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California Wildfires; Iran Tests More Missiles; Heparin Deaths?; Nuclear Negotiations Talks Resume with North Korea; Prosecutors Apologize to Ramsey Family

Aired July 10, 2008 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning again, everyone. You're informed with CNN.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Hi, everybody. I'm Heidi Collins.

Developments keep coming into the CNN NEWSROOM on this Thursday, the 10th of July.

Here's what's on the rundown.

Iranian TV shows another round of missile launches. The tests prompt new warnings from the U.S. and Israel.

HARRIS: Fire crews try to keep flames away from more homes in Paradise, California. They're banking on a river to hold the inferno.

COLLINS: A CNN investigation leads to a congressional inquiry, why loads of FEMA supplies never made it to Hurricane Katrina victims.

You are in the CNN NEWSROOM.

Far from being out of the woods. Firefighters from across the country now working to contain hundreds of California wildfires.

Our Reynolds Wolf is covering one of the most dangerous in Butte County.

Reynolds, what's the latest?

REYNOLDS WOLF, CNN METEOROLOGIST: The latest from Butte County, Heidi, is that the fire is 49 percent contained, which is certainly great news. But we've had thousands of people evacuated from this area.

Forty homes, 10 outbuildings have been destroyed by the blaze. Right now in this particular spot, right along highway 70, things are for the time being pretty good.

You notice this -- we've got a crew right here. They came in from southern California. This crew just hours ago was actually battling fires in places like Big Sur.

And right over there, of course, you can see the trucks, you can see some water trucks coming in, all used to build the fire. But in speaking of firefighting vehicles, why don't you take a look at this.

Notice this truck? Maybe not the Peterbilt truck. This certainly isn't a firefighting vehicle, but this sure is back here.

Notice this bulldozer. This bulldozer has been one of the huge machines they've been using to clear fire lanes out in the woods, trying to separate a lot of that foliage from where you have the flames.

It's trying to build a little bit of a border between raging fires and where you have places, wilderness that has not been touched yet by the blaze. And that's what they're doing today.

The big battle is going to go from this ridge, where we happen to be -- you'll notice some of the smoke behind me -- to Feather (ph) River, which separates the town of Paradise from the fire on this side of the ridge. So you have, of course, the river, which is acting like a little bit of a border. But the big fear is that you're going to have the winds pick up, you're going to have some of those embers in the air going across the river and affecting the town of Paradise. They've had already had many people evacuate.

You know, it's really a scary time right now because it is the beginning of the day. You've got the crews out. They're highly motivated.

As I've mentioned, they've been traveling all over the state. In fact, over 20 states around the U.S. People have been coming here to battle this blaze.

But there are a lot of variables that they aren't sure about. Those variables being the wind. The wind expected to pick up as we get to the afternoon.

Temperatures soaring into the mid to upper 90s. Very, very low humidity. All of those things I mentioned can really contribute to causing this fire to really, really spread.

As I mentioned, the good news, 49 percent contained. Bad news, has the possibility of spreading to places like Paradise.

Let's send it back to you in the studio.

COLLINS: Yes. It means half of it is contained and half of it isn't.

Reynolds, what about the firefighters themselves and the exhaustion? We've been talking about that for a couple of days. I know the hotshot crews are still out there, as you said, 20 different states coming in to help. But I imagine it's a really tough go still at this point.

WOLF: Oh, it really is. I mean, you see the guys over here. They're lounging for a little bit, just taking it easy. And this is one of the few times you've seen these guys actually get a breather. But they're so motivated, they've got great spirit. And I have to tell you, Heidi, a lot of this is actually payback. And when I say payback, I don't mean that in a vindictive sense.

A lot of these guys are coming back up here to help fire crews in this region because last fall, you'll remember, in places like southern California, San Diego, you had wildfires that were consuming all kinds of communities and wilderness.

COLLINS: Yes.

WOLF: These guys were down there lending a hand. Now the people in southern California, the crews, are coming up here to help out. They've been coming up, as I mentioned, across a great part of the country, including crews from, say, places in Pennsylvania, even in Alaska, here to lend a hand, all coming together to battle nature.

Let's send it back to you.

COLLINS: Yes. Well, our thoughts are with them, certainly, and all the people whose homes may be in danger. We sure do appreciate it.

Reynolds Wolf, with the latest on the fires in California.

Thanks, Reynolds.

WOLF: You bet.

(WEATHER REPORT)

HARRIS: This just into CNN. We told you just moments ago about the jury selection process that is under way here in Atlanta in a murder trial stemming from a deadly courthouse shooting.

Brian Nichols, you see him there, is accused of killing a judge, a court reporter, a sheriff's deputy, and a federal agent in a horrible scene. This was March of 2005. We've just learned that Brian Nichols has entered a not guilty plea, a not guilty plea by reason of insanity, as that trial begins today here in Atlanta.

We will keep an eye on developments in this trial and bring you updates as we get them right here in the CNN NEWSROOM.

Iran is testing more missiles and possibly the resolve of world leaders this morning. Iran's state TV is boasting that it has launched more medium-and-long-range missiles.

There is no way to verify if this missile video is actually authentic. It is the second straight day of military exercises and muscle flexing. Iran says it is merely responding to threats from the United States and Israel. And, in fact, Iranian missiles would be capable of striking Israel. Iran also says its missiles have special capabilities, but does not explain what that means.

The Pentagon is monitoring Iran's new missile test this morning, and we're learning that the U.S. Navy recently held a missile defense test in checking out its communications network across the Middle East.

CNN's Barbara Starr with more on all of this, live from the Pentagon.

Barbara, good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Tony.

Well, as you say, no one can really verify the Iranian video but, indeed, U.S. intelligence over the last couple of days has monitored several Iranian missile launches, long-and-medium-range ballistic missiles. That's one set of Iranian exercises going on.

On land, in the northern end of the Gulf, we are told by U.S. military officials there's another Iranian naval exercise going on. The U.S. keeping a very close eye on all of that as well.

But with all of the talk around the world about what Iran is up to, what Israel and the U.S. may be up to in response to that, yesterday Defense Secretary Robert Gates took the opportunity to ask everybody to really take a deep breath.

(BEGIN VIDEO CLIP)

ROBERT GATES, DEFENSE SECRETARY: The reality is there is a lot of signaling going on, but I think everybody recognizes what the consequences of any kind of a conflict would be.

(END VIDEO CLIP)

STARR: And, of course, one of the most serious consequences, Tony, would be if Iran, the U.S. worries, was to make some move to shut down the Strait of Hormuz and that vital oil flow through that region. It should be said that the U.S. military view about that possibility is, if Iran was to do something like that, the U.S. military could very quickly move to reopen the strait, escort oil tankers, fly air patrols overhead, deal with those Iranian air defenses.

It's not something that the U.S. military or, you know, the U.S. government is going to let Iran do. And the secretary really took some detail yesterday to say that he doesn't believe Iran really has the intention at the end of the day of going to war -- Tony.

HARRIS: OK. Barbara Starr at the Pentagon for us.

Barbara, good to see you. Thank you.

COLLINS: In just a couple of hours, President Bush signs a bill that overhauls the rules for surveillance of suspected terrorists. The bill won approval in the Senate yesterday.

It prevents telephone companies from being sued for cooperating with government surveillance after the 9/11 attacks. That was a key demand from the president.

The bill also requires approval from a secret court to monitor Americans whether they are in the U.S. or abroad, and it prohibits reverse targeting. That's when intelligence officials eavesdrop on foreigners' communications overseas to spy on someone in the United States.

HARRIS: You know, she has overcome quite an ordeal in the jungles of Colombia, chained and abused during more than six years in captivity. She called it hell. Hear directly from newly freed hostage Ingrid Betancourt.

(COMMERCIAL BREAK)

HARRIS: Iran test-fires a new series of missiles, and Washington fires back. Here's the question: Why should we care?

Fareed Zakaria is CNN's world affairs analyst and host of "Fareed Zakaria GPS" on CNN and CNN International, and he joins us from New York.

Fareed, great to see you. Love the show, by the way.

Let me start with that basic question for you. We see the saber rattling going on right now. We hear the escalating rhetoric. And I wonder, why should we in Atlanta, in Iowa, in Washington, D.C., why should we care?

FAREED ZAKARIA, CNN WORLD AFFAIRS ANALYST: Because if this continues, oil will probably be at $8 a gallon. In other words, the Straits of Hormuz, which is the key choke point in the Persian Gulf, probably controls about 40 percent of the supply of oil throughout the world. If Israel and Iran go to war, or have military exchanges, Iran has threatened in various ways to choke off that supply.

If that happens, we really could see...

HARRIS: Yes.

ZAKARIA: ... $200-a-barrel oil, $250-a-barrel oil, probably temporary, but long enough to send our economy into a real tailspin.

HARRIS: All right, Fareed. Let's take a big step back here with this one. Other nations test missiles all the time. Why is Iran being held, seemingly, to a different standard here?

ZAKARIA: Well, it's largely because of the fear that Iran is developing a nuclear capacity, because -- so these would -- these are missiles that they could fire now and they wouldn't have that much effect. But imagine five years from now, that's what people are thinking, when Iran has a nuclear capacity. It means that it can use nuclear missiles and hit Israel, hit American bases. So that's the fear.

I think it's important to point out that Iran was doing this, by its argument, in retaliation for Israeli military maneuvers. So there is a tit-for-tat aspect to what's going on here.

HARRIS: Fareed, here's where it gets a bit confusing, I think. You know, there is all of this hot rhetoric, and let's listen to a moment, some of the comments from Secretary of State Rice. And then I've got a question for you.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: We are also sending a message to Iran that we will defend American interests and defend the interest of our allies. We take very, very strongly our obligation to help our allies defend themselves, and no one should be confused about that.

(END VIDEO CLIP)

HARRIS: And yet, Fareed, as recently as last week, I believe, the EU floated a new proposal to Iran to suspend its uranium program for six weeks. So, what is happening really? Maybe we can drill down on the efforts on the diplomatic front.

ZAKARIA: Look, I think we're actually proceeding in pretty much the right way in the sense that, with Iran, you want to have a combination of sticks and carrots. You want to say to them, look, you know, if you develop a nuclear weapons program, there are going to be huge costs and huge penalties associated with that. But we want to also give you a sense of what it would be like if you choose a different path.

You'll have technology, trade, dialogue, diplomacy with the western world. In fact, I would argue we should be holding out the prospect of direct talks with the United States as part of the package. But you want to have a combination of sticks and carrots. Otherwise, it's very difficult to see how you move Iran from its current position.

HARRIS: I have to ask you, do you believe Iran would suspend its uranium enrichment program if the United States provided security guarantees, something along the line of suspend in a verifiable way, and we will not attack you?

ZAKARIA: I think you could get to that at the end of a process. There's so much mistrust between the United States and Iran.

Remember, we haven't had a diplomat in Tehran for 30 years. We know very little about these people, about this country. So it's going to take a while to reestablish some basic -- just kind of trust.

But I do think at the end of the day, if the negotiations were successful, you could get some kind of constraints on Iran's nuclear program. I don't think they're going to give it up. This is a very proud country that wants to have a nuclear capacity. And my guess is, what we can best do is delay and constrain it, but not destroy it.

HARRIS: What are you most interested in talking to Barack Obama about? I know you have him as a guest this weekend on your program. ZAKARIA: Well, what I'm hoping this Sunday on "FAREED ZAKARIA GPS," we have an extended conversation with Barack Obama on foreign policy. What I'm hoping is, we get a chance to understand how he thinks about foreign policy. You know, how does he grapple with issues? Because you can't predict what you're going to be -- what the world will throw at you as president.

What we can try to grasp is, how does he think about it? You know, how -- when he faces a crisis, what is he going to draw on intellectually in terms of his background, in terms of his interest, his advisers? And I hope that we'll get a picture, you know, that's not just about a kind of series of "gotcha" questions, but a deeper, almost kind of first principles conversation about who is this guy?

HARRIS: Come on back in and join us again soon, Fareed. We love the program.

Fareed Zakaria, host of "FAREED ZAKARIA GPS" on CNN and CNN International.

Good to talk to you this morning.

ZAKARIA: Thank you so much for having me.

COLLINS: A second baby dies after an overdose of a blood thinner. We'll have the latest coming up.

(COMMERCIAL BREAK)

HARRIS: Very quickly, let's take you to Kansas City, Missouri, right now. Women's day for the Obama campaign.

Michelle Obama participating in a discussion with Missouri women at the University of Missouri, Kansas City. And earlier this morning we brought you Senator Obama and Senator Clinton together at a Women for Obama event, a finance breakfast in New York.

So women the focus for the Obama campaign. Michelle Obama in Kansas City.

COLLINS: Quickly, we want to tell you about this. We are going to be hearing from the three American hostages that were held for nearly six years in a Colombian jungle. CNN Headline News' Robin Meade is going to be doing that interview. I believe, actually, is taking place as we speak. And we're going to be able to hear portions of it just as soon as possible, a little bit later on today.

We will keep you posted as to when we'll put that on television for you.

Meanwhile, she was held captive for more than six years as well. Former hostage Ingrid Betancourt was the only woman among 15 people freed from Colombian guerrillas last week. She tells CNN's Larry King about the cruelty she endured and the joy of seeing her two children.

(BEGIN VIDEO CLIP) INGRID BETANCOURT, FMR. FARC HOSTAGE: It was hell. It was hell for the body. It was hell for the soul. It was hell for the mind.

Everything was so horrible. I mean, we had all kind of pains -- little pains, big pains.

LARRY KING, HOST, "LARRY KING LIVE": Were you -- you were physically tortured as well as mentally tortured?

BETANCOURT: We all were. We all were.

KING: What changes have you noticed in your children?

BETANCOURT: So many. They are bigger than me. They are stronger. They are amazing human beings, Larry.

It's -- you know, during all these years, I had, like, dreamed of that moment of being with them. And then when I came to live that moment, it was just, like, better -- much, much better than what I dreamed.

(END VIDEO CLIP)

COLLINS: You can catch all of Larry King's great interviews weeknights, 9:00 Eastern, 6:00 Pacific, right here on CNN.

Also want to remind you that CNN Headline News' Robin Meade will be conducting an exclusive interview with the three American hostages, Marc Gonsalves, Thomas Howes and Keith Stansell. And we will be able to put portions of that on TV for you a little bit later on today.

HARRIS: A pretty special moment on the Senate floor yesterday. Senator Ted Kennedy back on Capitol Hill for the first time since being diagnosed with brain cancer. And all the applause that goes with that moment. He showed up to vote on a bill that would stop cuts in Medicare payments to doctors.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: How important is this bill?

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: It's enormously important. The whole issue of -- for our seniors to be able to be protected is a key defining issue for this Congress and for this country. And I didn't want to miss the opportunity to be able to express my voice and my vote.

UNIDENTIFIED MALE: And how are you feeling, sir?

KENNEDY: I'm feeling fine.

UNIDENTIFIED FEMALE: Coming back full time? Coming back full time soon?

KENNEDY: Well, hopefully.

UNIDENTIFIED FEMALE: Thank you, sir.

KENNEDY: Thank you.

(END VIDEO CLIP)

HARRIS: Kennedy is chairman of the Health, Education, Labor and Pensions Committee.

COLLINS: A second newborn has died following an overdose of the blood thinner Heparin. It happened in the neonatal unit of a hospital in Corpus Christi, Texas.

Gabe Caggiano of affiliate KZTV reports.

(BEGIN VIDEOTAPE)

GABE CAGGIANO, KZTV REPORTER (voice over): The two premature babies that died at Spohn South within a day of each other were twins. The parents have filed an application for a temporary restraining order and temporary injunction to prevent Spohn South from destroying the Heparin bottles and any records relating to the two infants' treatment at the hospital.

The application charges, "As a result of the overdose, Kaylynn Garcia and Keith Garcia received as much as 100 times the recommended dosage of Heparin. Also, as a result of the overdose, Kaylynn Garcia suffered serious injuries and Keith Garcia died."

Garcia attorney Robert Patterson also wants the autopsy report.

ROBERT PATTERSON, GARCIA ATTORNEY: Eventually we'll have the autopsy. We'll learn what that says and take a look at all of it. What I do know is the parents thought they were transferred here for better care, and within a week both of their children are gone.

CAGGIANO: Twelve babies remain at Spohn South Hospital in critical but stable condition after receiving the accidental high dose of Heparin. Spohn officials have admitted the hospital pharmacy made a mistake in mixing the Heparin before it was given to the children, but have stopped short of saying that was the cause of death.

As for the Garcia family, they are not talking to the media yet.

PATTERSON: They really need some time to deal with this. They thought they had something wonderful happen, and now they have just about the most awful thing you can imagine happen.

(END VIDEOTAPE)

COLLINS: The nation's main pharmaceutical organization has recorded about 250 medical errors involving Heparin and children under 1 year old.

Many of you may remember when actor Dennis Quaid's newborn twins were given a massive overdose of Heparin last year.

Relief supplies never making it to the Katrina victims who need them. Now Congress is holding FEMA's feet to the fire.

(COMMERCIAL BREAK)

HARRIS: Hello. Good morning, everyone. Welcome back to the CNN NEWSROOM. I'm Tony Harris.

COLLINS: Hi there everybody. I'm Heidi Collins.

Iran, the thunder of launching missiles, the rumble of new warnings. Iran's state TV says it has launched more medium and long- range missiles this morning in a second day of military exercises. There's no way to verify if this missile video is authentic. Iran says it is responding to threats from the U.S. and Israel. In fact, Israel is within striking distance of Iranian missiles.

On another ominous note, Tehran says its missiles have "special capabilities." It doesn't explain what that means. The white house made its response crystal clear.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: We are also sending a message to Iran that we will defend American interests and the interests of our allies. We've done that both by I think you know that in the gulf area, the United States has enhanced its security capacity, its security presence. And we are working closely with all of our allies to make certain that they are capable of defending themselves. And we take very, very strongly our obligation to help our allies defend themselves and no one should be confused about that.

(END VIDEO CLIP)

COLLINS: The Iranian exercises were performed one month after an Israeli military drill. Many analysts say that maneuver meant to send a message that Israel is capable of attacking Iran's military exercises.

HARRIS: So how is Israel responding to this latest saber rattling? CNN's Ben Wedeman is in Jerusalem.

I'm just curious, is this front page, above the fold news in Israel?

BEN WEDEMAN, CNN CORRESPONDENT: Actually, Tony, on at least two of the major circulation dailies here in Israel it's not even on the front page. It does occupy a lot of space on the inside pages, but by and large the Israelis are accustomed to this, Israel more than any other country on earth, follows very closely developments in Iran regarding its nuclear program and its missile program.

In fact, today the Israeli air force brought out -- put on display a spy plane that it has just developed, spy plane that would provide for some sort of early warning system. They didn't allow us to bring our camera inside the plane, but in the early warning system that would alert them if any rockets, missiles were fired from Iran. And it's worth noting that it only takes 11 minutes for those shahab-3 missiles that were tested in Iran yesterday to make the distance between Iran and Israel.

Tony?

HARRIS: Ben Wedeman, appreciate it. Thank you.

Nuclear negotiations with North Korea back on track after a nine- month hiatus. The six-nation talks in Beijing focused now on verifying information Pyongyang handed over about its atomic program. The meetings come just two weeks after the communist nation delivered its nuclear declaration and then blew up a cooling tower and its main nuclear reactor to demonstrate a commitment to disarmament. The U.S. has promised to remove North Korea from a list of state sponsors of terrorism and relax some economic sanctions against it.

COLLINS: A major development in a CNN investigation. The House Homeland Security Committee says it will hold hearings now to find out why stockpiled supplies never made it to Katrina victims. Special Investigations Unit correspondent Abbie Boudreau broke the story.

(BEGIN VIDEOTAPE)

ABBIE BOUDREAU, CNN SPECIAL INVESTIGATIONS CORRESPONDENT: These photos are expected to be the focus of Representative Thompson's Congressional hearing into why FEMA never got millions of dollars of these new supplies to Katrina victims as intended.

REP. BENNIE THOMPSON (D), MISSISSIPPI: We just think that FEMA needs to come and tell the committee how such a debacle could occur. And, in the process, what are they going to do to assure congress and the taxpaying public that it will never happen again?

BOUDREAU: CNN uncovered that for the past two years boxes of supplies just sat unused until FEMA gave them to various state and federal agencies. Thompson not only blames FEMA but he's also stunned at how Mississippi officials made "a mockery of the whole process".

THOMPSON: I'm disappointed that my state decided that prisoners had a higher priority than Katrina victims.

BOUDREAU: Mississippi was one of 16 states that took the household supplies like these but gave them to state prisons and other agencies.

The state of Mississippi dropped the ball here?

THOMPSON: Oh, no question. Anytime items intended for victims of Katrina end up in the hands of the department of corrections or state employees, then clearly Mississippi dropped the ball.

BOUDREAU: We repeatedly called miss pass officials to find out why the state didn't get those supplies to non-profit groups that help Katrina victims, but no one would go on camera. Though we did talk to a spokesperson from Mississippi's surplus agency, Kim Wiggins, who told us "There may be a need, but we were not notified that there was a great need for this particular property." Thompson disagrees and says there still is a great need for these basic supplies. So do you think that there might be a way to redirect some of these items to Mississippi?

THOMPSON: Oh, absolutely. If we can somehow find where those items are, I think we can demand that they go to the people for which they were intended. These items were not intended to go to prisoners. They were not intended to go to state employees. They were intended to go to victims of Katrina.

BOUDREAU: Abbie Boudreau, CNN, Washington.

(END VIDEOTAPE)

HARRIS: Well, John McCain campaigns in the swing state of Michigan today. He will be talking with workers and undecided voters in the Detroit suburb of Belleville. McCain plans to focus on jobs and small businesses during a town all meeting. Later he visits his regional headquarters in St. Paul, Minnesota.

Barack Obama and Hillary Clinton got together for breakfast. On the menu? Money. Clinton stressed the importance of democrats coming together to elect Obama in November.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), NEW YORK: It's critical that we join forces because the Democratic Party is a family, sometimes a dysfunctional, but it's a family. And we care about what's going to happen to the economy and health care and education. What's going to happen in Iraq and Afghanistan and to our young men and women in uniform? What's going to happen with our energy policy and whether we ever take on climate change in a meaningful way?

(END VIDEO CLIP)

HARRIS: And later today Obama discusses the economy with women voters in Fairfax, Virginia.

COLLINS: Democrats in Denver will paint the town green ahead of their national convention.

(COMMERCIAL BREAK)

COLLINS: Well, it was ugly while it lasted. Christy Brinkley and Peter Cook have just settled their very public divorce case out of court. The deal coming after a week-long public airing of the couple's dirty laundry. Brinkley's attorney says she will get custody of their two children and 18 properties in the Hampton. Cook gets a little over $2 million and visitation with the kids.

HARRIS: Final offer. Negotiators for the movie studios and the Screen Actors' Guild plan to meet today to go over the producers' contract offer. CNN's Brooke Anderson reports on one actor preparing for a possible strike.

(BEGIN VIDEOTAPE)

MIKE MCCAUL, ACTOR: At that's my first check that I got for a part.

BROOKE ANDERSON, CNN CORRESPONDENT: Mike McCaul left firefighting in New York to pursue his dream of acting 15 years ago.

MCCAUL: I always heard the expression "it takes ten years before you can get a break." It took me 11.

UNIDENTIFIED MALE: Hey, John.

ANDERSON: After toiling away as an extra, McCaul landed his first major part playing a neighbor in 2005's "Mr. and Mrs. Smith".

UNIDENTIFIED MALE: Good night.

ANDERSON: He occasionally works outside the industry to make ends meet. Second jobs are common among struggling actors, many of whom have been hit hard by the economy and recent writers' strike.

MCCAUL: When it did happen, I took to catering and bartending. Even that dropped because it affects everything. There wasn't much work.

ANDERSON: Now Hollywood is bracing for another potentially devastating work stoppage.

MCCAUL: This is the guy. He wrote the short.

ANDERSON: As McCaul learns, there are financial safety nets like the nonprofit actors' fund.

MCCAUL: They helped out, actually paid my rent. They just wrote out a check to my landlord, sent it to them. Without them, wow, would have been in a lot of trouble.

KEITH MCNUTT, ACTORS FUND: We asked for a tax return and we ask for their earnings in the entertainment industry.

ANDERSON: The fund helped more than 800 people with emergency financial assistance during the writers' strike and preparing for a deluge of requests if another strike occurs, which could stretch their annual budget even more.

MCNUTT: That fund is usually between $200,000 and $300,000 in a usual year. This year we're at $1.3 million and it's June. We're assuming that we would probably have another million in requests come in a real work stoppage happened for any length of time.

ANDERSON: For his part, McCaul is hopeful there won't be another industry shutdown, but he's getting ready just in case.

MCCAUL: Stocking my money away right now, do as much work as possible before it hits, try to do catering work, double shifts. And stock it away and hope for the best.

ANDERSON: Brooke Anderson, CNN, Hollywood.

(END VIDEOTAPE)

COLLINS: Sky-high gas prices are causing some people to put their cars in park. Susan Lisovicz is at the New York stock exchange with a look at how driving habits are changing.

Hey there Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: And they're changing dramatically. Gasoline demand is falling and supplies are building. The government supply reports show use of gas dropped more than 3 percent last week. The "Wall Street Journal" says it fell to the lowest level in five years. That's interesting because last week included the Fourth of July holiday, typically a big driving weekend. All this comes, of course, as the average price of gas has now been above $4 a gallon for more than a month.

Heidi?

COLLINS: So if demand falls, doesn't that mean that prices fall?

LISOVICZ: There usually is a connection. It's possible, especially if supplies continue to grow. But if oil prices stay high, don't expect much relief. The problem is that demand for other fuels like diesel is soaring around the world. That's helping to keep oil prices higher. Right now they're up more than nearly $2, to around $137 a barrel. That increase and more concerns of the financial help of lenders Fannie Mae and Freddie Mac are causing in and out of positive territory.

Right now we're higher; Dow is up 26 points, around a quarter of a percent, NASDAQ up 14 percent, two-thirds of a percent.

COLLINS: All right. Thank you Susan.

HARRIS: They're seeing red white and blue but going green democrats prepare to descend upon Denver for their convention. The message there will be recycle, renew, and reuse.

CNN's Ed Lavandera reports.

(BEGIN VIDEOTAPE)

MAYOR JOHN HICKENLOOPER, DENVER: Why shouldn't we have the greenest convention ever?

ED LAVANDERA, CNN CORRESPONDENT: The Denver mayor's question sounds simple but talking green and acting green aren't the same. First, the city and democratic convention organizers hired green idea people. Actually, they're called directors of green.

UNIDENTIFIED FEMALE: It's a serious problem.

LAVANDERA: Meet Andrea Robinson and bike riding Patty Burnap. She's arranged for bike riding stations so democrats can pedal to the convention. Also, Burnap also made sure recycle bins have been placed on downtown streets. PATTY BURNAP, DIRECTOR OF GREENING: This moment is a great opportunity for nudging us over as it becomes commonplace business practice and personal habit.

LAVANDERA: The Pepsi Center, where the convention will be held in the media pavilion, will be partly powered by wind and solar energy. Cups plates and utensils will be made from corn and discarded items will be sent to a compost pile. Democrats also have a fleet of hybrid cars to move dignitaries and for $7.50 a delegate can buy a carbon offset by contributing to a cause to make up for the carbon footprint left by their air travel.

ANDREA ROBINSON, DIRECTOR OF GREENING: You won't notice anything different by it being sustainable. It's very important to this party to not only have a sustainable event but act responsibly toward the planet.

LAVANDERA: The city even sponsored green workshops for catering companies and hotels. Inside Three Tomatoes Catering, chefs compost food scraps they used to trash.

JOANNA KATZ, THREE TOMATOES: I think it's a learning process. I'm not sure that every decision we make is the right one. I think we're all learning what is the best way to go green.

LAVANDERA: But some observers say going green for a four-day convention doesn't mean much. Only three out of 50 state delegations have fully signed on to the party's green initiative.

SUSAN GREENE, DENVER POST: I think it's a PR effort. A convention is a party.

LAVANDERA: What about all of these balloons they like to drop at conventions? Those aren't environmentally friendly. Word is you might not see them in Denver.

Republicans tell us they're also committed to putting on one of the greenest conventions ever as well. They haven't gone as far as hiring directors of green, but they do say they're looking for ways to cut down waste and save on energy.

Ed Lavandera, CNN, Denver.

(END VIDEOTAPE)

HARRIS: Let's take you to Belleville, Michigan, right now. John McCain in the swing state of Michigan talking with workers, some undecided voters and workers. In that Detroit suburb, John McCain focusing on jobs and small businesses during this town hall meeting scheduled to get under way at noon eastern right here in the NEWSROOM.

COLLINS: Denver police say they now know who did not kill JonBenet Ramsey. Startling results of new DNA tests.

(COMMERCIAL BREAK) HARRIS: So just a short time ago, the man accused of a deadly courthouse rampage in Atlanta pleaded not guilty by reason of insanity. Brian Nichols is accused of killing a judge, a court reporter and a sheriff's deputy. Prosecutors say Nichols overpowered a female deputy, stole her gun, and went on a killing spree. His attorneys say he was insane and couldn't tell right from wrong. The trial was delayed by a series of complications.

COLLINS: Umbrella of suspicion finally lifted. An attorney for JonBenet Ramsey says he has no plans to sue prosecutors or law enforcement. This comes after a Colorado prosecutor apologized to the family of JonBenet Ramsey for being under suspicion for her death. A DNA test using a new type of technology has confirmed in 1998's finding that there was no genetic match for the family from evidence. The material, instead, matches an unidentified man.

(BEGIN VIDEO CLIP)

JOHN RAMSEY, FATHER OF JONBENET RAMSEY: The most significant thing is that I'm very comfortable that we have a good, solid, irrefutable DNA sample that will be in the national data base. And as that data base gets populated, we have a good opportunity, I think, to eventually find an answer to who did this. We're certainly grateful for acknowledgment that we are innocent. This was an intruder, which, of course, we've always maintained.

(END VIDEO CLIP)

COLLINS: The apology came too late for JonBenet's mother. Patsy Ramsey died of cancer two years ago.

HARRIS: A polygamous sect leader is out of the hospital and back in jail this morning. Warren Jeffs was taken to a Las Vegas hospital on Tuesday when jailers found him feverish and shaking. Details of his medical condition have not been released. Last year Jeffs was convicted of helping to arrange the marriage of a 14-year-old follower to her 19-year-old cousin.

COLLINS: You can't fight city hall, but you can paint your house pink to protest. And purple.

(COMMERCIAL BREAK)

HARRIS: I've got to tell you that we're all pretty excited about these developments here. We've been following the story of the rescued American hostages since we all received that great news. Now we can tell you that our very own Robin Meade from "CNN HEADLINE NEWS" is in the process, I believe, right now of interviewing Thomas Howes, Mark Gonslave Gonslaves, and Keith Stansell. We believe that's being conducted right now. And as soon as we can turn around major chunks of that interview, we will certainly get them to you. They'll certainly be posted online, part of robin's show tomorrow on headline news. And you would imagine on NEWSROOM this afternoon beginning at 1:00 p.m. Eastern Time. That interview going on right now and we will turn that around as soon as we can. COLLINS: It's attracting a gaggle of gawkers. That's because one side is hot pink, the other is neon purple. This old house in Pennsylvania is brightening up the neighborhood. The new owner wanted to tear it down and build something else. The city said, no. To protest, the owner decided to add a little color to his world. One neighbor isn't complaining. He says the house looks a lot better than it did before.

HARRIS: And you won't believe this one, knocking out your opponent and his king. CNN's Diana Magnay looks at the sport of chess boxing.

(BEGIN VIDEOTAPE)

DIANA MAGNAY, CNN CORRESPONDENT: Up against British heavy weight Andrew Costello. Yes, chess boxing. Two great hulks of men face off against each other for four sweat-drenched minutes of chess followed by a vicious three-minute round of boxing. It's up to 11 rounds unless there's a knockout before either on the board or in the ring. A marathon of brains and bronze. And Berlin's hipsters can't get enough of it.

UNIDENTIFIED MALE: Combines -- one for the brain, one for the body. To combine this it's fantastic.

MAGNAY: Iepe Rubingh introduced the idea in Berlin about five years ago. He tells me his hope for the future of the sport.

IEPE RUBINGH, CHESS BOXING FOUNDER: Last day of the Olympics, just imagine in heavy weight chess boxing fight. Fighting a chess boxer. That will be the king's discipline, don't you think?

MAGNAY: It's not Olympic in style yet, more like a Berlin warehouse. Though, that doesn't stop the organizers playing up the occasion.

A German policeman against 19-year-old from Siberia; an evenly matched two rounds at first and then a rash oversight on the board by defending champion, the Russian chairman swoops in to take his queen. And it's all over.

FRANK "ANTI-TERROR" STOLDT, FORMER WORLD CHAMPION: Chess boxing -- and tonight.

MAGNAY: Fresh, young chess boxing talents to take this 5-year- old sport to the next level.

Diana Magnay, CNN, Berlin.

(END VIDEOTAPE)

COLLINS: OK. CNN NEWSROOM continues just one hour from now.

HARRIS: "ISSUE #1" with Gerri Willis and Ali Velshi, starts right now.