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American Morning

Craig Under Fire; People's Princess; Fed Speaks Today; Take Off Your Turban; Wrestlers Suspended

Aired August 31, 2007 - 06:00   ET

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

JOHN ROBERTS, CNN ANCHOR: Man to man.
(BEGIN VIDEO CLIP)

SEN. LARRY CRAIG, (R) IDAHO: I don't seek activity in bathrooms. I'm not going to fight you.

SGT. DAVE KARSNIA, MINNESOTA POLICE DEPT.: I know you're not going to fight me. But you're sitting here lying to a police officer.

(END VIDEO CLIP)

ROBERTS: Between the lines of Senator Larry Craig's arrest tape from a bathroom sting.

(BEGIN VIDEO CLIP)

CRAIG: I am not gay. I don't do these kind of things and . . .

KARSNIA: It doesn't matter. I don't care about sexual preference or anything like that.

CRAIG: I know you don't. You're out to enforce the law. But you shouldn't be out to entrap people either.

(END VIDEO CLIP)

ROBERTS: This morning, talk of his replacement already swirling.

And live from London. A memorial service honoring the life of Princess Diana, on this AMERICAN MORNING.

And good morning. Thanks very much for joining us. It is Friday, August the 31st. Summer almost over and a milestone today, Karl Rove's last day at the White House.

KIRAN CHETRY, CNN ANCHOR: Oh, it really is. All right. And tomorrow is September 1st, so we say good-bye to August today as well. We're so glad you're with us. I'm Kiran Chetry.

ROBERTS: And I'm John Roberts. Good morning.

CHETRY: And the pressure, by the way, is increasing on Larry Craig. The Idaho senator that was caught in a bathroom sting in a Minneapolis airport. Well now a third senator is saying that he would resign if he were in Craig's shoes. And today's "Washington Times" reports that possible replacements for Craig are already being floated.

And then there's the tape. It's a nine-minute long interrogation between Senator Craig and the arresting officer, David Karsnia. It gets a little testy.

(BEGIN VIDEO CLIP)

KARSNIA: All right. I guess I want to say, I'm just disappointed in you, sir. I just really am. I expect this from the guy that we get out of the hood. But, I mean, people vote for you.

CRAIG: Yes, they do.

KARSNIA: Unbelievable. Unbelievable.

CRAIG: And I'm a respectable person and I don't do these kinds of . . .

KARSNIA: And you're losing the respect right now, though.

(END VIDEO CLIP)

CHETRY: Well, there is just a snipped of it. CNN's Jessica Yellin is on Capitol Hill with more reaction this morning from the release of those tapes.

Good morning, Jessica.

JESSICA YELLIN, CNN CORRESPONDENT: Good morning, Kiran.

Well, several well placed GOP sources in both Idaho and Washington D.C., have told CNN that they expect that Craig is likely to announce he could be stepping down perhaps as early as today. Now when Craig's spokesperson was told about these comments, they did not directly dispute them. Instead, they said only that Senator Craig would have no announcement to make on Thursday -- yesterday.

Well, Senator Mitch McConnell, minority leader, has now weighed in. He's calling Craig's conduct unforgivable. And Senator John Ensign has said that if he were in Craig's shoes, he would resign. And he also said this scandal reflects poorly on the Republican Party.

Now the Republican governor of Idaho has been a long time friend of Senator Craigs. Earlier this week he said that he stands by Craig and his wife. But now he has this to say.

(BEGIN VIDEO CLIP)

GOV. BUTCH OTTER, (R) IDAHO: Nobody likes these kind of problems, because these kind of problems are -- you just can't get rid of and you can't get rid of with simpler explanations and it takes a long time and then you never really unring the bell. And the bell has been rung. And so as we go forward, I suspect there's going to have to be additional consideration by Larry and his family on where exactly they're going.

(END VIDEO CLIP)

YELLIN: Now, of course, that decision is in Larry Craig's hands. Does he want to give up more than two decades of service here in Washington, D.C. and will that happen today.

Kiran.

CHETRY: And, Jessica, you said at the beginning of the report, once again just to clarify, there were some sources who were saying that he could possibly step down today?

YELLIN: That is their expectation. These are from Republican sources both in Idaho and in Washington, D.C. But, of course, that's what they're hearing. It is up to Larry Craig. And we all know that when it's one person's decision, it's something like this, he'll weigh it carefully and we'll just have to wait and see what he decides.

CHETRY: Jessica Yellin reporting from Capitol Hill for us. Thanks.

Well, one of the names that "The Washington Times" is floating is a possible replacement for Senator Craig is U.S. Interior Secretary Dirk Kempthorne.

John.

ROBERTS: Also a former governor of Idaho.

Kind of a recall roundup to tell you about now. First, a warning to check your freezers for bad beef. Nine people got sick from E. Coli in Washington, Oregon and Idaho. Health officials are asking people to check for beef from Northwest's Finest. It was processed between July 19th and the 30th. It was sold in Safeway and other stores.

Another recall. Thousands of Crayon and paint sets made in China could contain lead. They were sold at Toys 'r' U. Here's the product that you would to look out for. It's Imaginarium's wooden coloring cases.

And China is issuing its own recall this morning. Scientists say 22 tons of potato chips recently shipped from the United States were contaminated with poisonous and dangerous substances, including high levels of acid.

Kiran.

CHETRY: Also new this morning, 19 freed South Korean hostages holding a tearful reunion today. The last seven of the hostages were set free last night. South Korea says it already had plans to pull troops out of Afghanistan and that in negotiations with the Taliban agreed to stick to that plan. Both sides are saying that no money changed hands.

Three senators and a congressman now safely out of Iraq, but there were some scary moments. Their military plane was fired on by rocket propelled grenades last night as they left Baghdad. Senator Mel Martinez on board said that the pilots were terrific as they took evasive measures. Also on board, Senators Richard Shelby, James Inhofe, as well as Congressman Bud Cramer.

A deadly high speed train wreck. It happened near Rio de Janeiro in Brazil. Police say that a commuter train that was carrying 800 some people rear-ended a slow-moving train that had four empty carriages on it. It was changing tracks at the time. At least eight people were killed, more than 100 others hurt. Rescuers say that it took hours to pull everyone from the wreckage. The rail company is saying it's launching an investigation and will compensate all of the victims.

John.

ROBERTS: New this morning.

At the White House, President Bush is expected to lay out a plan to help 80,000 families in danger of losing their homes in the mortgage crisis. The plan may allow more people to refinance their homes with federal insurance if they fall to far behind. We're going to get some details coming up from Ed Henry. He's at the White House this morning.

The Justice Department inspector general is looking into outgoing Attorney General Alberto Gonzales' sworn testimony to Congress to see if it was "intentionally false, misleading or inappropriate." Lawmakers from both parties have questioned his testimony about the wiretapping program and the firing of federal prosecutors. Gonzales announced his resignation on Monday. He's got just two more weeks left on the job.

The FBI spied on the widow of Dr. Martin Luther King. That's according to newly released federal documents. The records show that federal agents watched the late Coretta Scott King for four years after her husband's assassination in 1968. The agency says it was worried that Mrs. King might engage in subversive activity and try to tie the anti-Vietnam War movement to the civil rights movement. The FBI did finally chose her file saying after all that time it found nothing.

World Wrestling Entertainment says 10 of its stars are suspended after an investigation into steroid use. The penalties may be based on proof that wrestlers purchase performance enhancing drugs on the Internet. Possibly from the same place that supplied Chris Benoit. Investigators say the former champ had elevated levels of testosterone in his system when he strangled his wife, choked his son and then hanged himself. More suspensions could come today. We're live at WWE headquarters minutes from now on AMERICAN MORNING.

Kiran.

CHETRY: Time now to check in with our team of correspondents here on AMERICAN MORNING for some other stories that are new right now. You know, it was 10 years ago today that Princess Diana's sudden death stunned the world. Right now there is a huge crowd gathered outside of the Guard's Chapel in London. This is where a memorial service will begin in about an hour. CNN's Monita Rajpal is at Buckingham Palace following this for us this morning.

Hi, Monita.

MONITA RAJPAL, CNN CORRESPONDENT: Good morning to you, Kiran.

Just minutes ago, Queen Elizabeth II arrived here at Buckingham Palace, where she will meet with senior members of the royal family before they head over to Wellington Barracks and the Guard's Chapel for the private thanksgiving service for Diana. Some 500 guests have been invited by Diana's sons, Prince William and Prince Harry, to remember their mother, but also to give thanks for her life and for the service that she did for others.

Now, meanwhile, just minutes ago at Harrods Department Store, two minutes of silence was held in memory of Diana and of Dodi al Fayed, her companion, who also died 10 years ago today. You well know that Harrods is owned by Dodi's father, Mohamed al Fayed, who every year has held two minutes of silence at Harrods in memory of Diana and Dodi, and has long maintained that the accident that cause or the event that caused the death of Diana and Dodi was not accidental.

The service at Guard's Chapel, again, it is a private service at Guard's Chapel. It will take place at 7:00 a.m. Eastern Time and will last for an hour.

Kiran.

CHETRY: All right. Monita Rajpal, thank you so much.

Well, President Bush is expected to announce a plan to help mortgage holders this morning and Wall Street will also hear from the Fed chairman. Ali Velshi is here following all of that news for us.

Good morning, Ali.

ALI VELSHI, CNN CORRESPONDENT: Good morning, Kiran.

Somebody didn't check their date today. This is the Friday before Labor Day. Typically not a whole lot goes on in the markets. But the markets are going to be very closely tuned into two speeches today. At 10:00 a.m. Eastern Time we'll hear from Fed Chairman Ben Bernanke. He's in Jacksonville in Wyoming at a Fed conference on housing and monetary policy. Now that's a fun convention.

We are expecting to hear from Ben Bernanke what he thinks the Feds should do about housing policy. And what investors are going to be listening for is any clue that a rate cut might be coming in September. A real rate cut. The full interest rate.

And then an hour later we're going to hear from President Bush on his proposals about what to do about this economy. We'll be hearing more about that later on in the show. But the bottom line is there are two, major speeches about money that are going to be -- that is going to be what the markets are focused on this morning.

At the moment, Dow futures are showing a very strong opening. Perhaps more than 100 points right now on optimism that these two men will say something that might help America's housing and economy. We'll keep you posted on that through the course of the morning.

Kiran.

CHETRY: Sounds promising.

Ali Velshi, thanks so much.

CHETRY: Well, Rob Marciano is in the CNN Weather Center tracking extreme weather. And, once again, we're talking about the southeast part of the country that's dealing with hot.

Phoenix, is going to be day 30 of triple digit heat for them?

(WEATHER REPORT)

ROBERTS: Now to our terror watch this morning and some travelers who say they're being unfairly targeted by airport security officers. It's all because of turbans and strict, new guidelines about passengers and head coverings. Justice correspondent Kelly Arena is in our Washington bureau for us this morning.

Kelli, exactly what happened here?

KELLI ARENA, CNN CORRESPONDENT: Well, John, this is another case of the war on terror coming up against civil liberties. TSA has a new policy that says that individuals with head coverings may be subject to additional security screening, including a pat down search of the head coverings if the screen thinks that something may be hidden inside.

Now this has to do with all head coverings, John, whether they're religious or not. But leaders of Sikh community, who wear turbans, are denouncing this policy as a form of racial profiling.

Now the TSA director, Kip Hawley, says that he understands and he's outlined what he's going to do to show that he takes those concerns seriously. He' says that he's going to work towards a compromise that doesn't compromise security. That he'll implement more cultural awareness training.

The executive director of the Sikh coalition says that it's clear the TSA is really interested in reaching a workable solution and he says that there's a conference call that's scheduled for this Wednesday. But as of now, John, that policy remains in place.

ROBERTS: Has this Sikh community been targeted before, Kelli? And is it a matter of the fact that they have to scan the turbans? And I've seen them do it with the wands before. Or is it the way that they're asking people? The way that they're approaching . . . ARENA: Well, you know, it's a little bit of both, John. You know, some Sikh's have complained that they're asked to take their turbans off. They're not provided mirrors or a private place to put them back on.

But as far as whether they've been targeted or not, you know, many people think that Sikhs are Muslim and that they have been subject, you know, to hate crimes, for example. And community leaders are especially sensitive to any move that smells like racial profiling.

But, obviously they understand, security is an issue. It's just how you handle it. Making sure that people understand how important that turban is, the significance of it, and that it needs to be handled carefully.

ROBERTS: OK. Kelli Arena for us this morning from Washington. Kelli, thanks.

ARENA: You're welcome, John.

CHETRY: Well, they're larger than life and heroes to many, but is the world of wrestling fueled by something unnatural and dangerous? The latest doping scandal in the WWE and why it could get much bigger. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Coming up to 16 minutes after the hour and some of the best shots of the morning in our "Quick Hits" now.

Super spider webs are taking over a nature trail about 50 miles east of Dallas. Millions of spiders created this work of art. Scientists say that it's unusual for spiders to work together like this. Have they got something planned? We don't know.

The art of making coffee is reaching new heights. This is latte art. Take a look at this. They say that it started in Seattle and it spread here to New York. Baristas (ph) either draw in the foam with a stick or they manipulate the cut to form images without ever touching the foam.

And history unearthed by Hurricane Dean. Winds there on the category five hurricane uncovered two 100 year old cannons on the beach in Tulum, 80 miles south of Cancun, Mexico. The area was eyed (ph) for "Pirates of the Caribbean." So far, though, no buried treasure has turned up.

CHETRY: I wonder if that turned up because of the recent hurricane that hit through that area. Went through that area. Even moved some of the sand.

ROBERTS: Yes, it did. The winds were so high that it just scoured it all way and, boom, buried treasure of sorts.

CHETRY: Pretty cool. Well, more problems for professional wrestling this morning. The WWE suspended 10 popular wrestlers after an investigation into steroid use. CNN's Jim Acosta is live outside of WWE headquarters in Stanford, Connecticut.

So they're talking about these suspensions and they're calling it a violation of the wellness policy. Do we know more about what that means?

JIM ACOSTA, CNN CORRESPONDENT: Yes. Basically, Kiran, the wellness policy is the WWE's steroid drug testing policy. And according to the WWE, they suspended these wrestlers based on information they obtained by investigators with the district attorney's office in Albany. That office is looking into allegations of steroid use in the WWE and how professional wrestlers are obtaining their steroids and whether or not they're obtaining those drugs through online pharmacies.

Now there are a couple of published reports out there that are naming names. Naming the wrestlers that have been caught up in these suspensions. CNN cannot independently verify those names and so we're not making those names public at this time.

But one thing that these published reports does mention is the fact that these wrestlers apparently, allegedly, obtained these steroids through a pharmacy in Florida called Signature. That is also the pharmacy accused of supplying steroids to Chris Benoit. That is the professional wrestler who killed his wife, his son and himself in his Atlanta area home back in June.

And all of these problems, these steroid problems, these issues regarding Roids (ph) rage and the violence that can result as a byproduct of abusing steroids, all of these are combing to present the WWE with major public relations issues. That is why they're getting serious with this wellness policy. And yesterday the WWE released a statement saying that they're going to get even tougher and start naming names.

Here's the statement. It says, "it has been WWE's practice not to release the names of those who have been suspended. But notice has been sent to all WWE performers that names of anyone who is suspended under the wellness policy as of November 1 will be made public."

There are going to be more inquiries into this, including Congress. Congress is planning hearings on this steroid issue in the WWE coming up in September.

Kiran.

CHETRY: So it will be interesting to see if this is, you know, a change, a c-change, for the organization. A lot of people wonder, why do they need steroids in the sport where the outcomes are predetermined? I mean, it's sports entertainment.

ACOSTA: Exactly. And if you're a 15-year-old kid out there, you might want to cover your ears. But, yes, in baseball and football, performance enhancing drugs are for that purpose, so you can run faster and be stronger. In the WWE, it's all about getting big and being muscular. As we know, these events are choreographed and so forth.

So that is why the WWE is getting serious about this. It's not about the end result. It's mainly about not seeing their professional wrestlers showing up dead, drop dead in hotel rooms, as Eddie Guerrero did back in November of '05. And then this case that happened earlier this year with Chris Benoit. They have a serious public relations problem on their hands and this is all about getting to the bottom of it.

CHETRY: All right. Jim Acosta live for us outside of the WWE headquarters in Stanford, Connecticut. Thanks.

ROBERTS: Lose the ankle bracelet. Your "Quick Hits" now. A judge ruled that former NASA astronaut Lisa Nowak could take it off. Her attorney argued that it was uncomfortable, inconvenient and $400 a month. Nowak goes to trial next month for attempted kidnapping in the NASA love triangle case.

Democrats are giving back thousands in campaign contributions after they found out a big time political donor was a fugitive wanted for fraud. Norman Hsu had donated $260,000 to Democratic Party groups and federal candidates since 2004. The Clinton and Obama campaigns say they're both donating their funds from Hsu to charity. $23,000 from Hillary, $7,000 from Obama.

After a whole lot of speculation, a White House contender about to make it official. Get ready for a whole week of Fred Thompson coming up. The details are coming up next.

And what are the chances of Bill Clinton becoming Hillary's running mate? Her answer on late night TV. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

CHETRY: Busted by GPS topping your "Quick Hits" now. A man working for the New York school system reportedly might lose his job after his bosses used his GPS enabled cell phone to track his movements and prove that he was skipping out of work early. As many as 83 times over five months. Oops.

Also, tag, you're not it. At least in Colorado Springs. The Discovery Canton Elementary School has banned tag on the playground. They say that some kids apparently complained that they were being harassed and chased against their will. So now tag off limits.

What can kids do these days?

By the way, it's six times the fun -- maybe. Maybe we'll use the word fun loosely. This is a couple in Cincinnati. Over the weekend they welcomed their second set of triplets. No fertility drugs. They were all natural. Victoria and Tim Lasita said that they decided they wanted to have one more. Well now, she says, I guess I should have been more specific and said one more child, not one more set. So the odds, they say, are 64 million to one that this would happen two times, both naturally. The older triplets, by the way, turned four in December. And the younger ones, let's see, there's Casey, Caden, Carson. And they join their siblings, Jessica, Jillian and Brian. So how about that.

ROBERTS: Brian's the only odd person out there that's not from, you know, a letter family. Figure that one out.

Here's a look at a story coming up in our next half hour that you just can't miss, because this one is almost to incredible to believe. Police in Indianapolis tell the story of alleged alcohol abuse and extremely bad judgment by a parent.

CHETRY: Yes, very bad. A young mother in jail, accused of letting her five-year-old son drive her car home because she was too intoxicated to do it.

ROBERTS: You know, at least she had the good judgment to not drive herself, but . . .

CHETRY: Right. But, yes, to find a sober driver, the only one around was her five-year-old. Here's what the neighbor had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I approached the car and the windows came down and there is a toddler on his knees control the steering wheel.

(END VIDEO CLIP)

CHETRY: So how did it end? They weren't the only two in the car, by the way, which is even more upsetting. What's going to happen to her and how are the little boys doing? We're going to have a full report coming up when AMERICAN MORNING comes right back.

(COMMERCIAL BREAK)

KIRAN CHETRY, CNN NEWS ANCHOR: Beautiful shot this morning.

JOHN ROBERTS, CNN NEWS ANCHOR: Of New York City.

CHETRY: Yes, it is.

ROBERTS: Central park, a little foggy today.

CHETRY: What's the high going to be today, by the way? 85 degrees. Thank you. 71 right now. It's Friday. Feels like a Friday, doesn't it? It's August 31st. I'm Kiran Chetry. Glad you're with us.

ROBERTS: Good morning to you. I'm John Roberts.

New this morning, a suicide bomber blew himself up outside the gates to the airport in Kabul, Afghanistan, today. One Afghan soldier was killed and six other people were wounded. Flooding in northwest China is causing tremendous damage. Mudslides are collapsing houses and cutting off power and water also threatening China's pandas, an endangered species. It depends on the bamboo in that area. Apparently, it is all being washed away or drowned by the waters.

A potentially deadly chemical agent that was found in the United Nations building in New York is now in Maryland. That's where it will be disposed of. It had been taken from Iraq 11 years ago and was mistakenly being stored in the United Nations Weapons Inspection Office in a filing cabinet. U.S. and U.N. officials say the stuff wasn't dangerous but had to be removed by hazardous materials experts by the FBI and NYPD.

CHETRY: There is relief in Lansing, Michigan, this morning. The police have caught a serial killer, who killed five women in the last five weeks. Two victims were killed this week. Another woman survived an attack on Tuesday after her dog helped chase the man away. Police say she was key in tracking the suspect down. The man's name has not been released. He's expected to be charged later today. Police are also checking to see if he is connected to a series of assaults back in 2003.

This morning, same-sex marriage is legal in one of Iowa's 99 counties. A judge in Polk County, which includes part of the capital city of Des Moines just struck down the state's same-sex marriage ban. That ruling allows same-sex couples to apply for a marriage license, but maybe not for long because an appeal is already pending.

There's a big jackpot and it's up for grabs tonight. The Mega Millions Lotto jackpot is now at $330 million. There are 12 states that participate in the game. A single winner, who takes a lump sum payment, will get $190 million. Some of it goes to Uncle Sam, of course. If no one wins tonight, the jackpot rolls over and it will be even bigger next week.

ROBERTS: It has forced some families out of their homes and cost investors billions. Now for the first time, President Bush is expected to address the housing crisis.

CNN'S Ed Henry is live on the North Lawn for us this morning.

Ed, what exactly is the president announcing for us today?

ED HENRY, CNN NEWS CORRESPONDENT: Good morning, John. The key is the president wants to try to find ways the executive branch can help average consumers, but he did not want a federal bailout. So he'll direct the Treasury secretary, Henry Paulson, as well as the Housing secretary, Alphonso Jackson, to find ways to work with Fannie Mae and Freddy Mac to work with consumers to get consumers what they need to avoid defaulting on their mortgages.

He will also propose an expansion of the Federal Housing Authority's ability to ensure loans for people who can't make their payments. This could give them a lifeline from refinancing. He also wants to find a way to deal with FHA's limits on ensuring loans. Right now the limit is $362,000. That's the limit that they can ensure. That doesn't help very much in big states like New York and California where the cost of housing is so high. President Bush wants to raise that limit to about $50,000.

He wants to impose a short-term suspension of an IRS rule that zaps consumers with taxes when a lender writes off a mortgage debt. A whole kitchen sink of proposals. The president wants to send a signal to the American people that as this crisis deepens, he's trying to find ways to help-- John?

ROBERTS: Ed, signals are one thing but the reality can sometimes be different. What practical impact could this have on the housing market?

HENRY: That's the big thing. Some things, like suspending the IRS will, the short-term, that's something the executive branch can do through rule making. That can help in the short-term. Some of these broader issues, like changing the Federal Housing Authority's limits and whatnot, you'll need help from Congress. You'll have to pass the legislation and with dealing with the Democratic Congress, it's going to be a high hurdle to get these things through, number one, and even harder to get them through quickly -- John?

ROBERTS: It's important to have the appearance of doing something for President Bush. Ed thanks very much/

Republican sources in both Washington and Idaho are now telling CNN they expect Larry Craig to resign perhaps as early as today. Calls for his resignation grew louder and stronger after Minneapolis police released the audio tape of Craig's interview with the arresting officer.

Here is a quick exchange from that tape.

(BEGIN VIDEO CLIP)

POLICE: I don't care about sexual preference.

LARRY CRAIG, (R), IDAHO: I know you don't. You're out to enforce the law.

POLICE: Right.

CRAIG: But you shouldn't be out to entrap people, either.

POLICE: This isn't entrapment. All right.

(END VIDEO CLIP)

ROBERTS: Craig pleaded guilty to disorderly conduct after that interview on the 8th of this month. There are reports that the Republican National Committee could call for his resignation now.

As Senator John Ensign, who heads the Republican Senatorial Campaign Committee is also asking him to step down. CHETRY: Could this be Senator Craig's last day in office? CNN Political Analyst John Dickerson joins us live this morning in Washington.

Hey, John. Good to see you.

JOHN DICKERSON, CNN POLITICAL ANALYST: They have names for a Craig replacement already being circulated this morning. Even the Wall Street Journal's editorial page is saying that he should not run again. Will today be the last day for Senator Craig?

DICKERSON: It's certainly getting worse for him by the moment. He was initially defiant when he gave his press conference. He was clear he was going to fight this. But what's happened since then is that his party and his colleagues have all, one by one, come out against hem. Now he's not only fighting the charges, to which he's already pled guilty, but now he's fighting his colleagues one by one and that gets worse by the moment.

CHETRY: Let's listen to another chip from the exchange between the arresting officer and Senator Craig.

(BEGIN VIDEO CLIP)

CRAIG: OK.

POLICE: OK. So we'll start over. You're going to get out of here. You're going to have to pay a fine and that will bit. I don't call media. I don't do any of that type of crap.

(END VIDEO CLIP)

CHETRY: He said I don't call the media. How could a U.S. Senator plead guilty to a crime and no one find out about it?

DICKERSON: It seems impossible but that requires us to go into Craig's psyche, which is risky in any circumstance and perhaps spooky in this case. I think that, you know, what you hear from that tape it sounds like is Craig is pleading guilty because the alternative is to admit the behavior that the policeman is suggesting and it's sort of the better of two evils in that case for the Senator.

CHETRY: In the next clip, the police officer, Sergeant Karsnia, says what a lot of viewers have been saying. Let's listen.

(BEGIN VIDEO CLIP)

KARSNIA: I'm going to say I'm just disappointed in you, sir. I just really am. I expect this from the guy that we get out of the hood. I mean, people vote for you.

CRAIG: Yes, they do...

KARSNIA: Unbelievable. Unbelievable.

CRAIG: And I'm a respectable person and I don't do these kinds of --

(END VIDEO CLIP)

ROBERTS: So not to defend Senator Craig, but it seems like this bad behavior -- you know, he said people vote for you and we hear about bad behavior a lot, it seems, among our elected officials. How is it -- how is it tolerated and how is it that some are able to sort of slip through the cracks and go on serving and others, like Craig, seem to get really tripped up.

DICKERSON: There are a couple of things here. One, the policeman is talking about -- what he's talking about is he thinks the Senator is lying. And the policeman is quite careful to say, look, I'm not making any judgment about your behavior or your proclivities. And some of the public questions here, people have latched on to what they think Craig was actually doing there. So it's a little complicated.

But I think basically what happens is that people live private lives and getting caught in an airport sting, suddenly their private lives become front page news. I don't know if we can make any broad sweeping judgments about politics, though.

CHETRY: All right, John Dickerson, CNN political analyst with slate.com. Thank you.

DICKERSON: Thank you.

ROBERTS: Well, the stalling is over. Fred Thompson is ready to run. Thompson says he'll officially launch his candidacy on September 6th but he's already scheduling an appearance on "The Tonight Show" with Jay Leno. This ends a long, long, long flirtation with the idea of seeking the Republican nomination.

The Democratic front runner, Senator Hillary Rodham Clinton, made her seventh appearance on "The David Letterman Show" last night. Take a look.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, SHOW HOST: Is it true in college you were a Republican?

SEN. HILLARY CLINTON, (D), PRESIDENTIAL CANDIDATE: I was. Yeah, I was.

LETTERMAN: And what led you to the -- people are gasping.

CLINTON: I think somebody fainted in the third row.

(END VIDEO CLIP)

ROBERTS: She also read the top-ten list last night. Number three campaign promise was, we will finally have a president who doesn't mind pulling over and asking for directions. She was asked if Bill Clinton was asked to be her running mate and she said, no, he can't be but he looked into the possibility.

CHETRY: Bill and Hill in '08. A lot of people that would love, a lot of people who wouldn't.

ROBERTS: It will be them anyways, in a way, if she does become the nominee.

CHETRY: That's right. You always turn to your spouse, right, for advice. And in this case, she's got the former president.

ROBERTS: On his way back in there.

CHETRY: We're going to talk more about the airport. We talked about it yesterday, the waiting time, even if it's not a busy holiday. Now there is a less of a wait at airport security. Topping your "Quick Hits," hundreds of new x-ray machines will soon be installed in airports across the country. They're being tested right now at Reagan International in D.C. The high-powered machines photograph luggage from two different angles and could eventually eliminate the hassle of having to take your laptop out of your bag.

The Reverend Billy Graham is finally home after almost two week sin the hospital. The 88-year-old evangelist was admitted for intestinal bleeding. Doctors say they treated the problem. They say the bleeding was caused by a tangle of blood vessels in the lining of his colon.

Still to come, a pint-sized surprise in the driver's seat. Take a listen.

(BEGIN VIDEO CLIP)

WENDY BARRETT, WITNESS: I approached the car and the windows came down and there is a toddler on his knees controlling the steering wheel.

WESTIN SCHNOBRICH, 5-YEAR-OLD DRIVER: Mommy went to jail.

(END VIDEO CLIP)

CHETRY: Mommy went to jail. That's what he said. It's a really sad story. Boy, it ended well considering what could have happened. The mother accused of letting her little boy driving the car. Why she did it and the wild excuse she gave ahead on "AMERICAN MORNING."

(COMMERCIAL BREAK)

ROBERTS: A live picture from London this morning. Prince Harry and Prince William are just outside of the Guard's Chapel at the Wellington Barracks just around the corner from Buckingham Palace this morning for the special 10th anniversary memorial service for Princess Diana.

CHETRY: Wow, how much has changed. If she could see them now. William was only 15-years-old and Harry was only 12-years-old when their mother was killed in that underpass in Paris. Now they're both officers in the British army. They're going to be giving readings today. They're giving specially selected readings during the service at the chapel and there will be several hundred, about 500 high profile guests, many, many well wishers, as well, lining the streets to pay their respects. Ten years later, Diana is gone but not forgotten.

ROBERTS: It's amazing how quickly a decade goes by. That service, by the way, is scheduled to start at noon London time, 7:00 eastern. That's in about 16 minutes. We'll carry some of that live for you this morning.

One of the big questions, Elton John is going to be there, and will he perform again and will he perform "England's Rose"? He said he was going to sing that song once and so far he's stuck to that. We'll see if he does it again today.

Now a story that came into our newsroom over night raised everyone's eye brows right at the top of the what-were-they-thinking file.

CHETRY: A young mother is now in jail, accused of letting her 5- year-old son steer her car home because she was too drunk to drive.

Jennifer Carmack, from our affiliate WRTV, in Indianapolis has details.

(BEGIN VIDEOTAPE)

JENNIFER CARMACK, WRTV REPORTER (voice-over): Five-year-old Westin Schnobrich is getting ready to start school but says he already knows what he wants to be when he's older.

SCHNOBRICH: I want to be a race car driver when I grow up.

CARMACK: Saturday night, he tried that out behind the wheel of this car with his 3-year-old brother in the back seat and his mother, 24-year-old Holly Schnobrich, inside the passenger's seat.

(on camera): Were you driving the car?

SCHNOBRICH: Yeah.

CARMACK (voice-over): It all happened when Wendy Barrett watched this car speed around the corner and come to a screeching halt in front of her home.

BARRETT: So I approached the car and the window came down and there is a toddler on his knees controlling the steering wheel.

CARMACK: Barrett also says she also saw the boy's mother in the car, incoherent and visibly impaired.

BARRETT: I asked her, "Ma'am, are you okay? What's going on? Do you need some help? Is this your toddler? He's driving your car." And she admitted to yes, but he's a good driver.

CARMACK: Neighbors got Westin and 3-year-old Colton out of the car and took the keys until the police arrived.

PAT HARRINGTON, TIPPECANOE COUNTY PROSECUTOR: He told the officer he had a difficult time operating the vehicle because he could not reach the pedals.

CARMACK: According to the affidavit, Schnobrich says she had taken Percocet and vodka.

HARRINGTON: The mother informed the officer she took Percocet not for pain control or management of an injury, but when the children acted up.

BARRETT: She was so impaired and out of it that she didn't think anything was wrong.

CARMACK: Now the 24-year-old is behind bars, facing neglect and public intoxication charges.

SCHNOBRICH: Mommy went to jail.

ALAN SCHNOBRICH, GRANDFATHER: It was scary when we thought about it. It could happen because neither of them were restrained. They were both crawling around in the car.

CARMACK: The boys are with their grandfather.

SCHNOBRICH: At this point, she's staying in jail. We're not bailing her out again.

(END VIDEOTAPE)

ROBERTS: That was Jennifer Carmack of our affiliate WRTV in Indiapolis.

Just a stunning story. That shows how severely impaired your judgment can be when you've had too much to drink.

CHETRY: And unfortunately who has to suffer? The 5-year-old and the 3-year-old.

ROBERTS: Although when she said the 5-year-old is a good driver, it would suggest he's done it before.

CHETRY: He's done it before.

Well, 46 minutes past the hour now. Time to check in with Rob Marciano. We're tracking the triple-digit heat around the southwest today.

Hi, Rob.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Kiran.

(WEATHER REPORT)

One brief note on the drought conditions where we're seeing the heat. We have some drought there where we're seeing fire necessary Idaho and across the southeast. This is the area where we're suffering but a little bit of rain in the forecast for the southeast today. Kiran, back up to you.

CHETRY: Rob Marciano checking out the weather. Thanks.

Still ahead, Prince Harry and William arrive at a memorial service for their mother, Princess Diana, ten years after her death. We'll be there live ahead. There's a live picture right now as more gather. And you see Prince Harry and William talking outside. We're going to have much more. The service is set to get under way in about 12 minutes. We'll be back with more on "AMERICAN MORNING."

(COMMERCIAL BREAK)

CHETRY: There is a live look from London this morning. You see Prince Harry and William greeting people that are coming to pay respects and to remember their mother, Princess Diana, dying ten years ago today in Paris. Prince Harry and William, who were 15 and 12- year-old at the time, now grown men. I'm sure their mother would be proud if she was there with them.

In just a few minutes, this special service is going to be starting in London and the crowds, of course, have already gathered and many who were invited to take part already filing in.

Monita Rajpal is joining us from outside where the ceremony is taking place today.

Hi, Monita.

MONITA RAJPAL, CNN NEWS CORRESPONDENT: Hi, Kiran. There are crowds gather outside the gates of Buckingham Palace. Many are waiting for the queen, who will be leaving for the Guards Chapel in just a few minutes. She will be the last to arrive. That's the royal protocol, that the most senior members of the royal family will be the last to arrive at this event.

This service, organized by Princess Diana's sons, Prince William and Prince, is aimed to be a celebration, if you will, a thanksgiving of their mother's life and the service that she did for others.

There are those who are saying they want the service to be an upbeat mood. They've invited many of her friends and celebrities, including Sir Elton John as well as Mario Testino, the famed photographer, of course, members of Diana's family. Charles Spencer had already arrived just minutes ago with his six children as well as her sisters. Senior members of the royal family will be arriving momentarily, but many of her friends. Plus the charities that she supported and members of those charities are at this event. There are some 500 guests who have been invited by Prince William and Prince Harry.

This is a commemoration, a thanksgiving of probably the most iconic and most photographed woman of our time. The service is scheduled to begin in less than 10 minutes or so. It's scheduled to begin at around 7:00 a.m. eastern time, 12:00 here in London.

Some of the hymns that will be sung will be Princess Diana's favorites, specifically, "The One I Vow to Thee My Country." It was a hymn that they sang at her wedding at St. Paul's Cathedral and at her funeral, as well at West Minster Abbey. Of course the choice of the Guards Chapel. The whole idea was it was the princes' choice. It is their chapel as working servicemen, the household division of the army.

There you see them there greeting their guests. But the whole idea is that they wanted it to be a place for them to choose. Not St. Paul's Cathedral because it was the place where their mother married their father, but not Westminster Abbey which, again, was where her funeral was held. This is a way for them to really have a service for -- a way for them to say thank you to their mother but also for their friends, as well, her friends and supporters, to really remember the woman the way they want her to be remembered -- Kiran?

CHETRY: And it's interesting to note, Camilla Parker Bowles, Charles' new wife, will not be at the ceremony today.

RAJPAL: Absolutely. I think it was a position she was pretty much stuck between a rock and a hard place. If she attended, it would have been criticized, if she didn't attend, it would have been criticized, as well. Now, she was invited to join them at this event, but she decided, last minute, that it would not be a good idea. She said she wanted the focus to maintain and be for Diana and she thought that if she was, indeed, there that the focus would be taken away. I think a lot of people would be wondering -- if she was there, they would be watching her, watching her reaction, and not listening to the hymns and the prayers and the readings.

What we're seeing there, of course, the princes' father, Prince Charles, has just arrived. The Prince of Wales has just arrived to the service.

Ten years ago, it was him that flew to Paris moments after -- it was a Sunday morning service after the news that Diana had, indeed, died. He's the one that flew to Paris to bring her body back -- Kiran?

CHETRY: There we see a live look of Prince Charles and his sons, Prince William and Harry, standing outside the ceremony, getting set to start in about six minutes. And, of course, we're going to dip in here live throughout the morning.

Monita Rajpal, live outside of Buckingham Palace for us. Thanks.

ROBERTS: So you pay your $250 million and you expect to get something for it, right? David Beckham could be out for the season. That's topping your "Quick Hits" now. Soccer superstar Beckham's sprained right knee is expected to take six weeks to heal. By then, the Los Angeles Galaxy will have three matches left in their season.

CHETRY: They say he has made a huge impact. They have major league soccer sales of merchandise up 300 percent since the game. The Galaxy's own merchandise up 700 percent. But it will be interesting to see because they have the worst record right now in major league soccer.

ROBERTS: Maybe he'll just show up and wave.

Barnes & Noble is changing its mind about selling O.J. Simpson's fictional murder confession. Now the stores will carry "If I Did It." The book that Barnes & Noble said it would not stock in stores is now near the top of the best sellers list on its web site.

Home prices continue to fall. Is now the time to buy or could the market drop get lower down the road? Ali Velshi takes a closer look, next on "AMERICAN MORNING."

(COMMERCIAL BREAK)

CHETRY: Welcome back to "AMERICAN MORNING." The sounds of the strings playing as the memorial service for Princess Diana gets under way right now, ten years after her death. You know, everyone pretty much can remember where they were and what they were doing the day they heard the news Princess Diana was killed in Paris, a car crash. It included her friends and lover, Dodi al Fayed, as well as the driver, Henri Paul, under circumstances that even ten years later conspiracy theorists say are unclear.

All of that is not the focus today. It's remembering the people's princess, somebody who was very beloved around the world.

There we see -- oh, this is tape that just came in from a few moments ago. It's the...

ROBERTS: Queen.

CHETRY: Who -- who -- there is queen walking in, but right before that, that was the archbishop I think who is going to be seeing this for the Anglican Church there.

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