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Pacific Northwest Recovers from Flooding; Supreme Court Hears Case about Guantanamo Detainee Rights; Mystery Surrounds Wall Street Wonder's Death

Aired December 05, 2007 - 13:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: GITMO. No appeals, no reviews, no prospects for ever going home unless the U.S. military says so. It's legal, but is it the American way?
DON LEMON, CNN ANCHOR: The highest court in the land takes up the issue of enemy combatants and habeas corpus. It was a heated battle.

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.

LEMON: Reality hits after the storms. Homeowners get their first glimpse of muddy misery across parts of the Pacific Northwest.

CNN's Thelma Gutierrez is in soggy Burea (ph) in Washington, a suburb of Seattle. And Chad Myers is keeping watch in our severe weather center.

PHILLIPS: But first, we have to show you this amazing video of some the rescues that we've been talking about, families stranded by high water. And as you can see, some communities right there in western Washington can only be reached by helicopter.

The Coast Guard and National Guard have picked up about 300 people, six pets so far. Here's a young family in Chehalis that was whisked to safety.

Chad, we hear there's still flood warnings out there today, as well, right?

CHAD MYERS, CNN METEOROLOGIST: Absolutely. River flood warnings. Not so much flash flood warnings, but the rivers are still out of their banks.

This is what the live satellite looks like now. No real connection, no real rain in the Northwest. But what it looked like the other day was a completely different story. This thing was a fire hose, just blowing rainfall onto the Pacific Northwest coast. We call that a pineapple connection or a tropical connection, because the moisture is connected all the way down to an obviously very humid tropics.

Well, now it's finally over. But the cleanup, obviously, is not.

Thelma, what are you seeing today?

THELMA GUTIERREZ, CNN CORRESPONDENT: Chad, I can tell you that thousands of people are waking up to just this absolute mess out here in western Washington.

You take a look right behind me. This is exactly what we're talking about. All morning long, we've noticed city crews driving around the area. And basically, what they're doing is they're shoring up some of the roads here. They're putting big concrete cylinders to keep the mud from sliding down onto the roads.

If we pan over here, Tom, you can see an area where a piece of a person's backyard just literally fell down into the driveway. There was a car down there. It pushed that car right into a woman's living room. The woman was on the cell phone. She said that it sounded like a bomb going off. Now, fortunately, she was not hurt.

Five people, though, have been killed in this storm, including two hikers, who were buried in an avalanche. And right now, rescue crews are up in the mountains. They're searching for three snowboarders and also an 81-year-old man, who's believed to have fallen in a creek.

So, massive cleanup going on this morning, Chad.

MYERS: Yes. We talked about the Chehalis River yesterday. But what river -- what area now are you? Are you north, south of Seattle? Where are you?

GUTIERREZ: Actually, I'm in Burea (ph), which is right near the Seattle Airport. So we're not that far away. A lot of the flooding that we've heard about is south of Olympia. And we've been looking at pictures of Lewis County and the areas where you see those dramatic pictures of people moving about the area in canoes and having to be rescued by the Coast Guard by air.

But we're very close to Seattle. We're right near the airport. And yet you can see all the damage out here, especially right near the sound where you can look out on to the bluff. Many of these areas just completely slid down onto the road, causing massive problems out here.

There are 45 road closures, Chad, within Mason and Kitsap counties alone. And dozens of schools have been closed in the area, as well.

MYERS: Thelma, thank you. Stay safe out there, because that land probably isn't done moving all that much. So you don't want to be out down below some of that very steep structure there. Thank you.

And guys, it's been an ugly couple of days out there. It gets better from here. But you know, we may be talking about similar things, maybe some mudslides in Southern California for the weekend, as another storm goes to the south, not up here to the north. PHILLIPS: All right. Let's keep checking in with you and Thelma. Chad, thanks very much.

MYERS: You're welcome.

PHILLIPS: When weather becomes the news, you can count on CNN to bring it to you first-hand. If you see severe weather happening in your area, send us an I-Report. This helps us so much with our coverage. You can go to CNN.com, click on I-Report or type "ireport@CNN.com" right into cell phone. You can share your videos or your video with us.

LEMON: Well, they mow his lawn and they rake his leaves, and now Mitt Romney's lawn crew, believe it or not, is an issue in his campaign for president.

Romney says he's fired the company that landscapes his suburban Boston home, because it hires illegal immigrants. He learned about the workers from a report in "The Boston Globe" just days after his rival, Rudy Giuliani, used the YouTube/CNN debate to spotlight a previous problem with Romney's landscapers.

(BEGIN VIDEO CLIP)

RUDY GIULIANI (R), PRESIDENTIAL CANDIDATE: The illegal immigrants who were working at his mansion. So I would say he had sanctuary mansion, not just sanctuary city.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Are you suggesting, Mr. Mayor -- because I think it's really kind of offensive. You hear someone with a funny accent, you, as a homeowner, are supposed to go out there and say, "I want to see your papers?" Is that what you're suggesting?

(END VIDEO CLIP)

LEMON: Well, Romney says he gave the landscape company a second chance, because the firm promised to stop using illegal workers. Our Bill Schneider will have more on Romney's campaign right out the bottom of the hour.

And checking some of the other stories in today's political ticker, Mitt Romney knows New Hampshire, and it's paying off for him in a new poll. The former governor of neighboring Massachusetts has a 17-point lead in the new "Washington Post"/ABC News poll of likely Republican primary voters.

Romney received 37 percent. John McCain was second with 20 percent, and Rudy Giuliani had 16 percent. The other GOP candidates were in the single digits.

John Edwards led a course of Democratic presidential hopefuls who criticized Hillary Clinton for voting to label Iran's Revolutionary Guard a terrorist group. In an NPR radio-only debate yesterday, Edwards and Clinton clashed over the Senate vote, and Edwards tried to link Clinton to President Bush's anti-terror policies. (BEGIN VIDEO CLIP)

JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: Senator Clinton has said she agrees with George Bush, terminology that we're in a global war on terror.

SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: I understand politics, and I understand making outlandish political charges, but this really goes way too far.

(END VIDEO CLIP)

LEMON: Senator Clinton's opponents say her vote on the Iran resolution was especially misguided, given the new evidence that Iran stopped pursuing nuclear weapons several years ago.

Mike Huckabee was asked if he thought Mormonism is a cult, a view held by some evangelicals. But Huckabee refused yesterday to get into a theological debate.

His fellow Republican candidate, Mitt Romney, as you may know, belongs to the Mormon Church. Romney plans a speech tomorrow on what he calls the role of religion in America.

Huckabee, an ordained Baptist minister, said he's not going to evaluate other people's faiths.

If you want the most up-to-the-minute political news available anywhere, CNNPolitics.com is your one-stop shop. CNNPolitics.com, the Internet's premiere destination for political news.

PHILLIPS: It's a basic right guaranteed to every American: habeas corpus. And the 300-plus detainees at Guantanamo Bay want it, too. Their lawyers made the case this morning before the Supreme Court, and once again, the Bush administration is fighting back.

CNN's Jamie McIntyre sets up the case for us.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): Charles Swift is a former military attorney who vigorously defended a Yemeni man accused of being Osama bin Laden's bodyguard and driver.

CHARLES SWIFT, FORMER MILITARY DEFENSE ATTORNEY: They want to look their accusers in the face. They want to be able to say, "This is what I did." They want to have an opportunity to exonerate themselves.

MCINTYRE: But the Bush administration argues that the more than 300 detainees held in Guantanamo are enemy combatants, whose rights are adequately protected by the Military Commissions Act passed by Congress last year.

DAVID RIVKIN, FORMER JUSTICE DEPARTMENT LAWYER: Frankly, the detainees, under MCA, have more due process than any captured enemy combatant, lawful, unlawful, ever had in any war in human history, including anywhere in which the United States was a party.

MCINTYRE: But attorneys bringing the case before the Supreme Court say the fate of their clients lies in the hands of military officials in a process that does not allow prisoners to have their lawyers present or lay out their own evidence.

(END VIDEOTAPE)

PHILLIPS: And Jamie joins us now.

And Jamie, you were in court today. It was quite a sparring match, wasn't it?

MCINTYRE: That's quite right, Kyra. Quite a dramatic scene on a snowy day in Washington, both inside and outside the court.

Outside, demonstrators were dressed in orange jump suits, evocative of the detainees at Guantanamo, to demonstrate the fact that many have been there as long as six years without any ability to challenge their detainment in court. And that's what this case is all about.

Inside the courtroom, things really got heated when Justice Stephen Breyer picked up on that theme and really posed a question to the lawyer representing the government that was very similar to the plight of one of the plaintiffs in the case.

Hear how he played out the case to U.S. solicitor-general, Paul Clemente.

(BEGIN VIDEO CLIP)

STEPHEN G. BREYER, SUPREME COURT JUSTICE: What you want to say is, "Judge, I don't care how good those procedures are. I'm from Bosnia. I've been here six years. The Constitution of the United States does not give anyone the right to hold me six years in Guantanamo without either charging me or releasing me, in the absence of some special procedure in Congress for preventive detention."

That's the argument I want to make. I don't see anything in this CSRT provision that permits me to make that argument. So I'm asking you, where can you make that argument?

PAUL CLEMENTE, U.S. SOLICITOR GENERAL: I'm not sure that he can make that argument.

BREYER: Exactly.

CLEMENTE: Justice Breyer. I'm not...

BREYER: How does this become an equivalent to habeas, since that happens to be the argument that a large number of these 305 people would like to make?

(END VIDEO CLIP) MCINTYRE: So, Solicitor General Paul Clemente argued that the Detainee Detention Act provides an adequate substitute for the writ of habeas corpus, which is that constitutional right guaranteed to all Americans to be able to challenge their detainment.

It's a very interesting case. It appeared that there was some sympathy, at least among a number of the judges, for the plaintiffs' plight, but also some indication that perhaps they didn't see the legal basis for extending that right to people who are not U.S. citizens, not held on U.S. soil.

This could be a landmark decision, Kyra. Or, it could be something a lot less. It could be the court just sends it back to a lower court and tells them to address this question more directly.

PHILLIPS: And of course, we'll follow the legal side of it. But bottom line, Jamie, there are men that are being detained there that were involved with 9/11, that are hard-core insurgent types, that are completely anti-American and want to destroy America if they had a chance to do so.

MCINTYRE: That's right. And the lawyer for the plaintiffs acknowledged that. He said, "Look, if you had a fair hearing where people could present evidence, you might that find many of these people should be detained."

But the point he was making is that there are cases of detainees who are accused of, say, associating with al Qaeda, who don't know the basis for that charge, who can't challenge it, who can't provide any -- any evidence of that.

And cited an example in court of a case where, once somebody found out who they were being accused of associating with, they were able to determine it was all a big mistake. But he made the point that, had there not been a proceeding -- this took place in Germany -- they would have never been able to get that.

So that's what they're arguing for, their day in court, not necessarily the fact that they wouldn't be detained.

PHILLIPS: Well, that's a point well made. Because we have interviewed detainees that have been released after lack of evidence and association that was incorrect.

Jamie, we'll keep tracking it. It's complex. But thanks for hammering it out for us. Jamie McIntyre.

LEMON: The storm has passed, but the misery certainly remains. A wet and muddy mess in the Pacific Northwest. Now some people are wondering whether they have anything left.

PHILLIPS: Your baby's formula -- formula, rather -- is it a recipe for sickness? We're going to tell you what may be lurking inside some of it.

LEMON: Well, this time, the cops didn't say freeze. They said "push!" You can imagine the boys in blue on the baby beat.

You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Fifteen past the hour. Three of the stories we're working on for you right here in the CNN NEWSROOM.

The search for Stacy Peterson takes to the water. Divers and boats are checking the Illinois-Michigan Canal right now for the missing wife and mother. Police, meantime, have executed a third search warrant, this one focused on husband Drew Peterson's cars. Peterson is a former Illinois cop.

Helping families save their homes. House lawmakers take up the issue in hearings this afternoon as they look for ways to stop the surge in mortgage foreclosures.

And flood warnings still in effect in the Pacific Northwest, even though some of the waters are starting to recede. Some homeowners who fled to higher ground are getting their first look at the damage and muddy mess left back to back -- by back-to-back storms.

PHILLIPS: A mover and shaker on Wall Street turns up dead in his own pool in Florida. That sentence alone could launch a novel, but when it comes to the fast life and mysterious death of Seth Tobias, you ain't heard nothing yet. You're about to now.

Here's CNN's John Zarrella.

(BEGIN VIDEOTAPE)

SETH TOBIAS, DIED IN SWIMMING POOL: Sell 10,000 more (ph) on 34.25...

JOHN ZARRELLA, CNN CORRESPONDENT: Seth Tobias had it all. But there was one thing his money could not buy.

UNIDENTIFIED FEMALE: I need you to see if he is breathing or not.

FILOMENA TOBIAS, WIFE: He's not breathing! I told you that. Please, send somebody. Please!

ZARRELLA: A Wall Street wunderkind at just 44, Tobias was running his own hedge fund. He also became a frequent financial analyst on TV.

TOBIAS: The market has actually had a very big decline.

ZARRELLA: Off camera, Tobias was living it up, buying this lavish estate near tony West Palm Beach.

A couple of years ago, Tobias married a woman named Filomena. In no time, the couple became a fixture in Florida's society world. (on camera) But according to "The New York Times," the couple also did something else together. They enjoyed going to a local gay club. And it was at Cupid's where, according to the "Times," Tobias allegedly developed a liking for a mysterious man who called himself Tiger, a gay dancer with tiger-like tattoos covering his body.

(voice-over) Over time, Tobias' relationship with his wife turned sour. He filed for divorce in 2006. But they were still living together last September, when Filomena says she came home and found him floating face down in the pool. She says she then dragged him out, before making this 911 call.

F. TOBIAS: Please, just send me somebody.

UNIDENTIFIED FEMALE: Ma'am, where is he?

F. TOBIAS: He's outside of the pool. Please, just send me somebody.

UNIDENTIFIED FEMALE: OK. I have help on the way. What is your name?

F. TOBIAS: I'm his wife, Filomena.

UNIDENTIFIED FEMALE: I need you to see if he is breathing or not.

F. TOBIAS: He's not breathing! I told you that. Please, send somebody. Please. I don't know what's wrong with him.

ZARRELLA: Police responded and found his body. But Filomena refused to let police in the house, according to "The New York Times" and local news reports.

Court TV's Jami Floyd says that's perfectly legal.

JAMI FLOYD, COURT TV: Jurors are going to say, "Look, if you've got nothing to hide, you let the police in."

The defense attorneys, and I'm one of those, we're very cynical. We don't trust the police, and we know that, as a matter of constitutional law, you do not have to talk to the police and you do not have to grant them access to your property.

ZARRELLA: How did he die? Police are still waiting for the answer.

SERGEANT SCOTT PASCARELLA, JUPITER, FLORIDA, POLICE: As of today, our case status has not changed. Still a death investigation and awaiting toxicology results from the medical examiner's office.

ZARRELLA: But Tobias's brothers, in legal documents filed in litigation over Tobias' $25 million estate, say Filomena drugged Tobias, then lured him into the pool with a promise of sex with Tiger.

Filomena denies the allegations. Her lawyer tells CNN there is no validity to these claims, and the facts will bear that out.

No criminal charges have been filed. Police say it's still an open investigation, and Mrs. Tobias' attorneys told CNN there would be no comment during the ongoing litigation over the estate.

This mystery is only deepening. Documents from an unrelated case show Mrs. Tobias paid more than $9,000 to have the pool drained and resurfaced just days after her husband's death.

FLOYD: Whatever happened here, Seth Tobias was living fast and furiously with all that money, and it didn't save him. He's 44 years old, and he can't take it with him.

ZARRELLA: John Zarrella, CNN, Miami.

(END VIDEOTAPE)

LEMON: Washington Governor Chris Gregoire has seen the floodings for herself. How bad is it? She joins us in the NEWSROOM.

(COMMERCIAL BREAK)

LEMON: A new report is raising hopes the Federal Reserve will consider a half point interest rate cut at its December 11 meeting. Stephanie Elam is on the floor of the New York Stock Exchange with the very latest on this.

Hello, Stephanie.

(STOCK REPORT)

ELAM: Next time we chat, Don, we'll take a look at boarding a flight. Most of us need one thing in hand: our paper ticket to get on the plane. Well, there's one airline trying to do something about that whole paper part of it. And we're going to tell you about it, and how they plan on doing this the next time we chat.

Back to you, Don and Kyra.

LEMON: All right, Stephanie, thank you.

ELAM: Yes.

PHILLIPS: Presidential race is getting serious. Issues like Iran, Iraq, the budget and Mitt Romney's landscapers? That's right. How one candidate's lawn crew became part of the debate in the race for the White House.

(COMMERCIAL BREAK)

LEMON: It is making news around the world. But there is no bigger headline in Iran than the American report that confirms Tehran has stopped what Washington believes is a pursuit of a nuclear weapon. Think that changes the opinion of America in Iran? Think again.

CNN's Aneesh Raman is there. (BEGIN VIDEOTAPE)

ANEESH RAMAN, CNN CORRESPONDENT (voice-over): It's an old Iranian refrain heard time and again over the past two years, that the Islamic republic is pursuing peaceful nuclear energy. But now a twist -- the U.S. intelligence community agrees. Forty-year-old Majed (ph) had just read the news.

UNIDENTIFIED MALE (through translator): It made me feel American politicians who is want to run the world are betraying everyone. People to people in each country we have no problems with each other.

RAMAN: Iranians, almost as a whole have been steadfast in support of their right to nuclear energy, even as tensions and sanctions have ratcheted up over the past two years.

(on camera): There is in Tehran is clear sense of vindication, and while world is still getting out, news of the report is a headline of virtually every major newspaper.

(voice-over): To make sure nobody misses the point, Iran's president, Mahmoud Ahmadinejad, in his first comments on the subject touted the report of victory, and for many here the fact that President Bush Tuesday showed no change in strategy only serves Ahmadinejad.

DR. SADEDGH ZIBAKALAM, TEHRAN UNIV.: George Bush could have been more conciliatory, which he wasn't. Now Ahmadinejad can turn to Iranian people, can turn to Arab people, can turn to the Muslim people, can turn to the world and say that, well, look, this man has something against us.

RAMAN: It's become a battle of dueling presidents, with their people stuck in between. And because of that, even after the latest bout, it prompted a rare call from 65-year-old Madi (ph) , that maybe Iran for the sake of itself should consider suspending its nuclear program.

UNIDENTIFIED MALE (through translator): We also have the right not to insist on some of our rights, and If Iranian politicians left enrichment alone, maybe the economic situation here would improve. The sanctions at least would end.

RAMAN: That is unlikely, but the hope here is that the world will now see Iran not through the eyes of George Bush, but through their own.

Aneesh Raman, CNN, Tehran.

(END VIDEOTAPE)

LEMON: Mitt Romney took time off from campaigning this week to fire his landscaper. Not because he wasn't happy with his yard, but because of the crew included illegal immigrants. It is the second time a landscape crew at Romney's home was found to include illegal workers. Just last week, Romney's rival, Rudy Giuliani, raised the issue in the CNN/YouTube debate.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: When the welfare reform that President Clinton brought forward said that they were going to end the sanctuary policy of New York City, the mayor actually brought a suit to maintain its sanctuary city status.

RUDY GIULIANI (R), PRESIDENTIAL CANDIDATE: It's unfortunate, but Mitt generally criticizes people in a situation where he has had farther worse record. For example, in his case, there were six sanctuary cities. He did nothing about them. There was even a sanctuary mansion. At his own home, illegal immigrants were being employed. So, I would say he had sanctuary mansion, not just sanctuary city.

(END VIDEO CLIP)

LEMON: Our senior political analyst, Bill Schneider, is standing by in Washington. Bill, a Boston landscaper now has one fewer yard to clean because of all of this. I'm tempted to ask you if this is a problem for Mitt Romney, but obviously, it is, and it's very embarrassing.

WILLIAM SCHNEIDER, CNN SR. POL. ANALYST: It is an embarrassing problem, because he claims that he was informed that the landscapers no longer employed illegal aliens, and here are illegal aliens who were discovered by the newspaper, "The Boston Globe," to be working on Mitt Romney's property, even now, long after the issue first emerged a few months ago. The whole thing is very embarrassing for him, and it was because of an expose by "The Boston Globe."

LEMON: Yes, and especially when immigration is going to play such a huge, huge role in the upcoming presidential campaign, Bill.

I want to ask you also about Mike Huckabee, because we've been hearing a lot about him lately and his rise in the polls, bringing him some new criticism as well. It centers around Huckabee's support, while he was Arkansas governor for a convicted rapist who was seeking parole. Not long after his release, the man raped and murdered a woman in Missouri. And a left-leaning Web site has posted letters sent to Huckabee at the time, urging him not to support the parole. How might this affect Huckabee's campaign, Bill?

SCHNEIDER: Well, of course since Huckabee has risen in the polls and has become a serious contender, he's ahead now in the race in Iowa. The fact is, his record as governor is now being strongly scrutinized, just as Michael Dukakis', Bill Clinton's, George Bush's were, when they were governors running for office. One of the things governors do is they deal with pardons and paroles. You may remember, Michael Dukakis got into big trouble over a furlough for a prisoner, Willie Horton, who went on to commit rape and was, in fact, the big problem for Michael Dukakis, and that had racial overtones.

In this case, Huckabee says he's deeply sorry, expresses sympathy with the families of the victims, a woman who was subsequently killed by the man who was pardoned. The big question has to do with whether he received those letters, whether he knew about them and how much involvement he had in the granting of the parole. Those are all matters that are in dispute right now.

LEMON: Yes, and as we get closer and closer to who is going to get the nomination, this all becomes even more important, is going to fire up even more, Bill.

SCHNEIDER: Everything on your record becomes important. There are questions about whether he raised taxes. Well, he did raise tax, but can he defend his tax hikes as governor of Arkansas? This action, which had do with the parolee. Everything on his record is going to become a matter of very intense scrutiny, as it is for every presidential candidate, particularly when they join the top-tier ranks and look like they may have a serious chance of winning the nomination.

LEMON: Absolutely. Bill Schneider, our senior political analyst here at CNN, we thank you very much for that.

If you want the most up to the minute political news anywhere, CNNpolitics.com is your one-stop shop. CNNpolitics.com, the Internet's premiere destination for political news.

(WEATHER REPORT)

PHILLIPS: Before the rains had stopped, the governors of Oregon and Washington knew it was bad. Both declared states of emergency. Both have seen some of the worst of the flooding for themselves.

Washington's Governor Chris Gregoire is on the phone with us now. Governor, you actually had a chance to fly over a number of areas yesterday. Tell us what you saw and how is it impacting how you're going to assist your people?

GOV. CHRISTINE GREGOIRE, WASHINGTON GOVERNOR: Well, it was pretty devastating. We've got I-5, our major highway from Portland to Seattle is 10 feet underwater. I could see houses where I could just barely see the top of the roof. Some houses, I assume, I couldn't see because of so much water over them. I saw a number of places where the winds had just destroyed all of it, places stranded, hospitals that is stranded, airports that are stranded, people without electricity and literally, of course, people homeless. The largest aerial search-and-rescue operation in my state in a decade.

PHILLIPS: Wow. So, governor, tell me what you're doing. You mentioned so many different entities. Maybe we start with the home list, the elderly. How are you providing shelter for those that have been wiped out?

GREGOIRE: We've got about 17 counties right now, or 17 places where folks can go among seven counties to make sure that they are not homeless, that they've got what they need. Our Red Cross has stepped up, volunteers throughout the area in making sure these people are first safe and, second, secure until we can get back and look at their homes and see what we can do for them then. Right now we're still not done with search and rescue. But we hope, for the most part, it's over.

PHILLIPS: Is this the first time since you've been in office that you've witnessed this type of devastation in your state?

GREGOIRE: You know, I've been through drought and I've been through wind storms. I've been through some floods. I've been through, you know, forest fires. This is, by far and away, the worst. It makes you feel helpless to Mother Nature on one hand.

On the other hand, when I go out to these shelters and I see these folks, the human spirit is nothing short of amazing. And these people are optimistic about getting back, and unbelievably appreciative of the rescue folks who are helping them and literally putting their own lives at risk.

PHILLIPS: It's been amazing to watch just the air rescues with the Coast Guard. What about restoring power? How long should residents expect to deal with the outages?

GREGOIRE: Well, we've got some good news in some of the areas where the greatest power outage has occurred in southwest Washington. But we are still are struggling in smaller communities where we can't even yet figure out what the problem is, let alone get it restored.

So, I've called the head of the Bonneville Power Administration today. They're going to put a priority in one area of the state where it's continued to be out. We've got generators, of course, through the National Guard in areas where it's essential. But that is a problem that we're trying to address hour by hour.

PHILLIPS: What do you think your greatest need is right now?

GREGOIRE: Well, on the human side, that's going to come forward here over the next several days. It's one thing to get rescued and be safe. And then, the human emotional toll begins to set in. So, that's got to be priority one.

Priority two is our infrastructure. We've got to get water that's safe to people. We've got to open up our interstate highway so our commerce can get engaged again. So, we're turning our attention now first to the human needs and then to our infrastructure needs.

PHILLIPS: How are you going to deal with I-5, because that's completely closed and under water, right?

GREGOIRE: We're talking with the Corps of Engineers right now about breaching one of the levees in order to release the water without causing more problems. We don't much see a way around doing that. That is probably the only way for us -- because it's sitting much like a bathtub right now, to really get that water to recede. Like I say, it was at 10 feet yesterday. It's receding, but very slowly.

PHILLIPS: What about the health concerns? I was reading yesterday about the sewage and that it was coming into these treatment plants at overwhelming amounts and having to go back out into the waterways. Are you worried about that right now?

GREGOIRE: Absolutely -- yesterday, I drove by at least one and went over several more waste water treatment plants that are completely flooded out. So, I'm worried about the health-related issues associated with it and how are we going to get them back up and operational. We're worried about water systems, power shut down too, obviously, impacted that. Making sure that our people are getting access to clean potable water and getting notices out to them now about what they can do to ensure that they protect their own health.

PHILLIPS: Washington Governor Chris Gregoire joining us by phone. It's devastating to see what's happened to your state. But you've got a lot going forward, and we'll follow the progress. Thank you, Governor.

GREGOIRE: You bet. Thank you.

LEMON: Baby formula packaging comes under fire. The FDA says not to worry, but a research group says you should. Our own Dr. Gupta will weigh in.

(COMMERCIAL BREAK)

LEMON: Straight to the news room now, and CNN's Fredricka Whitfield working on the details of a developing story. And this one, of course, Drew Peterson. More news about him.

FREDRICKA WHITFIELD, CNN ANCHOR: That's right. Possibly a new lead in the ongoing search, now more than a month for his wife, Stacy Peterson. Take a look at these live pictures right now out of Lockfort (ph). Well, these are now the taped pictures, actually, out of Lockfort, Illinois, which is a suburb of Chicago. And they're searching the waters in these two canals here.

We don't know what has drawn the dive teams to this location. All we know is that this search of the canals does have something to do with the ongoing search for Stacy Peterson, who's been missing now since October 28th.

As you mentioned, Don, her husband, who is also a police officer, Drew Peterson, has been named a suspect in this potential homicide case. But, of course, he has been denying any kind of responsibility whatsoever. Even going as far as saying that she possibly left for another man.

Meantime, you are looking at new images here that are just now coming in. And now, the live pictures there of a very snowy Lockfort, Illinois there, of the dive teams that are in place, the boats that are being used and the personnel to search these two canals there in Lockfort, Illinois.

When there's any development from this ongoing search, Don, we'll be able to bring it to you.

LEMON: OK, Fred, thank you very much for that. We'll check back. PHILLIPS: So, you're feeding your baby something toxic? The same advocacy group that warned of a potentially harmful chemical in baby bottles now says that same chemical is turning up in canned infant formula.

CNN's chief medical correspondent Dr. Sanjay Gupta has this exclusive report.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, there's a new report out there actually talking about the fact that there might be trace amounts of BPA, bisphenol-A in baby formula cans. The same report says even small amounts could be bad for you. The FDA completely denies that.

So, is this an overreaction by an environmental group or something to be taken seriously? You decide.

(voice-over): New mom, Helen Niblock, wanted to breastfeed five- week-old Emma, but didn't produce enough milk.

HELEN NIBLOCK, MOTHER: I actually cried when they told me they had to give her formula in the hospital.

GUPTA: To supplement Emma's diet, she feeds her Enfamil, just one of the canned baby formulas a research group claims contains a toxic chemical that could hurt her. It's bisphenol-A, or BPA. It's used as a protective lining in cans. Some moms panicked when they learned it's in plastic baby bottles.

Now, the Environmental Working Group says top baby formula makers acknowledge BPA is in their cans and that Environmental Working Group says even a little bit is harmful.

JANE HOULIHAN, ENVIRONMENTAL WORKING GROUP: Bisphenol-A is linked to toxic effects at very low doses. Concerns range from breast cancer, prostate cancer, diabetes, early puberty and infertility.

GUPTA: Also fueling concern, findings just published from a federal panel say that BPA poses some risk to babies' brains and behavior. Findings the American Academy of Pediatrics takes seriously, but admits there's not enough information yet to take action.

DR. ARI BROWN, AMERICAN ACADEMY OF PEDIATRICS: We don't have any data unfortunately in humans, so it makes it a little bit hard to know what's worrisome and what's not.

GUPTA: The FDA insists infants would have to ingest over 7,000 times more formula than they do in a day to do any harm. And adds that there's "no reason to ban or restrict its use" in baby formula cans.

Mead Johnson, maker of Enfamil, joins the nation's other top baby formula makers in acknowledging a trace amount of BPA in their cans within federal limits, but say their products are safe. The industry maintains "no changes in feeding practices are recommended."

New moms may not have answers, but they do have alternatives. Powdered formula or formula not packaged in cans and glass or BPA-free plastic baby bottles.

BROWN: If there's an easy, cheap way to limit or reduce the exposure in your child's life, why not do it?

GUPTA (on camera): Now, the one thing missing from all this is actual human studies. Most of the studies you were hearing about there were actually done in animals.

Helen Niblock, for her part, says look, there's been a lot of recalls out this summer and over the last several months. She is going to take this one seriously and probably change the way that she feeds her baby.

Dr. Sanjay Gupta CNN, reporting.

(END VIDEOTAPE)

LEMON: All right, we have a pop quiz for you. Which matters most, your size or how much you exercise? Answer according to a study in this month's "Journal of the American Medical Association" is exercise, exercise. It suggests people over 60 who are fit live longer than couch potatoes and it doesn't matter if you're fat. Researchers say even a modest amount of exercise, such as taking a brisk 30-minute walk five days a week is enough to help you live longer.

PHILLIPS: Crime scene -- no. It's one of those made-for-TV moments, but in real life. Pull over, here comes the baby. We're going to tell you how it turned out.

(COMMERCIAL BREAK)

LEMON: OK, all of you Web clickers out there, here's what you've been clicking on most over at our online home, which is CNN.com. Who are you calling fat? A Hollywood A-lister takes issue with nasty comments and the Hollywood image. Hear Jennifer Love Hewitt's side, the side she wants you to see.

And pictures of a Japanese man, a husband, a father, he is now dead, according to his widow, worked to death. You may be shocked to hear what his company has to say about that.

And can you believe someone ripped off the Boy Scouts selling Christmas trees? It's true, and they did it at gun point. They weren't prepared for that, or how their town is responding as well.

All these stories and much, much more at CNN.com.

PHILLIPS: Well, these kids may not be able to hear the bells jingle or the carollers carol. But Santa Claus is coming through loud and clear. We're going to tell you how a special Santa is spreading some Christmas cheer. LEMON: Very nice.

(COMMERCIAL BREAK)

LEMON: OK, got a question for you. Does this really happen outside of cop shows and soap operas? Apparently, it does. Mom in labor, frantic dad, speeding toward the hospital. Wrong turn, they get lost and here comes the baby. Well luckily, early today, Orlando's finest was there.

(BEGIN VIDEO CLIP)

OFC. NAHOUM DANIEO, ORLANDO POLICE DEPT.: Actually, the first time in my eight-year career that I was able to actually take part in a live childbirth. So, it was kind of first time for me. But everything turned out just fine.

(END VIDEO CLIP)

LEMON: Well, it was a boy and he and mom are doing well. And dad? Well, maybe he'll get a road map for Christmas or a navigation system.

PHILLIPS: He needs a GPS.

LEMON: Yes, he does.

PHILLIPS: Exactly.

LEMON: Absolutely.

PHILLIPS: I'd name the baby after the cop -- yes.

LEMON: Oh, yes, or what was it? I don't know, losty or something like that?

PHILLIPS: All right, merry Christmas is a phrase that gets translated into many languages. And at a Denver shopping mall, that includes sign language. Heidi McGuire of CNN affiliate KUSA reports on the signing Santa.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hi there. How are you doing?

HEIDI MCGUIRE, KUSA REPORTER (voice-over): It's that time of year when one man's in high demand.

UNIDENTIFIED MALE: Ho ho.

UNIDENTIFIED MALE: Your turn, you're next.

MCGUIRE: We're looking at the one shot kids get to let good old St. Nick know exactly what they want for Christmas.

UNIDENTIFIED MALE: I want a jumping kitty that turns around and I want -- and I want a rescue pack with Diego and baby jaguar.

UNIDENTIFIED MALE: OK, sit down.

MCGUIRE: For the past 16 years, it's an opportunity Cherry Creek Mall has extended to every child.

UNIDENTIFIED MALE: They need to get that also.

MARISSA BIGFORD, MT. VIEW ELEMENTARY SCHOOL TRANSLATOR: All the kids have a fun time getting a chance to come down and see the signing Santa Claus and they have an equal opportunity just as the hearing kids in our community and they get a chance to come and use their native language.

UNIDENTIFIED MALE: What do you want for Christmas?

MCGUIRE: A language Santa is very familiar with.

UNIDENTIFIED MALE: OK.

MCGUIRE: But don't think a cute smile will get you everything you want.

UNIDENTIFIED FEMALE: And a piano.

UNIDENTIFIED FEMALE: You want a piano from Santa Claus?

MCGUIRE: You can say it, sign it or even draw it, but only those who are nice ...

UNIDENTIFIED MALE: Yes, it's huge, and a bicycle.

UNIDENTIFIED MALE: Bike!

MCGUIRE: ...will get a surprise from Santa.

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