESPONDENT: I missed you, too. You did great work for the network, though, as you always do, whether it's on this continent or in Asia, Don.

LEMON: Thank you very much. But I missed you; you were out last week. Did you have a good time, I hope?

LISOVICZ: I did. I certainly did. I think vacation is an important aspect of my life. And so is charitable giving...

LEMON: Yes.

LISOVICZ: ... for myself and many others. Americans gave nearly $300 billion to charity in 2006, and that is a record. And that's especially heartwarming when we didn't have some major -- fortunately some major catastrophic event like a big hurricane like Katrina or tsunami, anything like that.

According to a newly released survey, that tops the '05 record set in the aftermath of hurricanes Rita and Katrina and the tsunami relief effort.

Benefiting this year were lots of religious organizations. A third of the money went to churches, mosques, and synagogues. Giving to the alma mater also popular with nearly 14 percent going toward educational donations.

And you know, there are separate surveys that show Americans give more than any other nation on earth when you compare it to the percentage of GDP. England is second. France is third. But the USA tops. Generally, that's the way it's been for a long time, Don.

LEMON: You know, Susan, I want to ask you about who's giving, the rich or the poor or the middle class. But I understand -- Kyra was telling me this. I had no idea, because I was away. You were giving, yourself, as well. And I'm not sure necessarily money but something more valuable sometimes, your time, on your vacation.

LISOVICZ: Yes. Yes.

LEMON: Tell us about that.

LISOVICZ: That was just at a camp that I've been doing the last several years, a camp for children with life-threatening illnesses. And I'm a counselor. I'm privileged to do it, and I always come out much better as a result. So it's a small portion of all the great riches I've had in my life, seriously.

LEMON: Susan, that is just fantastic. You have such a big heart. And we appreciate that.

LISOVICZ: We all do. We all do. It was great.

LEMON: Yes.

LISOVICZ: It was truly great. But let's go back to the matter at hand.

LEMON: Yes, who's giving, the rich? Is it the rich?

LISOVICZ: It's every -- this is also really nice, because giving comes just about from everyone. Three-quarters of the gifts came from individuals. The middle class played a huge role. Sixty-five percent of households making less than $100,000, making donations. This year's total also boosted by so-called mega gifts from people like Warren Buffet. You may recall Warren gave nearly $2 billion to the Gates Foundation last year alone, the first installment of a $30 billion pledge.

And speaking of Warren Buffet, he is auctioning another lunch for charity. The bidding starts online. It actually started yesterday at $25,000. Last year's bidding topped $620,000 for the winner and six of his or her friends at Smith and Wollensky's in New York.

If a whole bunch of us, like maybe 16,000 of us, pooled our money maybe we might have a shot. But log on to eBay to make a bid. The bidding ends on Friday.

(STOCK REPORT)

LISOVICZ: In the next hour of NEWSROOM, you've heard "don't cry over spilled milk." I'll tell you why you should cry over spilled milk. There's a good financial reason behind it.

In the meantime, it's great to have you back, Don. And I'll see you and Kyra in the next hour.

LEMON: And you know what? It's great to have you back. And again, we should all follow your lead, Susan. Thanks for what you do.

LISOVICZ: You do. You do.

LEMON: Yes.

LISOVICZ: You do, Don. So...

LEMON: All right. See you in a bit.

LISOVICZ: You got it.

PHILLIPS: Well, straight ahead, a pregnant woman's boyfriend is headed for an Ohio courtroom, charged with killing her and her unborn child. And he happens to be a cop. We're going to have the latest on police officer Bobby Cutts and his alleged role in the death of Jessie Davis, straight ahead from the CNN NEWSROOM.

(COMMERCIAL BREAK)

KYRA PHILLIPS, CNN ANCHOR, NEWSROOM: Her life, her relationships and her death all surrounded by questions right now. The body of 26- year-old Jessie Davis, nine months pregnant, was found in an Ohio national park over the weekend. Now we are waiting for her accused killer, a policeman, to appear in court. Chris Tye, CNN affiliate WKYC joins us now with the latest from Canton, Ohio. Hi Chris.

CHRIS TYE, WKYC REPORTER: Hi Kyra, that police officer is Bobby Cutts Jr. In about 20 minutes time he will be taken from the Stark County sheriff's office's jail, about 20 minutes away from here, for a 3:00 p.m. arraignment here at the courthouse in Canton. At this hour, in addition to his transport, another 3:00 arraignment for both him and Myisha Ferrell who is being charged with obstruction of justice. There is also a groundswell of community support happening, where people were showing up at the site where Jessie Davis' body was found in that Summit County woods just about an hour north of here.

There's also people meeting at her house, laying down wreaths and laying down flags and candles and messages of hope for her and her family. There are two sort of things going on here. The community has showed up en masse. Thousands, 1700 people last week were trying to find Jessie Davis and find answers are now turning from footwork to faith, trying to make sure this family knows this community is leaning on them and they are trying to help out any way they can.

PHILLIPS: Chris, what more do we know about the relationship between Cutts and Ferrell?

TYE: That's the real question here, just their relationship in the past. All we know for certain is that they went to high school together here in the area in the late 1990s. At this point what their relationship is remains unclear. Hopefully an investigation that has been slow going, these arraignments of these two individuals who appear at the center of it now, hopefully these arraignments will open up answers to figure out exactly what their role was and how they knew each other, what their role was in the disappearance of Jessie Davis if at all. So hopefully when lawyers and judges get together here in about 90 minutes, we'll have a little more into that. But as you know, this case has been slow going. And right now it is just more questions than answers Kyra.

PHILLIPS: Chris Tye from our affiliate WKYC, Chris, thanks.

DON LEMON, CNN ANCHOR, NEWSROOM: A family that had just gotten together for a reunion will gather again for a funeral Saturday. Their charter bus headed back to Alabama from Niagara Falls, New York, crashed overnight on interstate 65 in Kentucky. The impact threw a 71-year-old woman out of the bus and she was killed. Sixty six others, including several children, were also hurt. Police say it appears the bus driver fell asleep at the wheel. He's in critical condition.

The Supreme Court is laying down the law on student speech and religious charities. In a 5-4 decision the court ruled ordinary taxpayers cannot challenge a White House program that helps religious charities get a share of taxpayer money. In yet another 5-4 ruling, the high court loosened restrictions on so-called issue ads airing close to elections. Issue ads promote causes but not particular candidates at least in theory. Under the campaign financial format of 2002, they can be banned 60 days before a general election and 30 days before a primary. Today's ruling found those guidelines overly restrictive.

PHILLIPS: Then there's this ruling on a high school student who unfurled banner on a field trip, bong hits 4 Jesus. It didn't fly with his principal and five years later, the flak ended up in the highest court of the land. Today in a 5-4 ruling, the high court cited sided with the school and against the student's claims to free speech. CNN's Gary Nurenberg has more on this case. (BEGIN VIDEOTAPE)

GARY NURENBERG, CNN CORRESPONDENT (voice-over): As the symbolic torch was carried through Juneau, Alaska, on its way to the 2002 Olympics, Douglas public high school let students stand on city streets to watch it pass by. When it did, Douglas student Joe Frederick unfurled this banner, bong hits 4 Jesus.

VOICE OF JOE FREDERICK, COURTESY ACLU: I find it absurdly funny. I was not promoting drugs. I assumed most people would take it as a joke.

NURENBERG: His school principal didn't. She tore down the banner and suspended him. Frederick sued, arguing his constitutional rights were violated.

DOUGLAS MERTZ, ATTORNEY FOR STUDENT: He was a citizen exercising free speech in a public place, a public event.

NURENBERG: But the school argues --

UNIDENTIFIED MALE: It was a field trip where the school was able and did exercise its authority.

NURENBERG: In this case, to prevent kids from being exposed to arguably pro-drug messages according to its attorney, Kenneth Star.

UNIDENTIFIED MALE: The school should be able to put a stop to these kinds of pro-drug culture messages.

NURENBERG: They disagreed. As members of Students for a Sensible Drug Policy, they traveled to Washington to demonstrate for student speech rights.

UNIDENTIFIED MALE: They are learning at such a young age that freedom of speech is more a myth than a fact and that is sort of a dangerous precedent to set for our country.

NURENBERG: The court has long ruled schools do have rights to limit student speech but Frederick's lawyer Douglas Mertz says that they don't apply in this case.

MERTZ: The test is whether the exercise of free speech creates a substantial disruption of the educational process.

NURENBERG: But what is disruptive enough to limit free speech? These California kids demonstrated against immigration policy last year. Others oppose the war in Iraq. Can schools muzzle those views? Some Christian groups filed briefs here, arguing that too much school power could prevent kids from espousing religious views.

ED LAZARUS, AUTHOR, "CLOSED CHAMBERS": The legal rule that's establishing is going to cover a lot of different kinds of protests that may involve student messages that are much more profound and are really aimed at some of the most important disputes in society.

NURENBERG: Making bong hits 4 Jesus an important addition to first amendment law. Gary Nurenberg, CNN, Washington.

(END VIDEOTAPE)

LEMON: Mexico Governor Bill Richardson in the spotlight today. He says the best and most qualified candidate to lead is him for president. The Richardson profile ahead right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: A potentially fatal germ is apparently infecting more people than first thought. A new study says a drug resistant staph germ may be infecting as many as 5 percent as hospital and nursing home patients. That's about 10 times the rate some health officials had previously estimated. Staph infections cannot be treated with certain common antibiotics and can be associated with skin infections, blood infections, pneumonia and other illnesses as well. Typically it thrives in health care settings where people have open wounds.

It looks like Americans are doing a better job of managing diabetes. A new study by the lab test company Quest Diagnostics finds more than half of diabetics reach recommended targets for controlling blood sugar last year. In 2001, just over a third of people had their diabetes well controlled.

PHILLIPS: Goodwill gesture at the Mideast summit today in Egypt, leaders from Israel, Palestinian west bank, Egypt, and Jordan are meeting at a Red Sea resort to discuss the turmoil in the Middle East. Israel's prime minister gave support to Palestinian President Mahmoud Abbas with an order for a prisoner release. Our Atika Shubert is in (INAUDIBLE) Atika.

ATIKA SHUBERT, CNN CORRESPONDENT: This meeting was in order to show support for Palestinian President Mahmoud Abbas and in particular, Israeli Prime Minister Ehud Olmert came offering a number of incentives to show that Israel believes that President Abbas is a partner to peace, including the release of a number of Palestinian prisoners in Israeli jails. Here is what he said.

(BEGIN VIDEO CLIP)

EHUD OLMERT, ISRAEL PRIME MINISTER (THROUGH TRANSLATOR): Today I have decided today that I have the intention to present to the Israeli government in the first session, to the first upcoming session, to release 250 prisoners of Fatah members who have no Jewish blood on their hands and through their commitment not to go back, not to return to violence or to terror. I will do this because it is important for every Palestinian to understand that he is or she is ready to create -- to establish relations of peace and the reconciliation with us that we would have our hand extended. There's no other solution other than (INAUDIBLE).

(END VIDEO CLIP)

SHUBERT: All of this is to show is -- Israeli prime minister Olmert said to show Palestinians that there were other ways other than terror. Other incentives that he also included in that were the release of hundreds of millions of tax revenues that Israel had frozen and would now be transferring to the Palestinian authority. Also, easing the freedom of movement in the west bank for lifting of Israeli roadblocks in the west bank. For example, all of this again to show Palestinians that they had a choice that following the more moderate Fatah would be the better choice than following the Islamic militant group Hamas now in control of Gaza here.

PHILLIPS: Atika Shubert, thank you.

LEMON: It was a despicable plot. Thankfully it failed. NATO troops in Afghanistan say Taliban fighters put a suicide bomb vest on a six-year-old boy and tried to get him to detonate himself near coalition soldiers without knowing what he was doing. The boy didn't understand the instructions and asked officers on patrol to help him. NATO commanders say it shows the lengths militants are willing to go to and their lack of respect for all human life.

(BEGIN VIDEO CLIP)

VOICE OF MAJOR DONALD KORPI, ISAF SPOKESMAN: I had the opportunity to meet this little boy and his brother yesterday at a meeting right here in (INAUDIBLE). The little boy basically said that he -- couple men approached him, put a vest on him and told him to walk up to the first security force, police or ISAF personnel he found and touch the wires together. He didn't understand the instructions. And he went to the first official he saw which happened to be an Afghan army officer and asked the officer what he should do. We have seen the Taliban using younger and younger boys for suicide bombers and for their fighters. In (INAUDIBLE) province this last month, we came across a 14-15 years of age as a suicide bomber. This is by far the youngest child we have seen used and I think this is just a sign of their desperation.

(END VIDEO CLIP)

LEMON: It is not clear whether those Taliban fighters who recruited the young boy have been captured yet. If we hear anything more on the story, we will let you know.

PHILLIPS: It is now or never. Supporters of an immigration reform bill backed by the president puts hopes on a key Senate vote. We're going to have a preview straight ahead in the NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Go straight to the NEWSROOM, TJ Holmes, what are you working on for us?

TJ HOLMES, CNN CORRESPONDENT: We're working on this story, get some updates still on that story out of Utah where we have a corrections officer who was shot and killed according to police by that man who is an inmate who he was escorting to a medical facility. Now after he was taken to that medical facility for a medical appointment, some altercation ensued. He was able to get the correction officer's gun and shoot him in the head according to police now. And then he led police on a high-speed chase that ended up at an Arby's restaurant. Here is video you're seeing of him actually being apprehended at that Arby's restaurant, put into custody.

But now police are saying that someone in that Arby's restaurant was injured and not shot. There were earlier reports that someone had been shot inside that Arby's restaurant. There is the suspect again Curtis Allgier who has - you can see he's tatted up pretty well in the face there Kyra. He has a swastika, another tattoo that says skinhead. He is a known member of the Aryan brotherhood which is a white supremacist group. He was a one point also deemed public enemy number one in the state of Utah so he has quite a background, quite a history, quite an interesting one and interesting face you certainly can say safely, just by looking at that picture.

That is the man that police say took a corrections officer's gun and shot that corrections officer in the head and killed him, led police on a high-speed chase that ended up at an Arby's restaurant where one other person was injured. This has been a developing story with some interesting twists and turns and it'll sort of be an interesting character I think it's safe to say as well. I'm sure we're going to get more details, certainly a sad day for law out in Utah. Kyra

PHILLIPS: Sad character indeed, in addition, TJ Holmes, thanks.

If an immigration reform bill can clear the hurdles and sidestep the pitfalls it'll fact this week in the Senate, it will still face plenty more. At lease it won't be dead. CNN's Ed Henry has a preview for us.

(BEGIN VIDEOTAPE)

ED HENRY, CNN CORRESPONDENT (voice-over): This week is make or break on immigration reform in the Senate. So supporters of the bill rallied Sunday in Los Angeles. But opponents are also mobilizing to drive home a potent message of their own.

PATRICK BUCHANAN, IMMIGRATION REFORM OPPONENT: I think this is blanket amnesty for wholesale illegality and I think it will result in another invasion of the United States that's even greater than this one.

HENRY: President Bush is desperately trying to counter that argument in order to salvage a key legacy item.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This is not amnesty. There will be penalties for those who came out of the shadows. They pass a strict background check, pay a fine, hold a job, maintain a clean criminal record and eventually learn English and they will qualify for and maintain a visa.

HENRY: The problem is that too many of the president's fellow Republicans, even fellow Texans, are not buying it.

SEN. KAY BAILEY HUTCHISON (R) TEXAS: I don't like what's in it now. I think the amnesty, the cutoff after five years of the guest worker program I think is completely unworkable.

HENRY: Ironically Democrats are praising the president's approach, including a provision providing an immediate infusion of several billion dollars to secure the nation's borders.

SEN. RON WYDEN (D) OREGON: This new approach is going to provide about $4 billion for technology and it will provide additional money for fencing, so there will be a lot more in the area of border security.

HENRY: If the bill again fails to clear a procedural hurdle, Democrats anxious to rack up legislative victories will move on to other issues and then the calendar gets hijacked by the 2008 presidential campaign when an issue as divisive and emotional as immigration reform has no chance of passage.

SEN. TRENT LOTT (R) MINORITY WHIP: If we don't get it done in the Senate now, it will not be done in the Senate this year or next year and not before some time in 2009 when who knows will be president.

HENRY: In a sign it's do or die time for this legislation, the president will hold yet another immigration event on Tuesday. It will be working the phones lobbying the few lawmakers who are still on the fence and warning of the cost of doing nothing. Ed Henry, CNN, the White House.

(END VIDEOTAPE)

LEMON: Every Monday, CNN's "American Morning" talks with one of the presidential candidates to try to find something that tells you who that person is and why he or she wants to be president. Today's focus is New Mexico Governor Bill Richardson, a man with plenty of international experience and plenty of thought on how to stabilize the Middle East and Iraq.

(BEGIN VIDEO CLIP)

GOV. BILL RICHARDSON (D) PRESIDENTIAL CANDIDATE: I believe what needs to be the key here is a withdrawal of American troops with this very aggressive diplomatic plan led by the United States.

KIRAN CHETRY, CNN CORRESPONDENT: I just want to ask you a couple questions. Some of the Iraqis that we talked to say that the Americans are really the only ones they can trust to protect them or get them through some of these situations because of the sectarian violence. How would Syria and Iran help that situation when they clearly have agendas of their own as well?

RICHARDSON: Well, the first point I would make you is that 61 percent of the Iraqi people, these are certified polls, say it is OK to shoot at an American soldier, 72 percent of the Sunni and Shia population in Iraq are saying they want American troops out within a year. Syria and Iran, no country wants a civil war sectarian conflict, thousands of refugees spilling into the region, that would be the motivating factor to bring them in. In addition to that, an American withdrawal coupled with this structured diplomatic plan, an all-Muslim peacekeeping force basically you sell the argument that what is needed in the region is regional stability. And there's going to be a multiplicity of actors playing the part. Today we say we are not going to talk to Iran and Syria. Look at what's happening in the Israeli Palestinian matter. It is -- it is falling apart. Look what's happening in Iraq. We can't have Iran build nuclear weapons. How do you deal with that? Well do you deal with it by negotiating with them, by possibly putting diplomatic sanctions on them? So I believe the answer is diplomacy. It is negotiation. It's not threats and continuing the surge of troops. .

(END VIDEO CLIP)

LEMON: That was from CNN's "American Morning." One again, CNN is raising the bar on the presidential debate. On Monday, July 23rd, the Democratic candidates square off in a CNN youtube debate. Anderson Cooper hosts this first of its kind event, live and interactive on TV and also online. And you can see the Republican candidates debate on Monday, September 17th, only on your home for politics, CNN.

Got cash? The fund-raising deadline draws neigh for presidential contenders. Bill Schneider has got his eye on the bottom line straight ahead in the CNN NEWSROOM.

PHILLIPS: A 60th birthday celebrations for a car. Come on. This is just not any car. We're going to take you for a spin, straight ahead from CNN's NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Straight to Salt Lake City, Utah holding a news conference on that prison inmate that shot and killed a corrections officer with his own gun. Let's listen in.

UNIDENTIFIED POLICEMAN ... the highway patrol was, the department of corrections, West Valley City, those are the ones I know about.

QUESTION: (INAUDIBLE) who fired first and was the suspect firing at police or (INAUDIBLE)

UNIDENTIFIED POLICEMAN: Again, we're not sure of all those circumstances just yet. That's what's being looked at as we speak.

QUESTION: Can we come back to the scene here and were there any witnesses or just the victim and the suspect in the room? And what have you heard from other people who were witnesses who were in the vicinity?

UNIDENTIFIED POLICEMAN: I don't know anything about what occurred up here. I'd have to defer to chief Fullcomb (ph) for that.

QUESTION: (INAUDIBLE)

UNIDENTIFIED POLICEMAN: The policy of the Salt Lake City police department is we chase forcible felons and in this case TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxant.com