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Oil Prices: What They Affect; Pakistan in Crisis; Dry Town in Tennessee; Sen. Chuck Grassley Launches Inquiries Into Mega-Churches

Aired November 07, 2007 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Congress giveth and Congress taketh away. OK, it's not taking yet, but one senator is asking questions about tax-exempt statutes for mega ministries.
This hour we're going to get chapter and verse from an expert on church and state.

DON LEMON, CNN ANCHOR: And they're uttering prayers on Wall Street. This may be the reason stocks are in a nosedive. Look at that, down 247. Closer to a three-digit threshold.

Our Ali Velshi and also Stephanie Elam are watching the markets for us.

Hello, everyone. I'm Don Lemon, live at the CNN world headquarters in Atlanta.

PHILLIPS: And I'm Kyra Phillips.

You're live in the CNN NEWSROOM.

Police in Florida have captured the man who they say shot and killed a Broward County deputy. The Broward sheriff says that Michael Mazza was caught around noon at a Hollywood pawnshop. He was carrying the deputy's gun.

Mazza is believed to have shot and killed 76-year-old deputy Paul Rain (ph), who was taking Mazza to court. The sheriff says that Mazza may have had help since he was handcuffed and in the back of the van for his ride to the courthouse.

(BEGIN VIDEO CLIP)

SHERIFF AL LAMBERTI, BROWARD COUNTY, FLORIDA: Looking at the way this happened, you know, we have strong suspicions. We don't know for sure, but this could have been a preplanned event. And he may have had accomplices. We don't know for sure, but just the way it happened, there's a strong possibility, and we're looking at that right now.

(END VIDEO CLIP)

PHILLIPS: Mazza was on trial for bank robbery and eluding police. He was already serving two life terms for previous armed robberies.

LEMON: A safe return home, you saw it right here on CNN. Space shuttle Discovery gliding to a stop at Kennedy Space Center.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Main gear touchdown. Chute.

(END VIDEO CLIP)

LEMON: NASA swapped out a couple of astronauts during the shuttle's 15-day mission. Discovery delivered flight engineer Daniel Tani to the International Space Station and brought Clay Anderson back to Earth and back to gravity.

(BEGIN VIDEO CLIP)

LEROY CHIAO, FMR. NASA ASTRONAUT: He's already feeling pretty dizzy -- actually, everybody is, but Clay more so because he's been in space for six months. You know, even after a two-week shuttle flight you feel pretty dizzy.

Now, Clay's in what's called a recumbent seat. So he's actually kind of lying down. So it's not too bad.

He'll really feel it when they sit him up and especially when they stand him up. He'll feel very dizzy. It will be very difficult to walk. You know, it affects different people differently.

For me, I feel kind of like I have a flu. I feel out of it, a little warm, a little nauseous. And it takes a few days to get over that.

(END VIDEO CLIP)

LEMON: And next month NASA gets to do this all over again. Atlantis is set to blast off on December 6th.

PHILLIPS: Even if you don't own a car what is happening on this board is going to get you somehow. You can see the Dow is down more than 200 points. Maybe it's the cost of heating oil. Maybe it's the price of food or clothing. Everything that has to be moved, shipped, or delivered, well, it's all going to cost more.

Ali Velshi is somewhere out there on the floor at the New York Merc.

Ali, tell us what is going on all around you there, wherever you are.

ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Where's Ali? Where's Ali?

This is the New York Merc. This is where oil, gas, heating oil, also sorts of other commodities, and metals are traded.

These guys are actually having a good time. Although if you look at any of them very carefully, you might think they're having an argument about something. They are trading oil. This is the place that when you see oil trade to $100 a barrel, you are going to see these guys getting a little frantic about it.

It didn't happen today, by the way. As you know, Kyra, we were looking at $100, but then we have this oil supply report this morning which showed we hadn't actually dropped as much in terms of oil supplies in the U.S. as we might have thought.

So oil is trading about $95.20. That's the good news on the story.

Look at the Dow though. You were just talking about that, down way more than $200 on continued credit concerns.

Banks not certain about how bad their exposure to this whole subprime crisis was. And not knowing how to value that.

Also, General Motors -- we talked about this earlier -- writing down $39 billion in tax credits that they would have gotten because of previous losses. All of that is really taking a toll on the markets.

One other thing, the dollar continues to sink against other major currencies -- $2.08 or something like that to a pound, $1.45 or $1.46 to the euro. I mean, I can't even keep track of what these numbers are. Against the Canadian dollar, $1.08.

That is really hurting our buying power here in the United States. Every dollar you spend is worth less. It buys less product.

So there are a lot of things right now that are concerning investors. That's why you're seeing the Dow down.

This should be helping things -- $95 oil is actually good news on a day when we expected it to go to $100. But it's not helping right now -- Kyra.

PHILLIPS: It looks like a newsroom there. The guy on the phone, the guy with all -- what are they yelling? What are they -- tell us what they're -- give us an idea what they are talking about all around you there.

VELSHI: Well, what is happening is there are people -- they're selling -- in this case they're selling oil. So some of these guys have oil futures to sell. And then there are others who want to buy it. And they are negotiating -- the hand signals and yelling and all of that kind of thing.

And they make a deal, they write it down, and the trade gets executed. And that's when we see up the and down movement in the price of a barrel of crude in terms of oil futures.

That's what is going on over here. There's natural gas being traded here. There's heating oil. All of these things that we actually end up buying in the end are now being traded right here. So this is the heart of the action when it comes to this very valuable thing, oil, that plays into every part of our lives. This is where the decisions are being made about how much it costs.

PHILLIPS: Wow. You thought our life was stressful.

Ali Velshi, appreciate...

VELSHI: Yes. This is stressful.

PHILLIPS: Yes. All right. We'll keep checking in. Good to see you.

LEMON: He keeps playing well, he's going to buy some commodities or something.

PHILLIPS: He's going to put a bid in for us.

LEMON: All right.

Ali Velshi, thanks for that.

Let's talk about churches. We just did an interview just a short while ago with one of the megachurch owner -- or pastor. Six megachurches and their mega incomes under the microscope of the Senate Finance Committee.

Ranking Republican Charles Grassley says he wants to see the leaders of the churches and question which -- like all churches are exempt from paying taxes. Now, the ministers -- or the ledgers, I should say, he wants to see of those churches. The ministers targeted are so-called Christian prosperity preachers known for their lavish lifestyles.

(BEGIN VIDEO CLIP)

SEN. CHARLES GRASSLEY (R), IOWA: Bentleys, Rolls-Royces, corporate jets, $23,000 commodes in a multimillion-dollar home. You know, just think of a $23,000 marble commode. A lot of money going down the toilet, you can say.

(END VIDEO CLIP)

LEMON: We'll be talking live with Senator Grassley on his probe of megachurches, mega finances, next hour in the CNN NEWSROOM.

More arrests, more demonstrations in Pakistan, now in day five of a state of emergency.

CNN's Zain Verjee is standing by for us in Islamabad.

Zain, we hear now that Benazir Bhutto is asking for mass rallies this week.

ZAIN VERJEE, CNN STATE CORRESPONDENT: Yes, that's the first time she is coming out and saying that. She is calling for a mass rally on Friday.

Now, the government here is saying no way, that's not allowed. But the opposition is saying we're going to push ahead with it any way. That puts them on a direct collision course.

All the protests here really, Don, have mainly been involved with lawyers, and it's the police that's been cracking down mainly on the lawyers. So it's going to be important to see if anyone else joins them.

In the protests today, some students were out there on the streets. And that may gain momentum as the days and weeks continue. Benazir Bhutto herself could become a target, as she has been before.

In Islamabad, there were clashes between Benazir Bhutto's supporters, and police in Karachi, Lahore as well. People were out on the streets.

It's important, too, to note that it's not just the major cities where there are protests and crackdown, but it is also happening in other smaller cities and towns around Pakistan. It's just that it's difficult to get information on it -- Don.

LEMON: So Zain, you're there on the ground. Tell us what is going on in the street, the mood.

VERJEE: Well, we had a chance to talk to some people and, you know, people are really angry at what General Musharraf has done. They don't like it at all.

They are also really upset at the fact that the judiciary and the media, the two pillars of society, have been targeted. And what some people said to me is that it's just really ironic that he has targeted the liberals, the secular, progressive middle class, and that's detracting from the war on terror, and all the resources are being diverted.

We walked around a little bit today in a market in the capital city here in Islamabad. And there was a real sense that even though people were going about the ordinary days and it was business as usual, there was a distinct sense of underlying unease -- Don.

LEMON: All right. Thank you very much for that, Zain.

PHILLIPS: Well, the head of U.S. Central Command met with Pervez Musharraf one day before Pakistan's president declared emergency rule.

I spoke with Admiral Bill Fallon just a short time ago and asked him what he thinks is Pakistan's biggest challenge.

(BEGIN VIDEOTAPE)

ADM. WILLIAM J. FALLON, COMMANDER, U.S. CENTRAL COMMAND: My perception right now is that there is some unrest in the country, but generally pretty stable. The concerns are that if this continues, the folks in Pakistan are likely to become more unhappy with the way things are. And protests could spread and general unrest. And we are never quite sure how this goes.

But we have an awful lot of the things at stake here. We have a very intricate and extensive relationship with the Paks (ph). We rely on them for a lot of help, our operations in Afghanistan, and we have an awful lot of mutual activity regarding our actions against insurgents, the other terrorist groups that have been operating.

So one never knows what can happen in the situation without a constitution.

PHILLIPS: If indeed all chaos breaks out even worse than what is happening right now in Pakistan, that that will make a huge impact on terrorist activity not only in Pakistan but throughout the region. Are you concerned about that?

FALLON: Well, I think let's not get too carried away here. The situation right now is reasonably under control, it seems to be.

We're certainly concerned that this thing could become more unstable. But for now we're encouraging -- or my sense is -- and I'm not in the country, I'm up in central Asia, in Kazakhstan. But certainly my view would be to continue, which I know our government representatives are doing, urging the rapid return to regular constitutional process within the country, and an attempt to get this thing solved as soon as possible.

PHILLIPS: What about the nuclear threats? Are you concerned about that, Admiral?

FALLON: Well, I think the leaders within the country have a good appreciation of the gravity of that situation, and I have confidence that they will take the appropriate measure to safeguard those (INAUDIBLE).

(END VIDEOTAPE)

PHILLIPS: And one more interesting note. When I asked Admiral Fallon about Benazir Bhutto and her role as a leader of the Pakistani opposition, he simply said, "No comment."

One of the Jena Six in court today. Originally charged with attempted murder, but that's not what he pleaded to.

LEMON: Plus, dramatically dry. A Tennessee town struggles with radical water restrictions, and our Rusty Dornin is there -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: I'm Rusty Dornin in Orme, Tennessee, the town that ran out of water nearly four months ago.

How are people coping? We'll tell you coming up next on the NEWSROOM.

PHILLIPS: And forget gas and go. Try gas and Google. The Internet giant expanding its empire all the way to your local filling station.

We'll explain.

(COMMERCIAL BREAK)

LEMON: A bone-dry summer leads to a bone-dry fall as well. Lakes are drying up. Southern states are fighting for every drop of water, so when the well runs dry, what's a town to do?

CNN's Rusty Dornin is in Orme, Tennessee, right across the border from Georgia.

And Rusty, how are folks coping? They are having manpower, right?

DORNIN: Well, they're coping, but they ran out of water. They're coping by hauling water.

Now, this is a fire truck from Stevenson, Alabama, that is hauling water for the little town of Orme, Tennessee. They make about a dozen trips.

There's two trucks, each of them make about seven trips a piece. And they are hauling water up to the water tank here so that people will have water at some point during the day.

This has been a nightmare for the folks here for the past nearly four months. They have realized the luxury of a natural resource that they never realized.

(BEGIN VIDEOTAPE)

DORNIN (voice over): Dinner is on the stove, but Debbie Cash (ph) has much more urgent matters on her mind.

(on camera): How many buckets do you fill?

UNIDENTIFIED FEMALE: About six a day.

DORNIN: It's evening rush in Orme, Tennessee. Taps are on for just three hours. After that, they're dry until the same time tomorrow.

UNIDENTIFIED MALE: Fill a 55-gallon drum.

DORNIN: The town ran out of water on August 1st. The 145 residents who live here don't conserve water, they store (ph) it.

UNIDENTIFIED MALE: This is what's left of a 55-gallon...

DORNIN (on camera): Oh, that's since last night.

UNIDENTIFIED MALE: Yes.

DORNIN (voice over): The town's only water source, a sad reminder of days gone by.

Years ago we'd run -- it would run off these bluffs here, water would. I mean...

(CROSSTALK)

DORNIN (on camera): Like a big waterfall, right?

UNIDENTIFIED MALE: Like a big waterfall.

DORNIN (voice over): Now the only way to get water is to fire up the 1961 fire engine and head two miles to a fire hydrant in Alabama for water donated by another town. They hook up the hose, fill her up, and it's back to the town's tank to unload.

(on camera): So how many times do you have to make a round trip a day?

UNIDENTIFIED MALE: About seven times. About seven loads.

DORNIN (voice over): Back and forth err Monday, Wednesday and Friday, and the moment parched residents are waiting for.

Mayor Tony Reames cranks open the water valve. Down below, Debbie Cash (ph) waits.

(on camera): So nothing. You have nothing coming out.

UNIDENTIFIED FEMALE: Nothing. Nothing.

DORNIN: OK. And then how long does it take after he turns the water on for the water to come out of the faucets?

UNIDENTIFIED FEMALE: Just a few minutes.

DORNIN (voice over): Luckily there is help on the way. By Thanksgiving Orme should have water piped in. But Reames says his town's predicament is a warning to others.

MAYOR TONY REAMES, ORME, TENNESSEE: All these people that's on the river systems better take note, because once your mountain streams, your tributaries to the river starts drying up, the river ain't far behind.

DORNIN: Debbie Cash (ph) says never take the natural resources for granted.

UNIDENTIFIED FEMALE: Cherish the water you've got and be kind of careful with it because you never know if you're going to be out of water.

(END VIDEOTAPE)

DORNIN: Now you're looking at that 1961 truck that is in the firehouse here in Orme. It's not easy to always get drivers. Apparently the normal driver that goes on Wednesdays is a coal mining inspector and he has to testify in court.

Meantime, these are the wave of the future, of course, all these drought devices that a company, H20 Guard (ph) in Texas, is donating to every single household in Orme. We have got the low-flow showerheads, of course, and the toilet limiters that only use two gallons of water.

People in Atlanta take note. These are things that are going to be necessary to your kits to conserve water, of course, as the drought continues in the Southeast -- Don.

LEMON: Oh, Rusty. Oh, my gosh. Can you get a camera person to get a close-up on that? So those are -- they help conserve.

Can you push in on that?

DORNIN: Yes. Yes.

This will flush your tank with apparently only two gallons of water.

LEMON: OK.

DORNIN: And this is a limiter, of course, on your showerhead.

LEMON: OK.

DORNIN: And they are going to be of course -- you know, new housing and that sort of thing, they would be automatic. But folks are going to be pressured to want to conserve water in their own house to put these in.

LEMON: Yes, you're going to have to do it even if you don't want to. It's come down to that, right?

DORNIN: Right.

LEMON: Or we're going to be like those people carting our own water here in Atlanta.

DORNIN: Exactly, in Orme.

And you know what? Nobody is going to come to your house and give these to you for free like they are the folks in Orme.

LEMON: Yes.

DORNIN: But they deserve it. They have been out of water for three and a half months.

LEMON: Great job there, Rusty.

Thank you so much for the report.

(NEWSBREAK)

(COMMERCIAL BREAK)

(STOCK MARKET REPORT) LEMON: Well, you may be stressing over the sky-high price of oil and, therefore, gas. But Matt Willnor (ph), he's not doing it. He's a New Jersey teen who hardly needs any gas at all now that he's learned to love grease.

CNN's Miles O'Brien reports it's not a perfect solution, but it's pretty good.

(BEGIN VIDEOTAPE)

MILES O'BRIEN, CNN CORRESPONDENT (voice over): When Matt Willnor's (ph) Beetle needs some go juice, he make as beeline for his school's cafeteria, where he taps into a mother load of crude from food.

Matt has rigged up his car to run on used vegetable oil -- grease, that is, yellow gold, fast food tea.

UNIDENTIFIED MALE: I have two separate tanks. I have one for my petroleum, or biodiesel, whatever I put in there. And one here only for the veggie oil.

O'BRIEN: Matt starts his engine on diesel or biodiesel, runs it for about five minutes to warm up the grease, then hits a switch, and he's a rolling fry-o-lator, greased lightning.

So what is under the hood? Not much different.

UNIDENTIFIED MALE: The only real difference you can see is right here, you see my veggie oil filter.

O'BRIEN: Matt spent about a thousand bucks rigging up his car this way. But now he buys only eight gallons of gas a month.

So is this for everybody?

It's for somebody who is willing to get their hands a little dirty.

O'BRIEN: And be willing to void your warranty and skirt the law. Technically, running on grease is a violation of the Clean Air Act. But the EPA is looking the other way. After all, what comes out of Matt's tail pipe is cleaner, carbon neutral, and smells great, too.

UNIDENTIFIED MALE: Pretty much wherever I get my oil from, I have a little sense of the kind of oil I get it from.

O'BRIEN: And on this day, the grease bugs smell just like chicken.

Miles O'Brien, CNN, Englewood, New Jersey.

(END VIDEOTAPE)

PHILLIPS: One of the Jena Six in court today. The attempted murder charge against him reduced, but serious jail time is still a possibility.

We'll get a live update.

(COMMERCIAL BREAK)

PHILLIPS: I'm Kyra Phillips live at the CNN World Headquarters in Atlanta.

LEMON: I'm Don Lemon. You're in the CNN NEWSROOM.

PHILLIPS: It's a little tease there, faith and politics. That's what we're talking about.

LEMON: Yeah, absolutely. Like manna from heaven. Let's talk about that. Vast amounts of donated money flow into the so-called mega churches each and every week. And none of it, none of it, flows out in taxes. Today a half dozen of America's most popular ministries are under scrutiny by the Senate Finance Committee. Here's what's at issue, whether or not they deserve their tax exempt status. CNN's Congressional Correspondent Dana Bash reports.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Somebody is getting ready to get up, get up, get up in the name of Jesus.

DANA BASH, CNN CORRESPONDENT (voice over): Televangelist Paula White reaches millions of faithful from her 22,000 member Without Walls Church; one of the fastest growing churches in the country. She has been dubbed a prosperity preacher.

You're family is going to look different. You're finances are going to look different.

BASH: Telling followers the more they give, the more they will be blessed. Now White, and five other media-based ministries, are being investigated to alleged financial misconduct by the Republican Senator Charles Grassley.

SEN. CHARLES GRASSLEY (R), IOWA: I'm just interested in not the personality, not the preaching of these people, I'm only interested are the laws being followed.

BASH: He says he's following up on news reports and complaints to his office from whistle blowers about possible misuse of millions of dollars that go to tax exempt mega churches.

GRASSELEY: Bentleys, Rolls-Royces, corporate jets, $23,000 commodes in a multimillion dollar home. You know, just think of a $23,000 marble commode, a lot of money going down the toilet, you could say.

BASH: Federal law grants churches tax-exempt status and prohibits leaders from using donation to enrich themselves. But the law does not require churches to report how the money is spent. Grassley wrote the six televangelists asking for detailed information about their expenses, compensation, and amenities for executives. Ministries who responded to CNN insist they have done nothing wrong.

Creflo Dollar of World Changers Church said, "My life and my ministries have always been an open book and that won't change now."

"World Healing Center Church complies with the laws that govern church and nonprofit organizations and will continue to do so," said Pastor Benny Hinn.

GRASSELY: My interest as a public official is that we have tax exemption for charitable giving. We want to make sure that tax exemption isn't abused, because you as a middle income taxpayer are going to make up for abuse of somebody else.

(on camera): Grassley says doesn't know if churches are breaking any laws but says current tax law may need to be updated to require stricter rules and transparency on how donations to churches are spent. Dana Bash, CNN, Capitol Hill.

(END VIDEOTAPE)

PHILLIPS: One thing almost everyone can agree on this is a highly unusual inquiry. Charles Haynes is a senior scholar with the First Amendment Center in Washington, with some perspective into the taxing situation.

Charles, is this combining church and state, sort of entering into a constitutional gray area here?

CHARLES HAYNES, SR. SCHOLAR, FIRST AMENDMENT CENTER: Well, I think it's a little dangerous for a Senate committee to be looking into how religious groups spend their money. I think the IRS should be doing that. And I don't know why Senator Grassley didn't go to the IRS and say, you investigate this, confidentially. And then if there's something, then we'll make it public.

These people's reputations are on the line. I think if you have a Senate committee and investigating religious groups, it really raises the ante and raises questions about religious freedom and the First Amendment.

PHILLIPS: Do you think there's anything beneficial that can come out of the investigations? Because from what I understand, these ministries, these pastors, don't necessarily have to answer these questions that he wants them to answer.

HAYNES: Well, of course the government has every right to expect the people will uphold the law and these groups signed on to uphold the IRS regulations when they got tax exemption. So they do have to answer the questions to the IRS, and I think Senator Grassley 's questions are fine. How it's done, though, is very important because the government must keep an arm's length from these religious groups, not entangle itself with their affairs. Let's be honest about it. These ministries preach prosperity. And so their leaders look prosperous and their followers expect them to look prosperous. So, you know just because people might not like their theology, or like what they are teaching, doesn't necessarily mean they are breaking the law.

PHILLIPS: OK. But you're saying the IRS should be doing this. And that these individuals have to answer specific questions to the IRS, but Grassley sent letters -- he's the one that sent the letters to these media organizations, and he is saying by December 6 I would like you to answer questions concerning your expenses, executive compensation and amenities, including the use of fancy cars and private jets. So I guess I'm a little confused unless IRS demands this, they don't have to answer Senator Grassley , is that correct?

HAYNES: They probably will because the next step would be an IRS investigation or a Senate hearing. And I don't think these ministers want to be hauled before the Senate to be grilled on how they are using money. So I think they probably will answer them, because the power of the Senate is considerable. Whether or not this is the way it should be done is another question and I don't think it is.

After all, when churches get in trouble with the IRS, we hear about it after the IRS has shown that there's a real problem with it. That's appropriate because the reputation of these leaders is on the line.

PHILLIPS: Well, let's have a reality check about the IRS. I mean they -- the IRS takes on a lot of investigations and a lot of people talk about how they are able to skip through and avoid certain laws with regard to the IRS, because the IRS is so overwhelmed. Don't you think unless Senator Grassley stepped in and did something that this probably wouldn't have been an issue? Do you really think the IRS would go after the mega churches like Senator Grassley is?

HAYNES: Well, I don't think you step in by choosing six groups. I mean, out of many, many groups he chose these six to put in the public spotlight, to hurt their reputation. And I know many people don't like the groups, or may find they are offensive. That's not the issue.

It's not up to the government to decide which groups are good or bad, religiously. The government should be going -- what he should do is go to the IRS and say do you have the personnel, the finances, do you have the right regulations? That's where the problem is. If the IRS is overwhelmed, if that's the issue. And it probably is the issue because this is a country with thousands of religious groups, and it's probably very difficult to provide oversight.

PHILLIPS: Final question, Charles. Is there ever a time, by law, that these televangelists can have generous salaries, housing allowances and amenities like private jets and cars through church funds?

HAYNES: Oh, yes. I mean there are ways in which donors can, in fact, and the boards of these ministries can, in fact, compensate these ministers in ways that the rest of us might say are out of control. But under the law, they can. Now if it gets so excessive that the IRS feels as though it's violating the law, then IRS should intervene

But, you know, there are many religious groups in the country that have wealthy properties and you know compensate their leaders. So if we start down that road, I'm afraid there are lots of groups that are going to be targeted in the future.

PHILLIPS: Interesting. So a lot of it just comes down to the morale compass of the pastor. Does that pastor take the money or not, and decide to drive a Hyundai or a Rolls-Royce.

HAYNES: Right, well, that's true. You know we expect these pastors to live up to the message they are preaching. In this case it's not the business of the government to decide whether it's a good message or a bad message. It's just -- are they obeying the law?

PHILLIPS: Charles Haynes, thanks for your perspective, very much.

HAYNES: Thank you.

PHILLIPS: We're also going to be talking live with Senator Charles Grassley on his probe of mega church finances. He's going to join us in the 3:00 Eastern hour, right here in the CNN NEWSROOM.

LEMON: One of the Jena 6 is in court today. The attempted murder charge against him reduced, but serious jail time is still -- is still a possibility. We'll get a live update.

(COMMERCIAL BREAK)

LEMON: Initially accused of attempted murder in the Jena 6 case, Bryant Purvis today pleaded not guilty to battery. Still he faces some serious jail time if convicted. CNN's Sean Callebs is live with the very latest details for us -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Good day, Don.

Indeed, he could face up to 22 years if convicted on all charges. But the charges were actually pared back today. He was facing attempted murder charges, the last of the so-called Jena 6 to face that charge. But that was reduced today by the district attorney in court.

Now, Purvis and his attorney, after court, said they had witnesses that would say that Purvis was 30 feet away from suspect Justin Barker, who allegedly was beaten by the Jena 6 back on December 4. The attorney went on to say the best of his knowledge no police record has been filed in connection with this alleged beating.

(BEGIN VIDEO CLIP)

DARRYL HICKMAN, BRYANT PURVIS' ATTORNEY: I ask for a copy of the initial police report, which I understand there isn't one. CALLEBS (on camera): There's no police report?

HICKMAN: No initial police report, no. There was never a one.

CALLEBS: There was no police report written then?

HICKMAN: As far as I know it hasn't been written yet. There is no initial police report on this case.

(END VIDEO CLIP)

CALLEBS: Now Brian Purvis also pleaded not guilty to the aggravated battery charges. He also said he had not been able to see Mychal Bell, who of course is still incarcerated in a juvenile facility right now. And he also talked about the massive demonstration that happened here on September 20. He had a message for all the people that participated in that.

(BEGIN VIDEO CLIP)

BRYANT PURVIS, JENA 6 DEFENDANT: There is racism still, out here in the world. You might not see it every day, but in some places it's still here. And you know, it's devastating to know that it still out. It's way back. It's the 21st century.

(END VIDEO CLIP)

CALLEBS: Now Bryant Purvis has since moved to Dallas and is attending school there. Mychal Bell, meanwhile, had a number of motions come up today. All of those were continued, except for one. There will be a court hearing here tomorrow in juvenile court, Don, to determine if double jeopardy could play a factor in Mychal Bell's case.

LEMON: Sean Callebs live for us in Jena, Louisiana. Appreciate your report, Sean.

PHILLIPS: Shock in Finland today. Police say an 18-year-old student gunned down the school's head mistress and seven students. He then shot himself in the head and was taken to the hospital, where he's in very critical condition.

The shooting happened at a school in the small city about 30 miles north of Helsinki. Police say the suspect apparently posted a warning about today's attack on YouTube. That same poster put up this video titled "Just Testing My Gun" and video from the 1999 Columbine High School massacre in the United States.

LEMON: Well, you've heard about people in all walks of life caught up in kiddie porn stings. Still, this story is quite shocking. The chief operating officer of the National Children's Museum has just been arrested. Robert Singer is a accused of using both his home and work computers to send pornographic images of children. He allegedly thought he was e-mailing a mom and her 12-year-old daughter. But, of course, it was a detective. Museum officials say they are horrified. They suspended Singer and barred him from the property. PHILLIPS: Former Illinois Governor George Ryan awoke as a free man this morning, but will go to sleep as a federal prisoner. The 73- year-old Ryan reported to a Wisconsin prison late this morning for the first night of a six and a half year sentence. Ryan lost his Supreme Court bid to remain free on bail, while he fights to overturn a racketeering and fraud conviction. A federal jury convicted Ryan of steering state contracts to friends for gifts, trips and cash. Ryan maintains his innocence.

LEMON: Restoring relationships, emphasizing common ground, the French President Nicolas Sarkozy on something of a good will tour through Washington this week. The conservative Sarkozy dined with President Bush last night and is visiting Mount Vernon, the home of George Washington today.

There they are. He and President Bush will address the press together at 3:00 Eastern. Live pictures from where they will address the press. You see the podium there. We'll bring that to you live right here in the CNN NEWSROOM.

As President Sarkozy addressed the joint meeting of Congress this morning he clearly sought a different dynamic than that of his predecessor, Jacques Chirac. Where Mr. Chirac publicly clashed with President Bush over the war in Iraq, Mr. Sarkozy underscored his appreciation for America's military past and present.

(BEGIN VIDEO CLIP)

NICOLAS SARKOZY, PRESIDENT, FRANCE (through translator): I want to express the deep sincere gratitude of the French people. I want to tell you something, something important, every time -- whenever an American soldier falls, somewhere in the world -- I think of what the American army did for France. I think of them, and I am sad as one is saddened to lose a member of one's family.

(END VIDEO CLIP)

LEMON: Again, we expect to hear from President Bush and Sarkozy at the top of the hour. We'll bring that to you live.

A.J. HAMMER, CNN ANCHOR, SHOWBIZ TONIGHT: I'm A.J. Hammer in New York.

A Hollywood strike has stars joining the writers in the picket lines, but it could send a lot of people to the unemployment line. I'll have the whole story next in the NEWSROOM.

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Pickets in Hollywood, the writers are striking, and the actors are trying to help people who put words in their mouth. "Showbiz Tonight" A.J. Hammer in New York with the latest strike updates.

What's going on, A.J.?

HAMMER: Well, Kyra, some big names are picking up those picket signs to support the Writers Guild of America. We're talking stars like Wanda Sykes and Julia Louis Dreyfus. They came out to walk with the writers on the second day of their strike. The WGA is fighting for a larger part of the profits made in new media, things like the Internet.

Well, the Screen Actors Guild is already predisposed to support the Writers Guild. But they are going to be negotiating their own contract next summer, so these guys have a real interest in the outcome of these particular negotiations.

And as the strike continues it's really taking a toll on some of the lower profile workers. There are lots of reports surfacing that employees on the late night shows will be facing layoffs in the next few weeks if an agreement is not reached. The list of shows shutting down grows by the day including shows like "The Office" and "Grey's Anatomy." So more and more people are going to be looking at pinks slips. We're talking about assistants, crew, hair and makeup artists, all losing their jobs, and just in time for the holiday season.

But there are no talks scheduled between the producers and the Writers Guild. So, this strike could easily continue into next year as the trade publication "Variety" has suggested. There is no end in sight for this thing, Kyra.

PHILLIPS: Well, that's not going to make for a good holiday season, but hopefully they can resolve everything before it gets too late, right?

HAMMER: We're hoping so, certainly in time for the holidays. There is another story out there about the holiday of Thanksgiving that caught our eye. I wanted to share this with you today. It's about rapper T.I., his real name id Clifford Harris, Jr.

Now you may remember he's under house arrest facing federal weapons charges. But he doesn't want that to stop him from having a big Thanksgiving. Now, he lives with his girlfriend, and their children, and he's not allowed to have more than three visitors at the home at a time. So, what has he done? Well, he's petitioned the federal court to allow more visitors to come to the house, so they can have a little turkey and stuffing on Thanksgiving Day. We'll have to wait and see exactly what the judge has to say about that.

T.I. was arrested after federal authorities said he was trying to buy machine guns and silencers in an Atlanta parking lot.

Coming up tonight on "Showbiz Tonight" Hollywood at war. With the biggest stars now taking sides in the writer's strike, and the dramatic new developments that are now shutting down TV's most watched shows. You are going to see the fireworks fly tonight on TV's most provocative entertainment news show. It's "Showbiz Tonight" we'll see you at 11:00 p.m. Eastern and Pacific on Headline Prime.

PHILLIPS: All right, sounds good. Thanks, A.J.

HAMMER: You got it. PHILLIPS: And a programming note. Duane Dog Chapman will appear on CNN's "Larry King Live" tonight. Hear what he has to say about his racially charged phone call, 9 Eastern.

LEMON: Brrr. Cold weather from the north to the south. Chad Myers fills us in on the temps, the falling, dropping temps.

Wave, Chad.

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

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PHILLIPS: Live pictures there, beautiful setting. George Washington's mansion there at Mount Vernon. The President of the United States, along with French President Nicolas Sarkozy, taking a tour actually of the property.

Don't know if they're going to have any freedom fries. I don't think George Washington liked those.

But anyway, they'll be talking about a renewed alliance and a friendship between the country and the U.S. And Sarkozy promising to stand firm with Washington, on the war in Afghanistan, and against Iran's nuclear program. We should hear details of that when they step up to the mikes. We'll take it live.

LEMON: The news keeps coming, of course, and we'll keep bringing it to you. You're watching CNN. And you're in the CNN NEWSROOM with this story.

Winter comes early to parts of the country. The good thing the snowplows are ready in Upstate New York. About five inches coated towns south of Buffalo. A perfect time to try out new snowsuits. Look at that kid. That was so much fun. To get back in shape, of course, snowball fights. Oh, nice little transition there, Scottie.

Tougher going on Michigan's Upper Peninsula, though. Up to a foot of snow fell around Marquette. I'm being told that was Matt. Thank you, Matt, for the nice snowflake transition.

No snow yet, but it's still a bit frosty here in the South. Our Chad Myers keeping a close eye on it -- Chad.

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