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Bush's Unspoken Message About Miers; Tom DeLay Indicted Again; Saving New Orleans' Historic Neighborhoods

Aired October 04, 2005 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: A Supreme Court nominee making the rounds. Will she make it to the bench? We're live from Washington.
Moving against insurgents in Iraq. We'll talk live with our own CNN reporter embedded with U.S. Marines.

Saving history after the hurricanes. Will it be lost to the bulldozers?

From the CNN Center in Atlanta, I'm Kyra Phillips. This hour of CNN's LIVE FROM starts right now.

He wasn't there, and his name scarcely came up. But the specter of David Souter was in the air at the White House today as President Bush asked conservatives to trust his choice of Harriet Miers for Sandra Day O'Connor's spot on the highest court in the land. Souter, you may recall, was appointed by President Bush, the former, as a so- called strict constructionist, only to settle somewhere left of center in ruling after ruling.

Of Miers, Mr. Bush says -- and we quote -- "I know here heart, and said she's not going to change."

We could say the same of our faithful national correspondent, Bob Franken. But I won't go there.

Hi, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: You sound like you're talking about a puppy, Kyra.

(LAUGHTER)

PHILLIPS: You are cute, just like a puppy, Bob.

FRANKEN: That's right. And the news puppy reporting from the White House wants to talk about what the president wanted to impart to his fellow conservatives. And as you pointed out, it is that she is no David Souter. The other message was that, for those who say that she really doesn't have any intellectual apt, she was enormously brilliant, speaking of Harriet Miers, who is his nominee to be the Supreme Court Justice.

The president returned to those themes constantly.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I know her strength of character. It's important to me -- again, I'll repeat to you, I don't want to put somebody on the bench who is this way today and changes. That's not what I'm interested in. I'm interested in finding somebody who shares my philosophy today and will have that same philosophy 20 years from now.

(END VIDEO CLIP)

FRANKEN: And she is -- she, being Harriet Miers, is spending her time now on Capitol Hill, convincing the senators of both persuasions, liberal and conservative, that she should be confirmed. The president says that he wants this to occur before Thanksgiving, although many say that that may be a bit optimistic.

The president also ticked through a number of other subjects. He refused to give any answers to the question of whether he would remove anybody from his administration if anybody is indicted in the investigation into the Valerie Plame leaks.

He said progress was being made in Iraq.

He spent a lot of time, Kyra, talking about Avian flu, and the tough decisions that a pandemic would create in the United States, such as whether to quarantine a country that was affected and whether to use the military to do so.

And then there was a recollection of the comment that he made the day after he won the election, in which he said that he a lot of political capital. And that prompted what I considered to be the question of the day.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You talked about a lot of priorities you still would like to see enacted. But Congress is now facing its own elections and reelections a year from now, and you're not. To what extent is this divergent interest -- how does that scramble your agenda? And I guess I'm asking, how much political capital have you got left.

BUSH: Plenty.

(END VIDEO CLIP)

FRANKEN: That answer, Kyra, in spite of the polls that show that he has possibly drained a lot of that political capital, with all the controversy surrounding the handling of the hurricanes and Iraq and all the rest -- Kyra.

PHILLIPS: All right. Bob Franken, live from the White House.

Thanks, Bob.

Well, President Bush very upbeat about his Supreme Court nominee, Harriet Miers, as Bob just said, but he may not be so upbeat about the fate of embattled former House Majority Leader Tom DeLay. Indicted just last week by a Texas grand jury on charges of conspiring to violate campaign finance laws, DeLay has been indicted a second time by another grand jury on charges of money laundering. DeLay denies any wrongdoing.

Joining us live in our Washington studio with more on DeLay's troubles, CNN's Kimberly Osias -- Kim.

KIMBERLY OSIAS, CNN CORRESPONDENT: Well, Kyra, the president didn't say anything about Tom DeLay, at least not publicly, that is. He wasn't even asked, not surprisingly. But that didn't stop DeLay himself from coming to his own defense on a Texas radio show.

(BEGIN VIDEO CLIP)

REP. TOM DELAY (R), TEXAS: It's like the Keystone Cops. In fact, all this gives the Keystone Cops a good name. It's just amazing.

Last week, as you know, I was indicted on a law that's not a law. Basically, what that means is, Ronnie Earle manufactured an indictment based upon a law that was passed in 2003, and the incident that he's talking about is 2002. So there was no crime to be indicted on.

(END VIDEO CLIP)

OPSIAS: 2002 was when the alleged funneling of money happened, some $190,000 in corporate funds through Washington to state legislative candidates. If found guilty of money laundering, DeLay could face hefty fines and up to life behind bars.

The timing is interesting here, Kyra, since it was just late yesterday when DeLay's attorneys pushed to get the original conspiracy charge dropped and when Texas district attorney Ronnie Earle filed the new money laundering charge. It was the original charge, though, that forced DeLay to step down from his leadership position.

DeLay says the whole thing is politically driven, has even said it's a political witch hunt, and that he never did anything illegal. As far as accusations from DeLay's camp of legal chicanery and political vendettas, sources close to the investigation say no mistake was made in the original indictment. This charge, they say, was intentionally added to bolster the case -- Kyra.

PHILLIPS: Kimberly Osias, live from Washington.

Thank you.

Now to the Gulf Coast, where a former president is getting a firsthand look at the devastation from Hurricane Katrina. Bill Clinton is touring Louisiana today, meeting with storm survivors and getting a briefing on relief operations. His joint effort with former President Bush to help Katrina's victims has raised $100 million.

Clinton stopped by a shelter in Baton Rouge and addressed concerns from some of its residents. (BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Everyone is talking about what are they providing for us now. What about the future?

WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: Well, let me say I believe, just based on the money that the Congress has already appropriated, that if the economy in New Orleans doesn't have jobs and people can't go back to work by then, I think there'll be an extension of assistance. There'll have to be.

I don't think that the -- that the country will walk away from you then. Like I said, we never -- it's been since 1927 that we had this many people dislocated at one time. So I believe that that will be taken care of.

I think the real problem is, like -- there's a lot of mechanical things that have to be worked in. How -- when can the water and sewer get back up in New Orleans, it's really, really safe, you know, for people to live there? When can the hotels be opened and take significant numbers of people coming back? They're just beginning to hire people back.

But that's a legitimate question. But -- and I will relay it...

(END VIDEO CLIP)

PHILLIPS: Well, straight ahead, in hurricane-battered Mississippi, casino operators are about to get a break. Governor Haley Barbour says he'll sign a bill this week that will allow them to rebuild their gaming businesses on land near the shore. Previously, casinos had to float on barges in the Gulf of Mexico or the Mississippi River. Hurricane Katrina destroyed many of them, taking away thousands of jobs and millions of dollars in taxes.

Straight ahead, tough times in an area hard hit by the hurricanes.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: ... find some bodies.

UNIDENTIFIED FEMALE: Why do you think that?

UNIDENTIFIED MALE: You can smell them as we drive by.

(END VIDEO CLIP)

PHILLIPS: Grim realities for crews trying to get to every victim of the storm. That's ahead on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: And live from CNN Center in Atlanta, all areas now we're talking about of New Orleans, except the ravaged Lower 9th Ward, will be officially open to residents tomorrow. But many people are coming back to ruins, and some aren't staying long.

Susan Roesgen from affiliate WGNO, she's a reporter and anchor there, and also doing amazing reports for us from the Crescent City. She joins me live once again from our bureau there on Prytania Street.

Susan, let's talk about tomorrow. Everybody's talking about it.

SUSAN ROESGEN, REPORTER, WGNO: Oh, you bet, Kyra. You know, last week, people who lived in the areas that didn't get flooded, like this area here off of Prytania Street, and my own neighborhood farther uptown, were allowed to come back. And many people in those areas are staying. But tomorrow the city is going to let people back into the areas that just got walloped.

We're talking about Lakeview, Mid-City, Gentilly, New Orleans East. These are the neighborhoods that got four feet, six feet, even eight feet of water. And people in those areas probably won't be able to stay.

There is no power in those areas. The damage is extensive. And Kyra, last week you asked me about mold. Mold is going to be an awful issue in those homes that got all that flooding.

PHILLIPS: So would you say that's the major concern? Because as we -- we see so much debris, Susan, and we see the homes. You sort of wonder, my gosh, how can you even save them considering the health issues?

Is everybody pretty much in the same situation with regard to power or water, toxic mold issues, debris?

ROESGEN: All four of those issues, Kyra, are big issues down here. But I think some people will try to rebuild.

Many of those homes in the Lakeview area were solid brick colonials, two-story homes. People are going in, they're trying to salvage what they can from the lower level, but thinking that they might just gut it down to the studs and save what's on the upper level.

That's not going to be the case, however, in the Lower 9th Ward. You mentioned that area. People simply cannot go back there. Not for the foreseeable future.

PHILLIPS: And then, of course, because it's the low-lying area, it's flood prone, and so many people rented property there, you know, you tend to wonder how many 9th Ward residents will truly come back, specifically the Lower 9th Ward.

ROESGEN: Well, right now, Kyra, as you mentioned, the city won't let people come back to that area. I have been there several times through all of this. I saw the people on the rooftops when the flood first came, later I walked through that area.

It was like walking through chocolate pudding the mud was so thick. It was about eight inches thick. I've been there since now that it's dried out.

But what happened was, these were simple wooden homes, single- story homes. The flood covered these homes and then lifted them up and moved them around.

I saw one home that landed on top of a pickup truck. So the city just doesn't believe it's safe for anyone to get back in that area at all, even to look around.

PHILLIPS: So, Susan, if you look back to, say, 1927, and the floodwaters that came through Arkansas, Louisiana, Mississippi, there was this major migration. And a lot of the black families, the black farmers, they went to Chicago and Detroit and other cities, and they stayed there.

What do you think is going to happen to New Orleans? What are people saying, specifically those that lived in the 9th Ward, predominantly black? Do you think they will come back, or do you think they'll stay in, say, Houston, Atlanta, these other cities that they've gone to?

I think we lost our connection to Susan.

Susan, can you hear me?

ROESGEN: Yes, I can hear you now, Kyra.

PHILLIPS: There we go.

ROESGEN: You were asking about people who were -- you were asking about people who were trying to come back. And I think what's happening here is, the people who do come back and do want to stay here are people who love this city.

With all do respect, they can't imagine themselves living in Atlanta or Dallas or Houston or anyplace else. But also, these are people who are going to take the long view of New Orleans, the historical view.

This is a city founded in the 1700s, that survived two catastrophic fires in that century. Most of the buildings in town were wiped out.

Then there was Yellow Fever, Cholera, that killed 5,000 people in one year in the 1800s. Five times as many people as Katrina has killed.

And then, of course, there was indignity of the Yankee occupation during the Civil War and the economic hardship of reconstruction. We survived that in this city, and the people who come back believe we'll survive this, too -- Kyra.

PHILLIPS: It doesn't surprise me. I know that you, in addition to many others in that city, are tremendous survivors.

Susan Roesgen, with WGNO, reporting for us there from New Orleans.

We'll see you again, Suzy. Thanks so much.

ROESGEN: You bet.

PHILLIPS: Well, door-to-door searches in New Orleans are finished, but have all of the victims of Hurricane Katrina been found? More than a month after New Orleans was inundated with floodwaters, some worry that the vulnerable 9th Ward has not been fully searched and that more bodies remain there.

Jeanne Meserve now on that controversy.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice over): In pulverized portions of New Orleans' 9th Ward, where water flows instead of traffic, most homes bear the signs that search teams have been in to look for the living and the dead. But not in one area that spans several blocks. Here, house after house after house is unmarked.

EDWARD MENDEL, SEARCH VOLUNTEER: From here back, I'd estimate 100 to 150 homes that are still unsearched. And I do expect we'll probably find some bodies.

MESERVE (on camera): Why do you think that?

MENDEL: You can smell them as we drive by.

MESERVE (voice over): Federal officials say search teams came through every house and ran out of paint to mark them. But volunteer Ed Mendel believes they were not able to go where he can on what he calls "Swamp Thing," a vehicle originally designed for hunting pigs and deer in the Everglades, and modified for rescue work.

MENDEL: It will drive in six feet of water, and after that it starts floating like a boat.

MESERVE: Mendel is particularly concerned about the unmarked homes he passes with nice cars still parked in the driveway.

MENDEL: That's a pretty bad indicator that, you know, there may be a recovery involved here.

MESERVE: And then there were the places where houses used to be.

MENDEL: I know there's bodies under the debris piles in the sides of the road. You can -- you can tell from the -- the byproduct that comes off of humans.

UNIDENTIFIED MALE: You stay right there. I'm going to pull you up.

MESERVE: Mendel picks up Roz Kay and Adam Ervin (ph), a brother and sister who wanted to take a look at their family home. UNIDENTIFIED MALE: I don't think I'll be doing anymore smoking and barbecuing back here. Not at this house.

MESERVE: But Roz Kay knows others lost more than property and possessions.

ROZ KAY, FMR. RESIDENT, NINTH WARD: We have so many people who were super seniors that lived in these neighborhoods. And they didn't have children or anyone to rescue them, or a way out.

MESERVE: If these homes have not been searched and these people found, Roz Kay perceives it as another slap at the 9th Ward and the people who lived here.

KAY: This is a predominantly black neighborhood. OK? And it has always been neglected. And it's been a hard fight and an uphill fight always. So I am not surprised.

MESERVE: Not surprised, but horrified that more than a month after Katrina rampaged and ravaged through, there may be grim discoveries still waiting to be made.

Jeanne Meserve, CNN, New Orleans.

(END VIDEOTAPE)

PHILLIPS: And straight ahead, coming up very soon, at the top of the 3:00 Eastern hour, in "THE SITUATION ROOM," Franklin Graham. You know him, the son of Reverend Billy Graham. He says that the storm is going to bring about a revival in New Orleans. He says god has a plan. He's going to talk about it, 3:00 Eastern.

Also, straight ahead, when the Gulf region begins to rebuild, will its rich history and amazing architecture be lost? We're going to talking with the president of the National Trust for Historic Preservation about what's being done to help homeowners keep their piece of history.

And fighting for ground against insurgents in Iraq. We're going to take you there live coming up.

(COMMERCIAL BREAK)

PHILLIPS: Some stories "Now in the News."

The NTSB is meticulously searching for clues on a tour boat that capsized on New York's Lake George. That boat flipped over Sunday, killing 20 senior citizens. It was recovered yesterday, and one theory is that the boast tipped over after it was hit by a wake from a passing boat. Authorities say that the owner of the tour boat, Shoreline Cruises, has been cooperating with investigators.

The Seven Mile Bridge that leads to the lower Florida Keys is back open after a fiery tanker truck crash. A gas tanker and an SUV collided yesterday, closing the only road connecting Key West to the rest of the state. Both drivers were killed in that crash. Delta Airlines says it plans to cancel some flights in an attempt to save fuel. Delta says it will cancel a flight if there's a large number of empty seats and passengers can be accommodated on other flights. Cancellations will be made at least two days in advance.

JACQUI JERAS, CNN METEOROLOGIST: I'm Jacqui Jeras in the CNN weather center, keeping our eye on the tropics.

(WEATHER REPORT)

(COMMERCIAL BREAK)

PHILLIPS: U.S. forces locked in new major combat operations in western Iraq. With the new fighting, more Americans killed in action. Three thousand American Marines, soldiers and sailors, along with a number of Iraqis, are involved in missions launched today, Operation River Gate and Operation Mountaineers. The aim is to stop insurgents from operating in three key cities in the Euphrates River valley.

Another operation still ongoing kicked off Saturday. Military officials say the goal is to prevent insurgents from disrupting next week's national vote on a new Iraqi constitution.

So far, four U.S. troops have been killed in the new offensives. A fifth was killed elsewhere. Their deaths raised the total of American troops killed in Iraq since the invasion two years ago to 1,994.

Joining us now live from the battlefield in western Iraq, Marine Captain Shannon Neller.

Captain, thanks for being with us.

CAPT. SHANNON NELLER, U.S. MARINE CORPS: Thank you.

PHILLIPS: Tell us more about Operation River Gate and its mission.

NELLER: Basically, Operation River Gate was to come in to deny all the Iraqi insurgents out here sanctuary in order to prepare for the upcoming elections in Haditha and in Iraq in general.

PHILLIPS: And Captain, tell us about the Euphrates River valley area and about the insurgency there. Can you put into perspective of how bad it is, and the biggest challenges you face right now trying to defeat the insurgency in that particular valley?

NELLER: Well, to be honest with you, coming in, we actually had an intel picture that did the point of insurgents here. But coming in, we were able to maneuver in pretty quickly last night and seize all our objectives. And when the sun came up, we started to systematically clear, and what we found is actually all the locals turned out to be really friendly out here, and are actually helping us to identify insurgents and other people in the town that are helping insurgents. So it's been great. And it shows despite what kind of reports or what people are saying out there, democracy is at work. And the locals here, once we came in, are willing to work with us. So it's been great.

PHILLIPS: Captain, you bring up a good point, because we remember at the beginning of this war the civilians, the Iraqis, they were afraid of everybody. They were afraid of Saddam loyalists, they were afraid of U.S. troops. Why do you think this relationship is getting better?

NELLER: Basically, because, I think, at least a lot of people, especially around here that we met today, are starting to realize that we offer a lot better option than the insurgents out there. Once they see us and they realize we're a lot fair and a lot more willing to help them with their purpose out there, then they're going to generally take us over the insurgents out there. I think a lot of what they believe the insurgence (INAUDIBLE) it's not the right way. We're here to help them, promote democracy and not to harm them like the insurgents.

PHILLIPS: Captain, you know all the major generals were in town meeting with the president and testifying within the last week, talking about when troops will be able to come home. How are you feeling right now? Do you still feel you've got a long way to go?

NELLER: We just got here a month ago, so we're ready for the long haul. Another six months, no problem.

PHILLIPS: Do you think there is, the overall mission, that there's still a lot to accomplish?

NELLER: Oh, absolutely. There is a lot to accomplish, but I am quite sure we will meet our aims and we will accomplish that mission. Can't say how long, but in the end, it's doable and we will do it.

PHILLIPS: And, Captain, you've only been there a month. And I know our Jennifer Eccleston is embedded with all of you right now. And yesterday she brought to us a pretty powerful piece, and that is, while you're taking down the insurgency, unfortunately, the loss of life when it comes to innocent civilians, it's still a grim reality.

There's no battle lines. And the insurgency takes those innocent people and puts them in these dangerous positions. You've seen this now firsthand, not just on the news. How is that for you as a marine to deal with that and to see that? as tough as you may be, it's got to be hard to deal with civilian casualties?

NELLER: Yes. It is difficult. We saw some of that before in Fallujah, but right now, we continue to learn and to adapt. And we're a well -trained unit coming in right now. And our company, or my company in particular right now, has not had any civilian casualties out there, nor have we lost any of our marines. Again, it's been pretty easy for us right now. We've come in, we've seized our objective and the people are primarily -- we're getting along with them. So it hasn't been an issue at all. And hopefully we'll continue to go this course and make our job that much easier. And we'll all come home safely.

PHILLIPS: Captain Shannon Neller, Lima (ph) Company commander, 3rd battalion, 1st marines. Thank you.

This just in to CNN right now via our affiliate WABC. Want to thank our affiliate for these pictures. A three-alarm fire in the Bronx, there in New York. We're told it's a tanker truck fire. Just coming to us. We don't have a lot of information. Can't even give you an exact location, But for those who do know the Bronx, you can see this intersection here, not far off from the bridge. A three- alarm fire. A tanker truck explosion. Not quite sure what caused this, if any other vehicles have been involved or the status of who was driving that truck; if, indeed, that individual is OK at this time.

You can actually still see, it looks like fuel leaking there from the bottom as it got turned over. But firefighters working that blaze right now. We'll keep you updated on this tanker fire in the Bronx in New York.

Well, the fighting in Iraq. We continue to talk about it now, and the rising number of U.S. troops killed there. It's making it much harder, much harder, for army recruiters. Army secretary Francis Harvey says that as much yesterday, in explaining why the Army, by a wide margin, failed to meet a yearly recruiting goal since the first time since 1999.

For more on this, let's go to our Pentagon correspondent Barbara Starr. And Barbara, you've talked about this for some time. To many people, it's not a surprise. It's a difficult time for recruiting.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Not a surprise at all, Kyra. In wartime, the Army, indeed, now has failed to meet that critical recruiting goal. It wanted to recruit about 80,000 new troops this fiscal year, which, of course, just ended at the end of September. But it fell about 10 percent off the mark. Now, top commanders, recruiters, have long said that the war in Iraq, they believe, is a major factor, and now top generals absolutely agree.

(BEGIN VIDEO CLIP)

GEN. RICHARD CODY, ARMY VICE CHIEF OF STAFF: I don't think we know yet. I mean, I think people will postulate and some will say that, you know, because of the Iraq war that's being brought home on TV every night, some will say that the influencers are having an impact.

(END VIDEO CLIP)

STARR: To be very clear, what General Cody, the number two in the Army, is talking about, influencers, he means, of course, parents. Parents who now do not want their children to join the military and go to war in Iraq. Let's remember, of course, certainly, thousands and thousands of young people are joining the military, but with the violence ongoing in Iraq, no one now can really predict, they say, when all the troops will come home. And, in fact, the top U.S. commander in Iraq just recently stepped back from his predictions that substantial troop reductions would come next year.

(BEGIN VIDEO CLIP)

GEN. GEORGE CASEY, U.S. ARMY: I think right now we're in a period of a little greater uncertainty then when I was asked that question back in July and March.

(END VIDEO CLIP)

STARR: General Casey saying he still absolutely believes that the Iraqi security forces are getting better. And, of course, that is the key to bringing those U.S. troops home. But what is the real shortage in recruiting mean? They fell about 7,000 short this fiscal year. And officials say that means the Army may have to put off some of its own plans -- Kyra.

PHILLIPS: All right. Barbara Starr there, live from the Pentagon. Thank you.

Just want to bring you a little bit more information now on that story out of the Bronx. These pictures coming to us, once again, from WABC. A three-alarm tanker fire in Bronx, New York. I'm told the location is Hunts Point. We can't see if, indeed, there are any other vehicles that have been involved in this explosion, or who was driving this truck; if, indeed, that individual or individuals inside are OK.

All we can tell you is we're just getting these pictures in of this tanker fire at Hunts Point in the Bronx. We'll work as much information for you and let you know what we get and report it to you.

Meanwhile, straight ahead, buildings that were once grand monuments to the past are now in ruins after the hurricanes. Will the people of the Gulf region be able to preserve the past when they rebuild their lives? We're going to talk about it, straight ahead on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: More information for you now via our affiliate WABC in New York. As we look at these pictures, we can tell you more about this tanker fire. We're told two tanker trucks collided right here at Hunts Point Avenue and Bruckner Boulevard. It's right under the Bruckner Expressway in the Bronx.

The fire department is on the scene, but we're told they're having -- firefighters are having difficulty gaining access to this fire because of the location. As you can see, the flames are so intense and the smoke is thick and so black, that it's pretty impossible to see if there is, in fact, a second tractor trailer involved. But the word is, two tanker trucks collided here at Hunts Point.

We're told that Amtrak power has been affected in and out of Connecticut area. And there's no Amtrak service between Hell Gate Bridge and Westchester County. If, indeed, you take the train on route, the FDNY staging area is set up at Southern Boulevard and West 166th Street, so you won't be able to get through right there. That's the main staging area.

But right now, firefighters working really hard on this three- alarm fire that continues to get pretty intense, because it's hard for firefighters to get into the area. We'll continue to update you on as much information as we get it. But right now, three-alarm fire at Hunts Point Avenue and Bruckner Boulevard right under the Bruckner Expressway there in the Bronx.

Well, New Orleans is known for good times and good jazz. We know that, all of us that have been there. But Hurricane Katrina has changed that for now, though not for long, according to some people. But the soul of the city also lies in its architecture and unique homes, and the storm did much more damage there. And now there's a mission to save the buildings that give New Orleans so much of its character.

(BEGIN VIDEOTAPE)

PHILLIPS (voice-over): A city is more than people; New Orleans more than most. Many things -- food, music, history -- are woven into its fabric.

PATRICIA GAY, PRESERVATION RESOURCE CENTER: There's a lot of water out towards here, and we're very concerned.

PHILLIPS: Patricia Gay's mission is to take care of the houses, the neighborhoods, the rich and the poor. Her group, the Preservation Resource Center, has repaired and repainted hundreds of homes over the past 25 years.

GAY: We always worried about the vacant properties and neglected properties, and look what we have now. And we just want the houses to be there, we want people to come back to their houses. So my job has, indeed, gotten a lot bigger.

PHILLIPS: Her passion now is to preserve the thousands of historic landmarks.

GAY: We want the world to know how much is left, but how much has been damaged.

PHILLIPS: And she wants to make sure that what is left is saved. She recently took her first tour of the damage with preservation groups from across the nation.

GAY: Napoleon House is still standing.

PHILLIPS: A difficult task for someone who has fought for New Orleans for so many years.

GAY: It is the most tragic thing to think of so many people who have lost their houses, to see the houses underwater. It is -- I think we're still numb.

PHILLIPS: Along with simple shot gun houses and Creole cottages, century-old landmarks were hit hard. The historic St. Roch's Cemetery was flooded.

GAY: You can see from the water line that there was water up to about about -- what, two feet, three feet.

PHILLIPS: The chapel trashed and caked with mud. The heavy winds stole the steeple of Rain (ph) Church, blasted through the stained glass windows of St. Teresa of Avila, tore the facade off the old movie theater, sliced historic homes into bits.

GAY: It had the most beautiful doorway of huge fan lights and carved wood all around. And I would like to think that some of the pieces are under there.

PHILLIPS: About half of New Orleans is made up of historic neighborhoods, and most of these are damaged at the least. It's still too early to tell which buildings are beyond saving. The National Trust for Historic Preservation plans to send teams of volunteers and architects to make assessments within the next few weeks.

RICHARD MOE, NATL. TRUST FOR HISTORICAL PRESERVATION: We've been worried about wholesale bulldozing, because the first instinct after many of these natural disasters, from our experience, has been to tear down every damaged structure.

PHILLIPS: To Patricia Gay, that would be sacrificing a part of New Orleans' soul.

GAY: Oh, I think you wouldn't have the culture without the architecture. I positively think you would not. Because the architecture is absolutely critical. Without it, you do not have New Orleans.

(END VIDEOTAPE)

PHILLIPS: Well, one of the experts you just saw in a piece joins me now live from Washington. Richard Moe is the president of the National Trust for Historic Preservation. Richard, good to see you.

MOE: Nice to be here.

PHILLIPS: My heart breaks when I look at that videotape, I have to tell you. And explain to those that aren't from the area -- once again, I think we've pretty much got the point across from the piece -- but you know, from your heart and soul and something that you're so dedicated to, how -- a big part of the culture is the architecture, and how important it is to save these neighborhoods and rebuild these homes.

MOE: Well, exactly. First and foremost, we have to say that this is a human tragedy that -- result of these hurricanes. But it also has a potential to be the largest cultural tragedy in the history of this country. Because New Orleans is unlike any other city in this country or, indeed, in the world. Fifty percent of the city consists of 20 historic districts containing 37,000 historic structures.

There is no greater concentration of historic structures anywhere else in the country. And many of these have been damaged. More will be lost, unfortunately. But we don't think that any should are unnecessarily lost, because the rebuilding of New Orleans, first of all, must involve saving these homes so the people dispersed around the country will have places to come back to. But, secondly, saving the unique character that is New Orleans, so that it's not lost.

PHILLIPS: And there's been so much talk about just the health and human hazards of trying to bring back these homes. The toxic mold and other health threats. But you believe that these homes, you can save them and not have to worry about those type of things, correct? And how do you know that?

MOE: No, I don't know that. Our position is that every home should be individually inspected with a team of experts. Engineers, architects, health experts. Determinations must be made in terms of -- in the interest of public safety, building by building. But the vast majority of these structures that have been damaged, either by wind or water, I believe can be saved. It will take a lot of work. And we're all becoming instant experts on mold, for example, with which we've had very little experience. But we need to get into these houses quickly to address these concerns and in order to save them.

PHILLIPS: And, you know, you talk about the Creole cottages and the shotguns. And these are the key phrases, some of the neat pieces of structure that you see, of course, in New Orleans. But the neighborhoods, you want to save these buildings because of the neighborhoods and the history. For example, Treme. The African- American Museum is there. Homes are there of famous musicians and the families of famous musicians. I mean, you can walk through Louis Armstrong Park and walk through that neighborhood and you'll see people playing their instruments on a regular basis.

MOE: Exactly. I was in the Treme neighborhood two weeks ago. It's a wonderful neighborhood of these great vernacular houses, low middle income individuals for the most part. Racially mixed. But this is the heart and soul of what New Orleans is all about. You know, the French Quarter and the Garden District are fine, and they -- that's what most people know. But the real heart and soul of New Orleans is out in these vernacular neighborhoods. And we saw about a dozen of them. And they need to be saved in order to save the soul of New Orleans.

PHILLIPS: Now, say, for example, you had a historic home. Are you offering up money or is there a way to get funds that we don't know about, if you're an owner of a historic home?

MOE: We are working on that. The first thing we're going to do -- and this applies to the Mississippi Gulf Coast, as well as New Orleans -- we're going to be opening offices, National Trust for Historic Preservation offices, in both New Orleans and in Mississippi, so that we can give homeowners, property owners, the best possible advice as to what their options are as to -- and how they can pursue those options. And hopefully we will be able to access enough funds, and the Congress will appropriate funds that we're seriously urging them to do now, in terms of tax credits, and in terms of grants, that most of these historic homes can be saved. Because there's going to be a gap in helping these private homeowners. FEMA funds don't -- are not allowed to go to private property owners.

PHILLIPS: And, of course, there's your Web site, too, nationaltrust.org. And you can actually click on there, make a donation, also find out how you can get help. Nationaltrust.org. Richard Moe, president of the National Trust for Historic Preservation. Thank you so much.

MOE: Thank you.

PHILLIPS: Straight ahead, business disrupted. Financial setbacks for two major companies in the wake of Hurricanes Katrina and Rita. We'll have details just ahead in business.

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PHILLIPS: Surprising nominee for the Supreme Court and more pain at the gas pumps. American voices are weighing in on a number of topics today. Gallup editor-in-chief, Frank Newport, is in Princeton, New Jersey keeping track of all of them.

Frank, President Bush's choice of Harriet Miers to the Supreme Court caught many people by surprise. About the only thing we know about her politics is that she's conservative and opposed to abortion. How's that likely to go over with the public?

FRANK NEWPORT, EDITOR-IN-CHIEF, GALLUP: Well, I'll tell you one thing. The Democrats nor the Republicans, it looks like, Kyra, are going to be able to appeal to public opinion when they argue that she's either too conservative or not conservative enough or whatever we're going to hear people arguing. Why do I say that?

Well, here's the question we asked before, of course, the nomination was announced. Should Bush's new pick for the Supreme Court make the court more conservative, more liberal or about the same? Look how close the answers are. Almost as many Americans say it should be more liberal with the new nominee as said the court should move more conservative, so there's no real mandate here for people to go after.

Also we found this quite interesting. We asked the American public, do you want the new nominees position on abortion -- that key issue -- to reflect your own, to bear your own position? And interestingly, really, Republicans and Democrats no different. Almost half in both of those partisan groups say, yes, they do want the nominee's position to mirror their own.

What I thought was interesting here, Kyra, is how high these numbers are. The average American, particularly those who politically affiliated, do care about a nominee's position on that high-profile issue. PHILLIPS: All right. Let's talk about the economy for a minute. The average pump price, almost $2.94 a gallon. How much impact is that having on the average family?

NEWPORT: It is having an impact, but I'm going to be a little contrary in here, Kyra. I do not think that Americans are continuing to give all of their cognitive worry to gas prices at this point. It's kind of like sticker shock was there. Now people will be getting a little used to it.

Here's the question. What's the most important economic problem facing your country? And sure enough, oil prices is number one, as of last week, 17 percent, but not that much higher than some of these other things that are bedeviling America's families.

And look at this trend. Do the -- does the high price of gasoline cause real financial hardship for your family? That really peaked in early September at 72 percent, and Kyra, that's down now to 61. That's why I say Americans may have kind of gotten used to the high price of gas and they're moving on to other concerns at the moment.

PHILLIPS: All right, Frank. Sorry about that. I missed the last part of what you said. I'm actually working on some developing news. I'm going to continue. Thank you, Frank Newport very much.

We're going to go to it? OK.

We're getting word out of New Orleans now, some pretty -- well, I guess it wouldn't shock us, but some pretty amazing news from the mayor there in New Orleans. You know, they've talked so much about wanting to keep everybody employed and want everyone to come back it the city of New Orleans.

Now we're getting word from -- that Mayor Nagin held a news conference -- or actually I'm not sure he held a news conference or not. Andreas -- it was a news conference. OK. One of our producers on the phone with us. Andrea, is it true about these layoffs? Can you give us numbers and tell us where those layoffs will indeed happen?

ANDREAS PREUSS, CNN PRODUCER: Kyra, Ray Nagin just called a hastily arranged press conference just a few moments ago and at that press conference, he had a very interesting announcement about city workers. He's said he has been checking with the federal government, other state agencies.

The city of New Orleans is basically out of money. He said that they will be laying off 3,000 workers, and they will be placed on emergency leave without salary. Of course, that precludes or excludes safety officials. He mentioned this in a press conference just a few moments ago.

PHILLIPS: So police officers are still getting paid. Firefighters, still getting paid. First responder types still getting paid? PREUSS: Well, he was mainly talking about the -- you know, the bread and butter of City Hall. The people that come in, that run the accounting offices and the licensing agencies and those type of people, and he mentioned a 3,000 figure. Involving public safety officials, he didn't get into many details at this point. I'm sure he's kind of laying that out, but at this point, it does seem like they are excluded from this layoff.

PHILLIPS: Now, Andreas, as we've been developing, of course, or working on various stories there out of the city, there's been a lot of talk from the mayor's office and other agencies that the whole goal was to bring New Orleanians back and, of course, people from the other areas too and hire them and contract them to help rebuild this city.

But now we're hearing this announcement of laying off up to 3,000 city workers. It's sort of a mixed message. You really wonder the reality here of who they will be able to hire and bring back and give jobs to.

PREUSS: Well, I think that is the reality. I think that, you know, they want people to come back. They want people to rebuild. Of course, right now what you're dealing with a city that is destroyed. You've got garbage piles 15 feet high, you've got refrigerators on every corner. You've got infrastructure damage, highways, that kind of thing. Yes.

Who's going to repair this stuff? The public citizens are taking care of themselves, of course, their houses, the cleanup, finding lost relatives, and this and that, but those are hard questions, which I haven't heard any serious answers for.

PHILLIPS: Now, Andreas, unlike here in Atlanta, where a lot of it is privatized, are the -- say, for example, those has pick up the garbage, aren't those city workers?

PREUSS: Well, from what I understand, talking to residents of New Orleans, the National Guard will assist in trash cleanup. You've got a lot of private contractors out there, people that have 1-800 cleanup junk, hurricane cleanup. On every street corner in some parts of the city, there are various signs talking about restoring electrical service, restoring roofing and cleanup as well.

So -- you know, but I haven't seen the city pick up much garbage. I haven't seen the National Guard out there picking up garbage either. I have seen a lot of private contractors with dumpsters doing it themselves.

PHILLIPS: Well, I bet there's a lot of people that live in that city that would love to get paid for that type of job, no matter what it was. Andreas, thank you so much. We'll continue to follow what the mayor has to say, of course, in addition to what he just came out with a few minutes ago, 3,000 city workers, being laid out of in New Orleans at a time when people desperately want it keep their jobs and stay on the payroll.

We're going to take a quick break. We'll be right back with more.

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PHILLIPS: All right, thank you so much for that update. Straight ahead -- well, that does it for us actually, wraps up this edition of LIVE FROM. I'm Kyra Phillips at the CNN Center in Atlanta. We'll see you back here tomorrow. Now, John King in for Wolf, live in THE SITUATION ROOM.

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