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CNN Live At Daybreak
Look at What's Being Done to Prevent Voter Fraud in 2004 Presidential Election; Attempts by Authorities to Ensure Those Who Need the Flu Shot Get It
Aired October 15, 2004 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, U.S. and Iraqi forces launch more air and ground raids in Falluja. They have also set up vehicle checkpoints in and around the insurgent stronghold. U.S. military officials say the operation is to lay the groundwork for an eventual offensive to retake the city.
Eastern nations have come up with a plan of incentives and threats for dealing with Iran's nuclear program. Senior officials from the group of eight industrial nations will present the proposal today at the U.S. State Department.
Today, Muslims begin their most sacred time of the year, the holy month of Ramadan. It's a time of fasting and prayer. And many fear it may also mark an increased time of violence.
Florida's Palm Beach County plans to test its electronic voting machines today. An election official says Tuesday's dry run was postponed because of a computer server that crashed.
To the forecast center and Chad -- good morning.
CHAD MYERS, CNN METEOROLOGIST: A good thing it wasn't a couple Tuesdays from now, huh?
COSTELLO: You're not kidding.
MYERS: Yes.
Good morning.
(WEATHER REPORT)
COSTELLO: It's 18 days until election day and the presidential candidates head into the final stretch with a sprint through the battleground states.
On the campaign trail, President Bush wakes up this morning in Jacksonville, Oregon. And then he'll head to campaign rallies in Iowa and in Wisconsin. Last night police in riot gear fired pepper balls to break up protests by rival Bush and Kerry supporters in Jacksonville. Earlier, during a campaign appearance there, Bush painted Kerry as a liberal.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: My opponent says he's in touch with the West, but sometimes I think he means Western Massachusetts.
(END VIDEO CLIP)
COSTELLO: As for Democrat John Kerry, he begins his day in the battleground state of Iowa. He then heads to Wisconsin, where polls show President Bush holds a slight lead. On the campaign trail yesterday, Kerry reacted to claims of voter registration fraud in Nevada, where Democratic forms were allegedly tossed out.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We're going to have teams of people prepared wherever there is the potential of any kind of fraud or suppression to take appropriate legal action. We are not going to allow this election to become what the year 2000 was.
(END VIDEO CLIP)
COSTELLO: And Nevada isn't the only state where there are concerns about voter irregularities.
Our Dan Lothian looks at the problem nationwide.
(BEGIN VIDEO TAPE)
DAN LOTHIAN, CNN CORRESPONDENT (voice-over): The race to register voters in some states is being clouded by allegations of fraud. In the battleground state of Colorado, there's a list of people who have registered multiple times and stacks of forms with bogus names, like this one filled out by Jason Kills Enemy.
Colorado's Secretary of State Donetta Davidson is fuming and has called for an investigation.
DONETTA DAVIDSON, COLORADO SECRETARY OF STATE: I don't care if the election is close or not. We cannot allow fraud to happen in our state.
LOTHIAN: In southern Nevada, the FBI is looking into allegations that registration forms filled out by Democrats at a private voters outreach office were destroyed and discarded, as this ex-worker claims.
ERIC RUSSELL, FORMER VOTER REGISTRATION EMPLOYEE: And she grabbed the Democrats. She handed them to her assistant. And he ripped them up right in front of us.
LOTHIAN: Republican officials in the state have their doubts but are demanding answers.
BRIAN SCROGGINS, CLARK COUNTY REPUBLICAN PARTY: Obviously, any of these allegations are serious and we're not taking them lightly.
LOTHIAN: In this election battle, locked in a statistical dead heat, allegations are amplified, especially in key battleground states like Ohio, Florida, Pennsylvania, Nevada and Colorado. Throw into the mix concerns over new voting technology, confusing ballot changes and not enough poll workers, and the results, some fear, could be troubling.
DOUG CHAPIN, DIRECTOR, ELECTIONONLINE.ORG: It's very unlikely that we will get through election day without some kind of a problem.
LOTHIAN (on camera): This Government Accountability Office report indicates the Justice Department has made some progress since the 2000 election in addressing voter irregularities. But it also reveals not enough has been done.
(voice-over): Congressman Henry Waxman says the government is not ready for another close election.
REP. HENRY WAXMAN (D), CALIFORNIA: The Justice Department should have been prepared and maybe still can try to be prepared to stop any irregularities.
LOTHIAN: But in statement, the Justice Department said it has been proactive already, implementing significant changes, and that it can better monitor election activities and track voter complaints.
From Capitol Hill to the courts, an aggressive effort is under way to make sure every vote is counted, without fraud, mistakes or confusion.
Dan Lothian, CNN, Boston.
COSTELLO: We'll have much more on this topic and the state that could be the Florida of 2004. We'll talk with a reporter who's covered it extensively about 15 minutes from now.
In other news across America now, it took a Louisiana jury just over 90 minutes to recommended the death penalty for convicted killer Derrick Todd Lee. Lee was found guilty of killing a 22-year-old woman in May of 2002. The woman had been stabbed more than 80 times. DNA evidence has linked Lee to seven murders since 1998.
A 50-seat passenger plane with only the pilot and co-pilot on board crashed into a residential area in Jefferson City, Missouri. No word on injuries to the pilots or anyone on the ground. Police say the Pinnacle Airlines plane experienced engine problems before the crash.
Cleanup has begun in a mysterious oil spill, about 1,000 gallons off the coast of Tacoma, Washington. Investigators are reviewing a list of ships that passed through the area to see who may have dumped the oil. Wildlife agencies are afraid the heavy oil will devastate bird colonies in Puget Sound.
It's doubtful that the government can get more doses of the flu vaccine in time for flu season. That's what Health and Human Services Director Tommy Thompson is saying this morning. In the meantime, Michigan's health department issued an emergency order that limits who's eligible to receive the flu vaccine. Officials say there are about three and a half million high risk patients in Michigan, but only two million doses of the vaccine. People are waiting in lines in other states, as well, and now even more reports of price gouging are being heard.
For more on that, we're joined live from Washington by CNN's Julie Vallese -- good morning, Julie.
JULIE VALLESE, CNN CORRESPONDENT: Good morning to you, Carol.
We're here at a 24 hour grocery store where people started lining up at 12:30 to get vaccines that won't start being given out until 9:00 a.m. And that is a scene that is being played out across the country. As you mentioned, an emergency rule in Michigan. That's something that is being seen in other states and municipalities, in some cases, misdemeanor charges and fines, all an effort to stop thefts, price gouging and something that hasn't been seen yet, but officials are worried about, counterfeiting.
(BEGIN VIDEO TAPE)
VALLESE (voice-over): The young, the old and the middle-aged were lining up at this clinic for flu shots. It does have an ample supply, charging only $25. But the clinic says in accordance with the CDC's plea, if you're young and healthy, you'll be turned away.
UNIDENTIFIED MALE: I didn't know that.
VALLESE: And if you were watching the Yankees-Red Sox game, like this man, instead of the presidential debate, you probably didn't hear the president ask healthy Americans to forego a vaccine this year.
UNIDENTIFIED MALE: But I just thought, you know, more was going to come down the pipeline and it was just a matter of when.
VALLESE: But that is probably unlikely and some distributors know it and are taking advantage of it. In some states, reports of vaccines being sold for 10 times more than they should.
RICHARD BLUMENTHAL, CONNECTICUT ATTORNEY GENERAL: We're aware of numerous increasing reports about price gouging and profiteering that are depriving our most vulnerable citizens, particularly senior citizens and children.
VALLESE: In Florida, two price gouging suits have been filed against Medstat, one by the State of Florida, the other Kansas. The company issued a statement saying they have done nothing wrong. To combat price gouging, the CDC is shifting supply.
DR. JULIE GERBERDING, CDC DIRECTOR: We're going first to the people who need vaccine the most and where we can logically predict the greatest number of at risk people. VALLESE: The CDC may be able to logically predict where to send the vaccine, but more difficult to predict how many healthy people will still try to get it and how much they're willing to pay to keep from getting sick.
(END VIDEO TAPE)
VALLESE: Now, price gouging is a state issue. In some states, it's not illegal. And on the federal level, fraud or conspiracy charges will have to be used because overcharging, it's not against the law -- Carol.
COSTELLO: Unbelievable.
Julie Vallese live in Washington this morning.
Thank you.
Still to come on DAYBREAK, Colorado -- could it be the Florida of 2004? At 6:15 Eastern we'll tell you why some people are concerned about the vote counting in that state.
And immigrants in America -- whether you welcome them or not, some of them are here to stay. An emotional look at an issue that came up in the last presidential debate. That's at 35 minutes past the hour.
And then, it's meant to make you laugh. Oh, it's got a lot of people talking. I'll get a critic's take on this movie that mixes marionettes, puppets, with social commentary.
But first, here's a look at what else is making news this Friday morning.
(COMMERCIAL BREAK)
COSTELLO: A question for you this morning -- could Colorado voters throw a monkey wrench into the November election similar to the monkey wrench Florida threw in four years ago? It's not certain yet, but Proposition 36 could be on the ballot. It proposes awarding Colorado's electoral votes based on the popular vote, rather than the winner take all system currently in place. There's already one lawsuit to block Prop 36. there may be others.
Mitch Frank wrote all about it for "Time" magazine.
He joins us live from New York.
Good morning.
MITCH FRANK, "TIME" MAGAZINE: Good morning, Carol.
COSTELLO: OK, this is a little difficult to understand. Right now Colorado awards electoral votes no a winner take all basis. So, like say President Bush got 51 percent of the votes cast, he would win all nine electoral votes. FRANK: That's right.
COSTELLO: How would Prop 36 change that?
FRANK: Well, the electoral votes would be split up along the lines of what percentage of the popular vote got. So if the president got about 51, 55 percent of the vote and John Kerry got about 45 percent, they would round that to be five votes for Bush and four votes for Kerry.
COSTELLO: Interesting. So the popular vote would, in essence, win, and all those votes for John Kerry wouldn't go out the window, they would still be used, in essence?
FRANK: Well, that's the idea behind the proposition. And the people behind it hope eventually it will spread nationwide.
COSTELLO: So will voters really vote on this issue on November 2? Will it be on the ballot?
FRANK: Well, it'll be on the ballot if something doesn't take it off at this point. I think it's already printed. And, you know, the polls find that there's a slight support for it that, you know, about 51 percent of the voters in Colorado support the idea, 37 oppose it.
But it hasn't gotten that much attention yet. So the question is if there's a lot of sort of negative advertising between now and November 2, whether that will defeat it.
COSTELLO: Interesting. So it's -- if it's on the ballot and it passes, how might it affect the presidential race?
FRANK: Well, it's a certainty that if it goes into effect and it splits Colorado's electoral votes, it could change the outcome of the election and it would certainly come under legal challenge. If you went four years ago, when Colorado had eight electoral votes, they would have split five-three, five to President Bush and three to Al Gore. And Al Gore would have won the election. That would have been enough for him.
And so this could turn the result in the national election, which certainly you can bet that both the Republicans and the Democrats would challenge it if it changes the results against them.
COSTELLO: Oh, yes, I can hear the lawyers' footsteps running to the courthouses right now.
FRANK: I think they use private jets.
COSTELLO: I think you're right.
Thank you so much for joining us this morning.
Mitch Frank from "Time" magazine joining DAYBREAK this morning.
FRANK: Thank you. COSTELLO: Your news, money, weather and sports.
It's 6:16 Eastern.
Here's what's all new this morning.
A possible promotion may be in the works for General Ricardo Sanchez, the former head of military operations in Iraq. The "Los Angeles Times" reports Defense Secretary Donald Rumsfeld wants to make Sanchez a four star general. But he likely would wait until after the election.
Kobe Bryant's accuser has revised her lawsuit against the NBA star. But this time she's using her real name. A judge ruled last week that she had to identify herself in the sexual assault civil trial. As part of CNN policy, we do not name alleged victims of sexual assault.
In money news, the deficit for 2004 will hit a record $412.6 billion. That's the bad news. The good news? The White House originally projected the deficit would be $521 billion.
In culture, Eminem Radio is coming your way. The singer has joined with Sirius Satellite Radio to launch an all hip-hop satellite station called Shady 45. The channel hits the air October 28.
In sports, the St. Louis Cardinals used back to back home runs in the eighth inning to get past the Houston Astros. The 6-4 win gives the Cards a 2-0 lead in the National League championship series. Game three Saturday, Houston -- good morning, Chad.
MYERS: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Time now for a little business buzz.
The state attorney general of New York takes on an insurance company and has a warning for the entire industry.
Let's go to the Nasdaq market site and Carrie Lee with a sneak peak on that -- good morning, Carrie.
CARRIE LEE, CNN CORRESPONDENT: Carol, will these corporate scandal stories ever end? It doesn't seem like they are going to any time soon.
New York State Attorney General Eliot Spitzer has filed a criminal and civil lawsuit against Marsh & McLennan. This is the largest U.S. insurance brokerage firm. Also named in the suit, AIG, American International Group, one of the Dow 30, as well as Ace Hartford Financial Services Group and Munich American Risk Partners.
Now, the indictment relates to what the insurance company calls contingent commissions, which Spitzer believes are actually kickbacks and payoffs to steer their business toward a particular insurance company. So basically a compensation agreement between an insurance broker and an insurance company.
You can bet these stocks took a big hit when this news came out yesterday. AIG's shares down over 10 percent, helping to bring the Dow down 107 points at the close. Marsh & McLennan down nearly 25 percent. The other names I mentioned, Hartford and Ace, down about 6 and 8 percent.
So we'll keep an eye, see if there's some follow through today.
I have to say across-the-board, futures are looking pretty flat for today's session. We have crude oil futures and electronic trading coming down a little bit after yesterday's record close. And we have a lot of economic data coming out, as well -- an early look at how people are feeling about the economy from the University of Michigan, as well as the Producer Price Index, a key measure of inflation -- Carol, that's the latest.
COSTELLO: You're going to have a busy day.
LEE: Already it's very busy, yes.
COSTELLO: Thank you, Carrie.
Still to come, how much would you pay for something that belongs to Sir Elton John? Coming up, we'll share the price tags on some amazing art by world famous photographers right off the auction block.
Plus, it's a movie starring marionettes, puppets. But these are no ordinary puppets. We'll tell you why this new flick has both sides of the political spectrum up in arms.
(COMMERCIAL BREAK)
COSTELLO: We all remember Elton John's plea to don't go breaking his heart. But don't go breaking the bank is more like it. Famous photographs from the collection of Sir Elton John went on the auction block in New York and more than surpassed expectations.
So let's head live to New York now and Josh Holdeman of Christie's auction house.
Good morning.
JOSHUA HOLDEMAN, CHRISTIE'S NEW YORK: Good morning.
How are you today?
COSTELLO: I'm fine.
How are you?
HOLDEMAN: I'm fine, thanks.
COSTELLO: You know, most know Elton John as the guy who sang "Candle In the Wind," not as an art collector.
What kind of photographs are we talking about?
HOLDEMAN: We're talking about all kinds of things, ranging from Robert Mapplethorpe to Irving Penn, really the icons of the history of photography of the past 100 years, I would say.
COSTELLO: And not only are these famous photographers, but they're culturally important. Tell us why.
HOLDEMAN: They are photographers who are artists that have really shaped our culture. They have changed the way we see the world and ourselves.
COSTELLO: So before we get into the money thing and how much the photographs went for, set the stage for us.
What's it like during an auction at Christie's like this?
HOLDEMAN: It's extremely exciting. The room is packed. The adrenaline is usually running very high. Usually we try and have a pretty good idea of what's going to happen before it does, but there are always all kinds of surprises.
COSTELLO: Were there any surprises this time?
HOLDEMAN: No huge surprises, but I would say there was a general -- we were extremely happy with the entire evening.
COSTELLO: Oh, I can bet you were.
The top seller was a photograph by Robert Mapplethorpe. I think we have a picture of that to show people. Describe it and tell us what it went for.
HOLDEMAN: This is a Mapplethorpe platinum print of tulips in a vase. These are extremely rare. They haven't been available for a long time. I believe it brought $83,000 and change.
COSTELLO: Wow! Oh, that's such a beautiful photograph, though. And, of course, all the buyers are anonymous, right?
HOLDEMAN: Yes, they are.
COSTELLO: Darn.
Irving Penn, that was another famous photographer whose pictures sold. Let's see a picture of that one.
HOLDEMAN: Yes, this is a picture of his ex-wife, whose name is Lisa Fonssagrives in a dress called the mermaid dress. And this is one of his most iconic fashion portraits.
COSTELLO: Oh, what a beautiful dress.
OK, and $57,000. I bet the dress cost that much, too. Ansel Adams is probably a photographer that most people have heard about there.
HOLDEMAN: Yes.
COSTELLO: Explain this photo.
HOLDEMAN: Yes, he is a quintessential, he is the quintessential American photographer. This is something that he did out West at the Grand Teton Mountains. It's an iconic image and this was a beautiful print of that image.
COSTELLO: And that went for...
HOLDEMAN: $43,000 I believe.
COSTELLO: Yes, $43,000. $43,020. Oh, that's a beautiful photograph.
So there are more photos in the collection, as well.
So how much money in all was raised through this auction?
HOLDEMAN: I believe it came in at just over $900,000 total.
COSTELLO: Wow!
So what will Elton John do with the money? It's not like he needs it.
HOLDEMAN: I believe what he will do is he will use the money to acquire further objects in his photography collection. It's, you know, a common exercise for any collector who has a large collection of art to periodically go through and do a little bit of housekeeping. That's to say that there may be certain things that they have collected in depth that aren't "essential" for them to have and they would like to maybe move things around so that they can acquire further things that would, you know, have an impact.
COSTELLO: I'm just sighing because I'm trying to make believe that I actually live in that world, which I don't.
Josh Holdeman from Christie's auction house, thanks for sharing beautiful photographs with us this morning.
HOLDEMAN: Thank you so much.
Have a nice day.
COSTELLO: You, too.
A high profile, highly personal war of words just ahead. We'll look at what the candidates and their families are saying about homosexuality.
And we're going to also dive into another issue hitting close to home this election year, illegal immigration.
You're watching DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, overnight explosions and gunfire rocked the Iraqi city of Falluja. U.S. Marines and Iraqi troops battled insurgents on the ground after air strikes on suspected terrorist sites in the city. No word on casualties.
Michigan has joined three other states in issuing an emergency order to make sure only high risk people get flu shots. Health care providers could get jail time for giving the shots to people not on that priority list.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired October 15, 2004 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, U.S. and Iraqi forces launch more air and ground raids in Falluja. They have also set up vehicle checkpoints in and around the insurgent stronghold. U.S. military officials say the operation is to lay the groundwork for an eventual offensive to retake the city.
Eastern nations have come up with a plan of incentives and threats for dealing with Iran's nuclear program. Senior officials from the group of eight industrial nations will present the proposal today at the U.S. State Department.
Today, Muslims begin their most sacred time of the year, the holy month of Ramadan. It's a time of fasting and prayer. And many fear it may also mark an increased time of violence.
Florida's Palm Beach County plans to test its electronic voting machines today. An election official says Tuesday's dry run was postponed because of a computer server that crashed.
To the forecast center and Chad -- good morning.
CHAD MYERS, CNN METEOROLOGIST: A good thing it wasn't a couple Tuesdays from now, huh?
COSTELLO: You're not kidding.
MYERS: Yes.
Good morning.
(WEATHER REPORT)
COSTELLO: It's 18 days until election day and the presidential candidates head into the final stretch with a sprint through the battleground states.
On the campaign trail, President Bush wakes up this morning in Jacksonville, Oregon. And then he'll head to campaign rallies in Iowa and in Wisconsin. Last night police in riot gear fired pepper balls to break up protests by rival Bush and Kerry supporters in Jacksonville. Earlier, during a campaign appearance there, Bush painted Kerry as a liberal.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: My opponent says he's in touch with the West, but sometimes I think he means Western Massachusetts.
(END VIDEO CLIP)
COSTELLO: As for Democrat John Kerry, he begins his day in the battleground state of Iowa. He then heads to Wisconsin, where polls show President Bush holds a slight lead. On the campaign trail yesterday, Kerry reacted to claims of voter registration fraud in Nevada, where Democratic forms were allegedly tossed out.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We're going to have teams of people prepared wherever there is the potential of any kind of fraud or suppression to take appropriate legal action. We are not going to allow this election to become what the year 2000 was.
(END VIDEO CLIP)
COSTELLO: And Nevada isn't the only state where there are concerns about voter irregularities.
Our Dan Lothian looks at the problem nationwide.
(BEGIN VIDEO TAPE)
DAN LOTHIAN, CNN CORRESPONDENT (voice-over): The race to register voters in some states is being clouded by allegations of fraud. In the battleground state of Colorado, there's a list of people who have registered multiple times and stacks of forms with bogus names, like this one filled out by Jason Kills Enemy.
Colorado's Secretary of State Donetta Davidson is fuming and has called for an investigation.
DONETTA DAVIDSON, COLORADO SECRETARY OF STATE: I don't care if the election is close or not. We cannot allow fraud to happen in our state.
LOTHIAN: In southern Nevada, the FBI is looking into allegations that registration forms filled out by Democrats at a private voters outreach office were destroyed and discarded, as this ex-worker claims.
ERIC RUSSELL, FORMER VOTER REGISTRATION EMPLOYEE: And she grabbed the Democrats. She handed them to her assistant. And he ripped them up right in front of us.
LOTHIAN: Republican officials in the state have their doubts but are demanding answers.
BRIAN SCROGGINS, CLARK COUNTY REPUBLICAN PARTY: Obviously, any of these allegations are serious and we're not taking them lightly.
LOTHIAN: In this election battle, locked in a statistical dead heat, allegations are amplified, especially in key battleground states like Ohio, Florida, Pennsylvania, Nevada and Colorado. Throw into the mix concerns over new voting technology, confusing ballot changes and not enough poll workers, and the results, some fear, could be troubling.
DOUG CHAPIN, DIRECTOR, ELECTIONONLINE.ORG: It's very unlikely that we will get through election day without some kind of a problem.
LOTHIAN (on camera): This Government Accountability Office report indicates the Justice Department has made some progress since the 2000 election in addressing voter irregularities. But it also reveals not enough has been done.
(voice-over): Congressman Henry Waxman says the government is not ready for another close election.
REP. HENRY WAXMAN (D), CALIFORNIA: The Justice Department should have been prepared and maybe still can try to be prepared to stop any irregularities.
LOTHIAN: But in statement, the Justice Department said it has been proactive already, implementing significant changes, and that it can better monitor election activities and track voter complaints.
From Capitol Hill to the courts, an aggressive effort is under way to make sure every vote is counted, without fraud, mistakes or confusion.
Dan Lothian, CNN, Boston.
COSTELLO: We'll have much more on this topic and the state that could be the Florida of 2004. We'll talk with a reporter who's covered it extensively about 15 minutes from now.
In other news across America now, it took a Louisiana jury just over 90 minutes to recommended the death penalty for convicted killer Derrick Todd Lee. Lee was found guilty of killing a 22-year-old woman in May of 2002. The woman had been stabbed more than 80 times. DNA evidence has linked Lee to seven murders since 1998.
A 50-seat passenger plane with only the pilot and co-pilot on board crashed into a residential area in Jefferson City, Missouri. No word on injuries to the pilots or anyone on the ground. Police say the Pinnacle Airlines plane experienced engine problems before the crash.
Cleanup has begun in a mysterious oil spill, about 1,000 gallons off the coast of Tacoma, Washington. Investigators are reviewing a list of ships that passed through the area to see who may have dumped the oil. Wildlife agencies are afraid the heavy oil will devastate bird colonies in Puget Sound.
It's doubtful that the government can get more doses of the flu vaccine in time for flu season. That's what Health and Human Services Director Tommy Thompson is saying this morning. In the meantime, Michigan's health department issued an emergency order that limits who's eligible to receive the flu vaccine. Officials say there are about three and a half million high risk patients in Michigan, but only two million doses of the vaccine. People are waiting in lines in other states, as well, and now even more reports of price gouging are being heard.
For more on that, we're joined live from Washington by CNN's Julie Vallese -- good morning, Julie.
JULIE VALLESE, CNN CORRESPONDENT: Good morning to you, Carol.
We're here at a 24 hour grocery store where people started lining up at 12:30 to get vaccines that won't start being given out until 9:00 a.m. And that is a scene that is being played out across the country. As you mentioned, an emergency rule in Michigan. That's something that is being seen in other states and municipalities, in some cases, misdemeanor charges and fines, all an effort to stop thefts, price gouging and something that hasn't been seen yet, but officials are worried about, counterfeiting.
(BEGIN VIDEO TAPE)
VALLESE (voice-over): The young, the old and the middle-aged were lining up at this clinic for flu shots. It does have an ample supply, charging only $25. But the clinic says in accordance with the CDC's plea, if you're young and healthy, you'll be turned away.
UNIDENTIFIED MALE: I didn't know that.
VALLESE: And if you were watching the Yankees-Red Sox game, like this man, instead of the presidential debate, you probably didn't hear the president ask healthy Americans to forego a vaccine this year.
UNIDENTIFIED MALE: But I just thought, you know, more was going to come down the pipeline and it was just a matter of when.
VALLESE: But that is probably unlikely and some distributors know it and are taking advantage of it. In some states, reports of vaccines being sold for 10 times more than they should.
RICHARD BLUMENTHAL, CONNECTICUT ATTORNEY GENERAL: We're aware of numerous increasing reports about price gouging and profiteering that are depriving our most vulnerable citizens, particularly senior citizens and children.
VALLESE: In Florida, two price gouging suits have been filed against Medstat, one by the State of Florida, the other Kansas. The company issued a statement saying they have done nothing wrong. To combat price gouging, the CDC is shifting supply.
DR. JULIE GERBERDING, CDC DIRECTOR: We're going first to the people who need vaccine the most and where we can logically predict the greatest number of at risk people. VALLESE: The CDC may be able to logically predict where to send the vaccine, but more difficult to predict how many healthy people will still try to get it and how much they're willing to pay to keep from getting sick.
(END VIDEO TAPE)
VALLESE: Now, price gouging is a state issue. In some states, it's not illegal. And on the federal level, fraud or conspiracy charges will have to be used because overcharging, it's not against the law -- Carol.
COSTELLO: Unbelievable.
Julie Vallese live in Washington this morning.
Thank you.
Still to come on DAYBREAK, Colorado -- could it be the Florida of 2004? At 6:15 Eastern we'll tell you why some people are concerned about the vote counting in that state.
And immigrants in America -- whether you welcome them or not, some of them are here to stay. An emotional look at an issue that came up in the last presidential debate. That's at 35 minutes past the hour.
And then, it's meant to make you laugh. Oh, it's got a lot of people talking. I'll get a critic's take on this movie that mixes marionettes, puppets, with social commentary.
But first, here's a look at what else is making news this Friday morning.
(COMMERCIAL BREAK)
COSTELLO: A question for you this morning -- could Colorado voters throw a monkey wrench into the November election similar to the monkey wrench Florida threw in four years ago? It's not certain yet, but Proposition 36 could be on the ballot. It proposes awarding Colorado's electoral votes based on the popular vote, rather than the winner take all system currently in place. There's already one lawsuit to block Prop 36. there may be others.
Mitch Frank wrote all about it for "Time" magazine.
He joins us live from New York.
Good morning.
MITCH FRANK, "TIME" MAGAZINE: Good morning, Carol.
COSTELLO: OK, this is a little difficult to understand. Right now Colorado awards electoral votes no a winner take all basis. So, like say President Bush got 51 percent of the votes cast, he would win all nine electoral votes. FRANK: That's right.
COSTELLO: How would Prop 36 change that?
FRANK: Well, the electoral votes would be split up along the lines of what percentage of the popular vote got. So if the president got about 51, 55 percent of the vote and John Kerry got about 45 percent, they would round that to be five votes for Bush and four votes for Kerry.
COSTELLO: Interesting. So the popular vote would, in essence, win, and all those votes for John Kerry wouldn't go out the window, they would still be used, in essence?
FRANK: Well, that's the idea behind the proposition. And the people behind it hope eventually it will spread nationwide.
COSTELLO: So will voters really vote on this issue on November 2? Will it be on the ballot?
FRANK: Well, it'll be on the ballot if something doesn't take it off at this point. I think it's already printed. And, you know, the polls find that there's a slight support for it that, you know, about 51 percent of the voters in Colorado support the idea, 37 oppose it.
But it hasn't gotten that much attention yet. So the question is if there's a lot of sort of negative advertising between now and November 2, whether that will defeat it.
COSTELLO: Interesting. So it's -- if it's on the ballot and it passes, how might it affect the presidential race?
FRANK: Well, it's a certainty that if it goes into effect and it splits Colorado's electoral votes, it could change the outcome of the election and it would certainly come under legal challenge. If you went four years ago, when Colorado had eight electoral votes, they would have split five-three, five to President Bush and three to Al Gore. And Al Gore would have won the election. That would have been enough for him.
And so this could turn the result in the national election, which certainly you can bet that both the Republicans and the Democrats would challenge it if it changes the results against them.
COSTELLO: Oh, yes, I can hear the lawyers' footsteps running to the courthouses right now.
FRANK: I think they use private jets.
COSTELLO: I think you're right.
Thank you so much for joining us this morning.
Mitch Frank from "Time" magazine joining DAYBREAK this morning.
FRANK: Thank you. COSTELLO: Your news, money, weather and sports.
It's 6:16 Eastern.
Here's what's all new this morning.
A possible promotion may be in the works for General Ricardo Sanchez, the former head of military operations in Iraq. The "Los Angeles Times" reports Defense Secretary Donald Rumsfeld wants to make Sanchez a four star general. But he likely would wait until after the election.
Kobe Bryant's accuser has revised her lawsuit against the NBA star. But this time she's using her real name. A judge ruled last week that she had to identify herself in the sexual assault civil trial. As part of CNN policy, we do not name alleged victims of sexual assault.
In money news, the deficit for 2004 will hit a record $412.6 billion. That's the bad news. The good news? The White House originally projected the deficit would be $521 billion.
In culture, Eminem Radio is coming your way. The singer has joined with Sirius Satellite Radio to launch an all hip-hop satellite station called Shady 45. The channel hits the air October 28.
In sports, the St. Louis Cardinals used back to back home runs in the eighth inning to get past the Houston Astros. The 6-4 win gives the Cards a 2-0 lead in the National League championship series. Game three Saturday, Houston -- good morning, Chad.
MYERS: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Time now for a little business buzz.
The state attorney general of New York takes on an insurance company and has a warning for the entire industry.
Let's go to the Nasdaq market site and Carrie Lee with a sneak peak on that -- good morning, Carrie.
CARRIE LEE, CNN CORRESPONDENT: Carol, will these corporate scandal stories ever end? It doesn't seem like they are going to any time soon.
New York State Attorney General Eliot Spitzer has filed a criminal and civil lawsuit against Marsh & McLennan. This is the largest U.S. insurance brokerage firm. Also named in the suit, AIG, American International Group, one of the Dow 30, as well as Ace Hartford Financial Services Group and Munich American Risk Partners.
Now, the indictment relates to what the insurance company calls contingent commissions, which Spitzer believes are actually kickbacks and payoffs to steer their business toward a particular insurance company. So basically a compensation agreement between an insurance broker and an insurance company.
You can bet these stocks took a big hit when this news came out yesterday. AIG's shares down over 10 percent, helping to bring the Dow down 107 points at the close. Marsh & McLennan down nearly 25 percent. The other names I mentioned, Hartford and Ace, down about 6 and 8 percent.
So we'll keep an eye, see if there's some follow through today.
I have to say across-the-board, futures are looking pretty flat for today's session. We have crude oil futures and electronic trading coming down a little bit after yesterday's record close. And we have a lot of economic data coming out, as well -- an early look at how people are feeling about the economy from the University of Michigan, as well as the Producer Price Index, a key measure of inflation -- Carol, that's the latest.
COSTELLO: You're going to have a busy day.
LEE: Already it's very busy, yes.
COSTELLO: Thank you, Carrie.
Still to come, how much would you pay for something that belongs to Sir Elton John? Coming up, we'll share the price tags on some amazing art by world famous photographers right off the auction block.
Plus, it's a movie starring marionettes, puppets. But these are no ordinary puppets. We'll tell you why this new flick has both sides of the political spectrum up in arms.
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COSTELLO: We all remember Elton John's plea to don't go breaking his heart. But don't go breaking the bank is more like it. Famous photographs from the collection of Sir Elton John went on the auction block in New York and more than surpassed expectations.
So let's head live to New York now and Josh Holdeman of Christie's auction house.
Good morning.
JOSHUA HOLDEMAN, CHRISTIE'S NEW YORK: Good morning.
How are you today?
COSTELLO: I'm fine.
How are you?
HOLDEMAN: I'm fine, thanks.
COSTELLO: You know, most know Elton John as the guy who sang "Candle In the Wind," not as an art collector.
What kind of photographs are we talking about?
HOLDEMAN: We're talking about all kinds of things, ranging from Robert Mapplethorpe to Irving Penn, really the icons of the history of photography of the past 100 years, I would say.
COSTELLO: And not only are these famous photographers, but they're culturally important. Tell us why.
HOLDEMAN: They are photographers who are artists that have really shaped our culture. They have changed the way we see the world and ourselves.
COSTELLO: So before we get into the money thing and how much the photographs went for, set the stage for us.
What's it like during an auction at Christie's like this?
HOLDEMAN: It's extremely exciting. The room is packed. The adrenaline is usually running very high. Usually we try and have a pretty good idea of what's going to happen before it does, but there are always all kinds of surprises.
COSTELLO: Were there any surprises this time?
HOLDEMAN: No huge surprises, but I would say there was a general -- we were extremely happy with the entire evening.
COSTELLO: Oh, I can bet you were.
The top seller was a photograph by Robert Mapplethorpe. I think we have a picture of that to show people. Describe it and tell us what it went for.
HOLDEMAN: This is a Mapplethorpe platinum print of tulips in a vase. These are extremely rare. They haven't been available for a long time. I believe it brought $83,000 and change.
COSTELLO: Wow! Oh, that's such a beautiful photograph, though. And, of course, all the buyers are anonymous, right?
HOLDEMAN: Yes, they are.
COSTELLO: Darn.
Irving Penn, that was another famous photographer whose pictures sold. Let's see a picture of that one.
HOLDEMAN: Yes, this is a picture of his ex-wife, whose name is Lisa Fonssagrives in a dress called the mermaid dress. And this is one of his most iconic fashion portraits.
COSTELLO: Oh, what a beautiful dress.
OK, and $57,000. I bet the dress cost that much, too. Ansel Adams is probably a photographer that most people have heard about there.
HOLDEMAN: Yes.
COSTELLO: Explain this photo.
HOLDEMAN: Yes, he is a quintessential, he is the quintessential American photographer. This is something that he did out West at the Grand Teton Mountains. It's an iconic image and this was a beautiful print of that image.
COSTELLO: And that went for...
HOLDEMAN: $43,000 I believe.
COSTELLO: Yes, $43,000. $43,020. Oh, that's a beautiful photograph.
So there are more photos in the collection, as well.
So how much money in all was raised through this auction?
HOLDEMAN: I believe it came in at just over $900,000 total.
COSTELLO: Wow!
So what will Elton John do with the money? It's not like he needs it.
HOLDEMAN: I believe what he will do is he will use the money to acquire further objects in his photography collection. It's, you know, a common exercise for any collector who has a large collection of art to periodically go through and do a little bit of housekeeping. That's to say that there may be certain things that they have collected in depth that aren't "essential" for them to have and they would like to maybe move things around so that they can acquire further things that would, you know, have an impact.
COSTELLO: I'm just sighing because I'm trying to make believe that I actually live in that world, which I don't.
Josh Holdeman from Christie's auction house, thanks for sharing beautiful photographs with us this morning.
HOLDEMAN: Thank you so much.
Have a nice day.
COSTELLO: You, too.
A high profile, highly personal war of words just ahead. We'll look at what the candidates and their families are saying about homosexuality.
And we're going to also dive into another issue hitting close to home this election year, illegal immigration.
You're watching DAYBREAK.
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COSTELLO: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, overnight explosions and gunfire rocked the Iraqi city of Falluja. U.S. Marines and Iraqi troops battled insurgents on the ground after air strikes on suspected terrorist sites in the city. No word on casualties.
Michigan has joined three other states in issuing an emergency order to make sure only high risk people get flu shots. Health care providers could get jail time for giving the shots to people not on that priority list.
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