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Battle in the Bahamas Over Anna Nicole's Baby; Postal Service Considers 'Forever Stamp'

Aired February 26, 2007 - 15:00   ET


KYRA PHILLIPS, CNN ANCHOR: Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta.

A runway rerun -- bad weather grounds thousands of travelers, and JetBlue grounds itself.

PHILLIPS: Also, forget that red carpet. Oscar went green this year and gave Al Gore a big old Hollywood hug. Is it a sign of a campaign to come?

LEMON: And the saga continues in West Palm Beach and in the Bahamas. Custody issues over Anna Nicole Smith's body and her baby, her daughter, keep courtrooms hopping.

You're live in the CNN NEWSROOM.

PHILLIPS: Two developing stories out of Iraq this hour -- we begin with this car bomb in Ramadi.

What I can tell you right now is, a suicide car bomber exploded outside a police station, killing at least 13 people and wounding 10. It's the second bombing to strike the volatile Anbar Province in less than a week. We're working details right now.

The other story out of Iraq: Who gets the oil money? We're told a key source of bad blood among Iraqi Shiites, Sunnis and Kurds is a subject of what could be breakthrough legislation. Iraq's government today unveiled a measure that would allocate oil proceeds equitably among the provinces based on population size. Parliament still has to approve.

With Iraqi oil fields concentrated in Kurdish and Shiite areas, Sunnis feared they would be high and dry. Some sort of agreement was one of the benchmarks the U.S. had wanted Iraqis to meet by the end of last year.

LEMON: And there are troubling reports about a top U.S. ally in Iraq.

From Jordan comes word that Iraqi President Jalal Talabani is in intensive care, after undergoing a heart procedure. Talabani was flown to Amman yesterday in a U.S. plane.

A hospital official tells CNN that doctors inserted a cardiac catheter, an account being disputed by Talabani's son.


QUBAD TALABANI, SON OF IRAQI PRESIDENT JALAL TALABANI: He has not had a catheter inserted into his heart. His condition, it remains stable and improving.

I have spoken with him this morning, and I have spoken with -- with his medical staff as well. They're very pleased with the progress that he is making. Again, his spirits continue to be high, and is improving all the time.


LEMON: Now, as its president remains hospitalized, one of Iraq's two vice presidents narrowly escaped assassination today. Shiite V.P. Adel Abdul-Mahdi was addressing government workers in Baghdad when a bomb exploded. At least 12 people were killed and 42 wounded. The vice president was treated for minor hand and leg injuries, and he was released.

A top leader of Iranian special forces in U.S. custody in Iraq, that is the word from U.S. officials, who say the Iranian brigadier general was captured in late December in a raid on a home in Baghdad. He's described as the third ranking leader of the Quds Force, the elite paramilitary arm of the Iranian Revolutionary Guards.

Also today, U.S. briefers in Baghdad showed off another hall of Iranian-made weapons, which they say were seized in Iraq.

All right. Let's go now to Allan Chernoff. He is standing by at JFK Airport to tell us about what happened today.


ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: JetBlue is back to a full schedule this afternoon, but not before canceling 66 its flights this morning.

And many people are wondering, especially passengers, why did they go ahead and cancel so many flights, especially since the weather here in New York wasn't really all that bad? We only got about an inch-and-a-half of snow. You can see behind me, it's all gone, the runway a little wet, but, certainly, the snow is finished up with.

We spoke to two passengers who had planned to take a 6:00 a.m. flight from New York to Florida. That was canceled. They ended up on an 11:00 flight. And they feel that they lost a half-a-day of vacation.

UNIDENTIFIED MALE: We don't understand why -- why they cancel so -- this flight, because the weather is not -- it's -- it's clear. So, that's the -- that's the point. Why?

UNIDENTIFIED MALE: It's not that -- it's not that bad, right?


UNIDENTIFIED MALE: So, just two inches of snow, one or two inches of snow.

CHERNOFF: Here is the reason why. JetBlue is now operating much more like other airlines. It made those cancellations in advance. It called the passengers yesterday, so they didn't run over to the airport and just sit and sit.

They had plenty of advance notice. And JetBlue decided to make those cancellations well in advance, and to take the financial hit, so that it would be able to bounce back more quickly. So, it kept a lot of planes in Florida, instead of having them come up here yesterday, sit overnight, and become icicles in the morning, and then the airline would have to spend hours deicing those airplanes.

So, instead, the planes, for example, are in Florida. This afternoon, they are flying up to New York. And JetBlue is able to bounce back quickly, even though it did take a little bit of a hit this morning. This, essentially, is the way that the other airlines operate.

Allan Chernoff, CNN, New York.


LEMON: As one storm leaves, another one comes. If you're already dug out from the latest winter storm, well, you better keep going. Keep that shovel handy...


LEMON: ... because you might need it, Jacqui Jeras.


LEMON: Is that right?

JERAS: Absolutely.

You know, John, it's amazing how similar this storm is looking to the one that just is leaving the East Coast at this time. So, we may have a real doozie to deal with over the next five to six days or so.

It's starting out with wet weather into the valley area, snow into the mountains. There, you can see the rain coming down across much of Northern California. San Francisco is just reporting cloudy skies right now at the airport, but you can see that moisture still lingering into the eastern side of town.

You head on up towards Sacramento, you have also been receiving some light showers. It was a record dry January for you here in Sacramento. And we're making a little bit of progress as we round out the month of February.

You head up into the higher elevations, there you can see the Tahoe area. Here's Reno along I-80, right through the pass there, heavy snow coming down -- winter storm warnings in effect for the Sierras. We're talking a good one to two feet of snow between now and tomorrow afternoon -- so, a lot of hefty weather to deal with there.

That storm system will be progressing eastward gradually -- not a lot going on in Salt Lake City at this hour. But winter storm watches are posted. Expecting to see a good handful-plus of inches of snow in Salt Lake City tonight and into tomorrow.

You get up in the higher elevations of the Wasatch, and we're talking about maybe 10 to 20 inches of snow. Severe weather from this storm, guys, very likely, we think, by the middle of the week. And we may see some more snow and icy mess across the Midwest into the Northeast. So, certainly, a storm we will be class -- tracking very closely in the CNN Severe Weather Center.

LEMON: Jacqui, I like the way you said that: hefty weather. It's certainly hefty.


LEMON: All right.

JERAS: I have a lot of good words for you...



LEMON: Thank you so much for that.


PHILLIPS: Well, save the drama for Bahamas in the Anna Nicole Smith case. A court hearing is under way on custody of Smith's baby daughter, Dannielynn.

Rusty Dornin has been following the case, joins us live from Nassau.

Hey, Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, the hearing just ended. It was a procedural hearing. And nothing happened during that hearing, except for the fact that the guardianship has now been amended to a paternity action.

Now, that's in request -- an answer to a request by Larry Birkhead, of course, and his attorney. They came out of the courtroom all thumbs up, talked a little bit, would only say that they claimed that the birth certificate was a fraud. They said that they feel good about what is going to happen here.

But the media crush here is unlike anything, really, that I have -- I have seen evening during Michael Jackson and Scott Peterson. When Virgie Arthur left this afternoon, there was a crush of photographers. And tourists were jumping on top of the limousine. It was -- it was just really something.

But this is not the only hearing involving Anna Nicole Smith that is going on today. In about an hour, there is going to be another hearing about the house where Anna Nicole Smith lived. Now, the man who originally owned it, G. Ben Thompson, is claiming, it's his house. He wants it back.

And with us is the attorney for G. Ben Thompson. And he is going to talk a little bit about this.

What is your best argument that the house still belongs to your client and not Anna Nicole Smith?

GODFREY PINDER, ATTORNEY FOR G. BEN THOMPSON: My best argument is, we have all the documents. They have been registered in our name.

Apart from that, even the liquidator is saying that the house belongs to us, because he sold the house to us and not to Anna Nicole Smith. The moneys were paid by our client. We have the equities, all the law on our side.

DORNIN: But she is claiming the house was given to her. But is it true that you tried to have her sign a promissory note? Can you explain what happened then?

PINDER: Yes. She was supposed to sign a promissory note on a mortgage, which she refused to do.

Now, you can't have your cake and eat it, too. You can't have a deed of gift, or a gift and a conveyance at the same time, because one is for money, and deed of gift is based on love and affection. There might have been some love, but no more affection.

And, as a result, she had to pay $950,000, which she refused to pay. Hence, she doesn't have the house.

DORNIN: Did she actually tear up that document, too?

PINDER: She tore them up with cuss words.

DORNIN: Now, what is going to happen if it's -- if it rules in your favor, in your client's favor, are -- does not mean that Howard Stern and the baby are evicted from the house?

PINDER: No. Well, you mean when it rules in our favor. When -- when the court rules in our favor, it means that Howard Stern must go.

Now, the baby -- if the baby needs a place to stay, the baby has a guardian ad litem, and social services will allow the baby to remain (INAUDIBLE) reasonable time where the baby can safely be moved to another location.

DORNIN: Now, this hearing is going to go on another week, the guardianship hearing. How about -- do you think that your issue will be decided today? Will you have an answer today? PINDER: I know that I represent all my matters today. Whether we will get a direct answer today from the court, I cannot be sure at this time, because we only have a small window of a half-hour. They moved the case up. But whenever it's decided, we will have the house.


Prell (ph) Pinder, thank you very much, the attorney for the man who claims he owns the house. We will see what happens there. And, as far as the guardianship and paternity action, that will be continued here in the Bahamian courts on March 16 -- Kyra.

PHILLIPS: All right, Rusty Dornin, thank you so much.

And things still aren't settled here in the U.S. In an emotional ruling last week, Florida Judge Larry Seidlin granted custody of Smith's body to Dannielynn's court-appointed guardian, Richard Milstein. Milstein said that Smith would be buried next to her son in the Bahamas.

Today, though, lawyers for Smith's mother, Virgie Arthur, asked an appeals court to overturn that decision. Smith's ex-boyfriend, meanwhile, L.A.-based photographer Larry Birkhead, wants a Florida court to enforce a California judge's orders, so he can get DNA samples from Smith and the body -- and the baby.

LEMON: High-speed police chases, they often break the speed limit. Do they also break the law? That's the question today before the U.S. Supreme Court, which is weighing limits on the use of police force in hot pursuits.

Now, the case stems from a case -- or a chase right here near Atlanta where a police cruiser rammed a speeding driver from behind, causing him to crash, and leaving him paralyzed. Lower courts say the police officer used unreasonable force. But the officer says his actions were reasonable.

Now, we want to hear from you. What limits should be placed on high-speed chases? Send us your responses at

PHILLIPS: A small plane crashes in the water -- one more brush with death for an Olympic champ -- details straight ahead from the CNN NEWSROOM.


The Academy Awards honor film, of course, but they are also a high-profile red carpet parade of fashion. Those stars who stood out and those who fell flat -- when the CNN NEWSROOM comes back.


PHILLIPS: Rulon Gardner cheats death again. The 2000 Olympic wrestling champ and 2004 bronze medalist was in a plane Saturday with two companions, when they crashed near Good Hope Bay in Utah. The three survived. They got out of the plane before it sank.

Gardner talked about it on CNN's "AMERICAN MORNING."


RULON GARDNER, OLYMPIC GOLD MEDALIST: For me, when I jumped actually in the water, you know, I first, of course, after what happened in 2002, I grabbed my coat and I grabbed some of those things I needed. And I started trying to swim away from the aircraft, and both Les and Randy said: Hey, get rid of everything you don't need. It's either your stuff or your life. You need to make a choice right now.

And I was really struggling. I said: Don't leave me. Come back and get me.

And we were trying to figure out which way to go. Do we go for the beach or do we go for, you know, kind of the cliffs and the ledges? And the best option we thought we had was to go to the beach.

And so they said, Hey, just relax, calm down. We're not leaving you. Get on your back, and start doing basically a backstroke.


PHILLIPS: Well, the cause of the crash isn't clear. Gardner has had other close calls, including being stranded in the Wyoming wilderness, and being hit by a car while riding a motorcycle.

LEMON: Geez. Man. Well, it's not just the red carpet, you know. On Oscar night, it's also the world's most scrutinized fashion runway. For many, the question Islamist, who won what, but who wore what? Or, should I say, who wore whom?

CNN's Brooke Anderson, get me out of trouble.


LEMON: Before I get myself into trouble, take it away, will you?


ANDERSON: Let's talk fashion, Don...

LEMON: Yes, go ahead.

ANDERSON: ... why don't we? All right. All right.

I was right there on the red carpet. I could see their stunning styles up close. And now I do want to talk about some of the standouts.

First, Nicole Kidman, she was a presenter last night. And she wore bright red. Some stars really try to avoid red. They don't want to clash with the red carpet, or they don't want to blend in. But she looked fantastic. It was a Balenciaga gown. And she has an exclusive deal with Balenciaga. So, she was the only person at the Oscars to wear that designer.

There she is, with her friend and fellow actress Naomi Watts, who looks lovely in yellow.

Jennifer Hudson, this gal is a star. She won best supporting actress, but I'm sorry to say she is going to appear on some worst- dressed lists today, because of this Oscar de la Renta getup. It was a brown dress with a metallic python bolero. Now, Hudson is currently featured on the cover of "Vogue" magazine. So, for the Oscars, she worked closely with Andre Leon Talley, who is the fashion editor for "Vogue," for this choice.

Hudson actually told me that the red carpet attire was Talley's choice, and that the dress she changed into later for the governor's ball was more her style. So, basically, she is saying, don't blame her.

Jennifer Lopez, a presenter last night, she never disappoints. She wore a beautiful lilac Marchesa gown with a jeweled neckline. Her hubby, Marc Anthony, was a beaming accessory by her side, a very proud Marc Anthony.

Reese Witherspoon wore strapless Nina Ricci. She looked incredible, walked that carpet with confidence. It was a deep purple color.

And now I want to take a closer look at the glamour of last night's Oscar red carpet. You want to hear a little insider secret about the fashion? Some of the stars have exclusive deals with designer, certain agreements to wear certain designs.

And, Don, they have financial incentives. They are actually paid to wear their -- those designs. So, no longer is it just borrowing a dress and then returning. They are borrowing and getting paid to wear the dress.

LEMON: I think we're in the wrong business.


ANDERSON: We must be.

LEMON: Or something like that.


LEMON: Also, a very exciting evening, Brooke, for the former vice president, which we're going to talk about a little bit later on. He won that Oscar last night.


LEMON: Thank you so much for that report. We enjoyed all the fashions.

ANDERSON: Thanks, Don. PHILLIPS: Well, the thrill of the chase, it may be popular TV, but when should cops hit the brakes? Supreme Court considering that issue today. And it's the topic of our e-mail question. What limits should be placed on high-speed chases? Send us your responses,


PHILLIPS: Well, tonight on "LARRY KING LIVE," Larry goes one on one with first lady Laura Bush. Hear what she has to say about her husband, her role, and the war in Iraq.


LARRY KING, HOST, "LARRY KING LIVE": Has the war -- Well, what's a good term? -- worn you down? I mean, the public, obviously, is -- more people disapprove than approve. It's hurt the standing of the presidency.

What has it done to you?

LAURA BUSH, FIRST LADY: Well, of course, it's wearing -- wearing. There's no doubt about it. And I understand how the American people feel, and that they feel like things aren't going like we want them to there.

On the other hand, I know how important it is for us to continue to help the Iraqis, and that to leave now would be a serious mistake. And I really agree with the president on that.


PHILLIPS: And you can see all of Larry's interview with first lady Laura Bush tonight at 9:00 Eastern, only on CNN.

The Postal Service may give us a way to hedge against inflation. It's called the forever stamp.

Susan Lisovicz at the New York Stock Exchange with the details.

Susan, I thought nothing is forever.




PHILLIPS: Oh, yes.

LISOVICZ: I think...

PHILLIPS: I am known to be that.

(LAUGHTER) LISOVICZ: I think we will both be stocking up on these, because I get very confused with the postage rates. That's for sure. They have been changing so frequently.

The U.S. Postal Service proposed the forever stamp last spring. And, today, the Postal Regulatory Commission backed it. Here is how it would work. The forever stamp would sell for the first-class -- first-class rate at the time of purchase, and then it would remain valid forever, at least in theory, even if rates increase. And, well, a rate increase is likely to happen, too.

The stamp would also help reduce the need to buy 2 cent stamps. That can be a real pain. The Postal Regulatory Commission, which is an independent agency advising the Postal Service, also recommended a 2 cent price increase in the cost of mailing a letter. That would boost the price of a first-class stamp to 41 cents. Some of us were just getting used to 39 cents -- Kyra.

PHILLIPS: Isn't that the truth? All right, so when will the changes take place?

LISOVICZ: Well, they still have to be -- these recommendations still have to be approved by the Postal Service.

If that happens, changes could be done as soon as this May. The Postal Service says it is getting hit with rising energy and health care costs, all things that affect millions of other Americans. Since the agency only receives funding from the sale of its product -- no tax-paid dollars are involved here -- a price increase is indeed likely.

Well, when it comes to Wall Street, well, we're not looking at any increases, at least not today. Former Fed Chairman Alan Greenspan said a recession is possible by the end of the year. Those kind of comments don't exactly bolster confidence among investors -- the Dow industrials right now down 23 points, looking at your fourth straight sell-off for the blue chips. The Nasdaq composite, meanwhile, is down 15 points, or half-a-percent.

And that is the latest from Wall Street. I will be back in 30 minutes for the closing bell.

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


PHILLIPS: Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta.

LEMON: And I'm Don lemon.

Al Gore talks a green streak. And Hollywood, well, they pay attention. Could Oscar's approval bode something bigger? Find out right here in the CNN NEWSROOM.

PHILLIPS: Well, "The Departed" arrived in a big way at last night's Academy Awards. It won best picture, and led to one of the night's highlights: Martin Scorsese finally winning a best-directing Oscar, after a 26-year losing streak.


MARTIN SCORSESE, WINNER, BEST DIRECTOR AWARD: Thank you! Thank you! Thank you! Thank you. Please, please. Thank you. Thank you. Could you double check the envelope? Thank you -- I mean, I'm overwhelmed with this honor from The Academy and also the honor of being presented by my old, old friends, we go back 37 years. I'm so moved, I'm so moved.


PHILLIPS: Forest Whitaker won best actor for his role in the "Last King of Scotland." In his acceptance speech he paid tribute to the power of dreams.


FOREST WHITAKER, WINNER, BEST ACTOR AWARD: When I was a kid the only way that I saw movies was from the back seat of my family's car at the drive-in. And it wasn't my reality to think I would be acting in movies. So receiving this honor tonight tells me that it's possible. It is possible for a kid from East Texas, raised in South Central L.A. in Carson, who believes in his dreams, commits himself to them with his heart, to touch them, and to have them happen.


PHILLIPS: All right. Well, if Whitaker was the king of the Oscars, Helen Mirren was queen. She won best actress for her portrayal of Britain's Queen Elizabeth II.

LEMON: One of the biggest stars of the night wasn't a star at all. Well, kind of. Al Gore took center stage when his global warming expo won the Oscar for best documentary. He's not going home with the statue but he's getting all sorts of buzz. CNN's senior political analyst Bill Schneider joins me from Los Angeles. Well the former VP seemed to be playing, certainly seemed to be playing to the crowd. Let's listen to that big announcement.


AL GORE, FORMER VICE PRESIDENT: Even though I honestly had not planned on doing this, I guess with a billion people watching, it's as good a time as any, so my fellow Americans, I'm going to take this opportunity right here and now to formally announce my intention --


LEMON: So, Bill, it was funny. Obviously, it was orchestrated, orchestra included. So is he playing to his constituency here, you think?

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Well, his constituency is here in Hollywood, a lot of them are here. They deeply believe in his cause. They want him to run. But of course he didn't quite make that step. Before the ceremony the question was will he or won't he and after the ceremony the question was did he or didn't he? Well he didn't. He said in an interview on the red carpet with our Brooke Anderson, he said that the moment has passed, he believes. But he didn't just entirely dismiss the possibility. He said I have no plans to run right now. But, of course, moments come back.

LEMON: Yeah, no plans. You've been reporting about it, we all have been talking about the Hollywood, the big stir up over David Geffen. So would Hollywood prefer Gore over Senator Clinton or Barack Obama since that very public feud?

SCHNEIDER: Well there's kind of a civil war going on in Hollywood. People divided over the comments made critical of Senator Clinton's campaign. There is no question, Barack Obama is the hot new star in a town that's very well qualified to recognize star power. And there are questions raised about Senator Clinton, is she electable? A lot of people disagree with her views on Iraq or they don't think she has been forthright enough. So there is a lot, I would say, demoralization or apprehension really that you're having this squabbling in the Democratic Party and that's also driving a lot of people to say, well, if Al Gore stepped in, it would all be over.

LEMON: Yeah and we continue in Los Angeles, you were out and about last night and you actually found some Republicans in Hollywood. What candidates were they talking about?

SCHNEIDER: Well, there are Republicans in Hollywood. I met a number of them. They sort of come up to me at these parties because they know I'm political. A number of them supported John McCain and they still do, but they're a little bit worried about why his campaign doesn't seem to be having a lot of momentum and what are they worried about, they're worried about Rudy Giuliani. He's the candidate who appears to be taking off in the Republican Party. They wonder if he can be nominated, they asked me. Of course it's not up to me to decide. But there are Republicans here. I'd say if Obama is the hot new thing on the Democratic side, Giuliani is the hot new thing on the Republican side.

LEMON: Ok, so I saw you earlier. You had your tuxedo on, bow tie. So you were out hob-knobbing last night I hear at the Vanity Fair party. Vanity Fair is like one of the hottest tickets in town. How did you do that?

SCHNEIDER: Well I have a friend who invited me. It is, in fact, a very interesting party. All of the Oscar nominees were there. There were -- I remember looking around the room and thinking, you know, this is an amazing place. The most beautiful women of the world are in this room. That is, of course, except for the CNN NEWSROOM in Atlanta.

LEMON: Exactly, I was just going to say that.

SCHNEIDER: But there was Nicole Kidman and Gwyneth Paltrow. One of the interesting hazards of being at that party, it was very crowded. These women were wearing these beautiful evening gowns. These gowns have long trains. If you weren't careful you would step on somebody's dress. I did that! A very big star, I stepped on her dress! Oh my goodness!

LEMON: You don't want to tell us who it is?

SCHNEIDER: That was a very big hazard at that party.

LEMON: Obviously, you're not going to spill. I know you probably don't want to.

SCHNEIDER: No, I don't.

LEMON: No, no, no.

SCHNEIDER: But you had to walk very carefully around that room.

LEMON: All right, Bill Schneider, connected in Hollywood. Thank you so much for that. Enjoyed it.


PHILLPS: It took 41 years but Bruce Crandall has his Medal of Honor. As a 32-year-old helicopter pilot in Vietnam, Crandall ferried wounded American soldiers out of the battle at Yadrang, one of the fiercest battles of that war. He saved more than 70 lives. Today in ceremonies you may have seen live right here on CNN. Retired Lieutenant Colonel Crandall received the nation's highest military honor from President Bush.


BUSH: America is in debt to Bruce Crandall. It's a debt our nation can never really fully repay. But today we recognize it as best as we are able, and we bestow upon this good and gallant man the Medal of Honor.


PHILLIPS: Crandall's actions were depicted in the book "We Were Soldiers Once and Young." Greg Canary(ph) actually played him in that movie.

Almost four full years into the war in Iraq, U.S. troops still are leaving loved ones here at home to risk all on the battlefield. Over the weekend, the "Atlanta Journal-Constitution" caught up with a Georgia soldier starting his second tour in Iraq leaving a wife and three daughters behind.


UNIDENTIFIED MALE: Ladies and gentlemen! If I can have your attention one more time! These are troops going back to the war zone! If we could stand and show our appreciation, please! Thank you! UNIDENTIFIED MALE: One of the things I think I do well and I think soldiers do well, the majority of them, is compartmentalize things. And get focused one time is to get focused. And even though it was just a couple of minutes and it was a sad departure, it's behind me now and the only way to get home is to go through the next six months and, you know, that begins with the journey back. And that journey back began when I got in the car to head back this way. And then five more months of work, you know, 15 to 30 days to complete the process and get back home. You can't come home until you've left. So it's just part of the process.

UNIDENTIFIED FEMALE: For months, I've been dreading this part of it because I knew this was when, after the baby was born, that, you know, he would be going back for six months, it would be really tough on me so I've been dreading this, truthfully.


PHILLIPS: You can view that report at the "Atlanta Journal- Constitution" website, the address is It's really beautifully done.

LEMON: More smoking guns for the second time this month, the U.S. military has shown off Iranian-made weapons found in Iraq. Briefers say these weapons were discovered over the weekend in Diala Province. They include armor piercing explosives used to kill Americans as well as Iraqi soldiers and civilians. Earlier this month Americans accused the upper most levels of the Iranian government of being involved. But soon afterwards, the White House and Pentagon acknowledged they could not prove it.

Ultimatum, rejection, economic sanctions. The cycle repeats or threatens to in the Iranian nuke standoff. Today the U.S. and five other nations huddled in London over last week's UN report saying Iran has expanded not abandoned uranium enrichment. The U.S. and Britain say the next step by the U.N. is likely to be just that, a step, not a leap or a bound. They also say the initial sanction sparked a need public debate inside Iran.

PHILLIPS: Pandora's Box, Child's Play, compared to the potential trouble inside a limestone casket that allegedly turned up rather outside Jerusalem.


UNIDENTIFIED MALE: What they've simply done is they've simply tried in a very, very I think dishonest way to try to go and con the public into believing that this is the tomb of Jesus.


PHILLIPS: Straight ahead from the NEWSROOM, do you believe it or not?

(COMMERCIAL BREAK) PHILLIPS: Well, it's a controversy of biblical proportions and I do not exaggerate. A claim that the bones of Jesus and his family may have been found. A new documentary makes an argument that some say could shatter the core believe of Christianity, that Jesus was resurrected and descended to Evan. Titanic director James Cameron served as executive producer of this project and today he explained involvement.


JAMES CAMERON, EXEC. PROD., "THE LOST TOMS OF JESUS": To a Lehman's eye it seemed pretty darn compelling. And as a documentary filmmaker I was very, very attracted to the story. I said I think literally this is the biggest archaeology story of the century. And I still believe that to be true. But I was also, quite frankly, somewhat trepidations about becoming involved for all of the obvious reasons. And I asked myself do you -- do I really want to be -- do I want this in my life, do I want to stand up in front of the controversy and criticism that is inevitable to follow. And my decision ultimately was, as a documentary filmmaker, I should not be afraid to pursue the truth.


PHILLIPS: Well Cameron stressed the film is not trying to undermine Christianity but to celebrate the real life existence of Jesus and his family. Titanic Director James Cameron will talk to CNN's own Larry King tonight. That's after Larry's interview with First Lady Laura Bush. It all starts at 9:00 p.m. eastern, only on CNN.

PHILLIPS: The Jesus tomb claims sets off the latest round in the century's old battle between science and religion. Here is a look at some other findings that may be more fiction than fact.


PHILLIPS (voice-over): Noah's Ark, it's one of the best known stories in the bible. Many people believe the ark came to rest on Mt. Ararat. A 17,000 foot high extinct volcano in Turkey. Modern quests to prove the story have included such high tech devices as aerial photography and satellite images. But so far nothing. Another religious mystery remains just that. The debate over the authenticity of the shrouded Turin dates nearly to the death of Jesus. Many of the faithful believe this linen cloth covered the buried body of Jesus. They contend that if there's markings that appear to be the impressions of a crucified man. Some experts dismiss the shroud as nothing more than a hoax. Their main argument is based on the carbon dating tests which indicate the shroud dates only to the 1300s. Which would be more than a thousand years after the biblical time of Jesus' death? Two years ago, a retired chemist said the carbon tests were valid but only for one small patch. And that the rest of the shroud was perhaps as much as 3000 years old. Now one findings that few, if anyone, disagrees with, the dead sea scrolls. The 850 documents were discovered in 11 caves between 1947 and 1956 -- and are some of the few remaining biblical documents dating before A.D. 100. (END OF VIDEO CLIP)

PHILLIPS: Something else we've been talking a lot about today, the thrill of the chase. It may be popular TV but when should cops hit the brakes?

LEMON: And the Supreme Court is considering the issue today and it's the topic of our e-mail question. What limits should be placed on high-speed chases? Here is what David writes, "The notion that the police are at fault when a criminal tries to run from them is ludicrous. The criminal should not only pay for their crime, but be responsible for any damage done to property or police."

PHILLIPS: And Martha asks, "When will we recognize that automobiles are lethal weapons and that their misuse constitutes an assault on innocent people driving on the same roads as these scofflaws."

LEMONS: Joe Andrew has a different perspective, he writes, "As a police officer I see far too many unnecessary police chases that could have ended tragically. Some police officers don't stop to consider whey they are chasing someone in the first place.

PHILLPS: And Frances goes even further and says, "High-speed chases are almost never worth the risk to other driver's on the road. They should be forbidden unless the criminal is a suspected terrorist." You can always send us your emails, the address is

HENRY: Just about everybody eats out sometime. But eating out and the calorie count, a startling new report on just how many calories are packed into restaurant food. That is ahead right here in the CNN NEWSROOM.


LEMONS: All right, common sense would tell you, you don't order something called a colossal Burger if you want to eat light. But chicken and broccoli pasta? Well, not most people's idea of extreme eating. If you ever eat out, you know menus don't include the nutrition labels that foods do in stores. At least not. CNN's Greg Hunter reports, you don't know what you're missing.


GREG HUNTER, CNN CORRESPONDENT (voice-over): reporter: unlike food manufacturers restaurants aren't required to have nutrition labels on their menus so it's hard to know what you're eating.

JAYNE HURLEY, SR. NUTRITIONIST, CSPI: It's tough to find an entree under a thousand calories and many are coming in at 2000 calories.

HUNTER: Nutritionist Jane Hurley works for a nonprofit nutrition watch dog group. Center for Science and the Public Interest. They have issued a new report called Extreme Eating that contains startling numbers based on information provided by restaurants. Take the Ruby Tuesday colossal burger,1,940 calories, 141 grams of fat. About the same as five McDonald's quarter pounders. That's almost equal to health officials' recommended daily guidelines for an average adult.

This makes McDonald's look healthy.

HURLEY: It certainly does in this case though I'm not recommending anyone eat five quarter-pounders.

HUNTER: Hurley says Ruby Tuesday's chicken and broccoli pasta with cheese and cream sauce isn't exactly light. It contains 2,060 calories with 128 grams of mostly saturated fat.

HUNTER: Are you telling me I can eat this, equals this?

HURLEY: Exactly. To your arteries and waist line, two sirloin steak dinners with Caesar salad and buttered bake potato, the same as one Ruby Tuesday's fresh chicken and broccoli pasta.

HUNTER: Just this would cut the calories in half?

HURLEY: Cut the calories in half, get a sirloin steak dinner.

HUNTER: Appetizers also have plenty of hidden calories, fat and sodium.

HURLEY: One order of pizza skins you could eat three Pizza Hut personal pan pepperoni pizzas, plus a pat of butter for each one.

HUNTER: You would never do that?

HURLEY: Nobody would, but many people would sit down and eat this appetizer at Pizzeria Uno's.

HUNTER: Ruby Tuesday told us it has dishes for those who want to splurge as well as those watching their weight.

RICHARD JOHNSON, SENIOR V.P., RUBY TUESDAY INC.: When they go out to eat, and they're in a Ruby Tuesday, they have a menu with enough variety and enough choice to be able to eat a little or eat larger portions.

HUNTER: Uno Chicago Grill with nutrition kiosks in each restaurant for customers calls menu labeling impractical. They say, quote, "Given the extent of our menu, we cannot conceive of how one could possibly include all the information for each menu item that covers the legitimate needs of every guest. And believe our kiosk, unique in casual dining, offers the best way to keep our guests informed and safe."

In New York City, menu labeling becomes mandatory this fall. Hurley agrees that's a good idea.

HURLEY: People need calorie information right on the menu next to the price so they can make some sort of informed choice.

HUNTER: Greg Hunter, CNN, New York.


LEMON: Time now to check in with CNN's Wolf Blitzer.

PHILLIPS: Stand by, the "Sit Room" he tells us what's coming up at the top of the hour. Hey Wolf?

WOLF BLITZER, CNN ANCHOR: Hi guys, thanks very much. Coming up, how likely is war with Iran? The Pulitzer Prize winning investigative journalist Seymour Hersch says the Pentagon is tentatively planning for a bombing campaign against Iran. You'll hear what Seymour Hersch has to say about that explosive charge.

Also, can't they just all get along? That's the message from California's Governor Arnold Schwarzenegger. He visited Washington today and blasted leaders of both parties for what he called their divide and conquer approach to politics. Also, more on the statue stature issue. Now that Al Gore has got Oscar credibility and Hollywood esteem, might he also have his eyes on the ultimate prize? All that coming up right here in "THE SITUATION ROOM."

PHILLIPS: Thanks, Wolf.

Well first there was the battle over the body, then the baby. Now a battle over the house Anna Nicole Smith shared with Howard K. Stern. South Carolina developer says he owns the waterfront mansion and wants it back. Of course the sticking point, Stern now lives there with the baby. And Smith before she died claimed the house was a gift. A hearing is scheduled this afternoon to sort it at all out. Our Rusty Dornin caught up with the attorney for the developer, G. Ben Thompson.


GODFREY PINDER, ATTORNEY FOR G. BEN THOMPSON: We advised Howard Stern to leave the house and Howard Stern must leave the house. We want a repossession against Howard Stern. With respect to the baby, they have a nanny and they have a guardian ad litem and of course we will allow them to move whenever it's safe for the baby to move.

RUSTY DORNIN, CNN CORRESPONDENT: Now of course he's claimed that your client and your client's son-in-law stole hard disks and items from that house which were later turned over to authorities in the United States.

PINDER: Well, number one, you cannot steal from yourself. That was our client's house so he couldn't steal from himself. More than that I understand that he was given permission before she died that Anna Nicole Smith to remove certain documents from the house which he removed and turned it over to the authorities so other persons couldn't get their hands on them. They're in a safe-keeping place and my client does not want any part of them. He can't be charged with stealing as he didn't deprive anybody of it.

DORNIN: Now we also understand Bahamian authorities are going to travel to the United States to actually talk to authorities there about this. Do you know anything about that?

PINDER: Well, I understand that they will do that but while they're there, they might talk about the situation that happened with Anna Nicole Smith, (INAUDIBLE) investigating modest for the up and coming coroner's report so they will definitely do that. But my client will not be charged with anything because there is no evidence or no law that can convict a man owning his own place of something he took from his place.

(END OF VIDEO CLIP) PHILLIPS: Again, a hearing on the matter is scheduled to start in just a few minutes, 4:00 eastern time.

The closing bell and a wrap of action on Wall Street straight ahead, stay with us.


PHILLIPS: All right, the closing bell is about to ring on Wall Street.

LEMONS: You know what that means, Susan Lisovicz right, standing by with a final look at the trading day. Hey Susan?

SUSAN LISOVICZ: Are you talking to me?

LEMONS: I'm talking to you.

LISOVICZ: I'm the only one here.

LEMONS: Are you talking to me?

LISOVICZ: You know that movie right?

PHILLIPS: The old New York attitude! Now that you all know she's from Jersey.

LISOVICZ: Everybody is quoting taxi drivers today.

LEMONS: Taxi driver, yeah.

LISOVICZ: Great movie, 31 years old. Marty Scorsese, a young Robert DeNiro, one of the many films he made. Not only that of course there is "Casino", "Good Fellas." "The Aviator" from a few years ago. Marty Scorsese and "The Departed", big winners today. But it's our parent company Time Warner that is the biggest winner of the Oscars, 10 Oscars in all for our parent company. Not only "The Departed" also "Happy Feet", the animated film which won an Oscar in that category. "Panz Labyrinth", that was a deal that was done with New Line Cinema as well as "Letters from Iwo Jima." That also won an Oscar. And finally, "Best Documentary Short from HBO." But, Time Warner shares are down on the day guys and so is the market..

PHILLIPS: No bonuses for us.

LISOVICZ: Hopefully we'll see it in terms of better DVD sales in the future. The market closes with a sell off and now it's time for "THE SITUATION ROOM" and Wolf Blitzer.