Return to Transcripts main page

CNN Newsroom

Christie's State of the State; West Virginia Demands Answers; Official: Charges in IRS Scandal "Unlikely"; Farrows Diss Woody Allen Tribute; Alex Rodriguez Sues MLB and Players Union

Aired January 14, 2014 - 09:30   ET

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

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Put these scandal questions in the rear view mirror.

CAROL COSTELLO, CNN ANCHOR: Well, if he does address the scandal, I'm expecting that he will address these scandals -

KING: Right.

COSTELLO: Do you think his tone will be combative?

KING: I know his tone will be apologetic. His tone will be humble. His tone will be, I didn't know anything about these things, but we're going to get to the - going to get to the bottom of them. And that's his duel challenge. You know the Democrats in the state assembly just created this powerful new investigative committee. It has subpoena power. It wants to bring the whole Christie inner circle in. So that's going to ruffle some feather. That's going to, at times, make the governor mad.

At the same time, though, Carol, he needs those Democrats. He wants to extend the school year and extend the school day in New Jersey. He wants to make a property tax relief plan. He wants that for his state. He also wants that for his national messaging as he tries to run for president.

So, remember when Bill Clinton was impeached?

COSTELLO: Uh-huh.

KING: Remember how bad his relationships were with Speaker Newt Gingrich and the Republicans? Yet at the same time he managed to get some things done. Not the exact same political climate, but a similar challenge for Governor Christie. While people are criticizing you, while Democrats are take advantage of this moment to push him and to try to damage his reputation, he has to try to get things done with them as well. It's a big test of his political skills and his leadership.

COSTELLO: John King, many thanks to you.

KING: Thank you.

COSTELLO: Still to come in the NEWSROOM, who can we trust? A contaminated water supply and a very tight-lipped company. Several hundred thousand residents still without badly needed water in West Virginia. When will their water be safe? We'll talk to the man in charge of emergency management in West Virginia.

But first, a quick check on Wall Street. Investors are hoping for a rebound as the markets open for the day. On Monday, the Dow sustained its biggest sell-off since December. Investors have been concerned about the strength of corporate earnings. This morning's report from JP Morgan Chase and Wells Fargo showed the firms topping market expectations.

I'm back in a minute.

(COMMERCIAL BREAK)

COSTELLO: In West Virginia, 300,000 residents just want to know why. Why was a potentially dangerous chemical stored so close to their water supply? Why had the tanks storing this chemical not been inspected for more than 20 years? It's taken four days for some of the water to be clean enough to use around Charleston, West Virginia. Still, only 10 percent can actually drink the water out of their taps. And the company behind it all, Freedom Industry, is, shall we say, radio silent. Jimmy Gianato is the director of Homeland Security and Emergency Management for the state of West Virginia.

Good morning, sir.

JIMMY GIANATO, DIR. WEST VIRGINIA HOMELAND SECURITY: Good morning.

COSTELLO: Would you drink the water in West Virginia today?

GIANATO: Yes, ma'am, I have.

COSTELLO: In the affected areas? Because as I understand it, hundreds of thousands of people still can't drink the water. Only like 45,000 can drink it out of the people affected.

GIANATO: That's correct. That's correct. They're still flushing the system throughout the affected areas and will continue to do so for the next couple of days. The area of - the greater area of downtown Charleston was done last night. And they continue to expand out into zones as part of the plan to flush out the entire system.

We're still providing water, working with FEMA and our voluntary agencies to make sure that the people that are in those impacted areas that can't drink their water still have water this morning.

COSTELLO: This is starting to affect other states as well. For example, Ohio and Kentucky. Some cities within those states have turned off their intake valves because they don't want this chemical to taint their water supply.

GIANATO: My understanding from talking to representatives with the core of engineers is they have been following this column of water. The last intake in West Virginia that it bypasses is in Huntington. And the amount of product there was negligible (ph) yesterday. COSTELLO: Still, this is affecting a lot of people. And then you come to find out that this company, with these storage tanks, hasn't been inspected since 1991. How can that be?

GIANATO: Well, the facility there in - that doesn't come under - under our jurisdiction, but that facility there is not one of the regulated facilities that has normal inspections like that.

COSTELLO: Well, supposedly it's because the chemical stored there is, I don't know, by definition it's a pollutant, not a hazardous chemical. Although I don't really get that because wouldn't it be hazardous if it goes into the water supply and you can't drink the water or you'll be severely sick?

GIANATO: Well, I'm having a hard time hearing you, but I think what you're asking me is the difference between a pollutant and a hazardous material. But this product, you know, based on what we've seen, we took every precaution that everyone felt was necessary to insure that the public was protected. And, you know, part of that is part of our emergency response plans was to take care and provide, you know, drinking water for our citizens, provide the necessary meals if necessary. And, you know, the governor has asked us to take a look at this entire process of how we respond to these type of events, just like we did during Superstorm Sandy and our duration (ph). And we'll look at this and we'll see how we can do things better again.

COSTELLO: Is the company helping at all? Has the company offered to pay for, oh, bottled water?

GIANATO: You know, we haven't gotten into discussions with them as far as reimbursement. Our primary focus over the last several days is trying to make sure that we take care of our citizens and that they have the things that they need. And, you know, we know this has been an inconvenience for a lot of people and it's going to have an impact on a lot of people. And I think it's going to change how we look at things in the future as part of emergency response, not only here in West Virginia, but in other parts of the country.

COSTELLO: Well, it's more than an inconvenience because you - I mean you can't drink the water, you can't bathe in the water, you can't do your laundry. I mean this is causing a real hardship for hundreds of thousands of people. Should the laws be changed?

GIANATO: Well, I think that's something that's going to be reviewed. I think it will be reviewed here in our state. It will be reviewed nationally. And, you know, we'll see, just like every major event, we always look at what happened and look at how we can do things better, what we need to change. You know, we've been through this and other events and we'll continue to do this. And, you know, our goal is to make sure that we do it better the next time.

COSTELLO: And just a final thought, because when you step back and you look at this, West Virginia, its economy is really controlled by the coal industry, right? And this company falls under that purview. So it's almost like we're allowing companies to control what happens in our states. In other words, why wouldn't these tanks be inspected more often? Why wouldn't there be more regulations in place to make sure this kind of thing doesn't happen? Why are we putting our faith in companies, and our trust?

GIANATO: Well, you know, this is a product that was stored at a chemical facility, not at a coal mines, not directly at a coal mines. And, you know, we have a lot of other more hazardous materials in a lot of facilities. So, you know, we were very fortunate that this product wasn't more hazardous. But, again, you know, as part of the review of this, we'll look at, you know, where those products are store, not only this type of product, but others, and how we can do things better. And I'm sure our division of environmental protection, you know, will provide the properly proposals to our legislature to change any laws that they think need to be changed.

COSTELLO: Yes. And just so people understand, this chemical was used to clean coal. So I just wanted to make that clear to our audience.

Jimmy Gianato, thank you so much for joining us this morning. We appreciate it.

Still to come in the NEWSROOM, remember all the outrage and partisan backlash in that IRS political scandal? Well, there may be no charges filed against anyone. A live report for you out of Washington next.

(COMMERCIAL BREAK)

COSTELLO: Allegations that the IRS targeted political groups for extra scrutiny sparked nationwide outrage. It put the Obama administration on the defensive and launched what some called a very partisan probe into how the IRS actually works. But when all is said and done, we're learning this morning that no charges will be filed. Crime and justice correspondent Joe Johns is in Washington.

Tell us more, Joe.

JOE JOHNS, CNN CRIME AND JUSTICE CORRESPONDENT: Hey, Carol.

Well, I think we can say at this stage no charges may be filed. Sources have told CNN at this point that criminal charges are not likely, but we've gotten no indication that the investigation is over.

This news may sound surprising, but making a federal criminal case out of IRS targeting was always a stretch according to some legal experts. They would look for false statements or perjury, but those charges would only stick if someone was found to have intentionally lied to investigator or under oath. Could have looked at alleged violation of civil rights or discriminatory conduct, but then you have to show only conservative groups were targeted. Pretty clear that some progressive groups were targeted as well. And they could have looked at laws against political activity by civil servants, but hard to prove it wasn't just reasonable behavior by a government agency.

The bottom line is, this story was a political bombshell, but difficult for investigators to find a clear violation of law. Now there are people on Capitol Hill who were outraged and have been demanding charges. So we're not likely to hear the end of this, Carol. COSTELLO: But have some rules changed? Some people have lost their jobs or resigned, right?

JOHNS: Absolutely. Yes, some people have definitely lost their jobs. And as I said, this was a huge political controversy. And the question is whether you can make a case and prove it in a federal court of law. Those are two very different things. And so far, at least, we're hearing charges are not likely, Carol.

COSTELLO: Joe Johns reporting live from Washington this morning. Thanks, Joe.

All new in the next hour of NEWSROOM the heartbreaking debate over what happens next to a pregnant woman on life support. She's being kept a live against her family's wishes.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We've seen things out in the field and, you know, we both knew we didn't want to be on life support.

(END VIDEO CLIP)

COSTELLO: This week the family could take legal action, but the hospital says it's only trying to obey state law. The latest on a case that sparked national debate -- all new in the next hour of NEWSROOM.

(COMMERCIAL BREAK)

COSTELLO: Checking our "Top Stories" at 48 minutes past the hour.

Two former police officers have been cleared of all charges in the 2011 beating death of a mentally-ill and homeless man in California. Surveillance video captured the officers beating Kelly Thomas in a transit parking lot. Thomas' mother says the officers got away with murder.

(BEGIN VIDEO CLIP)

CATHY THOMAS, KELLY THOMAS'S MOTHER: Part of me died that night with Kelly. Part of me died that night -- part of me died in court.

(END VIDEO CLIP)

COSTELLO: Defense attorneys argued Thomas struggled with officers and died from heart problems related to drug use.

A close call for a St. Louis truck driver after his trailer was left dangling off an exit ramp on the Poplar Street Bridge. According to reports the truck which was carrying steel overturned after the load shifted in the back. The driver was trapped for about an hour before rescue teams could reach him. Amazingly no one was hurt.

Google says it wants to help improve your home. The tech giant announced Monday that it's buying a company called "Nest Labs" for more than $3 billion. Nest designs appliances like thermostats and smoke detectors that can be controlled by a user's smartphone. The deal is seen as a way for Google to expand its reach into the tech industry.

Singer Katy Perry roars into Beijing. The music was roaring. Katy was crying during her first visit to China. The 29-year-old pop star was brought to tears after an orchestra performed an arrangement of her hit single, "Roar", over the weekend.

(BEGIN VIDEO CLIP)

KATY PERRY, SINGER: Very emotional for me. It made me cry. And really excited me and made me really understand my love for music.

(END VIDEO CLIP)

COSTELLO: The orchestra, made up of more than 100 musicians used traditional Chinese instruments to play the song. After the show, Perry gave the group one of her guitars as a token of her appreciation.

People were watching the Golden Globes in big numbers ratings hit a 10-year high for the award show on Sunday night. But the show was not without controversy and some of that controversy centered around actress Diane Keaton's loving speech about Woody Allen, who received a Lifetime Achievement Award.

(BEGIN VIDEO CLIP)

DIANE KEATON, ACTRESS: I don't know it kind of breaks my heart to think that I have known Woody for such a long time. But it also -- it also fills me with pride and affection and even love.

(END VIDEO CLIP)

COSTELLO: Allen's estranged son, Ronan Farrow took issue with what Keating she didn't say tweeting, quote, "Missed the Woody Allen tribute. Did they put the part where a woman publicly confirmed he molested her at age seven, before or after Annie Hall," end quote.

And now, we're hearing about Mia Farrow's response to that tribute. Nischelle Turner has that in Los Angeles. Good morning.

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: Hi good morning Carol. Yes this one is pretty messy. We're talking yesterday all about the Golden Globe and you're right while the show was on the air, this latest round of drama between Mia Farrow and Woody Allen was playing out on social media.

(BEGIN VIDEO CLIP)

TURNER (voice over): Mia Farrow reigniting a long-standing feud with her ex, writer and director, Woody Allen and bringing personal family history back into the public eye. Farrow displayed her contempt on social media yesterday tweeting "A woman has publicly detailed Woody Allen's molestation of her at age 7. Golden Globe tribute showed contempt for her and all abuse survivors."

Her angry post was aimed at Sunday's Golden Globe tribute to Allen where he was honored with the Cecil B. DeMille Award for lifetime achievement.

WOODY ALLEN, ACTOR, DIRECTOR: I was trying to get things to come out perfect in art because it's real difficult in life.

TURNER: Just before the tribute was set to air, Mia Farrow tweeted that she was changing the channel saying, "Time to grab some ice-cream and switch over to #girls."

Her son Ronan followed suit making no effort to veil his disgust saying, "Missed the Woody Allen tribute. Did they put the part where a woman publicly confirmed he molested her at age seven before or after Annie Hall?"

The two were speaking of Allen's adopted daughter, Dylan, who accused him of molesting her 20 years ago.

CHRISTOPHER JOHN FARLEY, "SPEAKEASY": These are three figures contending about this really ugly issue estranged family members have discovered a whole new social media world in which to torment him and bring up the past.

TURNER: It is all part of the convoluted story that is Woody Allen's personal life. The couple separated after 12 years when Mia Farrow discovered that Allen was having an affair with her adopted daughter, Sun Ye, now his wife. The same year, Dylan, who has since changed her name, told her mother that Allen had touched her inappropriately. Allen denied the claims and the case was dropped in 1993.

But Dylan broke her silence last year in an interview with "Vanity Fair" where she opened up about the alleged abuse and said she regrets never testifying against the film director.

FARLEY: Clearly, this is still a family pain. It unfolds like one of Woody Allen's sort of mid-career movies where all there is, is tragedy.

(END VIDEO CLIP)

TURNER: We should say that Woody Allen was not at the Golden Globes on Sunday to receive hi Cecile B. DeMille award. In fact Katie Couric tweeted that he was sitting across the aisle from her at the opening of the new Broadway show "Beautiful". And we also should add Carol that we did reach out to Woody Allen and his representatives for comment about this and they did not get back to us.

COSTELLO: All right. Nischelle Turner reporting live from Los Angeles. Thanks.

Still to come in the NEWSROOM, a surprising target in A-Rod's lawsuit -- he is not just going after Major League Baseball, Andy Scholes.

ANDY SCHOLES, CNN SPORTS: Yes, that's right -- Carol. He is now going after the player's union. We'll tell you why next in your Bleacher Report.

(COMMERCIAL BREAK)

COSTELLO: A-Rod has filed a lawsuit in federal court to get his suspension overturned. And now, he is taking on a new target -- Andy, whose left?

SCHOLES: Yes, that's right -- Carol. Not many people, right. But in this new federal lawsuit A-Rod named not only Major League Baseball as a defendant but the players union as well. Now A-rod claims the union gave a lackluster effort in trying to help him with his case. He wants the court to throw out the arbitrator's ruling because he says it was biased and the suspension did not follow the rules of the league's joint drug agreement.

The players' union, they have denied the allegations A-Rod's throwing out there and they said they will aggressively defend themselves.

A Massachusetts woman who lost both of her legs in the Boston Marathon bombings is finally running again.

COSTELLO: Look at her.

SCHOLES: Yes, look at her go. Celeste Corcoran received new prosthetic legs last week. And just two days, Carol, after getting them, she was able to run on her own.

(BEGIN AUDIO CLIP)

CELESTE CORCORAN, BOSTON MARATHON SURVIVOR: The first time that I did it myself, like I literally kept saying to myself, I can't believe I just did that. I can't believe I just did that. I just did that by myself.

(END AUDIO CLIP)

SCHOLES: Carol, she is not only running. She is also rock climbing and swimming.

CUOMO: And the interesting thing is, before this happened to her, she hated running. Now, she loves it.

SCHOLES: That's right. I'm sure she did. Good for her for getting up and doing that so soon after getting those new legs.

All right. Now, if you watched the Broncos/Chargers game on Sunday, you probably heard this all afternoon.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Omaha, Omaha, Omaha, Omaha.

(END VIDEO CLIP)

SCHOLES: So, he yelled Omaha, Omaha pretty much before every snap. The city of Omaha, they really liked this. They tweeted there in the game, We certainly appreciate all of the love."

Now Carol, I think if we are going to hear Peyton Manning, everything he says on the field, he probably should go commercial with this right and start yelling Papa John's, Papa John's. That would probably work out for him really well.

COSTELLO: He would make some money.

SCHOLES: Is that right.

Turning on bleacherreport.com right now -- for some, nothing is going to get in the way of watching your team in a big game. Not even in church; not even if you are the pastor.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You may not be aware there is a football game starting in just a few moments. Would you all like to be forgiven for your sins?

That's great. You are.

There is some bread and some wine up here on the table. Feel free to help yourself if you would like to. Go in peace to love and serve the lord.

UNIDENTIFIED FEMALE: Ok, we will. Thanks be to God.

UNIDENTIFIED MALE: I'm out of here.

(END VIDEO CLIP)

SCHOLES: I love this video. The story got 250,000 hits on YouTube -- Carol. The pastor's named Tim Christianson. This was a bit of a joke. He actually did come back there and they had a traditional service.