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CNN Live At Daybreak

Watery Grave; Full Court Press; Terror on Tape

Aired October 03, 2005 - 5:00   ET

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


CAROL COSTELLO, CNN ANCHOR: It is Monday, October 3. What starts out as a pleasant day on the water quickly turns into a tragedy. The skies were clear, the waters being calm, but that did not keep this lake from turning into a watery grave.
Also, a deadly terror attack and the chaos that followed, all captured on tape. We'll bring you the images.

Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's kind of bitter sweet. We lost a few guys out there.

(END VIDEO CLIP)

COSTELLO: They fought, they sacrificed, they saw the worst the war had to offer. But now they're back home.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

COSTELLO: And good morning to you. We'll have more on the Lake George boat accident in just a moment.

Also ahead, the faithful pray for strength and patience and honor the dead in New Orleans. The historic St. Louis Cathedral reopens its doors.

But first, "Now in the News."

The Supreme Court opens its new term in just about five hours, with John Roberts taking over as the new chief justice. It's going to be a historic day. We'll bring you all the details in a few minutes.

An American tourist is now aboard the International Space Station. A Russian ship carrying millionaire Gregory Olsen docked at the station about three-and-a-half hours ago. The two-man crew arrived with him.

If you like eating those salads in a bag, be careful. The FDA is issuing a nationwide warning over some pre-packaged salads from Dole. They've been linked to an E. coli outbreak in Minnesota.

To the forecast center and Chad.

Good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Thank you, Chad.

MYERS: You're welcome.

COSTELLO: It happened so fast, they didn't have time to put on their life jackets. We begin this morning with a tragedy in upstate New York. A tour boat carrying senior citizens suddenly flips over in the chilly waters of Lake George.

(BEGIN VIDEO CLIP)

SHERIFF LARRY CLEVELAND, WARREN COUNTY, NEW YORK: We will, of course, conduct an investigation into this to determine whether or not there was any type of a criminal matter involved. I want to stress to you now that all doors are open, but we do not believe there's anything criminal about what took place on the lake.

(END VIDEO CLIP)

COSTELLO: Twenty people died in that accident. In just a couple of hours, investigators will be back on the scene.

CNN's Alina Cho has more now from Lake George.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT: At least 20 people are confirmed dead, between 45 and 50 people total were on the boat. And authorities say that means between 25 and 30 people survived this accident.

The sheriff I spoke to also believes that everyone has been accounted for. But to be sure, divers will be back here in the morning at 7:00 a.m. And at that point authorities will resume this investigation.

Now, this all started at about 3:00 p.m. on Sunday afternoon, when the 40-foot glass-enclosed tour boat called The Ethan Allen capsized after being hit by the wake or wave of a larger vessel. About 30 to 40 minutes later, the boat sank. And at this point, that boat is still sitting at the bottom of the lake.

Divers do hope to raise it to the surface sometime on Monday.

Earlier, we spoke to a nearby motel owner who saw the ambulances, ran to the scene, and did everything he could to help out.

FRANK SAUSE, RESCUER: One guy, as I was taking him off, he was very shook up. And he said, "That was my wife. They just took my wife and put her over there because she's dead. I know she's dead."

And I said, you know, "Don't jump to conclusions." So it was kind of scary and sad. And it's just a tough situation.

CHO: At daybreak, the marine investigative unit of the NTSB will be here on site. Also, the Red Cross is in the process of setting up a location so that relatives of the victims have some place to go as they begin to arrive.

Now, having spoken to the sheriff, who has been in law enforcement for 30-some odd years, he tells me that he has never seen anything like this. Lake George is a tourist town. Tourism is what drives the economy here. And the sheriff tells me he hopes that this "freak accident," as he calls it, does not discourage other people from coming here to vacation in the future.

Alina Cho, CNN, Lake George, New York.

(END VIDEOTAPE)

COSTELLO: And as Alina mentioned, authorities expect The Ethan Allen, the boat, was swamped by the wake of a bigger boat. But they haven't confirmed this yet.

In the meantime, people who raced to help the victims are telling a terrifying story.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We came down, and we were helping bringing blankets. And we were pulling the elderly out of the boat. There were, like, tons of them, and they were all frantic. And a lot of them had, like, chest problems and stuff. And so we got most of them out of the boat, but I saw, like, 20 people that were laying on the grass, and they were covered and they were dead.

(END VIDEO CLIP)

COSTELLO: Another rescuer says he saw life jackets in the water. No one was using them. Adult boat passengers are not required to wear life jackets in New York State.

The Supreme Court back in session today, with one major change. For the first time in more than 30 years, William Rehnquist is not on the bench. Instead, Justice John Roberts will make his debut as the nation's new chief justice.

CNN's Gary Nurenberg has more for you.

(BEGIN VIDEOTAPE)

GARY NURENBERG, CNN CORRESPONDENT (voice over): President Bush joined the new chief justice and fellow members of the court Sunday for the yearly red mass, named for the historic color of judicial robes and performed just before a new term of the high court begins.

EDWARD LAZARUS, LEGAL ANALYST: He is going to walk into a real maelstrom up at the court. NURENBERG: Roberts jumps into one of the court's most controversial cases Wednesday, assisted suicide, and whether the federal government can stop the state of Oregon from allowing doctors to prescribe medicine so terminally ill patients can kill themselves.

LAZARUS: This is one of those hot-button issues that goes to the -- to the feelings of the Republican base. The issue of physician- assisted suicide is tied into what President Bush frequently calls his culture of life.

NURENBERG: As is abortion. The court will decide whether racketeering laws can be used against those who organize demonstrations outside clinics and could set a new standard for review of abortion cases when it decides whether a New Hampshire law requiring parental notification is too strict.

LAZARUS: It's one of the cases that could actually turn on John Roberts' vote.

NURENBERG: The court will decide whether colleges can ban military recruiters from campus because of the military's policy of "don't ask, don't tell" for homosexuals, whether a church can use an hallucinogenic tea as a sacrament, and will hear criminal cases about the rights of defendants in death penalty cases and limits on police procedures.

LAZARUS: This is a situation where, from the very moment the justices start back in October, they're going to be, first of all, very divided. There's going to be a lot of friction inside the building.

NURENBERG (on camera): Critics of Roberts' performance in his confirmation hearings complained they ended with little sense of his judicial philosophy or how he would rule on controversial cases. With the cases on this year's docket, they'll have some answers by the time the court concludes its term next summer.

Gary Nurenberg, CNN, the Supreme Court.

(END VIDEOTAPE)

COSTELLO: For more on the Supreme Court, be sure to log on to our Web site, CNN.com. We've got a special section breaking down the cases, the court, and a look at the possible nominees to replace Sandra Day O'Connor. So long on and learn more.

And coming up in the next hour, legal analyst Kendall Coffey will break down the next batch of possible nominees. President Bush is expected to announce his nomination for Justice Sandra Day O'Connor's seat this week.

In Indonesia, a truly macabre twist to the investigation into those deadly bombings in Bali. Investigators found the legs and heads of three people, but not the body trunks. It's an indication the heads are those of the three suicide bombers. And adding to the sense of macabre, photos of the three heads are now being shown on television and in newspapers. Police are hoping someone will recognize them.

The bombings killed 19 people and injured more than 90 others. There is speculation from the Bali police chief that a man seen wearing a backpack, an amateur video you're about to see -- actually, you're seeing it now -- well, he could be one of the bombers.

Mark Burroughs of Australia's Channel 9 has more on that.

(BEGIN VIDEOTAPE)

MARK BURROUGHS, CHANNEL 9 NEWS CORRESPONDENT (voice-over): The moment hell returned to this holiday paradise.

(SCREAMING)

BURROUGHS: Terrorists unleashing their hatred, targeting foreigners enjoying a warm night in restaurants and cafes. There was mayhem as survivors ran for their lives.

UNIDENTIFIED FEMALE: It all seemed in very slow motion. And we just heard this loud bang and then just saw - run.

BURROUGHS: Gary Shore from Batemans Bay in southern New South Wales was taking this home movie when in an instant, it became a horror film.

(SCREAMING)

BURROUGHS: Just seconds before the blast, a man thought to be a suicide bomber, can be seen walking into the Kuta restaurant wearing a backpack.

He goes out of view just as the explosion occurs close to gas cylinders near the kitchen.

The bombs were packed with ball bearings and other shrapnel, which were deadly projectiles. Australian teenagers Daniel and Andrew were knocked off their feet.

UNIDENTIFIED MALE: So scared when the thing hit me. I just - because I was on the ground. People were trampling over me.

UNIDENTIFIED MALE: I looked and saw it. There's just bodies all over the ground.

BURROUGHS: There was immediate panic, followed by extraordinary compassion. The victims, some of them children, being cared for on the (INAUDIBLE).

UNIDENTIFIED MALE: Please help me.

BURROUGHS: The blasts were well planned and expertly carried out, designed for maximum death and injury. They were 30 kilometers, but just moments apart. One in busy Kuta, the night life heart of Bali, and two further south at Jimbaran Bay, a seaside fishing village famous for its seafood restaurants.

Bali's shopping district and beaches would normally be bustling today. But once again, fear has consumed this beautiful island.

(END VIDEOTAPE)

COSTELLO: Again, that was Mark Burroughs, of Australia's Channel 9. At the half-hour, we'll talk with CNN's Stan Grant. He's in Bali this morning.

Coming up, innocence caught in the middle of war, as a hail of gunfire in western Iraq has had a thousand U.S. troops move to root out insurgents from villages near the Syrian border. CNN's Jennifer Eccleston is embedded with Operation Iron First.

But first, here's a look at what else is making news this Monday.

(COMMERCIAL BREAK)

COSTELLO: International markets mixed this morning. Tokyo's Nikkei down 49 points. The London FTSE is up 22. The German DAX 18 points higher.

In futures trading -- yes, we have to talk about oil -- oil is up 17 cents. It's $66.41 a barrel this morning.

And that brings us to our e-mail segment of the morning, because you know last week President Bush said we all need to conserve. And this week the government is going to tell you how. The Energy secretary says it would be six months before we see gas prices come down. Right now they stand at an average price a gallon at $2.92.

With the winter heating coming, heating costs could be an even bigger problem, though, Chad.

MYERS: Yes.

COSTELLO: In fact, they're saying that heating bills could double this winter -- double.

MYERS: Natural gas could double. And, you know...

COSTELLO: Can you believe it?

MYERS: ... I'm always one of those guys who floats the natural gas therm, cost per therm. It was a buck, and then it was $1.07, and then it was $1.15. And now you can't catch up to it. So you have to be very careful this winter on what you're paying.

Are you locked into a rate? Or is your rate floating, like mine is? Because I'm kind of a guy with the markets, think, well, eventually it will come down. But maybe this time, maybe that wasn't such a good idea. Well, I'll have to see. COSTELLO: Exactly.

MYERS: Yes.

COSTELLO: Well, anyway, the Energy secretary is going to come out, and he's going to tell people things like, you know, turn of your lights, change the thermostat settings, drive slower -- you know, to conserve gas in your car, of course -- insulate your homes, and take a few other steps as well, simple steps that will save you -- I don't know if it will save you a lot of money this winter, but it will save you some.

MYERS: So we know the simple ones.

COSTELLO: Yes.

MYERS: But we know that there are other ones out there that you penny pinchers, like me, are using. What will you do to conserve energy different than, let's say, the mainstream, if anything?

Go to DAYBREAK@CNN.com and let us know. We'll have some interesting answers this morning.

COSTELLO: Yes. And you can pass along good advice to other people. And that's a good thing, as Martha Stewart would say.

DAYBREAK@CNN.com.

Your news, money, weather and sports. It is 5:16 Eastern. Here's what's all new this morning.

John Roberts will be officially installed as the new chief justice of the United States this morning. And after that he'll get down to work. Among issues before the court this term, abortion, assisted suicide and the death penalty.

Former New York Mayor Rudy Giuliani says he'll consider a run for the White House in 2008. He made those remarks during a trip to Denmark. Giuliana says he'll start thinking next year about whether to seek the Republican nomination.

In money news, "Flightplan" remains sky high for the second straight week. The Jodie Foster airline thriller captured the top spot at the box office with $15 million. The movie may have actually gotten a box office boost after a boycott was encouraged over the film's portrayal of flight attendants.

Who knows.

In culture, Pulitzer Prize-winning playwright August Wilson is dead. Wilson's cycle of plays chronicled the African-American experience in each decade of the 20th century. Wilson died of liver cancer on Sunday. He was only 60 years old.

In sports, the first regular season NFL game outside of the United States was played in Mexico City. More than 103,000 fans, the largest crowd ever at a pro game, watched the Cardinals and the 49ers go at it. And, oh, yes, the Cardinals 31, the 49ers 14 -- Chad.

MYERS: Yes, some good games yesterday. How about those Chargers? Wow. Sneaking up on the Patriots unexpectedly.

COSTELLO: I'm still in pain over the Lions, Chad.

MYERS: Oh, I watched a few of those plays. It's all I could stand.

(WEATHER REPORT)

COSTELLO: Thank you, Chad.

MYERS: You're welcome.

COSTELLO: That's a look at the headlines for you this morning.

In New Orleans these days, you've got to believe. And the believers are coming back and doing something they haven't had a chance to do since Katrina hit. That story is next.

You are watching DAYBREAK for Monday, October 3.

(COMMERCIAL BREAK)

COSTELLO: Despite the pictures, New Orleans is drying out again. The Army Corps of Engineers says it plans to declare the city dry by tomorrow or Wednesday. Workers have made progress in patching up levees that were breached by Hurricane Rita. They were breached by Hurricane Katrina earlier.

And when it comes to Katrina's aftermath, some Louisiana officials say the federal government still doesn't have its act together. The president of St. Tammany Parish tells CNN that FEMA is still caught up in red tape and it's still mismanaging relief efforts. The president, Kevin Davis, says he's asked for trailers to house his residents, but he's gotten no response from FEMA.

In the meantime, a lot of city workers in New Yorkers may find themselves out of a job. The "Times-Picayune" newspaper says Mayor Ray Nagin is considering laying off up to 3,000 employees in his cash- strapped city. They're described as "nonessential." The paper says police and other public safety workers would mostly be spared.

Thousands of people in New Orleans, though, have lost so much. But some of them are once again finding their faith.

CNN's Chris Lawrence takes us to a very special prayer service.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): Parts of New Orleans are still devastated. Most of the city still without power.

SHERYL KOEHLER, HURRICANE VICTIM: I'm not going to be able to get back to my home. LAWRENCE: Hurricane Katrina left Sheryl Koehler living in a hotel.

KOEHLER: Like I said, it's too bad at my house. I have to find something new.

LAWRENCE: But look for hope, Sheryl and her daughter made their way back into the French Quarter on Sunday.

UNIDENTIFIED FEMALE: I was baptized here.

LAWRENCE: Nicole Ebert (ph) admits she's barely been here since then. But like hundreds of others, she came back for a reason.

KOEHLER: I wanted the people to know that Katrina didn't take us away, you know? Katrina left some of us behind.

LAWRENCE: There's been a church sitting on this site for nearly 300 years. St. Louis Cathedral is as much part of New Orleans as Mardi Gras.

ARCHBISHOP ALRED HUGHES, NEW ORLEANS: How do we approach such a human catastrophe within the context of faith?

LAWRENCE: The people here have lost jobs. They've lost homes. They've lost lives. For the first time since the storm, Archbishop Alfred Hughes opened the cathedral for mass.

HUGHES: The structure which hovers the soul of our city has come back to life. Thanks be to God.

LAWRENCE: Outside, after mass, it was time to catch up with old friends and thank new ones for their help.

KOEHLER: It makes you feel different when you walk out. It makes you feel that you should be proud of yourself to walk into a church. I mean, that have somebody to tell you that life isn't going to be hard always.

LAWRENCE: Nicole and her mom left the cathedral feeling a little better about the future.

UNIDENTIFIED FEMALE: I still -- I still have people that I love dearly that I haven't even heard from like in Mississippi. And you know, I have a lot more hope after I've been in church that I'm going to hear from these people again, you know? Soon!

(END VIDEOTAPE)

COSTELLO: It wasn't just residents who were in need of some prayer. Dozens of firefighters, soldiers and other relief workers also attended the mass.

Here's what's all new in the next half-hour.

It is day three of the U.S. military's offensive against insurgent targets in western Iraq. Embedded with Operation Iron Fist, CNN's Jennifer Eccleston will tell us how the war impacts innocent lives.

Plus, mourning the dead and piecing things together. We'll take you live to Bali for an update on the bombings that shattered that tranquil island resort.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you. Thank you for waking up with us. Welcome to the second half-hour of DAYBREAK.

Coming up in the next 30 minutes, disaster on the water. A tour boat capsizes, taking a group of elderly tourists with it. We have the latest for you.

And high alert after that deadly terror attack in Bali. Is there reason to fear?

But first, "Now in the News."

It's the first Monday in October, and that means a new session of the U.S. Supreme Court is convening with John Roberts on board as the nation's new chief justice. Among the issues before the high court this term, abortion, free speech, and the death penalty.

A series of Jewish holy days begins today. Tishri, the month in which Jews observe Rosh Hashanah and Yom Kippur begins at sunset. In synagogues around the world, Rosh Hashanah is marked by the ritual sounding of the shofar, a ram's horn.

And in southern California, firefighters have gained ground on the three largest fires, but there is concern this morning that a return of those blistering Santa Ana winds could spread embers and spark more wildfires.

Let's go to the man who knows.

Good morning, Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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