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Christmas Eve Massacre in Covina, California; Retailers Hoping to Make up Some Ground; U.S. Military Arming Afghans

Aired December 26, 2008 - 12:00   ET

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


T.J. HOLMES, CNN ANCHOR: We will start with that Christmas Eve massacre near Los Angeles.
A total of nine bodies have been recovered, including the body of the suspect, who allegedly committed suicide after dressing up as Santa, gunning down people at a party and then setting that house on fire.

Chris Lawrence in Covina, California, for us now with the horrific details.

Chris, hello to you.

CHRIS LAWRENCE, CNN CORRESPONDENT: Yes, T.J., this house burned down so completely, that the coroner is having to use dental records and other methods to try to identify some of those victims. You can see right now they're pulling some of the cars out of the area from that house, and the search teams are going in, trying to recover whatever evidence they can from what's left of the house.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): Just minutes before midnight on Christmas Eve, a visitor came to this home intending to burn it down.

KIM RANEY, COVINA POLICE CHIEF: There was a knock at the front door, and a gentleman dressed as Santa Claus was at the door carrying a large wrapped package.

LAWRENCE: He carried no gifts. Just two guns and a homemade flame thrower.

RANEY: An 8-year-old girl at the party ran to the front door, opened the door.

LAWRENCE: And he immediately shot her in the face. Police say the fake Santa stepped inside and shot anyone he saw. The family ran screaming from anywhere they could.

LT. PAT BUCHANAN, COVINA POLICE: Through windows, through doors, through windows upstairs off the roof, we talked to almost everyone and any place that they could escape. They were throwing furniture out the windows as we understand.

LAWRENCE: Police say this man set the house on fire, changed out of his Santa suit then drove to his brother's home and killed himself. ROSA ORDAZ, FAMILY FRIEND: It's almost like he planned it, you know, for him to come and do this on such a special night.

LAWRENCE: Investigators say he did. They think Bruce Pardo was upset over his recent divorce. This home was owned by his ex-wife's parents, and friends say it was well known the family would be having their traditional Christmas party that night.

(END VIDEOTAPE)

LAWRENCE: And we're just a few hours away from a press conference by the police to update us on the latest in the investigation. At that point, we may hear more about any possible motive that the suspect may have had, as well as possibly get our first indication of what the 911 tapes said during this just horrible crime -- T.J.

HOLMES: All right. Chris Lawrence out there for us in Covina.

Chris, we appreciate you.

We turn to another holiday tragedy now.

A Hanukkah party comes to a crashing end in Long Island. Fourteen people injured here. Among them, six children, when a car came barreling into a building where Orthodox Jewish families were holding a celebration for kids. About 150 people were inside at the time.

Police say an elderly driver lost control of the car and plowed through the building's plate glass wind. No charges have been filed against that driver.

All right. A lot of the country dealing with -- you know, that's just a little beyond simple winter weather. Don't you think?

In Salt Lake City, Utah, a white Christmas on steroids, somebody decided to coin it. Heavy snowfall made roads extremely dangerous to drive. And today, an avalanche warning is in place for the northern and central Utah mountains.

In Washington State, a sidewalk is in there somewhere. Spokane set a record for snowfall in December yesterday. The total, 42 inches.

Also, in Manchester, New Hampshire, two weeks after that devastating ice storm there, the roads are clear, but still there's no power for thousands of homes. Winds gusting up to 30 miles an hour being blamed this time around for taking out the power and not the ice.

(WEATHER REPORT)

HOLMES: We will turn back to the economy now, issue #1. Holiday shoppers heading back to the stores today. A lot of them walking into the stores with items already to return. A lot of people hoping to walk out of there with items they just bought at the discounts. But preliminary numbers show this may turn out to be among the worst holiday season shopping seasons on record.

Spending Pulse, which is a unit of MasterCard, says the holiday spending plunged 5 to 8 percent between Halloween and Christmas Eve. Now, if you take out car and gas sales, the range dropped to 2 percent to 4 percent.

Well, not surprisingly, luxury goods took the biggest hit, falling 34 percent. Electronics, appliances, particularly items that cost $1,000 or more, tumbled 26 percent over the last week.

Retailers are hoping to make up some ground right about now. They are slashing prices and crossing their fingers, hoping today turns out to be Black Friday the sequel.

Senior Correspondent Allan Chernoff, he's out and about in Garden City, New York.

So, is this going to be another Black Friday?

ALLAN CHERNOFF, CNN SR. CORRESPONDENT: That we can answer very easily. That is an absolute no, T.J.

The J.C. Penney that we're at has been open since 5:30 in the morning. It was not that busy, even though the discounts here are fantastic today. Sixty percent off for many of the items here in much of the store.

The sign over here says, T.J., "Gift to Her." Well, it's a lot easier to gift to her when we're 50 percent off. That might be a hint to you, by the way.

But let me talk to a few shoppers here and we'll see who's doing the buying, who's doing the giving.

Maryann (ph), you did some major purchasing?

UNIDENTIFIED FEMALE: Yes, at Dick's Sporting Goods. It was skee ball on sale. It was $400, now it's $250. So we got that, and had to get.

CHERNOFF: So you saved $150.

UNIDENTIFIED FEMALE: I saw it in the paper two weeks ago at $400. Now it's $250.

CHERNOFF: OK. And your brother-in-law -- Dan, what are you looking to buy?

UNIDENTIFIED MALE: I'm going for the jeans and some clothes for work. I figure J.C. Penney has got great deals normally, so they've got extra percentage.

CHERNOFF: And any returns or not? UNIDENTIFIED MALE: No returns.

CHERNOFF: No. OK. We're keeping what we got.

UNIDENTIFIED MALE: We're keeping it all.

CHERNOFF: All right.

Well, you can see that the deals certainly are plentiful. The returns, there is a line back there. We'll see if we can show -- a few of folks on that line are returning, but the majority, they are out to buy. They are certainly out to get deep discounts here.

So I can tell you at least if the retailers haven't had a great season, the shoppers are certainly having a lot of fun right now enjoying those discounts -- T.J.

HOLMES: Well, we hope it works out for the retailers. And you're right, deep discounts, 60 percent, 50 percent. Even if you don't need something, that's a reason to buy something if you get a good deal on it.

Allan, we appreciate you and appreciate your help, as always, showing me where the deals are. Thank you so much.

We will turn now to the Pakistan/India conflict. Pakistan is on the move right now. Their troops are, at least. Military officials telling CNN troops are being deployed along the Indian border amid fears of incursions by Indian troops.

Pakistani forces are coming from the country's western border with Afghanistan, where they've been battling Taliban and al Qaeda militants. Pakistan put all their troops on high alert amid escalating tensions with India over those terrorist attacks last month in Mumbai. India blames the deadly assault on militants from Pakistan.

Well, to that war in Afghanistan now. The U.S. military planning a strategy similar to the one used in Iraq, and that one was used successfully. They'll arm local Afghans to help fight the Taliban. So will it work there?

Our Pentagon Correspondent Barbara Starr taking a look.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): It worked in Iraq, arming and paying tens of thousands of former Sunni insurgents to fight al Qaeda. The tactic was a major reason for the drop in violence, but will the same idea work in Afghanistan?

The U.S. military now plans to help the Afghan government arm local Afghans to fight the resurgent Taliban. U.S. military officials say it will begin early next year in Wardak Province, and area in central Afghanistan where insurgents have found a safe haven. It's all part of a new U.S. counterinsurgency strategy commanders are presenting to the incoming Obama team. It's an open admission. Even the plan to potentially double the U.S. force with up to 30,000 additional troops won't be enough.

MAJ. GEN. MICHAEL TUCKER, U.S. ARMY: There's a big push for us to reach down in cooperation with the Afghan government to touch people in their villages. As you well know, the center of gravity in a counterinsurgency fight is the population. And so we need more forces.

STARR: But there are worries putting more weapons in the hands of local communities could lead to tribes fighting each other instead of the Taliban. U.S. troops could get caught in the middle. And President Hamid Karzai's weak government in Kabul would bear the major responsibility for ensuring this new local security force remains loyal.

(END VIDEOTAPE)

HOLMES: All right. And our Pentagon Correspondent Barbara Starr with us now from Washington.

Barbara, this might sound familiar to some people. The U.S. military arming Afghan fighters? This is not the first time we've seen this, is it?

STARR: It is not indeed, T.J. You're absolutely right.

You know, a lot of people might remember several years ago, back in the Reagan years, the U.S. armed local fighters, if you will, inside Afghanistan. Those people were the Mujahideen that were fighting the Soviets at that time. And a lot of people will tell you that that era led to the rise of the Taliban and Osama bin Laden inside Afghanistan. So there's a lot of caution here, once you start arming, what might happen as a result of that -- T.J.

PAYNE: All right. Barbara Starr for us. Again, our Pentagon correspondent for us from Washington.

Thank you so much.

Turn back to some of this holiday gift giving. You appreciate the thought. You really do. But you know I can't really use a glow- in-the-dark tie. I can't do anything with that.

We've got some tips, though, for making the most of your holiday gift returns.

(COMMERCIAL BREAK)

HOLMES: Well, can't wait to hit the malls? Well, a lot of you want to get out there and take advantage of those deep discounts. Others want to return those unwanted gifts.

We've invited the king of returns to make sure you have many happy returns. That's Ron Burley. He's a longtime consumer advocate and author of the book that's titled "Unscrewed: The Consumer's Guide to Getting What You Paid For." He joins us from Portland.

Thank you for the opportunity to say unscrewed on TV, sir.

Let's see here. We've got a couple of angles to take.

One is a matter of etiquette, I guess. I mean, how do you deal with a person who's given you a gift that you obviously do not like and you want to take back? How do you do it in such a way that you don't hurt their feelings that you want to take back that ugly sweater?

RON BURLEY, AUTHOR, "UNSCREWED": Hey, T.J. It's great to be back on.

Well, the first thing, if you get that really awful sweater, what you want to do, if you don't have a gift receipt in the box, get the awful ancestry. I mean, ask them.

HOLMES: What does that mean?

BURLEY: Say, "It's beautiful. It's beautiful. Where did you get it?"

And they'll tell you. Remember that, and then later on, today or this weekend, go online and search the prices so that you can print that out and take it back to the store.

HOLMES: But don't you need to tell the person that you're taking it back? Isn't that part of it? Don't you need to at least say, "Hey, I'm going to return this" and not just be so secretive about it?

BURLEY: No. Absolutely not.

HOLMES: No? OK.

BURLEY: That is not part of the holiday etiquette. This is about making them feel good, receiving the gift. It's about making them feel good, not making them feel like they made the wrong choice for you.

HOLMES: OK.

BURLEY: So you tell them that you love this present, that you adore it, and then you can take it back. Or, of course, the notorious re-gifting. That's always a possibility, too.

HOLMES: But what if that person is in your household, or a very close friend or a very close relative who will know that you're not wearing what they bought?

BURLEY: Well, hopefully a lot of us have a lot of clothes. And of course, if you got that Christmas sweater, you know, you have a year to do this. And of course, some terrible accident could always happen to it. HOLMES: Oh my goodness.

BURLEY: But if you're going to go back to the stores, though, the first thing that you want to remember is not to go today.

HOLMES: OK.

BURLEY: This is Boxing Day, that British holiday. But this is the absolute worst day.

From years of experience now, I'll tell you that for you to go back, T.J., take your sweater back. That's going to be this Tuesday, December 30th.

HOLMES: OK.

BURLEY: And if you can, at about 10:30 in the morning. That would be the best time when the clerks are the least harried and the lines are the shortest.

HOLMES: OK. But -- and also, when you get in there, is it not enough just to have the item and the receipt? And maybe even it'll still have a sticker on the item. You still need to take it in there in a nice little package and present it in such a way that they want to take it back?

BURLEY: Absolutely. This is called selling the return.

What you want to do is, believe it or not, some people try and go in and pull a scam in reverse by returning used merchandise to a store after the holidays. So you want to make sure that it's packaged up nicely, in the original store bag. If you don't have the receipt, this is particularly important.

Sometimes you have name brand merchandise from a store. You can tell what store it came from. But pack it up nicely, and also look nice.

This is not the time to go in in your sweatshirt and jeans. Dress a little nicely so that you look credible when you're telling your story about the return. And if you're a regular customer, make sure you tell them that.

HOLMES: OK. But one more thing on this point. You shouldn't have to sell it. If you've got a receipt and you've got your item, take my stuff back and give me my money, or give me a return. I mean, is it -- at the end of the day, if you've got a receipt and you've got the item, you're good to go.

BURLEY: Well, absolutely.

HOLMES: OK.

BURLEY: But stupid business decisions are made every day, and one of the things that -- you run across a clerk, and if you are nice, if you're the nice one, you're going to be the one that gets treated nicely, because there are a lot of people that are yelling at them. You don't want to take it out on that clerk, because they're not the ones that make the policies.

HOLMES: All right. Well, one more thing I have to get in here, the last thing.

When do you recommend just sucking it up and just keep the gift, no matter what? You might think it's ugly. You might never wear it. At what point do you just say, fine, I'll keep it? And under what circumstances do you just eat it?

BURLEY: Well, the thing is that, if it's going to take you more time, trouble and effort to return it than you think it's worse, absolutely. And of course, there's always re-gifting.

But I can tell you, T.J., there's one thing that I am not going to return this year, because I happen to have the Tony Harris 2009 Hunk of the Month Calendar.

HOLMES: Oh wow.

BURLEY: Look at this. You know, your buddy will love it. Mr. March.

HOLMES: Oh wow. Oh, look at this. Mr. March, 2009.

BURLEY: Hunk of the Month man.

HOLMES: I know they're flying off the shelves. And no, you can't take that back. That is a collector's item.

Sir Ron Burley, I appreciate that. He will love that. I'm sorry he wasn't here to see it.

But again, the author of "Unscrewed: The Consumer's Guide to Getting What You Paid For."

Sir, I thank you for being with us. Enjoy the rest of your holiday.

BURLEY: Hey, glad to be with you, T.J. Take care.

HOLMES: All right.

Well, will a proposal to make the U.S. more energy efficient helping stimulate the economy as well? We'll get some answers in today's "Energy Fix."

Hunk of the year, that's...

(COMMERCIAL BREAK)

HOLMES: Well, across Indonesia, thousands gathering to remember what happened four years ago today, the day after Christmas, 2004, when a powerful earthquake in the Indian Ocean triggered tsunamis. More than 230,000 people killed, more than half of them were in Indonesia. Many were tourists.

What followed was one of the largest relief operations ever, rebuilding entire communities. Today, the Sri Lankan government observed two minutes of silence for tsunami victims, and commemorations were held on beaches from Indonesia to India.

Well, after President-elect Barack Obama takes the oath of office next month, an economic stimulus plan is likely to be his top priority. And energy efficiency could be a big part of that package.

Diane King has our "Energy Fix" from New York.

Good morning to you, Diane. Good afternoon, I should say now. Hello.

DIANE KING, CNN CORRESPONDENT: Yes. Hello, T.J.

Well, the economic recovery bill could top $800 billion and include everything from tax breaks to road repairs. But don't be surprised if energy projects are also featured prominently. President-elect Obama campaigned on a pledge to create five million new jobs over the next 10 years by investing in clean energy, and conservation projects can be done relatively quickly using existing state and local agencies.

Now, the electric utility industry and a handful of environmental groups are pushing one possible plan that would devote more than $30 billion in stimulus money to making the nation more energy efficient. Three billion dollars alone would be devoted to encouraging energy efficiency at home. That could include rebate checks for buying energy-efficient appliances.

Another $6 billion could be spent on retrofitting public and commercial buildings for energy efficiency. Projects at schools, construction of a better electric grid and low-income home weatherization are also part of the proposal -- T.J.

HOLMES: About $30 billion there. You say $30 billion; $30 billion sounds like a lot of money.

Before we started talking about $700 billion needed for some of these bailout plans and another several hundred billion for a stimulus plan by Obama when he gets in office. So is $30 billion that we're talking about here, is that really going to be enough to get the job done?

KING: Well, a lot of people say yes. Now, the Alliance to Save Energy, the group calling for the $30 billion, says its plan will create directly 190,000 jobs. General contractors are also on board.

One trade association says every $1 billion spent on infrastructure creates nearly 30,000 jobs. But there are no guarantees. Critics say there's plenty of potential for waste here and these projects could take a long time to start up at time when we need to rev up the economy quickly. For more energy fixes, check out CNNMoney.com.

T.J., back to you.

HOLMES: All right. Diane King for us with today's "Energy Fix."

Thank you so much.

Well, a lot of kids out there looked under the tree, they open the gifts, and it was a Wii game. They got it for Christmas. Maybe the Wii console. Well, find out why the military is taking such a big interest in this high-tech toy.

(COMMERCIAL BREAK)

HOLMES: All right. The day after Christmas, not a whole lot of movement right now at the Dow. Up 15 points. I was told just a short time ago that the Nasdaq was up by a point as well.

So not a whole lot of movement right about now. Kind of a slow day. And sometimes we'll take that.

President-elect Barack Obama, he's taking time out from Christmas celebrations with his family to visit U.S. troops and their families. Obama is continuing his vacation in Hawaii. His vacation equals an assignment for Senior White House Correspondent Ed Henry.

Ed, we give you a hard time. Everybody's been messing with you about this assignment. But you know, you were following those folks around when they were in Iowa and cold places on the campaign trail. So you know what? Maybe you deserve this little break here.

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: Well, Merry Christmas, T.J. But you know, it was pretty cold in Chicago. As you know, I was there a couple weeks ago for Thanksgiving, in fact. So it's two holidays in a row. So I get something for that.

And, you know, the holiday was spent, by the president-elect and his family very quietly, privately at the ocean-side home they're renting right now here on the island of Oahu. They had their traditional family dinner, which aides say is turkey and ham they usually have on Christmas. They also, of course, exchanged presents, although Obama aides say their lips are sealed on what was given, what was reserved. Again, they're trying to keep some of those details private.

But the only time the president-elect went public, as you noted, is when he went to a Marine base here in Honolulu and basically met with both Marine and Navy personnel. They were getting ready to have their own holiday dinner and the president-elect wanted to thank them for their service. Obviously we talk a lot about the economy, about the financial crisis. But, obviously, national security could end up defining the president-elect's presidency when he's actually sworn in.

And you have two wars going on right now. They're heading in opposite directions. Iraq, security is improving. Afghanistan, security is deteriorating. He's going to have to deal with some big campaign promises he made on Iraq. Barack Obama promised to pull out all combat troops within 16 months. Liberals want to make sure he keeps that proposition. Conservatives are wondering whether he should hold off on that promise to make sure that security, you know, gains don't slide back if he pulls out troops too quickly.

In Afghanistan he promised to increase the number of U.S. boots on the ground. Though there are some experts who wonder whether an Iraq-style surge really can work in Afghanistan. So these are some big time challenges he's going to be facing in the new year, but he doesn't get sworn in until January 20th right now. So for now, things a little bit slow still here in Honolulu -- T.J.

HOLMES: A little bit slow.

What's on tap, we'll just ask you before you get out of here, for New Year's? When are you guys coming back? I say you guys like you're all on vacation there together or something. But when do you all -- when does everybody head back?

HENRY: Everyone heads back on January 1st.

Initially, T.J., the president-elect was only going to stay here, I think, until December 30th, ring in the New Year either in Chicago or Washington, probably Chicago. But instead, you know, in news that we really took in a very tough way, we had to stay here two more days.

So we're going to be here New Year's and January 1st as well. I know you love that, T.J.

HOLMES: Yes. Yes, I'm sure he put it to a vote of press corps there, who wants to stay a couple extra days. All right.

HENRY: I voted yes.

HOLMES: I'm sure you did. Ed Henry . . .

HENRY: I do not want to be voted off this island yet, T.J.!

HOLMES: Ed Henry, we get it. You're having a good time. Fine. All right. We'll let it go.

Hey, as always, good to see you. Enjoy the rest of your holidays.

HENRY: Thanks, T.J.

HOLMES: Well, we turn now to President Bush. He's headed to Texas to ring in the New Year. The president and first lady, there you see them, leaving Andrews Air Force Base this morning after spending Christmas at Camp David. The president returns after New Year's holiday for his last week in the White House and some Americans will be happy to see him leave. In a new CNN/Opinion Research Corporation poll just released this hour, 75 percent of respondents say they're glad the president is going, 23 percent say they will miss him. A third say the president should remain in public life after he leaves office, 66 percent saying that he should not. And we will see what he decides to do.

Well, this year's teenager may be next year's soldier. Skills learned in front of a popular gaming console may soon follow recruits to the military.

Here now CNN's Chris Lawrence.

(BEGIN VIDEOTAPE)

LAWRENCE (voice over): A gun in one hand and a Wii in the other. It's one possible image of the 21st century soldier. Engineers are modifying the video game's remote to move military robots.

UNIDENTIFIED MALE: It's as natural hand/eye coordination. It's not looking at the keyboard or typing and getting the motions from typing.

LAWRENCE: The Army uses robots to dismantle explosives and keeps soldiers at a safe difference. But the controllers are big, bulky and the operator has to focus on 40 or 50 buttons. That's a potentially deadly distraction during battle. The Wii-mote (ph) would use an infrared beam to instantly match a soldier's motions with the robot's movement. Potentially it's small and lift enough that the infantry could use it to, say, send robots into a building ahead of troops. But the Wii's greatest benefit could be its biggest drawback. The same way gamers accidentally throw controllers into their TVs, engineers have to account for a soldier's natural body twitches.

So the goal ...

BOB QUINN, TALON ROBOT OPERATIONS: Is to make sure you're not having misguided, unintentional movements of the body, make those changes in the robot and have the robot act chaotically because it's sensing that its being moved when the soldier really has no intention of moving it.

LAWRENCE: Bob Quinn works for the company that's helping integrate the Wii. He says developers still have to extend the range of the controller and make sure its signal can't be hacked.

QUINN: And allow for the soldier to be able to make those movements without the enemy bringing out their own controllers and taking over control of the robot.

LAWRENCE: The company tells me they could turn the prototype into a working unit within a year. The Pentagon doesn't move quite that fast. The Army has to test it, allocate the money. So it will probably be at least three years before it's actually unavailable to soldiers.

Chris Lawrence, CNN, Los Angeles.

(END VIDEOTAPE)

HOLMES: Well, young people have a lot to worry about these days, including how to pay for college in these tough times. But not everyone is taking it on the chin.

(BEGIN VIDEO CLIP)

TONY HARRIS, CNN ANCHOR: Anyone else rethinking college choices because of these difficult economic times?

UNIDENTIFIED FEMALE: No.

UNIDENTIFIED MALE: Well, I'm . . .

HARRIS: No, she's not.

UNIDENTIFIED MALE: She's standing in her ground.

UNIDENTIFIED FEMALE: I refuse. Our leaders are ...

(END VIDEO CLIP)

HOLMES: Oh, yes, class is in session with Tony Harris, next.

(COMMERCIAL BREAK)

HOLMES: Well, so many Americans have seen their job goes up in smoke in these tough economic times. But our John Zarrella has found a 100-year-old cigar company determined to keep on rolling.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT (voice over): You're looking at rare sight. A cigar being made in the United States. Most of these jobs have gone overseas. But the family that has run this factory for generations says the workers are just as important as the bottom line.

For 36 years, C.J. Sjoblom has been rolling her own and driving 160 miles a day to do it.

C.J. SJOBLOM, CIGAR FACTORY WORKER: I've been told I'm nuts.

ZARRELLA: Sjoblom works here at the J.C. Newman Cigar factory in Tampa. It's the only cigar company left in the United States that's still owned by the founding family. While workers around country are losing their jobs every day and factories closing, the 100 employees here are not a bit worried.

SJOBLOM: Because they care. It was something their daddy wished to never end. And they keeping his -- keeping it going for him, and for us.

ZARRELLA: The Newman's do make some cigars in Latin America. If it were simply a matter of the bottom line, they say they could save money, a lot of it, manufacturing all their cigars down south. But this is more than a business, they insist. It's family.

ERIC NEWMAN, PRESIDENT, J.C. NEWMAN CIGARS: They come to work every day. They're loyal. And they're supportive. And we feel we have an obligation to them to continue manufacturing cigars in our factory in Tampa.

ZARRELLA: The employees and management meet regularly, sharing ideas on saving money. From simply doing away with Styrofoam drinking cups, to focusing on using every bit of tobacco, by cutting it as close to the edges as possible. It's not easy. I tried.

SJOBLOM: But this is the way you pick it up.

ZARRELLA: Am I doing it right?

SJOBLOM: Yes.

ZARRELLA: They maybe 35,000 cigar as day here. I'd be lucky to knock out five.

What do you think?

SJOBLOM: Pretty good.

ZARRELLA: That's not to bad, huh?

Darryl Gordon has been at Newman 26 years.

DARRYL GORDON, CIGAR FACTORY WORKER: They're doing a lot for us, to keep us working, even though the economy is in a bad situation right now.

ZARRELLA: Management and employees working together. Not a novel idea, but one that has kept this business rolling.

By the way, the cigars I made didn't pass inspection.

So many jobs across the nation are going up in smoke. The workers here say their livelihoods are protected by a tradition and a promise that dates back more than 100 years.

John Zarrella, CNN, Tampa, Florida.

(END VIDEOTAPE)

HOLMES: Well, how do you save for college in such a bad economy? Parents asking that question right now.

And with the answers, CNN personal finance editor Gerri Willis.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: T.J., college costs keep rising. The college board says tuition at a private four-year college is up 6 percent from last year to $25,000. Public college tuition is up almost 6.5 percent. If you haven't set up a college savings plan for junior, right now is the time to do it. And here's how to get started.

One of your best tools could be a 529 plan. These are state-run accounts that allow you to invest after tax dollars to cover your child's college costs. The money grows tax deferred and it's used for qualified expenses. It's not taxed when you take it out of your account.

Moat 529 savings plans offer a menu of age-based portfolios and some also offer a small selection of stock and bond funds. Investment minimums are low. $25 in some cases. And there is no restriction on how much you may contribute every year unless the account is nearing a lifetime cap, which can range from $100,000 to $400,000. Those are the benefits.

The down side -- fees. Although fees are headed lower now for the most part, you'll still want to pick a plan with administrative fees below 1 percent. And that means you'll likely opt for a direct sold plan rather than a broker sold plan, which can be more expensive.

Shopping around can be overwhelming. Consult Web sites like savingforcollege.com for the details of your state's plan and consider the following plans recommended by the Web site finaid.org. New York, Minnesota, Missouri and Michigan plans are particularly good for state residents, according to finaid.org.

If you already have a 529 and you're concerned about the impact of the market on your returns, consider this rule of thumb. If your child has eight years or more before college, having 50 percent or more in stocks is still your best bet to grow your money at a rate faster than college cost increases. By setting aside money over time, you can get a handle on college bills. Be sure to start early, though. The longer your money has time to grow, the more you'll have when college time draws near -- T.J.

HOLMES: All right. And there's our Gerri Willis with some tips on how to save for your kids' college education. But are your kids worried about it themselves?

CNN's Tony Harris found out that actually, yes, they are. "Class in Session."

(BEGIN VIDEOTAPE)

DEMARIUS, 12TH GRADE: I can strongly attest to the fact that like not having money makes you a lot more creative. And this country, I think, is going to get really creative.

HARRIS: Because we have to.

DEMARIUS: Because we have to.

TAYLOR, 12TH GRADE: Two things are going to happen. One, teenagers are going to start caring more and, two, adults around the world are going to realize that we messed up. I was born in this year which sets me up to be where I am now. But our parents made these decisions. And our leaders, our past leaders, made these decisions. And it's not me blaming them. It's me taking what they've done and saying, I'm going to fix it later. And every teenager in the world who's going to have to fix it later is going to finally say, I'm going to help fix it.

HARRIS: How many of you are concerned about your education choices moving forward? You finish up high school. Perhaps had you a vision of where you'd like to attend college. And how many of you are running into the reality now that -- really? Really? That your first choice may not be the choice any longer?

UNIDENTIFIED MALE: Yes. Yes.

UNIDENTIFIED FEMALE: Every senior in this room.

UNIDENTIFIED MALE: Yes.

HARRIS: Every senior in the room?

UNIDENTIFIED MALE: I used to want to go to Georgetown.

UNIDENTIFIED MALE: I used to want to go out of state.

LAUREN, 9TH GRADE: Well, I like New York University for a while and my sister wants to go to a really expensive college as well and so my mom just kind of laughs when we talk about it. And she's like, well, you know, scholarships, kind of hard to get.

MICHAEL, 12TH GRADE: What has become a college education in this country was just also another example of American profligate (ph) spending because like you look at people who would go to these expensive schools that were way beyond their means and leave with $50,000 worth of debt. And, I mean, that's not sustainable.

BEN 12TH GRADE: I know a guy that -- he went to Harvard and still 40 years later, even with the higher skilled job that he got from that, he's still paying off his college debts.

HARRIS: Anyone else rethinking college choices because of these difficult economic times?

TAYLOR: No.

UNIDENTIFIED MALE: Well, I'm . . .

HARRIS: No?

UNIDENTIFIED MALE: She's standing in her ground.

TAYLOR: I refuse. I mean -- I'm not going to give up the opportunity to obtain a prestigious college where I know I want to get this really good education because I can't afford it. I'm going to do everything in my power to do every other alternative to make sure I can go to that school. I'm sorry, I wanted to go to an ivy league school since I was like seven and I'm not -- I know that times are different. That doesn't change my aspirations later. I'm going to do whatever it takes. I will write at many college essays. I will do whatever I have to do to get that education, you know?

(END VIDEOTAPE)

HOLMES: Do what you got to do. Again, that was our Tony Harris reporting. Next week on "Class in Session," here what these bright kids have to say about terrorism and war. Tony is back from vacation with more from these deep thinkers. That's a week from today, Friday at noon Eastern Time.

Well, he is a deep thinker himself at 100 years old. Not Tony. But a composer who keeps the music playing on.

Pulitzer Prize winner Elliott Carter, he's our inspiring mind this week. You'll see why.

(COMMERCIAL BREAK)

HOLMES: Every Friday we like to honor the people who inspire us. And we call them, hence the name "Inspires Minds." This week our team has chosen Elliott Carter. He turned 100 this month. And the Boston Symphony performed his latest composition. Take a quick listen.

Carter has actually won two Pulitzer Prizes for his music and has never stopped composing. It wasn't always so easy for him, however. Critics used to walk out on his symphonies. They thought his music has too much dissidence in it. But he was ahead of the times, actually. Hear what he had to say recently about what music means to him.

(BEGIN VIDEO CLIP)

ELLIOTT CARTER, COMPOSER: Music should not only give pleasure, but it should widen one's horizon and give new kinds of fantasies and news kinds of pleasures, and new kinds of surprises, and new kinds of connections between things.

(END VIDEO CLIP)

HOLMES: Carter is our "Inspiring Mind" because of those two Pulitzer and he keeps composing despite early criticism, following his own heart.

So this holiday season, CNN photo journalists are brining us stories that focus on giving. For about 75 years, starting in the mid 1800s, more than 200,000 homeless and abandoned children from the east were put on to trains headed west, hoping someone would give them new homes.

And CNN photojournalist John Toragori (ph) shows us one man's story of loss and redemption aboard the orphan train.

(BEGIN VIDEOTAPE)

STANLEY CORNELL, ORPHAN TRAIN RIDER: They called it orphan train riders that rode the trains looking for mom and dad. Like I did, my brother and I. And now that she's passed away and she's passed away. These are the ones that are in Colorado that were orphan train riders. We can only account for about 15.

My first feelings is I remember standing by my mother's bedside when she was dying. She died from tuberculosis. She knew she was dying and she probably said, be good to your daddy and all that. That was the last I saw of her.

The state sent out someone to check on us to see if he was making enough money to take care of us. Well, he wasn't. So they told him he'd have to give up the boys.

This is Victor. Vic and I, was doing time, we was in the orphans' home.

It was kind of rough in the orphans' home. The Children's Aid Society was a wonderful thing for taking those street urchins (ph). This is the type of engine train that took us out to New York City, out to Wellington, Texas. That's where our dad happened to be in town that day. He just bought him a new Model T Ford from a friend that was with him and said, you've been wanting two boys. You got two girls. Mr. Deter (ph), you ought to go down and look those boys over.

We was the last ones holding hands together in the circle, in the motel -- lobby of that motel because there was a blizzard outside. That was December 10, 1926.

And this is a picture of my mom and dad now that gave us a home. Dale Deter and Ethel Deter. They treated us just like we was new gold, you might say. It was just like there was no one quite like us. We was really accepted in full faith. We lived on a farm. We had our own ponies to ride to school.

DANA CORNELL, STANLEY'S ADOPTED SON: The orphans' train, it was amazing how many children were actually on all the orphan trains. The areas that they went to, which was all over the United States.

S. CORNELL: That pick that up? Yes. Sounds like old times.

D. CORNELL: I don't think Vic and Stan could have had better parents.

S. CORNELL: This new home really hits the spot.

D. CORNELL: I kind of can relate to that because dad adopted Dennis and me.

S. CORNELL: I think it was like to grow up without parents. We had a good, good home. Oh, very grateful. Always have been. Always will be.

UNIDENTIFIED MALE (singing): We have rode the orphan train. Take us in, we need a home. We need a name.

(END VIDEOTAPE)

HOLMES: All right. Well, stay tuned for this next one. The ladies will love it. What do monkeys have in common with your boss? Maybe more than you might think.

(COMMERCIAL BREAK) HOLMES: All right. Maybe you've seen this guy before. Maybe you have him in your office. The boss who struts around the office screaming orders and whatnot. Perfectly normal. Or so says a recent study that compares men to monkeys. I fought to not have this story in the show, but I digress.

And here now is reporter Sasha Herriman.

(BEGIN VIDEOTAPE)

SASHA HERRIMAN, CNN CORRESPONDENT, (voice over): Look familiar? That great animal display? Spotted it somewhere before?

According to research, bosses, just like animals, like to mark out their territories. They like to assert their authority.

The study, carried out at the University of New South Wales, interviewed hundreds of managers and employees in a range of industries about a similar focus on hierarchy.

PROF. CHRIS KNIGHT, ANTHROPOLOGIST: Chimpanzees will go -- ooh, ooh, ooh, ooh, ooh.

HERRIMAN: So, while your boss might now actually sound like that, according to Anthropologists here in the U.K, the meaning is the same.

KNIGHT: Well, it's just showing off. Showing off how big you are. And you can do it in all kinds of ways. You can build huge office blocks (ph), like (INAUDIBLE), just to show off what results he can afford to waste. And a gorilla, you know, pounding his chest, or a chimpanzee tearing off branches is just saying, look, I've got all this energy which I can afford to expend on just like intimidating you (INAUDIBLE).

GILLIAN FORRESTER, PSYCHOLOGIST: What, we share 23 million years of evolution with great apes and have only had a much more recent divergence in the last 6 million year. So there's invariably going to be a lot of similarities in the way that we behave and we communicate. And, in fact, the way we navigate social hierarchies.

HARRIMAN: The bright colored plumage and body parts, read (ph) power suits and ties, bigger chair, louder voices, that's because being territorial still helps you survive. Alpha male are hard wired to be brash and bossy. But less we think we've not evolved over the last millennium, there's some encouraging news. While the non-verbal communication is a relic of our forbearers (ph) ...

FORRESTER: One of the major differences between us and great apes, obviously, is that we evolved to develop and acquire human language.

HARRIMAN: Well, that's a relief. At least 6 million years makes a bit of difference. Now, where's my banana?

Sasha Harriman, CNN, London. (END VIDEOTAPE)

HOLMES: Well, I'm T.J. CNN NEWSROOM continues right now with Richard Lui.